.......Sure, bank chairmen do make it a point to turn up for ribbon cutting ceremonies by politicians at branch openings, etc. But Chaudhuri apparently went one further. The Expressreport says that the bank actually cancelled a board meeting scheduled for 15 May – about which the stock exchanges had already been notified – because Chaudhuri had to show up in Rae Bareli for Sonia’s inauguration of 12 branches of the bank...........
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.
Wednesday, May 15, 2013
SBI chairman flags NPA as area of concern
State Bank of India (SBI) Chairman Pratip Chaudhuri today said Non Performing Assets (NPA) remained an area of concern for the Indian banks. He attributed the build up of NPAs in the banking sector to the general slowdown in the domestic economy over the last couple of years, which had seriously impaired the repayment capacity of borrowers...........
Tried to warn against chits: Minister
........"There was an indication of the things to come. It was not unknown. I have done my duty. I tried to make everybody aware. I spoke with Sebi and RBI on the matter in the last two years and they asked me to report the matter to the state government. I have been conducting this awareness campaign for one year," ................
In Villages, Credit is Still All About Moneylenders
...........The
Reserve Bank of India’s argument that new banking licences are needed
to achieve financial inclusion, mainly in rural areas, has new research
supporting it, thanks to banks’ falling share in rural credit. Policy
makers’ push to increase institutional credit to rural areas has had
reasonable progress since independence, but only at a snail’s pace. The
performance of banks, which have been assigned targets by the regulator
to increase their rural credit, has been dismal as their share of total
credit fell to less than a quarter in 2002, from over 29% a decade ago, a
research paper from the Reserve Bank of India’s economists show...............
Moneylenders rule the roost in rural India, says Reserve Bank of India study
....While the paper uses a decade old data from the last round of All-India Debt and Investment Survey, it points out to a persisting problem of banks not being able to cover un-banked areas. In March, Deputy Governor KC Chakrabarty said in a speech that banking has not been made accessible and reliable to people. Indeed, the key reason for informal sources of credit to thrive has been the ease at which loans can be accessed and the absence of a regular repayment............
Sebi starts repayment to investors in Sahara case
......Sebi has already written to Enforcement Directorate, RBI, and other government agencies to look into possible violations of rules by Sahara in this matter, including any money laundering activities through fictitious entities. However, the regulator is going ahead with the process of refunding the money to genuine individual investors, sources said.............
Adnan Sami not likely to get Indian citizenship
.......Sami had allegedly purchased eight immovable properties in Mumbai in blatant violation of FEMA, without Reserve Bank of India (RBI) permission. He also opened a savings bank account without RBI permission. A probe was conducted by the Enforcement Directorate in all these cases. "In view of the specific report of the special branch, it was decided to submit a special report to the Centre. It submitted that his application for citizenship should be rejected and accordingly, it should be communicated to him,''..........
Tuesday, May 14, 2013
Writing Reserve Bank’s obituary - Dr.N.A.Mujumdar
Thankfully We Have RBI Which Is Not Like CBI
............. During my childhood days, whenever I asked my father (an Ex-RBI official) if he is a central government employee, he used to say proudly that RBI is an autonomous body, government can guide but can’t rule it. Now I feel the importance of that autonomous institution, in its recent annual monetary policy review, against much pressure from the industry and government’s wish, it decided to go with its hawkish stance and reduced the interest rate (repo rate) by a quarter percent only and said that there is little room for further policy easing. One will be surprised, why I am supporting that stance if the whole share market, industry and the government was expecting a dovish stand by the RBI............
A.S.Rao, Regional Director on UCBs in Andhra Pradesh
Regional Director of A.P,RBI,Hyderabad A.S.Rao had given a speech in the event of starting a Tirumala Cooperative Bank in mallakpet,Hyderabad on 13th may 2013. He had given the details and up to date status of urban cooperative banks of Andhra Pradesh the urban banks has a better average as compared to national average but the only drawback is capital,capital has not increased it has same value as compared to the previous years.In the end he requested all the members of urban banks to increase their capitalization as soon as possible.....
If bank boards aren't capable, nothing much can be done: K C Chakrabarty
RBI probes Cobrapost report, reveals violations by banks
..........Cobrapost editor Aniruddha Bahal claimed that both banks and the insurance companies flouted the Foreign Exchange Management Act (FEMA) rules, Reserve Bank of India (RBI) guidelines and KYC norms. The website alleged that banks accepted unaccounted cash and invested in insurance products thereby hinting at a two-way street between the two.............
RBI probe upholds Cobrapost charges on 3 private banks
.............The RBI probe supports these charges, of systemic misuse. It has found use of fictitious permanent account numbers issued by the income tax department, use of unknown non-resident ordinary (NRO) accounts, unauthorised gold sale and rampant non-compliance of Know Your Customer (KYC) norms. Apart from irregular staff junkets to bank officials selling insurance...........
Banks suppressing alerts on suspect dealings: RBI probe
....The report comes against a virtual clean chit given by some RBI executives, including Deputy Governor K C Chakraborty. The RBI probe found that there were several instances of cash deposits below Rs 10 lakh to avoid being reported as CTR (cash transaction report), and it found that banks were accepting Rs 50,000 and above without PAN or "there were multiple and large value transactions in Form 60 accounts in some cases"............
RBI doing its bit to ease interest rates, what about banks?
...........Despite the easing of interest rates by RBI, the weighted average lending rates of banks have declined by less than 0.5 percent, according to RBI data. Banks have said they are not in a position to reduce lending rates because of tight liquidity in the system. Also, to reduce lending rates, they should be in a position to cut deposit rates as well, which they may not be able to do at a time when the growth in deposits has been slow..........
Five steps towards better banking
While the Reserve Bank of India has cut interest rates by a meagre 25 basis points in its annual monetary policy review, it has announced some measures, which, if implemented, could translate into a better banking experience for customers. Here's a look at the most important ones........
Write off of bad debts at whose cost-Tax payers and depositors?
.......Both the RBI and Govt also talk and express their concern on the staggering NPAs and loss to the exchequer, but what prevents them to introduce an inbuilt mechanism to bring under control the NPAs and discipline the recalcitrant borrowers is something strange. .............
Financial matters made simple
Canara Bank has come out with a unique comic book to help improve financial literacy.
Available in six languages — Kannada, English, Hindi, Malayalam, Tamil and Telugu — the comic on ‘Money and savings’ was released recently by the bank’s executive director Ashok Kumar Gupta..........
Monetary levers big and small
.....Sadly, unlike a Rube Goldberg cartoon, where the ultimate purpose is something laughably trivial, like activating a napkin to wipe someone's mouth after each spoonful of food, the intent of monetary policy is the deadly serious business of stabilising the economic environment. In the cartoon, we get to observe what the napkin does. In the case of monetary policy, the official data as reported at present simply do not help to assess the speed and extent of transmission to borrowers from the banking system.........
Change in definition of control in FDI policy to be prospective: Sharma
.................The finance ministry and the Reserve Bank of India have sought clarity on the issue and want to align the definition of ‘control’ in the FDI policy with the proposed definition in the new Companies Bill to get more investments into the country. During his Budget speech, the finance minister had clarified he and his team would amend the definition of ‘FDI’ and ‘FII (foreign institutional investment)’ to remove ambiguity and to adhere to the international definition..........
Yellow metal sends red signal
New Delhi, May 13: India’s trade deficit widened alarmingly by more than 70 per cent in April over the previous month as imports of gold and silver jumped two-fold. The drop in gold prices have pushed up demand. The deficit, or the gap between what India exports and imports, ballooned to $17.8 billion from $10.31 billion in March...........
RBI's new headache: India's huge gold shopping spree
.......The Reserve Bank of India (RBI) brought into effect on Monday previously announced restrictions on banks importing gold. A trade ministry official said the April surge had revived discussion in the government of a further duty hike............
Read..........
Read..........
RBI restricts gold import by banks to consignment
.....“To moderate the demand for gold for domestic use, it has been decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs of gold jewellery exporters. Bulk of the gold imported by nominated banks is on consignment basis, whereby, nominated banks do not have to fund these stocks,”.........
Banks might tighten loans to jewellery sector
.....Bankers and jewellery exporters expect the Reserve Bank of India (RBI) to increase the margins on gold holding, as well the amount of collateral against which the loan is taken. Rajiv Popley, director of jewellery retailer and exporter Popley Group, said banks would highlight gems and jewellery traders and seek more collateral. Earlier, too, banks were wary of lending to diamond traders; now, with RBI considering tightening the norms, it would become very difficult for these traders to avail of loans.......
Thirst for gold defies steps to curb import
.....The government and the RBI have initiated a raft of measures to check gold imports. The government is planning to stop imports from Thailand, from where the yellow metal is imported at concessional duties. At the same time, the RBI has decided that banks can import bullion only against specific orders from jewellery exporters........
RBI's direction for MSMEs welcomed
The Federation of Associations of Small Industries of India (FASII) has welcomed the new guidelines of the ministry of Micro Small and Medium Enterprises (MSME) and Reserve Bank of India (RBI) for disbursement of loan for MSMEs. Badish Jindal, president of FASII, said.........
RBI was net dollar buyer in March
.....“RBI has been active in the foreign exchange market though with smaller transactions,” said a forex trader with a domestic brokerage. The trader added, “Apparently, the RBI is keeping rupee from rising above `53.75 per dollar levels.” The RBI had net bought $275 million in April 2012. .......
RBI yet to order banks to clear dues of armed forces pensioners
.......According to a Right to Information (RTI) petition filed by Commodore Batra, the RBI had on April 22, 2013, issued a strong message to all banks for credit due amount to affected pre-2006 pensioners and family pensioners with eight percent compensation for the delayed period. But according to Commodore Batra, banks and the Ministry of Defence worked to delay payments............
Uproar in Tripura assembly over chit fund issue
...............Later, Nath and Burman alleged that there was a clandestine transaction of money between the ruling CPI-M and Rose Valley and added, the Agartala Municipal Corporation (AMC) also issued trade license to the company. "When RBI and SEBI did not give them license, why the AMC run by the ruling party issued license for them?", he questioned.
Are company FDs as attractive as they look?
..............Unlike bank FDs, company deposits are not secure. Though non-banking finance companies (NBFCs) are regulated by Reserve Bank of India and others by the Registrar of Companies, you still have the risk of losing your money. These deposits are unsecured, which means that if the company is unable to meet its commitment, you stand to lose your principal. However, in case of bank FDs..........
Fine Future scam: EOW to register complaints against 4 banks with RBI
COIMBATORE: Sleuths of Economic Offences Wing (EOW), Coimbatore unit, have decided to lodge complaints with the Reserve Bank of India against four private banks which allegedly helped Fine Future firm, an online multilevel marketing portal, cheat 1.72 lakh investors across the state to the tune of Rs 818crores..........
When Banks aren’t Safe
It is baffling that every year, government banks write off Rs 15,000 crore of bad debts. Public money is squandered in the advances made to persons or institutions lacking creditworthiness and trustworthiness in repayment of loans. Every rupee collected from taxpayers has to be accounted for properly. That is not being done. The continuing loss in public sector banks has been forcing the government to impose more and more taxes on the common man to plug the mounting losses. The government must wake up before the people’s confidence in public sector banks erodes. Banks must obtain sufficient collateral security while making advances to safeguard taxpayers’ money.
- KV SEETHARAMAIAH, Hassan (ET)
- KV SEETHARAMAIAH, Hassan (ET)
Ratnakar Bank forays into Tamil Nadu
............"As part our expansion strategy, we intend to grow our presence across many more centres in Tamil Nadu. Our first branch in Chennai is a state of art lounge branch, using tablets instead of desktops which help increase the mobility of the branch staff to address customer's banking needs in a relaxed environment and provide them with end-to-end service within the branch,".........
SHG products under one brand, logo in the offing
The Tamil Nadu government has lined up several initiatives to encourage more women entrepreneurs in the state, the most significant being increasing lending through co-operatives, launching a new, common brand name and logo for products made by self-help groups (SHGs), and reservation of 30 per cent of plots for women entrepreneurs in upcoming industrial estates...........
Monday, May 13, 2013
Monetary policy alone cannot revive growth
........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. ............
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”...........
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