Mobile wallets to be opened to 100% FDI

..... The Reserve Bank of India has already given its conditional nod to the finance ministry's proposal to allow 100% foreign direct investment (FDI) through the automatic route in these payment services, but experts say the conditions are cumbersome.......

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Finance Ministry looking at merging RRBs with sponsor banks

....... The number of RRBs has shrunk from 196 in the early 2000s to 82 now on account of restructuring and amalgamation of RRBs to improve their financial soundness. According to RBI figures, as of March-end 2011, the 82 RRBs collectively had deposits of Rs 1,66,232 crore (Rs 1,45,035 crore as of March-end 2010) and advances of Rs 94,715 crore (Rs 79,157 crore).

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Traffic survey ordered for metro project

Ahmedabad........ A surveyor who was roped in for the survey said the survey is being taken up at specific locations which includes Vasna, Paldi, Ellisbridge, Nehru Bridge, Old RBI office, Income Tax, Gujarat Vidyapith, Vadaj, RTO and Sabarmati in Ahmedabad city. Also survey is being ordered on similar lines in Gandhinagar city....... Read...........

Online banking security up a notch

Now you can do online banking at a shared terminal with peace of mind

..... Now, with the RBI mandating a very high level of security in case of online transactions, banks have been scrambling to find solutions........

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Industry ministry in talks to start e-biz model

The Industry ministry will hold consultations with the representatives of the Controller General of Accounts (CGA) and Reserve Bank of India (RBI) to work out a payment mechanism to operationalise the e-biz project that seeks to improve business climate in the country..........

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Indian Rupee Shortage

As per recent media reports, the private sector has been concerned about the shortage in the Indian rupee component of the national foreign exchange reserves. The government hereby clarifies that, while there have been shortages in the Indian rupee component, the overall foreign exchange reserve is well within the threshold levels. Currently, as per the RMA, the foreign exchange reserve situation is US dollars 691.76 million. That is equivalent to 13.5 months of imports, which is favourable, compared to not less than 6 months in other countries...........

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D Subbarao, C Rangarajan, Kamath amongst Top Leaders to address Convocation 2012 at IIMs

.....While Dr. D Subbarao, Governor, RBI will grace the convocation at IIM Bangalore to be held on March 30, K V Kamath will be the chief guest at both IIM Ahmedabad and IIM Indore to be held on March 24 and March 31 respectively. Dr C Rangarajan, will be the chief guest at IIM Lucknow Convocation on March 17............

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Mr Subbarao, why not double the joy with a repo cut next week?

..... The question now is will the central bank cut repo rates in its 15 March policy review or will it do so in its annual policy review in April 2012? The difference between March and April in terms of data points will not be much as March inflation is expected at around 6.5-7 percent levels, and this inflation number will be released in April. However, the difference a repo rate cut in March will make to money market sentiments will be high........

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First sign RBI’s shifting to growth mode

..... Friday’s cut infuses Rs 48,000 crore into the banking system, effective March 10, which is the beginning of the fresh reporting fortnight. The effect of this will initially be felt more in equities than bonds.....

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Subbu Sab jaanta hai, part 2: Why RBI Gov did what he did

……..Subbarao knows that he cannot relax his vigil on inflation. The pyrotechnics on CRR are intended to make up for slowing down on repo rate cuts. So forget about a 50 basis points cut in repo on 15 March. Be happy if he even does 25 bps – just to keep the FM happy. And don’t count on too many more cuts to follow. Subbu is no wimp on inflation.…….

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Bankers rule out cut in lending rates following reduction in CRR

Bankers on Saturday said RBI's more-than expected 0.75-percentage point cut in cash reserve ratio (CRR) will ease the liquidity strain, but ruled out any immediate reduction in lending rates. "We were expecting 50 basis points cut in the CRR and hence, are pleasantly surprised by the Reserve Bank's move... banks will not cut lending rates immediately though," SBI Chairman Pratip Chaudhuri said.......

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Pranab urges private, foreign banks to improve customer services

....The Union Finance Minister, Mr Pranab Mukherjee, on Saturday urged private and foreign banks to put in extra efforts to improve their customer services and redress their complaints......

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Performance of Co-operative Urban Banks reviewed

To review the performance of Urban Co-operative Banks functioning in the State of Jammu and Kashmir and discuss latest policy developments a meeting of the State Level Task Force on Co-operative Urban Banks (TAFCUB) was held at RBI Jammu under the Chairmanship of KK Saraf, Regional Director for Jammu and Kashmir. Ghulam Rasool Khan, Special Secy. Co-operative Department Jammu and Kashmir alongwith Riyaz Ahmad, Jt. Registrar (B&F), Co-operative Societies, Jammu and Kashmir attended the meeting. Ashok Goswamy, CEO, Citizens' Co-operative Bank Limited, Jammu, RD Gupta, CEO, Devika Urban Cooperative Bank Limited, Udhampur, MA Sofal, CEO, Urban Co-operative Bank Limited, Anantnag and AM Dar, CEO, Kashmir Mercantile Cooperative Bank Limited Sopore were also present in the meeting.

http://www.greaterjammu.com/2012/20120303/business.html

A gap-up opening on the cards

The Reserve Bank of India's (RBI’s) surprise CRR (cash reserve ratio) cut is enough a reason to bring cheers to the market on Monday morning. However, going ahead, it seems unlikely the up move will be sustainable during the week.........

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How long is late before a cheque is credited?

You drop a cheque with your banker for collection. How long will you wait before it is credited to your account? A week? 15 days? A month? A customer had to wait for 10 years! The case of this customer, call him Mr Dixit, is recounted in the 2010-11 Annual Report of the Banking Ombudsman released recently.........

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Boring banks theory does not work anymore: Subbarao

…. “So the question is, is making banking boring necessary and is it sufficient to prevent the recurrence of financial instability? If so then what is the cost of making banking boring?”….

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‘Company secys should be aware of new laws’

MYSORE: The company secretaries of those firms which have significant trade transactions globally must be aware of the new laws and regulations, said Uma Shankar, Regional Director, Reserve Bank of India, Bangalore, on Thursday.  Uma Shankar was speaking at the workshop on foreign exchange organized by the Institute of Company Secretaries of India-Mysore chapter in association with the Foreign Exchange Department, Reserve Bank of India, Bangalore.  Uma Shankar touched upon the transition from FERA to FEMA. She said liberalization under the remittance facility scheme also enjoin upon all those making use of foreign exchange responsible and accountable to the regulators and policy makers.  M Palanisamy, Banking Ombudsman for Karnataka, said the Banking Ombudsman scheme was introduced by RBI in 1995 to provide inexpensive and expeditious resolution against complaints relating to deficiency in the services provided by banks. There are 24 grounds on which complaints can be preferred with the office of Banking Ombudsman.  These include deposit accounts, loan products, pension payments, ATM/credit cards, levy of charges etc., Palanisamy added.  Apart ftom nearly 100 company secretaries from various cities of south India, chartered accountants, industry representatives and students attended the programme.

HT

Kulavaipatty declared as model village for financial inclusion

Reserve Bank of India declared Kulavaipatty near here as a ‘model village for financial inclusion' among the rural pockets selected by it under its outreach activities. A function was organised at the village on Friday when a number of officials from banking industry and district administration felicitated the villagers for their cooperation to the efforts taken by the RBI for the past several months. N.S.Vishwanathan, Regional Director, Reserve Bank of India, Tamil Nadu and Puducherry, said that the RBI had identified a few villages as either ‘unbanked' or ‘under-banked' areas under the ‘Outreach Activities'............

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Banks may tap informers to track defaulters

....Law enforcement agencies resort to them. The tax authorities find them useful. Now, banks too are looking at them. ‘They' are informers, and the Reserve Bank of India has sought the Indian Banks' Association's views on whether banks can tap such sources about the assets owned by defaulting borrowers and offer rewards for the information......

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Bank customers tortured by recovery agents; ombudsman helps out

......The apex bank had laid guidelines to be adhered by the banks’ recovery agents. However, experts point out the need for recruiting trained recovery agents. “Banks should engage trained agents to recover the money, as it is important to deal with debtors with ‘humaneness’,” GS Hegde, RBI’s principal legal adviser, was quoted saying by PTI.

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Expert views on RBI`s CRR cut

"This is a surprising move but it's definitely a step in the right direction. This will ensure that liquidity situation improves in the market and smooth credit flows to priority sectors. The move brings us closer to a cut in the interest rates."..................

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‘Financial inclusion programme not making much headway’

 

RBI Governor D Subbarao rules out SLR cut

Pune : "SLR cannot be reduced at the moment because there are a number of pre-conditions to such a decision which cannot be met," he said, addressing a convocation at National Institute of Bank Management (NIBM) here................

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CRR cut will ease liquidity, say bankers

The cut in Cash Reserve Ratio by the Reserve Bank of India will go a long way in easing the liquidity deficit in the banking system, said bankers. The move will inject around Rs 48,000 crore into the system.................

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Subbarao’s surprise CRR cut puts ball in Pranab’s court

...... Inflation, after all, still remains the RBI’s biggest enemy, and he has attempted to oil the slowing growth engine a bit by infusing fresh liquidity (the CRR cut is effective 10 March). Some, however, are betting on a 25 basis points cut in the repo rate soon. This is a bold RBI governor. And he has the ability to surprise either way. And as of now, he holds all the aces.

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RBI cuts CRR: Developers hail cut; hope banks to fund realty projects

.... "This is a positive step by the RBI. This will help financial institutions to lend money to entrepreneurs for the growth of business as well as the economy,".....

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RBI cuts cash reserve ratio by 0.75%, demand for money rises

 ..... Two weeks ago, RBI deputy governor Subir Gokarn hinted at an action.  Here are pointers that could help explain the reaction: .....

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Rate cut on the cards

..... the only way to raise savings is to lower the public sector deficit, since it is the rising public sector deficit that has led to lowered savings rate in the country over the past few years. Even so, Thursday’s CRR cut is a positive boost to sentiments and raises hopes of the Budget being more pro-reform than most believe.

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RBI's CRR cut a proactive step, but policy rate cuts still weeks away

.....Off late, RBI Governor Duvvuri Subbarao has been vocal about the limitations that monetary policy tools in an economy which runs higher twin deficits on both fiscal and current accounts. So, the tight rope walk of RBI continues. The Budget, scheduled for March 16, will be something that Subbarao will take his next cues from.

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RBI delivers, can lame duck govt?

....While the RBI has done all it can for now, can the Union government reciprocate by cutting expenditure in the Union Budget next Friday, and allow the central bank to cut interest rates too, especially since the debacle at the hustings in Uttar Pradesh and other states? .....

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Industry seeks more cuts in CRR

….The Associated Chambers of Commerce and Industry of India (Assocham) sought another CRR cut, one of 100 basis points, before the monetary policy review next week, saying policy rates should also be slashed in the review on Thursday to stimulate fresh investment…..

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RBI cuts CRR: Will March 15 credit policy be a non-event?

........ The RBI is scheduled to announce the mid-quarterly review of its monetary policy on March 15, a day before the presentation of the Union Budget 2012 in Parliament. So, now what happens on March 15? Will it be a non-event?.........

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First sign RBI’s shifting to growth mode

....The surprise 75 basis points (bps) cut in the cash reserve ratio (CRR) by the Reserve Bank of India (RBI) on Friday is more than a liquidity-easing move. The Street was expecting a 50 bps cut in the monetary policy review on March 15 and the fact that the RBI cut more can be taken as the central bank indicating a complete shift in its monetary stance. Tight liquidity conditions have provided an opportunity for it to indicate the shift from controlling inflation to spurring growth......

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IIM Rohtak completes its first-ever final placements process

.... The companies that participated in the final placements include HSBC, Pfizer, Tata Motors, BPCL, HDFC, Tata Steel, Cognizant, Mother Dairy, Yes Bank, Tata Power, Max New York Life Insurance, Berger Paints, RBI, Titan and Ernst & Young among others……

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TimesOfMoney Plans Domestic Mobile Remittance Service

............ At the moment, domestic remittance services are mostly offered through banking correspondent tie-ups, since the RBI has enforced strict guidelines and require KYC (know your customer) documentation. Although the central bank had proposed relaxations in the guidelines, and had removed the Rs 50,000 cap on mobile transfers, mobile money hasn’t really picked up in India…………….

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Polaris’ Intellect Wins XCelent Customer baxse Award for Asia-Pacific Region

.......Leading in the Asia-Pacific region, Polaris outsold other vendors with its Intellect solution, based on its RBI deal. Polaris' major deals were a major part of the deal scores, with the RBI win helping Polaris score strongly in the ranking index........

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No elbow room to provide stimulus - S.S.Tarapore

.......Loss of monetary control and a weak fiscal resolution would imply a resurgence of inflation. Forty years ago, the then Governor, S. Jagannathan, speaking at the Bankers' Club in Chennai, said “while planning their resource position, banks should not count upon recourse to the Reserve Bank as an easily available resource”. Today, bank accommodation from the RBI has become a chronic addiction. If not treated early, this would eventually require a cold turkey approach, which would be disruptive to the financial system.

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Good economics is good politics

.... The forthcoming Budget comes at a critical juncture for the economy. Growth has slowed down perceptibly. Investors' sentiment is at its weakest since 2004. The global economic situation is fragile. This will hurt our external demand prospects at a time when the current account deficit threatens to cross the dangerous mark of 3 per cent of GDP. Interest rates remain high and the RBI does not seem to be in the mood to relent as long as inflationary pressures remain, fuelled primarily by a profligate fiscal policy and supply side constraints that are becoming entrenched as investment in new capacities is simply not forthcoming. Therefore, the first and most important task for the coming Budget must be to work with monetary policy to eliminate inflationary pressures, thereby allowing interest rates to come down......  

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Till debt do us part

.......As of today, the government sets a borrowing target that it then asks RBI to fill in. An independent DMO will not have the backstop of a monetary authority and will therefore find it necessary to engage with the government to moderate its borrowing. This will act as a hard budget constraint providing the fiscal discipline, which the government sorely needs........

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RBI can’t control WPI

...... In the case of agriculture, where inflation has been the highest, government policy of spending on subsidies instead of investment has ensured productivity has hardly risen. In other words, while RBI can at best affect outcomes marginally, and that too after the event, all the real levers lie with the government........

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RBI Salaries and Perks

This is a video describing the prevailing RBI Salaries and Perks for Entry level officers i.e. Grade B and Grade A. This video is compiled from RBI notices. Complete article @ http://gurpreetseehra.hubpages.com/hub/RBI-SALARIES-BENEFITS

Should We Believe CEOs Who Say NPAs are Not Alarming

… But the matter of real concern is that most of banks are facing liquidity crisis , borrowing money in lacs of crores from RBI and where scope of lending is very much reduced due to inaction of government on needs of corporate sector , it is unavoidable that in near future quantum of bad assets will grow at faster rate whereas lending at lower rate which will result in rise in Gross NPA to total Advances Ratio.....

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Aadhaar card has little relevance while investing, buying policies.......

“Not all banking services can be provided on the basis of Aadhaar though RBI has agreed to it. As of now, we are allowing only no-frills services on it and that, too, to those who cannot provide any other valid document.” Agrees a foreign banker, adding more clarity is required........
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Raw deal for depositors

I refer to the news item "Public sector banks in no mood to hike savings account rates” (Business Line, March 7). Bankers are only taking undue advantage of the multitude of Savings Bank depositors who have no one to represent them. Be it retail shareholders or retail depositors, they are always left in the lurch. India has a lot of personal savings, but isn't getting the desired attention. I recall the remarks of M. R. Pai, ex-president of All India Depositors Association, who said, “The greatest asset in a bank's balance sheet is the ignorance of depositors.” Banks are keen to keep their Net Interest Margin 3 per cent plus. They won't look at retail borrowers or retail depositors, but lend large amounts to corporates at base rates, and write off large amounts. If credit sanctions and monitoring of large values are done with due diligence, it will give room to take care of retailers — both borrowers and depositors.

- L. Rangarajan (HBL

Banks increasing service charges

.... Early last year, when the Reserve Bank of India (RBI) raised the savings bank rate to four per cent, bankers had made it clear they would raise service charges to help make up for the high rates. Then, came the savings rate deregulation in October 2011. Now, if a bank is free to fix the interest rates it wants to pay you on savings deposits, it is also free to decide on charges to adjust the pinch on its pocket.......

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India ‘needs sustained effort to check deficit'

.......India's fiscal deficit exceeded the full-year target in the ten months through January, adding pressure for steps to restrain the gap in next week's budget. The Reserve Bank of India has signalled that efforts to curb the shortfall will boost its scope to cut interest rates as economic growth slows..........

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Fiscal consolidation will be in focus

.......Further, with the RBI clearly signalling the need for concrete steps towards fiscal consolidation before embarking on the path of monetary easing, plausible measures from the central government in this regard would be keenly watched out for.......

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Financial Inclusion - Drive to Diverse Business Models

.... Despite augmented thrust by the government and RBI on Branch expansion since 1969 i.e. Banks Nationalization, still the fruits of the banking not reached to substantial population, especially the underprivileged sections of the society,…..

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Karnataka Bank to open 20 financial inclusion branches

......Financial inclusion branches will be opened in the villages, where the population is above 2,000. The branch will take care of the entire requirement of the village such as credit disbursement and opening of accounts.........

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Tips for facing bank clerical post interviews

.... “Candidates these days are even trained on how to enter the room, how to greet, how to sit and how to say bye at the end of interview. Very few candidates are frank and speak from the heart. They give the standard, well-rehearsed answers.” ........

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Govt panel moots more powers, sops to asset reconstruction cos

.....The panel, headed by Alok Nigam, has recommended that the Reserve Bank of India (RBI) should empower ARCs to convert debt acquired by them in usual course of business from banks and FIs into equity of the defaulting company by way of a new contract........

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Those glittering assets

..... Clearly, the government and the Reserve Bank of India (RBI) need to focus intensely on how to bring at least part of these glittering assets into more productive use. The RBI should enable a liquid paper gold market, through instruments like gold savings accounts (GSAs), gold deposits and gold securities, so that investors could continue to maintain gold savings but without needing to hold all of them in terms of physical bullion.......

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Administration needs 2 more months to start work

 ….. The authority has proposed four multi-level parking lots at each corner of the sector, away from the plaza, where vehicles can be parked, but only one of the four, near RBI building, has been planned so far…….

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Near victory for Indians abroad for filing online RTI applications

After several years of persistent campaign by RTI activist Commodore Lokesh Batra and several RTI activists abroad, the RBI, early this week, has given a “no objection” to the government for the sale of electronic postal orders through credit/debit cards for paying RTI fees. Now the Department of Posts has to quickly find a technology solution...........

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Rare coins see rise in popularity, value

........ Indian coins exported before independence are sold in foreign markets, according to Todywalla, and they tend to raise more money than those sold at home because of their rarity value. But increasingly, Indian coins are finding their way home to collectors from the country.......

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Workshop on foreign exchange

The Mysore chapter of the Institute of Company Secretaries of India has organised a workshop on foreign exchange in association with RBI, Bangalore regional office, on its premises at 125, NHCSL Layout, KRS Road here on Thursday at 10 a.m. RBI Bangalore Regional Director Uma Shankar will be the chief guest and Banking Ombudsman M. Palaniswamy will be the guest of honour at the event. There will be an awareness exhibition on foreign exchange, coin vending machines and so on at the venue on Thursday and Friday from 10 a.m. to 5.30 p.m.

HBL

Bank unions demand 5-day work-week

Bank employee unions have demanded the government to grant them a five-day work-week. A senior official of the Indian Banks’ Association (IBA) lamented that their persistent efforts to get the government to introduce five-day week have not borne fruit yet. “We wish them (other unions) luck.” Government-owned banks are in favour of five-day week. “None of the financial markets works over the weekend and even state and central government employees work five-day weeks. It’s only fair for banks to demand this,” says a senior official at a public sector bank.

DNA

May their souls rest in peace.........

Shri.D.S.Banavali died in Andheri Mumbai on February 6, 2012. He was 85 years old. He had worked as P.S to Deputy Governor Shri. Ramakrishnayya

Shri.K.K.Singh died on February 24, 2012 in Andheri, Mumbai He was Economic Assistant in the Library of the Economic Department. He was 88 years old.

- As reported by P.P.Ramachandran (via e-mail)

Down with memories............

I felt very sad on coming to know that Mr Newlay is no more. Had I known on that day I would have attended his last day. I knew him very well even when he joined RBI Chennai as a Probationary Officer in Gr A. I was working as Cl Gr II at that time. On one occasion when some employees played mischief with him, he could have easily complained against them to the Manager but instead he said to me, "Every action has an equal and opposite reaction". I did not know why he chose me to say this. May be he hoped I would counsel others not to be harsh in their attitude towards him. I had interacted with him on several occasions while in service. He used to tell me how he changed the atmosphere in CAB. Later, after retirement, we used to meet very regularly in Pune. We even had dinner at my house on occasion and again tea at his house on another. CAB invites senior retired officers whenever dignitaries visit CAB and also for dinners on many occasions. We always chose to sit together and chat. He used to talk to me very fondly. On every occasion when he came to CAB, I saw almost all employees coming and wishing him with reverence. Very soft spoken and affectionate friend to everyone. He was even present on 1st Nov last year when CAB invited all retirees for a get together and lunch. Though he was looking week, he was cheerful. As usual we sat together and chatted. I miss a good friend. I miss him terribly. May his soul rest in peace.

- P.Aravind

I worked with Mr.Newlay at the staff college--one of the finest gentlemen. His death is somewhat untimely.

- K.Kanagasabapathy

Shri Newley’s  was a warm and affectionate personality and he used to greet his colleagues with his characteristic smile and cheering words. He was open to suggestions and played his role in liberalising perks/facilities for RBI-ites when he was a JCO in PPD. He was happy that we were bringing out a book as part of the Platinum Jubilee celebrations (Mint Road Milestones: RBI At 75) and extended his best wishes and support to our team when we had met him last at CAB.

- Surendra Khot

I am shocked to know about the demise of our friend guru and a fine human being.

- P.Shyam Sunder (Shillong)

Management of govt debt should remain with RBI: Union

....“Sensitive issues such as separation of the management of Central Government's public debt from the RBI should not be hustled through by the Government without wider consultation and a national consensus,”.......

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Unburdening the RBI

....... DMO within a banking regulator can create a perverse incentive for the regulator never to allow the economy to move away from financial repression as it can achieve both objectives of low-cost funding for government and reduction in banking sector risk through a requirement like a high Statutory Liquidity Ratio (SLR) as in India. The discussion on an independent DMO in India has been in progress since RBI proposed it in RBI Annual Report, 2000-01. It said: “The separation of the functions of debt management and monetary management is regarded as a desirable medium-term objective... The separation of the two functions is expected to have significant effects on the functioning of the government securities market.........

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RBI employees body against creation of DMO

Kolkata: A section of Reserve Bank employees has opposed creation of the separate debt management office (DMO) by the government thus taking away the task of management of public debt from the hands of the apex bank. In a statement, All India Reserve Bank Employees Association general secretary Samir Ghosh said that once the RBI was bereft of the managing public debt, financially weaker states would find it difficult to sell their papers and a rate war would……………

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RBI asks banks to adopt unique customer identification

…. At a seminar organised by the Credit Information Bureau on Wednesday, RBI deputy governor Anand Sinha said, “Unique customer identification in the banking system is of paramount importance. While some banks have started the unique customer identification process, this is not present across the banking system, that is, on a shared database. This could enable borrowers to circumvent guideline risk profiles and obtain multiple facilities from banks.”……

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Banks must refer to credit reports for corporate loans too, says RBI

Banks must refer to reports issued by Credit Information Bureaus not just when sanctioning retail loans but also corporate loans. This was the message given by Reserve Bank of India Deputy Governor, Mr Anand Sinha, while speaking at a seminar in Mumbai on Wednesday.............

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India has considerable room to improve business scenario: IMF Paper

There is a considerable room to improve the business environment in India and boost the corporate investments through measures like lowering of costs and better financial access, an IMF Working Paper has said…………

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RBI raises bank rate to 9.5% for Urban Co-operative Banks

"….....it is determined that the bank rate should normally stay aligned to the MSF (marginal standing facility) rate. "Accordingly, it has been decided that with effect from the close of business of February 13, 2012, the bank rate (for UCBs) will stand increased by 350 basis points, from 6 percent per annum to 9.50 percent per annum," RBI said in a notification Wednesday………..

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RBI may soon do away with branch audit of PSU banks: Srcs

..... Now even the RBI governor in December last year had mentioned that the relevance of branch audits had significantly declined but that's largely because after the implementation of core banking system the relevance has actually declined and there is no need for branch auditors but for statutory central auditors. So, that's the reason why RBI is looking to reduce the cost for public sector banks but the final numbers on branch auditors for this fiscal has not been decided yet......

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Subbarao meets FM ahead of RBI's policy review

....Ahead of credit policy review and budget, Reserve Bank Governor D Subbarao today met Finance Minister Pranab Mukherjee and is believed to have discussed the macro-economic situation.......

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Sonia's concerns on inflation may weigh on RBI monetary policy

With Congress President Sonia Gandhi citing inflation as one of the reasons for the party's poor performance in state polls, the government may signal RBI to maintain its priority to containing price rise in the monetary policy on March 15……

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eMudhra-Watchdata to check financial frauds

Security solutions provider eMudhra today said it has entered into a partnership with Watchdata Technologies to offer banks key solutions to check financial frauds in online transactions.............

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When geography is not history

The latest national microfinance awards underline what has worked in Karnataka and not worked in Andhra Pradesh

At a time when the name of microfinance is in the mud and its financial prospects severely dented mainly because of the aberrations it developed in Andhra Pradesh, two microfinance organisations based in Karnataka have won the latest national microfinance awards for 2011………..

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India will come under pressure to raise interest rates as well

Michael Spencer, chief economist (Asia-Pacific) for Deutsche Bank AG, is a rare optimist who thinks the worst is over for the global economy. He predicts that as the world economy gradually starts recovering six months from now, the Reserve Bank of India (RBI) may take cues from global central banks and hike rates again starting 2013.............. 

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BoB, Union Bank await policy review cues to decide on rate cut

Public sector lenders Bank of Baroda (BoB) and Union Bank of India today said they would take a call on slashing interest rates in specific segments once the RBI has announced its mid-term policy review………..

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Liquidated urban bank to settle dues to depositors fully

....“Meanwhile, a proposal has been forwarded to the RBI seeking permission to enable the erstwhile bank to function as an urban cooperative society. We expect a positive response soon and are confident of getting approval,”........

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Small farmers still excluded from formal financial channels

Small and marginal farmers who constitute more than 80% of total farmer households in the country face exclusion from formal financial channels," says the Nair Committee on priority sector lending. The same report says "commercial banks have been prescribed targets since late 1960s for priority sector lending"……….

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Budget 2012: Tax sops will give impetus to banking space

Recently, the Reserve Bank of India (RBI) Governor Dr D Subbarao was quoted saying that "non-performing loans have grown and have grown quite rapidly in the second half of 2011 calendar year". With the rise in the interest rates and stress in the economic environment, the banking sector has witnessed a steep rise in the provisioning of bad and doubtful debts (NPAs). This has hit the bottom line of most banks in India……………

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Well-off villagers take liking to protein-rich food

 ….. The Reserve Bank of India, or RBI, has accepted that inflationary pressures will be present as India treads on the path to inclusive growth. "Structural sources of food price pressures persist. Changing dietary patterns with rising incomes that have contributed to inflation in protein-rich items and significant upward revisions in Minimum Support Prices (MSP) are expected to keep up the food inflation pressures," the central bank noted recently…….

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India, Pakistan keen to open up borders for trade

....On the other hand, the issue of opening of bank branches to facilitate trade between the two nations will also be an active area of discussion. Talks between the State Bank of Pakistan and the Reserve Bank of India are likely to be held in Mumbai on March 10 to discuss this issue threadbare and draw up a roadmap for opening of bank branches........

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Pink products looking pale

Although the market is abound with women-centric products, one needs to carefully read the fine print before signing on the dotted line.....

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He steered the CAB during the tough days ...............

Sad demise of Shri S. K. Newlay is indeed a loss to the family and friends alike. He was a soft spoken and well mannered person with good reputation. He steered the CAB during the tough days of the CAB, when the news of its likely merger with NABARD was in the air. Entire former and present staff owe their present status to him. I had the opportunity of working with him in Chennai, Hyderabad, Mumbai and meeting at CAB, Pune. I join Shri Deole, friends and other colleagues in praying God for his peaceful Heavenly abode.

- K R P Rao, DGM, RBI, Bhubaneswar

Debt mgmt Bill likely soon

Finance ministry wants RBI’s role in the job scrapped to avoid conflict of interest

...... Initially, RBI was against shifting the DMO to the finance ministry because of human resources and manpower issues. The ministry assured all 21 public debt offices of RBI would continue to function as they were doing on Tuesday, but would function at the behest of DMO.

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Budget 2012: Govt to bring legislation to set up of Debt Management Office

............ The government has proposed to set up an independent DMO, aimed at separating the RBI's roles as the as the decider of interest rate in the market and being the banker to the government. At present, both the government's debt and fresh borrowings are managed by the central bank..............
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RBI outsources temple safe project

........ Top sources told TOI that the Reserve Bank of India (RBI) which was entrusted with the task of constructing the safe lockers for the temple has outsourced the work to Godrej industries' security solutions unit which is part of Godrej & Boyce Mfg Co Ltd. On Tuesday, Vikas Verma, Manager Protocol and Security (RBI, Guwahati), and a member of the expert committee appointed by the Supreme Court to assess the wealth of the Sree Padmanabhaswamy temple, made a presentation on the proposed new vault to the expert committee. According to sources, the presentation was incomplete as the Vasthu Sastra for constructing the vault was not taken into account. Vasthuvidya Gurukulam at Aranmula has been entrusted with the job of fine tuning the vasthu angle of the RBI's project plan to build the vault.......

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STUDY ON ICT BASED FINANCIAL INCLUSION THROUGH BC – IMPEDIMENTS & CORRECTIVE ACTIONS

Shri.L.M.Ganesan, Member of Faculty, College of Agricultural Banking, Pune has conducted the captioned study from August 22-27, 2011. Copy of the study report was placed in the Meeting of College Advisory Committee held on November 5, 2011. The study was conducted in two villages of Maharashtra State, Khopi in Pune and Lingnoor Kapashi in Kolhapur districts, through on-site field visits and questionnaire method. Feedback from all the stake holders including 200 households and District Collectors were collected. Questionnaire for households was made bilingual in local language and English. The study report contains the major findings, both positive and negative, five major issues and ten important suggestions. The study captured various field level problems, ranging from delay in the appointment of BC /CSP, enrolment, supply of HHD by TSP, issue of smart cards, dormant no frills accounts, to non-linking of bank’s CBS with TSP’s FI server, low remuneration to CSPs, lack of financial education and other system related problems. Banks which have opted for Corporate BC model and banks which opted for non-corporate BC model can mutually share their positive experience for mutual enrichment and fine tune their systems and procedures for achieving a realistic financial inclusion. The study finally concluded that it is now time for banks to act seriously, implement financial inclusion realistically and then report the progress accordingly. The study report is hosted in the Website of CAB, Pune under ICT Based Financial Inclusion.......

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B Mahapatra : Implications of Basel III for capital, liquidity and profitability of banks

Address of Mr B Mahapatra, Executive Director of the Reserve Bank of India at the National Conference on emerging Macro Environment, Regulatory Changes and Bank Competitiveness, organised by the National Institute of Bank Management, Pune – 3 March 2012

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RBI asks urban co-op banks to get ready for IFRS

The Reserve Bank today asked urban co-operative banks (UCBs) to take necessary steps to ensure smooth transition to new international accounting norms IFRS from April 2014. "UCBs are advised to take necessary steps to ensure that they are in readiness to adopt to IFRS convergence IAS from April 1, 2013, or April 1, 2014, as the case my be," the Reserve Bank of India (RBI) said in a notification. It said that banks and NBFCs should upgrade their skills, manage information system and technology capabilities for smooth transition to new financial reporting standards to manage complexities and challenges of international standards. According to a roadmap of the Corporate Affairs Ministry, all large commmercial scheduled banks are mandated to prepare their books of accounts according to the International Financial Reporting Standards (IFRS) from April 1, 2013. Besides, smaller urban cooperative banks and non-banking finance companies are to converge their opening balance sheets with IFRS from April 1, 2014. 

BS

Cyber criminals use name of RBI, Toyota to cheat

Mohit of Dhurwa in Ranchi was unaware about the devastation when he showed trust on the institution such as Reserve Bank of India (RBI) before making available his hard earned money amounting Rs60,000 to a fraud firm. The cheat, hoodwinking under the financial regulator of the country, duped the student by asking his banking details before netting him as a beneficiary of “lottery/inheritance/unpaid contract funds/ undelivered Lottery fund”, amounting 500,000 GBP.................

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Bank problems? Approach the Banking Ombudsman it helps

Banking customers continue to run from pillar to post to resolve their grievances, however, many of them fail to approach the Banking Ombudsman, who over the last year has ruled in customers’ favour on several occasions. According to the Reserve Bank of India’s (RBI) annual report on Banking Ombudsman (BO), during 2010-2011, total number of cases registered with the BO fell by 10% to 71,274 cases from 79,266 cases a year ago. ................

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Short on vision, long on rhetoric

....Fortunately we have the Reserve Bank of India and its economic reviews that perhaps despite itself, hone in on the real problems, those tangible limits that will keep growth hemmed in to an average of around 7 per cent at the very best........

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White label ATMs proposed by RBI— need to make them safe and user friendly

.....More than anything else, the RBI should not lose sight of the most important aspect of inherent risks involved in allowing private entities to set up, own and operate WLAs as there is a distinct difference in attitude between banks and the private parties in owning and operating ATMs. Banks today look upon ATMs as a service to their customers and not as income generating activity per se, and take enough care to protect the interest of their customers with a view to protect their own image. All over the world ATMs are the cause of a large number of bank frauds, and India will be no different, more so when the nameless WLAs are installed, where the emphasis will naturally be on generating more income and protecting the interest of the user may receive secondary importance......

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Airtel money enrolls 50,000 subscribers within first 10 days

....“With this, customers can now use airtel money to make payments and transfer money across the country,” he said. The company said customers could choose from two airtel money accounts: express and power accounts. As per the Reserve Bank of India’s (RBI) approval, the former has a daily spending limit of Rs 10,000 and the latter Rs 50,000. The company charges Rs 5 for transaction up to Rs 500, and above that, Rs 10, said Menon........

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Is it time to cut interest rates?

“While inflation is less of a worry than it was in, say, October 2011, monetary policy should take a futuristic view of expected inflation before releasing the pressure”

Madan Sabnavis, Chief Economist, CARE Ratings

“It is important to reverse (or at least stall) the process of the current sequential fall in ‘trend growth’, which is inimical to long-run growth prospects”

Shubhada M Rao, President & Chief Economist, YES Bank

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RBI Official: India Faces Stagflation Risks

………"We have only one actor in the economy who is trying to combat inflation, namely the RBI," said Ms. Rajaraman. "We need the other hand to do the clapping, and that is fiscal policy." Ms. Rajaraman's comments add to the growing voices urging the government to cut its deficit. The government bridges the deficit with market borrowing, crowding out private borrowers.……………

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Tripura to act against NBFIs

AGARTALA, March 6 – Alarmed at the mushrooming of Non-Banking Financial Institutions (NBFIs) in Tripura, the State Government has urged the Reserve Bank of India (RBI) to seek State’s views while clearing license for such business, the Assembly was informed here on Tuesday……….

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Setting a rupee band : Abheek Barua

…..One way to do this would be for the RBI to work with a band for the exchange rate that it would be comfortable with. (It need not necessarily share this with the market.) If the rupee-dollar pair crosses the upper end of this band (that is, depreciates beyond this), the RBI should sell dollars. Conversely, if it falls below the band, it could buy dollars. There is no need to have a rigid band — it could change over time as market conditions change. What is important is the principle…….

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Federal Bank cuts base rate by 10 bps

Federal Bank has become the country’s first private sector lender to cut its base rate, or the minimum lending rate, after the Reserve Bank of India (RBI) changed its stance on monetary tightening last year. The Kerala-based bank cut its base rate by 10 basis points to 10.65 per cent. The new rate is effective from yesterday........

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Federal Bank to open 100 branches

Kerala based Federal Bank on Tuesday announced that it would open 100 new branches and hire 2,000 people. All the 100 branches will be opened at one go on Saturday to take the total network size to 935, executive director of the bank, a Mr Abraham Chacko, told reporters here adding that majority of the branches will be opened outside Kerala.........

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Spandana hopes to better business in FY13, plans to take smaller MFIs’ loan portfolios

....Meanwhile, along with other MFIs, the company would now face another hurdle if the Reserve Bank sticks to its provisioning norms, for arrear periods between 180 and 720 days. Where as, SKS Microfinance has already written off altogether Rs 760 crore until December ended quarter this fiscal........

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Friend, philosopher and guide no more..........

I regret to inform you about the sad demise of Shri S. K. Newlay yesterday night after a brief illness. He retired as Principal  CAB Pune in October 2000. Before that he had worked in various capacities in our Bangalore, Chennai, Guwahati, Hyderabad and DBOD Central Office. He had also worked  as Faculty Member in RBI Staff Training College, Chennai. I had the  opportunity of working very closely with him in Hyderabad and CAB Pune.  He was my neighbour and my friendship with him continued even after retirement . We used to meet almost daily and go for a walk . He had a very pleasing personality endowed with pleasing manners. I have lost a very dear friend, philosopher and guide. May his soul rest in peace. Let Almighty give strength to his family to bear the loss. He is survived by his wife and 2 sons. 

As reported by R.M.Deole, Ex-Chief General Manager

06-3-2012

‘Set up specialised Institutes for Commerce’

.......The celebrations also include an international seminar on MSME sector along with programmes and workshops on strategies for survival and growth of MSME in the globalised era, tribal entrepreneurship, inclusive growth through financial inclusion and issues and challenges of industrialisation. Chief general Manager of RBI, Mumbai, RN Mishra, Utkal University Vice-Chancellor Prof PK Sahoo, Dean and Head of Commerce department Prof KB Das were present.

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