...... Of course, there is a large gap between the banks and the people with potential to seek financial inclusion. Just because of making villagers to have an access to a bank account inclusion wouldn’t be completed. A micro study on the income and savings of the account holder must be made to stimulate him to deposit savings and to seek small finance from banks to augment his earning capacity in small business ventures...........
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, April 10, 2014
Pension updation and opening of fresh option - RBIOA circular
.....First of all it would be in fitness of things if the facts are placed before you so that an informed decision can be taken by each one of you..............
CEO salaries in public sector banks
........To most observers it would appear that the government is unnecessarily penny pinching when it comes to CEO pay. Their reasoning is that salary hikes are being blocked by the bureaucracy who does not want psu employees to get more than babus of an equivalent rank in the government. Former RBI governor D Subbarao too supported psu chiefs on this issue pointing out that if psu banks had to compete with private sector lenders there should be a level playing field in salaries. So why is there such an inverse wage structure in public sector banks?................
Know Your Bank first
My View on "K(now) Y(our) C(haos)":
KYC has become very handy for banks to Keep YOUR Customers Away. They demand some document which the customer does not have and drive them away from branches. Bank Employees serve themselves. Before going to the bank Know Your Bank first and Know your Compulsions to have an account opened. Employees will ensure that You Are Not a Wanted Customer and they have KYC norms to back their wish. God Save Indian Banks and Financial Inclusion which is never going to be there in the present two or three generations and future generations also as long as Bank employees and authorities do not really have a mind set to view customers as a Business Opportunity. If it is absolutely essential then only go to the Bank. NRI customers are the worst lot as they cannot have regular contacts as the phones are not meant afor any Communication and emails are seldom read and answered.They are lucky in the sense that they do not come in personal Contacts with the employees to incur their displeasure and wrath.
- Dr.T.V.Gopalakrishnan
First thing to do is delink KYC from Money laundering. As former commercial banker I know the moment a branch manager gets a circular combining these two unconnected issues he or she will become rigid in handling a potential customer.Change the nomenclature to make it appeal a simple one. May be it can br christened Client Introduction Form. Allow BM and staff or a customer as eligible introducer .Things are likely to change.
- Santhanam
Postal dept asked to pay Rs 3 lakh for opening joint Public Provident Fund a/c
.....In May 2009, they went to deposit an additional amount into the PPF account but the postal authorities refused to accept it stating that as per the PPF regulations the account cannot be a joint one, they said in the complaint. They were also informed that the account will not carry any interest as it is treated as an invalid account. The authorities also informed them that the balance in the account can be paid only after completion of 15-year period. The Thane District Consumer Redressal Forum, in its order issued last week, took exception to the casual attitude of the postal department in dealing with such operations ...........
Managing NPAs: Cure worse than the Disease
........A former top executive of the RBI who did his Ph.D., on NPA Management has some good suggestion. Sans the statistical models creation of a ‘PRECAUTIONARY MARGIN RESERVE’ (PMR) suggested by him starts with a small levy of 0.10 percent to 0.75 percent on the following mandatory classification of standard advances. ............
Read...........
Read...........
RBI steps in to end 'unfair' scrutiny of PSU bankers
...To overcome this, the RBI proposes to establish a procedure and define what could be mala fide so that it can come under the purview of the vigilance authority. "Every policy is greeted with suspicion and scrutinised for evidence of malfeasance.
ICICI Bank reports deposit of fake currency notes over several years
Country's largest private sector bank ICICI Bank has lodged an FIR in a city police station alleging fake currency notes with a face value Rs 10 crore were deposited in its different branches in the past several years............
Russian bank Vnesheconombank under probe for FEMA violation
..............."We are in discussion with the finance ministry over the issue. The bank's operations have not been suspended," an RBI official said. Under RBI guidelines, the bank can undertake only liaison activities and its role is limited to collecting information about possible market opportunities and providing information about the company and its products to prospective Indian customers. "They cannot earn any income in India," the RBI official said.
Why two licences is all that we could have expected
......Perhaps we need 50 licences, perhaps not, but in any case the above assessment is a patent misreading of ground realities. Banking licences are not a simple regulatory matter decided within the four walls of the Reserve Bank of India (RBI), unlike, say, a circular sent to banks to increase provisions on restructured assets. And RBI knows it acutely. More so the governor, who has had an association with the central government.............
Differentiated Bank Licence Old Wine In New Bottle?
Within two months, three weeks, and five days of the Nachiket Mor panel glorifying IDFC for proving its mettle as a differentiated bank in a shaky Indian banking industry, its chairman Rajiv Lall was told his company has been granted the licence to convert it into a full-fledged commercial bank. Soon after granting the licence to IDFC, and micro-lender Bandhan Financial Services, Reserve Bank of India Governor Raghuram Rajan said the industry is on the cusp of a transformation in the form of differentiated and ‘on-tap’ banking licences. Going by the two signposts of India’s current financial system — Rajan and Mor — the country could soon have, at least theoretically, 10 different types of banks, serving various constituencies — from retail to infrastructure. Does that mean that scores of new banks are a panacea to all the economic ills?.....
Read - ET
Read - ET
Indian Banks won’t be able to Cope with Unexpected Losses, Warns IMF
........In its global Global Financial Stability Report (GFSR) released on Wednesday, the IMF said Indian banks have not set aside enough money from profits to cover bad assets compared with others. “Relative to regional peers, loan loss provisioning appears low in Hungary, India, Indonesia, Malaysia and South Africa, suggesting that any potential credit quality deterioration may need to be absorbed by equity capital,” the report said. While most countries now meet the Basel-III minimum tier-1 capital requirement of 6%, the relative provisioning has created differences in lossabsorbing capacity. .........
UBI wants fetters on lending removed
The United Bank of India (UBI) plans to approach the Reserve Bank of India to allow it to lend more than Rs 10 crore — a cap imposed on it in November by the RBI. According to top officials of the UBI, the bank is expected to make a turnaround after a rigorous recovery drive from January........
Wednesday, April 9, 2014
RBI organizes customer service meet
Regional Director, Reserve Bank of India, Jammu and Kashmir, K K Saraf today exhorted the authorized dealers in J&K to educate their customers about various facilities available to exporters, importers, travelers, businessmen, tourists, etc. without contravening the provisions of the Foreign Exchange Management Act (FEMA), 1999. He was addressing a Customer Service Meeting .........
Read - Greater Kashmir
Read - Greater Kashmir
The RBI gets it right
........As is well known, Mr Subbarao was not exactly popular with the Union finance ministry and the government, which was wide open to the idea of corporate houses getting bank licences. He was widely seen to be stalling the process and retired before the licences could be issued. The new RBI Governor, Raghuram Rajan, went one better..........
Alternate financial mechanism needed for small traders: CAIT
........A CAIT delegation recently met RBI Executive Director Deepali Pant Joshi and submitted a detailed memorandum demanding strengthening of cooperative bank system and non-banking finance companies (NBFCs), which are already primarily catering to the financial needs of small traders, the apex body of the trading community said in a statement. In its memorandum, the CAIT regretted that the core banking sector has failed to provide........
RBI is mature enough
My View on "Raghuram Rajan may face showdown if Narendra Modi ...":
Unlike several other top posts which had become controversial or had seen changes during political transitions in New Delhi, RBI Governor’s position did receive continuity and the incumbents never found it much difficult to adjust with the changes in policy perspectives during such transitions. GOI and Dr Raghuram Rajan were well aware about Elections 2014 when the offer and acceptance of the appointment were made in August 2013. Dr Rajan has also made it clear that he does not expect any problem in adjustiong with a change of guard in New Delhi. The present discussion in the media is perhaps fuelled by certain interests unhappy with the stability in approach to monetary policy and financial sector regulation RBI has been able to infuse despite political pressures. RBI is mature enough to survive such gossips. This observation is being made, despite the fact that the RBI Governor and his deputies do not enjoy any ‘job security’ similar to those enjoyed by those holding similar positions in other statutory bodies or judiciary.
- M G Warrier
Another dynastic legacy
..............As long as banks remain under dominant government ownership, politicians desperate for re-election will be tempted to go down this path, ignoring the long-term damage to the nation. As India looks set to end the dominance of the Nehru-Gandhi dynasty in politics, it is time to end the legacy of government dominance of the banking sector bequeathed to the country by the former prime minister Indira Gandhi. Otherwise, the broken credit transmission mechanism in a country that is still very much dependent...........
Finmin turns down RBI's proposal to divide CMD's post in PSBs
.........Rejecting the RBI's proposal to restructure the board of PSU banks, the Finance Ministry in a communication to RBI Governor Raghuram Rajan said "the board is headed by CMD (but that) does not mean that CMD enjoys absolute power and the board of the bank is subservient to CMD".............
Anil Kumar Yadav obtains first class Masters Degree in Nepali
VITALINFO : come back - welcome back !! - Prakash Bakshi
My View on VITALINFO - The mythical Phoenix
Its once again pleasant mornings after an unscheduled break - and thank you so much for coming back. Having seen many re-locations I can understand the pangs in even getting back to usual 'official' work, but to come back with such a 'totally voluntary service' lifts you far above common bankers that we are. Thanks, and welcome back.
- Prakash Bakshi
Really happy to see you back again. This reflects on your commitment, involvement, love for learning helping others to learn and making the circle of friends bigger and bigger. This revival of life for Vital Information adds more value as if some value lost is regained. Hope the chain will not be broken and you will continue to serve and satisfy yourself and others as well. May God bless you Always and in All Ways. With regards,
- Dr.T.V.Gopalakrishnan
K(now) Y(our) C(haos)
My View on "KYC norms need a relook: RBI chief":
Perhaps many are unaware that the SBI no longer holds the AADHAR in the list of eligible Ids for opening a bank account. They are now asking their prospective clients to get the ration card, telephone bill, electricity bill etc. In fact, a couple of years in a discussion on KYC, I narrated the experience of a retired CGM of RBI with the SBI when he could not find acceptance of the IDs for his wife as a joint account holder! It was scripted in an article in the HBL both by me and the victim - Dr TV Gopalakrishnan. Bank branches have their own views of looking at KYC with due endorsement from their bosses.
- Yerram Raju
When the ex-Governor of RBI himself has faced difficulties in opening a bank account, less said is better about the blind application of the guidelines on KYC norms for opening of bank accounts and carrying out of financial transactions !
- Rajappan Nair
Obituary
I regret to inform the sad demise of Shri Pious Miranda on 5th April 2014 at Andheri, Mumbai. He had retired as Assistant Manager from erstwhile Byculla Office. He was aged 73. He was a very helpful and genial person, and had a smiling face. May his soul rest in peace.
- S.Viswanathan
GS Sandhu - Making a propitious start
............his challenge will be to use this goodwill to sort out the current mess in the banking sector without ruffling too many feathers. His appointment has come at a time when the banking sector is reeling under huge bad loans and the Reserve Bank of India is looking at bringing in more players in the sector by issuing licences on tap. "We will try to put in place improved systems so that there is better corporate governance and non-performing assets are reduced. All other issues that are being discussed will be carried forward. We will see what more we can do to make banks contribute more to the growth of the economy," ........
NABARD's Untenable Step on Primary Agricultural Credit Societies
........It is this stance of NABARD, more than the BC concept, which stands exposed for its legal and constitutional impropriety. RBI/NABARD may enjoy certain privileges over state governments on regulatory matters, especially pertaining to cooperative banks. The rights of the states and the cooperatives, however, cannot be ignored when it comes to issues that affect the basic character of the cooperatives as member-owned bodies. Even the transparency of the process adopted by NABARD is under a cloud as it has not ............
Playing is paying, a career in sports
..........Footballer and RBI employee, Rolfred Coutinho agrees, "Iam glad to be a part of this prestigious institution. It's like killing two birds with one stone as Iam able to follow my dream and at the sametime create a secure future."
KC Land & Fin to meet RBI officials for banking permit
.............As reported in certain sections of media that RBI believes that differentiated banking licence will be more appropriate for some of the private players aspiring to set up banks in the country. Therefore, granting licence to operate on regional level also suits us.......................
Soon, technology that can ‘dissolve’ stolen credit cards
..............The materials are special polymers designed to quickly and completely melt away when a trigger is activated. It’s a fairly new field of study and Montazami said he’s making progress. The research team he’s leading, for example, is developing degradable polymer composite materials that are suitable platforms for electronic components. ...........
Read - FPJ
RBI asks banks to make credit card interest payment easier for users
........This is the first time the regulator has addressed the issue of credit card charges and this follows RBI’s recent instructions on waiver of pre-payment charges on floating-rate consumer loans and removal of penalty for non-maintenance of minimum balance in savings deposit accounts.......
Banks asked to make credit card charges "reasonable"
........."RBI has told us not to levy finance charges on outstanding credit card balances till the next billing date. So far, cardholders had to pay interest on credit card dues at the expiry of the due date. But this will offer them a few more interest free days. We are revising our practice accordingly," ..................
High Court fiat to RBI on Amanath Bank
........Assistant Solicitor General Kalyan Basavaraj in his memo to the Court submitted that the Union department of Finance had communicated that it had no objection for transfer of assets and liabilities of Amanath bank to Canara bank. “It is for the RBI to take action in this regard by following the Banking Regulation Act, 1949,” .............
India needs a competitive banking industry
........What this means is that the question of allowing new entities into the Indian banking market is intimately linked with the larger issue of banking structure. India has traditionally encouraged a range of banking institutions to provide credit to a growing economy even while commercial banks were at the centre of the strategy. Much has changed since then. The old development banks offering project finance have disappeared while...............
IDFC’s Lall says to start banking with branches in India and in Bharat
............As an NBFC (non-banking financial company), we have been allowed to provide only narrow suite of products to these clients. As we become a bank, we will have the opportunity to provide a range of products to our existing clients such as cash management, foreign exchange services etc. So this will diversify our sources of revenue, reduce our dependence on term lending, and as we seek to develop our depository franchise we will necessarily have to engage with retail clients. Financial inclusion will also be a focus area for us...........
Ethnic flavour: SBH to be chief banker to new Telangana state
........State Bank of Hyderabad (SBH), the only bank that owes its origins to the erstwhile Hyderabad State, is all set to become the principal banker to the new State that will combine 10 districts. “We are the lead bank in seven districts of Telangana region and its is logical that we will be main banker and convener to the State Level Bankers’ Committee (SLBC), to be formed immediately after the appointed date of June 2,’’ .................
Bank Unions protest against RBI's decision to give new banking licence
....."It is strange that even though the Standing Committee on Finance consisting of all major political parties has unanimously given its recommendations against the banking licenses at this juncture, the RBI is going ahead in their anxiety to appease the corporates. What our country needs strengthening of public sector Banks and not opening up banking sector to private players whose tract record is also not appreciable," ........
Monday, April 7, 2014
lndian Banking - Reform or Perish : M.G.Warrier
.......Even
when the Reserve Bank of India (RBI) came out with the discussion paper on the issue of new bank licenses, it was known that the idea of setting up some more private sector banks was loaded with compulsions much beyond the governmentfs stated intention to give a greater role for private sector in banking to promote financial inclusion and reduce governmentfs financial commitments for running banks. The role so far played...........
KYC norms need a relook: RBI chief
.........According to media reports, D. Subbarao faced problems opening a bank account in Hyderabad, where he has settled down post-retirement, as he could not provide proof of residence. Ironical as it may sound, it was Dr. Subbarao who made KYC (know-your-customer) norms for opening bank accounts and other financial transactions stringent.................
RBI Firm on Scrapping Pre-payment Penalty
........“The philosophy of not charging prepayment penalty on floating home loan account should be mutatis mutandis applied to other floating retail loan,” said AC Mahajan, chairman of Banking Codes and Standard Board of India. “If a customer is unable to maintain minimum account, banks should migrate such accounts to basic banking accounts, where they phase out value-added services,” said Mahajan.
Read - ET
Minimum balance: Better to maintain than risk high fees
...........So as banks suggest, the charges that you may have to pay for the bank’s services may be more than the penalty and hence it may be useful to still maintain the minimum balance requirement in the account and not become a habitual offender. Not to forget that your saving’s bank account earns you an interest ..................
Thirsty, hungry and sick - Dr.Subir Gokarn
.........On others, most particularly on the agricultural productivity front, even intense efforts at adaptation still leave the continent - and, presumably, the subcontinent - extremely vulnerable, with the risks only increasing over time. Clearly, these are issues that will become increasingly central to the overall economic policy debate.
VITALINFO - The mythical Phoenix
DEAR MANGESH,
It is indeed a great feeling to see and feel that your brainchild VITALINFO has come back. As I did the forecast sometime back that VITALINFO will re-emerge and fly again like the mythical Phoenix, I am doubly happy that you have indeed made it come true. I am sure that thousands of your followers across the country and even in foreign shores are feeling the same joy and happiness. Many kudos to you and I wish that your endeavours will go on achieving many more milestones in days to come.
LONG LIVE VITALINFO !!!!!!!!!!!!!!!!!!!!!
- Prabal Sen, KOLKATA
Comparative Facts About DA in Banks Vs Central Government - A Wake Up Call for UFBU
.............We must also remember that the central government staff enjoy stagnation-free running scale of pay, throughout their career. Bank staff reach their stagnation too early in their life – many of them before they attain 40 years of age. This is a great injustice to the bank staff, considering the fact that as one gains more knowledge, skills and experience as one moves forward in the organisation, his salary does not change and he gets stuck at a position for decades.......
Read.........
DEAP Shock - Obituary
It is with great sorrow that I am informing you that Dr. N.A.Mujumdar, former
Principal Adviser DEAP passed away in the early hours of April 6, 2014.The
family is waiting for his son to come from the US. May his soul rest in
peace.
- Dr.S.S.Tarapore
(forwarded by K.U.B.Rao)
Dr.Mujumdar
served RBI for over three and a half decades and retired as
Principal Adviser in charge of the prestigious Credit Planning Cell, considered
as the RBI's Brains Trust. Dr.Mujumdar was an authority on
Agricultural Economics and was the Editor of the Indian Journal of
Agricultural Economics and the Honorary Professor at the Society for
Development Studies. He was Lecturer in the highly respected School of Economics of the University of Bombay. The I.M.F appointed him as Adviser to
the five Central Banks of Zambia, Mauritius, Belize and Cambodia. He is author of a number of
books including two volumes on Indian Agriculture. His latest book,
released only six months ago, is "India’s New Development Agenda." He had to
his credit a number of seminal articles published in the Economic and Political
Weekly. He had a wide circle of friends, admirers and students.
- P.P.Ramachandran
Raghuram Rajan may face showdown if Narendra Modi comes to power
........Strategists in Modi’s Bharatiya Janata Party (BJP), confident that his jobs-first policy pitch will secure a strong voter mandate, suggest that they would prefer to have one of their own at the helm of the RBI. That sets the stage for a confrontation with Rajan, who since being appointed last September has enjoyed an unusually smooth ride in a country where governments often treat the RBI as a punchbag for their own policy failings....................
Proposal to club wages with basic pay rejected; trade unions to move Election Commission
Trade unions will approach the Election Commission against the government decision to reject the proposal to club allowances with basic pay for PF deductions.............
RBI to issue Rs 5 coins on Acharya Tulsi birth centenary
Reserve Bank will shortly issue Rs 5 coins to commemorate the birth centenary of Acharya Tulsi. "The Government of India has minted the above mentioned coins which the Reserve Bank of India will shortly put into circulation," ...........
Keep it down
..........That is why the Reserve Bank of India's (RBI's) failure to prevent the rupee from appreciating (by buying up enough dollars) in recent weeks has been disconcerting. The RBI governor said the other day that the rupee would be too strong if it climbed to 55 against the dollar - the level that prevailed before the currency slide began a year ago. One wishes he had put the bar lower. More than one ............
Manmohan Singh the ‘reluctant’ politician
Politics was never his cup of tea. But former prime minister late P.V. Narasimha Rao had closely studied Manmohan Singh’s track record as the Reserve Bank of India governor and as the deputy chairperson of the Planning Commission and was convinced that Manmohan was indeed the man he needed to change the form and substance of Indian economy – lock, stock and barrel. In fact, when word first reached Manmohan that the ‘PM’ had included him on his list of cabinet ministers and that he wanted him to be the nation’s next finance minister, he ignored it as some kind of a joke making its rounds in the corridors of South Block..........
Managing or destroying wealth?
...........So, here is what we need to do to prevent consumers being taken for a ride, especially by banks. The regulators need to approve fewer and simpler products. They need to regulate financial advice by banks in all its forms. Finally, banks need to be put under the direct supervision of the RBI. Failing that, the rules that govern banking ombudsmen must be modernised, making them applicable to all "services" sold irrespective of regulatory domain - and there should also be severe penalties attached. Neither customers nor financial services.............
Merchanting needs more RBI realism
...........Instructions to put the names of merchant traders in a caution list where the dues reach five per cent of their annual export earnings is too harsh -- Indian exporters placed in a similar position are not subject to such treatment. RBI seems to treat merchant traders with more suspicion than necessary. A more pertinent issue is that in these matters, .......
Financial Scene: No policy action, but big news
............It is in this context that the RBI gives a kind of assurance that if inflation decelerates as intended, there will not be any need to tighten monetary policy. Explaining the reasons behind holding rates, it says that past rate increases should be allowed to work through the system. The Urjit Patel Committee’s report figures prominently in the statement. Its suggestion to reduce liquidity access to overnight repos while making a corresponding increase in term repos has been accepted. Other recommendations accepted include..............
New licences: Opposition questions timing, ‘RBI hurry’
...........“We have been very clear all through that when the model code of conduct is in force, when General Elections are a month away, then what is the hurry by the RBI to issue new bank licences? It would have made more sense to wait for the new government,” ...............
FinMin not stamping postal bank plan
........"A bank is not set up in a hurry. As far as we are concerned, India Post has been the brainchild of the postal department but we have been doing banking for years. We have some idea on how difficult it is to set up a bank. It's not a passing fancy. A bank needs to have several functions in place such as risk management, credit and treasury," ..............
Private sector lessons
..........Their public sector counterparts, despite long-standing presence in the system, have many new things to learn. Thus, granting new banking licences to more private players in a systematic manner will automatically help public sector banks deliver more efficiently.
RBI Must Speak its Mind on Bank Licences
............Against this reality, what is the game plan of the RBI and the government? Do they have one? What kind of “banks” do we need? Should one rewrite the rule book to foster low-cost financial institutions that interface with the rural and urban poor and design products to suit them? Rajan has assured that in future, RBI would give licences on-tap as well as create differentiated licences. This could give birth to institutions that are not universal banks but serve certain segments. Hopefully, one would find ...............
Read - ET
Raghuram Rajan says rejected bank licence aspirants can apply again
....“We have opened up the possibility that applicants can apply again once we put the licences on tap as well as we create differentiated licences. Some of the applicants may be better off applying for a differentiated license rather than for a full licence,”..........
RBI authorises branches to deal with contraventions
.............The RBI said the above mentioned contraventions can be compounded by all ROs (except Kochi and Panaji) without any limit on the amount of contravention. Kochi and Panaji ROs can compound the above contraventions for amounts below ₹1 lakh.
Friday, April 4, 2014
A policy with clarity of purpose - S.S.Tarapore
.............While the RBI has, understandably, tried to avoid undue interest rate volatility at the financial year-end by providing liberal access to banks under the term repo facility, this has the unintended effect of actually encouraging window-dressing. Window-dressing is a counter-productive activity and while,...........
Government appoints R Gandhi as deputy governor of RBI for 3 years
............Significantly the appointment was notified a day after the central bank gave in- principle approval to two entities to start a bank. RBI had shortlisted three of its executive directors' to succeed Anand Sinha who retired in January this year including R Gandhi, P Vijaya Bhaskar and B Mahapatra...............
Read - ET
VITALINFO on behalf of all its readers extends Heartiest Congratulations and Birthday wishes to Shri R.Gandhi.
Pragmatism Wins the Day
..........In contrast, the average tenure of RBI governors has been less than five years. Manmohan Singh was governor for little over two years. Even so, six months is too brief a period to pass judgement on the performance of RBI governor, Raghuram Rajan. With that caveat in place, I dare say..............
Read - ET
RBI's welcome conservatism
.........Perhaps the RBI has a longer game plan. In its statement, it admitted that its approach was "conservative" and opened up the prospect of more licences being issued over time, particularly within the differentiated licence framework that was proposed last year. This implies that more specialised and bounded institutions with a focus on inclusion are likely to be issued licences soon. But, going beyond licensing issues, the fact is the future of Indian banking, including the goal of ............
Will New DG Live Upto Expectations and Give New Direction to RBI, PS Banks and Their Employees ?
........Although Chakbrabarty had headed two PS Banks, he never realised the pitiable condition of their employees. As and when he got a chance, he showed his outbursts against PS bank officers and blamed them for the rising NPAs and other ills. He also felt strongly that PS bank employees are over-paid and better paid than private sector banks. This has done the biggest damage to the credibility of PS Bank staff, who are still struggling with IBA for wage revision which is already over 17 months overdue. ........
Annual General Meeting of RBI Retired Employees Association Ahmedabad
Dear all
The AGM of RBI Retired Emp. Association was held at RBI Officers' Lounge RBI Main Building Ahmedabad on 30 March 2014. Shri T.G.Nair General Secretary of All India Retd. Emp. Association was also present. While addressing the members shri Nair struck an optimistic note about pension updation. He was confident about sorting out of various conditions put forth by Ministry of Finance through the good office of the governor. He called on the members to be ready to attend another Special General meeting to celebrate pension updation. Post meeting dinner was hosted by RD RBI Shri Sudarshan Sen for which a formal letter of invitation was also sent to all retirees by RBI. About 400 retirees attended the meeting with their spouse. The terrace of Officers' Lounge was jam packed. The Bank also greeted retirees with the gift of a pen and the spouse with a rose flower. It was very good gesture on the part of RD RBI Ahmedabad for which he was thanked by all. After conclusion of the meeting, Shri Sudarshan Sen RD and Shri V.S. Das former ED also joined the gathering. Both of them addressed the gathering. This was followed by a short musical evening in which old Hindi film melodies were rendered by S/Shri Sen, Das, Bhatt, Dhondiyal and a few others. Thanking RD, Shri Nair said that this is a very good beginning by Ahmedabad Office which may be replicated at other centers.
- M.L.Maheshwari
Obituary
Mr. P.V. Subramanian, Retd. RBI, Kolkata passed away on 30.03.2014 at Bangalore. Phone: 080-4953 0572.
Silent on the issue......
My View on "Bankers ask EC to bar defaulters from LS polls":
This request is being made prior to every elections but the Election Commission chose to remain silent on the issue. If the Financial institutions have to be cleaned up, this is very important. It is also important that the Directors who have track record of being defaulters should also be disqualified on the Boards of Banks and FIs, Insurance Companies and NBFCs.
- Yerram Raju
Well done RBI
....The present decision reflects RBI's maturity and the continuous future responsibilities it has, to have a very healthy banking to cater to the needs of equitable development of the economy. Well Done RBI, the only Institution which can be proud of for its integrity and Corruption free practices. The nation also can be really proud of for having such institutions ............
This we call as autonomy!!
My View on "Justice delayed is justice denied..............":
I opted to retire from the SBI when I was a Regional manager in 1994 when my basic was Rs.11550 but pension pegged at not half average pay but at Rs.4250 as applicable then. Now my pension is around Rs.15000 a month including the DA. All the appeals in various courts hang on indefinitely because these are not so important issues for them. For the SBI, the Chairman says the clearance from the Finance Ministry is required and they are sitting tight on this issue for decades. Those who retired between 1993-2000 are very few survivors - in just a couple of thousands and the liability from the pension fund would be minimal compared to the outgo for those who sought voluntary Retirement under a specific scheme and the regular retirees. What should be in the domain of Bank's decision has shifted to Government and this we call as autonomy!!
- Yerram Raju
Herculean task
My View on "RBI will act on data surprises that are durable: R...":
The observation “Banks’ compulsory bond holding now is 23% but they hold close to 29% and up to 24.5% holding, they do not need to trade.” and Dr Rajan’s response which read:
“We will look at both those issues. To the extent that the new government can provide an assurance that the fiscal situation is under control, we can move to bring SLR down, purely as a way of reducing distortions in the system. We can’t bring it down so far that we hit liquidity coverage ratio limits, but we will bring it down to the extent we need, consistently and prudentially. It is good for the economy if there is a credible, sensible fiscal consolidation path the new government lays out.” are loaded with much deeper apprehensions about the fiscal policy management. Both the temptation for banks to park more funds in SLR securities and the likely chaos that may emerge in ensuring ‘buyers’ for government securities if banks unload their holdings are issues to be tackled. Creating a real time market for such securities, which is a pre-requisite even for the Government’s pet project of transfering Public Debt Management from RBI to GOI, will call for confidence building of a much higher level, which for the present looks a herculean task.
- M G Warrier, Thiruvananthapuram
Why RBI’s decision on a Post Bank of India is a slap for Finance Ministry
.......While prior clearance of their parent company was necessary for the private players who had applied for a license, for the postal department, it was the clearance of the government of India, or more specifically, the finance ministry that was mandatory. Without such a clearance, the RBI could have rejected the application, which it didn't do.............
Retain PSU bank talent or face national calamity: RBI Rajan
...........Though Rajan did not confirm whether any market-based remuneration or lateral hiring for PSBs is on the cards, he did say discussions are on with the government on the matter. "We have to ensure that these banks have the capacity to compete and many of them recognize what needs to be done and have started on the path, but we should support them,"
Location, governance gave Bandhan edge over others
.........“I would think geographical location was a key factor. Bandhan is located in East India, most of which is financially excluded. While economic growth in certain eastern states like Bihar has picked up in recent years, there still are a lot of unbanked villages in this part of India. To my mind that could be one of the main reasons,”.............
Many more entities will get banking licence
.......Even if it is two the good thing is that we have made a beginning. Now the thinking at the government and the RBI level is that we should have a system where licences can be given on tap basis............
Read | Business Standard
Read | Business Standard
Housing finance firms approach NHB, say banks poaching customers
.............."We are serious about this issue. We are looking into the extent of the problem, categories in which the loans are being taken over and the impact of it. When this data is available, we will analyse the situation and look for solutions.".............
RBI comes to Kerala’s rescue
The Reserve Bank of India (RBI) has granted some respite to the State government by allowing it to issue bonds worth Rs.1,000 crore that might help it tide over the financial crisis for the present. Finance Department sources told The Hindu here on Thursday that funds mobilised by issuing bonds would have to be expended totally on paying salary and pensions............
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