...........Concerned that the present framework for resolving failed banks and financial institutions may not work in a major collapse, the government and the Reserve Bank of India (RBI) are looking at a proposal to create a Financial Resolution Authority (FRA) backed by law, which will permit temporary nationalization of failed institutions. The FRA has been proposed by a panel comprising RBI and finance ministry officials, which said that the present system of resolution of bank failures through shotgun marriages may not work in future if larger institutions fail. .............
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.
Saturday, May 3, 2014
RBI switches 30 banks to risk-based supervision
........Former RBI Deputy Governor KC Chakrabarty in 2012 had submitted a report on the review of supervisory processes for commercial banks, and had suggested replacing the present compliance-based and transactiontesting approach (CAMELS) with the risk-based supervision (RBS) system. Several jurisdictions across the globe have adopted variations of the riskbased supervision. The RBI had, in the past, made several failed attempts to migrate to the RBS supervision. It had first tried to introduc ..
Wilful bank loan default crosses Rs.70,000 cr
........The wilful bank loan default by 400 customers to various public sector banks have crossed the Rs.70,000-crore mark. Having released the names of top 50 wilful defaulters in December 2013, the All India Bank Employees’ Association (AIBEA) will publish the second list of remaining 350 candidates on Tuesday. The first set of 50 defaulters, consisting of a sitting Member of Parliament, a Central Minister and two Padma Shri awardees, collectively owe over Rs.40,000 crore to nationalised banks and the remaining 350 defaulters account for Rs.30,000 crore. In the last five years.........
Sowing inclusion, reaping NPAs
............The issue is tricky because banks are reluctant to admit that farm loans are a drag on their balance sheets as it is politically correct to say that these loans are profitable. At a broader level, RBI needs to find ways to scale down this commitment for the banks, with the government pitching in to fill the gap. We need to strike a balance here and not go overboard on inclusive lending. New entrants into this arena should keep this in mind as they would be especially vulnerable...............
RBI mulls micro fin cos as business correspondent
The Reserve Bank of India is seriously considering the Nachiket Mor committee’s suggestion on allowing micro finance institutions to function as business correspondents of banks to further its efforts towards greater financial inclusion, sources close to the development told Cogencis. However, the move has faced serious opposition from various departments in the central bank.................
Read - FPJ
Read - FPJ
Bandhan to start banking operations 600 branches
................"We plan to start off with 600-700 branches across the country. Some of them may be either existing ones or new," Bandhan Financial CMD Chandra Sekhar Ghosh said. He said that 80 per cent of the branches would be in the rural areas and the rest in the urban regions..............
SBI extends self-employment benefits to differently-abled
............. State Bank of India has decided to extend benefits of over 100 Rural Self Employment Training Institutes (RSETIs) to differently-abled individuals under its corporate social responsibility (CSR) initiative..........
Yes Bank promoter case adjourned to June 19
...........The matter came up for hearing of notice of motion before Justice Roshan Dalvi, who adjourned the hearing to June 19, 2014 on account of court vacation beginning May 9, 2014. The counsels of the bank requested if the matter can be heard on Monday but was denied by the judge, who preferred to hear the two-judge bench order before beginning the hearing of the two parties. Yes Bank is due to hold its Annual General meeting in May or June, in which it could pass resolutions and discuss the disputed matter.........
Friday, May 2, 2014
How to manage portfolio capital flows - Dr.S.S.Tarapore
MONETARY POLICY - A Welcome, Refreshing Approach : M.G.Warrier
‘The Govt & Central Bank Need to Work Together to Tackle Supply-side Issues
...........The key to all of Rajan is that he is from University of Chicago. And you have got to remember that Chicago economics is all about the relationship between the economic actions and the information that you have about the future. And Rajan’s policies have been designed to try and talk down what you think inflation will be 12-24 months from now. That’s what inflation targeting debate is all about. If you think an ex-professor of Chicago is talking, you understand exactly what he is up to............
Read - ET
After autonomy, the need to fix proper accountability of regulators
......Direct accountability of regulatory bodies to parliament is not Chakrabarty’s original idea and was recommended by the Damodaran committee last year. In addition, a draft regulatory reform bill, approved by the government last year, which also made similar recommendations, did not come up for consultation. In India, where most committee reports are reduced to good pieces of literature and draft bills and don’t see the light of the day for years, more and more regulators demanding not just more autonomy but also more accountability could mean that the Damodaran committee recommendations and the draft regulatory reform bill may be formalised. Former RBI governor D Subbarao has also expressed his support for making RBI directly accountable to parliament. Prior to his retirement in September last year, he had said that while the RBI Act does not lay down any formal framework to ensure accountability, it does follow “certain good practices (which) have evolved over the years.”............
Read.............
VITALINFO - Valiant efforts
I sincerely convey my thanks to you for the vital and timely information
that are placed on your website (VITALINFO). It provides us a single platform
for serving as well as retired bank employees for providing vital and critical
information on banking sector/RBI. Please keep it up your valiant efforts in updating all of
us. Congrats once again for the same.
Regards
- C.L. Nag, GM DNBS Kanpur
Why Raghuram Rajan will have to surrender to a Modi government
........If the next Government is bold, it will prioritise agricultural reform and fiscal consolidation for its first three years in office and then think about inflation targeting for the RBI in the latter half of its term. That time frame may be too long for Rajan, whose terms finishes a little over two years into the next Government's term, but it is probably the only politically reasonable and feasible way to proceed..............
RaRa - Realistic Analysis
My View on "Why Rajan stands out":
Very realistic analysis. By discussing more, we may be, in a way helping gossip-mongers and certain vested interests which are not comfortable about the stability in the Indian financial sector which is being preserved during these tough times. There were no two views about the selection of candidate for appointment of RBI Governor when Dr Raghuram Rajan was offered the post. With the exception of some media persons and some politicians who are not holding any responsible position, no one has raised any doubt about Dr Rajan’s continuance post-Election 2014. The people who go on opening up discussion again and again are unaware of how RBI functions or are interested in destabilising the Indian economy.
- M.G.Warrier
The Rupee Dilemma
.........In a 2006 speech, Rajan, then the economic counselor and director of research at the International Monetary Fund, argued that lax monetary policy in rich countries could lead to dangerous macroeconomic distortions in developing countries. He claimed that investors purchase risky assets when advanced economies have falling interest rates, only to sell those assets when interest rates rise again. He termed this phenomenon “risk-shifting.” .............
Read..........
Controlling inflation by RBI
...........Without such an act giving power to RBI, this situation continues whatever measures RBI takes to control prices are not going to be of any sensible effect. In this context I request governor of RBI to convince the coming new government that an act be passed so that all prices and taxes levied by these authorities are approved by the Bank before they are implemented. Without prior approval of RBI no tax and increase in prices will be applicable.........
Read.........
RBI to issue Rs. 100, Rs. 50 banknotes with 2014 printing year shortly
..........."The Reserve Bank will shortly issue Rs 100 denomination banknotes incorporating symbol on the obverse and reverse, with inset letter L in both the numbering panels, in the Mahatma Gandhi Series-2005 bearing signature of Raghuram G Rajan, Governor, RBI," ..........
RBI may not ease rates till Jan 2015: Icra
......."The expectation of below-average rainfall in conjunction with the structural factors that exert stickiness on food and non-food CPI inflation would make it challenging for the RBI to contain CPI inflation below 8 per cent by next January," the rating agency said on Thursday. Therefore, "the most likely scenario" is an extended pause for policy rates and monetary easing will be delayed until, at least, early 2015, the agency added..........
Deadline ends, old cheques make way for safe, fast CTS
...........Transactions with cheques that have magnetic ink character recognition (MICR) and not CTS technology will from Thursday be delayed, with banks likely to take four days or more from the date of deposit to credit the amount. Banks will from now clear MICR cheques only on Mondays and Fridays instead of three days a week, an RBI official in Chennai said. ................
CTS cheque clearance facing delays
..........In most cases one day interest may not be sizable amount for an individual and hence the customer will not follow-up with the bank. However, in the above case, the customer did write to Bank of Maharashtra giving details of the proof given by Yes Bank. The customer was given credit of one day interest by Bank of Maharashtra, which proves that customers today are facing not just delay of cheque clearance but also loss of bank saving rate interest for a day or more. Will RBI issue a circular so that banks give necessary credit for loss of interest without the customer asking for it?.......
An SIP that provides $ hedge
.......While the fund house is targeting investors who will have dollar expenses in the future – child’s education or foreign travel. The good part is that the dollar reference rate (Reserve Bank of India reference rate) used for deducting will be of the week preceding the investment date. For instance, if you are investing on the May 15, the dollar rate considered will be of May 8. So, there will be some hedge available. In the case of this SIP, fluctuations in the currency, much like the stock market volatility, will get balanced ........
Shilpa Shetty’s Gold Scheme May Hit Regulatory Hurdle
Celebrity entrepreneurs Raj Kundra and wife Shipla Shetty are selling a dream to people who want to own gold, if regulators do not object to the plan. Satyug Gold, a company promoted by them, is offering discounts of up to 37% on the purchase of gold bars and coins for those who are willing to pay the entire amount in advance and wait for two to five years to take delivery............
Read - ET
Read - ET
When your banker asks you to buy or sell a stock, simply ignore!
...........“It is important to restrict banks from selling insurance products (Life & General). Unfortunately the Reserve Bank of India (RBI) has not yet done anything on this issue. These days bank jobs are not to develop one's career as a banker but to become a salesman without paying much attention to the seriousness of banking business.” In April 2013, Moneylife Foundation sent a memorandum to RBI Governor on behalf of more than 21,500 members (at that time) to free the system of mis-selling of financial products by bankers, misusing the savers’ trust.........
'Pvt banks made good profit on unsecured loans in FY14'
........Private sector lenders witnessed robust growth in credit cards and personal loan businesses in FY14, which helped them boost top line amid sluggish corporate credit demand in a slowing economy. ICICI Bank, India’s largest private sector lender, witnessed 141.6 per cent growth in personal loan disbursement in the past financial year, according to a report by Emkay Global Financial Services. The lender also saw.......
Pay Vile Parle woman 3L, consumer panel tells bank
The state consumer disputes redressal commission has brought to book a bank for causing a loss of Rs 1.70 lakh to a Vile Parle woman, after it wrongfully retained 1,000 shares furnished by her as security for a cheque. Bank of Baroda will have to pay complainant Ketki Mehta Rs 1.70 lakh, along with a compensation of Rs 1.42 lakh. .........
Read - TOI
Read - TOI
A single platform to pay all your bills?
........RBI is looking to build an entity similar to the National Payments Corporation of India (NPCI), which ensures standardized payment solutions. For instance, NPCI’s immediate payment system, an instant interbank electronic fund transfer service, allows you to transact across bank accounts. Similarly, the centralized bill payment system will allow you to transact across billers from a single point...............
Pay college fee via credit card EMIs
.....Not only are banks recovering lost ground after RBI barred them from providing ‘zero percent’ EMI schemes, they have added new segments, including educational institutions like Sikkim Manipal University and coaching institutes like South-based Byju’s Classes. Very soon, consumers may also be able to pay their health and motor insurance premium through monthly EMIs thanks to this facility.......
Don’t Let Reward Points Influence Your Card Usage
...........Aim to select a card that suits your needs than trying to shop for products and services that will yield reward points. Stick to a couple of cards that meet your requirements instead of hoarding several cards solely for rewards. “You should not obtain a credit card or use it for making payments merely to earn reward points. Reckless spending can lead you into debt traps. Credit cards are meant to be used only during emergencies. Use debit cards for making payments as far as possible,” .............
Read - ET
Thursday, May 1, 2014
Why Rajan stands out
When a class V girl offered to help RBI governor Raghuram Rajan
.................But last September, when the government and RBI were battling a major crisis with the rupee hitting record lows and the current account deficit going beyond acceptable levels, Laila Indira Alva, a class V student of Sanskriti School, wrote to central bank governor Raghuram Rajan. "I have heard about the crisis our economy is facing... I have also heard about the fall of the rupee with respect to the dollar," Alva said in the letter to Rajan................
FM to chair his last FSDC meet on May 13
.........As the meeting will be attended by RBI Governor Raghuram Rajan and heads of Sebi, Irda, PFRDA, FMC and senior finance ministry officials, the regulators would use the opportunity to bid farewell to the finance minister, said another official............
Decrease of 17 slabs likely from May 2014
..Based on the above calculations the new DA is likely to be @ 97.35%, for the months of May 2014 to July 2014. [The DA for February 2014 to April 2014 was 99.90% ] i.e. decrease of 2.55%. (decrease of17slabs) We give below the likely DA for May, 2014 onwards....
Read.........
Bank officers' body to mark May 1 as 'Demands Day'
......Specific to the body's demand is the implementation of regulated working hours and five-day-a-week working schedule for the Indian banking industry. In a statement, the AIBOC said,"The five-day working week will not have any impact on the customer service or any inconvenience to the general public in the midst of technology advancement and enhanced digital delivery of banking services.".................
RBI, Finmin Spar over NPAs at PSU Banks
........ Bad loans at staterun banks have gone up at a brisk pace, unlike their private-sector rivals and foreign banks. The RBI says this was because of reckless lending to corporates, an allegation that has not gone down well with the ministry which says the banks were only following government advice to help boost the economy. In a discussion paper, titled ‘Management and Governance Issues in Public Sector Banks’ and presented to the government in March, the RBI said ............
Economy in black and white
........In such a scenario, the intense focus on recovering black money from offshore bank accounts is partly misguided and it would be much more prudent to invest in mechanisms that will help restrict the generation and outflow of such money. These mechanisms would include reforms in a number of areas identified as most vulnerable to generation of black money such as real estate, bullion and jewellery, financial markets, public procurement, cash economy, trade mispricing and transfer pricing. Moreover, while there are a number of legislations to tackle this problem, the implementation of these needs to be strengthened. In this context,....................
RBI curbs on pre-payment penalty on floating rate loans put banks in a fix
The Reserve Bank of India (RB)’s advice to banks that they should not levy penalty on customers for prepaying their floating rate term loan has put lenders in a fix as they fear corporate houses, if they exercise the option, will create asset-liability mismatch problem.............
Fake rupee notes of Rs5, Rs10, Rs20, Rs50 and Rs100 surfaced!
.......It is time that RBI governor Dr Raghuram Rajan clearly make a policy statement on this issue of polymer currency notes. It is hard to believe what Dr Chakravarty has stated in regard to the "failure" of the bidders to come up to the RBI's exacting needs! Are we to understand that ALL the bidders have failed? ........
What to do if ATMs spew out fake notes for you
......But here’s another problem: assume I withdraw, say, Rs 5000 in thousand-rupee notes, and find out they are fake. I go to the bank, surrender the five notes. The bank will take the fake notes into custody — but will not reimburse me my 5,000 rupees; will not give me good notes in exchange for the fake ones. The bank’s reasoning is, there is no proof I withdrew those notes from its ATM. How fair is this? ..............
Muthoot Finance seeks RBI nod to launch pre-paid cards
...........Muthoot Finance has also requested the RBI to allow it to launch a special card to take care of remittances, under which a receiver could be able to make use of ATMs to withdraw transfered amounts, Mathai said. Explaining the proposal, he said "anybody can send money into the card and it can be withdrawn by the beneficiary from an ATM," and added this will be applicable for both the domestic and international remittances
Temple matters
........The government must think in terms of having a separate department for temple administration with an IAS officer at the helm of affairs. The Reserve Bank of India must take control of the temple assets........
SBI targets govt agencies to push e-payment gateway
..........Over the next three years, SBI plans to bring on board all major public sector banks to use the payment gateway for their debit, credit card and Internet banking transactions. Launched last month, SBI ePay is an aggregator service from SBI, which provides electronic connectivity with various banks and financial institutions, on the one hand, and merchants, on the other...........
‘Merger with Amanath by July’
.....Such a development is expected to augur well for the depositors of the troubled co-operative bank. It would also mean culmination of a long process, which involved approvals being obtained at various levels and some persons approaching the court questioning the merger and seeking probe into the affairs of the ACB.........
HC reserves order on YES Bank standoff
...........The court had ruled it had jurisdiction to hear Madhu's plea, prompting the bank to appeal against the order. "The judgement has been reserved. The judgment can come any day," a source said requesting anonymity. The judgement assumes importance as the hearing on Madhu's plea is scheduled to start on Friday.......
HSBC behaviour with customers in India
......... He also had meetings with officials from the Finance Ministry and Reserve Bank of India (RBI), which according to him were “not too encouraging” as everybody tried to re-direct him to someone else and nobody was willing to act or take responsibility for HSBC's actions. In an interview to Moneylife’s Yogesh Sapkale, Mr Mason-Mahon raised several questions on HSBC’s operations in India. Here are the excerpts from the interview….....
Wednesday, April 30, 2014
Dr Duvvuri Subbarao Appointed Distinguished Visiting Fellow at NUS Business School
KCC - Emperor of 'freedom of expression'
My View on "Dr KC Chakrabarty's post retirement cause for bank...":
Very interesting and informative article. The article also takes note of Chakrabarty’s approach towards the challenges now being faced by the financial sector. He was at times, according to his own admission, contrarion and never felt bad about being ‘controversial’ while using his ‘freedom of expression’. He will be remembered in RBI circles for his open mind and anxiety to find solutions for problems in his own way. Even his exit made a news, as perhaps, Chakrabarty is the first person in RBI to declare that it is the individual’s option to decide ‘when to stop’.
- M.G.Warrier
RBI to have a 5th dy governor; more executive directors
With new govt, RBI may face growth-inflation dilemma
.........According to him, RBI’s primary job, among others, is to arrest inflation. “RBI can’t do it alone. It has to be a concerted effort, with the government.” On its part, RBI has continued to remain “focused on inflation”. Some members of the RBI technical advisory committee, which met on March 26 and assessed the market situation, have expressed “concerns” on inflation. ............
Conference on Ethics and Corporate Governance
Corporate Governance assumes much significance in today’s corporate world as we see collapse of institutions, systems and procedures due to poor governance. Voluminous work has been done in the area of corporate governance through studies, debates and conferences. The need for such exercises is felt more in the modern world.
Speakers include
Ms. Chitra Ramakrishna, Managing Director & CEO, NSE Ltd.
Shri G. Gopalakrishna, Director, CAFRAL, Former Executive Director, RBI
CS Shri Vikas Y Khare, Vice President, ICSI
Shri B. V. Chaubal, Dy. Managing Director, SBI
Shri M. S. Sahoo, Secretary, ICSI
Shri V. S. Sundaresan, Chief General Manager, SEBI
Shri Sandip Ghose, Director, NISM
Dr. Amitabh De, Director, IIM, Shillong
Shri Amarnath, Chief General Manager, RBI
Shri G. Gopalakrishna, Director, CAFRAL, Former Executive Director, RBI
CS Shri Vikas Y Khare, Vice President, ICSI
Shri B. V. Chaubal, Dy. Managing Director, SBI
Shri M. S. Sahoo, Secretary, ICSI
Shri V. S. Sundaresan, Chief General Manager, SEBI
Shri Sandip Ghose, Director, NISM
Dr. Amitabh De, Director, IIM, Shillong
Shri Amarnath, Chief General Manager, RBI
CAFRAL - Program on Transfer Pricing in Banks
....The objective of the program is to provide conceptual clarity and practical insights on Transfer Pricing methods and its linkage to strategy and risk management......
Launch of Rs 10 plastic currency notes by RBI delayed: report
The Reserve Bank of India's plan to put in circulation Rs.10 plastic currency notes on trial basis will be delayed as the initial bids have failed to qualify the technical criteria and the whole process will start again, according to a functionary of the apex bank. "The selected bidders failed in meeting the technical specifications of the plastic banknotes in Rs. 10 denomination that RBI is proposing to introduce on a trial basis, necessitating undertaking the exercise afresh, thereby delaying the process," the senior RBI functionary said..........
Mere possession of a forged note is not punishable
The problem with having a fake currency note is that not only is it mostly unusable, there is also a threat of punishment. The Reserve Bank of India (RBI) states on its website that even though mere possession of a forged note does not attract punishment, holding a note knowing that it is a fake and then intending to use is it as a genuine note is indeed punishable under section 489C of the Indian Penal Code, 1860 '...........
Electronic Payments in Retail: Are we moving from Cash to Less-‐Cash Society?
....In order to have large-scale proliferation of electronic payments system, the retail payment infrastructure or ecosystem has to be inclusive. There is no business case of dedicated eco system separate for card payments at retail, BCs and other payments system like mobile/DTH recharges/Billpayments carried out at retail. Cash on the other hand needs to be discouraged. Currently cash from ATM is free (5 transactions of upto Rs 10,000 per transactions in a month) and Debit/Credit card use on PoS terminal costs the merchant MDR. It should be reversed to encourage electronic transactions......
IDBI Bank Elevates 6 Officials to EDs
State-run IDBI Bank has elevated six executives of chief general manager (CGM) rank to executive directors, three people with the knowledge of the matter said. These positions had fallen vacant due to retirements, transfers and elevations.
The executives promoted include............
Read - ET
The executives promoted include............
Read - ET
SBI signs up Reliance Money Infra as business correspondent
..........State Bank of India has signed up Reliance Money Infrastructure (RMIL), an Anil Ambani Group company, in a ‘business correspondent’ deal to source a range of banking services. The deal was concluded on February 25 but has been made effective with retrospective effect from October 5, 2013.............
RBI might not push bond index plan
............ RBI could be waiting for better macroeconomic stability domestically and a little more resilience in the financial markets before taking a step like this. This is because such a step might lead to more volatile bond flows into the country. RBI might not want this volatility as of now,” said Suyash Choudhary, head, fixed income, IDFC Mutual Fund.................
Deserving the honour
......The choice of Bandhan and IDFC by the RBI as the first two to be granted bank licences among the 26 which had applied, has surprised many. Among those still waiting are biggies such as the Aditya Birla Group, the Reliance ADA Group, the Bajaj Group, the Shriram Group, L&T Finance, Indiabulls and LIC Housing. Why these two? "A question the regulator had been grappling with was how to avoid creating replicas of existing private sector banks," says a person who has been close to the process. In the last two decades, the RBI has cautiously allowed a dozen new banks to emerge, but of the seven which have survived - and whose share of deposits and lending in the entire banking sector is around 15 per cent - most are indeed clones of the banks which already existed, offering the same services. Given their background, Bandhan and IDFC are expected to be different.......
When The Going Gets Tough, State-run Banks Get Going
.........To be sure, lenders selling pledged properties, or stocks are not new. But the fact that they are doing for some high-fliers and that they have got a strong backing from the RBI to do so is what is differentiating the current events from the past. Another stick that banks can now beat the erring promoters with is the power to throw out the management and bring in professionals to run troubled companies. Many of them are sceptical of this approach succeeding.............
Read - ET
Canara Bank to raise over Rs 500 cr via QIP route
....The bank had on Monday announced that it would consider rasing funds through the qualified institutional placement (QIP) route or through preferential allotment during the current financial year. The bank's board had also constituted a committee of directors to work on the modalities of the two options.....
When Gold Standard Had No Taker
When the British attempted an economic unification of this porous nation, they hit upon the idea of a single currency in a substantial part of the country which had territories under the British as well as princely states. The debate was to have a gold standard, or silver standard. If it were early 21st century, gold would have been a clear winner. But in 1835, it was not so because price of gold was falling rapidly due to discovery of new mines................
Tuesday, April 29, 2014
Dr KC Chakrabarty's post retirement cause for banking
.....Such is the multifaceted personality of Dr Chakrabarty, who never shirked his responsibility to the banking public, though there were several obstacles in his path to achieve his objectives. Now that he has laid down his office, here is wishing him all the best in the future. He had said in one of his speeches thus: “I see the tectonic shifts occurring in the banking space ahead. I cannot afford to rest. As they say, age wrinkles the body, quitting wrinkles the soul. So I can go on and on …..”
Rajan’s Job Safe If Modi Wins India Election, BJP Treasurer Says
..“Just because he’s been appointed by someone else doesn’t mean we have an agenda to remove him,” Goyal, a lawmaker who is on the standing committee on finance, said in New Delhi yesterday, referring to Rajan. “No government can dictate to the central bank. It’s an autonomous body and he holds a constitutional position. We don’t have any likes or dislikes.”.....
Fair & Stable Financial Services
.......The same is true of insurance where, too, the regulator does not seem to understand that keeping the faith of consumers must be a priority. As far as the Reserve Bank of India (RBI) is concerned, there is now an inclination to work at a comprehensive consumerprotection framework, but RBI still has no formal engagement with consumers. The top brass at the banking regulator believes that ........
RBI directs RTGS participants to use correct transaction code
..........."It has been brought to our notice that some of the RTGS participants are initiating Own Account Transfers (OAT) from RTGS settlement account to their current account maintained with RBI using the customer transaction code, using the TTC value '1000' allotted for customer transactions instead of '1800' allotted for OAT. "The usage of wrong TTC value for transaction in RTGS leads to unintended consequences," RBI said in a notification..............
Updation of pension and fresh option - United Forum's circular
.........The United Forum met new Deputy Governor, in-charge of Administration (Shri R.Gandhi) who was greeted by us; he assured that Bank would do its best to protect the interest of its staff and would not agree to any proposal / suggestion of the Government inimical to staff's interest...........
Size really doesn’t matter
Incidentally Sridhara was questioned by RBI in the context of forging currency notes. He was grilled for three hours in a dark room as they suspected him of forging the Governor's signature. RBI requested him to destroy the paintings but he refused........
RBI constitutes GAG to implement a national GIRO-based Indian Bill Payment System
..........The GAG has observed that bill payments landscape in the country are mostly biller-specific and thus do not provide an environment to customers to make bill payments through an inter operable system in a seamless and efficient manner at many of the agent / customer service points that exist today. These gaps..........
Global Growth Likely To Be Better Than Anticipated, But India Concerns Remain
“Global growth is likely to be better than anticipated, led by advanced economies, especially the US, while growth impulses are still relatively weak in the emerging market economies. In the US, of the two targets indicated by the Federal Reserve – inflation at 2 per cent and unemployment at 6.5 per cent – the unemployment target may be hit earlier, leading to wage pressures, and hence inflation. As a result, the Fed may raise interest rates earlier than is being anticipated. Some Members were of the view that global recovery may be weaker than expected..........
Recent RBI norms could result in a spurt in bad loans: Moody’s
The recent Reserve Bank of India (RBI) guidelines that restrict lending by banks to overseas units of Indian firms can lead to further bad loans, Moody’s Investors Services said on Monday..........
Rate hike cycle has come to an end: Ashima Goyal
Ashima Goyal, an external member of the Reserve bank of India’s technical advisory committee and professor of economics at the Indira Gandhi Institute for Development Research, Mumbai, discusses a range of issues............
BJP wants stronger Rupee, will that be good for the economy?
............Then, is the BJP -- assuming that it leads the next government - on a collision course with RBI? Unlikely. RBI would be happy to buy the inflow of dollars, buoyed by BJP's promises, to build its forex chest - a slice of which can be used when some of the hot money moves out. Naturally, there would be friction if the BJP, simply to prove a political point, deters RBI from buying dollar
Nagpur District Central Cooperative Bank may need Rs 22crore more in revival funds
..........At that time, it had been estimated that NDCCB would need Rs 60 crore for revival. However, a review of the books has shown that at least another Rs 22 crore would be needed. Now, the bank is waiting for the elections to end so that the code of conduct is lifted and a decision can be taken on the package. The last minute change in requirement has led to a fresh audit..........
Kapur successors not promoters: YES Bank
............ “Madhu Kapur being successor of Late Mr. Ashok Kapur, cannot be considered as Indian Partner or India Promoter and, accordingly, cannot inherit the rights under Articles of
Association or the status of Promoter of YES Bank.” ...................YES Bank's stance on Madhu Kapur dims hope for out-of-court settlement
.........."There is no scope for an out-of-court settlement now. Madhu is the legal heir of Ashok Kapur and as per the bank's articles of association inherits the rights of a co-promoter. She should be allowed to nominate directors on YES Bank's board. Unfortunately, the bank is not willing to recognise her rights and settle the dispute. So, she will wait for the court's verdict,"...........
Spadework on for new types of bonds
.............As for Sukuk bonds, popular in the Islamic world, Indian regulators haven’t approved these instruments as unlike the traditional debt products, these do not provide a fixed return. The so-called covered bonds are mortgage securities, backed by the issuing authority. Last year, National Housing Bank had created a working group to look into these. Headed by a Sebi executive director and with representatives from the Reserve Bank and the Union finance ministry, it has already given its report...................
Subscribe to:
Posts (Atom)