RBI organizes customer service meet

Regional Director, Reserve Bank of India, Jammu and Kashmir, K K Saraf today exhorted the authorized dealers in J&K to educate their customers about various facilities available to exporters, importers, travelers, businessmen, tourists, etc. without contravening the provisions of the Foreign Exchange Management Act (FEMA), 1999.  He was addressing a Customer Service Meeting .........

Read - Greater Kashmir

The RBI gets it right

........As is well known, Mr Subbarao was not exactly popular with the Union finance ministry and the government, which was wide open to the idea of corporate houses getting bank licences. He was widely seen to be stalling the process and retired before the licences could be issued. The new RBI Governor, Raghuram Rajan, went one better..........

Read - BS

Alternate financial mechanism needed for small traders: CAIT

........A CAIT delegation recently met RBI Executive Director Deepali Pant Joshi and submitted a detailed memorandum demanding strengthening of cooperative bank system and non-banking finance companies (NBFCs), which are already primarily catering to the financial needs of small traders, the apex body of the trading community said in a statement. In its memorandum, the CAIT regretted that the core banking sector has failed to provide........

Read | Business Standard

RBI is mature enough

My View on  "Raghuram Rajan may face showdown if Narendra Modi ...": 

Unlike several other top posts which had become controversial or had seen changes during political transitions in New Delhi, RBI Governor’s position did receive continuity and the incumbents never found it much difficult to adjust with the changes in policy perspectives during such transitions. GOI and Dr Raghuram Rajan were well aware about Elections 2014 when the offer and acceptance of the appointment were made in August 2013. Dr Rajan has also made it clear that he does not expect any problem in adjustiong with a change of guard in New Delhi. The present discussion in the media is perhaps fuelled by certain interests unhappy with the stability in approach to monetary policy and financial sector regulation RBI has been able to infuse despite political pressures. RBI is mature enough to survive such gossips. This observation is being made, despite the fact that the RBI Governor and his deputies do not enjoy any ‘job security’ similar to those enjoyed by those holding similar positions in other statutory bodies or judiciary. 

- M G Warrier 

Another dynastic legacy

..............As long as banks remain under dominant government ownership, politicians desperate for re-election will be tempted to go down this path, ignoring the long-term damage to the nation. As India looks set to end the dominance of the Nehru-Gandhi dynasty in politics, it is time to end the legacy of government dominance of the banking sector bequeathed to the country by the former prime minister Indira Gandhi. Otherwise, the broken credit transmission mechanism in a country that is still very much dependent...........

Read - Mint

Finmin turns down RBI's proposal to divide CMD's post in PSBs

.........Rejecting the RBI's proposal to restructure the board of PSU banks, the Finance Ministry in a communication to RBI Governor Raghuram Rajan said "the board is headed by CMD (but that) does not mean that CMD enjoys absolute power and the board of the bank is subservient to CMD".............

Read | Business Standard

Anil Kumar Yadav obtains first class Masters Degree in Nepali

VITALINFO  on behalf of all its readers extends heartiest congratulations to Shri Yadav.

VITALINFO : come back - welcome back !! - Prakash Bakshi

My View on VITALINFO - The mythical Phoenix

Dear Mangesh ji

Its once again pleasant mornings after an unscheduled break - and thank you so much for coming back. Having seen many re-locations I can understand the pangs in even getting back to usual 'official' work, but to come back with such a 'totally voluntary service' lifts you far above common bankers that we are. Thanks, and welcome back.

- Prakash Bakshi

Really happy to see you back again. This reflects on your commitment, involvement, love for learning  helping others to learn and making the circle of friends bigger and bigger. This revival of life for Vital Information adds more value  as if  some value  lost is regained. Hope the chain will not be broken and you will continue to serve and satisfy yourself and others as well. May God bless you Always and in All Ways. With regards, 

- Dr.T.V.Gopalakrishnan

K(now) Y(our) C(haos)

My View on "KYC norms need a relook: RBI chief": 

Perhaps many are unaware that the SBI no longer holds the AADHAR in the list of eligible Ids for opening a bank account. They are now asking their prospective clients to get the ration card, telephone bill, electricity bill etc. In fact, a couple of years in a discussion on KYC, I narrated the experience of a retired CGM of RBI with the SBI when he could not find acceptance of the IDs for his wife as a joint account holder! It was scripted in an article in the HBL both by me and the victim - Dr TV Gopalakrishnan. Bank branches have their own views of looking at KYC with due endorsement from their bosses. 

- Yerram Raju

When the ex-Governor of RBI himself has faced difficulties in opening a bank account, less said is better about the blind application of the guidelines on KYC norms for opening of bank accounts and carrying out of financial transactions ! 

- Rajappan Nair

Obituary

I regret to inform the sad demise of Shri Pious Miranda on 5th April 2014 at Andheri, Mumbai. He had retired as Assistant Manager from erstwhile Byculla Office. He was aged 73. He was a very helpful and genial person, and had a smiling face. May his soul rest in peace.

- S.Viswanathan

GS Sandhu - Making a propitious start

............his challenge will be to use this goodwill to sort out the current mess in the banking sector without ruffling too many feathers. His appointment has come at a time when the banking sector is reeling under huge bad loans and the Reserve Bank of India is looking at bringing in more players in the sector by issuing licences on tap. "We will try to put in place improved systems so that there is better corporate governance and non-performing assets are reduced. All other issues that are being discussed will be carried forward. We will see what more we can do to make banks contribute more to the growth of the economy," ........

Read - BS

NABARD's Untenable Step on Primary Agricultural Credit Societies

........It is this stance of NABARD, more than the BC concept, which stands exposed for its legal and constitutional impropriety. RBI/NABARD may enjoy certain privileges over state governments on regulatory matters, especially pertaining to cooperative banks. The rights of the states and the cooperatives, however, cannot be ignored when it comes to issues that affect the basic character of the cooperatives as member-owned bodies. Even the transparency of the process adopted by NABARD is under a cloud as it has not ............

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Playing is paying, a career in sports

..........Footballer and RBI employee, Rolfred Coutinho agrees, "Iam glad to be a part of this prestigious institution. It's like killing two birds with one stone as Iam able to follow my dream and at the sametime create a secure future."

Read - DNA

KC Land & Fin to meet RBI officials for banking permit

.............As reported in certain sections of media that RBI believes that differentiated banking licence will be more appropriate for some of the private players aspiring to set up banks in the country. Therefore, granting licence to operate on regional level also suits us.......................

Read | Business Standard

Soon, technology that can ‘dissolve’ stolen credit cards

..............The materials are special polymers designed to quickly and completely melt away when a trigger is activated. It’s a fairly new field of study and Montazami said he’s making progress. The research team he’s leading, for example, is developing degradable polymer composite materials that are suitable platforms for electronic components. ...........

Read - FPJ

RBI asks banks to make credit card interest payment easier for users

........This is the first time the regulator has addressed the issue of credit card charges and this follows RBI’s recent instructions on waiver of pre-payment charges on floating-rate consumer loans and removal of penalty for non-maintenance of minimum balance in savings deposit accounts.......

Read - BS

Banks asked to make credit card charges "reasonable"

........."RBI has told us not to levy finance charges on outstanding credit card balances till the next billing date. So far, cardholders had to pay interest on credit card dues at the expiry of the due date. But this will offer them a few more interest free days. We are revising our practice accordingly," ..................

Read | Business Standard

High Court fiat to RBI on Amanath Bank

........Assistant Solicitor General Kalyan Basavaraj in his memo to the Court submitted that the Union department of Finance had communicated that it had no objection for transfer of assets and liabilities of Amanath bank to Canara bank. “It is for the RBI to take action in this regard by following the Banking Regulation Act, 1949,” .............

Read - Deccan Herald

India needs a competitive banking industry

........What this means is that the question of allowing new entities into the Indian banking market is intimately linked with the larger issue of banking structure. India has traditionally encouraged a range of banking institutions to provide credit to a growing economy even while commercial banks were at the centre of the strategy. Much has changed since then. The old development banks offering project finance have disappeared while...............

Read - Mint

IDFC’s Lall says to start banking with branches in India and in Bharat

............As an NBFC (non-banking financial company), we have been allowed to provide only narrow suite of products to these clients. As we become a bank, we will have the opportunity to provide a range of products to our existing clients such as cash management, foreign exchange services etc. So this will diversify our sources of revenue, reduce our dependence on term lending, and as we seek to develop our depository franchise we will necessarily have to engage with retail clients. Financial inclusion will also be a focus area for us...........

Read - FPJ