RBI Governor Dr.Raghuram Rajan visits Chennai

Dr.Raghuram Rajan, Governor of RBI has arrived at Chennai today in connection with the Central Board Meeting  to be held on 10th July 2014.

9th July 2014 : Today morning at 9.00 a.m. Dr.Raghuram Rajan has inaugurated the newly established " Financial Gallery" at RBI, Chennai (at the location of the erstwhile Air-conditioning Plant in Ground floor). The gallery consists of beautiful paintings, pictures and wall papers and other exhibits of Coins, Notes, pictures depicting RBI's History, its services to the Nation etc. in a beautifully constructed Hall with glittering illumination and interiors. This will be made open to public viewing on all the days. 

The Governor gave audience this morning in separate meetings to the Executive Committee Members of the Forum of Retired Employees of RBI, Chennai and the United Forum of Officers and Employees of RBI. Sri R.Gandhi, Dy.Governor, Dr.Sadakkadulla, Regional Director (TN) and other officials were also present in the meeting.

The Executive Committee of the Forum of Retired Employees  felicitated Dr.Raghuram Rajan on his assuming office as Governor of RBI. They honoured him with a shawl and presented a memento. While thanking the Governor for all the efforts he has taken after his assuming office for getting Government's approval to restore Updation of Pension, the Forum requested him to use his good offices for implementation thereof without further loss of time. They also requested him to grant enhancement of Ex-gratia amount to the Pre-1986 retirees which was stagnant for a long period. They impressed upon the Governor that this issue can be settled within the powers of the Governor. The Forum has submitted a written appeal to Governor in support of  these requests. Sri T.G.Nair, Gen.Secretary of All India Retirees Assocation from Mumbai also joined the delegation.

The Governor was receptive and gave a patient hearing. He expressed his happiness over meeting the retirees. Regarding the ex-gratia enhancement he said he would look into the matter and do the needful.  Regarding the Pension updation he admitted  that the process is taking time despite best efforts. He assured that he will do everything to ensure a fair settlement of the issue at the earliest.

It is understood that during their meeting the United Forum of Officers and employees of RBI took objection to the Bank's unilateral decisions in respect of the re-organisation of the Bank's functions. The United Forum also demanded that one or two of Central Office departments  may be brought to Chennai. They also demanded that updation of pension  and one more option for pension should be implemented early. During the discussion they also insisted  that adequate care should be taken to see that the interest of the serving employees is not compromised. 

The Governor replied to the United Forum that the Bank will take the Unions into confidence while deciding about re-organising the functions. The Governor said he will consider the suggestion to de-centralise some of the Central Office functions by shifting the departments to its various offices. The Governor's reply in respect of the demand for updation of pension was the same as given to the retirees' forum. 

- Chandraiah

RBI board to take up COO issue on Thursday

...........It is learnt the proposal to have a COO with a DG's rank was first taken up during a meeting of a committee of the central board, which generally meets every Wednesday. The latter suggested this be taken up at a board meeting of the central bank, where Union government nominees are also present. The economic affairs secretary and financial services secretary are nominated as board members. It is, however, not clear if RBI will seek the board's approval or only inform it. The increase in the number of DGs, and also EDs, are part of a personnel restructuring the central bank is currently undertaking. RBI plans to increase the number of EDs from nine at present to 11...........

Read | Business Standard

Obituary

I deeply regret to advise you of the  sad demise on 9th July 2014 in Trivandrum of Shri.C.Vijayan Nair. He retired as Executive Director. Shri Nair was born on October 16, 1926 and joined RBI as a  Rural Credit Officer  in October 1959. He had served for a number of years in  ACD  and held the post of Calcutta Manager. He retired on March 31,1986 as ED in charge of Administration. Shri Nair was for a number of years President of  RBI Officers Association and made notable contributions to Staff welfare. He was a very gregarious and genial personality and leaves behind a large circle of friends and admirers. He was not married. We pray that his soul rests in peace. 

- P.P.Ramachandran.

Slice of history - Retirement of CVN

A floral tribute from the Governor, for a job well done.

On March 31, 1986, Shri C.V.Nair, Executive Director, retired after a 26-year-long career which began in October 1959 when he joined the Bank as Rural Credit Officer. But his association with the RBI began a year earlier with his appointment as Principal of Block Level Co-op. Officers Training Centre, Hyderabad, which was the first of two such training centres set up under the joint auspices of the Government of India and the RBI. Shri Nair's success story is a long one, the first chapter being set in the erstwhile ACD where he steadily rose to become Additional Chief Officer in 1979. As Manager of Calcutta Office in 1981, he won the appreciation of the employees and top rnanagenent through his superb managerial ability: In December 1982, he became Chief Manager and again in March 1984 he was elevated to the position of Executive Director. During his tenure as ED he handled, among other things, the negotiations with various categories of staff with a skill of his own, which culminated in wage settlements.

Source : Without Reserve January - March 1986

CVN : Accomplished orator with courage of conviction

In the passing away of Shri Nair RBI has lost one of its most illustrious officers. I had the privilege of working under him when he was Calcutta Manager. He had the courage of conviction to stand against any unjust or arbitrary decision of Central Office. When I was transferred from Calcutta, he defied the order and retained me. Again, when Class IV staff went on agitation all over India, managers vied with each other in suspending or dismissing the agitators. Only Mr. Nair stood firm saying that if he suspends or dismisses anybody, he should stay so and not reinstated at the drop of a hat. The managers, especially Kanpur Manager, had to eat humble pie when all those who were suspended or dismissed were unconditionally reinstated. Mr. Nair was known for his great sense of humour. Even in gravest of situation his sense of humour prevailed. He was an accomplished orator full of wit and humour. And above all he was the most vehement critic of the bank's personnel policies.

May his soul rest in eternal peace. 

- B. K.Kamath, CGM Retd

Canara Bank plays gynaec with sexist job application

Canara Bank has come under fire over a recruitment form that allegedly sought to reject women candidates on the basis of personal health details such as their menstrual cycle and pregnancy. The document, introduced earlier this year, has been withdrawn following the furore it sparked. The withdrawal came after an employees' union said the details had nothing to do with their job and amounted to a violation of human rights and gender discrimination.....

Read - TOI

Miscreant clones doc's debit card, misuses it 371 times

........She reported the matter to the Cyber Crime Police (CCP), which discovered that a miscreant had stolen the details of her card and made 371 transactions. Interestingly, the doctor had not checked her savings account for over a year. The CCP, which has now registered an FIR, found that the miscreant had used the cloned card to book train tickets, shop on Flipkart and recharge his/her mobile phone. After enquiring with the bank, the doctor found someone had been misusing her card since 2013..............

Read - Deccan Herald

Does money grow on trees? No, in an ATM

............An employee of the local block development office who lives in the area said he saw a large number of people queued up in front of the ATM last night. “I found it unusual. I live in the neighbourhood, but had never before seen so many people outside the ATM at night. I asked one of them what was the matter. He told me more money was coming out of the ATM than the amount keyed in. I informed the police,”.............

Read - The Telegraph

Jago Aam Banker Jago – Revolution Needed in PS Banks to De-Stress Banking Community

.........Things can be changed if Aam Banker decides to hit back. I am of the view that PNB management was not at all in a mood to take action for suspending the duo  nor were unions interested to demand action this far. However, the hue and cry raised by Aam Banker on the FaceBook and other social media / websites forced the union leaders to escalate this issue and soon top management also realized that it is the reputation of the bank which is at stack and if action is further delayed it can make irreparable damage to the already fragile relationship between top management and middle and junior management officers...............

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Who abrogated J&K’s fiscal autonomy?

.....The last nail in the coffin of autonomy was hammered in by Omar Abdullah in 2010 by shifting the banking operations of the state government from J&K Bank to Reserve Bank of India (RBI) from 1st of April this year 2011. The sign off with RBI, which changed not only the financial but also the fiscal relationship with the Union of India, should have been approved by the state legislative assembly. The assembly was bypassed and what is worse informed much after the deed was done! First and foremost, J&K Bank ceased to be the "lender of last resort" to the J&K Government which it has been since its inception. .....

Read - Greater Kashmir

DCCBs case: Maharashtra CM did not act despite RBI governor's word

 Litigation to revive the three district central cooperative banks (DCCBs) from Vidarbha continues, but the situation may never have arisen if chief minister Prithviraj Chavan had acted promptly on a request by the RBI governor. Governor Dr D Subbarao wrote to Chavan in 2012 that the six beleaguered banks at Nagpur, Wardha, Buldhana, Osmanabad, Jalna and Dhule-Nandurbar needed capital infusion from the government. But the CM, for reasons best known to him, delayed the decision for the three banks in Vidarbha......

Read - TOI

CRRID to write to RBI for implementing banking treaty with Pakistan

.....RBI and SBP had entered into an agreement for the opening of banking sector under which both sides had decided to grant permission to set up two bank branches on reciprocal basis, stated Professor Satish Verma, RBI chair, CRRID on Wednesday. He said both sides were yet to decide on specific banks and locations for open the branches. Currently, Indian traders receive money through Dubai-based branch of Pakistan's Habib Bank, said Prof Verma. He also questioned why financial dealings were being routed through a third country, especially when both India and Pak had agreed in principal to open banking sector for transparent trade. Stating that there was no direct bank-to-bank agreement between two countries, Prof Verma also apprehended some irregular channels', including hawala transactions, being used by traders from both sides to exchange money. "I wonder why the banking agreement couldn't be implemented even after nine years. CRRID has decided to write to RBI to implement the agreement made with SBP," he informed TOI......

Read - TOI

Finmin wants PFs to invest 15% each in equities, ETFs

.....Further, the finance ministry has proposed some relaxation in PFs investing in bank deposits. While the earlier rule allowed PFs to invest in fixed deposits of only those banks which had NPAs of less than 2%, the new rule extended it to not more than 4%. Also, the PFs have been allowed to invest in rated infrastructure debt funds asset backed securities. PFs can also invest some money in debt mutual funds regulated by Sebi, said the new investment guideline......

Read - FE

Government to proceed with its recommendations

......Other recommendations of the Commission, however, have been rapped by Reserve Bank of India Governor Raghuram Rajan. In a recent speech, he described one such idea, of a unified regulator, as "somewhat schizophrenic" and went on to say the report was inconsistent. On the other hand, the Survey, which said the FSLRC report marked an important milestone in financial reforms, felt the IFC articulated clear objectives for financial regulation, where government intervention is required......

Read | Business Standard

Majority of poor remain excluded

.....The statement comes at a time when the RBI has indicated that the country would soon get its first payments bank in place. Such a bank would not extend credit, but will provide deposit and payment services. An RBI panel, headed by Nachiket Mor, had proposed the payments bank concept. As against a full-service bank, needing an initial capital of `500 crore, payments banks need just ` 50 crore entry capital to begin operations. India Post, with its nationwide reach, is among the main entities being considered for the payments bank route......

Read - FE

Give RBI inflation target to contain prices: The Economic Survey

.....It said that lower inflationary expectations would increase domestic household savings and make resources available for investment. “There is need for a formal monetary policy framework through which the RBI is given clarity of objective  and operational autonomy in pursuit of that target,” said the Economic Survey......

Read - Deccan Chronicle

Check On Inflation

.......... “For effectively containing inflation requires putting in place a monetary policy framework defining a nominal anchor, as well as deregulating food markets to curb food inflation,“ says the latest economic survey . “Monetary policy is central to inflation in the long run.“ A government document backing Rajan's inflation targeting proposal augurs well for co-ordination between the new government and the central bank on policy issues. Any fiscal consolidation and moving towards market pricing of commodities such as fuel and fertiliser as well as rail fares, though may be inflation inducing in the short term, would help temper prices in the longer term.....

Read - ET

Bank accounts for all: PM Modi that's not financial inclusion

.........According to the Committee on Financial Inclusion chaired by Dr C Rangarajan, it “may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost.” It’s clear - the term means access to services and credit. Going by a detailed speech by P Vijaya Bhaskar, Executive Director, Reserve Bank of India, at the MFIN and Access-Assist Summit in New Delhi in December 2013, it “broadens the resource base of the financial system by developing a culture of savings among large segment of rural population and plays its own role in the process of economic development. Further, by bringing low income groups within the........

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New RBI Norms for Coop Banks Decried

 Discussions on the demand for grants to the Cooperation Department in the Assembly on Tuesday witnessed members   cutting across the political divide expressing concern about the RBI and NABARD guidelines based on the Prakash Bakshi report, which imposed heavy curbs on the functioning of the cooperative sector financial institutions.....

Read - The New Indian Express

Co-op sector share in rural credit declining; PACs should be revitalised

The share of co-operatives in rural credit, which once stood at 60 per cent in 1990, has now declined to a paltry 15 per cent and therefore there is an urgent need to revitalise primary agricultural co-operatives (PACs) by converting them into multi-service centres, according to Jiji Mammen, the Chief General Manager of the NABARD, Hyderabad. He was speaking here on Wednesday at the inaugural of a three-day workshop and awareness programme............

Read - HBL

Bank to pay Rs. 2 lakh to Amritsar resident for unfair trade practice

.... “Once the instructions had been given, the bank was not competent to renew the FDR for a further period of five years. They acted against the instructions of the complainant and it amounted to deficiency in service on their part. It also amounts to the adopting of unfair trade practice, as the intention of the bank becomes apparent that they wanted to withhold this deposit of the complainant and never wanted to give the benefit thereof to the complainant by depositing it in the overdraft account.”

Read - HT

Not intimated of move to block fund transfer: Greenpeace

....."On June 23, 2014, we had requested for a financial transfer from Greenpeace International, which transferred the money the very next day. On June 30, we were denied the money on the grounds that our bank, IDBI, had received instructions from the Reserve Bank of India that it would not be able to transfer the money unless it received a go-ahead from the Ministry of Home affairs."......

Read | Business Standard

Banks start offering loans to Bandhan Financial

Banks are queuing up to lend money to Kolkata-based microfinance institution Bandhan Financial Services, which was among the lucky two to secure a banking licence from the Reserve Bank of India (RBI) in April this year. According to sources, three banks -Bank of India, Vijaya Bank and HSBC India-have sanctioned loans of Rs 700 crore last month. Mumbai-headquartered Bank of India has given the highest term loan facility of Rs 500 crore at an interest rate of 13.80 per cent. Bangalore-based Vijaya Bank has given Rs 50 crore term loan at a slightly higher 14.50 per cent per annum. And HSBC, one of the largest foreign banks in India, has agreed to offer a working capital loan of Rs 150 crore............

Read - Business Today

Loan waiver to elude some

 The Reserve Bank of India may not reschedule the crop loans of all farmers in AP as 86 of the total 661 mandals in Seemandhra are not on the drought and cyclone-affected list submitted to the apex bank. Also, lack of clarity from the government regarding who will pay back the rescheduled loans has left the farmers worried......

Read - Deccan Chronicle

Kingfisher moves Calcutta High Court against UBI default notice

.............They submitted that the bank cited the Master Circular of Reserve Bank of India (RBI) which has not kept any provision for such representation. The counsels claimed that as there was no provision, it was the discretion of the bank concerned, but the UBI has disallowed its contention without citing any reason............

Read | Business Standard