Have no problems with Sebi's decisions: Bimal Jalan

..... Speaking exclusively to CNBC-TV18, ex-RBI Governor Bimal Jalan said he has no problems with Sebi overturning most of his committee recommendations. "Sebi has made the right decision by addressing the conflict of interest issues," he said......

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Don’t look for soft options, says ex-RBI Guv Bimal Jalan

....... Refusing to be drawn into a comment on what the options before RBI Governor Duvvuri Subbarao are or whether Pranab Mukherjee’s Union Budget 2012 has failed in pushing forward some key structural reforms to address the problem of a ballooning fisc, Jalan, however, made it clear that there were no easy decisions to take for either the government or the RBI. Only hard options are left.......

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Bank of Rajasthan: SEBI’s dubious logic

SEBI whole-time member Prashant Saran, a former central banker, let off the group saying that the violation need not be ‘considered grave’ since it did not involve price or volume manipulation to hurt other investors’ interest – even though the bank deliberately flouted RBI norms.......

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Conclave on financial inclusion inaugurated

...... The 4-day Basin Development Week scheduled from 2nd to 5th April 2012 is aimed at getting financial inclusion all over India like RBI, NABARD, SBI (Northeast), International Finance Corporation, APMAS, MCAB, Grameen Sahara and Ujjivan Financial Services among others so that the poorer section of the people can get easy access.......

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SC declines PIL on credit, debit and ATM cards

The Supreme Court today declined to entertain a PIL seeking a direction to the government to make mandatory imprinting of photograph and signature of holders on their credit, debit and ATM cards issued by banks to prevent their misuse. "There are already some guidelines," a bench headed by Chief Justice S H Kapadia said while referring to the instructions by RBI..........

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Refrain on the Street is a 25 bps cut

.... The Street is out with its verdict. It’s expecting a 25 basis points cut in the repo rate — the rate at which banks borrow from the Reserve Bank of India (RBI) — in the April 17 annual monetary policy statement of the central bank......

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RBI relaxes rules for foreign currency accounts

To provide operational flexibility to Indian entities making overseas direct investments, the Reserve Bank of India has liberalised regulations pertaining to foreign currency accounts (FCA). Indian entities can open, hold and maintain FCAs abroad to smoothen the process of making overseas direct investments, subject to certain conditions, the RBI said in a notification........

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Are banks really following banking guidelines in the right spirit?

........ But are banks really following these guidelines in the right spirit? In a recent speech on the customer service at banks, KC Chakrabarty, Deputy Governor, RBI, highlighted some of the issues that banks need to tackle on an urgent basis. Here are some relevant excerpts.......

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'Tell us where to park our car'

.... C.A.Ingole, a member of RBI employee's society at Bharat Nagar, said that to penalize car owners for using the road for parking was not a solution. "Authorities should come up with an alternative and solve parking problems in different areas. Car owners and other four wheelers could be provided open spaces near their homes for parking vehicles in night time by levying some charge. NMC should also provide good public transport so a lot of people will not buy cars," he said.........

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D Sarkar takes over as head of Union Bank of India

 New Delhi: Union Bank of India Monday said D Sarkar has taken over as Chairman and Managing Director (CMD) of the state-owned lender. Sarkar replaces M V Nair, who headed the bank for 6 years. He has taken charge as CMD of the Bank from April 1, Union Bank of India said in a filing on the BSE Monday.  Prior to this, Sarkar was executive director of Kolkata- based Allahabad Bank. He started his career with Bank of Baroda in 1982.

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State Bank of Hyderabad feels young @ 70!

State Bank of Hyderabad is a blend of tradition and modernity in banking. Originally set up in 1942, it was the central bank of the erstwhile Hyderabad state and managed the then currency, Osmania Sikka, and public debt........

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Read "Subsidiaries of the State Bank"

Can Turkey offer lessons to RBI?

“If a country like Turkey with high inflation can reduce interest rates and achieve growth, why cannot we?” asked the aggressive chief financial officer of a mid sized Indian company. I was dumbfounded, as my knowledge about Turkey extended to nothing beyond belly dancers, its currency the Lira and the city of Istanbul. I started mugging up the economics lessons I learnt in my college days; "If the inflation persists, you raise interest rates (make money dearer) and any easing of rates spurs economic growth and also fuels inflation in the longer run.".........

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Banks, NBFCs brace for another deposit rate war

.....The financial services industry may be waiting with bated breath for a possible interest rate cut by the Reserve Bank of India (RBI), when it announces its monetary policy later this month. But, banks and financial institutions appear to be in the mood to extend the deposit rate war further.....

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DBS Bank keen to operate as wholly owned subsidiary in India

....The RBI has said that foreign banks converting into wholly owned subsidiary would be placed in a much better position than the foreign bank branches operating in India but less than that of domestic banks. This would provide very significant incentives for the subsidiary mode of presence for foreign banks in India. ....

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Sebi’s arguments in Tayal case simply don’t wash

..... Reserve Bank of India had asked the promoters of the bank to reduce their stake based on its regulatory requirements. According to the findings of the preliminary investigation, which have now been attested in the recent order as well, the Tayal Group gave the impression that........

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Whither flows bank credit?

While the overall bank lending has slowed in recent times, the Reserve Bank of India’s (RBI’s) data on sectoral deployment of credit has some interesting points when one looks at advances for the three months ended February..............

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FM recipe for Bengal growth

....RBI Deputy Governor Subir Gokarn said the Bengal government needed to formulate policies to harness and build on the potential competitive strengths in some industrial activities. “Bengal is exploring a long-term strategy for industrialisation as the relative growth performance in the last decade was not encouraging,” Gokarn said. ......

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SEBI trashes major recommendations of the Bimal Jalan Committee

....Clearly SEBI has not accepted a large number of suggestions of Bimal Jalan Committee. Mr Jalan, a former RBI Governor, who quit the central bank rather abruptly and was made a Rajya Sabha member in early 2003, was appointed by former SEBI chief CB Bhave to review the issue of ownership and governance of stock exchanges, among other market infrastructure institutions 2010.....

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RuPay: With this RBI initiative, India gets ready for a cashless revolution

The Reserve Bank of India deserves to be commended for the initiative it has taken to launch RuPay, an indigenous, cheaper alternative to the card-based payment systems such as Visa, MasterCard and American Express. It got local banks to promote a not-for-profit National Payments Corporation of India (NPCI), the author of RuPay, which offers the same services offered by Visa and MasterCard, but at a much cheaper cost…

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RBI asks MFIs to use local language for agreement

The Reserve Bank of India wants micro-finance institutions to have their loan agreements cleared by their boards, preferably in the local language. In the revised guidelines on fair practices for the recently-created non-banking finance company-MFI category, it has also asked them to use a standard form of loan agreement to achieve greater transparency...........

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Cheque the writing on the wall

“Can you please send a cheque?” This question could become a joke in a few years. If you doubt it, can you tell when was the last time you received or sent a money order? There may be some who would have received or sent one recently, but the number of people using it seems to be on the decline........

Read - The Hindu

Govt may amend Act to make Aadhaar data valid ID proof

...... We had included the letter of Aadhaar containing the name, address and number as an official valid document in PMLA. Now we are looking into whether the electronic Aadhaar authentication can also be included as a valid KYC,” said a finance ministry official who did not want to be identified. “In principle, we have no objections to this.” The finance ministry has written to all entities, including the Reserve Bank of India (RBI), the Financial Intelligence Unit and the home ministry for their views on the safety aspects of such a move, he said. ……

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'Banks Can't Freeze Accounts If KYC Papers Not Given'

The Gujarat High Court has ruled that banks cannot freeze accounts nor can they stop issuing cheque book or providing ATM facility where the account holder has not supplied KYC (Know Your Customer) documents...........

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No respite for existing home loans as banks cut rates for new borrowers

When it comes to increasing home loan rates, banks believe in following an across-the-board policy and hike rates for all and sundry. However, in case of reduction, the policy is aimed to benefit only new borrowers as lenders try to grab more market share………….

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NO RATE CUT ‘Go to banking ombudsman’

New Delhi : In a bid to garner a greater share of new home loan borrowers, banks are cutting lending rates for them while maintaining old rates for existing customers. Coming to the lenders’ defence, bankers said that the base rates have not been changed by IDBI Bank and Canara Bank, and the lower rates should be seen as “special offers”. An official in a regulatory agency said that old borrowers could move to new rates by paying a “reasonable” conversion charge, an offer that is available for several banks such as State Bank of India and Housing Finance Companies (HFCs). A top RBI official said, “Banks can’t discriminate between old and new customers”, but advised borrowers to approach the ombudsman with their grievance. The regulator for HFCs such as HDFC and LIC Housing Finance, however,seems to be one up on RBI. “We recently issued a clarificatory circular asking HFCs to migrate all borrowers to a risk profile-based regime by April 30,” NHB chairman R V Verma told TOI. So, irrespective of when you have taken the loan, if your risk profile matches someone’s who borrows from the same HFC today, you are entitled to the same rate. How do you find that out is a different matter, unless the regulator comes up with a risk profiling system and ask lenders to make it public. NHB is not doing so at least now.  “It’s a process that will mature over a period of time. Different HFCs will have their own risk assessment and as the system matures, seasoning of the methodology will happen,” Verma said.

TOI

Know your customer or keep away that customer? -T.V. Gopalakrishnan

.....It is no wonder that financial inclusion does not take off — most people would prefer to remain outside the banking system than comply with the Know Your Customer (KYC) norms of banks as reportedly prescribed by the Reserve Bank of India. My experience with the country's largest bank, the State Bank of India, is something worth recording to bring to the authorities' notice that the KYC procedure should be a simple one to understand your customers and not to keep away or kill your prospective customers...........

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Fake notes entering UP via Nepal

……The Reserve Bank of India (RBI) and other nationalized banks have recently drafted a detailed list of security features on currency notes which can detected by common man and do not require a gadget or an expert to establish if the currency is counterfeit or genuine.

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Raise provisions to keep banking healthy

.... I can’t recall another instance of RBI buying bonds from banks just ahead of the close of a fiscal year and after the completion of the government’s borrowing programme. In……

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Indian Overseas Bank asked to pay Rs 10k as damages to widow

....... "By not following the guidelines of the Reserve Bank of India (RBI), the bank caused hardship to the complainant (Seema), who suffered after the death of her husband and could not pay the school and examination fees of her son. The act of the bank has caused deficiency in service," the forum said…….

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RBI asks cops to probe counterfeit currency

….The Reserve Bank of India has approached Delhi Police to take action against some people who they suspect deposited forged or counterfeit currency notes at banks this month…..

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RBI needs to enable, not disable

RBI must recognize the mandate and the mission of local banks and be more sensitive to the needs of peripheral economies in the country

….Reserve Bank of India (RBI) governor D. Subbarao, during a visit to Jammu recently, seems to have been disturbed by the abysmally low level of credit-deposit ratio—just 35% in 2011—in Jammu and Kashmir (J&K). For a professional, this reflects a rather poor state of banking affairs. But for the local businessmen it is a way of life. A credit-deposit ratio of 35-40% has been an endemic feature of the state for almost as long as one can recall; except for a brief interlude.…..

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‘Next 30 years will be most happening for all banks'

.....Union Bank of India is aiming to become largest public sector bank in domestic operations after State Bank of India by 2020, which is its centenary year, said Mr M. V. Nair, in an interview with Business Line just before he retired on March 31. With this in mind, the bank has started taking steps like wooing the Gen Y customer through its remodelled branches and technology offerings, as also tapping the unbanked population. ..........

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RBI must address the factors responsible for liquidity crunch

….The reduction in CRR was, in fact, at odds with the stated position of the RBI governor and other top officials of the bank who had repeatedly stressed that the battle on the inflation front is far from over. Yes, the RBI had intervened to shore up the exchange rate of the rupee vis-a-vis the dollar in the closing months of the last calendar year. Yes, forex inflows had slowed down impacting that reserve money creation. Yes, broad money growth was lower than in the comparable period last year, but then so was the level of economic activity…..

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MSCB misses deadline for banking licence

The Maharashtra State Cooperative Bank (MSCB), which is under administrator’s rule since May, has missed the March 31 deadline for getting a banking licence from the Reserve Bank of India. The state cooperation department confirmed this development saying that the delay was due to procedural issues. The department said it hoped RBI to issue the licence on Monday or this week, as it has reconfirmed fulfilment of necessary criteria with RBI and Nabard. The banking licence for MSCB was made mandatory according to the Rakesh Mohan Committee report.…..

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Treat education loans as national investment: Coimbatore Collector tells bankers

Mr M. Karunakaran, District Collector of Coimbatore, urged bankers to concentrate on education loans and look at the education loan portfolio as a national investment instead of considering it as an unrewarding advance. He made this remark after unveiling the Annual Credit Plan for 2012-13, which envisages 18 per cent growth over the earlier year's outlay of Rs 5,315 crore......

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FIIs remitting funds abroad may face tax liability

…..As per Reserve Bank of India (RBI) rules, FIIs have to furnish a clearance statement signed by professional accountants to custodian banks for transferring funds overseas. "The dilemma is most accountants will prefer putting in a caveat since there is no full clarity on the tax issue….

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Finances of State power utilities, precarious: RBI

The financial condition of power distribution utilities in the country is precarious, according to a Reserve Bank of India report. The report also expresses concern over the large exposure of public sector banks to these utilities..............

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Regulations around savers, please

….The products and the selling process in both cases are supposedly created and designed with you, the saver, in mind. But are you in the picture at all? Especially after you add a third major player and its regulator to the scene — banks and the Reserve Bank of India (RBI). Anecdotal evidence shows that among the biggest sources of mis-selling are banks — possibly because they enjoy the trust of the savers, have access to their data, and are large impersonal organisations……

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Foreign policy to decide banks' foray abroad

FinMin talking to home ministry, RBI for guidelines on PSB branches outside India

The finance ministry is in talks with the home ministry and the Reserve Bank on guidelines for expansion of public sector banks (PSBs) abroad, in sync with India’s relations with other countries…

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Kolkata Mint celebrates Diamond Jubilee

…….Mukherjee, who reminded the audience of the “history that is associated with the Mint”, cited the importance of fighting currency forgery. “In today’s world there are many ways of causing harm to a state and one such way remains the process of counterfeiting which can not only make the people lose their trust on the government but also cause harm to the economy. At one point it was quite high but today we have come a long way from that situation,” he said…….

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WB has competitive strengths in some industries, says Gokarn

……………"West Bengal is exploring a long-term strategy for industrialisation as the relative growth performance in the last decade was not encouraging," Gokarn said at a seminar on West Bengal organised by industry body Assocham here today…………….

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Gold loan firms hit a wall in cash hunt

.....“RBI wants to tighten the noose around these companies for the way they have been raising funds indiscriminately through NCDs and deposits. Imagine, a single company raising funds through a new instrument like retail NCDs thrice in a matter of six months. If something goes wrong, people will lose faith in the instrument itself,”.....

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Five reasons why the Bankex rally ran out of steam and will remain so

.... Apart from that, the dangers from a fiscal slippage and further pressures from hikes in under-priced fuel and power remains. Thus, even if there are rate cuts in the June quarter, it is likely that the RBI will follow its “baby steps” policy.

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Central Bank Of India : releases its ‘Itihaas-Pustika’

Shri Anand Sinha, Dy. Governor, RBI, (Second from right) Professor Samish Dalal, Professor, S.P.Jain Institute of Management & Research, Mumbai, (second from left) Shri Mohan V. Tanksale, CMD, Central Bank of India, (extreme right) Mrs. V.R.Iyer, Executive Director and (extreme left) Mr.Rajiv Kishore Dubey, Executive Directors of the Bank

Shri Anand Sinha, Dy. Governor, Reserve Bank of India has released Hindi version 'Itihaas Pustika' of Central Bank of India, brought out on the occasion of completion of 100 years in a glittering function held at Bank's Head Office on March 29, 2012. Guest Speaker Samish Dalal, Professor, S.P.Jain Institute of Management & Research, Mumbai has also enlighten the gathering about the topic of much importance of today's scenario 'NAVPARIVARTAN' i.e. INNOVATION. Shri Anand Sinha in his speech lauded the role of Central Bank of India and said that it is indeed a great achievement for the Bank for completing 100 successful years and was optimistic that Central Bank of India will continue to march ahead. Shri M.V. Tanksale, Chairman & Managing Director of the Bank gave the credit for this achievement to all the past and the present members if the Bank who followed the ethics of the great visionary founder of the Bank Sir Sorabji Pochkhanawalla. He also assured that Central Bank of India will regain its past glory in years to come. Shri R.K. Dubey, Executive Director of the Bank welcomed the Guests and highlighted the important portion of the Book and expressed his feeling that the Book is worth preserving. Shri Atul Agarwal, General Manager, Rajbhasha also spoke on this occasion. Smt. V.R. Iyer, Executive Director of the Bank proposed the vote of thanks.

http://www.4-traders.com/CENTRAL-BANK-OF-INDIA-9059895/news/CENTRAL-BANK-OF-INDIA-releases-its-Itihaas-Pustika-14250407/

Moderation in inflation can lead to eased monetary policy: Pranab

....Moderations in the core inflation rate in the past month have improved the prospects of reversal in the policy rates cycle and I am sure in the coming month, the Reserve Bank, in formulating the interest rates policy, will take into account the situation prevailing at that point of time," Mukherjee said at an interactive session organised by the Calcutta Chamber of Commerce.......

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Banks eyeing stake in National Payment Corporation

At least five banks are eyeing stakes in National Payment Corporation of India (NPCI), the nodal agency for the first-ever indigenous payment gateway - RuPay, which charges banks a lower rate as compared to other two payment gateways: Visa and MasterCard……..

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'New Currency Notes to Tell India's Growth Story'

.....It has been decided to add new features to currency notes. When anyone will look at a Rs 500 or a Rs 1000 note, it should also reflect India's growth and development," Bimal Julka, Director General, Directorate of Currency, said......

Read - outlookindia.com

‘Indigenous production of paper to curb fake currency'

....The paper and ink were mainly being imported from two countries. However, now we have been able to manufacture paper in two of our factories in Mysore (Karnataka) and Husnabad (Andhra Pradesh). This has helped address the issue of fake currency notes production,” Mr Mukherjee said.....

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Assault On Banknotes

..... Anand Sinha, Deputy Governor of the RBI, was spot on last month when he observed, “Channel innovation will play a crucial role. It could take many forms — a high-tech branch, a more intelligent ATM, social media, cloud banking or a cellphone that replaces both cards and currency.”.......

Read - Businessworld

RBI mulling doubling coins: Pranab Mukherjee

 …..There has been ever increasing demand of coins in the country. Keeping this in mind, the RBI is mulling to double the number of coins from the existing 6 billion pieces. An expert committee will also be set up to do the feasibility study and make necessary recommendations,"……

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RBI calls for greater focus on state finances

The Reserve Bank of India has called for greater attention on structural issues confronting state finances in the country. Releasing a publication today which focuses on the study of budgets of state finances, the RBI said there is need for greater focus on structural issues confronting state finances, particularly for those states that could not undertake rule-based fiscal corrections prior to the crisis years of 2008-09 and 2009-10………….

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Realty, gold can create asset bubble

…..The RBI’s forcing a cutback in lending against gold is part of a consistent policy by the central bank. It is very conservative about debt exposures against ‘risky assets’ such as real estate and now, precious metals. The logic is inescapable. Real estate, gold and so on, can develop pricing bubbles. Loans offered when rates are high can go dramatically sour……..

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How to resolve ATM-related grievances

...............Moreover, if the recommendations of the Damodaran Committtee on Customer Service in Banks (2011) are accepted, customers can well see their banks offering a temporary credit of the full amount. After all, why should we suffer for no fault of ours ? Don’t we have the right to get the wrong debit of funds immediately reversed.

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Charminar Bank liquidator transferred

.....Kiranmayee, joint registrar and district cooperative officer, was appointed the bank's liquidator on November 15 last, seven days after the RBI declared it insolvent and cancelled its license. Sources said Kiranmayee, who reportedly enjoys the reputation of a straight officer, had begun working on plans to recover outstanding loans of the bank that stood at nearly Rs 107 crore.....

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India’s Growth Outlook remains Promising, despite Global Economic Volatility

Speaking at the CII Western Region’s Annual Meeting, Mr. Subir Gokarn, Deputy Governor, RBI talked about India’s high economic growth in the first decade of the new millennium which was a result of many factors. “Both global and domestic factors contributed to this growth. Overall the global economy grew at 4.5% and almost all countries reaped a windfall from the same. Good policies and benign oil prices led to a virtuous circle of low inflation and micro economic changes that supported and sustained growth performance. Growth in the telecom sector helped people stay connected, increased productivity thereby accelerating growth,” Mr. Gokarn said. ............

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Rare coins donated to RBI Museum

Chennai, March 30: The Reserve Bank of India has released an information brochure showcasing a few of the 138 rare antique coins donated from the collection of late M. R. Jambunathan by his daughter Ms Indira Anantharam Iyer. Jambunathan was a vedic and upanishad scholar who published books in English and Tamil. The collection includes coins encompassing various regions and time periods. The particularly rare coins include the ancient ones issued by the Cholas, Cheras and other Southern Kingdoms dating back to AD 250. The collection also included a few coins of Tipu Sultan of Mysore, the Mysore Wodeyars and the Hyderabad Nizams. Coins issued by the French and British East India Companies were also donated as part of the collection. The coins will be on display at the Reserve Bank of India Monetary Museum, Mumbai. “The collection has added to the value of the Museum and will attract notice of both scholars as well as lay enthusiasts,” said the RBI Governor, Dr D. Subbarao.

HBL

RBI Governor Duvvuri Subbarao: Mindful of credibility of action for foreign exchange intervention

The Reserve Bank of India is mindful of the credibility of its actions, robustness of foreign exchange reserves and inflation situation while taking a decision on intervention in the foreign exchange market, Governor Duvvuri Subbarao said on Friday………

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GST can help contain inflation: Subir Gokarn

...."The GST is going to make a huge difference in the way the government is going to manage its finances. And as it comes into play, it will be a critical reform in terms of catalysing growth.  
"This is because it will help contain government finances and help take off demand pressures that, as we have seen, has been contributing to inflation over the past few years," RBI Deputy Governor Subir Gokarn said.
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Globalisation double-edged sword for India: Subbarao

….."In a globalised world, the challenge for us is to accelerate growth and make it inclusive, as we are a poor country in terms of per capital income and other social indicators though we have a large economy at an aggregate level," Subbarao told business school graduates of the Indian Institute of Management-Bangalore (IIM-B) at its 37th annual convocation address……..

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RBI favours dynamic provisioning norms

,,,,,The RBI said that the present provisioning policy has several drawbacks, including the rate of standard asset provisions has not been determined based on any scientific analysis or credit loss history of Indian banks.,,,,,,

Read - The Hindu

May their souls rest in peace……

I deeply regret to advise you of the passing away of two of our friends. Many of you would have worked with them closely.

1. Shri Dipchand J. Sabhnani  passed away on 21st March 2012, in Mumbai. He was born on 2nd March 1940 and worked in RBI  from 21/12/1960 to 31/3/2000.  He retired as Assistant Manager from DEAP.  He was a  very genial person, who sported a perennial smile. He is mourned by a wide circle of friends and well-wishers.

2. Shri.K.Neelakandan, fell victim to a massive heart attack and passed away in Trichur on  22rd March 2012 in Trichur where he had settled down after his retirement. He retired as DGM  from Trivandrum Office. He worked in RBI  for over 35 years and was 72 years at the time of death.

 - P.P.Ramachandran (via e-mail)

'Fake' currency notes recovered from ATM

..... These notes were being referred to the RBI and the Nasik Printing press for verification, Superintendent of Police K. Raghuram Reddy said......

Read - The Hindu

23 NBFCs operating in State without RBI nod: Govt

GUWAHATI, March 30 – There are 109 non-government financial institutions operating in the State. They are registered with the Reserve Bank of India (RBI) and working as Non-Banking Finance Companies (NBFCs). But the RBI has granted permission to none of these companies to collect people’s money as deposits…………….

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Non-event Budget leaves all the hard work for Subbarao

……Not an easy to-do list for an RBI governor with limited options in hand and a government which keeps insisting he must cut rates despite New Delhi not lending him even a semblance of a helping hand.

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Govt indecisive on cooperative banks' revival plan

.....Sources said that there was no consensus on the proposal to pump Rs 203 crores in Jammu Central Cooperative Bank (JCCB) and Anantnag Cooperative Bank to make way for both of them to get license of Reserve Bank of India (RBI)……..


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RBI penalises Siddhi Co-operative Bank of Ahmedabad

….RBI had issued a Show Cause Notice to the bank in response to which the bank submitted a written reply and after considering facts of the case, bank’s reply and personal submissions in the matter, RBI came to the conclusion that the violations were substantiated and warranted imposition of penalty.

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All banks to remain open till 5 pm tomorrow

….The Reserve Bank has directed private and public sector banks to remain open on March 31, 2012, with a view to facilitate accounting of all government transactions for the current financial year (2011-12)……..

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RBI’s debt purchases to offer temporary relief

….The Reserve Bank of India’s (RBI) efforts to ease a prolonged cash strain through debt purchases will only offer temporary relief to bonds and swap markets, given the heavy supply of debt waiting to be sold in coming months. RBI officials have made clear any injection will be motivated solely by liquidity shortages, especially ahead of big weekly sales of debt, and have been consistent with their message that they are not focusing on bond yields. ……..

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Can joker in the pack 'rupee' outperform in FY13?

.... In February 2011, the rupee fell against most major currencies after the RBI deregulated interest rates on NRI deposits. In response, banks increased rates on such deposits by up to six percentage points. This was a sweet deal for NRIs who could now invest their dollar earnings in Indian banks and get up to 10% a year…….

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Indian Arm Of Japanese Bank Adopts FRSGlobal's ADF Solution

Wolters Kluwer Financial Services, a leading worldwide provider of risk, compliance and audit solutions for the financial services industry, has announced that the Indian arm of a leading Japanese bank has selected its FRSGlobal solutions in order to meet the automated reporting standards defined by the Reserve Bank of India (RBI)………….

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Relief for bank following decision to release funds

..... the Department of Cooperative has ordered the Managing Director of Karnataka State Apex Cooperative Bank to release the amount so that the bank complies with Section 11 (1) of the Banking Regulation Act 1949 to get licence. The National Bank for Agriculture and Rural Development (NABARD) too has reportedly written to the RBI on the financial position of the bank......

Read - The Hindu

LIC to invest Rs 147 cr in Vijaya Bank

.........The capital infusion would strengthen the tier one capital of the bank. Vijaya Bank’s tier capital (net worth) will help keep Vijaya Bank tier one capital to 9 per cent as mandated by the RBI.

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Fiscal deficit can spin out of control

......With less money available for companies to borrow, the central bank shall, therefore, have to resort to more pro-active open market operations to generate liquidity. Quietly, but surely, the FM has passed on the baton to the RBI to reconstruct the fiscal health of the economy!.......

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RBI cautions Nagaland on fiscal deficit

.....All rejoicings aside, , the RBI report sufficiently implies that Nagaland being a no-revenue state seriously requires a drastic paradigm shift in internal revenue generation or the deficit would pull her down the finances scrap yard. “All special category States with base fiscal deficit of less than 3 per cent of GSDP in 2007-08 could incur a fiscal deficit of 3 per cent in 2011-12 and maintain it thereafter. Manipur, Nagaland, Sikkim and Uttarakhand should reduce their fiscal deficit to 3 per cent of Gross State Domestic Product (GSDP) by 2013-14,” the study of Reserve Bank said.
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CVC appoints Shyamala Gopinath as chairperson of advisory board

Mumbai, March 29: Ms Shyamala Gopinath, a former Reserve Bank of India Deputy Governor, has been appointed as Chairperson of the Advisory Board on Bank, Commercial and Financial Frauds. Ms Gopinath's appointment by the Central Vigilance Commission is for a period of two years and is effective from March 26, 2012. The chairperson's position was vacant for nearly two months prior to her appointment. Mr Janki Ballabh was the Chairman of the Advisory Board till January 31.  The Board is part of the organisational infrastructure of the Central Bureau of Investigation (CBI), with the RBI providing the required investigative and secretarial services, along with necessary funds. The Board's jurisdiction is confined to those cases, where in disagreement or dispute with a bank, public sector undertaking or financial institution, the CBI wants to register a regular case/preliminary enquiry in respect of an allegation of fraud. The frauds covered by CBI investigations include those in borrowal accounts in public sector banks, and financial or commercial frauds in a financial institution or public sector undertaking.

HBL 

CVC reconstitutes advisory board to check commercial fraud

......Other members of the board include retired Indian Administrative Service officer, Mr Vivek Mehrotra; retired Indian Police Service officer, Mr Balwinder Singh; former Chairman and Managing Director, Bank of Maharashtra, Mr A. S. Bhattacharya; ex-Executive Director of Corporation Bank, Mr Asit Pal; and Chartered Accountant, Mr T. N. Manoharan.

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Worst part of eurozone crisis over: Ex-RBI governor

….."The worst part of negotiation is over. But in any case this will not be resolved in current calendar year, because elections are due in many countries," Reddy, said in his lecture on "Indian Economy: Review and Prospects" organised by IIT Madras……

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Back-end issues in financial inclusion

The Financial Inclusion Plan drawn up by RBI envisages bringing more than 3.5 lakh villages into the formal banking network by March 2013. The count achieved till now is approximately 1.2 lakh villages. In view of the massive scale of rollout targeted, banks have been permitted to outsource part of the technology and manpower requirements of their FI projects from competent technology services providers (TSP). Further, RBI having permitted corporate entities to be enlisted as banking correspondents, eligible TSPs can also undertake BC services, thus participating end-to-end in the FI delivery process...........

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IIM-B convocation

..... D Subbarao, Governor of Reserve Bank of India, is expected to be the chief guest. As many as 371 students will be attending the ceremony.

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RBI Scholarship Scheme for Economics Faculty Members 2012

….The main objective of the scholarship scheme is to increase awareness about the activities of the Reserve Bank among faculty members and student community. The scheme will provide exposure to faculty members teaching subjects of economics and or finance in different areas or activities in the Reserve Bank of India……….

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RuPay: Your role to play

......This short article does not provide the space to fully explain the extremely intricate and often hyper-secretive details of the payment processing industry. Suffice it to say that this is the next logical step to what RBI and its wholly-owned subsidiary, the National Payment Corporation of India (NPCI) has already done to establish control of ATM switches in India.......

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Blow to NCP-controlled bank

In a fresh setback for the Sharad Pawar-led NCP, the Reserve Bank of India (RBI) on Thursday dissolved the board of directors of the NCP-controlled Sangli District Central Cooperative Bank for rampant irregularities and blatant violation of the Banking Regulation Act……….

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New panel for ‘reliable’ inflation, IIP data

.... The government's decision to review the entire data collection, collation and calculation mechanism for inflation and industrial production is welcome. It's not just economists who have reservations about official data, even RBI has raised doubts over its reliability. Given the fact that crucial policy decisions depend on official data, this is very worrying……

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Banks haven't made significant penetration in m-banking: RBI

.... "Banks have not really made a significant penetration even among their existing customers to extend mobile banking services," RBI Deputy Governor KC Chakrabarty said at an International Banking Summit in Mumbai……

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RBI allows cross border remittances through mobiles

....Banks will have to be responsible for ensuring quality of funds, adherence to know-your-customer, and so on, said Dr K.C. Chakrabarty, Deputy Governor, Reserve Bank of India, at an International Banking Summit.......

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Government to unveil revised FDI policy paper tomorrow

..... The government in 2010 had decided to come out with consolidated FDI policy paper summarising all the regulations including those of FEMA and Reserve Bank of India (RBI) for the benefit of foreign investors……

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RBI moves step closer to issuing pvt bank licences

....The Reserve Bank of India (RBI) has moved a step closer to issuing fresh private sector bank licences, with the government moving to seek the Cabinet’s approval for amendments in the Banking Regulation Act (BRA). The amendments in the BRA would empower the RBI to supersede the boards of banks and suspend licences in case of any wrongdoings. The Cabinet is expected to approve the amendments as early as this week........

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Foreign firms with minor bank links may get to do proprietary trading

……"RBI has agreed to re-examine the regulatory regime in the case of foreign companies where its parent is not a bank," a government official said. A meeting on the issue, held in February, was attended by representatives from RBI and departments of industrial policy and promotion, financial services and economic affairs………..

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Banks told to better manage NPAs

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Rectify spike in NPAs: RBI orders banks

....."Concerns (on NPA) are there. Banks have to improve their ability to manage NPAs. We have told banks what is their lacuna. They have to improve their information system. But we see that the situation is not alarming. Though this is our concern. Hope banks will be able to manage them," Deputy Governor K.C.Chakrabarty told reporters on the sidelines of a function organised by Yes Bank here.....

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Loan-deposit ratio may tie RBI hands on rates

The Reserve Bank of India is facing yet another challenge in its endeavor to lower benchmark rates, as high loan-to-deposit ratio will make it difficult for lenders to lower borrowing costs even if the RBI takes policy measures to ease the pressure………

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State Bank's deposit rate increase stumps peers

..... SBI officials said it was unlikely the bank would pare its base rate anytime soon. “Even if there is a repo rate cut by the Reserve Bank of India (RBI), market rates are not going to come down. Also, at a time when companies are not sure about their future and credit risks are high, it does not make sense for banks to lend at lower rates,” a senior executive of the bank said……..

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RBI keeps ‘Ways and Means Advances' to States at last year's level

.....A State entrusts its banking business — including payments, receipts, collection, remittance of money, management of public debt and issue of new loans — to the RBI by voluntarily entering into an agreement with the RBI......

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The market's three worries : Akash Prakash

….The second issue concerns the direction and pace of interest rate cuts and monetary policy easing. Many market observers had pencilled in 150 basis points of interest rate cuts by the Reserve Bank of India in the calendar year 2012, and a full pass-through of these cuts by the banking system, and thus were quite bullish on both the market and the general economic outlook. However, this may no longer be possible. Many of the more astute economic commentators now think that rate cuts will not be more than 50 to 75 basis points — and even these will not be fully passed on by the banking system to borrowers……

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Temple panel seeks SC permission to open vault B

….Meanwhile, it asked the panel to supply copies of its report relating to the plea to other parties in the dispute. The committee in its report had stated that construction of a new high security vault on the lines of the RBI may be taken up only after opening vault B of the temple to determine the quantum of wealth artifacts stored in it since several generations……

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Bangalore costliest Indian city to live in: Survey

Glitzy tech capital Bangalore just earned a new sobriquet - the costliest Indian city. An analysis of the Reserve Bank of India's Consumer Price Index (CPI) shows that Bangalore is a couple of notches higher than the all-India cost-of-living average, with financial capital Mumbai just a shade behind……………..

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Revised RBI norms for NBFCs to improve asset quality: Assocham

Industry chamber Assocham today said the revised guidelines on fair practices code for non-banking finance companies (NBFCs) will bring adequate disclosures and non-coercive recovery methods. The steps by RBI are pro-active and timely for orderly and transparent growth of NBFC sector, it said……….

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Muthoot Estate Investments barred from taking public deposits

...."The RBI has directed Muthoot Fincorp Ltd to stop allowing the use of its premises or branches or officials, in any manner by Muthoot Estate Investments for accepting deposits from public," the RBI said in a notification......

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Will Subbarao oblige Mukherjee?

...... Two questions are relevant. First, when should the repo rate be reduced? And second, what should be the extent of reduction in the repo rate? Going by the experience of 2008-09 when the economy was in a similar position, a quick reversal of GDP growth became possible because the repo rate was reduced from 9 percent to 4.75 percent in just a few months. The RBI has to move that fast now to get the economy back on the rails to achieve 7.6 percent growth. But will Mr Duvvuri Subbarao oblige Mr Pranab Mukherjee? 

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RTI action makes 105 branches of leading banks become “customer-sensitive”

.....Commodore Batra sent an email to V.S.Das, Executive Director, Reserve Bank of India (RBI), stating, “I am writing this with urgent plea for RBI’s intervention to assure safety of assets of customers holding accounts and lockers in Noida. You may be aware that about 104 branches of various leading banks are operating in Noida from residential areas for decades now.........

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