.........Ashish Joshi (name changed) is desperate for some divine intervention these days. For, he believes the “temple” on Mint Road (headquarters of the Reserve Bank), guiding his destiny so far, has turned him away. Joshi, a senior executive in the treasury department of one of the largest foreign banks present in India, says he isn’t alone. Peers in other banks share his angst. “The uncertainties in global and domestic markets are a way of life for us. But what hurts is RBI’s apathy,” says Joshi, who has added a few creases on his forehead in recent days..........
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Monday, August 18, 2014
New norms soon for PSU bank directors; CMD post to be split
...The government has decided to split the posts of chairman and managing director. The chairman would be a reputed person from the industry or a professional while the MD would have a fixed term of three years, which would be extendable by two more years. The government is also likely to bring a provision to transfer an MD if a bank slips, marking a clear shift from past practice........
Read - ET
Syndicate Bank case judge hints at bribe attempt
In a shocking disclosure, a special CBI judge on Saturday said that the high-profile accused in the alleged Syndicate Bank bribery case had sought to influence her. “Please tell your clients to stop sending love letters to me. I am already from a welloff background, if you don't stop this act, I will direct CBI to take action against you,“ special CBI judge Swarana Kanta Sharma said. The judge warned of action against the accused for making attempts of “influencing“ her by writing “love letters“ to her........
BANKING'S BIG BLACK HOLE
For every chairman of a public sector bank (PSB) who waxes eloquent about cracking down on the dodgy universe of middlemen that exists between lenders and borrowers, there are several in the PSB system who will tell you it's not the simplest of tasks. Reason: in many instances, the middlemen aren't chartered accountants or non bankers but retired PSB honchos who know the ins and outs of the loans business and who often join the corporate houses whose loan cases they would have dealt with while in service. Once they're out of it, they begin canvassing for sanctions of additional limits or loans. No banker worth his pinstripes will come on record with such examples, but in private they may just narrate to you the curious case of a retired deputy managing director at one of India's biggest PSBs who was seen carrying the briefcase of the promoter of a company he had joined on retirement. Guess where they were headed: to the headquarters of the bank he served at, of course!........
Read - ET
Read - ET
Mobile banking: Govt banks fail to tap the cost advantage
...........The private sector banks are now talking about minimum 100 per cent growth in the value of mobile transactions over the next one year. This kind of growth is possible since mobile banking has become a core part of their strategy which is evident from their marketing and communication strategies. In addition, these banks have tailor-made apps to suit different technology platforms like android, windows, iOS, etc for the benefit of the customer. These banks are attempting to make the experience of transacting in the digital world device agnostic and as a result, all the features that are available on the web, are mostly available on the mobile handset............
A step forward in promotinge-banking
..........“With better systems in place such as online banking and mobile banking, services like e-payments have not been gaining popularity as expected. Most people are paranoid about carrying out the transactions online and there is a need to bring more clarity on the secure e-banking system,” says RBI Manager (banking) in Hyderabad D.V. Sreenivasa Babu.............
Maladies in private banks
.........You always get black sheep in a crowd. There are many honest managers in public sector banks, otherwise the country would not have run properly. High compensation packages do not necessarily ensure honesty. Don't we come across major cases of corruptions in private sector banks as well? ........
United Bank game for greater risk appetite
..........“We have approached the RBI to allow lending to AA- rated borrowers. The RBI has been gradually easing restrictions on lending and we are positive that this would come soon,” UBI executive director Sanjay Arya said. Last year, the central bank had imposed a cap of Rs 10 crore on lending, with the UBI’s non-performing assets rising to 10.82 per cent of the advances at the end of December and its capital adequacy ratio coming close to the minimum requirement of 9 per cent under Basel III norms. The RBI, however, relaxed the restrictions in June as the bank posted a profit for the quarter ended March after suffering losses in the previous two quarters mostly on account of higher provisions for bad assets. The regulator allowed.....
Avoid parental guidance on some financial habits
.........His aggression in investment is a reflection of the changing times. With the vast change in lifestyles, in which watching a single movie in a mall costs at least a couple of thousand rupees for a family of four, and with the cost of education and health care rising 10-20 per cent annually, the need to save in instruments that return more and are also, most probably, riskier is growing. According to the changing times, you also need to change your financial decisions. To start with, the basics:..............
Digitising insurance policies is free for customers
...........The biggest advantage is that policyholders do not have to pay any additional charges for the EIA. The expenses of tying up with the IR and providing these facilities will be borne by the insurance company. Once the policy is in electronic form, you don't have to worry about policy papers getting misplaced or lost. You can use the EIA for viewing multiple policies, making online premium payments, updating any change in address, keeping track of complaints and grievances..........
Saturday, August 16, 2014
Corporate governance applies as much to RBI as to banks
....It is no one's case that the organisational structure of any institution, least of all of the central bank of the country, should be cast in stone. But it creates a bad precedent when a structure that has by and large stood the test of time, is sought to altered to accommodate one particular individual, however deserving. It also paves the way for future ad hoc appointments............
RBI renovate hits jump | Which debt-laden cos to deposit in?
.........Meanwhile, a offer to sinecure people from outward a organization is being against by staff who pronounced in a minute to a RBI house that a establishment has functioned good though a initiation of talent from elsewhere. Lateral hires could harm a career enrichment of existent staff and a pruning of several departments might not be in a best interests of a executive bank, according to employees. Staff kinship member will accommodate a administrator on Tuesday to plead grievances. “For a past 7 to 8 decades there have been many vicious situations and a existent indication has worked efficiently. We do not feel it is required to boost a series of executive directors and emissary governors,” pronounced Samir Ghosh, convenor of a United Forum of RBI Officers and Employees. “There is stress among a staff that parallel recruitment could hinder promotions and opportunities for a existent staff. To get imagination and specialists, a RBI should initial demeanour within a organisation.”..............
RBI Governor Raghuram Rajan to meet employees on recast plan
......... "We strongly oppose plans of an organisation revamp as it will hamper promotions, and one more officer almost in the rank of deputy governor will reduce the representation of RBI officers among the deputy governors. This is the first time there is so much of discontent within the organisation. We will not compromise on our stand of allowing outsiders to enter the rank and file of RBI.".............
Raghuram Rajan’s plan to overhaul RBI runs into opposition
...............For one thing, there's a dramatic contradiction in the interpretation of what happened at a central bank board meeting on Sunday in New Delhi between the RBI and the finance ministry. The central bank said on Thursday its proposals for the overhaul were approved and issued a statement to that effect, reaffirming an ET Page 1 story. The RBI statement indicated that the government was broadly in agreement with the central bank on its plans to revamp hiring, trim the number of departments an ..
RBI, finance ministry differ over COO post
........India’s financial services secretary G.S. Sandhu said that while the proposal was discussed at the RBI board meeting on 10 August, it was not approved because the RBI Act needs to be amended before any change can be made. “We have asked RBI to justify the creation of the new post and send the proposal to the government. First, we have to amend the RBI Act to increase the number of deputy governors after which we will see if a new post needs to be created or not. The new post, if created, also has to be approved by the Appointments Committee of the Cabinet,” he added. The 17-member RBI board has two government representatives—economic affairs secretary Arvind Mayaram and Sandhu. Part of the ambiguity on whether the proposal for a revamp had been “approved” by the board may have emerged from the fact that while the RBI board discusses and debates a number of the issues, it is not a voting body........
Why FinMin-Rajan unease is growing
......Rajan aimed to reform the central bank itself - the organisation, its functioning and human resources. And now, with differences between RBI and the finance ministry on the issue of appointing a chief operating officer (COO) coming out in the open, central bank watchers say it is the idea of transforming the organisation where the seed of the problem was sowed..........
RBI talks of HR recast, silent on COO decision
The RBI on Thursday said that its board has approved the broad contours of an HR restructuring plan to align the central bank with the needs of the domestic economyand changes in the economic environment. Although the RBI said it had proposed the creation of an additional position of a chief operating officer, its statement remained silent on approval by its board of directors on the issue............
Nachiket Mor faces resistance as many fear COO tag would make him No. 2 in RBI
.......But what led to a backfire is the designation — many RBI senior officers with aspirations to become executive directors and deputy governors and sticking to a well laid out line of reporting, were flummoxed at the possibility of the governor's buddy becoming the virtual Number 2 with a unfamiliar designation and no clear job description........
Daddy's Day Out: Raghuram Rajan loves playing video games with son
........The question: How does he feel to be so young and occupying a post that is usually considered the domain of silver-haired seniors? Rajan, one of the youngest RBI governors, took the question gamely. The mirth in his tone unmistakable, he replied one can be as young as one wants to be. "One needs to adopt new ideas. I exercise and play video games with my son and...I also try and adopt new ideas as much as I can," he said. Despite these exertions and his belief that age is just a number, Rajan went on to reveal that his son is none too impressed........
Young and jobless in India - Charan Singh
..........There is one silent segment of the population, the elderly, which gets neglected in most of the policies of the government. There are more than 11 crore elderly people in India who are above the age of 60 years — generally women — who are in urgent need of care, as nearly 90 per cent of them who are associated with the unorganised sector are not included in any sustainable social security programme. While some three crore elderly people who are under the ‘below poverty line’ category get about Rs. 500 as old age pension, the remaining eight crore have to fend for themselves. In view of the.......
RBI in talks to ease foreign investors' trade in securities
.........“We are discussing with various players to see what best can be done to smoothen the process of trading by the foreign investors in Indian securities”, RBI deputy governor H R Khantold reporters on the sideline of Odisha Economic and Banking Conclave, 2014 organised by the Bankers' Club here........
PLENARY SESSION “BANKING- THE CATALYST TO ECONOMIC GROWTH OF ODISHA”
The plenary session began with sharing of thoughts & ideas by the delegates over the different aspects of Banking and its effects on the economic growth and development of Odisha. The discussion was initiated by Mr. P.K. Jena, Regional Director RBI & President, The Bankers’ Club, Bhubaneswar who addressed the gathering about the conclave being a major step in giving a clear picture about the ideas to be followed by the banks in achieving the ultimate goal........
RBI Quiz Witnesses a Tight Contest
.......RBI Regional Director Nirmal Chand, who presented participation certificates and an RBI Financial Literacy kit to all participants, said that the competition was part of the financial literacy campaign by RBI. He said that children were the most captive audience. He said that schools were chosen for holding the quiz as children are in a position to tell their parents and friends about what they know of banking, economy and financial inclusion.
RBI to issue new Rs 1,000 banknotes within MG series-2005
........."The Reserve Bank will shortly issue Rs 1,000 denomination Banknotes incorporating rupee symbol, with 'R' inset letter, in the Mahatma Gandhi Series-2005," the RBI said in a notification. The year of printing '2014' will be printed on the reverse of the banknote.........
Back into the reckoning
My View on Former RBI chief prepares for new role as chairman of government....
It is heartening to know that Dr.Bimal Jalan, an illustrious former Governor of the Reserve Bank of India, who had steered the ship of the RBI through most difficult times, is back into the reckoning in Government corridors with his appointment as head of the Expenditure Management Commission. He was earlier associated with various Committees/Group but those were mostly set up by the RBI. He was nominated to the Rajya Sabha in August 2003, by the President of India 'for distinguished service to the country'. As is well known, Dr.Jalan had held several high level positions in India and abroad, including as Chief Economic Adviser to the Government, Banking Secretary, Finance Secretary, Chairman, Economic Advisory Council to the Pime Minister. Whereas many RBI Governors have been honoured by conferring Padma Awards, including Dr.C.Rangarajan and Dr.Y.V. Reddy who were recipients of Padma Vibhushan, the second highest Civilian Award, it appears that for some inexplicable reasons, Dr. Jalan has been overlooked for this deserving and coveted honour. Was it because he was nominated to the Rajya Sabha during NDA regime?
- Surendra Khot
RBI, CABINET SECRETARY SCRUTINISING APPOINTMENTS OF PSB CHIEFS
........."Time has come to be strict with PSU banks. I have urged the Cabinet Secretary and the RBI Governor to examine recent appointments in public sector banks," he told reporters in New Delhi. The CBI had recently written to the Finance Ministry alleging "irregularities" in appointments of chiefs of PSU banks, following which Jaitley called for a closer scrutiny of recent appointments.........
Centre bans campus recruitment of bank officers
.........It cites a decision of the Bombay High Court against campus recruitment in a connected petition, which has since been confirmed by the Supreme Court. “The said decision of the High Court may be brought to the knowledge of the board of directors of the bank immediately for meticulous compliance,” it added..........
Only 3 free withdrawals from other ATMs, 5 from own
........This will apply for transactions done at ATMs located in six metro centres — Mumbai, Delhi, Chennai, Kolkata, Bangalore and Hyderabad, which are well-served in terms of payment infrastructure. RBI said banks are free to offer free transactions above this mandated limit but not many banks are likely to offer freebies as cost of maintaining small accounts has risen over the years.
Charging for higher ATM use will lead to more branch visits
............."For banks, ATMs were supposed to save costs. Customers were encouraged to go to an ATM to withdraw money instead of visiting bank branches. But in the past few years, the volume of non-financial transactions has increased substantially. Banks do not earn any revenues from these transactions. Also, the ticket size of financial transactions has reduced significantly, making the entire process expensive for banks. Unless there is a control, banks are losing a whole lot of money. Hence, introduction of these charges was necessary," ............
Multi-crore Cossets scam: Two convicted, fined Rs. 1.12 lakh each
.......UT police had booked Nanda and Dugala in 2002 on complaint from Reserve Bank of India (RBI) on charges of duping residents of money. However, charges of cheating and duping residents were not proved.A complaint dated November 16, 2002, was lodged by SP Negi, deputy general manager-in-charge, RBI, Sector 17, Chandigarh, accusing Cossets Marketing Private Limited, Sector 26, Chandigarh, of fraud. The complainant submitted that the multi-level marketing company that had started operations in 2001 had enrolled three lakh members and had 40 centres across the country. The investors had made several complaints against the company of large-scale fraud......
Ex-RBI officer surrenders in Rs 650 crore Pen bank scam
NAVI MUMBAI: In a major breakthrough for the Rs 650-crore Pen Urban Cooperative Bank scam case, former deputy general manager of Reserve Bank of India, Abdul Bari Khan, has now surrendered before the Alibaug sessions court on Wednesday..........
Mobile banking: Govt banks fail to tap the cost advantage
.........But the story so far for the public sector banks has not been that encouraging, with the exception of State Bank of India (SBI) – that has clocked Rs 546 crore via mobile transactions in June. Some of the other state-run banks that are known to be tech savvy like Bank of Baroda recorded only Rs 35 crore transactions......
SM Swathi appointed Bharatiya Mahila Bank ED
SM Swathi, General Manager of Corporation Bank, has been appointed as Executive Director of Bharatiya Mahila Bank. She had assumed office on August 14..............
Bandhan, India's newest bank, takes shape
........."Most applicants said that as an employer, Bandhan would provide them the opportunity to be part of a team setting up a bank with a new business model," says a human resource official at Bandhan. This might be a job-seeker's perfunctory reply to a commonly asked question in an interview, yet it hints at why Bandhan could be a game-changer in the world of banking.......
SBI chief: Jan Dhan scheme will bring down use of cash
..........Bhattacharya, in a statement, said with such rapid financial inclusion, the use of cash in India will decline in line with developed countries such as the UK (2 per cent), Australia (3 per cent), and Japan (6 per cent) going forward. According to an RBI empirical study, alternative payment channels such as cheques, credit/ debit cards and Internet banking are not only more efficient than paper currency, but also leave paper/ electronic trails, facilitating tax audit. Usually, such payment mechanisms act as partial substitutes for high-value currency. The SBI chief said the positive spillover from this structural transformation (via financial inclusion) in the long-run would be enormous. This apart, the move towards digital India would make good use of cost-effective cellular technology in future banking growth........
Andhra Bank CMD gets award
........The Rotary Club of Coimbatore has conferred the Pride of Coimbatore Award on the Chairman and Managing Director of Andhra Bank CVR Rajendran for his contribution to the banking industry for over four decades. Rajendran, a native of Devakottai, started his career as a clerk in Corporation Bank in the mid-70s. He served in various capacities across the country before being appointed to the helm at Andhra Bank...........
Petty peeves, the poor and a never ending corruption story
.....But after reading the first three papers you will have no idea where Rajan said these things. Did the Reserve Bank issue a statement? Was there a press conference to announce future measures? Only the Indian Express report tells you that these statements were part of the Literature Live! Independence lecture the RBI governor gave on Wednesday to an invited group at the Oberoi Towers rooftop...........
Information-less Reserve Bank of India with poor planners
........Poor knowledge of RBI was also reflected when it could not reveal under RTI response about the change in system of issuing silver-alloy commemorative coins not being made available to commoners at their face-value. RBI should update its knowledge that India in post-independence period for the first time issued silver-alloy coin of rupees ten again on occasion of Gandhi birth-centenary on 2nd October 1969 that too at its face-value so that even commoners could become part of commemoration by having .........
Dalit-run firms starved of funds as banks fight shy of lending to medium sector
.....But officials at medium-sized units allege that banks have been opting to invest in the RIDF rather than lend to medium-sized units fearing bad loans from such accounts, thus affecting the funding prospects of these firms. It also ensures that the principal amount is safe, said a bank official. "Banks are hesitant to fund several medium-sized units despite the fact that these loans will qualify to be PSL. They would rather invest in the RIDF," said Milind Kamble, president of Pune-based Dalit Indian Chamber of Commerce, an industry body for small and medium-sized firms run by Dalit entrepreneurs. The chamber, set up in 2003, has about 3,000 member firms with turnover ranging from Rs 10 lakh to Rs 2,000 crore. Besides the PSL, banks are also required to make available..........
HOW CAN THE STATE BANK OF INDIA PAY INTEREST IN GOLD?
.........An article caught my eye this week. The Tirumala Tirupati Temple in India has deposited gold at the State Bank of India, and is getting paid interest on their deposit. There is something unique about this. The interest is paid in gold. To understand why no one else is paying interest in gold, let’s first look at how one can use any asset class to make a dollar income: speculation............
Thursday, August 14, 2014
‘Venal Politicians’ Exploit the Poor to their Advantage: Rajan
Read - ET
Raghuram Rajan and India’s cursed equilibrium
.....“The poor and the under-privileged need the politician to help them get jobs and public services. The crooked politician needs the businessman to provide the funds that allow him to supply patronage to the poor and fight elections. The corrupt businessman needs the crooked politician to get public resources and contracts cheaply. And the politician needs the votes of the poor and underprivileged. Every constituency is tied in a cycle of dependence, which ensures that the status quo prevails.”.........
Is crony capitalism the next target of Raghuram Rajan?
..........The truth is that we are years away from knowing if Modi is the moderniser he claims. Rajan, though, can play a key role in keeping the prime minister on the right track. The central bank governor is proving himself to be an adept politician; on Monday he was careful to praise Modi’s plan to create bank accounts for the poor -- into which aid cash can be transferred -- even while implicitly criticising the government’s decision to kill the WTO deal. If Rajan can make a dent in the billionaire problem he’s long lamented, he may just make India -- and the world -- a more vibrant place.
India needs bankruptcy code: Raghuram Rajan
..."Do we need a bankruptcy code? absolutely! It is something I have been saying for six years in reports that we need a bankruptcy code," he said while speaking at an event here late this evening. Replying to a specific question on the need for bankruptcy laws, Rajan said he was hopeful that the code embedded in the amended Companies Act passed last year will help things, but it has been stuck due to some issues which need to be worked out. It may be noted that ..........
RBI Governor Raghuram Rajan cautions against merger of unhealthy banks
...........“If you merge two unhealthy banks, you create a big unhealthy bank which will create bigger problems for the economy. If you merge an unhealthy bank with a large healthy bank, and the large healthy bank is not able to swallow the problems and will land the large healthy bank in problems,” Rajan said. Speaking on the governance issues, Rajan called for the separtion of the functions of the chairman and CEO of the public sector banks “I think the government and the RBI are together are working on improving governance, because it is government's prerogative because they own it. But as a stability regulator, we also have to figure out and offer suggestions on how this can be done. There are..........
Tomatoes, housewives and Raghuram Rajan
..........Why? One possibility is that consumers form their inflation expectations based on the price movements of commodities they buy frequently. Vegetables are one example. The price of onions—or tomatoes in July—is a conversation starter in most households across the country. The persistence of high inflation expectations shows that consumers are not yet convinced the authorities are winning their war against inflation.....
The DBT alternative
Reserve Bank Governor Raghuram Rajan has made what is probably the most cogent case in favour of direct benefit transfers (DBT) to pull the poor out of poverty. He has gone beyond the familiar argument that transferring money into Aadhaar-enabled bank accounts is a less leaky and market-distorting way to help the poor than providing them under-priced grain, fuel and essential public services. In doing so, he has pointed out..........
High interest rates will help in long-run: Rajan
.......Rajan, who has been under fire for keeping the interest rates high for long, explained that in the face of bottlenecks on supply sides, the RBI is seeking to keep some control over the demand side by keeping the interest rates high. "We're saying let us keep interest rates to control demand but also bring inflation down steadily without a dramatic disinflation over a quarter or so. It also means we have to keep interest rates (high) till such time as we have high inflation," he said........
'RBI should continue to manage public debt for now'
There is merit in continuance of the present institutional arrangement whereby the Reserve Bank of India manages the public debt, according to Deputy Governor Harun R Khan. In the context of the clamour in some quarters for an independent Debt Management Office (DMO), Khan said: “The size and dynamics of government market borrowing has a much wider influence on interest rate movements, systemic liquidity. “An autonomous DMO, driven by specific objectives exclusively focusing on debt management alone, may not be able to manage this complex task involving various trade-offs.”..........
SHOT DOWN - Govt turns down RBI's COO plan
........The government has turned down a move by the RBI management to appoint a chief operating officer for the central bank. It has instead asked it to seek amendments to the RBI Act to appoint a fifth deputy governor. The stand taken by the finance ministry is seen as a signal to Mint Street that the government will set the overall architecture, under which regulatory agencies have to function..........
Read - TOI
FinMin rules out COO appointment in RBI
The proposed appointment of a chief executive officer with the rank of a deputy governor in Reserve Bank of India (RBI) has been ruled out by the finance ministry as the government is of the view that no interim arrangements should be made for such high profile appointments. The RBI Act provides for a maximum of four deputy governors. But the central bank, which has initiated a restructuring of human resources, had proposed to increase the number of deputy governors to five and executive directors to 11, from 9 at present........
In Radical Recast, Mor may Come to RBI as COO
............“RBI board has approved the broad contours of the restructuring plan, including the creation of a position of a COO,“ the central bank said in response to a query from ET. The new position may not be ranked at deputy governor level as sought by Rajan, at least for the time being, said two people familiar with the matter. The next rung, or the third-highest rank at the central bank, is that of executive director. Nachiket Mor is regarded as the most likely candidate for the COO job. Mor is a former executive director of ICICI Bank and also headed the RBI committee on financial inclusion. Rajan wants to trim the 27 different departments at the central bank. He's also said to be keen on making lateral hires from the private sector. The board's approval for his plan is a boost for Rajan, ...........
Fitness and Luck
My View on "Diplomatic Banker Has a Will of Steel":
This is not an attempt to compare myself with Mundra. But to tell why I agree with the moral of the story that luck has a role in one’s career, I have to go back to my own entry to RBI as a clerk. In 1964, Madras Office of RBI could not shortlist my name for written test for the recruitment of Clerks/CNEs (Coin/Note Examiners) as I didn’t have high marks for my SSLC Examination. In Thiruvananthapuram RBI (where there were only specialised departments), recruitment was based on degree marks and I qualified in the written test. After the interview less than five candidates were selected, and I was not one of them. In 1968, I was still within the age limit when Trivandrum RBI recruited clerks after 1964 and I joined the Bank with a first rank both in written test and interview. Most of the time when Bank had an option, I was rejected in the first interview and selected second time. The Bank successfully rejected me in the last interview I attended (for F Grade) after which I opted for early retirement under an attractive (lucrative?) scheme. Even my medical fitness was an issue at entry point, and later in life I made some money writing about it (Fitness and Luck).
- M G Warrier, Mumbai
Govt Rejected Bank Employees Salary Increase Demand of 25 % : Unions in Strike Mood
Govt has rejected 25% Salary increase demand of bank employees and for further wage talk asked bank unions to come with agreeable increase. The letter is issued by IBA on persuasion for wage talk by UFBU. Now bank employees unions Federation UFBU is in process of declaration of agitational programmes including strike. UFBU has conveyed their message to all affiliate union-associations and bank employees......
Govt to review senior public sector bank appointments
......For the past few years, appointment of several bank chiefs, executive directors as well has independent directors have been viewed with a degree of suspicion and have often re sulted in controversy . The candidates are selected on the basis of an appraisal of the confidential reports (ACRs), which carry 70 marks, and candidates appearing for interviews for executive directors and CMDs can get another 30 marks. Apart from the RBI governor, financial services secretary , an RBI deputy governor and external experts are part of the appointments board. Similarly , there is no clarity on what goes into deciding the allotment of banks........
Read - TOI
Govt approves compassionate appointments in public sector banks
............While approving the compassionate appointments in public sector banks, the communication has sought to discontinue the extant provision of an ex-gratia in lieu. The Government has also advised the IBA to take appropriate action to circulate the scheme to all public sector banks for adoption with the approval of the respective boards. MV Murali, Convenor of United Forum of Bank Unions (UFBU), said the compassionate appointments scheme was unilaterally withdrawn by the Indian Banks’ Association (IBA) a decade ago. Since then the workmen unions and officers’ associations under the UFBU umbrella have been demanding its restoration......
Banking institute notifies common written exam for clerical posts in PSBs
The Institute of Banking Personnel Selection (IBPS) will conduct a common written examination (CWE) for recruitment of clerks in public sector banks other than the State Bank Group in December this year. According to a notification for CWE Clerks - IV, online registration for the examination commenced on Tuesday and would continue up to September 1..........
Now, you can send money through a social network
.................Oxigen wallet, a mobile wallet from payment solutions firm Oxigen Services, is being billed as India’s first mobile wallet to enable money transfers through social networks. The service, driven by an app, is bank and telecom operator agnostic. Anyone with a mobile handset, irrespective of the telecom operator, can download the app and use the wallet.........
State Bank group to roll out cash recyclers across country
..........The recyclers, according to the bank’s request for proposal, will also have bunch note accepting and dispensing capabilities, with a minimum capacity of 200 notes at a time and accepting/ dispensing all rupee denominations — 50s, 100s, 500s and 1,000s. The machine will be able to recognise the year of issue of the currency and can be configured in a way that while currency printed in or up to a certain year may be accepted (or rejected) by the machine, it may not be dispensed. For customers who are not tech-savvy and uncomfortable using a PIN for transactions, the cash recyclers will come with biometric authentication capability, with a fingerprint reader, according to Aadhaar specifications.......
Ease KYC norms
........... I have been asked to call on the bank branch with original of proof of identity and address and a copy of a recent passport size photograph for the bank’s record, failing which the bank will be compelled to close my account. No new set of documents is demanded for 20 years in case of driving licence and for 10 years in case of a passport My bank has asked for a new set of documents within 6 months. RBI should specify a period, say 10 years, for updating of KYC information.
Financial inclusion excludes the client
...........Current RBI instructions on financial inclusion plans don't cover group-based lending models such as joint liability groups (JLGs) and SHGs, although these approaches have helped the unbanked connect with banks. Why is a client segment that avails of two or three basic services from the bank out of the ambit of financial inclusion? Finally, the banker's attitude needs to change from sheer target-chasing to facilitating the poor's entry into the formal financial system. Banks, RBI and the government need to send the right message and remove barriers to enable greater participation of the poor in the formal banking system for their economic good. .....
‘Simplicity, reliability and direct benefits to the poor is the way forward’
IIMB's PGP2 students, led by Dr. Charan Singh, RBI Chair Professor of Economics, make valuable suggestions to accomplish the gigantic task of financial inclusion
At the Expert Panel Discussion hosted by IIM Bangalore on the Union Budget a month ago, Dr. Charan Singh, RBI Chair Professor of Economics at IIMB who chaired the deliberations on July 10, quoted the Finance Minister on the fact that Prime Minister Narendra Modi would make a special mention of Financial Inclusion in his Independence Day address to the nation. Financial Inclusion assumes added significance as it clearly figures highly enough on the new government's agenda to be addressed in the Prime Minister's maiden Independence Day speech. It could well be a major policy document of the new government which lays down the framework to be followed for next few years........
New beginning for financial inclusion
..............The earlier policies that pushed for financial inclusion were not very successful. According to the Reserve Bank of India (RBI), nearly 50% of the basic saving bank deposit accounts that were opened during the “Swabhimaan” campaign remained dormant. The banking correspondent (BC) agents that delivered banking services at the village level found the business model flawed as it failed to provide adequate remuneration commensurate with their efforts and investments. The banking product suite offered for these accounts was also limited............
Public money, personal greed
............ It will have an adverse effect on the attitude of the common people towards public sector banks (PSBs). Along with the restructuring of bank boards, the selection of PSB chiefs has also emerged as an important factor. ..........
How to deal with corrupt bosses of state-owned banks—Part II
........The biggest bane of public sector banks in India that account for roughly 70% of the industry, is the opaque appointment process of the top bosses. There is hardly any norm there; most appointments are based on discretion of the bureaucrats involved in the process with the Reserve Bank of India deciding to look the other way. Should an executive be first made the CMD of a relatively small bank and then move on to head a bigger bank? Or, should the person be straightaway made the boss of a large bank? Can a banker who has spent close to three decades in a small bank be suddenly catapulted to the corner room of a very large bank? Or, should he be chosen to head a small bank because of his background? Nobody knows the answers to these questions........
RBI okay with India joining Euroclear, but with a rider
........The proposal from the Reserve Bank of India (RBI), and submitted to the finance ministry, says it would be okay with allowing investors such as sovereign wealth funds to settle government bonds on the system, but not foreign institutional investors (FIIs). FIIs are the biggest foreign investors in teh country, and the RBI proposed that their exclusion from settling government debt on Euroclear be reviewed annually, one of the sources said. Officials of the RBI, the finance ministry and the Securities and Exchange Board of India (Sebi) will discuss the proposal next Tuesday, two of the sources said..........
India Post set to hit the ground running when it gets bank licence
................Payments Banks are expected to achieve their objectives by enabling high-volume, low-value transactions in deposits and payments / remittance services in a secure technology-driven environment. Given that it is already engaged in such activities, it will likely be a case of seamless integration into a new avatar for India Post. Currently, India Post provides mail, financial and retail services through more than 1.5 lakh post offices.........
‘State CARD Bank could leverage new RBI norm’
Kerala State Cooperative Agricultural and Rural Development Bank (CARD Bank) could look to a recent Reserve Bank of India move to issue licences for small and differentiated banks to expand its activities, said MLA and vice chairman of National Cooperative and Rural Development Banks’ Federation (NCARDBF) K. Sivadasan Nair here on Tuesday. Mr. Nair was speaking at the inauguration of the first State-level seminar on long-term cooperative credit structure, organised under the aegis of Kerala State CARD Bank.....
SBH allocates Rs 10 crore for CSR programmes this fiscal
......."The bank has allocated Rs 10 crore towards CSR programmes to take up social activities in the current financial year," Mukherjee said at a function here yesterday. On the occasion, he presented 100 traffic barricades to the Vijayawada Traffic Police.........
Andhra Pradesh State Cooperative Bank division in Nabard Consultancy Services' court
After finding the division of the assets of Andhra Pradesh State Cooperative Bank (APCOB) a hard nut to crack, the management board on Monday handed over the task to Nabard Consultancy Services (NABCONS). NABCONS, the consultancy arm of Na tional Bank for Agricultural and Rural Development (Nabard) will provide a roadmap for the bank, within 45 days, sources said. ..........
Subscribe to:
Posts (Atom)