RBI to open branch at Itanagar

ITANAGAR, March 26 – Reserve Bank of India (RBI) will open a branch here soon. Addressing the participants at the financial outreach camp held at Kimin in Papum Pare district in Arunachal Pradesh today, RBI Deputy Governor H.R.Khan said steps would be taken for establishment of RBI branch at Itanagar soon while a State Bank of India (SBI) branch would be opened at Kimin within six months. This will be RBI’s fourth branch in North East after the proposed branches at Shillong and Agartala besides the existing one at Guwahati. Khan also announced that Arunachal Pradesh Rural Bank would be brought under core banking umbrella soon. Underlining the importance of widening banking facilities in all parts of the country, especially in North East to enhance the economy of the region, the RBI Deputy Governor informed that as part of its Platinum Jubilee celebration, RBI has conducted 21 outreach camps in different parts of North East including three in Arunachal Pradesh with an aim to sensitise public about various banking facilities and bring them under the fold of mainstream banking. He cautioned the people against frequent online lottery prize announcements that dupe innocent people and advised people to report such cases to police. Khan further highlighted various innovative schemes launched by banks including National Electronic Fund Transfer (NEFT) and mobile banking which is likely to pick up in next two-three years in the area.  Speaking on the ombudsman role of RBI, B.B.Sangma, the Banking Ombudsman informed the people that it serves as a Banking Lokpal and looks into various complaints of customers relating to banking practices including pension matters, interest rates and shortage of coins, etc. S Marandi, Regional Director, RBI, Guwahati, while welcoming the guests, informed that similar awareness camps in the Northeastern region are being organised to involve people from remote areas to banking practices and thereby to enhance their economic standard.

The Assam Tribune

Speculative innovation

Paul Volcker, former chairman of the US Federal Reserve, used to say the only worthwhile financial innovation in last 60 years is the automated teller machine (ATM). Reserve Bank of India’s Deputy Governor K C Chakrabarty recently quoted Volcker’s famous comment but added in his forthright style, “The ATM was the only innovation; others were only speculation.”

BS

RBI asks banks to locate 1.2 crore inoperative accounts: Government

....... "Keeping in view public interest, the RBI has advised all SCBs (scheduled commercial banks) to play a more pro-active role in finding the whereabouts of the account holders whose accounts have remained inoperative,".........

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No need for signature attestation for opening fixed deposits, lockers: Reserve Bank of India

..... The Reserve Bank on Monday asked banks not to insist on attestation of signatures of persons wanting to invest their funds in fixed deposits schemes or opening a bank locker......

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Payment gateway Rupay launched

...... Reserve Bank of India (RBI) Executive Director G. Padmanabhan said the central bank will not endorse banks to choose the RuPay network. “Banks can choose what they want, but if the costs are so low, then obviously they will save a lot,” he said.......

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Banks should cut transaction charge on debit cards: RBI

..... “We are saying that the debit card interchange fee should be lower because credit cards get paid after sometime, whereas in debit cards, there is an instantaneous debit into my account. Hence, logically debit cards charges should be lower,” said G Padmanabhan, Executive Director, RBI, who is in-charge of the payments and settlement system………

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Debit cards based on RuPay platform launched

.....State Bank of India, Bank of Baroda, Bank of India, and Union Bank of India on Monday formally launched debit cards based on the indigenously developed RuPay payment platform........

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Bank bad loans a concern, effort on to fix it: DK Mittal, Financial Services Secretary

...........There are two type of financial inclusion- one on paper and other in reality. First, we have advised banks to close down dormant nofrill accounts, or to merge them to get a clear picture. Second, we hope that once the ultra small branches become operational, we will be able to resolve this issue. These branches will cost Rs 6,000 each month, which is recoverable easily if they do a business of Rs 5-7 lakh.........

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To fix BPL, nix CPL

One Tendulkar makes the big scores. The other wrecks the averages. The Planning Commission clearly prefers Suresh to Sachin. Using Professor Tendulkar's methodology, it declares that there's been another massive fall in poverty.............

TRead - he Hindu

Beware of fake currency, say police

Coimbatore City Police have asked the public to be cautious as counterfeit currency notes are in circulation. The police said that in the recent past two incidents had come to their notice. In the first incident, a railway employee was found in possession of 15 counterfeit currency notes of Rs. 1,000 denominations, which came to light when he went to a bank to send money to his relatives. In the second incident, a car owner who tried to pay for fuel was found tendering a counterfeit Rs. 1,000 note. Enquiries with the car owner revealed that he got the note from an ATM in Kerala. The police asked public to be cautious while dealing in Rs. 500 and Rs. 1,000 notes and asked commercial establishment owners and employees to be aware of the safety features in currencies.

The Hindu

Banks need to narrow retail, bulk deposit disparity: RBI deputy

.... "If it (the difference between retail and bulk deposit rates) varies too much, then there is something wrong," said Reserve Bank of India Deputy Governor K.C. Chakrabarty on the sidelines of a banking event........

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RBI prevails; bank branches with Rs 6 cr biz to be audited

The finance ministry and Reserve Bank of India (RBI) have finally agreed that bank branches with advances of at least Rs 6 crore are to be audited. The ministry earlier wanted the threshold to be Rs 20 crore. RBI, however, wanted it to be Rs 6 crore.............

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Fiscal deficit estimates are unconvincing

....even though the budget estimate assumes zero net Ways and Means Advances (WMA) from the RBI, in the event of continuation of tight liquidity conditions, the recourse to WMA is inevitable. This development would further aggravate the problems of monetary management. With such fiscal pressure, there is no manoeuvrability left with the RBI for a policy (repo) rate reduction. ........

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Relief and shield for small savers

Rates still lower than banks’ but one-year guarantee to come in handy

........The decision to align the small savings rates to the comparable gilt rates was taken on the basis of the report submitted by the Shyamala Gopinath committee last June after a comprehensive review of the national small savings fund.......

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Reserve Bank tightens fair practices code for NBFCs

The Reserve Bank of India, on Monday, revamped the fair practices code (FPC) to be adopted by non-banking finance companies (NBFCs) while doing lending business.The guidelines covered general principles on adequate disclosures on the terms and conditions of a loan and also adopting a non-coercive recovery method............

Read - The Hindu

MFI sector will take years to recover: Philip Vassiliou

.... While the Bill has a number of shortcomings, it will at least establish the much-needed regulatory clarity and affirm the role of the Reserve Bank of India (RBI) as the regulator…….

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Bad loans are looking bigger because the business has not grown this fiscal

........ How do you see (former RBI deputy governor) Usha Thorat’s recommendations on NBFCs? Is the raising of core capital requirement to 12% from 7.5% a concern?

The raising of core capital by 4.5 percentage points may not be a concern for Shriram Transport Finance. It is the reduction of accounting NPAs to 90 days from 180 days, which small borrowers will take time to adhere, who are not serviced by banks. It will take time for these borrowers to make this cultural shift to follow the 90 days (schedule) and, therefore, till then NBFCs’ books will carry larger NPAs and higher provisioning as a result.......

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Not sure if RBI will cut rates in Apr: Rangarajan

......“I’m not sure what will happen as it would depend on the inflation number for March. But during the course of the year, there is a possibility (of rate cut by RBI),”...............

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A rate cut is required now to boost small and medium units' growth: Rajat Madhok

...... Things are pretty tight at present. Not much capex creation is happening by SMEs. However, the past six months have shown some hope and we can see a reversal coming soon. RBI’s monetary tightening has played a major role in making credit availability tight, but with some indications of revival, we are hopeful of a rate cut now………

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Market to fall if RBI does not cut rates says BNP Paribas

....According to BNP Paribas, in case there is no rate action on 17 April, market reaction would be adverse. The RBI may come up with a guidance in the statement on rate cuts going forward, but that would not help market sentiments as the direction is not the question now, the question is about the extent of rate cuts.......

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Cash crunch in banking system intensifies

....The overnight borrowing signify the intense cash squeeze in the banking system now translated to about 3.4 per cent of the aggregate deposits or way above the RBI's comfort level of 1 per cent. The cash squeeze was partly on account of banks pushing credit ahead of the year end in order to build their asset books, bank officials said......

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RBI asks gold loan cos to comply with KYC norms

Tightening the regulations for gold loan companies further, the Reserve Bank of India has asked non-banking finance companies (NBFCs) engaged in the gold loan business to put in place board-approved policy to ensure that KYC (know your customer) guidelines are complied with and adequate due diligence is carried out before extending any loan. ................

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RBI mulls cashless payment options

SHILLONG, March 24: Considering cash transactions are still predominantly high in the country, the Reserve Bank of India (RBI) is driving ahead in implementing measures to promote the use of cashless payment options among people known as the modern payment settlement system which the RBI is operating. “The RBI has been in the forefront both as operator and facilitator for promoting the use of cashless payment instruments in the country,” Executive Director G Padmanabhan, who is also supervising the Department of Payment and Settlement System (PSS) said, adding, “The technology implementation in banks which have shaped the payment system in turn is largely driven by the recommendations of the various committees set up by RBI.” Chief General Manager in charge of the PSS Vijay Chugh said the workshop with the theme “Look Northeast” would enlighten stakeholders on enhancing the “financial inclusion to modern electronic payment system operated by RBI.” “In these two days we have been deliberating with stake holders on the modern electronic Payment Settlement System and other organization which is part of our vision created in turn contributed to capital namely the National Payments Commission of India (NPCI) to handle the retail payment at ground level,” Chugh said. “This bi-annual conference was held in Shillong so that we could get all the stakeholders of the North East including the government agencies to see that all products available to take the system forward, and to understand any other problems that the users and stakeholders find in the system,” Padmanabhan said.

http://www.sentinelassam.com/meghalaya/story.php?sec=2&subsec=8&id=111579&dtP=2012-03-25&ppr=1#111579

Task force to study issues

............Stating that it would be a huge challenge to make people shift from paper to electronic transactions, Padmanabhan said, “It is not going to be an easy task. For the last few years, we have been undertaking various outreach programmes to make people even in the remotest corners understand the benefits of banking.”....................

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RBI’s bid to tackle problem of fake notes

SHILLONG: In its bid to deal with the problem of counterfeit currency notes in the country, the Reserve Bank of India (RBI) is embarking upon a plan to create awareness among people about cashless transactions. This was stated by the RBI’s Executive Director G. Padmanabhan while participating in a workshop — Look Northeast-Stakeholders Enhancing financial inclusion through modern electronic payment system – here on Saturday. “The RBI has taken up the challenge to take people on the path of “cashless transaction.” Padmanabhan told newsmen after the workshop. He also pointed out that this would help controlling the fake currency note menace. The RBI has also liberalised norms for banking through mobile phones and electronic transfer of cash. According to Padmanabhan, the system has many advantages – it is faster as well as transparent. While removing the apprehensions that online transaction are not safe, he stated that the system is adequately protected” for transactions. “The RBI would never otherwise encourage people to go for this system. And the norms for consumer protection are clearly laid down,” he said. 

The Shillong Times

Sachin Tendulkar's centuries on currency notes

Pune: Fans all around the globe have patronised the ‘Little Centurion’ in different ways. And city’s Mayur Jain has found his own master stroke to salute the master blaster Sachin Ramesh Tendulkar’s rare feat of 100 tons. The book merchant from Raviwar Peth has a record collection of currency notes of Rs 10 denomination featuring the date of each and every century that Tendulkar has scored so far.............

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Govt mulls setting up dedicated cadre for financial services

...... financial services cadre of, say, 1,000 professionals could be set up and provided with intensive training and global experiences on financial markets. Its personnel could be posted in regulatory agencies such as SEBI, the RBI and also in, the Finance Ministry and rotated among these organisations, Mr R. Gopalan, Economic Affairs Secretary, suggested at a Future of Financial Markets (FOFM) event, organised by the Financial Technologies Group in the Capital.........

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BOB launches 1001 Ultra Small Branches under Financial Inclusion

UCO Bank opens First Ultra Small branch in Odisha

Online fraud: Even RBI not spared

Online scamsters, who earlier used the names of top companies or foreign banks, have now started sending out fake mails, supposedly from the Reserve Bank of India, claiming that the receiver has won 500,000 British pounds. To give a touch of “authenticity” to the fraud mail, the scamsters even have added the photograph of RBI Governor Dr D. Subbarao...........

Read - Deccan Chronicle

Govt may now opt for bond issuances of longer tenures

.... In response to the market borrowing target announced in the Budget, RBI deputy governor H R Khan had said the amount was higher than the current financial year and would be challenging for the central bank. He added RBI would deploy tools such as open market operations, cash reserve ratio and liquidity adjustment facility to manage liquidity conditions......

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RBI's move on rate cuts, oil prices to decide market direction: Pathik Gandotra, IDFC Securities

..... The next big trigger is when RBI starts cutting interest rates. It has almost been like 'Waiting for Godot'. I think what's going to happen is that if you read RBI's commentary just after the budget, they said they were happy with fiscal consolidation. If you read the commentary just before the budget, they had said that once they see signs of fiscal consolidation, they will cut rates. So, I think the next move will be that RBI will cut rates in April and that will be a push to interest rate sensitives. So the next move should be upwards...........

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Good shine, bad sign . . .

......Even as the government trying to quell the ‘yellow' fever, the Reserve Bank of India has applied brakes on non-banking finance companies, which survive by merely lending against gold. Such NBFCs have been asked to maintain a loan-to-value (LTV) ratio not exceeding 60 per cent for loans granted against the collateral of gold jewellery. Given the price volatility in gold, this move is welcome.......

Read - The Hindu

Budget: Who gained, who lost & who got forgotten : S.S.Tarapore

.....At an overall level, the Finance Minister has attempted to address the macroeconomic fallout of fiscal dominance with the greater claims by the government on resources, thereby leaving less flexibility to the Reserve Bank of India ( RBI) to undertake any softening of monetary policy........

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Budget has put the RBI in a spot

........The RBI has been repeatedly cautioning the Government that “credible fiscal consolidation will be an important factor in shaping the inflation outlook.” As the situation has not changed much, it will be too early for the Reserve Bank to take a realistic view on the policy rates in its April review. In fact, the Budget has put the Reserve Bank in a tight spot. The achievement of the twin objectives of monetary policy — economic growth and price stability, which includes financial stability — has been rendered an uphill task.

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WILL RBI BITE THE BULLET NEXT MONTH?

.................. In this complex scenario, it will be interesting to see whether RBI bites the bullet on 17 April when it announces the annual monetary policy for fiscal 2013, although the meaning of this phrase could be totally different for the central bank and the government at this juncture.

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High credit-deposit ratio, agri overdues worry bankers

Near double credit-deposit (CD) ratio, as compared to the Reserve Bank of India’s norm of 60 per cent, and the high overdues position in the agriculture sector in Andhra Pradesh have been the major concerns voiced by the bankers at the State-Level Bankers Committee (SLBC) meeting.................

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RBI, Finance Ministry to finalise market borrowing programme on March 27

The Finance Ministry and the Reserve Bank of India are likely to finalise the market borrowing programme for the first half of the next financial year on March 27…………

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Should you consider banks for a gold loan now?

.......Banks also take a relatively longer time to process a gold loan. This is generally because of the additional paper work and some times because of certain procedural delays and glitches at the back-end.

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Is Dhanlaxmi Bank headed the merger way?

..... "Old private sector banks are struggling to find their role in the economy. With the exception of one or two, the others are facing difficult times. The Reserve Bank of India does not micro-manage, but it will take a decision the day they see the depositors' interest being affected negatively.''........

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RBI to compensate banks for loss in N-E service

Shillong, March 23: Having prioritised to provide banking services to the people of North-East, the Reserve Bank of India had decided to compensate commercial banks for revenue loss in the process, RBI officials said today. “RBI will compensate 100 per cent revenue loss to banks for five years as an incentive to push banking inclusion in the region,” the Deputy General Manger of RBI, Mr T. Jamang, told PTI here on the sideline of an annual payment conference of RBI here............

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RBI to monitor banks' global books; SBI, ICICI, BoB among banks to face scrutiny

The Reserve Bank of India will send its officials to thoroughly inspect the fast growing overseas operations of Indian banks as they do for the local business to ensure that events outside the nation do not rock the domestic business…………………….

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RBI policy depends on new CPI, realty data

Hong Kong: The Reserve Bank of India (RBI) will watch the newly introduced consumer price index as well as property sector data for determining its stance on interest rates, a deputy governor of the RBI said on Friday. Speaking at an investor conference in Hong Kong, Subir Gokarn also said a low fiscal deficit would help in bringing down interest rates and boosting investments.  

Firstpost

Standard ratio

This refers to the RBI's directions to gold loan companies capping the loan-to-value ratio (LTV) for lending against gold at 60 per cent. The directions will not put the gold loan companies on a level playing ground with the commercial banks, in respect of which the RBI has not issued any directions for downsizing LTV, and whose cost of funds is much cheaper. While the imperative to contain concentration risk is understandable, it would be in the best interests of the sector if the RBI brought in standard LTV for all gold lenders, including commercial banks.

- Vijay Nair Trivandrum (HBL)

Higher interest rates may hit Rs 33k crore rural projects: Nabard

........ Nabard sanctions and releases funds to state governments for building rural roads, bridges, cold storages and irrigation facilities under the Rural Infrastructure Development Fund (RIDF) scheme. Many state governments feel the RBI diktat is going to violate the loan agreement between the two parties. Nabard chairman Prakash Bakshi said he has written to both the government and RBI inviting their attention to this aspect………

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‘Time for RBI to cut interest rates’

The government expects inflation to stay around 6.5%-7% next year despite the possibility of an increase in oil prices. In an interview, economic secretary R Gopalan told TOI that it may be a good time for the Reserve Bank of India (RBI) to start cutting rates and do its bit in helping boost investment. Excerpts:……………

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Indian bank loans up 16.3 per cent y/y as on March 9, says RBI

Indian bank loans rose 16.3 percent from a year earlier as of two weeks to March 9, while deposits were up 13.8 percent, the Reserve Bank of India's weekly statistical supplement showed…………….

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Moving to loosen monetary policy: RBI

Hong Kong: The deputy governor of India's central bank said Friday the bank is moving toward a looser monetary policy, though the timing of any easing will depend on the state of the nation's economy………

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Rolling back rate cut expectations

...In this season of roll-backs, it’s interesting to see how quickly estimates for interest rate cuts next year are being rolled back. A few months ago economists were pencilling in cuts of 100-125 basis points, with some convinced the repo rate would hit 7% by March next year from the current 8.5%. But those calculations have been upset and, right now, no one’s willing to wager more than a 75 basis points pruning of the key policy rate with a few less hopeful: the Reserve Bank of India (RBI), they say, won’t be in a position to pare it by more than 50 basis points......................

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‘Identifying NPA will be key issue for CAs'

Kochi, March 23: Dr V. A. Joesph, Managing Director and CEO, South Indian Bank, inaugurated a seminar on bank audit, organised by ICAI, Ernakulam branch, here on Friday. Speaking on the occasion, he said a steady increase in rates of interest on deposits and advances during the year may see an increase in NPAs. Hence, identifying NPAs will be a key issue for chartered accountants undertaking statutory audit this year, he said. Dr Joseph also applauded the efforts of ICAI in convincing RBI to fix the criteria for audit of public sector banks branches having advances of Rs 6 crore and above. He also said the presence of auditors will bring in more professionalism in banks. 

HBL

Concept of inflation often misunderstood, says KC Chakrabarty

"...in the banking world, the concept of inflation is often misunderstood by people," Chakrabarty said at a lecture on Tuesday at Banaras Hindu University. "You would often hear this refrain from many persons that despite RBI claiming that inflation has come down in the recent past, the prices have not come down,"…….

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Rate outlook muted on inflation fears

......Core inflation has started falling and the budget arithmetic on how the government will manage its deficit seems credible, both of which will be important triggers for the RBI to start easing the rates when it unveils its annual policy on April 17.......

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Gold lenders lose shine on RBI curbs

Gold loan firms were hit badly after the Reserve Bank of India (RBI) curbed mindless lending by non-banking finance companies (NBFCs) against gold........................

Read - Business Today

SBSA flays RBI decision on business correspondents

.......The SBSA leader alleged that the RBI decision was a superfluous step which would lead to incorrigible frauds in the banking sector, besides inviting unhealthy competition among bankers. If the business correspondents were allowed to tie up with more than one bank, there would be laxity at all levels, he added........

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India’s adviser favours no intervention in forex market now

The Reserve Bank of India need not intervene in the forex market as of now to prop up a weakening rupee, the chief economic adviser in the finance ministry said on Friday. The partially convertible rupee ended at 51.17/18 to the dollar on Thursday, after touching the day’s low of 51.28, a level not seen since 16 January. The unit had closed at 50.66/67 on Wednesday. “This is not that place where I would recommend intervention,” Kaushik Basu said……

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End of the road for SUUTI, new AMC to hold all assets

……..Also, the Reserve Bank of India (RBI) had previously rejected the proposal to reduce margin requirement from the existing limit of 50 per cent. This would imply that half the assets of the new AMC would have to be kept free, which may cut loans to roughly Rs 15,000 crore. The ministry has since reportedly been in consultation with the RBI to relax rules regarding margins and interest rates. It is not clear if the central bank has agreed to any of these proposals………

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Financial services to be kept out of SAFTA talks: Government

The government has decided to exclude financial services from the SAARC agreement on trade in services, following strong objection from the Reserve Bank of India, or RBI. The central bank has argued that India has already allowed access to foreign banks under the World Trade Organization agreement…………..

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Foreign exchange reserves grow to $294.82 bn

India's foreign exchange reserves grew by $862 million to $294.82 billion on the back of a rise in the core foreign currency assets (FCAs) for the week ended March 16, the Reserve Bank of India said in a release……………..

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Financial inclusion needs version 2.0 : Puneet Chopra

The rapid expansion of business correspondents does not mask the cracks in the scheme

……One of the fundamental shifts needed by banks is to recognise and support BCs as a legitimate and full-service channel — an addition to branches, ATMs, kiosks, mobile and Internet channels. This would certainly be a winning proposition for all. All marginal customers can get doorstep (and perhaps superior) services; banks can decongest their branches, and focus on high net worth customers; while BCs would have a healthier business case. Bradesco Bank and Caixa Econômica Federal in Brazil (which, like India, follows a bank-led agent model) have adopted this approach with a great degree of success. Providing a balanced mix of financial products is another critical step needing to be taken and rapidly so……..

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Microfinance programme now has an economy-wide impact

….The paper finds that the typical microfinance programme, when made widely available, can have significant aggregate and distributional impacts, and that the general equilibrium (GE) effects through wages and interest rates are quantitatively important…….

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Greater Mumbai Co-op Bank unveils new logo



Symbolic identity

Mr S. Karuppasamy (right), RBI Executive Director, and Mr Narendrakumar Balota, chairman of the Greater Bombay Cooperative Bank, at a press conference to unveil the bank’s new logo in Mumbai on Thursday

Capital requirements for co-ops to jump manifold: RBI

….."Depending on the location and area...we are coming up (with the guidelines for cooperative banks). There will be liberal norms for setting up a bank in backward areas and slightly tougher norms in the banked areas," RBI Executive Director S Karuppasamy told reporters here. He said under the existing norms, a cooperative bank can be set up with a minimum capital of Rs 15 lakh, which will now be increased to Rs 50 lakh for banks in the backward areas and Rs 3 crore for urban areas which already have banking infrastructure. About the timeline for new guidelines, Karuppasamy said, "We are in the final stage... will come out with it shortly."……

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Cooperative bank earns maximum profit with minimum staff

The Reserve Bank of India has adjudged Manapparai Town Cooperative Bank as one of the 10 cooperative town banks in the State which have earned maximum profit employing minimum staff.

A three-member team of the Reserve Bank of India from Chennai, which visited the cooperative bank to conduct an annual inspection, had disclosed this, said G.Balachandar, special officer of the Manapparai Town Cooperative Bank while addressing its general body meeting held recently............

Read - The Hindu

Dena Bank celebrates International Women’s Day

Dena Bank marked the International Women's Day in the presence of Shyamala Gopinath, Retd. Deputy Governor, RBI. The occassion was graced by Nupur Mitra, the First Chairperson & MD, Dena Bank & Executive Director, Ashok Dutt, Chairman of Women Cell of the Bank and RK Gupta, GM, Dena Bank.

FPJ

Release of currency

The Reserve Bank of India (RBI) would henceforth release 100-note bundles of Rs.1,000 denomination that are not numbered in the regular sequence. In a release here, the RBI said this was to prevent the circulation of counterfeit currency.

HBL

Third ED appointment in large banks delayed

The appointment of a third executive director (ED) in public sector banks, scheduled on April 1, has been delayed due to bureaucratic hurdle. The government was expected to appoint additional EDs in six large public sector banks — Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India, Union Bank of India and Central Bank of India — to begin with. Appointments for other banks were to follow: Smaller institutions such as Bank of Maharashtra and Dena Bank, which have one executive director, were to get a second……

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MP bankers' meet focuses on priority sectors

BHOPAL: Financial inclusion is yet to percolate completely in the state. The State Government was requested to look into the possibility of institutionalizing some kind of cadre from among the youth in the State for BC work on behalf of the banks, according to the state-level state-level bankers' committee. The 146th meeting of State Level Bankers' Committee (SLBC) held here on Wednesday observed that one of the major impediments faced by banks in this respect is of selecting right kind of Business Correspondents (BCs). The meeting co-chaired by the state Chief Secretary Avani Vaish and M V Tanksale, Chairman and Managing Director of the Central Bank, reviewed the performance of the bank during the quarter that ended in December 2011. Addressing the participants Vaish informed that special attention is being given to priority sector and allied sector by the state government. A separate budget for agriculture and allied sector has been conceived and introduced in the state in this year's budget. A total outlay, incorporating the various demands related to the agriculture sector together, has been projected, so that the progress on agriculture becomes clear. He solicited the co-operation of banks for this. It was also said that thrust has been given to agriculture and allied sector in the Budget 2012. Govt of India's desire to identify potential in the Agriculture in each area and focus on it for development was underlined. For effective implementation of Green Initiative of Government of India, Central Bank of India has decided to provide e-Treasury services in Madhya Pradesh. In this context, the State Government was requested to ensure that all EBT payments to beneficiaries who have been issued Smart Cards should be made through smart cards only. The meeting was attended, amongst others, by R Parasuram, Additional Chief Secretary, Ajay Nath, Principal Secretary-Finance, Aruna Sharma, Principal Secretary - Panchayat & Rural Development, Ashok Shah, Commissioner-Institutional Finance and S Choudhary, GM and Officer-in-Charge, RBI, Bhopal.

TOI

RBI Governor D Subbarao’s maiden visit to Jammu & Kashmir

SRINAGAR: RBI Governor Dr D Subbarao's maiden visit to J&K did not impress him at all. Finding the banking sector lending barely 35 percent of the funds within the state led him to fix a target of 40 percent for the next fiscal……………

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RBI's Gokarn Says Inflation in India `Heading Down'

Reserve Bank of India Deputy Governor Subir Gokarn speaks about the impact of oil prices on the nation's economy and monetary policy. He spoke yesterday with Susan Li at the Credit Suisse Asian Investment Conference in Hong Kong.

Watch the video..... 

Liquidity crunch due to high inflation: Chakrabarty

RBI Deputy Governor K C Chakrabarty on Thursday said supply will remain squeeze as long as inflation remains high.  "Liquidity will be tight when we are fighting inflation. But settlements are also happening. Liquidity will remain tight till inflation comes down," Chakrabarty told reporters………

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Financial chaos on the cards - S.S.Tarapore

While the Finance Minister has heroically tried to address the fiscal crisis, the RBI Governor would be well-advised not to take his foot off the brakes until there are clear signs of sustained fiscal consolidation...................

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RBI deferring norms to ease MFIs operations

....With the Reserve Bank of India deferring provisioning norms of bad assets for NBFC – microfinance companies, most players hope this would ease operations for the next six months atleast, helping them maintain net worth and capital adequacy ratio as well, a measure of their financial strength..........

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New gold standard

.....The gold loans are also usually of small ticket sizes made for periods of six months to a year. That – apart from the inherent value of the collateral itself – makes them less risky vis-à-vis lending to power projects or even home loans of 15-20 years' tenure. Moreover, it is not clear how exactly the RBI has arrived at 60 per cent loan-to-value ratio as a safe outer limit for NBFCs, even while not mandating it in respect of gold advances by commercial banks. This, despite the likes of Muthoot and Manappuram Finance having far less proportion of bad loans on their books compared with regular banks. ........

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Gold loan cos welcome RBI move; analysts say will trim margins

……However, analysts said the RBI measures would squeeze their margins and curtail growth. "The RBI measures are negative for the gold financing NBFCs as it will erode their margins and curtail their future growth rate,"…….

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India’s Basel III problem

In order to comply with the Basel III guidelines, aimed at strengthening the global banking sector in the aftermath of the economic crisis of 2008-09, the Reserve Bank of India (RBI) recently announced its draft guidelines for Indian banks. RBI’s guidelines are more stringent than the ones laid down in the Basel III framework. The guidelines lay down strict capital adequacy norms and propose to enhance the quality of the banks’ capital by increasing the equity component therein. These guidelines also propose to augment the loss absorption capacity of the non-equity tier-1 capital and subordinated debt. Indian banks will have to reach the proposed capital adequacy requirements in a phased manner by March 2017, earlier than the 2019 timeframe laid down in the original Basel III framework........

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National Housing Bank plans to broaden its area of expertise

National Housing Bank, or NHB, plans to explore new products like credit enhancement and risk sharing financial facilities in an attempt to broaden its activity as a financier to housing finance companies once the Parliament passes the National Housing Bank (Amendment) Bill, 2012, in the Budget session………..

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Banks may run out of cover to shield trading losses

…..Bankers said that open market operations (OMOs) by RBI conducted this year helped create room for excess supply. However, OMOs may not be sufficient next year given the borrowing. In 2011-12, RBI purchased illiquid government securities worth more than Rs 1 lakh crore to offset the impact of higher-than-budgeted borrowing on yields and liquidity…….

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Markets sceptical of fiscal consolidation

.......With the next monetary policy review due on April 17, RBI should give the government a chance by beginning the easing process. Among other factors, growth of GDP will guide the fiscal consolidation in 2012-13...........

Read - HBL

RBI cancels licences of 3 Chennai-based NBFCs

....RBI, according to separate notifications, has cancelled the licences of three Chennai based companies -- Tamil Nadu Water Investment Company, Ashley Holdings and LSP Finance.......

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RBI Governor slams banks for dismal CDR in JK

RBI Governor D Subbarao (R) speaks during a special meeting of “State Level Bankers' Committee” of Jammu & Kashmir, in Jammu

…..the banking community in J&K should expand the branch network and at least 25% of new branches should be opened in villages with a population of less than 10000 souls. “They should train business correspondents and also lay emphasis on self-help group (SHG) formulation and linking them to banking activities,” he said. It was for the first time in recent past that the RBI Governor addressed SLBC in JK. “The credit-deposit ratio, which was 35% as at the end of December 2011, indicates unsatisfactory performance of banks. This is less than the half of the national average CDR of 75%,” the Governor said……..

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RBI workshop on understanding payment needs of northeast

SHILLONG: With an aim to understand the payment needs of the North East, the Reserve Bank of India is organising a workshop here this saturday, officials said today. Themed 'Enhancing Financial Inclusion through modern electronic payments systems - Look North East', the workshop has been specifically organised to understand the payment needs of the NE region and to provide impetus to the growth of electronic payments. Reserve Bank Deputy Governor H R Khan, its Executive Director G Padmanabhan and the Chief Secretary of Meghalaya W M S Pariat will address the gathering, officials said.  The workshop be attended by senior officials from the eight NE state governments, Central government agencies and Banks.

ET

RBI Governor meets J-K CM

Jammu, Mar 21 (PTI) Reserve Bank of India Governor D Subba Rao today met Jammu and Kashmir Chief Minister Omar Abdullah here and discussed matters relating to the functioning of banks in the state, and assured full support in strengthening the financial institutions…………….

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Banks should open 25% branches in unbanked areas: RBI

….."At RBI we have said at least 25 percent of all the branches opened in a given year should be opened in unbanked areas with population of less than 10,000," RBI Governor D Subbarao told a state-level conference of bankers Wednesday. "I hope that prescription would be complied with (by all the banks). It should be done in consultation with state government," the Governor further said while referring to financial inclusion and awareness drive……

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India-US trade vital for global economy: Godrej

(from Left) Mr Ron Somers, President, USIBC, with Mr Terry McGraw, Chairman, USIBC, Dr Subir Gokarn, RBI Deputy Governor, and Mr Adi Godrej, President Designate, CII, at the CIIUSIBC Leadership Round Table session in Mumbai on Wednesday

HBL

We may differ with RBI, but come to a consensus: D K Mittal

People are bound to have different opinions in any system, but they ultimately reach an understanding, says D K Mittal, secretary, financial services. In an interview with Vrishti Beniwal, he defends rumours about differences between the government and the banking regulator over issues ranging from new bank licences to bank account portability. Edited excerpts:…………

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Debate on separation of public debt office from monetary management continues

Separation of the public debt office from monetary management is being debated at policy level since as early as 1997, during which five finance ministers and three RBI governors have been at the helm. A working group on separation of debt management from monetary management submitted its report to the Reserve Bank of India in December 1997…………….

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Bill to amend Banking Regulations Act hangs

………The finance minister has again promised to table the bill before Parliament, but this time he may face resistance not only from Opposition parties, but also from allies, who stall new measures. The bill also empowers the Reserve Bank of India to supersede the board of banks and has an enabling provision that no individual or an entity can acquire stake in a bank above 5% without their approval. As of now, the Reserve Bank of India exercises these options under its power to issue direction, but not under the legal framework.

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Bank cricket losing its charm for want of jobs

………..Shridhar Korgaonkar of RBI was of the view that the job opportunities will get the interest back in to the tournament. “It is one of the biggest tournaments for bankers. Many leading cricketers have participated in it, but lack of job opportunities to cricketers is just not helping the cause. It is sad to see that these youngsters who play on stipend or contracts will not get jobs in future. The management should create opportunities for the young cricketers, otherwise it will be very difficult in future.”…………….

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Can Mumbai ever become international Financial Hub?

....... Of course, the sign of things to come was apparent at one of the functions to debate on the topic. When Rakesh Mohan, the then RBI Deputy Governor, got up to speak on the topic, the sound system fell silent. In desperation, he asked: "Can this city become one?"

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Banking Ombudsman: Slipping Badly

.............On one hand, RBI has deregulated rates and charges and does nothing about the rampant mis-selling of insurance and other products by banks. On the other, stricter account-opening and KYC rules as well as linkages, electronic payments of bills or auto debit on loans and mortgages, make it difficult for customers to switch banks. We need proactive BO to hear customer issues, dispense justice and also provide feedback to RBI to frame better regulation. Is RBI listening?

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RBI offices to remain open on Mar 31 for special clearings

……"With a view to facilitating accounting of all government transactions of the current financial year (2011-12)...all regional offices of Reserve Bank of India and branches of agency banks have been advised to conduct "Special Clearings" with same day return clearing in the evening or night of March 31, 2012," the central bank said in a notification……..

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Strengthen NPA database through existing systems: RBI

……."The RBI plays an important role in providing a large pool of statistics as public good. This, however, puts on it the concomitant responsibility to provide timely, reliable and meaningful data and its dissemination, by harnessing technology to its fullest possible extent,"……

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Stricter norms for jewel loans by NBFCs

.....In a significant move, the Reserve Bank of India (RBI) has tightened the rules for lending against gold jewellery by non-banking finance companies (NBFCs). It has now made it mandatory for NBFCs to maintain a loan-to-value (LTV) ratio of not exceeding 60 per cent for loans granted against the collateral of gold jewellery. Also, it has made it compulsory for them to disclose in their balance sheet the percentage of such loans to their total assets............
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Read - The Hindu

PPF may earn you 9% from April 1

Just a week after the interest rate on deposits to the employees’ provident fund was slashed by 1.25 per cent for 2011-12, the government is set to hike the rate of interest on small saving instruments like the Public Provident Fund (PPF) starting April 1............

Read - Indian Express

Impatient banks move ahead with… RATE CUTS

Tired of waiting for the Reserve Bank of India (RBI) to cut rates and give them a cue, commerical banks are taking matters into their own hands. While substantial cuts in bank base rates have not yet happened, lenders have begun giving small reliefs in various products, to ensure that the customer gets a fair deal...................

Read the full Story - DNA

RBI to conduct survey on collateral issue of banks in J-K

…."As a point was raised about denial of credit facility to entrepreneurs on the demand of collateral is concerned, RBI will conduct a study, a survey in J&K (in this regard to find out for itself)," RBI Governor D Subbarao told a bankers conference Wednesday………

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Take the short-term route

.... However, the Reserve Bank of India's (RBI) capital injection hasn't quite stabilised the debt fund market (March typically sees a tight monetary situation). In the last six months, the apex bank injected Rs 2 lakh crore into the banking system, by lowering the cash reserve ratio (CRR) and through open market operations (OMOs)…..

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SKS Microfinance in focus after RBI extends deadline for micro-lenders' provisioning

…..SKS Microfinance will be in focus as the deadline for new provisioning and asset classification norms has been extended by a year. The Reserve Bank of India (RBI) has deferred the implementation of asset classification and provisioning norms for non-banking financial company-micro finance institutions (MFIs) to 1 April 2013, from 1 April 2012. The move is after taking into account the difficulties faced by MFI sector and the representation received by it, RBI said in a notification………

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No rebate on investment in infrastructure bonds to hit taxpayers

Taxpayers may have got some relief through the increase in the basic exemption limit and widening of the 20% tax slab, but the government has taken away a crucial tax saving option. The budget for 2012-13 has not extended the Rs 20,000 rebate available for investments in infrastructure bonds this year, which was over and above the Rs 1,00,000 maximum rebate available under Section 80C. Infrastructure bonds allowed taxpayers in the highest 30% slab to save a maximum of Rs 6,180 in tax……

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Subbarao meets J & K Governor

Jammu, Mar 20: Dr. D. Subbarao, Governor, Reserve Bank of India met N. N. Vohra, Jammu and Kashmir Governor, at Raj Bhavan here this evening. During their meeting, the Governor and Dr. Subbarao discussed various important issues relating to the speedy socio-economic development of the State, functioning of the banking sector in the State and ways to enhance financial inclusion, particularly in the rural areas.

Greater Kashmir