RBI Governor Dr. Raghuram Rajan has proposed amendments to the RBI’s structure by making department clusters and creating the additional post of Chief Operating Officer. However, the employee unions have voiced their disapproval to the proposed restructuring plans. Harsha Subramaniam discusses Dr.Rajan's plans to restructure the RBI and the possible roadblocks with T.T. Ram Mohan - Professor at IIM-Ahmedabad...
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.
Wednesday, August 20, 2014
Guv Listens to, Reassures RBI Staff, Reiterates Need for Rejig
...........“Our apprehensions were discussed at length,'' said Samir Ghosh, convenor of the United Forum of RBI Officers and Employees. “The governor was not rigid, and was open to dialogue. He said globally the scenario is changing and central banks all over the world are changing. There's a need to realign accordingly ,“ said Ghosh.“The governor said our apprehensions could be looked into and there can be further discussions. He even asked us to come back with a structured proposal,'' he added............
Read - ET
No outsider as RBI COO, guv assures staff
To assuage the fears of the employees about the Reserve Bank of India’s restructuring proposal, governor Raghuram Rajan along with the deputy governors assured them that no outsider would be appointed to the post of the chief operating officer (COO). Rajan on Tuesday assured the staff that any lateral hiring would be done on a contractual basis.........
Take five
...........But in making one, the RBI must present it transparently and in a manner that explains why the RBI Act must be amended to enable the appointment of a fifth Deputy Governor. Of course, if the appointment of the COO is at the level of an Executive Director, it can arguably be done without statutory changes. But these are matters that require public clarification. Also, it is important to dispel the misimpression that the RBI is batting for the appointment for a specific person rather than for the creation of a post that will strengthen and improve its functioning..........
RBI revamp - M.G.Warrier
There cannot be two views on the need to revamp the organisational structure and restore the pride of the RBI by redefining its role in the context of changes in the financial sector during the last couple of decades. Such a revamp is overdue in all public sector organisations and government. But the manner in which proposals are being made and the inept handling of the whole issue makes one wonder whether an organisation which had received appreciation at the international level for its appropriate management of monetary policy and other role expectations is finding itself in the lurch when it comes to managing its own house. Raghuram Rajan is a fast learner and the willingness expressed by him to negotiate the HR issues with representatives of staff and renegotiate top level changes where legislative amendments are necessary with the Government are indicative of his open mind. To an outsider, media reports give the that Rajan initially addressed internal issues like the CEO of a startup company. The RBI has a glorious past and a team that can handle its mandated role efficiently. The regrouping of departments or coordination of the deputy governors should not become street discussions.
`No Set of Rules Remains Relevant All the Time' - S.S.MUNDRA
Read - ET
A Century in Real Life!
You will recall that I had --on August
7th--requested Governor Raghuram Rajan to send a team from Chennai office
to felicitate Shri.P.V.Krishnamurthy of that office on his completion of 100
years. I had followed it up with a personal request to Shri Bazil Shaikh, Secretary
of Central Board to ensure that this happens. Earlier I had succeeded in
persuading Governor Subbarao to send a team to felicitate Shri.P.M.Nair
of Ottapalam --who missed his hundred by a few months. I am happy and
thankful that both the Governors acceded to my request and honoured two
centenarians. Do read Bazil Shaikh's charming report and view the photo.
- P.P.Ramachandran
- P.P.Ramachandran
Scoring a century in any form of cricket is great indeed! How much greater it would be to score a century in the ultimate test match – the Test Match of Life! In these days where we are besieged by all forms of ill health, it is truly inspiring to see a gentleman living to the ripe age of one hundred years! It was truly a pleasant surprise to discover that we have amongst our RBI fraternity a centenarian! Shri P.V.Krishnamurthy was born on February 22, 1914, a couple of months before the outbreak of World War I. He joined our Bank in the year it commenced operations – 1935. He retired as Manager, RBI Chennai (now redesignated as Regional Director) in the year 1972. After retiring, he worked in the Enforcement Directorate for a few years. He is presently living in Chennai along with his wife, daughter and son in law. Although confined to the chair with age related problems, Shri P.V.Krishnamurty is quite healthy and does not suffer from any other ailment. As Shri Krishnamurthy is confined to the chair, Bank decided to felicitate him on the eve of Independence Day by a personal visit. The Assistant General Manager, Personnel, HRMD, Shri M.A.Nasser and Shri P.S.Ravi, AM, HRMD, visited Shri Krishnamurthy at his Gopalapuram flat and presented him a bouquet. He was also presented a memento on behalf of the Regional Director. Shri Krishnamurthy was a picture of quite contentment posing for us with his wife, daughter and son in law! When Shri Nasser enquired whether the Bank could help by couriering medicines for the centenarian, the answer he received was stunning! Shri Krishnamurthy does not take any medicines at all! Truly inspiring in these days where everyone on the wrong side of fifty (or even before) is on some medicine or other!
May RBI fraternity have more of his kind!
VITALINFO - 'Dedication n motivation on a proper track'
A person who has addiction of taking a cup of coffee early morning will be satisfied even if he gets half cup. It is to satisfy certain neurons in our brain. VITALINFO is an addiction; it is all right to get it partly rather than missing it completely. As faculty members we give examples of Indira Gandhi, Subhash Chandra Bose and American President Abraham Lincoln for their dedication and commitment to work. I have now found one more example for my dedication and motivation class. Hats off to you Mangesh jee. We should demand for an RBI Ratna for you if not a Bharat Ratna.
- Mukesh Kumar, MoF CAB Pune
Wow!!
- Dr.D.Subbarao, Former Governor
Dear Mangesh, Thanks a lot for all that you are doing singlehandedly. Your dedication is unparallel. God bless you.
- Subhash Wadhwa ( Ex CGM NABARD, MD AFC)
Dear Mangesh,
It is a wonderful website making available all financial news in r/o our country at one place. Being away from home in USA I find it very useful. You deserve much more than that what is stated therein. Hats off to your hard work and dedication day in and day out. To collect, compile and compose such vast information and make it available every morning before seven is not a small job. Only a person of your caliber can do it. VITALINFO has become a habit with our members like morning cup of tea. Keep it up.
- Madan Gauria, EXRBITES Group Moderator
Well done dear Tarambale! Your today's work may be titled as 'Running Commentary on a proper track'. Keep it up and keep going!
- M. Y. Bhat, AGM, HRMD, Belapur
Awesome Tarambale ji... Hats off to you for your dedication.
- Anjaya Shyamnath, Manager, Belapur
Dear Mangesh,
The interest shown by all top executives in your blog is a testimony to the quality of coverage and contents therein. God bless you.
- Ravi Sharma
Great!! This is dedication. This is passion. Regards
- Shankarnarayan
Great!! This is dedication. This is passion. Regards
- Shankarnarayan
VITALINFO has become a vital part of our life.Great to see that you have found time for us from a running train too! Thanks.
- Rajappan Nair
Dear Mr Tarambale,
Though it was not an urgency, you still devoted your time in the train for bringing us an update of what is happening in and around RBI. I appreciate your sense of dedication and commitment. Thanks and With warm regards and best wishes,
- P.Aravind
Tarambale sb.
Your commitment has been extraordinary and not possible for the ordinary mortals with their chores of personal issues. Like the running train from which you could able to feed the VITALINFO to the beloved readers, I wish long & unending journey to VITALINFO. I also request you to send the copy of the Vitalinfo to another banker fraternity at email address : kmanjurao@gmail.com
- K R Padmanabha Rao, Project Director, NIRD
Ministry of Rural Development, Govt. of India
Many thanks. Balance we will make up from our own sources or wait for tomorrow's VITALINFO. If it disappears altogether, even for a day, many of us feel having missed something from the daily routine. You are wonderful.Warm regards.
- M G Warrier
Congrats for your commitment and motivation.
- Srinivas Bokkasam
Congrats for your commitment and motivation.
- Srinivas Bokkasam
Dear Shri Tarambale,
When I clicked on VITALINFO today in the office, I heard
a train sound. Your post clarifies the position!!! With best wishes.
- Kaza Sudhakar
Sir,
Please forward two e-mails mentioned below
to Mangesh Tarambale with a request to include them in the mailing list of
updates on Banking.
- S M Inamdar, Assistant Manager, DBOD
Mangesh,
Kindly include
Bangalore RD Uma Shankar in your mailing list.Thanx
- Susobhan Sinha
Xth BPS - Great Idea Sir ji - No Ullu Banawing
..........Thus, now IBA has given an idea for negotiation through letters and not through meetings. Now, it seems IBA wants that UFBU should give in writing that UFBU is agreeable to slash their demand from 25% rise to say 18% to 20%. Then IBA will write back that it is still not acceptable and they can go maximum upto 12%. Again a stalemate and then again IBA will write letter to UFBU to slash demands which UFBU may agree to reduce to say 15%. Then IBA may agree to increase their offer to say 13.5% and UFBU jump to grab the same.............
AIRBIOPF demands interim relief till pension is updated
..... ” it is also gathered that the formal letter of approval from the Ministry of Finance, Govt. of India for the amendment to pension regulation clause 2(2) is yet to be received by the Bank. More than three months have elapsed since the letter of acceptance of the conditions has been sent by Reserve Bank of India to Ministry of Finance, Govt. of India.”........
A complex chain
...........One organisation which knows the stakes, and has been steadily working on the innovations and changes required, is the Reserve Bank of India (RBI). Inclusion was a key portion of the current governor's report to the previous administration on financial sector reforms in 2008. Understanding that commercial banks are not the ideal mode of delivery, Raghuram Rajan's RBI has come up with ideas on limited banking through innovations like payments banks, which can maintain small savings accounts, and small banks. Dr Rajan has spelt out things further by listing the necessary product and process innovations. Products have to be devised to meet the needs of the poor - who have to have a safe place where they can keep their savings, make and receive payments, and borrow quickly in case of need. Besides.........
P K Jena – Regional Director, RBI – Interview – Odisha Banking Conclave 2014
Mr. P K Jena, Regional Director, Reserve Bank of India (RBI), speaking on Odisha Economic and Banking Conclave 2014
Watch the video........
Watch the video........
Bankers with blinkers
My View on "KYC for India":
True it is not easy to open accounts despite pronouncements by top executives of RBI . The banks especially private sector banks work with blinkers without application of mind and brain. Too stickler about documents without appreciating the credentials of the person. Perhaps same predicament was faced by person who headed committee on customer services when he went to open account in Delhi as he had shifted from govt accommodation to private. The bank employees need to be educated about personal interview rather than too much thrust on proof of residence. Transferee officers always face this problem. High time to review the rules.
- Ravi Sharma
India Must Make Drastic Changes In Its Monetary Policy
.....The hard truth is that even if a country “gets things right” regarding spending, subsidies, taxes and regulations, its economy won’t become a thriving, innovative giant with deep capital markets unless its money achieves a Rock of Gibraltar-like reputation for reliability. Raghuram Rajan, the new governor of the Reserve Bank of India (RBI), seems to understand the harmful impact of inflation. But for India to break decisively from its bad monetary habits of the past, two key things are critical...........
Raghuram Rajan's call for coordinated global monetary policy a distant dream
....Governor Rajan's desire that emerging economies have a larger say in setting the global monetary policy agenda is an idea whose time has not come. The reason is simply that the US Federal Reserve does not have a preset path to normalising it's monetary policy over the medium term. Although, the Fed has been reducing it's monthly purchases of bonds and mortgage backed securities (MBS) by $10 billion each month, there is still a lot of speculation amongst market participants as to when ...... ..
Why capping own ATM usage is not a good idea
................Public sector banks – which demanded such cap on free transactions— may not only end up incurring higher cost but also lose market share to their private sector counterparts if they restrict their own customers to use ATMs.
ATM loot - Unite and fight for rights - Dr.T.V.Gopalakrishnan
My View on "A(ll) T(ime) M(ess) - Dr.Yerram Raju":
Banking itself is becoming a mess and the way things are moving depositors would be asked to pay a fee for depositing the money. The use of technology is to save cost of transactions and ATMs have facilitated to save a lot of cost in terms of maintaining branches and staff at a high cost.SB account holders get a pittance of 4% for their balances and on that they have to pay taxes also if the interest exceed Rs 10000. Banks can manage to accommodate lakhs of Crores of NPAs and write off of loans again at the cost of depositors as there is absolutely no resistance from them. Charging for ATM withdrawal is nothing but a planned loot and RBI should not be party to this.Time depositors unite and fight for their rights.
- Dr.T.V.Gopalakrishnan
Can govt banks ride the momentum for change?
............For one, there are reports that the finance ministry has put off the appointments of at least 10 CMDs of public sector banks until the new norms are notified. The finance ministry is not only keen to split the roles of CMD, but also wants to appoint them for a fixed tenure of five years. Apart from banking experts and former RBI governors who have advocated such a move, a committee constituted by the central bank to review governance of banks had also endorsed this administrative restructuring. In a report submitted in May, the committee chaired by PJ Nayak, former chairman and chief executive officer of Axis Bank, said, "It would be desirable for the two positions to be separated. Until then there is a very real possibility of the several chairmen positions across banks being filled on the basis of political allegiance rather than professional skills. This could imperil banks."..........
PSU banks top appointments may be delayed; changes likely
.......Further, top positions in two regulatory bodies — insurance regulator IRDA and pension regulator PFRDA — and the chairman post in UTI Mutual Fund have been lying vacant for quite some time. As many as 4 PSU banks are already functioning without a chairman and an MD. “The next batch of appointments is likely to be done only after the government finalises the new norms for appointment of bank chairman. The government is now expected to split the role of chairman and MD posts as recommended by several committees and former RBI governors. The process followed by the UPA government in its last months in office is unlikely to be followed,” said a top-level source. There is yet to be clarity on who will be the chairman, whether it should be a serving or a retired banker or a non banker, he said.......
PSU Banks Must Consider Securitising Loans
.....The good part is there is an innovative solution available: securitisation -or sale -of a portfolio of performing loans. Public sector banks are not used to this unlike private peers such as ICICI Bank, Axis Bank and Kotak Bank, and some non-banks. The reasons are cultural and trust-related, but the time to cross these barriers is nigh. When a loan is securitised, it goes off the balance sheet, so the amount of capital to be set aside is proportionately lower and is primarily restricted to the assets remaining on the balance sheet. What's more, enabling mechanisms such as securitisation guidelines and infrastructure debt fund regulations are already in place.................
RBI takes steps to create consumer protection code
.........A consumer charter of rights was in the works and RBI was working with the government at enhancing financial literacy and “strengthening the customer grievance redressal mechanism.” It was also looking to “expand supervision, market intelligence, and coordination with law and order to reduce the proliferation of fly-by-night operators.” In effect, Dr Rajan is promising achche din (good times) to savers............
The only real worry is inflation: HDFC Bank’s Aditya Puri
.......I don’t think rates will stay high for that long. If the fiscal deficit comes down to 3.5%, I’m sure the RBI (Reserve Bank of India) governor would be amenable to bringing down rates. Once the structural issues of inflation and fiscal deficit are sorted out, rates will come down. As soon as the government can deliver on the 4.1% fiscal deficit and if we can get some handle on food inflation. Definitely not for a year. But I don’t think interest rates not going down for another year is that important. Frankly,..............
FINANCIAL INCLUSION MAY GO DOWN THE TOILET DRAIN
..........Between 2011 and 2012 and 2012 and 2013 commercial banks set up a total of 5,484 new bank offices in rural India as per RBI directives. While at first glance this might sound encouraging, probing reveals that a rise in brick-and-mortar branches has not had much impact on financial inclusiveness. For one, despite some growth in rural credit, rural areas continue to be under-financed compared to urban centres. Last year, the rural and semi-urban populations got only about eight per cent and 10 per cent of total credit disbursed by commercial banks. Even the RBI acknowledges that while 30 per cent of all new branches set up by commercial banks in India are in rural areas, less than 10 per cent of total credit is allocated to rural areas.
The way to go about financial inclusion is to..........
Financial inclusion may remain an unsolved puzzle for now
............In recent years, the Reserve Bank of India (RBI) adopted a more structured approach directing all state-run and private sector banks to submit a board-approved, three-year financial inclusion plan (FIP). It started in April, 2010, and banks were asked to prepare another three-year FIP for the period 2013-16. Lenders were asked to design self-set targets in respect of opening rural brick-and-mortar branches, hiring business correspondents, covering un-banked villages and offering financial products such as basic savings bank deposit (BSBD) accounts, kisan credit cards and general credit cards. Yet, more than 40 per cent of the country’s 1.2 billion people continue to remain financially excluded......
OBC, Dena in Rs.436 cr FD scam
.........The concerned branch officials are on finance ministry radar. The ministry cautioned all bank CMDs, through a communication last week, about such cases. “There are apparent procedural lapses by bank officials. Malafide, if any, on the part of the bank staff as well as officials of the companies which open these bulk deposits can be established only after investigation,” the ministry said.
Rising NPA level worries bankers in Odisha
............The NPAs have mounted to Rs 6,951.38 crore, about 8.26 per cent of the total outstanding advances of Rs 84,156.97 crore, as on June 30. The sector-wise agriculture term loans top the list with NPAs of 17.49 per cent, followed by short term crop loan at 13.28 per cent. Similarly, in agriculture allied sector, 9.32 per cent loans have turned bad.............
ICICI Bank does a first, launches EMI on debit cards scheme
........To begin with, ICICI Bank has tied up with Samsung India to offer this facility across 9,000 stores in the country including large format retailers, multi-brand outlets and stand-alone stores for purchase of mobile phones, tablets and consumer electronics, among others. ICICI Bank will add other brands under this facility in the months to come. “The tie-up will offer financial flexibility, drive engagement and create easy product accessibility for our consumers,”.........
SEBI’s Bark, Bite and Leash
.........As for SCORES, SEBI’s complaint redressal mechanism, SEBI and the two national stock exchanges continue to put out glowing reports about their successful redressal of complaints. Yet, inexplicably, investors are extremely unhappy, partly because their complaints go into a black hole and partly because the SEBI Act simply does not allow for it to provide damages or grant compensation, even by recovering the amounts from defaulting or fraudulent entities.
Trust asks government to take over temple in Mangalore
..........In a release, the trust said the donations to the temple should be regulated and used by the government. They have also asked for stricter Reserve Bank of India regulations of micro-finance institutions..........
You have to pay income tax on your vacant property
..........Therefore, a preferential treatment is given to one self-occupied house property, which has not been actually let out at any time and the annual value of that particular property is taken as ‘nil’. So, if you have one house, which you occupy, its annual value will be considered as nil. But if you own more than one house and are using all of them for “self-occupation”, you are entitled to exercise an option. You can choose which of the properties should be considered for nil value for taxation. Based on your choice, the annual value of the other-self occupied house properties will be determined on a notional basis as if these had been let out...................
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