............We also noticed that there is no uniformity amongst banks when it comes to customer verification. This makes is easier to target some banks to launder money, and then sell the gold later to someone else. RBI does not permit banks to buy back gold. Some banks use KYC while some accept PAN cards and that too at different values...............
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Friday, May 31, 2013
Indians plan sweet revenge on Govt’s move to curb gold
If the Indian government was horrified with its people’s love for gold in the past, it has reason to be more horrified now. That is because a sharp fall in gold prices is holding up the demand for gold...........
Thursday, May 30, 2013
'Total overhaul of existing financial system needed'
........."Regulators like RBI are to aide the government in administering and governing... No single central bank in the world can say, I am autonomous, therefore, I will decide what I will do,...........
Read - ET
Open House with Dr K.C.Chakrabarty, Deputy Governor, Reserve Bank of India
Are you angry
about being harassed by Bank services? Are you worried about Bank charges
being too high?
|
 |
This is a rare opportunity to voice your concerns and share all your
issues relating to banking services. Don't Miss It!
|
| Read............. |
Obituary
Mr. P.J. Kothandaraman, Retd. Treasurer, Reserve Bank of India passed away on 27.05.2013. No.20, Poes Road, First Street, Teynampet, Chennai – 600 018. Phone: 044-2435 0428 / Mobile: 99400-43255
Currency Notes from Chemicals?
...........The woman is a doctor and one does not become a doctor without some intelligence. How then was she duped? The good doctor met three conmen who had some ‘special’ chemicals that could produce duplicate currency notes, no less. Yes, the same notes that we normal, unlucky humans work our butts off to buy the next square meal!...........
RBI to hire 525 assistants
.............The recruitment would be conducted through an online examination and interview. The written test would be conducted in four phases in the last week of July. Interested candidates can apply between May 30-June 20, 2013...........
My View on "(Re)quest for VITALINFO......................."
Nice to know that more and more people are showing interest in reading articles/comments on current issues in financial sector. Representing both sides (readers and contributors), may I request users of VITALINFO to express their views on important issues? This may help VITALINFO to further grow and become more effective in participating in thought process of people who matter.
- M.G.Warrier
SBI, Kotak Bank among 30 violating KYC norms: RBI report
A Reserve Bank of India study has brought into light irregularities that are plaguing the entire banking system. The recent expose by Cobrapost was limited to questionable transactions in Axis Bank , ICICI Bank and HDFC Bank , but the RBI study has found out Know Your Customer (KYC) and anti-money laundering (AML) violations in a thematic study of 30 banks....
RBI review: What do banks do about your ATM complaints
........Okay, so this is according to the review done by RBI, and good to see that banks are taking initiatives. But, there is still a good possibility that what the review says, is very different than what you experience. For instance, an absent caretaker at a sensitive ATM location. Or may be you still get torn, soiled notes from the ATM..............
Finance Ministry, State Bank of India rescue young couple in distress
.......The couple pleaded repeatedly with the manager of the bank to allow them to access the money, but to no avail. Desperate, they wrote to the department of financial services in the finance ministry and SBI’s head office seeking help, and got a response. “It was an unusual request and not something that we usually handle. It was taken up for action, and the rest was done by SBI,” a senior ministry official said. SBI chairman Pratip Chaudhuri declined to comment on the case.......
Filing tax return is important, but it is not the final step
........While completing the task of filing of ITR is an important milestone, however, the same is surely not the final one. The Tax Office would like to verify your ITR and ensure if all transactions, tax payable thereon have been reported therein and such taxes have been duly paid. Accordingly, it is important to understand the process deployed by the Tax Department, likely outcomes and challenges, if any, which could arise there from and be prepared for it..........
BHILWARA SANGAM UNIVERSITY BBA MBA STUDENTS ATTEND FINANCIAL LITERACY SESSION AT RBI JAIPUR
.......Dr. Sathyan David, Regional Director inaugurated the special session which was arranged for the Sangam students in the Lecture Hall of RBI Jaipur. Highlighting about history of money, evolution of central banking and the role of Central Bank in economies of countries, Dr Sathyan advised the students to read a variety of journals and books, so that they may keep themselves abreast with the latest developments around the world. Two short films on the History of RBI were also shown to the students..............
Read.........
Less grey out there
............Interestingly, while it is commonplace to say that just a fraction of India’s high-value transactions get reported to the taxman—that’s what the Cobrapost sting suggested—the taxman’s data is quite reassuring. Less than a fifth of all transactions captured are taking place without valid PAN details. Whether or not those making the transactions are paying the correct amount of tax is something the taxman has to investigate, but it is clear that it is not just the rich who are avoiding paying of taxes. .............
RBI steps in after rupee falls to 10-month low
The Reserve Bank of India stepped in to prop up the rupee after it fell to a 10-month low to the dollar on Wednesday, according to bank dealers. This, coupled with the strengthening of the euro after a report showed business confidence in Germany unexpectedly rose for the first time in three months in May, helped the rupee recoup 18 paise before closing 0.5% down from its previous close...........
False signs
.......Yes, news on the macroeconomic front — particularly inflation, as reflected in both wholesale and consumer price indices — has been a little heartening. It is also widely anticipated that the Reserve Bank of India could loosen monetary policy a little bit more, and interest rates could decline some more........
Amber light on gold
.............Seen against this backdrop, it is time the RBI reviewed its policy of placing curbs on gold lending and focussed instead on monitoring lenders more effectively to ensure that they adhere to norms on Know-Your-Customer besides following prudential lending norms. A comprehensive review of all regulations at one go, as the working group has suggested, instead of piecemeal announcements as now, may also ensure greater certainty for players operating in this business.
Rein in gold coin sale, banks told
............ “If people want to buy gold for savings, the route should be available for them but for genuine purpose. But if the LTV (loan-to-value) ratio is not restrained, there is a possible risk. Gold loans form a small part of the bank's business and there is the concern of instability of NBFCs,” ....................
RBI wants you buy gold from banks. You will lose twice!
Facing huge gold imports that is worsening India’s balance of payments, the government wants to curb gold buying. However, the RBI is pushing savers to buy gold from the banks. This is one of the worst options for everybody. While banks sell you gold at a premium the RBI does not permit banks to buy them back. You will have to sell them to jewellers and get a lower price!..........
Large NBFC-MFIs may get one more year to comply with 10% margin cap
.........The industry has been demanding that the transitioning time be extended so as to allow the large NBFC-MFIs enough time to comply with the regulation. “We have requested the RBI to give us more time to transition to a 10 per cent interest cap. We are hopeful but are yet to get a notification from the regulator,” Sadaf Sayeed, Chief Operating Officer – Micro Finance, Muthoot Fincorp said.........
Microfinance flows again as fund taps reopen
......“The Reserve Bank of India has now recognised MFIs as a special category NBFC and has issued a circular, giving clear-cut guidelines for the sector. And now with RBI regularly monitoring the sector, investors have got back their confidence. Banks have also funded MFIs as part of their priority sector lending during the last financial year. This in turn has helped in regaining confidence of PEs and VCs,”..........
RBI to hold first auction of inflation bonds on 4 June
......The bonds are being issued with an aim to “protect savings of poor and middle classes from inflation and incentivize household sector to save in financial instruments rather than buy gold,....
The interest rate illusion
..........What now remains to be seen is whether, with inflation well within what has famously come to be known as the RBI's tolerance level, growth will perk up. And, if it does, will infrastructure sectors, in general, and mining, in particular, improve their performance? ........
India poised for gradual economic recovery: OECD
........The organization, a grouping of developed economies, said the Reserve Bank of India (RBI) had the scope to cut policy rates further due to the expected drag from fiscal consolidation and as non-food, non-energy price inflation softens, even as headline inflation remains “stubbornly high”. OECD said the fiscal consolidation road map presented in October 2012 should help lower the general government deficit from 7.5% of GDP in 2012 to 6.5% in 2014.........
Bihar to study laws against chitfund companies in other states
.....The meeting decided to provide training to senior deputy collectors (banking) to keep an eye over functioning of non-banking companies. The training to make these officers aware of existing laws against such non-banking companies would be organised by Reserve Bank of India on June 5..........
Read - ET
Read - ET
Amway India chief likely to appear before ED tomorrow
.......... The Reserve Bank of India (RBI) too issued guidelines which clearly put the activities of Amway under the purview of banned activities like lottery and gambling. Foreign Exchange Management (Current Account) Rules 2000 issued by the RBI brings multi-level marketing techniques and methods under the schedule of banned activities. .........
Increase retirement age of government employees to 62
......Such ad hoc decisions are taken because of specific individuals. There is one particular individual whom government wishes to place in one particular position. Once he is placed there, government wishes him to benefit from increase in retirement age. But to ensure he is placed there, one needs to ensure those who are senior to him get out of the way first. After all, supersession is not desirable. Hence, announce the decision after some people have retired at 60 and exited. This is the way decisions are taken.................
Read - ET
Kisan credit cards: Sushil Kumar Modi asks rural banks to take steps for meeting loan target
...In a review meeting with regional rural banks,Deputy Chief Minister and state's Finance minister Sushil Kumar Modi expressed dissatisfaction over distribution of only 1.30 lakh kisan credit card against a target of 2.53 lakh in 2012-13 fiscal. Modi asked the three leading rural banks of the state--Central Bihar rural bank, Bihar Regional rural bank and North Bihar rural bank-- to take effective steps to achieve the target of distributing Rs 13260 crore loan in 2013-14. In addition to senior officials of the three banks, a representative from Reserve Bank of Indiawas also present at the review meeting, a release from Modi's office said.......
Wednesday, May 29, 2013
Dynamic executive no more...................
I am sorry to advise you of the sad demise, in Pune, on May 26, 2013, of Shri.W.S Tambe, former Executive Director of RBI. He was 86 years old. He was the Executive Director during the period 1979 to 1983 -- the I G Patel era. Though he was in charge of DBOD he had contributed to Staff welfare measures in a big way. A dynamic Senior Executive, Shri Tambe was highly respected, very intelligent and friendly to all. He joined the World Bank after his term in RBI was over.
May his soul rest in peace.
- P.P.Ramachandran (via e-mail)
RBI Governor to attend credit disbursement camp
........Mr. Rama Rao said the camp was aimed at sensitising bankers in favour of meeting the targets under the RBI’s scheme. Although the scheme envisaged credit delivery by banks from Rs. 25 lakh to Rs. 1 crore in a hassle-free manner, without any collateral security and third party guarantee, implementation of the scheme was quite disheartening for want of awareness and motivation in bankers, the FAPI president pointed out...........
(Re)quest for VITALINFO..............
First of all, congratulations and thank you very much for taking efforts by spending your precious time for updating the daily news about banking industry for the benefit of all. I learnt that you are sending the daily Vital Information about banking to all the members whoever enrolled with you. I also learnt that it is very useful for updating our knowledge about the banking sector including RBI. I am requesting you to add my mail id in your data base for getting VITALINFO Dailyzine regularly.
Regards
S. Purushothaman, Manager
Centre for Advanced Financial Research and Learning (CAFRAL)
Reserve Bank of India (RBI)
Mumbai
HDFC Bank manually clears 1.61 lakh cheques in a day
HDFC Bank conducted a full-fledged Business Continuity Plan (BCP) drill during which it processed a record 1,61,373 instruments worth Rs 1,130 crore in a single day in Ahmedabad. The exercise was carried out recently under the guidance of the Reserve Bank of India (RBI) to check the readiness and manual processing capacity of its back-up centre, in case of any disruption in the electronic clearing system in the future, the bank said in a statement...........
Nabard suggests three-way joint venture for women’s bank
..............A top Nabard official told the ‘Committee to prepare a blueprint for the proposed India’s first Women’s Public Sector Bank’ that the Government should hold 26 per cent stake in the proposed bank, which will be run by women exclusively for women, while public sector banks and Nabard will together hold 74 per cent. “This (partnership between the Government, public sector banks and Nabard) will ensure good governance, focussed attention to the principal objective (lending exclusively to women entrepreneurs, achieving financial inclusion and women’s empowerment) and availability of resources at an appropriate cost,” said the presentation.............
Coming soon: debit-cum-credit cards to help you shop freely
.....What's more, such a card will switch automatically from debit to credit mode when cash runs out in an account. The card will act as a credit card in case of unavailability of funds in a customer's account and debit card when the account has sufficient funds. Unlike the current practice of a maintenance fee, this card will be given free to customers.....
Expand branches in unbanked rural areas: RBI
...........“To facilitate speedier branch expansion in unbanked rural centres for ensuring seamless roll out of the Direct Benefit Transfer/EBT Scheme of the government, banks are advised that they may consider front-loading (prioritising) the opening of branches in unbanked rural centres over a three-year cycle co-terminus with their FIP(2013-16),” RBI said..........
RBI plans open market operations
The Reserve Bank of India is looking at conducting open market operations (OMO) after assessing the Government's cash balance, according to Deputy Governor, H.R. Khan. "We will assess (the liquidity situation) and then see what the government balance is...wether it is short term or long term," Khan told reporters on the sidelines of a conference on Business Correspondent Model to check financial inclusion.................
Delays push new bank permits close to polls and uncertainty
D Subbarao, the outgoing Governor of the Reserve Bank of India, is unlikely to begin receiving applications for new bank licences before his term expires in early September. This has created a problem for the finance ministry: it pushes back the date for the grant of the licences to the middle of 2014 from the February-March period it was expecting. This would mean the first banks would get their papers only after the general elections...............
Deadline for new bank permits could be extended
Private banks rain goodies on staff as talent war hots up
.......Jobs in the banking sector are likely to boom after remaining dull throughout 2012, once the Reserve Bank of India issues licences to new players. However, according to headhunters, the recruitment drive would gain momentum only if new banks decide to focus on retail business and not remain confined to corporate banking............
RBI asks banks to disclose details of capital issuance
.............The new rule, issued to conform with Basel III banking capital reforms, will be applicable from July 1 and lenders should report details on their September-end balance sheets, the central bank said in a statement..........
Cobrapost sting: I-T notices to ICICI, HDFC and Axis banks
...........In its report on accusations against the three banks, RBI had said there were instances of splitting cash deposits below Rs 10 lakh to avoid reporting it as a cash transaction.It said the banks were found to be accepting cash of Rs 50,000 or more without a permanent account number (PAN)..............
RBI distressed by rising number of illegal schemes: Subbarao
In its effort towards financial inclusion, the Reserve Bank of India Governor D. Subbarao said women demanding banking services is the biggest accomplishment in the last four years. He was speaking after the frontline managers’ conference on business correspondent (BC) model in Pune...............
I-T Dept will come down hard on banks violating KYC norms
............Now, data related with Form 60 is being looked into. The Department has also obtained an enquiry report of the Reserve Bank of India, which identified a number of cases in which neither PAN nor Form 60 was obtained by the banks. Not only this, dummy PAN has been quoted in case of multiple entities, it has been alleged. This issue was discussed in the two-day Annual Conference of Chief Commissioners and Director Generals of Income Tax, inaugurated here by Finance Minister P. Chidambaram on Tuesday.........
‘Fly-by-night’ finance company in Vizag downs shutters
............These schemes do not have the approval of the Reserve Bank of India. As many as 1,800 depositors fell into the trap and the company mobilised Rs.5 crore in a span of just four months and wound up its operations in January this year and escaped with the money by duping the investors.................
It may be worth giving the first inflation-indexed bonds a miss
The more one learns about the government’s inflation-indexed bonds (IIBs), the less it seems like a real effort to give the saver a good deal. The Reserve Bank of India (RBI) has put out details about how the scheme will work in practice, and the examples given are not particularly exciting..............
India’s Golden Problem
...Addressing that issue might be possible with a slightly bolder option – allowing the Reserve Bank to issue gold bonds. This system would allow households to take their physical gold and exchange it for certificates – not only will these be redeemable at any point but they will also be transferable, allowing holders to buy and sell these certificates at prevailing market rates. It will also be cheaper for households, eliminating their explicit (vaults, bank lockers) and implicit (risk of fire, theft) holding costs. The Reserve Bank can then put these assets to work by lending it out to jewelers and earning a return while simultaneously curbing gold imports......
What's next for gold borrowers?
......Under such circumstances, unless you are in need of immediate funds, it’s best to look at other cheaper resource-raising alternatives. Taking into account the present value of gold per gram and the margin requirements, you will have to look for other modes of raising funds such as a personal loan, loan against assets like property or fixed deposit........
Why should depositors from better banks pay for cooperative banks’ failure?
..........What is worse, co-operative banks are poorly regulated under the dual regulation of the Reserve Bank of India (RBI) and the Registrar of Cooperatives. It is an open secret that RBI's supervision is completely ineffectual when it comes to co-operative banks, because of the enormous political influence wielded by their promoters.............
More than a dozen co-operative banks go belly up. Should you worry?
.........The good part is that Reserve Bank’s credit insurance arm has paid Rs 159.85 crore to depositors of 13 cooperative banks which went bankrupt during April 2012 to March 2013, according to DICGC.
Why enhance education loans?
.........Now, banks stung by bad loans are buying insurance to cover default risk, which should make borrowing costlier for students. The total value of all currently disbursed loans, according to Reserve Bank of India data, is Rs 5,510 crore. In 2011-12, the ratio of bad loans was 4.5 per cent, and according to banking experts, has gone up in 2012-13 by another 100 basis points. That makes it important to ask ourselves should we be treating educational loans as other loans.............
Singapore NPA norms hit banks
..............Banks such as State Bank of India (SBI), Bank of Baroda (BoB), Bank of India (BoI) and ICICI Bank, who have businesses in Singapore, are the ones affected by this. While banks don’t reveal the exact geographical break-up of their international advances, between 5-10% of the international lending for these banks could come from Singapore operations................
SBI chief may get extension, LIC & UTI await new heads
The ills of public sector banks, SBI included, can be traced to their parentage
.......This is not to hold a blind brief for public sector banks. Admittedly, they are often lethargic and function more like bureaucracies than like commercial ventures. But the very fact that many of the top-rung at new private sector banks cut their teeth in these very same PSBs that are now being condemned should give lie to the naïve belief that the latter are inherently ‘unbankable’ as one business daily scathingly put it............
Talks on for merger of bank with SBI
Tuesday, May 28, 2013
Why isn’t anyone accepting Rs.5 notes in Hyderabad?
.........While the 50ps coin presents a minor problem, the issue of the 5-rupee note is yet to receive clarity. Most businesses do not accept 5-rupee notes, declaring that the “banks don’t take them anymore.” Countering this, officials from the RBI Hyderabad insist that no such move to phase out 5-rupee notes has been undertaken so far. “In the case of phased out notes or coins, you will realise that it is only the coins below 25 paise that have been phased out. The 1-rupee, 2-rupee and 5-rupee as well as the 50ps coins are still legal,” said an official of the RBI..................
RBI not to ban banks from selling gold coins
.............Speaking on the sidelines of a meeting at the College of Agricultural Banking here, Subbarao said that he recognised that the attractiveness of gold was a consequence of high inflation, but pointed out the need to invest in financial savings which is good for the economy........
Don’t leave banking to machines - V.K.Sharma, former Executive Director
Are Depositors at the Mercy of Bank IT Systems?
Far too many glitches in banks' IT systems affect consumers adversely. Who checks whether redressal systems exist and operate in a fair and equitable manner? RBI should work at depositors' protection instead of sitting in an ivory tower and producing reports on "disincentivising cheque usage" by penalising depositors.......
Best Practices To Help Banks In India Protect Cardholder Info
In light of cyber attacks getting increasingly targeted against financial institutions and fraudulent card use becoming more frequent in India, the Reserve Bank of India, India’s central bank, has mandated that banks in India put in place additional factor of authentication for all card not present (CNP) transactions, and introduce security measures to safeguard their customers against cyber attacks and misuse of electronic payment systems...........
Doubts on Inflation Index Bonds? RBI’s FAQs out
The Reserve Bank of India’s (RBI) plan to launch Inflation Indexed Bonds (IIBs) is old news and a lot has been written about . However, little was known about the fine points. The RBI has sought to bring some clarity on the scheme by bringing out a set of FAQ, we bring you ten most important fine points, you should know:............
Exchange of Torn Currency
...... RBI’s reach with its presence restricted to just 19 centres is quite limited and commercial banks with their vide network of branches are better positioned to meet the requirements of common persons relating to currency and coins. The rationale behind the proposed move is to better serve the interest of the common person. However, RBI will continue to manage the distribution of bank notes and coins through the currency chests and bank branches.........
Read......
PF set to cover all pay, not just basic
You
may end up saving more in the months ahead with the Employees Provident
Fund Organization getting ready to re-notify a new definition of
“compensation” that will include all your allowances, amid intense
lobbying against the move by industry bodies...............
Read - TOI
Read - TOI
My View on book review - 'Financial Policies'
I
had seen your review early this morning.It is far too
generous.Characteristic of you is to set out things in a manner in
which the reader is tempted to take a look at the book.This is the first
review to appear and I deeply appreciate your taking time to write the
review.
Warm regards,
S.S.Tarapore
Warm regards,
S.S.Tarapore
*********************************************************
Undoubtedly, this is an excellent review. I hold SST in high regard and
used to have lot of interaction with him while he was E D and also D G. I
must buy this book for my personal library as it covers almost the same
period and problems, I have lived in/with. Hearty congratulations!
Love and regards-----------------------------P B Kulkarni
********************************************
Dear Shri Ramachandran:
I read your review of SST's book which I have gone through some
time ago. The review does full justice to the author and to the contents
of the book. As usual you have been objective and to the point.
Congratulations.
Regards,
Vasudevan
****************************************
-- It is an arduous task to review a book containing 64 chapters .The job becomes more difficult when the author is SST who is precise ,clear and forceful.To leave out anything would be a painful decision Within these limitations you have done an excellent job..We must consider ourselves lucky to have known SST a man of great wisdom,courage to present facts without any fear and to crown it all abundant humility. May God give him good health and a long life
-- It is an arduous task to review a book containing 64 chapters .The job becomes more difficult when the author is SST who is precise ,clear and forceful.To leave out anything would be a painful decision Within these limitations you have done an excellent job..We must consider ourselves lucky to have known SST a man of great wisdom,courage to present facts without any fear and to crown it all abundant humility. May God give him good health and a long life
Unni
*********************************************************************
Excellent
review which gives a clear summary of the book which sounds very good. I
would like to read the chapter with reference to Hayek. If possible
please xerox it for me later. Congrats on a superb performance.
Meenakshi Tyagarajan
********************************************************************************
Respected
PPR thank you brilliant review.Dr Tarapore has a brilliant mind he is a
towering colossus an astute statesman a quintessential statesman and is
a fantastic human being he is very generous with time and actually
takes the time to mentor and most by precept -I very greatly admire him
and congratulate you on the review. Warm regards
Deepali Pant Joshi
***************************************************
As Mr
Tarapore has mastery over economic and monetary policies , you have
mastery on reviewing books authored by veteran economists and this
latest review has diligently brought out in a few words what Mr Tarapore
has covered in his books, of course leaving the anxiety for the readers
to have a complete reading of the contents of the book. Excellent
effort and deserves appreciation.
With regards,
Dr.T.V.Gopalakrishnan
With regards,
Dr.T.V.Gopalakrishnan
Cobrapost exposures: What next? - M.G.Warrier
...........On an earlier occasion (Seventh Nurul Matin Memorial Lecture, Bangladesh Institute of Bank Management, Dhaka, 2007) speaking on “Ethics in Banking” Dr Jalan had this to say: “Adherence to the ‘Rule of Law’ in a democratic society is an essential minimum requirement of ethical behaviour” He agreed with Professor Nurul Islam who had observed on the same dais that “…..ethics in banking, economic transactions and in society in general, are all interrelated. The solution needs to cover all related areas, including the systematic political factors.” ...........
Risks in New Banks Licensing -- Dr.T.V.Gopalakrishnan
.........RBI cannot take any regulatory risk damaging its own reputation as happened in the case of GTB in late 1990s.The fit and proper criteria of Directors of GTB was conveniently ignored and the bank had to be finally closed by merging it with OBCLtd in 2004. It is going to be a litmus test for RBI for issue of licenses to Corporates to start banks.............
13 co-op banks turned insolvent last fiscal
As many as 13 cooperative banks failed in 2012-13, resulting in credit insurance company DICGC paying nearly Rs 160 crore to depositors. Among the 13 cooperative banks, which failed to repay deposits to customers, nine are from Maharashtra, two from Gujarat and one each from Andhra Pradesh and Odisha............
Reserve Bank Cancels the Licence of Arjun Urban Co-operative Bank Ltd., Solapur, (Maharashtra)
......Therefore, RBI took the extreme measure of cancelling the licence of the bank in the interest of bank's depositors. With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of the Arjun Urban Co-operative Bank Ltd, Solapur, (Maharashtra)) the amount insured as per the DICGC Act, will be set in motion subject to the terms and conditions of the Deposit Insurance Scheme. Consequent to the cancellation of its licence, Arjun Urban Co-operative Bank Ltd., Solapur, (Maharashtra) is prohibited from carrying on ‘banking business’ as defined in section 5(b) of the Act........
BofA-ML expects RBI to cut rates in June
...."We think that the RBI cannot afford to wait much longer as the primary liquidity injected today will drive deposit growth six months later,..............
ICICI bid to stretch Kamath stint
ICICI Bank intends to ask the Reserve Bank of India to relax its 70-year age limit for bank chairmen in order to give Kundapur Vaman Kamath the opportunity to stay on as chairman of the country’s second largest commercial bank until 2019.........
Fresh row in bank CMD appointments
Fresh
controversy has broken out over appointments of new bank chiefs after
the finance ministry changed an earlier proposal for appointments of at
least half-a-dozen chairmen of public sector lenders. At the
centre of the row is the change in the appointment policy for IDBI Bank
CMD, where the ministry had decided against moving an existing bank
chief to the Mumbai-based bank........
Read - TOI
Read - TOI
An Analysis Of Financial Sector Reforms
.....India has been a witness to a sea change in the way banking has been done in the past more than two decades. Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian banking system at a measured pace so that growth could be achieved without exposure to any systemic risks. Some of these initiatives were deregulation of interest rates, dilution of the government stake in public sector banks (PSBs), guidelines being issued for risk management, asset classification, and provisioning. Technology has made tremendous impact in banking.................
Central bank may switch to reverse repo if rains are normal
..........The RBI governor D. Subbarao has pointed out in his recent analyst conference call that “at the moment you recognize that we are still maintaining an anti-inflation stance. And as we have indicated, inflation threat is still very much there. There are a number of upside risk factors that could potentially come into play, so the expectation should be that liquidity will be in deficit for the next few months at least. How much (inflation moderation) is an open question. How much it comes down and whether we assess that decline in inflation to be pure sustained and durable, it will depend on that judgement”.............
Gold’s journey in the last two decades…
The last 20 years have been spectacular for gold. From the world economic crisis to increasing investment demand and tight supplies, there were many reasons for the yellow metal’s glitter. If you had invested in gold in 1993, you would be sitting on a fortune now with the metal’s price having risen 400 per cent. ...........
Banks cry foul as gold importers raise premium
..............“With banks almost stopping import of gold, there is a huge demand-supply mismatch, which has pushed up the premium. The objective of RBI, which was to discourage gold import, is not met,” ...............
Indian Central Bank Kills "Trillion Rupee Gold Coin" Idea, Enforces More Gold Controls
.........Ironically, without imposing specific dimensional limitations, there was the risk that India may boldly go where only a bunch of financially illiterate, click-baiting media dilettantes, desperate to pitch the idiotic idea of a “trillion dollar coin” made out of platinum to bypass the debt ceiling limit (at least until the Treasury was forced to firmly crush this nonsense with a just as idiotic public statement), and arbitrage RBI directive loophole to create a massive coin, against which banks would subsequently lend out cash............
Read..............
RBI imposes restrictions on bank loans against gold
"...it is advised that while granting advance against the security of specially minted gold coins sold by them, banks should ensure that the weight of the coin does not exceed 50 grams per customer,"..............
SEBI reform can aid crackdown on Ponzi pedlars
...............Another problem is the grey area between ' deposit' and ' investment'. Many companies are promoting both deposit and investment activities. This leads to dual surveillance, both by the RBI and SEBI- or none at all. Both can shift the responsibility on the other. It is necessary for the two regulators to coordinate their surveillance activities. Perhaps the powers of the RBI may be delegated to SEBI, where the primary activity of a company is investment; and powers of SEBI may be delegated to the RBI, where the primary activity of a company is deposit. It is time that the finance and corporate affairs ministries clear up the ' no man's land' between the two regulators.
Vijaya Bank to open Aadhaar enrolment counters
.......Ultra-small branches (USBs), an initiative to bring banking services to rural areas, has been a success with many in the district availing themselves of benefits of USBs under Vijaya Bank’s financial inclusion project, assistant general manager of National Bank for Agricultural and Rural Development Bindumadhava Vadavi said. The Direct Cash Transfer scheme will be introduced in the district shortly, R. Balakrishna, Assistant General Manager, Reserve Bank of India, said.........
Merger of Banks in India: SBI and SBT on Verse, PSU Banks on way
........With the Union government gunning for two or three world-size banks in India, the merger of Kerala-based State Bank of Travancore with the State Bank of India is an eagerly awaited development in banking circles. While bosses in the two banks don’t deny the prospect of a merger, its timing remains a million dollar question. There are developments, which when strung together, cement the belief that merger could happen during this financial year..............
Sebi: Hits, misses and the road ahead
.......It requires an unblinkered assessment of Sebi’s history to understand why Sebi has failed to stand up as a fearless watchdog of investor rights so far. At a time when the Financial Sector Legislative Reforms Commission (FSLRC) has proposed several new financial regulators, Sebi’s history serves as a cautionary tale, illustrating the gargantuan challenges in creating effective independent regulators in the country..............
Monday, May 27, 2013
Frontline Managers Conference
Social costs of financial exclusion - Dr.N.A.Mujumdar
.........If only the commission had cared to look at India's own empirical experience, it would not have been misled. Perhaps the commission was too obsessed with " international best practices." The evolution of the Indian financial system is unique in a number of ways. The founding fathers of the Reserve Bank of India ( RBI) built into its statutes the responsibility of promoting agricultural credit. This was unusual for a country which was still a British Colony. Nationalisation of major commercial banks in 1969, the phenomenal branch expansion programme, unprecedented in the history of world banking and fixing credit targets with a view to ensuring wider disbursal of credit - these were indeed bold steps at that point of time in financial history - much before financial inclusion became internationally fashionable.............
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