....."Police generally raids the office of a particular NBFC and verifies its documents only after getting complaints against it. Now we have decided to verify their documents such as licence from the Reserve Bank of India (RBI) before the private finance company starts its business in a particular area," ......
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.
Saturday, May 11, 2013
The right university-industry nexus
If industrial houses can be allowed to run banks — the Reserve Bank of India is currently working towards issuing licences – they could a fortiori be permitted to run colleges as well.............
Piramal goes shopping
.....In February, the Reserve Bank of India (RBI) had issued final guidelines for issuing fresh bank licences. The central bank is now expected to issue clarifications with regard to its guidelines over the next few days and formally issue licences either later this year or next year. Shriram Transport is considered to be a serious contender for a licence.........
Companies may get in-principle nod to set up banks
........A company wishing to foray into the banking sector would be required to restructure operations in such a manner that the banking arm is completely alienated from other businesses, the RBI guidelines had stated. However, since companies are apprehensive about the whole process, there is pressure on the RBI to give in-principle approval to companies before they go in for the restructuring exercise..........
India Post needs to reorganize its services first; banking can happen later!
......Under the circumstances, India Post needs to overhaul its services, revise postal rates upwards to meet the growing cost; introduce adequate rewards and incentives to its large employee force and become as efficient as a private courier service, if not better them in some ways. When it reaches such a stage, private banks will then approach the government to seek permission to open branches attached to India Post offices, as such a move may serve the ultimate purpose of making banking easy to the rural folks!............
India reduced to a stumbling elephant
.....Indian businesses even seem to be more comfortable investing abroad than at home. According to data from the Reserve Bank of India, Indian companies invested about $1.9 billion in overseas markets in March, up from $1.7 billion in February. In January, the investment was even higher, at $3.3 billion. This compares highly favorably with investments by Indian companies in India.........
Polaris Wins Three Major Asian Banker Technology Implementation Awards 2013
......The implementation of Polaris’ Intellect® Core Banking Solution (CBS), specifically designed for Central Banks, has already demonstrated significant business impacts for RBI; the end of year balance sheet is now generated in a few minutes whereas the process took 8-10 days in the legacy system; ...........
System glitch deducts 40% amount as TDS from SBI depositors’ account!
...........State Bank of India (SBI), the country’s largest lender, shocked a number of its customers by lopping off income tax at the rate of 40% as tax deducted at source (TDS) for FY2012-13. When several account holders, of its special term deposit scheme, (these are deposits created automatically by system based on the threshold amount set by depositors in their savings bank-SB plus accounts-multi option deposit or MOD) complained, the lender restored the amount. However, there are still 6,118 account holders who, according to SBI, will have to bear “notional loss of interest”...........
Friday, May 10, 2013
D. Subbarao | The inflation warrior
Resolution authority on cards to deal with financial distress: RBI
"...Within India we are coming up with a resolution authority for what can be done when institutions come under stress," RBI Governor D Subbarao said in response to a query as to whether it was right to impose 'sin tax' to bailout distressed investors of Saradha Group in West Bengal. Resolution authority provides an official framework to deal with the problems in the aftermath of the failure of large financial institutions............
My View on "Versatile person no more................"
‘I knew Vaidyalingam from before his posting in Kolkatta and had associated with
him in Chennai and Mumbai. He was always a positive, cheerful and funloving
person no matter what stress he was passing through. He believed in enjoying the
good things of life and also sharing his joys with all his family members and
friends. I know that because of this inclusive nature his passing on will leave
a big void in the lives of all his close associates of family and friends. While
I pray that God give them strength to bear with this loss, I imagine that
Vaidyalingam is still cheerful and smiling down on all and enjoying the novelty
of wherever he is at this point of time and wishing to share his joys with his
friends and relatives.’
- Kamala Rajan, Chief General Manager, UBD, CO, Mumbai
AIRBEA demands full-fledged RBI branch for Sgr
.........Association General Secretary, Samir Ghosh today told the media here that a full-fledged RBI branch at Srinagar will “ensure the development of the sate in all respects and will also increase employment opportunity.” Gosh said that “SBI being a commercial bank should not be allowed to perform developmental functions in the state as it is the job of the RBI.”.................
Governor Highlights Crucial Role Of RBI
....The Governor, RBI, in his highly informative talk, dwelt on varied issues, including the mandate of the Reserve Bank of India and its role in the economic development of the country. This was followed by a lively Question-Answer session during which Dr Subbarao replied to the queries of the students on several issues of financial management.........
Read - Kashmir Life
‘JK Bank making difference in lives of people’
“J&K Bank is a very unique institution with an impressive track record of innovation and enterprise across the country.” “The Bank is making difference in the lives of the people of J&K and India. I am delighted to be part of the Bank’s Platinum Jubilee Celebrations.”
Dr D Subbarao, Governor Reserve Bank of India said this in the opening remarks of his lecture ‘RBI-Making Difference in Everyday Life’, during his interface with students, academics and bankers at JK Bank’s Corporate Headquarters, here. ........
Read - Greater Kashmir
Dr D Subbarao, Governor Reserve Bank of India said this in the opening remarks of his lecture ‘RBI-Making Difference in Everyday Life’, during his interface with students, academics and bankers at JK Bank’s Corporate Headquarters, here. ........
Read - Greater Kashmir
Imported inflation
.....If the central banks decide not to intervene because of the imported nature of inflation, inflationary expectations will drive prices to much higher levels at which the central banks may lose control of the situation.
Banks in JK have failed to meet CDR targets: RBI Governor
.... “Banks in Jammu and Kashmir have not met the set targets for CDR, but they have conveyed that there are not viable projects for which banks can provide the funds.” He informed the gathering that central bank held a special committee meeting of all the banks working in Jammu and Kashmir. The governor said the meeting had decided that the credit deposit ratio in the state will be raised from 36.5 percent to 40 percent during this fiscal to make sufficient credit available to the people in J&K.......
RBI says no plan to retire FX fwd contracts to ease liquidity
......"There are uncertainties about liquidity in the system. We will try to manage that actively," Subbarao told reporters after the Reserve Bank of India's board meeting in Srinagar. "We do not use forex intervention as a measure of managing liquidity," he then added.............
RBI will not oppose, if govt allows Islamic Banking
........The RBI Governor maintained that they have received several proposals from various people including some member Parliaments that Islamic Banking should be started in the country and RBI is studying these proposals. “Let me clear to you. It is not RBI, which is standing in the way of starting of Islamic Banking in the country. It is the government which has to determine, whether to allow the Islamic Banking or not,” he said. Dr D Subbarao also said if the government allows the Islamic Banking, then they have to enact a new law. “Various people including some MPs gave us proposals. We are studying them. However, we are not any authority to take any decision. It is the government which has to take the decision,” he said......
RBI to actively manage liquidity: Subbarao
........Subbarao said RBI would actively manage liquidity to ensure the deficit stays within the one per cent corridor of net demand and time liabilities (NDTL). “On liquidity, the standard answer which we have given several times is that we will manage liquidity to ensure it is within plus/minus one per cent NDTL, subject to, of course, the frictional constraint that we face,” he said.....
Jammu and Kashmir to enact SARFAESI legislation
SRINAGAR: The Jammu and Kashmir government will enact the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities (SARFAESI) Act in the state very shortly as part of a two-pronged strategy to increase the credit-deposit ratio of the banks operating in the state...........
Higher provisioning hits Indian Bank net
........Addressing presspersons here on Thursday, T. M. Bhasin, Chairman and Managing Director of the bank attributed the lower profit to higher provisioning towards pension, gratuity and wage revision. In accordance with the guidelines of the Reserve Bank of India on second option pension and enhancement in gratuity limits pertaining to existing employees, the bank had allocated Rs. 162.65 crore towards pension, and Rs. 33.20 crore towards gratuity..........
Of Subbarao, inflation, gold and Saradha scam
..........“The reason it (the Ponzi schemes) is happening because ordinary people… the low income people are not sufficiently aware of where they can put their money. They don’t have enough avenues to put their money. They can’t get into the banks like we all do. They face both formal and informal barriers…So they fall prey to these fraudulent schemes,”..........
This way for chit fund
......The conductors of many New Town-bound buses are now heard shouting “chit fund” bus stop, the better to attract commuters who want to visit the commission’s office to lodge their applications.
Primer: How to identify fake Rs 500 currency notes
....Fake notes have no exchange value. These means that if you go to the bank and deposit any forged notes, they would sign it and send it for further verification without giving you any exchange money. Fake notes is a growing menace in the country. So......
Man Held While Depositing Fake Currency Worth Rs 30,000 In Bank
............With RBI Board of Director in town for the last two days, police on Thursday afternoon arrested a person allegedly while depositing fake currency worth Rs 30,000 in Jammu and Kashmir Bank branch Pinjura in Shopian district. Ghulam Mohammad Sheikh son of Mohammad Maqbool Sheikh a resident of Mohanpora Trenz, reached the branch to deposit Rs 45,000 in which Rs 30,000 were found fake, bank sources told Kashmir Life adding all the fake currency notes were of 1000 denomination.............
Maharashtra has several unregistered chit funds
hile the Saradha scam has highlighted the risk of investing in fly-by-night Ponzi schemes, a large number of informal and unregistered chit funds operate in Maharashtra. However officials say those cheated may not come forward to complain as these are informal, closed and community groups which may also involve black money. Maharashtra has around 154 registered chit fund companies and officials estimate that the number of the unregistered groups is higher............
Cobrapost-III releases more videos
........“It proves without doubt that this corruption is endemic, and spread through the Indian banking and insurance system,” Cobrapost said. The banks named in this third series of sting operations are Bank of India, Central Bank of India, Bank of Maharashtra, Allahabad Bank and Bank of Baroda (all government-owned), and IndusInd Bank, ING Vysya Bank, HDFC Bank, ICICI Bank and Axis Bank from among private lenders. The last three were also named in March, in the first expose...........
Cobrapost expose: RBI action soon; banks start cracking whip
......"We have done investigations, we have prepared an internal report. There are processes to be followed to take investigations to its logical closure... "The first is action against individual institutions who are involved in practises which are not consistent with the banking regulation and prudential banking........
The sting in the tale
.....The Khandelwal committee had given some sensible suggestions on this aspect. Its revealing that only a handful public sector banks have constituted training advisory committees to provide strategic direction to training, and just one bank has in place management audit to review the efficacy of its training system. Even though almost all banks have set up large training infrastructure, the system is still not adequate to meet the current-day requirements......
No criminality in Cobrapost findings: SBI
.....Bank officials' advices of splitting deposits to evade taxes, as exposed in a sting operation by an online news portal, are "undesirable loose talks" but there is no apparent criminality, SBI Chairman Pratip Chaudhuri said today. "Prima facie, things that have come to our notice it looks (that) there is no criminality in the sense that somebody has suggested splitting up your deposits, say Rs 50 lakh into Rs 50,000 or 1 lakh. So far, it looks like loose talks, but even that loose talk is undesirable," he told reporters here when he was asked to comment on allegations of money laundering by online portal Cobrapost......
'All-women banks will help us cover unbanked areas'
.......As far as women in rural and semi-urban India are concerned, they would be at greater ease to come up to officials if they knew the bank is an all-women branch. The patriarchal society would have lesser objections to women opening bank accounts or seeking loans from such banks. These banks would surely help us reach the unbanked areas...........
India "Importing As Much Gold as Possible" Ahead of Proposed Restrictions
...... the industry is trying to get ahead of proposals made last week by the Reserve Bank of India to only allow banks to import gold on a consignment basis – where the gold is shipped but the supplier retains ownership – where that gold was to meet the needs of gold jewelry exporters. India's gold imports, which totaled 860 tonnes in 2012, have been blamed for exacerbating the country's trade deficit. Gold and silver was India's second biggest import item last year behind oil......
Finance ministry opposes India Post’s banking licence plan
........Some of the country’s large public sector banks have also been lobbying against the proposal, concerned that India Post, with its vast branch network, could pose a threat to their business, said the official, who’s directly involved with the proposal. “The larger idea of setting up a bank is to further the cause of financial inclusion. Entry of India Post into banking can significantly help address this situation,” the official said. However, “They (finance ministry officials) are asking too many questions. Why (do) you need a bank? What is your expertise to run a bank?” the official said.......
Thrust on rural lending
......"Our state has not yet been successful in giving land to RBI and NABARD to come up with their offices," said one of the RBI officials responding to which development commissioner A K Sarkar said the proposal is being considered seriously...........
Credit-deposit ratio crosses 50% in UP
.....The state has been urging the Reserve Bank of India (RBI) and commercial banks to take proactive steps towards improving the ratio in UP. India’s aggregate ratio is over 75 per cent, while some states such as Tamil Nadu have a ratio of above 100 per cent. The RBI has mandated a minimum ratio of 60 per cent for all states........
Innovative ATMs Help India’s Banks Expand Their Reach
..Vortex’s Gramateller ATM, for instance, can run on solar power, has a built-in uninterrupted power supply (UPS), doesn’t need air-conditioning, prints receipts in regional languages, is designed to work in extreme temperatures and can operate through biometric authentication. Its Ecoteller model is a low-cost, low-power-consuming machine.........
Capex cycle shows revival signs
.....According to a few economists, the growth might not be broad-based. However, even if ones goes by the most conservative baseline projection of Gross Domestic Product (GDP) growth, of 5.7 per cent by the Reserve Bank of India (RBI) for the current financial year, some revival in the capex cycle could definitely be expected. “The level of optimism has definitely gone up, compared to what it was till the third quarter. Revival of the capex cycle is definitely on the cards,” said Rupa Rege Nitsure, chief economist, Bank of Baroda..........
Tata Group's Indian Hotels Company seeks RBI nod to hive off international operations
....IHCL, the largest Indian hotel company, operates over 100 hotels under brands such as Taj and Vivanta across the world. This is the company's second attempt at getting RBI approval for the proposal. The bank had shot down an earlier plan as the proposed structure had many levels of offshore subsidiaries which the central bank was not comfortable with. Structures of this sort are not permitted under new provisions of the Companies Act. The new law does not allow creation of subsidiaries two levels below the holding company. The sources quoted earlier said the new plan has resolved these issues. .......
Thursday, May 9, 2013
RBI Governor Meets J&K Governor
........During their meeting, the Governor discussed with Dr Subbarao various important issues relating to the rapid socio-economic development of the State, functioning of the banking sector in J&K and ways to enhance financial inclusion, particularly in the rural areas..........
RBI Governor In Kashmir
The Governor of Reserve Bank of India, Dr D Subbarao is going to chair a meeting of central board of directors of RBI in Srinagar on May 9, 2013. The meeting is going to be held in Kashmir after a gap of eight years, last time RBI held a meeting in Srinagar in May 2005...............
Read.......
Read.......
RBI listens to 'silent voices' hurt by inflation, says Subbarao
Srinagar: Dismissing the criticism that RBI's steps to check inflation have hurt growth, Reserve Bank Governor D Subbarao on Wednesday said the monetary authority has the responsibility to listen to "silent voices" of millions of people impacted by rising prices..........
Former Delhi state football player Swaraj Kumar Jolly passes away
........He got associated with various clubs here and promoted players also. He was the sports coordinator of Reserve Bank of India for many years and was the man behind the recruitment of numerous football players for the first time in Delhi branch of Reserve Bank of India.............
Versatile person no more................
Shri K.V. Vaidyalingam, retired Assistant General Manager from RPCD-CO expired suddenly on May 7, 2013 at around 2.30 am in Bangalore, where he had settled after his retirement. Shri Vaidyalingam joined the Bank in 1973 and had worked in Calcutta and Chennai Office. In Mumbai, he was attached to DEIO and RPCD-CO. He retired in September 2010 from RPCD-CO. He was 62. Shri Vaidyalingam is survived by his wife, a son and a daughter who are married and settled in USA. Shri Vaidyalingam was a versatile person and was extremely popular amongst his friends.We have lost a great and noble soul in him. May God give his wife and other family members the strength to withstand the unbearable loss. May his soul rest in peace.
- Kumaresan Rajasekharan, EXRBITES Group (via e-mail)
I am deeply shocked to know of the sad demise of Mr.Vaidyalingam. He
worked with me in RPCD., C.O. when I was CGM-in-C of the Department. He
was a conscientious and friendly officer. He was active even on Face
Book. May his soul rest in eternal peace.
- C.S.Murthy, EXRBITES Group (via e-mail)
- C.S.Murthy, EXRBITES Group (via e-mail)
Shri
K.V.Vaidyalingam was promoted on the same day with me and we were
together in Dover lane Quarters, Kolkata for about 7 years and
subsequently we were together at Chennai Office for a few years before
he was transferred to Mumbai. He was a bold and jovial person. It was
indeed very shocking to hear the news about his death. I pray god to
give courage to his family members to bear his loss.
- G.Mohan, EXRBITES Group (via e-mail)
- G.Mohan, EXRBITES Group (via e-mail)
We, all
the members of Exrbites, pray to God to grant peace to the soul of Sh K V
Vaidyalingam and give courage to the family to bear this loss. He
joined our Group on 1st June, 2011 (M-129) and today we have lost one of
our versatile member. He was only 62. I remember in between for some
time after his retirement he had shifted to a place "Molur Meadows", a
colony specially constructed for senior citizens, near coimbatore. He
had sent even photos of his apartment to the Group. We will miss him for
ever.
- Madan Gauria, EXRBITES Group (via e-mail)
- Madan Gauria, EXRBITES Group (via e-mail)
Perfect toy bunker........................
A poignant poem written by Gopi Krishnan Kottoor along with a famous
photograph (see attached) which had shaken the entire world a few days ago. The
poem was published in The Hindu on May 5, 2013 (Sunday).
Who is this Kottoor ?? Gopi
Krishnan Kottoor is none other than Shri R G Nair, DGM (OBO),
Reserve Bank of India, Thiruvananthapuram. Many people in RBI do not know that Shri R
G Nair, who writes under the pen name of Gopi Kottoor, is an
award-winning internationally acclaimed poet and one of the foremost
contemporary Indian poets writing in English. His immortal poem “Father,
Wake Us in Passing” is a path-breaking effort in Indian English literature.
|
Dr Tapan
Kumar Pradhan
Assistant General
Manager (ABC Cell)
Reserve Bank of
India
Thiruvananthpuram
90% habitation in India without banking: RBI Governor
.........“There are 6 lakh habitations in country and out of which only 10 per cent have been included with banking system. 90 per cent of the habitations have no bank branches,” he said.”RBI is trying to go for financial inclusion. We not only want people to have bank accounts but also want them to know how to use it for their benefit.”...........
Islamic banking impossible in Indian regulatory set-up: D Subbarao
RBI Governor D Subbarao on Wednesday said implementing Islamic banking model in India would be impossible because it is inconsistent with the banking regulatory set-up where interest is charged and given. However, he said he has suggested the government that the decision being political, it must debate and............
Omar asks banks to increase CDR
......The Chief Minister stressed the need for the banks in fulfilling the target of Kissan Credit Cards and increasing advances in agriculture and allied sectors falling under priority zone. Omar said the State Government would shortly come up with SARFAESI Act. Governor, RBI, Dr. Subbarao who conducted the meeting fixed a target of 40 per cent for CD ratio across the State for the Banks during the current financial. ...........
Monetary policy transmission to markets assymetrical: RBI
........"The transmission of monetary policy works well in the call money rate, as it is impacted immediately with robustness. As regards other financial market variables, except for the stock market, the study could find evidence of transmission from the monetary policy shocks,"........
RBI to launch plastic currency notes with longer shelf-life
........ "We are trying to introduce plastic currency...We hope to introduce it on trial basis and if that succeeds it will be replicated in the entire country,"..........
Increase loan payback period to 20 yrs: JKHC urges RBI
.....“J&K Banks and other banks have at many occasions used force to recover loans from defaulters which RBI Governor should take serious note of. The businessman is never willful defaulters but occasional turbulence in valley makes him a defaulter. The banks have raided houses of the businessmen in the past which is regretful. It has damaged the reputation of the businessman,” .......
IMG on curbing fraudulent investment schemes to meet on May 16
.....The high level panel, headed by Department of Financial Services' Additional Secretary, will have representatives from Corporate Affairs Ministry, RBI and SEBI. "The first meeting of the Inter-Ministerial Group is scheduled for May 16, 2013," the Finance Ministry said. The IMG has been set up to ensure "proper enforcement of regulatory framework for multi-level marketing companies, non-banking finance companies and companies running collective investment schemes"........
Is extra tax to compensate Saradha victims fair? asks RBI
.........“If you go back to the West Bengal Saradha scheme, the Chief Minister said ‘I will levy additional taxes on cigarettes and some other things to compensate the people who have lost money’ ... Is it fair?,” Subbarao said while delivering a lecture to economics students here to mark the Platinum Jubilee celebrations of Jammu & Kashmir Bank................
BRICS Development Bank - Prospects and challenges : M.G.Warrier
.......BRICS can also count on the experience of India’s central bank (Reserve Bank of India) which has acquired professional expertise and experience in handling issues like financial inclusion, priority sector lending, institution-building for meeting diverse needs of financial sector, forex reserves management and public debt management, besides the core central banking functions which the Reserve Bank of India has managed well during the last 78 years of its existence...........
Responsibility to check money laundering rests with govt:RBI
Amid allegations of money laundering against banks and insurance companies by an online portal, Reserve Bank Governor D Subbarao today said it was the responsibility of the government and tax authorities to check such activities. "RBI is not directly involved... Even banks are not directly responsible. They are not expected to inquire about the source of income. It is for government and tax authorities to check money laundering," he said while addressing students and academicians as part of the Platinum Jubilee celebrations of Jammu & Kashmir Bank..............
RBI stays away from Saradha row
......Calling the Saradha Group an "investment company", the RBI's affidavit states: "This (Saradha) is not a chit fund. RBI has no authority to regulate investment firms. RBI has served notices to 57 chit fund firms in Bengal. All of them have closed down." The court will take up the matter for hearing on May 14...........
Read - TOI
RBI’s report on services for exporters evokes mixed response
Suggestions in the Reserve Bank of India -appointed G. Padmanabhan Committee’s report for improving financial flow to the exporters, extension of financial support from alternative sources, rationalisation of transaction costs and risk mitigation, among others, are seen with optimism by the knitwear exporters in Tirupur cluster for improvement of business............
Gold coins to flood market
......RBI move will have people offloading gold coins with jewellers and by this they will not have to buy gold from the banks. Most gold coins are expected to come into the open market. By this the import bill of gold is expected to come down. Yet another advantage is that the gold coins coming to the market will be converted into jewellery and provide jobs to 35 lakh goldsmiths.........
Read......
Watching the financial watchdogs
.........Next come the three Financial Regulators - RBI for the banking sector, SEBI for the capital markets both are Mumbai-based and the Hyderabad-based IRDA for the insurance sector. Each of them have their own file pushing babus duplicating investigations by stepping on each other’s toes, resulting in harming genuine consumer interests. Each of them jealously guards their turfs. Typically, it happened during investigations into the Satyam investigation where the local police station despite not knowing the ABC of the fraud wanted a piece of the action!...........
Levy cheque return fee only if customers at fault: RBI to banks
"...Recently, instances have been brought to our notice where banks are levying cheque return charges even in cases where customers have not been at fault in the return and delaying the re-presentation of the cheques which had been returned by the paying banks under technical reasons," RBI said in a notification. It said that both of the issues were resulting into "unsatisfactory customer service" and it was considered necessary to streamline the procedure followed by all banks in this regard....................
Inflation-fighting RBI has no target on CPI
Given the importance it attaches to retail inflation, one would expect the Reserve Bank of India (RBI) to give some guidance on the consumer price index (CPI). But the central bank has neither set a target for the index nor indicated a level it would be comfortable with. “We have no CPI target,” RBI governor D Subbarao said in the post-policy interaction with analysts and researchers earlier this week. The central bank looks at all three CPI indices – for industrial workers, agricultural labourers and rural labourers – as well as the composite CPI, he said...............
Can Punters Outwit RBI This Time?
Hundred
years ago punters in Bombay made and lost fortunes by betting on cotton
futures traded on exchanges in Liverpool, New York and Alexandria.
Information flowed with a lag, orders were posted through telegrams and
those with access to ticker tapes tracked the price movements that
swung, as they do even today, with the hint of a war or crop failure. A
decade ago, when the Reserve Bank of India opened the doors to overseas
bourses, allowing individuals to freely invest money across the border,
it was like the return of a lost era........
Read - ET
Read - ET
Securitisation to turn costlier for banks with new distribution tax
.......A senior official with a leading NBFC said the securitisation route may turn more costly for them as banks would try to pass on the burden. "The issuers and investors can avoid the additional burden through bilateral deals. But in case of direct buyout of loan portfolios, banks will have to bear the credit risk fully as RBI does not allow credit enhancement under bilateral arrangements," he said. RBI said it will issue the final guidelines on reset of credit enhancement in securitisation by end-June 2013......
Bank broking arm to be independent accounting unit: Irda panel
.........The report said that banks acting as brokers will not only enable the banks to utilize their entire network of branches but also increase the insurance penetration and pose an effective competition in rendering services to the policyholders. "Since the banks are regulated separately by the Reserve Bank of India (RBI), it shall be a measure to enhance the efficiency in the conduct of procurement of insurance business and also accountability to the policyholder as compared to the agency channel," it said...........
Maharashtra Govt move to enthuse fresh life into NDCCB struggling for existence
The Maharashtra Government, in an effort to enthuse fresh life into Nagpur District Central Cooperative Bank (NDCCB), has formed a Committee under the Chairmanship of Maharashtra Agriculture Minister Radhakrishna Vikhe Patil to sell-off the Bank’s newly built building in Mahal area of Nagpur and the minister has been the responsibility to deal with issue...........
Early exit from economic stress?
.........Will economic growth recover fairly soon as the finance ministry and PMEAC project? Or more slowly as forecast by the RBI? What will bring about the growth revival? Can the record high external imbalance (CAD) be halved within three years? What is the outlook for inflation? The search for answers must begin with a better understanding of what brought about the extraordinary deceleration of India's growth in the last two years.......
Disguising NPAs
Amid growing concerns about the deteriorating quality of bank loans, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Sarfaesi), was enacted to aid in debt recovery, especially from wilful defaulters. Since the 2006 Supreme Court judgment allowing banks to simultaneously initiate multiple proceedings against the defaulters, the use of Sarfaesi by banks has significantly increased........
PSU banks make defaulters' names public to recover dues
...............Until now, banks were only going after the small promoters. The newfound aggression is probably triggered by a recent statement of the finance minister that banks must act against rich promoters of poor companies. Whatever the trigger, it is clear that corporate bigwigs better watch out. If you default, be prepared for some tough times including public name calling.......
Wednesday, May 8, 2013
Ground reality
..........Most critics of central bank policy say that the RBI has given up promoting growth at the expense of inflation control, and what the country needs more of is growth. The truth is that growth depends on much more than just interest-rate cuts or accommodative monetary policy. So, what is the likely focus of monetary policy action in the coming months? ..........
My wish list for Dr. D Subbarao
.........On pattern of RBI Jammu office, the summer capital (Srinagar) of J&K too deserves an office to avoid any biases. RBI can think of setting a training institute over here which most of its officers would love to come here for their trainings.............
Need of centralised infra for bill payments: RBI panel
........In a report released on Tuesday, the committee chaired by executive director G Padmanabhan said IBPS would be the centralised infrastructure connecting the billers through the aggregators and the customers through the customer service points, for management of all bill payments in the country. The committee said there is a need for developing an electronic bill payment system based on a GIRO model for payment of dues of essential services, insurance premium, utility payments, taxes, etc.......
Is our banking system flawed?
......Although the sting operation has tended to sensationalize things, it could lead to a purge in the entire system. Indeed the Reserve Bank of India (RBI), which doesn’t like to talk too much about the probe that it set in motion after the allegations were first made, has initiated steps to streamline wealth management offerings by banks, apart from the sale of mutual fund and insurance products along with the incentives associated with these. One very critical step is the proposal to segregate marketing and transactional banking. The noise on the sting operations should also encourage the banking system to do some soul searching and change some of the old practices, beyond branch banking and the sale of financial products............
Indian Rural Banking Sector: Big Challenges and the Road Ahead
Speech delivered by Dr Deepali Pant Joshi, Executive Director, Reserve Bank of India at MITE Mangalore on May 04, 2013
......Reserve Bank has been furthering financial inclusion in a mission mode through a combination of strategies ranging from relaxation of regulatory guidelines, provision of new products and other supportive measures to achieve sustainable and scalable Financial Inclusion. A structured and planned approach was followed under financial inclusion wherein all banks were advised in January 2010 to prepare Board approved Financial Inclusion Plans (FIPs) congruent with their business strategies and comparative advantage for three year period extending up to 2013. The implementation of these plans was closely monitored by the Reserve Bank through quantitative & qualitative reporting formats and through review meetings held with CMDs/CEOs and other senior officials of banks..........
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Financial inclusion is the key to a robust Indian economy
.....The pace of growth of financial inclusion is painfully slow. Private sector banks are loath to open branches in rural areas where costs are much higher than profits. Public sector banks move too slowly to make a significant impact. Prominent para-banking institutions, chit-funds, daily collection schemes have tried to bridge the gap but have more often than not duped the depositors. The RBI and finance ministry must place this as their top priority. Bringing millions more into the formal banking sector may not benefit the banks in the short term but will add a big boost to the economy........
Life could get easier for bank customers
Your borrowing cost might not come down in a hurry. But the Reserve Bank of India (RBI) has set a strong agenda in the next few months to make life easier for bank customers. In its Annual Monetary Policy, the apex bank has asked the Indian Banks’ Association to ensure the Damodaran committee report is implemented. There are several good proposals made by this committee, such as .........
‘Self-study’ mantra worked for a tailor’s daughter Parul as she tops Rajasthan Class 12 board exams
Jaipur: Ashok Gahlot, who is a tailor by profession, must be very proud of his daughter Parul Gahlot. Parul topped the Rajasthan Board Class 12 (Commerce) with 94.6% marks. She aspires to become the RBI Governor........
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Decoding Subbarao’s signals
RBI opens new window
....The RBI understands this as most policymakers would. But New Delhi must give the impression of acting and the only way it can do that is to get others to act — and pass the buck. For its part, the RBI sticks to its knitting and behaves accordingly. The statement it issued last week reminds us of the mandate it has: To consider, above all, inflation and, by implication, its deleterious impact on the entire economy.......
WPI-CPI divergence confounds RBI
.....What puzzles is the guidance: the balance of risks arising from this inflation growth dynamic leave “little space” for further easing; indeed, the dark picture of inflation and current account deficit risks presented in its macroeconomic assessment the previous day persuaded many in the market to believe that there may be “no space” for easing the next day itself! It was little surprise that stocks fell and yields rose at the inflation-speak, notwithstanding the quarter per cent interest rate cut.......
Lack of govt spending hits liquidity
.....“Banks instead of borrowing from the LAF window, will be getting these securities through some other window. Overall it will not change the liquidity situation, it will change the costs to the government. We will come to a decision when we conclude our discussions with the government,”...........
Cobrapost: 15 bank staff suspended
A day after online media firm Cobrapost made money-laundering allegations against the employees of banks and insurance companies, public sector banks mentioned in the sting operation suspended 15 employees and took action against 16 others...........
The mess of Sahara’s account books: Consumer Forum asks its to pay Rs 50,000
..............The District Consumer Forum, however, said, the said passbook-cum-certificate bears endorsement to the effect that a sum of Rs81,287. "The endorsement bears the official seal of the opposite party along with the signature of the Branch Manager, nor have they averred that the endorsement is a forged one. In the aforesaid circumstances, it can safely be concluded that the endorsement of the pass book has been made by the then Branch Manager of the opposite parties (OPs-Sahara) after the receipt of the loan amount along with the interest........
Cobrapost sting: Only gun was pointed. Nobody got shot
...........This government and regulators have the right attitude. They’ve given the investigation of Cobrapost season two to an industry association of banks. An industry lobby group is just the right authority to do this work. Why, it is the same body that lobbied to keep effective interest rates on savings deposits at 0% for decades........
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