A less dovish stance by the US Federal Reserve will serve to benefit the Indian economy, says a new report from Bank of America-Merrill Lynch (BofA-ML). A lower quantitative easing (QE) would help enable the Reserve Bank of India in pulling down interest rates, said Indranil Sen Gupta, of BofA-ML..........
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Monday, January 7, 2013
Govt to send comments on bank licences to RBI
The government would soon send its comments to the Reserve Bank of India (RBI) on issuing new bank licences, Finance Minister P Chidambaram said today. RBI is preparing final guidelines for issuance of new bank licences after Parliament approved the Banking Laws (Amendment) Bill last month........
Resolve consumer complaints within 45 days: RBI deputy governor KC Chakrabarty
The Reserve Bank of India
is seeking to turn banking services in favour of customers from being
loaded in favour of banks as it works to weed out one-sided agreements
and ensure that customer complaints are resolved within 45 days, said
three people familiar with the thinking. The mercurial RBI Deputy Governor KC Chakrabarty,
a former career banker himself, told bank chairmen that the one-sided
agreements and discriminatory lending rates for identical collateral,
such as home, should end, said those people who did not want to be
identified......
Give preference to non-corporate sector for new banking licences: Rangarajan
.......“It is possible for the Reserve Bank to initially start with non-corporate business and find out whether there are suitable applicants and thereafter proceed to look at the other applicants,”..............
New banking licences make no sense: Percy Mistry
.......The problem in India is not that we do not have a sufficient number of banks. It is that 70% of our banking system is state-owned, inefficient, un-inclusive, and provides the means by which too cosy a nexus between the government and the wrong kind of private industrialists. The state-owned banks (SOBs) and insurance companies (SOIs) together provide the institutional mechanism to foster a dangerous and damaging type of crony capitalism regime in India as well as to indulge in electorally driven loan melas and loan write-offs. . That unfortunate nexus is decidedly kleptocratic in nature when it comes to looting the nation’s natural resources (whether spectrum or mineral or land) through the kind of public-private partnership that India does not need............
Closer to the unbanked
..........But a lot more needs to be done in improving corporate governance, customer service, transparency in banking operations and, importantly, freeing public sector banks from political interference and the dual control of the Finance Ministry and the RBI, as sometimes they appear work at cross purposes.
Why Joseph Stiglitz is wrong on many counts
..........Even as Reserve Bank of India (RBI) Governor Duvvuri Subbarao called for greater central bank independence in the context of expanded mandates “and their more explicit pursuit of real sector targets such as growth and unemployment,” Stiglitz threw cold water on the idea, reports The Times of India. He said the RBI, with more limited autonomy, had fared much better than those with more autonomy, including the US Fed..........
Banks to put information of frauds before audit committee: RBI
The Reserve Bank of India has directed banks to place information regarding any frauds before the audit committee of the board of directors every quarter. In a notification on Friday, RBI said an annual review of frauds should also be conducted and placed before the the board of directors...........
NBFCs knock RBI door to modify draft guidelines
The non-banking finance companies have prepared a presentation containing seven-point changes in the recently released draft guidelines by Usha Thorat committee. Finance Industry Development Council (FIDC), the industry body for NBFCs already met Uma Subramaniam, Chief General Manager (Department of Non-Banking Supervision), RBI to convey their reservation against select norms.............
Government still has time for two policy principles
........even in sectors where “independent” regulators are in place, there is absolutely no co-ordination to assist the investor who is regulated and the constituent who is sought to be protected. Turf wars have been escalated in recent times. The Reserve Bank of India (RBI) has increasingly been seeking to inspect stock brokers on the ground that they are also non-banking financial companies. .............
Pre-Budget talks: Chidambaram to meet bank chiefs, economists today
.....Indications are that the talks would centre around the Government’s capital infusion in banks, Basel-III capital rules and the issue of deteriorating NPA situation in the banking system. As the pre-Budget talks will happen weeks before the RBI is expected to review monetary policy, the issue of interest rates is likely to come up for discussion.......
Risk management: Whose money is it anyway?
............Top priority should be given to induct a continuous learning process on risk management for line managers. As stated by RBI Deputy Governor K.C. Chakrabarty, this would be a “retirement decade” for public sector banks, with thousands among the senior workforce set to retire by 2020. Banks need to develop an effective knowledge management framework to help retain the tacit knowledge of the retiring employees. Initiatives such as a “No Transfer” policy up to five years for critical departments such as risk management will help stabilise the function..............
Customer complaints up marginally in 2011-12: RBI
........The RBI also announced to set up a committee to review and update Banking Ombudsman Scheme, 2006. The committee will be chaired by Suma Verma. The working group has been constituted on the recommendations of Damodaran Committee on customer service.
Mr FM, gold isn’t the problem, the rupee is. Fix that
........The FM believes that India’s foreign exchange reserves would have gone up by $10.5 billion if gold imports were to have halved. The FM also believes that India’s CAD and the rupee value will improve if gold imports were to be curbed. Unfortunately, even RBI wants gold imports curbed in order to manage the rupee (INR) better. The FM and the RBI could never go more wrong in their understanding of gold. In fact the rise in the price of gold in India is more due to INR depreciation than demand......
Appeals against Banking Ombudsman Rise
MUMBAI: Appeals against the decisions of banking ombudsman
more than doubled in 2011-12, indicating that the customers as well as
banks are losing faith in the scheme promoted by the Reserve Bank of
India as an expeditious and inexpensive grievance redressal forum. ...........
Clear norms must to help net banking, says RBI’s Chakrabarty
.................“We have to take measures to initiate the process of evolving best practices in this area that match the international / global standards…..“What we need is the right attitude for customer care. Banks need to invest more time in harnessing the soft skills of their human resources to make them truly humane and humble while dealing with customers,” .................
Consumer protection and regulators
......... In my view, this is the first time the head of any of the three regulators – Irda, the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) – has publicly declared that the regulator’s role is primarily consumer protection. All these years, the three main regulators and also the fourth new one – the Pension Fund Regulatory and Development Authority – have acted as if consumer protection is a minor issue............
Can banks collect dues from defaulters like this?
.......... If the harassment persists, a simple email complaint to the banking ombudsman would solve the issue. RBI’s stringent guidelines include a warning that banks are responsible for the actions of the collection agency. In case of complaints, RBI can also disallow the bank from appointing a recovery agency..............
RBI: Gold-linked products needed to cut imports
.........“Given the insatiable lure for gold in the country, it is imperative that we introduce gold-linked products which result in the existing gold in bank lockers getting converted as financial products rather than unabated import of gold,” said G Padmanabhan, the Executive Director at RBI on Wednesday...................
Gold loans: RBI favours banks over NBFCs
........“Moderation in the operations of gold loan NBFCs may provide increased opportunity to banks to further enhance their share in the gold loan market. For this, banks would have to reorient their business models and customer services to fully tap the business opportunities in the gold loan market, as they may still lack the speed to deliver to borrowers whose needs are catered to by gold loans NBFCs so far,” the paper said..............
Gold is money: Why can’t UPA’s thinktank understand this?
....Currency debasement has been an unwritten policy goal of the Reserve Bank of India and the government and citizens understand that very well. So when Rangarajan says a “certain amount of gold demand is built into the Indian psyche”, the culprit for the same is the RBI. Of course, Rangarajan did mention inflation hedge as one of the reasons why people buy gold. But in the same breath he also mentioned that Indians purchased $66 billion worth of gold last year and this was $20 billion more than in the previous year. That is a wrong way to look at gold – if you accept that gold is an inflation hedge, then one ought to compare quantities imported rather than the dollar value of the same.........
Why Govt, RBI want to put a lid on the gold rush
....While Finance Minister P Chidambaram hinted at making gold costlier, the central bank is firmer in its intentions. On January 2, Chidambaram asked the people to moderate gold buying, saying, “… we may be left with no choice but to make it a little more expensive to import gold. This matter is under the Government’s consideration.” Hours later, an RBI working group said fiscal measures to reduce gold imports might be revisited......
Friday, January 4, 2013
RBI chief stresses need for independence in monetary policy
MUMBAI: The Reserve Bank of India Governor Duvvuri Subbarao said on Thursday central banks need to be independent to make monetary policy decisions during a speech at a memorial event for the country’s first Indian central bank governor. The remarks come at a time when Subbarao is under immense pressure from the government to cut interest rates.......
RBI, government need to act in harmony: D Subbarao
.....Welcoming Nobel laureate Joseph Stiglitz at the C D Deshmukh Memorial Lecture here, Subbarao said, the monetary and fiscal policies should "act in harmony" to achieve common goals. The comment comes in the backdrop of growing instances of apparent divergent views between the RBI and the Finance Ministry on a string of issues, including lowering interest rates and issuance of new bank licences...........
Captain Subbarao Finds a Hard-Hitting Batsman
..............Reserve Bank of India Governor Duvvuri Subbarao, who has steadfastly refused to cut high interest rates to ensure price stability, is likely to find intellectual reinforcement from Urjit Patel, the new deputy governor of the central bank. The 49-year-old, a cricket and football fan from The Boston Consultancy Group, will have a two-year term at RBI in policymaking, succeeding Karl Marx lookalike Subir Gokarn.................
Newsmaker: Urjit R Patel
For Patel, this is a re-entry into RBI. Between 1995 and 1997, he had worked as an adviser with the bank on banking sector reforms, debt market, pension fund reforms, real exchange rate targeting and the development of the foreign exchange market. He had also worked as an adviser in the finance ministry during 1998-2001. In his new job, Patel’s experiences with RBI and the finance ministry are likely to be an asset. His appointment comes at a time when RBI and the finance ministry are having deep disagreements on rate cuts. Though the government has been urging RBI to cut the interest rates, RBI has steadfastly refused to do so. It has kept the repo rate at 8 per cent since April 2011. RBI’s doggedness comes despite Finance Minister P Chidambaram announcing a revised fiscal consolidation road map to show the government’s committment to prune the gap between the Centre’s expenditure and receipts.................
Why Urjit Patel is unlikely to be Chidu’s voice in RBI
........If you want to know what Patel may tell RBI Governor D Subbarao when it comes to the next monetary policy on 29 January, the answer will be: look at Patel’s PIGs. If Patel’s Pure Inflation Gauges are still showing an inflationary spike relative to sector-specific gauges like food of fuel, he will recommend that rates be maintained. If not, he may call for a cut. But in either case, it will not be because he has deep sympathy for P Chidambaram’s viewpoint. If he has been selected in order to get North Block’s views to Mint Street, he may be mismatched in that role.
Rangarajan to unveil banking tech expo
......Rangarajan will deliver the keynote address, “Delivering Technologies for Innovative Banking” which will discuss a spectrum of issues across all banking functions. Some of the prominent speakers at the IBEX conference include Saumitra Chaudhuri, Member, Planning Commission; K. C. Chakrabarty, Deputy Governor, RBI; Anand Sinha, Deputy Governor, RBI; M.V. Tanksale, CMD, Central Bank of India; R.M. Malla, CMD, IDBI Bank, and D. Sarkar, CMD, Union Bank of India. IBEX will feature an extensive trade exhibition that will showcase the latest in banking technology from across the world........
Cheque Truncation System: Banks to block circulation of non-CTS cheques by March 31
......The CTS 2010 standard is highly accessible and profitable though it might lead to the wastage of resources as people lack complete knowledge. The old cheques cannot be used for clearing but can still be used for withdrawal purpose. The last date to completely stop the circulation and usage of the old format was earlier decided to be December 31 which is now changed to March 31 and with people becoming more aware, it gives them quite some time to act accordingly for minimal wastage and misuse of resources............
Read - IE
Financial inclusion: A huge challenge
............. “Moving towards universal financial inclusion has been a national commitment,” the RBI has emphasised in its report. The Financial Inclusion Advisory Committee chaired by Dr K C Chakrabarty will explore viable, affordable and sustainable banking service delivery models for unbanked population and suggest appropriate regulatory framework to stabilise financial inclusion............
Bancassurance proposal hits Reserve Bank roadblock
The draft bancassurance guidelines by the Insurance Regulatory and Development Authority (Irda), which proposed that banks could act as brokers and sell multiple insurance products, may be difficult to implement. Insurance industry players said while on one hand some insurers are not comfortable with the idea, on the other hand the Reserve Bank of India (RBI) has raised some concerns about the same................
RBI cancels licence of Swami Samarth Sahakari Bank
......The RBI delivered the order cancelling its licence to the co-operative bank, effective from the close of business as on December 28, 2012. The bank ceased to be solvent as all efforts to revive it in close consultation with the Government of Maharashtra had failed, the RBI said in a statement........
Corporates should not be allowed into banking space: Joseph Stiglitz
........."I think, the real problem in the financial sector are issues of conflict of interests. And when you have corporates opening their own banks, you are opening a venue for conflict of interests," .............
Bandhan, SKS eye banking licence
With the Reserve Bank of India ( RBI) expected to release final guidelines for issuing banking licences soon, two of the country’s largest micro lenders, Bandhan Financial Services Pvt Ltd and SKS Microfinance Ltd, are contemplating applying for banking permits...........
Banking on consolidation
................. As is rightly pointed out, State Bank of India, the “big daddy” of the Indian banking sector, has to become still bigger to funnel the growth story of India — for which the first step would be to merge all its subsidiaries.
India’s gold imports: in for a cut?
........The report is open for comments until January 18 so the markets are moving on suggestion rather than planned action. The fact remains that India contributes a third of global demand for gold, much more than it can satisfy domestically – and the reasons for this are embedded in culture and religion, as well as investment strategy.
RBI defends stance on investing in gold
.........“The argument that a central bank which had diversified its own assets into gold has no moral right to preach against investment/import of gold is missing an important point. A central bank diversifying its dollar reserves into gold is entirely different from private agents in a country having capital controls investing in gold as it has the same effect of allowing such assets to be held in foreign currency,” said G Padmanabhan, Executive Director, RBI in his speech in Thiruvanathapuram on Wednesday............
Gold loan NBFCs’ growth warrants close monitoring: RBI panel
The KUB Rao Working Group has come out with tougher guidelines and asked for better documentation, standardization of interest rates, stricter KYC guidelines and more transparency from gold NBFCs. But the market has interpreted it as being good for gold loan companies.......
Solving the gold riddle
.... the Reserve Bank of India panel’s suggestion seems more rational. While recommending restrictions on gold imports by banks and agencies such as MMTC, which control about 56 per cent of gold imports, it has also acknowledged that the answer to the problem lies not in just curbing the demand but in providing alternatives that give real returns, adjusted for inflation..............
What’s missing in govt’s fight against gold
...........The yellow metal’s status as an investment in India is almost new found. For most Indians, it is just jewellery, which is by and large linked to social status. Gold is also an important part of the dowry (psst!!) in most part of the country. So, how far will the government’s initiatives and the RBI panel’s suggestions be effective in addressing such issues? Very little. As long there are no steps to tackle such traditional and conservative customs still prevalent, gold will remain key for Indians..............
Smuggling to rise on RBI's new plans for gold: Experts
........“Instead of curbing gold imports in India, the governments of China and the United States are encouraging individuals to possess more gold. Hence, the government must understand that gold is not a liability but an asset which makes its holder wealthier,” ...........
Thursday, January 3, 2013
Y.V. Reddy to head 14th Finance Commission
Reddy's self-discipline would come in handy while tackling challenges
During his stint as Governor of the Reserve Bank of India (RBI), it was alleged he was too conservative. However, through tough lending standards, to a large extent, Yaga Venugopal Reddy had insulated the Indian banking system from the effects of the sub-prime crisis that led to the global financial meltdown in 2008. Now, as he sets about steering the 14th Finance Commission, he would have to suggest ways to the Centre and the states to augment their resources at a time when the Union government is seeing tough times on the financial front. Reddy is an early riser. Speaking to Business Standard two years earlier, he had said this had resulted from a rural upbringing. “When you live in a village, you wake up with the sun and go to bed once it sets,” he had said. It is this discipline that would keep the former bureaucrat (1964 batch of the Indian Administrative Service) in good stead in striking a balance between the conflicting needs of the Centre and the states............
2012 was the most challenging year, says Subbarao
Chidu shows RBI who’s boss: but is this what he should do?
The decision of the government to decline an extension to Subir Gokarn as Deputy Governor of the Reserve Bank of India (RBI) does not speak well about our politicians’ tolerance of regulatory autonomy. The finance minister has been trying to pressure the RBI into cutting rates, but Governor D Subbarao has resisted these attempts so far. Gokarn, as his deputy in charge of monetary policy, has been a key player in this. That he is not being given an extension – normally, there is no reason to deny anyone a full five-year term, unless the incumbent has done things to deserve a truncation after three years – means that P Chidambaram wants to send a message on who’s boss to the RBI.........
Urjit Patel: Well cast for new role
...........In fact, this will be his second stint with the RBI. From 1995 to 1997, he served as an advisor, on issues ranging from development of the debt market to pension, banking reforms and exchange rates.........
Urjit Patel appointed as RBI deputy governor - banking secy
Read.........
Urjit Patel succeeds Subir Gokarn at RBI
The stress is showing
.........India’s exports have been declining month after month, as the prospects of a revival in the principal markets of the developed world have not improved. Imports of two commodities, gold and petroleum, have remained sticky and account for a substantial portion of the imbalance. Various measures adopted by the government and the RBI to curb the demand for gold have had limited success. Past experience suggests that measures such as physical controls will be counterproductive and encourage illegal trade. One promising route, though relevant only for the long term, is to popularise gold-based financial products to wean away consumers from their old preference for gold..........
Gearing up for banking reforms
.........When called upon to issue fresh private sector bank licences, it is right and proper for RBI to have sufficient powers to inspect the accounts and business of any associate enterprise of the applicant bank. Associate enterprises that have significant influence in the making of financial or policy decisions also come within the ambit of proposed amendments. The Act equips the regulator with substantially enhanced powers. Nonetheless, until such time as the Bill completes its formal process of enactment, aspirant companies seeking to enter the banking industry concurrently need to be well prepared.
Banking Reform Needs Focus
......A focus
on inclusion would be most timely. It would coincide with the
introduction of direct cash transfers. The scheme is billed as a
game-changer for routing government payments and subsidies. It could
prove a game-changer for banks as well. Millions of accounts will have
to be opened
that carry the promise of huge float funds. Because it meshes economic
priorities with the long-term commercial interests of banks, financial
inclusion should now be the focus of banking reform. If this is
accepted, we have a basis for dealing with licences for NPBs. Among
non-banking finance companies, those that have a network of branches in
the interior should have priority. As for industrial houses, the issue
of licences must be clearly linked to the objective of financial
inclusion.........
RBI may meet NBFCs this month for finalisation of norms
....."The central bank is likely to hold a couple of meetings in January before finalising the guidelines with regard to NBFCs," an industry source said. The apex bank had released the final draft guidelines on NBFCs, based on the recommendations of Usha Thorat committee report, last month...........
Why 2013 will be a crucial year for chief economic advisor Raghuram Rajan
.........For Rajan, known for his famous contrarian view in 2005 on a financial disaster in the making, way before the global meltdown, 2013 is when he will be watched to see how he manages to shape fiscal and financial policies — this time as an insider in the government. ............
Grameena Vikas Bank opens 105 ultra small branches
As part of the financial inclusion drive, Andhra Pradesh Grameena Vikas Bank (APGVB), a regional rural bank sponsored by State Bank of India, has opened 105 ultra small branches in the state on January 2 . These branches are being operated by business correspondent agents (BCAs) by leveraging biometric technology with the help of hand-held mobile devices to offer banking services in small villages having population of 2.000 and above, the bank said in a press release..........
RBI eases KYC norms for money changing activities
The Reserve Bank today eased the 'Know Your Customer' (KYC) norms for money changing activities. "If the address on the document submitted for identity proof by the prospective customer is same as that declared by him/her, the document may be accepted as a valid proof of both identity and address," RBI said.........
Stricter norms suggested for gold loan firms
........RBI had set up a working group under the chairmanship of K U B Rao, a senior executive, to study issues related to gold and gold loans by non-banking finance companies (NBFCs). Their draft report has been published on the central bank’s website for suggestions. The group has suggested gold loan companies should consider only the price of the yellow metal and not the jewellery making charges and other taxes in determining the value of the gold...........
NBFCs, banks may continue to deliver gold loans: RBI panel
......."The financial performance of the gold loans NBFC's and the current level of their borrowings from the banking system are not of significant concern. There appears to be no immediate systemic implications in terms of domestic financial stability due to the interconnectedness of gold loans NBFCs and banking system," said the working committee, which was constituted under the chairmanship of K U B Rao, Advisor, Department of Economic and Policy Research, RBI; to study the gold loan business in India............
RBI working group revives gold bank idea
Does India need a gold bank? The debate has been stirred alive by a working group of the Reserve Bank of India (RBI) after more than two decades. The government had proposed the idea of setting up a gold bank back in 1992. The idea was in cold storage for long until the worrisome contribution of gold imports to the current account deficit last year prompted the central bank to constitute a working group to look into the rising demand for the yellow metal...........
Design innovative financial instruments to curb appetite for gold: RBI tells banks
........"Demand for gold will come down commensurately with the availability of alternative instruments for investment with real rates of return. The fact that major portion of individuals' savings are channeling into physical assets, such as, gold and real estate indicates that there is vast scope for the banking system to take advantage of these opportunities." The Reserve Bank's suggestions came on the day when Finance Minister P Chidambaram said the government is considering steps to make gold imports more expensive........
She swallowed coin as child, retrieved it 24 yrs later
......."Usually we have children coming in with coins stuck in food pipes. But such a case, where it has been stuck for so many years, is a first," said Dr Aparna Deshpande, professor of surgery, KEM Hospital. It took a multi-disciplinary approach and a team of 20 doctors from surgery, gastroenterology, ENT and anasthesia to unstuck Ahire........
Wednesday, January 2, 2013
Economist Urjit Patel to be new RBI Deputy Governor
Economist and public finance expert Urjit R Patel is set to be named as the Reserve Bank of India’s deputy governor in charge of monetary policy, replacing Subir Gokarn who left office on December 31 after a three-year term and a one-month extension. Sources said finance minister P Chidambaram has approved Patel’s name for the crucial post as recommended by a panel comprising governor D Subbarao and department of financial services secretary DK Mittal. A formal announcement is expected shortly. Patel — now a consultant with Boston Consulting Group — is credited with over a decade’s experience in the Indian financial sector with a focus on funding private infrastructure projects. For Patel, a PhD in economics from Yale University and an MPhil in economics from Oxford University, the assignment is a homecoming of sorts, as he had an earlier stint with the central bank as advisor. He also worked with the finance ministry for a while, making him the ideal choice for deputy governor who has to do a fine balancing act in monetary policy formulation. Patel’s task in assisting the governor in monetary policy-making is, however, not going to be easy, with the government and the RBI not exactly on the same page on whether the time has come to cut interest rates........Subbarao to handle monetary policy dept
Reserve Bank of India's Governor D Subbarao has taken charge of the monetary policy department following completion of Subir Gokarn’s term as Deputy Governor. The government is yet to announce Gokarn’s successor. Gokarn’ term, who was looking after departments like monetary policy, financial markets and economic research and policy, among others, as Deputy Governor came to an end on Monday..............
My View on "'Grace'ful boss I ever had.............."
I worked with Grace for a brief time and that gave me an opportunity to see her personally and officially at close quarters. My experience brings to mind what Mr.S.A.Hussain used to say about her -- "Grace full of grace !" Very meticulous, diligent and hardworking, she never lost her equanimity no matter what the stress of the moment might be. Best of all, I enjoyed her sense of humour! Her masterly understatements and dry humour often kept me in stitches. I wish her a very fulfilling and happy post superannuation as I don't think she will be leading a retired life.
- Kamala Rajan, Chief General Manager, UBD
Yes, Ms Grace is a person full of love and grace. I have always enjoyed prefacing my conversation with her by saying "with the grace of Grace"!! My wife, Chitra and I wish her a lovely retired life.
- A.Chandramouliswaran, Former Executive Director
VITALINFO - True to its name.........
I am getting a good feed back from my friends circle who ever has access to the VITALINFO site. In one place they get to know what is happening in entire banking and finance.
With regards,
- Dr T.V.Gopalakrishnan (via e-mail)
Microfinance institutions drift from traditional Grameen lending model
Faced with the challenge of bank funding and stringent regulatory norms, many microfinance institutions (MFIs) are drifting from the traditional Grameen model of lending. The idea is to reduce operational cost, while maintaining low default rates. Many MFIs, especially those in the southern states, are experimenting with a monthly repayment system, rather than weekly repayment, to reduce costs.......
Discussion Session - NBFC Sector
Discussion Session on RBI’s Draft Guidelines based on Usha Thorat Committee Report on Issues and Concerns in the NBFC Sector..........
Read...........
Cash at your fingerprints
....Visa has tied up with the Unique Identification Authority of India (UIDAI) to develop a payments ecosystem atop the Aadhaar platform that will facilitate financial inclusion and boost the electronic payments culture in India...........
RBI may seek heavy duty on gold imports
........“RBI wants a clampdown on gold imports,” said an official, on the condition of anonymity. “It has intimated the government that the duty amount should be significant and the government should make gold imports difficult.”...........
Small biz loans in poor growth, RBI moves to aid
....Taking cognizance of this fact and also taking into account finance minister P Chidambaram’s emphasis on increasing priority sector lending, the standing advisory committee of the Reserve Bank of India (RBI) has recommended for setting up of centralised credit processing (CPC) cells. While instructing the banks to set up CPC cells for MSMEs, the deputy governor RBI, KC Chakrabarty said that these cells would act as a single-point appraisal, sanction, documentation, renewal and enhancement of loan mechanism.......
Our profit margin will come down in FY14 & FY15: Shriram MD
Q. In line with banking standards, Usha Thorat committee has proposed a lot of regulatory changes. If implemented, how would those impact your company?
A. We may be impacted due to higher provisioning norms against bad loans. The committee proposed to lower the period from 180 days to 90 days. Provisions will go up due to this. Consequently, profit margin will come down. In FY14, it proposes to adhere to 120 days and then by FY 2015 it will come down to 90 days. They want it to do this in a staggered format...........
Small pvt banks in wait mode
Small and mid-size private banks are not in a hurry to pare their lending rates, even as HDFC Bank, the second largest private sector lender, said it was reducing its minimum lending rate, the Base Rate (BR). While most bankers agree lending rate cuts are imminent, they prefer to wait for a signal from the Reserve Bank of India (RBI) on the direction. Small private banks will also watch the action of bigger rivals such as State Bank of India (SBI) and ICICI Bank before any revising...........
Post Bank of India set to get shape
.......According to a report by the standing committee on information technology, the proposed Post Bank of India will be a profit-making entity that would essentially help the department of posts in reducing its deficit. The Standing Committee, in its report, has also suggested that the Post bank of India should also provide ATM services in remote areas, besides taking core-banking facilities to the rural areas...........
We have not made up our mind on banking: Rashesh Shah
...........We have to wait for the final guidelines from the Reserve Bank of India (RBI). The board has decided that we must wait for the final guidelines before taking a decision. We do believe that India needs many more banks. We have given our feedback to RBI (on draft norms), asking them to ensure a level-playing field. But we have not made up our mind.........
India's jobless growth story
There appears to be some optimism at least within our small community of financial market economists that growth seems to have bottomed out. The next financial year, 2013-14, is likely to post somewhat better numbers for GDP growth than the median forecast of 5.5 per cent for the current fiscal year. This optimism seems to be based on a number of things: the government finally shaking off its policy funk, which could both improve overall business sentiment and get public sector projects going; the likelihood of the Reserve Bank of India lowering interest rates in response to a moderation in inflation; a marginally better external environment and so on. I have a similar view and see no reason to take a contrarian stance. However................
India’s fiscal cliff: Why Chidu may be praying for inflation
............Chidambaram has been shouting from the rooftops about the need to bring down rates. If the RBI finally succumbs to this pressure, Chidambaram will end up fanning the same fires that he has to douse—a rising CAD, and rising inflation spurred by cheaper money. If higher growth spurs a further rise in CAD, the rupee will take a toss, and accelerate inflation..........
Direct cash transfer scheme fails to take off
.....Officials said that the glitch in linking bank accounts with the Aadhaar number is the failure to bring some key banks like Andhra Bank and the State Bank of Hyderabad under the Aadhar-based platform. Most beneficiaries have their accounts in these banks. They were brought under the Aadhaar platform only recently on the directions of the Finance Ministry and the RBI and necessary technical adjustments were being made.....
Tuesday, January 1, 2013
Executive Directors - Portfolios
Shri G.
Gopalakrishna
1. Department of
Communication
2. Secretary’s
Department
3. Department of Banking Supervision
4. Financial Stability Unit
Shri D.K. Mohanty
1. Department of Economic & Policy Research
2. Department of Statistics & Information
Management
3. Monetary Policy Department
Shri S. Karuppasamy
1. Legal Department
2. Premises Department
3. Urban Banks Department
4. Right to Information Act (also First Appellate
Authority)
Shri R. Gandhi
1. Human Resource Management Department (including
Rajbhasha)
2. Central Security Cell
3. Internal Debt Management Department
4. Department of Currency Management
Shri P. Vijaya Bhaskar
1. Department of Non-Banking Supervision
2. Risk Monitoring Department
3. Financial Markets Department
4. Department Expenditure & Budgetary Control
Shri B. Mahapatra
1. Department of
Banking Operations & Development
2. Department of Government & Bank Accounts
3. Inspection Department
Shri G. Padmanabhan
1. Department of Information Technology
2. Department of Payment & Settlement Systems
3. Foreign Exchange Department
4. Department of External Investments & Operations
Shri Jasbir Singh
1. Deposit Insurance and Credit Guarantee Corporation
Dr.(Smt.) Deepali Pant Joshi
1. Customer Service Department
2. Rural Planning & Credit Department
3. Alternate Appellate Authority (under RIA)
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