Wednesday, October 3, 2012

Red Salute to comrade..........


Com. Biren Sen, 84, Passed away at his son's residence at Roorkee. He served RBEA Kolkata and AIRBEA in various capacities. He Fought for and negotiated for the working Class. His services to the Trade Union Movement will stay in the memory for ever. His services during the turbulent period, 1968 is unforgettable. 

- B.Chandraiah (via e-mail)

We condole the death of Com. Biren Sen.  I have had the opportunity to work with him as CEC member of AIRBEA.  During negotiations with the Bank and during our own discussions he was  termed as Computer of AIRBEA during 1970-80.  Even the calculations got made by the management from Super computers were being critically examined by the team led by Com Biren Sen to find the most beneficial proposal to the employees in the long run.  We salute him.

-  P D S Uppal, Chandigarh

Obituary

Mr. P. Udhaya Kumar, Retd. Asst. Treasurer, RBI passed away on 21.09.2012. 13th day rituals at his residence : MIG-100, 8th Cross Street, 4th Main Road, Nolambur, Mugappair West, Chennai – 37. Mobile: 91766-51500.

The Hindu

Allahabad Bank gets new CMD



Shubhalaxmi Panse is the new chairperson and managing director of Allahabad Bank, following the government orders on her appointment. Panse has took charge of the Kolkata-based public sector bank on October 1. Earlier she was working as a executive director at Vijaya Bank.

BS

Let RBI Appoint Auditors for Private Banks,

New Delhi: Accounting regulator has urged the government to let the Reserve Bank of India appoint auditors of private banks, citing the inherent conflict of interest when auditors are chosen by the bank management. The Institute of Chartered Accountants of India (ICAI) has in a letter to the finance ministry and the ministry of corporate affairs urged ICAI has urged the government to allow independent regulator such as the Reserve Bank of India to appoint of auditors of private banks.........

A false dawn

....... ten of India’s top bankers, while meeting senior officials of the Reserve Bank of India, said that companies were continuing to keep capital expenditure on hold, concerned about business prospects. Their pipelines of sanctioned lending, the bankers agreed, were fast contracting; nobody wanted to borrow. One was quoted as saying that the top 100 companies would believe that “nothing has changed despite the reforms”.......

RBI hurdle for insurance broking

.......IRDA norms require the broking firm to be a legal entity under its jurisdiction. This means that banks would need to float a subsidiary to acquire a broking licence. According to regulatory sources, RBI does not want banks to float new subsidiaries in the financial sector, particularly ones where the contingent liability would be high........

Read - TOI

Will the RBI and IRDA dump their principles and follow the FM’s diktat?

Finance minister P Chidambaram wants a slew of changes which will mean getting the banking and insurance regulators to do what he says. Can he? The FM’s other moves, too, may not have many takers......

Read - Moneylife

Private banks fare better on asset quality, says RBI


The situation regarding non-performing assets has deteriorated significantly for the public sector banks (PSBs) over the last one year, the Reserve Bank of India (RBI) said in a report. According to the ‘Profile of Banks 2011-12’ released by the RBI, while the net ratio of non-performing assets (NPAs) of scheduled commercial banks (SCBs) rose from 0.97 per cent in 2010-11 to 1.28 per cent in 2011-12, it has been primarily driven by the rise in NPA levels of the PSBs......

Read - Indian Express

RBI may use rupee rise to beef up its forex reserves

Appreciating rupee will be an opportunity for the Reserve Bank of India (RBI) to beef up its foreign exchange reserves. After May 2008, India’s foreign exchange reserves have not crossed $300 billion and reserves are not more than 7-8 months of India’s imports, down from the total equivalent to 12-months’ imports........

US Fed chief Ben Bernanke likely to discuss opening up financial services with RBI's D Subbarao

.......The two central bank chiefs will meet at the 25-storey headquarters of the Reserve Bank of India in Mint Street on October 10 during what could be the first visit by the head of the US Fed to India. Neither of Bernanke's celebrated predecessors, Paul Volcker (1979-87) and Alan Greenspan (1987-2006), set foot in India, the RBI spokeswoman confirmed. It's not clear if US Fed chiefs from earlier eras have visited India. .......

FSLRC moots new model for financial sector to ensure consumer protection

Parekh panel to submit report on infra funding to PM tomorrow

....... The Committee would suggest measures on issues for financing like sourcing of overseas funds, availability of debt and equity and formulation of comprehensive data. While setting up the HLC on Financing Infrastructure, the government had said in November 2010 that it would have a tenure of 18 months. The other members of this committee includes R Gopalan (former Secretary, Department of Economic Affairs), D K Mittal (Secretary, Department of Financial Services), IRDA Chairman J Hari Narayan, PFRDA Chairman Yogesh Agarwal, RBI Deputy Governor Subir Gokarn, SBI Chairman Pratip Chaudhuri and LIC Chairman D K Mehrotra.......

Tuesday, October 2, 2012

Yes and No, Mr Finance Minister

Differences between the government and the RBI are inevitable as they work on different time frame

.......For a minister who is anxious to see results and is eager to force the pace, it might be annoying to find the RBI march at a different pace. But it is inadvisable to ignore the inexorable logic of why countries the world over have institutionalised the present system of checks and balances; one that gives central banks the liberty of striking a different pace from that of their elected governments, albeit within a common overall framework. Dissent is the essence of a democracy, whether between individuals or between a government and the central bank........

Read - ET

RBI may ask banks to improve monetary transmission


The Reserve Bank of India (RBI) might ask banks to improve monetary transmission by cutting lending rates in response to the reduction in cash reserve ratio (CRR) it had announced in September. It had cut CRR by 25 basis points to 4.5 per cent of banks Net Demand and Time Liabilities. CRR is the proportion of total deposits a bank has to keep with RBI as cash.......

What to do if a fake note pops out of an ATM?

.......Asked to comment what a person was supposed to do in case he drew a counterfeit note from an ATM, Banking Ombudsman M. Sebastian told The Hindu that “such things should not happen.” The customer, he said, should lodge a police complaint, take up the issue with the bank concerned, and write a letter to the Issue Department of the RBI for appropriate action. “We do have checks and controls and validation system to be followed by all the banks before loading cash into ATMs,” he clarified........

Read -The Hindu

Inter-school quiz

VISAKHAPATNAM : Students of Sri Prakash P. Krishna Pradeep and P.V.S. Vamsi Krishna of 10th standard bagged first place in the district- level RBI inter-school quiz competition held at Timpany School here on Monday. The winners will be eligible to participate in the state-level competitions. RBI regional coordinator A.Samba Sivarao and GITAM University vice-chancellor G. Subrahmanyam presented a cash prize of Rs.1000 to the winners.

The Hindu

Dear FM, please leave the RBI alone

.......The government should leave the RBI alone if it wants to achieve its objectives of lower interest rates. A government doing its job of managing the economy efficiently is enough for the RBI to act on its own.

Read - Firstpost

‘Bring all regulators other than RBI under one agency’

.......The changes “would yield benefits in terms of economies of scope and scale in the financial system; reduce the identification of the regulatory agency with one sector; help address the difficulties of finding the appropriate talent in government agencies”. For RBI it has suggested hiving off the roles of debt management and running of the bond and currency markets too. The debt management function would be run by a separate organisation while the market regulations would be housed in the over arching regulator. A senior official connected with one of the regulator said the proposal was possible to implement but could face political opposition.......

Read - Indian Express

Srikrishna panel for unified financial regulator

PANEL'S PROPOSALS
  • A unified financial regulatory agency to subsume Sebi, Irda, PFRDA and FMC
  • A central bank in charge only of monetary policy, consumer protection law and micro-prudential law in banking and payments
  • Securities Appellate Tribunal be merged with Financial Sector Appellate Tribunal to hear appeals against RBI
  • Resolution Corporation watch financial firms that have made intense promises to households and intervene when the net worth of a firm is near zero
  • Financial Redressal Agency address consumer complaints against companies across the financial sector
  • Independent Debt Management Office and the Financial Stability Development Council

Read - BS

RBI rationalises categories of pre-paid payment cards


The Reserve Bank of India (RBI) today rationalised the categories and value limit of pre-paid payment cards to three broad categories from five earlier. The pre-paid cards, technically known as semi-closed pre-paid instruments (PPI) are convenient alternatives to cash and cheques. These are mainly issued by banks and Non-Banking Financial Companies (NBFCs) on payment of specified amount and are used for purchasing goods and services from limited outlets........

Read - HBL

Bernanke to meet RBI top brass on 10 October


Mumbai: Ben Bernanke will meet the top brass of the Reserve Bank of India (RBI) at the Indian central bank’s headquarters in Mumbai on 10 October, in the first visit of its kind by a chairman of the US Federal Reserve. Bernanke met RBI governor D. Subbarao last year in Washington as part of the second annual meeting of the US-India Economic and Financial Partnership. The third annual meet of the body will be held between 9 and 10 October in India. Bernanke will be part of the US delegation, headed by US treasury secretary Timothy Geithner who is also expected to meet senior RBI officials........


October hope for new banking licences

.......RBI wants the Banking Laws (Amendment) Bill to be first cleared by Parliament and then initiate the process of providing new licences. But many in the government, including chairman of the Prime Minister’s Economic Advisory Council C Rangarajan, are of the view that new licences can be issued according to current banking regulations and the law could be modified in due course. In the changed circumstances — with finance minister P Chidambaram at the helm of affairs and government’s resolve to push economic reforms — the chances of the idea moving ahead has increased, officials pointed out. They said that the differences between RBI and the Competition Commission of India (CCI) over powers to review mergers and acquisitions will also have to be resolved if the government decides to go ahead and take Parliament’s nod to the Banking Laws (Amendment) Bill in the winter session even though it is difficult to pass any Bill in the current political situation........

RBI is wrong, our banks are efficient


Recently, the RBI Deputy Governor K. C. Chakraborty lamented that banks were not passing on the benefit of lowered policy rates to customers. He attributed this to the operational inefficiency of banks in general, and called upon banks to improve their performance. It’s worth looking at whether Indian banks are indeed inefficient. Operational efficiency can be seen in various ways. For a customer, it would mean prompt and hassle-free services at minimum cost, and quick redressal of grievances. For a borrower, lower turnaround time, cheaper interest rates and swiftness in extending non-fund-based facilities would matter. For the regulator, the interest margin that banks enjoy is an indicator of operating efficiency. The issue of operational efficiency can be examined from each of these perspectives — but what is RBI’s stand on banks’ performance?.......

Read - HBL

Non-banking finance companies' gold loan business loses shine over tough norms

NEW DELHI: After registering rapid growth for the past few years, the gold loan business has taken a hit in the first two quarters of this financial year, owing to the tightening of norms by RBI. Non-banking finance companies (NBFCs) offering gold loans say growth has declined despite increased prices of gold offering better leverage (more loans) to the consumer........

Read - TOI

Insurance rejig to give tax breaks, easier policy terms

.......To address complaints of mis-selling by banks, the government is also prodding Irda to agree on a new mechanism. If the move goes through, banks will turn into brokers for several insurance companies instead of being an agent for one life and one general insurance company. In several cases, where banks have also set up insurance companies, a common complaint is that the branches hawk the in-house insurers' policies. Even if Irda has come on board the government also needs to get RBI, the banking regulator, to the changes, something that it was reluctant to do earlier........

Read - TOI

RBI Adviser: Government Needs to do More Before Bank Cuts Rates

.......The RBI, however, refused to lower its key rate for the third consecutive policy review in September due to fears that inflation, which accelerated to 7.55% from a year earlier in August, could worsen if rates were lowered prematurely. "Just because diesel prices were raised, it cannot be reasonably expected that the RBI would immediately cut interest rates," said Indira Rajaraman, a member of the central bank's technical advisory committee. "The RBI has to be convinced" about the effectiveness of the government's steps for a rate cut, she said in a recent interview. "These (steps) have to be followed up by other steps which take on board the need for fiscal rectitude.".......

Bankers doubtful on rate cut by the central bank

New York : Speaking on the sidelines of the annual India Investment Forum here, RBI Deputy Governor Subir Gokarn said the central bank would spend two to three weeks before the policy review in taking stock of developments since the previous meeting. Referring to recent measures announced by the government, including a reduction in fuel subsidies, he said, “Clearly, this time we have these added elements, specific actions taken by the government which will directly address risks that we’ve been pointing out on fiscal situation, balance of payments and so on. Eventually, they all have to be evaluated on their overall impact on the growth-inflation balance.”.......

Second phase of RRB consolidation begins


The second phase of amalgamation of regional rural banks (RRB) is expecting to begin this month, with at least ten state level regional rural banks likely to be formed by December this year. In November 2011, the government had said that geographically contiguous RRBs within a state could be amalgamated to form a single state level RRB. The amalgamation will create large state level RRBs, which would help optimize resources, achieve economies of scale and common technology platform........

Employee productivity: Only 9 out of 26 PSBs pass muster

.......In a speech in August 2011, RBI Governor D Subbarao had emphasised that more effective and enlightened corporate governance of banks can be a vital avenue for improving banking productivity. The RBI, in its latest report on profile of Indian banks, has observed that employee productivity in terms of both business per employee and profit per employee in all scheduled commercial banks, including PSBs, private sector banks and foreign banks, at the aggregate level increased continuously in all the financial years during the period 2007-08 to 2011-12.

Read - HBL

Goverment to soon finalise norms for Infrastructure Debt Fund

.......According to sources the IDF would be based on a tripartite agreement between developer, lender (bank) and the IDF. The loans by the banks would be refinanced by the IDF so that banks have free funds for more lending. An IDF may be set up either as a trust or company... A trust based IDF (Mutual Fund) would be regulated by Sebi, while an IDF set up as a company (NBFC) would be regulated by the RBI. The fund would try to garner resources from domestic and off-shore institutional investors, especially insurance and pension funds. Banks and financial institutions would be allowed to sponsor IDFs........

No breather yet for ailing cooperative banks

.......As a bail-out measure for the banks which could not meet the deadline, Chief Minister Prithviraj Chavan and union minister Sharad Pawar had last week sought extension of the RBI deadline by another six months. On Monday, a day after the original deadline expired, senior officials from the state cooperation department said that the RBI was yet to respond to the request. If RBI rejects the request than the banks could face action include dissolution of their management boards........

Why should bank depositors get a raw deal from banks?

.......The banks woo the depositors till they secure their account, and thereafter they are left high and dry unless otherwise directed by the regulator. It is high time, therefore, the RBI should ensure that the bank depositors are treated fairly, squarely and equitably in the interest of not only continued flow of savings into the banking sector, but also to give the depositors the due reward they deserve for their contribution to the economy of our country. 

Read - Moneylife

Accused continue kho-kho at hearing in Sunil Kedar case

.......It is because of the loss in this fraud that NDCCB is now facing a threat of losing its banking licence. The bank was supposed to have improved its finances by September 31, or else the Reserve Bank of India (RBI) can cancel its licence. Even as there are other banks in the list, NDCCB's losses are because of the fraud and not bad lending. The bank had planned to raise funds by selling off a building to meet RBI norms, but could not find suitable buyers.

Read - TOI

NPA levels in 2011-12 highest in 5 yrs: RBI

NPA OF VARIOUS BANKS
Net NPA ratio in % 
Bank group ‘07-08‘08-09‘09-10‘10-11‘11-12
All scheduled
commercial banks
1.001.051.120.971.28
Public sector banks
(Including SBI group)
0.990.941.101.091.53
SBI and its associates1.431.471.501.491.76
Private banks1.091.291.030.560.46
Foreign banks0.771.811.820.670.61
Source: RBI
Highlights:
  • Net NPA levels highest in last 5 years
  • SBI group has 21.77 % of total deposits
  • SBI group has 22.7% of total advances
  • SBI group’s net NPA ratio is 1.76% compared with 1.28% of total banking system
  • Bank offices increased by 5,664 in 2011-12
  • 24.07% interest income growth compared with 15.31% advance growth
  • 12.98 % deposit growth compared with 30.56 % growth in interest expended
  • Cost of funds after declining for two years have risen substantially by 115 basis points in 2011-12

Read - BS

Monday, October 1, 2012

Regulators vs Sahara: the untold story

.......In 2008, immediately after taking over as a Deputy Govenor, Leeladhar, former chairman of Union Bank of India, had signed a directive allowing RNBCs to classify disputed income tax refunds (due from the government) as directed lending. Till that time, it had been part of discretionary lending. This meant the actual quantum of directed lending fell as the money was not with the company. As a result of this, the quantum of indirect lending rose. Once he realized this, Leeladhar went on overdrive to correct the move. 

Both Reddy and his deputy also realized that the fight against Sahara would have to be waged in the form of a campaign. When they realized that information was being leaked, they moved to plug the sources within the regulator. Suspected informers were taken off all Sahara-related matters and a crack team was formed. Parallel to this, RBI launched its attack against Sahara India Financial by tightening the directed lending norm progressively—from 80% to 100%—and holding quarterly meetings. 

A high-profile panel headed by former RBI Deputy Governor S.S.Tarapore, which had been appointed to make a performance audit of public services, was asked to take a closer look at RNBCs even though this wasn’t part of its official mandate. The panel’s report formed the bedrock of RBI’s action against Sahara India Financial. Not too many people have seen the report and .......

RBI Should March in Step with Govt: FM

Finance Minister P Chidambaram wants the Reserve Bank to "walk in the same direction" as the government by cutting interest rates in response to sweeping reforms to rules governing foreign investment and politically-difficult cuts in fuel subsidies. "In our view, the government and monetary authority must point in the same direction and walk in the same direction. As we take steps on the fiscal side, RBI should take steps on the monetary side," Chidambaram, 67, said in his first exclusive interview since returning to the finance ministry........

RBI asks govt to extend dy guv Sinha's tenure


Move significant as new banking licences under his purview

The Reserve Bank of India (RBI) has recommended the government to extend the tenure of one of its Deputy Governors, Anand Sinha, by a year. Sinha, appointed in 2011, will complete his two-year term in February 2013. According to the rules, a Deputy Governor can be appointed for a period of five years or till the age of 62, whichever is earlier. Sinha will be 62 next February. If the government accepts the central bank’s request, it will set a precedent, central banking sources say, as no other Deputy Governor has served the RBI beyond the age of 62........



FDI decision helped rupee to bounce back: Anand Sinha, Deputy Governor, RB


India's decision to allow 51 per cent FDI in multi-brand retail has improved the market sentiment and helped the rupee to rebound, RBI Deputy Governor Anand Sinha said here today. "On the positive side, it (FDI in retail) improved sentiment as was shown in the market. Rupee has rebounded to a considerable extent. There is certainly promise," .......


Read - ET

India can recover faster than China: RBI

BEIJING: India can recover from global economic slowdown faster than China as the economy is driven by domestic consumption, but the country needs to "get its act together" for this to happen, Reserve Bank deputy governor Anand Sinha said here on Sunday. Speaking to PTI, Sinha also said "confidence issues like the general pessimism and not-so-good-feel factor also affected the economy". "Both economies (India and China) are affected by the global economic slowdown but India being a domestic consumption driven economy could recover faster," he said. ......

Read - TOI

Banking Ombudsman scheme to solve customer problems: Lokpa



Dehradun, September 28 - Reserve Bank of India Banking Ombudsman’s office has been in operation since 1995 with the object of enabling inexpensive, judicious and expeditious resolution of complaints relating to services rendered by banks. Addressing a press conference in Dehradun today, Reserve Bank of India's Banking Lokpal Madhavi Sharma today said the RBI’s Banking Ombudsman's office was committed towards proper implementation of Banking Ombudsman scheme in the banks, and asserted that the office was very particular towards sensitising society towards this scheme. She said the scheme was a yeoman service to the aggrieved bank customers, who face various hassles en-course of their day-to-day banking. She held that RBI Banking Ombudsman's Kanpur office was looking at the complaints from Uttarakhand. She disclosed that in the last financial year 2011-12, from Uttarakhand a total of 500 complaints were received by the Kanpur office. Similarly, 403 complaints were received in 2010-11 and 392 complaints were received in 2009-10. She said most of these complaints were redressed. Referring to the nature of complaints, Madhavi Sharma said the complaints were mostly pertaining to pension payments, ATM-linked issues, levying of charges without notice, settlement of claims in death cases and issues linked to loans. Sharma said the RBI was also working towards ensuring general public awareness about the Banking Ombudsman scheme and asserted that even banks had been asked to put up display boards apprising about this scheme. She said filing complaints under the Banking Ombudsman scheme was very easy and can even be filed by just writing a complaint in a postcard and dispatching it to the RBI Banking Ombudsman's office. Deputy General Manager, RBI Banking Ombudsman scheme, Kanpur, D C Hansdah, was also present at the news conference.

The Tribune, Chandigarh

Peons are managers at Rajasthan co-op bank


Living in the times of recession, 'staff crunch' is a term which one gets to hear pretty often, as offices go for downsizing to save cost. However, the Ajmer Urban Co-operative Bank has taken this to another level. Two of its branches located in Kekri and Bijainagar, some 80 km and 65 km from Ajmer, respectively, are being run by peons ever since the managers retired on July 31.......



Lesson from the oil shock

.......I think that everyone is on the same page as far as the need for fiscal consolidation goes. The government set up a committee headed by Vijay Kelkar to recommend ways in which this could be achieved. However, the political situation makes it clear that finding a broadly acceptable way to do this is a significant challenge. From the RBI’s perspective, a reduction in the subsidy bill is seen as a very important component of the overall solution, because the subsidy bill has been a very large contributor to the widening of the fiscal deficit........

Frank Moraes memorial lecture


The United Writers’ Association (UWA), Mylapore, and Frank Moraes Foundation will be organising the 33 rd Frank Moraes memorial lecture — a yearly event organised in memory of eminent journalist Frank Moraes — on October 2 at Hotel Savera, 146, Radhakrishnan Salai, Mylapore. Subir Gokarn, Deputy Governor, Reserve Bank of India, Mumbai, will deliver the lecture on ‘Driving the economy in an era of global recovery: unleashing growth strategies for sustainable development.’.......


Read - The Hindu

'RBI can only print rupees, not foreign exchange'

.......The ratings agencies are closely watching the twin deficits in India and a downgrade would, no doubt, result in greater capital outflow. We should also remember that the Reserve Bank of India (RBI) as the country’s central bank can only print rupees to increase domestic money supply. It cannot print foreign currency........

Read - Hindustan Times

Microfinance industry awaits clarity on operations, norms in new Bill

.......The new Bill, which is with the standing committee of Parliament headed by former Finance Minister Yashwant Sinha, will probably be introduced in the Budget session of Parliament, according to the CEO of a leading microfinance institution. “While specifying the RBI as the regulator, the Bill provides a role for state governments, district administrations and microfinance practitioners,”.......

Read - HBL

Banks & intangible assets

.......Much more is at stake here. Implicit in RBI’s instruction to banks is the principle of lending to and on the back of all intangible and knowledge assets. Contrary to the Kingfisher case, RBI recently permitted banks to finance telecom companies bidding for spectrum. This move followed the government’s decision to allow telecom companies bidding for airwaves to mortgage spectrum to raise funds from banks. By permitting banks to finance investments in an intangible asset such as spectrum and seeking bank’s recourse to it in the event of a default, RBI had moved forward on intangible asset financing. Now, with the diktat in the Kingfisher Airlines case, what comes through is that the regulator itself is not clear about how to address the issue of funding intangible assets; not only the prudential norms or provisioning requirements but also the financing of these assets. This issue is important in light of the changing structure of the Indian economy and its new sources of growth........

StanChart appoints former SBI chief Bhatt as board member

.......“We are adding significant banking, financial and risk management experience to the board as well as increasing its diversity. These individuals will be excellent additions to the board bringing with them a wealth of experience from some of our largest markets, including India, Hong Kong, China and Taiwan,”.......

Read - HBL

India Inc steps up rural hiring to fuel growth


If you are a graduate from a Tier-III/IV town or village, there are greater chances of you being hired by a bank or a firm expanding its network in these areas. Banks, in particular, have taken certain key course corrections in their hiring process, opening up a vast reservoir of talent from these towns and villages. All it required was a change in the mindset on hiring - a different view of the core qualities required in an individual and a greater vision to look beyond metro-centric colleges. Organizations that were hitherto hiring predominantly from business schools and metro-centric colleges with a focus on qualities such as good command of English language and an "acceptable" dress code during the process of recruitment, are now realizing the futility of such norms. To bring into their fold talent from smaller towns, such norms are being bypassed........

Agonising experience for customer at ATM


People who are used to drawing a huge amount of cash from ATMs should ponder over the practice if one went by the agonising experience of a person in the city. The person, Pathan Yusuf Kahn, was shocked when he got a torn 500-rupee note while drawing cash from the ATM belonging to a private bank on the busy Kurnool road on Thursday night. The incident came in the wake of the police recovering ‘counterfeit notes’ from an ATM of a public sector bank here recently. On rushing to the bank branch here on Friday, the youth working with a mobile service provider, received a lukewarm response from the bank staff........


Read - The Hindu

Cisco launches 'Connected ATM solution'


NEW DELHI: Networking major Cisco has launched its 'Connected ATM solution', which will help banks in the country deploy automated teller machines (ATMs) in remote locations faster and in a cost-effective manner. The solution will offer banks connectivity options through 3G and CDMA networks, compared to VSAT and CDMA options available otherwise, Cisco said........


Read - ET

ICICI Bank to offer reward points to SB accountholders


In a bid to stave off competition from the likes of Kotak Mahindra Bank, IndusInd Bank and YES Bank, ICICI Bank has unveiled a rewards programme for customers transacting through savings bank (SB) account. The rewards programme comes at a time when the abovementioned banks are paying higher interest rates, ranging from 5.5-6 per cent on SB balance up to Rs 1 lakh and 6-7 per cent on balance over Rs 1 lakh........

Read - HBL

Money goes mobile

......Banking experts advocate mobile banking. Take the example of the National Payments Corporation of India (NPCI), set up by the Reserve Bank of India (RBI), which launched the inter-bank mobile payment service (IMPS) for all merchants. This means you can pay any kind of bill through your mobile, including that of the neighbourhood kirana store. With this, NPCI hopes to increase mobile-based transactions from 0.2 million to one million by 2013.......

Sunday, September 30, 2012

RBI Governor to hold pre-policy consultation meeting with trade bodies on Oct 17


Reserve Bank of India (RBI) Governor D. Subbarao will hold pre-policy consultations with trade bodies and credit rating agencies at Mumbai on October 17. The second quarter review of monetary policy 2012-13 will be released by the central bank on October 30.......
Read - HBL

Multi-state co-op society can't take over state co-op society: HC

......"Section 17 of the Multi-State Cooperative Societies Act does not permit or empower a Multi-State Cooperative Society to take over any cooperative society," the court observed in its order. "This aforesaid fact is also confirmed by the Reserve Bank of India in its Circular dated February 2, 2005, saying that there are no specific provision in the State Acts or the Central Act for the merger of a cooperative society under the State Acts with that under the Central Act," it added.......

Economy, banking system and borrowers

......Higher the CRR ratio, lesser will be the available funds with the banks, hence the banks will start increasing the offering rates on the fixed deposits to mobilise capital, which in turn will have an effect on the lending rates. Then why does RBI increase the CRR rates? With excess money at its disposal, due to lower CRR rates, banks will start running larger loan books which could increase the default rates (NPA). To curb such instincts, the RBI puts a leash by increasing the CRR.......

The continuing power of banks

August 2012 marked five years since the global financial crisis erupted on an unsuspecting world, bringing substantial and continuing human misery in its wake. It also marked the transition of Raghuram Rajan from part-time honorary advisor to the prime minister to a full-time position as Chief Economic Advisor to the government, based in the ministry of finance.......

Nigerian national held for duping a Assam resident

......Finally last week Haq received another call a week ago from the fraudster demanding for more Rs45,000 the final processing fees to be paid to the Reserve Bank of India (RBI) in BKC. "The caller informed me to meet a person in Kurla (west) on Septembet 25 and hand over the money to the person which will be paid as processing fees to the RBI to collect the cheque of Rs4.2 crore," Haq told the police....... 


.......Haq got panicked when he didnot receive any calls. Finally on Thursday Haq and his brother decided to visit RBI BKC office to enquire about the progress of his jackpot. "The RBI officials informed Haq he had been victim of Nigerian Fraud. On seeing a nervous Haq, the auto rickshaw driver brought him to police station and lodged complaint," said a Kurla police officer.......

आरबीआई के नाम पर फर्जी एसएमएस

......रिजर्व बैंक ने इस तरह के एसएमएस के प्रति नागरिकों को सतर्क रहते हुए कहा है कि वे ऐसे एसएमएस पर ध्यानन दें और अपनी कोई भी डिटेल्स या इन्टरनेट बैकिंग अकाउंट इन एसएमएस  नंबर या ई - मेल पर फॉवर्ड न करें।रिजर्व बैंक की प्रवक्ता सुश्री अल्पना किल्लावाला ने ऐसी अनेक शिकायतों के आने और ऐसे एसएमएस को ' फेक 'बताते हुए एक प्रेस विज्ञप्ति जारी कर यह कहा है कि ऐसे सभी एसएमएस उनके द्वारा नहीं भेजे गए हैं......

Read - Navbharat Times

Adnan Sami moves high court to buy flat in Delhi


NEW DELHI: In an unusual request, Pakistani singer Adnan Sami has approached the Delhi high court seeking clearance to purchase property in the capital. Sami wants the court to strike down a Reserve Bank of India circular that prohibits persons of certain nationalities, including Pakistanis, from buying immovable property in India without its prior permission. Justice Rajiv Shakdher, seeing prima facie merit in Sami's argument, earlier this week issued notice to the Centre and the RBI and sought a response........

HDFC Bank bats for review on CRR quantum


The controversy over the relevance of Cash Reserve Ratio (CRR) has resurrected with HDFC Bank, India's second biggest private sector lender pitching for a review on quantum of deposits that banks need to park with the Reserve Bank of India (RBI). "Some amount of CRR is necessary but the quantum can be examined. Also, it is necessary to review if we have to pay interest on CRR. Most countries have CRR in place but a lower amount”, HDFC Bank's managing director Aditya Puri told Business Standard on the sidelines of a press meet  here.........

Wrong diagnosis

......The government’s disappointment was mirrored by P Chidambaram’s remark that ‘the response of the RBI on 30th October will be far (more) supportive of growth.’ Chidambaram was undoubtedly trying to forestall a slide in investor confidence, but coming from the finance minister this was only a hair short of an ultimatum. Will Subbarao heed it? Or will he dig his heels in and set out to demonstrate the RBI’s independence as he did in July? The policy statement shows that he has left himself with ample room to do either, for it states ‘the stance of monetary policy (in October) will be conditioned by careful and continuous monitoring of the evolving growth-inflation dynamic.’ This obfuscatory language cloaks a simple dictum-the RBI will lower interest rates only if, in its assessment, inflationary pressures decline significantly in the next six weeks. ......

Read...........

Hysteria on NPAs unwarranted: Aditya Puri

......"We don't need any hysteria on NPAs (non-performing assets). While it is okay to raise concern on growing NPAs, we must realize that the Indian banks are well capitalized unlike the failed banking system of developed nations. The banking industry is growing year-on-year at the rate of 17-20% with healthy balance sheets”......

Education loan campaign on October 13

......The district administration would host an education loan campaign at the Collectorate here on October 13 targeting students pursing higher education such as graduate and postgraduate courses in professional and technical disciplines. All the banks are expected to take part in the campaign. Even students who have already joined the courses are eligible to avail educational loans as the banks would reimburse the first-year fees. The announcement was made at the District Level Review Committee meeting of Bankers at the Madurai Collectorate on Wednesday......

Read - The Hindu

Govt to give 2% interest subsidy on farm loans: RBI

......"In pursuance of this announcement, government of India will provide interest subvention of 2 % p.a. to public sector banks in respect of short-term production credit up to Rs.3 lakh during the year 2012-13," the Reserve Bank of India (RBI) said on Friday in a notification. "This amount of subvention will be calculated on the crop loan amount from the date of its disbursement/drawal up to the date of actual repayment of the crop loan by the farmer or up to the due date of the loan fixed by the banks for the repayment of the loan, whichever is earlier, subject to a maximum period of one year."......

India's current account deficit shrinks by 24% in April-June

......The Reserve Bank of India data released on Friday showed India ran a balance of payments surplus of $0.5 billion in the April-June quarter, versus a deficit of $5.7 billion in previous three months. In the June quarter last year, India had posted a $5.4 billion surplus......

Clarification

The Reserve Bank of India (RBI) plans to introduce cheque truncation system (CTS) and not cheque transaction system as reported in these columns on Wednesday under the caption “Cheque clearance through email’.......