Heartiest congratulations...........

Heartiest congratulations from VITALINFO on being selected for promotion to Gr.F 

Grade 'E' to ‘F’  Panel Year 2013 

Shri  P.C. Sahoo

Smt. Madhavi Sharma

Shri  P. Vijaykumar

Smt. Parvathy Sundaram

Shri  R.L. Das

Shri  B.K. Mishra

Shri  Arun Pasricha

Shri  Shekar Bhatnagar

Shri  B.B. Sangma

Shri  E.E. Karthak

Shri  M.K. Verma

Shri  A.B. Balwatkar

Shri  P. Shyam Sunder 

For safeguards in bank licensing - S.S.Tarapore

....The RBI has had enough time to mull over the guidelines and should be in position to issue the final guidelines before the Budget of February 2013, and the actual process of receiving applications could start from April 1, 2013. By April 1, 2013, the RBI should set up a High Powered Bank Licencing Screening Committee. Ideally, the Screening Committee should be a Panel of former Governors who would bring to the Table rich experience of dealing with an ordeal by fire. Such a Screening Committee would be better able to handle the political economy stresses and strains.......

Red - HBL

Is Chidambaram's plan to create big banks feasible?

...........The two biggest challenges it can face in its endeavour are technology and human resources management. Bank employees and their unions fear there might be cultural issues when two banks are brought together and overlapping branches would have to be closed down, leading to large-scale job losses. Employees of small banks fear they might not be treated favourably under the new management and could be asked to take transfers or forgo promotions. Though salaries and perks among state-run banks have seen some harmonisation over the past few years, some variations can still be found among different banks. Finding the right job for top management of small banks in the merged entity is also an issue. “Consolidation will affect the nation, customers as well as bank employees. They are talking about benefit of scale but two plus two is not four always...............

Read - BS

Gaming the system

............... Among the important lessons to be learnt by regulators from this episode is that any loophole that allows a group like Sahara to shop around for a favourable regulator needs to be plugged. Secondly, regulators like the RBI and SEBI need to exchange information with one another. With all that, it will still require a lot of political will to check the Sahara Pariwar and its imitators.

Read - The Hindu

RBI may release final guidelines in January

PAVING THE WAY

After issuing the final norms, RBI is expected to set up an external committee to screen applications of prospective entrants   It might take six to 12 months for the banking regulator to complete the screening process and issue the first set of licences   RBI is expected to give one-year time to the entity, after awarding the licence, to open the first branch

Read - BS

Dishonouring a cancelled draft is no crime

....A demand draft, unlike a cheque, is issued by a bank for consideration already received and hence cannot possibly be dishonoured on the ground of lack of funds; but a bank cannot be compelled to honour the draft in the face of a cancellation instruction by the person who got it issued from the bank.....

Read - HBL

Opening of bank account made easy

The Reserve Bank of India (RBI) has said in a recent communication that banks should not insist on introduction from an existing customer for opening of bank account. This move will make opening of accounts easy for customers as they do not have to look out for someone having an account in the bank already to introduce them, says J. Vanangamudi, the district Lead Bank Manager..........

Read - The Hindu

Financially Inclusive Society: The key is “Adoption“

......Be it proliferation of ATMs or Cash Transfers, the policy framework of the Government or RBI is to encourage electronic payment systems and to move towards a less cash/cash less society. However, what it translates on the ground is that it only encourages people to use cash for all their payment needs. The larger point here is: what will ensure that people use less of cash and more of electronic payment systems (not just cards but wallets, Mobile/NFC-enabled payment systems) for their payment needs. ............

Read..........

AP microfinance crisis helped Bandhan grow by over 50%

.....You are planning to apply for a banking licence. How do you see this adding to your business?

There are four dimensions to financial inclusion — savings, credit, insurance and remittance. Currently, through Bandhan we are catering only to the credit side. A banking licence will help us address the other three areas.................

Read - HBL

RBI norms may dent NBFC profit, says Icra

The proposed guidelines by the Reserve Bank of India (RBI) for non-banking finance companies (NBFCs) are likely to impact the profitability of these entities by 15-20 basis points (0.15-0.20 per cent) in the medium-term, according to a research report by rating agency Icra...........

Read - BS

Bankers asked to step up lending

Collector C. Sudharsan Reddy urged bankers to step up lending targets to the priority sector. Addressing a meeting of bankers here, on Thursday, he said pending loans during the rabi season could be cleared immediately. He was particular about extending financial support to the beneficiaries covered by SC Corporation, BC Corporation, Minority Corporation and Self-Help Groups......

Read - The Hindu

RBI firm, talks tough on Nabard warehousing refinance

The Reserve Bank of India has asked the National Bank for Agricultural and Rural Development (Nabard) to come clean on its controversial warehousing refinance scheme. In a communication last week, the RBI has talked tough, asking Nabard to comply with regulatory directions in this regard......

Read - HBL

Activists approach RBI against HSBC on black money, hawala allegations

Two activists from Lucknow have urged the RBI Governor to enquire into the allegations and cancel the licence of HSBC, if found true. 

Lucknow-based activists Amitabh Thakur and Dr Nutan Thakur have approached the Reserve Bank of India (RBI) with regard to allegations of facilitating deposit of black money in Switzerland and hawala transactions by Hong Kong and Shanghai Banking Corporation (HSBC). The activists said that they wrote to RBI Governor D Subbarao after HSBC denied all the allegations in reply to their earlier complaint to the central bank..........

Read - Moneylife

Draft 12th Plan document springs few surprises

...........In a dubious reprieve to States, the Plan panel goes on to state “the commercial banks will have to bear part of the burden by restructuring the loans and the RBI may have to allow some regulatory forbearance relieving the banks of treating the restructured loans as non-performing assets (NPAs) and making suitable provisions for them”. This is nothing but robbing Peter to pay Paul.........

Read - HBL

"AP, WB behind all-India GDP Growth"

..........While the RBI study said that revenue surplus would “enable a reduction in the GFD-GDP ratio” and that 26 of the 28 states met the ratio set by the thirteenth finance commission, ASSOCHAM believed that the tendency would be for these surpluses to be squandered in popularity contests. ............

Read........