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| Subhash Sheoratan Mundra |
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Friday, August 1, 2014
SS Mundra assumes office as RBI Deputy Governor
Bank of Baroda announces cessation of Chairman cum Managing Director
Bank of Baroda announced that the Central Government, vide its notification dated 30 July 2014, has appointed S. S. Mundra, Chairman & Managing Director of the Bank as Deputy Governor, Reserve Bank of India for a period of three years from the date of his taking over charge of the post. Accordingly, he has been relieved from Bank of Baroda on 30 July 2014 on the close of working hours and therefore ceased to be Chairman & Managing Director of the Bank.
Gold Bank - An idea whose time has come - M.G.Warrier
If RBI is able to make the right moves and convince Government of India about the advantages of setting up the Gold Bank, the move could alter India's Gold landscape forever!............
Gold premiums in relative check
...........In June, there was a widespread expectation of a cut in the Union Budget in the tariff on gold. From mid-June till Budget was presented on July 10, gold was even quoted at a discount to the cost. RBI had also, in May, permitted star trading houses to import gold, resulting in a steep increase in June inflows. In that month, 92 tonnes arrived in India officially. Importers were offering gold...............
Suggestion merits consideration
My View on "Small banks or banks for ‘small’ people? - Vijay M...":
Vijay Mahajan has proposed most important changes needed in the draft guidelines of the RBI. The area limitation has affected the growth of RRBs and later LABs. Of course, Basix, the parent organisation of Vijay Mahajan has also a LAB and with all its excellent team and resources available, it is unable to expand. Similarly, his suggestion to keep a cap on the loan amount to one unit (individual/firm/co) merits consideration as otherwise the unbanked and the underbanked will continue to be excluded. In fact, the asset portfolio of small banks should have at least 85% of their loans to the financially excluded. Add the non-asset based services such as remittance services for all, pension services for all, insurance services for all etc.
- S.Santhanam
Govt looks to extend mobile banking to all types of phones: Arun Jaitley
..................The government plans to use a mix of small branches, kiosks, ATMs (automated teller machines), business correspondents and mobile banking to ensure better and faster access to banking services for the rural and urban population. The Reserve Bank of India (RBI) is also in touch with various entrepreneurs to look for innovative technologies that can enable mobile banking to be used on all types of phones. To be sure, bankers admit that this will be a difficult task...........
The monetary policy angle
..........This is the ideal moment for RBI to give a signal that it favours soft rates to maintain the growth momentum visible in industry and elsewhere.
At a turn and yet not
..........But can it be said with certainty that inflation risks have altogether disappeared? There is, of course, the near-term risk of a deficient monsoon, which could push up food inflation. Looking to long-term inflation expectations, RBI could well choose to see through a short-term, transient spike. But the sequential rise in inflation momentum is a factor. More subdued at retail levels, the pick-up in core-WPI inflation has steadily sustained for eight, successive months; quite unlike CPI-core inflation, which shows......
RBI policy: The danger has not yet passed
............That said, the policy implication is clear. The government needs to tackle food inflation on a war footing, releasing stocks of cereals, importing pulses and oilseeds, cracking down on speculative hoarding and transporting food stocks quickly from surplus to deficient areas. And the RBI needs to maintain its anti-inflationary stance to ensure wage pressures remain muted. All told, the need for a complementary policy stance between Delhi and Mumbai could not be greater. We, therefore, expect the RBI to............
Reserve Bank likely to focus on liquidity management
............Harding believes RBI has a choice between a cut in policy rates or to raise the amount of refinance from the overnight repo counter from the current 0.25 per cent of net demand and time liabilities (NDTL). In July, RBI has infused about Rs 170,000 crore by way of term repos; even so, overnight rates continue to be volatile. Banks have not been tapping the Marginal Standing Facility of RBI much and there have also been .....
RBI: Three burning questions
We continue to expect RBI Governor Raghuram Rajan to hold rates on August 5. That said, three questions arise. When will the central bank cut rates to support growth? We do not see any material change .........
Reserve Bank of India to unveil third bi-monthly policy review on August 5
MUMBAI: Amid expectations of a rate cut to boost industrial activities, the Reserve Bank today said it will come out with its third bi-monthly Monetary Policy Review on Tuesday. The central bank in a release said: "The Reserve Bank of India will announce the Third Bi-monthly Monetary Policy Review, 2014-15 on Tuesday, August 5, 2014." ..............
Watch out! tricksters with fake notes on prowl
...........The ease with which they are able to exchange fake notes for genuine ones is mainly attributed to people’s negligence and ignorance of the features of a valid currency note, and sources of distribution of the currency. In the Kalidindi incident, counterfeit notes worth nearly Rs. 5 lakh were seized from eight persons who cheated gullible customers across Krishna and West Godavari districts. Six more accused in the same case were nabbed at Gudivada on Wednesday and Rs 2.10 lakh worth currency was seized from their possession. Tracking the original sources of fake notes in these two instances proved to be a daunting task for the police who have not yet found definite clues........
The Blue Boy ReTyres.............
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| Shri Mukund Sakulkar - The Blue Boy...... |
I retired from Bank’s service
as at the close of business on July 31, 2014 after putting in long 39 years of
service in this premier institution. During these long years, I had the
opportunity of working with many of you. When I reminisce the bygone years, I
am flooded with a sense of nostalgic feelings of many sweet memories. I owe a
lot to all of you for your unstinted personal and professional support and
guidance. As it would not be possible on my part to interact with all of you at
this point of time directly, I take this privilege to convey my sincere
gratitude to all of you. I will treasure the happy memories of my pleasant
association with all of you and earnestly look forward to interact with you in
future.
- M.P.Sakulkar, Manager, CAB, Pune
Financial Inclusion Mission to be big I-Day announcement
.........“The government is targeting the individual household rather than the village … this is a marked shift from earlier efforts where only opening of account was the focus of the financial inclusion drive,” Mr. Jaitley said. This is a big challenge and there are several difficulties such as lack of connectivity and infrastructure,........
High court lets Canara Bank take over Amanath
.........ustice Ram Mohan Reddy passed an order to this effect while hearing a batch of petitions filed by stakeholders both in support as well as against the merger. He has adjourned further hearing to November. Canara Bank will take over specified assets and liabilities of ACB. The doubtful assets will remain with Amanath Cooperative Society. The court also asked authorities to publicize through newspapers and television the working hours of the branches of ACB.........
Corporate Governance of Banks- About Time for Some CoCo?
............If CoCos issued to bank executives and directors have accounting trigger, they ought to have higher triggers than those issued to the investors, to align their interests strongly to the CoCo investors. Higher trigger for CoCos issued to Directors can in fact convey a leading signal for banking firms to recapitalize. The RBI has already recognised contingent capital instruments as Additional Tier I instruments in its recently released Basel III Guidelines. The RBI should augment that apparatus by mandating key banking personnel and non-executive independent directors to be paid equally in contingent convertible bonds and equity-based pay so that............
Banks bet on core bonds
............However, Chanda Kochhar, managing director and CEO of ICICI Bank, today said it was early to say whether funding costs would indeed come down. “We look at the pricing of loans based on the overall cost of funds. It is too premature to say what it (the RBI steps) will do to the overall cost of funding,” she said. Kochhar confirmed that the bank had launched an infrastructure bond to raise Rs 500 crore. The issue........
SBI Caps to make report on PSU bank merger within a month
.........."We have asked SBI Caps to do a study... We have given them two assignments. One is on the recapitalisation and other on bank consolidation. I hope within a month or so we will be getting something," .......
Expect turbulence with public sector bank mergers
............While mergers take care of accounting, legal and regulatory requirements, the banks face challenges of wages and compensation fitment, culture and systems and info technology platform integration, said experts and senior PSB executives. And, the resistance from bank staff and employees unions and local political interest could pose a formidable challenge. C H Venkatachalam, general secretary, All India Bank Employees’ Association (AIBEA), said there is absolutely no case for consolidation. There is enough space for many banks to do business when half the population is yet come under the ambit of financial services.........
RBI faces challenges in issuing differentiated banking licences
...............The new players will have to take banking solutions to the doorsteps of rural folks using technologies that can process transactions instantly. But why would a customer go to payment banks when post offices exist in every nook and corner of the country? There are over 1.55 lakh post offices and 90 per cent of them are in rural areas. People are also familiar with post office savings product that offers four per cent interest a year and five-year recurring deposits with 8.4 per cent a year. But experts are not amused. "Post offices don't have the technology backbone. The model is brick and mortar, which is a costly way of doing business," says Gupta. People's interaction with post offices is diminishing. "Nobody in metros or urban areas goes to post offices to send letters," says Amit Lakhotia, Vice President (Payments) at Paytm, an RBI-licensed prepaid card provider.........
Stake dilution in govt banks to start in November: Sandhu
.............“It will be a combination of follow-on public offer (FPO) and, in some cases, it will be through qualified institutional placement. It may start around Diwali, most likely November,” he told reporters after a meeting with the heads of PSBs and other financial institutions............
AP CM speaks with RBI Governor on loan recast
..........Following the conversation the RBI Governor has suggested to the state government to send a team of officials to discuss the issue with his executive director, according to the statement.
Madras HC appoints provisional liquidator for First Leasing
.............The bank counsel alleged company officials and employees colluded and stripped the company. At least two forensic reports have come out on the financial issues in the company - one from the Reserve Bank of India and another by an expert appointed by the company's board of directors. A large number of employees had submitted their resignation letters and under this circumstances, the operations of the company had to be taken care by a provisional liquidator, he argued...........
ARCs lap up half of bank bad loans on sale
..............he remaining consideration is issued as security receipts to the banks in lieu of payments that ARCs will make over a period of eight years based on their recovery. In order to prevent a pile-up of NPAs, the regulator has asked banks to segregate accounts on the date of repayment from the time they are 30 days due, 60 days due and 90 days. Banks such as SBI and BoI have started selling off accounts from the time they are due for 60 days. According to the RBI data, the gross NPAs of commercial banks were 4% of total advances in March 2014, while in the year-ago period it was 3.4%.....
Bitcoin Thriller
.......It is a villain. I believe the Bitcoin is bad in its current avatar. But a better version of it might emerge in the future, with more control. Right now the Bitcoin is about anonymity. It uses a protocol called TOR (The Onion Router) that allows the giver and receiver to remain anonymous, which makes it dangerous. In my book, it's used by the criminal underworld..........
It's Not Too Late to File Returns
Missed the deadline to file in come tax returns on July 31? Don't feel dejected. You can still file the returns without paying any penalty. Yes, contrary to the perception of many tax payers, there's still enough time to file your returns until March 31, 2015. However, there will be some implications. In fact, tax payers are allowed to file belated returns for two preceding financial years, even after the deadline. That is,...........
Read - ET
Read - ET
Women investors are confident, not overconfident
Finance and investments are generally considered masculine areas. A cursory look at the proportion of women in the finance profession as compared to, say, teaching or information technology, tells the story. However, careful academic research has established that women are more suited for stock trading than men. The chief differentiating factor between the two genders is the level of overconfidence in matters pertaining to finance. ...........
Loans targeted at women are beneficial
.............Though women-specific loans offer benefits, the case isn’t the same with women-specific deposits. Banks offer savings bank accounts for women with additional features but often, the minimum balance required is higher. For instance, the quarterly minimum balance required in case of Federal Bank’s regular savings bank account is Rs 1,000. But for its Mahila Mitra savings bank deposit for women, the requirement is Rs 5,000........
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