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Friday, July 25, 2014
RBI's Khan for freedom to banks for financial inclusion goals
Ground reality of FinClusion - Dr.T.V.Gopalakrishnan
My View on "Can India Achieve Financial Inclusion within the N...":
Unless there is a drastic change in the mindset of our banking community and the better off section of the society to come to the rescue of less fortunate and poor segment of the society, Finacial Inclusion can only remain in paper and is tantamount to chasing a mirage. If Millions of bank employees care to bring under banking fold their own servants, baji wallahs, petty service providers like Iron wallhs, carpenters, many can have bank accounts overnight. The ground reality is that our human resources are not mentally attuned to be considerate to our own fellow beings.
- Dr.T.V.Gopalakrishnan
FinClusion by Aadhar
My View on "Can India Achieve Financial Inclusion within the N...":
One year target is asking for too much in too little time. But the financial inclusion could well be achieved by RBI / GoI - by strengthening the Aadhar Cards, Post Office Savings banks and reverting to the British system of Treasuries and Sub-treasuries equipped with hi-tech facilities. Simultaneously, educating and popularising the concept thru print and electronic media and also with the help of retired bankers/central bankers in the locality. Depending on the 'banks' alone would be putting more pressure on them in the present context of work culture and environment.
- M.A.Srinivasan
Central Bank of Sri Lanka in investment pact with RBI
..........The agreement was signed between RBI Governor Raghuram Rajan and Central Bank of Sri Lanka Governor Ajith Nivard Cabraal on the sidelines of the SAARCFINANCE Governors’ Symposium here, a day ahead of Central Bank Economists’ meeting on the theme ‘Reaping mutual benefits through intra-regional investments of reserves’. Dr. Rajan, who later spoke on capital regulation at the Central Bank, made a case for measured regulation in emerging markets.............
India still faces risk on growth, external front: RBI official
...................Mohanty, who is part of the monetary policy department at RBI, summarised the multi-pronged response by the country on trade, capital flow management, currency intervention and monetary policy fronts. "There is a need to use multiple instruments, including drawdown of foreign exchange reserves, monetary tightening, augmentation of reserves and administrative measures to dampen speculative outflows and encourage inflows to stabilise market conditions," he said. "At the end it is difficult to say what worked and what did not work and how best to sequence these policies; but surely once the pressure abates it is important to reverse extraordinary measures to reinforce market confidence." .........
Sri Lanka, India in mutual forex reserve investment pact
Central Bank of Sri Lanka and the Reserve Bank of India has inked a deal to buy up to 500 million dollars worth of securities in each other's governments, in a bid to diversify reserve assets. "As a result, the CBSL could now access one of the growing securities markets in the world, realising a considerably higher return for the funds invested," Sri Lanka's monetary authority said in a statement. "At the same time, the RBI investments in the Sri Lankan government securities market would lead to greater stability in the Sri Lankan government bond market."................
Stable government at centre has mitigated political risk: Deepak Mohanty
.............Various policy measures have helped improve domestic fundamentals, said Deepak Mohanty, executive director of RBI, in a paper presented at the SAARCFINANCE governors’ symposium in Colombo, Sri Lanka on Thursday.SAARC stands for the South Asian Association of Regional Cooperation. Noting that the impact of tapering of the US Federal Reserve’s quantitative easing measures have had limited impact on emerging markets including India, he said emerging markets economies are now better prepared to cope with the...................
Let's have one-coin-one-shape policy
My View on "Size does matter: Why RBI, govt are looking to re-...":
We have only a few coins in circulation ie one rupee, two rupees, five rupees and ten rupees and unfortunately it is impossible particularly for blind persons to distinguish between one rupee and two rupee coins,Some times even one rupee and five rupee coins also look very similar, It is really not intellible why it is that difficult to produce coins of different denominations which can be distinctly different from one another. When the looks of human beings running into billions and billions are different from each other is it really a task for the Government to have these four denomination of coins to have different looks and designs so that public can feel the difference between each denomination by touch or by look.
- Dr.T.V.Gpoalakrishnan
There are number of coins in single denomination, say Re 1/ or Rs 2/- and not only for the visually challenged persons but also for the old people - including some retired officers from RBI - it is all the more confusing. While the Govt & RBI are concerned about One-rank-One-pay it is high time that the policy of one-coin-one-shape was followed. Also shapes could be different like one anna, two annas, etc. in the 40's and 50's In US the 'quarter' which is in use in large numbers, the size has remained the same for quite sometime.
- M A Srinivasan
I agree with TVG and MAS. Social groups representing the blind had taken up this issue earlier. Last few years, minting of coins was being done, perhaps, with making enough coins in the ‘market’ as the main objecive. Though rockets were being ‘indegenously’ produced, coins –from gold coins for sale to 50 paise coins- were being minted outside India. It is heartening to note that there are some moves to access expertise within the country. We live in eternal fear. If import duty is imposed on a commodity, we fear that commodity will be smuggled to India. If higher quality metal is used in coins, coins will be melted. Does this fear indicate less faith in law enforcement? Now that coins of value below one rupee are not much in use, taking care to make one rupee, two rupees, five rupees and ten rupees coins user-friendly should be easy.
- M.G.Warrier
Bank scam-tainted ex-RBI man faces arrest as SC rejects bail
NAVI MUMBAI: Raigad district police is set to arrest a retired Deputy General Manager of Reserve Bank of India, Abdul Bari Khan, in the Rs 650-crore bank scam of Pen Urban Co-operative Bank. The Supreme Court recently dismissed his anticipatory bail application................
Beware of fake number for ATM hoax!
+919771365967 this is an ATM fake call number claiming to be calling from RBI stating that your ATM card will be blocked for 6 months if you do not give the information he is asking for and the card will be active again after 6 months and this done to check fake ATM cards operation. Do not give your a/c or atm info to any such caller. Spread the word.
Dear all
Today evening I received two calls from No. +917544807990. The person on the other side informed that he was from RBI, Mumbai and wanted to know the details of ATM card/s, I am using, for verification purpose. He could not reply, when asked from which department of RBI he was. He just wanted to know the name/s of the banks and 19 digit number of my ATM cards. When I refused to provide the information and told that he was a fraud, he just disconnected the call. Please be careful, if you get a call from the above number.
- R L Taneja, Ex-Assistant Manager, RBI, New Delhi
Don't act as Big B - M.A.Srinivasan
This idea would answer the criticism that India is being cowed down by World Bank or IMF and is a challenge in some measure to the monopoly of WB, which is obviously 'managed' by a Big Brother. Hence it would be wise for India NOT to act as a Big Brother - but to act as a facilitator. But as a loud thinking, are we going a bit fast or ahead of time - while there are already ADB and BRICS bank independent of WB ?
- M.A.Srinivasan
RBI likely to maintain status quo in Aug policy:SBI chief
........."I think status quo is more likely," she said when asked what her expectation was from RBI policy review. On capital requirement, Bhattacharya said: "There are various scenarios, various requirements...At this point of time when the credit growth is not too much I am not seeing any immediate requirement. But going ahead, of course there will be requirement on the capital front."............
Muthoot Fincorp welcomes RBI directive
.............homas John Muthoot, Chairman and Managing Director, Muthoot Fincorp, said, "We see the RBI guidelines as a very positive move towards introducing basic banking facilities to the unbanked population in India".........
Bank & NBFC of same promoter group can't coexist: RBI
Non-banking finance companies (NBFCs) eager to enter the banking space might have to wait for more time, since the banking regulator will not yet permit co-existence of both banks and NBFCs of the same promoter group. Following the recent issue of draft norms on licencing of small and payment banks, NBFCs were not sure if opening of such an entity would mean they'd have to give up their existing business..............
Dealing with bank failure
............It is doubtful whether higher capital adequacy alone can prevent the recurrence of Black Swan events such as the 2008 global financial crisis. Bank runs have to do with public perceptions regarding safety of deposits, going beyond mere capital provisions. This is not to understate the risk that large PSBs pose. Their proclivity for lending to risky projects stems from a combination of political pressure and the confidence of a government bailout in the event of a crisis. But the way to deal with this is to tighten prudential norms on lending and conduct stricter assessments of non-performing assets (NPAs). The RBI has done well to coerce banks into formulating credit action plans for loans............
Making banks safer
............While this is a measure consistent with the global pattern, the increment being proposed is smaller than that enforced on global systemically important banks (G-SIBS), which is around two per cent. Of course, the context for the two categories is quite different, with failure of the G-SIBs posing a threat to the world's financial system. But, that apart, it must be accepted that the analytical foundations for both the basic capital adequacy norms and the premiums for D-SIBs and G-SIBs are tenuous. Their effectiveness can only be gauged when the system is under stress; if found wanting, they are made more stiff and, once again, only the next crisis will demonstrate ............
Wanted: rules to rein in chit funds
.............M.K. Verma, Regional Director (Bihar and Jharkhand), Reserve Bank of India (RBI), revealed that the committee, which liases with the state government, RBI and other regulators such as Sebi, took this decision at a meeting in Ranchi on Thursday. Speaking to media persons at the RBI office, Verma, who is also coordinator of the committee, rued that although Jharkhand had enacted Protection of Interest of Depositors Act, it was yet to frame rules. Therefore, the committee decided to approach the state government to expedite framing of rules. It also decided to ask the state government to first, create a post of registrar of chit funds and then appoint a competent person for better functioning of the system. “There is a need for designating a competent authority from the government’s side to tackle NBFC-related issues and sharing information with committee members,” he said............
Bill cleared to empower Sebi to deal with Ponzi schemes
..........“I have not formally seen what has been approved by the cabinet or what was the proposal. But if it is on the lines approved in the earlier ordinance, then there are two-three most important things. The first is unauthorised deposit collecting investment schemes, the second relates to the area of Sebi's ability to recover the penalties and the third would pertain to special courts where people can be prosecuted, if they have violated the regulator's norms,”.....
Why RBI’s flip-flop in gold loan regulation is sending confusing signals
.........There are two interesting aspects to the development: For one, there was never such a ceiling applicable on the quantum of loans that gold loan NBFCs, which control half of the market, can give to customers against the pledged gold; secondly, according to bankers, even commercial banks have been giving loans much above Rs 1 lakh all this while, even when the said limit was supposedly in place. That means, for all practical reasons, no one seemed to know or they didn't take the rule very seriously even when it existed. Bankers, for that matter even the RBI, do not seem to be convinced about the central bank’s rationale of setting a limit on the quantum of loans that can be borrowed against gold........
India made a Great move in Payments, Thanks to RBI
...........“Mobile payments could not be expanded, as telcos were unable to offer cash-out transactions. Though RBI’s proposals don’’t allow telecom operators to set up banks to lend, we believe they will allow cash-out transactions, which enable a consumer to withdraw at any location. This can be a game-changer to boost mobile payments and financial inclusion in India as in Africa.”..........
HDFC-HDFC Bank merger: Who benefits?
............Merger talks between the two entities clearly shows how the market works in discounting future events. Even as the managements of HDFC and HDFC Bank have denied any merger talks, analysts have already started discussing on how to play the event. It is as though merger between the two is now only a matter of time and ............
Managing money both an art and a science
...........If managing money is so simple, why do people go wrong? It is because of behavioural biases that many investors have. Typically, we like to follow what the latest fad is. For example, as equity investments are generating high double-digit returns now, many are moving their investments to stocks. But keeping all eggs in one basket can be very dangerous for an individual investor. Secondly, ........
The Implications of India’s 2014 Budget for Financial Inclusion
.............These are great steps forward, but from what we have seen so far, minimum capital requirements for these kinds of entities may be too high to allow real experimentation. The government must work hand-in-hand with the RBI to enable a range of actors to work more effectively and flexibly together, encourage the harmonization of the patchwork of standards, and allow for them to leverage each-others’ expertise and infrastructure to deliver innovative and consumer-centric products to the market. To accelerate financial inclusion in India, the government will need to continue to partner with the RBI,.............
Trading by Banks in Currency Derivatives to be as per RBI Norms: Sebi
..........Market regulator Sebi in a circular said that "banks, whether participating in the currency derivatives segment as clients or as stock brokers, shall be guided" by the provisions of RBI. Besides, the regulator said that domestic institutional investors can take position in foreign currency up to $100 million or equivalent per exchange in the currency derivative segment..............
Satyam, Sahara, SEBI
Financial crime doesn’t pay. This is obviously the message the Securities and Exchange Board of India wants to send out through its mammoth disgorgement orders. In the Satyam case, SEBI has directed Ramalinga Raju and four others to deposit with it a sum of ₹2,350 crore with interest for insider trading and unfair manipulation of the company’s financials and stock prices. Prior to this, SEBI had directed Sahara’s Subroto Roy to refund ₹24,000 crore raised through illegal debentures. With monetary penalties and securities market bans failing to deter financial frauds, it may seem in order for SEBI to force big-ticket offenders to disgorge their unlawful gains. But if such refunds are to serve............
What You can Learn from Mallya, Roy and Shah
.......What do you learn from all this? India is changing, even if some find the pace glacial. You can no longer get away with doing what you did in the good old 1980s. Building fountains over garbage dumps has become a lot more difficult. The tips you once picked up from the lives of your flawed icons are useless. You can still manipulate the system, but it’s far more risky............
Read - ET
Banks Initiate Process of Declaring Kingfisher Airlines as Wilful Defaulter
............."Some banks have already started the process," Financial Services Secretary G S Sandhu said when asked whether the banks are going to declare Kingfisher Airlines and its promoter Vijay Mallya as wilful defaulters...................
ICICI Bank launches 'ProCircle' for NRIs
............This programme is designed to cater to the specialised needs of professionals transacting on the Money2India (M2I) platform. It offers its members smooth and quick money transfers with exclusive benefits. ProCircle members are also entitled to preferential rates and a complete waiver on the service charges for every M2I transaction, the bank said in a statement..........
A matter of clicks
Technology has played an important role in streamlining the tax return filing process, which is now almost paperless. A taxpayer is not required to submit any supporting documents, return forms are downloaded from the income-tax web portal with an easy-to-understand procedure for filing returns electronically..........
I-T dept to work on Saturday and Sunday
......"Special arrangements have also been made by way of opening additional receipt counters, wherever required, from July 26 to 28 and July 30 and 31 to facilitate the taxpayers in filing their returns of income conveniently and in a timely manner,...........
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