...........The Chief Judicial Magistrate (CJM) Latur noted, even while denying a move to discharge Mr. Tuljapurkar from the case, that “in my view, the poem in question is an honest criticism without malicious intention…” The bank’s actions seem the opposite: more malicious than honest. BoM argues that Mr. Tuljapurkar concealed this information for 19 years. Why was the bank silent for 19 years? The controversy was a very public one in 1994. And how did the police give Mr. Tuljapurkar the clearance required (as did the bank) for his appointment as Workman Director on the bank’s board in 2004?.............
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.
Thursday, June 20, 2013
My View on "Rate cut hope hinges on Subbarao's successor"
It is true that Dr Subbarao has, in media interactions, indicated he was not keen to continue beyond September, 2013. But no RBI Governor in the past also has given out his mind about his expectations about further extension of tenure especially after the ‘normal’ 5 years term. But politically and from a mere expediency angle, certain factors are in favour of giving a one year extension to Dr Subbarao. With 2014 Elections round the corner, experimenting with a new face at Mint Road, howsoever ‘faithful’ to North Block he may be will be a risk GOI should avoid. For the new incumbent also, it will save a lot of ‘adjustments’, if he takes over post-2014 Elections.
- M.G.Warrier
My View on "Now, open a savings account and earn reward points"
......Whatever it is, RBI has to ensure that Banks do only banking business in a traditional manner ie;accepting deposits and lending of money.If any incentives are linked other than efficient customer service to these normal banking transactions, there is something seriously wrong and need to be nipped in the bud itself. Otherwise RBI will have to face an embarrassing situation.....................
‘Ministry not planning to increase retirement age of govt employees’
...........Officials in the Ministry said increasing retirement age requires a detailed consultation with all stake holders and discussion with the Finance Ministry. Without the Finance Ministry’s permission the matter cannot not be processed, they said. At a time when government is working on austerity drive by cutting expenditure and putting in efforts to rein in current account deficit (CAD), the move to increase retirement age will also burden the exchequer’s kitty, they said..............
Calling FM’s bluff: Why not ask RBI to sell its gold
........The RBI has an estimated 550 tonnes of gold in its reserves. So instead of importing gold to meet the needs of citizens for the rest of the year, the RBI can sell the gold it is holding in its reserves to citizens. With the rupees raised, it can do an even better job of suppressing interest rates by buying government bonds. Even more attractive is the fact that there is no change in its balance-sheet, as it will be substituting one asset class with another. And going by Chidambaram’s advice, the RBI is substituting a dumb non-productive metal with a government bond that would help the government do whatever it wants to do...........
A question of black and white
......Big corporations are known to buy database from snooping agencies on troublesome employees, such as whistle-blowers and prospective business partners. But most blacklists are public. The Securities and Exchange Board of India and the Reserve Bank of India keep them to help investors. The defence ministry - prone to Bofors-brand scams - recently announced in Parliament a list of arms suppliers with whom no further contracts will be signed. The charges against them include use of undue influence, agents and payment of commissions...........
Cobrapost shows brighter side of Indian banking
Online news portal, Cobrapost.com in the news of late for exposing unethical practices by banks, sprang up a surprise yesterday when it reported having come across a few ‘honest’ bank managers in the course of the fourth episode of its expose...................
Wait till after Ramzan: Amanath Cooperative Bank
Nearly two months after the Reserve Bank of India directed the Amanath Cooperative Bank to freeze all transactions, the bank announced another deadline to return depositors’ money, promising it after Ramzan, which starts in the second week of July.........
Banks start charging money for SMS alerts, mobile banking
............The frequent hikes in service charges are fast reaching a stage where consumers will revolt. The Reserve Bank of India (RBI), which follows a policy of forbearance (allowing bankers to decide charges themselves) with regard to service charges, refuses to intervene. At the same time, the RBI is pushing banks to extend services to hundreds of million unbanked Indians. There is a clear disconnect here, since no-frills accounts permit only ATM transactions and banks now claim that those too involve a huge cost. Can the RBI afford to remain silent about rising service charges? It is a question that the banking regulator needs to answer.
Nearly 1,000 cards were cloned in Axis Bank kiosk
....The cops who had obtained the CCTV footage of the ATM kiosk had zeroed down the CCTV footage of 22 days and had found that two men of foreign origin had placed the cloning device in the Axis Bank ATM. The source further revealed that the crooks who were seen placing the cloning device and the pinpad seem to be European nationals and are fair in colour. The process of monitoring the CCTV footage ended on Monday, three days after the case was registered in Colaba police station in which the cops have identified a suspicious person of foreign origin........
RuPay goes online
The RBI-backed payment network, RuPay, which is widely seen as a domestic alternative to MasterCard and Visa, has been quietly rolled out for e-commerce use by the National Payments Corporation of India (NPCI). This move will provide another payment option for customers with several websites starting to accept RuPay payments—the Future Group’s online venture, for instance, currently provides a RuPay option.............
West Bengal's saving scheme may face RBI opposition
.....If the state government plans to raise any deposits, it has to be routed through either of the two NBFC bodies. Otherwise, the state would need a special permission from the Central government to raise deposits. RBI’s opposition to any non-banking entity raising deposits was accentuated by a recent statement by RBI governor D Subbarao that, “deposit taking should eventually be restricted only to banks which are tightly regulated. Deposit collection by non-banking companies should be gradually minimized, and eventually eliminated.”.....
Infosys' CBS solution to power UP cooperative banks
.......National Bank for Agriculture and Rural Development (NABARD) is facilitating the implementation of the CBS project. “It is up to the respective DCCBs to approach us for migrating to CBS platform or decide to do it independently,” NABARD chief general manager K K Gupta said .........
WHO NEEDS MORE BANKS?
.......The RBI is seemingly not as enthusiastic as the government and has been slow to implement the policy since when it was first announced by Mr Pranab Mukherjee back in 2010. May be because it wants to be sensible. But with greater emphasis from the government as the 2014 polls approach, it has had to get cracking. Besides “financial inclusion”, another plank with which the government is beating RBI into submission is the magical “increased competition” panacea which will improve customer service and more importantly, bring down interest rates on consumer loans. There are however,...........
Edelweiss to decide on applying for bank license next week
...."I think anybody who has a credit business will apply for banking...We are only evaluating...We have in the forthcoming week our board meeting where we would decide whether to apply or not,".............
Tourism Fin Corp to seek licence from RBI to set up bank
The Tourism Finance Corporation of India Ltd (TFCI) on Wednesday said the board has approved a proposal to seek licence from the RBI for setting up a bank. "TFCI, in terms of the approval by the board of directors, is submitting application with RBI for a banking licence," the company said in a filing on the BSE..................
Indian rupee to stay under pressure from US dollar: D&B
The Indian rupee is expected to remain under pressure in the near term, given the strengthening of the US dollar against major global currencies and widening of the trade deficit, says a report. According to global research firm Dun & Bradstreet (D&B), steps taken by RBI and government are likely to provide some support to the rupee going ahead..........
FM to meet chief executives of PSBs on June 26
The Finance Minister P Chidambaram will meet chief executives of public sector banks (PSBs) on June 26 to review the performance of the banks during 2012-13. Indications are that Chidambaram will use the occasion to discuss the aspect of bankers' not reducing lending rates in proportion to the policy rate cuts effected by the Reserve Bank of India..........
Yes Bank to take up Gogia nomination on 27 June
....Gogia—the daughter of Ashok Kapur, late co-promoter of Yes Bank—who has gone to court over board membership, submitted her nomination on Tuesday. The Reserve Bank of India (RBI) nomination form is a declaration stating basic details such as name, address and also whether the person seeking nomination is under investigation by RBI, the Securities and Exchange Board of India (Sebi) or any central agencies. The bank’s company secretary said on Wednesday that it has received Gogia’s nomination. “The nomination will now be presented to the board’s nomination committee on 27 June,” ...........
Bond auction: RBI goes for uniform price method to curb volatility
.......Under the uniform price auction method, all successful bidders are required to pay for the allotted quantity of government securities at the same rate, which is the auction cut-off rate. This would be irrespective of the rate quoted by them. Under the multiple price auction method, successful bidders are required to pay for the allotted quantity of government securities at the respective rate at which they had bid........
Lakshmi Vilas Bank short-lists three for CEO's post
..........."The names have been sent to the Reserve Bank of India (RBI) for consideration. The new chief executive officer is expected to be appointed soon," one of the sources told Business Standard requesting anonymity. Lakshmi Vilas Bank had received over 55 applications for the position of chief executive officer. The applicants included senior executives from SBI, one former official of RBI, and business heads of ICICI Bank, HDFC Bank, Axis Bank, Citibank and Hongkong and Shanghai Banking Corporation (HSBC)............
Wednesday, June 19, 2013
The illusion of cheap money
.........The spat over CRR would have ended, had not two key policymakers weighed in on the side of the SBI. Finance Minister P. Chidambaram thought the RBI should pay an interest of 7 per cent on such holdings, adding that the central bank should consider the CRR as one of several monetary tools for credit control in the pursuit of its anti-inflationary objectives. More obliquely, the chairman of the Prime Minister’s Economic Advisory Council C. Rangarajan added his own wisdom to the idea of the CRR as an outmoded weapon for monetary tightening, one that should be used, he advised, “in extraordinary circumstances.”..................
Rate cut hope hinges on Subbarao's successor
........Subbarao will review the policy twice -- first quarter review in end July and mid-quarter review in mid-September -- before he hang up boots as a central banker. Though a governor can be re-appointed but Subbarao -- in media interactions -- had indicated he is not keen to continue beyond September..............
Why is the RBI so pessimistic? - Renu Kohli
............The RBI’s sage advice, “the key to reinvigorating growth is accelerating investment by creating a conducive environment for private investment, improving project clearance…leveraging on the crowding-in role of public investment”, disregards the nascent emergence of supply-side positives (e.g. rise in domestic coal production, timely onset of monsoons, resumption of roads and some other projects); weak but stable switch from public to private business spending and the results of its own corporate survey showing a fall in the interest coverage ratio in December 2012 quarter, which would only have worsened since. It seems reviving growth is now solely the job of the government.
IMF should be more proactive to suggest ways to reduce spillover of slowdown: RBI
Deepak Mohanty, RBI Executive Director, today in a paper presented at SaarcFinance Group meeting in Islamabad expressed RBI's thoughts on impact of Eurozone crisis on South Asia.......
Read | Business Standard
RBI stays firm
The RBI couldn’t have done anything different.
On Monday, it changed nothing. The repo rate, at which the banks borrow from it, and the cash reserve ratio remain unchanged. Votaries of the reduction in the policy rate, including the Finance Minister, might be disappointed. But the central bank could not have risked a further run on the currency and a higher consumer inflation by pandering to the growth lobby
RBI Governor D. Subbarao announces RBI scholarship scheme
...The objective of the scholarship scheme is to strengthen regional co-operation through skill enhancement in economic research of officials of central banks/ministries of finance in the SAARC region. Under the scheme, the Reserve Bank will offer one full-time scholarship to a candidate working in SAARC central banks/ministries of finance, for pursuing Ph.D; or M.A/M.S/M.Phil leading to Ph.D in economics in one of the identified universities/institutions in India. ............
Conference of CEOs of NBFCs postponed
Dear Sir,
Pls note that the Conference of CEOs of NBFCs organised by CAFRAL and scheduled on June 21, 2013 in Mumbai is postponed till further notice.
- Purushothaman, Manager, CAFRAL - RBI
- Purushothaman, Manager, CAFRAL - RBI
Inter School Quiz to be held
Shillong, June 17: The Reserve Bank of India (RBI) has launched an all-India RBI Inter-School Quiz (RBIQ) which is a new initiative aimed at promoting financial literacy at school level for students in classes IX, X, XI, XII. Various schools irrespective of any Boards which are located across the country can participate in the competition. The Shillong edition of RBIQ 2013 will be held on June 24 at St Edmunds College Auditorium and will be conducted by renowned Quiz Master, Gautam Bose from Greycells..........
RBI to remain closed on July 1
The Reserve Bank of India (RBI) will remain closed for public transaction on July 1 on account of annual closing of accounts, according to a RBI release.
The Hindu
Bank aspirants in warm-up mode
.........Banking circles said the coming days would see various companies formally announcing their plans to set up banks. The deadline for submission of banking licence applications is July 1.
Standard Chartered, HSBC officials caught on camera offering to launder money
After the Reserve Bank of India (RBI) fined ICICI, HDFC and Axis banks for flouting customer norms, highlighted by a Cobrapost expose, the latest sting operation by the online magazine exposes how some employees in two foreign banks in India have also been involved in accepting black money and agreeing to launder it..............
RBI eases rules for forex option premium payment
....This facility will be available for cost reduction forex option structures in which the liability of the buyer will not exceed the net premium payable to the bank, RBI said in a notification..........
RBI lines up major banking sector reforms
....The suggestions, if implemented, will be India’s first step towards effecting far-reaching reforms and come at a time when RBI has invited companies to apply for banking licences, nine years after the apex bank last issued new licences..........
Religare promoters to sell 22.75% stake to meet banking rules
..........As per the RBI guidelines, the applicant company's promoter group can set up a bank through a Non-Operative Financial Holding Company (NOFHC) with a minimum 51 per cent public shareholding. While most of the applicants are looking to comply with the RBI guidelines, including on the minimum 51 per cent public holding after getting an in-principle approval for the licence, the decision taken by Religare promoters is being seen as a proactive approach towards setting up a bank. ...........
IDFC to seek licence from RBI for setting up bank
New Delhi: Infrastructure financing company IDFC today said the board has approved a proposal to seek licence from RBI for setting up a bank. The board of the company at its meeting held today has approved a resolution for making an application to the Reserve Bank of India (RBl) for obtaining a banking licence, IDFC said in a filing on the BSE...........
Another story unfolds at Yes Bank
.........Yes Bank’s annual report for 2008-2009 shows the Ashok Kapur group’s stake at 16.02%. In fiscal 2010, the Madhu Kapur group’s (formerly Ashok Kapur group) stake was put at 12.68%, while that of Rana Kapoor was 14.48%. The bank raised $225 million (around Rs.1,315 crore today) through a qualified institutional placement in January 2010, diluting the promoters’ stake that fiscal. Since March 2011, however, Rana Kapoor (comprising promoter and promoter group) has been listed as the single largest shareholder with a 26.57% stake, which includes the 12.68% stake held by the Madhu Kapur group........
Gang decamps with ATM in Bangalore
.....Lack of security measures and delay in appointing guards led to the incident, police said. Unlike other counters, the ATM was not fixed to the floor. The police suspected an insider’s involvement as only those who had handled the machine would know that the ATM was detached. The exact loss was yet to be ascertained. Bank authorities claimed that the machine was loaded with Rs 25 lakh on Saturday. Customers withdrew over Rs 1 lakh on Saturday and Sunday, the police said. ..........
Exclusive financial products for women
..........In this world of consumerism, financial players are luring women in a big way by offering women’s only products. Most of these products are genuine with attractive features and are not just marketing gimmicks. These specialized financial products provide women, financial independence, and an opportunity to save and build a strong financial portfolio...........
Now, open a savings account and earn reward points
The big spenders are expectedly pampered, with credit card issuers and merchant outlets showering them with discounts and freebies. In recent months, however, two private-sector majors—ICICI Bank and Axis Bank—have expanded their scope of offerings to cover the savers as well. The banks are promising to reward customers having savings bank accounts with loyalty points for carrying out a variety of transactions......
Use Aadhaar and EMV both for retail payments
An RBI-appointed panel of bankers will decide on the appropriate technology for retail payments in a month. And the choice is reportedly between Aadhaar, the biometric-based unique identity system, and EMV, a globally accepted technology standard for credit card, debit card and ATM transactions, used by Visa and MasterCard. This is baffling. Why should it be one technology standard or the other? Both Aadhaar and EMV should co-exist as payment standards. The incremental cost to modify the point of sale or payment acquiring terminal would be insignificant. ........
Read - ET
Nandan Nilekani's Aadhaar project faces fight from a team of Europay, Mastercard & Visa
........But, if the group, constituted by the Reserve Bank of India, prefers Aadhaar, banks will have to change their systems, procure biometric machines and prepare for different security standards. Bankers, however, are reluctant to spell out their stand openly because the government thinks Aadhaar can be a game changer in disbursing subsidies to people in far-flung regions..............
Tuesday, June 18, 2013
RBI did well to do nothing - A.Seshan
The Reserve Bank of India (RBI) has taken the right view that there is no need for any change in its monetary policy. The factors that led to its hardening stance have hardly changed in the recent months. Liberalisation, in the past, of monetary measures has had only a limited effect on the real variables that determine the course of the economy............
CAFRAL : Conference of CEOs of NBFCs
The objective of this conference is to discuss the issues confronting NBFCs and the opportunities available, particularly post implementation of the new guidelines and the way forward. The participants will be primarily CEOs of the NBFCs operating in various segments...........
Finance Ministry seeks States' views on financial sector reforms report
The Centre has written to the State Governments seeking the latter's views on the FSLRC report and the proposed Indian Financial Code, a Finance Ministry official has said. This is part of the four steps taken by the Finance Ministry post the submission of the Financial Sector Legislative Reforms Commission (FSLRC) report........
KSK - Cordially yours
.......I worked with K S Krishnaswamy during his last phase in the Reserve Bank of India (1979-81) as Deputy Governor when he switched over from economic research to banking control. He was expected to handle the kind of work he hadn't done earlier. He invariably maintained his characteristic smile during the learning period, making it a treat for his subordinates who tried to familiarise him with his new assignment...................
Banks lay out special maternity benefits in an attempt to retain women employees
...........All the same, the hyper competitive world of banking is increasingly recognising the importance of retaining female talent, in particular those who lose the most productive years of their lives to family commitments. "Childbirth and childcare are the biggest career obstacles a woman between 28 and 35 years of age goes through. Organisations should be able to support women in these critical phases, else everything they do is lip service,".........
New Rs 5 coins on 150th birth anniversary of Motilal Nehru
The Reserve Bank will soon put into circulation new five rupee coins to commemorate 150th birth anniversary of Motilal Nehru. The obverse of the coin will bear the Lion Capital of Ashoka Pillar in the centre with the legend "Satyamev Jayate" inscribed below...........
Submitting paper copies of IT e-filings may not be mandatory: CBDT
........."E-filing is meant to help the taxpayer (by making it easier to pay taxes). But compulsory dispatch of paper documents by post to the Bangalore based central processing centre of the department or procuring a digital signature was undoing this. Hence, the department has decided to end this soon,".........
My View on "If RBI can't cut CRR, let them pay us interest on it: SBI"
..... The demand from SBI Chairman is comparable to a tax payer telling GOI to treat ‘tax’ as borrowing from him and pay interest at market rate or stop collecting tax.
CREDAI slams RBI, says rate cut status quo will hit India GDP growth, employment generation
Realtors' body CREDAI today criticised the RBI's decision not to cut rates and keep key policy rates unchanged, saying the status quo in credit policy would affect the country's GDP growth and employment generation..............
RBI's status quo influenced by external factors: Rangarajan
...."If the capital flows are resumed and if the rupee is not under the kind of pressure it has been in the last few weeks, the RBI would have an increased space to operate. I personally think that the external sector considerations will again be the predominant one even by the end of July,"..........
Not at this Rate…
......But
is there a credible government plan for reducing fiscal deficits? With
growth low, deficits still high and investment stimulus still weak, CAD
as a symptom should provoke bigger concern and more action than it
seemingly is. That’s the kind of worry clouding the India story. RBI can do nothing about that.
Banks may face cost, liquidity pressure
......The liquidity deficit situation till the month of May remained high. Banks’ borrowing through the liquidity adjustment facility (LAF), which helps them to manage temporary mismatches, remained above RBI’s comfort level of 1 per cent of net demand and time liabilities (NDTL). But since the beginning of June, there has been some moderation in the LAF borrowing to around Rs 63,000 crore, below 1 per cent of NDTL. Also, the RBI has infused Rs 7,000 crore through open market operations in June. However, the impact of this on liquidity may be offset by the RBI’s interventions in the forex market. .......
Why RBI deserves respect for keeping rates on hold
..........RBI and its Governor Duvvuri Subbarao, however, deserve kudos for not buckling under pressure and remaining steadfast on its assessment of the economy and the risks it faces. Finance Minister Palaniappan Chidambaram may not be pleased with RBI right now, but Subbarao, who retires in September, would have known that in the current scenario, he has done the best that he could. That’s what really matters.
RBI msg to govt: Revive invst climate, rate cut will follow
........The Reserve Bank of India (RBI) Governor, D Subbarao in his mid quarter credit policy review clearly emphasised the governmental role to revive our flagging economy. At the same time, he praised certain government measures gradually yielding results...............
Rate illusions
..............There was hope that RBI’s ‘inflation governor’ would accomplish a 20-25 basis point cut in cash reserve ratio, or the amount of cash which banks maintain with RBI, as this would have unlocked over Rs 10,000 crore of credit into the market. But part of the apex bank’s hawkish stance stems from high retail inflation which has prevented earlier rate cuts from being transmitted to borrowers. The rupee has not seen much upside either, which RBI justifiably fears will push up inflation – and make it difficult to lower repo rates in the July policy review......................
RBI opts for a strategic timeout on rate cuts
.............. Till the rupee and global liquidity conditions stabilise, RBI may not budge. Siddhartha Sanyal of Barclays believes the developments in the global economy and the trend in the rupee in the next few weeks will have a strong bearing on RBI's action. The road ahead looks tough as RBI's actions will largely depend on how soon the government eases policy bottlenecks, and takes measures to attract stickier foreign direct investment. The only positive is that the central bank's commentary has not been very hawkish..............
Relevant policy in turbulent times: S S Mundra
.....While the tone of the policy continues to remain hawkish, according to RBI, monetary policy would be determined by how the growth and inflation trajectories, as well as the BOP situation, evolve in the months ahead. In specific terms, RBI is waiting to see a durable decline in inflation and this alone would enable it to address risks to growth.......
Don't depend on the diaspora
......Even so, it's in the RBI's own interest to find a solution to what could become a big obstacle to the transmission of monetary policy. With deposit growth at a 10-year low, banks are simply not inclined to cut lending rates in response to reductions in the central bank's policy rate. The much-delayed recovery in output will become more elusive if monetary stimulus does not reach corporate and individual borrowers........
End of the cycle?
.....The question that obviously arises is: what next? Over the past three years, the monetary policy cycle has witnessed pauses on two occasions. In December 2010, the RBI paused before resuming its tightening cycle in January 2011. Subsequently, after having surprised observers with a reduction of 50 basis points in the repo rate in April 2012, there was a relatively long pause until January 2013, when the rate reductions resumed. Going by these two precedents, yesterday's pause does not in and of itself signal that the rate cutting cycle has ended; .............
Seven out of 10 see rate cut coming in July 30 review
The Reserve Bank of India’s policy review which stayed away from even a mention of a “reversal in policy stance” has led to a rise in hopes that the central bank may cut the repo rate by at least 25 basis points at its next policy review on July 30. Out of the 10 respondents in a Cogencis poll, seven expect the RBI to cut the repo rate on July 30, with six of these pining for a 25 basis point cut and one respondent expects a sharper 50 bps rate reduction. Just three respondents expect the RBI to maintain status quo on rates at its next policy review.............
RBI's so-called 'hawkish' tone not holding eco back: Tandon
...... I have heard a lot of commentary since the morning saying that it has been a hawkish policy. I don’t see where the hawk is, I can see a big large dove. The way I look at it is today if you look at the policies that are likely to come through, for example, increase in coal prices and increase in gas prices, which are something that the finance minister has already promised, inflation will go up...............
Subbarao has hit the nail on its head, says Ambit's Wadhwa
I personally believe that the Governor has hit the nail on the head. We have had a rate cut in the past and it is not as if that rate cut has translated into a significantly larger amount of investment, particularly in the infrastructure and the capital goods sector. We have seen that lack of government decision-making and clarity on what it needs to do on critical elements related to infrastructure are all serious roadblocks at this point in time.............
Let the Reserve Bank Do What it Must
..........But it is possible for the RBI to grant more people access to formal
credit. It has to abandon the belief that financial inclusion can be
achieved only through physical expansion of branch networks and,
instead, permit innovative forms of banking and use of technology on a
large scale to expand access at low cost. The RBI should shun
conservatism in new bank licences. There is no reason why, say, mobile
phone companies or their joint ventures with established banks should
not be given licences. The ability of these companies to make money from
low-value transactions should be leveraged to achieve financial
inclusion. This is fully within the RBI’s control.
What the RBI can do
......... But this does not mean that there is nothing the RBI can do to improve matters. Financial inclusion is one area where the RBI can and must make a difference. Going by the conditions it has set for new banking licences, the old lady of Mint Street is still hung up on the brick and mortar model of branches in rural areas for banking expansion. This is ridiculous.............
Monitoring politically exposed persons: Need for a new approach by RBI
...........What is it that is preventing the RBI to issue guidelines to banks and financial institutions regulated by it from monitoring domestic PEPs? Are there regulatory hurdles? Or is it that the otherwise self-proclaimed independent body on repo and reverse repo rate determination i.e. RBI is scared to take an independent view on determination of domestic PEPs because of the fact that a big list of who is who is involved in the list. It is important to note here that the PEP list does not alone cover politicians and includes other prominent officials as mentioned in the definition above........
Currency Watch: Why the rupee fell after RBI kept rates on hold
.....The Reserve Bank of India kept its repo rate steady, warning of upwards risks to inflation and global economic uncertainty, in a decision that had been widely expected. A rate cut benefits the rupee by increasing confidence on the economic outlook and sparks hopes of more foreign inflows..........
SBI does not bank on Aadhaar as KYC proof
The central bank may have declared in December that the Unique Identification Authority if India’s Aadhaar numbers can be used by banks as valid know your customer (KYC) proof, but the country’s biggest bank is having nothing of it. As a result, the law ministry has been asked to opine on the matter, and an opinion is expected later this week..............
Maha govt to decide fate of land development banks by next year
......The options under consideration of the Maharashtra government are - to merge these banks with the district banks, ask the employees to take VRS, and to sell the properties of these banks to disburse the salaries of the employees who would be asked to take VRS. A final decision on the issue will have to be taken by March 31, 2014,...........
Reserve Bank of India boosts FDI efforts, to notify Press Notes 2 and 3 soon
...With the RBI moving to notify the press notes and the DIPP putting changes in definition of 'control', the government's FDI reform has been put on the fast track. ....
Read - ET
Read - ET
Create Conducive Investment Environment To Boost Growth: India's Reserve Bank
......"Key to reinvigorating growth is accelerating investment by creating a conducive environment for private investment, improving project clearance and implementation and leveraging on the crowding-in role of public investment," ..........
SBI training institute coming at Rajarhat
...........Christened the State Bank Institute of Management, the institute would be set up on a 10-acre plot acquired commercially from the West Bengal Housing Infrastructure Development Corporation Ltd, a release said. According to the release, Pratip Chaudhuri, Chairman, SBI, said one of priorities of the bank would be to train the 5,500 officers and approximately 20,000 clerks recruited in the last couple of years.......
Crisis looms large in agriculture sector
......Overlooking the significance of the cooperative sector, if a decision was made for routing all payments, including loans, through the commercial banks which continued to be an unfamiliar terrain for the small and marginal farmers, the farmers may not be able to continue their banking operations at ease.............
Dena Bank plans to spread wings overseas
....“We have already got the approval from the Reserve Bank of India for opening a representative office in the UK. The permission of the Finance Ministry is awaited”..........
Monday, June 17, 2013
Is the economy in a logjam? - S.S.Tarapore
.....The government continues to think that the way out of the logjam is to lower interest rates. On the contrary, there is a pressing need to increase interest rates. Given the political economy realities it would indeed be heroic if RBI Governor D Subbarao is able to withstand pressures to reduce interest rates........
A long haul - Dr.Subir Gokarn
.....To sum up, we need to come to terms with the fact that a small current account deficit is not an entitlement. It is the outcome of a dynamic combination of facilitating conditions, which need to be created and sustained. A return to the comfort zone of the pre-crisis period requires a structural approach. It will be a long haul, but there is no alternative; and it will be worth it.
Is there need for CAG audit of RBI accounts? - T. V. GOPALAKRISHNAN
.....In these circumstances, it is surprising that there is a vehement call to bring the RBI under CAG audit. That the RBI is corruption-free is a well-acknowledged. Therefore, CAG audit without any strong and justifiable reason will only add to the expenditure of the exchequer. The RBI is perhaps the only institution which is self-disciplined and self-audited, giving no scope for CAG audit in terms of coverage, content and scope and having all possible checks and balances on ‘income and expenditure’. Moreover, the accounts are extensively screened by the statutory auditors appointed in terms of RBI Act 1934, and are made available to the Government for presentation in Parliament......
Good response to coin mela
.............."The idea of conducting a coin mela hit me when I saw people struggling to get small change (coins) when they are travelling in a bus or go to a hotel for tea. Not only are people struggling due to the shortage, even shopkeepers, hoteliers, general stores, stationery shops, bakeries and pan shops owners are feeling the pinch. So we have requested the Reserve Bank of India (RBI) to give coins of the denominations of Rs 1, 2, 5 and 10 worth Rs 4 lakh," .............
RBI ORGANISES CONCLAVE FOR RSETI DIRECTORS
Reserve Bank of India (RBI) Bhopal organised a day-long conclave for Directors of Rural Self Employment Training Institute (RSETIs) here in Bhopal.The Conclave was organised to sensitise the RSETI Directors’ about their roles and responsibilities in providing skill development training for self employment/entrepreneurship development of rural unemployed youth..................
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Govt May Ban NBFCs From Deposit Schemes
.......The
inter-ministerial group, set up after the Saradha Group scam, has
representation from the revenue and economic affairs department in
finance ministry, ministry of corporate affairs, banking sector
regulator RBI and Sebi. To strengthen the existing mechanism, the RBI
will also look at resetting the criteria for registration of NBFCs............
Swimming towards financial inclusion
..........We need to bring banks and other institutions closer to the customer, either via micro branches or banking correspondents, and increase the use of technology. Access to financial institutions is certainly rising. According to the Reserve Bank of India, all unbanked villages with a population of over 2,000 persons, numbering around 74,000, were connected with banking facilities between March 2010 and June 2012. During the same period, more than 70 million basic banking accounts were opened to take the total number of such accounts to 147 million................
Rupee Bank staff may get leaves encashed
Bank Karmachari Sangh (BKS) general secretary and administrator on the Rupee Cooperative Bank Limited Vidyadhar Anaskar said that he would approach cooperatives’ commissioner for encashment of leaves of Rupee Bank staff, who want to resign. ............
Supersession of elected committees
.....The joint registrar of cooperative societies superseded the board after issuing a show cause notice containing 19 charges. The directors challenged the supersession as it was done without consulting Reserve Bank of India. The court directed reinstatement of the board of directors for the full term...........
As business grows, banks allowed to create more GM posts
Due to robust increase in business in the last two years, the Finance Ministry has allowed 15 of the 19 nationalised banks to create up to three additional positions in the rank of general manager. The ministry has also relaxed the guidelines for promotion of officers, who do not have sufficient work experience in rural/semi-urban areas, and specialist officers, who do not have sufficient experience in field operations. Overall, the number of GM positions in the 19 nationalised banks has been increased from 420 to 442. A GM usually heads a business vertical at the head-office or heads a circle office.........
Mis-selling or fraud?
.....From Doctor's experience, one thing is clear: while financial regulators such as the Reserve Bank of India, Securities and Exchange Board of India and the Insurance and Regulatory Development Authority might be taking some corrective steps, the malaise of financial fraud has become deep-rooted.......
A refreshing contrarian
.....It is reassuring that the Governor of the RBI has been lobbying the case for the poor man. He has pointed out more than once the regressive nature of price rise as a tax on the aam aadmi as the raison d’etre for his monetary stance. The nation is grateful to him for his lonely walk on the path of disinflation. He is doing to India what Paul Volcker did to the US in the 1970s and 1980s.......
Penalty passed on...........
Axis bank has already started to recover the RBI 'penalty' from existing customers by informing them new charges for a/c holders by asking them certain charges which were free otherwise and unless you write to them deduction will start from 15 june.If RBI keeps imposing penalties Very soon one can expect 'personal' interaction charges if you wan't to talk to a human being in the Bank.
- Arun Mehta
Shriram Group eyes banking licence
.......Shriram Group’s group director, G S Sundararajan, had earlier told Business Standard that the group’s preference would be getting a separate licence under Shriram Capital, the holding company, and keep the two NBFCs separate from this. “We are definitely going to apply for a banking licence, as it is good for our customers and all stakeholders in the long run,” Sundararajan had told.......
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