While data for FY14 won’t be out for a few months, data for financial savings of the household sector collected by RBI suggest things won’t be too different from FY13, not surprising given the sub-5% growth for the year. As a share of the GDP, net financial savings of households in FY14 came in at 7.2%, not too different from the previous two years, but dramatically lower than the 12% in FY10. Within this, ..........
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Monday, August 25, 2014
Requiem for the Planning Commission
.............The gradual rise of the market economy progressively undermined the need for a planned economy. Not surprisingly, the Commission moved away from planning outcomes to indicative planning. However, along the way, the Commission evolved as the secretariat for the National Development Council, the apex body for cementing centre-state relations. And this function is very much relevant today, especially with a second round of economic reforms to be led by the states.............
Dampeners for the new animal spirits
..........Brokerages like Barclays and Standard Chartered are now making projections of six per cent GDP growth in 2014-15. That is at the upper limit of the Reserve Bank of India (RBI)'s projections and higher than the 5.8 per cent mentioned recently by Finance Secretary Arvind Mayaram. The MoSPI estimates of Q1, GDP growth will be released on August 29. After two fiscals of sub-five per cent growth, six per cent would be a big turnaround. If we offset the CAD numbers implying 2.5 per cent GDP growth in dollar terms, versus the six per cent rupee-denominated growth assumptions, the rupee is expected to fall by about...........
The murky world of suitcase banking
..........Both the banking regulator and the government, the majority owner of such banks, now seem to be determined to clean up the system. It’s not an easy job as the major risk, in some cases, is the senior management itself. But that’s one leg of the problem. Who will look into the other leg—the so-called investment banks, non-banking financial companies (NBFCs) and advisory services firms that entice bankers to indulge in what the industry calls “suitcase banking”? Investment banks are regulated by the Securities and Exchange Board of India (Sebi) while the Reserve Bank of India (RBI) oversees NBFCs. Will they take a close look at the murky world of suitcase banking?................
PENSION UPDATION – A MIRAGE : P R R NAYAR
........Far
from being a solace, this would be a source of anxiety to the beneficiaries especially for the older
ones (presently aged up to 86 plus). It
is not unreasonable to presume that the actual disbursement of arrears is bound
to get embroiled in inheritance
legalities at least in quite a few cases,
as the pensioners concerned
(including family pensioners) would, by then, be not alive. Being a highly
probable victim of such a contingency, I wrote to the Bank about 100 days ago
suggesting a smooth course of action.............
Website for Senior Citizens
Here is an amazing initiative towards building an exclusive website for Senior Citizens in India. This website which is an interactive web-portal, is meant to be a consolidated guide for all the Senior Citizens in India. We realized that the several needs for Senior Citizens, must be available, all at One Place. Hence, this portal is an initiative in that direction. In immediate future, the data captured and made available here, shall cater to needs of Citizens within Maharashtra State. The rest of the States will be covered in a phased manner over coming months. While navigations within this portal shall help in covering various features, hereunder are noteworthy aspects of your needs which you can expect to be served. Information is classified as below:..........
A bank for, by and of Indian rural women
...............Yet, nothing prepared her for the adulation that followed in 2006, when she received the CII-Bharti Woman Exemplar Award, presented by National Confederation of Indian Industry to honour poor, underprivileged women. In 2007, the Reserve Bank of India (RBI) invited her to speak at a meeting, (her first of many that followed) to motivate women to dream of a better tomorrow................
CBI zeroes in on big fish: Ex-RBI manager, SEBI men, ROC officer
The Central Bureau of Investigation (CBI) has zeroed in on at least four senior officials, including two of market regulator SEBI and a retired manager of the Reserve Bank of India, for their alleged role in laundering huge amounts money in the multi-crore Saradha financial scam..............
A marathon to celebrate the city’s rich heritage
..........“The idea is to reach out to people, celebrate our city’s iconic structures and generate funds for conservation,” says A.R.A. Rajinikanth, a trustee. The run, he says, will begin at Queen Mary’s College (which is celebrating its centenary this year), go past Ice House, Presidency College, the Public Works Department, Anna University, the University of Madras, Napier Bridge, War Memorial, Fort St. George, RBI and Port Trust — all structures with a wealth of history behind them. Since it will be difficult to explain the importance of these buildings while people are running, the organisers have been holding events over the past couple of weekends to engage with people prior to the run...........
Summer Internship with Reserve Bank of India
........Hospitality is yet another place which beyond comparison to most of the other organizations. A formal session with each and every DGM, GM and even the regional director sparkling enlightening discussions makes a lot for learning for every intern. Farewell lunch and coffee with the regional director over a meeting, together with the formal feedback makes the organization a great place to work especially for people who are research oriented and want to excel in the area. At Reserve Bank together with the technical knowledge of regular matters over the economic and financial systems of the country, learning from experience is yet another thing which you could achieve from the mentors. Exposure to city side is also encouraged which substantiates the learning through data collection and theory with the practical world and gives insights about things which can never be covered in books and thereby making it a truly practical experience................
Read..........
Check your wallet, fake notes on the rise
Mumbai: Fake notes in circulation are on the rise even as the Reserve Bank of India (RBI) and enforcement agencies strive to clear out forgers with increased security features and higher scrutiny. Banks reported higher detection of counterfeit notes after the RBI introduced a target-based incentive/penalty system. During 2013-14, 4.88 lakh pieces of counterfeit notes were detected. Of this, 4.68 lakh pieces (95.9%) were detected by bank branches and 19,827 (4.1%) by RBI offices...........
RBI diktat on Uber could affect Google and Apple too
.........The diktat has ramification for a wide range of internet companies operating in India which will have to alter their payment models. At present, the mobile application stores of Apple and Google, for example, do not follow the two-stage authentication process mandated by RBI for credit card transactions. Every time a user buys an application from these stores, the transaction is completed using the customer's credit card details already saved in these firms' database. This might be a violation of RBI's credit card transaction guidelines, which require a second-stage check in the form of a one-time password or verification services like 'verified by Visa'. After the central bank's strong note, most of these entities might have to upgrade their technology to operate in India.....
Making sense of a bank’s balance sheet
............As compared to the interest paid on fixed deposits (term deposits), the interest offered on demand and savings bank deposits (popularly known as CASA or current account and savings accounts) is very low. As such, when banks mention that they are trying to increase the share of low-cost funds, it means that they are trying to garner more funds in the form of CASA. This would eventually help them improve their net interest margins (NIMs). As for borrowings, they are somewhat similar to the debt that non-financial companies take. Apart from deposits, banks can also borrow funds through loans from other sources. These can include the Reserve Bank of India as well as other institutions and agencies, be it domestic or foreign...........
Borrow less, don’t blame RBI: Time Jaitley stops doing a Chidu on us
........Unless these things happen, any call by the finance minister asking the RBI to cut interest rates needs to be taken with a pinch of salt. The RBI may decide to humour the finance minister and go ahead and cut the repo rate (the rate at which it lends to banks). Nevertheless, any material fall in interest rates will happen only once the government is able to make serious efforts towards curtailing the fiscal deficit. And the next time you hear Jaitley asking the RBI to cut interest rates, remember, he is trying to do a Chidambaram on us.
Time for RBI to cut interest rate, says Anand Mahindra
......"Now he (RBI Governor) has some breathing space, where the fuel price index would go down. So, in the next few months, if this situation continues, forex inflows are strong, IIP goes up, inflation is abetting, fuel prices are going down...This is the time now (for RBI to cut rate)," ............
The challenge of financial inclusion
.....There is a long history of financial inclusion in India. It has traditionally been understood to mean opening new bank branches in rural and unbanked areas. Nowadays, however, financial inclusion is seen to be something more than opening bank branches in unbanked areas to take formal financial services across the length and breadth of the country...........
Formal employment remains key to financial inclusion
..........Diced by states, data show there are significant variations in household debt from formal banking channels, which begs the question, what policies will raise access across the country? We analysed household debt from the banking system on two parameters: debt per household, which measures debt in absolute terms, and debt as a share of state gross domestic product, which indicates debt as a proportion of income, and which by proxy shows ability to repay loans.........
RBI may allow NBFCs to lend against all categories of shares
..........It is now learnt that RBI is planning to modify the circular to allow NBFCs to lend against all category of shares. However, NBFCs will be required to declare to the exchanges the Group 1 shares that are pledged with them. Group 1 shares are a category of limited stock defined by the Sebi........
50% of microfinance institutions could convert to banks: regulatory body CEO
............Alok Prasad, CEO, MFIN, said about half of the members could graduate to become banks. Such a move will give them an opportunity to also provide liability (deposit) products and money transfer services in addition to the existing business of providing short duration collateral-free loans for small amounts and third-party products such as micro-insurance to the poor.............
Arun Jaitley & His Team Wrongly Clubs Corruption With Risk Management in Banks
...........Now most of the banks have in place a system called “risk ratings” of the corporate which is used in credit proposals. Inspite of the fact that some banks have robust risk rating system, their NPA levels are very high. Why? The reason is not missing risk management policies but deep rooted corruption in the banking sector, whereby even the honest lower functionaries are asked to tinker with various parameters of rating system to keep the account in higher rated category so that higher limits can be sanctioned or it can continue to be in standard category. The tools of transfer and charge sheet are used to create a terror in the office. You can peep in your credit division or talk to a person associated with risk ratings in the field. If he is frank with you, soon the honest rater will explain as to how AGM / DGM at Regional levels wants the rating to be perked up by tinkering few parameters. All this is done ............
Forensic report to be ready in next ten days: Dena Bank chief
........Dena Bank expects the forensic investigations report on its Malabar Hill branch scam to be available in the next ten days, its Chairman and Managing Director Ashwani Kumar has said. Professional services firm Deloitte is looking into the matter post the Finance Ministry’s directive that forensic investigations be carried out on the scam, Kumar said..................
What could follow the PlanCom?
............Modi's comments have been echoed by many CMs over the years. Economists like Arvind Panagariya have called for the end of central schemes in favour of block grants, to allow states to choose their development priorities. Central plans, the argument goes, ignore the differing development stages and capacities of India's diverse states. Without central schemes, there shall be no need for a commission to plan, design or evaluate them....................
How high are Indian banks’ bad loans?
................The Reserve Bank of India’s annual report, while acknowledging the problem, points out: “Compared over time and across countries, India’s NPAs (non-performing assets) are not high. Historically, the gross NPA ratio was at 12% in March 2001.” There is some truth to the central bank’s statement. As the chart shows, India’s gross non-performing loans (NPL) ratio at close to 4% is far lower than that of some European economies which were caught in a debt crisis....................
A.P. to approach RBI again on rescheduling of crop loans
........According to official sources, RBI Governor Raghuram Rajan has convened a meeting with Chief Secretaries of all States on August 25 to discuss various banking-related issues. Separate time has been sought to discuss the plea of the State government.........
Cheque bouncing has become tedious with SC verdict
..........A fortnight ago, the Supreme Court has made it a little more difficult. Until now, the aggrieved person could file a case at his place of residence or business. A three-member bench of the Supreme Court has now ruled in K Bhaskaran versus Shankaran Vaidhyan Balan that in cheque bouncing incidents, cases can only be filed in those courts within whose jurisdiction the drawee bank is situated. Thus, if ABC Company in Tuticorin receives a cheque drawn on a bank in Dibrugarh, Assam, ABC Company would have to file the case in Dibrugarh – not easy for the company in Tuticorin. This will naturally not only result in delays but huge expense as ABC would have to engage lawyers in Assam and even have someone travel to Dibrugarh. To add to the woes of those seeking redress, the judgement would apply retrospectively. Therefore hundreds of thousands of cases would be transferred to different states...........
Can't Using Credit Cards be Safe and Also Easy?
...........No one will quibble with the regulator when it says that security is the paramount consideration when framing rules for online payments. But is it anyone's case that we can have either security or convenience, but not both? The RBI can definitely do better. It must change the rules to permit single-factor authentication while putting in place adequate security safeguards. Users must know clearly what they are signing up for, and all security certifications must be in place.Grievance redressal must be swift and violators must be given exemplary punishments. All the same, the components of the ecosystem -merchants, credit card firms, third-party wallets, phone companies and app stores -also have to conduct themselves responsibly and not jeopardise their own prospects.........
RBI says all companies must apply 2-step payments for credit cards
.......Although the RBI did not specifically address any company, it noted "it has come to our notice" cases in which domestic credit card transactions avoided the additional verification process by using an overseas payment system. The RBI noted companies would have until Oct. 31 to ensure the two-step verification process was being followed, while noting that payments must be routed through a domestic bank and settled in Indian rupees. "It is advised that entities adopting such practices leading to wilful non-adherence and violation of extant instructions should immediately put a stop to such arrangements," the RBI said in a circular.........
Unclaimed insurance amount: Whose money is it, anyway?
........The unclaimed amount includes money payable to a policyholder as death claim or maturity claim, survival benefits, premium due for refund and premium deposited but not adjusted against premium or indemnity claims. Any amount unclaimed beyond six months from the due date for settlement will be displayed on the website. According to the regulator's August 14 circular issued to all insurers, excluding General Insurance Corporation of India, the information regarding unclaimed amount will have to be updated every six months on the insurance company's website.......
Are there mistakes in your tax return?
..........The taxman also gets suspicious if you are in vesting too much or withdrawing too little. A Mumbai-based individual was asked to explain how she was sustaining herself because her entire salary was flowing into investments. She was using the cash allowances received from her employer for her day-to-day needs and investing the entire salary that came by cheque.“The tax officer will estimate the household expenditure you are likely to incur based on your earning capacity, family size, lifestyle and number of earning members. If your bank statement does not show commensurate withdrawals for expenses, the question will arise how you are surviving on so little,“ .........
CBI clears Bhave in MCX-SX issue
........This follows the agency coming to a conclusion that Bhave's role in granting permission to the private exchange was not of serious nature to warrant registering a case, highly-placed sources said. Hence the recommendation for a departmental action against Bhave, a 1975 batch IAS officer of Maharashtra cadre, who took voluntary retirement from service in 1996. The sources said that the CBI has finalised the case in which similar action is being recommended to the Finance Ministry against former SEBI member K M Abraham............
Saturday, August 23, 2014
For an economics of compassion - Dr.S.S.Tarapore
.............A characteristic of Mujumdar’s approach to life was to help those in difficulty, even if they did not seek his help. His writings were centred on compassion for the downtrodden and that is what he practised in life. He believed in a Socratic tradition of free and frank exchange of views even if they revealed sharp differences and he believed that this was essential to progress. On a personal note, I was, over the years, the recipient of sharp criticism from Mujumdar of my work, but at the same time I have been a major beneficiary of his unstinted support in my career. I had never imagined that the loss of a sparring partner would hurt that much.
Restructuring of RBI - A.Chandramouliswaran, Former Executive Director
I have written this piece inspite of some initial reservations on account of my retirement long long ago and that I may not be conversant with all subsequent developments in the Bank. I was persuaded to attempt this piece after the invitation of views from more persons by the 'Newsletter' and after I read the views of my former lovable colleague, Shri V.S.Das.
At the outset, I hold the view that the Governor, with the approval of the Central Board where ever it is necessary, should be free to introduce changes in the organisational structure of the Bank for it to be effective in the performance of its functions. Of course, as the Board itself has put, all the stake holders involved in the exercise have to be consulted, the most important of them being the staff of the Bank whose reasonable expectations in their career path should not get seriously affected. This is important since, unlike the IAS officers, who have access to practically every post in all the institutions of the country, officers of the Bank have to look mostly for their career progression with in the Bank.
After recognising the authority of the Governor to make changes, it has to be said that it is unfortunate that the Board has blessed the proposals of one more Deputy Governor and two more Executive Directors in the Bank apart from other changes the details of which are not known. It may not serve any real purpose to offer views on this matter since this seems to be a fait accompli. Nevertheless, it is difficult to resist the temptation of expressing views on the subject for whatever they are worth. RBI had only three Deputy Governors for a long time. If my memory serves me right, the fourth Deputy Governor was mainly to function as the full time Chairman of NABARD apart from handling, say, just one or two departments of the Bank. A full time Chairman ( who is not a Deputy Governor ) has been in charge of NABARD for a long time and hence the Bank should be able to manage with only three Deputy Governors. Like wise, additional posts of Executive Director are unnecessary since already there are too many of them (most of them perhaps function as in charges of two departments if not as head of a single department) and there is a case for reduction in their number. Posts of Executive Director, Principal Chief General Manager etc should not be created just for the sake of providing promotional opportunities. These posts would lose their charm if they are too many. Apart from these posts losing charm, so many posts at the level of Executive Director and the Deputy Governor would not be really necessary if only we look at the papers which are being pushed up to and seen by them. Over the years (even when I was in service), papers got pushed to higher and higher levels and the delegation of authority suffered seriously. Officers at various levels have to be encouraged (even compelled) to take decisions at their level (of course in accordance with rules relating to delegation of powers and authority which has to be periodically reviewed and revised). Managerial competence and confidence in their judgement would develop in the officers only when they learn to take decisions. When one of the Deputy Governors during my service casually mentioned to me of heavy work load at his desk, I had politely told him that if he permits me I would look at the papers sent to him and mark them with different colours to indicate which should not have been sent to him,which are in a grey area and which have been rightfully sent to him and that he may have take a view. It is needless to add that he was not inclined to add to my workload !
In order that officers of the Bank have promotional opportunities, Governor should explore the possibility of officers of RBI at levels from 'Chief General Manager' onwards, being accommodated, by way of deputation initially, in various institutions in the country and there is scope for such a move. The need for lateral induction in the RBI of officers at senior levels could be substantially eliminated if only the Bank take care not to destroy the specialisation of officers in certain areas in the name of 'combined seniority' and giving effect to it in a manner which is not worthy of an institution like the central bank of the country. The expertise of officers in various areas whose performance is outstanding and who have great potential could further be augmented by allowing them to remain in that area and through suitable training in India and abroad.
While talking on Human Resource practices, Shri Das has indirectly hinted (at least, I think so ) that certain recent moves in the Bank had to be relooked. Human Relations Management Department should have high credibility before its policies find acceptance by the staff of the Bank. The policies in various areas such as posting, promotion, transfer, training in India and abroad, Performance Appraisal (including moderation of reports at the HRM department in the central office) have to be spelt out and should be known to every one so that there is no scope for favouritism and there is cooperation from the staff to the implementation of the HR policies. Frequent changes in the rules relating to rotation and placement of officers in various departments, eligibility criteria for promotion etc had caused havoc in the past and if I read Shri Das's views carefully, the position seems to have only further worsened. I may conclude with one more observation. In the context of recent suspension and arrest of a Chairman of a public sector bank, it was mentioned that eligibility criteria for appointment to the post of Chairman/ Executive Director got changed frequently. This had happened in the RBI also for appointment to the post of Executive Director in the RBI which naturally helped some persons and adversely affected some others.
- A.Chandramouliswaran
COOrdination......
My View on "COO - Interpretation of RBI Act : M. A. Batki":
Legalities apart, if the felt need is ‘to have a fifth Deputy Governor’ to share responsibilities, as finance ministry suggested, the procedures could be followed and the objective can be achieved. After all, there were times when only two DGs were in position. If the purpose is to make one person responsible to ‘coordinate’ four DGs’ work, perhaps that job cannot be delegated beyond a point and Governor will have to continue to do it with ‘secretariat support’. Cutting and pasting concepts like ‘COO’ from companies or central banks elsewhere will add to problems.
- M.G.Warrier
Why not one of the 4 DGs can be redesignated as COO and his existing portfolio can be redistributed among the other 3 DGs? Are the DGs so overburdend that they cannot take on some additional responsibilities and thereby save the botheration and consequent delay in creation of another post of DG?
Obituary
Mr. G.R. Inamdar, Ex Jt. C.O.expired on 18/08/2014. He was attached to erstwhile ACD, Garment House, Worli, Mumbai. (Phone Nos. 09920146488 / 022-24227728)
- Ravi Subandh
Shri Sat Parkash Gupta expired on 20-08-2014. He was President of RBI New Delhi Pensioners' Forum for the last about one decade Shradhanjali Sabha is being held at 2.00 p.m. on Sunday, the 24th August ,2014 in Agrasen Bhawan near Jawalaheri Market Chowk in Paschim Vihar, New Delhi - 110063. May his soul rest in peace.
- Ranjit Kumar Rehan
RBI quiz competition held: 2 DPS students win city round
.........Speaking on the occasion, D P Sharma, General Manager, RBI said that the RBIQ was being organized with a view to create awareness and interest about the history and role of RBI, banking, finance, other banking institutions, economics, current affairs, personalities and events that have contributed to the growth and progress of the country over the years. RBIQ is aimed at connecting RBI and the young student community enrolled in schools across the country and achieve extensive dissemination of financial literacy, he added. It also provides an opportunity for recognizing and encouraging bright young students on a national platform. ..........
Harassed by bank? Ombudsman can provide relief
................Addressing the annual press conference on Friday, RBI Banking Ombudsman (Bihar and Jharkhand) Patric Barla and RBI's Patna AGM Gyaneshwar Pathak said there are 27 grounds on which the customers can file complaints. These include issues related to deposit accounts, clearance of cheques and drafts, remittances, ATM, debit or credit cards and loans and advances. However, corruption-related matters and matters under litigation are not handled by the OBO. "The customer himself or through his representative, other than his advocate, can write letter or e-mail to the OBO or can file the complaint online," said Barla. However, before moving the OBO, it is necessary for a customer to first submit a written representation to the bank concerned. If the complaint is rejected or no reply is received from the bank within one month from the date of representation or the reply is not satisfactory, s/he may lodge a complaint with the Banking Ombudsman. "One should write to us within one year of writing to the bank concerned," said Pathak.......
RBI brings out draft charter of customer rights
.........In the Right to Fair Treatment, RBI has said that both the customer and the financial services provider have a right to be treated with courtesy. "The customer should not be unfairly discriminated against on grounds such as gender, age, religion, caste and physical ability when offering and delivering financial products," said the banking regulator............
Govt. will need to walk the talk: RBI
Retaining its projections of 5.5 per cent growth for the year and 8 per cent inflation by January, the Reserve Bank of India (RBI), in its latest assessment of the economy, has warned that unless the Narendra Modi government delivers on the steps it outlined in the Budget for revenue augmentation and expenditure controls, meeting the stiff fiscal deficit target will be a challenge..........
RBI calls for deeper cooperation among major central banks for second time
..........."While international monetary policy coordination where advanced economies' central banks prepare the markets and allow gradual adjustments remains the first best policy choice, the emerging economies' domestic policy responses will need to gear up to convince markets on stable inflation, smooth exchange rate adjustments and effective micro and macro prudential policies,"............
Decoding RBI annual report: Killing inflation only way to achieve sustainable growth
.........“Look guys, world around people have accepted inflation targeting as the best way to deal with macro-economic problems. Killing high inflation is the only path to achieve everything else you might want—a safe financial system and an environment for sustainable economic growth. We need to act now.”...........
RBI optimistic
......Here is a catch, though. According to the RBI figures, bank’s lending to five infrastructure sectors are found to be most stressed. Although overall stressed assets of scheduled commercial banks have marginally declined, bank loans to private sector for infrastructure, iron and steel, textiles and mining (including coal) constitute 24 per cent of total advances, but they represent over half of banks’ stressed assets. So the question that is staring at us, taking the RBI figures only, is how do we finance our growth?.............
Inflation-hawk RBI must now nurture growth
.........RBI, unfortunately, remains too much biased on its inflation-controlling mandate and seems to be soft-pedalling, if not ignoring, the growth-boosting objective. This is despite the fact that the WPI inflation has moderated to 5-month low of 5.2 per cent and core inflation at less than RBI’s comfort zone of 4 per cent. How can the country’s money manager be so inert to growth objective if the economy is growing at less than 5 per cent for the past two years, which is worse than the 6.7 per cent expansion seen during Lehman crisis year of 2008-09? How can the RBI be so shy in cutting rates when WPI inflation is well within controllable limits?.........
Experts analyse impact of RBI's new repo regime
.................So, in that 14 day cycle they are doing the 14 day Repo four times. So, the same amount is split four times plus they are supplementing it with a 3 day and a 4 day Repo so that at all times some money is being made available, it is the same money but it is being made available four times a reporting cycle. Separately they are also going to auction government cash balances as and when the government has a cash balance........
Credit Summit India 2014
The 1st Annual Credit Summit 2014 will be held at the Hotel Palladium, Mumbai, India on 26 August 2014
.............The Credit Summit India 2014 will look at winning strategies in this increasingly growing, volatile and complex market, analyzing what’s new in Credit strategy, and how are new trends emerging in Asian Credit space versus the rest of the world. The prestigious Summit will highlight upcoming Credit investment opportunities across India and explore the latest products and strategies available to financial advisers, providing actionable guidance on portfolio implementation. This Summit promises to provide a dynamic forum for education and networking between leading luminaries from the Credit market space from India and abroad............
Bhasin elected as IBA chief
T. M. Bhasin, Chairman and Managing Director of Indian Bank, has been elected as the Chairman of Indian Banks’ Association (IBA), which is a representative body of CMDs and CEOs of public sector, private sector and foreign banks.........
Reserve Bank of India notifies increased PPF deposit limit of Rs 1.5 lakh per year
..............."We forward herewith a copy of the Government of India Notification...The Government of India, vide this Notification, has enhanced the individual subscription limit under the Public Provident Fund (PPF) Scheme, 1968, from existing Rs 1,00,000 to Rs 1,50,000 in a financial year," RBI said in a communication to banks..................
दरमहा १३ नि:शुल्क एटीएम उलाढाली नोव्हेंबरनंतरही शक्य!
.........त्यामुळे ग्राहकांना मुंबईस्थित एटीएममध्ये नव्या पद्धतीप्रमाणे एका महिन्यात आठ नि:शुल्क उलाढालींबरोबरच मुंबईबाहेर ठाणे, डोंबिवली, दहिसर, भाइंदर, वसई, नवी मुंबई या परिघावरील शहरांमध्ये स्थापित कोणत्याही बँकेच्या एटीएममधून अधिक पाच अशा एकूण १३ उलाढाली कोणत्याही शुल्काविना करता येणे सहज शक्य दिसते. डोंबिवलीस्थित आर्थिक साक्षरतेसाठी कार्य करणारे व माहिती-अधिकार कार्यकर्ते विजय गोखले यांनी या संबंधाने रिझव्र्ह बँकेच्या 'पेमेंट अँड सेटलमेंट सिस्टीम्स' विभागाच्या महाव्यवस्थापकांकडे परिपत्रकाबाबत खुलाशासाठी केलेल्या पाठपुराव्यातूनही ही बाब स्पष्ट झाली आहे.............
Read - Loksatta
Uber told to follow two-step verification for card payments
Global startups like San Francisco-based car hire company Uber and ecommerce players will have to rework their billing systems in India with the Reserve Bank of India insisting on second factor authentication for all `card not present' transactions in the country. The RBI has also banned dollar billing for local services and has asked companies using offshore payment gateways for transactions in India to immediately cease this practice and settle payments within the country. A `Card not present' or CNP transaction is the terminology used by the RBI to describe payments made without actually swiping the card but using details on the card.This applies to........
Uber’s payment system flouts norms: RBI
.......“These entities are evading the mandate of additional authentication by following payment models which are resulting in foreign exchange outflow. Such camouflaging and flouting of extant instructions on card security... resulting in an outflow of foreign exchange in the settlement of these transactions, is not acceptable,” RBI said in a circular issued late Friday evening. This is in violation of the Payment and Settlement Systems Act 2007 besides FEMA, it added.........
Rs.1 lakh cr of your money: What’ve banks done with it?
Bank funds of about Rs 1 lakh crore are caught up in frauds or under investigation by the Central Bureau of Investigation (CBI). But banks are greening their books by selling off bad loans to asset reconstruction companies (ARCs) or by restructuring payments (where the tenure of loan is altered when there is a repayment issue) or plain writing it off to make their balance-sheets rosier. As on June 30, about Rs 2.54 lakh crore of bank loans turned into bad loans after borrowers defaulted on repayments. Add another.........
Low-risk bank accounts conduit for money laundering
............Finally, the branch manager decided to close her bank account. But he stopped. He was not sure what to do, especially since funds have already moved through his branch. The case indicates that there was ‘MONEY LAUNDERING’ going on under the Manager’s nose. Mrs A was used as a mule against payment of some commission and the bank manager and staff were either inadequately trained or grossly negligent in ignoring the obvious red flags. The moral is that transactions in low income individual account should also be monitored with the same keen eyes as in other accounts and also.....
Basel III: LCR norms to make life tougher for Indian banks
...........Once LCR comes into play, banks will have to focus on stickier deposits. At the same time, on the asset side, they will have to increase the proportion of high quality liquid assets. This could constrain private banks’ lending capacity and keep rates higher for longer, pushing down profitability, the report says. According to research firm, most large banks will be able to meet the near-term target of 60 percent. However, the bigger challenge will be improve this to 100 percent, especially...............
GOI appoints two DMDs in NABARD
The Government of India through its notification, has appointed R Amalorpavanathan and H R Dave as the Deputy Managing Director’s in the National Bank and Rural Development (NABARD) for a period of five years from the date of their taking over. R Amalorpavanathan is B. E. ( agriculture) and Post Graduate in Management from IIM, Bangalore and Masters in Development Management from Asian Institue of Management, Philipines. At present, he is working as CGM in Business Initiative Deparment of NABARD Head Office, Mumbai. HR Dave is Graduate in Dairy technology and Post Graduate Diploma in Management fro IIM, Ahmedabad. At present he is working as CGM in Corporate Planning of NABARD Head Office, Mumbai.
FPJ
FPJ
NABARD furthers its financial literacy campaign on rails
..........The National Bank of Agriculture and Rural Development (NABARD), as part of its ongoing financial literacy campaign today launched 'Vithiya Saksharatha Abhiyan' on trains here. The campaign, aimed at creating awareness on banking services was launched by flagging off Secunderabad -Guntur Golconda Express at Secunderabad Railway station. ..........
Bengal govts savings scheme in limbo as banks back out
.....................Launched after the Saradha scam as an alternative to dubious fund raising companies, by the West Bengal government, the scheme is now at the mercy United Bank of India-its sole distributor. The big setback for the plan comes with State Bank of India refusing to distribute the scheme at a low fee.........
XLRI boost for biz at bottom of pyramid
..........The competition invites successful models that involve livelihood initiatives with finance, banking products for poor, products innovations in micro finance, savings and insurance, sustainable innovations for the ultra poor, innovations in financial literacy and consumer protection, including literacy initiatives through Financial Literacy Centres, micro insurance and community-based initiatives and inclusive technological innovations that include mobile banking............
Filling up of the post of Dy. Registrar of Central Registry
...................Chief Managers or above in Reserve Bank of India (RBI) / National Bank for ... Nationalised Banks / State Bank of India), equivalent level officers in the public sector insurance companies are also eligible to apply.......
Court asks police to lodge FIR against ICICI Bank CEO
A local court has directed the police to lodge an FIR against ICICI Bank CEO Chanda Kochhar and head of card operations Vinay Valse in connection with allegations of cheating and fraud over online shopping through credit card. Chief Judicial Magistrate, Lucknow, Sunil Kumar pronounced the order on Thursday on a complaint filed by an ICICI Bank credit card holder Imran Ahmed, seeking direction for lodging an FIR and proper investigation in the matter...........
Depositors of a Maha co-op bank can withdraw only Rs 1,000: RBI
............RBI has also put curbs on operations such as entering any compromise or arrangement and selling, transferring or otherwise disposing of any of its properties or assets. "It can do so only with prior approval in writing from the Reserve Bank of India," the release said. RBI also clarified that its directions should not per se be construed as cancellation of its banking licence as the bank will continue to undertake banking business with restrictions till its financial position improves........
Corp Bank skipped FinMin norms while nominating board candidates
...........This comes after the finance minister wrote to the central bank for review of senior appointments and nominations in public sector banks. Officials at the bank do not deny the nominations do not conform with the guidelines. However, they say a legal opinion was taken saying the DFS guidelines are only "advisory in nature and not mandatory" and that if the nominations were turned down, the candidates would go to court.............
Canara Bank plans overseas expansion
.........The bank would add 20 more branches over the next five years when business from overseas offices was expected to double to 15 per cent (of the total business), he said. Canara Bank was looking to raise Rs.3,000 crore through qualified institutional placements, Mr. Dubey, said. “We have received the Reserve Bank of India approval. We are awaiting the Finance Ministry’s nod, and can launch the issue as soon as we get it,” he said, adding that the issue would have a greenshoe option.....
ICICI Bank plans to add more than 1.5 million accounts in FY15
............ the bank plans to take the branch on wheels concept that it introduced last year even further. Currently, the bank has 8 such mobile van based branches that provide banking services to a cluster of remote unbanked villages. Sabharwal, said that similar such number of branches that the bank plans to add hasn?t been decided on, but it will be significant. At the start of this year, the bank has also launched Tab banking for its rural customers to facilitate faster opening of savings account. Apart from savings account,........
Garo rebels release SBI employee
Shillong: After 17 days in captivity, State Bank of India (SBI) employee Subodh Kumar Mishra was released late on Wednesday night near Sibbari in the South Garo Hills.............
Friday, August 22, 2014
Dr Rajan and me
Rajan assures RBI will oppose legislative changes of FSLRC, says Union
.........According to a statement issued by the United Forum of Reserve Bank Officers & Employees – the association of RBI staffers, Rajan had referred to a recent public statement of deputy governor HR Khan that public debt should be continued to be managed by the RBI for which Khan has been appreciated. The meeting between top RBI brass and the unions comes after the central bank’s board asked RBI to discuss the issue of restructuring with all stakeholders............
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