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.
Saturday, August 9, 2014
Vittaldas Leeladhar to be honoured
Think for an internal solution for lateral entry - Sitendra Kumar
My View on "United Forum's letter to Governor/Members of the C...":
Today in VITALINFO, there was news that UNITED FORUM has protested against LATERAL RECRUITMENT of Grade F officers in DEPR. Where is the need to do so? They must think on established pattern in Central Government for career progression and not unnecessarily put brakes in increasing the talent pool of RBI. What talent has to do with age? Why we keep on harping that we have an army of well-trained competent officers in various levels whereas truth is that the existing economic laws have failed to provide any solution to various myriad problems and efforts to evolve new economic tools are going on. A stagnant water smells. Why keep on raking stagnancy problem in RBI when no such problem exists in various all India services? These services have created a large number of posts to which officers are promoted in a time bound manner .All are promoted to HAG+ and Apex levels irrespective of number of vacancies. We can also find an internal solution to this problem but lateral entry in the field of Risk Management and Research is a must.
Today in VITALINFO, there was news that UNITED FORUM has protested against LATERAL RECRUITMENT of Grade F officers in DEPR. Where is the need to do so? They must think on established pattern in Central Government for career progression and not unnecessarily put brakes in increasing the talent pool of RBI. What talent has to do with age? Why we keep on harping that we have an army of well-trained competent officers in various levels whereas truth is that the existing economic laws have failed to provide any solution to various myriad problems and efforts to evolve new economic tools are going on. A stagnant water smells. Why keep on raking stagnancy problem in RBI when no such problem exists in various all India services? These services have created a large number of posts to which officers are promoted in a time bound manner .All are promoted to HAG+ and Apex levels irrespective of number of vacancies. We can also find an internal solution to this problem but lateral entry in the field of Risk Management and Research is a must.
- Sitendra Kumar
Outsourcing officers in higher grades is not new to RBI. Bank has outsourced engineers, security advisers, press relation officer etc. Now, it is the turn of common cadre officers - For wider choice of merit in selection of CGMs for the Central Office HODs. Why United Forum is objecting this now?
- Capt. C B Gupta
Questionable stand on specialisation - M L Mahajan
My View on "United Forum's letter to Governor/Members of the C...":
I congratulate the Leadership of United Forum for putting up their defence so effectively against the proposed restructuring of different functions of the Bank in the name of efficiency and specialisation. Specialisation was there in the Bank which had benefitted a few and was thus replaced by introduction of Combibed Seniority in 1972 after it was upheld by the Apex Court of the country. Four decades down the line specialisation is being revisited, is questionable and needs to be resisted jointly by all. I hope Bank would see reasoning in the averments made in the said communique by United forum and would take it on board while implementing the report..
- M L Mahajan
Exclusive interview with Daman Singh author of ‘Strictly Personal’
............Maybe some people would call it fate, but I don’t think it’s just that. Basically, my father started his career as a lecturer in Punjab University. He’s never applied for any job ever since, the offers just came to him. That’s how he went to the UN, to Delhi School of Economics, to the Ministry of Foreign Trade, the Planning Commission, RBI etc etc etc. .............
Raghuram Rajan gives Narendra Modi an excuse for going slow
Raghuram Rajan may be too good a central banker for India’s own good. Of course, the stability the Reserve Bank of India (RBI) governor has bestowed on Asia’s third-biggest economy is a good thing. When he started the job 11 months ago, the currency was plunging and markets were betting the country would be the first.......
Centre to take a leaf out of Chouhan's rural banking plan
..........The challenge before the state was the large tracts of unbanked areas where pay-outs by the government under social development schemes became a problem. With the help of nationalised banks, the state government started in these 'shadow' areas what the Reserve Bank of India called ultra-small branches, Sharma said. But there were major innovative differences between the RBI's definition of an ultra-small bank and the Madhya Pradesh 'samriddhi' banking. The RBI requirement is that an ultra-small bank should have a minimum core banking solution terminal linked to a passbook printer and a safe for cash collection. It could be even a mobile banking system operational from a van or a kiosk. However, in Madhya Pradesh .............
Syndicate Bank may be a candidate for merger
.........Although the government is yet to receive any formal proposal with regard to bank mergers, the Bombay-based United Bank of India, Dena Bank and Bangalore-based Syndicate Bank make a case for losing their individual entity. “UBI is a weak bank. There a list of another weak banks too. Syndicate Bank could be another. There is Dena Bank also. They need to be merged but we still do not know who could be the possible candidate for take over,” the official told Deccan Herald. ............
More cover needed
.................. As RBI Governor Raghuram Rajan recently said, the extent of the turbulence once the Federal Reserve and other central banks begin hiking interest rates cannot be gauged by anyone. We have received $12 billion of funds into stocks so far this year and $13 billion into debt. While not all the money that has been invested in equity will flow out — since equity investors have a longer investment horizon and are betting on improvement in economic growth and company fortunes —– the entire inflow into debt is at risk since ...........
Workshop to make police aware of bank frauds
.............The workshop revolved around frauds related to credit cards, internet banking, lotteries, etc. Deputy commissioner of police Sandeep Diwan said, "The workshop was organised as a large number of such frauds have been reported in different parts of the country. Nashik police personnel should be acquainted with the working processes of banks when they have to deal with such complaints in the future." Diwan added that many a times...........
Now, get credit or debit cards in just an hour, courtesy Citibank
.......“A pattern that has been observed is that most card users who have received an instant, pre-activated card make their first purchase within 8 hours of receiving it. This helps banks significantly reduce the cycle time between a credit card application, and the receipt of the card by theuserand the first usage –and in turn see an uptick in their interchange revenues,” ..........
Govt orders 5 Bharat Ratna medallions from RBI mint
NEW DELHI: The government is learnt to have ordered five Bharat Ratna medallions from the RBI mint, escalating speculation that the highest civilian honour may be awarded to more than one person around or after this Independence Day. ..........
ICICI Bank organises 21 coin exchange melas in four states across North India
.....The melas took place in line with the guidelines of the Reserve Bank of India. The melas were flagged off by RBI officials P.K. Lamba and Ram Sarup in the Chandigarh Sector 35 Branch. The melas were organised to offer free facilities of exchanging currency notes with coins to the general public as well as provide fresh currency notes in exchange for soiled and mutilated ones. Anyone.....
Opening bank branches in India, Pakistan might take some more time
......Indian public sector banks State Bank of India and Bank of India had their branches in Karachi and Lahore till 1965. However, they were shut down following the war between both countries that year. Ali said all processes concerning the grant of 'Most Favoured Nation' (MFN) status to India has been done by the Pakistan government. However, he also indicated that a final decision on this will be taken only after the meeting of both foreign secretaries on August 25....
Western Union may apply for payments bank licence
................"We are definitely looking at applying for payments bank. It is an opportunity for us and we are visiting it. The payments bank guidelines are a reflection that we need to be able to provide a broader set of financial services to a very broad community and the traditional ways of doing that are just not working," ...................
IDFC appoints Ravi Shankar to head proposed rural bank
Mumbai: IDFC Ltd has appointed Ravi Shankar, head of business and marketing at Fullerton India Credit Co. Ltd, to head its new bank, Bharat Banking. Shankar will build the rural banking business and drive all financial inclusion initiatives at the bank, the infrastructure financier announced on Friday. He assumes the role with immediate effect.....
Infosys, HDFC Bank Basing As India Wrestles Inflation
.............The data also hinted at some caution, with input prices accelerating faster than expected. That is a key concern in a country with consumer price inflation running at 7.3%, although down from 10% in 2013. Despite that threat, the Reserve Bank of India voted this week to leave its target interest rate at 8%. It sees inflation cooling off further and projects 5.5% growth for the country's economy this year.
Against that backdrop, ...............
ARC fees: RBI restores sanity
......This model will do away with the need to determine NAV based on the subjective and often unrealistic credit rating needed in 15:85 structure, and will, therefore, be more scientific and cost efficient. It is expected that in due course, RBI will adopt this alternative recovery based fee model. To sum up, the 15:85 structure is the right move but not final. ARCs will.....
SBI Wants External Team to Manage Bhushan Steel
..........“We will try to bring in a management agency which will oversee the day-to-day running of the unit during this period,“ State Bank of India Chairman Arundhati Bhattacharya told reporters in Mumbai on Friday. “We don't want it getting into any kind of trouble and create trouble for our exposure.“......
Read - ET
The friendly lender is here
...............Whatever the methodology adopted by SBI, or other banks and financing institutions, there is increasing interest shown by banks/other financial institutions and by the regulator, Reserve Bank of India, in recent days to increase the coverage of housing loans. This is commendable and deserves to be welcomed. For some time, the RBI has frowned upon the many frauds in property loans granted by banks, mainly bulk loans, and had even increased the risk weight for home loans as a cautionary step. Now proposals in the ......
One bad apple?
...............While there must be a presumption of innocence until there is a verdict of guilt, the facts as they have been reported raise some larger questions about public sector banks. Are the huge NPAs in PSU banks entirely attributable to economic adversity and bad judgment? Or do we have reason to suspect that they owe significantly to governance issues? The Syndicate Bank case draws attention to the bank’s loan appraisal and risk management systems. Even assuming the CMD enjoyed the discretion to make suo motu lending decisions without consulting the internal committee, how could there be a discretionary element in recognising NPAs? ............
RBI Governor's Tough Inflation Stance Risks Stand-Off With Government
....Mr Rajan, well known within the RBI for pragmatism, now must work with the government of Prime Minister Narendra Modi, which understands the need for - and wants - lower inflation, but doesn't see the value in hard targets. The governor's people skills may be tested when Finance Minister Arun Jaitley attends Sunday's RBI board meeting in Delhi, representing a government that is equally keen on boosting an economy that has just had two consecutive years of sub-5 percent growth.....
RBI to reschedule loans only in four districts
.................The State government wrote a detailed letter on July 4 justifying the need for crop loan rescheduling and cited various other factors such as consecutive years of natural calamities, rising input costs, lack of remunerative prices that drained the farmers financially and drove thousands of them to commit suicides. In its response, the RBI apparently relented to reschedule crop loans only in four districts- Srikakulam,Vizianagaram, Nellore and Krishna districts. But significantly Nellore district did not figure in the list of affected districts notified by the previous government. The RBI also believed to have made it clear in its communication that it would reschedule only pure crop loans and not gold loans, ie those availed against pledging gold............
SBI sees surge in agri loan defaults
..........."We believe that these two states have a lot of potential and unless these two states have access to bank finance, they will not be able to come up to full potential," said Bhattacharya speaking of the damage caused by defaults. "The loan waiver announcement has had an induction effect in other states and the repayment culture was affected. The main culprits are the states that are about to go to polls," said Bhattacharya, highlighting the risks of defaulting.........
CBI on Mallya’s doorstep
.......The agency registered the PE after finding IDBI’s report “not convincing”. The agency asked the public sector bank why it provided Kingfisher with the loan when the company was in the red. The bank’s answers were not convincing, a CBI source said. Prima facie evidences indicate the involvement of bank officials, the source said. The CBI will look into Mallya’s role — the representation he gave to avail Rs900 crore. Also, it will investigate if Mallya used the money for the purpose he took it for. Once the investigations are completed, the CBI is likely to file an FIR. Currently, investigations are in an early stage because IDBI officials are apparently reluctant to part with files related to the loan. “Some files have arrived. We will soon obtain the rest,” the source said..........
For SBI, a long, slow haul ahead, just like the economy
..................But the manner in which those gross NPAs have come down is not particularly encouraging. Recoveries and upgrades were lower than in the March quarter. Write-offs were higher, as a result of the sale of loans to asset reconstruction companies. And fresh slippages too increased by 25% compared with the March quarter. They increased particularly in the small and medium enterprises and agriculture sector, the latter because of the waiver promises made in Andhra Pradesh and Telangana. Loans to the mid-corporate segment continued to see high slippages, which highlights ........
Saradha scam: CBI conducts raids in Odisha
............CBI sources said role of regulatory bodies like the Securities Exchange Board of India (SEBI), the Reserve Bank of India (RBI) and the corporate affairs ministry will be examined according to the orders of the Supreme Court which had directed the CBI to probe the case. The agency has registered cases for alleged criminal breach of trust, cheating and criminal conspiracy among others. In 47 first information reports registered in Odisha, ...........
Cheque-bounce trial gets tedious
Recovering money if a cheque bounces will now be a lot more tedious and costly. In a landmark judgment, the SC has changed the ground rule under Section 138 of Negotiable Instruments (NI) Act to prosecute a person who had presented the cheque that bounced due to insufficiency of funds. Earlier, a case under Section 138 could be initiated by the holder of the cheque at his place of business or residence........
Read - TOI
Read - TOI
Exhibition draws crowd
.............Also, stall by Tamil Nadu Water Supply and Drainage Board, Reserve Bank of India and Steel Authority of India Limited explained the various ongoing projects and activities. About 70 private stalls displayed consumer materials, play materials for children, eateries and shops that sell various items. The 45-day exhibition was inaugurated on .......
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