..........While work in the Reserve Bank of India (RBI), in the latter part of the 1980s, by A. Seshan, C. Rangarajan and N. D. Jadhav highlighted the possibility of explosion of internal public debt, no specific scheme on debt repayment was worked out. The RBI attempted some tentative work in the late 1980s to evolve a scheme for debt repayment, but it could not find a satisfactory resolution. Work in the RBI continued in the first half of the 1990s and in 1996 the RBI came up with a comprehensive scheme of a Consolidated Sinking Fund (CSF) which would, over time, become self-sustaining...............
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.
Friday, May 31, 2013
India’s Human Cash Machines
.........At a conference Tuesday of 90 banking correspondents and banks, organized by the Reserve Bank of India in Pune, correspondents said that they hadn’t been trained to use the hand-held devices or how to sell banking products. But the most frequent complaint among them was a delay in salary payments. The meeting was an attempt to understand what’s happening at the grassroots level and improve the banking correspondent system, Reserve Bank of India Governor Duvvuri Subbarao, said................
Mann Deshi Bank opens first branch in Pune
After the grand success of chamber of commerce, bank and business school for rural women entrepreneurs Mann Deshi Bank has now started its operations in urban areas by opening first branch Pune. The branch will help Mann Deshi to scale and expand its operations. This will be the bank's seventh branch with other six branches in remote areas of Maharashtra like Mhaswad, Dahiwadi, Waduj, Godavale, Lonand and Satara. Most importantly, Mann Deshi have started operations where other banks were already present but had refused to accommodate lower income group individuals as their customers..........
Reserve Bank Staff Quarters School has achieved 100% result in the CBSE 10 std Examination
Info courtesy - Shri S.Venugopalan (EXRBITES Group), Chennai (Ph: +91 44 42151321)
Manmohan Singh: A legacy of records
......Then prime minister P.V. Narasimha Rao, who already had a blueprint for reforms (inherited from the outgoing regime led by Chandra Shekhar), first turned to I.G. Patel, who declined the job on account of failing health. Patel recommended Singh. The rest is history. The dramatic turnaround of the economy, together with Singh’s understated demeanour, made him the darling of the middle class and the Congress party............
UFBU MISERABLY FAILS IN THE FIRST ROUND ITSELF
......Vide Circular No 7 dated 22/04/2013, UFBU informed the cadre that a meeting with IBA has taken place wherein IBA informed that the total establishment expenditure / wage bill of the public sector banks as on 31/03/2012 is Rs 56,292 crores which will be the basis of negotiations. Thus, assuming that UFBU is able to extract 20% wage hike, the total benefit to workmen and officers will be Rs 11258 crores or about Rs 1,000 crores per month. Considering that the rate of interest on FDs for staff is around 9%, the bankers are losing Rs 90 crores per month in the shape of interest alone.............
Read........
My View on 'Total overhaul of existing financial system needed'
There could hardly be any dispute over Justice Srikrishna’s view expressed as under:
“Therefore, you need something that is drastic, something that is total overhaul of the existing financial system," But, FSLRC missed the opportunity to do this. Going round and round the idea of destabilizing the central bank (RBI) which is the only institution functioning satisfactorily and cutting and pasting recent innovations elsewhere brought about in different contexts and refusing to do the strenuous task of looking at India-specific issues and country-specific solutions for them, the Commission ended up where it started the work !
- M.G.Warrier
RBI asks banks to expand internet, mobile banking reach
........."We are going through an era of technological revolution," said RBI Deputy Governor H R Khan at a workshop on e-Banking organised by Bank of India here on Thursday. "And mobile and internet penetration is on the rise in the country. Therefore, banks need to formulate strategies to popularize mobile and internet based banking services." Khan asked banks to also focus on elderly and pensioners besides urban clientele...............
'RBI for more White Label ATMs in state'
.........The move is aimed at encouraging personal banking among people, according to RBI's Deputy Governor H R Khan, who was in the city to address the awareness programme on electronic banking, called e-Baat, organized by Bank of India (BOI). Khan said the RBI's aim is to give to the people the privilege of "anytime, anywhere banking" but the only requirement is that one should have a mobile phone. This facility, according to Khan, will make banking a queue-less procedure.............
Bank Customers can ask for CCTV Recording of ATM Transactions in India
..........."At present, there is no provision for the complainant to request for the CCTV / Camera Images in the Complaint Form for ATM disputed transactions. In this regard, the Member Banks are advised to make a provision in the "Customer Complaint Form" for the complainant to raise a request for the CCTV/Camera Images if the customer so desires at the time of submitting the Complaint Form to the Issuing Bank".........
Acquiring Banks to Provide Details of Three Transactions before and after Failed ATM Transaction
.....The circular states that as per the requirement of Customer Service Department of Reserve Bank of India, some changes are necessitated in the Representment related process. At the time of Representment (time of responding to the complaint), the Acquiring Bank must provide three transactions before and three transactions after the Disputed Transaction in the EJ / JP Logs......
RBI to focus on containing inflation, CAD: Subbarao
......"Growth is significantly moderated, inflation is somewhat off its peak but there are several upside risk factors, the balance of payments is under stress and investments have to pick up," ...........
Some truth in Cobrapost expose, will take action: D Subbarao, RBI
......."We have done study of those banks, investigated them ... We have done a larger study of those banks and we have issued notices to the bank managements and shall take appropriate actions,"...............
Banks opened accounts for different customers with same PAN: RBI report
....The study has also revealed a nexus between co-operative banks and commercial banks. Central Bank, for instance, opened 200 accounts of the Sahara Credit Cooperative Society in different branches and on many occasions, high-value deposits were made into these accounts. The RBI has also found that a few banks gave employees incentives to encourage the sale of third party products like insurance and mutual funds, sale of gold coins with the incentives taking the form of foreign training or white goods...........
Subbarao's grim prognosis sends rupee tumbling to 10-month low
...........The Governor said, "Growth is significantly moderated, inflation is somewhat off its peak but there are several upside risk factors, the balance of payments is under stress and investments have to pick up." The comments sent the rupee tumbling by 21 paise to end at new 10-month low of 56.38 against the dollar. Coming just a day before the government releases the data for the fourth quarter GDP for 2012-13 it was an affirmation that the numbers would be dismal...............
We can’t take soft prices for granted, says Subbarao
............Reserve Bank of India Governor D. Subbarao, on Thursday, warned of upside risks to inflation and expressed worry over the high current account deficit, denting hopes for rate cuts and sending bond yields to a two-week high and the rupee to a ten-month low.........
When the RBI chief got 'pink slips'
The last thing RBI Governor Duvvuri Subbarao, who came to deliver a lecture on "India's Macroeconomic Challenges — RBI perspective" in Ahmedabad, expected was some 50 pink slips in a matter of 10 minutes after his talk at the Ahmedabad Management Association (AMA) building. But the pink slips were in fact questions posed by the audience after his speech on Thursday. The significance of the pink slip remark came to a pass as the RBI chief started by recalling that within days of his appointment to the RBI top post in August 2008, a series of economic downturns took place, starting with the collapse of Lehmann Brothers in USA in September that year signalling the start of the global recession. Even as the motley audience consisting of bankers, businessmen and students tittered at this piece of information, he added that no sooner had the economic situation in India bounced back, he was again reinstated in the Governor's post for two more years in August 2011 after which the country is now battling another economic crisis. As the room drowned in raucous laughter to this pronouncement, D Subbarao delivered the final punch as he said, "Now I don't have to tell you when the economic situation here is going to improve, as you can already guess!"
India can still grow at 7-8% or even more: Subbarao
......Enumerating the challenges faced by the Indian economy, Reserve Bank of India (RBI) governor Duvvuri Subbarao today said the ‘India Growth Story’ was still intact. Speaking at the 12th RL Sanghvi Endowment AMA Lecture on Economics here, he added that India could still grow by seven-eight per cent or even in double digits annually.......
Apex bank to wait for banks to "revert and rectify" violations
The Reserve Bank of India will wait for banks to "revert and rectify" violations brought to light in a recent study authorized by it and only take action in case the errors lead to serious repercussions. According to top RBI sources, the know-your-customer and other violations committed by as many as 30 private and state-owned banks - as indicated by a report "inspected" by the apex bank - will attract action only if the errors went beyond "transactional" lapses into something more serious ..........
RBI sets stiff norm for debt recast
......These steps were suggested by the Mahapatra committee of loan restructuring which the central bank has now accepted and implemented despite banks having reservation on the recommendations on the ground that the economy is passing through difficult times which has increased bad loans in the banking sector........
DCT will not lead to misuse of money: Montek
........Asked about the study highlighting problems faced by beneficiaries in opening bank accounts, he replied, "RBI has issued guidelines that the banks will open no frills account... opening a bank account and transacting in a bank will not be a problem (in coming days)." According to Ahluwalia, the direct benefit transfer scheme will be a game changer and a very important instrument for the financial inclusion of people of the country..............
I-bankers see opportunity in downturn
...........As the investment banking sector goes through a churn in the downturn, redundancies and job losses are becoming the norm. Several banks have pared their business, bringing down the curtains on the career of many............
RBI penalizes Bhilwara Mahila Urban Co-op Bank
Now it is Mahila Urban Cooperative Bank’s turn. So would it seem. The Reserve Bank of India has imposed a monetary penalty on the Bhilwara Mahila Urban Co-operative Bank Limited, Bhilwara............
The Break Out Formula
........The RBI deregulation provided wind to its sail but what has worked for Yes bank is its "knowledge banking", approach with a
focus on sectors like Food and Agribusiness, Engineering,
Infrastructure & Logistics, TMT (Technology, Media & Telecom)
and Healthcare. This well researched approach to sunrise sectors has
helped Yes Bank obtain domain expertise, and hence, through knowledge
arbitrage, the bank has customised solutions as per the client needs.
"It has also helped in managing risk in a better way, which
consequently led to creating a niche for itself through knowledge
banking.........
HDFC Bank's Puri continues to be highest paid Indian bank CEO
.....As per the Reserve Bank of India's (RBI) guidelines on compensation released in January, 2012 the performance bonus of private banks' chiefs is capped at 70 per cent of their fixed pay. Also, if the amount of performance bonus is more than 50 per cent of the chief executive's fixed pay, the bonus payment needs to be deferred over a period of time......
'State Bank approached to finance Vizhinjam Project'
....Chaudhuri said that at present the State Bank was supporting all ventures in Kerala as the majority of the deposits are from the state. On funding the flyovers in the state, he said that it depended on the funding pattern. Even if the Reserve Bank of India (RBI) cuts the repo rate, the interest rate will not come down. To make the Cash Reserve Ratio (CRR) more effective, there should be a system to provide interest rate by RBI for CRR........
Large MFIs may get to keep 12% margin cap this financial year
...........The Reserve Bank of India (RBI) might allow large microfinance institutions, or MFIs (with a loan book more than Rs 100 crore) to keep a margin cap of 12 per cent for this financial year. It is expected RBI would issue a notification in this regard soon...........
No fast rebound for India’s moribund economy
..........“It is imperative that both the government and the RBI get their acts together,” said Jyotinder Kaur, an economist with HDFC Bank, who believes the Reserve Bank of India (RBI) should take action to get money flowing into the real economy..........
Govt hopes inflation-linked bonds can curb gold buys
...............Ultimately, the government hopes the linkers will provide some alternative to gold, reducing demand for imports of the precious metal that have helped push India's current account deficit to worryingly high levels. India is looking at these auctions to professional investors as a way to settle on the right pricing before directly selling them to local households later this year............
Gold sales by banks: High and inconsistent rates and different KYC rules
............We also noticed that there is no uniformity amongst banks when it comes to customer verification. This makes is easier to target some banks to launder money, and then sell the gold later to someone else. RBI does not permit banks to buy back gold. Some banks use KYC while some accept PAN cards and that too at different values...............
Indians plan sweet revenge on Govt’s move to curb gold
If the Indian government was horrified with its people’s love for gold in the past, it has reason to be more horrified now. That is because a sharp fall in gold prices is holding up the demand for gold...........
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