...........In the absence of any spontaneous signs of recovery and with the Reserve Bank of India focused on the other significant problem, inflation, the compulsion on the new government to get to grips with this frightening situation is enormous. But, given the depth of the problems, it would be naive to expect a mere change of guard to immediately set the recovery ball rolling. The government will need to address the issue at a number of levels.............
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.
Tuesday, April 15, 2014
Rajan makes his point
.........The irony is that Rajan himself was (still is?) a big supporter of the Chicago School theory that central banks should have only one, or a hugely over-riding, objective of managing inflation. This suggestion was strongly made by a committee headed by him on financial sector reforms. For the same person to pitch for a globally........
Short changing..............
My View on "As India goes to the polls, its banking chief coul...":
Some political comments about ‘changing’ RBI Governor made by some disgruntled politicians are getting echoed in the media, which are being taken seriously by those who have no source to check out realities. In the institution’s history of about 80 years, political changes has affected the highest post in the Indian central bank just once. That was to replace an incumbent who was actually ineffective. After Subrahmaniam Swamy made some comment about RBI Governor in the context of Elections 2014, senior BJP spokespersons like Arun Jaitly had clarified that the party’s approach was not to go by individuals. That and the past history of RBI which has maintained continuity at the top all along, irrespective of the changes in New Delhi should have set at rest the speculations. There can be no two views about RBI and Dr Rajan will take the gossips in their stride. Still, there is no denying the possibility of their (the gossips) having some dampening effects in the short term, on the current initiatives of the central bank to move faster with financial sector reforms and giving a direction to monetary policy. Such impact may last for another month.
- M.G.Warrier
Why Raghuram Rajan suits Narendra Modi's economic visions
..........This view on Rajan's exit is as inflated as the finance world's forecasts — because the conclusion is more driven by what they want to see, rather than seeing what lies in front of them. The premise is there will be a blow-up of differences between the pro-business Narendra Modi as PM, who would want lower interest rates, and the staunch monetarist Rajan, who keeps rates high to tame inflation. ...............
Panel for Top Govt, PSU Jobs
...........Government has also been subjected to certain unhappy situations in relation to top level appointments in public sector and within the government as well, and should think of some damage control in HR area. Of late, several questions relating to suitability, tenure and methods of selection are being raised in public about high level appointments in government and public sector including statutory bodies like RBI, SEBI and PFRDA. Time is opportune to appoint a High Level Commission.............
Dream very difficult to realise
"The RBI's
scheme of pension is on the lines of GOI. It is only logical that the rules
relating to pension updation in the Bank cannot be different and have to follow
the rules of GOI as decided by the Pay Commission ", Shri. A.
Chandramouliswaran, Executive Director, Retired.
A note covering some aspects of pension matters
submitted respectfully............
परेशान पुलिस ने दी आरबीआई को सलाह
जाली नोटों का चलन रोकने के लिए बैंकों में नोट पहचानने की मशीनें लगाने की सलाह दी गई है। पुलिस विभाग ने यह सलाह रिजर्व बैंक ऑफ इंडिया के अधिकारियों को दी। पिछले दिनों हुई एक बैठक के दौरान आला पुलिस अफसरों ने बैंक अधिकारियों से कहा कि वे प्रदेश की नेपाल सीमा व अन्य प्रदेशों की सीमाओं से सटे जिलों व कस्बों में इन मशीनों को लगवाना सुनिश्चित करें।.............
Jalan says 'fit and proper' norm does not contradict RBI's inclusion drive
..........."I cannot comment on the policy, it will not be fair. The only point I would make is that there is no contradiction in the principle of financial inclusion and fit and proper criterion. It is a scrutinised criterion to make sure that other people's money, which is what banks deal with, are disbursed and allocated in a manner which is appropriate and fit and proper,"............
For financial inclusion, give licences to telcos partnering with banks
..........In an under-banked country like India, the business opportunity for banks is enormous, but the onus lies with the RBI to revolutionise mass banking through innovative use of telecom services and technology. It should create new kinds of banks with limited functions, such as the payment banks recommended by the Nachiket Mor committee.
RBI not to allow promoters to become CEOs of private banks
.........The Central bank is keen that the promoter doesn’t become the chief executive in order to avoid conflict of interests and other vested interests. “The RBI made the mistake of allowing some private banks to come up with the promoters becoming CEOs as well. It should not happen again,” said a senior official of the RBI.............
RBI to issue coins
The Reserve Bank of India has made arrangements to issue coins to the public during the Vishu-Easter festival season. An assortment of coins, in different denominations, can be obtained through Coin Vending Machines (CVM) for the value of the note inserted and ..........
Elections and fake Indian counterfeit currency notes
..............It is rather unfortunate that except for an assurance in May last year that RBI are contemplating to bring polymer currency notes and that test marketing has been already done in selected towns, no further clear-cut statement has been made by them. It is time RBI introduces the polymer currency notes in denomination of Rs500 and Rs1,000 without any further delay.
States can be granted moratorium: Bimal Jalan
In what may come as a breather for the Mamata Banerjee led government, former RBI governor Bimal Jalan on Monday said that moratorium can be granted to a state and there is precedence of that. Jalan's statement comes weeks after Union Finance Minister P Chidambaram said that a moratorium could not be granted to Bengal as that would propel other states to demand a moratorium............
Households dominate deposits ownership: RBI
........A study on the composition and ownership pattern of deposits with scheduled commercial banks in the country by the Reserve Bank of India (RBI) reveals that household sector continues to dominate the deposits ownership. As of March 2013, they owned just a shade under 60 per cent of the ₹71,46,600 crore of deposits in banks in the country. The Government sector owned a little under 14 per cent..............
Canara Bank bids adieu to Windows XP
Canara Bank, one of India's largest and oldest state-owned banks, has completely migrated from Windows XP, moving around 33,000 PCs to modern versions of Windows operating system. Realizing the potential security vulnerabilities and monetary hazards of staying on Windows XP after the end of support, the bank switched to modern Windows before support ended on April 8..........
No TDS on deposits doesn't mean these are tax-free
............“There is a common misconception if there is no TDS, it is tax-free. But whether it is recurring deposit, post-office deposits, national savings certificates, or any other savings, if there is no TDS, the interest income is taxed. The only difference between these and fixed deposits is the bank or post office will not deduct tax at source,”..............
Monday, April 14, 2014
RBI must end discretionary regulation: K C Chakrabarty
..........We must re-examine our goals, our vision, our strategy and our structure. The new governor has asked for examination of everything that is being done in an old way and this is the reason why so many committees have been set up. Change is inevitable. Partly, it has to be people within the Reserve Bank of India who have to deliberate on what RBI should be doing. We can give suggestions to whosoever is in charge of implementing the recommendations of FSLRC. But, ultimately, whatever is decided, we must be able to deliver the goods. ..............
Policy: Lack of tools and a drought of data - Charan Singh
.............The crucial issue is lack of substantive information contained in the documents that deprives researches and market analysts of valuable data. If there is a change in the policy of data dissemination, RBI could consider issuing a press release as to where rare historical data can be located. Important data, for example, that could help a researcher is related to variations in the housing indices, non-performing assets and their sectoral distribution, and external sector vulnerabilities. In fact, .........
As India goes to the polls, its banking chief could pay price of prescience
.............There would be no more effective a way of the new government shooting itself in the foot. Indeed, if Mr Modi is serious about reinvigorating India’s economy, one of the first things he should do on becoming prime minister is to grant the Reserve Bank of India full independence, with a clear mandate to support growth by targeting a tolerable and stable inflation rate.............
Rajan's wars: Rift among freemasons, tension at home
......It’s “inflation targeting” -- a subject that’s core to Rajan’s thinking. He was quick to dismiss reports of his differences with BJP as mere speculation. Faced with a pointed question, there is little else that he could have said. But it would naïve to think that BJP’s stance on interest rates was a surprise to Rajan.............
This is why Raghuram Rajan made a pitch for emerging market safety net
........."My remarks are motivated by the desire for a more stable international system, a system that works equally for rich and poor, large and small, and not the specifics of our situation," .............
Rajan’s Peers Not Enthused by Cooperation Plan
The head of the Reserve Bank of India (RBI) ran into a wall of resistance on Friday when he urged some counterparts in developed economies to more formally consider the effects their domestic stimulus has on emerging markets. Alongside central bankers from the United States, Europe, and Brazil, Raghuram Rajan took the stage at a high-profile event here to list his proposals for better monetary cooperation and a global “safety net” that could provide funds for countries in case of economic emergency..........
Read - ET
Read - ET
Parties should not politicize office of RBI governor: Jalan
........"The tradition has been that the RBI governors haven’t been affected by changes in government. That is the normal rule," he said. "But anything can happen in our country. We shouldn’t politicize the office of the governor of the RBI."
BJP unlikely to change Rajan in haste
.........In New Delhi, party sources say the BJP views Rajan’s eight-month long stint as the RBI Governor positively. A senior party leader told Business Standard that the BJP appreciated that Rajan worked under enormous pressures from the finance ministry both as the chief economic adviser and later the RBI Governor. .........
Cultivating Agriculture
...........Agriculture is far more important for the Indian economy and policymaking than its share of GDP suggests. It employs the largest proportion of the workforce and food has been the largest contributor to inflation for several years, preventing the Reserve Bank of India from cutting interest rates even as growth elsewhere has collapsed. The policy response to this problem has been muted thus far, and one wonders if it is because of a lack of understanding.............
Obituary
Shri K.J Sebastian who retired from TVM office and settled very near to our TVM regional Office is no more. He died after a severe heart attack early morning on 11-4-2014. He was very systematic in his work. While in service also he had suffered from a serious attack from which he escaped narrowly but came to normalcy as he lived very systematically. May his soul rest in peace.
-- P N Nandakumar
Reserve Bank Of India - Scholarship Scheme For Faculty Members From Academic Institutions
The Reserve Bank of India invites application as per prescribed format from full-time faculty members, teaching economics or finance in any UGC-recognized Universities/Colleges in India to undertake short term research in the areas of monetary and financial economics, banking, real sector issues and other areas of interest to the Reserve Bank. ............
Read - Greater Kashmir
Read - Greater Kashmir
Beware of emails promising windfall gains: RBI
............Chief General Manager, RBI, Alpana Killawala in an advisory `published on the website of central bank states: “Reserve Bank has advised the public not to remit or deposit money in such accounts in response to fictitious offers/representations. The public may immediately bring the details of such offers to the notice of local police authorities for booking the culprits.”
The Reserve Bank advice came in the wake of many residents falling prey to such tempting offers and losing money in the recent past...........RBI to issue Rs 500, Rs 100 notes of 2014 soon
The Reserve Bank of India will shortly issue banknotes of Rs 500 and Rs 100 denominations in the Mahatma Gandhi series with ‘2014’ as the printing year. ‘Rs 500 denomination banknotes incorporating rupee symbol on the obverse and reverse, with inset letter'E' in both the numbering panels, in the Mahatma Gandhi Series-2005, will be soon issued,’ stated RBI ..................
RBI relaxes some import/forex rules
.............Henceforth, RBI will not notify the names of foreign mining companies from which such an importer may import roughs by way of advance payments and without any limit or bank guarantee or standby letter of credit. However, banks remitting the advance payments must adhere to certain conditions. RBI says banks should undertake the transactions on their commercial judgment and ........
Micro-steps to success
............Adhikary, 28, is a credit officer with Bandhan Financial Services, a little-known microfinance firm which early this month trumped several big names to win a banking licence from the Reserve Bank of India. Started in 2002 in Bagnan town of Howrah district, Bandhan was conceived by Chandra Shekhar Ghosh to provide microcredit to farmers and small artisans, but predominantly women................
Finance ministry considering proposal for fixed term for PSU bank chiefs
.......It has been pointed at many occasions that top executives are appointed for a short tenure that hampers implementation of medium or long-term strategies of banks, the official said. Therefore, the government is looking at correlating the the tenure with job-related performance,
Urban co-op banks may be next in line for licences
.................RBI had in 2012 taken a step forward to give licences to urban cooperative entities, but private entities were somehow given priority. Only a few days ago, the RBI gave permission to two entities — IDFC and Bandhan Financial Services. Earlier, the Malegam Committee too had suggested that UCBs play a useful role and there is need for a greater presence of UCBs in unbanked districts and centres with populations of less than 5 lakh people...............
Push banks to take more responsibility
..............The central bank needs to come to terms with the fact that regulations for wealth management sales practices by banks can no longer be put on the back burner. Removing pre-payment penalties on floating rate loans or charges on maintaining minimum balances are important but still only incremental changes in the overall customer protection armour. Some bankers, in fact, argue that ................
Our customers in rural areas are our brand ambassadors: Bandhan CEO
..........I focus on developing a relationship with the customer. Understanding your customer is very important in microfinance. Continuously training of your executives is a must. We go to places where people do not have access to finance. India is a country where as much as 60 per cent of the people have no bank account, and only 10 per cent can access bank credit. How will these people run their business, who will give them credit? For the economy to grow, we need to develop.........
What experts make of RBI's game plan for NBFCs
............That is a broad thing. The thing is where the bargain is. If you say that a differentiated bank licence – essentially what is a characteristic of a bank and what is a risk that banks pose because they take short-term deposit payable on demand or otherwise there is always this question of a run and ultimately you are protecting the depositors against that kind of a eventuality happening
How different will be differentiated bank licence?
.......The thinking in RBI has changed and it is getting ready to open doors for different types of banks even as the aspirants and banking consultants have been speculating on their profile. For instance, will there be different banks catering to different segments of borrowers or will they be structurally different? If RBI chooses to have niche banks for different segments, we may end up having mortgage banks and............
Another dismal quarter for bank earnings
...............Yet there are some differences unique to the March quarter. One, the Reserve Bank of India (RBI) has allowed banks to use one-third of their counter-cyclical provisioning buffer for providing for bad loans. That should provide some relief to state-owned banks. Secondly, the so-called..............
State-run banks under watch after a spike in NPAs
........."Those companies which are perennially in the habit of late servicing of loan payments or are rigging the system through multiple banking should be paying more for credit," said a senior finance ministry official, adding that the government-appointed committee will look into these issues. The committee, which will include Reserve Bank of India (RBI) representatives, will also take up cases of 'quick mortality' related to loans turning going bad within a matter of months.
Read more at: ET
Publish names of loan defaulters, say bank officers
.........The 73rd meeting of the Executive Committee of the Confederation held in Chennai expressed serious concerns over rising non-performing accounts (NPAs). The meeting also demanded that wilful default should be made a criminal offence and FIRs lodged against such defaulters as directed by the Reserve Bank of India............
Friday, April 11, 2014
Rajan calls for coordination among central banks
... "The current non-system in international monetary policy is, in my view, a source of substantial risk, both to sustainable growth as well as to the financial sector. It is not an industrial country problem, nor an emerging market problem; it is a problem of collective action. We are being ...........
Raghuram Rajan: International monetary policy a source of substantial risk
.........“It is not an industrial country problem, nor an emerging market problem, it is a problem of collective action... A first step to prescribing the right medicine is to recognize the cause of the sickness. Extreme monetary easing, in my view, is more cause than medicine. The sooner we recognize that, the more sustainable world growth we will have,” .........
Talent deficit at the top: Some areas of concern in banking - M.G.Warrier
....At the same time, the news about the delay in filling up of vacancies at the top in various public sector organisations including Reserve Bank of India (RBI) and a tendency to make compromise on selection of candidates for narrow considerations has opened up a debate in the media. The government and the organisations should take cognizance of this healthy debate and grab the opportunity to overhaul the top level human resources (HR) management to meet challenges posed by the changes caused by opening up of the economy and consequent play of market forces......
Can't have cake and eat it too....
My View on "Pension updation and opening of fresh option - RBI...":
Before I proceed to offer my unsolicited comments (views have been asked for only from the regional units of the RBIOA), let me at the outset make one point clear. I cannot claim much expertise and detailed knowledge in the area since my experience is limited acquired while serving as CGM,HRDD for 11 months(!!) and having been entrusted with the 1992 Pay revision negotiations with all the Associations. (HRDD Chief ought not to have been entrusted with this work.). Nevertheless, I believe that my views on the aspects on which I am offering my comments are sound.
2. Pension Updation even in the Central Government has been introduced only in the last two Pay Commissions and was non-existent prior to that date. If we in the RBI demand pension updation, as in the Central Government, on the ground that the Bank's scheme of pension is on the lines of the GOI, then it is only logical that the rules relating to Pension updation( whether it is the definition of 'pay', manner of fixation of revised pension etc) in the RBI cannot be different and have to follow the rules in the GOI as decided by the Pay Commission. We cannot have the best of both the worlds( RBI's rules relating to determination of pension and rules of the Pay Commission in the matter) and to demand it betrays lack of realism. Hence, if we wish to have the benefit of updation of pension, we have to accept the conditionality of the GOI.
Secondly, the rationale of pension updation is that pensioners who had retired from a particular grade should be eligible to draw the same amount regardless of their date of retirement. If this is so, it would appear that 'Pay revision' and 'Updation of pension' would have to follow the same periodicity (10 years as at present) and one cannot be delinked from the other. Otherwise, it would not be possible to ensure the drawal of same quantum of pension by all pensioners who had retired from the same grade but at different points of time. I would be happy to know whether there is any flaw in my argument and if there is I am willing to stand corrected.
3. In view of the above, it would be good if RBIOA find it possible to consent to the proposal with in the next 10 days as the issue has taken many years to get resolved.
4. As regards the condition relating to "rationalisation of perks" of serving employees, this is totally irrelevant to the issue and one cannot see any connection between this aspect and pension updation and pension option. Governor should with all his authority, backed up by his standing, reputation and skills in argument, take up this point with the GOI and most of us have confidence that he can and would do it. SBI officers have enjoyed better perks than the officers of the RBI for several decades( when perks were practically non-existent in the RBI) and I am sure that they would be enjoying excellent perks even now.
- A.Chandramouliswaran, E.D (Retired)
The Finance Ministry current direction to RBI on wage and pension updation at the span of every 10 years on the lines of 6th CPC and also that of future CPCs need to be rejected by RBI management to keep itself autonomous as per it's charter in real sense.Whether, the Top Management can do it or not due to obvious reasons will make the success and fall of the United Forums's efforts in the matter until forceful voice is raised in the matter. It appears that the bank's agreeing to RBI Staff Regulation statutorization in principle is giving space to government in amending staff matters by them. In case, United Forum is unable to keep the existing A+ Position vis a viz IAS Officers in Pay and perks matters, then they should ensure time bound promotion in RBI at IAS pattern at the minimum. pay rise on length of service of 30+ years at par with Secretary to GOI to all RBI Officers is to be insured and assured. I am sure when you talk boldly on this line only to Bank and GOI will be able to succeed and handle the bureaucrats suitably. Kindly think on this line also along for getting the leverage.
regards.
- Capt. C B Gupta
My personal view on the current debate on pension updation:
1. Pension was introduced in RBI effective January 1, 1986. A regular revision of pension has not happened so far. The revision once done(effective November 1, 1997) was dragged to court due to some irrational stand taken by Finance Ministry.
2. The position at 1 explains the urgency for pension revision. Conceding such urgency, during Governor Dr Subbarao’s period, Family Pension was revised. As there was a doubling of Family Pension from 15% of Pay to 30% of Pay the unacceptable and wrong method of arriving at revised family pension amount went unnoticed. Bank has so far been able to protect the interests of family pensioners post-revision, though the revision came very late. My view is that RBI should go ahead with revision of pension and find methods to protect the interests of the employees/pensioners. RBI can do this and delay in implementing the revision is not in the institution’s interest.
3. The conditionalities reportedly proposed by Finance Ministry are reminiscent of conditionalities totally unrelated to the projects usually imposed by IMF/World Bank for project loans given to ‘poor’ countries. The wage structure for workmen is based on negotiated settlement/s and last such settlement expired on October 31, 2012. Stealthily getting nods for change in service conditions without negotiation on major service conditions, besides being illegal, is denial of natural justice.
- M G Warrier, Thiruvananthapuram
Time Taken for Revision of Salaries of Bankers vs Parliamentarians
....UFBU has miserably failed to take the advantage of the pre-election period to extract an honourable settlement for the bankers. After the new government is installed, bankers will be more at the mercy of the new government, who will be in no way in hurry to settle the issues. ....
RBI issues fresh norms to curb customer discrimination
...To study credit pricing, RBI had formed a working group headed by Anand Sinha, former deputy governor of the central bank. The panel’s report, made public on Thursday, has suggested stringent norms to make loan pricing more transparent. “The working group recommends the spread charged to an existing customer cannot be increased except on account of deterioration in the customer’s credit risk profile,” RBI said........
Banks must lay down policy for sale, buying of property abroad
...The RBI also said banks should ensure that all future transactions relating to purchase or sale of real estate as well as acquiring or letting out property on lease or rental basis at overseas centres must be undertaken in accordance with the Board approved policy. " It has come to our notice that some Indian banks have committed certain lapses in purchase/ sale of real estate as well as in acquiring/ letting out property on lease/ rental basis at some places in foreign countries," the RBI said....
NPA situation unlikely to improve this fiscal: A&M
....The World Bank in a report released yesterday had said in India the problem is the banking sector's growing exposure to company debt. The fear is that this could ultimately affect the government's finances through its ownership of state banks and the need to prop up distressed but systemically important banks. The Reserve Bank of India (RBI) recently had issued guidelines to banks for early detection and curbing of non-performing assets (NPAs). .....
Bandhan Financial eyes deposits from existing client base in bank avatar
.......“Our customers do have cash surpluses from time to time, especially after they have repaid a loan. Now, they keep this money at home, but once we’re a bank, we can access it. Nearly 100% of our customers are women and they feel the need to save. Besides, there are two earning members in every family, so there is scope to raise deposits,” .........
To bank or not to bank: that is the question
........Given the record of the private sector banks, the RBI should have exercised caution. Who will take care of financial losses of these banks? Compared with public sector banks, their business size will be small, and they can focus only at the micro level. We need banks that can cater at the national level,” ...
Poor customer service at ATMs flayed
....The Reserve Bank of India (RBI), in a survey of ATMs, has found several deficiencies in services. These relate to messages showing insufficient cash and non-availability of contact details for lodging complaints at the ATM centres......
Cloning cards – the latest online menace
........This incident has also brought to light that cloning of credit/debit cards is the new growing industry in India and the reasons, cyber experts believe, are many. One of them is that cloning a card these days is as easy as photocopying a document with the innumerable softwares available online. A person just needs to go online, type cloning software and hundreds of them will come up...
Virtual credit cards: Future of money
.....In India, several banks and credit card issuers including SBI Cards — a joint venture between State Bank of India and GE, ICICI Bank, Citibank, Axis Bank and HDFC have already launched virtual credit cards to facilitate e-commerce, which is a major force driving the surge of virtual credit cards. Virtual credit cards are not issued physically. Credit card holders can use their cards by accessing their Internet banking facilities and providing their card details. The bank generates a........
Gubbi gets White Label ATM
BTI Payments Pvt. Ltd., one among the companies approved by the Reserve Bank of India (RBI) to establish 9,000 White Label Automated Teller Machines (ATMs) across the country, has set up the first facility at Gubbi in Tumkur district...........
Thursday, April 10, 2014
RBI's Deputy Governor R Gandhi: A 'simple man' well-qualified for new job
RBI appointment referred to EC for approval
The Election Commission will have a say in deciding a replacement for incumbent RBI Deputy Governor KC Chakrabarty, who had sought early retirement from the central bank. Although a search panel headed by RBI Governor Raghuram Rajan had zeroed in on a banker to take charge of this prestigious position, the Central Government, it is understood, wants to play it safe...........
RBI - fighting a lone battle
My View on "The RBI gets it right":
While I disagree with many of the words used in the conclusion which reads “The mandarins who run the Union finance ministry come from the top of the civil service examination merit list; those who run the postal department come from far below. How can a Brahmin find so much merit in an OBC?”, it is tough to find reasons to contest the grounds for making such an observation. Last few years have seen the central bank (Reserve Bank of India) as an institution fighting a lone battle to perform its mandated role as efficiently as it would have enjoyed doing. Most of the Governors and Deputy Governors who were in position during the last decade and a half, did understand the role expectations from RBI once they started operating from Mint Street. But the hostility of lower rung finance ministry officials for extraneous reasons made their life difficult. This resulted in the evolution of three power centres, namely RBI, its Governor and the finance ministry taking different positions on important policy issues. It is comforting to find that Dr Raghuram Rajan has been able to assert leadership and coordinate among these three divergent pulls and pushes. His willingness to unlearn what is not relevant to the Indian context and to prepare RBI to meet the new challenges by making the priorities clear to his deputies inside RBI and giving expression to his expectations from GOI in no uncertain words gives one hope about RBI getting back on the right track quickly.
- M G Warrier, Thiruvananthapuram
Changing perceptions
The rupee’s recent appreciation to below 60 a dollar — it is hovering around those levels — is a significant development and not just because of its breaching a psychologically important mark. At one level, its recent strength would appear to mirror the changing perceptions of investors, especially from............
Suitable choice
My View on "GS Sandhu - Making a propitious start":
It is a good development that a person with mild manners and belief in taking people along has been appointed in this position. Equally important is the aspect that he holds a doctorate in banking and hence should be a suitable choice for the post. In the past, some persons who have no background even in Finance not to speak of banking were appointed to this Ministry. IAS officers who were working, say, in the Water resources Ministry and with out much background in Finance are appointed to this Ministry as they are supposed to be all knowing!!It is also good that at present no IAS officer is a part of the top management( Governor/Dy Governors)of the RBI and I wish this position continues. In fact, I had expressed a view long ago in an article in the 'Business Standard' that there should be no quota for appointment to the post of Dy.Governor, i.e one/two from the RBI, one from the Banking Industry and one either from the IAS/an Economist. Highly competent persons should be appointed and in the process, if some section is not represented, it should not matter.
- A.Chandramouliswaran
Dr.N.A. Mujumdar - Prayer meet
Dr. Narasinh Annaji Mujumdar (former Principal Adviser, Reserve Bank of India) passed away on April 6, 2014. He was a selfless, caring, loving person, and a source of inspiration to many. His strong spirit will always remain with us. Fondly remembered by his wife, Shashikala Mujumdar his son, Sudesh Mujumdar; his daughter, Mamata Patwardhan and her husband, Shailesh Patwardhan; his grandchildren, Sharvari, Medha, and Jayant, the entire Patwardhan & Mujumdar families; and his Friends and Colleagues.
Prayer meet on Friday 18th April from 5pm to 7pm at Sri Admar Mutt Temple, 115 H, Near Fire Station, S V Road, Andheri West, Mumbai - 58.
Thank you for your condolences & support magmata@hotmail.com
Revisit inclusion
...... Of course, there is a large gap between the banks and the people with potential to seek financial inclusion. Just because of making villagers to have an access to a bank account inclusion wouldn’t be completed. A micro study on the income and savings of the account holder must be made to stimulate him to deposit savings and to seek small finance from banks to augment his earning capacity in small business ventures...........
Pension updation and opening of fresh option - RBIOA circular
.....First of all it would be in fitness of things if the facts are placed before you so that an informed decision can be taken by each one of you..............
CEO salaries in public sector banks
........To most observers it would appear that the government is unnecessarily penny pinching when it comes to CEO pay. Their reasoning is that salary hikes are being blocked by the bureaucracy who does not want psu employees to get more than babus of an equivalent rank in the government. Former RBI governor D Subbarao too supported psu chiefs on this issue pointing out that if psu banks had to compete with private sector lenders there should be a level playing field in salaries. So why is there such an inverse wage structure in public sector banks?................
Know Your Bank first
My View on "K(now) Y(our) C(haos)":
KYC has become very handy for banks to Keep YOUR Customers Away. They demand some document which the customer does not have and drive them away from branches. Bank Employees serve themselves. Before going to the bank Know Your Bank first and Know your Compulsions to have an account opened. Employees will ensure that You Are Not a Wanted Customer and they have KYC norms to back their wish. God Save Indian Banks and Financial Inclusion which is never going to be there in the present two or three generations and future generations also as long as Bank employees and authorities do not really have a mind set to view customers as a Business Opportunity. If it is absolutely essential then only go to the Bank. NRI customers are the worst lot as they cannot have regular contacts as the phones are not meant afor any Communication and emails are seldom read and answered.They are lucky in the sense that they do not come in personal Contacts with the employees to incur their displeasure and wrath.
- Dr.T.V.Gopalakrishnan
First thing to do is delink KYC from Money laundering. As former commercial banker I know the moment a branch manager gets a circular combining these two unconnected issues he or she will become rigid in handling a potential customer.Change the nomenclature to make it appeal a simple one. May be it can br christened Client Introduction Form. Allow BM and staff or a customer as eligible introducer .Things are likely to change.
- Santhanam
Postal dept asked to pay Rs 3 lakh for opening joint Public Provident Fund a/c
.....In May 2009, they went to deposit an additional amount into the PPF account but the postal authorities refused to accept it stating that as per the PPF regulations the account cannot be a joint one, they said in the complaint. They were also informed that the account will not carry any interest as it is treated as an invalid account. The authorities also informed them that the balance in the account can be paid only after completion of 15-year period. The Thane District Consumer Redressal Forum, in its order issued last week, took exception to the casual attitude of the postal department in dealing with such operations ...........
Managing NPAs: Cure worse than the Disease
........A former top executive of the RBI who did his Ph.D., on NPA Management has some good suggestion. Sans the statistical models creation of a ‘PRECAUTIONARY MARGIN RESERVE’ (PMR) suggested by him starts with a small levy of 0.10 percent to 0.75 percent on the following mandatory classification of standard advances. ............
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RBI steps in to end 'unfair' scrutiny of PSU bankers
...To overcome this, the RBI proposes to establish a procedure and define what could be mala fide so that it can come under the purview of the vigilance authority. "Every policy is greeted with suspicion and scrutinised for evidence of malfeasance.
ICICI Bank reports deposit of fake currency notes over several years
Country's largest private sector bank ICICI Bank has lodged an FIR in a city police station alleging fake currency notes with a face value Rs 10 crore were deposited in its different branches in the past several years............
Russian bank Vnesheconombank under probe for FEMA violation
..............."We are in discussion with the finance ministry over the issue. The bank's operations have not been suspended," an RBI official said. Under RBI guidelines, the bank can undertake only liaison activities and its role is limited to collecting information about possible market opportunities and providing information about the company and its products to prospective Indian customers. "They cannot earn any income in India," the RBI official said.
Why two licences is all that we could have expected
......Perhaps we need 50 licences, perhaps not, but in any case the above assessment is a patent misreading of ground realities. Banking licences are not a simple regulatory matter decided within the four walls of the Reserve Bank of India (RBI), unlike, say, a circular sent to banks to increase provisions on restructured assets. And RBI knows it acutely. More so the governor, who has had an association with the central government.............
Differentiated Bank Licence Old Wine In New Bottle?
Within two months, three weeks, and five days of the Nachiket Mor panel glorifying IDFC for proving its mettle as a differentiated bank in a shaky Indian banking industry, its chairman Rajiv Lall was told his company has been granted the licence to convert it into a full-fledged commercial bank. Soon after granting the licence to IDFC, and micro-lender Bandhan Financial Services, Reserve Bank of India Governor Raghuram Rajan said the industry is on the cusp of a transformation in the form of differentiated and ‘on-tap’ banking licences. Going by the two signposts of India’s current financial system — Rajan and Mor — the country could soon have, at least theoretically, 10 different types of banks, serving various constituencies — from retail to infrastructure. Does that mean that scores of new banks are a panacea to all the economic ills?.....
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