..................The major concern is that the money should not go to the wrong people but to those who desperately need it. That is why it is felt that new private sector banks may not be the answer to the financial inclusion objective. Those who want to game the system have ways of doing it and are always one step ahead of the regulators. No amount of ring-fencing works.
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.
Tuesday, February 26, 2013
Cash Transfers: Merits and demerits
..........The RBI's definition of financial inclusion mandates a bank to offer at least four services: savings account with an overdraft facility, business loan, remittance facility and an insurance-cum-retirement benefit product. Today, for the purpose of cash transfers, banks are offering merely a bank account. Mostly, it's a no-frill account: this does not burden an account holder with a minimum-balance requirement, but also places restrictions like a monthly cap on number of withdrawals....................
Japan's 7-Eleven eyeing Indian white label ATM space
..........Japanese financial and retail chain 7-Eleven is considering entering into the white label automated teller machine (ATM) space in India, three people aware of the development said. Seven Bank, a Japanese banking unit of 7-Eleven, has an ATM business arm..........
“Don’t privatise banks, insurance”
The UPA government should give up moves to privatise banking and insurance sectors, CPI (M) district secretary B. Narayana demanded on Sunday. Prime Minister Manmohan Singh gave directions to RBI permitting private investment and institutional finance in banks and insurance sectors, a day after the nation-wide general strike, he told a press conference here............
Sena, MNS freeze PSU bank’s hiring
Mumbai:
Under pressure from the Shiv Sena and the Maharashtra Navnirman Sena,
the Central Bank of India (CBI) has decided not to interview candidates
from outside Maharashtra for clerical posts. Several candidates from
other states in the city for the interviews have been asked to wait till
the bank gets directions from the Institute of Banking Personnel
Selection (IBPS) on how to resolve the issue......
Read - TOI
Read - TOI
RBI vs IRDA: Finmin to play peacemaker over broking licence for banks
............"The IRDA and the RBI can jointly come up with a framework where
commissions are regulated and banks also share the responsibility of
misselling," said a chief executive of a private sector insurance firm.
Bankers, too, have apprehensions about lenders doubling up as brokers.
"The concerns raised by RBI are valid. Brokers also need to take out a
professional indemnity policy," said the executive director of a
state-run bank.
Inside Man Vijayan’s the Right Fit for Irda
If
authority over the industry, professionalism and a secretive nature are
the hallmarks of a regulator, TS Vijayan is the perfect fit to head the
insurance regulator. Vijayan, the 59-year-old life-time insurer,
carries with him an enormous bank of knowledge of the industry, has
earned the admiration for laying the foundation for the Life Insurance
Corporation of India’s survival amid competition from nimbler rivals —
and loads of animosity.........
Read - ET
Read - ET
Monday, February 25, 2013
Don’t lower your guard
RBI honcho vows banking for all in remote village
The Executive Director (ED) of Reserve Bank of India (RBI) participated in a programme organised by the central bank in Saram Village of Gola block in Ramgarh District. The programme on financial inclusion was aimed at making the villagers aware of the various financial programmes run for their benefits by banks in the area. On the occasion Deepali Pant Joshi, ED, RBI said, “RBI will help in the expansion of banking services in rural areas and will also spread awareness about them.” It is expected that baking services could be provided in the villages having population of 2000................
Rs 500 denomination banknotes gain significance: RBI study
..........."Rs 500 denomination notes quickly emerged as the second most important denomination since 1998-99 and replaced Rs 100 denomination as the most important denomination in 2003-04. Its share in value among all denominations peaked at 47 per cent in 2010-11," ..........
Banks like ICICI, HDFC to give big hikes to ward off poachers, advent of new banks to perk up demand
MUMBAI: Middle and lower level management staff at lenders such as ICICI Bank, HDFC Bank, and IndusInd Bank are probably in for sweet pay increases this year as human resource managers strategise to ward off poaching by new banks............
Obituary
With profound grief I inform
that Smt. Leela Joshi, wife of Shri R. M. Joshi, Ex-CGM, RBI and Ex-ED, SEBI passed away on 23rd February 2013 at 11.25 PM after a brief ailment. May her eternal soul rest in
peace.
- K.S.Iyer, Ex-Manager, Mumbai
Do we need more banks or bigger banks?
............India, the second largest populated country, has total 77 banks including 27 public sector banks, 20 private banks and 30 foreign banks. However, this huge universe has not clinched any significant global footprint............
India needs larger banks, consolidation: Parekh
..............“The need today is for more consolidation than the new banks, because what we require is large-scale banks,” he said. Asked if Indian banks need to match the size and scale of their international peers and consolidate their positions on global league tables, Parekh replied in affirmative and said: “We need scale for that and we would need consolidation to get the scale.”.........
India needs more banks, the RBI should issue fresh licences with dispatch
Broad and Welcome
.....Finally, the RBI has invited applicants to suggest how they would go about achieving financial inclusion. This attention to financial inclusion is welcome. But the RBI must give up the idea that financial inclusion would be achieved through expansion of branch networks to unbanked areas. Rather, financial inclusion should be predicated on deployment of new technologies, such as mobile banking, taking advantage of the Aadhaar project and the ongoing rollout of broadband and power to rural areas...............New banks: Subbarao says welcome, but don’t come in
All fit candidates should be allowed to set up banks
..........Assuming that this committee will be given three months to scrutinize the applications, RBI will take a look at them in October and it is anybody’s guess when it will issue the first licence. Unlike in 2001, when the central bank had made it clear that “the number of licences to be issued in the next three years may be restricted to two or three of the best acceptable proposals”, this time it is silent on how many new banks it wants in the system. It merely says the licences will be issued on a “very selective basis” and RBI may not be in a position to give licences to all applications which meet the eligibility criteria. So, an element of subjectivity in the final selection cannot be ruled out even though RBI is committed to handle it transparently—the names of the applicants will be put on its website...........
Thirteen changes in new bank licensing norms
In the past two decades, the Reserve Bank of India (RBI) has allowed formation of 12 new banks. The guidelines on entry of new banks that were issued in January 1993 and were revised in 2001. On Friday, RBI released a new set of norms to allow creation of more banks. Here is a brief comparison of the guidelines issued in 1993, 2001 and 2013:
After RBI nod, scramble for banking licences begins
With the Reserve Bank of India (RBI) having opened up the field for banking licences, large business conglomerates and non-banking finance companies (NBFCs) are getting cracking with their applications. While it is a known fact that well-diversified NBFCs were waiting for RBI to invite applications, broking firms like Reliance Capital and Religare Enterprises and realty players like Indiabulls, have also shown keen interest to apply for licences...........
Over dozen corporates, PSUs queue up for banking licences
New Delhi, Feb 24 (PTI) More than a dozen corporates, including big names such as Aditya Birla Group, M&M, L&T, as well as state-owned PFC, LIC and India Post, will apply to the Reserve Bank for licence to open banks. While announcing comprehensive guidelines for new bank licences two days ago, the RBI said interested entities can file their applications by July 1...........
RBI guidelines to facilitate entry of serious players in banking sector: Kochhar
 |
| .........."The Reserve Bank has clearly spelt out the regulatory framework for granting the licenses, for the ownership and management of the new banks and also for the non operating holding companies that the guidelines require to be set up,".......... |
RBI finds 154 cases of misuse of ECB funds: Meena
......The Reserve Bank of India (RBI) has found as many as 154 contraventions of ECBs since 2009-10, Minister of State for Finance Namo Narain Meena said in a written reply in the Lok Sabha........
A case for converting India Post into a bank
.....However, India Post Bank should make investments in modernising the newly formed branches, provide the required wherewithal — such as two-wheelers, hand-held devices and mobiles — to its marketing staff to do business in remote areas. Once India Post becomes a bank, it would infuse a sense of enhanced pride into its staff whose salary and perks will also be equal to that of the bank staff. Necessary changes at the board level need to be made and various other committee members cherry-picked. However, it is felt that a seasoned banker from pubic sector banks, preferably from SBI, should be the CEO of India Post Bank, with two group executives for the rural and urban subsidiaries......
RBI went with majority view on rate cut
Reserve Bank of India (RBI) Governor D.Subbarao went with the view of the majority external members when he announced a 25 basis points (bps) cut in the repo rate in the third quarter policy review last month. Minutes of the technical advisory committee (TAC) meeting held on 23 January, six days before the policy was announced, showed that all external members on the committee were unanimous in recommending a cut in repo rate......
RBI & Sebi were Prudent; it Helped Economy Withstand Many a Crisis
.....The
RBI and Sebi have been extremely prudent and that has helped the Indian
economy to withstand many a crisis. Now you can look back and ask why
China has more FDI than India, or why there is more FII in India versus
China. Because on the FII metrics, India is a lot more developed and
attracts a lot more investment than China. But from the FDI perspective,
clearly, China is much ahead......
Read - ET
RBI clamps down on city bank, sparks panic
..............This follows a long-drawn battle by RBI to put things in order in the bank’s working since 2002. Operations at the 101-year-old cooperative bank with 40 branches across Maharashtra, with about eight lakh account holders and 50,000 members, came to a halt with account- holders hitting the panic button. “We got a letter hand-delivered from RBI at 10.30 this morning saying that these restrictions are being imposed under Section 35A of the Banking Regulations Act of 1949,” ............
Rupee Bank directors to visit branches
.........he RBI restricted withdrawal by the bank's customers after the unsatisfactory recovery of the bank's non-performing assets (NPAs). Meanwhile, the senior directors and officers of Rupee Bank held a meeting on Sunday and decided to first visit branches of the bank in the city. They will later form a delegation to represent the bank before the RBI..................
Budget 2013: Exempt DA from income tax, says National Mazdoor Conference
......"The price escalation is directly linked with the DA of the salaried class and pensioners but it was strange that the income tax is also imposed on the increase of the salaries because of the DA,"......
Many co-op. banks ignoring farm sector
.......The panel headed by Prakash Bakshi, Chairman, National Bank for Agriculture and Rural Development (NABARD), which submitted a report on cooperative credit structure to the RBI last month, said that the share of many PACS and CCBs in farm credit has been less than 30 per cent in their operational area.........
Saturday, February 23, 2013
Anand Sinha set to get another year as RBI dy governor
 |
| Sinha, the architect of new bank licence norms, will be a key member of the central bank |
Reserve Bank of India (RBI) Deputy Governor Anand Sinha, who was to retire at the end of this month, is set to get a year’s extension, a government official told Business Standard. “Orders to this effect (Anand Sinha’s extension) would be issued shortly,” a key official told Business Standard..............
The Guv keeps the bar high
 |
| ......It took nearly three years for the Reserve Bank of India (RBI) to give a final shape to the government’s decision to let more players in the private sector banking field. That by itself offers a clue to the divide in thinking between the fiscal and monetary managers of the Indian economy. When it did come out with guidelines for “Licensing of New Banks in the Private Sector”, the central bank has let it known to aspirants at large in unambiguous terms that banking is a no-nonsense, serious business, and that there cannot be any trust deficit........... |
Read - The Hindu
Interesting banking times ahead
..........RBI should be commended for opening the doors and adding caveats to ensure that there is no misuse of the licence and that they operate on a firm footing, which is in line with the objectives of banking in the country. There are really two questions that can be put up for debate. The first is whether this is good enough for private capital to flow in. The second is whether this will change the architecture of banking in the country........
RBI moves boost loan recovery, says FM
Steps taken by the government and RBI have led to improvement in recovery of bad loans of public sector banks which rose to Rs 1,84,193 crore at the end of December 2012, Finance Minister P Chidambaram said on Friday..................
Plastic notes now at a market near you, one billion in circulation in select cities
........."It was decided by the government and the Reserve Bank to introduce 1 billion pieces of Rs 10 notes in polymer, plastic on a field trial basis in the cities of Kochi, Mysore, Jaipur, Bhubaneshwar and Shimla.... The process of field trial has been initiated by RBI. "A decision to issue polymer/plastic banknotes for long term circulation will be taken on the basis of the outcome of the field trial," ............
Financial inclusion must for new banks
 |
| ......"Applicants for new bank licences will be required to furnish their business plans for the banks along with their applications," the guidelines issued by the Reserve Bank of India said. "The business plan will have to address how the bank proposes to achieve financial inclusion."....... |
High asset price volatility clause may be a hindrance
.....Although RBI did not exclude any sector in the guidelines, the wordings in the circular have raised concerns on whether real estate and broking firms would qualify. Both these business are considered volatile, as stock markets and real estate are known to have a speculative element in them.......
Experts' cheer mixed on RBI’s bank-licence guidelines
 |
| ..........."As a regulator, the RBI will have to study the merits of every application and check if it meets the stipulated requirements before issuing a licence. That's a very fair way of moving forward," he says. "The banking entity also will be able to lend to companies in the group but will not be able to invest in them."........... |
More clarity required on RBI's new norms: M&M
.......The clarity on transition provisions for existing NBFC was very nice. The guidelines and the sentence, that existing NBFCs would be permitted to convert themselves to or alternately promote a bank. That is the option given. However, one would need more clarity on the transition provisions and how they would apply..........
Stiff banking conditions
..............some of the conditions appear stiff—asking new entrants to ensure that 25% of their branches are located in unbanked rural centres seems unfair since it would pressure the banks’ profitability in the initial years. Since banks need to list on the exchanges within three years of starting operations, they could have been given some time to expand their presence in the hinterland. In any case, forcing rural obligations has not worked in the past for any sector.............
India Post to enter banking space
.....The Reserve Bank of India on Friday issued the much awaited guidelines for new banking licences. Among other terms, new banks should open at least 25 per cent of branches in unbanked rural centres. Of the 1.55 lakh post offices, around 24,000 district offices may be ready to offer banking services in next two years. Post offices are being enabled by core banking solution's connecting nationwide branches as part of an transformative IT project......
Corporates keen to enter banking space, welcome RBI norms on new licences
M&M, Reliance Capital and players in the financial services space today welcomed Reserve Bank's guidelines for issuing licences for new banks and showed keenness to enter the business. Yielding to government's stance, RBI today allowed corporates and PSUs with sound credentials and Rs 500 crore to invest as paid-up capital to set up commercial banks...........
Religare optimistic on RBI's guidelines on banking licence
..........Any financial services company, even at Religare today, our board is largely independent. One is governance and the other one is shareholding. RBI clearly indicates that if any bank is not largely directed in any way controlled by a promoter group and is governed in a very dependent manner then it is a welcome and de-risking attitude that the RBI has taken. So, I don't think it is very positive from that context.
Assam Police launch operation against fake non-banking financial companies
GUWAHATI: The Assam Police with the help of the Reserve Bank of India (RBI) has decided to launch an extensive operation against dubious non-banking financial companies (NBFCs) in the state. To ensure that the initiative is effective, the state police have decided to impart technicalknowhow about NBFCs among investigating officers (IOs).......
My View on "Wage Revision Remains in Cold Storage...."
The observations are correct. However, IBA has called AIBOC and AIBOA on Feb 22,2013 for wage revision talks. As usual, the minutes of negotiations would not be maintained, the talks are exploratory in nature and Assns are not interested in early settlement.The prime reason is levy and importance garnered by the leaders. Pl remember that PAY COMMISSIONS composed of 3 to 5 members give much hefty rise than what you get in bi partite collective bargaining.
- Sitendra Kumar
Centre should perhaps consider a quick review by such an expert group which should go into the adequacy of wages, minimum and maximum remuneration across sectors, their relationship to lifestyle needs of employees and paying capacity of employers and the need to factor in social security needs like healthcare and old age care in wages. The findings of such a study will help government in providing some broad policy guidelines to be followed by industries across public and private sectors, while negotiating wage structure. Transparency in policy will go a long way in reducing sporadic eruptions emanating from suppression of genuine human aspiration for a reasonably comfortable life, safe and secure in all respects.
- M.G.Warrier
Unclaimed deposits of over Rs. 2,481 crore in banks till December 2011
........in the Banking Laws (Amendment) Act, 2012, a new section has been inserted in the Banking Regulation Act empowering the RBI to establish the 'Depositor Education and Awareness Fund' for the unclaimed deposits lying with any bank for more than 10 years. "This fund will be utilised for promotion of depositors' interest and for such other purposes which may be necessary for the promotion of depositors' interest as may be specified by the RBI from time to time,"...........
Banking fraud total jumped 43% to Rs 52.66 cr in 2012: Govt
..........He said the RBI has asked banks to take preventive measures to combat frauds relating to skimming or duplication of credit cards. RBI has also advised banks to set up internal control systems to combat frauds and to take pro-active fraud control and enforcement measures to ensure that credit card operations are run on sound, prudent and profitable lines. Moreover, it has also cautioned banks on phishing attacks containing details of the modus-operandi on such attacks and minimum set of preventive measures to tackle phishing attacks.......
AP High Court ruling has sent MFIs back to square one
......"The directions issued by the Reserve Bank of India coupled with the provisions of Chapter IIIB of the RBI Act will protect the interests of the self help groups from usurious interest rates and coercive means of recovery.... Apart from this, the Micro Finance Institutions (Development and Regulation) Bill, 2012, introduced by the Central Government in the Lok Sabha is a complete code in itself as regards the micro finance institutions. Once that Bill takes the shape of an enactment, we are of the opinion that it will govern every aspect of the micro finance institutions at all levels and in all respects and all the issues raised by the petitioners herein. In such circumstances, it would be a futile exercise for this Court to examine the legislative competence or otherwise of the State to legislate the impugned enactment, therefore, we have not gone into the same."......
Empower the Fiscal, Don't Weaken It - Y.V.Reddy
.....The term I use is fiscal empowerment. In countries like India, you should not look at just reducing the fiscal deficit. In fact, you should have more expenditure. In the future, there will be a greater demand for water, sanitation and public health. Can the private sector provide that? Ultimately, it is the fiscal that gives you the capacity to mitigate risks, handle the financial sector instability etc. So in my book, I argue: Empower the fiscal, don’t weaken it.........
Govt mulls new deposit scheme to bring down physical gold demand
.....The scheme to be operated by post offices in rural areas besides select Public sector banks as authorised by the Reserve Bank of India (RBI), involves primarily a fixed deposit account with varying periodicity as offered by banks today but with one exception. The balance will be maintained in terms of gold units (in grams) and not in cash by converting the amount deposited in the account into gold units based on bank’s gold selling rate of the bank. This rate will be fixed by the..........
From bridal baubles to bullion bars, India's gold culture defies curbs
......Gold has been deeply entwined in Indian culture for thousands of years. Nowadays, India is by far the world's biggest buyer of gold and those imports are an increasing drain on an economy that is growing too slowly to reduce widespread poverty. Last year Indians imported 864 tonnes of gold, about one fifth of world sales.........
Corruption cloud over budget session
..........While the Finance Ministry and corporate captains have blamed the Reserve Bank of India for not lowering interest rates until recently, the RBI has stuck to its guns that one of the primary goals of monetary policy is to lower inflationary expectations. As RBI Governor D. Subba Rao succinctly put it: “People who are worried about economic growth are typically quite articulate, that they have a platform to express their concerns…I have sympathy with that view (that high interest rates had slowed down growth). I am not saying that’s an invalid criticism. But I just want to say that their voice is heard, but people who are hurt by inflation -- the large majority of the poor -- their voice is not heard.” The RBI Governor’s statement could not have been a sharper indictment of the government’s economic priorities. Many believe the government is courting political disaster.
Friday, February 22, 2013
Allow the rupee to depreciate - S.S.Tarapore
...............The Reserve Bank of India (RBI) which, for a very short period in the latter half of the 1990s, revealed the CAD-CR ratio, has quietly buried this figure in its mass of balance of payments data. The RBI should highlight the trends in the CAD-CR ratio in its forthcoming Annual Report. As Y.V. Reddy has perceptively commented recently, one cannot have a single CAD-GDP ratio which is appropriate over the cycle. If the CAD-GDP ratio is 5 per cent at a low point of growth how much higher would it be when growth gets back to a trend line of, say, 8 per cent?............
A real currency war
.......Coming back home, the rupee volatility has been declining despite the thin market imposed by the Reserve Bank of India. However, any upsurge in global volatility would certainly upset this tentative calm and make risk management even more difficult — be very careful.
UK govt bows to public pressure—rejects abolition of cheque system. Will RBI follow suit?
....It is surprising that while the decision of a tiny country like Ireland to abolish the cheque system is fairly brought out in the discussion paper of the RBI in support of the proposal, the decision of the developed country, the Mecca of banking like Great Britain to completely shelve the idea has not even found a casual mention in the discussion paper, though the decision in UK to scrap the project was taken as early as in July 2011—much before this proposal was thought of by the RBI.......
In hoax we feel happy..........
-------- Original Message --------
Subject: PAYMENT NOTICE OF 7,50,000GBP FROM RESERVE BANK OF INDIA!
From: Reserve Bank of India <info@rbi.org.in>
Date: Wed, February 20, 2013 9:22 am
To: undisclosed-recipients:;
OPEN THE ATTACHED FILE AND REPLY WITH YOUR COMPLETE DETAILS TO THE
TRANSFER DEPARTMENT OF RESERVE BANK OF INDIA
<PAYMENT NOTIFICATION OF YOUR FUNDS..docx>
Pl. see the above mail received by my daughter. Such frauds are increasing day by day. Even RBI is not spared. This must be circulated to all RBI'ts.
- C.P.Sonak, Ex-DGM
I am thinking of sending a hoax mail to all retired people that their
PENSION UPDATION case has been cleared at the highest level.The real
mail we do not get, at least the hoax makes us feel on par with Ambanis
and Mittals.
- Sitendra Kumar, Ex-GM
Wage Revision Remains in Cold Storage - 2 Day Strike by Bank Staff - UFBU needs to draw its strategy
...... I think at this time, the top most agenda item which every banker wants to discuss is the 10th BPS, which has become due from 1st November, 2012 i.e. almost now it is 4 months overdue. For certain sections of retired bankers the core issues to be resolved are - 2nd pension option to resignees etc, 100% DA neutralisation to pre-01/11/2002 retirees, and updation of pension. I think, there will be hardly any bankers who will disagree with me on this issue except some hardcore UFBU leaders. If this is true, then question arises why UFBU decided to waste its energies on political issues which are not likely to bring any results for the bankers or the country............
Indians prefer to put their retirement savings into cash deposits: HSBC
..........."When the economic downturn first hit and many people reduced or stopped saving, everyone expected the storm would eventually pass; but today's shifting economic and social trends require people to think differently about their planning and prepare for the unexpected,"..........
A Budget for savings?
......The Reserve Bank of India also has to balance the interests of domestic industry (calling for quick and substantial cuts in rates) and those of savers. A move to aggressively cut rates may further push savers out of financial assets. Even today, bankers are reluctant to cut deposit rates, since deposits are only growing at 13 per cent. A substantial reduction in lending rates looks tough, unless deposits start growing again. Unless the pool of financial savings can be significantly enhanced, deep rate cuts by lenders are just not possible.........
A budget in the shadow of record current account deficit
..... Well, the Reserve Bank of India (RBI) believes the country’s sustainable current account deficit is 2.5% of GDP. It’s far above that level now, and the massive gap has to be financed through capital inflows, which makes the Indian economy completely dependent on the kindness of foreigners. Any loss of confidence in India’s growth prospects, any lessening of global risk appetite, and fund flows to the country’s markets could start drying up, dragging down the rupee and leading to a stampede for the exits.......
Pvt Banks Take Country Roads to Keep Competition at Bay
A few
private sector lenders have started strengthening their rural presence
as they prepare to take on competition from new players who are being
granted licence as part of the government’s financial inclusion plan.
While HDFC Bank is reaching out to the rural community on its own, Axis
Bank and Yes Bank are working through business correspondents, or local
representatives, and tie-ups. The push into these regions, though not very lucrative, is also in part due to the saturation in the urban areas........
A walk on the wild side
.........Pressures to spend will always exist, says Subir Gokarn, an economist and former bigwig at the RBI. In areas such as education and infrastructure, that is only right. So revenues need to rise. A new report by the IMF compares India with other countries, adjusting for their wealth. It implies that India’s government revenues should be 25% of GDP. At present they are just 18%..........
Growth versus Inflation
........The Reserve Bank of India (RBI) may take pride in claiming, even if in jest, that it has prevented a “big bang collapse” and that in pursuing higher growth and lower inflation, it has reduced the repo rate and cash reserve ratio (CRR) by 0.25 percentage point each in its latest policy statement of 29 January 2013 (RBI Post-Policy Conference Call for the Media). However, it is not surprising that the domestic financial markets have uniformly reacted adversely to the measures on the ground that the RBI policy correction was too meager and that it has come a long time after the economy had slipped into a morass of depressed business conditions..........
RBI officials fear budget choices give less room for rate cuts
.......Yet, officials in the Reserve Bank of India fear that cutting capital spending on projects with strong multiplier effects like building roads and bridges, won't help revive growth, which is seen as a priority if the economy is to avoid a downward spiral. And they also worry that maintaining populist spending on subsidies for food, fuel, fertiliser and cooking gas will push up prices......
Realtors, brokers to get RBI lifeline
The Reserve Bank of India (RBI) has softened its stance on allowing real estate firms and brokerages to apply for banking licences. Sources familiar with the developments said the final guidelines, to be announced by the end of the month, would set aside its earlier reservations about these entities............
RBI works comes standstill due to staff strike
JAMMU, Feb 21: The local units of RBI Workers Union and Reserve Bank Employees Association observed two days’ strike on February 20 and 21 on the call of All India Central Trade Unions. They were protesting against the failure of the government to control price rise, worsening economic conditions, outsourcing of work, exploitative and anti-labour policies of the government. The work in Reserve Bank of India came to a standstill due to the strike. The protesting employees held massive demonstration at the gate of the RBI building at Jammu under the aegis of Jammu Chapter of United Forum of Reserve Bank Employees and Workers. Later the leaders of the constituents of the United Forum including BS Kirola, Secretary, Reserve Bank Employees Association, Supen Kumar, Chief Secretary, Reserve Bank Workers’ Union, Raj Kumar, President, Reserve Bank Workers’ Union, among others. The speakers highlighted the importance of the issues being agitated by the trade unions all over the country.
Kashmir Times
Over 4 million cheques worth Rs. 250bn remain unprocessed
.........“About 4 million cheques worth about Rs. 250 billion could not be processed on Wednesday in various clearing houses of National Payment Corporation, RBI and SBI. Clearing operations were totally affected in all the district and town centres also.”............
ATMs act as saviour for citizens
Outsourcing of work to fill cash in the automated teller machines (ATM) acted as a respite for ATM users in the two-day period of bandh. Despite banking services getting disrupted, the ATMs did not dry up on February 20 and 21...........
Rs. 2,000 cr transaction blocked in banks
Terming the two-day nationwide bandh call opposing the anti-labour policies a success, joint secretary of National Organisation of Bank Workers (NOBW) Prakash Deshpande said that transaction of Rs2,000 crore was blocked in banks...........
Inflation- fired bandh
....Among the slew of demands, the most appealing to large sections of the people was the one about taming runaway inflation. The poor and the middle- income groups are hit the hardest by the doubledigit price- rise. The failure of the government to rein in fiscal deficit lies at the heart of the inflation problem. In real terms, incomes of salaried classes and of the vast numbers in the unorganized sectors have shrunk in recent years.......
Banking, transport sector hit on day two of nationwide strike
.....“A majority of ATMs have dried up while (bank) branches are shut. Additionally, there has not been any cheque clearing as personnel from RBI too joined the strike. It will take at least 2-3 working days to clear the backlog for banks”, said All India Bank Employees Association Vice President Vishwas Utagi.....
Banks, industry must work together: Anand Sharma
Union minister for commerce Anand Sharma on Wednesday said industrialists and banks should engage in meaningful dialogue to facilitate investment and growth and address challenges facing the economy. The minister also asked banks to lend to small entrepreneurs, artisans and weavers at affordable costs. “Economic activity is not an option but a priority and a national imperative,” Sharma said while speaking at the FE Best Banks Awards..........
Indian banks need to raise Rs.2.7 trn by March 2018
Indian banks need to raise Rs.2.7 trillion by March 2018 to meet the capital requirements mandated by Basel III international standards, Crisil Ltd, the local arm of global rating agency Standard and Poor’s, said on Thursday. The Reserve Bank of India has already issued capital regulations that domestic banks have to start complying with in phases from April. Of the Rs.2.7 trillion Indian banks need to raise, a minimum of Rs.1.3 trillion should be raised as equity capital and up to Rs.1.4 trillion as non-equity funds, Crisil said in a statement........
Mounting NPAs offer little respite to public sector banks in third qt
The October-December quarter brought little cheer for public sector banks that are still struggling to manage their asset quality and keep net interest margins (NIMs) from falling. Bankers say restructured loans remain an overhang, especially in sectors like.........
NBFCs likely to get tax treatment parity with banks
.......Like other lenders, NBFCs too follow the Reserve Bank of India's (RBI's) prudential norms and defer income regarding their NPAs and make provisions for the same. However, income tax authorities do not recognise these norms and tax NBFCs on such deferment of income on accrual basis resulting in tax on unrealised income. Sources in the department of financial services said the government is "positively inclined" to offer tax parity to NBFCs and the other lenders describing it a "reasonable demand" and hinted that the Budget could announce this change...........
Former LIC chief takes charge as Irda chairman
It’s a comeback any professional would dream of. Less than two years after he was demoted to managing director of Life Insurance Corporation (LIC) following charges of financial irregularities, something that eventually prompted him to take voluntary retirement in November 2012, T S Vijayan was appointed chairman of the Insurance Regulatory and Development Authority (Irda), the country’s insurance regulator. An Irda statement said Vijayan had taken charge with immediate effect...........
Thursday, February 21, 2013
Dr Reddy’s prescription
..........At this stage, when policymakers across the globe are trying hard to find answers to possibly the most difficult questions of recent times, Y.V. Reddy, former Governor of Reserve Bank of India (RBI) and the chairman of the 14th Finance Commission, has put forward his assessment and policy prescription in his new book Economic Policies and India’s Reform Agenda: New Thinking, which could be a useful guide for economic management in an otherwise complex world. ..........
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