........According to bank officials, RBI's Mumbai headquarters had assured to place the merger case with Mehsana Urban Cooperative Bank at the meeting scheduled on March 18 in Mumbai. This would have ensured the accounts of 44,000 SNSB customers move to Mehsana Urban Cooperative Bank. However, the meeting had to be postponed as RBI's Executive Director S Karuppasamy has gone on an official tour abroad..........
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, March 20, 2013
Awareness programme on financial literacy held
..............Reserve Bank of India Assistant General Manager V. Raveendran led a class on the banking services available for people, and also on the methods to identify fake currencies...........
Corporation Bank plans to reach out to rural pockets
..............“Basing on the guidelines issued by the Reserve Bank of India, we have short-listed the worst affected farmers and small traders and provided them the opportunity of onetime settlement. For farmers, we are ready to provide fresh loans, once the outstanding is cleared,” ..............
Govt infuses Rs 3,004 cr into State Bank of India
.....“We are confident that with this capital infusion, we will meet the capital adequacy requirement prescribed by the Reserve Bank of India,” ....
Improving customer services in Public Sector Banks : Namo Narain Meena
................In order to improve customer service in banks, majority of recommendations of the Damodaran Committee have been implemented by the banks. A Working Group has also been constituted by the Reserve Bank of India to review and update the BO Scheme and also the changes in services and product delivery strategies of banks. Incognito visits by RBI Officers are conducted to bank branches to make independent assessment of the level of customer service provided by the Banks.............
Read.........
Bahrain bank's branch atAluva eyes NRK diaspora
.........The bank is already operating branches in Mumbai and Hyderabad and is looking to open a fourth one in New Delhi, Bucheery said, adding that the bank's application is with the Reserve Bank of India, pending approval. "We hope to get it soon," he said.........
Assam to amend Assam Protection of Interest of Depositors (in Financial Establishment) Act, 2000
GUWAHATI: Following the advice of regulator, RBI and SEBI, Assam will suitably amend Assam protection of interest of depositors (in Financial Establishment) Act, 2000. The act will be amended and draft is circulated to other departments to suggest necessary changes. The state government intends to table the bill in the ongoing budget session of the assembly........
Money Transfer mail from Shyamala Gopinath transfer manager RBI bank
Some Indian are playing paying bad game with, our indian, such as win EURO million lottery, win car... I have few name , Ragu Guptta, Sunil singh,Shayam enterprise, R.linganam They all are in Dehli , hariyana and UP regions they are provided account number and saying submit money to win lottery prize. Also they send mail from RBI read below...........
Read.........
Read.........
Banks could face hefty fines if found guilty of money laundering: experts
...........“The officers involved in the act could be tried under PMLA act,” Y P Trivedi, senior Supreme Court lawyer said. “As far as bank is connived, it will not be very easy prove their role as they would put entire blame on officers” he added. However if their role is proved banks would be fined he said. In the cases where money laundering actually may have happened RBI has no power to recover the money and it will have to go through the regular procedure of going to magistrate court for demanding the money, he said..........
Consulting beats finance to the top at IIMs
........."It is true that after the financial slowdown of 2009, the hiring of investment banks took a backseat and consulting as a career option became most sought after. Even though situation improved during the last two years, with RBI's strict regulations regarding the banking industry in India, many multinational banks are shutting shop and slowing down their recruitment,"..............
Banks could face hefty fines if found guilty of money laundering: experts
...........“The officers involved in the act could be tried under PMLA act,” Y P Trivedi, senior Supreme Court lawyer said. “As far as bank is connived, it will not be very easy prove their role as they would put entire blame on officers” he added. However if their role is proved banks would be fined he said. In the cases where money laundering actually may have happened RBI has no power to recover the money and it will have to go through the regular procedure of going to magistrate court for demanding the money, he said..........
No charge for settling credit card dues with cheques, cash
......The Finance Ministry has withdrawn a ‘controversial circular’ that asked all public sector banks to emulate HDFC Bank and charge a processing fee on cash or cheque payments received for credit card dues..........
Bank to pay Rs 88K to man for clearing forged cheque
......."This is not a case of negligence alone but a mischievous act of commission or omission on the part of bank officials, who made the payment against a forged cheque. "The bank cannot escape its liability for such a gross and grave negligence or mischief in causing not only financial loss to complainant but also forcing him at this ripe age to knock the door of this forum for redressal of his grievance," ............
Read - IE
Mallya hits out at SBI chairman
A day after State Bank of India (SBI) Chairman Pratip Chaudhuri told reporters in New Delhi bankers “are blazing all guns and taking all steps” to recover Kingfisher Airlines’ loans, the grounded carrier’s Chairman Vijay Mallya today hit back. “I seriously wonder what motivates bank chairmen to constantly speak to media on loan recovery from Kingfisher Air. What about others?” Mallya tweeted.............
Tuesday, March 19, 2013
Two Economists clash over the state of ecomony
C. Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, is a highly respected economist in the country and what he says is taken as a last word. But the government’s new chief economic adviser, Raghuram Rajan, has chosen to disagree with him publicly. If Rangarajan is venerated in the country, Rajan is well regarded in present-day global economists pantheon. He is credited with having sounded the warning note at a meet of US Federal Reserve at Jackson Hole just before the financial meltdown struck. The public disagreement was therefore a battle royale of sorts.
But then, what was the difference?........
RBI may oblige with rate cuts, but it’s government that is killing economy
..........RBI is not truly independent. A truly-independent RBI might have left rates unchanged. But, in all probability, January IIP
figures (2.4% increase) and continuous badgering will persuade RBI to
provide a growth stimulus. Hence, perhaps a 25-basis-point cut in repo
rate. Does this help growth?...........
What does RBI really think?
......We do not fully understand the compulsions that determine RBI’s monetary policy decisions. It is entirely possible that Subbarao was merely defending the January monetary policy decision and not giving us clues for the rate decision to come today. ..............
My View on "Lend a big hand, RBI"
This comment is not directed to RBI (RBI knows its job), but to RBI-watchers who get carried away by observations like this from rating agencies and analysts. The continuous pressure on RBI to ‘cut rates’ and the assurance that a rate cut will do wonders in economic growth and the threat of downgrade are tactics being played by vested interests which do not care about the impact of inflation on more than 60 per cent of India’s population who contribute most to the country’s growth and have no voice in deciding the wages they should get or the price they should be paying for their survival needs. RBI should (and will) continue to have a total view of the impact of its policy measures on the common man. The fiscal policy which is caged by the rich and the powerful as also external pressures need a makeover factoring in the concerns expressed by RBI expressed through Monetary Policy statements, almost bi-monthly, these days.
- M.G.Warrier
CRR cut critical
Though RBI has boxed itself in by conveniently referring to elevated levels of CPI and the current account deficit (CAD) as being the reason for not cutting policy rates from time to time, and then ignoring them when it has felt the need to cut rates, it is clear that if a rate cut is to help, this has to be accompanied by a CRR cut. Right now, with low deposit growth, banks have no option but to hike deposit rates across different tenure—so the only way to break this cycle and lower lending rates is to cut CRR or find other ways to infuse liquidity........
Why Subbarao should not reduce interest rates as yet
......So the signals are mixed, but on balance the structural nature of the slowdown, mixed inflation trends, fragility of the fiscal path and a persistent current account deficit are, in this newspaper’s opinion, ample reason for Subbarao to resist cutting rates.........
Chidambaram expects RBI to address liquidity concerns
 |
| “RBI Governor is also aware of the issue of liquidity. Let’s see what steps the governor takes,” |
RBI may cut rates, but your loan rates may not fall
....... Every time the top brass of the RBI is supposed to meet, calls for interest rate cuts are deafening. In fact, there seems to be a formula that has evolved to create pressure on the RBI to cut the repo rate. The repo rate is the interest rate at which RBI lends to banks and sets the tone for other interest rates. The formula includes Finance Minister P Chidambaram giving statements in the media about there being enough room for the RBI to cut interest rates........
SBI wants softer interest rate regime: Diwakar Gupta
........ The Reserve Bank has traded a very careful path in the growth inflation dynamics. Consensus is building around the fact there will be a 25 bps cut and that is what all of us are expecting..........
Repo rate cut given; CRR change doubtful: CNBC-TV18 Poll
Consumer Price Inflation has been in double digits for 3 months in a row, but core inflation has fallen sharply and this has sparked hopes that the RBI may find it possible to ease up on its it’s monetary stance..........
Finance ministry withdraws its controversial diktat to levy processing fees on payment of credit card dues by cheque or cash
..............In a letter dated 12th March, the finance ministry has quietly withdrawn its ‘fatwa’ to “consider charging a processing fee from customers paying credit card card dues either in cash or through cheque”. In fact, this letter too is written by the same DD Maheshwari, Under Secretary at the Department of Financial Services, who sent out a fatwa marked “most immediate” to all chief executives of public sector banks on 25 October 2012. This time he writes that the letter “stands withdrawn with immediate effect.............
An eye for the short term
.....One argument, no doubt, against lowering the minimum tenure of FDs or permitting banks to offer interest on current accounts is that it would aggravate a growing asset-liability mismatch confronting the industry. As it is, well over two-thirds of bank deposits are of below two years, making it difficult to fund longer tenure assets such as home loans. Rather than encouraging banks to do more to mobilise FDs with tenors of five years or more, and also raising resources through long-term bonds, Chaudhuri’s suggestion would imply doing just the reverse. But this is a wrong inference. No sensible banker, after all, will extend a 15-year home loan based on funds borrowed for three days........
RBI expected to cut policy rates till 2013 end
..."The expectation is that the RBI to cut the policy rates by 50-75 basis points through the calendar year 2013 and then take stock when the inflation is expected to pick up around the year end.".......
Pay income tax dues well in advance: RBI
....In an appeal through a circular, RBI has asked income tax assessees to remit their income dues sufficiently in advance of the due date. It said the rush for remitting income tax dues through RBI has been far too heavy towards the end of March every year and it becomes difficult for it to cope with the pressure of issuing receipts, although additional counters to the maximum extent possible are provided for the purpose..........
RBI extends deadline for issuance of new cheques
The Reserve Bank of India (RBI) on Monday asked banks to issue new cheque books only under the new format and gave them time till July-end to withdraw the old format cheques. All cheques at present with customers in the old format (non-cheque truncation system) will continue to be valid for another four months (the earlier deadline was March 31), the apex bank said................
Don't accept PDCs for EMI payments where ECS is available: RBI
In a effort to give electronics payments a push Reserve Bank of India (RBI) today asked banks not to accept post dated cheques (PDCs) and EMI payment cheques even if it conforms to new CTS -2010 (Cheque Truncation System) format on the locations electronic clearing system (ECS) debit is available. This means all the new borrowers where ECS facility is available will have to compulsorily shift to electronic payments systems and they can’t sign post dated cheques and give them to banks to encashment.............
FM goes after wilful defaulters
..........“We cannot have an affluent promoter and a sick company. Promoters have to bring in additional money and companies have the duty to pay back loans. Banks have got the message. Without doing anything that will kill the business of the industry, they will have to take steps to recover their NPAs,”..............
Reserve Bank widens its money laundering probe
Report by March 31; banks' gold coin sales, wealth management biz also under scanner
.....Its final report on the three banks would be completed by March 31 and further course of action, as necessary, would be initiated thereafter, RBI said, adding the branches and the head offices of these banks were being scrutinised.......
UP to rescue 16 ailing district co-operative banks
......BJP legislator from Gorakhpur Radha Mohan Das Agarwal had raised the issue in the state assembly today. He informed the House that RBI had served notices on these 16 banks giving them 15 days’ notice, which would expire by the end of this month. These banks employ about 8,000 heads and provide credit to small farmers and enterprises. He urged the state to inject funds in these banks to keep them afloat........
Banks must take firm steps to recover NPAs: FM
...... “While we understand why NPAs have risen and the restructured accounts have risen, we also wish the banks to take strong steps to recover their dues, I think the promoters have a duty to bring in additional money and the companies have a duty to pay their dues to banks. We cannot have an affluent promoter and a sick company,” Chidambaram told reporters after meeting heads of PSU banks and financial institutions..........
Panel may seek 'limited role' bank licence for telecos to push inclusion
.......The Nayak panel has said that 'regulatory bias' to nudge payment systems towards banks must be resisted and entities like the National Payments Corporation of India must not end up being a 'monopoly by-design.' On RBI's role, the panel has said that RBI cannot be a payment regulator while running payment systems like real time gross settlement (RTGS) and National Electronic Fund Transfer (NEFT) which must be spun out of the central bank's domain. Moreover, it has suggested amendments to the Payment and Settlement Systems law of 2007 so that the board within RBI for regulation and supervision of payments can also include representatives from technology firms and banks that are familiar with the latest technologies. ........
Banking loopholes
.....................a cheque book couriered to me was returned undelivered wrongly by the courier company with a remark "consignee shifted". This should have put the bank on guard and it should have taken steps to revisit my KYC and re-verify my address. But that did not happen. The ongoing investigations may as well exonerate the banks of any fault in the present revelations. But the way their systems are organised, it may not be too long before another one puts them in a tight spot.
Private banks may lose premium edge
.......A former banking industry official with three decades of experience suggested that a definite impact could be felt if there are strong indications of misconduct at the banks. “The RBI could pass a lot of strictures which will make it difficult for business development. The focus of the business may shift from growth to an in-house clean-up. This could lead to a corresponding fall in growth,” he said, preferring anonymity due to the sensitive nature of the issue............
This bank has no place for gyan
...........It is the story of HDFC Bank, India’s most valuable bank — how the idea of a bank took shape, how it was staffed, how it took its first steps and how it subsequently rose rapidly over the last two decades to the top of the banking charts. The book has many colourful vignettes that come alive in the engaging style used by Tamal...........
Lessons from Sebi-Sahara
......... As if it hasn’t been audacious enough, the group has, through an advertisement, challenged the regulator to a television debate and complained that the Sebi chief hasn’t given it an audience. Such histrionics should be ignored. Meanwhile, Sebi needs to be further empowered so that it has the right to recover funds, much like the CCI or the Income Tax authorties...........
Gold is not the villain
Gold is not the villain the Indian government portrays it to be. Rather, it's the low public acceptance of the state's right to tax people that pushes Indians towards the perceived safety of the "barbaric metal", as economist John Maynard Keynes called it...............
RBI launches study on banks active in selling gold coins
......"RBI has undertaken a thematic study in respect of banks that are active in selling gold coins or wealth management products to examine whether there are systemic issues and to plug deficiencies and legal loop-holes, if any,"........
Black methods
...........The staff of three top private banks across the country were shown as too willing to accommodate the demand to sanitise black money and to proactively facilitate it. It shows that the practice is not limited to the rare rogue manager but has come to be part of normal banking operations. It is not difficult to infer that other banks may be equally involved, though private banks may be in it to a much greater extent than others...............
India Infoline to apply for banking license
........"As an NBFC one cant grow beyond a point. So the growth path is to
convert into a bank. It will give us access to low cost resources and
improve our ability to tap the tier five and six cities,"......
Insurance sales by banks to come under RBI lens
Reserve Bank of India may review the sales strategy employed by banks to encourage employees sell life insurance policies. Incentives for sales has come centre stage with the Cobrapost sting highlighting how front office staff takes extreme risks to sell a life policy..........
Tax-saving and more
Tax-saving products play an important part in financial planning. While some products deliver fixed returns, equity-linked saving schemes (ELSS) have twin benefits. Besides providing tax-shelter, they offer reasonable returns (of course with risk). Since a major portion of the corpus is invested in equity and equity-related products, there is a risk element...............
Capital raising woes may make small Indian banks takeover targets: S&P
...........Some smaller banks could also become takeover targets, which could result in consolidation of a fragmented sector, said Deepali Seth, S&P’s credit analyst. The biggest challenge for the sector is the state of Indian public finances. “The government’s large fiscal deficit will limit its ability to inject capital into government-owned banks, which currently have less capital adequacy than the private and foreign banks operating in India,”........
Banks may need Rs 2.6 lakh cr more capital for Basel III: S&P
....."We estimate Indian banks will require minimum additional capital of about Rs 69,100 crore to meet the Reserve Bank of India's 8 percent requirement for the common equity tier 1 and capital conservation buffer ratio," it said. "The additional requirement would go up to Rs 2.6 lakh crore given a tendency for banks to hold higher-than-minimum capital and the limited market for hybrid instruments in India," the rating agency added.....
Why an SBI PO Job is a Bankable Asset
..........“Job
security is naturally a big factor. Also, despite being a government
organisation, SBI operates in a professional manner. Probationary
officer positions are not just empowered but very well-paid as well,”
added Rao. In the ongoing economic slowdown, with even IIM
placements affected and the finance sector hit hard, jobs in public
sector banks (PSBs), and particularly in SBI, are looking more
attractive than ever before..........
Farmers' loan-waiver plans to be reviewed
PUNE: The regional office of the National Bank for Agriculture and Rural Development (Nabard), on Monday, asked all district central cooperative (DCC) banks in the state to re-audit the proposal documents of beneficiaries of the Rs 52,000 crore agricultural relief and debt waiver scheme of 2008. The decision was taken following directives from the Union finance ministry and the Reserve Bank of India..........
Jamshedpur MP pitches for exclusive bank for tribals
...."I believe that a dedicated bank (with predominantly tribal employees) for people of the tribal community will play a significant role in their speedy growth,.........
Islamic banking could become available in India
.........Earlier, the Reserve Bank of India (RBI) had come out against the introduction of Islamic banking, saying that current legislation did not provide for a twin structure. RBI Governor D. Subbarao told reporters in November that "other options" may be considered to bring Muslims into the banking system. The bank has since rethought its position, according to Khan, the minority affairs minister. "There are a host of mechanisms available for channelising the savings of Muslims. Sharia-based banking is very scientific and the RBI has modified its earlier stand," he told...........
Monday, March 18, 2013
Subbarao to Meet Bankers to Discuss Risk Supervision
MUMBAI: Reserve Bank of India Governor Duvvuri Subbarao will meet select bank chief executives on Thursday to discuss risk-based supervision in banks, with recent sting operations on some private banks providing the backdrop. The Governor will be joined by former Deputy Governor Usha Thorat in Mumbai for a half-day workshop that will explore methods by which banking supervision could be strengthened, said two people familiar with the agenda.......
Remember Caesar's wife
.....As the banking supervisor, the Reserve Bank of India (RBI) needs to look at these claims from the perspective of supervisory efficiency. If, in fact, this was a regular practice by the banks concerned, should it not have come to the notice of the supervisory process? If it did, was this explicitly communicated to the banks that were found to be indulging in this activity? If it didn't, it suggests a lacuna in the supervisory framework......
Rangarajan Sees Elbow Room for RBI Governor
 |
| The former RBI governor’s statement is significant as he had backed the central bank when it refused to cut rates for most of last year, despite pressure from the government. |
Both hands now
........And since much of the RBI’s actions are predicated on the belief the government is serious about fiscal consolidation, the government’s commitment to a Food Security Bill continues to be worrying, more so given the level of provisioning the Budget has done for food subsidies. Which is why a 25 bps rate cut on Tuesday looks more likely than a 50 bps one.
RBI's Sinha to offer L&T top brass governance tips
MUMBAI: Reserve Bank of India (RBI) Deputy Governor Anand Sinha will address the top brass of engineering conglomerate Larsen & Toubro (L&T) on governance issues in banking, cementing the seriousness of the group's desire to own a bank. Sinha will address the executives on "governance in banks and other financial institutions", says the information posted on RBI's website.......
Read - ET
RBI conducts outreach programme in Nagaland
The Reserve Bank of India conducted a Financial Outreach Programme at Mhainamtsi Village in Peren District today. Addressing as the Chief Guest R. Gandhi, Executive Director, Reserve Bank of India said that during the past few years RBI has been consistently making responsibility to visit villages to spread awareness about the importance of financial inclusion and availability of financial services and products...........
RBI Recruitment 50 Posts of Meritorious Sports persons / Quota 2013
Reserve Bank of India Invites applications from interested Meritorious Sports persons for the following Posts :
RBI should cut interest rates: SBI chairman
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| "At present, the CRR is 4 per cent. It should be reduced to 3.5 per cent and the repo rate, which is at 7.75 per cent, should be reduced to 7.25 per cent. This would result in lowering of interest rates on all loans, which would boost the economy," |
Policy pointers
.....The Finance Minister has made it very clear that having budgeted for a reduction in the fiscal deficit, thus delivering on his promise to keep it within reasonable limits, he expects the RBI to ease monetary policy. There need not be a quid pro quo — after all monetary policy has to take note of inflation challenges, but such has been the impact of the budget messages, backed, as usual, by some strong lobbying that the RBI will have to reduce the policy rate by at least 0.25 percentage points.......
RBI credit policy: Will Mint Street and Dalal Street unite to sustain FII flows?
......The expectation is that the reduction in the fiscal deficit creates conditions for the RBI to cut interest rates and that this will revive private investment. However, as the RBI has pointed out repeatedly, high interest rates are not the principal deterrent to investment today. The real weighted average lending rate in 2011-12 of 3.8% was way below the average of 7% in the boom period 2004-08..........
RBI's largesse may spark rally
......If RBI doesn't cut at all, the market will crash. If RBI does cut by a minimum, the market will lose some ground or, may be, remain, unaffected. If RBI does gamble on kick-starting growth and makes a larger cut of 0.5 per cent, there will be a rally. If Subbarao believes a big cut makes sense, he will probably wait for the next policy review, in April, when there are more data. ......
RBI action: Toss-up between pause and 25 bps cut
........Clearly there is space for monetary policy easing, analysts said. Reasons: Fiscal adjustment is underway with significant reduction in deficit with credible measures and assumptions; also borrowing numbers are realistic. Although there is a case for 25 bps cut, analysts are not sure whether the RBI will cut the key repo rate. "We think that it will be a toss-up between a pause and a 25bps cut," said a note from Deutsche Bank...........
Finance Ministry plans 100% e-refunds
......A Permanent Account Number (PAN) linked with the bank account number, just like Aadhar, is integral to the Income Tax department's plans. It wants the central bank to facilitate this ceding so that the scope of the amount being transferred to a wrong account number is eliminated. However, RBI is not comfortable with the idea of making PAN linkage mandatory for electronic transfer of all income tax refunds. .....
Current account deficit solution lies with Reserve Bank of India
........A weaker rupee will not only help exports become competitive but also provide much needed protection to the domestic industries. It will also help shore up customs revenues. Containing inflation may become more difficult but that seems less difficult now than containing the current account deficit. Therefore, the Finance Minister should talk to the Reserve Bank Governor and find ways of tackling the problem of ballooning current account deficit through appropriate foreign exchange management policy rather than look to changes in Foreign Trade Policy.
CAD: The cad behind stunted growth?
.....In fact, we have to realize that compressing the dimensions of CAD is as imperative as financing the CAD. The CAD of 5 per cent of GDP for 2012- 13 stands as a monument to our mismanagement of macroeconomic policy. The credit of spelling out a more appropriate approach to tackle CAD should go to the Reserve Bank of India ( RBI). " With a lower growth, the sustainable level of CAD is now assessed at around 2.5 per cent of GDP. For minimizing the possibility of external shocks further disrupting India's growth sustainability over the next few years, it is important not only to focus on financing of the CAD, but also on compressing the CAD to lower, manageable levels. Otherwise, there are risks to the CAD from both domestic and external events. In the recent period, the CAD has been managed by improving debt inflows.....
My View on "RBI needs to strengthen its balancesheet: Report"
In the context of GOI expectations expressed through showing an expected receipt of Rs44,000 crore as share of profit/dividends from institutions including RBI(Budget 2013-14), this suggestion to take care of RBI's balance sheet strength gains importance. To ensure that temptations of government emanating from external compulsions do not dilute the strength of RBI’s balance sheet, GOI should take measures to augment the share capital of RBI after carrying out appropriate amendments to RBI Act. Till such time RBI should be allowed to retain surplus income by transfer to reserves. Considering the size of its balance sheet and the internal and external pressures on its income generating capabilities, as also the nature of shocks the Bank has to absorb from time to time, the central bank’s reserves need to be augmented on an ongoing basis.
- M.G.Warrier
Why UFBU and IBA Are Silent on Wage Revision ?
It is now almost two weeks since the scheduled meeting between IBA and UFBU to discuss 10th BPS issues, was postponed. It seems none of the parties are keen to fix even the next date for discussions........
Read..........
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Debit card for cash, credit card for shopping
.....Such a high level of proportion of debit card-based cash withdrawals from ATMs suggests the cards industry is predominantly made up of bank accountholders taking cash out their savings and deposit accounts and then utilising it. It also indicates the level of savings-based cash coming into the economy from ATMs. Credit card-based ATM withdrawals, which would indicate borrowing-based cash coming out of ATMs, are, however, far smaller in value, compared with debit card withdrawals.......
Vijaya Bank gesture to women
BANGALORE, MAR 14:
Vijaya Bank has announced that it will start three all women branches in Delhi, Mumbai, Bangalore. Also for women entrepreneurs, the bank is offering 25 basis point interest concessions in the MSME advance and additionally, 25 per cent of CGTMSE fees in respect of women entrepreneurs will be borne by the bank............
Pvt banks may be brought under financial inclusion
...............RBI has urged the controlling heads of banks to bestow their personal attention for allocation of villages as well as provision of banking services in these villages. They have also been asked to ensure that fresh opening of adequate number of brick and mortar branches in these un-banked villages are factored in their annual branch expansion plan submitted by the bank's head office to RBI..................
RBI says would take action against HSBC based on findings in AFI report
......Replying to a Right to Information (RTI) application filed by Indian Police Service (IPS) officer Amitabh Thakur and social activist Dr Nutan Thakur, the central bank said the matter was examined during its AFI of HSBC. The RBI, however, has refused to share the findings of the AFI report. It said, “The matter was examined during AFI of the bank, however, the findings of the same are received by us in a fiduciary capacity and the disclosure of the same may prejudicially affect the economic interest of the bank (HSBC). Hence the same is exempted from the disclosure in terms of Section 8(1)(d) and (e) of the RTI Act, 2005.”......
Subsidiary route: HSBC says ready to follow RBI norms
......"We will move whichever way the RBI requires us to do," HSBC India Country head Naina Lal Kidwai told PTI on the sidelines of an event here, when asked if the bank will be fine with going the subsidiary way. The comments come in the wake of recent reports that RBI had firmed up its mind on the way forward for foreign banks and would be insisting on them to operate as subsidiaries.........
'Rural wage hike pushing inflation, posing challenge for RBI'
................."Near 20 per cent annual increase in the wage inflation in rural areas is building up price pressures on food articles like cereals, rice and wheat, and is posing a big challenge for the Reserve Bank which is being called upon to cut the policy interest rates on Tuesday," industry body Assocham said.................
The real money laundering
............ If a regulator has to make an affidavit in the Supreme Court that it cannot find thousands of reported investors in two of such schemes — a total absence of KYC norms — how far is that from money laundering? We are not talking chicken feed here. The Cobra Post sting did not put even one rupee in the banking system; the other one has put in Rs 17,400 crore.
Read - IE
SBI officers under lens in fake currency case
.....Three officers of the Dalmianagar branch of State Bank of India (SBI) in Rohtas district have come under the scanner following a complaint lodged by the Reserve Bank of India (RBI) accusing them of depositing fake currency notes. Ram Jatan Paswan, the manager of RBI, Patna, lodged a complaint with Dalmianagar police outpost in Rohtas district on Saturday, alleging that the officials of the bank concerned sent seven fake currency notes to the RBI in Patna last January.........
The govt must bring money launderers into the tax net without further delay
......The banking regulator, RBI, too needs to take stock after ensuring financial inclusion of the poor is not affected. A handful of officials from the banks in question and their group insurance companies who were encouraging money laundering are certainly not the only exceptions in the country. Today, many banks are smart users of banking technology and can easily intercept potential cases of KYC mutilation by any of their branches. We do not know how robust their IT systems are, but we do know that there are far too many other banks in the country where even the IT systems do not exist to detect branch-level offences. RBI, the finance ministry and even the insurance watchdog need to get doubly serious........
ICICI BANK and black Money
..........The Regulators cannot be expected to keep a watch on the individual transactions which is the duty of internal supervisors,accountants and auditors.Financial intelligence Unit can however keep a watch on such high value transactions as banks are expected to report to them...........
Read..........
Read..........
HDFC Bank appoints Deloitte for forensic enquiry
HDFC Bank on Saturday said it has appointed Deloitte Touche Tohmatsu India to conduct an independent forensic enquiry into the allegations that it was one of the three private banks to run a money laundering racket in the country. The private lender has also roped in Amarchand & Mangaldas & Suresh A Shroff & Co to examine if any of its employees violated the bank's code of conduct and ethical standards. The bank's internal department is also probing the matter..........
CobraPost Sting: Don't settle for the small fry, follow money trail
.......If true, the top brass in these banks (not just the officials who presumably are carrying out the mandate of the bank’s top bosses) are as much partners in crime as their customers seeking to launder black money. They have much to answer for. Meanwhile, we need to pause and re-consider: does the country really need to issue more bank licences if this is what some of our most respected banks are doing? What price ‘financial inclusion’?...........
CobraPost Sting : Wake Up Call For RBI and MoF
...... Is it possible that so many officials across India toe the same line without the patronization of top brass? This is not an isolated incident but malpractices are prevalent across country in banks now under scanner. Why ICICI Bank and RBI are shy of taking action against top brass. Delay in action by RBI will mean allowing the corrupt officials to wash out the evidence.............
Banking on unaccounted money in India
.........The scandal, which Cobrapost broke by making one of its scribes pose as a frontman for a politician with two (fictitious) wives who wanted to deposit their surplus cash with the above institutions, has come at a time when the RBI was planning to issue a series of bank licences to private players for the first time in nearly 10 years..........
‘22,000 firms not registered as NBFCs committing financial frauds’
.....“The RBI, as the regulator of NBFCs, should immediately penalise companies that are not registered with them as NBFCs…Unscrupulous companies pose as NBFCs to invest money in MLM schemes with promises of heavy but mathematically improbable returns on investments, particularly when persons originally enrolled in a scheme induce others to join the same scheme. Such schemes bring adverse publicity even for the companies that are engaged in bona fide businesses,” .....
KYC Has Become a Tool for Financial Exclusion
........ Various players in the financial services industry have been crying for a while about how onerous the KYC processes are and how it is keeping away customers. Unfortunately, while that may be true, there’s plenty of anecdotal evidence to suggest that KYC acts as a convenient filter to keep out undesirable customers. Many a time, banks and mutual fund distributors have demanded authentication in excess of what is required............
Read - ET
Comprehensive Suggestions for Restructuring of NMDFC sent to Minority Minister
......... The smaller community based financial institutions and cooperative credit societies who are closer to the community have been suffering due to number of regulatory problems posed by financial regulators like RBI and IRDA because they are not allowed to turn into bank with provision to offer equity deposits and finance. They cannot promote any insurance product without interest. Not any single scheme floated by our Central or State Governments have so far provided financial aid to any community based financial institution or cooperative credit society...........
Fast-track project clearances, banks tell Centre, States
............In its macroeconomic and monetary development document, the Reserve Bank of India has observed that lack of reliable power supply has emerged as a challenge to capacity utilisation by small- and medium-scale industries. The central bank also said that policy uncertainties in areas such as iron ore and coal mining have adversely affected the output of the steel and power industries..........
Tag road loans as secured, RBI told by Finance Ministry
The finance ministry has urged the Reserve Bank of India to consider a change in its stance that treats loans to road projects as unsecured. If the RBI sheds its reluctance to treat highway sector lending as secured loans, credit flows to the fund-starved sector could grow by at least 20%-25%, officials reckon...........
Profitability of Indian banks to dip in FY13: CII Survey
Indian banks are yet to get rid of financial bruises. In 2012-13, their profitability is likely to "decline sharply" due to two reasons: stricter regulatory requirements and stress assets, according to a survey done by Confederation of Indian Industries (CII) taking feedback from 15 lenders including five state-owned, three private sector and seven foreign entities...........
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