Why now?

RBI must force banks to clean up their balancesheet now, not seek postponement

........We believe that shortsightedness on part of some bankers may have led to a situation where they are averse to lower lending rates despite comfortable liquidity in the system. In that case, RBI must ask these banks how far did they lower rates when CRR was reduced on the last two occasions. Back of the envelope calculations suggest that not even 50 per cent of the banks lowered lending rates significantly — a 10 basis point cut in select categories is no reduction. As for deferment of tough provisioning norms, RBI would do well to give the royal ignore to such a demand. ........

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Campus Recruitment by PS Banks Now Unconstitutional

..............Bank management of almost all public sector banks has resorted to campus hiring, not only in scale I but in scale II and scale III too. During last ten years top ranked officers of almost all banks have functioned in an arbitrary manner, recruited persons of their choice, giving favours to kith and kins of high profile persons and denying the talented unemployed youth. Recruitment of persons for some personal gain or to give favour to sons and daughters of known dignitaries has damaged work culture in banks and adversely affected the asset quality of almost all banks................

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RBI to give nod for new bank licenses in Q1CY14: Sources

...........The central bank is expecting about 30 applications for bank licenses. There has been a lot of speculation as to how many licenses the RBI will issue. From discussions between RBI and the Finance Ministry, if a reasonable number of applications come, then the RBI could give the in-principle proposal by the first quarter of CY2014........

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RBI gives 17 licences for White ATMs, Tatas to open soon

The Reserve Bank of India (RBI) has identified 17 non-bank entities out of 19 which applied for setting up White Label ATMs. Two of them including a Tata group company are expected to be operational in next few months. "We had already issued five licences and recently we have given seven more," Vijay Chugh - Chief General Manager (Department of Payment & Settlement Systems), RBI; told reporters speaking on the sidelines of a conference here in Mumbai...........

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Desi card RuPay gets global access

.....According to A P Hota, MD & CEO of NPCI, issuance of RuPay International cards would begin from July 2013 with two banks. NPCI started its services providing cheaper access to third-party ATMs by setting up a network with very low transaction charges with strong support from the Reserve Bank of India. The next stage was to issue RuPay debit cards which would be accepted at merchant establishments across the country. The payments company has already enrolled around 85,000 point of sales terminals where Rupay cards can be accepted.......

Read - TOI

Foreign tourists can use credit cards to get rupees

.....The Reserve Bank of India has decided to let authorised money changers (AMCs) to sell Indian rupees to foreign tourists / visitors against international credit/debit cards. This follows an RBI review of the memorandum of instructions governing money changing activities.....

Read - The Hindu

SOIL appoints Dr. Subhajyoti Ray as Dean

.....Dr. Subhajyoti Ray completed his master's degree from the Indian Statistical Institute and went on to join Reserve Bank of India.  He has been associated with RBI, managing data analysis, data warehousing and research. In 2009, He entered the doctoral program at Indian Institute of Management (IIM), Ahmedabad, focusing his studies on electronic governance.......

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Cosmos Bank: Goyal and Kale elected as Chairman and Vice-chairman

Krishnakumar Goyal and Milind Kale were unanimously elected as Chairman and Vice Chairman of Cosmos Bank respectively, in the Board Meeting held on 2nd April 2013. The tenure of the newly appointed Chairman and Vice Chairman will be upto 31st December 2014..........

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My health records? Sure, put it on FB and the cloud

.........As technology providers like Cisco see it, basic healthcare could be delivered via kiosks-like ATMs. Practically speaking, it is doable. After all, the banking and financial services sector in this country has seen tremendous growth because of such innovation. But the catch is there is no single body like, say, the RBI, Sebi, or Irda, which transformed financial services, in healthcare to bring sweeping changes.........

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Nabard to transform 700 primary co-op societies into multiservice centres

.....The multiservice centre concept involves PACS taking up farm-related businesses like selling fertilisers to supplement their interest income and become financially viable in the process. KR Nair, chief general manager, Nabard -AP regional office, said they had already converted 140 PACs into MSCs in the state.......

Read | Business Standard

For every Rs 10 lent by banks, more than a rupee debt recast

For every Rs 10 lent by the banks in 2012-13, more than a rupee of debt was recast. Between April 2012 and March 2013, loans worth a staggering Rs 76,479 crore were recast by the corporate debt restructuring (CDR) cell, a banker close to the development said. According to the fortnightly data published by Reserve Bank of India (RBI), banks have lent Rs 6,35, 866 crore worth of incremental non-food credit, during the year, up to March 22........

Read - IE

Govt shouldn’t dictate delivery of mandate, says Subbarao

When it comes to speaking his mind on the independence of central banks, Reserve Bank of India Governor D Subbarao doesn't mince his words. He is of the view that the monetary policy should not come under fiscal policy dominance and governments "should not dictate" central banks how the mandate set by them should be delivered.........

Read - IE

Need to prevent round-tripping, says D Subbarao

The Reserve Bank of India Governor D Subbarao has said that there is a need to prevent round-tripping to prevent abuse of treaties, raising the pitch for tighter control on inflow of funds from dubious sources. Round-tripping is a form of barter that involves a company selling unused assets to another and agreeing to buy back the same or similar assets at about the same price.......... 

Read - ET

The economy needs shock therapy - S.S.Tarapore

......This will require the RBI to sharply raise policy interest rates and reserve requirements and reduce RBI accommodation. Interest rates on deposits, credit and government securities will rise. Second, to prevent forex reserves from being dissipated, the RBI should buy when there are capital inflows, to prevent an appreciation of the rupee, and refrain from selling when there are outflows. The upshot is that the rupee would depreciate, as it indeed should. At the margin, it is preferable to have an undervalued rupee rather than an overvalued rupee. The RBI would come under severe public criticism but it has the resilience to face up to such pressures, provided the Ministry of Finance and the Planning Commission stop their sabre-rattling, foisting inappropriate, soft policies on the RBI.......

Read - HBL

Price stability necessary for long-term economic growth: RBI chief Subbarao

........."I would say the price stability is a necessary condition for growth. It would be futile to believe that you can have growth in a time of rapid inflation."...........

Read - FE

Banks are governed by a code to dealwith customers

Last week, Reserve Bank of India (RBI) Deputy Governor K.C. Chakravarty said that the central bank is mulling to include financial inclusion in the Code of Bank’s Commitments to Customers. This voluntary code is governed by the Banking Codes and Standards Board of India, an autonomous and independent banking watchdog........

Read - Mint

Cobrapost impact: ICICI Bank, HDFC Bank, Axis Bank fall on penalty woes

NEW DELHI: Private sector banks such as ICICI Bank, HDFC Bank and Axis Bank plunged 1-2 per cent in opening trade on Thursday, after reports said that while the banks may not have compromised KYC norms, they could still face a regulatory penalty for lax internal governance standards........

Read - TOI

RBI trespasser wrote to mom he would return millionaire

Padma Shekhar Nair (28), who was arrested Monday for allegedly trying to force his way into Reserve Bank of India (RBI) with an air gun, had sent a registered letter to his mother two days before the incident saying he would return home a millionaire. Padma stays with mother and sister in Cochin, where he used to work as an accountant at a lottery centre. His father started staying separately around 15 years ago........

Read - IE

My View on "RBI breach: 1k pellets found in Keralite’s room"

Kudos to our dedicated security personnel for preventing the intruder. The top management support and vision to build layers of security starting from the iron grilled barrier to porta cabin, separate entry for staff and visitors and so on has helped to deter, detect and delay any perpetrator from venturing into RBI. 

- Maj. P.E. Thomas Panicker

Bankers demand CRR cut in policy review from RBI

.....“We have been seeking for some relief in CRR” S S Mundra, chairman and managing director, Bank of Baroda told reporters after pre policy meeting with RBI. Some of the bankers have also made a case for further reduction in the repo rate, which is 7.5% now. RBI had reduced the repo rate in two successive policies—in January and March—by 25 bps each. Apart from Mundra, chief executives of State Bank of India, Bank of India, ICICI Bank, IndusInd Bank were also present. RBI Governor D Subbarao, along with four deputy governors and other central bankers were also there.......

Read | Business Standard

‘Mindless chase for top line led to NPAs’

When it comes to speaking his mind, State Bank of India chairman Pratip Chaudhuri is probably the most outspoken among bankers. Whether it is attacking cash reserve requirements or stating the problem with businesses, he has never minced words. In the two years since he took charge, Chaudhuri has empowered senior executives to take the bank forward during challenging times.........

Read - TOI 

RBI to release discussion paper to clear ambiguity over FDI, FI

..........“RBI will circulate the paper within the next 15-20 days,” he said.  Other members of the committee include DIPP Secretary, Chief Economic Advisor in DEA, RBI Deputy Governor H R Khan and SEBI Member S Raman. Mayaram had earlier said that there is a lot of confusion in the mind of foreign investors because of distinction between FDI and FII..........

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Beware, skimmers could clean out your bank balance

.....This note of caution comes from none other than the office of the Banking Ombudsman. “The number of such cases brought to the notice of the Ombudsman was just [maybe] one case a week or even a month about three or four years ago,” Ombudsman M. Palanisamy, told The Hindu. “Cards are being skimmed here and used on foreign soil. Bank customers have to be extremely careful while using the cards as well as net banking facility.”........

Read - The Hindu

Traders face shortage of loose change

.....However, officials of RBI say it is a ‘perceived shortage’ as people expect merchants to provide exact change every time. On an average, coins worth Rs. 1 lakh are supplied through the four coin-vending machines at the RBI office on Rajaji Salai. “We allow a person to avail coins worth Rs. 500 only in a single day to ensure that everyone gets enough coins,” an official says.........

Read - The Hindu

Making money concepts fun for children

.....I think it is a very good idea. I know youngsters who think money comes out of an ATM (automated teller machine). Children need to be introduced to and sensitized about banking transactions, interest rates and other such things,”.......

Read - Mint

Three with fake notes held in Tripura

Police seized a huge stock of fake Indian currency from three people in south Tripura on Thursday. They suspected the detainees to be part of a cross-border racket engaged in circulation of fake currency.......

Read - The Hindu

Banks ‘distrust’ Aadhar for cash transfer scheme rollout

NEW DELHI: In what could hobble the government's plans to give Aadhar a key role in banking and a central pin of the direct cash transfer scheme, several state-run banks have refused to bear any liability for transactions done with customers that were authenticated through the unique identity (UID) mechanism. Banks and the Reserve Bank of India (RBI) had been convinced by the finance ministry to use Aadhar to fulfill the know-your-customer (KYC) norms - authentication of identity and address while opening bank accounts. This had been necessitated by the need to not only give Aadhar a fillip, but also to ensure enrollment of millions of poor into the banking system before the cash transfer scheme is fully rolled out......... 

Read - TOI

First bank finds its way to Kadamakudy

The Union Bank of India (UBI) will soon open a branch in Kadamakudy panchayat, the only panchayat in Ernakulam district without a bank branch. The UBI is the district lead bank under the Lead Bank Scheme of the Reserve Bank of India (RBI). The branch will be opened in a few months, a top official of the bank has said.......

Read - The Hindu

Who is to be blamed for money not coming into financial markets?

......To make their money come to the financial markets, the government and regulators will have to do more. Like the rolling out of new KYC norms and incentivising mutual fund distributors for sales beyond top 15 cities or RBI's rural focus. That too has a limitation........

Read - IE

Where’s that elusive bottom?

......... Far from indicating a recovery, the credit data suggests that the economy may not have reached its much-coveted bottom yet.

Read - Mint

Poll panel is watching every high-value bank withdrawal

....A senior official of a nationalised bank said banks usually inform the Reserve Bank of India about any transaction above Rs. 10 lakh. The official said banks would comply with the Election Commission’s new directive........

Read - The Hindu

Rotten agents spoil the Kashmir apple barrel

.....The survey on “Marketing System and Price Spread of Apple in Kashmir”, according to sources, will be released here on April 17 by Chairman of NABARD Dr. Prakash Bakshi before its passage to the State Level Bankers Committee. The survey may compel Reserve Bank of India (RBI) to reframe its guidelines and directives to the financial institutions in Jammu and Kashmir as it has shown that the banks have been continuously “encouraging feudal system and usurious lending by commission agents” in violation of rules and regulations........

Read - The Hindu

Sahara assets: RBI asks banks to comply with Sebi order

.....Since banks come under RBI's purview, a communication from the central bank has helped implement the Sebi decision. ......

Read | Business Standard

High CAD is bad for you

.....But if one goes by experts, a high CAD is not just bad for global travel or education; it might even discourage the Reserve Bank of India (RBI) from cutting the repo rate aggressively. "The central bank cannot ease policy rates till CAD comes in control. Hence, existing borrowers will have to continue paying high rates and new borrowers may want to wait. Today, inflation is not the only criteria for lowering rates,".....

Read | Business Standard

Should India see IMF doctor before it falls sick?

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

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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...........

Read - FPJ

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,........

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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 Hindu

NBFCs 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..........

Read | Business Standard

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.”..........

Read - FE

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

Read - TOI

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.........

Read - DNA

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...........

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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.......

Read - The Hindu

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.......

Read - Business Today

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.........

Read - ET

'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:..........

Read - DNA

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.........

Read - HBL

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. .......

Read - The Telegraph

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

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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.

Read - ET

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

Read - ET

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).........

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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..........

Read - Mint

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. ..........

Read - TOI

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

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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.......

Read | Business Standard

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........

Read | Business Standard

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.‎..........

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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.......

Read - Mint

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.......

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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.........

Read - Mint

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.......

Read - TOI

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.......

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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.......

Read - HBL

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...........

Read - ET

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

Read - Frontline

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.......

Read and also watch the video - TOI

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. ...........

Read - TOI

Lingering memories of the grand farewell..........

Click - Good Samaritan with head and heart

Digital memories of launching the website................

Click to read.... Reserve Bank Officers' Co-op. Credit Society Ltd goes digital

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

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

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.........

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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:-..........

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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.........

Read | Business Standard

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 .......

Read | Business Standard

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."..........

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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 ...........

Read - FE

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..........

Read - Mint

Timeline: Changes to SLR for banks since 1949

Following is a timeline on changes in the statutory liquidity ratio (SLR) since 1949...........

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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......

Read - TOI

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:.....

Read - Moneylife

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...........

Read - ET

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.

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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.......

Read - The Hindu