Progress of banks reviewed in DLRC meeting

.....LDO, RBI emphasised upon the achievement on the CD ratio of 40 per cent in the district by March 2013, which currently stands at 35.25 per cent. He said the bankers to come forward in lending in key areas, so as to achieve CD ratio. He also emphasised on the financial inclusion of all unbanked villages in the district, to be taken on priority. DDM, NABARD discussed KCC, SHGs, Farmers Clubs, financial inclusion, among other issues.

He also informed about the initiatives taken by NABARD in the last few months viz. SHG’s training programmes, bankers training programme, farmers club programme etc. in Kathua District......

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To facilitate tax payments, banks to work on March 29-31

Banks with branches conducting government business will be open on March 29 (Good Friday), March 30 (Saturday, usually a half day for banks), and March 31 (Sunday) for full day with extended hours to facilitate receipt of Government taxes from members of public........

Read - HBL

BoM gives Rs. 2.51cr-drought aid

In view of the severe drought situation in the state, Bank of Maharashtra (BoM) donated Rs2.51 crore to the Chief Minister’s Relief Fund on Thursday. The cheque was handed over to chief minister Prithviraj Chavan by chairman and managing director of the bank, Narendra Singh...........

Read - DNA

Hidden Cash Lures Subbarao to Rural India Worth $24 Billion

“Do you know what my job is?”

.......Following Subbarao’s visit in January, the wheat and sugarcane growers of Lalpur Karauta on the floodplain of the Ghagra river will get a branch of a state lender. The Reserve Bank of India chief takes time out from running the nation’s monetary policy twice a year to explain how the financial system works to some of the 720 million Indians who don’t have a bank account. “It’s good for the poor people, for banks, for the governments and for the economy,” Subbarao said in the village...........

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Populism to the fore again

Share markets were expecting the RBI to cut the policy rate by at least 25 basis points in its mid- quarterly review of the monetary policy. The RBI did not disappoint. On Wednesday, Governor D. Subbarao announced the cut. But if the markets were still spooked, it was no fault of the RBI. The DMK pull- out notice to the UPA bosses cancelled out whatever positive impact the minimal cut in the policy rate could have had on the markets. Bad politics, it should be noted, can always override good economics. As it is, the economy was deprived of much positive news. After the attempted fiscal consolidation in the budget, the RBI was not averse to reward the government with a small cut in the prime lending rate............

Read - FPJ

Doctors to ask RBI to make coins blind-friendly

CHENNAI: At least two ophthalmic associations will petition the finance department and the Reserve Bank of India telling them that the coins of various denominations introduced in the last two years are of the same size and lack distinct features, making them harder to identify for the visually impaired...........

Read - TOI

Why inflation needs to come down first

................The RBI explanation is that the relationship between growth and inflation is non-linear: at low levels of inflation and stable inflation expectations, there is a trade-off between growth and inflation — essentially implying that some inflation can be tolerated to stoke the growth engine. But above a certain threshold inflation level, this relationship reverses, the conventional trade-off loses context, and high inflation actually starts eating into growth...........

Read - IE

Inflation is no more rate-bound

...........As policymakers look for options to reverse a widespread deceleration in the broader economy, the UPA government and the Reserve Bank of India (RBI) are perhaps facing their biggest macroeconomic reality: the RBI's bitter medicine to keep interest rates high has not tamed prices, but crimped growth. And the reason may lie in the “new normal” of inflation..........

Read - Hindustan Times

RBI asks bank not to accept post-dated cheques

.......Another issue with the RBI's new directive is at present, there are 81 centres  or locations that offers local ECS, while there are just nine centres, which offer RECS across the country. National ECS, on the other hand is operated at Mumbai and facilitates the coverage of all core-banking enabled branches located anywhere in the country. Though our banking system is developing fast, the access to banking today is not available to one-third of our population and ramifications of a hasty decision to penalise usage of cheques will be too catastrophic for a nation like ours, which requires social up-liftment and inclusive banking before forcing technology on our people...........

Read - Moneylife

Close dormant bank accounts, lapsed insurance policies

......There are almost 20 million demat accounts in India. According to experts, around 20-30 per cent of these are dormant. There are a lot of options for someone to cheat a person. There are many who had opened demat accounts when banks offered it for free or for Re 1 and most haven't used these accounts but are maintaining them. To prevent falling prey to such traps, always complete your Know Your Customer (KYC) norms when investing or opening accounts.....

Read | Business Standard

In which the trappers get entrapped

...... It would be a waste of a great opportunity for the banks if they end the story with firing some frontline people and not look at cleansing their incentive systems. It would be a pity if the Reserve Bank of India (RBI) were to continue turning a blind eye to the decay in the bank branching system in India that has turned them into customer traps. The off-the-record view of the top people in RBI has been: this is not our problem. Well, it does look like it is your problem now, RBI...................

Read - Mint

WHAT ROLE BANKS CAN PLAY IN CURBING THE GENERATION AND GROWTH OF BLACK MONEY IN THE COUNTRY?

......I will narrate one real incident.  In a big city in Maharashtra, one Probationary Officer opened hundreds of accounts during the ‘Road Show’ conducted by the bank.  In many of the accounts opened on that occasion, serious compromises were made with regard to KYC and PML guidelines.  The management was well aware of the lapse.  The major thrust at that time was on opening as many CASA accounts as possible per day, without going into their quality.........

Read.......

RBI Starts Scrutiny of Three Banks - Will RBI Hush Up Cobrapost Disclosures Too Like It Did for Rs 32,000 crore Derivative Scam ?

...............I still remember the role of RBI in hushing up the Rs 32,000 crore derivative scam where banks were merely fined upto Rs 15 lakhs though country lost thousands of crores of rupees.   I understand that scam in Derivatives is  still pending in Court, neither any bank or the regulator is ready to bring and publish a comprehensive details of that scam.   Thus, I am afraid that this case too may meet the similar fate.    However, one fact has given me some hope i.e. the deadline of 31st March, 2013.   Usually, in such cases, politicians buy three to four months time (later on time is extended) so that evidence can be destroyed by the respective organisations and public memory fades away.    I will like to give full marks to RBI Governor for fixing a short deadline for investigation this time............

Read...........

Banks may need separate arms for insurance

.....“The insurance industry has asked for clarity on permitting banks to act as insurance brokers. The regulator will allow banks to act as insurance brokers, but they will have to form separate subsidiaries for it,” said a senior Irda official. Also, banks will cease to be agents and not be able to sell insurance products directly if they choose to be brokers.

The proposal of forming subsidiary for broking operations has been mooted by an Irda sub-committee which includes officials from Indian Banks Association and representatives from life and general insurance industries. The committee is also looking into other operational difficulties in the model.....

Read.......

India’s Economic Challenge

........India has again moved to try and shore up economic growth despite persistent inflation. After this latest shift, however, there is less room for additional measures, and investors know it............

Read...........

Standing up

..... What might disappoint captains of the commerce industry is the possibility that there can be at best one more policy rate cut, followed by a long pause. It is hard to see what else the central bank could have done. The RBI governor is to be admired for standing up to immense pressure to take stronger action, and for being guided by the courage of his convictions.........

Read - The Telegraph

Futility of a rate cut

.......The current politico-economic environment is preventing banks from lending money to corporate, which it believes is a riskier business. Banks rather prefer to deploy their cash in government bond. Till this dichotomy is not changed, RBI reducing rates is unlikely to help both the markets and the economy.

Read | Business Standard

Realty players seek more rate cuts from RBI to boost sector

............. Confederation of Real Estate Developers Associations of India (CREDAI) termed RBI's repo rate reduction by "just" 25 basis points as a "missed opportunity" and urged it to ease funding options in realty sector..............

Read - Business Today

Limited headroom

.....The budget had stressed fiscal consolidation, which the RBI has been asking for, as an essential complement to the anti-inflation stance of its monetary policy. So irrespective of whether the revised fiscal road map — which among other signposts calls for the ratio of gross fiscal deficit to GDP to decline to 4.8 per cent in 2013-14 — can in fact be reached, the RBI was forced to act. However, even without the government’s prompts, the RBI has not ignored growth concerns. Recent policy statements have, in fact, shifted the RBI’s focus away from inflation towards growth. As so often in the past, the mid-quarter review explains why monetary policy has to balance the conflicting claims of growth and inflation.......

Read - The Hindu

Faulty transmission

.....With a broken credit channel, it's harder to revive GDP growth, which was just 4.5 per cent in the December quarter. Until the banks are working properly, rate cuts from the RBI seem like throwing good money after bad.......

Read | Business Standard

Karunanidhi tsunami washes away RBI's 25 bps rate cut announcement

 Not even in his wildest dreams would the Reserve Bank of India Governor Duvvuri Subbarao have thought that the Karunanidhi tsunami would wash away in minutes his carefully crafted plan to revive the economy from the depths. There was hardly any time for investors and traders to enjoy the feel good factor, the only possible outcome of the 25 basis points reduction in key interest rate. The punchbowl was snatched away even before the party began.......

Read - ET

Tata Housing's reaction on RBI Monetary Policy

.....“We welcome RBI’s decision of a second successive cut in monetary policy rates this year. Banks and NBFCs took cue from the central bank last time around and immediately lowered their lending, and even deposit rates. Although, lenders might not take further cue this time, the thing to consider is that the rate cut, coupled with the proposed additional INR 1 lakh tax rebate for first home loan borrowers (up to INR 25 lakhs), is likely to act as a stimulus for the demand for affordable housing in India...........

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Restrict foreign access to the Bar

..... They leveraged their position by employing the kin of powerful serving and retired bureaucrats. The Indian Express was more to the point — “The first set of clearances was granted after a delegation of foreign law firms, under the leadership of the son of the Union Minister of Law, met officials of the RBI.” An NGO called ‘Lawyers Collective’ filed and succeeded in a public interest litigation (PIL) in the Bombay High Court challenging these permissions......

Read - The Hindu

Probe NBFCs' working: Speaker to govt

........The Speaker said there were several cases of NBFCs and credit cooperative societies duping innocent poor people in rural areas. He also felt that some officials of the cooperative department too connived with the NBFCs and cooperative societies and wanted them to be exposed..............

Read - TOI

Banks mop up Rs 1 lakh crore in deposits in a fortnight

Scramble to meet year end targets has begun for the banks particularly with deposits. Deposits with the bank grew 13.14% year on year (y-o-y) according to Reserve Bank of India (RBI) data.............

Read | Business Standard

Government sets up Financial Intel Units in Karnataka

..............To keep an eye on black money changing hands and to curb all financial frauds, the state government has set up Financial Intelligence Units (FIU). The units, comprising officials drafted from the Police Department, will work in all the police commissionerates and districts with an exclusive mandate to probe financial frauds and irregularities involving more than Rs. 1 crore in nationalised and private banks. “It will also act as a nodal agency with the Reserve Bank of India (RBI), besides investigating cases referred to it by the Enforcement Directorate .............

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Our bank is no longer community-based: K B Nagendra Murthy

.....TMB was founded by a particular community and it was run by them; they proved to be the best brains in trading and in enterprise skills. But in the last few years, the bank has been run by professionals, appointed as MD & CEO, and part of the community. Today, 15 per cent of new branches are being opened outside Tamil Nadu, in places like Gujarat, Maharashtra, Andhra Pradesh and others. The bank's top five customers are from outside Tamil Nadu. This shows the bank is not community-based......

Read | Business Standard

Sahara’s full-page ads against SEBI challenged in High Court

.....“The content and intent of these advertisements clearly shows that Sahara India Pariwar and Subrata Roy seem to have little respect for the law of the land and want to create financial anarchy and financial indiscipline by alleging extraneous motives to a statutory body formed for safeguarding the interests of the common investors and for regulating the financial market/securities in the country”.......

Read - Moneylife

Current account deficit solution lies with Reserve Bank of India

.......On its part, the Reserve Bank of India is firm on its policy of intervening in the foreign exchange markets only to curb excessive volatility. In fact, the Reserve Bank seems weary of a depreciating rupee fearing that a weaker rupee will worsen the problem of inflation. The view seems to be demand for imported oil, fertilisers and coal being rather inelastic, no useful purpose will be served by a weaker rupee. There is enough room to disagree with the view............

Read | Business Standard

Inflation Can be Good

...So, is inflation good or bad? Well, it depends on the kind of inflation you are talking about. The first type of inflation, what I call “good inflation”, is when wages fuelled by rising demand and increasing productivity grow faster than the cost of goods and services. This process creates wealth and surplus in the hands of the workers. The most important thing to remember about this kind of inflation is that.........

Read - ET

RBI Review becomes a side-show

....One shudders to think what would have happened had the RBI stood firm and not succumbed to pressure to cut rates. In hindsight, it was good it did succumb; against all economic logic, perhaps and despite the Governor’s avowal less than a week ago at the London School of Economics that ‘Inflation above six per cent would justify, indeed demand, tightening of the monetary policy stance!’ Fortunately, Subbarao made up for playing along with the government.........

Read - ET

RBI’s turn to bat

.... Driven by food or otherwise, that’s the inflation households face. Non-food, manufactured goods inflation, to which RBI responds, essentially reflects stable commodity prices with some reduction in pricing power as demand slows. Not surprising then that RBI reiterated its January guidance of whoesale price inflation persisting in the 6.5-7% in 2013-14. This should be the floor though: if GDP growth picks up as expected and global growth recovers, the interplay of global liquidity with a rebound in demand will result in higher commodity prices feeding back into domestic inflation..............

Read - Mint

Banks unlikely to cut lending, deposit rates now

........."The repo rate cut is not enough for banks to reduce lending rates. Further revision in the cash reserve ratio (CRR) was required for interest rate reduction. We will look at revising our rates in next financial year only," Pratip Chaudhuri, chairman of State Bank of India (SBI), said..................

Read | Business Standard

RBI could have given stronger signal to push growth: Montek

New Delhi: Appreciating the RBI's decision to cut key interest rate by 0.25 percent, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Tuesday said it could have given a more robust signal to the industry. "This (rate cut) is a signal and I have to say that it is in the right direction", he said, while addressing an Assocham conference here.......

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BANKER’S TRUST REALTIME: RBI lobs the ball in govt’s court

...........One can’t blame the Indian central bank for taking this stance. After all, efficacy of the monetary policy is limited unless the nation follows a tight fiscal regime. RBI’s mandate is price stability, making credit available for productive purposes and financial sector stability while spurring economic growth is part of the government’s domain. The central bank can extend a helping hand, but the government needs to take the initiative........

Read - Mint

RBI runs out of room

.................The RBI notes, but does not fully acknowledge, the fact that "core" inflation - inflation in non-food manufactured products - has moderated considerably, and that the sole driver of inflation now is food prices, which are unlikely to be contained by monetary tightness. The RBI has a warning for the government against raising minimum support prices further, but whether the government will heed it is another matter altogether............

Read | Business Standard

Barking up the wrong tree?

.....As an aside, it’s a sign of progress that RBI policy reviews don’t always result in a “splash or “event”—it suggests that the central bank is doing a better job of guiding market expectations that are reflected in market prices in the run-up to these policy reviews—something that Ben Bernanke has perfected through his artful communication strategy. But while the actions did not disappoint, the guidance certainly did—in some quarters at least.......

Read - FE

Relief laced with caution

......Acknowledging that the Centre had made a “firm commitment to fiscal consolidation” in Union Budget 2013-14, the RBI said the key challenge was to reduce the current account deficit (CAD) which is riding at record levels and “well above the sustainable threshold”. It urged the government to adopt measures to improve the competitiveness of exports and wean away demand for “unproductive imports”. The RBI and the Centre have been bickering for over a year on the direction of monetary and fiscal policy and have blamed each other for not doing enough in their domains to prop up a faltering economy.......

Read - The Telegraph

RBI’s different strokes

...........RBI is entitled to its view on whether rate/CRR cuts are warranted by the facts on the ground, but since the first rule of central banking is not to surprise the market, the central bank needs to be consistent in its tone. It can't bring in CPI, CAD and even the output gap as key variables in certain policy statements, omit them in others, and then bring them back again.

Read - FE

RBI flags inflation, CAD hurdles to further cuts

.............."The foremost challenge for returning the economy to a high growth trajectory is to revive investment. A competitive interest rate is necessary for this, but not sufficient," .........

Read - TOI

Five global voices on expectations from RBI policy review

......Markets have completed the correction and are now consolidating in want of triggers to move back up. Can RBI surprise by higher than 25bps rate cut? Can government pull out more rabbits from its reforms basket? .......

Read - ET

Repo rate cut not enough, complementary actions needed: C Rangarajan

More than the Reserve Bank of India (RBI)’s action on the rate front, its guidance on limited headroom for monetary easing drew attention. C Rangarajan, the Prime Minister’s Economic Advisory Council chairman and former RBI Governor, says the behaviour of the headline inflation numbers and continuance of the subdued nature of core inflation (non-food manufactured items) will determine the stance. He tells Indivjal Dhasmana that for quality of fiscal consolidation, one of RBI’s main advice, the Centre has to keep revenue deficit under check and aggregate subsidies at the budgeted level. .............

Read | Business Standard

Economic conundrum leaves little luxury for RBI’s Subbarao

...........The Indian economy is in a structural mess, with a growth collapse being accompanied by high inflation and a record current account deficit, which are both signs of excess demand. The previous time India saw such sluggish economic growth, around a decade ago, it had far lower inflation and a current account surplus, which had given RBI under Bimal Jalan far more scope for large interest rate reductions. Subbarao does not have that luxury...........

Read - Mint

Subbu to FM: Take 25bps cut, but real mess is at your end

...............Subbarao is telling Chidambaram that the real mess is at your end. How can mere rate cuts help? But, at another level, the monetary policy is a mere sideshow. With politics taking centrestage in the context of the DMK’s proposed exit from the UPA, whatever the RBI does may not matter. Business confidence will not depend on politics, not monetary economics.

Read..........

May It Please Your Lordship Chidambaram

.....The signal for the broader economy lies more in what the commercial banks are doing, than what the central bank does. Lenders from State Bank of India to ICICI Bank are raising deposit rates. When banks are paying more for funds from you and me, how does it matter if the RBI is going to lend at a lower rate which anyway is based on government bonds that banks buy using our deposits.

Read - ET

RBI Shrugs: Hard Work is Now GoI’s

.........Caught between the devil (slowing growth) and the deep sea (high inflation), the RBI perhaps had no choice but give in to the popular mood. Fortunately, the governor made up for playing along with the government and markets with a hawkish accompanying statement. The statement makes no bones about where the onus lies.......

Read - ET

Banks prefer to play a waiting game

..............“The reduction in repo rates by 25 basis points is a welcome move, and indicates continued focus on growth. At the same time, RBI’s commitment towards maintaining adequate liquidity in the system is important in the context of continued smooth functioning of markets,”........

Read - The Hindu

Monetary threat

...............While the RBI may have acted like a dove by reducing the repo rate by a further 25 basis points to 7.5 per cent, its tone this time is distinctly ‘hawkish’, as revealed in the statement that “the headroom for further monetary easing remains quite limited”. So, what has changed in the last three months?...........

Read - Business Line

RBI rate cut neutralised by political uncertainty, banks put rate related decisions in limbo

CHENNAI: The RBI's decision to opt for a 25 basis point cut in repo rate (the rate at which the apex bank lends to other banks), has been completely overshadowed by the political developments causing banks to put their lending rate decisions in limbo. According to top financiers, the question mark over the stability of the government has ended up neutralizing the RBI's growth pill completely...........

Read - TOI

This rate cut looks like an afterthought

.........it is pertinent to note that the most telling comments from the Central Bank are hidden within the six page statement and highlight the urgent need by the government to " revive investment". In a strongly worded statement, the RBI underlines that a " competitive interest rate" is necessary but not sufficient - and that sufficiency would require " bridging supply constraints, staying the course on fiscal consolidation, both in terms of quantity and quality, and improving governance." Clearly, the RBI is highlighting the limitations of the credit channel of monetary policy transmission in the backdrop of persistent food inflation, anchored inflationary expectations and the morass created by the inertia in strategically addressing massive supply side bottlenecks............

Read - FPJ

RBI continues with contorted guidance

...........Wouldn’t it have been much clearer if RBI finally took credit for delivering its mandate: bring down core inflation to its lowest in three years by lowering growth by design and that it plans to keep it that way until government reforms and policies change India’s investment environment and pave the way for better growth-inflation dynamics.

Read - Mint

Reserve Bank of India: Monetary policy review March 2013 - Full statement

In its mid quarter (Jan-March) monetary policy the Reserve Bank of India (RBI) on Tuesday cut the policy or repo rate by 25 basis points to 7.50%. Consequently, the reverse repo came down to 6.50%.

Read......

RBI postpones meet on Surat bank

........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..........

Read - TOI

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...........

Read - The Hindu

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,” ..............

Read - The Hindu

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,” ....

Read | Business Standard

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.............

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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.........

Read - TOI

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........

Read - ET

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...........

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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..........

Read | Business Standard

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,"..............

Read - TOI 

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..........

Read | Business Standard

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..........

Read - The Hindu

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.............

Read | Business Standard

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?........

Read - The Shillong Times

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?...........

Read - ET

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. ..............

Read - Mint

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........

Read - FE Editorial

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.........

Read - Mint

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,”

Read - Mint

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........

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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..........

Read - ET

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..........

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Finance ministry withdraws its controversial diktat to levy processing fees on payment of credit card dues by cheque or cash

..............In a letter dated 12^th 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.............

Read - Moneylife

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........

Read - HBL

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.".......

Read - Sakal Times

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..........

Read - Deccan Herald

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................

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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.............

Read | Business Standard

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,”..............

Read - The Telegraph

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.......

Read | Business Standard

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........

Read | Business Standard

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..........

Read - Deccan Herald