......“These beneficiaries are not only inhabitants of rural villages but also comprises of urban poor and slum dwellers residing in the Urban/Metro centres,” the finance ministry circular to all State Level Bankers Committee said.
Read - BS
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Monday, August 27, 2012
Govt asks banks to ensure one a/c per urban poor family
Read - BS
FM's constituency bankers' favourite
....the total number of bank branches in Sivagana district, from where Chidambaram hails, is 184, including 87 rural and 97 semi-urban. In 2011-12, the banks had set a target to disburse Rs 1,125.05 crore, and they disbursed Rs 1,284 crore, an increase around 14 per cent......
iCreate’s Biz$core ADF Solution Selected by Bank of America NA, India for RBI ADF Reporting
...Bank of America sought a solution to help address RBI’s ADF compliance directive by enabling automation of the various regulatory returns that the bank submits to RBI. The solution had to integrate seamlessly with the bank’s data repository and enable a straight through processing of the returns from the data repository. The solution had to be designed for quick implementation.......
Read.......
SBI mulls working on Sundays to improve efficiency
.....Being open on Sundays is said to help the branches attract the new-age working class customers where both the spouses in a household work and struggle to do banking transactions during the week. SBI, which has almost 14,000 branches across the country, counts on its large chunk of savings account deposits (at over 38 per cent) for higher margins. However, if such a move were to be made, it would be interesting how the bank unions, which had crippled banking operations across country last week protesting reform measures, take to such a proposal.......
Rajan to take charge as CEA on Aug 29
...."Raghuram Rajan will take charge as chief economic advisor in the Finance Ministry on August 29," .......
Read - BS
Read - BS
Leaders beckon Indian youth to join politics
.....Dr. Jalan said cynicism towards politics and Government functioning had attracted India’s best talents to other fields. “Take a long view towards 2025 or 2040. I would ask the youth to launch a young political movement. Give five years of your life to public service,” Dr. Jalan said......
Read - The Hindu
Visit your old bank locker before it’s too late
.....Referring to a case where arms and explosives were found in a locker, the Reserve Bank of India, in its guidelines to the banks on the operation of safe deposit lockers, advises them to strictly monitor the operations of the lockers and ask customers who have not opened their lockers for over three years (One year in case of ‘high risk’ customers), an explanation for it in writing and allow the continued use of the locker only if there is a satisfactory response........
Saturday, August 25, 2012
RBI office to improve credit-deposit ratio
....The RBI office in Shillong is the third in the Northeast after Guwahati and Agartala. It is in Apphira Building, Fruit Garden, along the Shillong-Jowai Road, and will function under the charge of General Manager P. Shyam Sunder. The office is expected to focus initially on the development of banking services in the state, and gradually take up other central banking functions........
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Former Reserve Bank of India deputy governor Rakesh Mohan on the outlook...
India's economy could return to growing by eight per cent in the medium term, thanks in part to the "pretty good" financial health of the domestic corporate sector and the country's strong savings, says Rakesh Mohan, former Deputy Governor of the Reserve Bank of India
Ringside view of the economy
I. G. Patel’s remarkable quality of being willing to change his views when confronted with new data served him well in his policy-making role.I. G. Patel was clearly not enamoured by all the talk of India becoming a superpower in years to come. He favoured a more modest role for the country.............
Read - HBL
RBI stresses entrepreneurship in NE to raise CD ratio
Shillong : ....Notwithstanding the backwardness of the region in terms of financial exclusion, the RBI Dy Governor said that banks and state governments have to work towards achieving overall growth. “There is no inclusive growth without financial inclusion, which is linking everybody with banks,” Chakrabarty explained.......
RBI to float global tender on polymer bank notes
SHILLONG: The Reserve Bank of India (RBI) would soon float global tender for introducing polymer currency notes, Deputy Governor K.C. Chakrabarty said Friday. "We have already submitted our proposal to the Ministry Of Finance and Ministry of Home Affairs for clearance. Once it is cleared, then our next process is to float global tender for introduction of polymer bank notes," Chakrabarty told journalists after inaugurating the RBI branch office here in Meghalaya.....
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Distribution, delivery problems leading to coin shortage
Shillong, August 24: RBI Deputy Governor KC Chakrabarty said “distribution” and "delivery” are the contributory factors leading to shortages of coins and currency notes in the country........
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Trader held with counterfeit notes worth Rs 29k
...The fake notes which initially fooled some bankers have watermarks that look exactly like those on genuine currency. Bank employees were on strike when crime branch officials seized the fake currency. "Since we could not use the UV machine at any bank, we headed to a petrol pump where UV light machines are a norm. A petrol pump employee however was quick to recognize the counterfeits by feeling the currency note. He told us 'The Reserve Bank of India' on currency notes is embossed. This was not so in the fake notes. A metallic strip that runs down the middle of currency notes appears green and blue at different angles in genuine notes, in the fake it remained green. The UV light later further confirmed what the employee had said.
If Subbarao’s a hawk, he should be raising interest rate
....Not one of the analysts polled before the policy thought that the central bank should raise rates, which is what this writer has been urging for months. Apart from raising rates, the Reserve Bank of India (RBI) should move to a fixed CRR (cash reserve ratio) regime, instead of tinkering with it all the time. It would be even better if it abolished paper money – created by the printing presses – but this would be a really outlandish suggestion for the current crop of central bankers who love to print money..........
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DRM for Banking
Sanovi Technologies has announced its DRM for Banking solution. This software complements the company's existing DRM Suite, helping banks automate their Business Continuity and Disaster Preparedness plan and comply with the regulations and guidelines set out by the Reserve Bank of India. This launch comes in the wake of the approaching one-year deadline set by the RBI's Working Group on Information Security, Electronic Banking, Technology Risk Management and Cyber Frauds (also known as the Gopalakrishna Committee) for implementation of their recommendations on Business Continuity Planning (BCP) in Banks. In its role as regulator for banking operations in the country, the RBI had issued its policy guideline contained in the report of the Working Group under the Chairmanship of Shri G. Gopalakrishna, Executive Director, RBI...............
Don’t wait for RBI
......A reduction in the headline rate of interest by the RBI will help in the short term. What will help more in the long run, however, is for investment to be treated as a matter of urgency by the government.
ICAI to meet FM on bank branch audit in September
....A committee comprising officials of the RBI and the Ministry of Finance had proposed increasing the minimum advance limit for the PSU bank branches eligible for independent audits from Rs 6 crore to Rs 20 crore from 2012-13.......
Chennai Youth Discover the Awesome Power of Compounding
``Compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn`t, pays it.``..........
Read........
India not saving enough, says RBI
....“According to the preliminary estimates released by the Reserve Bank of India (RBI), the drop in net financial savings can be attributed to an absolute decline in small savings and lower growth in households’ holdings of deposits, currency and life insurance funds,”.....
Read - DNA
Bengal urges financial institutions to set up offices in Kolkat
....West Bengal Government minister for Urban Development and municipal affairs Firhad Hakim said Kolkata was one of the fastest growing financial cities in the country and the industry should benefit from the locational advantages on the newly planned hub. Representatives of banks Reserve Bank of India, State Bank of Hyderabad, Andhra Bank, Canara Bank, Bank of Baroda, SIDBI and other financial institutions were present in the meeting.
Karnataka Banking Ombudsman resolve 3,563 complaints in a year
Bangalore: Karnataka's banking ombudsman received 3,647 complaints and resolved 3,563 of them between July 2011 and June 2012, reports PTI. "The complaints pertained to net banking frauds, delay in payment of pension, clearance of cheques and issue of credit and debit cards," Karnataka's Banking Ombudsman M Palaniswamy told reporters......
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Sebi seeks further comments on financial education strategy
.....The draft National Strategy has been prepared under the aegis of the Sub Committee of the Financial Stability and Development Council (FSDC) and the time line is being simultaneously extended by all financial sector regulators, Sebi said. FSDC has representation from Sebi and RBI among other regulators and policy makers of the country.......
RBI for Singaporean way of project clearance, blames babus
Mumbai: Alarmed by the slowdown in infrastructure projects due to policy delays, the RBI put the onus on the bureaucracy, reports PTI. It advocated the Singaporean practice, where multiple agencies and ministries sit together to give their decisions on investment project clearances quickly. "The onus for such clearance clearly rests on the bureaucratic machinery," RBI said in its annual report, released on Thursday........
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Gold loan cos cut rates by 300 bps on new norms
Increased competition from banks and stringent regulations from the Reserve Bank of India, such as stricter KYC norms as well as the 60% cap on loan-to-value (LTV) ratio, has forced gold loan companies to lower interest rates to attract borrowers..........
Government ropes in corporate honchos to reform regulatory norms
....Apart from corporate leaders, the committee includes sectoral experts from banks and research institutes and representatives from ministries such as finance, commerce and industry, power, petroleum and also the Reserve Bank of India. The committee will gauge and suggest ways to improve the compliance climate in India and also suggest measures to incorporate good corporate governance practices to bring in credibility in conducting businesses......
Traders come down against bank stir
Kochi : .... Earlier, the RBI had made a clearance arrangement through a few new generation banks in the event of a strike. But the step was not effective. The striking employees have been found to disrupt the smooth functioning of the alternate arrangements as well. “Earlier, the RBI had taken steps for the speedy clearance of transactions. But since the strike was an all-India one, the system could not come handy,” said K S Raveendran, Special Assistant, Reserve Bank of India......
Friday, August 24, 2012
RBI’s Laundry List to Govt for Cutting Rates
MUMBAI: The Reserve Bank of India (RBI) has listed a litany of problems the hobbled Manmohan Singh government needs to address to prevent the economy from plumbing new depths, as lower interest rates alone won't pull the economy out of malaise.........
Interest on CRR, a big mistake - S.S.Tarapore
......From a macroeconomic policy viewpoint, it is convenient to slur over hard policy options by forcing the RBI to reintroduce interest payment on CRR balances. It has taken the RBI the good part of 20 years to claw back the effectiveness of the CRR instrument. Many years ago, I had called the payment of interest on CRR balances as one of the mortal sins of central banking. Having expiated this sin after a 20-year battle of attrition, the Praetorian Guards of the RBI should ensure that it does not revert back to this mortal sin. The RBI would do well to recall the words of the Prophet Zarathushtra: “He who learns nothing from the past will be punished by the future”.
RBI branch in Shillong
Spandan Borah, Guwahati (Aug 22): To boost its presence in the Northeastern region, the country’s central bank is all set to open its third office in Shillong on August 24. The new sub-office will be inaugurated at 11 am on Friday by the Deputy Governor of the RBI Dr K.C.Chakrabarty, an RBI press release stated. The RBI Shillong office will be housed at Apphira Building, Fruit Garden along the Shillong-Jowai road. Thirty banks are currently operational in Meghalaya, according to statistics available on the RBI website. Of these, 26 are commercial banks, three co-operative banks and one regional rural bank. Incidentally, the central bank has offices in Guwahati and Agartala in NE. The RBI data paint a dismal picture for the state where commercial banks cover 61 per cent of those in the banking network while the regional rural banks account for 22 per cent of those in the realm of banking leaving cooperative banks to cover the rest. The apex bank has also expressed its anxiety at the low level of credit deposit ratio in the state. Its report says that the overall CD Ratio of the state has shown a little improvement to rise from 30.96 per cent as on March 31, 2011 to 37.04 per cent as on March 31, 2012. “Banks with unsatisfactory performance were advised to gear up their performance so as to achieve a benchmark level of 40 per cent. They were specifically advised to augment flow of credit to agriculture, MSME sector and education loan in order to give a fillip to these sectors,” the RBI report reads.
Seven Sisters Post
Open secret
A reputed business school was hosting a Reserve Bank of India Deputy Governor for a conference. When asked about media coverage for the event, the communications officer of the business school expressed utter surprise that the press even knew about it. Apparently, the conference was a closed-door one that was supposed to be out of bounds for the media. The business school administration, however, had reckoned without the central bank’s transparency. RBI had, in fact, proudly announced details of this conference on its website.
BS
RBI versus PMEAC
Apart from differing on the GDP forecast, RBI counters PMEAC projection of meeting the fiscal deficit target
RBI’s Annual Report, released just six days after the PMEAC’s Economic Outlook, is hard-hitting and gloomy at the same time. RBI has placed on record the hard reality that we should now see clearly and has also indicated that we need a very big overhaul of the way in which we operate, but this, unfortunately, does not seem to be forthcoming.
RBI stays hawkish, urges govt to trim expenditure
The Reserve Bank of India (RBI) said on Thursday that fighting inflation remained the cornerstone of its monetary policy, and urged the government to cut expenditure, indicating it was unlikely to act soon to ease rates despite slowing growth............
Financial inclusion: India scores poorly on global stage
....RBI has admitted that they have faced criticism from extreme votaries of strong interventionist policies to promote financial inclusion and it was argued that such directed lending rates leads to mis-allocation of resources. However, the central bank said it has striven to ensure a balance between equity and efficiency considerations so that financial inclusion is furthered while not compromising on the financial health and the lending capacities of the banks......
RBI to conduct field trials of Rs 10 polymer notes in five cities
...It has been decided by the Government of India and Reserve Bank of India to introduce Rs 10 notes in polymer /plastics on a field trial basis," Meena said in a written reply to Rajya Sabha. He said the RBI has informed that field trial is proposed to be conducted at five places -- Jaipur, Shimla, Bhubaneshwar Mysore and Cochin, keeping in view of "the varied geographical locations and climatic conditions." .......
Coins in short supply
Re 1, Rs 5 coins most in demand: RBI survey
....A quick survey by the Reserve Bank of India on the availability of coins across 12 cities (100 respondents in each city) bears out the fact of coin shortage in the country. The survey was conducted in February 2012 following rising complaints from the public regarding non-availability of coins.......
FM P Chidambaram agrees to lateral hiring of bank chairmen, decides to favour precedence over merit
......the appointments for the key post in Bank of India,Bank of Baroda and Canara Bank were earlier to be filled through executive directors and not chairmen of smaller state-run banks, which was a precedent. The selection panel, which also has senior RBI officials, had selected six candidates for filling up the vacancies in 2012. But now, the current chairman of Indian Bank TM Bhasin will move to Bank of India and present UCO Bank chairman Arun Kaul will join Bank of Baroda..............
Read - ET
Banking on the Sarfaesi Act
...........The Sarfaesi Act was a remedy brought out by the government of India to sort the menace of non-performing assets (NPAs). Its constitutional validity was upheld by the Supreme Court. The Act can be invoked when an account becomes an NPA according to the norms set by the Reserve Bank of India (RBI). Banks only endeavour to recover NPAs (bad loans) and there can’t be any discrimination among their borrowers. However, if borrowers are wilful defaulters, banks ensure that their names are included in RBI’s wilful-defaulters list to ensure that such borrowers are not able to avail of further credit facilities from banks.......
10 things from RBI’s annual report that suggest tough times ahead
The Reserve Bank of India annual report for the year 2011-12 has highlighted that inflation is the biggest enemy for India’s economic growth. The review and prospects section of the annual report has ‘inflation’ mentioned 66 times. Here are 10 things to note:
Indian banks allowed to operate in Pakistan
SINGAPORE - India and Pakistan have agreed to allow two banks each from both countries to set up branches across the border. State Bank of Pakistan Governor Yaseen Anwar said this while talking to Indian media here on Wednesday. “We have held discussions with the Reserve Bank of India and both sides have agreed to issue a full banking licence to two banks of each country,” Anwar told Indian media on the sidelines of a conference organised by Institute of South Asian Studies.......
RBI allows seven foreign banks to set up their branches in India
The banking regulator, Reserve Bank of India, has approved the proposals by seven foreign banks seeking permission of the regulator to open branches in the country. The banks will reportedly set up their businesses by the mid this August this year..........
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RBI raps banks for violating KYC norms
.... We conducted summary proceedings and found the banks guilty, they went in for appeal to the appellate authority (Deputy Governor, RBI) who upheld two of our verdicts. The third one is yet to be decided," said RBI Karnataka Banking Ombudsman M Palanisamy.......
ICICI Bank starts 25 e-branches
ICICI Bank, India’s largest private sector lender, today rolled out 25 “electronic branches” across 18 locations in the country. As part of its new technological initiative, the bank also launched a range of internet-based banking services for customers........
RBI monetary policy blocking fresh investments: Ficci
GUWAHATI: The Reserve Bank's monetary policy is impeding the country's growth and blocking fresh investments, Ficci President RV Kanoria said today. "The RBI policy of monetary tightening is inhibiting fresh investments and hurting growth. The government and RBI need to take steps to bring down the interest rates," he said..........
Read - ET
Read - ET
Banks need Rs 1.75 tln fresh capital to meet Basel III: RBI
For the first time, Reserve Bank today quantified the cost of implementing Basel-III norms, pegging the recapitalisation needs of the banking system at Rs 1.75 trillion, but added that it is manageable........
Outward FDI increasing significantly: RBI
Pointing out that outward FDI has increased significantly in recent years, the RBI said while these investments generate benefits in terms of enhanced competitiveness and market access, there is a need to balance the domestic investment interests in the overall FDI policy.......
Fixed Deposits: Call option for finance companies
Under the RBI ordained “call option”, finance companies are officially allowed to return deposits anytime after three months of raising funds. Is this fair to the investors?.......
Floating rate term deposits: Will it benefit a common man
....The Reserve Bank of India advocated the cause of introducing floating rate based deposit plans to boost the sluggish deposit growth. Also, the central bank is in favour of bringing in suitable new investment concepts in India, which are very popular in developed markets.......
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Prune deficit, give space for monetary action: RBI to govt
...."With limited fiscal and monetary space available to provide a direct stimulus to domestic growth, an expenditure switching policy is needed that reduces government's revenue spending by cutting subsidies and using the resources so released to step up public capital expenditures. Such an action would also provide some space for monetary policy, but, importantly, lower interest rates alone are unlikely to jumpstart the investment cycle,"........
Debt management, big challenge for RBI in FY12
Increased government borrowing posed a challenge for the debt management operations of the Reserve Bank of India (RBI) in 2011-12. However, the central bank successfully completed the fund raising on behalf of the government of India through efficient open market operations (OMOs).......
SBI chairman pitches for abolition of CRR
Kolkata: State Bank of India Chairman Pratip Chaudhuri Thursday made a strong pitch for the abolition of cash reserve ratio (CRR), saying that keeping required funds with the Reserve Bank without any interest was costing the banking system about Rs 21,000 crore. RBI should either do away with CRR or compensate the banks for the losses incurred as the banking system was not earning any interest on it, Chaudhuri told reporters on the sidelines of Ficci Banking Conclave here........
Lower rate alone can’t prop up economy: RBI
Mumbai: The Reserve Bank of India (RBI) said on Thursday that lower interest rates alone can’t help prop up investment and put Asia’s third largest economy back on the growth path, reiterating that the government needs to embark on policy reforms to iron out structural issues and fast-track infrastructure projects.........
Government should make major investment in mining sector and penalise unused mining rights: RBI
MUMBAI: In a bid to kickstart the economy the Reserve Bank of India (RBI) called upon has government to take major investment initiatives in mining sector and take steps to attract FDI in this sector..........
Read - ET
Growth may be back on track next year, says RBI
......“The government in August 2012 has promised to take several steps to address macroeconomic weakness. As these steps materialise, growth could gradually start improving later this year and the trend growth can be restored next year,”.......
India's central bank gives growth warnings
....."Macro-economic conditions are unlikely to improve in the near term as a spell of policy stasis, structural and cyclical problems have combined to slow down the economy,".........
Read more................
RBI calls for subsidy cut, increase in public capital spend
Underlining the fact that growth during the current fiscal is expected to remain at the lower side compared to the previous financial year, the Reserve Bank of India (RBI) - considering the limited fiscal and monetary space available - has suggested the Government to cut down on subsidies and use resources saved by doing so, for fuelling public capital expenditure.......
RBI worried over rapidly rising housing, gold prices
......“These two markets (housing and gold) have not only provided effective inflation hedges, but also enabled savers earn good real returns amidst high inflation.”.......
RBI bats for more FDI in retail, insurance and aviation
....The RBI said FDI in retail may be particularly helpful in improving supply chain management through greater investment in backend infrastructure, including cold storage for farm and poultry products......
Day-II of bank strike: Cash crunch hits ATMs
.....Several ATMs ran out of cash causing hardship to the common man on the second day of the two- day strike called by PSU bank unions to protest against reforms and outsourcing of non-core activities................
Customers bear the brunt of bank strike
Thousands of customers felt the heat on Wednesday as bank employees did no work in response to the two-day national strike called by the United Forum of Bank Unions (UFBU). The protest, which was in opposition to the new reforms initiated by the central government in the banking sector, left account holders fuming........
WB urges financial institutions to set up offices in Kolkata
.......West Bengal Government minister for Urban Development and municipal affairs Firhad Hakim said Kolkata was one of the fastest growing financial cities in the country and the industry should benefit from the locational advantages on the newly planned hub. Representatives of banks Reserve Bank of India, State Bank of Hyderabad, Andhra Bank, Canara Bank, Bank of Baroda, SIDBI and other financial institutions were present in the meeting.
Thursday, August 23, 2012
Subbarao isn’t an isolated hawk on inflation anymore
CCTV alone not a solution, say experts
....Former Security Advisor to RBI Maj Gen (Retd) Soli Pavri —his vision paper on security of RBI had won appreciation from the RBI Governor — said, “Our approach to security is reactive which should ideally be predictive. CCTV is helpful after the crime. It is in no way a crime prevention gadget. It is wrong to assume your city is 100 per cent safe because you have installed CCTVs. It is helpful on premises such as municipal corporations and airports where controlled movement of population is monitored. But in cities, especially, if we are installing them to counter terrorism, I doubt how much it can help given that a terrorist who is willing to die is not bothered about whether he is being photographed or not.”........
Awareness drive against fake currency at Jaisalmer
JAISALMER: The Reserve Bank of India (RBI), worried over increasing cases of fake currency at the border areas of Rajasthan, has started awareness campaigns to alert the general public about counterfeit notes. Teams of RBI officers are visiting border areas and holding workshops and meetings. RBI General Manager B.S.Khatri, who is on a visit to Jaisalmer, said that RBI is making all possible efforts to stop circulation of counterfeit notes.................
Personal loss of a wonderful boss...........
I had the privilage of working with Ms.Nalini Ambegaonkar for over over 7 years--first at the Division of Trade in Economic Department for nearly 5 years and latter at CPC for nearly 3 years. I have only fond memories. It is true that many of my colleagues found it extremely difficult to work with her. But, from my own experience, it could vouch that she was much misunderstood in this respect. All she expected from her junior colleagues was sincerity in the work, English without mistakes, and absolutely no gossip especially about her. Once one meets these requirements, she had been an angel. In fact, when she became in-charge of CPC, she wanted one of two of us--Shri. R.V. Borkar or me (I was sent because I was Junior)--who faithfully met these needs. The nobility streak was very much in her. Again, I have several instances to this effect. Hers was a great soul. I feel a personal loss of a wonderful boss for whom I have a high regard and respect. I pray for her.
- Dr. N Nagarajan, Ex-Advisor, DEAP, RBI, CO, Mumbai (via e-mail)
RBI needs to be proactive
..... While the ratio of restructured standard advances to gross advances is 1.45% for agriculture, and 2.3% for micro and small enterprises, this is a whopping 9.34% for medium and large industrial units. It’s not enough for the deputy governor to make such statements, RBI needs to follow this up with some serious action.
Govt now wants competition watchdog to okay bank mergers
....If this decision is enacted into law, the RBI will not have the last word on bank mergers and acquisitions, as envisaged, sources said. “The entire para in the original Bill that brings bank mergers out of the CCI ambit will be deleted.”........
Regulatory issues pose hurdle on buyback route
....“Going by recent trends, PEs are not able to use the buyback route for exits,” said Aakash Choubey, partner Khaitan & Co. “This is largely due to the fact that in certain cases, buybacks may be regarded by the regulator as put options and would, therefore, be unenforceable. Also, there is challenge of meeting RBI (Reserve Bank of India) pricing requirements, as well on those on buyback.”......
Banking Ombudsman: to the aid of the customer
.....The Banking Ombudsman is appointed by Reserve Bank of India. He is a senior official appointed from the staff of the office of RBI. Unlike many other sectors where the senior authority usually a retired official holding top positions in government institutions/banks, the banking ombudsman is an in-service official of RBI mostly Chief General Managers/senior General Managers. Under the amendment in the year 2006, it was decided that the banking ombudsman should not be from any bank and should solely be from the staff of RBI so as to maintain the idea of impartial justice. There are 15 offices of banking ombudsman in India presently. A customer has to file his complaint to the nearest office in his area.......
Banking activities paralysed as strike begins
Business and commercial activities across India were paralysed Wednesday as employees of public sector and private banks went on a two-day strike to protest proposed amendments in banking regulations and outsourcing of jobs.............
RBI, 926 bank branches to collect advance tax in Mumbai
..."As many as 926 computerised branches of public and private sector banks will receive advance income tax in Mumbai and Navi Mumbai. These arrangements have been made for the convenience of the income tax assesses," RBI said in a notification Wednesday.......
PSBs must rejig loan portfolios
....A recent speech by an RBI Deputy Governor K.C. Chakraborty highlights the dubious asset quality of public sector banks (PSBs) on account of the dramatic rise in loans restructured in 2011-12. The restructured advances of PSBs rose by 48 per cent, taking the share of restructured advances as proportion of gross advances to 5.73 per cent in 2011-12......
Why bad loans may be higher than what banks, RBI claim
......RBI had of late, regulated the process of recognizing NPAs. Instead of doing manually, most banks now identify bad loans through computer generated system. An asset turns into NPA when a loan account stops repaying interest for 90 days. Despite this core banking solution, many industry experts believe, banks still have a room for hiding NPAs. They resort to certain adjustments so that some NPAs do not reflect in their books of accounts especially at the quarter-end. For example, bank managers can coax borrowers to make some payment at the end of every quarter, which will then be reversed the next day............
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Floating rate deposit scheme from IDBI Bank
IDBI Bank, on Wednesday, became the first lender to come out with a floating rate deposit product after the Reserve Bank of India nudged banks to switch to such mode of deposits in July.........
MFI to grow 25% outside Andhra, says regulator
.....“In Andhra Pradesh, the logjam still continues. Due to the crisis, the employee base has been reduced by one-third from 60,000 to 37,000. Besides, the branch network of the companies also fell by 35%,” said Prasad. MFIN has approached RBI for restoring a cap of 12% on margins for large MFIs...........
RBI scrutinising systems of HSBC and Standard Chartered bank
The Government today said the Reserve Bank is scrutinising the "systems" of HSBC Bank and Standard Chartered Bank related with anti-money laundering (AML) and KYC norms. "RBI is scrutinising the AML/ Know Your Customer (KYC) systems of two banks (HSBC Bank and Standard Chartered Bank)", Minister of State for Finance S S Palanimanickam said in a written reply to the Lok Sabha.........
A Tale of Two Dips: Gold Demand in India and China
......The Reserve Bank of India (RBI) recently considered clamping down on gold coin sales by banks.
Edel Tully, precious metals strategist at UBS, said that ”coin demand is the smallest element in the demand pack,” and what is important is the message that will be transmitted if the RBI takes the action it has suggested; a move to stop banks from selling gold coins would signal that 2012 gold imports are still too high......
Canara Bank awarded for tech use
Canara Bank has bagged the IDRBT Best Bank Award for its use of technology for financial inclusion. S. Raman, CMD of the bank, received the award in the large banks category from RBI Governor D. Subbarao at an event organised in Hyderabad by the Institute for Development & Research in Banking Technology, a bank release said..........
Read........MLMs now want to ‘invest’ money in India, really?
......Following reports of the FIPB meeting on 24th August, EAS Sarma, former expenditure secretary, Government of India, has written to Arvind Mayaram, secretary for economic affairs warning, “I apprehend that the FIPB route will be sought to be misused to obtain cover for these MLM companies which are nothing but a way to swindle the public to raise illegal funds to enrich unethical and anti-social persons.” “Many of these (MLM) companies are not even registered under the Companies Act. Even those registered evade regulation. Those booked regroup under different names and continue to cheat the people. All these companies and those that promote them should be dealt with an iron hand and be prosecuted effectively,” he said. This follows several letters by him to the prime minister, ministry of corporate affairs, ministry of finance, Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and others, on the subject.......
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