Devotion and Involvement.......... thy name is VITALINFO Dailyzine................

Dear Mangesh,

I was not in town for quite some time. Hence when a topic came up of institutionalisation of VITALINFO, I could not offer my comments immediately. VITALINFO is just like a child for you. You brought this up somewhere about three years back with the same devotion a parent brings up his child and it is well established now. Serving and the retired RBItes eagerly await everyday the appearance of VITALINFO on their comps just like waiting and getting the printed copy of the newspaper. VITALINFO has become a habit like having a cup of tea in the morning You must have it. For this only one person who is responsible is Shri Mangesh. Hats off to him for the devotion and involvement in bringing out the issues of VITALINFO day in and day out. As Shri Mangesh has brought out this VITALINFO from nowhere and made it a big success, I feel it should continue to be under his leadership as long as Shri Mangesh likes it. No need of tinkering with it.  As long as Shri Mangesh likes to have it under his care, let it be with him. A personal word from me; I know Shri Mangesh from the day he reported for duty in Finance and Accounts Department of ARDC in the year 1980. Shri Mangesh continues to be humble devoted and highly involved. I wish Shri Mangesh all the best and so also to VITALINFO. 

- N.D.Laxmikantha, General Manager (Retd)

Obituary

I am sorry to inform you about the sad demise of  Shri Deen Dayal Garg last night at Jaipur. He was my colleague as Faculty Member in CAB, Pune. Before that we were together in Hyderabad for about 6 years. He was in-Charge of DEAP in Hyderabad. He was also President of  RBI Officers Ameerpet  Quarters residents  Welfare Association. As the Quarters were new he took lot of initiatives in organizing various activities and facilities  for the families and children of residents. I was closely associated with him in all these activities for almost 13 years. He was also my neighbor in Parijat Officers Quarters in Pune. He was a very popular faculty and his lectures were always enjoyed by the trainees and other faculty members. He had expressed his desire to donate his body to Mahatma Gandhi Medical College and Hospital at Jaipur. His son Sumeet informed me that this has been done as per his wishes. I pray for the departed SOUL. MAY HIS SOUL REST IN PEACE. 

-R.M.Deole, Ex-CGM

Yes, minister !

.............On the central bank front, I have found two key changes reassuring. First, the frequency of communication has reduced. This, I have learnt from experience, helps rather than hurts in times of severe crisis. The more the number of sound bites from policy makers, the greater is the scope for confusion and the consequent volatility in the markets. Second, the bulk of the communication from the central bank on the rupee and markets has been coming from the Governor, and not from his deputies. While the central message has not been any different from the past - that it is somewhat pointless to lean against the hurricane of a pan-emerging market currency sell-off - the fact that it has come from the top boss has made a difference.............

Read | Business Standard

RBI gives in-principle nod for an all-women bank

NEW DELHI, JULY 2:  The Reserve Bank of India (RBI) has given its in-principle approval for the Central Government to set up the country’s first all-women bank. The proposed all-women bank will be the first ever commercial bank to be floated by the Central Government. It is expected to have a pan-India presence with six branches to start-with. The headquarters for the all-women bank is likely to come up at New Delhi...............

Read | Business Line

My View on "Kaun Banega RBI Governor?"

Last year, Dr Subbarao had, in media interactions, indicated that 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. Assuming he will not press for being relieved, 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 s/he may be, will be a risk GOI should better avoid. For the new incumbent also, it will save a lot of ‘adjustments’, if s/he takes over post-2014 Elections. My plea is in the interest of continuity at the top. RBI has seen the way in which postings of Rakesh Mohan and Gokarn(to name just two) were handled in certain circumstances. Across government, public sector and private sector, it is high time GOI gave serious thought about succession plans at the top. In SBI, out of top 72 executives at the highest level 60 will retire before March 31, 2015, according to one media report. Several institutions are headless wonders. Personally, my view is that, as stated here appointments to posts like Governor, RBI should be for a minimum period of 5 years, with provision for reappointment for a further equal term. Retirement age has become a joke, with average age of ‘decision makers’ crossing 65.

- M.G.Warrier

It is very unlikely that any extension would be granted to Shri Subba Rao. Shri Subba Rao would not also accept it in the unlikely event of such an offer being made to him as he is a man of great principles and integrity and would want people to know that he had seriously meant what he had told the Government that he is not interested in any further extension. He would perhaps go down in the History of RBI as the only Governor who had made his intention of not wanting any further extension clear even at the beginning of the first extension of tenure which made his tenure for 5 years which should have been the tenure even in the first instance. 

- A. Chandramouliswaran

Who is a good regulator

....... the term of Reserve Bank of India governor D. Subbarao is coming to an end. Securities and Exchange Board of India’s chairman U.K. Sinha recently won praise for sticking to his stand on minimum public shareholding norms. Here’s a look at the qualities that a regulator should have:..................

Read - Mint

26 reasons for the RBI Governor to lose sleep !

 ..............it might seem easier for a camel to pass through the eye of a needle than to get a bank licence! But, then being Governor, RBI, was never meant to be bed of roses!.............. 

............In theory it is easy to separate wheat from chaff while granting bank licences; in practice it will test the RBI governor's mettle. The life of the Reserve Bank of India (RBI) governor has just got tougher! As if battling currency and economic slowdown woes was not enough, Governor Subbarao now has 26 new reasons to lose sleep! Twenty-six applicants have made a pitch for a private bank licence.................

Read - ET

FM takes on Subbarao again

In a veiled message to the Reserve Bank of India ( RBI), Finance Minister P Chidambaram has hinted that it should not focus solely on containing inflation but also look at the larger mandate of growth and creation of jobs. Ahead of his meeting with PSU bank chiefs today, he also said banks would have to be heard before advising them on taking a balanced view about passing on the benefit of rate cuts to consumers. " RBI must understand its mandate in a broader sense............

Read | FPJ

India's aspiring banking moguls fail to impress: Andy Mukherjee

.........The Reserve Bank will have to debate the wisdom of letting these shadow lenders have access to low-cost retail deposits. Some of them have concentrated risk exposure to one business or asset class - such as trucking, or gold. As deposit-taking institutions, they might pose a risk to the system. The central bank has imposed strict conditions to ensure the new lenders are safe. They will have to park 4 percent of any deposits they attract with the RBI as cash, and invest another 23 percent in government bonds. This will limit their ability to finance lots of new loans. However, it also means.............

Read - IE

Bank licences: If some of these guys can run a bank, so can I

........Why should broking houses like JM Financial or a Tourism Finance Corporation or an infra company like SREI Infra want to start a bank? Why should India Post, which runs a fairly inefficient postal service and a shoddy postal savings scheme, think it can run a bank? The RBI has been busy trying to circumscribe gold loan companies from expanding their operations, but that hasn’t stopped Muthoot Finance from throwing its hat into the ring. Maybe, just maybe, the Muthoots of the world want to become banks merely because the RBI is not so nice to gold loan companies............

Read..........

Why haven’t more companies sought bank licences?

Monday, the last day for the submission of applications for bank licences on Monday, saw a rush, not the anticipated stampede. Two decades ago, in 1993, when the Reserve Bank of India (RBI) opened doors to new banks for the first time, there were 113 applications. A decade later, in 2003, when applications for licences were sought a second time, there were around 100 applicants. This time, there are just 26. This, after it was reported that just about everyone was keen to enter the sector—banking, after all, is a lucrative business as it gives one access to cheap deposits. And 50% of India’s adult population does not have access to formal banking services. What’s wrong with the Indian market?.............

Read - Mint

With only 26 banking aspirants, RBI's job is half done

........One reason could be the stringent norms put in by the central bank for issuing licence, both in terms of monetary requirement and compliance. Even Chidambaram has said that the only criteria for licence would be clearing the eligibility criteria. If everyone is eligible, all would get a licence. And it is widely believed that since the RBI  gave enough time for the applicants to meet the criteria and submit their proposals, most would have ensured that they meet the eligibility criteria atleast on objective grounds. That leaves RBI to reject their application only on grounds of subjectivity............

Read | Business Standard

Big boys come out to play as battle for banks begins

.........The country today has 26 public sector banks, 22 private sector banks, 41 foreign banks and 56 regional rural banks, but more than half the population doesn’t have access to banking services. That’s where the central bank’s financial inclusion agenda comes in. The RBI has mandated that a fourth of a new bank’s branches must be set up in unbanked regions. More than the R500 crore of minimum capital — not a large amount these days — the bigger entry barrier will be the RBI’s “fit and proper criteria” and passing muster will not be easy.........

Read - FE

No ceiling on number of new bank licences: Chidambaram

............."If there are very few eligible applicants, then the number of banks that will get licences will also be few. I don't think that the Governor has any ceiling in mind,"..................

Read | Business Standard

Adding 'spice' to the banking licence

On June 21 when the Reserve Bank of India (RBI) said incomplete applications or those received after July 1 would not be considered for new bank licences, a new company got registered itself under the Companies Act and exactly 10 days later it was in the queue at the central bank headquarters for a bank licence. Noida-based Smart Global Ventures Pvt Ltd, which applied for a banking licence along with 25 other aspirants on Monday, is a new firm owned by the Spice group. S Mobility, which was formerly known as Spice Mobility, got it registered with the Registrar of Companies on June 21.....................

Read | Business Standard

India Post needs to become corporate for banking foray

.........The application by the Indian Postal department, which is a division of the ministry of communication and information technology, has raised some curiosity in the Reserve Bank of India (RBI). This was because RBI’s new bank licence norms – that was released in February this year – talked about new bank licence in the ‘private’ sector. Since India Post is a part of the ministry, it cannot be considered as a private sector entity..............

Read | Business Standard

We plan to have around 70% of branches in rural areas: Hemant Kanoria

........We are planning to have around 68-70% of our branches in the rural areas. We will convert some of our centres in a slow and systematic manner or add a branch near the centre and so the progress will be slow initially. We are planning to have a larger rural presence and then have some urban presence rather than the other way round..........

Read | Business Standard

No cap prescribed for bank licences: Takru

.............At this stage, anybody who has applied would be considered a serious applicant. Now, the RBI will go through the process of identifying those who meet the criteria out of the 26 who have applied. After that we would know who all have been shortlisted. Then we move on to the next phase where they have to make priorities. So it is only at that stage that a final comment can be passed...............

Read | Business Standard

Losing on licence

Shares of most companies, which applied for banking licence, declined on Tuesday, a day after they submitted the papers to the Reserve Bank of India. Analysts said the recent euphoria in these stocks would fizzle out in the near term, as there is uncertainty about when the licences could be granted..............

Read........

Parent branding to have a big role in banking foray

..........Some experts caution that an established brand name could help a company after getting the licence to win new customers, but the regulator might not consider this while taking a call on issuing licences. "While for the layman, branding would appear to make a difference, RBI will examine all prerequisites ranging from the track record, governance record, management, etc before taking a decision. A brand may be strong, but RBI would certainly like to ensure the enterprise has it in it to succeed by meeting all the other commitments," says D R Dogra, chief executive officer and managing director of CARERatings.

Read | Business Standard

Banking on openness

.........The challenges of bank supervision and limited supervisory capacity will need to be overcome. The proposed Indian Financial Code has suggested two new elements that will help improve capacity. One, a banking regulator, whose job is to ensure consumer protection, and a much stronger law to anchor it. Two, the setting up of a resolution corporation whose job will be to help minimise the burden on the taxpayer. The resolution corporation will also, alongside the RBI, supervise all banks. This will mean additional supervisory oversight over the new banks. The RBI needs to give new licences, but the government must ensure that it brings in improved customer protection and a resolution corporation as it does so.

Read - IE

Banking options

.........The RBI has been accused of leniency towards banks and officials perpetrating irregularities. Its response to the recent Cobra Post expose, showing commercial bankers aiding in money laundering, should have been harsher. By penalising three banks a pittance -- between Rs1 crore and Rs5 crore -- and not demanding the heads of senior officials, the RBI has cut a sorry figure. With new players, who bring along the risk of conflict of interest, the RBI must show willingness to flex and use its regulatory muscle.

Read - DNA

More bank for the buck

.............RBI’s job in selecting candidates isn’t going to be easy—India Post, for instance, looks well-positioned to deliver on inclusion given its rural reach even though its track record is quite poor on various other parameters. The important thing, however, is that RBI has an impressive list to choose from. Meanwhile, even as new players come into the banking arena, the finance ministry and RBI would do well to facilitate mergers and takeovers; consolidation could bring about greater efficiencies.

Read - FE

Banking licence: Biggies set to gain, small players will lose

The new banking licence will allow large industrial houses like the Tatas and Reliance to gain because it can mitigate the risk of venturing into non-banking areas. However, it will be a death trap for smaller players as they move into areas where money can't be made.............

Watch the video and record your reply...........

New Banks: Discourage Any Bet on Rules Change

...........The Indian ‘License Raj’ landscape has been full of changing goal posts and favouritism in the name of course correction with changes in rules to tailor the needs of businesses — be it the US cola companies, which were permitted with a clause on mandatory public shareholding, or scores of power companies, which are obliged with changes in tariff structure, or usage of resources. Twenty six applications to own banks – some surprising ones and some familiar ones dropping out – raise the question whether the optimists are hopeful of having their way once the licences are given, or that the pessimists have thrown in the towel even before the first ball was bowled...............

Read - ET Mumbai Edition page 18

RBI may cut CRR, postpone repo rate cut till rupee stabilises

.........."The RBI will understandably want to avoid controversy by cutting rates till the INR stabilises. Yet, we retain our 75 basis points (0.75 percentage points) RBI rate cut call for FY14," the report said, adding in its July 30 meet RBI is likely to skip rate cut to avoid any controversy. "We continue to expect the RBI to cut CRR the mandatory portion of cash banks have to park with RBI --by 25 basis points, on July 30, to revive growth, if INR volatility prevents it from cutting rates," ..................

Read | Business Standard

Nabard’s largesse takes rural poor for ride

..........Investigation reveals that Mr. D. K. Mittal’s brother, Dr. Sanjeev Kumar Mittal is on the Board of Shivalik Bank. During his tenure as DFS Secretary, Nabard, Mr. Mittal permitted Urban Cooperative Banks, which are under the RBI’s supervisory jurisdiction, to promote and finance Joint Liability Groups (JLGs) in rural areas. Shivalik Bank went on to become the lone beneficiary of this concession.................

Read - The Hindu

RBI moves to curb rupee speculators

 Concerned about the rupee’s fall to a record low, India’s central bank has discreetly phoned trading desks with unusually explicit messages to cut their speculative positions in the currency, said three senior market participants with direct knowledge of such calls. While the Reserve Bank of India (RBI) regularly monitors positions and flows in the currency market, these people said it was unusual for the central bank to call so often or state so explicitly that banks should cut their intraday net open position limits—or their outstanding positions in futures and forwards markets............

Read - Mint

Forex crisis: When will we ever learn?

A non-financial newspaper broke the news. It front-paged a story that foreign debts to be repaid in the next nine months plus deficits on trade account for oil imports will consume most of our reserves. Was it not possible to foresee this? After all, we have always had a Finance Minister, a Finance Ministry with a slew of bureaucrats and advisers, an Economic Advisory Council to the PM, a Planning Commission and the RBI, not to mention the several Government and RBI-funded thinktanks — establishments (with sensor-driven toilets) costing taxpayers hundreds of crores of rupees every year...................

Read - HBL

Rupee expectations: a self-fulfilling prophecy of RBI - Renu Kohli

...........This is what forced the central bank to depart from tradition with its quicker data release, not, as some reports suggest, a preference for a positive surprise. A belated attempt to dislodge entrenched expectations about the rupee’s weakness, it remains to be seen if the RBI can now successfully reshape market beliefs about the rupee’s fair value. The story may not yet be over.

Read - Mint

Banks to up provisioning for unhedged foreign currency exposures

The Reserve Bank of India on Tuesday introduced incremental provisioning and capital requirements for bank exposures to corporates having unhedged foreign currency exposures. These measures have been introduced as unhedged foreign currency exposure (UFCE) of corporates is a source of risk to them as well as to the financing banks and the financial system. Large unhedged forex exposures have resulted in accounts becoming non-performing in some cases............

Read = HBL

Wealth mgmt: Kotak says separation will not solve mis-selling

......"My view is that if you run it properly as a separate division with clearly identified process, it works. And the way we are thinking about is: do whatever is right for the customer and everything else follows,"............

Read | Business Standard

FM might ask banks to review lending rates

As banks choose to hold their lending rates despite rate cuts by the Reserve Bank of India (RBI) in the last few months, Finance Minister P Chidambaram might ask public sector lenders to review their interest rates............

Read | Business Standard

Gold turkey

...........The government has tried many measures to discourage savers from buying gold. A few days back Palaniappan Chidambaram, the finance minister appealed “everyone to resist the temptation." But the answer lies in offering better real returns for savers. With that in mind, in early June, the Reserve Bank of India (RBI), the central bank, which manages the government’s debt auctioned 10 billion rupees ($170m) of 10-year inflation-indexed bonds. It was the first time it had sold such "linkers" in a decade............

Read - The Economist

RBI diktat hits gold buyers hard

...... "The directive is totally unwarranted. It curtails the freedom of a person. As far as a customer is concerned, it is his or her right to decide whether to pay in cash or use credit card for purchasing gold ornaments," said Kerala Chamber of Commerce and Industry (chairman K N Marzook. While the government was promoting accountability in transactions on the one hand, directives like this would promote the circulation of black money, he said. "There is accountability in transaction if someone uses a credit card," he added..........

Read - TOI

Trucks with 200 cr in cash, gems seized on fake currency tip-off

.........While the Reserve Bank of India has sent officials to the I-T department to ascertain if the currency notes are genuine, the NIA has denied any terror links to the cash seized. The NIA reportedly got involved as the source who provided information on the consignment was an agency informant.......

Read - TOI Mumbai Edition page 3

Rupee slide: Libraries may axe foreign publications

.........One of the many such cases is the Indian Institute of Management, Bangalore, which is mulling to cut on number of books being ordered from outside the country. "Every year we order about 2000-2500 such books. However, the rupee depreciation is costing us over 10 per cent more for ordering these books. Since we usually order throughout the year, this academic year we may have to reduce the order," said a source at the institute's library on condition of anonymity...........

Read | Business Standard

YES Bank says Shagun lacks proven track record

..........."The committee considered/reviewed the application of Shagun Gogia purely based on merits in the best interest of the bank and not based on any technical or legal aspects involving her nomination," the minutes said. While the committee found Gogia met certain basic eligibility criteria like age and qualification, her experience and track record was not commensurate with the profile of directors of other peer banks..............

Read | Business Standard

PSBs Reward Staff to Recover Loans

....“In a normal situation, a banker is expected to do recovery of loan, but these incentives are typically given for old NPAs where special effort has to be put and which are typically beyond call of duty,”..................

Read - ET Mumbai Edition page 10

Banks moving in the right direction to cut NPAs: Rajiv Takru

............Of the 26 players who applied for a bank licence on Monday, many don’t seem to meet the conditions prescribed by the Reserve Bank of India (RBI), but Financial Service Secretary Rajiv Takru says they are all eligible at the moment, and it is only after a proper examination and verification of their documents that the RBI would eliminate non-serious players and prioritise the serious ones.......

Read | Business Standard

Tata, Birla, India Post among 26 applicants for bank licences

The 13th floor of the Reserve Bank of India’s headquarters in south Mumbai saw an unusual sight: many visitors carrying huge cartons filled with documents lining up before the office of Chandan Sinha, Chief General Manager-in-Charge, Department of Banking Operations and Development. The documents, some running into over 20,000 pages, were part of the applications for banking licences, the deadline for which expired today...............

Read | Business Standard

From Tata to Birla, a bank is new trophy

.......The RBI hasn’t said how many licences it plans to issue but it is safe to assume that the winners will include a mix of industry houses, state-owned companies and small financial services outfits. The regulator has already indicated that it will cherry pick industrial houses with squeaky-clean reputations, diversified ownership, and with little or no exposure to the real estate and broking businesses. It has said it would run a detailed background check on the applicants with other regulators and enforcement and investigative agencies. In the case of the Tatas and the Birlas, it will be a sort of second coming if they win the licences...........

Read - The Telegraph

Financiers look at becoming bankers

.............The common refrain among them is however making it past the tough norms put out by the Reserve Bank of India for the non operative financial holding companies. For non banking finance companies (NBFCs) particularly the process of converting to a bank and meeting provisions of cash reserve ratio and statutory liquidity ratio will be a tough call.......

Read - IE

We see case for revising norms by RBI if response for banking licences is tepid: DK Mittal, Finance Ministry

...... I understand, many of the applications will have certain conditionalities attached to them. It is up to the committee which RBI intends to set up to see whether they want to agree to those conditionalities or not. However, RBI will have a policy problem - if they agree to certain condationalities, then they have to commit general relaxation. But let me say, what would be appropriate from the country point of view, that RBI considers a granting application to everybody who is eligible rather than restricting any number............

Read - ET

Two-tier bank selection process

The Reserve Bank of India is expected to shortlist contenders for the banking licences before cherry picking the eventual winners. Banking mavens believe the central bank will adopt a two-step selection process: it will first weed out the weak candidates and then pick the winners from the residual bidders. Although the RBI has not formally announced how many licences it intends to issue, many expect it to green-light five to six banks............

Read - The Telegraph

More onus on bankers

With the economy slowing and India Inc’s debts looking worrying with the rupee slipping the way it is, it is not surprising RBI’s latest Financial Stability Report (FSR) should say macro risks have risen over the past 6 months. The ratio of India’s short-term debt to forex reserves, for instance, has risen by nearly half between March 2011 and December 2012, from 21% to 31%. That said, what’s comforting is RBI’s tests show the financial system is well equipped to handle even fairly severe stress levels. The report, however, does point to some issues that call for more prudence..............

Read - FE

You can bank on them

......The Rangarajan Committee defined financial inclusion as “the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low-income groups at an affordable cost.” So, the news that more than two dozen of India’s leading corporate houses, financial services companies, non-banking financial companies, public sector firms and India Post have applied for licences to set up new banks is a welcome one. But here, we must temper our enthusiasm for financial inclusion with some caution. Ownership of banks by corporate houses should not become a licence for crony capitalism............

Read - Hindustan Times

Holistic approach to financial inclusion

..........Before looking into the issue in the Indian perspective, we must understand what we mean by the financial inclusion. It is simply the delivery of financial services—Credit, Saving, Insurance, remittance etc. at the affordable costs to the disadvantaged section and the low income segments of society. Dr K C Chakarbarty, RBI Deputy Governor, defined the term as “Financial Inclusion is the process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular at an affordable cost in a fair and transparent manner by mainstream institutional players.” Hence it brings the positive changes to the lives of the served which ultimately lead to the social, political and educational inclusion. It is nothing but to ensure growth with equity.................

Read...........

Muthoot Finance applies for banking licence

...........Muthoot Finance’s board, at a meeting on Sunday, noted that if the promoters are granted an in-principle approval to start a bank, the shareholding structure and business of the company would have to be restructured in compliance with the Reserve Bank of India (RBI) guidelines within 18 months, the company said in a filing to BSE...........

Read - Mint

My View on "Madhu's nostalgia @ 'Father' Joseph's retirement....."

I have seen, heard and ‘experienced’ the qualities of F R Joseph excellently brought out by Madhu. I have not worked with him. He may not know me. But I know him through my best friend Somarajan. And therefore I know, the love and affection Joseph has accumulated will be a reservoir which will help him live an active, healthy, peaceful and happy post-retirement life. I wish him the best in life ahead. 

- M.G.Warrier

VITALINFO - Link with ex RBIites

Thanks Mangesh. VITALINFO is widening its coverage to include pension updates and other issues of interest to retired officers. I would appreciate gist of important circulars/developments of interest to us being included. The obituary though saddening reminds me that just as our colleagues are leaving us one by one I too should be ready to leave sooner or later. Keep improving the contents of our favourite VITALINFO.

Regards

B. Kamath, Retd. CGM

Dear Sir,

INVITATION TO JOIN EXRBITES GROUP 

EXRBITES is basically an Internet based Group of Reserve Bank of India employees, serving or retired, including those who later opted for Associate Institutions. The Group was founded in Sept 2009.  The name of the Group signifies that all of us will have to be "Ex" today or tomorrow and when retired we should not lose contact with our friends with whom we have spent/will be spending 30-40 years of our life. We are already 389 strong and still growing. The main aim of the group is to promote goodwill, maintain database of members to enable them to share any information/material/photos including their experiences/aspirations/views with other members. The membership to the Group is absolutely free. You are welcome to join. For becoming member please go to the website/homepage of the group by clicking at the following link or by typing it in your browser:-http://in.groups.yahoo.com/group/exrbites 

Once the page opens please click at “Join this Group” and do the needful. You will instantly receive a message that your request has been sent to the Group. You must have an account in Yahoo for proceeding further. If you don't have, please open one. It is very simple- when it asks for your ID/password etc, please take the page little down and click at "Create New Account". Alternatively you can also open a new account in yahoo by typing in your browser  <mail.yahoo.com>.  For any difficulty/assistance or any  further information you want about the Group please feel free to contact the undersigned at any time.
With regards
Madan Gauria Moderator
EXRBITES
Add: 1234/ 44B, Chandigarh-160047
Tel: 0172-2666780, 09915106631, 09569172198

Kaun Banega RBI Governor ?

Dr Ashok Lahiri who till recently was the Executive Director of ADB at Manila is a very strong candidate. He was the Chief Economic Adviser at Ministry of Finance and P Chidambaram had sent him to ADB in early 2007. The tenure for ED is 3 years but he has been ED, ADB for a record 6 years. He was in Delhi recently and had met both PM & FM to canvas for this position.

 Source

Do we dare imagine a foreigner leading the RBI?

.......Whether he manages to pull it off or not, the appointment is significant for India, where central bank governors struggle to protect their independence from being encroached upon by the political class. This is because interest rate is part of vote bank politics and the political class would love to have a say in the decisions related to it. Because of this their recruitment is done on political considerations rather than economic. But, it is also about a mindset. Sonia Gandhi, as a victim of intense verbal abuse for being a foreign national and chief of the Congress, would know about this better. Now, do we dare imagine a foreign national, however eminent she is, heading the Reserve Bank of India? You bet.

Read.........

A banking revolution in rural India?

Earlier this year India's central bank said it intended to issue new banking licences, as part of its plan to expand the country's financial sector, especially in rural areas. As the deadline for applications approaches many big firms are expected to be in the race, but they will need to meet tough conditions set by the Reserve Bank of India.

Watch the video.............

Fake Currency probe in Pondy underway

.....According to police, two currency notes of Rs 500 denomination and one of Rs 20 were found in the cash bundles sent to the Reserve Bank of India ,Chennai from the SBI main office here a few days back. RBI Manager Joshi lodged a complaint.........

Read........

Separate officer to probe Rupee Bank cases

.............The meeting discussed a number of issues, including hardship cases pending with the Reserve Bank of India, inquiries pending under Section 88 and appointing flying squads for filing criminal cases and giving letters to the directors asking them to furnish information about irregularities during their tenure. The list of former directors also has been provided by the department to the account holders and depositors’ committee...............

Read - DNA

When it comes to the rupee, ‘you ain’t seen nothin’ yet’

........To conclude, tough times lie ahead for the rupee. The recent Financial Stability Report released by the RBI points out that “rise in India’s overall external debt is an added source of concern.” But that is a very mild “British” sort of way of putting it. What we need here is a classic American expression. When it comes to the rupee “you ain’t seen nothin’ yet”.

Read - Mint

RBI flags external risks to financial system

..........The twice-yearly Financial Stability Report (FSR) of the Reserve Bank of India (RBI) said Thursday that risks to the banking sector are on the rise amid tight liquidity and deteriorating asset quality concerns, and the credit quality of commercial banks could deteriorate further if the current macroeconomic situation persists. It added that external sector vulnerability is emerging as a major risk to the financial system..............

Read - Mint

Canara Bank, Interest Rate and high cost of funds

...........Depending on borrowed funds at high cost to do banking business and maintaining high NPAs without disciplining the willful defaulters will naturally add to the cost of funds and bank  cannot blame RBI for that. It is unfortunate that bank is taking shelter blaming  RBI  for its miserable failure in Asset Liability Management............

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India’s gamble on gold could come unstuck

.............The debate is even acquiring a proletarian angle. Indians are estimated to privately hold 18,000 tonnes of gold, which is some 350 times the size of the official gold holdings of the Reserve Bank of India. When the import duty on gold bars was raised from 4 per cent to 6 per cent in January 2013, gold was trading at $1,692 an ounce. Gold has since fallen to $1,200, a decline of 29 per cent..........

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Lender says suit against it based on 'misconception'

....“If article 110(b) is interpreted in the manner sought by the plaintiffs, it would amount to imposing a fetter on the board of directors, the bank and the shareholders to decide on the manner in which the board should be appointed and the people who shall be appointed on the board...Such an interpretation would effectively create a pooling agreement,”........

Read | Business Standard

Govt efforts may go kaput as price fall makes gold attractive

The government has increased the duty on gold multiple times and the RBI has tried to use the credit route to choke off lending against gold. Bank credit cards will not always let you buy gold and some gold backed funds will retreat. But, the curious fact is that gold really appears to be a good buy at a time when the price is falling notwithstanding the rupee’s depreciation........

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Curbs on use of credit card to buy gold, take a swipe at online jewellery sales

.........“In just four days, our sales have dropped 20 per cent. It was first HDFC, now ICICI, HSBC and Standard Chartered Bank have all stopped their EMI option. We have been getting calls from customers about failures in payment processing,” said Gaurav Khuswaha, founder of Bangalore-based Bluestone.com. He said the RBI guidelines were for the purchase of gold coins and bars and not for jewellery. “The move will impact our jewellery sales, though we don’t sell gold coins. We are planning to take up this matter with the banks directly and also with the Gems and Jewellery Federation of India,”........

Read - HBL

My View on "HDFC Bank was probed on COBRAPOST Expose"

The clarification given by the MD, Shri Aditya Puri, does not save the embarrassment caused to it by the IT sleuths probing them. If the bank had accepted the deposits without the normal precautions expected to be observed by them, I wonder how credible IT would find their witness to be. After all, the bank cannot afford to let down the depositors after accepting their deposits in the manner they might have done. It would be interesting to know  what the MD has to say about the taped conversation of their executives with Cobrapost persons who had come to them as clients and what action has been taken against them. I find that the part-time Chairman of the bank was the Banking Secretary decade ago ( he must be about 75 years old ) and one does not know how comfortable he is at the helm of the bank after being extraordinarily strict and correct when he was the Banking Secretary. His predecessors for nearly 15 years were RBI top executives and the bank has shown its competence in carefully pitching on persons for the position of their part time Chairman !!

A.Chandramouliswaran

RBI asks banks to keep uniform charges for same services

........"Accordingly, if a particular service is provided free at home branch the same should be available free at non-home branches also. There should be no discrimination as regards intersol charges between similar transactions done by customers at home branch and those done at non-home branches," RBI said in a directive. Charges levied by banks on their customers for products and services are called intersol charges........

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RBI revises bank KYC guidelines, advises new set of norms

.........."The increasing complexity and volume of financial transactions necessitate that customers do not have multiple identities within a bank, across the banking system and across the financial system. This can be achieved by introducing a unique identification code for each customer," RBI said in a master circular on Know Your Customer (KYC)/Anti-Money Laundering (ALM), released on Monday................

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IRDA plans cap on sales by bank-promoted insurers

......With many banks starting their own insurance ventures, newer, non-bank promoted insurers have been finding it difficult to find distribution partners with a wide network. Under the current existing norms for distribution, a bank can become only a corporate agent, which allows it to sell products of one life insurance company and one non-life company and one standalone health insurance company........

Read - HBL

Complaints lower than bank branches this year, says Ombudsman

COIMBATORE, JUNE 27:  

It was a pat for bankers in the Coimbatore region when Banking Ombudsman Sujatha E. Prasad observed that the number of complaints registered by the Ombudsman Cell so far this year was lower than the branch network and customer base. “We got only 280 complaints this year. There are 503 branches of various banks operating in this region and around four million accounts,” she said. On the nature of complaints, she said that only three pertained to opening of new accounts.......................

Read - HBL