...........“Perhaps bank chairmen want to take tough decisions very early in their tenure so that they can show good results progressively,” ..............
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.
Wednesday, February 13, 2013
Ill-behaved Indian borrowers will now find it tough to hide from authorities
....... Even some young borrowers, such as students, default, in their first relationship with a bank. Today, gross NPAs in education loans are over seven per cent of advances. As that number is rising, banks are going slow on education loans. Former finance minister Pranab Mukherjee had even proposed a credit guarantee fund to compensate the banks, but it never materialised for lack of budgetary allocation. RBI Deputy Governor K.C. Chakrabarty highlighted the problem of student loan defaults during a lecture at the Noida-based JRE School of Management last year. "I suggest school alumni associations should become active in inculcating ethics and values among students," he said........
Sen Likely to Take Over as NSC Chief
.......The appointment comes at a time when the Central Statistics Office is facing criticism from the finance ministry for supposedly underestimating economic (GDP) growth numbers.............
Tuesday, February 12, 2013
People suffering due to high inflation forces RBI governor D Subbarao to hold rates
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| "I have sympathy with that view (that high interest rates was hurting growth). I am not saying that's an invalid criticism. But I just want to say that their voice is heard, but people who are hurt by inflation - the large majority of the poor - their voice is not heard." |
At 7.2 % inflation is still high, says RBI Governor
Ahead of the January inflation readings later this week, Reserve Bank Governor D Subbarao on Monday said the price rise index which slowed to a three-year low of 7.18 per cent in December, is “still high.” “If you take the macroeconomic context today, you find that growth has moderated, inflation has come off the peak, but even at 7 plus per cent, it is still high,” he said while addressing the convocation of the RBI-promoted Indira Gandhi Institute of Development Research here...............
Subbarao warns of record current account deficit
Reserve Bank Governor Duvvuri Subbarao on Monday cautioned the country was headed for the highest ever current account deficit this fiscal, after it rose to 5.3 per cent of GDP in the second quarter. “Last year, CAD was 4.2 per cent of GDP, but this year we expect it would be significantly higher than that. It’s going to be historically the highest CAD measured as a proportion of GDP,” the Governor said, though he refrained from giving any figure............
K.N. Raj’s services recalled
......Dr. Raj, who hailed from Thrissur, made a name for himself computing India’s balance of payments for the first time for the Reserve Bank of India (RBI) and being a co-author of and writing a foreword to the First Five Year Plan document. Dr. Raj played a major role in raising India’s rate of savings. He and his colleagues drew up a 20-year perspective of increasing the rate of savings from 5 per cent in 1950-51 to 20 per cent by 1970-71.............
Banning GDP
.......Take corporate taxes which have fallen, from 3.8% of GDP in FY08 to a budgeted 3.7% of GDP in FY13—the actuals could be even lower due the fall in India Inc’s profitability. Even more important is the likely impact on the current account deficit that the RBI Governor has said will be even higher in Q3 than it was in Q2 when it touched a record 5.4% of GDP...........
HC dismisses petitions against AP MFI Act, state unlikely to repeal Act
......"The challenge of the Act by MFIs has been dismissed. Therefore, the AP MFI Act stands," said Reddy Subrahmanyam, principal secretary with AP's rural development ministry, the man behind the controversial Act. He said the court has advised the state government to review its MFI Act in the light of the central MFI bill and the RBI circulars that may address the concerns of the AP government on protecting the borrowers' interests.........
Failure of Fixed Income Derivative Markets in India - Nachiket Mor
I was recently made aware of a fascinating speech on this topic given by Mr. V. K. Sharma (ED, RBI) in Mumbai on November 8th, 2012. In this speech he takes the example of three fixed income derivative contracts and examines why all three of them have failed to live up to their original expectations. He concludes his speech by making some important recommendations on what might be done to redress these failures...........
Read........
Read........
Stir will cripple life: Dasgupta
.....Mr. Dasgupta said the general strike, called by all the 11 recognised central trade unions against the ‘anti-people economic policies’ of the Central government, would be the largest such agitation in the country. “It is for the first time that a 48-hour general strike is being called after Independence,” he said. It would cripple the functioning of all strategic industries, including telecommunications, posts, banks, insurance, and transportation, though the Railway unions were not joining the strike.........
Working class urged to unite to evolve pro-poor policies
.....Mr. Veeraiah who inaugurated the ninth conference of the All India NABARD Employees’ Association on Sunday attributed the present crisis facing the economy to the political-official-industry nexus. The Central government that doled out concessions to the rich and influential, amounting to Rs.5.22 lakh crore tax exemptions, was trying to do away with subsidies for poor and working class, he said......
Banking Penetration
The RBI governor D Subbarao, during his Guwahati visit on Wednesday was informed by the Assam Chief Minister Tarun Gogoi regarding the low credit–deposit (CD) ratio in North–East India vis–Ã –vis the rest of India. The CD ratio in Assam is indeed very dismal given the fact that the CD ratio, despite improvements being effected stand at 46.6 per cent in September 2012 as compared to the national average of 76.6 per cent. Gogoi urged the RBI governor to introduce a system of incentivizes and disincentives for the banks whose CD ratio fell below 40 per cent................
Banks yet to comply with norms on dormant accounts
...........As on December 31, 2011, a total amount exceeding Rs.2, 481 crore was lying as unclaimed deposits in 1.1 million accounts of various banks in the country, according to the RBI. On a modest estimate, at least Rs.100 crore could be remaining idle in banks operating in Kerala. RBI officials said the apex bank had not extended the deadline, but a circular was issued as a follow-up to all banks to review the position by September 30, 2012. Most banks have complied with the norms, an official said...........
Making banking a basic right
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| Bank unions have a crucial role to play in making banking a fundamental right. Unions are no longer adversaries of bank management, they are equal stake partners............ |
Read - The Hindu
Avoid arbitrary pricing of banking products & services, says RBI’s Chakrabarty
..........Banking services are now available in over two lakh villages, but about four lakh villages still have no access to the services. Banking services can be extended to un-banked centres in both rural and urban areas by leveraging on technology, he added. Arbitrary pricing of banking products and services must be avoided to bring these within the reach of the common man, he emphasised..............
Banking reforms leave cooperative banks in the lurch
The banking sector reforms in the country may gradually kill cooperative banks in Kerala, feel experts. Amendments to the banking law, coupled with the new bank licensing policy of the Reserve Bank of India (RBI), pose a serious threat to the mass banking concept in the country, and particularly the state...........
Despite concerns, India to let corporates into banking
............India will soon allow corporate houses to open banks despite misgivings within the Reserve Bank of India (RBI) as well as the International Monetary Fund that it could lead to risky loans if newcomers succumb to the temptation of lending to their related firms........
Entry of new banks will promote healthy competition, says PNB chief
.....The Reserve Bank of India might soon come out with its final guidelines on new bank licences, said Punjab National Bank Chairman and Managing Director K. R. Kamath.
The entry of new banks into the system would encourage healthy competition, thereby benefiting customers, he said......
A roundup of mobile banking apps for small businesses
......Today, mobile banking (m-banking) has become a credible mode to transact for a large number of small businesses. A number of private and government banks have introduced mobile banking applications, as they compete for small business customers who demand more user friendly and convenient services on their handheld devices. According to a recent report from the Reserve Bank of India (RBI), 13 million people used m-banking services in the fiscal 2012. 49 banks were involved in 25.6 million m-banking transactions that were valued at Rs.1,820 crores in the same period..............
Banks can open A/cs for Bangladeshi nationals sans RBI nod
....."...it has been decided that henceforth, banks would be permitted to open NRO account of individual/s of Bangladesh nationality without the approval of the Reserve Bank," it said in a notification. The permission is granted subject to the conditions the bank should satisfy itself that the individual holds a valid visa and valid residential permit.............
LuLu group chief Yusuffali MA seeks RBI nod to buy 4.99 pc stake in Catholic Syrian Bank
........The proposed transaction will help Chanrichawla to bring down his holding in CSB closer to the 10 per cent cap set by RBI, from 18 per cent he currently owns. "I'm not a banker and I have no intention to control the bank... But if RBI allows, I will consider buying another 3 per cent," Yusuffali told ET over telephone. As on March 31, 2012, the bank had an asset base of Rs 12,047 crore and recorded a net profit of Rs 25.9 crore. ...........
'12 lakh PAN holders haven't filed returns'
Concerned about meeting the tax targets, the finance ministry has once again trained its guns on tax defaulters. While urging taxpayers to disclose their true income, the income tax departments has warned that it will be taking stern action against over 12 lakh PAN holders who have not filed their returns.............
Read - IE
Read - IE
Monday, February 11, 2013
Policy paralysis at Reserve Bank of India?
There are critical issues on which the RBI and govt differ but should it take three years to sort them out?
........The RBI first released a discussion paper in August 2010 and a year later, in August 2011, it issued the draft guidelines on new bank licensing, seeking public comments. Since then, it has been in discussion with the finance ministry to prepare the final guidelines. With general elections a year away, more delay in finalizing the guidelines diminishes the chances of issuing any licence this year. One wonders who is suffering from policy paralysis—the RBI or the finance ministry?..........
The Policy Muddles at Mint Street
Growing disconnect
.....The divide between the financial sector and the real economy has widened recently. Many would argue that the rise of the financial services sector, as indeed many other services, is part of a global trend which has seen the eclipse of manufacturing in the developed countries. In India too, the services sector has bloomed and contributes to a larger share of the GDP than the industrial sector. While the above could be elaborated, the key issue in India now is simply this. How does one explain the obvious disconnect between the stock markets and the economy?.........
Time for a national policy agenda - Subir Gokarn
....The investment-to-GDP ratio was relatively stable around 27 per cent in the few years before that period, but accelerated sharply to cross 30 per cent, peaking at 38 per cent, as I indicated earlier, in 2007-08. Now, there is a complex story behind this transformation, which only a much longer piece would do justice to. But there is one very important dimension to it, which is what I want to focus on here...........
Dailyzine to Digest................. A journey of VITALINFO.......
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| is grateful for your feedback........... |
Follow Up – Women thieves, who had stolen Rs 8.25 lakhs valuables, nabbbed within few hours
........On Saturday morning, Pushpa Deshmukh (66), wife of Babanrao, a retired Assistant General Manager of RBI, lodged a complaint about her gold valuables worth Rs 8.25 lakhs stolen from her Surendra Nagar residence. She claimed that on Thursday afternoon, two women had come to her house claiming that they will help to make an aadhar card........
Read – Nagpur Today
RBI chief D Subbarao visits villages in Odisha's Bhadrak district
Reserve Bank of India (RBI) Governor D Subbarao visited Geltua and Jalanga villages in Bhadrak to assess the development in there. During his visit to these two villages, he interacted with the members of the Self Help Groups (SHGs) and Farmers Clubs of Geltua village and also............
Bhadrak villagers air problems to RBI guv
.....After the Governor spoke about the benefits of the model village scheme, the villagers chose to air their grievances. "I had opened a no-frill account and subsequently deposited Rs 165. But, when I failed to deposit more money within six months, my account showed zero balance. On inquiry, the bank officials told me that my inability to deposit a minimum amount has resulted in zero balance,".............
The coming revolt of financial savings - S.S.Tarapore
......The government should take serious note of the decline in household savings in financial assets from 12.9 per cent in 2009- 10 to 10.0 per cent in 2010- 11 and further to 7.8 per cent in 2011- 12 (RBI Annual Report for 2011- 12). This should be a strong signal to the government to reverse its wonton policy of hurting financial savings. If the government persists in pursuing this disastrous path, there will be a faster decline in household sector savings in financial assets and a move to gold and other financial assets.......
Financial services firms must be kept out of banking sector: J Hari Narayan, Irda chief
.....The move to issue new bank licences has prompted conflicting reactions.
While the idea of conglomerates floating banks has been welcomed as they
have the financial muscle, there is also the fear that they could
manipulate it to further their business interests and compromise
depositors' interest. "Insurance and banking must be boring businesses and real jazz must be in investment, mutual fund and venture capital funds,"........
India’s economic struggles captured
.........Authored by Bimal Jalan, one of India’s well-known economist and former governor of RBI who has held several top positions in the ministries of finance and industry, it is an essential read for anyone seriously interested in the history and future of India’s development as a nation. The author provides a virtual tour of the manner in which despite numerous destabilising elements and political and economic struggles India has managed to secure a place in the global map...............
Not enough guards in currency for cash transfer
One lakh and counting... That’s the number of automated teller machines (ATMs) in India, both onsite (on bank premises) and offsite. And a whopping Rs15,000 crore is transported by road every day. But if cash management companies are to be believed, there just aren’t enough armed people to escort the cash load to and from these ATMs................
Call to increase retirement age of bank employees to 65
...........The retirement age for bank employees should be increased to 65 for better utilisation of the services of seniors, said INTUC national president G. Sanjeeva Reddy. Many officers were joining private financial institutions after their superannuation and extending quality services. The Public Sector Units were unable to make use of their services fully as they were retiring by 60, he opined...........
UFBU chalks out programmes for stir
.........A press release issued by UFBU district committee here informed that the committee chalked out programmes including branch visits, area wise conventions, street corner meetings and a centralised rally and a convention here on February 16 to mobilise support for the two-day strike..........
Corporate banks lack social responsibility: Vayalar Ravi
...........“Through the Banking Amendment Bill, corporate houses want to take control of the Indian economy. They do not have any social responsibility and the move to allow corporates to start banks is not good for the country. Banks play a crucial role in bettering the economy,” he said. The minister opined that the policies initiated by Jawaharlal Nehru and Indira Gandhi should be protected. The minister added that the Reserve Bank of India should realise the importance of cooperative banks in the country........
Bank unions should work together with managements: RBI Deputy Governor K C Chakrabarty
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| "We need strong and responsible trade unions in the banking system so that trade union and managements can fight market forces and help in making services available to all. Banking services should be available at everyone's doorsteps,........ |
18 EDs in race for CMD posts in 9 banks
As many as eighteen executive directors of various public sector banks are in the fray for the post of Chairman and Managing Director (CMD) in about nine banks.........
Non-performing assets in Indian banks
...........The change in the policy of choosing auditors by public sector banks from the empanelled list of audit firms, deviating from the erstwhile practice of appointing bank auditors by a committee consisting of members of the banking division of the Ministry of Finance, RBI and CAG is intended for ensuring level playing field among all Indian banks in respect of appointment of the auditors. In the present scenario, it has become all the more important for RBI’s mandatory inspection to act as an effective deterrent for banks not to resort to non-adherence to applicable prudential norms and less provisioning for NPAs.
Development in the future tense
...................The attitude of the Reserve Bank of India (RBI) and of the corporate world is as though Assam never existed all these years and is some kind of a contemporary discovery. On a recent visit to Assam, RBI Governor D. Subba Rao spoke of the need to raise credit to micro, small and medium enterprises (MSME) and agricultural sectors and for the “deepening” of financial inclusion in Assam. It passes our understanding why this awareness has come about only now after all these years. Likewise, the RBI seems to have discovered only now that the credit–deposit ratio is very low in Assam at around 47 per cent, way below the national average of around 77 per cent. All these years banks have consistently hinted at poor recovery rates in Assam compared to some of the more advanced States of India in order to rationalize this discrimination. Instead of waking up to this gross discrimination only now, the RBI and other banks operating in Assam would have done much better by realizing that this was a problem of money management rather than anything else more serious. .................................
A study on Cooperative Banks in India with special reference to Lending Practices
...............At present there are several cooperative banks which are performing multipurpose functions of financial, administrative, supervisory and development in nature of expansion and development of cooperative credit system. In brief, the cooperative banks have to act as a friend, philosopher and guide to entire cooperative structure. The study is based on some successful co-op banks in Delhi (India). The study of the bank‟s performance along with the lending practices provided to the customers is herewith undertaken.................
Participatory-banking for equality before law in India
The secular system adopted by the Reserve Bank of India (RBI) for banking and financial services in India is conflicting with the fundamental right to freedom of religion. RBI being a secular institution may not adopt any religious model of banking, but it is equally important that RBI should not make any law conflicting with any religion including Islam. So far the Government of India (GoI) and RBI have been reluctant to allow financial inclusion of Indian Muslims by resolving this specific conflict of secular banking system with Islamic laws.........
There is a Need to Revise Definition of NPA - Some Practical Suggestions
Banks are passing through a difficult phase. Year 2012 has been a tough year and 2013 will also be tougher. The major problem being faced by almost all banks, specially the PS Banks is the problem relating to NPA. Most of the banks have huge hidden NPAs. Therefore, there is a need for re-look at the present definition of NPAs.......
Read..........
Read..........
Finance Ministry in talks with RBI for allowing PSUs to issue rupee bonds
The finance ministry is holding discussions with Reserve Bank of India on a potential sovereign bond issue, in a major review of its policy on direct overseas borrowing. The ministry is also simultaneously examining the possibility of state-owned entities, which have the backing of the sovereign, raising funds through rupee-denominated debt overseas,............
INDIA-OECD-WORLD BANK REGIONAL CONFERENCE ON FINANCIAL EDUCATION
Sunday, 3 March 2013
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19.30 – 22.00
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Pre-event dinner hosted by Dr. K.C.
Chakrabarty, Deputy Governor, RBI
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DAY 1 – Monday, 4 March
2013
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8.30 – 8.50
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Registration
of Participants
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8.50 – 9.00
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Welcome Address by Dr. K.C. Chakrabarty, Deputy Governor,
RBI
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9.00 – 9.10
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Opening Remarks by Ambassador Richard Boucher, OECD Deputy
Secretary-General
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9.10 – 9.20
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Opening Remarks by World Bank
representative
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9.20 – 9.40
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Keynote Address by Dr. D. Subbarao, Governor, Reserve Bank
of India
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9.40 – 9.45
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Vote of Thanks by Mr. G. Gopalakrishna, Executive
Director, Reserve Bank of India
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Read.................
Investment savings limit needs to be increased
The wishlist for the personal tax sector, which applies to individual taxpayers, includes increased savings limit for investments up to Rs 3 lakh, separate deduction for education expenses and revival of standard deduction...................
On reducing the old glitter
......Strangely, the report does not refer to an overvalued rupee making imports cheaper. It is worth recalling that at the height of the foreign exchange crisis in 1991, Manmohan Singh liberalised imports, cut import duties and devalued the rupee to launch the reforms process. The present thinking in RBI seems to run counter to that strategy, preferring a strong rupee, higher duties and import restrictions.
Debit cards set to cross 50 crore by 2015
.....However, this does not mean that Indians have yet decided to embrace cashless transactions in a big way, the study added. “The debit cards are largely being used for cash withdrawals and not much at the merchandise stores. The point of sales usage was limited to just about Rs 6909 crore monthly sales in December by the debit card-holders,”...............
Multiplicity of frauds keeps banks jittery
.......Most frauds in the Indian banking system occur at the channel partner's end. While banks have to strictly comply with several regulations, there is no mandated regulatory environment for merchants and retail stores where the card is swiped. Their systems are often hacked to steal customer details. Consumers are also ignorant. All these are adding fuel to fire,”.............
Cards and Frauds
There
has been a spate of credit card frauds all over the world. Cards are
being used in four continents while the holder is blissfully sleeping in
another time zone. Why does this happen? Because no one follows
instructions. Have you ever seen the salesperson at the desk compare
signatures? In any case, it is difficult since the space given for your
signature is so small that even a bad forgery can get by. The only
solution is to make photo cards mandatory. And the photograph must be at
least one-fourth the size of the card to give a proper perspective and
opportunity to compare it with the person presenting the card. If even
after this there are frauds where the holder is not even present in that
town, the merchant and the company shall be liable, not the holder.
- T R RAMASWAMI, (ET)
- T R RAMASWAMI, (ET)
Confronting cyberthieves
The refusal of the Maharashtra State Banking Ombudsman to intervene in a case of net banking fraud that left a customer poorer by nearly ten lakh rupees is bound to add to the anxiety of consumers who are afraid of falling victim to cybercrime. Much as plastic money and online commerce are convenient, they bring with them the baggage of security concerns. The banking and payment card industries, and enforcement agencies must respond to such incidents with alacrity..........
Have you been duped online?
.........Recently, the Reserve Bank of India (RBI) suggested banks disincentivise usage of cheques. RBI suggested measures such as setting limits, levying charges on issue of cheque books to account holders or levying charges on cheque usage, both by the issuer and beneficiary. However, given that frauds still happen, is this shift feasible or even desirable? More importantly, what are the precautions that customers and banks should take to ensure security?.............
RBI may tighten credit card norms
The Reserve Bank of India (RBI) is likely to come out with new norms to ensure card safety. Bankers say that this is likely after a meeting RBI had with banks on Friday to discuss recent frauds in electronic
payments. Bankers told RBI that two forensic investigators have been
appointed to identify the source of fraud. The investigation is being
done by banks that install card acceptance machines in merchant
establishments.............
Damodaran panel likely to submit report soon on business climate
The Damodaran panel,
comprising government officials and corporate honchos, looking into
ways to improve the country's overall business climate is likely to
finalise its report soon.............
Exercise caution before you sign up for a bank locker
.......banks don’t have uniform norms for allotment. On paper or on their Web sites, many banks state that the criterion for allotment of lockers is that you should be a savings/current account holder of that bank. In addition, Reserve Bank of India’s ‘Master Circular on Customer Service’ (available on the RBI Web site) allows banks to obtain a fixed deposit which would cover three years’ rent and charges for breaking open in case of an eventuality. But in reality, you may not get a locker even if you fulfil both requirements..........
Saturday, February 9, 2013
Inflation still high, says RBI Governor
.....Acknowledging the role of UCO Bank that has adopted Jalanga village under financial inclusion programme, Subbarao said, “After my first outreach programme here (in December 2009), UCO Bank has opened a branch which is catering to the banking needs of the entire population of Geltua gram panchayat. I’m informed that 84 SHGs have been formed at this gram panchayat. While UCO Bank’s Jalanga branch has tried all out to provide loans to the people, some are yet to avail credit." Earlier, Subbarao inaugurated the maiden ATM of UCO Bank here and also held an interactive session with a few SHGs (self-help groups). V Ramchandra Rao, Regional Director-RBI (Bhubaneswar) said, “UCO Bank opened a branch at Jalanga on January 6, 2010. The branch has extended advances of Rs 2.5 crore to 567 people. Total deposits of the bank have touched Rs 4.61 crore and 540 ATMs have been issued.”........
RBI says will reach consensus with govt
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| “When there is consultation, obviously, you have to take into account the other side, its viewpoints. We will come to a mutual position and then issue (the guidelines),” |
My view on "Silence............ tension over pension......."
Congratulations to all those who took part in the silent protest. I feel there is no better way than to protest silently. After all, as retirees, we are all senior citizens and should set standards of protest. The silver line is that the protest has been taken note of the by the Central Board. If we persist with such peaceful and effective protests, the day is not far off when our efforts will fructify. Once again Congratulations to all the participants at Guwahati.
- S. Srinivasan, Cochin (via e-mail)
New bank licence guidelines “very soon”: RBI Deputy Governor
.....Reserve Bank is likely to “very soon” come out with the final guidelines on new bank licences as its consultation with the Finance Ministry on the issue is nearing an end, Deputy Governor Anand Sinha said on Friday. He also said the RBI and the Finance Ministry will arrive at a common position on issues like allowing brokerage firms and realtors into the banking space......
NDMA preparing norms for RBI to create codes for banks
The National Disaster Management Authority (NDMA) is in the process of preparing guidelines for the Reserve Bank of India (RBI) to create a set of codes for banks that provide home loans to ensure that only housing units that conform to prescribed safety standards can avail of loans............
New hub to deposit fake currency notes
The heart of the Capital not only houses the nation’s central bank but also, ironically, the biggest piggybank of fake currency in the country, highly-placed sources said on Friday. In a first-of-its-kind initiative aimed at reducing ‘unnecessary paperwork, formal communication and toil’, the Parliament Street police station, located a stone’s throw away from the Reserve Bank of India (RBI), has now been made Delhi’s nodal collection centre for fake Indian currency notes (FICN). “Earlier, as per guidelines issued by the RBI, banks across the Capital were supposed to deposit all the fake currency notes they detected at their branches at local police stations annually,” said an officer.......
My View on "CRR = 900 km metro............."
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| Manohar Mahajan |
--------
Read this IMF view reported in HBL on February 7:
“..with the Fund estimating that a 10 percentage point reduction in the effective SLR likely lowering the borrowing costs for the private sector by around 100 basis points(BPS), while increasing the borrowing costs for the government by 50 bps over the medium term. IMF contends that reducing the effective SLR by 10 percentage points would reduce foreign borrowing by corporates by around four per cent in the medium term.”
I am leaving it to the readers to guess whose brief IMF is carrying. We will soon hear an echo of whatever is contained in the IMF note from the North Block despite feeble objections raised by Rakesh Mohan and Janak Raj.
 |
| M.G.Warrier |
“..with the Fund estimating that a 10 percentage point reduction in the effective SLR likely lowering the borrowing costs for the private sector by around 100 basis points(BPS), while increasing the borrowing costs for the government by 50 bps over the medium term. IMF contends that reducing the effective SLR by 10 percentage points would reduce foreign borrowing by corporates by around four per cent in the medium term.”
I am leaving it to the readers to guess whose brief IMF is carrying. We will soon hear an echo of whatever is contained in the IMF note from the North Block despite feeble objections raised by Rakesh Mohan and Janak Raj.
Welcome RBI initiative
...........But a perusal of banks’ websites reveals that they have not followed RBI directive to make details of unclaimed funds public. A period of ten years allowed for banks to utilize unclaimed funds is too much which should be reduced to three years as is the system in case of unclaimed dividends of companies. Necessary amendment should be done in Banking Laws.
Read - Kashmir Times
Growing at five per cent
.....The Finance Ministry’s mid-year economic analysis (December 2012) sharply lowered the Economic Survey’s exaggerated estimate of 7.6 per cent to between 5.7 and 5.9 per cent but even that — as well as the usually more conservative Reserve Bank of India’s revised forecast of 5.5 per cent — look overly optimistic.......
Don’t allow loans for gold buy: RBI tells co-op banks
......“In view of the concerns…,it is reiterated that state and central co-operative banks should not grant any advance for purchase of gold in any form, including primary gold, gold bullion, gold jewellery, gold coins, units of gold Exchange Traded Funds (ETF) and units of gold Mutual Funds,” RBI said in a notification............
Bankers want SLR reduced if HTM bond limit is cut
Bankers have asked the Reserve Bank of India (RBI) to cut the Statutory Liquidity Ratio (SLR) limit if it also considers reducing the Held-To-Maturity (HTM) limit of banks. In a meeting of chief financial officers (CFOs) of public sector banks with RBI today, the central bank sought feedback on the idea of reducing the HTM limit. The CFOs suggested a cut in the SLR limit from the present 23 per cent, so that the impact on banks’ balance sheets was minimal. RBI has been in favour of reducing the HTM, whose upper limit is 25 per cent of SLR securities but it is traditionally aligned to the SLR ratio.......
Manager tells fraud victim bank helpless in face of virus attacks
......"What shocked me the most was when the manager at the bank's Malad branch told me that my debit card had been cloned after my data got compromised in a malware attack that took place in the bank," Kavathe said. "The manager was clueless when I asked him what was the guarantee my new card would not be cloned. He said the bank was unable to solve the problem of virus attacks and customers' confidential data being stolen.........
'Secure systems to tackle card frauds'
Taking serious note of increasing instances of credit card frauds, the Reserve of Bank of India (RBI) said it would probe such incidents. It also asked banks to investigate such cases and take steps to plug loopholes. “We have to find out how it has happened, where it has happened and then take corrective action,” RBI Deputy Governor Anand Sinha said.
He conceded that the magnitude of the frauds is large and said the central bank would consult with other banks to deal with the situation..............
Int'l debit cards to blame, too
Banks are also responsible for the global credit card fraud, to some extent. Earlier, banks used to issue only ATM cards and then came ATM- cum- debit cards. Now, the option of only ATM cards has disappeared and banks are forcing account holders to have international debit cards, whether they need it or not. This international debit card can also be used in ATMs. The Reserve Bank of India should look into this matter. It must also take action against nationalised and private banks, with the exception of cooperative banks, as the former are guilty of this practice.
- Deendayal M Lulla (FPJ)
What changes in Income Tax rates would you suggest in the forthcoming Budget?
As the Union Budget for 2013-14 approaches, all individuals eagerly await to know about the one aspect that affects them most - Income Tax.
Record your comment here.........
Record your comment here.........
Cabinet okays amendments to NABARD Act, 1981
........The decision of the Government to transfer the balance one percent shares to the Government of India from RBI in NABARD shall be carried out, which will provide for increased public accountability, as the Government will acquire the equity held by RBI. NABARD will combine the post of Chairman and the post of Managing Director, into one, Chairman and Managing Director to ensure a distinct line of command. ...........
Empowering women in agriculture
...... Therefore, it is exceedingly important that we re-examine the current status of women’s empowerment in the field of farming. This is the purpose for which I introduced the Bill in the Rajya Sabha. The Bill is, however, yet to be discussed. I congratulate the author for highlighting the need for women’s empowerment in the field of agriculture.
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