VITALINFO

Friday, March 22, 2013

My View on "Doctors to ask RBI to make coins blind-friendly"

GOI and RBI should act on this report without waiting for formal petitions from organisations. Minting of coins world over did factor in the need to make coins ‘blind-friendly’ till vulgar commercialization and aggressive ‘outsourcing’ of works like minting of coins profit-motive overtaking humanitarian considerations. Going a step further, RBI should take a lesson from this and continue the size-difference in currency notes which will help easy differentiation of denominations. Let us not follow $ Lords in everything as this geographical area is yet to catch up with developed countries in several development indicators including literacy.

- M.G.Warrier

Growth, Development and Governance

Good governance ensures trust in banks and non-banking financial intermediaries: Anand Sinha

For an economy to perform well and for the financial system to be stable, good corporate governance would be required across all these segments. Regulatory governance refers to control exercised by regulators over firms through statutes, policies and regulations.......

Read.........

Chakrabarty downplays Cobrapost exposé

.....“Allegations doesn’t mean flouting (of KYC norms). There is not a single transaction which has taken place” K C Chakrabarty, deputy governor, RBI who is incharge of bank supervision department in central bank told reporters today. “We cannot take action based on allegations, (only) if we find something ...that is a continuous process” Chakrabarty said adding supervisory process of RBI is very effective. If we find something is wrong, we will always take action......

Read | Business Standard

No poison in Cobra bite; ICICI Bank, Axis Bank bounce back after RBI clean chit

...........An undercover sting operation across India by Cobrapost caught everyone by surprise, even the banking regulator - Reserve Bank of India (RBI). However, recent comments by the Dr. K.C Chakrabarty, Deputy Governor of the Reserve Bank of India suggested most allegations were baseless, ET Now reported..............

Banks to Cover Whistleblowers

.... Chanda Kochhar of ICICI Bank Aditya Puri of HDFC Bank, and Shikha Sharma of Axis Bank have conveyed their displeasure at some of their employees being caught on camera advising clients on avoiding taxes. They have uniformly said there is zero tolerance for such acts. “The bank lays very strong emphasis on ethical behaviour and has zero-tolerance policy with violation in this regard,” Kochhar wrote in an email to ICICI Bank staff. “Any breach in this regard will not be tolerated,” .........

Read...........

RBI may tighten KYC, other norms if needed: Deputy Governor KC Chakrabarty

......."Let us not unnecessarily downgrade ourself. Our system to prevent money laundering is perfect, absolutely nothing (wrong with it)," he said. Chakrabarty also said RBI will further tighten the anti-money laundering norms if needed. "If we find there is a need to further tighten any guidelines, we'll do that." The comments come even as the RBI, Finance Ministry and the banks concerned are probing the allegations that some officials of these banks offered to facilitate money laundering........

30 banks to switch to risk-based supervision from April 1

......."The risk-based supervision system is likely to be implemented from April 1. The RBI has decided to implement it in 30 large banks. These banks were called for a meeting today with the RBI," Indian Banks Association chairman and PNB chief K R Kamath told reporters after the meeting with the top RBI brass led by deputy governor KC Chakrabarty. The new system will bring in a uniform methodology to check the health of the banking system, as against the CAMELS framework used at present which follows a compliance-based and transaction-testing approach................

No information dissemination before annual policy in May: Subbarao

.....''We've given the rationale in the policy statement. This is a mid-quarter policy, therefore there is no dissemination at that level, we stand by that,'......

Read | Business Standard

RBI moots tax proposals to incentivize returns from investments made abroad

To attract more inflows to Indian companies from their investment in overseas join ventures and wholly-owned subsidiaries overseas, the Reserve Bank of India has proposed a host of measures including exempting dividend from tax and providing tax credit for underlying corporate tax paid by them in the host country. The proposals assume importance since these returns form part of current account balance, which has become a major source of worry for the government......

Read | Business Standard

Conmen sending bogus RBI mail to dupe people

............"This is ludicrous. Why would the British government pay me 5 lakh pounds when I have not made any claim. The bogus mail asks you not to disclose this fact to anybody until the amount is deposited in your bank account. Why should RBI ask the beneficiary to maintain secrecy."............

Nilekani gives RBI, bankers presentation

The Unique Identification Authority of India (UIDAI) chief, Nandan Nilekani today made a presentation before the RBI brass and bankers on the initiatives being taken under Aadhaar project and the way forward for its integration with the banking system...............

Read - Business Line

A Common Keeper of Bank Accounts

........the government wants to step up efforts to open a bank account for every beneficiary and to seed every account with Aadhaar. It has persuaded the RBI to allow banks to recognise Aadhaar as sufficient know-your-customer (KYC) data. This is welcome, as it would make it easy to open bank accounts. But more needs to be done.............

A year of RBI cuts had little impact on rates

When RBI cut the repo rate, the rate at which it lends to banks, by 300 bps or 3% between 2001 and 2005, the prime lending rates (PLR) dropped by 190 bps or 1.9%. The deposit rates then fell by 438 bps (4.38%) while the overnight rates, the rate at which banks lend to each other, declined 309 bps (3.09%). ..........

PSU banks get more tech-friendly

... Consumer banking is not the only area where public sector banks are seen embracing the technology. These banks have also implemented system-based recognition of nonperforming assets since the beginning of FY2011-2012. As this system completes two years successfully, experts and analysts would get stronger and clearer details about the quality of assets of these banks. This has also enabled banks to resort to robust risk management practices, which help them avoid any untoward eventuality.

A banking scandal highlights the problem of black money in India

.........Gauging the scale of the problem is hard. A 2010 World Bank study of 151 countries concluded that India’s shadow economy, defined as legal activity concealed from the authorities, was equivalent to a fifth of official GDP (confusing matters, it is unclear to what extent India’s official GDP already captures the black economy).............

Read - The Economist

Losses likely to mount in Bengal bank fraud

...........The modus operandi is so unusual that both the banks and the affected government undertakings are claiming to be victims of the fraud. But the money that has been siphoned off can’t be traced although the accounts through which the money disappeared are being said to be fully compliant with Reserve Bank of India’s know-your-customer, or KYC, norms............

Cardholder: 'Guilty' until proved 'innocent' in case of misuse

............According to the Annual Report on the Banking Ombudsman Scheme for 2011-12, card-related complaints at 21 per cent of total complaints received, constituted the single largest ground of complaints received. Credit card-related complaints were over 5,000. While the bifurcation of complaints is not available, skimming of cards was one of the complaints, the report said. Faced with the rising number of credit card frauds happening overseas, the Reserve Bank of India has issued a directive to banks to replace all magnetic strip credit cards with EMV chip + PIN cards. In the first phase, all customers who have used their cards internationally at least once should have their cards replaced by June 30, 2013. But it is in your own interest to get your old card replaced, even if you have not used it overseas, yet.......

Read | Business Standard

5 things you need in a secure credit card

............ “Like you choose your toothpaste or your shampoo, you should also choose your credit card. People just buy a credit card become his/her bank is selling it. You should exercise your right to choose a financial product,”.........

Budgeting for credit policy

The finance ministry and the Reserve Bank of India have long had a tussle over independence of decision-making for the latter, so the former may have been delighted with a public relations (PR) executive's inability to distinguish.....

Read | Business Standard

Gujarat banks see record increase in NRI deposits

For the first time in six years, pockets of banks in Gujarat bulged with non-resident Indians (NRI) deposits in 2012. Reason may be either removal of interest rate cap by RBI or the depreciating currency or both, but with Rs 5,734 crore more, deposits increased by 22% with the banks during this period. ........

Progress of banks reviewed in DLRC meeting

.....LDO, RBI emphasised upon the achievement on the CD ratio of 40 per cent in the district by March 2013, which currently stands at 35.25 per cent. He said the bankers to come forward in lending in key areas, so as to achieve CD ratio. He also emphasised on the financial inclusion of all unbanked villages in the district, to be taken on priority. DDM, NABARD discussed KCC, SHGs, Farmers Clubs, financial inclusion, among other issues.

He also informed about the initiatives taken by NABARD in the last few months viz. SHG’s training programmes, bankers training programme, farmers club programme etc. in Kathua District......

To facilitate tax payments, banks to work on March 29-31

Banks with branches conducting government business will be open on March 29 (Good Friday), March 30 (Saturday, usually a half day for banks), and March 31 (Sunday) for full day with extended hours to facilitate receipt of Government taxes from members of public........

BoM gives Rs. 2.51cr-drought aid

In view of the severe drought situation in the state, Bank of Maharashtra (BoM) donated Rs2.51 crore to the Chief Minister’s Relief Fund on Thursday. The cheque was handed over to chief minister Prithviraj Chavan by chairman and managing director of the bank, Narendra Singh...........

Thursday, March 21, 2013

Hidden Cash Lures Subbarao to Rural India Worth $24 Billion

“Do you know what my job is?”

.......Following Subbarao’s visit in January, the wheat and sugarcane growers of Lalpur Karauta on the floodplain of the Ghagra river will get a branch of a state lender. The Reserve Bank of India chief takes time out from running the nation’s monetary policy twice a year to explain how the financial system works to some of the 720 million Indians who don’t have a bank account. “It’s good for the poor people, for banks, for the governments and for the economy,” Subbarao said in the village...........

Populism to the fore again

Share markets were expecting the RBI to cut the policy rate by at least 25 basis points in its mid- quarterly review of the monetary policy. The RBI did not disappoint. On Wednesday, Governor D. Subbarao announced the cut. But if the markets were still spooked, it was no fault of the RBI. The DMK pull- out notice to the UPA bosses cancelled out whatever positive impact the minimal cut in the policy rate could have had on the markets. Bad politics, it should be noted, can always override good economics. As it is, the economy was deprived of much positive news. After the attempted fiscal consolidation in the budget, the RBI was not averse to reward the government with a small cut in the prime lending rate............

Doctors to ask RBI to make coins blind-friendly

CHENNAI: At least two ophthalmic associations will petition the finance department and the Reserve Bank of India telling them that the coins of various denominations introduced in the last two years are of the same size and lack distinct features, making them harder to identify for the visually impaired...........

Why inflation needs to come down first

................The RBI explanation is that the relationship between growth and inflation is non-linear: at low levels of inflation and stable inflation expectations, there is a trade-off between growth and inflation — essentially implying that some inflation can be tolerated to stoke the growth engine. But above a certain threshold inflation level, this relationship reverses, the conventional trade-off loses context, and high inflation actually starts eating into growth...........

Inflation is no more rate-bound

...........As policymakers look for options to reverse a widespread deceleration in the broader economy, the UPA government and the Reserve Bank of India (RBI) are perhaps facing their biggest macroeconomic reality: the RBI's bitter medicine to keep interest rates high has not tamed prices, but crimped growth. And the reason may lie in the “new normal” of inflation..........

Read - Hindustan Times

RBI asks bank not to accept post-dated cheques

.......Another issue with the RBI's new directive is at present, there are 81 centres or locations that offers local ECS, while there are just nine centres, which offer RECS across the country. National ECS, on the other hand is operated at Mumbai and facilitates the coverage of all core-banking enabled branches located anywhere in the country. Though our banking system is developing fast, the access to banking today is not available to one-third of our population and ramifications of a hasty decision to penalise usage of cheques will be too catastrophic for a nation like ours, which requires social up-liftment and inclusive banking before forcing technology on our people...........

Read - Moneylife

Close dormant bank accounts, lapsed insurance policies

......There are almost 20 million demat accounts in India. According to experts, around 20-30 per cent of these are dormant. There are a lot of options for someone to cheat a person. There are many who had opened demat accounts when banks offered it for free or for Re 1 and most haven't used these accounts but are maintaining them. To prevent falling prey to such traps, always complete your Know Your Customer (KYC) norms when investing or opening accounts.....

Read | Business Standard

In which the trappers get entrapped

...... It would be a waste of a great opportunity for the banks if they end the story with firing some frontline people and not look at cleansing their incentive systems. It would be a pity if the Reserve Bank of India (RBI) were to continue turning a blind eye to the decay in the bank branching system in India that has turned them into customer traps. The off-the-record view of the top people in RBI has been: this is not our problem. Well, it does look like it is your problem now, RBI...................

WHAT ROLE BANKS CAN PLAY IN CURBING THE GENERATION AND GROWTH OF BLACK MONEY IN THE COUNTRY?

......I will narrate one real incident. In a big city in Maharashtra, one Probationary Officer opened hundreds of accounts during the ‘Road Show’ conducted by the bank. In many of the accounts opened on that occasion, serious compromises were made with regard to KYC and PML guidelines. The management was well aware of the lapse. The major thrust at that time was on opening as many CASA accounts as possible per day, without going into their quality.........

RBI Starts Scrutiny of Three Banks - Will RBI Hush Up Cobrapost Disclosures Too Like It Did for Rs 32,000 crore Derivative Scam ?

...............I still remember the role of RBI in hushing up the Rs 32,000 crore derivative scam where banks were merely fined upto Rs 15 lakhs though country lost thousands of crores of rupees. I understand that scam in Derivatives is still pending in Court, neither any bank or the regulator is ready to bring and publish a comprehensive details of that scam. Thus, I am afraid that this case too may meet the similar fate. However, one fact has given me some hope i.e. the deadline of 31st March, 2013. Usually, in such cases, politicians buy three to four months time (later on time is extended) so that evidence can be destroyed by the respective organisations and public memory fades away. I will like to give full marks to RBI Governor for fixing a short deadline for investigation this time............

Read...........

Banks may need separate arms for insurance

.....“The insurance industry has asked for clarity on permitting banks to act as insurance brokers. The regulator will allow banks to act as insurance brokers, but they will have to form separate subsidiaries for it,” said a senior Irda official. Also, banks will cease to be agents and not be able to sell insurance products directly if they choose to be brokers.

The proposal of forming subsidiary for broking operations has been mooted by an Irda sub-committee which includes officials from Indian Banks Association and representatives from life and general insurance industries. The committee is also looking into other operational difficulties in the model.....

India’s Economic Challenge

........India has again moved to try and shore up economic growth despite persistent inflation. After this latest shift, however, there is less room for additional measures, and investors know it............

Read...........

Standing up

..... What might disappoint captains of the commerce industry is the possibility that there can be at best one more policy rate cut, followed by a long pause. It is hard to see what else the central bank could have done. The RBI governor is to be admired for standing up to immense pressure to take stronger action, and for being guided by the courage of his convictions.........

Read - The Telegraph

Futility of a rate cut

.......The current politico-economic environment is preventing banks from lending money to corporate, which it believes is a riskier business. Banks rather prefer to deploy their cash in government bond. Till this dichotomy is not changed, RBI reducing rates is unlikely to help both the markets and the economy.

Read | Business Standard

Realty players seek more rate cuts from RBI to boost sector

............. Confederation of Real Estate Developers Associations of India (CREDAI) termed RBI's repo rate reduction by "just" 25 basis points as a "missed opportunity" and urged it to ease funding options in realty sector..............

Read - Business Today

Limited headroom

.....The budget had stressed fiscal consolidation, which the RBI has been asking for, as an essential complement to the anti-inflation stance of its monetary policy. So irrespective of whether the revised fiscal road map — which among other signposts calls for the ratio of gross fiscal deficit to GDP to decline to 4.8 per cent in 2013-14 — can in fact be reached, the RBI was forced to act. However, even without the government’s prompts, the RBI has not ignored growth concerns. Recent policy statements have, in fact, shifted the RBI’s focus away from inflation towards growth. As so often in the past, the mid-quarter review explains why monetary policy has to balance the conflicting claims of growth and inflation.......

Read - The Hindu

Faulty transmission

.....With a broken credit channel, it's harder to revive GDP growth, which was just 4.5 per cent in the December quarter. Until the banks are working properly, rate cuts from the RBI seem like throwing good money after bad.......

Read | Business Standard

Karunanidhi tsunami washes away RBI's 25 bps rate cut announcement

Not even in his wildest dreams would the Reserve Bank of India Governor Duvvuri Subbarao have thought that the Karunanidhi tsunami would wash away in minutes his carefully crafted plan to revive the economy from the depths. There was hardly any time for investors and traders to enjoy the feel good factor, the only possible outcome of the 25 basis points reduction in key interest rate. The punchbowl was snatched away even before the party began.......

Tata Housing's reaction on RBI Monetary Policy

.....“We welcome RBI’s decision of a second successive cut in monetary policy rates this year. Banks and NBFCs took cue from the central bank last time around and immediately lowered their lending, and even deposit rates. Although, lenders might not take further cue this time, the thing to consider is that the rate cut, coupled with the proposed additional INR 1 lakh tax rebate for first home loan borrowers (up to INR 25 lakhs), is likely to act as a stimulus for the demand for affordable housing in India...........

Restrict foreign access to the Bar

..... They leveraged their position by employing the kin of powerful serving and retired bureaucrats. The Indian Express was more to the point — “The first set of clearances was granted after a delegation of foreign law firms, under the leadership of the son of the Union Minister of Law, met officials of the RBI.” An NGO called ‘Lawyers Collective’ filed and succeeded in a public interest litigation (PIL) in the Bombay High Court challenging these permissions......

Read - The Hindu

Probe NBFCs' working: Speaker to govt

........The Speaker said there were several cases of NBFCs and credit cooperative societies duping innocent poor people in rural areas. He also felt that some officials of the cooperative department too connived with the NBFCs and cooperative societies and wanted them to be exposed..............

Banks mop up Rs 1 lakh crore in deposits in a fortnight

Scramble to meet year end targets has begun for the banks particularly with deposits. Deposits with the bank grew 13.14% year on year (y-o-y) according to Reserve Bank of India (RBI) data.............

Read | Business Standard

Government sets up Financial Intel Units in Karnataka

..............To keep an eye on black money changing hands and to curb all financial frauds, the state government has set up Financial Intelligence Units (FIU). The units, comprising officials drafted from the Police Department, will work in all the police commissionerates and districts with an exclusive mandate to probe financial frauds and irregularities involving more than Rs. 1 crore in nationalised and private banks. “It will also act as a nodal agency with the Reserve Bank of India (RBI), besides investigating cases referred to it by the Enforcement Directorate .............

Our bank is no longer community-based: K B Nagendra Murthy

.....TMB was founded by a particular community and it was run by them; they proved to be the best brains in trading and in enterprise skills. But in the last few years, the bank has been run by professionals, appointed as MD & CEO, and part of the community. Today, 15 per cent of new branches are being opened outside Tamil Nadu, in places like Gujarat, Maharashtra, Andhra Pradesh and others. The bank's top five customers are from outside Tamil Nadu. This shows the bank is not community-based......

Read | Business Standard

Sahara’s full-page ads against SEBI challenged in High Court

.....“The content and intent of these advertisements clearly shows that Sahara India Pariwar and Subrata Roy seem to have little respect for the law of the land and want to create financial anarchy and financial indiscipline by alleging extraneous motives to a statutory body formed for safeguarding the interests of the common investors and for regulating the financial market/securities in the country”.......

Read - Moneylife

Wednesday, March 20, 2013

Current account deficit solution lies with Reserve Bank of India

.......On its part, the Reserve Bank of India is firm on its policy of intervening in the foreign exchange markets only to curb excessive volatility. In fact, the Reserve Bank seems weary of a depreciating rupee fearing that a weaker rupee will worsen the problem of inflation. The view seems to be demand for imported oil, fertilisers and coal being rather inelastic, no useful purpose will be served by a weaker rupee. There is enough room to disagree with the view............

Read | Business Standard

Inflation Can be Good

...So, is inflation good or bad? Well, it depends on the kind of inflation you are talking about. The first type of inflation, what I call “good inflation”, is when wages fuelled by rising demand and increasing productivity grow faster than the cost of goods and services. This process creates wealth and surplus in the hands of the workers. The most important thing to remember about this kind of inflation is that.........

RBI Review becomes a side-show

....One shudders to think what would have happened had the RBI stood firm and not succumbed to pressure to cut rates. In hindsight, it was good it did succumb; against all economic logic, perhaps and despite the Governor’s avowal less than a week ago at the London School of Economics that ‘Inflation above six per cent would justify, indeed demand, tightening of the monetary policy stance!’ Fortunately, Subbarao made up for playing along with the government.........

RBI’s turn to bat

.... Driven by food or otherwise, that’s the inflation households face. Non-food, manufactured goods inflation, to which RBI responds, essentially reflects stable commodity prices with some reduction in pricing power as demand slows. Not surprising then that RBI reiterated its January guidance of whoesale price inflation persisting in the 6.5-7% in 2013-14. This should be the floor though: if GDP growth picks up as expected and global growth recovers, the interplay of global liquidity with a rebound in demand will result in higher commodity prices feeding back into domestic inflation..............

Banks unlikely to cut lending, deposit rates now

........."The repo rate cut is not enough for banks to reduce lending rates. Further revision in the cash reserve ratio (CRR) was required for interest rate reduction. We will look at revising our rates in next financial year only," Pratip Chaudhuri, chairman of State Bank of India (SBI), said..................

Read | Business Standard

RBI could have given stronger signal to push growth: Montek

New Delhi: Appreciating the RBI's decision to cut key interest rate by 0.25 percent, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Tuesday said it could have given a more robust signal to the industry. "This (rate cut) is a signal and I have to say that it is in the right direction", he said, while addressing an Assocham conference here.......

BANKER’S TRUST REALTIME: RBI lobs the ball in govt’s court

...........One can’t blame the Indian central bank for taking this stance. After all, efficacy of the monetary policy is limited unless the nation follows a tight fiscal regime. RBI’s mandate is price stability, making credit available for productive purposes and financial sector stability while spurring economic growth is part of the government’s domain. The central bank can extend a helping hand, but the government needs to take the initiative........

RBI runs out of room

.................The RBI notes, but does not fully acknowledge, the fact that "core" inflation - inflation in non-food manufactured products - has moderated considerably, and that the sole driver of inflation now is food prices, which are unlikely to be contained by monetary tightness. The RBI has a warning for the government against raising minimum support prices further, but whether the government will heed it is another matter altogether............

Read | Business Standard

Barking up the wrong tree?

.....As an aside, it’s a sign of progress that RBI policy reviews don’t always result in a “splash or “event”—it suggests that the central bank is doing a better job of guiding market expectations that are reflected in market prices in the run-up to these policy reviews—something that Ben Bernanke has perfected through his artful communication strategy. But while the actions did not disappoint, the guidance certainly did—in some quarters at least.......

Relief laced with caution

......Acknowledging that the Centre had made a “firm commitment to fiscal consolidation” in Union Budget 2013-14, the RBI said the key challenge was to reduce the current account deficit (CAD) which is riding at record levels and “well above the sustainable threshold”. It urged the government to adopt measures to improve the competitiveness of exports and wean away demand for “unproductive imports”. The RBI and the Centre have been bickering for over a year on the direction of monetary and fiscal policy and have blamed each other for not doing enough in their domains to prop up a faltering economy.......

Read - The Telegraph

RBI’s different strokes

...........RBI is entitled to its view on whether rate/CRR cuts are warranted by the facts on the ground, but since the first rule of central banking is not to surprise the market, the central bank needs to be consistent in its tone. It can't bring in CPI, CAD and even the output gap as key variables in certain policy statements, omit them in others, and then bring them back again.

RBI flags inflation, CAD hurdles to further cuts

.............."The foremost challenge for returning the economy to a high growth trajectory is to revive investment. A competitive interest rate is necessary for this, but not sufficient," .........

Five global voices on expectations from RBI policy review

......Markets have completed the correction and are now consolidating in want of triggers to move back up. Can RBI surprise by higher than 25bps rate cut? Can government pull out more rabbits from its reforms basket? .......

Repo rate cut not enough, complementary actions needed: C Rangarajan

More than the Reserve Bank of India (RBI)’s action on the rate front, its guidance on limited headroom for monetary easing drew attention. C Rangarajan, the Prime Minister’s Economic Advisory Council chairman and former RBI Governor, says the behaviour of the headline inflation numbers and continuance of the subdued nature of core inflation (non-food manufactured items) will determine the stance. He tells Indivjal Dhasmana that for quality of fiscal consolidation, one of RBI’s main advice, the Centre has to keep revenue deficit under check and aggregate subsidies at the budgeted level. .............

Read | Business Standard

Economic conundrum leaves little luxury for RBI’s Subbarao

...........The Indian economy is in a structural mess, with a growth collapse being accompanied by high inflation and a record current account deficit, which are both signs of excess demand. The previous time India saw such sluggish economic growth, around a decade ago, it had far lower inflation and a current account surplus, which had given RBI under Bimal Jalan far more scope for large interest rate reductions. Subbarao does not have that luxury...........

Subbu to FM: Take 25bps cut, but real mess is at your end

...............Subbarao is telling Chidambaram that the real mess is at your end. How can mere rate cuts help? But, at another level, the monetary policy is a mere sideshow. With politics taking centrestage in the context of the DMK’s proposed exit from the UPA, whatever the RBI does may not matter. Business confidence will not depend on politics, not monetary economics.

May It Please Your Lordship Chidambaram

.....The signal for the broader economy lies more in what the commercial banks are doing, than what the central bank does. Lenders from State Bank of India to ICICI Bank are raising deposit rates. When banks are paying more for funds from you and me, how does it matter if the RBI is going to lend at a lower rate which anyway is based on government bonds that banks buy using our deposits.

RBI Shrugs: Hard Work is Now GoI’s

.........Caught between the devil (slowing growth) and the deep sea (high inflation), the RBI perhaps had no choice but give in to the popular mood. Fortunately, the governor made up for playing along with the government and markets with a hawkish accompanying statement. The statement makes no bones about where the onus lies.......

Banks prefer to play a waiting game

..............“The reduction in repo rates by 25 basis points is a welcome move, and indicates continued focus on growth. At the same time, RBI’s commitment towards maintaining adequate liquidity in the system is important in the context of continued smooth functioning of markets,”........

Read - The Hindu

Monetary threat

...............While the RBI may have acted like a dove by reducing the repo rate by a further 25 basis points to 7.5 per cent, its tone this time is distinctly ‘hawkish’, as revealed in the statement that “the headroom for further monetary easing remains quite limited”. So, what has changed in the last three months?...........

Read - Business Line

RBI rate cut neutralised by political uncertainty, banks put rate related decisions in limbo

CHENNAI: The RBI's decision to opt for a 25 basis point cut in repo rate (the rate at which the apex bank lends to other banks), has been completely overshadowed by the political developments causing banks to put their lending rate decisions in limbo. According to top financiers, the question mark over the stability of the government has ended up neutralizing the RBI's growth pill completely...........

This rate cut looks like an afterthought

.........it is pertinent to note that the most telling comments from the Central Bank are hidden within the six page statement and highlight the urgent need by the government to " revive investment". In a strongly worded statement, the RBI underlines that a " competitive interest rate" is necessary but not sufficient - and that sufficiency would require " bridging supply constraints, staying the course on fiscal consolidation, both in terms of quantity and quality, and improving governance." Clearly, the RBI is highlighting the limitations of the credit channel of monetary policy transmission in the backdrop of persistent food inflation, anchored inflationary expectations and the morass created by the inertia in strategically addressing massive supply side bottlenecks............

RBI continues with contorted guidance

...........Wouldn’t it have been much clearer if RBI finally took credit for delivering its mandate: bring down core inflation to its lowest in three years by lowering growth by design and that it plans to keep it that way until government reforms and policies change India’s investment environment and pave the way for better growth-inflation dynamics.

Reserve Bank of India: Monetary policy review March 2013 - Full statement

In its mid quarter (Jan-March) monetary policy the Reserve Bank of India (RBI) on Tuesday cut the policy or repo rate by 25 basis points to 7.50%. Consequently, the reverse repo came down to 6.50%.

Read......

RBI postpones meet on Surat bank

........According to bank officials, RBI's Mumbai headquarters had assured to place the merger case with Mehsana Urban Cooperative Bank at the meeting scheduled on March 18 in Mumbai. This would have ensured the accounts of 44,000 SNSB customers move to Mehsana Urban Cooperative Bank. However, the meeting had to be postponed as RBI's Executive Director S Karuppasamy has gone on an official tour abroad..........

Awareness programme on financial literacy held

..............Reserve Bank of India Assistant General Manager V. Raveendran led a class on the banking services available for people, and also on the methods to identify fake currencies...........

Read - The Hindu

Corporation Bank plans to reach out to rural pockets

..............“Basing on the guidelines issued by the Reserve Bank of India, we have short-listed the worst affected farmers and small traders and provided them the opportunity of onetime settlement. For farmers, we are ready to provide fresh loans, once the outstanding is cleared,” ..............

Read - The Hindu

Govt infuses Rs 3,004 cr into State Bank of India

.....“We are confident that with this capital infusion, we will meet the capital adequacy requirement prescribed by the Reserve Bank of India,” ....

Read | Business Standard

Improving customer services in Public Sector Banks : Namo Narain Meena

................In order to improve customer service in banks, majority of recommendations of the Damodaran Committee have been implemented by the banks. A Working Group has also been constituted by the Reserve Bank of India to review and update the BO Scheme and also the changes in services and product delivery strategies of banks. Incognito visits by RBI Officers are conducted to bank branches to make independent assessment of the level of customer service provided by the Banks.............

Bahrain bank's branch atAluva eyes NRK diaspora

.........The bank is already operating branches in Mumbai and Hyderabad and is looking to open a fourth one in New Delhi, Bucheery said, adding that the bank's application is with the Reserve Bank of India, pending approval. "We hope to get it soon," he said.........

Assam to amend Assam Protection of Interest of Depositors (in Financial Establishment) Act, 2000

GUWAHATI: Following the advice of regulator, RBI and SEBI, Assam will suitably amend Assam protection of interest of depositors (in Financial Establishment) Act, 2000. The act will be amended and draft is circulated to other departments to suggest necessary changes. The state government intends to table the bill in the ongoing budget session of the assembly........

Money Transfer mail from Shyamala Gopinath transfer manager RBI bank

Some Indian are playing paying bad game with, our indian, such as win EURO million lottery, win car... I have few name , Ragu Guptta, Sunil singh,Shayam enterprise, R.linganam They all are in Dehli , hariyana and UP regions they are provided account number and saying submit money to win lottery prize. Also they send mail from RBI read below...........

Read.........

Banks could face hefty fines if found guilty of money laundering: experts

...........“The officers involved in the act could be tried under PMLA act,” Y P Trivedi, senior Supreme Court lawyer said. “As far as bank is connived, it will not be very easy prove their role as they would put entire blame on officers” he added. However if their role is proved banks would be fined he said. In the cases where money laundering actually may have happened RBI has no power to recover the money and it will have to go through the regular procedure of going to magistrate court for demanding the money, he said..........

Read | Business Standard

Consulting beats finance to the top at IIMs

........."It is true that after the financial slowdown of 2009, the hiring of investment banks took a backseat and consulting as a career option became most sought after. Even though situation improved during the last two years, with RBI's strict regulations regarding the banking industry in India, many multinational banks are shutting shop and slowing down their recruitment,"..............

Banks could face hefty fines if found guilty of money laundering: experts

...........“The officers involved in the act could be tried under PMLA act,” Y P Trivedi, senior Supreme Court lawyer said. “As far as bank is connived, it will not be very easy prove their role as they would put entire blame on officers” he added. However if their role is proved banks would be fined he said. In the cases where money laundering actually may have happened RBI has no power to recover the money and it will have to go through the regular procedure of going to magistrate court for demanding the money, he said..........

Read | Business Standard

No charge for settling credit card dues with cheques, cash

......The Finance Ministry has withdrawn a ‘controversial circular’ that asked all public sector banks to emulate HDFC Bank and charge a processing fee on cash or cheque payments received for credit card dues..........

Read - The Hindu

Bank to pay Rs 88K to man for clearing forged cheque

......."This is not a case of negligence alone but a mischievous act of commission or omission on the part of bank officials, who made the payment against a forged cheque. "The bank cannot escape its liability for such a gross and grave negligence or mischief in causing not only financial loss to complainant but also forcing him at this ripe age to knock the door of this forum for redressal of his grievance," ............

Mallya hits out at SBI chairman

A day after State Bank of India (SBI) Chairman Pratip Chaudhuri told reporters in New Delhi bankers “are blazing all guns and taking all steps” to recover Kingfisher Airlines’ loans, the grounded carrier’s Chairman Vijay Mallya today hit back. “I seriously wonder what motivates bank chairmen to constantly speak to media on loan recovery from Kingfisher Air. What about others?” Mallya tweeted.............

Read | Business Standard

Subscribe to: Posts (Atom)