.............“The Reserve Bank of India is not averse to the Islamic banking or interest-free banking system. If by introducing the system in India, the Muslim community which constitute such a large population in the country is benefited, there is no reason why the system is not introduced in the country”, Bhoria said while addressing the entrepreneurs and bankers who turned in a large number to listen to the first ever high ranking RBI officer visiting Malegaon....................
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.
Monday, March 25, 2013
Counterfeit Indian currency notes surfacing abroad: RBI
A Reserve Bank of India study on counterfeit notes has observed that such notes have also begun to surface abroad, keeping pace with the convertible currencies. The study estimates that seizures of Indian counterfeit currency in the Swiss system for the last ten years have risen fast. From hardly one or two pieces in 2001, the number of notes seized was 1,144 in 2011. The comparable seizure for Swiss francs is 3,702 and of US dollars, 2,228..........
Former professor cheated of 25 lakh; Nigerian national held
............Claiming that his relative had left behind $18 million in his bank account, the accused wrote to the professor that the amount could be transferred in his name on payment of certain charges. Accordingly the professor agreed to appoint a legal attorney, following which the accused directed him to deposit some amount to obtain “anti-terrorist certificate” from the United Nations and a no-objection from the Reserve Bank of India.........
Retirement Planning: Investing for an unpredictable future
.......... You don’t know how long you will live for, what your expenses will be, how inflation will affect expenditure, and much else. With no clue as to how large a reasonable retirement corpus is sufficient, how should one plan for retirement?........
Read - Moneylife
Nationalised banks in Rs 1.55 lakh crore debt trap
..............In a growing trend, several government-owned banks are resorting to settlements and write-offs rather than actual recovery. Canara Bank and Corporation Bank are trying to opt for the settlement and write-off route. Gupta, however, cautions that write-offs are hardly the way out of this precarious situation. “The moment you write-off (bad stock), your PCR (Provision Coverage Ratio) comes down. There is a limit to how much you can write off,”........
SKS Microfinance may raise Rs 3,000 cr next fiscal
Hyderabad: SKS Microfinance, India's only listed micro lender, may raise Rs 3,000 crore during the next fiscal to meet its lending requirements, a senior official of the company said. S Dilli Raj, chief financial officer, SKS said the recent rate cut by the RBI is expected to show its effect on the borrowing rates April onwards......
Don’t tax interest income
........Interest on bank deposits also violates the canon of economy of collection. Both for banks and the Government, a large workforce is engaged in computing these taxes, collecting no-TDS forms, issuing TDS certificates, filing returns, and so on, including a lot of back-office drudgery. This, we believe, must be costing a lot to banks and the government alike, in terms of money, time and manpower............
Cards top customer complaints in banks
Was your account debited even when the ATM failed to dispense cash? Did your banker levy excessive charge on your credit card and refuse to reverse it? Well, you are not alone. The ‘Banking Ombudsman Annual Report’ for 2011-12 released in January shows at least 14,492 bank customers had card-related complaints during this period, 9,350 of which pertained to ATM/debit cards alone..................
J&K Bank convenes DLRC meets in Kashmir
SRINAGAR, Mar 24: To review achievements under District Credit Plan 2012-13, J&K Bank convened a District Level Review Committee (DLRC) meeting of Ganderbal under the Chairmanship of DDC Ganderbal Itrat Hussain Rafiqi. CPO Mukhtar Ahmad Bazaz, AGM RBI Ved Prakash, the Bank’s Cluster Head Ganderbal Abdul Hamid Khan, all district officers and district coordinators of all banks operating in the district attended the meeting.
Lead District Manager Ganderbal briefed the house about the achievements of the banks operating in the district under District Credit Plan (DCP) 2012-13...........
Read - Kashmir Times
Lead District Manager Ganderbal briefed the house about the achievements of the banks operating in the district under District Credit Plan (DCP) 2012-13...........
Read - Kashmir Times
NPCI flags data hurdle to cash transfers
The direct cash transfer scheme may have got off to a start with much fanfare. But lack of standardisation on the part of state governments in storing beneficiary data is making life difficult for banks to collate the same. And there lies the biggest challenge, believes A P Hota Managing Director and CEO of National Payments Corporation of India (NPCI),................
The UPA's misadventures
Apropos the editorial "RBI runs out of room" (March 20), securing growth must no doubt be an overriding concern. But the other side of the picture needs to be given as much importance. Despite our economy being fairly insulated from the global downturn of 2008, the UPA-II - in a burst of neoliberalism - went in for massive welfare schemes under the guise of economic stimulus. The Reserve Bank of India has been firm on the reduction in policy rates being contingent on containing the fiscal deficit. Despite this,............
PSBs, insurers to pay Rs 9,000 cr dividend
Hard-pressed for funds, the government is expected to get over Rs 9,000 crore in dividend from state-owned banks and insurance companies in 2013-14. These institutions are estimated to have contributed Rs 8,377.64 crore dividend to government in the current fiscal. As per the official data, State Bank of India (SBI) would pay the highest dividend at Rs 1,750.12 crore, followed by Life Insurance Corporation of India (LIC) at Rs 1,564.48 crore and Punjab National Bank at Rs 506.52 crore........
PSU bank holding firm plan gets stuck
.................A finance ministry note, based on recommendations made by RBI-appointed Shyamala Gopinath group on setting up a financial holding company, was to be taken up by the cabinet last month. “The note has been prepared. It has now been sent for inter-ministerial consultations,” a finance ministry official told Financial Chronicle. The official was not willing to hazard a guess on the timeframe for completing the consultations to enable the cabinet to take up the issue...................
Achievements of Rajasthan better than other States’: Gehlot
Rajasthan Chief Minister Ashok Gehlot has described the State’s achievements in different sectors during his tenure as “commendable”, saying the Reserve Bank of India, the Planning Commission and the Comptroller & Auditor General had praised them, and announced some more sops for the urban and rural population..................
Westpac, Sumitomo get RBI nod for India ops
Westpac
Banking Corp and Sumitomo Mitsui Banking Corp are the two latest
foreign lenders to get RBI nod for banking operations in India.
Westpac’s Asia operations are headed by Bala Swaminathan, a veteran with
stints at a number of banks in India. It has big plans for Asia and
aims to grow its balance sheet in the region. Sumitomo Mitsui had
earlier picked up a 4.5% stake in Kotak Bank and had entered into an
investment banking tie-up with the private lender. In 2012, China’s
ICBC, National Australia Bank and Korea’s Woori Bank were allowed to set
shop in India. Although RBI has been hinting at mandatory
subsidiarization for multinational banks, foreign lenders are confident
that this will be limited to banks with a wide branch network.
Credit Potential Of Rs 8221 Cr Projected
JAMMU- Minister for Agriculture, G.H. Mir, today said that State Government has initiated people–centric governance model besides took various developmental measures which culminated into peace, economic progress and stability in the State. The Minister was addressing distinguished participants from State Government, representatives from RBI, Banks, Agriculture Universities and NGOs, after inaugurating State credit seminar, organized by National Bank for Agriculture and Rural Development (NABARD) Regional Office Jammu .........
HDFC Bank leads pvt sector in expanding ATM network
The country’s top three private sector banks appear to be outdoing each other in expanding their ATM network. As at January-end 2013, their collective ATM network witnessed an average year-on-year growth of 31 per cent. HDFC Bank led the private sector banks pack in expanding its ATM network.......
Pvt banks branch out, but remain close to cities
ICICI Bank’s Khatwa branch in Rajasthan is not far from Jaipur. Similarly, the village of Mangalya Sadak in Indore, Madhya Pradesh, where HDFC Bank recently opened a branch, is not exactly in a remote area, nor is Federal Bank’s Nilavarapetti branch near Salem. But all of them fit in the Reserve Bank of India’s (RBI) category of being located in ‘unbanked’ regions, which is why private sector banks, who like their public sector peers have financial inclusion targets to fulfill, are setting up branches here...........
Protect credit cards for nominal fee
...Kotak
Mahindra Bank has taken a lead in offering card protection service to
its customers. Shalini Mehta, executive vice president, Kotak Mahindra
Bank, said
card protection service is becoming immensely relevant in the present
times and the bank is looking for new and innovative ways to deliver
value to customers..........
Read - TOI
Cibil examines using phone, power bill payments in credit history
Mumbai: Credit Information Bureau (India) Ltd, or Cibil, the country’s largest collector of databases on borrowers, is in talks with the Reserve Bank of India (RBI) to use people’s payment history on electricity, water and fixed line telephone bills to help banks assess their credit worthiness. The talks are preliminary, Cibil managing director Arun Thukral said, adding that consultations with multiple regulators and the ministry of finance are required before the agency can go ahead with the plan........
Banks Dangle Foreign Offers to Retain Staff
.....The
managements of some of these international banks will in the next few
weeks prepare dossiers hard-selling the advantages of working for a
worldclass institution. Intangibles such as professional work
atmosphere, skill development opportunities, and prospects of working
with some of the best brains in the world now score over money as a
retention tool. There may be a direct need for more than 7,000 skilled
people as Shriram City Union, M&M Financial and Bajaj Finserv, among
others, scramble for about half-a-dozen banking licences likely to be
issued by RBI.....
Read - ET
Now, learn principles of Islamic banking and finance
Islamic banking and finance is fast emerging as a specialised area of finance sector with its presence in over 75 countries and assets under Islamic finance reaching over $1.5 trillion. To address the need the Bombay Stock Exchange (BSE) Institute and Taqwaa Advisory and Shariah Investment Solutions (TASIS), which have conducted workshops in the past, are now jointly launching an online certification course on Islamic Banking, Finance and Capital Market..............
Sahara: Beginning of the endgame?
...........Six years ago, in 2007, when the group was under tremendous pressure from another regulator—the Reserve Bank of India (RBI)—to moderate the growth of Sahara India Financial Corp. Ltd, a so-called residuary non-banking company (RNBC), and was forced to put every penny raised from the public in government bonds, Roy had sought a meeting with then central bank governor Y.V. Reddy for the “benefit” of his “vision and guidance.” (4 April 2007) Reddy politely declined, saying, “I have no personal vision and guidance that could be considered other than what has been articulated in public and also in the series of discussions between us.”.........
Sebi uses robotics to scan Sahara files
Flummoxed by the humongous task of sorting and verifying tonnes of investor papers received from Sahara group, the market regulator Sebi has put them in a huge warehouse having ‘automated robotic system’ document handling and storage vaults..............
Saturday, March 23, 2013
RBI team to visit Malegaon today
The Bank of Maharashtra's lead bank cell in Nashik and the District Industries Centre have jointly called a 'town hall meet' in Malegaon on Saturday, to address the issues facing industrialists - especially those under the micro, small and medium enterprises (MSMEs) category. The meeting, which is part of an initiative of the Reserve Bank of India (RBI) to reach out to different clusters in the country, will be chaired by RBI Regional Director J B Bhoria, P K Das (General Manager, RBI Mumbai), ............
FinMin note to Cabinet on debt office
..........The government is in the process of setting up of a DMO, aimed at separating RBI’s role as the decider of interest rate in the market and at the same time being the banker to the government. In 2011-12 budget, the then Finance Minister Pranab Mukherjee had said that he proposed to introduce the Public Debt Management Agency of India Bill in the next financial year. Earlier, the government had set up a Middle Office in the Finance Ministry on debt management, but had never taken away those responsibilities from the RBI........
Super cop idea spares RBI
..............The proposal for a super regulator for financial services has been hugely contentious with the RBI — the country’s oldest regulator having been established in 1935 — baulking at the idea of losing its independence and having to kowtow to a super boss. The committee appears to have suggested a way out of the impasse by leaving the RBI out of the ambit of the Unified Financial Agency, which will subsume the functions of key agencies such as Sebi, IRDA, PFRDA and the Forward Markets Commission. Banking operations, monetary policy and payment system will continue to be regulated by the RBI............
No more tinkering
.......The Financial Sector Legislative Reforms Commission (FSLRC), which submitted its report to the finance minister on Friday, undertook a very different exercise in drafting law. Instead of whipping up a hurried response to a crisis situation, as has been the dominant style in the UPA's tenure, this was a considered, two-year-long effort at financial sector regulatory reform. The FSLRC takes a rare fresh look at the law. Instead of tinkering with the text of the 60-odd laws that make up the Indian financial system, the commission has written a brand new law, the Indian Financial Code............
Read - IE
Banks not attracting best talent, says RBI governor
Bangalore: The Indian banking industry is not attracting the best talent as bankers are not able to sell banking as a bright and promising career with long-term benefits, Reserve Bank of India (RBI) Governor D. Subba Rao said here Friday. "Today's youths have many careers to choose from and great opportunities to pursue their dreams. Unless we sell banking as an equally bright and promising career with long-term benefits, including remuneration, it will be a challenge to attract the best talent,".........
Cyprus banking crisis is about trust: Subbarao
......the ‘fundamental issue’ in the crisis was the issue of banks safeguarding the interests of depositors, especially small depositors. “When a bank fails to honour its obligation, it loses trust,”.......
Banking sector poised for exciting times: D Subbarao
......I will say that Indian banking is going to be exciting, adventurous and fulfilling. This is because there are five challenges to the Indian banking system – financial inclusion, infrastructure financing, risk management, efficiency improvement and customer service.” ............
Obituary
Shri.N.Rajagopalan passed away. He was 91 years old. He was in RBI for over 35 years and retired as Adviser in the Economic Department. He had assignments in the Central Bank of Zambia. Many of us -- my age group -- had a chance to work with him. He was a soft-spoken officer with a large circle of friends.
Let us pray that his soul rests in peace.
- P.P.Ramachandran
RBI nod for UB Spirits share sale to Diageo
......Appearing for UBHL, senior counsel Uday Holla submitted that the Competition Commission of India and Securities and Exchange Board of India (SEBI) had already given their consent, and with the RBI’s recent approval, the company would be able to get the fund flow from the sale of UB Spirits share.
Indian Entrepreneurs Are Not Sustaining The Country's Growth
Former RBI governor Bimal Jalan has said that it is a paradox that India could not sustain the high growth rate the country experienced in the 2004-09 period, with the same people and the same entrepreneurs, at a talk hosted at New Delhi recently.......
Notification on Basel-III norms soon: Subbarao
.......In his close to an hour-long address on ‘Indian Banking – Looking beyond the crisis’, Subbarao said one concern of Basel-III is that as it requires a higher level of capital; bank credit will be more expensive. “That is a problem for us because our economy is at the stage where requirement for credit will go up. The credit to GDP ratio will go up for several reasons. We are a structurally transforming economy.”...........
RBI tells banks to follow priority sector lending rules strictly
Reserve Bank of India told banks that contingencies liabilities and off-balance sheet items can not be considered as priority sector lending. The central bank said some banks are violating the priority sector lending rules to achieve the annual target. It has now told these banks to declassify the contingent liabilities and off-balance sheet items as priority sector loans with retrospective effect..........
10 postal ATMs in City to encash your PO savings
 |
| The snail mail’s long-awaited techno revolution is just about to begin, right here in Bangalore. The Department of Posts will launch its first automated teller machine (ATM) for the Karnataka Circle at the General Post Office (GPO) here in two months........... |
Does online payment system need more push from RBI by truncating cheques?
....“Various payment methods are like the engine oil of the monetary system. We all know very well what happens to our car when the engine oil is of bad quality or has dried up. Therefore, the message is loud and clear—please do not mess up with these systems. It is giving good results ‘on its own merits’. When we observe that the online payment transactions are growing a robust 30% on year to year basis over the past 10 years, let it continue on its own growth chart on its own strength.”.....
Five Ways to Stimulate Electronic Payments
....Instead of solely contemplating measures to ban cheques for multifarious transactions and levy a charge for permitting their use in the others, I wish RBI and the banking industry in India focused their efforts on finding ways to directly stimulate the use of electronic payments. With that approach, I'm sure that they'd accomplish the desired shift from cheque to electronic payments a lot faster and in a manner that is more agreeable with payers and payees, who are the two most important stakeholders in a payment...........
Off-balance-sheet exposure not part of priority sector lending: RBI
........“We clarify that this is not in conformity with priority sector lending guidelines. Therefore, banks are advised to declassify such accounts with retrospective effect, where a contingent liability/off-balance-sheet item is treated as a part of priority sector target achievement,” ...........
Monetary Transmission: Lenders may not reduce deposit rate
.........A research note by Nomura says that the transmission from policy rates to lending/deposit rates has never been one-to-one. "At a time when transmission is partially clogged, this suggests that lending rates are unlikely to fall much," .........
Read - IE
RBI's baby steps to easing; to cut rates in June by 0.2%: BofA
New Delhi: The Reserve Bank of India is expected to take "baby steps to easing" and is likely to cut key policy rates by 0.25 percent in its mid-June policy review to revive growth, says a Bank of America Merrill Lynch report...............
9,00,00,00,00,000 extra burden on govt due to Basel III
The Reserve Bank of India (RBI) has estimated that the government will have to infuse Rs 70,000 crore to Rs 90,000 crore capital into government-owned banks to comply with the prudential guidelines under Basel III. KC Chakrabarty, Deputy Governor of RBI, said: “The government has an annual budget of Rs 15 lakh crore and recapitalisation of banks to the extent of Rs 20,000 crore a year is not a tall order. It can be done. The only problem arises if there is a big demand for credit in the economy.”............
RBI Governor for corrective steps to prevent money laundering
......“I believe systems largely safe. However, there is a need for some corrective action and based on the findings of the investigation, we will take corrective action” he said on the sidelines of an event here. “I cannot at this time say or make broad, sweeping statement that there are no transactions taking place at all,” he said. Yesterday, the RBI Deputy Governor K C Chakrabarty had downplayed the money laundering allegations and said the country has a “perfect” system to prevent such offences and that not a single such transaction took place in the sting operation......
IRDA probes insurance CEOs after sting
....."In response to the reports of sting operation conducted by Cobrapost.com alleging money laundering, IRDA has immediately taken up the matter with the CEOs of HDFC Life Insurance, ICICI Prudential Life Insurance and Max Life Insurance," ..............
Why is RBI rushing to defend banks exposed by Cobrapost?
..........RBI’s Financial Statement Reports highlight serious concerns over bank branches selling gold coins, mutual fund instruments, and insurance. RBI has undertaken a thematic (whatever this means?) studies of banks that are active in selling gold coins and wealth management products… We cannot take action on allegations. We go by evidence.” Come on Mr deputy governor, what more hard evidence do you want other than the unedited footage of video tapes?............
Chakrabarty Behaves Like Our Politicians - Exonerates ICICI, HDFC and Axis Banks Even Before Investigation Starts
........I think this statement from RBI top brass will go a long way in damaging the cause of cleaning the Indian banking system of its maladies. Corrupt bankers will now be emboldened and honest bankers will be cornered. I feel pity for this sad day in the Indian banking industry and wonder about the silence of Governor of RBI. Will Mr Subbarao make his position clear? Does he too holds similar views ? .....
How RBI has damaged its credibility in Cobra's sting
....... The Reserve Bank of India (RBI), whose job it is to police the banking system, has gone to the other extreme and pronounced the banks "not guilty" even before it gets to know the results of its own probe into the matter. RBI Deputy Governor KC Chakrabarty, not known for verbal discretion at the best of times, said "there is no scam (that) has happened…as no transaction has taken place." The Business Line quotes him as going further and giving the entire system a clean chit: "Let us not unnecessarily downgrade ourself. Our system to prevent money laundering is perfect, absolutely nothing (wrong with it)." It must be perfect, if a cobra's poison fails to damage its health. Chakrabarty’s observations are dangerous for they assume that..........
Banking sector's asset woes to continue in FY14
.......Rate cuts, therefore, will not have any major impact on asset quality issues, as it won't ease pain for the seriously stressed. At present, bad and restructured loans account for a little more than 10 per cent of total system advances, believe analysts. This will impact the earnings of banks over the next 24 months, say experts. Higher provisioning and strict norms on recognition of bad loans will also impact profitability..........
Carriers can now expand fleet without further delay
......Henceforth, only the initial NOC to launch scheduled or non-scheduled air transport services and in-principle approval for acquisition of aircraft would be required from the ministry as part of the requirements under the Aircraft Rules and Reserve Bank of India guidelines, the spokesperson further said.............
Tamils issue: Protesters in TN target US, Lanka over 'weak' resolution
............Advocates affiliated to the Madras High Court Advocates Association (MHAA) and Women Lawyers Association (WLA) took out a protest march at the Reserve Bank of India (RBI) here. They were, however, stopped by the police near the RBI subway on beach road...........
Friday, March 22, 2013
BANKING ON TRUST
Public sector banks in India are a symbol of security and trust. With the support of government, these banks have evoked for generations a sense of assurance among borrowers when they deposit their hard-earned monies. Be it products or new initiatives, public sector banks have been at the forefront. Take for instance, the recent government's decision to announce an 'All Women Bank' in public sector, which was cheered by all and sundry. This new public sector bank is expected to add to the enriching experience of the customers by offering more customised solutions catering to varying needs...........
Read - ET
Read - ET
Srikrishna panel insists on single unified regulator in financial sector
The financial legislative framework is set to change with sweeping changes to be recommended by Justice (retd) BN Srikrishna chaired Financial Sector Legislative Reforms Commission (FSLRC). Despite vehement opposition from various financial regulators, FSLRC proposes a unified regulator for the rest of the financial sector barring the Reserve Bank of India, which will work as the monetary authority, banking and payment sector regulator in the interim.........
........The commission recommends converting Deposit Insurance and Credit Guarantee Corporation into a new body called Resolution Corporation and Securities Appellate Tribunal to be changed to Financial Securities Appellate Tribunal, which will hear appeals against all financial regulatory agencies including RBI. The commission recommends Financial Stability and Development Council (FSDC) to continue as it is. Two new entities have been proposed - Debt Management Office, carved out of RBI and Financial Redressal Agency (FRA)............
FSLRC working group on banking reforms endorses new organisation structure for urban cooperative banks
................The Working Group (WG) set up by Banking Financial Sector Legislative Reforms Commission (FSLRC), has endorsed policy recommendations of the Malegam Committee for creating a new organisation structure for urban cooperative banks (UCBs) to deal with the issue of dual control. The WG headed by Kishori Udeshi, former deputy governor of the Reserve Bank of India said, “any cooperative society accepting deposits exceeding a specified value must fall within the regulator purview of the banking regulator (Reserve Bank of India-RBI).”..............
Will new banks be a gamechanger? - S.S.Tarapore
......The M.B.N.Rao Committee should examine whether the new bank should be yet another public sector bank, albeit with a mandate of being managed by women for women, or should it be an oversight agency to monitor operations of all banks relating to women and whether the new banks should also be a refinancing agency? For instance, the oversight agency could require all banks to convert at least one per cent of their branches in a period of one year to all-women’s branches operated by women exclusively for providing credit to women. This way, about a thousand all-Women’s branches would be set up in a year. It would take a public sector Women’s bank decades to set up a thousand branches.........
6 banks may merge to create two big players
...........Past bank mergers indicate that the two biggest challenges have been technology and human resource management, Bank unions fear there could be cultural issues as well and widespread transfers of employees of smaller and weak banks if they are merged with strong banks. Overlapping branches also could lead to job losses. With RBI having called for applications for setting up new private sector banks, consolidation in the sector is inevitable, particularly among public sector banks, says a government official..............
The movement against the no-cheque proposal
Moneylife Foundation was joined by members of All India Bank Depositors’ Association, Mumbai Grahak Panchayat, All India Bank Employees’ Association and Mumbai Mahanagar Vyapari Seva Parishad in its campaign against the RBI’s foolhardy proposal to disincentivise the issuance and usage of cheques. The participants are in the process of framing points of action against the RBI move as well several other anti-consumer initiatives of banks.................
Read - Moneylife
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
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....... |
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......
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,” .........
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,'......
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......
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...............
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.............
Read - ET
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.
Read - ET
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).............
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.......
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.....
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
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“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...........
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