FINANCIAL LITERACY

The Department of Management Studies, Francis Xavier Engineering College, Palayamkottai, in collaboration with Reserve Bank of India and Indian Overseas Bank organized a Financial Literacy Programme recently. The purpose of this programme is to enable students understand RBI’s functions and role and its different schemes. RBI officials M.A. Khan and R. Sankara Subramanian were the resource persons, who spoke on the security features of currency and gave tips on identifying counterfeit notes. Samraj, Senior Manager, IOB was present. Dr. Jesiah Selvam, Dean, felicitated the resource persons.

The Hindu

Banking sector reforms is the need of the hour - M.G.Warrier

..........It has to be said to the credit of RBI that the central bank effectively brought to the fore the real issues and concerns of all stakeholders in the financial sector, about new banking licenses. In the present scenario, the central bank should take initiative to reopen the banking reforms agenda which was kept in the backburner after allowing some banks in the private sector during the introductory years of financial sector reforms..........

Read - Moneylife

Time For Action From RBI

..........Beside this, concerns related to India’s economic growth would also coax the RBI to play the role of a facilitator by cutting interest rates. Today, economic slowdown is a reality. This is reflected in the 5.5% economic growth in current financial year. India grew at 7% and more in last six out of eight years. The estimates of future economic growth are further adding to worries of policy makers............

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Why RBI, FM are having tough time seeing eye-to-eye

......Government is keen to have accommodative monetary policy and strong rupee exchange rate to spur growth, control inflation and attract foreign investments. The other stake holders of the system are in wait to get resolution to these conflicts between FM and RBI as both walking in the same direction is essential to get the Indian economy out of its woes and remove the fear of sovereign rating downgrade. There is no alternate option at this stage and the best (and only) option would be for RBI to address issues related to growth while FM work overtime to address issues related to twin deficits and inflation. There is immediate need for role-change to walk in the same direction!........

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RBI should leave rates alone

..........At this stage, intellectual honesty demands a confession. I listened to Y.V. Reddy’s wonderful lecture at the India Policy Forum of the National Council of Applied Economic Research. He mentioned that support given to the poor is called subsidy while it is called an incentive if given to the rich. It is a fact that most of us instinctively turn to reduction in and elimination of subsidies as solutions to the problem of high fiscal deficits. Seldom have we turned our attention to the efficacy of tax incentives given to the rich...........

Read - Mint

RBI to form quarterly policies; Interest rates main focus

..............If RBI goes easy on the monetary and interest rates, than perhaps the economy will see new funds floating about, and growth reviving again. But with the intellectual lockjam between the government and RBI, and the autonomous status being a crucial card, the situation will remain tense till October 30 when the policies come out.

Read - Daily Bhaskar

Tying up the inflation conundrum

..........The Reserve Bank of India (RBI) officially tries to maintain inflation at around 4% in the medium term, while maintaining growth prospects and allowing the currency to float as per the market and trying to reduce the volatility in currency price. It’s an admirable, if somewhat convoluted, set of macroeconomic stability goals. But the actual performance of India’s inflation seems to fly in the face of what its central bank is trying to do. We have consistently overshot 4%, and not just in the last couple of years. At least since 2005, inflation—

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'Space for better monetary easing seems limited'

............The stickiness in headline and core inflation may prompt the Reserve Bank of India to maintain the policy rate in the upcoming policy review. However, in light of the seasonal pick-up in credit demand, RBI might consider reducing the CRR by 25-50 bps to support activity. With headline inflation expected to average 7.5-7.7 per cent in the current year, the space available for further monetary easing is likely to be limited to around 50 bps over the remainder of 2012-13.

Read - BS

The role of banks in project financing in India

......In India, local banks, both public sector and private sector, have been the only players in infra project financing (PF), with very little participation from international financial institutions (IFIs). This situation is not sustainable - with increasing demand for funds, and Indian banks reaching their prudential exposure limits, there is an urgent need for new instruments and new players in the financing market.......

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Non-bank entities can set up ‘White Label’ ATMs

......Such non-bank entities should have a minimum net worth of Rs 100 crore as per the latest financial year’s audited balance sheet, which is to be maintained at all times, RBI said. In effect, non-bank entities will provide the banking services to bank customers in India, based on the cards (debit/credit or prepaid) issued by banks. Their role would be confined to acquisition of transactions of all banks’ customers and so they would need to establish technical connectivity with the existing authorised shared ATM Network Operators or Card Payment Network Operators, said an RBI release............

Read - Deccan Herald

Mining crisis: Goa Chamber urges RBI to restructure business loans

Panaji: The Goa Chamber of Commerce and Industry (GCCI) is in talks with the Reserve Bank of India (RBI) urging restructuring of loans of businessmen from the state who hadborrowed money to buy trucks and barges, to ferry ore, reports PTI.......

Read - Moneylife

Punjab National Bank to hire about 8,000 people

Tiruchirapalli: Punjab National Bank (PNB) today said it will hire about 6,000 to 8,000 personnel each year for the next few years and open 500 branches across the country in the current year. "We will be recruiting 6,000-8,000 personnel each year for the next few years," the bank's Executive Director S R Bansal told reporters here.....

Read - FE

De-jargoned | Securitization

....... According to the Reserve Bank of India (RBI), the securitization market is primarily intended to re-arrange and diversify the credit risk away from the loan originators to a number of investors who can bear it, thus giving some financial stability and an additional source of funding. The main reason for undertaking securitization is liquidity.........

Read - Mint

A plethora of courses related to banking

.....The banks fix an appropriate cut-off score based on the number of vacancies and applications received. If you manage to secure the cut-off score or more, you will be called for the subsequent rounds of recruitment process of the specific bank. Some banks like RBI and SBI conduct their own competitive examinations.......

Read - The Hindu

Odisha forms panel to check financial fraud

.....Lately, there have been rampant incidents of some unscrupulous financial establishments and fly-by-night operators duping people, especially in small towns through chit funds, multi-level marketing schemes and collecting investment schemes. The frequency of such cases of fraudulent deals have been particularly high in Balasore in the state's northern belt where people have been more vulnerable to schemes offered to them in the guise of profitable investment. The finance department has felt that such unscrupulous individuals and entities take advantage of the loopholes in the existing legal provisions and the lack of clarity in roles of different agencies such as Union ministry of corporate affairs, Reserve Bank of India (RBI), Sebi and other agencies of Central and state governments.........

Read - BS

RBI workshops to work on stopping ‘parallel economy’

To deal with the parallel economy, what the fake currency note system is un-popularly known for, the Reserve Bank of India (RBI) is stressing more on customer awareness. The regulator bank apart from publishing advertisements pointing out unique features of Indian currency would also organise workshops to tame the menace.

Directing to hold such an awareness camp in Ranchi, Suma Verma, Chief General Manager, of the RBI instructed General Manager HN Panda about this while adding that the problem can be rectified by working in tandem only..........

Read - The Pioneer

'Super regulator not ideal solution for financial sector'

M Damodaran, Former Chairman of SEBI believes there is no final solution to what could be the best structure for a regulatory authority.Damodaran points out that every regulatory organization has over the years developed its own identity and has its own philosophy to regulate that part of the financial world......

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Social banking and finance – opportunities in inclusion

Session keynote address by Dr K C Chakrabarty, Deputy Governor of the Reserve Bank of India, at the 2nd FT-YES Bank International Banking Summit, Mumbai, 15 October 2012

........With the introduction of banking technology and the realization that poor are bankable, the coverage of unbanked population into the financial system is expected to improve. Financial inclusion, along with Government’s developmental programmes, is expected to result in overall financial and economic development in the country. As in the case of most developing countries, extending the banking services to unbanked groups is expected to be the key driver for inclusive growth.........

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Forecasts: Love them? Hate them? Use them

Everybody loves a forecast and wants to know where dollar-rupee is headed. This is natural because forex is the business of every importer/exporter. Even the RBI conducts a Survey in which it seeks the views of professional forecasters on various aspects of the economy, including the Rupee. Yet, people tend to have very low respect for forecasters. This is not so much because their forecasts tend to go wrong. What people do not like is the lack of sense of accountability displayed by many forecasters, whether in banks, in companies, or outside. Even G Padmanabhan, Executive Director, RBI, lamented this fact at his recent “Goa to Goa” speech on 23rd August......

Read - HBL

Trust completes two-years, spread financial literacy among 2.44-lakh people

MANGALORE: Jnana Jyothi Financial Literacy and Credit Counselling Trust, jointly sponsored by Syndicate Bank and Vijaya Bank, and Set up according to the model scheme of Reserve Bank of India on October 20, 2010 has completed two years of service. The Trust so far has opened 32 centres in 25 lead districts in India, of which 14 centres are in Karnataka, five in Andhra Pradesh, two in Kerala, six centres in Uttar Pradesh and 5 centres in Haryana........

Read - TOI

'Choking demand through monetary action suicidal for growth'

 The Reserve bank should not always use monetary tools to control inflation as choking demand will be "suicidal" for economic growth, Assocham said Sunday. The chamber said that in a study a majority of 200 participants said that it is wrong on the part of RBI to be obsessed with always using monetary tools to control inflation.......

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A problem of coordination?

With the govt failing to rein in the fiscal deficit, RBI may think twice before agreeing with suggestions of a rate cut

Should there be close coordination between the fiscal policy authority, the Union finance ministry in New Delhi, and the monetary policy authority, the Reserve Bank of India (RBI) in Mumbai? Yes, in the normal course, there should be close coordination between the two authorities. This, of course, should be without any one of them undermining the independence of the other. The economy and all economic entities will gain if the finance ministry and RBI were to see eye to eye on what needs to be done to achieve higher growth with low and stable inflation.............

Read - BS

‘Wrong notion among people’

A.S. Rao, Regional Director of Reserve Bank of India on Friday said there was a wrong notion among people that the State Government would come out with an agricultural loan waiver scheme......

Read - The Hindu

It's time to focus on growth

.........The government has done a great deal to assuage the RBI’s legitimate fear of a huge fiscal deficit, and should commit itself to doing even more in the coming months. But the RBI must take its assurances on trust, for it can make the next cuts only after industry and employment begin to grow and spending power starts to rise once more. Dr. Manmohan Singh needs to make this clear to the RBI Governor and remind him forcefully, as he reminded his predecessor Y.V Reddy when the latter was reluctant to bring down interest rates even after the onset of global recession in August 2008, that when push comes to shove it is the RBI Governor who holds his post at the government’s pleasure and not the other way round.

Read - The Hindu

High time RBI props up growth, say banker

.........“While monetary policy needs to focus both on inflation and growth, given the recent fiscal measures, which are hopefully going take us towards a better situation on fiscal consolidation, I think the leaning of policy right now needs to be on growth,” ...............

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Basel III or basic growth: Take your pick

.....While the Basel III guidelines improve the ability of banks to withstand financial duress by implementing more stringent capital requirements, raising the capital to fulfil the Basel III requirement is a major challenge for Indian banks. Basel III released in December 2010 is the third in the series of guidelines written by the Basel Committee on Banking Supervision (BCBS) whose mandate is to set the reform agenda for global banking sector. Basel I and Basel II are earlier versions and were less stringent. Named after Basel in Switzerland , which is the headquarter of Bureau of International Settlement (BIS), the Basel norms focus on risks to banks..........

Read - The Pioneer

Aadhaar will now be used as identity proof, for bank KYC

Read - TOI

Student falls prey to impostors

......Scamsters said the payments will be routed through Reserve Bank of India and put up a fake website resembling the central bank's original website. Further, the email is sent by fraudster with complete address and contact details as RBI employee. The cyber crime cell of UP police has traced the gang to Delhi........

Read - TOI

'1L ATMs to be opened in next 4 yrs'

.......The study titled 'The Indian ATM Industry: Gearing Up for the Next Phase of Growth' said, several forces are driving the heightened importance of ATMs in India. The biggest push has come from the Reserve Bank of India. RBI, in conjunction with the government of India, has been focusing on the issue of financial inclusion for some time now, it noted......

Read - Indian Express

Soon, open a bank account with the swipe of a finger

.............The Unique Identification Authority of India ( UIDAI) is ready with electronic know-your-customer authentication (eKYC) service which will pave the way to provide identity and address proof by just providing your fingerprints for biometric identification. Officials said the facility of a one-touch eKYC could start as early as next month after government and other agencies, such as Reserve Bank of India (RBI), notify the new norms that explicitly provide for Aadhaar as a valid identity proof.............

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Over 50 conned by cyber thugs in 60 days

Cyber fraudsters have duped more that 50 people through the duplicate Reserve Bank of India (RBI) web page in the past two months. The fact came to light during the investigation of Devendra Singh con case, where...

Read - Hindustan Times

Code of Bank’s commitment to Customers: Long on promise but short on performance !

Despite core banking and full scale computerization, the quality of service in banks has generally deteriorated and the Code of Bank’s Commitment to Customers has done precious little to improve it. It is only by making the minimum of level of quality of service mandatory that public can hope to get trouble-free, stress free and tension free banking, which they rightly deserve. Banking Codes and Standards Board of India (“the Board”) has issued an advertisement in newspapers recently, inviting suggestions for improving the Code of Bank’s Commitment to Customers (“the Code”) introduced by the Board in August 2009 for compliance by banks and which is now due for review..........

Read - Moneylife

More credit to farm sector urged

.....the credit deposit ratio in the State stood at 115.53 per cent on June 30 as against the prescribed minimum of 60 per cent by the RBI and emphasised the need for resource mobilisation, especially in untapped rural, semi-urban areas. Minister for Cooperation Kasu Krishna Reddy, Minister for Handlooms Prasad Kumar, RBI’s Regional Director A,.S. Rao and Chief secretary Minnie Mathew also spoke.

Read - The Hindu

Axis Bank forms new unit for i-banking

......The deal, first announced in November 2010, went through many changes because the Reserve Bank of India (RBI) refused approval, most notably because Enam’s founder chairman Vallabh Bhansali was offered an Axis bank board seat in the initial deal.............

Read - Mint

RBI policy must prioritise price stability: Rangarajan

.........C Rangarajan, Former RBI Governor said the objectives of monetary policy have been growth and price stability amongst others, but the latter should be given priority. He further clarifies, though the RBI is saying that inflation is at an uncomfortable level, there has to be an idea about the comfortable level. Essentially, that would force monetary authority towards targeting a single number and that according to Rangarajan, can be reached through an ideal price stability..............

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Promise belied

.......The Reserve Bank of India has just released its regular survey of the finances of select public limited companies for the year 2010-11, covering a sample of 3,485 companies, and providing information on their aggregate foreign exchange expenditure and earnings.......

Read - The Hindu

Too soon for central bank rewards

............The RBI gave the government an undeserved present when it unexpectedly reduced its interest rate by half a percentage point in April — the first cut in almost three years, and one that didn’t do its credibility to fight inflation much good. It’s too early for the government to expect another reward.

Read - BS

Universal slowdown, common dilemma

........The RBI, among others, feels handicapped in implementing monetary policy because of the absence of support from the fiscal authorities. Inflation is up on the ascendance. The RBI will continue to face its own dilemma-whether to focus on controlling inflation or encourage the flagging growth through possibly lower interest rates.

Read - The Hindu

Relationship manager or salesman?

.......The more complicated part is the redressal mechanism. A bank is regulated by the Reserve Bank of India, but its insurance arm is under the Insurance Regulatory and Development Authority and the brokerage arm under the Securities and Exchange Board of India. Under these circumstances, you may have been sweet-talked into buying an insurance product by a bank employee, but the redressal may often lie with some other regulator...........

Read - BS

Caught in the gold trap

......Till restrictions were lifted on gold import and a few commercial banks were allowed to import gold and sell the yellow metal to jewellers and exporters in 1997, the spread between the London and Mumbai market prices was huge but that has shrunk dramatically. There is no incentive for gold smuggling any more but with the bank and post office branches selling gold coins to retail customer, we are facing a different problem—wider current account deficit. Historically, the government and the Reserve Bank of India have tried hard to wean away people from gold and bring the yellow metal out of the household closets for productive purpose without any success...........

Read - Mint

Needed, a level-playing field for public sector banks

......Financial inclusion can never be complete without financial literacy. This can be achieved only by making the rural folk aware of all the banking products and how they can benefit by them. Much more needs to be done in the area of inculcating financial literacy if the purpose of financial inclusion is to be served...........

Read - HBL

PNB chosen as the best public sector bank

Central Bank adopts new management solution to speed up process, cut costs

Central Bank of India has implemented a human resource management solution (HRMS) package to improve the productivity of its 36,000 odd employees, ensure skill development and chart out succession planning. After automating all customer-centric functions through the core banking platform, the bank has done the same for its internal customers (employees), said Executive Director V.R. Iyer. The HRMS package, which has been implemented by IBM, has automated 30 human resource (HR) processes, including pay roll, leave application, reimbursement of hospitalisation, newspaper, and leave travel concession, and booking of holiday homes..........

Read - HBL

RBI softens stand on FDI with in-built options, proposes one year lock-in period

Read - ET

FDI in retail: Much ado about nothing

........ Relying on the Foreign Exchange Management Act (FEMA), notably Annexure “A” of which contains prohibition of FDI in retail trading (except single brand which was partially opened up in 2008) the petitioner has alleged that the DIPP notifications have been issued in bad faith to over-reach the RBI, or more specifically the provisions of FEMA. Fortunately, the Hon’ble Court did not stay the FDI policy. However, the Attorney General (AG) who appeared for the Union of India was directed to ensure that RBI amends the FEMA regulation. This led to considerable media speculation on the oral observations ostensibly made by the Hon’ble Judges............

Read - BS

PMEAC member lambasts Centre, India Inc

........These reforms only have a symbolic value than real value. They did of course help in bringing in foreign institutional investors (FIIs) that stabilized the rupee and enabled to keep a check on inflation,” said M Govinda Rao, at a seminar on “Economic Reforms: Challenges and Opportunities for India Inc.” organized by the Bangalore Chamber of Industry & Commerce on Friday. Govinda Rao is also Director of the National Institute of Public Finance and Policy, New Delhi.........

Read - Deccan Herald

RBI, Govt must move in sync - S.S.Tarapore

The meaning and significance of RBI marching together with the government is that the former takes charge of two flanks — inflation control and a sustainable exchange rate

Red - HBL

'80% bank grievances owing to lack of proper communication'

RANCHI: Reserve Bank of India (RBI), the Banking Ombudsman for Jharkhand and Bihar, on Thursday disclosed that over 80 per cent banking grievances from customers are due to lack of proper communication either on the part of the customers themselves or the bankers. The ombudsman also suggested that customers should be careful enough while signing papers during transactions with the bank, especially when taking loans. The customers were also warned of replying to any email or SMS which tell them about cash prizes that they have won.......

Read - TOI

Army School wins RBI quiz

SHILLONG: The Army Public School of Shillong won the Shillong edition of Reserve Bank of India’s all-India RBI Inter-school Quiz on Wednesday. The boys’ team led by Ankur Das and Sachit Krishnan outsmarted other six finalists in the contest. There were 42 teams in the elimination round held at St. Edmund’s College Auditorium. Urban Affairs Minister, Ampareen Lyngdoh, gave away the prizes to the winner. The team also entered the semifinals for East Zone. Barry O’Brian conducted the event. Sanjiv Bokil, DGM, SBI, Shillong gave away cash prizes of Rs 5,000 to winner and Rs 4000 each to two runners-up teams.

The Shillong Times

14th Finance Commission: Union Cabinet nod for setting up panel

NEW DELHI: The Union Cabinet on Thursday gave its nod to setting up of the 14th Finance Commission and also finalised its terms of reference. Former RBI Governor Y V Reddy is tipped to be the chairman of the Finance Commission, a Constitutional body. The Commission, set up after every five years, decides the formula for sharing of central revenue between states and centre...........

Read - ET

Who wants an expensive hedge?

....RBI’s role is thus to ensure a non-volatile rupee, educate borrowers about risk management, wean them away from the ephemeral benefits of unhedged exposure and urge banks to use more caution. RBI in its mid year credit policy of October 2011 had warned banks about this corporate tendency to remain exposed. It urged banks to recognise the credit risk in lending to corporates who had unhedged foreign loans on their books. Unfortunately, if domestic lenders shy away, the foreign and offshore dollar lenders will show up on the doorstep of such borrowers.....

Read - FE

RBI still cautious; govt likely to be kept waiting for rate cut

.......The RBI, however, is not yet satisfied with the government’s fiscal consolidation measures and awaits more steps to reduce the deficit before it pulls the trigger on rates, officials close to policymaking said. “There will always be pressure from the ministry, but we have to be clear in explaining to them the problems on inflation,” said one RBI official, who declined to be identified due to the sensitivity of the matter.............

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New banking licences: Clear the dead wood first !

........It may be recalled that a little more than two years ago, the then finance minister Pranab Mukherjee announced that licences will be given to private companies to set up commercial banks. It has taken quite some time to prepare the draft licensing norms but the final version may take some more time since the Reserve Bank of India (RBI) wants to have adequate powers to directly intervene in the newly-established  (and licensed) banks should they act out of step with its direction and or act in an unacceptable manner.......

Read - Moneylife

Banks may need more capital than RBI’s estimates: Rangarajan

.....Financial innovation, the periodic entry of new banks and better planning by banks are the need of the hour to keep pace with the growing needs of the economy, C. Rangarajan, Chairman of the Prime Minister’s Economic Advisory Council, said. Addressing a gathering at an award function to felicitate the top performing financial institutions in the country, the former Reserve Bank of India Governor said the Indian banking system is in a good shape. However, there is a need to be watchful and plan well in advance to match the requirements of a growing economy, he added......

Read - HBL

RBI seeks sops for remitting profits

NEW DELHI: The Reserve Bank of India (RBI) has asked the finance ministry to provide incentives to Indian companies that have invested abroad to repatriate a part of their profits to India, in a bid to increase the quantum of stable foreign inflows compared with borrowed funds that have become the mainstay of India's capital flows. .....

Read - ET

Upto Rs 2 cr in agri loans to qualify for priority sector status

The Reserve Bank of India (RBI) has revised lending norms under which loans up to Rs 2 crore to agricultural companies will qualify for PSL (priority sector lending) status. Under the revised norms, any lending, with an aggregate limit of Rs 2 crore, by banks to corporates including producer companies of individual farmers, partnership firms and co-operatives of farmers in agriculture and allied activities like dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture, would qualify for priority sector lending.........

Read - Deccan Herald

Are you ready for prepaid cards?

........Using prepaid cards instead of cash is much convenient for carrying, management and tracking. Besides you tend to remain within your budget and spend the calculated amount. With wide acceptance, prepaid cards are easy to use.

Read - Moneylife

Aadhar-enabled micro-ATM delivers money to villagers

......Unique ID Authority of India in collaboration with United Bank of India and Tripura Grameen Bank today undertook field trial of Aadhaar-enabled payment system with online authentication of biometric of the beneficiaries in Mandwi Block. "Our endeavour was successful today," Dinesh Mushahary, Chairman of Gramin Bank Tripura, who was present during cash transfer, said......

Read - FE

The RBI and its inflation dilemma

..............Although the clamour for a rate cut is high and it has a direct impact on sentiment, a comfortable liquidity situation this year has resulted in a significant fall in market interest rates and the cost of funds for banks. So even if the RBI is unable to cut the repo rate on Oct. 30, we still expect market interest rates and funding costs to remain benign as the RBI would infuse further liquidity into the system through CRR cuts or open market operations......

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Inflation vs growth: Stiglitz is wandering in the wrong continen

...........For instance, in response to a question on whether the Reserve Bank of India (RBI) should continue or abandon its tight monetary policy which, intended to tame inflation, has seemingly stifled growth, Stiglitz say:

“In my view, (the) adverse effects of inflation are a bit exaggerated. 8% inflation is normal in a developing country whereas growth has the ability to keep millions (fed), creating jobs and opportunities. Raising interest rates is unlikely to make a ‘big’ dent on inflation. In a trade-off between growth and moderate inflation, I would plump for growth.”.........

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RBI must cut rates to prop up growth, say bankers

............All eyes are on RBI Governor D Subbarao who is to unveil the second quarter monetary policy on October 30. While there is growing optimism that he may walk with the government following the rash of reform measures in the past one month, the latest inflation numbers have poured cold water on any such hopes.........

Read - HBL

Rethinking RBI recommendations for microfin institutions

.........We conclude by acknowledging RBI’s intention to effectively protect the microfinance clients, while providing them the benefits of access to credit and other financial services. However, much debate surrounds on how to achieve this goal and what trade-offs be made between expansion of services, customer protection, and institutional requirements.

Read - Mint

Functioning of SAT sans presiding officer challenged

....The procedure for appointment of a ‘member’ of SAT requires the presiding officer to be a part of the Selection Committee. The remaining two members of the Selection Committee are the Governor of RBI or his nominee, and the Secretary/Finance Secretary, Department of Economic Affairs..........

Read - HBL

No probe ordered into Wal-Mart: Govt

...The Financial Times said the Commerce Ministry last week asked the Reserve Bank of India (RBI) to investigate allegations that the world's largest retailer had "clandestinely and illegally" invested in supermarkets in the country. The accusations were made by a Communist Party member of parliament in a letter to the prime minister. An Ministry of Commerce and Industry official, who declined to be identified, said the ministry had forwarded the complaint on October 10 to the RBI for examination, but said the ministry had not asked for a formal probe into the matter.......

Read - BS

Banks to become EC's eyes and ears during polls

.........In a communication to the Indian Banks’ Association, the poll body said it was empowering district election officers (DEOs) to ask for this information, to maintain purity in the election process. Earlier, the ECI had brought the income tax (I-T) department into the web of information sharing on money transactions relating to polls. Banks would also have to furnish information on unusual transfer of amounts through the Real Time Gross Settlement System (RTGS), an electronic payment channel. They’ve been told to watch movement of funds from one account to several others in a district or constituency without any precedent for such transfer. Any cash deposit or withdrawal exceeding Rs 1 lakh from a bank account of a candidate or spouse or dependents mentioned in the poll affidavit filed by candidates also comes under the ambit...........

Read - BS

Lokayukta registers FIR against Manda Thete

........Notwithstanding the fact that a case was already registered against her, five officials of the bank entered into an understating with her and settled the issue in return of Rs 53 lakh. According to the SPE officials, the legal advisors submitted a false legal opinion to the bank that paved the way for clearing obstacles in the settlement. "Reserve Bank of India ( RBI) and state government rules forbid any such settlement on defaulted loans, that too when a criminal case has already been registered," said the SPE officer. 

Read - TOI

Rangarajan Bats for New Banks

The Reserve Bank should come up with entry norms for issuing new banking licences, the chairman of Prime Minister's Economic Advisory Council C Rangarajan said here today. "If the domestic banking system is to remain competitive over time, there should be periodic entry of new banks. A closed system can only become oligopolistic. "Such a threat should now be eliminated and the central bank should lay down entry norms and also decide on who satisfies the criterion," Rangarajan said at banking award function organised by commodity bourse MCX.....

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Cabinet to take up formation of 14th Finance Commission

Tomorrow, the Cabinet is likely to discuss the constitution of the 14th Finance Commission and the National Automotive Board. The 14th Finance Commission would advise on the devolution of the Centre’s taxes between Centre and states, besides other aspects of the Indian economy, for the 2015-20 period. Former Reserve Bank of India Governor Y V Reddy has emerged as the front runner for the post of the commission’s chairman. Officials said former advisor to the finance minister Parthasarathi Shome and former finance secretary Sushma Nath might also be appointed to the commission. At tomorrow’s meeting, though the Cabinet is expected to clear the terms of reference of the commission, it is unlikely to name the chairman...........

Read - BS

Bonds yields fall; RBI Deputy Governor comments aid

MUMBAI: Bond yields fell on Tuesday after a central bank deputy governor's comments about the need for fiscal and monetary policy to work in tandem slightly raised hopes for rate cuts at the upcoming policy review. Reserve Bank of India Deputy Governor H.R. Khan said both the central bank and the government need to work together to bring down the fiscal deficit and control inflation.........

Read - ET

Seal it, lock it, forget it? Bank lockers aren’t entirely risk-free

What does the RBI say about the locker policies?

The RBI policy states: “The bank will, in no way, be responsible / liable for the contents kept in the locker by the hirer. In case of theft, burglary or similar unforeseen events, action will be initiated as per law.” The central bank has also said even if banks do not have an idea about contents of the locker, they should take necessary steps to protect the same. There were also a few cases in the past where the victim has received compensation on loss or damage of locker contents......

Read - DNA

Look beyond 'Gang of 4' to promote women SHGs: Jairam Ramesh to banks

.....Addressing a function "NABARD award for rural innovations 2012", the Minister said the Rural Development Ministry is working very closely with NABARD, an apex development bank with a mandate for facilitating credit flow for promotion and development of rural agriculture and village industries, for increasing the self-help groups in northern and eastern Indian states. "I am hopeful that very soon the type of success we witness in south India will be visible in states like Bihar, Orissa, Madhya Pradesh,".....

Read - FE

With its glory years behind it, microfinance adapts

.......The MFIs are hoping that once the central government passes the MFI Bill, the Andhra Pradesh state law will stand nullified, and they will be able to collect their dues. “It is crucial that the MFI Bill is fast-tracked and heard in Parliament at the earliest. This will provide clarity and will help in the recovery of the sector,” said Alok Prasad, CEO, MFIN. Cleary, the struggle for survival is not yet over for MFIs, but a silver lining in the clouds is just about visible.

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Amendment to Cooperative Societies Act declared unconstitutional

The Calcutta High Court on Wednesday declared as unconstitutional an amendment brought by the West Bengal government to a section of the West Bengal Cooperative Societies Act, 2010......

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SBT to hire specialist cadre officers

State Bank of Travancore (SBT) has invited applications for appointment of 37 vacancies under specialist cadre officers. Listed vacancies are those of deputy managers and assistant managers in systems, civil engineering, electrical engineering, official languages, law and security......

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Xpress Money plans to offer more cash transfer channels

......According to Sudhesh Giriyan, head of Xpress Money Business, as per RBI’s Money Transfer Service Scheme (MTSS), the company is currently permitted to operate only in the cash-to-cash segment. “We are in talks with the RBI. Once it gives us a go-ahead, we will launch these services,” he said.......

Read - HBL

Build up forex reserves now - A.Seshan

......Taking advantage of the appreciation of the currency, RBI should start building up its reserves by buying forex in small amounts, say, $100-200 million, on a more or less daily basis. It will not upset the ..............

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RBI changes rules on priority sector lending

Mumbai: The Reserve Bank of India (RBI) on Wednesday amended its guidelines on so-called priority sector lending to encourage commercial banks to undertake more direct lending to farmers. RBI has included loans to corporations including farmers’ producer companies of individual farmers and cooperatives of farmers directly engaged in agriculture and allied activities under direct lending............

Read - Mint

RBI has not done its homework on rules for lending against gold: Rahul Bhasin

............ RBI says if you lend against gold, you keep 12.5% capital adequacy---this applies only for these private companies and not for the banks. If you see everything, RBI has done is to ruin these folks, but they are still surviving. Why? Because there’s a huge unmet need. The distribution they have created are larger than ICICI Bank and Axis Bank today..........

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ECB norms for NHB, HFCs likely soon

MUMBAI, OCT 17: 

The Reserve Bank of India (RBI) is likely to come out soon with guidelines pertaining to external commercial borrowings (ECBs) for National Housing Bank (NHB) and housing finance companies (HFCs) for affordable home loans. “The government has already allowed NHB and some HFCs (to raise money through the ECB route) for affordable housing. The guidelines are being finalised by the RBI and they are going to notify them soon,” R V Verma, Chairman and Managing Director, NHB said on the sidelines of a summit here.........

Read - HBL

Security system for Padmanabha Swami temple cleared

...An expert committee looking into the security had suggested in the Supreme court on March 29 that a high security vault be built on the line of RBI, immediate release of funds by government for security measures and hiring an international agency with sufficient expertise to ensure fool-proof measures with particular emphasis on maintaining the traditions, culture and confidentiality of the assets. 

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