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, June 3, 2013
When role models fail - Dr.Subir Gokarn
Rating downgrade risks have abated, says Urjit Patel
Obituary
I regret to advise you of the sad demise of Shri.S.N.Ramachandran, in Coimbatore on May 7, 2013. He was 87 years old. He joined RBI in 1957 and retired in 1986. He had worked in Bombay in PAD, DAD, DBOD, Inspection,etc. For a few years he worked in our Ahmedabad Office. His wife pre-deceased him--when he was only 38. He is survived by his son, daughter-in-law and granddaughter.
May his soul rest in peace.
- P.P.Ramachandran.
RBI should explain 'liquidity' - A.Seshan
...............Significantly, the Deepak Mohanty Committee Report pointed out that recent experience had suggested that the response to the RBI's debt buyback was less than expected even under high liquidity shortage conditions. It said that market participants preferred to access the RBI's LAF window rather than meet their liquidity needs through OMOs. In fact, it is time for a review committee to be appointed to go into the working of the LAF for possible fine-tuning. The RBI needs to announce the concept of liquidity that underpins its policy.
नोटांवर आंबेडकरांचे छायाचित्र हवे
'अमेरिकेतील प्रत्येक राष्ट्रपुरुषाचे एका चलनावर छायाचित्र आहे; त्याप्रमाणेच भारतातही डॉ. बाबासाहेब आंबेडकर यांचेही छायाचित्र नोटांवर छापावे,' अशी इच्छा नियोजन आयोगाचे सदस्य डॉ.नरेंद्र जाधव यांनी व्यक्त केली. पूर्वी याबाबत एक प्रस्तावही देण्यात आला होता. आपण यासाठी विशेष प्रयत्न करीत असून त्यावर आताच बोलणे योग्य नसल्याचे त्यांनी सांगितले ..........
Inflation indexed bonds: The nuts and bolts
Inflation indexed bonds protect both the principal invested and the interest against inflation. Even in a deflationary scenario, your principal will be protected and the RBI will return the amount you invest........
Wait, don't buy now
Being issued by the Reserve Bank of India, these bonds no doubt provide a safe, good way to start hedging against inflation. Deflation in India is unlikely, so there should be little worry about returns declining over the tenor of the bonds. But in their current form, the bonds provide only a partial hedge against inflation and not a perfect one...........
The deterioration in Indian banks
...........The Reserve Bank of India (RBI) has done well to begin making it tougher for banks to brush their problems under the carpet. The central bank on Thursday tightened the rules for corporate debt recasts, asking banks to set aside more money for restructured loans as well as making promoters of companies personally liable for loan losses. This follows an earlier decision in November to increase provisioning for restructured assets..............
India’s great banking divide
.............There are two sets of banks in India—the state-run banks, and private sector (both old and new) and foreign banks. If their earnings for the March quarter are anything to go by, it’s evident that private banks are in a better position to manage their operations in a slowing economy than their counterparts in the public sector that account for close to 70% of the Indian banking industry’s assets............
Finance Ministry seeks RBI nod for all-women bank
............"The committee set up to prepare the blueprint for the all-women bank has submitted its report to the Finance Minister. We have sought in-principle approval from the RBI for the all women bank," Financial Services Secretary Rajiv Takru said............
RBI extends deadline for banks to allot unique ID to customer
.......“Keeping in view the constraints, the time for completing the process of allotting UCIC to existing customers is extended up to March 31, 2014. We, however, reiterate that UCIC should be allotted to all customers while entering into new relationships,”............
Double trouble for economy
............“The next factors to watch out for will be how the monsoon progresses and whether the Union government comes out with any measures. Of course, what the RBI does next month will also play a major role,’’..........
Chidambaram’s problem: Taxing investors, yet wooing MNCs for FDI
Over the past five months, finance minister P Chidambaram has stepped into the role of an aggressive door-to-door salesman. Beginning January, the FM, with select officials from his ministry and the Reserve Bank of India (RBI) in tow, has toured Canada, the US, the UK, France, Germany, Japan, Singapore, Hong Kong and Qatar. The single-point agenda of the whirlwind tour: to hard-sell the India story...........
RBI may cut repo by 25 bps in June 17 review: Care Ratings
"With WPI (wholesale price index) headline inflation moderating and falling below 5 per cent, the RBI, seeking to balance a growth-inflation trade-off, now appears to be focusing on the former," Care Ratings said in a note here..........
India’s stagflation calls for Volcker pill
......The US experience shows that near term economic pain may be unavoidable to sustain-ably cure stagflation. Absent such action, economies are likely to function in a sub-par manner and bounce along in a volatile manner with significant levels of imbalances/disequilibria. In India, the Reserve Bank of India is nowhere near attempting what the US Fed did in the 1979-1982 period.........
Four Iranian banks plan to open branches in India
.........ˈFour Iranian banks look forward to opening branches in India. However, due to the cumbersome procedures and guidelines of the Reserve Bank of India (RBI), they are unable to start operations,ˈ Masood Khaleqi, Iran Consul General said while speaking at a function organised by industry lobby All India Association of Industries (AIAI) in Mumbai, capital city of Maharashtra state, ...........
Government to replace % with grades to calculate GDP growth
..........Prime Minister Dr. Manmohan Singh, who is also rumored to be an economist, has welcomed the new system and declared its adoption with immediate effect. He wondered why someone as sharp as Montek Singh Ahluwalia couldn’t come up with this earlier.............
Surat Nagrik Bank to merge with Mehsana bank
SNB will be the first of the 15 suspended banks by RBI to get back to work in the last decade. With no objections received in stipulated 30 days time limit to object merger, the bank will start functioning with the new name with the same staff. RBI had suspended SNB from clearing house following a negative balance sheet on May 1, 2013........
SEBI at 25, still on a learning curve
............The RBI might not have had the mandate to regulate capital market or for that matter insurance. But until the SEBI and the Insurance Regulatory and Development Authority (IRDA) came into being, regulation in those areas was slack, and the RBI, because of its sheer stature, was presumed to have the final say in all matters, even those not directly connected to its core areas of banking and monetary policy.........
MCA to companies: Declare public fund raising in compliance to Sebi, RBI norms
NEW DELHI: In the wake of huge public money being raised through various ponzi schemes, the government has made it mandatory for new companies to give declarations that no funds would be collected without meeting the applicable norms of Sebi, RBI and other authorities.........
Protecting customers from 'banksters'
......The RBI issued a separate master circular on customer services in July last year, a 95-page clerical masterpiece that even includes a "Format for Comprehensive Notice Board" at the branches. But not a word about distribution of third-party products; as though malpractices in such distribution don't even exist. By the way, the RBI does not even mandate that banks should not sell unregulated products. The RBI has promoted something called Banking Codes and Standards Board of India. BCSBI has a 39-page banking code on customer services. There are two small problems with it: one, the code is voluntary; and two, there is not a word in it about ethical selling of third-party products. The RBI's message to banks: mis-selling is not an important issue to the regulator............
My View on "RBI advisory cautions public on depositing money with entities"
.......GOI, RBI, state governments and banks need to do much more to create awareness among the public about the cheats in the financial sector, perhaps in a much more intensified way than the recent RBI initiative to promote financial inclusion ...........
RBI TIGHTENS NORMS FOR AGGRESSIVE SALE OF GOLD COINS AND INSURANCE PRODUCTS - THESE PONZI LIKE SCHEMES MUST BE BANNED
......... These things have now come to light after the Cobrapost sting operation. Now even CMDs / EDs / GMs can not put the same under carpet, which they did when I first wrote last year. Even after the Cobrapost sting, Mr K. C. Chakrabarty, DG at RBI, tried to give clean chit to three banks. Was he afraid that fire may not reach back to the period when he headed two large banks in India? Thank God, he miserably failed in his attempt in giving clean chit to such banks, and RBI Governor over-ruled him and has agreed that these banks indeed flouted the norms...........
Little hope for Saradha revival
......The year 2003 turned out to be a historic year for Peerless. It was able to announce a full turnaround. Ghosh was able to deliver within the seven years time that he had taken from RBI. The annual general meeting that year which took on record the accounts for 2002-03 sent a powerful message through the financial sector and the media picked it up...........
Soon, just wave your card and pay
A wave and your payment is done. No more having to swipe your credit or debit card or inserting them in a point-of-sale device. This is thanks to the wireless antenna embedded in your card. This contactless payment technology feature — VISA payWave — is now being considered by banks for the Indian market......
Syndicate Bank plans gold, e-term deposits
Syndicate Bank is planning to introduce electronic term deposit (e-term deposit) and also gold deposit at a later date, after the RBI has finalised the guidelines, according to M. Anjaneya Prasad, Executive Director............
More Indian men shop online than women: Survey
..... Though the sample size is small, contrary to popular belief, Indian men beat women when it came to online shopping. While only 61 per cent women purchased 2.2 items each online in the three months, 75.1 per cent men had bought 3.4 products each.........
Cops detect big land deals by families in a day
............The DIG said that the multinational banks were contacted to seek details of accounts in which huge remittance were flowing from abroad. In view of major reluctance shown by such banks in sharing information, the officials decided to seek help from the Reserve Bank of India............
Mainstream recognition of innovators? Yes, please!
................One of the anthropologists had claimed ownership of his collection of stories, but later another scientist republished his collection and offered that to his family. Maybe, Governor of Reserve Bank of India is reading this note and may issue a similar currency note in India. More on that later, but don’t be surprised if one of these days, you find Rs50 note having photo of one of the many innovators at grassroots. Symbols matter. This will make a difference, no doubt, in modifying the societal attitudes towards creative people at grassroots............
Delhi con man on the run for 10 yrs arrested in Mansa
..............Mansa SSP Narinder Bhargava said Vijay, who faced more than a dozen cases, lured the innocent people to invest heavily in his venture. However, the Reserve Bank of India banned GVG from collecting money from people in 1997 but that did not stop Vijay from collecting money and he purchased properties..................
Canara Bank to charge annual fee on debit cards
State-owned Canara Bank will levy about Rs 112 annual fee on its ATM debit cards from July 1. The bank, which currently issues the cards free of cost, said in a circular that a need has been felt to offer the services at competitive rates in tune with “market trends.”................
Positive change for domestic sector
..............The Reserve Bank of India widened the interest subvention scheme to include six more tariff lines in the textile sector and 101 more in the engineering sector. The dispensation will help exporters' access to pre-shipment credit at lower interest rates. Meanwhile, the development commissioner of the SEEPZ Special Economic Zone says gold and jewellery units must achieve a certain minimum value addition, a condition that comes as a surprise, as the SEZ laws prescribe only positive net foreign exchange earnings.
I-T dept to file court cases against bankers, depositors
The Income Tax department will file court cases for "wilful evasion of taxes" against depositors and those bank authorities who have been found guilty in an RBI probe following allegations of money laundering in a sting operation conducted by an online portal.............
What are bitcoins?
..........The currency would neither have had time to accrue a community of its users nor the time needed to attain a stable value that can be useful when transacting. Another way to look at it is because bitcoins have no central issuing authority, like RBI for the rupee, regulating the value of the currency after letting it become monopolised would be difficult. The coin doesn't have an intrinsic value but provides value to transactions. The only other form of currency - the one issued by governments - represents value that can be ascertained by government-approved institutions like banks. This shows itself as a processing fee when you're wiring money between two accounts, for instance..............
Saturday, June 1, 2013
RBI's robot service to answer queries
PATNA: Have you recently received any message on your cellphone or e-mail that you have won a big prize? Better consult Junior before claiming the prize money. Junior is the new interactive robot, launched by the RBI here on Friday, which organizes its own 'Pathshala' to make people "financially educated"...........
Read - TOI
Mint’s capacity constraint puts the squeeze on coins
The Reserve Bank of India cannot start phasing out lower denomination notes in favour of coins until the mint increases its capacity to produce more coins, a top apex bank official said. Although the RBI has been pressing for coins in place of lower denomination notes (including ten rupee notes), because coins last longer, the phase out will have to wait till the mint cranks up capacity, said RBI deputy governor K C Chakrabarty.............
Poor rupee seems to make the rich richer
RBI guv's dim outlook nudges Rs the wrong way
........The RBI governor’s remark is an obvious pointer that the government needs to curtail its expenditure to bring down the deficit, keeping aside the politics of subsidy and other populous non-plan expenditure. “Managing the politics of fiscal consolidation is the real challenge, especially in India’s vigorous and vast democracy,” he added. Earlier, he had also said that.............
Rating downgrade risks have abated, says Urjit Patel
..........“Domestic growth for FY14 is expected to come in at 6.1-6.7 per cent,” said Urjit Patel, deputy governor of RBI, addressing investors at Nomura’s two-day conference that concluded on May 29. Patel ascribed the current slowdown in domestic growth to weak export growth, widening trade deficit and a weak rupee............
Classroom Coaching Institute For RBI Assistant Exam 2013
Crash Course Classroom Coaching Institute For RBI Assistant Exam 2013 In Kolkata.................
Read.........
Religare's banking bid under Ranbaxy cloud
The promoters of Religare Enterprises will face an uphill task in satisfying the ‘fit and proper’ criteria prescribed by the Reserve Bank of India (RBI) for new bank licence applications, due to the various troubles of Ranbaxy, their earlier venture, with the US drug regulator...........
RBI to clarify on new bank licensing norms on June 3
..........RBI said it had received a large number of queries from the aspirants seeking clarifications on the guidelines. ""The queries have since been examined and the clarifications would be posted on the RBI website on June 03, 2013,"" it said...........
Another headache for banks: Bad loans to surge as RBI tightens recast norms
.........To discourage banks from liberally restructuring loans, RBI has said that from April 2015 an account will have to be classified as sub-standard as soon as it is restructured. A standard asset on restructuring would be immediately classified as sub-standard as also non-performing assets. Any recast will push the loan account into further lower category unlike the existing norms wherein standard loans are allowed to retain their status on restructuring. Non-performing accounts too are currently allowed not to deteriorate further in asset classification, which are generally of four types: standard, sub-standard, doubtful and bad assets............
RBI's new provisioning norms are badly timed
..........From a bank’s point of view, they are keen on protecting depositors’ money. But such stringent norms have only led to proliferation of ‘parallel banking’ where the players have their own ways of loan recovery. ............
Check before depositing money with NBFCs: RBI
.........In the latest one, RBI has warned not to fall prey to fictitious offers promising unsustainable returns by individuals, unincorporated bodies and companies. Currently, the maximum interest an NBFC can pay to a depositor should not exceed 12.5 per cent. The RBI keeps changing these rates, depending on the macro economic environment............
Only government policy can get the economy out of a rut
..........What is increasingly evident is that the key determinants of a big turnaround are going to be the Union and state governments. Sensible policies and timely clearances will do more to improve sentiments and attract investment than looking towards RBI for a miracle.
Read - Business Today
RBI to have more space for pro-growth policies, says PM
..............In what could be a clear signal to the Reserve Bank of India (RBI) ahead of its mid-quarter monetary policy on June 17, Prime Minister Manmohan Singh said today he believed the central bank would have more space available to pursue pro-growth policies, as inflation was coming under greater control. Asked whether RBI was behind the curve in the growth versus inflation dynamics, Singh said he "respects the judgment of the central bank, which decides the monetary policy. But...........
The 5% GDP problem: RBI can’t solve it, ball in Chidu’s court
..........Subbarao, who did play ball with the government over the past few monetary policy reviews by cutting the benchmark repo rate thrice since the beginning of 2013, seems to be saying that given the looming risks to the economy, RBI has done whatever it could, but could not be expected to continue its monetary easing policy if risks mounted. And Subbarao is dead right..........
Banks get more time to complete customer code processing
...........The extension till March 31, 2014, comes in the wake of some banks expressing difficulties in implementing UCIC for their customers, for various reasons. The RBI, however, reiterated that UCIC should be allotted to all customers while entering into new relationships...........
RBI directive to banks on TDS
..........“ Despite submission of Form 15-G/15-H by customers, banks are deducting tax at source, at times. Such instances arise because either the forms are misplaced or a track is not kept of forms received in the branches,” the RBI said in a notification..........
ICICI Bank offers over 20% salary hike to top management
ICICI Bank, India's largest private sector bank, has proposed a pay hike of over 20% to its top management team just months before issue of new bank licences to corporate houses by the Reserve Bank of India. The board of directors have rewarded Chanda Kochhar, the managing director and chief executive offer of the bank with a 20.75% salary hike to Rs 5.12 crore in 2013. The board has also decided to raise the minimum and maximum range of monthly supplementary allowance for Kochhar to Rs 10-18 lakh from about Rs 8.70 lakh per month............
IIMK workshop for bankers
......The objective of the leadership clinic was not to teach banking to the bank veterans with 30-35 years of experience, but enabling them with alternative dimensions of leadership and how these leadership qualities can be put to better use........
The home loan dynamics
Every borrower’s eyes are always fixed on the RBI policy and the interest rate, particularly while taking home loans because every per cent saved leads to several hundred rupees of saving hard-earned money. The RBI, on its part, keenly watches the inflation levels. It is good news when the inflation subsides for the economy as a whole as also for those who seek borrowings at cheaper rates..........
Friday, May 31, 2013
Is our public debt a Ponzi ? - S. S. TARAPORE
..........While work in the Reserve Bank of India (RBI), in the latter part of the 1980s, by A. Seshan, C. Rangarajan and N. D. Jadhav highlighted the possibility of explosion of internal public debt, no specific scheme on debt repayment was worked out. The RBI attempted some tentative work in the late 1980s to evolve a scheme for debt repayment, but it could not find a satisfactory resolution. Work in the RBI continued in the first half of the 1990s and in 1996 the RBI came up with a comprehensive scheme of a Consolidated Sinking Fund (CSF) which would, over time, become self-sustaining...............
India’s Human Cash Machines
.........At a conference Tuesday of 90 banking correspondents and banks, organized by the Reserve Bank of India in Pune, correspondents said that they hadn’t been trained to use the hand-held devices or how to sell banking products. But the most frequent complaint among them was a delay in salary payments. The meeting was an attempt to understand what’s happening at the grassroots level and improve the banking correspondent system, Reserve Bank of India Governor Duvvuri Subbarao, said................
Mann Deshi Bank opens first branch in Pune
After the grand success of chamber of commerce, bank and business school for rural women entrepreneurs Mann Deshi Bank has now started its operations in urban areas by opening first branch Pune. The branch will help Mann Deshi to scale and expand its operations. This will be the bank's seventh branch with other six branches in remote areas of Maharashtra like Mhaswad, Dahiwadi, Waduj, Godavale, Lonand and Satara. Most importantly, Mann Deshi have started operations where other banks were already present but had refused to accommodate lower income group individuals as their customers..........
Reserve Bank Staff Quarters School has achieved 100% result in the CBSE 10 std Examination
Info courtesy - Shri S.Venugopalan (EXRBITES Group), Chennai (Ph: +91 44 42151321)
Manmohan Singh: A legacy of records
......Then prime minister P.V. Narasimha Rao, who already had a blueprint for reforms (inherited from the outgoing regime led by Chandra Shekhar), first turned to I.G. Patel, who declined the job on account of failing health. Patel recommended Singh. The rest is history. The dramatic turnaround of the economy, together with Singh’s understated demeanour, made him the darling of the middle class and the Congress party............
UFBU MISERABLY FAILS IN THE FIRST ROUND ITSELF
......Vide Circular No 7 dated 22/04/2013, UFBU informed the cadre that a meeting with IBA has taken place wherein IBA informed that the total establishment expenditure / wage bill of the public sector banks as on 31/03/2012 is Rs 56,292 crores which will be the basis of negotiations. Thus, assuming that UFBU is able to extract 20% wage hike, the total benefit to workmen and officers will be Rs 11258 crores or about Rs 1,000 crores per month. Considering that the rate of interest on FDs for staff is around 9%, the bankers are losing Rs 90 crores per month in the shape of interest alone.............
Read........
My View on 'Total overhaul of existing financial system needed'
There could hardly be any dispute over Justice Srikrishna’s view expressed as under:
“Therefore, you need something that is drastic, something that is total overhaul of the existing financial system," But, FSLRC missed the opportunity to do this. Going round and round the idea of destabilizing the central bank (RBI) which is the only institution functioning satisfactorily and cutting and pasting recent innovations elsewhere brought about in different contexts and refusing to do the strenuous task of looking at India-specific issues and country-specific solutions for them, the Commission ended up where it started the work !
- M.G.Warrier
RBI asks banks to expand internet, mobile banking reach
........."We are going through an era of technological revolution," said RBI Deputy Governor H R Khan at a workshop on e-Banking organised by Bank of India here on Thursday. "And mobile and internet penetration is on the rise in the country. Therefore, banks need to formulate strategies to popularize mobile and internet based banking services." Khan asked banks to also focus on elderly and pensioners besides urban clientele...............
'RBI for more White Label ATMs in state'
.........The move is aimed at encouraging personal banking among people, according to RBI's Deputy Governor H R Khan, who was in the city to address the awareness programme on electronic banking, called e-Baat, organized by Bank of India (BOI). Khan said the RBI's aim is to give to the people the privilege of "anytime, anywhere banking" but the only requirement is that one should have a mobile phone. This facility, according to Khan, will make banking a queue-less procedure.............
Bank Customers can ask for CCTV Recording of ATM Transactions in India
..........."At present, there is no provision for the complainant to request for the CCTV / Camera Images in the Complaint Form for ATM disputed transactions. In this regard, the Member Banks are advised to make a provision in the "Customer Complaint Form" for the complainant to raise a request for the CCTV/Camera Images if the customer so desires at the time of submitting the Complaint Form to the Issuing Bank".........
Acquiring Banks to Provide Details of Three Transactions before and after Failed ATM Transaction
.....The circular states that as per the requirement of Customer Service Department of Reserve Bank of India, some changes are necessitated in the Representment related process. At the time of Representment (time of responding to the complaint), the Acquiring Bank must provide three transactions before and three transactions after the Disputed Transaction in the EJ / JP Logs......
RBI to focus on containing inflation, CAD: Subbarao
......"Growth is significantly moderated, inflation is somewhat off its peak but there are several upside risk factors, the balance of payments is under stress and investments have to pick up," ...........
Some truth in Cobrapost expose, will take action: D Subbarao, RBI
......."We have done study of those banks, investigated them ... We have done a larger study of those banks and we have issued notices to the bank managements and shall take appropriate actions,"...............
Banks opened accounts for different customers with same PAN: RBI report
....The study has also revealed a nexus between co-operative banks and commercial banks. Central Bank, for instance, opened 200 accounts of the Sahara Credit Cooperative Society in different branches and on many occasions, high-value deposits were made into these accounts. The RBI has also found that a few banks gave employees incentives to encourage the sale of third party products like insurance and mutual funds, sale of gold coins with the incentives taking the form of foreign training or white goods...........
Subbarao's grim prognosis sends rupee tumbling to 10-month low
...........The Governor said, "Growth is significantly moderated, inflation is somewhat off its peak but there are several upside risk factors, the balance of payments is under stress and investments have to pick up." The comments sent the rupee tumbling by 21 paise to end at new 10-month low of 56.38 against the dollar. Coming just a day before the government releases the data for the fourth quarter GDP for 2012-13 it was an affirmation that the numbers would be dismal...............
We can’t take soft prices for granted, says Subbarao
............Reserve Bank of India Governor D. Subbarao, on Thursday, warned of upside risks to inflation and expressed worry over the high current account deficit, denting hopes for rate cuts and sending bond yields to a two-week high and the rupee to a ten-month low.........
When the RBI chief got 'pink slips'
The last thing RBI Governor Duvvuri Subbarao, who came to deliver a lecture on "India's Macroeconomic Challenges — RBI perspective" in Ahmedabad, expected was some 50 pink slips in a matter of 10 minutes after his talk at the Ahmedabad Management Association (AMA) building. But the pink slips were in fact questions posed by the audience after his speech on Thursday. The significance of the pink slip remark came to a pass as the RBI chief started by recalling that within days of his appointment to the RBI top post in August 2008, a series of economic downturns took place, starting with the collapse of Lehmann Brothers in USA in September that year signalling the start of the global recession. Even as the motley audience consisting of bankers, businessmen and students tittered at this piece of information, he added that no sooner had the economic situation in India bounced back, he was again reinstated in the Governor's post for two more years in August 2011 after which the country is now battling another economic crisis. As the room drowned in raucous laughter to this pronouncement, D Subbarao delivered the final punch as he said, "Now I don't have to tell you when the economic situation here is going to improve, as you can already guess!"
India can still grow at 7-8% or even more: Subbarao
......Enumerating the challenges faced by the Indian economy, Reserve Bank of India (RBI) governor Duvvuri Subbarao today said the ‘India Growth Story’ was still intact. Speaking at the 12th RL Sanghvi Endowment AMA Lecture on Economics here, he added that India could still grow by seven-eight per cent or even in double digits annually.......
Apex bank to wait for banks to "revert and rectify" violations
The Reserve Bank of India will wait for banks to "revert and rectify" violations brought to light in a recent study authorized by it and only take action in case the errors lead to serious repercussions. According to top RBI sources, the know-your-customer and other violations committed by as many as 30 private and state-owned banks - as indicated by a report "inspected" by the apex bank - will attract action only if the errors went beyond "transactional" lapses into something more serious ..........
RBI sets stiff norm for debt recast
......These steps were suggested by the Mahapatra committee of loan restructuring which the central bank has now accepted and implemented despite banks having reservation on the recommendations on the ground that the economy is passing through difficult times which has increased bad loans in the banking sector........
DCT will not lead to misuse of money: Montek
........Asked about the study highlighting problems faced by beneficiaries in opening bank accounts, he replied, "RBI has issued guidelines that the banks will open no frills account... opening a bank account and transacting in a bank will not be a problem (in coming days)." According to Ahluwalia, the direct benefit transfer scheme will be a game changer and a very important instrument for the financial inclusion of people of the country..............
I-bankers see opportunity in downturn
...........As the investment banking sector goes through a churn in the downturn, redundancies and job losses are becoming the norm. Several banks have pared their business, bringing down the curtains on the career of many............
RBI penalizes Bhilwara Mahila Urban Co-op Bank
Now it is Mahila Urban Cooperative Bank’s turn. So would it seem. The Reserve Bank of India has imposed a monetary penalty on the Bhilwara Mahila Urban Co-operative Bank Limited, Bhilwara............
The Break Out Formula
........The RBI deregulation provided wind to its sail but what has worked for Yes bank is its "knowledge banking", approach with a
focus on sectors like Food and Agribusiness, Engineering,
Infrastructure & Logistics, TMT (Technology, Media & Telecom)
and Healthcare. This well researched approach to sunrise sectors has
helped Yes Bank obtain domain expertise, and hence, through knowledge
arbitrage, the bank has customised solutions as per the client needs.
"It has also helped in managing risk in a better way, which
consequently led to creating a niche for itself through knowledge
banking.........
HDFC Bank's Puri continues to be highest paid Indian bank CEO
.....As per the Reserve Bank of India's (RBI) guidelines on compensation released in January, 2012 the performance bonus of private banks' chiefs is capped at 70 per cent of their fixed pay. Also, if the amount of performance bonus is more than 50 per cent of the chief executive's fixed pay, the bonus payment needs to be deferred over a period of time......
'State Bank approached to finance Vizhinjam Project'
....Chaudhuri said that at present the State Bank was supporting all ventures in Kerala as the majority of the deposits are from the state. On funding the flyovers in the state, he said that it depended on the funding pattern. Even if the Reserve Bank of India (RBI) cuts the repo rate, the interest rate will not come down. To make the Cash Reserve Ratio (CRR) more effective, there should be a system to provide interest rate by RBI for CRR........
Large MFIs may get to keep 12% margin cap this financial year
...........The Reserve Bank of India (RBI) might allow large microfinance institutions, or MFIs (with a loan book more than Rs 100 crore) to keep a margin cap of 12 per cent for this financial year. It is expected RBI would issue a notification in this regard soon...........
No fast rebound for India’s moribund economy
..........“It is imperative that both the government and the RBI get their acts together,” said Jyotinder Kaur, an economist with HDFC Bank, who believes the Reserve Bank of India (RBI) should take action to get money flowing into the real economy..........
Govt hopes inflation-linked bonds can curb gold buys
...............Ultimately, the government hopes the linkers will provide some alternative to gold, reducing demand for imports of the precious metal that have helped push India's current account deficit to worryingly high levels. India is looking at these auctions to professional investors as a way to settle on the right pricing before directly selling them to local households later this year............
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