...It may seem like the kind of gratuitous advice of the sorts that are proffered by newspapers every day of the year. But on the strength of his insider’s account of the goings-on of 1990-91, Srinivasa-Raghavan wonders if there is more to it. The “influential business newspaper” (by which he means Business Standard) counts on its editorial board a former Chief Economic Adviser to the government (Shankar Acharya) and a former Deputy Governor of the RBI who demitted office just now (Subir Gokarn). When the advice to go in for a standby loan from the IMF comes from erstwhile insider with their ear to the ground perhaps there may be something afoot. “Is something along those lines being contemplated?” asks Srinivasa-Raghavan...........
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.
Friday, April 5, 2013
Getting down to ‘ BRICS’ tacks
WHILE the latest summit of BRICS - Brazil, Russia, India, China and South Africa - was on at Durban, South Africa, last week, there seemed to be nothing unusual about the proceedings. It was business as usual. Since the main item on the agenda was the formation of a BRICS bank as the global South's answer to the World Bank and the IMF that are unashamedly pro- West and neglectful of the developing countries, there was broad support for it. However, refreshingly, there were thoughtful voices of caution: the objective was worthy, but BRICS must go about it slowly...........
Canara Bank - Appointment of Executive Director
............the Central Government after consultation with the Reserve Bank of India, has appointed Shri V. S. Krishnakumar, presently General Manager, Allahabad Bank as Executive Director of Canara Bank,........
Thursday, April 4, 2013
Two PMs & a countdown to financial crisis - T. C. A. SRINIVASA-RAGHAVAN
Who actually was responsible for the 1991 balance of payments crisis? Rajiv Gandhi or V.P. Singh? Therein lies a tale. In 2004, I was asked by the Reserve Bank of India (RBI) to edit and rewrite volume three of their history. During the process, we came up against significant blanks because the record was not fully complete in that many statements were unsupported — not as to what had happened but as to why they had happened in that particular way and not in some other way. In 2006, after work on volume three was over, I was able to persuade the RBI that it should allow an oral history to be recorded. All the main dramatis personae of the 1991 crisis — and several others — would be interviewed on audio and videotape. This would help future historians. A very senior officer of the RBI, Dr. T.K. Chakrabarty and I interviewed around 40 officers from the bank and the Finance Ministry. Those tapes are now in the RBI’s archives in Pune and can be accessed if the Governor grants permission. Another way, I imagine, is to use the RTI route because there is no security involved.............
Read - The HinduNBFCs to plead RBI to keep Thorat panel norms on hold
Non-banking financial companies (NBFCs) will request Reserve Bank of India not to implement draft guidelines based on Usha Thorat Committee report till the time loan growth revives and regulatory changes are made regarding loan recovery..........
Reserve Bank probe into alleged money laundering case delayed
....When contacted, the RBI spokesperson refused to comment on the investigation report.
However, a person in the know of the developments said, “After the completion of the ongoing probe, the RBI will make it public only when it announces any penalty after another round of show-cause notices and replies. It can take weeks or even months. Even if the RBI completes the probe tomorrow, it won’t reveal the findings.”..........
Youth wanted to loot RBI
MUMBAI: Padma Shekar Nair (27) who tried to sneaked into the Reserve Bank of India (RBI) headquarters in Fort on Wednesday, told police that he entered into the building with an intention to loot the RBI. Nair who police said is undergoing treatment for mental ill told police that he was told that there is huge money inside the RBI and that is why he brought a air gun and tried to enter in.............
RBI breach: 1k pellets found in Keralite’s room
Padmagirish Rajshekhar Nair, 27, who was caught while entering the RBI headquarters at Fort on Tuesday with an airgun, had claimed to possess a bomb and threatened to kill everyone there. Security guards at the headquarters said this is what Nair said to them during the altercation between them. Later in the day, the police found 10 packets containing 1,000 pellets in all and his identity documents from his hotel room. The police have also found some photographs of Nair with a group of people in different locations in South Mumbai during his last visit. The police are now probing whether he has links with any terrorist outfit.........
Teaching Indian sex workers to spot fake currency
In the eastern Indian city of Calcutta, a non-governmental organisation has started a programme to help sex workers recognise fake currency given to them by clients, reports the BBC's Rahul Tandon...........
RBI annual policy on May 3
....“D. Subbarao, Governor, Reserve Bank of India will announce the Monetary Policy Statement 2013-14 on May 3, 2013,” the RBI said in a statement.......
Monetary easing has had little impact so far
..... Will a government that relies on outside support for a parliamentary majority be able to take hard decisions to rein in expenditure? What is bothering the RBI is retail inflation, and especially food inflation, which has been in double digits over the past three months. "Concerns about inflation have not receded," says Rao. The RBI appears to have loosened policy to back the government's efforts to control fiscal deficit and move ahead with reforms. "The RBI has done its job even though inflation appears to be fairly high," says Madan Sabnavis, Chief Economist at Credit Analysis and Research Ltd.......
Don't expect any rate cut in May policy: Keki Mistry, HDFC
At least in the May policy it is unlikely that the RBI will cut rates because they have just done it a while ago. So, they will wait for a while and see what kind of monsoons we have. I would expect a rate cut to happen in the July policy, but let us wait and see.........
'Government has just no say in monetary policy panel'
......The panel has suggested setting up a Monetary Policy Committee (MPC), consisting of two members from the RBI – including its governor – and five members from the government, of whom two would be appointed in consultation with the central bank. But, contrary to the apprehensions, the new setup will ensure greater accountability and transparency, Professor Ajay Shah, who worked on the FSLRC report, told Parnika Sokhi in an interaction. Edited excerpts:..........
A one-stop regulator
......There is however a niggling doubt on whether the mandate of the single regulator is too large and unwieldy. The success of UFA will depend upon putting up an organisation structure that has departments dealing with each unique asset class manned by experts in the field. Employing adequate qualified personnel would be imperative to address a wide range of issues from a diverse customer set. There is also the possibility that some of the less important segments could be given less attention by the UFA.........
Flawed design
......A reading of the analysis of the FSLRC is a good guide to all that is wrong with the current system, from its inability to prevent fraud and crisis, to its inefficiencies, the near impossibility of regulating activity and entities that fell into regulatory gaps and the sheer cost of managing a fragmented regulatory framework. But the solution in addressing all these concerns is likely to excite considerable opposition, and perhaps justifiably so. .......
Barring FDI, the RBI must control all capital flows: FSLRC
Y H Malegam, CA, S B Billimoria & Co, disagrees with Financial Sector Legislative Reforms Commission (FSLRC) recommendation that finance ministry should get the power to impose capital control instead of the Reserve Bank of India. Malegam, who is a long term board member of the RBI, told CNBC-TV18 that capital inflows coming from foreign direct investment (FDI) should be managed by the government, but all other capital control must rest with the RBI............
Implement guidelines to curb money-laundering: Devendra Raghav, Director, Foreign Bank
.............Regulators, namely, the Reserve Bank of India, the Securities Exchange Board of India, and the Insurance Regulatory and Development Authority have all issued detailed KYC/AML/CFT guidelines covering the areas of customer acceptance, customer identification, monitoring of transactions and risk management. Rigorous implementation of these guidelines by the reporting entities creates deterrence to the use of legitimate channels for illegal money.
RBI to urban co-operative banks: Grant unsecured loans up to 25 per cent of assests
.........."In order to promote lending to priority sectors and to provide impetus to the objective of financial inclusion it has been decided that UCBs fulfilling...conditions may, with the prior approval of the Reserve Bank, grant unsecured loans (with or without surety) upto 25 per cent of their total assets," the RBI said in a notification..............
State Co-Operative Bank management urges for action on appointment
IMPHAL, April 3: The Management of the Manipur State Co-operative Bank Ltd today called a press conference at the Manipur Press Club today urging the state government to complete the process of appointment of a cadre officer of the bank who fulfills and fits the criteria of the Reserve Bank of India to the post of Chief Executive Officer in the implementation of the Government of India’s Revival Package for Short Term Cooperative Credit Structure (STCCS).........
Vinod Rai: Auditor or crusader?
........After school, Rai attended Hindu College, University of Delhi, and the Delhi School of Economics where he was one of Prime Minister Manmohan Singh’s students. He was among the unusually successful 1972 batch of the IAS, alongside current governor of the Reserve Bank of India D. Subbarao, central vigilance commissioner Pradeep Kumar, former agriculture secretary T. Nanda Kumar, former home secretary G.K. Pillai, former secretary of the Planning Commission Sudha Pillai, and current electricity regulator Pramod Deo, to name a few. His first posting was to Kohima in Nagaland..........
National Pension System gives near double-digit return
NEW DELHI: The National Pension System (NPS) is fetching near double-digit returns, which is at least a percentage point higher than what employees' provident fund or public provident fund (PPF) offer. NPS is a voluntary long-term saving scheme for the private sector but mandatory for those who joined the government from 2004. ..........
India's Chidambaram sees 8% growth by 2015
........Chidambaram added that monetary easing by the central bank, which has cut interest rates twice so far this year, is beginning to feed into increased economy activity. The Reserve Bank of India (RBI) is expected to lower borrowing rates further in 2013. "I think at this time, there is perhaps still room for cutting rates, but that is a call the [RBI] governor has to take," he said.................
Banks to step up due diligence for diamond financing
....Without specifying the exact quantum of NPAs, Shyamal Acharya, deputy managing director of India’s largest public sector bank, said that State Bank of India (SBI) has to suffer. He continued: “Diamond stocks held as collateral is not a fixed asset which can be disposed off any time. Stocks also pose a holding risk which banks would keep in mind before lending.” Acharya was talking in “Emerging trends in financing of Indian diamond & jewellery sector”, a one day seminar organized by the Gems & Jewellery Export Promotion Council (GJEPC) under the Ministry of Commerce.......
Acute shortage of gold in south India
....Meanwhile, GJEPC has suggested the government allow tax-free import of gold to encourage export of jewellery which consists of around 14 per cent of India’s merchandise exports. Restrictive measures and a raise in import duty would not reduce gold imports to India, which has been proved by a recent report by the Reserve Bank of India (RBI). According to RBI’s data on balance of payment, gold imports in the first nine months of the last financial year were reported at $37.8 billion against C Rangarajan-headed Prime Minister’s Economic Advisory Council’s estimates of $36 billion for the full financial year........
India's GJEPC Hosts Banking Conference
.......Key speakers at the conference include Pratip Chaudhuri, chairman of the State Bank of India, Snehlata Shrivastava, additional secretary at the Ministry of Finance, and Chinmoy Kumar, Deputy General Manager at the Reserve Bank of India, along with members of the diamond trade. Other participating banks included ABN Amro, Scotia Bank, Antwerp Diamond Bank, and Standard Charter Bank. With Basel 3 regulations being implemented this year, the global banking sector is exercising greater scrutiny in lending, including in India. Earlier this year, Maxim Shkadov, chairman of the International Diamond Manufacturers Association (IDMA), criticized the Indian banking sector for allowing clients to use funds earmarked for rough purchases and manufacturing to speculate on rough prices...........
Why India should not further delay a credit line from IMF
.......In December 2012, the Reserve Bank of India renewed its credit line from the Bank of Japan. There is now an option to borrow up to $15 billion (earlier it was $3 billion). However, it is still not large. Moreover, the effective coverage is just 20% at present due to some restrictions. There is a need for much larger option.......
Sebi expresses concerns over grey mkt growth; calls for one regulator
........The comments come at a time when Sebi is fighting a long- drawn case against Sahara group, which has been asked by the Supreme Court to refund over Rs 24,000 crore raised from over three crore investors through issuance of certain bonds without Sebi’s approval.......
Kisan Credit Cards: Bad loan bubble waiting to burst?
..............According to RBI data, banks had Rs.33,200 crore overdue in the direct agrifinance portfolio till 2011 June. The latest figures are not available. The chairman of a large state-run bank, however, dismissed concerns on KCC exposure. “We increase the credit limit only when the farmer repays fully. There are no major concerns,” he said.........
BoI launches portal for better coordination
.......Following the directive of the Reserve Bank of India (RBI), the responsibility of establishing effective coordination between different nationalized, private and cooperative banks and the government, to monitor and ensure effective implementation of government schemes has been given to BOI.......
SBI Partners with NCR to introduce Intelligent Cash Deposit ATMs for a LessCash society
.......NCR’s solutions will allow SBI to offer an array of revenue generating and customer serving opportunities such as bill payments, funds transfer and remittance via traditional card-based or cardless approach, mobile phone top-up, and couponing – making everyday consumer interaction exceptional. What is exciting is that the ATMs’ are capable of cheque deposits too. In the near future, the exact locations where the deployment will happen will be known. Over a period of time, these machines should be able to promote RBIs’ vision of LessCash society.......
Nabard funds development works worth Rs 8,400 cr in Karnataka
.....“We have disbursed the highest ever investment credit support for banks to the extent of Rs 1920 crore in Karnataka. This will improve the much needed capital formation for agriculture in the State,” S.N.A. Jinnah, Chief General Manager, Nabard, Karnataka Regional Office.......
Wednesday, April 3, 2013
Indian Exceptionalism of Subbarao is On Test
The
essence of the ‘this-time-is-different’ syndrome is simple. It is
rooted in the belief that financial crises are things that happen to
other people in other countries at other times; crises do not happen to
us, here and now. We are doing things better; we are smarter; we have
learned from our past mistakes. The old rules of valuation no longer
apply. Unfortunately, a highly leveraged economy can unwittingly be
sitting on the edge of a financial cliff for...........
Economy: For policy harmony
IN the run-up to the review of monetary policy it has now become fashionable for the Finance Ministry to nudge the Reserve Bank of India (RBI) to ease its policy rates to pep up aggregate demand. The central bank hardly obliges at a time when inflation at the retail level remains relentlessly high. In the backdrop of the economic slowdown, the call for a rate-cut has become so cacophonous that the RBI deems it de rigueur to underscore the importance of fiscal-monetary policy coordination. It has come out with a monograph, Report on Currency & Finance 2009-12: Fiscal-Monetary Coordination, prepared by a team of young officers under the guidance of Executive Director Deepak Mohanty............
Youth detained for carrying air gun near RBI building
.....Retired director general of police, D Sivanandhan, who is working with the RBI as security advisor, said, "He tried to enter from the staff entry gate. On being stopped, he pushed a guard and took 5 steps after which other guards stepped him near the entry wall of RBI. He is changing his versions. More information will be sought about him from Kerala Police. RBI's security is in place and effective," said Sivanandhan.......
Following RBI the public sector might adopt flexitime — not that the public will notice
........And more good news — impressed by the whoops of joy emanating from the RBI, other government sector organisations might follow suit. Except that, hey — we thought the public sector was already on flexitime! Whenever you enter a sarkari daftar trying to file a claim or deposit forms, book a seat or pay bills, it`s usual to find the official imperative to the task goofing off. ...........
YES Says ‘No’ to Staff for Sharing Internal Mails
YES
Bank has sacked some employees after they forwarded an email from the
CEO’s office to their friends. The mail was about the dos and donts
following the Cobra Post sting operation. The mail shares no interesting
fact, but the bank has taken an exception to the way a communication
from the corner room was handled.
ET
ET
IBA’S NEXT CHAIRMAN COULD BE FROM A PRIVATE BANK
In the
last bankers’ conference (Bancon) held in Pune, finance minister P
Chidambaram told the Indian Banks Association (IBA) members that its
next chairman should be from a private bank since none of the top-level
private bankers were present at the conference. The idea was to give the
private sector a representation at IBA. The vacancy for the chairman’s
(held by KR Kamath, CMD of PNB) post is a long way off. IBA could
consider appointing an official from private banks for the CEO’s post
which is due to be vacated by middle of this calendar year. In the past,
ICICI CEO HN Sinor has been at the helm of the bankers’ body and made
it a vibrant organisation.
ET
ET
Mobile Payment Systems:What Can India Adopt From Kenya’s Success?
............The inactive low-income users expressed their keenness to restart using mobile money in the future subject to a reasonable pricing policy by the service provider. The study concludes that despite the immense potential of mobile money in promoting financial inclusion in India, very little efforts have been made by the RBI and banks to promote the model among the prospective low-income clients. Regulations in India permit mobile transactions only they are linked to a registered bank account, through which transactions take place.........
WHAT IS THE LIKELY DA INCREASE FOR BANK OFFICERS AND WORKMEN FROM May 2013 to July, 2013
The exact increase for DA cannot be given at this stage as GOI has yet to announce the CPI for the month of March 2013. However, based on the CPI already announced for the month of January 2013 and February, 2013, we are doing this guess work. The CPI announced and projected so far are as follows:-..........
Read...........
Read...........
Tax dept wants to count your cash
Now, keeping cash more than Rs 50,000 with you may draw the attention of the Income Tax Department. In the new forms for income tax returns, the government may ask non-salaried individuals to declare in-hand cash of more than Rs 50,000.........
The big rate puzzle
I get the point that some analysts are making: that despite the recent cuts in the Reserve Bank of India's (RBI's) policy rate, bank lending rates are unlikely to come down. But I am not entirely convinced. Yes, some heavyweight banks have raised deposit rates recently and, if they are indeed interested in protecting their interest margins, it would be irrational for them to drop lending rates, even if repo rates are lower. That seems like a fair argument, but .......
Videocon to enter banking, earmarks Rs 1,000 crore
............"The minimum requirement as per RBI is Rs 500 crore but we have set aside Rs 1,000 crore. There is a big market in rural and semi-urban areas."..........
Banks in good spirits
.........While there is no doubt that banks have to be careful while lending and that they also need to provide more prudently than they have been doing so far, the recovery process must work smoothly; with net non-performing assets in the banking system estimated to be close ...........
Current account shocker - Renu Kohli
India’s current account deficit was a shocker as it zoomed to 6.7% of gross domestic product ($32.6 billion) in the last quarter of 2012. The $10 billion jump in just one quarter (from 5.4% of GDP in July-September) surpassed all forecasts by a yard and more. While much of the deterioration came..........
Timeline: Changes to SLR for banks since 1949
Following is a timeline on changes in the statutory liquidity ratio (SLR) since 1949...........
Liquidity in banking system turns tight
.....Bankers expect some measures from RBI ahead of the policy because this fiscal it has been scheduled for May 3 whereas a large chunk of government borrowing is expected in April itself. Also with the rupee coming under pressure, RBI may be forced to intervene in the forex markets thereby reducing supply of funds as it infuses dollars and takes out rupee funds......
Should banks pay interest on current accounts as well?
.....Now the only last bastion that remains to be liberated from the regulated interest rateregime is current accounts. And the SBI chief wants this to be deregulated along with the freedom to accept term deposits for periods as low as three days, as RBI permits acceptance of deposits for a minimum of seven days at present. The reasons for such a demand appear to be on the following grounds:.....
Govt will argue for lowering of rates by RBI: Chidambaram
TOKYO: Government will continue to argue for lowering of interest rates by Reserve Bank in the backdrop of softening of headline inflation and the need to promote economic growth, Finance Minister P Chidambaram today said...........
Reserve Bank of India : penalizes Sanmitra Sahakari Bank Ltd., Pune
.....RBI had issued Show Cause Notice to the bank in the response to which the bank had submitted a written reply and after considering facts of the case, bank's reply and personal submission in the matter, RBI came to the conclusion that the violation was sustained and warranted imposition of penalty.
Read........
State blamed for proliferation of fly-by-night companies
.....Addressing a media conference in this connection along with CPI district secretary J.V. Satyaranayana Murthy here on Tuesday, Mr. Anjaneyulu said at a time when the Centre and the RBI were talking of financial inclusion the common man was unable to approach the public sector banks, which were concentrating more on high value customers. He said in the last few months about half-a-dozen unscrupulous finance companies had downed shutters in Visakhapatnam resulting in several families going bankrupt.......
IFRS implementation by banking cos unlikely before 2015: ICAI
New Delhi: Recommendations on implementation of IFRS standards by banking companies have been given to the Reserve Bank of India but are unlikely to come into force before 2015, according to accounting regulator ICAI. Going forward, Indian accounting standard would be converged with the International Financial Reporting Standards (IFRS)............
KVP's kin summoned by ED
.........The ED which got the matter verified through RBI also came to a conclusion that a Fema case could be made out against Raju's firm. In fact, another Rs 600 crore too flowed into the Raju company through the same Mauritius route.......
Crop loan waiver: farmers turn to CM as last resort
.....The RBI, in its “master circular-guidelines for relief measures by banks in areas affected by natural calamities” dated July 2, 2012, says: the principal amount of the short-term loan as well as the interest due for repayment in the year of occurrence of the natural calamity may be converted into term loan. Generally, the restructured period for repayment may be three to five years …. The restructured portion of the short term loans and term loans which have been converted into fresh loans may be treated as current dues and not be classified as NPA.”.......
Tuesday, April 2, 2013
New thinking by an old hand
............As in the past when he was with the Reserve Bank of India (RBI), he continued to look upon his role as one in search of issues (the more complex the better!) and to suggest solutions. He combines a breadth of vision with an intensity of gaze which is rare among monetarists! He relates monetary issues to the larger fiscal and developmental and weaves them organically.................
RBI's powers not to be clipped: FSLRC
 |
.........Autonomy and accountability are two sides of a coin and need to be balanced......... |
Read - IE
RBI offers its officers flexible work timings
Aligns HR Policy With Global Practice To Improve Employees’ Work-Life Balance
.......... “The
RBI felt the need to adopt a flexi-time approach to align its HR
practices with the best in the country and in the world, and to
supplement its efforts at being a knowledge institution,” said Alpana
Killawala, Chief General Manager, Department of Communication, RBI.
“More importantly, as younger people join the stream of our officers, we
want them to balance their home and work lives,” Killawala said. While
the project is a pilot that the policy maker with 18,000-strong
workforce has started from January 2, 2013, it clearly indicates the
growing importance of maintaining a work-life balance in the public
sector as well........
Reserve Bank Officers' Co-op. Credit Society Ltd goes digital
Visit the site.................
Information sent by Sh A R A L Shaikh and Madan Gauria, (EXRBITES Group)
Big guns like Montek, CII & Asshocham, NCAER ignore FSLRC!
The FSLRC headed by Justice B N Srikrishna, invited about 27 persons and organisations for interactions. However, industry bodies like CII and Assocham, Planning Commission's deputy chairman Montek Singh Ahluwalia and RBI's former Governor Dr Y V Reddy did not bother to engage in the interactions................
Read - Moneylife
The biased work of FSLRC
..........For a commission that wanted to put in place a legislative framework for the financial sector that endures for a considerable length of time, it is unfortunate that it chose to recommend that the finance minister be appointed the chairperson of the Financial Stability and Development Council (FSDC). It did this, instead of recommending a more transparent and meritocratic process of the government recommending nominees chosen through a public and transparent process, subject to the confirmation of Parliament. .............
RBI cannot resolve all national problems through monetary policy: Sanjeev Sanyal
................If it has to choose between growth and inflation, the central bank should try to first curtail inflation. There is enough evidence from economic history that a central bank's first mandate is inflation control as it can be very difficult once inflationary expectations get anchored at the wrong level. This is particularly true when the constraint to growth is not demand but supply side issues. It is not the central bank's job to revive growth if there are supply side constraints and the economy has an inflation problem. Broader economic measures are needed to resolve this situation and RBI cannot resolve all national problems through monetary policy..............
Change of guard in financial sector in
This financial year will see many new personalities taking charge in India's financial sector. There will be new faces at the helm of the banking regulator, the country's largest bank and the largest insurance company. The chairman of the markets regulator will complete his three-year term in February 2014 but there is not much clarity on whether he would get an extension. A look at some challenges for the new leaders............
Impractical recommendations of FSLRC - Manohar Mahajan
I fully endorse the views expressed above.In sixth pay commission report, its author had created hotchpotch by clubbing various grades in paybands which had created a lot of anamolies and played havoc on country's financial health by recommending windfall gains for government employees. Similarly in its report FSLRC has made a number of impractical recommendations, if accepted would create a total mess in the financial sector which hitherto has been well regulated by the present regulators. Failure of FSA both in UK and Japan is well known and there is no point in implementing the same. The mere fact that four members who had hands on experience both in finance and banking have given note of dissent should be enough reason to put the Justice Krishana's FSLRC Report to the cold storage. As rightly felt, the ultimate feeling one gets after reading the report is that the Government of day, particularly FM and cronies in Ministry wanted to put RBI in tight spot by clipping its wings and Justice Krishana appears to have done their bidding by making such bizzare suggestion and reinventing the wheel. Given the short time available to the present set up in the Government as elections appear round t he cornor, the Government should of its own not take up the report for its implementation and leave it for the next Government. Any action in haste would spell disaster for the financial sector and Governement of the day should refrain from it.
- Manohar Mahajan
Re-visiting the trouble - T.C.A. SRINIVASA-RAGHAVAN
.....The slow reforms of the mid-1980s in the financial sector happened because the so-called ‘Hindu’ rate of growth forced them on the government. As S S Tarapore, former deputy governor of the RBI, once put it, there were over 200 rates of interest in the economy. Simply reducing the rates at the short end was a major reform..........
Counterfeit currency menace
Despite remedial steps by the Reserve Bank of India (RBI) during the past few years, circulation of counterfeit Indian currency notes of higher denomination appears to have once again assumed alarming proportion particularly in Jammu and Kashmir. The reports of seizure of fake currency notes from traders in Jammu region last year appears to be just a tip of the iceberg of the problem that is afflicting the state.........
Read - Kashmir Times
Read - Kashmir Times
Rural banking in the digital age
..........Financial inclusion could definitely aid to this efforts - hats off to the recent efforts made by the banks and the policy encouragement by RBI. Inclusive growth is the current compulsion of a sound public policy. True, there has been a convergence in the business interest of the banking community in financial inclusion. Financial inclusion is to be treated as a business investment. Banks are to move to the masses as a natural process of financial inclusion. The banks are already in the process of financial inclusion very much - opening and operating rural branches, rural coverage, agri-lending, SHG bank linkages, social onus of banks, etc. in fact, the process has been given the new name ‘financial inclusion’. Still, to bring the farmers under the ambit of financial inclusion the increasing role of commodity exchanges in the matter of providing forward market linkages and price discovery is being largely felt...............
RBI to meet bankers on Thursday for pre-policy discussions
The Reserve Bank of India (RBI) will meet the country's top bankers on Thursday's for pre-policy discussions, in which the latter will seek a deferral of the higher provisioning norms that came into effect today. In addition, the recent RBI norm that increased the threshold level of bulk deposits to Rs 1 crore from Rs 15 lakh is hurting the retail savers and it needs to be reversed, bankers said. RBI governor D Subbarao, along with four deputy governors, will meet the bankers. The central bank's annual monetary policy will be announced on May 3...........
Will the Post Office Bank be a boon or a bane?
..... But considering the intricacies involved in converting the PO into a full service bank that can effectively, efficiently and successfully compete with the centuries old public sector banks and the existing and upcoming high-flying private sector banks, whether it will be boon or a bane for the common people can only be known after it is up and running, as the saying goes, “the proof of pudding is in eating”.
Ponzi scam: Crime branch intimates RBI, collector
......Crime branch which is probing the multi-crore scam has now intimated the Reserve Bank of India along with evidence to prove the financial scam of Abhay Gandhi, who was arrested in 2012. "RBI officials have told us that they shall file a complaint against the company which was being operated by Gandhi. His firm did not procure the license or permission to carry out such financial transactions," said a crime branch official........
SUCO bank nets Rs. 3.2 crore profit
.....The bank was awaiting clearance from the Reserve Bank of India for the proposed branches at Bangalore, Shimoga, Yadgir, Lingasugur and Raichur (second branch). The bank had also plans to institute three cash awards of Rs. 1 lakh each for innovative farming, adoption of technology in farming and best agricultural and rural reporting.........
RBI redefines core investment firms' rules on entry into insurance
........ “While the eligibility criteria, in general, are similar to that for other NBFCs, no ceiling is being stipulated for CICs in their investment in an insurance joint venture. Further, it is clarified that CICs cannot undertake an insurance agency business,” ...........
Investors dial up mobile payments
..........In a document released last year, the central bank spelt out its vision for an electronic payments system and clarified that it would actively monitor governance of payment solutions companies, previously the responsibility of commercial banks. "RBI is taking a balanced approach to push electronic transactions and addressing key risks to avoid frauds," said Mohit Bhatnagar a managing director at Sequoia Capital, which has also funded Chennai-based Prizm Payments and Zaakpay in Delhi. In the past year, nearly half a dozen payment technology ventures have raised risk capital funding as overall industry sentiment turns positive on a sector where demand is growing fast. ..........
How banks price loans needs to change, and RBI’s nudge is welcome
..... At a time when banks stare at mounting bad loans, RBI wants to put in place a risk practice of global standard. Gross non-performing assets of public sector banks shot up by Rs 47,000 crore to Rs 1,84,193 crore in December 2012 from Rs 1,37,102 crore in March that year. There cannot be any second opinion on customers with the same risk profile getting similar treatment in loan pricing. But despite several reminders from RBI, most banks have continued to blatantly favour some customers and discriminate against others for reasons never adequately explained because of the opaque way loan pricing is done. In its regular quarterly inspections, RBI has started asking banks to justify the pricing of certain loans......
Lenders want higher provision on recast loan to be deferred
The Reserve Bank of India (RBI) will meet the country’s top bankers on 4 April for the pre-policy discussions in which the later will request deferring of the higher provisioning norms that comes to effect from 1 April. RBI Governor D Subbarao, along with four deputy governors, will meet the bankers for the pre-policy interaction. The annual monetary policy review of RBI will be announced on 3 May...........
SBI notice riles farmers
.............When contacted, a State Bank of India official said the letters were issued by the controller of the zonal office of Tiruchi and were well within the guidelines. According to a lead bank official, banks had received guidelines to deal with the mounting NPAs. RBI has allowed for such publication of ‘wilful defaulters’. “However, we only engage recovery agents, and have not used publication of photographs as recovery tactic.”..............
‘Banking sector set to grow by leaps and bounds’
.....Assistant General Manager of NABARD K.I. Shariff said a banking job offered security and opportunity to help the needy people. A career in a bank was more stable than the one in IT industry. He asked the students not to get disheartened by the huge competition saying only a miniscule of the applicants took it seriously. Over 70 per cent of applicants attempted without proper training and skills........
Karnataka Bank eyes 27% business growth
.......Under the financial inclusion initiatives, it has opened 10 financial inclusion branches, 26 ultra small branches, 1 FLCC (financial literacy & credit counselling centre) thus providing banking services to 122 gram panchayats consisting of 591 villages through business correspondents services.......
Mallya sues banks for selling pledged USL shares
............The petition, filed by UB Holding in the High Court, seeks a stay on sale of shares of its subsidiary USL by SBI after the bank sold a portion of UB shares it held as security in the market last week, said an SBI official who wanted not to be named. "We have sold a part of the USL shares. We have also received a legal notice from UB Holding restraining us from doing so. But despite that, we decided to sell them and are likely to sell the remaining shares as well as we are confident of the court ruling in our favour," said a senior SBI official requesting anonymity........
Monday, April 1, 2013
Good Samaritan with head and heart
A warm farewell was given to Dr.Sandip Ghose on 28th March 2013 in the Banking Hall of RBI, Main Building, Mumbai. A large no. of RBItes and Ex-RBItes had gathered on the occasion. While the speakers expressed with emotion, Dr.Sandip went with wet eyes down memory lane..............
................In
the annals of the Reserve Bank your name should be written in golden letters
for playing a positive and courageous role as Head of Human Resources
Department. What has placed you above others are your qualities of head and heart
and your easy accessibility despite tremendous work pressures. Your
capacity for giving a patient hearing to whosoever approached you with a
problem and your genuine desire to help, and your boundless energy and rare
communication skills serve you very well. No wonder, whosoever came in
contact with you, discovered a Good Samaritan...............
Shri Vijay Malekar, Manager, HRMD compered the farewell function. Click to Read..........
Kabhi Alwida Na Kehna...........
Chalte Chalte Mere Ye Geet Yaad Rakhna
Kabhi Alwida Na Kehna
Rote Hanste Bas Yoon Hi Tum Gungunate Rehna
Kabhi Alwida Na Kehna
Pyar Karte Karte Hum Tum Kahin Kho Jaayenge
In Hi Baharon Ke Aanchal Mein Thak Ke So Jaayenge
Sapnon Ko Phir Bhi Tum Yoon Hi Sajaate Rehna
Kabhi Alwida Na Kehna...
Beech Raah Mein Dilbar Bichhad Jayen Kahin Hum Agar
Aur Sooni Si Lage Tumhe Jeevan Ki Yeh Dagar
Hum Laut Aayenge Tum Yoon Hi Bulate Rehna
Kabhi Alwida Na Kehna.....................
Kabhi Alwida Na Kehna
Rote Hanste Bas Yoon Hi Tum Gungunate Rehna
Kabhi Alwida Na Kehna
Pyar Karte Karte Hum Tum Kahin Kho Jaayenge
In Hi Baharon Ke Aanchal Mein Thak Ke So Jaayenge
Sapnon Ko Phir Bhi Tum Yoon Hi Sajaate Rehna
Kabhi Alwida Na Kehna...
Beech Raah Mein Dilbar Bichhad Jayen Kahin Hum Agar
Aur Sooni Si Lage Tumhe Jeevan Ki Yeh Dagar
Hum Laut Aayenge Tum Yoon Hi Bulate Rehna
Kabhi Alwida Na Kehna.....................
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