,,,,,,,,,Many banks have refused to share details of suspected bank accounts in which huge money was being sent from abroad with the police. The banks have asked the cops to contact Reserve Bank of India for assistance. DIG, range, A Satish Ganesh on Wednesday said "correspondence made with RBI in this regard has so far failed to yield any result."..........
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.
Thursday, September 12, 2013
ATMs, card terminals to scan UID biometrics
MUMBAI: All new credit card swipe machines and automated teller machines (ATMs) will be required to have a mechanism for Aadhaar authentication using biometrics. The Reserve Bank of India (RBI) is understood to be preparing such a directive to improve security and promote financial inclusion. The central bank had been debating between the international 'chip and PIN' and Aadhaar-based authentication to provide additional security for card transactions. Although RBI appears to have reconciled to a combination of 'chip and PIN' authentication for existing customers and biometric checks for hitherto unbanked cardholders, the challenge is in the acceptance devices........
Well written book review
Dear Mr. Ramachandran,
Thank you very much for sending me a copy of your Review of 4th Volume of the RBI History (published in the Free Press Journal on August 23, 2013 ). It has come out very well and I appreciate your taking the trouble of sending its copy to me.
With regards,
Bimal Jalan
RBI clarifies foreign banks can open zero balance account
The Reserve Bank of India (RBI) today clarified that foreign banks having branches in India can open zero balance account. The regulator has released a list of frequently asked questions, in which it has said that the Basic Savings Bank Deposit Account (BSBDA) guidelines are applicable to "all scheduled commercial banks in India, including foreign banks having branches in India"...........
A housing slump in India
................Bimal Jalan, a former chief economic adviser to the Indian government who was also the governor of the central bank from 2000 to 2004, said in a telephone interview from New Delhi that the broader Indian economy could escape serious harm even if real estate prices did decline. India has low rates of homeownership, so families are less likely to be worried about falling home prices and cut household spending............
Read..............
Read..............
Economy will stay in L-shaped trajectory, making RBI governor task more challenging: CRISIL
......Crisil believes that the Indian economy will stay in L-shaped trajectory through this financial year, unlike the V-shaped recovery seen after the Lehman crisis in 2008. Ms Kudwa said, "we are right now at the tail of L-shaped trajectory, which will take some more time to get over." Despite all written and said about new RBI governor and expectations from him, CRISIL made it clear that rising inflation become the biggest hurdle and challenge for RBI governor Raghuram Rajan. "due to rising inflation, it would be difficult for RBI to cut interest rates way forward," Kudva said............
Videocon's flip-flop costs it a chance for banking foray
.....After sending its intention to apply for a bank licence, Videocon group subsidiary Value Industries sent a letter to the Reserve Bank of India (RBI) expressing its desire to withdraw the application. “However, thereafter the group sent a letter again withdrawing the withdrawal letter. The RBI considered all the three letters and announced that Videocon is withdrawing from the fray,”........
Basudev Acharya also against Nabard Circular
.....The Communist Parliamentarian and Chairman of committee on agriculture in Lok Sabha Mr Acharya has called for immediate withdrawal of the circular. According to Acharya, the circular undermines the independence of PACS, weakens the institutional agri-credit system, threatens the federal structure of the country and smacks of arbitrariness and blatant refusal to consult with the stakeholders...........
India considers investing $4.3 b in World Bank bonds
............The Cabinet will tomorrow take up the proposal to allow the Reserve Bank of India to invest in bonds floated by the International Bank for Reconstruction and Development (IBRD), a lending arm of the World Bank. “The RBI will subscribe to the bonds of the IBRD...This is an investment proposal, which means they will get a return on it. So it is not equity or a grant,” a top finance ministry official told reporters here..............
Rupee turns tide under Rajan, becomes Asia's best performer
Before and after he took over as the 23rd governor of the Reserve Bank of India, Raghuram Rajan has been tirelessly saying that he doesn’t have a magic wand. But the market seems to be banking precisely on the opposite. The Rajan magic is indeed working, and how. Till a week back, the rupee had lost about 20% against the dollar in the financial year and for many, there was no end in sight as the currency touched record lows almost every other day.............
Offer investment tax credit to ease economic situation: IIM-A study
While the new Reserve Bank of India (RBI) governor Raghuram Rajan effect on rupee is visibly increasing, an IIM Ahmedabad (IIM-A) working paper suggests there is more to be done, especially in terms of increasing liquidity in the market, and improving the regime for private investment...
FIPB to consider Axis Bank, HCL Tech proposals next week
The proposals of Axis Bank and HCL Technologies to raise foreign shareholding limit will be taken up for consideration by the Foreign Investment Promotion Board (FIPB) next week. Axis Bank had approached the FIPB last month soon after the Reserve Bank of India (RBI) said the limit of investments through Global Depository Receipts (GDRs), American Depository Receipts (ADRs), FDI, NRI, FIIs in the bank had breached the overall limit of 49 per cent of its paid-up capital..............
Wednesday, September 11, 2013
RBI’s unanswered questions - A.Seshan
MASSIVE DHARNA BY ALL INDIA BANK PENSIONERS AND RETIREES CONFEDERAION (AIBPARC)
.....The issue of Pension Updation and Family Pension is also a very live issue concerning the RETIREES and more particularly the FUTURE RETIREES and hence AIBPARC is soliciting the support of all serving Employees and Officers organisations..........
Senior citizens seek better treatment at banks
Most banks in the country want to catch their customers young — a desirable objective, given India’s young demographic profile. But in the process of welcoming the young, banks are overlooking the needs of older customers. According to SBI’s annual report of last fiscal (2012-13), of its 286 lakh savings bank accounts, 34.7 lakh were pension accounts.Some bankers, especially at the senior level, are considerate and treat the aged with respect. But they are a vanishing tribe who would be retiring soon..........
Obituary
Dr. P. Laxminarayanan, from Nagpur Office,
passed away on Friday the 6th September, 2013. He was seriously ill and
was admitted in hospital, but was discharged few days before his death. His last rites were performed at Ambazari ghat in Nagpur on the same day. He is survived by his wife. Pray Almighty that his soul may rest in peace. MANY
OF OUR GROUP
MEMBERS might be knowing who worked in Nagpur Office or have met him in
Staff college our friend Dr. P. Laxminarayanan was a powerful personality with large frame and loud voice, once met cannot
forget him. When he spoke entire floor could hear him. Highly qualified
did his PhD in Economics, accepted Grade B promotion but soon opted for
reversion - was regular visiting professor for Nagpur University. He was very active in most of the organizations - we has his own values and views.
-K.S.Iyer
A lonely man
.... Relations between the boss of North Block and the head of the country’s Central bank and apex monetary authority have not always been smooth. But rarely have their differences of opinion been so out in the open. Duvvuri Subbarao was literally hand-picked for the post of finance secretary by Mr Chidambaram. But the two stopped seeing eye-to-eye after the former became governor of the Reserve Bank of India.............
CPI and inflation
In the forthcoming mid-quarter review of policy the Reserve Bank of India (RBI) should announce shifting its focus to consumer price index (CPI) from wholesale price index (WPI). It has already given up the inappropriate use of the concept of "core inflation" derived from WPI. ...........
Exchange risk
........In the proposed swap, the RBI is only subsidising the swap cost which actually is forward premium determined by market forces. The RBI would be earning only nominal return on its dollar funds - thus the effective cost to RBI is higher..........
Easing troubles in the long run
....Monetary policy in these economies will be at the mercy of the policies of central banks in the main centres of global finance. What emerging markets face is not so much the classical ‘trilemma’ posed by the ‘impossible trinity’ but a dilemma: to have an independent monetary policy or free capital flows. They cannot have both..........
A tale of two mistakes
It is a rarest of rare case when Reserve Bank of India (RBI) publicly acknowledges its mistake, even if committed inadvertently. Last Friday, a press statement from the central bank -- on the highly sensitive issue of new bank licences -- said, it has inadvertently left out an applicant's name from the list of companies that has applied for bank licence..................
Lazy banking targeted by Rajan helps lower yields
...The days of lazy banking are going to be over soon, Vishal Narnolia, Mumbai-based analyst at SMC Global Securities Ltd., said in an interview on 5 September. The central bank has made it clear that they will be looking at pushing loans and balance sheets have to be cleaned up. Although there could be pain in the short term, profitability at lenders will go up in the long term........
Thank You Governor, but What Do We Do With Our Police and Politicians?
Letter from a Banker
............As
a banker, what made me extremely pleased is the way you particularly
approached the bad loans issue. The banking industry is crippled because
of spiralling bad loans. I dare to write to you because I believe you
mean business. Sir, you said that promoters do not have a “divine
right” to continue if an enterprise flops and use the banking system to
recapitalise their failed ventures. And how right you are when you said
that we need to deal separately with wilful and genuine defaulters.
Banks act as a proxy to the economy and so when the economy isn’t doing
too well, we are bound to see some rise in NPAs...........
IS #RRR 007?
.........To his credit, the previous Governor D Subbarao, on more than one occasion, admitted that the RBI Governor is an unelected official, and he, therefore, needs to be subjected to accountability before he can make too many noises about autonomy. Rao wanted accountability before a select committee of Parliament; but having been a finance secretary in an earlier avatar, he never made a direct pitch to be treated outside the control of the finance minister. Having worked as a North Block mandarin for 12 months,#RRR, too, has hinted in the inaugural statement his role to serve an elected Government’s policies (the two question marks are mine):..........
In Love with Rajan, Re may Flirt with 60
..............The
local currency had its best four-day rally in four decades after
Reserve Bank of India Governor Raghuram Rajan moved to reverse sentiment
on policymaking, introducing several measures soon after taking over
last Wednesday.........
The ‘Rajan-effect’ on India’s rupee may not last long
.....The “Rajan effect” is not lost on markets. The rupee rallied 2.2% from Friday to 63.84 per dollar yesterday. The currency, which fell to a record 68.845 on August 28, climbed 6% in the past four days, the most since at least 1973, according to Bloomberg data. Stock markets seem very optimistic too. The benchmark Sensex index rallied over 1,700 points in 4 days, 727 yesterday alone, to cross the 20,000 mark. Time to think the former International Monetary Fund chief economist is the miracle man to drive India’s ailing economy out of its worst financial crisis since 1991? Have a closer look at the deeper issues. ..........
RBI asks banks to consider options to meet note, coin demand
........."Banks may explore the possibility of offering these services through business correspondents and consider engaging the services of cash in transit entities for the purpose of distribution of banknotes and coins, thereby addressing the last-mile connectivity issues," .................
HC seeks affidavit on launch of ‘parallel economy’
Acknowledging the PIL filed on the introduction of coupons and due slips instead of currency by several private bus operators, the Calcutta High Court Tuesday directed the Centre, Reserve Bank of India and the state government to file an affidavit within four weeks. India's Smile, a social organisation, has filed a petition alleging that private bus operators had printed coupons and manufactured plastic coins, which they forced the passengers to accept instead of currency notes and coins........
Sebi: Transfers on slow track
............A lot of transfers, which were due to take place in the new financial year, are yet to go through, according to a person familiar with the matter. The bulk of the pending transfers may only take place after there is clarity on the term of U K Sinha, chairman of Sebi, said the person. Sinha's initial three year-term would end in February 2014, around six months from now...........
Panel headed by former Sebi chief submits report
The high-level committee, set up by the Ministry of Corporate Affairs (MCA) last year under the former Securities and Exchange Board of India (Sebi) chairman M Damodaran, has submitted its report on changing India’s regulatory environment for making business environment investment friendly.............
Disclose details of 100 dormant accounts: CIC to postal dept
.........During the hearing Agrawal claimed that the postal department in its reply had said that unclaimed balance of Rs 752.44 crore are lying in 2.49 crore accounts. He claimed postal authorities have taken no steps to return the money to the legitimate claimants. During his arguments, Agrawal said that unclaimed balances are prone to fraud. He claimed Reserve Bank of India has now directed banks to transfer dormant balances to the government of India after a period of 10 years as is being done in case of unpaid dividends which are required to be transferred to the government after three years..........
Women’s bank likely to begin operations on 19 November
......The bank, named Bharatiya Mahila Bank, will begin operations with 6 branches spread across the country. Headquartered in Delhi, it will be scaled up to 39 branches and 127 cash machines and serve more than 33,000 customers at the end of the first year. It aims to become profitable by the fifth year of operations. The bank aims to service women and women-run businesses, support women’s self-help groups and their livelihoods and promote further financial inclusion in a country where only 35% of Indian adults have access to a bank account. Usha Ananthasubramanian, Executive Director at Punjab National Bank, will head the bank, which will predominantly employ women. The bank will initially be staffed by officials seconded from other public-sector banks...........
RBI launches inflation survey
......The RBI has requested other interested individuals not covered by the survey to give their inputs by downloading the survey form from its Web site and then sending it to the central bank by email. The RBI uses the results of this survey as one of the important inputs to the monetary policy.
RBI compliances getting tougher for NBFCs
............There were times when non-banking financial companies (NBFCs) had their own set of privileges over banks. The compliances laid down by Reserve Bank of India (RBI) were far more lenient for NBFCs than those for banks. But gone are those golden days and now even the NBFCs are under RBI’s continuous screening. Having said this, the new compliances for NBFC came from the famous Sahara Case..........
KMSS lambasts nationalised banks
GUWAHATI, Sept 10 – The Krishak Mukti Sangram Samiti (KMSS) today lambasted the nationalised banks for allegedly siphoning off the lion’s share of the money deposited by the people of the NE region to other areas of the country. The Samiti has announced an agitational programme to gherao the local headquarters of the State Bank of India (SBI) here tomorrow in protest against this activity of the nationalised banks........
Criteria for new banks
..The objectives of licensing new private banks haven’t gone beyond the generality of hoping they make banking more ‘inclusive’. But objectives are vastly different from motives — the former are for public consumption while the latter is the hidden reality. To hope all private banks with their profit, or worse, private agendas, to drive ‘inclusive banking’ is a joke. And one’s certain a man of Jalan’s experience knows this only too well. Still, he has a mandate to be fulfilled as best as he can..................
Has mobile payment bug bitten you yet?
........Mobile payments have covered the first few miles in terms of popularity, but still have a long way to go, especially when we look at plans afoot. In his first speech after taking over as Reserve Bank of India (RBI) governor, Raghuram Rajan stated that mobile payments can be a game-changer both for the financial sector as well as for mobile phone companies. In fact, keeping retail customers in mind, he plans to set up a technical committee to examine the feasibility of using encrypted SMS-based funds transfer using an application that can run on any type of handset. If you are not already making your payments through mobile phones, we’ll help you understand the systems...........
RBI penalises Jamia Cooperative Bank Ltd,
......The penalty has been imposed on the bank for violation of (i) Know Your Customer (KYC) and Anti Money Laundering (AML) norms insofar as carrying out sufficient customer identification procedures, ascertaining the identification of natural persons behind entities, carrying out enhanced due diligence and appropriate risk categorisation were concerned; (ii) non-compliance of Income Recognition and Asset Classification (IRAC) norms by transfer of funds from one account to another; (iii) involvement of the directors in day-to-day affairs of the bank; and (iv) diversion of funds from loan accounts through current/savings bank accounts of borrowers to firms in which directors have an interest.............
Urban co-op banks can now lend more for house repair, alterations
...............The new ceiling on such loans will be Rs 2 lakh (Rs 1 lakh earlier) in rural and semi-urban areas and Rs 5 lakh (Rs 2 lakh) in urban areas. Loans granted under the enhanced limits will also be eligible for classification under priority sector, the RBI said in a notification. The exposure limit of UCBs to housing and commercial real estate loans continues at 10 per cent of their total assets.................
The e-friendly face of the tax department
......E-filing of tax return has undoubtedly eased the process by bringing in transparency and visibility. Individuals no longer need to stand in long queues to file their return; in fact, it is now mandatory to file online if the taxable income exceeds Rs 5 lakh. The return forms, with relevant instructions, are available on the official Web site. To make e-filing more user-friendly, the department plans to introduce electronic PIN-based verification from this year. This will help ease the post-filing requirement of sending a hard copy of the acknowledgment ITR-V to the Centralised Processing Centre in Bangalore. The new portal will also provide pre-filled information, such as tax credits, in the form. This will help speed up the refund process...........
RBI relaxes KYC norms for urban cooperative banks to cater to foreign students
............"UCBs may open a non-resident ordinary (NRO) bank account of a foreign student on the basis of his/her passport (with appropriate visa and immigration) which contains proof of identity and address in the home country along with a photograph and a letter offering admission from the educational institution," RBI said in a notification on Tuesday. It further said that within 30 days of opening the said account, the student concerned should submit a valid local address proof, which could be a rent agreement or a letter from his/her educational institution............
HDFC Bank's credit card base shrinks
.........“HDFC Bank’s model for card acquisition is dependent on tele-marketing calls. In recent times, the Telecom Regulatory Authority of India has become extremely vigilant and warned banks not to make unsolicited calls to numbers in the do-not-disturb registry. This has affected the bank’s new card acquisition. Also, attrition numbers are high, as HDFC Bank has a very large base of credit card holders. These factors have contributed towards the month-on-month decline in the bank’s credit card portfolio,” said a senior executive of a large private sector bank...............
Cosmos Bank launches mobile banking
In yet another achievement, the fastest growing Urban Co-op Bank Cosmos launched mobile banking service for its customers on last Saturday at the hands of Shrinivas Patil, Governor of Sikkim. The Chairman, Krishnakumar Goyal, Vice-Chairman, Milind Kale, Managing Director, Vikrant Ponkshe, Jt. Managing Director, Suhas Gokhale, Directors of the Board, Members and Customers of the Bank were present for this function........
Canara Bank to charge Rs 60 a year for SMS alerts
............“We wish to inform that in line with the industry trend, our bank is compelled to charge Rs 15 per quarter per customer with effect from October 1, 2013, for SMS services and those who have opted for SMS alerts,” Canara Bank said in a notification. However, the bank said senior citizens, small savings account holders, basic bank accounts holders, and financial inclusion savings account holders will not be charged any such fee......
Tuesday, September 10, 2013
SBI welcomes RBI Guv Rajan's focus on mobile banking
.....Mobile payments could be a game changer, both in the financial sector as well for mobile phone companies," an SBI research report said after Rajan announced a slew of measures in his maiden address as the head of the central bank. In this address, Rajan had announced the constitution of a technical group to study the feasibility of using an encrypted, SMS-based application for fund transfer, which which can run on any cellular phone handset. Speaking of the advantages of mobile banking, the SBI note said that only 60 percent of the population is covered by banking services today, though more than 75 percent have mobile phones...........
RBI sets target of opening 800 new bank branches in HP by FY15
SUNNI: The RBI has set a target of opening 800 new bank branches in the state by 2014-15 to cover the localities having 2000 or less population, an official said today. Speaking at Bharat Nirman Public Information Campaign General Manager of RBI, Shimla I S Negi said that the RBI had achieved target of financial inclusion after opening bank branches in these having more than 2000 population in year 2012. .........
Gold mine of info - thy name is VITALINFO
Shri Mangesh Tarambale takes the
pain of consolidating all articles and write ups on banking and finance very
meticulously in bringing out VITALINFO and forwards to retirees of RBI and those in
service also. This is a gold mine of information and worthy of preserving. Even
RBI or for that matter any institution will not have this sort of
compendium on information on money banking and Finance.
–
Dr.T.V.Gopalakrishnan
My dear Mangesh,
I feel indeed very happy to read
unhesitating appreciation of your VITALINFO blog, if I may call it so,
social service to RBI fraternity. Certainly you deserve it much more than
what words can express.
Love and best wishes
- P B Kulkarni, Former Executive Director
Dear
Mangesh,
Kindly
include the following names in your mailing list for VITALINFO. In fact Mrs.
Usha Thorat told me to send all names to you for VITALINFO.
Mr.
Hemal B. Khandwala, Research Associate, CAFRAL
Mr.
Vikas Kumar, Research Associate, CAFRAL
Mr.
Srujan Routhu, Research Associate, CAFRAL
Mr.
Sabri Oncu, Head of Research, CAFRAL
Mangesh You are really great. Please continue to
do this great job which helps many in the Bank as also outside. We will meet
you when we come to Pune.
Warm
Regards,
- Vasudevan
Nair, CAFRAL
My salutations to incredible element in you in bringing out VITALINFO.
-Gyaneshwar Pathak, AGM, RBI, Patna
Slow Aadhaar registration hinders direct benefit transfers
.....This came to light at a state-level review meeting of a bank recently. Reserve Bank of India Regional Director Sudarshan Sen also pointed to a "significant lack of financial literacy" not only among the general public but also among a number of business correspondents (BCs) hired by banks to cover unbanked rural areas..............
35 पैसे में बन जाती है फेक करेंसी
.....à¤ारतीय रिजर्व बैंक से अनुपम चौधरी और जेके चौधरी संडे को पुलिस लाइंस में सब इंस्पेक्टर्स को फेक करेंसी और ओरिजिनल करेंसी को पहचानने की ट्रेनिंग दी. साथ ही उन्हें यह à¤ी बताया कि कैसे इसे आसानी से बिना किसी फोरेंसिक लैब की मदद से हम ट्रेस कर सकते हैं. कोई ब्लाइंड पर्सन à¤ी बड़ी आसानी से इंडियन करेंसी को हाथों से टच कर इसे पहचान सकता है..............
SIT-ON-DEMONSTRATION of Bank Employees
.....All other organizations have also submitted their Charter of Demand before the IBA through the UFBU. Meanwhile, though 9 months have passed, no significant progress regarding the bipartite negotiation has yet been witnessed resulting in the bank employees are very much frustrated. Moreover, the counter demands of bank management (Banks’ Charter of Demand) has become a matter of great concern to them.......................
Read...........
If wishes were horses......
My View on "Need Money? Don’t Go to the Bank":
Mobile platforms for payments and settlement solutions in a less literate society as India, are high risk terrains. Cyber crimes involving mobile and credit card payments have scaled up to new highs in all the countries where they are in use. Secondly, we have vey lax legal administration that takes its sweet time to book the culprits and punish them. In a country with just around 3% of net-savvy customers, to expect to migrate to mobile tracks would be a fond hope for the customer and regulatory challenge for the RBI. If wishes were horses......would be the riders.
- Yerram Raju
One-horse race?
......Several candidates are said to be in the fray, but one officer who has recently joined the regulator on deputation is said to be the front runner. Some old Sebi hands who had also applied are miffed. But the front runner is said to be close to powers-that-be.....
Nepal Rastra Bank urges banks not to gamble with US dollar
........An NRB official said they have taken measures to study whether the NDF has been beneficial during current inconsistencies in the exchange rate. As the dollar’s exchange rate is fixed against IC for hedging, the NRB has been sensitive. The RBI has banned banks from engaging in NDF contracts in India. However, bankers said as the money is not delivered and the settlement is also made in US dollars, banning the NDF contract is not logical...........
Professor Rajan’s solutions
.........In these difficult economic circumstances, Rajan taking over as governor of RBI is a big positive for the Indian markets. However, very soon, the ball will again be in the government’s court. Monetary policy will face the same dilemmas as it did until a few weeks ago. Further, the decisions on the financial sector reforms will have to be backed by government action. I am still not sure if New Delhi is ready to match the pace of change with Mumbai.
Rajinikanth Rajan saves the rupee
When Rajinikanth Rajan alighted from his SUV on Mint Road, the first thing he saw was the sagging Reserve Bank of India (RBI) building. As the rupee slumped, the building too had wilted. It now drooped wearily, wearing a defeated look. Rajan walked briskly past the officials lined up to greet him and leaned against the building, whistling a tune from Sivaji: The Boss, his hands in the pockets of his immaculately tailored trousers. And as he pushed gently, the walls straightened and the building stood erect and tall once again. Rajinikanth brushed the dust from his jacket and entered the central bank. On the eighteenth floor, he found Subbarao sitting in a corner, sobbing. “Only God,” he muttered as Rajan came in, “can save the rupee.” “Then I will order him to do so,” said Rajinikanth, picking up the phone...........
The Rupee will Strengthen
.......A
currency will likely depreciate merely because most people agree it
should, potentially triggering a vicious downward spiral. Unlike a
physical commodity, a currency only has value because everyone believes
it does. It is important to view the rupee’s recent moves from
this prism rather than to try to justify it with technical sounding
phrases, such as “unsustainable Current Account Deficit (CAD)”, “high
inflation differentials”, “falling growth differentials” and so on..........
Do Your Bosses Also Believe In What You Say and Will They Allow You to Do What You Profess ?
..........My experience indicates that in case your bosses do not profess in what you believe in, soon either you have to fall in line with them or you will be in the line of continuous firing. Therefore, bosses of Dr RR are likely to resist any attempt by him to dethrone the willful defaulters. We will closely watch how our new Doctor controls the high pressures from political class and steers the economy out of woods. Therefore, Doctor Saheb, be aware of your Bosses and we wish you a Good Luck...............
Safe landing
........ Mr Rajan’s appointment is welcome, but there is an enormous distance between the recommendations of the Rajan committee and the declared intentions of the same Mr Rajan.
RBI query on gold stock in temples evokes Hindu outfits` ire
............While confirming that they have received such a letter from the RBI, top officials of some of the major temples said they were not taking any hasty decision on the matter without consulting the government and authorities concerned. When contacted in Mumbai, the RBI spokesperson Alpana Killawala admitted that they have written to these temples but clarified that "the objective of the letter is to collect data and mentioned that in the RBI statement issued on September 1, there is no proposal under its consideration (to buy gold and bullion from temples)."......
Banks can only sell standard insurance products through branch
......The move is aimed at ensuring that lenders do not sell customised insurance products where risk assessment is more complex. It will also address various concerns of the Reserve Bank, including those pertaining to conflict of interest. RBI does not want banks to undertake new risk in the form of insurance broker...........
Defaulters, not criminals
.....There are obviously lessons to be learnt, and hopefully the committee RBI Governor Rajan has set up will have some guidelines. It is equally true the mammoth delay in government clearances has turned a large number of assets into NPAs—how do you service a power sector loan if the plant has no coal? None of this, needless to say, precludes the chances of genuine fraud. ...........
Banks Expect No Quick Fix for NPA Pain Despite Reserve Bank Warning
.........“Although
RBI governor’s statement on NPA has sent a strong signal to defaulting
borrowers, banks are facing difficulties at the field level in
implementing SARFAESI Act and taking physical possession of mortgaged
properties due to administrative gaps. This needs to be addressed first,
otherwise bad borrowers will continue to use the loopholes and make
mockery of the system,”.............
Your EMIs may not come down anytime soon
Four sets of data over the next few days — industrial output growth for July, monthly retail and wholesale inflation for August and corporate advance tax numbers — would largely determine the Reserve Bank of India’s (RBI) next move on interest rate hikes, but analysts do not expect the new central bank governor Raghuram Rajan to cut lending rates soon. So, don’t expect EMIs on your existing home loans to come down in a hurry.............
National Pension Scheme funds hit by downturn
.........Most NPS investors, including the 30 lakh central and state government employees, who are compulsorily a part of the scheme, are SIP investors and their returns should be calculated accordingly. We looked at the SIP returns of NPS funds in the past year and found that most of them were in the red............
Can you trust your bank to run your ECS on time?
.....The truth is that more often that not, banks do get the ECS part correct. But, banks could make mistake like this, after all it did happen to the customer mentioned above as per RBI data. So, what can you do, to ensure that your ECS runs on time and your bank does not goof-up? ................
Woman seeking alimony, hubby's bank fined for data theft
...........Considering the facts of the case, Agarwal in his order cited Section 43A of the IT Act and the guidelines of Reserve Bank of India which require banks to maintain the confidentiality and privacy of customers. The order states that the bank has failed to protect the private and sensitive data of the customers and also failed to provide any information about the city or the branch from which the statement was generated. The IT secretary further goes on to say that the bank has admitted that it has no mechanism to check the system logs and audit trails of internal bank staff using the system.
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