.........Credit/ debit card skimming is financial industry's one of the major concerns and often results in forms of identity theft, credit card fraud or bank fraud. The magnetic stripe credit and debit cards store user's financial data in static format. This data is vulnerable to be copied during offline transactions by skimming devices, which can be used to create a clone card and make unauthorized offline transactions...................
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, June 12, 2013
Bank problems? You can file an online complaint now
..........How does the complaint mechanism work? Any individual, whether a customer of that particular bank or not, can lodge grievances against a bank using the SPGRS. Under this system, bank websites are to have an ‘SPGRS’ icon leading to an online form where grievances can be filed. Physical complaints received through complaint registers at branches are to be entered into the SPGRS immediately. The advantages of the SPGRS are numerous...........
Card issuers in a fix over Aadhaar
Credit
card issuing banks are in a fix over Reserve Bank of India’s move to
consider Aadhaar as an additional factor for authentication of credit
card transactions in shops. The reason — a huge investment in upgrading
credit card swipe machines and prospects of losing customers in states
where Aadhaar enrolment has been slow. RBI had constituted a
working group headed by Pulak Kumar Sinha, general manager, State Bank
of India, to study the feasibility of Aadhaar as an additional factor
for authentication of card-swiped transactions and the panel is set to
submit its report by the month-end............
Read - TOI
Read - TOI
Fewer customers revolving their credit card dues
.......It is estimated Indian customers who revolve their credit card payments account for 26 per cent of the total customer base. In terms of the amount, credit card dues were estimated at 52 per cent, with the rest being carried forward, said an industry official..........
HDFC Bank pitches toxic product to NRIs
Dr KC Chakrabarty, Deputy Governor RBI, tells customers to be wary of higher returns offered by banks. The global consultant who received this was certainly sceptical and checked with a fund manager who, in turn, sent it to Moneylife with this comment: “Is this real or is HDFC Bank pulling a 3-card trick?” A simple reading of the email suggests it is pitching a fixed deposit with a 5-year lock-in. We asked the Bank if the email was genuine...........
Axis Bank, HDFC Bank and ICICI Bank in focus after RBI penalty
Private sector banks Axis Bank, HDFC Bank and ICICI Bank will be in focus after the Reserve Bank of India (RBI) on Monday, 10 June 2013, said it has imposed a monetary penalty on these three private sector banks for violating Reserve Bank of India instructions. A penalty of Rs 5 crore has been imposed on Axis Bank, Rs 4.5 crore on HDFC Bank and Rs 1 crore on ICICI Bank............
Read | Business Standard
CAREER IN PUBLIC SECTOR BANKS
............In the last two decades Public Sector Banks in India have witnessed a transition from traditional banking to modern technology driven banking. Exposure to competition has made these banks re-engineer and re-structure their processes, systems and product line. After economic liberalization these banks have been given enough freedom to do so. However, for various matters these are required to follow guidelines issued by Ministry of Finance, Reserve Bank of India and Indian Banks Association. Post nationalisation, the Banks were asked to open more branches in rural areas. Large number of people were recruited to man these newly opened branches. Expanded network gave a new identity to these banks and millions of new customers came to the fold of Banking. The business of Banking moved from class banking to mass banking............
Are you FIT enough to be a bank director?
......“There is an urgent need for making the Boards of banks more contemporarily professional by inducting technical and specially qualified personnel. Efforts should be aimed at bringing about a blend of 'historical skills' set, i.e. regulation based representation of sectors like agriculture, SSI, cooperation etc. and the 'new skills' set, i.e. need based representation of skills such as, marketing, technology and systems, risk management, strategic planning, treasury operations, credit recovery etc.”.........
Tuesday, June 11, 2013
Distinguished intellectual former Deputy Governor no more...................
- P.P.Ramachandran (via e-mail)
Cobrapost expose: RBI imposes fine on Axis, HDFC, ICICI banks
The Reserve Bank on Monday imposed a fine of Rs 5 crore on Axis Bank, Rs 4.5 crore on HDFC Bank and Rs 1 crore on ICICI Bank for violation of KYC norms and anti-money laundering guidelines after inquiring into charges levelled by a online portal Cobrapost. “After considering the facts of each case ... Reserve Bank came to conclusion that some of the violations were substantiated and warranted imposition of monetary penalty...” the central bank said in a statement.............
Axis Bank, HDFC Bank and ICICI Bank fined, but get off lightly
........The paltry amounts are indeed surprising. Perhaps the RBI's purpose is merely naming and shaming and no more. In a late night release, the RBI added the investigation had not revealed any prima facie evidence of money laundering by the banks................
UCBs in CBI net for laundering money
.....Given that UCBs have immense penetration across the country, violations of norms and irregularities committed by them are ‘particularly grave’. There are 1,645 UCBs, more than 8,150 branches, R2 lakh crore of deposits and their advances are valued at R1.3 lakh crore. While the RBI has filed a criminal case against the UP-based Indian Mercantile Cooperative Bank, it was the Intelligence Bureau that had alerted the finance ministry about the scam. The modus operandi involved depositing and withdrawing money from accounts of fictitious individuals............
K C Chakrabarty Wants to Keep Penalties at "Peanut" Level - Advocates only Naming and Shaming of Shameless People
.......Mr Chakrabarty appears to be completely on the sides of the violators of banking norms. He wants the fines to be only for naming and shaming for violators. Can Chakrabarty explain why number of officers, who were charge sheeted during his tenure as ED and CMD of the banks headed by him, were given punishments of suspension and dismissal. Why he did not change the policies so that violators / fraudsters should have been merely named and shamed. In that case, all banks must have a BlackBoard wherein the violators /fraudsters are named and then they can continue their jobs of violating the norms or looting the bank.I am surprised that how can a person of such a high rank can issue statements in defiance of his seniors like RBI Governor and Secretary, Financial Services. Had he left his General Manager untouched, if he had dared to such statements which were against his public stand. I feel it tantamount to defiance of seniors. If he had any such views, he should have talked about these within four walls i.e. during the meetings with RBI Governor and Mr Takru.............
CENTRAL STAFFERS TO RETIRE AT 62
.....This will be the third time that the retirement age of the central staff is being raised and it is bound to have the cascading effect on the states coming under pressure from the employees'' associations to follow suit. It was raised from 55 to 58 by then Prime Minister Jawaharlal Nehru in 1962 after the war with China and then to 60 years by the then NDA government in 1998 on the recommendation of the central pay commission..........
My View on "Of bankers and bureaucrats" - Manohar Mahajan
A brilliant analyses by Dr. Haseeb Drabhu, who is not only a renowned economist and columnist but himself an astute banker of high repute having led the JK Bank to newer heights.
As rightly observed by Dr. Drabhu, banker bashing has become a fashion with the mandarins of Ministry of Finance, particularly the department of financial services (earlier Banking Department). One wonders whether Secretary level officials should ride a rough shod over sufficiently senior bankers, CMDs/EDs who themselves are supposed to be at par with Additional Secretaries level. These poor chaps never ever contradict or respond to the uncalled for criticism of their style of functioning. May be they look forward for some post-retirement positions from the Government and in their vain hope continue to bear the insult. In this regard I am reminded of an old story. It goes like this”
“In a village a washer-man was having a Dog and a Donkey. As usual, the dog would receive all the love of the washer-man and his family whereas the poor donkey would get all the flak and beating from the washer-man despite having carried load of clothes daily. One day the dog asked the donkey “why do you continue to remain with this cruel washer-man despite all his beatings and why don’t you leave him for some good and gentle man.”? The donkey replied, ”I know yaar,…. but I have a very bright future here with the washer man”. Dog was surprised and asked “what was that bright future you have here with the washer man” Donkey looked around and replied , “whenever, the washer man scolds his young daughter, he says that he will marry her with his Donkey”. And I am waiting for that fateful day.”
Once having been the CMDs of these banks, these officials should be debarred from seeking any officials position including directorship on corporate companies. Then only they will work fearlessly and judiciously for the betterment of the banks they head. In this connection, a pertinent question arises - why banks in the private sector have been doing generally better than their counterparts in public sector with the same set of Regulatory and supervisory prescriptions from RBI. According to me the difference lies obviously in the manner of ownership. While the private sector banks are answerable to the shareholders, who do not interfere in day to day management of the banks, whereas in public sector banks (though almost all of them have limited public share holdings), the Government being the major shareholder, its officials try to meddle in the micromanagement of these banks to boss over them and the top management of these public (sarkari) banks do not have freedom and independence of taking decisions. Therefore, the fault for poor show of PSBs likes in the backyard of the major share holder i.e the Government .It should first set its own house in order and leave the public sector banks take their own decisions. After all, how long the major share holder would continue to undermine the interests of the minority share holders and time has come when-" sarkari banko mein sarkari dakhalandazi band honi chahiye"
A brilliant analyses by Dr. Haseeb Drabhu, who is not only a renowned economist and columnist but himself an astute banker of high repute having led the JK Bank to newer heights. As rightly observed by Dr. Drabhu, banker bashing has become a fashion with the mandarins of Ministry of Finance, particularly the department of financial services (earlier Banking Department). One wonders whether Secretary level officials should ride a rough shod over sufficiently senior bankers, CMDs/EDs who themselves are supposed to be at par with Additional Secretaries level. These poor chaps never ever contradict or respond to the uncalled for criticism of their style of functioning. May be they look forward for some post-retirement positions from the Government and in their vain hope continue to bear the insult. In this regard I am reminded of an old story. It goes like this”
“In a village a washer-man was having a Dog and a Donkey. As usual, the dog would receive all the love of the washer-man and his family whereas the poor donkey would get all the flak and beating from the washer-man despite having carried load of clothes daily. One day the dog asked the donkey “ why do you continue to remain with this cruel washer-man despite all his beatings and why don’t you leave him for some good and gentle man.”? The donkey replied, ”I know yaar,…. but I have a very bright future here with the washer man”. Dog was surprised and asked “what was that bright future you have here with the washer man” Donkey looked around and replied , “whenever, the washer man scolds his young daughter, he says that he will marry her with his Donkey”. And I am waiting for that fateful day.”
Once having been the CMDs of these banks, these officials should be debarred from seeking any officials position including directorship on corporate companies. Then only they will work fearlessly and judiciously for the betterment of the banks they head. In this connection, a pertinent question arises - why banks in the private sector have been doing generally better than their counterparts in public sector with the same set of Regulatory and supervisory prescriptions from RBI. According to me the difference lies obviously in the manner of ownership. While the private sector banks are answerable to the shareholders, who do not interfere in day to day management of the banks, whereas in public sector banks (though almost all of them have limited public share holdings), the Government being the major shareholder, its officials try to meddle in the micromanagement of these banks to boss over them and the top management of these public (sarkari) banks do not have freedom and independence of taking decisions. Therefore, the fault for poor show of PSBs likes in the backyard of the major share holder i.e the Government .It should first set its own house in order and leave the public sector banks take their own decisions. After all, how long the major share holder would continue to undermine the interests of the minority share holders and time has come when-" sarkari banko mein sarkari dakhalandazi band honi chahiye"
- Manohar Mahajan
O P Bhatt joins Tata Steel as independent director
Tata Steel has appointed former SBI Chairman O P Bhatt as additional non-executive independent director in the company with effect from today...........
Banking as the new frontier
...........‘failure’ of the private sector to move into the expanding banking space has been attributed to two factors. The first is that the regulations and social obligations imposed on banking activity, and the caps on private shareholding and (more importantly) ‘voting rights’ are seen as having dissuaded private expansion.............
The demise of Rupee Cooperative Bank: A malady
.......Therefore, for cooperative banks, it will no longer be sufficient for RBI to be empowered to order the State Registrar of Cooperative Societies to liquidate, amalgamate or reconstruct a cooperative bank, or to supersede management. Instead, in order to be eligible for insurance from the Resolution Corporation), State governments will have to co-opt RBI as the banking regulator of cooperative banks in that state under law.............
Lifeline in sight for Rupee Bank patrons
......“It
is true that the Saraswat Cooperative Bank has shown interest in a
merger with the Rupee Bank. The Saraswat Bank will, however, have to
carry out due diligence of the Rupee Bank, which will help ascertain the
pros and cons of the merger,”............
Read - TOI
IT companies to benefit on weak rupee
.......... “Any company which generates a majority of its revenues in dollar- denominated markets will benefit if this sharp fall in rupee conversion rate continues. The only mitigating factor could be the hedging policies of some companies.”.............
India rupee in 'freefall' at record low against dollar
............The partially convertible Indian currency traded at a new low of 58.05 rupees to the dollar on Monday afternoon, sweeping past its previous low of 57.32 rupees hit on June 28. "This is a freefall," Abhishek Goenka, chief executive of consultancy firm India Forex Advisors, told AFP. The rupee's fall is the latest blow to the stuttering growth story of Asia's third largest economy, which has been beset by sharply slower growth, worsening public finances and political turmoil........................
Rupee fall: No reason to panic, says Mayaram
.........“I think this (sharp fall in rupee) is a panic in the market, which is unwarranted. I don’t think we should unduly get worried. We are watching the situation,” ...................
Finance ministry meets regulators, RBI on rupee
.....Among the measures discussed were the easing of rules for sovereign wealth funds that invest in India, the officials said. The meeting had been previously scheduled and was not in response to the rupee hitting a record low on Monday.
With rupee weak, RBI may have little room to cut interest rates
.... "A weak rupee will make oil imports expensive, which, in turn, will impact inflation. The RBI may not be comfortable cutting rates if inflation rises,".................
Rupee responses
Given recent tendencies, it was only a matter of time before the rupee fell below its previous low, touched a little under a year ago. When the downward trend first began in August 2011 and then intensified later that year, there was a strong opinion that the Reserve Bank of India (RBI) should take on the responsibility of containing the decline............
Dealing with the rupee
When P Chidambaram returned to the finance ministry last August, one of the questions he posed to his political colleagues was: what is your strategy if the rupee touches 60? This is what convinced the reluctant party to back the planned burst of reforms............
Rupee plunges to a record low, RBI prefers to stay away
.......As per latest data available from RBI, the central bank purchased $820 million in March and $518 million in April when the rupee appreciated by 0.15% and 0.87%, respectively. According to S S Tarapore, former deputy governor of the RBI, the currency is overvalued. “Adjusting for inflation rate differentials, the present nominal dollar-rupee rate should be closer to $1 = `70,” he wrote in a recent column.............
RBI should boost dollar supply: Assocham
......"Under these circumstances, RBI should actively sell dollar rather aggressively and tame the US currency. On its part, the finance ministry should continue to take more measures to encourage capital inflows. Only then, rupee will regain strength,".............
RBI tells banks to help firms hit by power crisis in AP
HYDERABAD, JUNE 10:
The Reserve Bank of India has asked banks in Andhra Pradesh to extend loans to companies which were hit by shortage of power. The direction follows a recent meeting with bankers conducted by RBI after a request referred to it by the Union Ministry of Commerce and Industry...................
Foodgrains stock, starvation and fate of the economy - Dr.T.V.Gopalakrishnan
..........The economy suffers in several ways for lack of imaginative thinking, planning and result oriented action. The food credit estimated at between Rs 70000 and Rs 90000 crores is nothing but a Non performing Asset of highest order which the economy cannot and should not bear. If these NPAs are added to the other NPAs of banks the amount would be staggering and it would not be an exaggeration to say that the amount would be sufficient to wipe out the entire fiscal deficit...................
Inflation-indexed bonds, a positive step: Moody’s
........But the credit effect is only expected to be incremental and gradual as the additional Rs 12,000-Rs 15,000 crore of planned inflation indexed bonds issuance equals only 2 per cent of Government debt issued this year. Last week’s issuance for Rs 1,000 crore was RBI’s first attempt at inflation-indexed issuance since an unsuccessful effort in 1997...............
Govt may take more steps to curb gold imports: Raghuram Rajan
Within days of hiking import duty on gold, Chief Economic Advisor Raghuram Rajan today said government could take more steps to curb demand for the precious metal amidst widening current account deficit. “We have taken number of measures to curb the import of gold. The government will never say its end of it,”.......
The threat to the central-bank brand
.........By extending well beyond their comfort zone, today’s central banks face unusual brand-management risks. Their prior ability to deliver on promises and expectations has made today’s financial markets take the forward pricing of the economy to levels that exceed what central bankers alone can reasonably deliver...........
RBI Penalises Hyderabad District Co-operative Central Bank
.........The Reserve Bank of India said it had issued a show cause notice to the bank in response to which the bank submitted a written reply. “After considering the facts of the case, the bank’s reply and personal submissions in the matter, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of the penalty,” it said in a statement...........
District central cooperative banks broke, farm loan lending far short of target
.......... Normally, it is the DCCBs which give the majority of lending. The banks are part of the three-tier structure of the cooperative sector. The National Bank for Agriculture Development (NABARD) is at the top. It funds the Maharashtra State Cooperative Bank (MSCB), which in turn finances DCCBs. Six DCCBs in the state are in crisis and may face derecognition by the RBI. These are the banks at Nagpur, Wardha, Buldhana, Jalna, Dhule and Nandurbar...............
Bank services are becoming expensive. Here’s the way out
.......If you feel your bank charges are too high, look for another bank. But, since most banks have increased charges, it’s going to be difficult to get all services free or at lower cost. Public sector banks may charge lower compared with most private and foreign banks, so you may give them a shot. These days a few public sector banks too offer a good level of service, almost at par with private banks. If you prefer staying with your own bank, may be it’s about time you move to net banking...........
Conmen held for duplicating credit, debit cards
HYDERABAD, JUNE 10:
Four persons including an HSBC Bank customer support executive in Madhapur here were arrested in Monday in connection with cloning and duplication of credit and debit cards, the police said............
Households account for 58.1 per cent of Indian bank deposits
Indian households’ deposits in banks are more than the combined quantum parked by the government and private sector. As per the latest RBI data, the household sector accounted for 58.1 per cent of the total deposits of Rs 64,10,967 crore in Indian banks as of March 2012.................
CIBIL: Customers Continue To Suffer
At Moneylife’s ‘Open House’ with RBI Deputy Governor Dr KC Chakrabarty on 3rd June, an angry customer stood up to complain about Credit Information Bureau of India Limited (CIBIL), which practically enjoys a monopoly of the credit bureau business. On 4th June, we received an angry letter from one Umesh Dhawan whose Rs5-lakh loan was rejected because he was shown as a defaulter by CIBIL...............
Window shopping for credit cards & loans
........Now, it is not known how Cibil exactly determines your credit score but a number of these requests within a very short span of time especially for unsecured credit (indicating hunger for credit) can have a negative impact on the credit score. But like all other things the impact of these enquiries will wane as time passes and it does not get converted into an actual loan..................
Rana Kapoor earned 25% more in FY13
Rana Kapoor, co-founder, managing director and chief executive of YES Bank, earned 25 per cent more salary in 2012-13 compared to a year earlier. He was paid Rs 1.79 crore as salary and allowances against Rs 1.43 crore in 2011-12. He got leave fare concession and was entitled to perquisites such as furnished leased accommodation and use of the bank’s car, provident fund and gratuity...............
Read | Business Standard
SBT stops e-mail instruction to transfer money
.......In order to protect depositors’ money and to prevent frauds, the facility of transfer of funds based on e-mail instructions from customers has been stopped henceforth,............
Monday, June 10, 2013
RBI, Sebi Oppose FSLRC’s Suggestions to Amend Laws
India’s
lead financial regulators — the Reserve Bank of India (RBI) and the
Securities and Exchange Board of India (Sebi) — have opposed some of the
key recommendations of a commission constituted by the government to
amend financial sector laws, saying they are illconceived and could
undermine the authority of regulators.............
Read - ET
Read - ET
Interaction programme about formulation of monetary policy
........The programme was graced by Dr O.K.Medhi, Gauhati University Vice Chancellor, supported by Professor Archana Sharma, Head of the Economics Department, G.U. The team from the central office for this programme was headed by Deepak Mohanty, Executive Director supported Dr BK Bhoi, Adviser Monetary Policy Department and Sangeeta Das, Director, Department of Communication, RBI. PK Jena, Regional Director, RBI Guwahati was an integral part of the team..............
Economic crisis will be over once I retire, jokes RBI chief
When will India see an end to the economic crisis? As this poser was put to RBI Governor D Subba Rao on Friday, he quipped, “The moment I’m out of the RBI.” Addressing an alumni gathering of the Institute of Public Enterprise, Hyderabad, the man steering the country’s top bank joked that the crisis came to India the moment he was made the RBI chief..............
RBI to come out with paper on banking structure: D Subbarao
......My take on that will be told very clearly when the RBI comes out with the paper. It's a paper about the banking structure for India. We are going to bring it out in the next one month where we will address these issues or at least define the issues for discussion," ............
‘It’s the right time for a discussion paper on the banking sector’
........At no other point has the banking industry been so concerned about the future: entry of corporates, subsidiarisation of foreign banks. Then there is the FSLRC proposal on ownership neutrality, which can bring about a paradigm shift. The discussion paper has an ambitious agenda and presents a timely opportunity for existing and aspiring players to formulate strategy..........
Banking licences: Question of earnestness
Now that the Reserve Bank of India (RBI) issued clarifications on new bank licences — in response to the 443-odd questions it received from 34 potential applicants — one thing has emerged very clear that the banking regulator will not make any relaxations with regard to cash reserve ratio (CRR) and statutory liquidity ratio (SLR)..................
My View on "Who Would Audit the Central Bank?":..............
Old timers would vouch for the above comments of Shri AC.RBI traditionally had been "Reserve" Kanjoos and would think hundred times the repercussions of its decision to extend some financial benefit to its staff. In the past whenever employees association would ask for some facility on the line of GOI employees, the Bank would say it was not available in the Banking Industry and when some facility from the Banking Industry was asked for, the Bank would plead that GOI would not approve. That showed that how sensitive the Bank was to any extra expenditure howsoever justified that might be.That is to say that despite sitting on the mountains of money, the Bank has been very cautious in its expenditure.
There had been attempts in the past advocating to bring RBI within the purview of CAG Audit (during 1992 securities scam also). But the Government of day did not find favour with such moves and wanted RBI to have its own autonomy.
Things appear to have changed now. With Governor,RBI not yielding to MOF, the whole machinery seems to have become hostile to RBI and somehow want to force RBI in submissiveness. Report of the FSLRC is another attempt in this direction. When RBI the central bank of our country is made to forego its independence, that will be black day in our history. May good sense prevail upon them who are out to destroy RBI, an outstanding institution nurtured over years.
There had been attempts in the past advocating to bring RBI within the purview of CAG Audit (during 1992 securities scam also). But the Government of day did not find favour with such moves and wanted RBI to have its own autonomy.
Things appear to have changed now. With Governor,RBI not yielding to MOF, the whole machinery seems to have become hostile to RBI and somehow want to force RBI in submissiveness. Report of the FSLRC is another attempt in this direction. When RBI the central bank of our country is made to forego its independence, that will be black day in our history. May good sense prevail upon them who are out to destroy RBI, an outstanding institution nurtured over years.
- Manohar Mahajan
Don’t bank on it
.........While an independent perspective is generally a good thing, it is difficult to see how this bunch of wise men and women will do much better than the galaxy of independent directors that have adorned the boards of both PSU and private firms while contributing little.......
Is India under-banked?
..........In any case, as is well known, bank promoters have a free ‘put’ option. If a bank succeeds, glory to them; if it fails, the RBI is there to pick up the pieces. So mis-governance is cost and punishment free. Who wouldn’t jump at the opportunity?..........
Read more............
Tough norms leave NBFCs’ banking hopes in a muddle
............"We don't want to lose our customer base. We think RBI should allow us to operate like this if the true vision is financial inclusion."............
New banks not a good idea to bet on
The Reserve Bank of India’s (RBI) move to issue new bank licences, paving the way to better efficiencies, product innovations and more banking inclusion, promises a lot of business prospects, but bank licensing as an investment theme may not be a very exciting idea for equity investors, at least in the near term.................
RBI issues new coins, notes
The Reserve Bank of India here has announced issue of new coins of Rs. 5 denomination to commemorate the occasion of the Shri Mata Vaishno Devi Shrine Board’s silver jubilee and of banknotes of Rs. 10 denomination in the Mahatma Gandhi Series-2005 with the Rupee symbol....
Of bankers and bureaucrats
........Earlier, his predecessor, D.K. Mittal, had made a virtue of issuing detailed directions to state-owned banks on operational matters such as capping bulk deposits at 10% of the total deposits. So specific were the letters that even the Reserve Bank of India (RBI) was, for a change, offended and decided to speak out. There are two issues involved here. First, such interventions are a clear violation of the basic principle of corporate governance: the separation of ownership and management. Even if the government of India, represented by the finance ministry is the largest shareholder, it cannot get into the operational management of banks. What is being done through these periodic outbursts is to muscle in and micromanage public sector banks. Not only does this violate corporate governance, it weakens the authority of RBI as the regulator...........
Ponzi menace needs better surveillance, not new regulator: RBI
..............“I would say, may be, we should look at the laws once again. What I am saying is that it (amendment to laws) is necessary but not sufficient. Sufficiency conditions will be met by more effective surveillance and enforcement of law and catch unlawful schemes.”
Daunting task ahead for Sen Commission
.......Mamata’s announcement of a Rs. 500- crore relief fund for the affected and her decision to provide compensation starting from the poorest among them has only complicated matters for the commission. Such measures could run into a legal wrangle as questions have been raised whether the state can provide compensation to those who have invested in companies that do not have clearance from the Securities and Exchange Board of India (Sebi) or the Reserve Bank of India (RBI)..............
Do the urban poor contribute?
India's urban poverty is over 25 per cent. Rightly, the Reserve Bank of India has asked banks to bring metropolitan areas under the lead bank scheme for the first time since 1969, a move aimed at providing to the urban poor doorstep banking and direct transfer of cash benefits under social welfare programmes. The central bank has admitted that financial exclusion is not merely a rural phenomenon. Since policy makers have always viewed the urban poor as burdens on public services and infrastructure, the apex bank's initiative is a step in the right direction.............
When two cats fight , what happens?
Nobody
is bothered about the pensioners. Takru had earlier indicated that 100%
DA neutralisation for the pensioners who retired before 2002 could be
considered only if the expenditure is met out of load. Now nobody is
prepared to share the load for this purpose and this item has to be
dealt with separately. Older pensioners condemned to survive on tapering DA. Further, GOI insists that Unions can only talk about Scale 1 to 3 officers only. I
feel this is
correct. In the previous revision, IBA insisted that terminal end of
GMs should be at Rs 54,400 whereas Unions wanted it to be Rs 47,000.
Ultimately IBA prevailed over the Unions to let it be Rs 52000 because a
certain amount of parity has to be maintained with Govt Officials. If
the Unions have their way, they would pull down all senior officers as
they wanted the quantum of rise should be precisely to be the same for
all grades. GOI does not follow this practice as it accepted a factor
of 1.86 for junior officers and maximum of 2.61 for apex officers while
merging DA in case of Sixth Pay Commission. Because
of their wrangling, we also got a max of Rs 52000 only which was
sweetened by Grade Allowance and SCA making us hybrid between IBA pay
scales and Sixth Pay Commission pay scales.
It seems Takru would be
the sole judge in wrangling between Unions and IBA.
-Sitendra Kumar, EXRBITES Group
Wage Revision Xth BPS : Meeting Dated 7th June is Again Listless
.......... On the issue of demands of IBA, the leaders of UFBU have kept silence and not given any details and it appears that slowly they are moving towards accepting such demands as they have suggested that on these issues can be reverted later on. In the given circumstances I need not give my comments as things are crystal clear ...........
Read more..........
Read more..........
FM GIVES A SLAP ON THE FACE OF CMDs / EDs OF NATIONALISED BANKS WHO TILL YESTERDAY WERE PUNISHING OFFICERS FOR FAILING TO MEET TARGETS FOR SALE OF GOLD COINS
.........Now, I would like to know the views of the CMDs / EDs / GMs of all nationalised banks, who have beenencouraging such sales and even punishing officers who were slow in such sales. Is it not a slap on their face? We are happy that finally. RBI and GoI have fallen in line with our views. I hope CMDs / EDs will shed their narrow mind attitude and will listen to few honest voices around them. They have to start thinking in broader terms in the interest of the nation. This will come only if they are keep away the flatterers. I hope soon RBI and GoI will realise their mistakes on other issues like sale of third party products, cartelization in respect of saving interests etc. ..........
Structural imbalance hinders banks
............"structural imbalances in the Indian banking system's funding structure are diluting monetary policy transmission, crowding out corporates from the money market and discouraging long-term savings in the economy"............
Smart Money where it is headed
........This is reflected in equities taking a backseat in the HNI portfolio for now and safe haven investments such as deposits, gold coins and bars gaining traction in recent times. The measured and predictable pace of the Reserve Bank of India’s interest rate cuts have helped gilt and long term debt mutual funds deliver high returns and HNIs have flocked to them......
Pace of seeding Aadhaar numbers with bank accounts still a concern
.......Last month, the government had decided to pay a commission of one per cent to banks on the total amount transferred under DBT. The fee is paid to compensate banking correspondents (BCs) who would help implement the scheme. The commission has been envisaged as an interim measure.........
Fund diversion by HML: Government sends letters to Centre, RBI
The State Government, which had initiated proceedings against Harrisons Malayalam Ltd (HML) as per the directive of the Kerala High Court, has sent letters to various Union ministries and the Reserve Bank of India (RBI) against the alleged diversion of funds by the company to Ghana............
Don't blindly believe preliminary data
......If the picture offered by the private data flow is at variance with the preliminary government statistics, the chances are very high that the private data presents a picture closer to reality. So in those cases, assume the government data is off-kilter........
Get ready to pay more for basic banking
If it was not enough that you paid more for eating out at an air-conditioned restaurant due to the introduction of service tax on them or for choosing your seat in an airline, get ready to pay more for basic banking services too. A quick survey showed Mint Money that at least 13 banks this year so far have either increased or revised their service charges or have started charging fees for services that were earlier free..........
Is gold losing sheen?
....But for the Indian consumer as well as investor, gold is a complex issue mired in both age old traditions as well as new age investment philosophies. While on the one hand, the recent spike in gold demand is blamed for the burgeoning current account deficit – which is the main cause for fuelling such stringent measures by the government, traditionally gold is considered auspicious and is bought for weddings and special occasions as well as festivals such as Akshaya Tritiya and Dhanteras. Not surprisingly then, India is the world's largest consumer of gold. The question then is that in view of the latest round of government measures has gold lost its sheen?.........
DC debates whether gold imports in India should be restricted or not?
...While Assocham fully shared the concerns of the government and thought that some of the measures taken by the RBI and the finance ministry had become imperative, it underscored the need for a lasting solution, which would come in the form of finding new avenues of saving and investment. It found that the newly-announced inflation indexed bonds would not fit the bill, since the instruments have a long maturity period, while the secondary bond market in the country has not developed for the retail investors............
Cut costs by banking online
Did
you know that approaching a bank branch to get a duplicate account
statement can cost you around 100, while the same could be had at half
the price through online banking? Similarly, a stop payment request that
costs upwards of 50 through traditional banking channels is a free
service for those who opt for Net banking. There are many other banking
services where you can save money by opting for Net banking (see table).
However, most people, especially those who prefer branch banking, don’t
even realise they are paying for these services or that their costs are
adding up unless they peruse their quarterly bank statements carefully...........
Read - ET
Read - ET
Business confidence falls second straight quarter: FICCI
.........The Reserve Bank of India has cut the repo rate by 0.75 percent this year, while it is scheduled to announce its first mid-quarter monetary policy review on June 17. Moreover, owing to the high current account deficit (CAD) coupled with weak market demand, as well as inadequate infrastructure investments, Indian business felt the worst is not yet over...............
A bank battle
........ The question worth asking is: what will be the implications for the Indian financial sector in case we have variants of the Yes Bank battle in the years ahead?
Kapoor vs Kapurs in Yes Bank tussle
It’s Kapoor vs Kapur. The result of a keen boardroom tussle on appointment of new directors in Yes Bank will be unveiled on Monday, following a paper ballot during the weekend arising out of a clash between leading stakeholder and CEO Rana Kapoor and the family of the bank’s founder, late Ashok Kapur...............
State govts are responsible for wasting minority development fund: Rehman Khan
Hyderabad: On the dismal performance of the minority affairs ministry in granting loans to minorities, Minister K Rehman Khan today directly attacked the banking sector for not following RBI guidelines of allotting 15% i.e. 1,75,000 crore worth loan to minorities as envisaged in PM’s 15 point programs. The minority affairs minister was addressing the media in Hyderabad...........
Rupee going strong for 60
..........The basic problem, however, is more fundamental. Essentially, India has been unable to attract huge volumes of non-volatile non-debt creating flows. While during the last quarter, India rejoiced its ability to finance its humungous current account deficit (CAD) through huge FII inflows, the volatile nature of such flows has come back to haunt us what with FIIs exiting en masse, as economic growth weakens and corporate performance falters.........
Department of Posts to seek Cabinet nod for Rs 1,900 crore funds
.....The RBI has issued comprehensive guidelines for new bank licences. It has fixed July 1 as the last date for filing application by interested entities. The DoP has proposed to start 50 bank branches in the first year and scale it to a total of 150 branched in 5 years. There are around 90,000 bank branches in the country and provision of real-time banking services through postal network is estimated to triple the current banking network........
Click to read - ET
Click to read - ET
Surat Nagrik Sahkari Bank to be renamed in July
..........The account holders and depositors of Surat Nagrik Sahkari Bank were on the tenterhooks after the bank was placed under directions by the RBI in March. The depositors were allowed to withdraw a sum not exceeding Rs 1,000 from the balance held in every savings banks or current account............
Bankers suit up for war on debt defaulters
.....In a country where businesses thrive on personal relationships, Indian banks have typically avoided involving the courts or liquidating assets — time-consuming efforts which often yield only minor results. Even the so-called “fast-track courts” for banks, formed in the last decade, can take more than two years to resolve a case. The central bank has called for better management of bad debts, and wants to strengthen oversight by lenders............
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