........Nevertheless, actions with regard to monetary policy alone cannot revive the growth. These have to be supplemented by efforts towards easing the supply factors and stepping up public investments along with continuing commitment of the government to fiscal consolidation. The Monetary authority- RBI, as such, is exercising its obligatory alertness against possibilities of resurgence of inflationary pressures. The RBI has undisputedly evolved itself into one of the most alert monetary pulse readers and acts real time. ............
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.
Monday, May 13, 2013
Monetary policy: Highly subdued, devoid of any nudge
....The overall message one can infer from this policy is that RBI can think of easing monetary policy further only if inflation is brought under threshold level and other requirements which basically come under the domain of the Government to give a thrust to the growth of the economy are in place......
NABARD shifts blame for corporate warehousing scheme to FinMin, RBI
In the eye of the storm for funding corporate warehousing projects on terms far softer than those offered to poor farmers, the National Bank for Agriculture and Rural Development (NABARD) is now blaming the Ministry of Finance (MoF) and the Reserve Bank of India (RBI) for the transgressions.........
RBI’s misplaced agenda in J&K
......The reason for RBI seeking its application is rather simple and borders on being innocent: the inapplicability of SARFAESI hampers lending by commercial banks in the state. Ergo, the credit deposit ratio (CDR) is abysmally low. This is at best a partial truth. SARFAESI is neither a necessary nor a sufficient condition for bank lending. At worst, inapplicability of SARFAESI should increase the risk of lending in J&K which, in turn, should have an impact on the pricing of loans and not the volume of lending. Be that as it may, Subbarao will do well to look at RBI’s own annual publication............
'Collectors' rush to make hay as coins become rare in Bangalore
Will the real inflation rate stand up please?
......The RBI often says it looks at all inflation measures. But by announcing a formal forecast only for WPI inflation, it pretty much confirms that it cares less about retail inflation. This preference for the WPI is also responsible for the weak fight against retail inflation. The central bank's approach has resulted in a perverse outcome of two perceptions of inflation.......
Growth forecasts: fanciful or realistic
...........These developments were fairly obvious even to the uninitiated. Maybe, an expert body like the EAC was constrained in not having a forum to update its forecasts. Its reports are published twice a year. The RBI has eight policy statements which it can use to revise its projections. Explanations apart the EAC and some other institutions, notably the Planning Commission, should disabuse the notion that they are being deliberately optimistic and puff up projections............
A fraud prevention body?
.....Specific bodies (such as RBI and Sebi) either individually or together require to be assigned the responsibility of identifying and preventing such Ponzi schemes. The regulators would have to be adequately equipped with human and other resources for such regulation as well as being suitably empowered in legal terms........
RBI’s rate cut benefits new borrowers only
.......This anomaly is mainly because when RBI cuts its policy rates to provide cheaper liquidity to banks, they instead of cutting their benchmark rate, which is called base rate, lower the margin that they charge over and above the base rate...........
Tilak Memorial blanks RBI
Tilak Memorial blanked Reserve Bank of India 4-0, while Jupiter edged past Southern Blues by an odd goal in five, on the opening day of the BDFA ‘B’ division football league here on Friday......
Read - The Hindu
Read - The Hindu
Sale of Top Jobs in Railways Nailed - Is Banking Sector Not Equally Guilty for Sale of Top Jobs ?
........This transparency is necessary to expose the nexus between Members of the Boards of banks and politicians / bureaucrats in the light of Bansal episode. If RBI fails to do so, let such relations be exposed at social websites like Face Book from where these will be picked up by media persons and hopefully bring greater transparency. I wish some honest people in RBI and CBI will listen to our feeble voice.
Smart phones take banking to a new high
.....“Branch banking serves customers from the old generations even today. The dependence on branch banking was reduced by 75% with the introduction of Automatic Teller Machines. Then came internet banking, which further reduced the number of customers visiting bank branches. But in the past one year or so, following the revolution of mobile internet protocol, the number of users has registered a growth of eight times,” ..........
Prepaid debit cards: A weak link in bank security
A brazen gang of cyber criminals, who stole $45 million from bank ATMs in 27 countries, exposes an Achilles heel in the global financial industry: prepaid debit cards. Cyber security experts and industry analysts say the burgeoning use of prepaid debit cards for everything from gift certificates to disaster relief handouts is making it easier for hackers to withdraw large amounts of money before detection.............
Regulation for financial consumer protection – present status and future directions
Opening remarks by Dr K C Chakrabarty, Deputy Governor of the Reserve Bank of India, at the Conference of Principal Code Compliance Officers – 2013, organized by the Banking Codes and Standards Board of India (BCSBI), College of Agricultural Banking, Pune, 29 April 2013
.......I believe that an important cause for deficient customer service is the inability of banks to understand the specific expectations of diverse customer groups and to devise product, pricing and delivery strategies that are best suited to meet these expectations. Many banks would not be aware of the number of customers they have or the number of products they offer. While a plethora of products might be available on paper, many of them might not be actively offered to customers. Hence, understanding their customers and understanding their own product offerings needs to be the starting point of any customer service framework......
RIL's Rs 83,000 crore cash pile: A hint of impending big-bang acquisitions?
...A perusal of the annual report for fiscal year 2013 shows there has been some big shifting of cash in the RIL treasury. Around Rs 15,720 crore held as certificate of deposits (CDs) with banks has been liquidated. The move was forced in a way as the Reserve Bank of India (RBI) frowned upon the practice of banks creating these CDs with high interest rates towards the end of a financial year to spruce up the balance sheet. The RBI asked banks not to create such CDs and as a result this chunk of money had to be shifted. Most of this money (Rs 12,000 crore) seems to have moved to a category of unquoted mutual funds............
‘Use Ombudsman scheme for loans’
Students facing difficulties in obtaining educational loans from banks to pursue higher studies can make use of the Banking Ombudsman Scheme under the aegis of the Reserve Bank of India, Collector P Sankar said.......
Return of the moneylender
The indebted farmer has not only provided raw material for great literature but has also been a burning public policy challenge in India. A working paper released by the Reserve Bank of India last week is a timely reminder of the challenges that still lie ahead...........
Blocking investments
.............But the Reserve Bank of India (RBI) under Governor D Subbarao is already making enough effort to make this a steep climb, independent of the political shenanigans. The problem is the way the know your customer (KYC) guidelines are being deployed as a shield to block than unleash the flow of money..............
2 Rose Valley executives in 3-day police custody
......Moreover, neither Reserve Bank of India (RBI) nor Securities and Exchange Board of India ( SEBI) allowed them to collect funds under different market investment schemes in Tripura. But Rose Valley had been doing the same over the years.........
Chit funds, the south side story
..........In India, where banking penetration is still very low (40 per cent of the households still remain unbanked), chit funds have been one of the major means of multiplying money, especially in the rural parts of the country. The number of households participating in chit funds stands at 5-10 per cent of the total household population in each state (except in Delhi, the figures for which are not available). According to a study by the Institute for Financial Management and Research, Chennai, money circulated through chit funds is an average of around Rs 50,000 per household (except Kerala).............
Chit fund probe panel receives 60,000 complaints
........Serpentine queues outside the office of the four-member commission, headed by Justice Shyamal Sen (retired), have been seen ever since it began work, indicating the enormity of the scam and the massive number of people who may have been duped. Investors and agents from West Bengal and adjoining States have thronged the office to submit their papers since April 26, when the commission started receiving complaints. The last date for submissions is June 29........
The Medium Becomes The Managed
............ “These companies began by sponsoring programmes on television. From that they went on to owning the channels and newspapers. And then they went on to prey on depositors from villages with images of politicians endorsing their products.” The story of their fall, perhaps, has to be told by the 800-odd journalists who lost their jobs when some groups collapsed. And by the thousands of investors who see no hope of getting back their money.
Grey areas impacting prevention of money laundering in India
.....The skeletons are coming out of the closet. A series of exposés by Cobrapost has made Indian financial institutions look extremely vulnerable to money laundering activities. Small, as well as large financial institutions look deficient in anti-money laundering policies that they are supposed to be strictly implemented and followed. Globally money laundering activities have been rampant.......
Gogoi against cash for cheated investors
........The Assam chief minister’s comments came a day after the Reserve Bank of India governor questioned the fairness of the Bengal government’s proposal to levy additional tax on cigarettes to compensate the cheated investors of the Saradha Group. “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 had said in Srinagar. In Delhi today, Gogoi blamed “lack of regulations” by the RBI, Sebi and the registrar of companies for the mushrooming of “chit funds”..........
Saradha-like companies leave authorities perplexed
.........Even as various ministries, government departments and regulators such as Ministry of Corporate Affairs (MCA), Serious Fraud Investigation Office (SFIO) under the ministry, Department of Financial Services (DFS), the Reserve Bank of India and Securities and Exchange Board of India (SEBI) are brainstorming on the issue, officials involved say they are finding it difficult to nail down unauthorized collection of funds by numerous small time and fly-by night operators...........
After Saradha scam, investors may turn to safer havens
.....lack of proper regulation and the failure of formal financial institutions, including banks, to penetrate into rural areas were the key reasons for mushrooming of such schemes across the State. “Penetration of bank branches in the rural and semi-urban areas is poor, particularly in the East and North-Eastern parts of the country. The concept of business correspondents suggested by the Reserve Bank of India has also not taken off too well in these regions,”.......
Over 100 detained in chit fund raids
.....The crackdown, which started on Friday last week, was meant to verify the documents of NBFCs to ascertain whether they are operating with the approvals of Reserve Bank of India (RBI) and Securities & Exchange Board of India (SEBI) and to collect data about the volume of money they have collected from the depositors............
RBI fails to monitor money laundering by banks
.............."Given that a chunk of life insurance money goes toward buying government securities, is there a conflict of interest for the RBI as the government debt manager? It is easier to turn a blind eye to institutional miss-selling. Also, why did it take our magazine to expose such practices by so many bank employees? Why weren't the KYC norms followed by the banks?" Bahal asked. An email query sent to the RBI on the issue remained unanswered when the story went to press.
RBI gears up for plastic notes
......The proposed launch follows years of consultations over the feasibility of plastic notes in the country. Way back in early 2000s, the RBI had rejected a similar proposal, but it later began working seriously on trying out plastic notes, given their high longevity and growing menace of paper bills getting soiled and the rising costs of their disposal. At the same time, the successful launch of plastic notes across various countries has also led to a serious thought over similar practices in India, experts say, while adding that the concerns over greater possibility of counterfeit notes in plastic format have also been addressed to a large extent..........
Why India Post should get a banking licence
.....With this background, India Post should be the fittest candidate to establish a bank if indeed RBI wants financial inclusion, as no other public and private entity can compete with it in terms of reaching out to the rural masses. It is familiar with the art of deposit taking; has personalized relationships with rural folks who do not yet have access to Internet; and even though it does not directly invest in government bonds, it will not have any problem in fulfilling the statutory requirement of buying government bonds as it has been contributing to the consolidated fund of India. All it needs is to convert part of it into exposure to government bonds.......
Asia's Best Analysts: Banks
........Mr. Shah remains bullish on the banking sector for 2013, given the Reserve Bank of India's monetary easing policy, which is likely to result in higher loan demand by both corporations and individuals. The RBI is also expected to allot its much-discussed private bank licenses, which will be an event to watch for the sector, he said.
Decades later, Dharavi remains a maze for banks to crack
...............It is this milieu that banks have been trying to tap for decades now, hoping to move money from the huge parallel cash economy into the banking system. They have been opening branches and engaging novel methods to expand presence. But taking basic banking to the urban poor has proved easier than convincing them to use the facilities. A sparsely furnished State Bank of India (SBI) branch in Dharavi is smaller than most of its branches in the city, but more crowded with migrant labourers and small entrepreneurs on any given day............
Doha Bank seeks India base
.....Qatar-headquartered Doha Bank is looking at setting up base in India and is awaiting clarifications from the Reserve Bank of India to set up a branch network across the four metros, perhaps this financial year. Mohammed Akram Hashim, Head, Retail Banking, Doha Bank, a participant at the Business LineOpportunities Fair, said that with the RBI now looking at licensing Indian corporates to set up banks, the issue of foreign banks seeking licences is likely to be taken up. The policies for foreign banks differ and the bank is seeking clarity.......
Fundamental triggers missing
.....Changes in interest rates alone may not be enough to spur growth; the supply side of the economy needs to be stimulated. For this, either the government should increase its investment spends or create an environment to increase the confidence levels of the private sector to begin investing. Given that elections are just a year away and in fact may be held by this year end, it is unlikely that any significant improvement can be seen in policy making or real reforms for the private sector to invest for growth............
Cyber cheats hacked Pune, Bangalore companies
......Bankers say that although RBI has guidelines on outsourcing of banking functions, evolving technology makes it difficult to draw clear lines. RBI has sought to address this issue by making it clear that even in outsourced transactions, it is the bank that will be held responsible........
Samajwadi Party demands fair deal to farmers
.........The party also demanded that action should be taken against the private and public sector banks which violate the RBI guidelines as far as lending agricultural loan to farmers was concerned. Besides, a CBI inquiry should be ordered into alleged corruption in 2008 loan waiver scheme where thousands of the farmers of the State had been duped by the micro finance organisations and non-government organisations.............
No ‘green shoots’ for India Inc
......Overall, if there is a message for India Inc from this quarter’s scorecard, it is to consider some belt-tightening measures of its own, instead of perpetually looking to the Reserve Bank of India to deliver policy rate cuts.......
Banks Off to Dubai on Winsome Trail
....Significantly,
RBI has voiced concerns that if Indian banks refuse to honour the
bullion banks’ payment demands, it could be construed as sovereign
default..............
Trade Opportunities between India and Sudan
...While answering the queries from members of Sudanese Businessmen & Employers Federation, Ambassador Verma explained that Reserve Bank of India has no directives to dishonor LCs from Sudan. The Government is looking into this issue to come out with a comprehensive solution.........
Saturday, May 11, 2013
Once was king
If Manmohan Singh had retired in, say, 2010, his legacy would have been assured. A man who worked his way up from a small Punjab village to Cambridge; who became chief economic advisor at 40, Reserve Bank of India governor at 50, and finance minister before 60; and, finally, the only prime minister since Jawaharlal Nehru to be re-elected after completing a full five-year tenure............
Glare on ex-RBI official's Ponzi links
.....The investigators said that they cross-examined a recently-retired RBI official who was allegedly instrumental in shielding Saradha boss Sudipto Sen's from the regulatory scanner. Ponzi scamster Sudipta Sen's interrogation unearthed dubious role of a section of senior Bank officials and officials of Sebi, admitted police. Investigators have already examined a recently retired RBI official, who allegedly was instrumental to shield Sen's chit-fund trade from regulatory scanner........
HDFC Bank, Petty misappropriations – How much are they worth?
Dear Dr. Subbarao,
SUB: Response to letter sent by the “Department of Banking Supervision” of RBI
I thank you and the Department of Banking supervision for forwarding my complaint dated October 16, 2012 to which the bank did not reply to me but only filed a copy of the letter with you. Thus I also thank you for sending me a copy of their reply. The reply is misleading, factually incorrect and an expert exercise in deception. I will try to illustrate this below, and hope for once the RBI will act not as a post office forwarding letters and complaints to banks expert in cheating the public but will take proactive action, at the very least to investigate if the charges levied by me have any merit..........
Panel pill to tackle Saradha ill
.........“The RBI as a public policy institution is responsible for spreading awareness about what are the legal schemes and what is illegal, who is the responsible for regulating these schemes, how can ordinary people know what is legal and what is illegal and how can they protect themselves against frauds,”.................
Economists allay fears of setback if Bengal chit funds close
With the chit fund catastrophe causing a major public uproar, economists feel even if all shady companies operating in West Bengal are closed down, it would not pose any major setback for the economy, though the already crisis-ridden sectors like service and real estate may be hit.Sectors like entertainment, travel and tourism, and real estate, they said, will face the heat too, as these dubious firms have major exposure in these sectors..............
Number of fraudulent cash withdrawal cases down: SBI chief
....."We have made good the loss (suffered by bank customers due to fraudulent withdrawal of cash). Cameras have been installed in ATMs and SMSes are being issued to customers on certain amount of withdrawal,"........
Ponzi scheme promising a 400% return cracked, Rs 1300 cr unearthed
India's economic intelligence and enforcement agencies have cracked an international ponzi scheme called Private Partnership Programme involving officials of four Indian banks as well as foreign investor institutions and unearthed Rs 1,300 crore of allegedly unaccounted income.............
Crime branch cracks whip on chit funds
....."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 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...............
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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.............
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