State Bank Group chairman Pratip Chaudhuri has argued for a 50-100 basis point reduction in cash reserve ratio (CRR) and a 50 basis-point cut in repo rates, saying that these would do enormous good to the economy, at a time when credit absorption was flagging due to high interest rates..................
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, January 11, 2013
Kill cash
..........A payments company like Visa, MasterCard or RuPay, an RBI initiative, can take care of settling payments. Scale will bring down their fees. And for every crore rupees worth of tiny transactions they settle, they can be paid something from the government so that they have an incentive to make a good job of settling small payments in remote areas. The banks are the agencies to deploy the swipe machines. They can split their incentive from the Centre with the payment companies..................
Credit cards linked to fixed deposits are good for customers and even better for banks
........After the credit crisis in 2008, banks hit the break on credit card issuances that hit a high of 27 million cardholders in 2007- 2008 - defaults hit a high of 20- 22% and banks like ICICI, one of the most aggressive issuer of cards in India, had to clean up their portfolio. By F12, the same had come down to 17 million as per RBI data. The secured card is usually the first card that one takes in the US, a developed market for credit cards, to start building one's credit history. Indian banks are now pitching the same to clients with low CIBIL scores, over- the- counter, or on email. Various banks, like SBI and DCB, have trained scouts on market visits and ICICI began offering instant FD- linked cards to net banking customers only recently..............
Reserve Bank of India sees stress on state finances from 2017-18
..........India's central bank raised concerns over states governments' debt repayment capacity from fiscal year 2017/18 because of higher market borrowings and the recently announced bailout scheme for state-owned power companies. "The increase in market borrowings of state governments since 2008-09 could lead to large repayment obligations from 2017-18 onwards," the Reserve Bank of India said in its annual publication on state finances, 'State Finances: A Study of Budgets of 2012-13', released on its website...............
Encourage NBFCs to continue and build on their business models: G S Sundararajan
........RBI wants to convert existing NBFCs into banks…
If we want to continue to achieve financial inclusion, we should realise some NBFCs like us and banks are in mutually exclusive customer segments. Hence, if we want NBFCs to get into banking space, then they should be encouraged to continue with their business models and, at the same time, expand on their additional products to the existing customer base after conversion.
What if RBI insists?
In the current scenario, there are some businesses which we can do as a bank. So, there is a choice, which we will have to exercise. As long as we are able to convince the regulator that there will be no regulatory arbitrage, I am sure they will support us in furthering financial Inclusion...................
RBI floats draft norms on capital needs for counterparty risk
In order to enhance risk management system of banks, the Reserve Bank of India (RBI) has proposed tweaking norms for capital adequacy with regard to their exposure in derivative instruments. Under the new framework, banks’ exposure to central counterparty (CCP), a clearing house, arising from OTC derivatives, exchange traded derivatives and Securities Financing Transactions (SFTs) will be subjected to capital requirements for counterparty credit risk, the RBI said in a draft guidelines........
Government mulls interest-free banking incentive to woo Muslim voters
........It is learnt that a recent exchange of letters between minority affairs minister K Rehman Khan and RBI Governor D Subbarao in December has given a new push to the issue, hanging fire for want of requisite changes in the existing banking laws. The RBI has been insisting that to make it possible, an amendment is required in the Banking Companies Regulation Act, 1949. This was conveyed to the finance ministry recently after Khan raised the issue with the RBI governor through a letter, dated December 5, 2012.......
Dump gold abroad
.........Even if two per cent of the gold holdings with the public can be garnered through an attractive scheme for exporting, the government will be able to influence the international prices. A gold bond scheme that offers the lowest of the market value of gold or an inflation-adjusted assured return can easily attract the public, and accumulating gold stock for export will not be difficult.
How to stop the gold rush
.......RBI talks of gold deposits, accumulation and pension schemes. Will
people really come forward and deposit their gold and take it back
after say 5 or 10 years? If it is held for security or vanity, then this
will not happen. Also, most gold held by households could be in the
form of jewellery and not coins especially in rural areas, which makes
such a scheme a non-starter as the individual would expect the same to
be returned at the end of the tenure. If the idea is to churn this gold
for meeting further demand, then the scheme may not work. ................
'Both farmers and bankers culpable’
..............Official sources said that it is imperative on the part of supervisory bodies such as the RBI to make sure that the crops and area mentioned in the loan applications are genuine, and loan is used for the stated purpose.
CBI inquiry sought over misuse of interest subvention scheme
........Sources in the NABARD point out that the Reserve Bank of India is already seized of the issue. In its circular dated November 9,2012, the RBI said “the government of India, through its budget announcement for 2006-07, introduced an interest subvention scheme with a view to ensure (sic) availability of short-term crop loans up to Rs.3lakh to farmers at a reduced rate of seven per cent per annum. This scheme has continued ever since with minor variations. Currently, with three per cent additional subvention for timely repayment, the effective cost of short-term crop loan comes to four per cent for farmers.”.........
Delhi-NCR: The crown and the jewel
................But the RBI instructing scheduled banks to not allow a rollover of loans given to real estate developers into next financial year will mean that developers will see an urgency to dispose of their unsold inventory to raise funds to pay back their loans. This holds the potential for a major correction in residential prices in the NCR region................
Thursday, January 10, 2013
G-secs need more retail investors, says RBI’s Khan
..... “On the face of it, it looks very odd that the Government promotes instruments of corporates and gives tax concession but does not extend the same treatment to its own instrument.” “This is being looked at from the Government side,” ........
RBI to mull slashing held-to-maturity limit for banks
The Reserve Bank of India (RBI) is considering a proposal to bring down the held-to-maturity limit in debt for banks in a non-disruptive manner, Deputy Governor H.R. Khan said on the sidelines of an event on Wednesday. "We are working on that," Khan said, adding a decision was not finalised...........
Syndicate Bank new branch at Nagaram
HYDERABAD, JAN. 9:
Syndicate Bank has opened a new branch at Nagaram, Keesara Road here. A.S. Rao, Regional Director, Reserve Bank of India, Hyderabad had inaugurated the branch in the presence of M. Anjaneya Prasad, Executive Director, Syndicate Bank.........
Do central banks deserve greater independence?
........Although there is some truth in what Stiglitz believes especially on the accountability front, the scenario is a bit different in India. For starters, the RBI's efforts to have a regulatory check over Indian banks certainly ensured that the Indian banking system was not affected as much as their Western counterparts. Secondly, if the argument is for RBI to have lesser autonomy, then one has to assume that the government is clean and responsible...........
North Block vs Mint Road
.........A closer look at the larger agenda in the Centre’s hand, the major part of which it expects to execute in 2013, will reveal that the abnormalities covered in this article are just symptoms of a chronic malice that is troubling governance at the top. Still, how, where and when the undeclared war that North Block is fighting with Mint Road, in an effort to clip dissent ends, will be decisive in the development of Indian economy..............
'Change' required............
I request the Reserve Bank of India to issue sufficient change to banks. There is heavy shortage in the market and if we need change, we have to pay extra Rs.10 for every Rs.100 worth coins. We are unable to get change even in the banks. Therefore, I request the RBI officials to issue sufficient change to local banks for the account holders at least so that we can draw the small coins.
S. Padmavathi, Viveknagar, Chikkadapally ( Hindu)
VTA demands gradual implementation of cheque truncation system
.....The VTA has dispatched a memorandum to union finance minister P Chidambaram and RBI governor Duvvuri Subbarao appealing to them that such move should be made applicable gradually to avoid needless legal litigations and erroneously breach of trust within the parties..........
Read - TOI
Need For Strengthening NBFCs
....Sinha was speaking at a discussion on “RBI’s Draft Guidelines based on Usha Thorat Committee Report on Issues and Concerns in the NBFC Sector organised by the Indian Merchants’ Chamber. Speaking at the discussion, Guest of Honour Ms Usha Thorat said: “Because of the diversity of NBFC sector, which operates in different verticals, the draft affects various NBFCs in different ways vis-à-vis the banking sector.” .......
Financial inclusion: Bogged down by faulty execution
It had the trappings of a blockbuster reform, but lost its way in policy tinkering and bad execution. This is how one could sum up the financial inclusion efforts of the Union Government and the public sector banks, especially in North India, in recent years. Misguided policy interventions and hiccups in financial inclusion architecture design at the Finance Ministry level implied that little gains could be achieved in the areas of ATM rollout by public sector banks or business correspondents (BCs).........
Takru named financial services secretary
Rajiv Takru will be the financial services secretary from next month, replacing D K Mittal, who retires on January 31, an official announcement said on Wednesday. Ravi Mathur was appointed as disinvestment secretary. At present, Mittal is holding the additional charge of the divestment department after Haleem Khan retired in November last year. Their names have been approved by the Appointments Committee of the Cabinet, an official statement said.............
The great Indian liquidity saga
....................If the market believes that the RBI is administering the wrong medicine for the wrong reasons, inflation may not come down in the near term and the external value of the Indian rupee may suffer further damage. The fight against inflation will become longer and harder to win, in our opinion. Maybe the RBI should not believe in too many impossible things before breakfast.
Read...........
भारतीय रिज़र्व बैंक - कानूनी अधिकारियों की भर्ती
भारतीय रिजर्व बैंक में कानूनी अधिकारियों की बी ग्रेड डाक के तहत खाली पोस्टों के लिए इच्छुक उम्मीदवारों से ऑनलाइन आवेदन लिए जा रहें है, आवेदन की अंतिम तारीख 29 जनवरी 2013 |.......................
Read.........
Read.........
RBI clips Merchant co-op bank, Dhule
Reserve Bank of India has issued certain Directions to Merchants Co-operative Bank located in Dhule. The directions have many clauses and ask the urban cooperative bank to adhere to them strictly. RBI says the bank shall not, without prior approval in writing from Reserve Bank of India, grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits......
Will the “Direct Cash Transfer” scheme benefit the common man?
..........In the effort to improve financial inclusion the existing infrastructure outside the commercial banks also should be put into use. Cooperatives have played a significant role not only in providing agricultural and rural credit, but in ensuring other linkages like inputs for farming and marketing avenues for products. As they were mainly operating in rural and semi-urban areas, it took longer time for this sector to access modern skills and technology. NABARD was established in 1982 with the specific mandate of supporting cooperatives and rural sector in general. Initial enthusiasm of NABARD faded away in the absence of legislative and administrative support from central and state governments and the institution had to satisfy itself by continuing to be an appendage of RBI doing some ‘safe’ business through established and credit-worthy cooperative banks and commercial banks...........
Smaller companies bearing brunt of economic slowdown: RBI data
.........Smaller companies are mainly bearing the brunt of economic slowdown, having recorded overall losses in the first half of the current fiscal, a RBI data revealed today. On the other hand, larger corporates have performed better during the April-September 2012-13 period which witnessed moderation in economic growth to 5.4 per cent from 7.3 per cent in the year ago period........
Government will ensure common man benefits from banking: Chidambaram
....."There is no doubt that efforts are being made on a large scale to ensure that benefits of banking facilities are made available to the people", he said. The Finance Minister was speaking on the occasion of inaugurating headquarters of Central Madhya Pradesh Rural Bank. He said the processes for disbursing loans in education, home and agriculture sectors have been simplified so that anyone can avail these credit facilities...........
Compromise on Basel-III norms is a reminder of power of global banks
....The LCR aims to prevent a repeat of the kind of distress we saw in the aftermath of the collapse of Lehman Brothers, by making banks hold an adequate stock of unencumbered, high-quality liquid assets that can be readily converted into cash to meet sudden liquidity needs to ride out a 30-calendar-day liquidity stress scenario. It is somewhat akin to our statutory liquidity ratio (SLR) for which we were often derided in the past. It must be clarified, however, that SLR in the Indian context is also a way of ensuring a ready source of funds to meet the government's seemingly insatiable appetite. ..............
A banking masterclass
The Reserve Bank of India’s lecture series held in memory of its first governor, C.D. Deshmukh, provides its distinguished speakers a platform for sharing perspectives on banking in the context of the larger world of economic thought and behaviour. Never has this seemed more necessary than this year when the Nobel Laureate Joseph Stiglitz was invited to deliver what he titled most appositely: “Revolution in Monetary Policy: Lessons in the wake of the global financial crisis.” Revolution, at first glance, seems an odd phrase to use for a talk before India’s central bankers and invited participants from its financial hub. But at the end of the talk it was clear that the term had to be used in a more complex way than it has been used traditionally............
Banking grows as India logs in
The number of India’s 246 million households with access to banking has grown between 2001 and 2011, but 40 per cent still remain unbanked. And despite the recent rise of e-commerce and social media, merely 3 per cent of households have an internet-connected compute..........
Search engine exposes breach of security at bank
In what appears to be a breach of security, an Internet search for a lawyer’s phone number led a Mumbai-based researcher to a large trove of data (http://knowledge.bankofindia.com:8080) that looks like a directory comprising scores of folders stored on the Bank of India portal. Each folder comprised documents that indexed data, which included user IDs, names, date of birth, email IDs, passwords, details of branch and head offices. One of the many folders accessed by The Hindu listed details of what appeared to be data pertaining to more than 42,000 users..........
Banking Bill: A game-changer for the industry
............The Bill is likely to be a game changer for the Indian banking industry, with renewed strength in driving financial inclusion, increased competition and the likely emergence of global Indian banks. PSBs will also need to use this time to transform their operations to improve their efficiency and customer connect. The timing of the Bill’s passage is apt and is likely to catalyse wholesome growth of the banking industry in its next phase of evolution.
Gold comfort
T here is arguably no single item that has wrecked the country’s balance of payments more in recent times than gold. Since the global economic crisis of 2008-09, India’s gold imports have zoomed from under $21 billion to over $56 billion in 2011-12, accounting for over 70 per cent of its current account deficit increase during this period. No wonder, it has prompted the Government and the Reserve Bank of India (RBI) to resorted to a slew of desperate measures to “moderate the demand” for the yellow metal...........
'India should look at Interest Free Banking system as a humantarian concept, and not a religious concept'
.......The difference between interest free banking system and Islamic banking systems are: Islamic banking system will not allow investment in liquor, gambling or any other unethical business, whereas the non Islamic bank allows all kind of quick money making ventures. Not only Muslims but all other religious groups also can make use of this interest free banking systems under the RBI’s strict controls and regulations...............
Wednesday, January 9, 2013
Silencing the RBI
How can the central bank governor deliver appropriate monetary policy when he can't even get the deputy he wants
Employees demand RBI offices in all Northeastern states
The United Forum of Reserve Bank of India officers and employees has demanded that full-fledged offices of the apex bank should be opened in all the states of the north eastern region. The forum of employees has also demanded to extend the outreach programme of the bank in unbanked areas of the region and work for financial inclusion which is of utmost a necessity in a region where banking penetration is dismally low. According to the employees association, the progress of opening up offices in the region is very slow and existing small offices are for a namesake only and hardly serve any purpose when it comes to banking activities.............
Dy RBI Guv Takes Commercial Banks’ CEOs to Task
KC
Chakrabarty, Deputy Governor of RBI, gave a dressing down to CEOs of
commercial banks at a recent meeting on customer service. For instance,
he asked banks to justify the charges they impose on customers to avail
service from non-home branches. “When you are advertising — One nation.
One branch. One account, — then where is the question of charging
customers for updating their passbook at a non-home branch?” When the
bankers said that the charges are to recover the cost, Chakrabarty
quickly replied: “I am not against it. Either do away with the charges
or have a uniform charge for all.”
ET
ET
How good money goes waste
......RBI has recently decided that foreign banks now will have to graduate to allocating 40% of their funds for priority sector lending. This will mean sequestering another huge set of funding for rural areas. When the rural sector is unable to use with efficiency the available money, it is difficult to picture how the additional funds will be of more use to it and, consequently, for the rest of the economy.......................
Asking for trouble
........Three voices as distinct from each other as these, and yet making the same point, should give the government pause in its relentless drive towards granting banking licences to industrialists. Ever since it was announced in the Budget by then finance minister Pranab Mukherjee in February 2010, the government has pushed hard for it, against an obviously unwilling RBI, the apex regulator for the sector, and in spite of prevailing expert opinion. Banking is not like any other sector — the conflicts of interest that can be set up in it have the potential to destabilise the entire economy and eventually cost taxpayers a fortune...........
RBI banks on private players
........the very basics of economics and policy standards are changing and the RBI may want to look at its own guidelines carefully once more to ensure that no corporate major gets any kind of financial leeway as far as the banking sector is concerned. India has a robust banking sector and no major history of bank failure. The RBI must do everything to ensure that the no one can jeopardise its clean record..............
Rs 25-crore criterion only for deposit-taking NBFCs
......“Ideally, we want all NBFCs to only be financial entities. However, that is not possible. Hence we have to bring in regulations to monitor such NBFCs,” Sinha added. He also said that to ascertain risks of NBFCs better, the RBI has raised the tier-I capital requirement to 12 per cent for certain NBFCs (such as capitive NBFCs, those involved in real estate, commodities and capital markets). For other NBFCs it has been kept at 10 per cent,........
Mr C, don’t mess with gold; it’s HER social security
.......It would be best is to create a regulator for non-bank finance companies, including money lenders, since neither the finance ministry nor RBI has any clue on this sector. If they had any sense, they would be taking a lead in the global gold markets since we buy more than 30 percent of the global output.............
Gold loan firms to roll out CBS for uniform operations
.....A working group set up by the Reserve Bank of India (RBI) under the chairmanship of K U B Rao to look into the issues related to gold import and gold NBFCs said in its draft report: “The practices followed by the NBFCs in gold loan business need to be subjected to scrutiny in order to make this organised financing process free from vagueness, which otherwise leads to exploitation of customers.”............
FINMIN WANTS TO EXTEND INDIAN BANKS’ ASSOCIATION’S UMARJI’S TERM
MR
Umarji, chief legal advisor at IBA, is set to complete his term in
March this year. But finance ministry is keen that Umarji gets an
extension since he is a hands-on person on banking laws. Also, finmin
would want to gain from Umarji’s expertise, given that the government
would like to pass as many reforms before the next election. A former
RBI ED and framed Sarfaesi Act, he also helped RBI in drafting the
recently-amended Banking Regulation Act.
ET
ET
BANKS GIVE IPADS TO DGM AND ABOVE TO CONNECT WITH GENNEXT
Most
PSBs are becoming tech savvy. Many have started distributing iPads to
senior officials in the hope that they would be better positioned to
relate with young customers. SBI has given iPads to all officers who are
of DGM rank and above, while BoI and IOB have given it to all their GMs
and above. Atleast now PSU bankers have something to look forward to.
ET
ET
Banks rush for state government securities on signs of cash easing
......The bank official explained that the excess holdings gave additional cushion to raise cash from RBI through the repurchase window. Banks excess holdings of 9 per cent gave them leeway to borrow at least Rs five lakh crore from RBI for meeting their cash conditions. Borrowings from RBI were also seen as a low cost route of funding, since it was not treated as part of the net demand and time liabilities, unlike deposits.......
Goa office of Directorate of Enforcement to be upgraded
.......In the past, following criticism in the State Legislature, the then Congress-led government constituted a committee under the then State Joint Secretary (Debt Management) for examining the cases related to acquisition of immovable property by foreign nationals. The committee took up 480 cases of which after finding prima facie violations, nearly 300 were forwarded to the Directorate of Enforcement for action while some were moved to RBI.
Tuesday, January 8, 2013
Subir Gokarn paid the price for disagreeing with the government: CLSA
RBI cites law to stonewall RTI info
As cases of denial of information under the Right to Information Act pile up, the Reserve Bank of India approached various courts as many as nine times against the Central Information Commission’s (CIC) orders directing it to provide information. Seven of these cases are now pending in the Delhi High Court while two are in the Bombay High Court. Not only has the RBI preferred litigation against providing information, the central bank earlier this year also refused to give information on expenses it has incurred on such litigation against CIC orders. Besides these nine cases, there are three others cases in which the RBI sought to become a petitioner to block information against the CIC’s decisions. In these cases, National Bank for Agriculture and Rural Development (NABARD) and ICICI Bank are currently petitioners. The RBI wants to defend them by becoming a petitioner too...........
How Ernakulam officials ensured every single adult there opened a bank account
.......The thought morphed into resolve. And Kerala's local bank officials set the ball rolling. "With Ernakulam we have made a beginning. The RBI's goal is to do this in the entire country," says C.V. Geroge, General Manager at RBI's Kochi office. As many as 45 banks from public, private and cooperative sectors have spread their presence in the district with 850 branches and about 1,000 ATMs. In fact, just two banks - State Bank of Travancore and Federal Bank - account for close to 200 branches. The regional heads of all banks, insurance companies and other financial institutions met frequently, exchanged notes and went about the task in a concerted manner..........
Ombudsman scheme to be reviewed
..........“With a view to examine the Scheme in its entirety, an internal working group has been constituted in RBI under the Chairmanship of Suma Varma, Chief General Manager, Customer Service Department, RBI,” said the Annual Report of the Banking Ombudsman Scheme, 2011-12. The group will include two banking ombudsmen, representatives from regulatory wings of RBI, Indian Bank’s Association (IBA) and Banking Codes and Standards Board of India (BCSBI). The working group will identify grounds of complaints that have become redundant and add new grounds reflecting aspirations of customers. It would also examine the possibility of extending the scheme to cooperative banks and review the grounds of appeal under the BOS...............
Ashwini Ponappa to move back to Bangalore
Shuttler Ashwini Ponappa is all set to move back to Bangalore, a place which the Olympian feels is more conducive for training and playing badminton than Hyderabad where she is living at the moment. "I am shifting my base to Bangalore as my father, who is a RBI official, is moving back to the city. I am more comfortable playing and training in Bangalore than Hyderabad due to the very good facilities available.............
My View on "Once a 'green horn', D Subbarao aims to demystify RBI in 2013"
This assessment of the role of the central bank and an appraisal of sorts of himself and his colleagues makes the case for longer tenures for incumbents at the top of institutions like RBI stronger. GOI should sit back and think whether it was necessary to ease out Subir Gokarn in just two years. Perhaps the error of judgment could be made up by planning in advance and ensuring at least a further two year term for Dr Subbarao who has by now understood the role of RBI and can execute a mission consistent with his vision briefly brought out in this New Year message to his colleagues. RBI and Indian Economy deserve a more mature treatment from GOI in 2013 !
- M G Warrier
Reforms implementation, the key
.......The Reserve Bank (RBI) has given a direction to banks that anyone with an Aadhaar Card will have a ‘no-frills’ account. The central bank had introduced ‘no-frills’ accounts in 2005 to provide basic banking facilities to the poor and promote financial inclusion. The accounts could be maintained without or with very low minimum balance. In fact, the RBI has asked commercial banks to convert the existing ’no-frills’ accounts into ‘Basic Savings Bank Deposit Accounts’. While there will be no limit on the number of deposits that can be made in a month, Basic Savings Bank Deposit Account holders will be allowed a maximum of four withdrawals in a month, including through ATMs. Critics argue that access to bank branches may be a problem. Owing to administrative cost it may not be profitable for banks to open bank branches in every village. As a way out, it is now mooted to have a banking correspondent in every village. .........
An overdraft for a ‘special case’
......As the Chairman of PNB was to retire on July 31, 1975, the RBI recommended for that post O.P. Gupta, Deputy General Manager of PNB. This was approved by Finance Minister C. Subramaniam and Home Minister K. Brahmananda Reddy. When the papers were sent to the Prime Minister as the third member of the appointments committee, she mentioned that Tuli’s name should also be considered for the post. Tuli was then Chairman of New Bank of India, in the private sector. However, the recommendation of the Finance Minister was redrafted and Tuli became Chairman and Managing Director of PNB on August 1, 1975. When the Shah Commission asked C. Subramaniam why O.P. Gupta was not appointed as recommended by the RBI, he said he had not known Tuli earlier, and that PNB was much bigger than New Bank of India. Asked whether the Prime Minister had suggested that Tuli be appointed, Subramaniam replied: ‘Yes.’.....
Banks want incentive for tax-saving deposits
..some banks requested that they be allowed to issue tax-free bonds, as has been allowed to other entities, because banks have good distribution network and can finance infrastructure projects.............
Piggyback selling
........... “Do you own a credit card?”. If the customer says yes, hoping to shake them off, they will then hard-sell their card, suggesting you use it because it has more benefits. The real benefit is for the company: Gaining a customer who already owns a card makes it easier for the company to secure the details required for fulfiling know-your-customer norms as mandated by the banking regulator.
Waiting for the RBI?
.........But there could be another factor at work here: expectations that banks may soon lower interest rates. Finance Minister P Chidambaram has made innumerable statements that the government has done its bit to rein in its fiscal deficit andcurb inflation, and therefore it’s time for the Reserve Bank of India to cut interest rates. All of this has strengthened the expectations of an interest rate cut when the next review of monetary policy takes place later this month......
SBI favours 2 % interest on current a/ c deposits
....." Reserve Bank should allow some interest... something like two per cent to be paid on current accounts... that will encourage more people to put ( money in banks) instead of keeping the money in cash.............
Cut lock-in period for tax saving deposits to 3yrs: Bankers
Bankers demanded that lock-in period for tax saving deposits be brought down to three years from five years to channelise more funds into the banking sector. In a pre-budget consultation with Finance Minister P Chidambaram, bankers also sought permission to issue tax-free bonds like other financial institutions for raising funds and augmenting business.........
'RBI to look at macro situation before deciding on rate cut'
Weeks ahead of its third quarter review of monetary policy, RBI today said it will look at current macroeconomic situation besides inflation before taking a call on reducing interest rates. "Definitely today the policy rate is 8 per cent. Inflation should come not come down to 3 per cent to review the rate but that is depending on the macro economic situation," RBI Deputy Governor K C Chakrabarty said..........
Basel-III: RBI mulls liquidity buffer from SLR portfolio
“We already have quite a bit of liquidity ratio requirement (banks in India)... The basic requirement of basic liquidity that has come is that it should be usable under stress. If we look at our SLR, it’s supposed to be maintained continuously,"..............
Final norms on new bank licences soon, says RBI
......Sinha said the central bank would look into the concerns raised by NBFCs. He, however, added nothing could be assured and advised NBFCs “to live with it”. He said there was no question of treating NBFCs on a par with banks, as banks had more stringent regulatory norms...............
Far reaching changes in powers of the banking regulator
........ The increase in number of banks would lead to more competition and better pricing for the retail customer both for deposit as well as credit products as the newer banks innovate to garner market share. Overall the Bill provides an enabling environment for the regulator and the development and growth of the banking sector.
Hike minimum investment limit for bank licence to Rs 1,000 crore: Assocham
............."Considering the heavy investment needed for technology up gradation for the future purposes, there can be a stipulation suggesting that minimum capital requirement shall be hiked to Rs 1,000 crore from Rs 500 crore within five years of starting the bank. This can help to ensure only serious and resourceful entities are eligible to apply," it said in a statement. ....................
RBI may allow partial SLR conversion to meet Basel-III
T
he Reserve Bank today hinted at allowing part of the statutory liquidity ratio (SLR) holdings of banks to be treated as liquid assets under the Basel-III guidelines, which will come into effect next fiscal. "We already have quite a bit of liquidity ratio requirement.... If you look at our SLR, it is supposed to be maintained continuously. "Therefore, question arises whether we add some more liquidity on top of SLR, which will be definitely not good for our banks. So, we are looking at carving out SLR so that a part of it can become usable," RBI Deputy Governor Anand Sinha told reporters on the sidelines of an event.........
RBI proposal may boost gold loan companies' growth: ICRA
The proposal by the Reserve Bank to increase the loan to value (LTV) ratio to 75 per cent from the present 60 per cent is likely to help gold loan companies increase their business volume at a reasonable rate, says a report by rating agency ICRA.............
Read.........
Read.........
NBFC body asks RBI for same benefits as banks
Non-banking finance companies (NBFCs), in a discussion with Anand Sinha, Deputy Governor of Reserve Bank of India (RBI) on Monday, have asked the RBI to put them on par with banks on areas such as risk weights as per the asset class, tax relief on provisions made for NPAs and permission to raise ECBs..............
Banking Ombudsman Report of 2011-12 shows customers getting the short shrift
...... since banking ombudsman is authorized to cover only specific areas of customer complaint, it will be in the interest of the customer to check whether thecomplaint to be raised by him falls under banking ombudsman’s jurisdiction. What is heartening to note is that The Reserve Bank of India (RBI) has decided to set up a working group to review the banking ombudsman scheme.
Will Cheque-bounce Law Lose its Sting?
..........Thanks to a law that was born a decade after Dickens died and then amended a century later, Indian banks slap a curt notice, threatening criminal proceedings, to force a borrower to pay up once a 'post-dated cheque' - a product of the retail loan boom - bounces. The law makes no difference between crafty borrowers trying to dupe banks and those who have missed their loan EMIs for having lost jobs. But with lakhs of cheque-bouncing cases clogging the courts, the law ministry is trying to figure out whether it makes sense to tweak the law and refer these default disputes for arbitration. It's an idea that has rattled banks............
RBI asked to give all details about NBFCs operating in Karnataka
Bangalore: The Karnataka High Court Monday directed the RBI to furnish within six weeks all details of Non Banking Finance Companies operating in the state and the names and number of private finance companies offering secured and unsecured loans............
RBI dispels NBFCs’ fears of closure
The Reserve Bank of India (RBI) on Monday dispelled fears of the non-banking financial companies (NBFCs) sector that the proposed recommendations of the Usha Thorat committee to maintain an asset size of Rs.25 crore will lead to the closure of small and mid size NBFCs in the country........
Read - Hindustan Times
RBI cancels registration of two NBFCs
Mumbai: The Reserve Bank Monday said it has cancelled registration of two non-banking financial companies -- Emcorp Finance Ltd and Care Credit and Investments Company Pvt Ltd. "Following cancellation of the registration certificate the companies cannot transact the business of a non-banking financial institution," the RBI said...........
Monday, January 7, 2013
Once a 'green horn', D Subbarao aims to demystify RBI in 2013
Calling himself a "green horn" at the time of joining Reserve Bank as its Governor over four years ago, Duvvuri Subbarao has now set a goal to demystify the 'black box' image of RBI and make it a role model for central banks globally. "For an outsider looking in, the RBI is like a black box. Everyone knows people in there do important things, but cannot figure out the connection between that and their lives". "It is important that we demystify the RBI so that people know enough to demand accountability from us,"..........
Punishing the central bank
.........If even after this weakening of the central bank’s monetary stance, the government is bent on making it reduce the policy rates, the conclusion can only be that it wants to whittle down RBI’s independence. Gokarn’s “ouster” must be seen in this light. As the deputy governor for monetary policy, he was the keystone in formulating RBI’s monetary policy stance. In this, he acted in tandem with Subbarao. By ensuring his exit, the government has sent a clear signal that it will not tolerate a central bank that is independent beyond notional terms.
Jodi ka mamla................ KBC via RBSC
If
you have seen yesterday's (4th January) episode of KBC you might have
noticed that a young couple from RBI had appeared - Mrs. Nidhi Chaudhry
and Mr. Dev Raj. They met at RBSC Chennai during training. As you all
know that our Training college at Chennai is also known as
Marriage Bureau for DRs and in each batch a few marriages always takes
place. Promotees don't have that chance because by the time their number
comes for training at Chennai College they are already
married and settled in life. She
made it to the hot seat but unluckily could not win any amount. and
had to leave empty handed. She had selected a "Padav" at 6th question of
Rs.1,60,000/-. She made it to Rs. 80,000/- but was in too much hurry to
answer the last question despite having three lifelines. Anyway our
sympathy goes to her and we wish her a better luck next time. If you are
interested the question was at which degree temperature in both
Centigrade and Fahrenheit is same. The correct answer was - 40 degree
and she replied 40 degree. It
could not be made out from which office of RBI they had come. Anyway
she has already
left RBI as she is selected for I A S and is presently doing
training at Mussorie. However her husband is still working in RBI. If
any of our member has seen the programme, he/she may like to add more
information. And if you happen to know them please convey
our congratulations to them for making it to KBC. You are also free to
add your own experiences at RBSC Chennai.
Madan Gauria, Ex-AGM (Moderator - EXRBITES Group)
| Instantly comes to mind the persons to whom RBSC made life partners: YSP and Usha Thorat; Nalini and B. Mukherjee and Jerome D'Souza and Gokhale Madam......... - Surendra Khot, Ex-GM |
Exhibition on the “Documentary Heritage of Reserve Bank of India”
The
73rd Session of the Indian History Congress was inaugurated by His
Excellency Shri K. Sankaranarayanan, Governor of Maharastra on December 28, 2012. Addressing a large gathering of historians the Governor
observed that history is the universal teacher of mankind. It is a multi-faceted discipline and its subject matter is all that human beings have said,
done and thought. He further stressed
that the rulers must remain alive and sensitive to the basic needs and
developmental aspirations of the poor, the downtrodden and the
socio-economically backward sections of society. The History Congress was
attended by about 2500 delegates from different parts of the country and
abroad.
The
RBI Archives exhibition evoked good response and was visited by about 1800
visitors from University, College teachers,
academicians and research students from across the country. Some of dignitaries
who visited the stall included Professor Irfan Habib, Historian from Aligarh
Muslim University, Prof. S.Z.H. Jafri, Professor of History, University of
Delhi & Secretary, Indian History Congress, Shri B.M. Mishra, Officer-in
Charge, Department of Economic and Policy Research, RBI, Central Office, Smt.
Gunjeet Kaur, Director, History Cell, RBI, and Shri R.L. Sharma, Vice
Principal, College of Agricultural Banking, Pune.
The
officers from RBI Archives, i.e. Dr. R.L. Sahoo, Chief Archivist, Shri Ravi
Kiran Pala, Archivist, Dr. Savesh Singh, Assistant Chemist and Smt. D.D. Saraf,
Assistant Manager, managed the exhibition stall and distributed exhibition brochures to the visitors. RBI Archives
team received guidance from Smt. Meena Hemachandra, Chief General Manager and
Principal, CAB in making the exhibition a grand success.
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