NAGPUR: Even as the deadline for Nagpur District Central Cooperative Bank (NDCCB) to meet RBI parameters regarding finances ended on September 30, the bank is facing a tough time raising the Rs 160 crore required to meet the norms. The bank had been planning to sell off a major commercial complex it built in Mahal and get at least Rs 80 crore. The rest of the funds were to be contributed from profits and reserves. However, it has not been able to find any buyer.......
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.
Thursday, October 4, 2012
Classify HFCs separately from NBFCs: ASSOCHAM urges FinMin
.......In view of the shortage of the housing stock and low mortgage penetration, the Reserve Bank of India (RBI) has qualified housing loansas one of the priority sector industry. In its communication to the finance minister, ASSOCHAM has recommended that HFCs with their sole focus on housing finance should be treated at par with banks for priority sector lending.........
Read...........
Overdue NPA provisions to hit banks hard in Q2
........Though RBI carries out financial inspection every year, the process has been expedited from this year. Earlier, these inspections were carried out with a lag of 12-18 months. However, to ensure banks take corrective measures immediately, the banking regulator has now decided to complete the report of the previous year in the current year.........
PSU, other banks flock to portal for resolution of NPAs
Indian banks and financial institutions, which had cumulative non-performing assets (NPAs) worth about Rs 1.25 lakh crore by March 2012, are seeking help from a dedicated portal for resolution of their NPAs........
Diesel, power hikes need to be reviewed from growth angle: RBI
Ahead of its monetary policy review, RBI today said recent increase in diesel prices and a possible hike in power tariff will impact inflation but the central bank will have to view it from growth angle and be a “little sensitive to various adjustments that might take place”. “We have recognised the likely short-term impact of diesel price revision on inflation numbers. But we have to look at it in terms of (growth) trajectory and to the extent of helping to contain the fiscal deficit,” RBI Deputy Governor Subir Gokarn told reporters on the sidelines of a conference........
RBI to take into consideration government's recent decisions in Q2 policy review
Chennai: The Reserve Bank of India (RBI) will take some recent government decisions into consideration in its second quarter review of monetary policy, scheduled for October 30, 2012, RBI Deputy Governor Subir Gokarn said today. At its last policy meeting in September, the RBI left a section of India Inc. and markets disappointed with its decision to not cut the Bank Rate despite reducing the Cash Reserve Ratio by 25 basis points......
Reserve Bank's overkill on gold loans
.........That RBI has acted out of its responsibility to prevent critical risks from materialising is not in question. But what has fallen off the radar is a recognition of the potentially transformative impact of gold loans, particularly in monetising India’s vast stock of private gold, and in advancing financial inclusion (about 65 per cent of our gold is held by rural India). By restricting LTV to 60 per cent and selectively applying it to gold loan NBFCs, there’s the risk of stifling the original innovators in the business, and of needlessly reinvigorating the unorganised sector. Indeed, RBI would do well to keep an eye out for the flip side of it all, and not hesitate to recalibrate its policy responses when the evidence calls for it.
RBI aiming to ensure gold lending risks are controlled: Subir Gokarn
CHENNAI: The Reserve Bank is only trying to ensure that risks of lending towards gold are "controlled" by its regulatory steps like tightening prudential norms, RBI Deputy Governor Subir Gokarn today said. In major steps, RBI had asked banks to reduce exposure to NBFCs giving loan against the precious metal and set up a working group to suggest ways to deal with the issue..........
FDI in multi-brand retail will help increase productivity: RBI Deputy Governor
.......Observing that India has a low foodgrains productivity and inefficient distribution, he said increasing the scale of investments in organised retail is one way to increase productivity and distribution efficiency. “FDI is an enabler of that. Whether you accept the argument that FDI will do this or not, we have low productivity, we have inefficient distribution (mechanism)”, Gokarn said at the 102nd AGM of Southern Indian Chamber of Commerce and Industry........
Seriously, how many savings accounts do you really need?
Competition among banks is giving rise to innovation, much to the benefit of the consumers. For instance, after the Reserve Bank of India (RBI) deregulated interest rates on savings accounts last year, banks have been vying with each other to woo consumers........
Read.........
Wednesday, October 3, 2012
Should the RBI work in tandem with the government’s priorities?
.......The finance minister offered a preview in a recent interview, when he opined that the “government and monetary authority must point…and walk in the same direction. As we take steps on the fiscal side, the RBI (Reserve Bank of India) should take steps on the monetary side.” Since RBI meets to decide the course of its policy rate on 30 October, this is a clear direction to its choice then, notwithstanding that September inflation figures are yet to be known. The question, however, is which fiscal steps is the central bank expected to match?.......
Read - Mint
A whole new way of lending: The dawn of e-microfinance
.......Kiva has been trying to evolve an India-specific business model for quite some time. The main challenge came from the Reserve Bank of India (RBI), which does not allow foreign nationals to lend directly to Indians. Thus, Kiva had to tweak its peer-to-peer lending model. The money raised from lenders in Kiva had to come in as external commercial borrowings (ECB) to Indians. These individual loans, pooled as ECBs, had to be transferred to a microfinance agency or NGO (called field partners), who, in turn, could lend to actual micro-borrowers. Another, RBI regulation requires that loans made to non-government microfinance institutions have a minimum term of three years. .......
Boost domestic growth to counter weak global signals: Gokarn
CHENNAI, OCT. 2: The global economic condition is still bleak, and according to most researchers the recovery is not going to happen any time soon. In this backdrop, appropriate domestic policies to develop the large domestic market and stimulate domestic growth would help offset the negative forces emanating from the global economy, said Subir Gokarn, Deputy Governor, Reserve Bank of India. Gokarn said this while delivering the 33rd Frank Moraes Memorial Lecture on ‘Driving the economy in an era of global recovery: Unleashing growth strategies for sustainable development’, under the auspices of the United Writers’ Association, here today........
Read - HBL
Food inflation is stubbornly high, says Subir Gokarn
CHENNAI: Food inflation is "stubbornly" high and is a barrier to economic growth, Reserve Bank Deputy Governor Subir Gokarn said here today. Gokarn also said the present growth scenario suggests that appropriate domestic policies can help India to offset the negative forces emanating from global economy..........
Read - ET
NAN - The God's Good Man
I deeply regret to advise you of the sad demise of Shri.N.A.Naganathan on October 1st in Mumbai. He was 83 years old and had served in RBI for 35 years. He retired from ECD. He was one of the Founding Fathers of Trade Unionism in RBI. The four pillars of Trade Union in RBI were Ashish Sen, K.A.Menon, S.N.Elavia and N.A.Naganathan. N A N --as he was fondly called--- was an authority on Bank Awards, Banking Commissions, all Agreements with the Bank. In fact senior executives of the Bank would rely on him for doubts about Awards and Commissions' recommendations. He was also an authority on ECD problems. He was accessible at all times and countless are the persons he has helped both in RBI and outside. When Chandraiah and Manoharan--from Chennai-- wanted to meet him I rang up N A N, he readily agreed to meet them without any notice and we spent a profitable 90 minutes. Many in our Group would have had the chance of working with N A N. God's Good Man that he was-- he died peacefully in sleep.
As reported by P.P.Ramachandran (via e-mail)
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.
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. .......
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.
‘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 |
|
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........
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 | 1.00 | 1.05 | 1.12 | 0.97 | 1.28 |
| Public sector banks (Including SBI group) | 0.99 | 0.94 | 1.10 | 1.09 | 1.53 |
| SBI and its associates | 1.43 | 1.47 | 1.50 | 1.49 | 1.76 |
| Private banks | 1.09 | 1.29 | 1.03 | 0.56 | 0.46 |
| Foreign banks | 0.77 | 1.81 | 1.82 | 0.67 | 0.61 |
| Source: RBI | |||||
| Highlights: | |||||
| |||||
Read - BS
Monday, October 1, 2012
Regulators vs Sahara: the untold story
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........
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