..........The bank has run awareness campaigns about fake e-mails on a regular basis through its website and other media, an RBI spokesperson said, responding to a query on e-mails, purportedly from Governor Rajan, promising high returns or jackpot wins. Rajan took over as the 23rd Governor of the RBI on September 4, replacing D Subbarao. A few months ago, there was a scam involving the impersonation of former RBI Governor Subbarao. E-mails purportedly sent by the RBI offering to transfer USD 12 million to the receiver's personal account were in circulation...................
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, November 11, 2013
World citizens
This refers to Kanika Datta's column "Natural-born biases" (SWOT, November 7). The issue of citizenship was first raised in Parliament and the "gossip" was enjoyed later by some idle mailers. The clarification provided by Raghuram Rajan should have ended the speculation. We are forgetting that such uninformed allegations will affect the prestige..........
Finance Ministry's offer to strengthen RBI
My View on "Finmin wants RBI as sole regulator for MFIs":
It is a matter of comfort that when briefed properly Finance Ministry views issues with an open mind and shows signs of a pragmatic approach in solving problems. Certain ‘subjects’ in the concurrent list, at least to the extent they relate to financial sector and economic development need a review. MFIs and cooperative banks and several other players in the financial sector try to get the best of both the worlds and get out of standard regulatory norms applicable to the business they do. The present thinking that Reserve Bank should have regulatory responsibility on all financial institutions augurs well for better management of the financial institutions. At a time when we are talking about BCs reaching out to villages not covered by banks, RBI’s outreach cannot be flagged as an issue for moving away from regulatory responsibility. Though protected with the bureaucratic insulation that it ‘cannot be a pre-condition’, Finance Ministry has offered to strengthen RBI for improving its capacity.
- M G Warrier, Mumbai
NABARD could have done wonders, but......
My View on "Proven failure of NABARD":
NABARD cannot claim to have done full justice to the economy by developing the Agriculture and Rural Sector. This institution could have done wonders to give a boost to the economy by developing agriculture which was once the backbone of the economy. In fact, the contribution of agriculture has steadily declined over a period and NABARD cannot say with conviction that after its coming into being, agriculture and rural segment have seen any concrete development. It may have provided refinance facilities and the numbers would have shown a steep increase, but the objective with which it has been established has not been fulfilled. It could have easily made each and every state to develop agriculture intensively by improving irrigation, mechanisation, productivity through some healthy and constructive competitive practices and showing improved contribution to GDP in terms of agricultural production and enhanced rural sector employment and production. When this institution has failed in its core function, how can it regulate and supervise MFIs which is emerging as a very sensitive segment of the complex Financial System. The author Dr Yerram Raju has put forth well his argument.
- Dr.T.V.Gopalakrishnan
Psychological satisfaction
Dear Sir, Well analysed. The logic is simple,either pay interest at 6.75% by hiking CRR to 4.30% or pay no interest and keep CRR at 4%, only the psychological satisfaction of having received the interest as advocated by former SBI Chief Shri Pratip Chaudhury is fulfilled, RBI monetary policy objectives remaining the same.
- Sitendra Kumar
Whose business is it?
With reference to “A one-point agenda for RBI” (Business Line, November 9), does the author mean that the RBI can and should tackle inflation on its own? There is no doubt that ‘uncertainties, paralyses and constraints’ have a direct and major impact on inflation. That being the case, asking the RBI to deal with inflation, regardless of the other factors is unfair. Why is there instability in the purchasing power of money, why does it vitiate the economic environment, and what can be done to prevent this? There are no simple answers. Inflation is largely a product of fiscal policies; whereas money supply, and liquidity for whatever purpose, is mainly due to monetary policy. Relating inflation to monetary policy means the government and the RBI have to work together. A major problem we have been having of late is not high inflation but the Government’s unwillingness to take responsibility for that and the RBI’s decency in not highlighting this point. And this explains why and where ‘‘deep reform is called for’’. The RBI cannot be made a scapegoat. Players can have their rules and the RBI can let the game be played by them; it can blow the whistle when the rules are breached, and it has linesmen to help enforce them. The quality of the game is the responsibility of the players and too many referees don’t help.
- Devraj (HBL)
Finding the past in the present of Bangalore
.....Elaborating on how the ‘government is the culprit,’ he said Cubbon Park, earlier, was an ‘English parkland’ and not the ‘urban jungle’ it is today. “But the Vidhana Soudha was constructed inside the Cubbon Park, then the Reserve Bank of India. When there is power and money, what will the poor trees do?......
Reprieve, for now
.......A downgrade would have taken India to below investment grade, which would have put off prospective investors and also raised borrowing costs for Indian companies abroad, compounding the existing problems. If this dire scenario did not play out, it is thanks mainly to the measures initiated by the Reserve Bank of India and the government to support the rupee and rein in CAD through a tight squeeze on non-essential imports. A simultaneous pick-up in exports and revival in FII fund flows, following the decision of the U.S. Federal Reserve to continue with its monthly bond-buying programme, certainly helped improve the external environment..........
Seminar on banking vision for sustainable development of SMEs
VADODARA: The Federation of Small Scale Industries (FSSI) and the Federation of Gujarat Industries (FGI) with the support of nationalized banks are jointly organizing a seminar on — Banking Vision for the Sustainable Development of MSMEs'. The seminar will be held on November 12 at FGI Business Centre here where eminent bank executives and Reserve Bank of India's executives will share their thoughts. .............
Indian worries!
......The policies of the Reserve Bank of India (RBI) vis-à-vis the Indian rupee, the national currency, has caused an alarming reaction and contributed to the free fall in the value of the currency against the American dollar. This has derailed exports and growth potential of Indian companies. While their prices are becoming more attractive and affordable to their importers, the cost of imported energy and foreign components eroded away any benefits.......
CPI and not WPI
......What is interesting, however, is that inflationary expectations—tracked regularly by RBI—correlate better with the CPI instead of the usual measure of inflation, the wholesale price index, or WPI............
How government selects bank chiefs
...........This, however, doesn’t mean that the government always takes time to act on such critical appointments in the financial sector. Had that been the case, a high-profile panel, led by the Reserve Bank of India Governor Raghuram Rajan, would not have interviewed 19 executive directors of public sector banks on 31 October for six chairmen’s positions that will fall vacant between August 2014 and March 2015...............
E - BAAT programme by RBI and Indian Bank
Electronic Banking Awareness (E-BAAT) programme was held at Hosur jointly by RBI and Indian Bank. V.Vasanthan (CGM and president, Bankers Clearing House, RBI, Chennai) and G.P.Borah, 9GM, Dept. of Payment and Settlements, Regional Office, RBI, Chennai) are seen in the photograph along with GM K Srinivasa Raghavan and AGM/ZM S Selvaraj, Indian Bank.
ET
Bank of Baroda to ramp up e-lobbies, ATMs this fiscal
The second largest public sector bank, Bank of Baroda, is in the process of expanding alternative delivery channels. The bank will set up more e-lobbies, ATMs and other card-swiping terminals across the country during the current financial year at an investment of Rs 500 crore. It has opened 35 e-lobbies where customers can withdraw and deposit cash or cheque, get the passbook updated and transact business through Net banking.........
India needs greater variety in lending institutions
.............At the same time, banks have failed to shoulder the responsibility of meeting the credit requirements of India's teeming, diverse, dynamic and under-funded unorganised sector. The sector meets 78% of its credit needs from NBFCs, moneylenders and other informal sources. And at an exorbitant cost. The way out is for the RBI to see a segment of NBFCs as the last-mile, low-cost intermediaries who would funnel the banks' own priority sector funds to the small and medium sector. This class of NBFCs should have the ability........
New norms for foreign players not to hit Indian banks: Union Bank
.......The new banking entrants will ensure more competition in the market and ultimately, will provide benefit to the consumers, he explained."The competition will pave way for introduction of more financial products at competitive prices. At the end, it is the consumer who will benefit,".......
PM's council wants govt to cut stake in banks to 51%
The Prime Minister's Economic Advisory Council has recommended phased dilution of government stake in public-sector banks, from 58 per cent to 51 per cent, and introduction of on-tap licensing of new banks. In a note prepared last week, the council, headed by C Rangarajan, said the stake reduction would help raise the additional capital required to implement the Basel III norms, meant to strengthen the banking system...........
New bank licences: Sebi scans listed applicants, group firms
As the Reserve Bank of India (RBI) gears up to issue new bank licences, capital markets regulator Securities Exchanges Board of India (Sebi) has also a job at hand that involves scrutinising all applicants coming under its jurisdiction directly or through group entities. Sebi’s scrutiny follows detailed queries shot off by RBI to various regulators in India and abroad as a part of its due diligence of entities seeking to enter banking arena.........
Foreign banks in India: Vital statistics
........Here is a brief snapshot of foreign banks in India in terms of five key parameters—branch network, capital and reserves, deposits, investments and advances......
Foreign banks get a foot in the door
.......New rules for foreign banks have been under discussion here for years. The abrupt release of the latest regulations after the close of trading on Wednesday represents the most recent in a series of moves to increase competition in financial services by Raghuram Rajan, the prominent economist who became the governor of the Reserve Bank of India, the central bank, on September 4.............
New bank licences: Sebi scans listed applicants, group firms
......According to a senior official, Sebi is looking into the capital market track-record of all the group entities of 26 banking aspirants, some of whom are either listed entities or have presence in Sebi-regulated businesses like mutual funds, brokerage and investment banks.............
Global forex probe: large banks like HSBC, Barclays, Citi under scanner
........Those looking into the matter mainly include Swiss Financial Market Supervisory Authority FINMA, UK’s Financial Conduct Authority (FCA), as also other regulators in Europe and the US, while they are also approaching Indian regulators like Sebi and RBI for the worldwide probe.............
Fresh tremors for the rupee?
.......The Reserve Bank of India (RBI)'s first major (and classical) defence was to raise short-term rates on July 15 when it both capped the amount that could banks could borrow from the repo window and increased the emergency marginal standing facility rate by a hefty three percentage points. In effect, the marginal cost of funds climbed three percentage points and pulled up all short-term rates with it. While the collateral damage of this action was huge,.........
‘No ‘sunset date’ for closing dlr window for oil cos’
............“If you are talking about special window for oil companies, there is no sunset date. No, the RBI will assess that, the first thing is volatility should not come into the market,” ..............
A new gold standard for imports
........The government should get the State Bank of India (SBI) (which is already familiar with the gold deposit scheme successfully targeting temples) to conceive and launch a visible and persuasive gold deposit scheme - with a catchy name and TV advertising - with a one- to three-year tenure for individuals. The government should define an annual cap of 200 tonnes for this scheme, to limit its effect on our current account deficit in the future since we will have to import later to pay these individuals back. As soon as we get.......
Mobile banking gains momentum: monthly deals up 150% in 2013
....Mobile banking is comparatively a new phenomenon in India as it started in 2000 when HDFC Bank became the first bank to launch mobile banking. Initially, banks did not see much transactions but a big shift happened with the advent of smartphones. Though, smartphones are now generating major traffic on mobile banking, banking transactions can also be done on basic phones......
Our confusing tax code
........Many assume paying income tax is the same as Tax Deduction at Source (TDS), says certified financial planner Suresh Sadagopan. "This is because banks do not deduct tax at source if your interest income from fixed deposits is up to or more than Rs 10,000," he says. Therefore, many make small deposit accounts across more than one bank and save on TDS. Instead of one Rs 5-lakh deposit, many make five Rs 1-lakh deposit accounts. Yet, there is an incidence of income tax liability under the head of income from other sources when you take into account all the interest incomes together. When investors put money in tax-saving bank deposits, that have a lock-in of five years, they assume the interest earned on these deposits is also tax-exempt. This is untrue............
Saturday, November 9, 2013
"Must Reserve Bank Pay Interest On CRR Balances ?" - V.K.Sharma
.........It is not that RBI cannot, and should not, pay interest on CRR as demanded in some quarters. Only that to have the desired extent of impounding to influence aggregate demand in the real economy, M3 will still need to be contracted by a certain amount. What will happen if interest is paid is that the effective/ substantive contraction/withdrawal of money will be less to the extent of interest - reserve/ primary/base money - paid by RBI and so CRR will have to be so much higher than, say 4% at present, to achieve the required contraction in M3 (Money Supply) to achieve the required compression in aggregate demand in the real economy !.........
RBI's Financial Literacy Quiz Guwahati Team wins in National Finals
Kochhar, most powerful Indian businesswoman
ICICI Bank MD and CEO Chanda Kochhar has been named as the most powerful businesswoman in India for the third consecutive year by Fortune Magazine. Shikha Sharma of Axis Bank and Aruna Jayanthi of Capgemini India have taken the second and third place in the Fortune list of 50 most powerful businesswomen ranking for 2013................
New CMD of Bank of Maharashtra
Sushil Muhnot has taken over as Chairman & Managing Director of Bank of Maharashtra. Prior to joining Bank of Maharashtra he was working as CMD of Small Industries Development Bank of India ( SIDBI). Muhnot is a B Text (Tech), MBA with CAIIB and Masters in Ecology and Environment. He has wide experience in banking and financing...........
The cycles of history
..........My third and final observation has been about the curious lack of interest on this matter in India. Scanning the Indian press from afar, I saw little comment - positive or negative - on the reorganisation from either editors or government officials. The general attitude appears to be that the Bank is an irrelevant organisation, so why bother. Personally, I feel this is a mistake. Throughout its history, the Bank has been shaped by its interaction with India and this will continue for the foreseeable future. It behoves India to take an equivalent interest in the reshaping of the World Bank.......
Proven failure of NABARD
I would add one more to the list that it has passed on to NABARD a part. Even for the Cooperative sector, it should resume the supervisory and regulatory responsibility because of the proven failure of NABARD to handle it. Secondly, at the time when such function was entrusted NABARD was owned partly by RBI whereas now it is fully owned by the State Government. Both structurally and functionally, the regulatory function of financial entities should rest with the RBI.
- Yerram Raju
Sound advice
My View on "Precautionary Margin Fund - - Dr.T.V.Gopalakrishna...":
A sound advice from a regulator banker who made extensive research on the NPAs. NPAs have reached Himalayan heights due to three factors:
banks dependence on external agencies for due diligence; excessive emphasis on rating agency ratings that has become a prerequisite under Basel regulations; and failure in credit risk assessment. These have been accentuated by the falling growth of the economy under global influence partly and policy paralysis domestically.
- Yerram Raju
Better late than never.............
The short and crisp article puts forth an agenda for reforms PSBs should have seen taking off at least a decade earlier. Post-independence, India developed its public sector with a vision which was unique and nationalisation of first group of private sector banks was the culmination of a well-planned economic development initiative starting with the first Five Year Plan. Unfortunately, the decades that followed saw a planned effort from vested interests to undermine the value and efficiency of Indian public sector. This resulted in stifling of institutions like UTI and stagnation of several public sector organisations. Private sector flourished by sucking the creamy layer of indusries and services sectors, with government support in various forms including tax relief amounting to lakhs of crores. The neglect of public sector banks in the matter of infrastructure and HR issues from recruitment of clerks to board appointments has to be seen in this wider context. This article is a timely reminder for initiating appropriate reforms in public sector in general, as private sector has only modest share in economic development initiatives affecting the majority of Indians.
- M G WARRIER, Mumbai
Role of Regional Rural Banks in Rural Development
.......... The regulations governing rural development are also covered in detail. Real-World Data gives the use of data from sources such as NABARD, RBI, GoI,and APGVB helps the reader apply the concepts and theories discussed in the book to systems and events in the World.
CREDAI concerned over rise in repo rate
........“Keeping in view the demand-supply gap in the affordable housing segment, the government needs to support the sector by focusing on development initiatives such as recognising affordable housing as a priority sector for funding and providing added incentives to the lenders and developers. The RBI should consider increasing the exposure to Commercial Real Estate (CRE) segment from three per cent to at least 12 per cent and encourage the funding of SME projects in tier-I, tier-II and tier-III towns and cities to boost the segment. Such initiatives will facilitate the flow of formal credit to the sector and encourage the developers to take up more projects in the affordable housing segment,” he added...........
Bittersweet news on interest rates
........Since the RBI is concerned that deposit mobilisation is not happening aggressively banks will have to borrow from other sources to meet the credit demand. While inflation is still not at durable levels, banks and financial institutions are not sure if the central bank will cut the rates in the coming months. It is too early for them to consider any upfront rate reduction on lending rates. In their quest to attract higher deposit mobilisation, if they increase the rates the lending rates would automatically go up which will not help resolve the issue. .......
Introduce differential interest rate system
.......“If the key short-term bank rates are raised by RBI in this manner to suck out the excess liquidity from the system to contain inflation, the industrial growth will get stunted. The RBI has to come forward with a ‘sector-specific differential interest rate’ methodology if the existence of capital intensive and SME (small and medium enterprises)-dominated segments like garment industry need to be protected,” ........
A one-point agenda for RBI
........Deep institutional reform of the RBI is called for, if India is to avoid the trap of volatile investments, economic/financial instability and recurring boom/bust scenarios. The RBI must have a narrow mandate on price stability and it must deliver on that mandate. It is no longer economically defensible to say that the RBI can be the jack of so many trades — monetary authority, exchange rate manager, debt manager (which compels money-financing of budget deficits), regulator and supervisor of banks and NBFCs...........
Election Commission did not permit Finance Ministry to inaugurate Bhartiya Mahila Bank from Delhi headquarters
............The Election Commission owing to the code of conduct for poll-bound Delhi, Rajasthan and Madhya Pradesh has not granted the permission to the government. Thus, the Bank shall now be launched from Mumbai on the due date............
Plus ça Change
..........There seems to have been as much rivalry between peers as there is today; when Central Bank faced a run in 1913, Bank of India tried to stop the wealthy Cowasji Jehangir from helping the bank. And the constant spats between Osborne Smith, the first RBI governor, and civil servants Sir James Grigg and Sir James Taylor, are reminiscent of the recent cold war between North Block and Mint Road. Dadabhoy's book is more than a mere glimpse — it's a detailed account of the evolution of India's financial sector...........
Banking on India
.......The new policy on foreign banks is hence progressive considering our own tryst with deeper financial liberalisation, though the individual banks will have to take a call on whether they would really like to get their fingers wet. It would depend on the time horizon that they are working with, and plain vanilla entry, prima facie, does not really look appealing. It is unlikely that more than a couple of the large banks would find the terms attractive as the latter stand at the moment. .........
Better bank for the buck
......It’s possible, therefore, that the larger and more entrenched banks will opt for the WoS route; though a couple of the smaller players have said they will give it a shot, some might prefer to stay with their existing models based primarily on fee-based incomes. RBI has been generous enough to give foreign banks a choice even though it would prefer they operate through a WoS since that would lower systemic risk. The rest is up to them.
US business body welcomes Indian banking sector reform
WASHINGTON: The US business body has welcomed the new RBI rules governing access for foreign banks operating in India, describing the move as a positive step and called for opening up of other areas in particular the insurance sector. ..............
Reaction Is Cautiously Positive to India’s Bank Rules
..........“We are positively inclined toward growing our presence in India under the new regulations, though the size and manner of expansion are details that are yet to be determined,” said Sanjiv Bhasin, chief executive of the Indian arm of DBS, a Singaporean bank. “At this time, any sizable global banking institution cannot ignore markets like India, China and Indonesia. It is question of the priorities of each respective bank and when it is a suitable to enter the market for that institution.”..........
Fewer, Bigger Banks Needed
This
refers to ‘Public Sector Banks Need Urgent and Bold Reform’ (ET, Nov
8). Consolidation in the PSB space requires political will, which is
missing. Agreed, even the smallest PSB now has total business of around .
2 lakh crore and a fairly large network, and merger with other banks
is not an easy proposition. But for a sound and vibrant banking system,
we need to have fewer strong banks instead of many smaller banks. A
beginning can be made by merging identified small banks with their
bigger cousins so the merged entity gains reach to acquire pan-India
presence.
- SRINIVASAN UMASHANKAR, Nagpur (ET)
- SRINIVASAN UMASHANKAR, Nagpur (ET)
RBI's foreign bank norms signal prospect of more reforms: Fitch
........"As such, the recent rules are a good beginning - but insufficient, by themselves, to shake up the domestic banking landscape. But what it potentially signals is that further banking reforms - currently being considered - are not too far off," ..........
Reduce regulatory burden to attract investors to India - Naina Lal Kidwai
.......Despite important economic reforms since 1991, regulatory burden on Indian businesses is real and these issues need to be resolved to realise our growth potential. The report of the Committee for Reforming the Regulatory Environment for Doing Business in India (or the Damodaran Committee report) agreed that there were hurdles and said: “The seemingly mindless explosion of regulations, impacting seriously on management time and cost has created a negative perception of the regulatory environment in which business is conducted”............
RBI permits third party payments for export, import transactions
.............Among the key conditions RBI said that for export transaction firm irrevocable order backed by a tripartite agreement should be in place while for import transactions firm irrevocable purchase order / tripartite agreement should be in place.......
IIMA’s biz summit to host Vinod Rai, C Rangarajan
.......The duo are slated to speak at the session titled "The Global Turmoil and India Story", which attempts to reflect upon the turbulent times that have beset the country and the resulting uncertainty in corporate decision making, at IIMA.....
Bonds to the rescue?
......What are these bonds? Has this idea come up from the Reserve Bank of India’s restrictions on bank finance to the sector like the 80:20 order? Again, are these bonds mooted on the Singapore pattern? The last 2-3 Central budgets have been earmarking substantial allocations for roads, highways, airports and ports based on the policy of encouraging infrastructure development, which is fundamental to overall economic development. However, because of budgetary constraints and the growing current account deficit (CAD) as also ......
Allow municipal bonds to be traded: Assocham to RBI
.......In a note submitted to the Reserve Bank of India (RBI), the chamber has stated that as pace of urbanisation gathers momentum and new cities are created as a consequence of industrial corridors, need for creating such municipal bond market will be of necessity...........
AMBEA concerns
......In a statement, the association said if the government does not initiate necessary steps at the earliest then it is likely that the Reserve Bank of India (RBI) may cancel the license of the bank whose normal functioning has been paralyzed due to the absence of CEO......
Govt drawing new roadmap for boosting services exports
..........On data collection, Kher said, the Kolkata-based DGCI&S will be the anchor and will be responsible for capturing data from three sources -- the RBI, the survey based exercise which Central Statistical Organisation and DGCI&S would do together and all other methods of collecting data......................
DCC bank polls: Congress wants nominations rejected
.........“An inquiry by the Joint Registrar of Cooperative Societies had proved that the bank had violated several provisions of the Act. It had introduced a one-time settlement scheme for loans without the permission of either the National Bank for Agriculture and Rural Development (NABARD) or the Reserve Bank of India. The bank had waived the principal amount of loans of several defaulters in violation of guidelines. It was also found that the bank had repeatedly advanced loans to Naranja Sahakari Sakkare Karkhane, which was a regular defaulter,” Mr. Ali said.....
Vighney, Nikhat take the honours
Hyderabad : P. Vighney Reddy of Reserve Bank of India and Nikhat Banu of Gujarati Seva Mandal won the men’s and women’s singles titles in the Swami Vivekananda 150th birth anniversary State-ranking table tennis tournament here. Vighney defeated Somnath Ghosh (SCR) 11-7, 11-5, 11-4, 11-4 in the men’s final, while Nikhat overcame A. Sreeja (GTTA) 11-5, 11-6, 11-9, 11-9, 11-7 in the women’s final.
The Hindu
Friday, November 8, 2013
Balancing Act for India’s Top Banker
His track record in his two months in office suggests a reluctance to embrace the monetarism for which the University of Chicago economics department has been known, while he has embraced limited financial deregulation. Along the way, he has avoided any signs of doctrine, preferring to see the results of each move before acting again. “I’m willing to be persuaded by the data,” he said in an interview at the central bank, in a wood-paneled reception room with one wall lined with the portraits of his predecessors............
Portrait of the real Rajan
My View on "How RBI Governor Raghuram Rajan has quietly assert...":
The cover story “His Own Man” together with the excerpts from the October 29 interview given by RBI Governor Dr Raghuram Rajan (Business Today, November 24) has crisply and clearly portraited the real Rajan whom different people are perceiving differently, depending on their ‘constituency’ interests. It is comforting to find that Rajan is as forthright in expressing his views post- September 4, as he was when he wrote his book Fault Lines. Putting it differently, those who have read Fault Lines will not be shocked by his approach to issues as expressed in his responses after he took over as RBI Governor. In August this year writing for The Global ANALYST, I had made the following comments about Rajan:
“The FM who put his Secretary Dr D Subbarao as the Governor of RBI hoping to have a submissive Governor found a different person in Subbarao soon after he started functioning from Mint Road. In that context, perhaps, the FM is going to be ‘second time’ unlucky…”
We are lucky to have institutions like RBI which have grown with work ethics and skills that match with the best in the world. For allowing this to happen, we must thank our political leadership which put national interests above anything else, whenever issue at stake was country’s prestige.
- M G Warrier, Mumbai
FinMin brings back lateral transfer of CMDs in govt banks
The finance ministry has shortlisted the names of executive directors who are likely to head public sector banks in 2014-15. Six public sector banks will see their chairmen and managing directors retiring in 2014-15, which are Bank of Baroda, Indian overseas bank, Canara Bank, Oriental Bank of Commerce, Vijaya Bank and United Bank of India. The selection panel comprising Anand Sinha, deputy governor, Reserve Bank of India and Rajiv Takru, secretary, financial services in the ministry of finance, among others, interviewed 19 executive directors last week...........
Head and heart nicely captured..............
My View on Salaam to Salim's HR vision
 |
| File photo - Fare-thee-well - Shri Salim Gangadharan |
Beena has captured the qualities of head and
heart possessed by Salim excellently well in this short note. Myself having
been a miser all through in appreciating others, when looking forward to the
wrong side of seventy, feel that many of us are ‘lavish’ in criticism and do
not speak out when we observe good qualities in our bosses and colleagues.
Though I had no occasion to work with Salim, he is a good friend and I have
enough reason to endorse Beena’s comments, as I have been in touch with him
since a long time and if he is retiring as RD, Thiruvananthapuram earning the love
and affection of the entire RBI Family (including retirees and family
pensioners), that itself is proof for his friendly and affectionate
relationship with colleagues and management skills. I wish him the very best in
his second half of life.
- M G Warrier,Mumbai
I am proud that Salim is a great friend of
mine. Salim is very different from many others I have met and interacted. He is
rational and very social as his name itself indicates. A real HR development
executive. I am proud that we were together as Faculty Members in BTC along
with Jayaram, Mahapatra(s), Vijay Bhaskar. We introduced the concept of more
than two FMs handling a training session jointly. It was a hit and a golden
time for all of us and also all the participants of various programmes. He was
an expert on bank supervision, an expert in forex, a democratic leader et all -
in fact an all rounder. I wish him my best wishes for an active life.
– P.Aravindan
Salim a true friend and a learned
guide. Thank you P.Aravind for reminding about BTC.
- Jay
Salim Sir, I would also like to wish you a
happy retired life. I, however, wish to add, that the years of retirement can
and should mean a world of new opportunities. The world is still your oyster,
you are not the guy, who will, post retirement, retire to a cloister as your
body, mind and spirit are still full of sap and moisture.
- A well wisher
Dear Salim,
I had missed your date of retirement and then
got busy in our local Durga Puja and Diwali celebrations. At the outset, I take
this opportunity to wish you and your family a very Happy Dusherrra and Diwali
and also wish you a happy, healthy and peaceful re-tyred life (sic) as because
a man of action like you can never sit idle and must be engaging yourself with
some innovative and self-actualisation activity, which would have been
otherwise got suppressed under the weight of routine official duties. Your
qualities of head and heart are well known at least to me who have seen you
since 1980s in Kolkata (the then Calcutta). Let me wish you All Well once again
and please keep in touch in the retired RBI-ites club, so that we can share our
joys and sorrows of living in the days to come.
- Prabal Sen, Kolkata
I had the privilege to be associated with Salim
sir for about 5 years during his stint in FED, CO. He was a natural teacher
which held him in good stead during his faculty stint at BTC. He would always
break down the complex regulatory/prudential/ accounting issues into simple
concept and would moderate his articulation to suit the audience absorptive
capacity. His contributions to every spheres of central banking like banking
regulation and supervision, capital account management, treasury or market
products like currency futures are well documented in the various committees he
headed or was associated with or his lectures as a faculty in BTC. He was a
task master to the core and would optimise the given resources by identifying,
nurturing talents, delegating power and responsibility, encouraging independent
decisions, but at the same time being steadfastly behind his people in every
decision or action. His firm belief at all time was that “One alone cannot
achieve everything, it’s only as a team with people around you, one can achieve
remarkable feats”. He motivated others with his passion for work and there was
no way the team under him would not excel. He had deep rooted compassion for
people which emanated from his belief ‘Do good to others and Good will come
back to you”. Humility wrapped his persona as a second robe and made him
popular figure in RBI, culminating in remarkable tenure as Regional Directors
in Kolkatta and Thiruvanthpuram.
2. As his innings with central bank has come to
end, his next innings on the larger canvas of life beckons him. Wishing him
success and healthy stint in his endeavour to give back to society all that
society has given him over the years.
- Harsh
Photo courtesy : Sajid, Mohammed P, Assistant General Manager, Thiruvanantpuram
Photo courtesy : Sajid, Mohammed P, Assistant General Manager, Thiruvanantpuram
Inauguration of academic block
Mangalore : G. Gopalakrishna, Executive Director, Reserve Bank of India will inaugurate the academic block of Nitte Institute of Banking and Finance, Deralkatte, at 10.30 a. m. on Saturday. The institute, under Nitte University, has been established to promote academic programmes, specialised training in banking operations and provide research and consultancy services to the banking Industry. Chairman and Managing Director of Syndicate Bank Sudhir Kumar Jain and Chairman and Managing Director of Corporation Bank S.R. Bansal would be the guests of honour.
Hindu
Cheque clearance made easy in Bhopal
BHOPAL: Eliminating the need for physical movement of cheques for clearance, new cheque truncation system (CTS-2010) went live in the city on Wednesday. After Mumbai, Bhopal became the second centre in the western region to be introduced to the new way of banking. Reserve Bank of India (RBI) Regional Director J B Bhoria said through CTS-2010, electronic images of cheques carrying key information will be captured and transmitted...........
HDFC Bank launches rural financial literacy initiative in Kerala
......HDFC Bank will conduct financial literacy camps in 39 rural and semi-urban branches across Kerala. As per instructions from the RBI, these branches will serve the Malampuzha block in Palakkad district and the Mathilakam block in Trichur district of Kerala. The camps will enable both adults and school children from 234 Panchayath wards in 26 villages to attain a conceptual understanding of financial products and services. ...........
Is bank liable if client is robbed in branch?
Can a bank be held liable if a customer is robbed inside the bank premises, but before he has deposited cash with the cashier? The National Consumer Disputes Redressal Commission (NCDRC) has delivered conflicting verdicts. In a recent judgment NCDRC ruled that......
RBI signs cooperation pact with central bank of Australia, NZ
MUMBAI: The Reserve Bank has signed cooperation agreement with central banks of Australia and New Zealand for exchange of information. The MoUs provide a formal, yet legally non-binding, channel for information exchange between the supervisors, RBI said in a statement. ..........
That seventies feeling
It is no secret that the Indian economy has been in a fair bit of trouble in recent quarters. The latest economic review published by the Reserve Bank of India (RBI) in October shows why there is no easy way out of the current muddle............
No, this isn’t a pre-NaMo bull run
.......The planned reduction in the quantum of asset purchase by the US Federal Reserve has been postponed for a few months, at least. This has resulted in resumption of foreign portfolio inflows which has pushed stock prices and has also provided the much needed stability to the currency market. The Reserve Bank of India is also doing its bit in the meantime to shore up its firepower by bumping up the foreign exchange reserve. However, there is another argument that is beginning to gain ground. It is now being said that the stock markets have started factoring in a change of guard in New Delhi...........
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