....The Reserve Bank of India (RBI), in a press statement issued on Wednesday, said it had accepted the request for withdrawal of the application. RBI said the company had indicated its current financial services operating model best supported the needs of the Tata group’s domestic and foreign strategy and provided adequate operating flexibility to its companies, while securing the interests of the group’s diverse stakeholder base.......
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Thursday, November 28, 2013
Rajan’s ‘on-tap’ bank licensing likely putting aspirants on wait-&-watch mode
..........."We could have wholesale banks, we could have mobile (phone) companies doing some banking activities, within certain constraints. We could have small banks, which we currently don't allow, and we could allow co-operative banks." "I see over the next few years a dramatic remaking of the banking landscape. Both from the... new banks which are going to come on board and the foreign banks which are going to be allowed to expand more freely. It will be a multiplier in terms of competition," ...
Banking ombudsman to hear complaints
..........the Lead District Manager, R. Rajagopal, said the banking ombudsman would be holding a sitting at the Tirupur South Rotary Club Hall here on November 29 between 2 p.m. and 5 p.m. “Apart from looking into the grievances, made on the grounds as notified under the Banking Ombudsman Scheme, 2006, the official will also be creating awareness on the salient features of the scheme among the industry associations, NGOs, consumer societies and common people,”...............
How to make public sector banks perform again
.............The experience of managers who have spent time with both public sector and private banks is instructive. Soumen Basu, former executive chairman for India of the global human resources consultancy Manpower Inc who has served on both sides of the fence, debunks the myth that "salary" is an issue with public-sector bank managers. What is an issue is expectations - what is expected of managers and what they expect from the organisation in return. In the private sector, there is "recognition and reward". In the public sector, there is little reward for good work and poor backup for the odd initiative gone awry. What is needed is a professional human resources setup that identifies performers and future leaders through the risk-reward process...........
Fraud at public sector banks - A rampant occurrence?
.........A speech for instance, by Dr. K C Chakrabarty, Deputy Governor of the Reserve Bank of India at a seminar organized by the Centre for Integrity, Governance and Training on Vigilance Administration on November 11th was largely overlooked by the media. But in the light of the CBI investigation into the activities of Acharya & Co, the contents of that speech become glaring for the startling facts they reveal about the extent of corruption and fraud at India’s public sector banks..........
SBI's Dy MD Shyamal Acharya cash-for-loan scam probe report soon
........Takru, who is on the board of the bank as government nominee, also said it is wrong to blame the high bad assets in state-run banks to corrupt and lax practices in the loan appraisal process and ruled out changing the existing laws and procedures of working of banks. "What has happened is most unfortunate. SBI has come out with their own internal committee and we expect the report of the committee by weekend," he told reporters after a meeting at the Reserve Bank of India (RBI)...............
'10 Lakh Jobs Could Have Been Possible, But for Loans'
Had it not been for the huge interest being paid to the Centre on loans taken by the erstwhile Left Front government, large-scale employment would have been possible in West Bengal, Chief Minister Mamata Banerjee said today. "While in 2011-12, the Centre and the Reserve Bank of India took away Rs 21,000 toward debt servicing, in 2012-13 they took Rs 25,000 crore out of Rs 32,000 crore that we earned," she said. "I am told that this fiscal they will take Rs 28,000 crore,"................
Subservience of big banks to corporate defaulters
.........Banks found an easy way to hide bad loans. Instead of writing off loans or forcing anyone to pay up, they offered an ingeniously named scheme: Corporate debt restructuring. Those who could not pay were given a moratorium, maybe a year or two, on payments, after which they could repay at lower interest rates. A part of the loan became equity, meaning banks became shareholders in these failing companies..............
Trai fixes ceiling tariff at Rs 1.50 for USSD-based mobile banking services
........According to a Trai statement, USSD is a ubiquitous, inexpensive, secure and convenient channel for mobile banking. “The framework is to encourage financial inclusion. We want mobile banking to be extended to the un-banked people, especially in the rural areas,” said Trai chairman Rahul Khullar..............
For fourth auction in a row, IIBs find no retail interest
...... “Since the RBI mentioned that there would be a CPI-linked instrument, most people are waiting for that. From just an optical basis, the 3% differential between the CPI and WPI is making people wait for the CPI-linked instruments,” said Ananth Narayan G, co-head, wholesale banking, and head of global markets at Standard Chartered Bank. RBI Governor Raghuram Rajan, after taking over in September, had announced that retail inflation-linked savings certificates would be issued soon. Separately, Deputy Governor HR Khan indicated on Monday that IIBs for retail investors would be issued in December............
Card swipe machines may raise banks' costs
........According to the head of the cards and direct banking business of a private bank, this would result in an additional feature of validation at POS machines using the Unique Identification Authority of India (UIDAI) number. “This has come as a surprise to us because RBI had not discussed this with banks so far. Now, POS terminals will have to be changed to accept biometric validation,” the official said, on the condition of anonymity........
Is the bank ATM a public good?
..........The subtext, sometimes articulated, is that since 60% of the adult population does not have a bank account, an ATM is essentially an elitist construct, not worthy of being within the protective cover of the general law and order setup. The Reserve Bank of India’s (RBI’s) obscure diktat to banks to provide adequate security to ATMs and the Karnataka government’s summary closure of ATMs because of non-compliance with the security-guard requirement are emblematic of this muddled thinking. What everyone conveniently forgets is that an ATM is not tied to the mother bank—the free usage of another bank’s ATM (up to a fairly liberal limit) has made the ATM a near-public place...........
The Header over the Bar
This
refers to ‘Aadhaar Link Mandatory for Card Deals Now’ (ET, Nov 27). On
the basis of recommendations of a working group that had examined the
issues including those relating to security features in the card payment
system, RBI has advised banks that (a) in respect of cards, not
specifically mandated by the RBI to adopt EMV norms, banks may take a decision whether they should adopt Aadhaar as additional factor of authentication or move to EMV chip and PIN
technology for securing the present card payment infrastructure, and
(b) the card infrastructure has to be enabled for both EMV chip, PIN and
Aadhaar (biometric validation) acceptance. As banks have an option to
decide, the headline is misleading.
- M G WARRIER (ET)
- M G WARRIER (ET)
Now Aadhaar link mandatory for card transactions at merchant locations
.....Aadhaar is currently used by banks to establish identity while opening bank accounts, which can then be used to make sure that subsidy payments are routed directly to beneficiaries. RBI had directed banks to issue chip-based cards by November 30 to tackle rising fraud.....................
India’s top eight retail chains report rising card payments in big cities
Plastic is overtaking cash in India's modern retail stores; in many instances, in fact, it has already done so. This should bring cheer to the Reserve Bank of India and the government because it means controlling fake currency and black money becomes easier...............
Read - ET........
Kisan Credit Card to be converted into smart card
..........“All KCCs will be converted to ATM cards by March 2014. Beneficiaries registered for mobile banking would also be able to pay through their mobile too. In the new smart card system, new KCC money could be withdrawn from any ATM or even swiped with a fertiliser, pesticide or tractor dealer, just like a regular debit or credit card,”........
Wednesday, November 27, 2013
Breaking the link - Renu Kohli
............What, however, surprised analysts was the post-policy interaction with the Governor. To a question on whether RBI would raise the policy rate any further, given the higher, end-of-the-year CPI inflation forecast, the Governor replied the central bank was done with its policy rate hikes, which had factored in this projection; he further clarified RBI would now observe inflation as it unfolded going forward and would only act if the out-turn was significantly different than predicted. Though taken aback by the Governor’s clarifications—these didn’t quite match up to his perceived image of an inflation fighter—the implications didn’t take very long to sink in. The Governor’s explanation had completely broken the perceived link between the policy rate and headline CPI inflation............
Move Over, Rajan
RBI
Governor Raghuram Rajan cannot bring inflation down. Only politics can. The
sooner politicians, policymakers and analysts realise this, the sooner we will
have realistic solutions. Inflation has three different drivers. One is the
large fiscal deficit, which creates demand for goods and services in excess of
the supply. Another is steady increase in fuel prices as part of a programme of
gradual decontrol in a context of volatile global energy prices and a weak
rupee. And the third is a steady increase in the demand for fruit and
vegetables and a range of protein foods such as lentils, milk, meat, fish and
eggs. To squeeze any of these inflation drivers, you need good politics.
Finance minister P Chidambaram has said that he would hold the deficit down below
4.8% of GDP. And his determination is clear and credible. But this is not
enough............
Read - ET
RBI has no option but to dance to the Fed's tunes
..............Nor for that matter would any 'self-respecting' central bank. And the RBI as we all know is nothing if not hugely self-respecting!! So let's see what happens between now and 18 December.
Read - ET
RBI warns bank customers to be wary of fraudsters
........Participating in an outreach programme organised by the RBI at Padangady village in Belthangady taluk of Dakshina Kannada district on Tuesday, G. Padmanabhan, Executive Director of RBI, said that as bankers embraced technology there would be people to dupe them. Customers have to be careful in such a situation. Some people are getting messages on the mobile phones or emails where they are offered huge amounts in lotteries. In such cases, people are asked to pay some amount in advance to the sender to get the money. Padmanabhan urged customers not to fall prey to such traps...............
Need to increase use of electronic payments: Khan
NEW DELHI, NOV 26:
India needs to work towards increasing the use of electronic payments and usher in a lesser-cash based society, H.R.Khan, Reserve Bank of India Deputy Governor, has said. Khan, who visited RBI’s stall at the India International Trade Fair here on Monday, rued the limited use of card-based payments at the stalls put up at IITF. There is also not so good acceptance of money through cards by shopkeepers, he added. Khan expressed hope that situation would improve during the next year’s edition of IITF and there would be improved acceptance for card-based payments...........
RBI balm fails to reduce foreign banks' headache
.......Uncertainty also remains on the stamp duty front. RBI said a new section, 8E, had been inserted in the Indian Stamp Act, 1899, vide Banking Laws (Amendment) Act, 2012, and notified in Gazette of India, exempting foreign lenders from paying stamp duty on converting branches into subsidiaries. A senior banker, part of the compliance team of a foreign bank in India, said: “We understand that stamp duty is a state subject and we are not sure if the central government, through a gazette notification, can override state laws. We need to be absolutely certain if we don’t have to pay stamp duty before we decide to set up a subsidiary here.”.......
A hero for whom giving is joy
NAGPUR: Sometimes you just stumble on a real hero living in your midst. It is rare to find anyone engaged for decades in silently wiping others' tears without seeking self-attention or even claiming to be a Good Samaritan that he certainly is. Jaiprakash Chaurasia, a retired employee of Reserve Bank of India, finds joy in giving. He joined the RBI as an assistant in 1978 and retired in August 2011. For every month during his 33 years of service, he made it a point to donate the amount that he earned by way of overtime allowance...........
Litmus test for VITALINFO - Exemplary performance
Hi Mangesh
You are really worth for RBI. You are like a newspaper to all of us giving
full information about all around of Banking Industries. Keep it up. God bless
u dear and give enough strength to continue with this kind of good work.
- K. Swaminathan, Ex Private
Secretary
VITALINFO IS ALWAYS AVAILABLE ON
REQUEST,
READ IT, STUDY IT, IT'S EASY TO
DIGEST,
THIS DAILYZINE STANDS OUT ABOVE ALL
THE REST,
IT HAS LONG PASSED THE
LITMUS TEST,
MANGESH & HIS WORK BOTH ARE AMONG
THE VERY BEST,
WITH THE INFO IN VITALINFO YOU
CAN SCALE UP MOUNT EVEREST,
THE AIR YOU'LL FIND IS QUITE
REFRESHING AT THE CREST.
- Frank
Dear Tarambale,
You deserve every bit of
accolades that are coming your way for the great service you are doing. It is a
huge intellectual task which you are performing magnificently. God bless you.
Our good wishes to you. Regards.
- B K Katyal, Ex
Chief General Manager
Dear Shri Mangesh,
I am now addicted to
VITALINFO and I appreciate your exemplary performance. You are simply the great
and no words are enough to praise your untiring effort in executing this wide
knowledge about banks. Thanks a lot for sharing the information! I am now working
in CAFRAL on contract basis. Kindly include my email id to send this precious
VITALINFO.
– Janaki Ravindran
Dear Mangesh,
Good Morning ! Congrats for ur gr8 work. I read all the comments. Regards
- Sushama Dhawde, Private Secretary
- Sushama Dhawde, Private Secretary
Whither secularism? Govt releases Rs. 5 coins with Vaishno Devi emblem
...........However, the RBI appears to have pushed aside this
traditional concept of commemorative coins. According to RBI sources, it has
issued six other commemorative coins this year. These include coins for 150
years of Kuka Movement, 150th birth anniversary of Swami Vivekananda, 150th
birth anniversary of Motilal Nehru and 150th birth anniversary of Madan Mohan
Malaviya. The RBI only came up with a statement on April 26, 2013, that
coins the picture of ‘Mata Vaishno Devi’ in the centre were minted by the
government and were put into circulation by the central bank. There has been no
explanation or justification to promote the introduction of such an unusual
practice..........
ICICI Bank Organizes Coin Exchange Mela in Haldwani
Haldwani: ICICI Bank, India’s largest private sector bank, organized a Coin Exchange Mela at its Haldwani, Tikonia, Govind Vallabh Pant Marg branch, under the guidance of the Reserve Bank of India. The Coin Mela was organised to offer a free facility of exchanging................
Valuable, but not logical
My View on "Need to incentivise investors to move away from go...":
In an environment where even men wear gold anklets and chains and where the investors are not sure of realizing their investments in the shape in which they have deposited, and where wearing ornaments is part of culture for women, it is difficult to take the valuable suggestion of Subir Gokarn to a logical conclusion.
- Yerram Raju
Window dressing
.....It is tough to understand how delayed payment of amounts that have already become payable will reduce expenditure. Anything is possible because we are hearing about thousands of crores of "unclaimed" deposits with the Employees' Provident Fund Organisation, Life Insurance Corporation, banks. With all the development in technology, can we not think of a more transparent accounting system for public funds?...........
Read | Business Standard
A fine on late refunds
..........The government cannot bully law-abiding taxpayers from their rights because of economic mismanagement. In fact, there should be a stipulated time for I-T refunds or,.....
It’s Time to Allow NBFCs to Take Financial Inclusion Story Ahead
.......“To
ensure that the banks give adequate attention to financial inclusion,
they must view this as a viable business proposition rather than as a
corporate social responsibility or a regulatory obligation. For the
business to remain viable, it would be important to focus on increasing
usage of existing banking infrastructure,”
said KC Chakrabarty, Deputy Governor of RBI, and one of the vociferous
proponent of financial inclusion for several years. Any banker, of
course in private, will tell you how ridiculous these rules are and how
much time they have to spend to overcome these, rather than fulfilling
them. Public sector banks are the ones who have borne the brunt of these
rules. In the process,..........
HCBL Bank targetting beggars for financial inclusion
...........In India, this is probably the only bank catering to this segment (beggars). So far, the Bank has already opened accounts of about 160 beggars in Lucknow under the relaxed Know Your Customer (KYC) norms of the Reserve Bank of India (RBI). “By opening their accounts, we want to include the lowest strata of social pyramid in the banking channel,” HCBL Cooperative Bank CEO Pawan Kapoor told Business Standard................
Tips to hasten FinClusion
My View on "Banks go on rural overdrive, but profitability a w...":
Profit and financial inclusion do not always go together. Banks cross-hold risks and transfer mechanism takes care of the entity's profit. What really holds up the functioning of rural branches is the placement of personnel and HR policies of banks that have not moved in tune with the requirements of rural branches. While working in rural branches, it is knowledge of banking and systems coupled with moving with the culture of the rural areas that would yield dividends. No branch from day one would not run on profit. There is always a cooling period. This could be five years in some centers and three years in some others. The other alternative is invest in technology upgradation of Primary Agricultural Credit Societies, invest in HR practices, adopt some of them and increase the reach. This would help in cleaning up the grassroots rural credit institutions and empower them with technology and higher human skills with cross-fertilization from the commercial banks. This would hasten the financial inclusion goals of PSBs and it is the least cost option in the long term.
- Yerram Raju
Local area banks want more leeway to mobilise deposits
..........In its Report on Trend and Progress of Banking in India — 2012-13, the RBI said LABs show promise of small-scale banking institutions that can be experimented with on a larger scale in future. The Reserve Bank’s Discussion Paper ‘Banking Structure in India: The Way Forward’ has recommended the creation of more number of smaller banks in the private sector with the objective of achieving financial inclusion at the local level..........
RBI: Just good intent isn’t enough to treat customers fairly
......... RBI’s intent to extend TCF from banking products to third-party products is welcome. But RBI will need more than just good intent to solve this problem given the sophistication of banks to check boxes to meet regulatory requirements. RBI should move fast before the markets rebound to put in place more effective measures of customer protection than this statement of intent............
Banks alone not to blame
..............At the BANCON meet, central bankers perhaps stunned bank chiefs with stinging criticism of the rising proportion of troubled assets in state owned banks. With linguistic inventiveness, a Deputy Governor expressed his righteous indignation by preferring to talk not of the banks of the future, the theme of the conference, but of the “future of banks”. Other central bankers too joined in with less rhetorical concerns about rising NPAs, the trouble with debt recasting and poor appraisal systems......
Co-op bank customers asked to give account details
As part of all India drive to keep a check on black money, illegal transactions and money laundering, income tax (I-T) department has issued notices to around 1,100 cooperative banks and credit societies in the state. According to sources, I-T department has asked all the customers of the cooperative banks who have cash deposits over Rs 5 lakh to furnish the details of the amount. Also, if the customer has received Rs 10,000 or more in interest from the bank, ..........
Affordable housing: RBI nod for NHB’s $200-million overseas loan
National Housing Bank (NHB) has received Reserve Bank of India (RBI) approval for raising $ 200 million external commercial borrowing (ECB) under the affordable housing window. The housing finance regulator will mobilise this amount before end March this fiscal, R.V. Verma, Chairman & Managing Director, NHB told Business Line here. NHB will again go back to RBI once the lender is finalised and the term sheet is ready, Verma added......
RBI to give self-regulatory status to microfinance industry associations
.....RBI’s decision, announced in a statement issued by the central bank, is based on recommendations of an expert panel chaired by Y.H. Malegam on regulating the microfinance sector. MFIs are firms that loan small amounts to low-income borrowers and source money from commercial banks to do business. India’s micro-credit sector has two major industry associations—microfinance institutions network (MFIN) and Sa-Dhan. Officials at both bodies said they will apply for SRO status...........
Late payment: RBI move not enough for SMEs
..........In its announcement, the RBI adds that it has been decided to include, incremental credit, including export credit, to be extended to medium enterprises by the scheduled commercial banks, as eligible priority sector lending. This is again a welcome move. The medium-scale enterprise sector has been suffering no less than their smaller counterparts when it comes to lack of credit availability and high interest rates. In addition,.............
Is India ready to enter global bond indices?
..........First let's look at the progress made on signposts suggested by the S S Tarapore Committee for capital account convertibility (CAC). As the table shows, none of the signposts are encouraging. Further, should debt be liberalised under the compulsions of balance of payments? Probably not, because FII investment in domestic debt may be rupee-denominated but it creates an indirect claim on foreign exchange reserves as well. The recent experience.....
Bad loans for self-help groups at alarming levels: Nabard
........“More painful is the fact that loans to SHGs in the most resource-poor regions in the country reported NPAs of over 10 per cent. Further, as indicated, this potent and effective financial inclusion measure has not received the attention with bankers currently focused on opening individual accounts through banking facilitators/banking correspondents,” .......
PFRDA needs more than a new chairman
.....Will things change now that the PFRDA chairman has been asked to go? Or will he merely be replaced by a retired bureaucrat after going through the motions of an elaborate selection process? The SEBI saga outlined in the next report only shows the urgent need for greater transparency and accountability in selecting independent regulators in India.
Paying for ATMs
This refers to A Seshan's letter "A danger at any time" (November 25). Banks can certainly afford the cost of providing adequate security at ATMs. If they have been complacent about this issue, it is probably because instances of robbery at ATMs have been few and far between................
'Cannot remove manpower from ATM safety'
.....The Federation of Indian Chambers of Commerce and Industry (FICCI) also tried to get the attention of the government and the bankers. “Unfortunately, posting security guards outside ATMs is not mandated by the Reserve Bank of India,” MD of SIS-Prosegur Rituraj Sinha told Express. SIS-Prosegur is a private security service. Sinha is also the chairperson of the Cash Logistics Association of India........
UP Police to deploy personnel at all currency chests in state
....At a meeting of Reserve Bank of India and other banks authorities with Uttar Pradesh Police, Special Task Force (STF), Anti-Terrorist Squad (ATS) and Crime Branch, it was decided to ensure better coordination between bank authorities and police, IG (Law and Order) RK Vishwakarma told reporters. "Accepting the demand of banks to provide security at the state's 465 currency chests, of which eight (one each in Mirzapur and Chandauli and six in Sonbhadra) lie in naxal-infested areas, we have decided to deploy two head constables and eight constables in each chest," he said. ..........
RBI tells banks to charge for SMS alerts on actual usage basis
......"Considering the technology available with banks and the telecom service providers, it should be possible for banks to charge customers based on actual usage of SMS alerts," RBI said in a notification to all banks. "With a view to ensuring reasonableness and equity in the charges levied by banks for sending SMS alerts to customers, banks are advised to leverage the technology available with them and the telecom service providers to ensure that such charges are levied on all customers.............
Read - ET....
RBI for Aadhaar authentication on card-based transactions
In order to ensure security in card-based payment transactions taking place at point of sale (POS) terminals or ATMs, the Reserve Bank of India (RBI) has advised banks that they may adopt Aadhaar as additional authentication or move to EMV (Euro pay MasterCard Visa) chip-and-pin technology. "In respect of cards, not specifically mandated by the RBI to adopt EMV norms, banks may take a decision whether they should adopt Aadhaar as additional factor of authentication or move to .........
Bitcoin is gaining currency in India and RBI is watching
Love it or hate it, but even a conservative bank like the RBI can’t ignore Bitcoin anymore. According to a report in The Economic Times today, there are about 50,000 Bitcoin enthusiasts in the country and 30,000 of them have downloaded digital wallets to store the currency. CoinMonk, which is creating awareness about the currency in India,..........
Read...................
Bangalore to host country's first global Bitcoin conference in December
........Investors and venture capitalists are expected to attend the event, which will also see participation from the Reserve Bank of India as well as State Bank of India, the largest public sector lender. In August, ET had reported that RBI was watching and learning about Bitcoins but had no intention of regulating it.................
Tuesday, November 26, 2013
Need to incentivise investors to move away from gold: Subir Gokarn
..........The second is gold, and there we need to see a significant inducement for people to shift away from physical investment in gold and even if they want to continue to invest in gold, it creates financial or what I would call 'dematerialised' alternatives and there are options available which we need to not only design and put in place, but also sell quite aggressively. The marketing aspect of this is very important............
India’s Gold Dilemma
...The gold policy seems to be working, at least temporarily, as imports decreased 74 percent year-on-year in August. In addition to implementing other policies such as new restrictions on outward direct investment by Indian entities, India has made strides in decreasing the current account deficit and recovering the ailing rupee. However, foreign investors have started to question the Reserve Bank of India (RBI), whose efforts to promote stability are hurt by ever-changing policies at a time when the currency needs credibility and predictability...........
‘Banking one of the best industries to start career’ - Vaibhav Chaturvedi
JAIPUR, NOV. 25:
India is gearing itself for the future challenges and transforming itself for the drastic changes which are taking place, said Vaibhav Chaturvedi, Deputy General Manager of Reserve Bank of India. Chaturvedi was addressing students of JECRC College ‘Post Banking Crisis’. The lecture was organised by Business Line Club in association with Cairn India, the fastest growing energy company in the world...............
Would foreign banks prefer subsidiaries to branches? - A.Seshan
......What are the merits and demerits from the point of view of banks? The advantage is near-national treatment on a par with other banks of local origin in the matter of opening branches without RBI approval, subject to certain restrictions. Even as it is, under a World Trade Organisation agreement, RBI is required to give foreign banks 12 new permits to open branches every year, including those given to new entrants and existing lenders. Would national treatment also imply all the other features such as inclusive banking, no-frill accounts and so on? The RBI needs to clarify the point...........
RBI to launch CPI-indexed bonds by December end: Khan
....."Guidelines will be out soon...We are likely to launch the first tranche before end of December. We will come out with details (quantum)," RBI Deputy Governor H R Khan said on the sidelines of a National Housing Bank event. "This year it should be between Rs 10,000-15,000 crore (wholesale price and consumer price indexed bonds) but exact amount will come out. This is part of overall borrowing programme," he said.............
Obituary
Mr. Bhanu Toyle, Retd. Dy. Treasurer, RBI passed away on 23.11.2013. No.4/8, Velan Nagar, Aruymbakkam, Chennai (Behind Arihant Towers). Mobile: 98410-40000 / 72992-80998
Cyber criminals use RBI governor's name to lure victims
In case you have received a mail from Reserve Bank of India Governor Raghuram Rajan promising you Rs 2.05 crore, beware! Cybercriminals are sending out e-mails posing as Rajan and promising recipients a payment. In return, they ask recipients for "fund release order fee charges" of Rs 9,500, besides other personal information like residential address, mobile phone number and bank account details as well as the pan card. ...........
Is One Day Strike Sufficient For One Year Delay by IBA in Starting In Right Earnest the 10th BPS Negotiations
..............It seems, UFBU had conducted the meeting on 20th November, 2013 at Chennai without any preparations or else each Union must have been asked to bring their own agitation programme for discussions and finalization, as the stand of IBA is known to all Unions since October, 2013, when it befooled them by saying that IBA does not have the mandate to discuss the details of offering the wage revision percentage. Are UFBU leaders are so busy that they could not even prepare an agitation programme for discussion in the meeting on which lakhs of rupees must have been spent on travel and stay...................
Recruitment of Assistant Managers in Bharatiya Reserve Bank Note Mudran Private Limited
Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL/Company), a wholly owned subsidiary of Reserve Bank of India presently having its presses at Mysore in Karnataka and Salboni in West Bengal with Corporate Office at Bangalore invites applications from willing candidates for the posts of Assistant Manager in the Company.........
Retired bank staff seek pension hike
.......According to Bhat, those who retired in 1995 are getting the same basic pension. Even after 18 years, there has been no revision in the pension. A clerk who retired in 1995 gets a monthly pension Rs 4,000, whereas one who retires now will get Rs 13,000 a month ,.....
Mahila Bank seeks momentum with new branches, 9% FD rate
......Going forward, the bank plans to have at least 25 branches by the end of this fiscal and plans to add at least 100 branches annually. The plan is to have a branch in each of the state capitals and the bank is in the process of identifying the places. The bank is tapping human resources from other banks who are joining on deputation for three years. Out of the current staff strength of 100, more than 60% are women. The basic philosophy of the bank is to promote entrepreneurship among women by offering them financial assistance at subsidised rates. It does not, however, mean that the bank will not accept deposits from men. To make itself attractive for its customers, the bank has allowed ten free transactions at non Mahila Bank ATMs, double that offered by others........
SBI asks deputy MD to go on leave, sets up probe panel in graft case
... “We have been informed by the CBI that Shyamal Acharya, deputy managing director and group executive (mid corporate groups) of our bank is being investigated. So, Acharya has been asked to proceed on leave." "We have also constituted an internal committee comprising two senior managing directors to investigate internally,.............
Careful at SBI
...........This is where both the banks and RBI need to step in to give some perspective. Analysis needs to be done, for instance, to see what portion of loans is in trouble due to government delays—several years to get an environmental clearance, for example. Once this is done, for instance, it will be relatively easier for bankers to sanction recast proposals in such cases. More important...........
SBI deputy MD under CBI watch – a Rolex & an Omega for a loan?
......Though unrelated, the move comes after RBI deputy governor KC Chakrabarty has made several presentations on how PSU bankers are not doing their jobs well. According to Chakrabarty, while the PSU banks’ share of loans remained at a little over 75% between March 2009 and September 2013, their share of bad loans rose from 64.5% to 86.1%. RBI is also in the process of finalising ways to incentivise bankers for recovering bad loans while also penalising them for their role in ballooning NPAs.........
Banks go on rural overdrive, but profitability a worry
....“Right now, rural banking is not viable because the government is pushing it as a social responsibility. People in rural areas withdraw almost the entire amount and still prefer to transact via cash. Banks make money via transaction fees,” said Parekh. The numbers tally will RBI estimates, which suggest that only 2% of no-frills account holders have used the overdraft facility offered with these accounts. At the end of March 2013, only 40 lakh accounts availed the overdraft facility out of 18.2 crore accounts, shows RBI data..........
RBI asked if withdrawal norms in Amanath bank can be relaxed
The Karnataka High Court has directed Reserve Bank of India (RBI) to inform the court by December 9 whether the restriction on withdrawal of deposits could be relaxed by allowing higher withdrawals by the depositors of Amanath Cooperative Bank (ACB). Justice A.S. Bopanna issued the direction during the hearing of a batch of petitions on various issues related to the bank.............
PSBs woes
.....The author's call to public sector banks (PSBs) to reinvent themselves by changing their culture of functioning is appropriate. But the moot question is: can they do it? Would their political boss give permission? The ills of PSBs can be traced in large part to their parentage...........
RBI directions on FD, savings account interest not followed
........RBI should, therefore, not only be a regulator of banks but also play a developmental role of championing the cause of bank depositors by persuading the government to offer tax incentives which can not only give a boost to the banking industry but also help in stepping up the growth of gross domestic product (GDP) of our country as well.
By all means, go for the gold
.......The government borrows huge amounts from the market to meet its increasing expenditures, such as enhanced salaries to government servants. This leads to an increase in interest rates. The Reserve Bank prints more money to keep the interest rates down. This printing leads to inflation. The same amount of goods produced in the economy is chased by a larger number of currency notes. Thus, your loss is government’s gain..........
Which inflation should the RBI target?
.......Clearly, the RBI should not target inflation measured by WPI alone. A more relevant operative target for monetary policy – as it is for many central banks in countries such as Canada, Finland, Thailand or South Africa – is core inflation. In India, core inflation – which can exclude fruits and vegetables, milk and edible oils – would measure the imbalance in the economy or the gap between ex ante savings and investment. Therefore, the RBI should at least use core inflation as a supplementary indicator while targeting WPI.
Bank unions flay debt recast cover-up of bad loans
The All-India Bank Employees Association (AIBEA), will observe 5 December as 'All-India Demands Day' to highlight the threat of bad loans to the banking sector, which it claims, has been made worse by banks recasting debt of even willful defaulters. The association wanted the government to make willful default of bank loans a criminal offence, and bring changes in debt recovery laws to speed up recovery of loans instead of allowing debtors to roll over bank loans........
RBI frowns on US dollar arbitrage deals by large companies
.While RBI's directives had reduced such trades by FIIs, there was very little the regulator could do when similar transactions were made by Indian companies that have sizeable exports, imports and foreign loans that can be shown as a genuine underlying basis for forward transactions (in the NDF market, participants do not need any such underlying basis for trades). Instead of raising the issue with companies, over which the central bank has no direct jurisdiction, senior RBI officials verbally ............
Read - ET.........
Subscribe to:
Posts (Atom)