................All that the media picked up was the adjective "schizophrenic" coming as it did from none less than the central bank chief. The two "areas of tension" are appellate oversight of regulatory decisions, and the re-engineering of the financial sector's regulatory architecture by consolidating most regulatory agencies into a combined organisation. Most debate on the FSLRC report has been on the latter. The attention of both incumbents and retired regulators has been riveted on it at the expense of a wide range of other recommendations.............
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.
Monday, June 30, 2014
Highly technical strong message - Dr.T.V.Gopalakrishnan
The article is highly technical and carries a strong message that higher regulatory capital or leverage ratio would mean involuntary monetary tightening as it were. This is true provided the balance sheet is drawn strictly as per the regulatory prescriptions and accounting standards.Is this happening in India is a major question? Fudging and window dressing of balance sheets is an established practice in India and the ratios referred to in the article cannot be given a serious weightage as such. The NIM, ROA,Capital Adequacy Ratio etc are all to a great extend only showing indicative trends and not necessarily the correct position. The NPAs are grossly underestimated and the off balance sheet items which get converted into risky assets do not seem to be getting a realistic assessment. The regulatory capital ratio exceeds the requirement level by a wide margin cannot be taken as a correct and comfortable picture. The ratio of pure equity capital in relation to all risky assets is perhaps a better assessment as regulatory capital has some components which are manipulative in nature. If pure equity capital is taken as a yard stick,the Indian banks particularly Public Sector banks cannot be said to be showing a comfortable position as increase in pure capital ie equity capital may not be proportionate to the increase in risk weighted assets.
Integrated growth - M.G.Warrier
..........While conceding that a short essay cannot be expected to cover all aspects of growth, taking the debate forward, one is tempted to add the conservation and overhaul of the available infrastructure, moving towards a higher literacy level, better and affordable healthcare facilities for all and .............
Good Money After Bad
.............If RBI is technically sound, Indian banks will be forced to reduce the growth of their balance sheets, owing to inadequate equity capital. They will be forced to take in fewer deposits and give out fewer loans. This is going to exert a drag on economic growth. Some are enamoured by an easy solution: set up a National Asset Management Co (Namco) with government money , and transfer bad assets to Namco. Once the distressed assets are out of the way , banks will get back to happy days. But there is no free lunch..............
Oil and water - Dr.Subir Gokarn
They say that oil and water don't mix. Literally true, perhaps, but, speaking metaphorically, they can be an explosive combination. The mix between the two poses the most significant risk to the Indian economy over the next few months. It threatens to reignite the drivers of inflation, the fiscal deficit and the current account deficit. At this point, it is still a risk that might abate over the next few weeks, but if this were to happen, it would be entirely.......................
Food Inflation: A Stubborn Sore in the Indian Economy
..........However measures like RBI’s quarterly household inflation expectations surveys indicate that inflation expectations have been elevated in India in the past few years to double digit figures. Thus, in this scenario it is evident that though the direct role of monetary policy to combat inflation is limited, yet monetary action in a way helps to anchor inflation expectations. Thus to deal with the scenario of persistent food inflation, coupled with the speculation of weak monsoons and the Iraq Crisis, Mr. Jaitley’s Finance Ministry has to look beyond the budget to effectively fulfill its agenda. As pointed out by Shri Deepak Mohanty, Executive Director, RBI the first and foremost step should be to curb agricultural wastage by strengthening supply chain logistics and setting up cold chains and processing facility at production areas. Secondly, there is need to..........
RBI says India to implement US foreign tax compliance act
........FATCA mandates reporting by US taxpayers about certain financial accounts and offshore assets and reporting by foreign financial institutions about accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. Indian financial institutions with overseas branches have time until December 31 to register. However, they should register for GIIN only when the formal IGA is signed after cabinet approval, the RBI added,.........
‘(V)indicting’ Dr Rajan
My View on "Change RBI Governor: Swamy to PM":
The contents of the letter from Justice B N Srikrishna forwarded to the Prime Minister have not been revealed. Quite possibly, they may be on the lines of the short article, ‘indicting’ Dr Rajan, co-authored by Strikrishna and D Swarup and published in the Economic Times last week. Though any citizen can have a view on who should be the RBI Governor and the decision on who should hold that post is taken following certain processes and procedures, the issue having been raised by someone who can keep controversies live longer than their normal ‘shelf life’, let us go a little deeper into the background of the demand made by Dr Subrahmanyam Swamy. But for the age limit of 75 years for public offices imposed by Modi, Swamy would have got some job to do. Marginally he lost as he will be completing 75 this September. The next best option was to vigorously pursue other ‘cases’ on hand. But in those cases, the opponents have lost the ‘celibrity’ status with the Election results. Hanging on to the ‘fight’ agaist Dr Rajan makes sense in this context.
- M.G.Warrier
Letter to Finance Minister for Pension to RESIGNEES
..............While extending the first and second option of pension in 1995 and 2010 the employees who had resigned from the service of the bank were not made eligible to opt for the pension. Similarly the officers who had voluntarily retired under the respective schemes of banks were also not made eligible for the pension option. However after protracted legal battle the officers who had voluntarily retired from the bank’s service were made eligible to opt for pension and accordingly they started receiving the pension. The only category of employees / officers who had resigned from the services of the banks is left out of the pension scheme. The number of such left out employees / officers is not more than 2% in the banking industry as per rough estimates. A number of cases were filed....................
Fit-to-play the second inning................
Our
two friends are retiring from the Bank’s service on June 30, 2014.
Shri
Ramachandra Shelar, Private Secretary to the PCGM, DCM joined the Bank in the
erstwhile Institutional Finance Department on March 3, 1976. After working in the various departments of
the Bank for more than 38 years, he is retiring happily. Very shy, soft spoken and down-to-earth he
is. He used to be always behind the
curtain in our PS Meets also. We wish
him a healthy and happy retired life.
Shri Milind
Khopkar, Private Secretary to the Adviser, DEAP, is a well-known RBI sportsman and
known as Nana amongst his close circle of friends as well in the All-India RBI
sportspersons. We joined the Bank almost
together in the erstwhile Agricultural Credit Department in the month of May
1977 and became very close friends since then.
Nana is a Table Tennis player and also a Team Manager of RBI All India
Table Tennis team. He loves T.T. a
lot. He is still fit to play T.T. Always cheerful
and with smiling face, he has a lot of friends in the Bank, particularly
sportspersons. He was promoted as Private Secretary recently i.e. in July
2013. After serving for almost 37
years, he is retiring happily as a fit-to-play person. We know he will devote his retired life for
T.T. We wish him a very healthy and
sporting retired life.
- Vishnu
Yadav, PS
to ED (Mahapatra)
Nephew held for ex-RBI employee’s murder
The nephew of Mehrunnisa (55), a retired RBI employee who was found dead at her home in Royapettah on Tuesday, has been nabbed on charges of her murder. Police said he gagged her to death and stole 60 sovereigns of gold and Rs. 3 lakh from her house. A part of the stolen gold has been recovered. The former banker was found dead............
Agriculture gets priority in annual credit plan for Krishnagiri district
............Collector T.P. Rajesh released the annual credit plan. The first copy was received by Ravindran, Assistant General Manager, Reserve Bank of India. Agriculture gets the major share of Rs. 2060.66 crore, which accounts for 66 per cent of the total outlay. Under investment credit for agriculture, .......
JK Bank convenes sub-committee meet of SLBC
Srinagar, June 28: J&K Bank convened meeting of 6th Sub-committee of State Level Bankers Committee for export promotion today at the Bank's Corporate Headquarters, here. The meeting was chaired by Parvez Ahmad, Executive President, J&K Bank and was also attended by Kiran Sharma General Manager RBI, Jammu, ..........
Read - Greater Kashmir
Read - Greater Kashmir
File your IT Return “ Properly”
............Most people tend to be rather happy that a man comes by the desk, picks up your Form 16 and files your return. All for Rs. 300 only! ou feel you have done your duty and as such this irritant of filing returns is off your back for the next 12 months. By filing in this manner you have possibly committed a handful of civil and criminal offences. Here’s a quick list of items around concealment of income and thus evasion of tax which are by far the most common mistakes.............
Indian Banks' Association seeks fee for withdrawal from non-home urban bank ATMs
..........."We have recommended to the Reserve Bank of India imposing a fee for withdrawing money from non-home bank ATMs in urban areas, while no fee has been proposed for transactions in semi-urban and rural areas," IBA Chief Executive Officer M V Tanksale told PTI...............
Read more at: ET
Lack of awareness,bank deposit fee hinder mWallet India growth
........Players like MMP Mobi Wallet Payment Systems (MMPL), Oxigen, Paytm and MobiKwik feel that mWallet can play a major role in not just tier II and III cities but also in rural areas. Besides, mWallet applications enable the users not just to pay their utilities and mobile bills, but also buy various services like transport, banking, etc...............
New financial inclusion plan to kick off from August 15
............The main objective of the plan will be to open 20 crore new bank accounts within a span of one year--two bank accounts for each uncovered household. The novelty this time round is that one account has to be opened for a lady member of the household. The contours of this ambitious financial inclusion plan were discussed by Financial Services Secretary G.S.Sandhu at a meeting of Indian Banks Association (IBA) in Mumbai recently, .........
Microfinance on a turnaround track
............Greater regulatory clarity, including the recognition of the Micro Finance Institutions Network as a self-regulatory organisation by the Reserve Bank of India (RBI), and a stable operating environment have helped to boost the shareholders’ confidence in the sector. “The sector is far more resilient today than what it was in the past. Greater clarity from the RBI’s guidelines, deeper penetration of credit bureaux and increasing use of technology to improve..............
Treat gold deposits as part of CRR/SLR: bankers
......................“Gold is after all a store of value and is it possible for the regulator to treat a bit of our gold deposits as CRR or SLR instead of cash or government securities?’’, asked SBI Chairperson Arundhati Bhattacharya. She was speaking at the Diamond, Gem & Jewellery Banking summit organised by Gem & Jewellery Export Promotion Council (GJEPC). CRR is the part of deposits that banks park with the central bank (Reserve Bank of India) earning no interest and is at present 4 per cent while the SLR, at 22.5 per cent, is the part of deposits that must be invested in recognised securities and assets..............
Rs 5 crore in taxes recovered from co-op banks’ account holders
......... Sources said the department had recovered the tax money from defaulters under a special drive called 'Project UCB' launched on the directions of the Reserve Bank of India. (UCB stands for urban cooperative banks.) Under 'Project UCB, which was launched four years ago, the I-T department was able to identify 1,500 defaulters and detect more than Rs 55 crore income on which tax returns were filed only after the defaulters were issued notices.......
BCSBI to put customer srvc ratings of banks in public domain
.........."Last year, the ratings were only shared with individual member banks and it was displayed on our website as a group. But from this fiscal we are planning to put the ratings of individual banks in public domain," BCSBI Chairman A C Mahajan told PTI............
'Blacklisted' Donor Agency Funds Gujarat Government Projects
.......The Reserve Bank of India (RBI) has been asked to obtain the government's permission before releasing funding from Netherlands-based Greenpeace International and Climate Works Foundation, both contributors to Greenpeace India. But did the government do due diligence on Climate Works before placing it on a watch list?...........
PayPal goes slow on India, focuses on analytics
..............Owned by eBay, PayPal moved out of India in phases because of Reserve Bank of India (RBI) regulations that treated it as a quasi-financial body since it offers services like the online wallet that allows users to store money in the online account. RBI wanted PayPal to transfer the money to banks within a pre-determined timeframe instead of holding the money in its online account. In effect, it only allowed PayPal to function as a payment gateway, limiting the scope of its platform. “RBI placed some restrictions because they didn’t want frauds to happen,”..............
Middle-class angst and the budget
...........Realistically, apart from some marginal tinkering with exemptions limits, Sec. 80 C exemptions and so on, the NDA government will be doing a service if it can revive interest in some of the existing schemes by making them investor-friendly. For instance, it can, in conjunction with the Reserve Bank of India (RBI), make the CPI-linked inflation bonds a worthwhile proposition for investors. That means the bonds should offer at least a quarterly interest (it is now payable after 10 years). It should be better ..........
Lenders feel 'trust deficit' in gems and jewellery sector
................"As of today, there is a huge trust deficit within the industry, bankers, regulators and government. This is one segment where trust is most important," Bank of Baroda's Chairman and Managing Director S S Mundra said, speaking at a gathering of the gems and jewellery industry over the weekend. His reservations included the likely diversion of funds .........
SEBI issues warning against fraudulent regulatory calls
......."It has come to the notice of the Securities and Exchange Board of India that certain unidentified persons posing as SEBI officials are advising public, to invest in insurance policy/financial products to avail bonus gifts, promotional offers or other such offers," said a public notice issued by the market regulator. "SEBI hereby urges the public to remain alert and not to fall prey to such frauds or scams perpetrated by miscreants which impersonate as employees/officers of SEBI," ..........
Sebi plans surprise inspection of 'paper' cos
.........The typical modus-operandi of such entities involves setting up of a company, followed by tall claims about their proposed business ventures. Then an exercise is undertaken to collect funds from investors, including through IPOs (Initial Public Offers) of shares and issuance of other securities. However, their business plans remain on paper only and they later divert funds collected from investors for personal gains or for other purposes, while leaving investors in lurch..........
Banks Rush to Dump Their Bad Loans, Make a Beeline for ARCs
..............Increasing stress on the loan book has been worrying bankers as it eats into their profits and limits their ability to expand the loan book. As a result, a number of banks are selling stressed loans to ARCs. Data released by the Reserve Bank of India show that for commercial banks, gross nonperforming assets (NPA) bad loans before making provisions stood at 4% of total advances in March compared with.............
RBI turns down A.P.’s request to approve loan waiver scheme
...........The Kotaiah Committee on Loan Waiver, which met RBI officials recently, also raised the re-scheduling of loans for farmers in 575 drought and cyclone affected mandals. However, no concrete assurance was given to the committee, sources said. If the RBI concedes the State government’s request, then farmers will get some relief on repayment of loans worth about Rs.12,000 crore availed by them in ...............
Ex-MLA files PIL
............The PIL would come up for hearing on Monday. Mr. Jayaprakash made the Centre, Reserve Bank of India, Indian Banks Association, Andhra Pradesh and Telangana State governments, Election Commission of India, Telugu Desam Party (TDP), and Telangana Rashtra Samithi (TRS) as respondents. The PIL says that the waiver of crop loan violates the Article 14 and 293 of the Constitution and ........
Loan repayments stop in Andhra Pradesh, Telangana
.....................“The discussions were very preliminary. RBI can examine any scheme only after the details of the scheme are available. RBI has always maintained that waivers undermine credit culture and discipline and, hence, are harmful for the health of the banking system and stability,” the RBI response said. Even before the loan waiver programme has been finalized, several borrowers have already stopped repayments in anticipation of loans being waived, said senior bankers...................
Saturday, June 28, 2014
Let’s get real about this Budget - Dr.S.S.Tarapore
............Economists should take heed that today the Planning Commission is empty, the Prime Minister’s Economic Advisory Council has not been reconstituted and the ministry of finance does not have a Chief Economic Adviser. Have we economists rendered ourselves redundant?
Higher regulatory capital for banks - V.K.Sharma
.........After the fact, regulators became wiser and thought up Basel 3 norms, which mandate a minimum leverage ratio of 3%, or a maximum leverage of 33 times! Given that even this 3% is rather low, one can imagine where banks were on this parameter before the cataclysm. Even this rather modest number seems very ambitious if one reckons the fact that even this has to be complied with only by March 2018. Significantly though, ..........
Many challenges to stability
...........The periodic publication of such reports by the RBI is in line with best practices around the world for major central banks. As in the case of previous editions, the recent FSR aims to promote awareness about vulnerabilities in the financial system. Other important objectives are to examine the resilience of the financial institutions and to encourage a debate on the development and regulation of the financial sector. Most of these objectives are also currently being examined at the highest levels of the government and the RBI, .........
Call for better monetary policy coordination at global level
...........In its 9th Financial Stability Report, the central bank said with the eventual removal of policy accommodation in the AEs, better global policy coordination could reduce unexpected spillovers and improve trust which may be essential for future coordination. RBI Governor Raghuram Rajan had underscored the importance global monetary policy coordination twice in the last two months — at the Brookings Institution in April and at a conference organised by the Bank of Japan (BoJ) in May...................
Change RBI Governor: Swamy to PM
..........In a letter to the Prime Minister, Dr. Swamy has enclosed a copy of a letter from former Supreme Court judge Justice B.N. Srikrishna, which he says is an indictment of the RBI governor for his wrong policies. He also pointed out that it sends a wrong message about the NDA government that persons like Dr. Rajan would continue to be Governor of the RBI on the grounds that he is qualified as if “there are no patriotic Indians who are at least or more qualified than him”...........
'Grave' situation - B.K.Kamath
This is with reference to Dr. TVG',s item in today's VITALINFO.
It is wrong to put the entire blame for pension revision on our Govr. and MOF. Let us introspect. and analyse the role of our overzealous HRD. I can cite innumerable instances of HRD withholding benefits extended by GOI or Govr.
Those who were in Guwahati during 1984-86 might recall how we were denied partially the benefit of special allowance of 25% of pay and halting allowance on transfer to north east. Having failed to get redressal from the then PPD, I had to take recourse to Govr. personally during the Central Board meeting at Guwahati.. The Govr. Late Mr. R. N. Malhotra, immediately on returning to CO directed to issue AC rectifying the anomaly. But the overzealous PPD made it with prospective effect. Retrospective was given only after I brought to the noticed the Govr. through my monthly DO letter. Another example of their perverse attitude is the issue of circular in 1986 or so withdrawing conveyance allowance to the Managers (now RDs) who had their quarters in the branch premises on the ridiculous argument that they don't have to commute. This circular was also withdrawn after I protested in my monthly DO letter as Manager. Those days any grievance or suggestion included in the Manager's monthly DO letters to the Govr. were immediately acted upon. I can go on ad infinitum.
Now coming to pension revision, from the mails exchanged on the subject, while conveying the un principle approval Takru had put only one condition that pension can be done only once in ten years as in case of CG employees. I don't recollect his having mentioned 2012 as the effective date. If anybody has authentic information to the contrary I may be enlightened. Under any circumstances it cannot be 2012 for the simple reason the negotiations are not making any headway. Who knows MOF may say since the last revision was in 2007 the next revision is not due till 2017. Since our last revision was done in 1997 logic and equity demand that the next revision should be as in 2007 applying the ten year criterion. Besides as the date of accord of in principle approval, 2007 scales were in force. Once this is done subsequent revisions can be coterminus with the industry revision. I would strongly urge the office bearers of the FORUM to urge upon the Govr. to immediately revise our pension to 2007 scales without further reference to MOF.so that those of us with one leg in grave peacefully die realising our decade old dream.
- B. K. Kamath, CGM (Retd)
Red Tape - M.G.Warrier
My View on "Is there any hope for Relief for RBI Retiree's? - ...":
Here Dr Gopalakrishnan’s words echo the sentiments of a couple of thousands of RBI retirees and their families whose organic links with RBI had been cut due to retirement/death of a serving employee in the early 1990’s or earlier. Majority of them are in their eighties. In one of my personal representations on the subject (NOT AS A BENEFICIARY), I had mentioned to the then Governor Dr Subbarao that making the story of Bank’s handling the pension issue post-1997 public, may affect the reputation of the organisation. It is said, a poem is best enjoyed, if the poet gives expression to one’s feelings exactly in a manner one would have done it, if one had the poet’s vision and ability to express. Dr Gopalakrishnan has written what I would have liked to write, if I had that skill. Hope, this piece pierces through the hard matter which was known in olden days as ‘RED TAPE’!
- M.G.Warrier
RBI Retirees - A Hapless Lot - P.P.Ramachandran
Please refer to the strong indictment of RBI Governor and Government of India by Dr. T.V.Gopalakrishnan. I had sent two appeals to Governor Duvvuri Subbarao on 30-3--2012 and 20--2--2013 where I had brought out vividly the pitiable condition of Retirees. I had pointed out in my first letter that " Retirees are perishing like "Flies in a Forest Fire" I gave a list of Fifty retirees who had died recently (by that date) . My second letter provided another list of 100 Departed Retirees. A fresh list beyond February 2013 will yield another 100 names. I am too much consumed by anguish to prepare this new list of Departees. All of them and the rest of the surviving retirees have given their "Blood, Toil, Tears and Sweat" for this august institution. The lists include several who have rendered outstanding service to RBI and were treated with great honour and considerable respect during their service. But the years they have spent in retirement has been one of precipitous decline into despair. Sans doubt the utterly dissatisfied souls of these 250 persons are hovering over the Corridors of Power in RBI. The Government of India has taken good care of its retirees and treated R B I retirees with contempt and disdain. Secretary after succeeding Secretary has contributed confusion and delay to the upholding of our right. With a Governor like Dr. Raghuram Rajan--a person of international repute--it would be a mere act of will by him to solve problems of Retirees and allow them to spend happily their last few days on this desolate planet. They are fast dwindling race !
- P.P.Ramachandran
Bank unions meet FM, press for early wage revision
............Jaitley assured representatives of the United Forum of Bank Unions (UFBU) Financial Services Secretary R S Sandhu would look into the matter and the settlement process expedited, union leaders said. General secretaries of nine employee unions under the UFBU were present at the meeting,........
RBI to work on July 1 during annual closing of accounts
.........."On a review and in order to facilitate the settlement of market transactions as also to aid the transactions of the general public, the Reserve Bank of India has decided that it will remain open even for public transactions on July 1, 2014,"..............
Financial inclusion in mind, RBI turns to UID
Despite the uncertainty surrounding the future of the Unique Identity (UID) project, or Aadhaar, the Reserve Bank of India (RBI) is testing a mobile-based payments system linked to this platform. Remittances through this platform skip the traditional banking channel and ..............
'Locking the stable when the horse has bolted'
My View on "Fix Aadhaar, don’t junk it":
There is some merit in fearing that Aadhaar enrollment of citizens and non-citizens has enabled the non-citizens to become citizens in a dubious manner. This is a serious issue and the UPA govt / UIDAI should have addressed it before implementing the programme. Mr Nilenkani has failed to address this issue and he was only keen on announcing numbers of cards issued and getting the credit for the speedy implementation of the programme. It is the sad reflection of the educated like Mr Nilenkani and the UPA govt in not envisaging this problem and even after knowing about it their failure to address it. It is not clear how many of those 63 crore enrolled are non-citizens. Now, attempting to rectify it is like 'locking the stable when the horse has already bolted'. It is virtually impossible to track the non-citizens from among the Aadhaar card holders. Until this issue is resolved, Aadhaar card programme should not be continued lest it would endanger the security of our country.
- S.Santhanam
WKH financial awareness camp
.........Addressing the gathering, AGM, RBI Shillong, C. Sangpu Vaiphei said that the main objective of the camp was to create awareness on financial and banking related matters so as to achieve 100% financial inclusion in the village within a short span of time. He also emphasized the benefit of having Basic Saving Bank Deposit Account,...........
Read - The Shillong Times
RBI to tighten prudential norms for 'important' banks
...............Based on their systemic importance scores, banks will be plotted into different buckets and D-SIBs will be required to have an additional common equity Tier 1 capital requirement ranging from 0.20 per cent to 0.80 per cent of the risk-weighted assets. “D-SIBs will also be subjected to differentiated supervisory requirements and higher intensity of supervision based on the risks that they pose to the financial system. The names of the banks classified as D-SIBs will be disclosed in August every year starting from 2015,”.........
Regular workshops for banks, FIs needed on credit appraisal processes: RBI
.........The abovementioned directive is part of the recommendations of the Committee to Recommend Data Format for Furnishing of Credit Information to Credit Information Companies (CICs). The RBI has now asked banks/financial institutions/ CICs to implement 11 of the recommendations. The RBI said banks/FIs should include in their credit appraisal processes/ loan policies, suitable provisions for obtaining CIRs from one or more CICs so that the credit decisions are based on information available in the system..........
Rajan seen succeeding as bad loans of banks fall from eight-year high
Bad loans in India are falling from an eight-year high in an early sign of success for central bank governor Raghuram Rajan’s push to strengthen the nation’s financial system. Non-performing debt as a proportion of total advances fell to 4% as of March 31 from 4.2% in September, which was the highest since 2005-2006, the Reserve Bank of India said in a report..........
Waiver - its deviation from normal practice
My View on "Farm loan waiver: Telangana, AP struggle for resou...":
The posture of the RBI on loans is well anticipated. Even agreeing to rescheduling should be considered a deviation from the normal practice. Agricultural loans become overdue only when the loans remain unpaid continuously for two successive crop seasons. The Banks have not put out in public domain nor did the State governments of AP and Telangana as to how many borrowers would have not repaid two successive crop loans or two installments continuously on the agricultural term loans that became coincidental to the crop loan dues. As on 30th September 2014, the NPAs in Agricultural segment of the then combined AP was just Rs.3800 crores!!
- Dr.Yerram Raju
Stringent guidelines for wilful defaulters on the cards
............The move to revisit wilful defaults comes at a time when non-performing assets (NPAs) in the banking system have seen a steep rise. According to RBI data, as of March 31 this year, gross NPAs in the banking system accounted for four per cent of gross advances, while net NPAs accounted for 2.2 per cent. Earlier, ...........
Banks should give monthly data about wilful defaulters: RBI
...............According to the new regulations, banks will have to furnish data on wilful defaulters of Rs 25 lakh and above for the quarter ended December 31, 2014, and of Rs 1 crore and above for the half year ended December 31, 2014, to credit information firms, and not to RBI.............
Sanjeev Kumar Gupta takes over as new ED at Axis Bank
.........Currently, Gupta is the President & CFO of the bank. In his new role Gupta will be involved in the bank's overall strategy and will also be responsible for the key corporate functions, the bank said............
Fewer women have relationship with banks: Usha Ananthasubramanian
.........She also spoke about the distinction between Bharatiya Mahila Bank and other public sector banks in India. Though the bank invited deposits from all genders and was open to doing business in all strata of the society, it addressed unique needs of women by providing a variety of products oriented towards helping women entrepreneurs and working women.............
Bharatiya Mahila Bank inks pact with GCCI to encourage women entrepreneurs
......As per the terms of MoU, BMB and GCCI-BWW would jointly conduct training workshops for GCCI-BWW members on the procedure for availing financial assistance. BMB will set up a simplified application process for loans of less than Rs 5 lakh by the GCCI-BWW members..............
Madhu Kapur challenges YES bank AGM resolutions
............Madhu Kapur, the second-largest shareholder of YES Bank, filed an amended suit in the high court here on Friday, challenging the resolutions passed at YES Bank's annual general meeting (AGM) on June 14. Kapur has challenged the appointment of directors and the reappointment of Rana Kapoor as managing director and chief executive......
Credit card spends & limits record an uptick
........Industry experts explain that though the number of credit card base is not increasing at a faster than expected rates the spend per card have been definitely increasing at a very rapid space. However, banks seem unfazed by this, as the idea now seems to be on increasing the spend per card than just increasing the number of cards, explain industry experts.............
Friday, June 27, 2014
Stable Government Brightens Economic Recovery Prospect: RBI
......"Going forward, with the formation of a stable government, the prospects of recovery appear bright," the RBI said in the report. "However, supply side constraints need to be addressed to complement the Reserve Bank's efforts to contain inflation expectations." Those constraints largely refer to bottlenecks in food supplies..............
Both Srikrishna, Guv are Wrong - P K BISWAS
This refers to `Why Rajan is Wrong' (ET, Jun 26). Historically, society has always shackled innovation and change through legislation. B N Srikrishna should realise that universal medicine by way of legislation does not cure all ailments. Legislative restrictions directly or indirectly curb the need to innovate and, consequently , deprive society of fresh thoughts and approaches like a river being deprived of supply of fresh water. On his part, Raghuram Rajan should realise that autonomy does not grant licence to act as one likes, and any action is always subject to scrutiny . Deeds must be evaluated in terms of motives and achievements, and actions should not be washed away in the name of independent thinking. The balance between the two approaches decides the success or failure of an institution.
- P K BISWAS Former Executive Director , RBI Mumbai
ET
- P K BISWAS Former Executive Director , RBI Mumbai
ET
Views can change with positions
My View on "Why Rajan is Wrong?":
In a fast changing world, it is futile to scare people by quoting the positions they might have taken in a different context in the previous decade. This applies to economists and politicians too. One should go by the spirit of the following observation made by Dr Rajan in his June 17 speech:
"More broadly, the FSLRC seems to have a somewhat idealistic view of the benefits of reorganization. It seems to believe that once activities are combined in an organization, synergies can be fully exploited while if they exist in separate organizations, synergies will not be exploited. I too shared such a view, but I now believe it is too extreme. Silos within a large bureaucratic regulator may prevent synergies from being exploited, while frequent inter-regulatory meetings can allow regulators to capture many of available synergies between their activities. Indeed, one particularly useful proposal by the FSLRC is to put the Financial Sector Development Council on a firmer footing. It is a good venue for inter-regulatory cooperation, and its benefits are further augmented by personal interactions."
- M.G.Warrier
Beyond Rights and Wrongs
Raghuram Rajan, in his June 17 speech, had focused only on RBI, but `Why Rajan is Wrong' has used Sebi experiences and sanctity of “rule of law“ to conclude that he is wrong. The statement, “We reject Rajan's claim that the regulator must continue to have discretionary powers and should not be answerable,“ doesn't go well with Rajan's observation, “Am I arguing that no checks and balances are needed? Certainly not! But there are already checks and balances in place, including re view by con stitutional courts like high courts through writ petitions. Senior officers of the regulator are appointed, and can be removed, by the government. The FSLRC recommends an annual report to Parliament, as well as regular discussions with parliamentarians. These are good suggestions, which would add to oversight.“ The FSLRC report had dissenting notes from members K J Udeshi, P J Nayak and Y H Malegam. In effect, other than the chairman and the member-secretary , only two members had gone with the FSLRC report in its entirety .
- M G WARRIER Mumbai
- M G WARRIER Mumbai
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Is there any hope for Relief for RBI Retiree's? - Dr.T.V.Gopalakrishnan
.....RBI has the money and the authority to grant the updation but it prefers to remain silent and dance to the tune of the MoF for reasons unknown to the retirees but perhaps well known only to the top management. After the departure of Dr Jalan, two Governors have come and gone and they had very diplomatically side tracked the issue ..........
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Financial inclusion seminar on Jun 27
..........The workshop will revolve around participative panel discussions on the various aspects of the importance and need of Financial Inclusion, challenges and way forward, followed by a one-to-one interaction between bankers and various stakeholders. Through this release ICC welcomes delegates for participation. Dr. Jayanta Madhab, Ex- Economic & Financial Adviser to Chief Minister, Govt. of Assam will address as the Chief Guest while Guest of Honour Shri. MTM Guite, AGM-Financial Literacy Cell, RBI will speak on Reserve Bank of India regulations. Special Address on Financial Inclusion in North East – Perspective of NABARD will be delivered by Mr. A.P. Sandilya, Chief General Manager, NABARD,...............
Financial Literacy in Rural Banking
...........The conception of financial literacy, as reflected in the Reserve Bank of India's Financial Literacy Guide, is packed with stereotypes of the poor as ignorant and in need of moral lessons on savings, consumption and credit. Financial literacy has to be positioned within a broader conceptual view of the financial system, so as to become a tool to raise critical consciousness and equip people to respond to the challenges posed by the financial sector. Further, financial literacy material must evolve from below, such that lives of the common people are organically a part of it. This paper also hints that........................
Spl Teams Rush to AP to Nab Ex-RBI Staff's Killer
CHENNAI: The city police, probing the murder of an ex-RBI staff, on Wednesday rushed a team to Kadapa in Andhra Pradesh based on specific input about the killers’ location. Meharunisha (55) was found dead by her husband Ali Mohammed Sayeed around 2.15 pm on Tuesday on the II floor of their residence. The ground and first floors of the house in Triplicane were being used to run a printing press business.............
Hike tax exemption on bank deposit interest to Rs 25K: AIBEA
Bank employees body AIBEA has demanded an increase in the exemption of tax on interest earned on bank deposits to Rs 25,000 from Rs 10,000 at present from the government in its maiden Budget next month. The limit of Rs 10,000 was fixed about a decade ago and hence needs to be revised, because bank deposits are the only source of income for senior citizens and retired employees, All India Bank Employees’ Association (AIBEA) General Secretary C H Venkatachalam told PTI......
Allahabad Bank plans to hire 1,100 people this fiscal
..While 600-odd recruitments would be made at the officer level; the remaining 500 would be clerical staff, Rakesh Sethi, Chairman and Managing Director, Allahabad Bank, said........
IBPS recruitment poses language hurdle to banks
........Appointment of people who speak languages other than Kannada to Karnataka, has created a road block in communication between farmers and bank officials. Earlier, the selection of bank employees who interacted with the agricultural community was done through campus interviews. Now, they are selected through the IBPS examinations held all over the country. This issue was highlighted at ......
SBI's Budget wishlist: Target job creation, MSMEs, infra
........If you look at the agriculture side also, if you look at the reports that have come from Reserve Bank of India (RBI) and otherwise, in agriculture we have been told in India the problem is fragmented land holding. Now, that is not really something that we should take as a given because if you consider China, they too have fragmented land holding then how is it that their productivity is from 6 to 190 percent more?...........
Relief for Customers In Credit Card Fraud
........Bank customers have often disputed transactions shown on their credit card bills and declined to pay. This has resulted in banks levying late-payment penalty. The new rule is announced by the Banking Cdes and Standard Board of India (BCSBI) that works to protect customer rights. It makes banks responsible to find evidence that the customer had authorised and was responsible for the disputed transactions.........
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