............Several analysts, including myself, have been crying themselves hoarse about the importance of this reform. Flexible labour contracts are typically associated with faster employment growth. One can cite cross-country evidence in favour of this proposition, but why go that far? In our own context, the much faster growth in employment in the services sector compared with manufacturing is directly attributable to the fact that the former does not have to deal with the same job security mandates as the latter. The ability to................
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Monday, June 16, 2014
Appetite for Profit: The pathway for profit - Yerram Raju
.....Banking basically is about people – whether customers, clients or staff. Money spills through these three categories with systems connecting them. Products are created to take money and give money. Risk perceptions underwent a thorough change with the onset of recession in 2008 and its shadow is still hanging. While Banks in India and emerging economies in general have embraced the precautions set against the west-led recession in the financial sector, they did not indulge in the luxuries that enveloped those developed nations. The known unknowns – credit risk, and the unknown unknowns – market risk, are on the increase despite ............
Local address proof no longer a hurdle for unbanked Indians
..............RBI’s waiver has removed a big hurdle in the path to opening a bank account for a large section of population that can be characterized as carrying out “low value, low risk” transactions—a category of individuals who would previously have been excluded due to KYC or AML compliance requirements placed on banks. In conjunction with a national unique identity repository, it will become possible to authenticate transactions on a real-time basis, thereby obviating the need for knowing the current location of a customer. Some would argue that..........................
Stalemate in Negotiations - Great Strategy of UFBU for Delaying Tactics
......Frankly speaking IBA has not given commitment on any of issues relating to 100% DA for all pensioners and improvement in family pension; and appointments on compassionate grounds. However, as per UFBU version IBA is favourably inclined to consider demand of extending 100% DA for all pensioners. IBA also seems to have shown positive response to improvement in Family Pension. However, UFBU still needs to do lot of work as IBA has not committed anything and only shown positive response. Thus,.........
Rajan serious about his job
My View on "Why Raghuram Rajan matters":
In my article on future of RBI Governor Dr Raghuram Rajan post-May 16, 2014 posted at moneylife.in during March 2014 I had observed:
“It has to be said to the credit of Government of India (GOI) that, even if it was in self-interest, generally, compared to other statutory bodies and public sector units (PSUs) the RBI has been getting a fair deal in selection and timely appointment of its head and his deputies. The appointment process in July-August 2013 was more transparent and at that time, all had accepted that among the candidates considered, the most meritorious had been selected.” to support my comment that to re-emphasize that “…the present RBI Governor has taken his present job seriously and any talk about de-stabilizing his position post-16th May can do harm to Indian economy, but may not have much impact on his pursuit of the objectives he cherish.”
- M.G.Warrier
Midnight toil?
Former RBI Deputy Governor KC Chakrabarty is always in demand because he speaks his mind. At the launch of a book on the Sahara group, he was in his elements. He said a couple of things in the book came to him as a revelation. For instance, he went on, “There are references to some people working till midnight at the RBI. I never knew about this!
HBL
Mundra likely to be next RBI Deputy Governor
After throwing his weight behind Dalbir Singh Suhag as the next army chief, Finance Minister Arun Jaitley has endorsed another choice of the previous United Progressive Alliance (UPA) government, by approving the name of Bank of Baroda chairman S S Mundra as a next deputy governor of the Reserve Bank of India (RBI)..................
Rana Kapoor set to be re-appointed as MD & CEO of YES Bank
YES Bank’s shareholders, at their annual general meeting on Saturday, approved the official resolution on re-appointment of Rana Kapoor as managing director and chief executive officer, along with other directors, sources told Business Standard. The voting results were concluded on Sunday and will be sent to the exchanges on Monday morning. YES Bank could not be reached for comment.............
SBI to organise banking and economics conclave on Jun 17
Country's largest lender State Bank of India is organising a national level banking conclave for the first time by bringing together Reserve Bank of India and stakeholders to a common platform in order to discuss state of the economy and the banking sector. 'The Banking and Economics Conclave 2014' will be inaugurated by Reserve Bank Governor Raghuram Rajan in the country's financial capital here on Tuesday..........
Growth and inflation
.............Against this backdrop, the government's prioritisation of its fight against inflation is an extremely important development. It has to move quickly from intent to action on a variety of reforms, from procurement policy to subsidies and to investment in rural infrastructure. Many of these will generate benefits only over the medium term. So those expecting a growth stimulus from the Reserve Bank of India any time soon are bound to be in for a disappointment. Even so, room for optimism should come from the fact that ........
Raining on animal spirits
.................The new government may well be wondering if luck will run in its favour as it tries to revive the animal spirits in an economy, which has been in stagflationary mode for over two years. The monsoon is playing hide-and-seek and the latest El Nino-related news is not good. Rainfall predictions were cut last week - the monsoon will be below normal, given a 70 per cent probability of El Nino patterns. A poor monsoon would lead to inflationary pressures on the food front. Since food has a huge weight (about 48 per cent) in the consumer price index (CPI), it would push retail inflation up. That would mean the Reserve Bank of India (RBI) refusing to cut policy rates...............
To take credit, MLA comes up with misleading advertisements
......Lured by the advertisement, some depositors and farmers rushed to the bank to get their money back, only to return empty-handed.their invested and deposit amount, when the bank administration refused about such fund saying that the amount is not received yet. While after getting this fund bank can get permission for banking, which is banned by RBI since..............
PMO seeks NPA details of Govt banks
.............. “NPAs formed one of the key talking points in the meeting of the prime minister with the secretaries of various ministries he held earlier this month. The two things that the PMO has desired to know are action taken in the last five years on the bad debt front and the reason for the bulge.” Economic affairs secretary Arvind Mayaram has been asked to revert with details. According to senior finance ministry officials top on the agenda was a quick recapitalisation drive and granting of functional freedom to bank chairmen.............
The best deposits for senior citizens
With the interest rate cycle set to turn sooner rather than later, this is an opportune time to invest in bank deposits that offer good rates. Such deposits also suit the investment needs of senior citizens well, considering that safety is their top priority. Rates for investors above 60 years of age are 30-50 basis points higher than the regular rates, giving seniors an added incentive to park their money in FDs. For many banks, differential rates apply .........
IDFC Bank to be operational by October next year
Infrastructure finance company IDFC, which recently bagged a commercial banking licence, plans to start bank operations by October next year. "It (IDFC Bank) should be operational by October 2015," IDFC Chairman Rajiv Lall told.....
Good times ahead for banking?
....If one takes a close look at the data on bad assets, one is not convinced as yet that the good days are here but it seems that the worst is behind us. Collectively, the gross bad assets of 40 listed Indian banks have grown about 51% in 2013-14 that ended in March—from Rs.1.6 trillion to Rs.2.42 trillion—but in the last quarter, their bad assets actually dropped by 0.61%. Similarly, the net bad assets of these banks, after setting.......
SBI to Hire 7,200 People, Increase Reliance on Tech
............“I am trying to get a lot of technology to help my people so that they spend less of their time on activities that don't really need a lot of thinking and knowledge. For routine stuff such as cash-counting, we are bringing more and more machines,“ said SBI chairman Arundhati Bhattacharya, adding that SBI should be able to manage with the number of people it planned to hire during 2014-15...............
Need To Fix India's Banking Sector Woes To Revive Economy - Analysis
.....The Indian banking sector is dominated by PSBs, which account for 73 per cent of the market share. The banks are constrained by excessive regulation and are forced to increase their exposure to credit constrained sectors. For instance, priority sector lending norms is one of the many stipulations imposed on PSBs by the RBI that erode their competitiveness. On an average, these priority sector loans have been responsible for a relatively higher share of the NPAs among the PSBs over the last ten years. Moreover, these banks have been found to have...........
CII action plan for reviving non-banking finance sector
......."The non-banking financial company (NBFC) sector needs to be integrated to the core of Indian financial system with adequate policy support to help meet the financing needs of the economy and achieve financial inclusion," CII director general Chandrajit Banerjee said...........
Now’s the time to prepay your loan
In April, the Reserve Bank of India directed banks not to charge customers for pre-closing term loans taken on a ‘floating rate’ basis. Until this order, banks charged a foreclosure penalty of 3-4 per cent of the outstanding loan amount. Now, you might be looking for that catch in the fine print or you may simply be wary of switching your loan to a cheaper lender. Read on to clear some of those lingering doubts.........
Indian Currency – Paper to Polymer
...........According to National Investigation Agency (NIA), it will a very challenging task for RBI to remove or stop the circulation of fake notes. Due to such problems, the economy of the country can face danger. Counterfeit notes adds onto the banknotes which are already printed by the government. With faster printing of money than the growth of real output, the value of money will be reduced which causes inflation. Moreover, governments prefers to print money when they are unable to finance the borrowings they have. Counterfeiting leads to introduction of more fake notes in the system. This effect of inflation thus leads to hyperinflation of the economy which ..............
E-eye helps South Indian Bank foil yet another ATM loot bid
.....This is the latest in the series of events in which the Thrissur-based bank has foiled attempted burglary at its ATMs through effective e-surveillance.......
Talking ATMs
.....The cards to be used at these ATMs are the same as those issued by banks currently. The machines, however, are different. Talking ATMs are designed according to “access to all” standards, which means that the keypads of the ATM should be at a height that’s easily accessible by someone who is wheelchair-bound, there should be ramps, provision for a headphone, voice guidance technology should be enabled and available in multiple languages, and there should be Braille stickers for visually challenged users..........
18 banks fail to meet ATM setting target
.............As part of the target, a total of 34,668 onsite ATMs were to be installed by PSU banks during the last fiscal. However, they could set up only 25,331 such machines by March 2014, thus falling short by 9,337, as per Finance Ministry data. Installation of ATMs, especially by public sector lenders, has been a major priority for the government's efforts to ensure financial inclusion in the country...........
Are additional charges justified?
As per point 4 of the RBI notification dated September 25th, 2013, it is unjustifiable on the merchant’s part to charge customers for buying goods and services as it is not permissible as per the agreement between the merchant and the bank which issued the POS (Point of sale) terminal or card swipe machine to the merchant. Such practices call for the banks to terminate their relationship with such merchants...............
E-filing woes
...........We are in the middle of June and the filing deadline is July 31 but most of the e-filing forms are yet to be notified. The Budget was passed for the assessment year 2014-15 as early as March 2013. Why does it take such a long time to upload the e-forms on the income tax website?..............
Sunday, June 15, 2014
Why Raghuram Rajan matters
'RBI to soon announce rules for on-tap banking licenses'
...."The RBI will soon come out with policy guidelines in differentiated banking licenses within a short period of time", Gandhi told reporters on the sidelines of ICC Banking Summit here today. Gandhi said that there was need for more variety of banks in the country. "We intend to give licenses to set up niche banks in the country. These licenses will be given on tap", he said......
Narendra Modi vows action on One-rank One-pension
......."My government is committed to One-rank One-pension," said Modi on board INS Vikramaditya. "There were many promises on One-rank One-pension, but no action was taken,"..............
Shaktikanta Das replaces Takru as revenue secretary
......Though rumours were rife that the Narendra Modi-led administration might replace Takru- appointed as revenue secretary in April by the outgoing United Progressive Alliance (UPA) government- the order of his transfer barely three weeks before the presentation of the Budget has come as a surprise.....
Shikha Sharma | The liberal banker
......“It’s always difficult when you take over a healthy, well-run franchise as you can end up spoiling it. While you are setting up a new venture you can do things the way you want, but here you have to build on the existing strength, which is what I have been doing,”....................
Bharatiya Mahila Bank aims Rs 1,800 crore of business in FY15
............... while the bank will mobilise deposits from all genders, it will prefer to lend mostly to women. The lender will also offer interest rate discounts on loans offered to women. The bank will focus on providing finance to retail, SME and mid-corporate sectors, but will also offer credit to large corporates through consortium lending............
Hunt For Capital
.........However HN Sinor, a veteran banker who served on numerous RBI committees and headed the Indian Banks Association, says the ultimate aim should be for government to divest its stake substantially from the stateowned banks. "My personal opinion is that the government cannot keep pumping in cash into these banks year after year," he said. "They have to take the decision to reduce the stake below 51%. Any other measure will be temporary." ...........
IIM-I students chart way out of rupee crisis
INDORE: At a time when the country has suffered devaluation of rupee against dollar, inflation and fuel price volatility in exchange market, two students of Fellow Programme in Management (FPM) at Indian Institute of Management, Indore (IIM-I) have rekindled hopes to address the problems through introduction of 'Bit Coin' currency system. ......
Woman hires goons, kills stepbrother on the advice of a tantric
The Wada police have arrested a 45-year-old woman for allegedly hiring and killing her stepbrother over a superstition to gain prosperity in life after her husband, a Reserve Bank of India (RBI) employee and her son died. She visited a female tantric for treatment of her illness and cops suspect that the tantric's advice to kill the brother took a toll on the woman's mind..............
Commuters at the Receiving End
KOCHI: Commuters in Kochi are going through tough times. Even as the problems created by the pipe burst at the Kochi Metro Rail construction site, near RBI at Ernakulam North, enters the fourth day, the restoration work going at the site is causing further woes to commuters and pedestrians alike.............
Govt looking to hike I-T exemption limit to ₹5 lakh
..............Indications are that the exemption limit will be raised to ₹5 lakh from the current ₹2 lakh; meaning, people earning ₹5 lakh or less annually will not have to pay tax. Currently, tax is levied at the rate of 10 per cent on income of ₹2-5 lakh, 20 per cent on income of ₹5-10 lakh and 30 per cent on income above ₹10 lakh ............
Obituary
Smt D.Sukumaran Nair (63) died in the early hours of 13th June in KIMS Hospital. She was in DOBD and staying in Gokuldham Quarters.
Landline 0471 2720202
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- P.P.Ramachandran
Silver lining
My View on "Wait and watch till August - Dr.S.S.Tarapore":
The timing of Elections, 2014 did cause some dislocation in work relating to Budget, 2014-15 in Delhi and finalisation of Monetary Policy for the current year in RBI. While Reserve Bank of India could factor in the uncertainties and move forward with policy formulation, at ministerial level, things will stabilise only after Finance Minister finalises his maiden budget. As results of any policy measure by the central bank will be dependent on the supportive policy initiatives from the central government, RBI Governor cannot be blamed for the ‘wait and watch’ approach he has opted for the time being. Still, to the extent possible, RBI has made clear its expectations and has not stopped from doing what the Bank considered best in the given circumstances. In the context of the new government’s commitment to honour election promises, many of which will have an impact on resources availability and prices, RBI’s expectation about level of inflation at 8 per cent by January 2015 and at 6 per cent a year later are predictions based on prevailing situation. Depending on the measures by the government to fuel growth and improve the financial position of less privileged, the impact of inflation too will vary, making numbers less relevant. The silver lining is the better coordination between finance ministry and RBI as is evident from the more cordial language used in communication by both. Let us wait and watch.
- M G Warrier, Mumbai
Beware of online banking frauds: Look before you reply
Last month, the Reserve Bank of India (RBI) noticed a fake and fictitious account created as http://www.rbi-inonline.org/savings.html by some unknown persons, saying they were offering various banking facilities. Some fraudsters were asking the public to apply online for opening a “RBI Savings Account”. When this came to the notice of the central bank, they immediately cautioned the public ........
Many solutions
This is with reference to “Wait and watch till August” by SS Tarapore (June 13). Again, the RBI is firm on its stand with regard to inflation control being its pivotal aim and has introduced few changes in the monetary policy. All it did was change the SLR by 0.5 per cent. Of course, the optimism existing in the macroeconomic sphere thanks to the new government could boost the confidence of domestic as well as foreign investors. But steps such as removing the blocks on stalled projects, introducing investor-friendly tax and labour policies and facilitating land acquisition will do more along with tuning up the agricultural sector to reduce food inflation.
- Ramasamy Nagarajan
HBLUFBU Needs to Learn Lessons from Modi
.....The worst part is that even after the meeting was over on the afternoon of 13th June and almost 10 lakh bankers are breath takingly waiting for the circular of UFBU, these leaders are sleeping and I have yet to see the circular till the afternoon of 14th June i.e. after 24 hours of the meeting. I know in earlier settlements they used to take even few days to issue such circular as there was no pressure from social websites. Times have changed, and now cadre excepts that full fledged details to be released within few hours and not after few days. Some of the newspapers have covered the story in today's newspapers, but no circular from UFBU leaders. Are they so busy that they can not draft a letter of one page giving what actually transpired in the meeting? God save the Aam Banker from such retired and slow bankers. UFBU needs to learn their lesson fast.......
Wage Talk 13.06.2014: IBA offered 11%, UFBU demanded 25%
............In this talk IBA has improved wage increase offer of 10% to 11% in total salary which was rejected by bank union representative organization UFBU. Bank employees are demanding 25% increase and are hopeful from new govt. As reported this meeting was just a symbolic meeting in which govt shown willingness towards salary revision of bank employees for which PM and FM both had given assurance..........
Tax treatment: Pension regulator seeks parity for NPS with provident funds
................PFRDA has told the Finance Ministry that NPS withdrawals should be exempted from tax at the time of withdrawal just as PF withdrawals are at the time of retirement. “We have pitched for an EEE (exempt-exempt-exempt) tax structure for NPS on the lines of provident funds. Currently, we have an EET (exempt-exempt-tax) structure for NPS and this reduces the attractiveness of this product,” ...............
RBI sets norms for late fees on cards
In a move that will bring relief to credit card holders, RBI has told banks that they can charge late fees only in the next billing cycle following a missed payment. At present, card issuing banks charge a late fee for any payment made after the due date. The late fee imposed by card issuers ranges between Rs 100 and Rs 700, depending on the outstanding amount...............
Read - TOI
Why revised version of Inflation Index Bond may fail again?
.....In order to earn high post-tax return from these bonds, the investors in the 20 percent and 30 percent tax bracket would always need inflation rates to remain on the higher side, which is against the basic premise on which the RBI has been formulating its monetary policy in the recent years. Though the RBI cannot do much to make these bonds tax-free, it can definitely impress upon the government to consider making these bonds as tax-free.......
eMoney
.............What has helped is the boom in digital payments in India. According to the Internet and Mobile Association of India, such payments are expected to reach R1.2 lakh crore by the end of the year, 40% higher than in 2013. Credit cards will make up 21% of this while the rest will come from debit cards and internet banking. This has a lot to do with the fact that e-commerce...............
CII proposes five-point agenda for revival of NBFC growth
In order to arrest the steep rise in NPA and slowdown in loan growth, Confederation of Indian Industries (CII) has called for a long-term vision for the development of the NBFC sector in India. It has suggested a five point agenda for consideration of the Ministry of Finance and the Reserve Bank of India. The agenda focuses upon......
HC finds RBI terms 'unnecessary'
The High Court of Karnataka has termed “unnecessary,” the conditions imposed by the Reserve Bank of India for the taking over of Amanath Co-operative Bank by Canara Bank. During the hearing of a petition, Justice Ram Mohan Reddy observed that ......
SEBI takes its job seriously
The Securities and Exchange Board of India (SEBI) has taken up the job of investigating the Collective Investment Schemes (CIS) with zest. The regulator hopes to shed its negative image courtesy the Subroto Roy Sahara case. SEBI officials confess that the Sahara and Sharada scams are merely the tip of the iceberg, compared to the 600 CISs they are currently looking into. SEBI has started identifying CIS promoters and confiscating their passports before they flee abroad, as it has happened in the past. “Most regulating agencies like the RBI, MCA refuse to take responsibility when such scams come to light. The SEBI is left with the unpleasant task of cleaning the mess. Which is why we have decided to take our job seriously and are investigating the many companies expected to go bust in the near future,” says a SEBI official.
The Sunday GuardianTop 3 lenders in consortium may need to declare 'wilful defaulter' before penal action
The Reserve Bank of India (RBI) may want at least three top lenders in a consortium to declare a borrower a wilful defaulter before penal measures become applicable and the case is taken up by an appellate authority, banking industry officials say. They believe the regulator might take such a step to prevent banks with a relatively small exposure from classifying any borrower a wilful defaulter as a pressure tactic..........
CAG Report Pulls Up KSFE over Lending Business
.................The State Government thus permitted the KSFE in September 2012 to carry on the existing activity of lending business along with the chitty business. The audit sought clarification from the Reserve Bank of India on the status of the KSFE. “RBI stated that it had clarified on May 2013 to the State Government that it could not conduct chit and lending business simultaneously and advised them to hive off the lending business of the company into a separate entity and register it as a Non- Banking Financial Company,” the report says..........
Is EMI on credit card helpful?
...............While the use of credit cards as a mode of payments has caught on well, most people don't realise the perils of reckless use of credit cards. If you spend beyond your repaying capacity and do not pay your bill on time, most credit cards charge prohibitively high interest rates in the range of 36 per cent and 45 per cent. So, how does one deal with this?...............
At AGM, Kapur questions YES Bank governance
.............In her address at the AGM, Madhu Kapur said she was fighting for the rights she had inherited from her late husband (Ashok Kapur), which had been denied to her. These rights, she said, were enshrined in the Articles of Association and approved by the Reserve Bank of India. “If we want our bank to be sustainable, it will have to be trustworthy at all levels, with corporate governance and transparency being truly observed at all times,”...........
Friday, June 13, 2014
Wait and watch till August - Dr.S.S.Tarapore
Reserve Bank of India Governor Raghuram Rajan had to set out the second bi-monthly monetary policy for 2014-15 on June 3, playing his cards blind. Normally, by this time of the year, the Budget is announced and the task of the RBI becomes clearer. This year, because of the general election, the Budget has been scheduled for early July. As such, the RBI had a tough call to make. Given the circumstances, the RBI cannot be faulted for its somewhat emollient monetary policy stance.............
Banking on governance
.................... There is a risk of the report getting lost in the abundance of official and non-official recommendations and suggestions on financial sector reform that are now available to the new government. On the other hand, the committee’s report might well be the blueprint that a new government that is keen on reform might consider adopting, albeit with modifications. The report has already become controversial, with major bank trade unions threatening to go on strike against its key recommendations that are centred on the dilution of government ownership in public sector banks ...........
Country's first payment bank to come up soon: RBI
 |
| "I know that you are not happy that we have given licence to two (entities). We will come out with guidelines on universal commercial banking, which will be not be a single window, but it will be 'on tap', |
Private banks' work culture
RBI Deputy Governor H R Khan on Thursday said chasing growth with a pressure cooker-like work culture might put private banks in a tight spot and dent their image. Khan added it might result in the young generation's dislike for banking profession............
‘Private banks must focus on retaining and managing talent’
.............Speaking at the ‘Banking, Financial Services and Insurance Conference’ organised by SBICAP Securities, Khan said that banking has become a hated profession among some youngsters. The RBI Deputy Governor’s observations are significant as they come in the backdrop of a large private sector bank reportedly issuing pink slips to about 1,200 employees. Referring to the 4Ps in banking, Khan said if a bank has excellent products, excellent processes and excellent partnerships, but not the people, then all its efforts (to grow business) will fail...................
Payments bank could cause regulatory arbitrage, SBI says
The payments bank proposed to be allowed by Reserve Bank of India will hurt existing "universal" banks as they will offer products which are cross-subsidizing other services. She also said that there would be an element of regulatory arbitrage as a payment bank would invest only be investing in government bonds. Speaking at a conference on banking and financial service organized by SBI Capital Markes, Bhattacharya said, "There is an element of cross-subsidy in services provided by a bank. The payments bank will not have to provide the cross-subsidy. We will have to find ways to.....
After weak response, RBI now plans revamped inflation bonds
The Reserve Bank of India (RBI) is planning to revamp the inflation-indexed bonds which have failed to attract retail investors. “We had launched inflation-indexed bonds (IIBs) that were not successful. We are coming out with the revised version,” RBI deputy governor HR Khan said...........
Not considering raising FII debt limit in govt debt "right now": RBI
India is not considering raising the foreign investment limit in government bonds immediately, Reserve Bank of India Deputy Governor H.R. Khan said on Thursday. "Right now there is no such discussion," Khan said, in response to a question on raising the foreign institutional investment (FII) limit in government debt, on the sidelines of a banking seminar......
Closure of public counters in RBI - Mass casual leave
United Forum of Reserve Bank Officers & Employees issues circular dated June 11, 2014........
KYC relaxation a big boost for financial inclusion
....."Currently RBI is relaxing norms to open up the bank accounts and this is the first step in the stage of financial inclusion. Once this is done the second step is going to be to ensure that these accounts remain active and made productive by using other basic and advanced financial services,"....
Non-performing policies?
...........The government and Reserve Bank of India need to consider the various pros and cons of separating NPAs from public sector banks. In the banking business, non-recoveries are a part of the process and the provided remedies are improving loan origination and writing off the unrecovered loans. The NAMC proposal also shows the weakness of the Indian banking policy formulation..........
Inflation eases but monsoon un-eases
...........Since there are upside risks to food inflation and core inflation is already ticking up, it may be a while before the Reserve Bank of India (RBI) cuts interest rates to boost growth.
Bandhan - RBI may rethink
"Prof Yunus quoting examples of Raiffiesen Bank Internationl AG, Societie Agricole SA and others has highlighted the harms of providing general banking licence to MFIs which would make them move away from serving the underserved and unserved. He has rather recommended for special banking licence to MFIs. I have also been voicing similar concerns in my responses to the action of the RBI providing banking licence to Bandhan, the MFI. If Bandhan is going to function as a full fledged commercial bank, then MF portfolio would be just one of the asset side items of the Bandhan Bank. It would just comply with the PSL requirements of RBI. In about a decade, it would also go the Raiffeisein Bank and others. Sure, this may not be the objective of the RBI in having granted banking licence to Bandhan. Hope in the light of the observations of Prof Yunus, at least now, the RBI may rethink on its decision in granting the general banking licence to Bandhan and convert it as a special licence making it to function on the lines of banks like Bancosol, Bolivia, Grameen Bank, Bangladesh etc."
- S.Santhanam
Bharatiya Mahila Bank recruiting for 200 posts of Probationary Officers 2014
Bharatiya Mahila Bank Limited has invited job applications for recruitment to the post of Probationary Officers in Junior Management Grade/Scale I (JM G/S -I). Interested and eligible candidates are required to apply for the job before June 25, 2014..............
Bank of Baroda - Appointment and Cessation of Director
...... the Central Government vide their letter Dated June 10, 2014 has appointed Smt. Surekha Marandi, CGM, RBI, as Director of Bank of Baroda vice Shri. Sudarshan Sen, CGM, RBI, with immediate effect and until further orders........
Soon, you won't need smartphone for mobile money transfers
.........Finance Minister Arun Jaitley might next month launch mobile banking services for people not using smartphones. The move is aimed at pushing financial inclusion in India and bringing down banks' cost of servicing clients. Such a service will also reduce the transaction cost for those bank customers who are forced to visit a branch every time they have to transfer money from an account to another as they do not have smartphones or internet access........
Cyber Security Of Banks In India Needs Strengthening
............RBI has also mandated establishment of Steering Committees on Information Security by Banks in India and appointment of Chief Information Officers (CIOs) for all banks in India. However, banks in India have failed to comply with the directions of RBI so far and even RBI has allowed them to take this liberty. In effect, this means that there is neither a legal framework nor any compulsion to ensure cyber security of banks in India. Naturally..............
mRUPEE partners Infibeam to launch online retail e-commerce
.....This is the first time in the industry that a dual payment gateway has been introduced to give the customer two choices for making payment from an mRUPEE wallet and/or net-banking, debit card and credit card. This service will be available to both B2C and B2B customers. Another first in the industry is that a new retailer-assisted model has been introduced to facilitate those users who are not so technology or internet savvy. This would help the customers to benefit from offers and discounts available to online user community............
Court seeks RBI’s stand on merger of Amanath, Canara banks
The Karnataka High Court on Thursday asked the Reserve Bank of India to clarify its stand on the two conditions imposed by it for the merger of loss-making Amanath Cooperative Bank with the Canara Bank...................
Madhu Kapoor can challenge Yes Bank AGM resolutions in court: HC
The Bombay high court on Thursday allowed Madhu Kapur, widow of Yes Bank Ltd’s co-founder Ashok Kapur, to challenge in court all the resolutions that are likely to be passed in the annual general meeting (AGM) of the bank on 14 June. The court was hearing a chamber summons filed by Kapur, seeking a stay on several board resolutions that have been proposed to be passed in the AGM......
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