..........These are only illustrative and not exhaustive suggestions for the RBI to ponder over and work out comprehensive consumer protection regulations, which can play an important role in considerably improving the banking system comprising of responsible, reliable and consumer friendly banking institutions, who can be trusted and relied upon by the billion people for the greater good of our country.
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, April 3, 2014
Customers hard hit.............
My View on "Customers may be spared from keeping minimum balan...":
Every time when banks tinker with the system of providing services, the hard hit is only the customers. Only a couple of years back, RBI issued guidelines that banks should allow ATMs of other banks to be used by customers without any charge for such use. But, now, this decision has been reversed putting the customers at a loss. Not all banks have their ATMs located in all places. In India, ATM penetration is one of the lowest. Instead of increasing ATM penetration, making the customers to pay for use of ATMs other than those in which they have their accounts is retrograde action. RBI should rather facilitate better banking by making banks to cut costs on areas which are considered unproductive instead of forcing the customers to pay.
Similarly, making too frequent changes and charging customers for services which are basic for banks to provide will be detrimental to the interest of the customers.
Customer service is far from satisfactory. I have a couple of instances where customers are made to run to pillar to post to get redressal of their genuine grievances. But, nothing has happened. In one instance, a poor customer (a gardener by profession) of SBI, Andheri(W) branch depsited a govt cheque of Rs.63,723/- on 11 March 2013 is yet to get credit of the amount to his SB A/c. 10218281741. Despite repeated visits and letters no action is taken. Complaint to the Banks Ombudsman is also lodged. Such is the plight of poor customers. Who is going to make good the loss to this poor customer (loss of interest, travel cost, wage lost etc)? Huge NPAs where defaulters are not considered as willful (Kingfisher airlines)have eroded the profit of the banks forcing the government to recapitalise them which is ultimately your money and my money. RBI should address these issues and make the banks accountable for poor services rendered by them. Will RBI intervene and redress this sample case mentioned by me in this message?
- Santhanam
RBI FORMATION DAY celebrated by RBICHENNAIFRIENDS Group
RBI FORMATION DAY
Celebrated at Marina Beach, Chennai on 1st April 2014 by
RBI Chennai Friends
Dear Friends,
You are aware that RBICHENNAIFRIENDS Group invited its members to assemble at Marina Beach at 5.30 p.m. on 1st April 2014 to celebrate RBI Formation Day. We are extremely happy that more than 50 members turned out at very short notice. The cool and gentle evening breeze with the backdrop of roaring waves of the sea set the most conducive ambiance for the members to meet and share their fond memories about the great institution they served. Members at large appreciated the proposal to organise such an event to show our gratitude to the great institution.
Shri S.Venugopalan in his introductory speech praised the efforts of the moderator to convert his suggestion to a reality and shaping it to an impressive show. He said that completion of 80 years of age in the life of every Indian calls for a big celebration and in a similar way we should take today's event as a lead for planning the 80th Birthday of the Bank next year as a mega event.
Shri Kurien Chacko entertained the gathering by narrating an incident that happened at the youth hostel recently and tactfully converted it into a brain teasing puzzle. Sri T.V.Mukundan's Tamil Translation of Chacko,s narration made the memebrs roar with laughter.
Sri T.V.Subramanian had a great praise for the RBI. He said that most of the members present at the event belong to the batch of members who retired from the Bank between 1986 and 2004 who should consider themselves as a lucky lot. He said they could enjoy the benefits of many awards, settlements of wage revisions, perks and other facilities and more importantly the pension scheme. He added that the pension scheme enjoyed by us is not made available to the pre-86 retirees as well as post 2004 recruits. He wanted the moderator to forward a report and the photos of this get together to the Governor and to ensure that the proposed 80th Birthday of RBI should be celebrated in a grand way involving the Bank's executives at the top most level.
Shri Mushtaq Ahmed endorsed the views of Sri TVS about the greatness of the institution. He mentioned that we should feel happy as the prolonged struggle of the employees for restoration of Pension updation is coming to a close. He said that Updation of Pension has become certain and only the modalities of fixing formulae for the Basic Pension etc. is under negotiation by the United Forum.
Shri S.M.Sendil draw a reference to the olden days of Sri Ashis Sen etc. where the service conditions were very poor. He said staff use to leave office only around 8.30 p.m and getting permission to leave office half an hour early for some valid reason was a herculean task. He praised the role of the Association which alone was responsible for bringing vast change in the system to a comfortable level. Sri Sendil also rightly stated that we should develop the feeling of contentment with whatever we are paid according to our times without making comparison with others.
Shri V.Subramanian (Aranthai manian) recalled the day he joined the Bank after resigning his job from Lucas TVS for a salary difference of Rs.50 per month but got very much dejected when he was posted to claims section and asked to fill up Money Order forms. He informed that he could realise later the great role of RBI in managing the monetary policy and currency management and that sending money thro' money order also was a part of the job. He said that he still cherish the days when he was actively associated with the Recreation Club and successfully organised a Chess tournament between the Indian Grandmaster Sri Viswanathan Anand and 32 Club members at a time.
Smt.Uma Rajaram, a serving employee said that she came to RBI Chennai on a transfer from Hyderabad office. She said she was overwhelmed by the support and affection shown by Chennai colleagues. She felt sad that the warmth, love and bonding is missing in the present set of colleagues.
Shri S.Sankaranarayanan appreciated the activities of the group and said that it was the Chennai group which has first posted a message in the Facebook about the celebration of RBI formation day.
Although Sri G.S.Shunmugam could not get his chance to address the gathering he was found cutting many jokes with the members there in groups.
Shri S.Subramanian (German Subbu) attended the meet late and could not get his chance to address the gathering. At the same time we should praise him for coming to Chennai from Bangalore to attend the event.
Snacks and refreshments were served to all the participants. We convey our thanks to S/S. Janardhanan, Devarajan, Venugopalan and Logeswaran who assisted in organising the snacks and refreshments.
Although we decided not to receive any payment from the members for this event some members have come forward with their voluntary donations. (S/S.T.B.Sathyanarayana, C.Murugan, K.Govindarajan, German Subbu and P.T.Veeraiyan) . We thank all of them for their gesture. The event was concluded around 7.15 p.m.
Yours dearly,
Chandraiah
Forwarded by Madan Gauria
RBI will act on data surprises that are durable: Rajan
........“To the extent that the new government can provide an assurance that the fiscal situation is under control, we can move to bring SLR down, purely as a way of reducing distortions in the system. It is good for the economy if there is a credible, sensible fiscal consolidation path the new government lays out,”...........
RBI grants in-principle approval to IDFC, Bandhan for new bank licences
........The "in-principle" approval granted will be valid for a period of 18 months during which the applicants have to comply with the requirements under the Guidelines and fulfil the other conditions as may be stipulated by the RBI."
My View on "EC clears way for RBI to issue new bank licences":
It is a welcome decision of the EC to allow the RBI to do it normal functioning. But, in issuing licences to two NBFC-MFIs viz., Bandan and Janalakshmi, RBI may well consider if by issuing licences to these two entities, they may lose the character of providing microfinance services to the unreached as they may limit it to the extent of priority sector commitment only. Then these would become another new generation banks with microfinance and financial inclusion becoming show-case activities and not prime activities as hitherto being done by these entities.
- Santhanam
India Inc surprised by rejection, to reapply
Corporate aspirants for banking licences are disappointed with the Reserve Bank of India (RBI) rejecting their applications. Top executives said they would re-apply for the next round as and when the RBI decides to start the on-tap licensing process............
Twists and turns in the new licence saga
Former Finance Minister (now President) Pranab Mukherjee first proposed the entry of new players in the banking sector during his Union Budget speech for 2010-11. When Mukherjee made the announcement, his speech surprised many in the central bank, as consolidation of existing banks was the most-debated topic in those days.............
We'll build a bank via organic route: Vikram Limaye
.......The RBI nod gives us visibility about the days ahead. There is already a plan in place for activities to be done in the next 18 months. The focus will now shift to execution. It will involve activities such as setting up a holding company and moving some businesses into a distinct corporate body to meet..............
RBI deputy governor clarifies spreading mark-to-market losses lapsed on March 31
Reserve Bank of India Deputy Governor H R Khan clarified that only the time limit for spreading bond losses held under banks' mark-to-market portfolios had lapsed on March 31, and not the waiver on bringing down the ratio of debt under the held-to-maturity segment..........
Policies of new government to influence RBI's stance from June 2014 onwards
..........On balance, while the RBI stayed on hold today as expected, we think the election outcome and the new government's economic policies are likely to have a material influence on the course of RBI policy from June 2014 onwards. While not a structural factor,............
RBI To Withdraw All FDI Pricing Guidelines!
......When it came to the pricing of options on compulsorily convertible debentures and preference shares, RBI permitted the use of ‘any internationally accepted pricing methodology’.
Later in January, G Padmanabhan, ED, RBI indicated to me that things might change!
Here’s an excerpt of that conversation….....
Strengthen credit appraisal for gold metal loans: RBI to banks
.......“In case GML is given by the nominated bank to its own existing customers, gold metal loans under the scheme may be carved out within the credit limit sanctioned by the bank. In case of new borrowers, the gold metal loan limit may be fixed after carrying out a detailed credit appraisal and due diligence,”...........
Inflation-indexed bonds may get a makeover
...........“When you have capital gains accrued from non-equity funds, you pay tax only after factoring in indexation. Similarly, when RBI says that it is contemplating the benefit of indexation for inflation-indexed bonds, this means that it will factor in the effect of inflation when it comes to calculating the tax on gains,” ..............
Wednesday, April 2, 2014
RBI chief cautious, sees brighter future
The good news for India Inc and all borrowers is that there will be no interest rate hike or further policy-tightening measures if inflation stays on its southward journey along the intended “glide path” laid out in the Urjit Patel committee report.............
Unexpectedly as Expected, for Once
............It is interesting to note that after seeming to endorse a monomaniacal form of inflation-targeting as recommended by the Urjit Patel report, the RBI is taking a more nuanced approach even to its preferred measure of inflation, the combined consumer price index. It will not give in to the statistical guile of low inflation over ..........
Read - ET
‘Loose fiscal policy calls for tight monetary policy’ - Charan Singh
............"The Monetary Policy has both positives and negatives. The positive component is that interest rates have not been raised and term repos have been encouraged. Further, Inflation targeting has been put on hold. The negative components are that too much importance is being accorded to prices of food and vegetables, no measures have been announced to revive growth in industry; no mention of improving the NPAs, or credit to the.....................
Steps to make RBI’s monetary policy transparent
........In particular, the yearning for and excitement about decisive governance could easily translate into activist fiscal policy of the pump-priming variety. In such a scenario, the central bank may have little choice but to hike rates again to preserve its credibility. In other words,.........
Why Raghuram Rajan’s battle is far from over
.........the Indian economy is now far more stable than it was in recent years, thanks to the gradual reduction in inflation as well as lower risks to economic stability. That gives Rajan some breathing space. However,..............
The Reality of Financial Inclusion
Financial Inclusion means the inclusion of the poorest of the poor into the banking stream. It was introduced after the recommendations of Khan Commission set up by RBI in 2004, with the aim of extending banking facilities to the poorest of the poor. The benefit may be seen when looked at the expected benefits like Electronic Benefit Transfer wherein social payments to common man can be made directly. The concept was novel and ..............
Read - Greater Kashmir
Read - Greater Kashmir
El Nino weather phenomenon may have a bearing on inflation: Reserve Bank of India
..........."It's not a given that El Nino will happen and it's not a given that food production plummets. If food production plummets, it is not a given that inflation across the board will be high...I don't think at this point we can anticipate precisely what will happen,"
Search panel recommends Mundra for RBI Deputy Governor post
The search panel headed by RBI Governor Raghuram Rajan is believed to have recommended the name of Bank of Baroda chief S S Mundra for new RBI Deputy Governor in place of K C Chakrabarty who has opted to leave the central bank ahead of his tenure. ...................
Justice delayed is justice denied..............
"If Government rules are brought in in support of updation, we have to accept that updation can take place only once in 10 years. Shri Donde, quoting the late Governor, Shri R..N. Malhotra, has also agreed with this point. The rationale for updation of pension is that pensioners who had retired in a particular grade (regardless of the date of their retirement) have to be treated equally and paid the same amount of pension. If pay revision takes place,say, after 5 years, employees who retire after this pay revision would have to be paid pension on the basis of the revised pay which would inevitably result in an invidious distinction between pensioners (who had retired in the same grade) if updation of pension does not also take place after the pay revision. This is the reason why pay revision and pension updation have to go together and can take place only with the periodicity of 10 years. Furthermore, I had also mentioned in one of earlier mails that if the RBI have counted certain allowances for 'pay' and accordingly also for retirement benefits which are not in alignment with the Government rules, we have no alternative but to fall in line with the rules in the Government.
I agree that it is irrelevant (also sheer arrogance) on the part of the Government to bring in the issue of rationalisation and review of 'perks' of serving employees while discussing the issue of updation even while some of us may legitimately opine that these 'perks' have gone a little far in recent periods for an organisation like the Central Bank of the country ( which is not a commercial organisation). Governor, with his formidable stature, standing, intellect and skills in argument ( two famous books which he had authored are master pieces and a delight to read) would have to impress on the Government this point and insist on this issue being delinked from pension updation and taken up separately and discussed. I am sure he would do it and hope he would do it immediately. Finally,as all of us know, time is of the essence for very obvious reasons and hence implementation of updation of pension cannot brook any further delay!! "
Poll squad detains RBI trucks carrying Rs 5 cr suspecting bribe for votes
An over-enthusiastic election squad detained 7 RBI trucks carrying Rs 5 crore in Rs 5 coins heading from Kolkata to Chennai, early on Monday. The squad comprising police and revenue officials suspected the money was meant to bribe voters. The truck was finally released following the intervention of senior RBI officials.............
Employee-benefit provisioning to hit public sector banks hard
...........While PSBs in the first nine months have charged additional R4,250 crore to income statement towards amortisation related to enhancement in gratuity limit and re-opening of pension option for existing employees (in line with RBI’s February 9, 2011, circular); some banks like SBI have made provision of R1,800 crore towards additional pension liability. PSBs have also made additional provision of nearly R3,300 crore in the nine-month period on ad-hoc basis for wage revision effective November 2012..........
RBI says United Bank problem one of governance, not ownership
............."All issues point towards corporate governance. We have written to the government to take a set of steps to improve corporate governance and it is not only for UBI but the entire banking system as a whole," .....................
.......“We haven’t conducted any probe. It is the bank chairman who wrote to the governor as well as the FM, saying that, at her bank, accounts are not classified as NPAs and requested the RBI to go for a forensic audit.” ........
Read - FE
Customers may be spared from keeping minimum balance in savings accounts
Bank customers may be spared from the pains of maintaining a minimum balance in savings account as Reserve Bank of India has directed banks to do away with the practice of levying penalty for non-maintenance of it.
RBI open to merger of banks: Rajan
..............."It's better that the banks themselves voluntarily decide where more value could be created if they merge. All I am saying is that we are open and there is room for both bigger banks as well as smaller banks. So, what we are saying is that we will be happy to consider if banks decide (to merge),".....................
RBI wants govt to pare stakes in banks
.....Stressing the importance of granting complete autonomy in the day-to-day operations of public sector banks so that these could effectively compete with their private sector peers, RBI said such autonomy was contingent upon the government reducing its stake, especially at a time when the Centre was resorting to borrowing for capital infusion in these banks................
Contrasting view on PC screen
.......Chidambaram today went on to criticise his nominee for the RBI governor’s job — Raghuram Rajan — terming his seeking of a clearance from the Election Commission for the new bank licences as sending a “wrong signal” and a case of “playing it safe”..........
EC clears way for RBI to issue new bank licences
.....“The Commission has considered your request seeking guidance of the Commission whether it would be appropriate for you go ahead with the announcement of in-principle approvals for Banking licenses in view of the current enforcement of the Model Code of Conduct,”...............
On tap licences first for niche banks, then for universal banks: Rajan
............."This will allow people to allow banking capabilities with relatively small size corporations, which will allow them to apply for full banking licenses down the line. So to facilitate and expand entry, we need to look at both on-tap licenses, which is examined regularly, applicants every few years and have differentiated licenses,"..........
RBI temporarily suspends NBFC registrations
.........“These recommendations are being examined by the bank. Several changes to the regulatory and supervisory framework for NBFCs may be called for. Putting in place the required mechanisms is likely to take some time,”..............
Finance Ministry against raising income tax exemption limit to Rs 3 lakh
The Finance Ministry has rejected a Parliamentary Standing Committee's recommendation to raise the income tax exemption limit to Rs 3 lakh and to adjust other slabs saying that it will lead to an annual loss of Rs 60,000 crore to the exchequer. It has however decided to reduce the age for tax exemption for senior citizens to 60 years from 65 years...........
Foreign Banks Face RBI Stick After Shunning the Carrot
......The RBI’s efforts are in line with other global regulators, which are trying to prevent any contagion effect from economic crisis such as that in 2008. But, foreign banks cite requirement like guarantees from the parent and restriction on dividend payout as impediments in creating local subsidiaries. They are also not happy with the rules on compulsory lending to the priority sector — such as........
Read - ET
Bankers ask EC to bar defaulters from LS polls
The All India Bank Employees' Association (AIBEA) has requested the Election Commission of India (EC) to bar and disqualify candidates from contesting the elections, if they or their companies default on loans to the banks...........
Monday, March 31, 2014
If inflation is 7-10%, lending rates can't be less than 12-14%: Rakesh Mohan
........I don't think the IMF's assessment has been that different from what the Government of India has itself been saying, although it does give a somewhat smaller weight to global factors. There is clearly an impact of the global economic slowdown on almost every country. Coming back to India, we were able to counter the immediate impact ............
Inflation targeting - What's the hurry? - Charan Singh
.....Changes in monetary policy framework deserve focussed attention and a well chalked-out strategy to be successful. Illustratively, the foreign trained but domestically experienced duo of Montek Singh Ahluwalia and and C Rangarajan ensured that the reforms of 1990s were properly sequenced, well calibrated and widely consultative in nature. Only then ..........
Targeting Dr Chakrabarty
On 25th April, one of the most forthright and honest deputy governors (DG) of the RBI will retire—three months before his term ends. It is befitting that Dr KC Chakrabarty, who got the post and an extension without the customary lobbying, has chosen to quit before his term ends.................
Kamath leads race to succeed Chakrabarty as RBI DG
Raghuram Rajan headed search panel has zeroed in on a successor to RBI Deputy Governor K C Chakrabarty and PNB Chairman K R Kamath is believed to be top in the reckoning..................
How HSBC Was Made To Pay
.......Although RBI did not send a formal response, the case was examined at various levels. We were also convinced, at that time, that a complaint to the banking ombudsman would be of little use, since its scope is very limited. We requested Dr Chakrabarty to take up the issue of mis-selling of third-party financial products by banks............
Muggers attack, rob home-alone woman
.......The victim has been identified as N. Geeta, wife of Ravinder, a retired employee of Reserve Bank of India. The incident occurred when Geeta’s domestic help left after finishing her work and leaving the main door open. Mr. Ravinder had gone out for some work. The muggers barged into the house and .........
Tech-savvy Hyderabad youngsters take to bitcoins for investment
.........In India, its use is largely restricted, but that is beginning to change. "Barring a few techies, nobody was interested in bitcoins until the end of last year. However, after the RBI warned against the use of bitcoins last December and later changed its stance saying it would not regulate it, the interest levels began to climb," said M Kamlesh, who is all set to start a bitcoin exchange in the city on the lines of similar setups around the world. ............
Common Causes
............Tarapore is probably the first economist to write a column syndicated in multiple languages. Common Voice has been in print since 1997, and books have followed. Long regarded as a monetary hawk, Tarapore is convinced that high inflation is a cruel tax inflicted on..........
Reddy-ing for the elections: How Raghuram Rajan breaks from Subbarao legacy
............The RBI was at a loss when the rupee fell to record lows when the FIIs pulled out of the market after the US Fed hinted that it may unwind its accommodative policy sooner than expected. Clearly, Rajan does not want to commit this mistake, especially at a time when the US Fed has started tapering and also hinted at interest rate increases. So the RBI is now buying dollars to spruce up its reserves. But apart from this, there is one more reason...........
A sensible intervention
.......But, clearly, the Indian economy, while satisfying the first two criteria, is somewhat fragile on the third. Given that the RBI has apparently hardened its commitment to controlling inflation, it should hardly be expected to throw caution to the wind and risk aggravating the situation again. If it does, in fact, put a premium on.............
Capital challenge
................Former governor D. Subbarao had said in September 2012 that Indian banks would need Rs.5 trillion of new capital to meet global norms. Analysts had pointed out at the time that the government would need to put upRs.90,000 crore in the coming years to maintain its holding in public sector banks. The numbers will be far more...................
Neglected for decades
My View on "Paying RBI governor his due"
Thank you FE for giving space for airing an issue which has been neglected for decades. Some individuals including the previous RBI Governor Dr Subbarao had raised this issue in public and received 'feeble' support from some commentators including economists. If public sector organisations and statutory bodies have to make meaningful contribution to the Indian Growth Story they need to be strengthened by putting in place competent people at the helm-in boards and top level- and a thorough overhaul of HR is overdue at all levels. Market-related remuneration is an integral component of HR Management.
- M G Warrier (Camp: Wynad, Kerala)
RBI: Looking beyond the shock
.........RBI is creating incentives for the sale of stressed assets. However, what has not being adequately recognized is that there isn’t a developed market for stressed assets. Second, the fact of growth global secondary markets, falling asset prices and constrained liquidity will result in banks looking to trade distressed ............
Kadamakkudy panchayat gets its first bank, ATM
..........The declaration as a totally banked district was made by the RBI Governor on the basis of surveys and an intensive campaign undertaken by various banks under the district lead bank scheme. The tag ‘fully banked’ tag is given to those districts with a minimum of 90 per cent of the people having accounts with any bank, according to officials of the lead bank..........
Group Rights are as Important as Individual Rights: Nalsar VC
..........In fact, the collective rights are basic pre-conditions for according individual rights, Nalsar University of Law vice-chancellor Prof Faizan Mustafa has observed. He was delivering CD Deshmukh memorial lecture on ‘Minority rights under Indian Constitution: A trilogy of judicial errors’ here on Saturday. CD Deshmukh was the first Indian governor of the Reserve Bank of India and was known for his deft handling of division of assets and liabilities between India and Pakistan during Partition in 1947.........
Next-Gen Reforms to place Banks on a Sound Footing
...............Parallelly, the RBI is setting up a Central Repository of Information on Large Credits for disseminating credit data — including stress category of the borrower — on all large borrowers to lenders so that recalcitrant borrowers are not able to fleece banks. This signals the dawn of next-gen reforms. With PE firms and large NBFCs — with foreign investors riding on them — coming in as new players and RBI mandating that banks sell even.............
Read - ET
Credit cards back in vogue on payment flexibility
.......“Due to the larger global economy impact, there was a phase where issuers were exercising caution on expansion plans but in the last few months, consumerism has made a comeback. There has been an increase in spends across categories............
Pre-paid card issuers need minimum Rs 5 crore to operate in India
The Reserve Bank of India has raised the minimum capital requirement for pre-paid card issuers five times to Rs 5 crore and told them to maintain a minimum networth of Rs 1 crore.......
Friday, March 28, 2014
Paying RBI governor his due
........RBI should be fully autonomous in terms of pay scales so that there is commensurate reward to the staff as well as incentive for individuals to find the job attractive. Currently, given that the pay could be at 3-5 times in the private sector, it is certainly not attractive in monetary terms, though could be fulfilling otherwise. The institution does provide compensations in terms of generous housing, loans, education allowances, etc, but it does not provide a secure future beyond the public pension schemes. For a governor who has a tenure, unless there is a backup income from the past or in the future, the only motivation could be to steer the ship with limited attention to compensation.............
Core CPI rigidity an important issue: Gokarn
I think the broad thrust of exchange rate policy has not changed for sometime - that is if there is a perception that inflows are robust, are permanent then there would be less inclination to intervene to support - in a sense - to keep the rupee at the levels it is right now. But if there is a perception that this is a short-term windfall kind of a movement then there might be some inclination to shore up reserves in anticipation of the fact that this flow might reverse. So bottomline is................
Strengthening and revitalising rural cooperative credit delivery system - Deepali Pant Joshi
Speech by Dr Deepali Pant Joshi, Executive Director of the Reserve Bank of India, at the National Meet of CEOs of State Cooperative Banks, Mumbai, 21 March 2014
.........The Committee on Financial Sector Assessment set up by the Government of India in September 2006, under the Chairmanship of Dr. Rakesh Mohan, looked into the financial health of all the banks including the cooperative banks and made recommendations for improvement of financial health and systems for attaining and maintaining financial stability. A major recommendation of the Committee was to prohibit unlicensed banks from functioning beyond March 2012..................
Change in Mindset is the Key for Financial Inclusion - Dr.T.V.Gopalakrishnan
.........The bank officials right from top to bottom can do a lot to improve the living conditions of masses and have the satisfaction of serving them in letter and spirit and providing the support system to give a big boost to the economic growth provided they get fully absorbed and involve themselves with commitment in the discharge of their responsibilities. The mandate for this.............
Love for banks, but not bankers
..............Aptly I quote RBI governor Raghuram Rajan, “Our distaste for the banker must not be allowed to destroy the bank.” He wrote this in his column “Love the bank, hate the banker”.
Free health check up for retired MAFS members attached to Bangalore office
The R B I Bengaluru office is arranging for a free Health Check up from Marsh India (their initiative) - "ONLY FOR RETIRED MAFS MEMBERS ATTACHED TO BANGALORE OFFICE". Those retired staff who wish to avail of the above health check-up may get in touch with
Shri Jagadish K | Sr.Relationship Manager
Marsh India Insurance Brokers Private Ltd. | RMZ Millennia 4th Floor, Tower-C Land Wing, Murphy Road Ulsoor, Bangalore 560008
+91 80 41857814 | Fax +91 80 41857801 / 02 | Mobile +91 9739108883 | Email ID: jagadish.k@marsh.com<mailto:ja
As reported by Franklin Randolph frankmisquith@gmail.com
RBI may go for a smaller than 25 bps rate hike: SBI Report
.............However, since RBI has surprised the markets in past few policies, there is a possibility of rates going either side, but with a larger probability of a rate hike, the report said............
Read - ET...........
BJP reiterates stand on new bank licences
.............“We have said earlier and still maintain that it is an issue for the next government. We will closely scrutinise any move by RBI in this direction if it were to happen prior to formation of the 16th Lok Sabha,” ..........
RBI sought EC's nod on bank licence as matter of caution: Rajan
.........."I think (it) is to make sure that any such announcements are not tinged by uncertainty. That's why it is important to ask the Election Commission whether this meets with the code of conduct. "Think of it as caution, you might call the caution excessive but it's important to follow process,".................
RBI extends Basel III deadline to 31 March 2019
...............“Of late, industry-wide concerns have been expressed about the potential stresses on the asset quality and consequential impact on the performance/profitability of the banks. This may necessitate some lead time for banks to raise capital within the internationally agreed timeline for full implementation of the Basel III capital regulations,”..................
Can RBI’s policies alone tackle rising NPAs deftly?
...The Reserve Bank of India (RBI) along with the other regulators, has constantly been trying several policy reforms to deal with the rising NPAs with not much impact. Looking at the current market scenario and various steps taken by RBI, it would be interesting to see, how bad loans can be minimised...........
Should RBI target inflation?
The issue on whether the Reserve Bank of India should target a particular level of inflation in its monetary policy has many disagreeing, including some prominent names. Doing so was one of the key recommendations of the Urjit Patel committee report. It also suggested adopting..............
India needs more disinflationary medicine
..............To understand what RBI may do, one has to look back at the past two monetary policy appraisals in December and January and look at the factors that prompted a pause and a hike in these two instances respectively...................
How to Solve India’s Bad Debt Problem
........Back home, the government and the RBI should facilitate the formation of Namco, with banks as its major and initial shareholders with an equity base of around . 6,000 crore. Namco’s goal should be to resolve the NPA problem. Its main activities will include NPA acquisition, aggregation and resolution, including the sale of businesses, or assets, or management change. Then comes the rehabilitation, recapitalisation and refinancing. It will also be..............
Read - ET
Srei gets RBI nod for 9,000 white label ATMs
.........Srei said it would leverage its over 27,000 IT-enabled Common Service Centres (CSCs) which were already in operation by village level entrepreneurs (VLEs) through Sahaj e-Village Limited. ............
Thursday, March 27, 2014
Getting out of cash- what can banks do?
The mobile is of course just a channel, and adoption of this new way of making payments or even checking your account balance is easy, but only once people have learnt to trust and use the app. While trust will spread by word-of-mouth of satisfied customers, we still don't see massive ad campaigns on using the phone as a quick and easy way to do basic transactions. RBI tells us that 80 banks have been allowed to give mobile banking services, of which 64 have started, but not many banks have ad campaigns out...........
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