Empanelment of ED

The Committee of Governor and Deputy Governors has decided to empanel Dr. (Smt.) Deepali Pant Joshi, Regional Director, Jaipur, for promotion to the post of Executive Director in the Bank.

VITALINFO extends heartiest congratulations to Dr.Smt Deepali Pant Joshi.

Here's how Indian bonds market can be revived

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or a long time there hasn't been too much development in the Indian bond market. In the period between 2005 and 2010, lots of products for the corporate bond market were introduced. Credit default swaps was introduced a year ago, but, barring interest rate swaps nothing much has come of the other products. In an interview to CNBC-TV18, V K Sharma, Executive Director, Reserve Bank of India, Neeraj Gambhir, head of fixed income Nomura and Jayesh Mehta, managing director and country treasurer at Bank of America discussed the issues that are hampering the Indian bond markets.

Below is the edited transcript of their interview with CNBC-TV18...........

Read and also watch the video...........

‘Economy of a country depends upon its sources of investment’

Mangaldai (Dec 20): The Banking sector in India has been taking efforts in order to develop the economic structure of the country through various activities. The present economy of the country depends upon its sources of investment. It is an urgent need for the improvement of economic structure in the country by creating awareness about the various policies taken by the banking sector among the masses that the people from every angle will be able to enjoy its benefit. This was said by Executive Director of Reserve Bank of India Deepak K. Mohanty while addressing a public meeting at Pakadali, a remote village at Sipajhar in Assam’s Darrang district on Saturday after inaugurating a Financial Outreach Camp. Speaking on the occasion, Mohanty stated that inflation in India has gradually come down compared to previous years. “The Reserve Bank of India is very concerned over the matter. Some latest policy carried by the RBI will help to decrease the present infiltration in the country,” he hoped........

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Cosmos Bank: RBI body offers excellence award

The Cosmos Co-Operative Bank Ltd. received NFS operational excellence Award from National Payment Corporation of India (NPCI) recently in special function held in Mumbai, for second consecutive year. NFS operational excellence Award was received by Vikrant Ponkshe Chief Executive Officer (CEO) and Joint Managing Director, Cosmos Bank from Mr Vijay Chaugh, Chief General Manager, Department of Payments & Settlement Systems- Reserve Bank of India (RBI)..............

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Banking Bill gives RBI all it wants

......Though it's debatable whether power to supersede bank boards can adequately safeguard against the problems created by banks promoted by those with interests in other industries, the finance ministry has at least shed its reluctance to bulldoze the Reserve Bank of India. The RBI can also take comfort from the ministry's decision to drop the clause allowing banks to trade in commodity futures.........

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RBI-FinMin panel likely on new bank licences: Sources

.....No date on the committee announcement, but sources say that it will be at least a three-member committee if not more. At this stage, it will basically be a Reserve Bank of India (RBI) and the finance ministry. In some ways one could call it a coordination committee. Deputy Governor of the RBI, the secretary of the department of economic affairs, Arvind Mayaram and the financial services secretary Mr. DK Mittal to be there............

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New bank licences: Waiting for Godot

.......Armed with the amended banking law, if RBI chooses to release the final guidelines in January, giving a three-month window to the aspirants to apply for licences, and takes another three months to identify the right candidates, the first licences should be handed out before Governor D.Subbaraos term ends in September. RBI should have an open mind to allow as many entities to set up banks as it finds fit and proper. It’s almost three years since the budget announcement—how long should we wait?......

Read - Mint

RBI celebrates golden jubilee in JK

......Sandip Ghose in his remarks said that opening of the RBI office in J&K in 1962 was a significant event in the economic development of this State.........

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Superlative persona

Shri Sandip Ghose has carved a niche for himself in the annals of RBI history. If any single Officer of the Bank who can be credited to have greatly contributed to the culture, values, motivation and morale of the staff members and its customers and thereby the society at large, it is none other than Shri Ghose. I had the privilege of being associated with him for some time and I must unhesitatingly say that he is one of the very few individuals in the Bank with superlative caliber, leadership and vision. Even though he could not become an ED or DG, Shri Ghose has earned a name that exalts him much above the rank. Awards are recognition of one's achievements, but more than that Shri Ghose will be welcomed, received and treated royally by majority of RBIites even after his retirement. Now, that is something many of our senior Officers may not be confident of receiving post-retirement. It is anybody's guess how many senior Officers would receive such a treatment. Though it is too early to wish him a happy retired life I may assure him that he has earned a lot of blessings and prayers from staff members and their families during his service in the Bank. I am sure that those prayers will stand him in good stead in his next innings. May God bless him and his family.

- P.E. Thomas Panicker (via e-mail)

Notes found in debris to be sent to RBI for verification

RAMGARH: Ramgarh district police has decided to send the currency notes found in the debris of a demolished house to Reserve Bank of India (RBI) for verification. The house was demolished by the district administration a couple of weeks ago to clear the land acquired for the construction of a four-lane highway in Ramgarh suburban town.........

Read - TOI

RBI extends deadline to March 13 for NBFCs to migrate to new standard cheques

........"However, it may be noted that the residual Non-CTS-2010 Standard compliant cheques that get presented in the clearing system beyond the extended period, will continue to be accepted for the clearing but will be cleared at less frequent intervals,"..........

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The economy in 2012-13: More than 50 shades of grey

........The Reserve Bank of India (RBI) continued to maintain its stance on interest rates and while it relented in April with a repo cut and followed up subsequently with some cash reserve ratio (CRR) reductions, it continued to focus on inflation. Critics felt that the RBI was not exactly sure on which inflation number to look at. At times it was headline WPI (Wholesale Price Index). It moved to core inflation and food inflation and, in a more recent policy statement, it spoke of CPI (Consumer Price Index) inflation. The clue we got was that all inflation was bad, and they would ‘all’ have to move downwards to placate the RBI..........

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SBI’s gambit

 State Bank of India (SBI) chairman Pratip Chaudhuri has requested the Reserve Bank of India (RBI) to consider lowering the minimum tenure for a fixed deposit to three days from the current seven days. That would give banks a better chance at competing with short-term and ultra short-term debt schemes of mutual funds............

Read - FE

Interest matters

.........The RBI has played its part perfectly by not yielding to the pressure from various quarters for reducing the key interest rates, but has instead reduced the Cash Reserve Ratio (CRR) from six to 4.25 per cent during the year, which has infused over Rs.75,000 crore into the banking system. Most banks have passed on the benefit to the end customer by coming out with a slew of offers including reduced interest rates.........

Read - The Hindu

Caution is still the key

..........The track record of banks controlled by big business has been patchy and it is the cosy relationship between banks and their owners that was one of the main reasons cited for bank nationalisation in 1969. As in many countries, the regulation of financial conglomerates is becoming a big problem in India. It would be prudent for the RBI to frame the rules as tightly as it can to weed out undesirable applicants .Thereafter, it is a question of exercising its regulatory powers judiciously without fear or favour.

Read - The Hindu

Strong bond market needed

The Reserve Bank of India (RBI) Deputy Governor Subir Gokarn on Saturday stressed the need for developing a vibrant corporate bond market, which is essential for financing infrastructure projects in the country and asked various regulators to work in tandem to develop this market. The need for developing an efficient corporate bond market is “driven by infrastructure financing,” said Mr. Gokarn while inaugurating an international conference on bond markets organised by the Bombay Stock Exchange (BSE) ..............


Read - The Hindu

Performance of banking sector: 2011- 12

.....Overall, in addition the strengthening their capital base, banks would need to focus on strengthening their credit appraisal and post- sanction loan monitoring system to minimize NPAs, make financial inclusion more meaningful and revisit lending to priority sectors.

Read - FPJ

Islamic finance: a perspective from India

Even as the Reserve Bank of India (RBI) is driving financial inclusion through a combination of conventional and non-conventional approaches, it’s time to take a fresh look at Islamic finance to expedite finance inclusion, especially within the 170 million Indian Muslim community. A banking professional with a three-year stint at global banks initially in the US and then at Islamic banks in Kuwait for about five years, Saif Ahmed, who is currently Managing Partner at Infinity Consultants, Bangalore, told Deccan Herald that though Islamic banking in India was ruled out by the RBI Governor D Subbarao last month, there is scope for Islamic finance in many other ways...........

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