......With the Reserve Bank of India (RBI) deciding not to cut repo rates, despite market expectation to the contrary, investors who positioned themselves for a rate cut by investing in long-term debt funds or gilt funds have been stranded. The outlook for an interest rate cut is not as clear now, as rupee depreciation could drive up inflation, which could further curb RBI's ability to cut rates............
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 24, 2013
Not Kapoor vs Kapur
It is perhaps for the first time in the corporate history of India that a court has stipulated the date for a meeting of a board of directors, set its main agenda, directed a decision be taken and, finally, subject that board decision to a judicial review. This is unprecedented even by the current standards of judicial activism. Much as the press has spiced it and played it up as a family squabble, the real issue at stake here is the very concept of a board-run, professionally managed company. In other words, corporate governance itself. What has happened so far severely questions that and has the potential to compromise the powers of the board...........
2.55-cr gold stolen from Indapur bank
.........the
suspects had broken three lockers in which the bank had kept gold
belonging to 250 customers, who had obtained loans from the bank by
mortgaging their valuables. “The lockers of the other customers are
intact,” Pardeshi said. The suspects had used cutters on the lockers to
steal the gold. Closed-circuit television cameras inside the bank have captured the images of the suspects.........
‘Interest-free banking achievable through collective efforts’
...........“Islamic Banking isn’t the financial system restricted for the Muslims, but an ethical system aimed to benefit the entire mankind.” Some of the leading countries including England where the Muslim population is mere 2% have accepted the Shariat-compliant banking. Interestingly, in March 2009, Vatican's official newspaper Osservatore Romano hailed the Islamic banking saying: "The ethical principles on which Islamic finance is based may bring banks closer to their clients and to the true spirit which should mark every financial service.".............
HDFC's Parekh warns home buyers of teaser products
........"To my mind, teaser products of any nature entail risks. Customers need to be cautious of 'too-good-to-be-true' type of products," Parekh said in a statement to shareholders of India's largest housing finance company...........
Parrikar meets FM for mining package
.......Parrikar also brought to the notice of Chidambaram the credit exposure of the banking sector including that of co-operative sector banks has in the mining belt and sought the intervention of the central government. The union finance minister assured the chief minister, that he will take up the matter with the governor of Reserve Bank of India (RBI) for "a suitable course of action", according to the official statement issued in Panaji...................
Saturday, June 22, 2013
Attracting FII funds a test now; see rate cut scope: Gokarn
...........Speaking to CNBC-TV18, Gokarn said the government needs to take credible steps to tackle deficit, which will help rupee and sentiment in market. Meanwhile, Indian bond prices have fallen further and the 10-year bond's yield have risen by another three basis points to 7.42 percent on suspected FII selling; sentiment is also weak ahead of an auction today and because rate cut hopes have all but vanished. Gokarn, however, said that the RBI may still find elbow room to cut rates in its next policy................
RBI GM warns people against falling prey to fictitious emails
....Speaking at a two-day awareness programme held at JNTU, Anantapur, in coordination with the MBA Department on foreign exchange, RBI Rural Planning and Credit Department General Manager, Hyderabad, R.N.Dash said that the RBI was concerned about the increasing incidence of individuals losing money after falling prey to such fictitious emails and text messages............
Collector asks bankers to disburse crop loans to tenant farmers
......Joint Director (Agriculture) Prasad, Lead district manager D.A. Chowdhary, Andhra Bank DGM Lalitha Prasad, SBH AGMs Jaipal Reddy and K.V. Rao, Nabard AGM Uma Maheshwara Rao, Reserve Bank of India (RBI) Manager Pulla Rao and others were also present in the meeting..........
Need Rs 3,000 cr to merge one associate bank this year: Pratip Chaudhuri
............Pratip Chaudhuri, chairman of SBI, told shareholders during the annual general meeting (AGM): “SBI will need Rs 1,000 to Rs 3,000 crore in capital if it were to merge one of its associate banks with itself.” After the AGM, Chaudhuri told reporters a committee headed by S Vishvanathan, managing director (associates and subsidiaries) at SBI, is looking into all the aspects. “That committee would report to the board (and) then we will finalise the name.”.................
Read | Business Standard
New norm to ensure deposit safety in primary cooperatives
........But a deposit insurance scheme endorsed by Reserve Bank of India has ensured a limited compensation to those who lost their money. But only urban cooperative banks, district cooperative banks and State cooperative banks come under the existing scheme. It is in this context that the Kerala State Department of Cooperation has introduced a credit guarantee scheme for deposits in the primary agricultural credit societies functioning under the cooperative sector across the State. The primary societies do not come under the Banking Regulation Act and hence the credit guarantee scheme being operated under RBI guidance has not been applicable to them............
They battle insecurities to keep the city secure
..........“Ironically, the State government is the biggest culprit here. Except for a few, most government undertakings do not pay the minimum wages. Though the Labour Minister has promised to take steps to rectify this, it is yet to happen,” he said. Mr. Haneef said despite Reserve Bank of India stipulations, some private lending institutions doing considerable business have stopped the services of security guards, thereby compromising the security of operations. “We have written to the RBI citing this anomaly,” he said............
Look before you LEAP
.......Every 0.50 per cent increase in the interest rates by the RBI leads to an increase in the EMI outflow, draining your earnings. In their quest to continue with an unchanged EMI, home loan borrowers look for opportunities with other banks or HFIs that offer lower rates compared to the existing ones..........
High Court directs Union Bank of bank to include retired employee in pension scheme
......."Taking into consideration these peculiar facts and circumstances of the case and also that the petitioner was abroad during the period of two months and was, therefore, not in a position to make the application for opting for the said Scheme, the bank is directed to make 2010 pension scheme applicable to him though he had not filed his application for option during the said period,"..............
NPCI unveils `RuPay PaySecure’ service
...........“RuPay PaySecure has tied up with over 100 merchant websites across multiple categories that would accept the RuPay card for online payment services. NPCI aims to cover 100 per cent of the e-commerce market by this year-end,” the company said in a statement. The RBI Deputy Governor H R Khan who was present at the event said the banks must build a sustainable solution with the right pricing and security measures and also create awareness among the consumers. Khan further said the whole product system should evolve together as the cash delivery system is still prevalent and must be done away with as it does not serve the purpose of e-commerce...........
Tatas to launch 5,000 White Label ATMs in a year
.............The customer will be charged the same charge they pay the other banks that is, around Rs 15 per transaction, going beyond five transactions in every ATM. So, that is the basic plan at this point in time. The announcement is expected anytime next week. The main idea behind this white label ATM is that Reserve Bank of India (RBI) wants to further financial inclusion. As banks incur a huge cost while setting up ATMs, the central bank believes that by doing this they will be able to further the concept of financial inclusion.
Won't consider incomplete bank licence applications, says RBI
The Reserve Bank of India (RBI) said on Friday that applications for bank licences received after the last date of July 1 or incomplete applications will not be considered. The apex bank released the guidelines for licensing of new banks in the private sector on February 22 and later came out with clarifications in June..........
RBI giving banking licences to support financial inclusion: Santosh Singh, Espirito Santo
....... Now with the banking licences going to help them in the near term, it is going to be very tough task for all these companies if they convert into bank because they will have to comply with many RBI guidelines and which is going to have affect on their ROAs and ROEs and even for growth in the near term. So for the next two to three years it will be a very difficult market for all these companies. Having said that we like the companies and the only reason we will buy these companies is because of their fundamentals and not because of the banking licences.........
UBS to surrender its banking licence in India
..........“UBS has decided to exit its fixed income business in India. The bank will continue its equity and investment banking operations and make investments in these businesses as and when needed. The move is part of UBS’ global strategy to focus on core strengths in different markets and operate capital-light businesses,” ..........
Poor still depend on SHGs and moneylenders, claims CSES study
.............The finding assumes a special significance in the backdrop of the Centre's decision to disburse various subsidies through bank accounts linked to Aadhar numbers. The study conducted by the Centre for Socio-Economic and Environmental Studies (CSES), an Ernakulam-based research group, on behalf of the Reserve Bank of India (RBI) collected data on daily family income flows from 107 poor households in Ernakulam district ...........
Small industries’ appeal to RBI
....The units here should also get similar interim relief from the banks. The industrial associations in Coimbatore have made several representations to the RBI suggesting steps for interim relief to MSMEs, such as one year moratorium on repayment of loans..........
Time for India Inc to engage in soul-searching: Experts
........"It's time for Indian corporates to engage in soul-searching on why they are not able to export even at this low level of the rupee, and are looking for anti-dumping duties,"...........
The current account deficit of India's high
Speaking at the 26th meeting of the Group Finance Association South Asian Regional Cooperation (SAARC FINANCE Group), by the State Bank of Pakistan has hosted in Islamabad, Mr Deepak Mohanty, director of the Federal Reserve Bank India (RBI, the country's central bank) said that India must increase exports in response to the challenges of the current account deficit (CAD) is present at high levels. ..........
Read.............
Read.............
RBI prepares ECB balm for corporates battered by rupee
........The RBI has been in consultations with the finance ministry in this regard, including on the risks involved in unhedged ECB exposures of companies and its impact on the stability of the economy, sources said. Currently, ECB is allowed mainly for capital expenditure towards new projects and capacity expansion. However, with the RBI permission, capital expenditure incurred in rupee can be refinanced through such foreign currency loans..............
Chidambaram calls for calm
......“We are watching the situation. The RBI will take whatever action it has to take. We have good economic advisors. We will [do] whatever has to be done ... My request is you should not react in panic, it’s happening around the world.”.........
RBI, finance ministry comments prop up rupee
.....“The RBI came in strongly to protect the rupee from falling below 60 per dollar yesterday (on Thursday) and that has clearly drawn the line for the market. Also, there have been positive comments from the finance ministry and RBI since morning which has nudged banks to cut their long dollar positions. We expect exporters to also sell dollars at these levels,”..................
RBI to take every necessary step to stem rupee fall, says HR Khan
Amidst rupee touching new life- time lows, Deputy Governor HR Khan today said the Reserve Bank will take every step required to stem the plunge of the domestic currency. "We are watching and monitoring the situation.All steps that need to be taken will be taken," Khan told reporters on the sidelines of an event organised by the National Payments Corporation (NPCI) here...........
Private banks mull exit from gold coin business
..........RBI has imposed restrictions on gold imports by banks. Hence, we are discouraging sale of gold coins in our branches. For all practical purpose, the business is as good as suspended," .........
Trade urges Govt to ease gold supply shortage
............. “If corrective measures are not taken, this Rs 275,000-crore industry would be brought to its knees. It will be pushed back to early 90s when much of the gold need was met through unofficial channels including smuggling,” ....
Friday, June 21, 2013
फाइनेंशियल इन्क्लूजन बैंकों के लिए मौका
Change for the better?
...................... Despite his attempts, there are times when customers get away with giving him short change. “If only our notes had Braille numbers!” says Nagaraj. How friendly are our rupee notes and coins to the visually-impaired? “I find it difficult to differentiate between the present Rs. 5 and Re. 1 coins. They have the same size. Sometimes, I have to take someone’s help to identify them,” says R. Vijaykumar, a visually-impaired M.Phil student. “In the past, coins were all of different sizes. Rs. 5 coins, for instance, were thick. That made life a lot easier for us.”.............
Coin-troversy
The Reserve Bank of India recently released a coin in the denomination of Rs. 5 to mark the silver jubilee of Shri Mata Vaishno Devi Shrine Board (SMVDSB). No sooner did the coin go in circulation than its secular credentials came under heavy scrutiny. Members of several communities have taken umbrage at the religious overtones of the legal tender, and plan to stage a protest against it...........
RBI GOVERNOR Has Sent Me Rs. 4.21 Crores
You may be surprised or even envious to know that I am going to become a CROREPATI from BHIKHARI. My long standing dream of becoming Crorepati has at last come true by the intervention of our India's esteemed bank, RBI. An e- mail from RBI would grant me Rs. 42,168,524.50 on the condition of making a payment of Rs. 12,362 and provision of my personal bank details. E-mail is from Ma'am Angel D' Souza of RESERVE BANK OF INDIA..........
New-age Tech Facilitates Customer Care
.........At India’s second-largest private lender HDFC Bank, for instance, a customer applying for a loan only has to submit account credentials through a smartphone using the bank’s customer-support platform. The system, which incorporates all information
pertaining to the customer, will analyse the credit background
instantly and accept the application through the touch-based screen on
the mobile phone. Using predictive analytics tools, the system also
offers new services to existing customers based on their previous credit
history. “Potentially, a man with a smartphone will have the same capabilities as an entire bank branch.........
De-jargoned: Shadow banking
....Since operators in the shadow banking system can be highly leveraged, they could face liquidity crisis which can very soon turn into a solvency crisis. Since institutions in the financial sector are interconnected and interdependent, failures in the shadow banking could also pose a systemic risk. Therefore, it is important that regulators are alert and.............
Why our bankers are like Gabbar Singh
...............Indian Bankers are the Gabbar Singh of today. Like Gabbar, they sense the macro opportunity of a vacuum. In Gabbar's reign there were few cops to challenge him and he could rule the ravine. With no legitimate law enforcement, Gabbar was the law. No one could touch him but he could knock off anyone, even members of his own gang. Our banks know the great macro story that gets harped from North Block to Mint Street: India needs more banks.............
Can KYC sanitize Indian banks?
...........On a macro level, the KYC lapse is a problem of corporate governance. While the RBI has done its job well and would continue to do so, it's also the responsibility of the stakeholders to ensure that corporations are being transparent and honest and that the management does not engage in unethical practices that would prove detrimental to the vested interests............
Read..........
The slow regress in banking
.....The process of liberalisation having begun, the loss of the RBI’s control and the restoration of private influence over banking is difficult to stall, let alone reverse. Perhaps for that reason the RBI has not kept its promise, made in the February guidelines, to come out with an overall policy discussion paper on banking structure in India within two months. Realising that structure may not be possible. All that the RBI has managed to do and is likely to strive to ensure is that the transition is slow and long drawn, much to the irritation of the “reformers”............
How private are public banks?
.......This suggests that in terms of equity ownership and business behaviour, India’s public banking system is only a short step away from coming under private control, though that would require the revision of the principle mandating at least 51 per cent government ownership of equity in public sector banks. If such a change comes about it would have a far greater transformative effect on Indian banking than would the entry of new private banks at the margin. So while the response to and after effects of the third call for bank licences from the private sector is a matter for concern, the real danger may be the creeping trend towards denationalisation which would completely erode the many benefits that public banking delivered.
Aadhar will bring transparency in the banking sector: Latha Venketesh
......I should think aadhar will bring some transparency in the banking sector. Assuming your fingerprints cant be duplicated, all you bank accounts will be known and it should be possible to track black money as well. Again people with credit card loans can't go around to different banks and keep taking more cards and more loans.......................
It was business as usual for NBFCs despite Crime Branch raids three years back
.......Not only CB, in July 2009, the Reserve Bank of India (RBI) had also warned all nationalised and private banks not to have accounts of 10 MMCs including..........
Analysis: FM's push to PSU banks, a case for short selling
.........While private sector players are not willing to invest in these long gestation and government controlled projects, public sector banks are being compelled to do so. The renewed push will only make matter worse for public sector banks.........
No plan to trim savings deposit rate from 6%: Kotak Bank
............ "We will maintain the 6 per cent rate for some time. We have no plans to change the rate this fiscal," president for consumer banking KVS Manian told reporters on the sidelines of a bank event here. He said the bank has more than doubled its savings account base over the last 18 months, ever since the Reserve Bank of India (RBI) deregulated interest rates on the product helping it tap into the market with an aggressive offering.............
RBI cancels licence of Vaishali Urban Co-op Bank, Jaipur
......This is in view of the fact that Vaishali Urban Co-operative Bank, Jaipur, Rajasthan, has ceased to be solvent, all efforts to revive it having failed and the depositors being inconvenienced by the continued uncertainty, the Reserve Bank of India delivered the order cancelling its licence to the bank on Jun. 12, 2013............
LIC Housing Finance to apply for bank licence
.........V K Sharma, managing director and chief executive officer, LIC HFL told Business Standard, “we have decided to go ahead with the application but other modalities like setting up of non operative financial company (NOFHC) are still being discussed.” “There is a separate committee looking into those matters” Sharma added................
Read | Business Standard
Analysis: Paying the price of running the economy on hot money
...The government has tried every trick in the book to improve the deficit situation, but is not been able to control it. It has put restrictions on gold imports, which helped only for a short duration of time. Investors still find gold a much safer asset class than other financial instruments. With bond yields falling and only few stocks in the equity markets holding it up, there are few avenues left for investment.......
Sebi sets up local office in Chandigarh
..........The new local office would look after the regulatory aspects of investor protection, facilitate redressal of investor complaints, financial and investor education, among other functions, across Chandigarh, Punjab and Haryana. "Its role and responsibility shall extend to the areas falling under the territorial jurisdiction of Union Territory of Chandigarh, State of Punjab and State of Haryana," Sebi said...........
ICAI organizes seminar on audit of co-operative societies
....."Auditors should audit thoroughly and submit their reports to the cooperative banks and societies as the same are required by Reserve Bank of India and other government regulators. They shall also guide the management in weak areas of the society...........
Bernanke unleashes virtual tsunami in financial markets
U.S. Federal Reserve Chief Ben Bernanke set off a virtual tsunami in global financial markets on Thursday after he hinted that the American central bank could start winding down its massive stimulus programme this year. While stock markets, including India, crash landed, commodities, currencies and shares tumbled to unwanted milestones......
RBI hamstrung by $290bn reserve
........But
while the 60-level has been protected, markets are far from assured as
RBI’s forex reserves of $290 billion are just enough to cover seven
months of imports. Efforts by policy makers, economic advisor to the PMO
Raghuram Rajan and Planning Commission chief Montek Singh Ahluwalia — to talk up the rupee also didn’t yield much results.............
Making the most of a mini-crisis
...........So how can the rupee recover? The quickest way is for the Reserve Bank of India (RBI) to use its dollar reserves to buy the rupee from the market, thereby stabilizing the currency. Some think the RBI can afford to do so because its foreign reserves are now equivalent to 15 percent of GDP, almost double the level in 1998. .................
Out of currency
.............While the rupee has declined sharply against the dollar, it has also depreciated significantly against the euro and the Singapore dollar, while declining somewhat against the Japanese yen too. This suggests a combination of the general weakness of the rupee, as well as the strength of the dollar. Other emerging market economies (EMEs) dependent on foreign capital flows have also experienced currency declines against the dollar, with the rupee, along with the South African rand and the Brazilian real, having been hit particularly hard..........
Will rupee become senior citizen? RBI says no
........"We have a range of instruments. We can call on them as and when needed. We will not flag them. The ministry of finance, RBI (Reserve Bank of India) and SEBI (Securities and Exchange Board of India) are watching developments closely and take action appropriate. We should not let ourselves to be led by the market into directions we do not want to go," said Raghuram Rajan, Chief Economic Advisor in the Finance Ministry in New Delhi.
Don’t try to control the rupee
.....When the rupee moves, there are gainers and losers. Among the gainers are those who export to the world. Figure 2 shows the real effective exchange rate of the rupee. This shows that the rupee has not appreciated like the Chinese renminbi has, or depreciated like the South African rand has, but roughly remained stable. The real effective exchange rate is what determines export competitiveness. There has been domestic inflation in India, and what has kept Indian exports competitive is the rupee depreciation. If like the Chinese currency, the rupee had also not depreciated, today Indian exports would have been even less competitive...........
Re flirts with 60, markets in tailspin
....Also, higher inflation will limit RBI's ability to cut interest rates dimming hopes of lower loan EMIs for individuals. Also, the record current account deficit - the difference between dollar inflows and outflows - may restrict RBI's scope to prop up the rupee. The apex bank could do this by dipping into its $290 billion of foreign exchange reserves, enough to cover imports for seven months, analysts said..........
Weak rupee casts shadow on rate cut in July policy
Hopes for a cut in policy rate from the Reserve Bank of India (RBI) in the July policy review are fading fast with the rupee coming under renewed pressure after the US Fed chairman Ben Bernanke hinted they might taper the QE later this year, which led to a sell-off in the emerging market currencies...........
On day of panic, RBI brass connect with treasury chiefs
.....One of the Deputy Governors of RBI is believed to have spoken to select banks to get a feel of the market mood and send a message that RBI was watching. When contacted, two public sector executives conceded such an interaction took place but declined to elaborate further, saying the matter was confidential. The treasury executive with a public sector bank commented: "This happens but it is not common.".....
Montek on rupee: RBI has a lot of firepower and they will intervene
.......The rupee fell to a record low of 59.94 to the dollar, breaching past its all-time low of 58.98 on June 11. Dr Ahluwalia said the further decline in the rupee was caused by Fed's statement and on global economic uncertainty. It is not just the Indian currency but currencies of other emerging economies like Brazil, South Africa and Mexico too have depreciated, Dr Ahluwalia said.........
It is the job of RBI to manage rupee: Montek Singh Ahluwalia
.........Currency is volatile everywhere and currencies do move sometimes a little beyond what people expect. That is the job of the Reserve Bank to manage and I do not want to add to speculation on what they will do and when they will do it. We need to watch the situation and see how the bank handles the problem.......
That sinking feeling
.......For finance minister P Chidambaram and RBI governor D Subbarao, a persistently weak rupee adds to an array of problems. There is precious little any government can do to keep hot money from flowing out, but it can very well open the doors wider for dollars to flow in........
Thursday, June 20, 2013
RBI ED Bhaskar, IAS officer Krishnan join FPSB Board
FINANCIAL INCLUSION DRIVE SHOULD BE TREATED AS BUSINESS OPPORTUNITY: RBI
Reserve Bank of India, Bhopal organised a meeting of Financial Literacy counsellors on Friday in hotel Courtyard Marriott, Bhopal. The programme started with a screening of a short film prepared by RBI, Bhopal, telling the banks that financial inclusion drive need not be perceived as a liability instead it should be treated as a business opportunity as an enormous fortune lies at the bottom of the pyramid. Chairperson of the event, Aruna Sharma, Additional Chief Secretary and Development Commissioner, Panchayat, Rural development and Social Justice Department, Govt of Madhya Pradesh. PR Ravimohan, Regional Director, Madhya Pradesh and Chhattisgarh RBI, Bhopal, Umesh Singh, SLBC Convenor; Rajendra Singh, CGM, NABARD; Manas Mohanty Member of Faculty, College of Agricultural Banking, Pune addressed the gathering. Controllers of lead banks in Madhya Pradesh and FLC counsellors of 47 districts of Madhya Pradesh attended the programme.............
HDFC hosts customers’ meet in Shimla
Shimla: HDFC Bank on Wednesday organised a town hall meeting for customers in Shimla under the aegis of the RBI. The meeting was convened to educate the bank customers about the Banking Ombudsman (BO) scheme for grievance redressal put in place by the Reserve Bank of India. R K Sood, BO, Chandigarh was present at the event, which was attended by HDFC Bank customers.
The Pioneer
The Pioneer
RBI's star power
........ And, because of the chronic uncertainty that plagues any new policy in India, he added half-seriously, "More than my own stars, it has to be RBI's stars !"
Bank of Maharashtra responds to whistle-blower report
......In the first instance, we wish to sincerely clarify that Mr. Tuljapurkar is not a whistle-blower at all. The complaint made by him to the Governor, Reserve Bank of India, on the issue of the grant of a loan of Rs.150 crore to United Spirits Ltd. was based on information that was available in the bank and [was] not a matter of any discovery, as such being a routine business decision taken at the highest level by the Credit Approval Committee of the bank on merits […] We wish to specifically mention that the said account has been proved to be extremely healthy and remunerative to the bank […].............
Bank of Maharashtra - Alok Deshpande’s rejoinder
...........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?.............
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.”..................
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