The PJ Nayak-led panel on governance of bank boards has recommended that public sector banks should be answerable only to the RBI, and not to both RBI and the Finance Ministry as is the case now. This would provide a level playing field for state-owned banks vis-à-vis their private sector counterparts, the panel said............
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, May 15, 2014
Nayak panel wants RBI to let banks decide when to go public
...In its report presented yesterday, the Nayak committee said three years is a short time to gauge whether a bank has the management skills to create a value proposition, while factors such as market interest in the stock and determining the future financial trajectory are also difficult. The committee said insistence on a three-year window for listing incentivises "poor governance" promoters to exit, while "good governance" promoters who want to grow a business slowly are disincentivised..........
PSU bank boards reasonably professional
...........In an interview to CNBC-TV18’s Latha Venkatesh and Sonia Shenoy, Chaudhuri said boards of PSU banks were reasonably professional as of now. On whether the recommendations of the PJ Nayak panel on governance of bank boards would be accepted, Chaudhuri said it would depend on the political leanings of the next government.
All govt banks violate Sebi listing norms: PJ Nayak
............In an interaction with Business Standard – his first after submitting the report to the Reserve bank of India on Wednesday – Nayak said there was an urgent need to remove the discriminatory external shackles so that they could compete fairly with their private sector peers, one of them being the dual regulation of public sector banks............
Critical vacancies in regulatory posts stare at the new govt
............Topping the list is the appointment of two deputy governors at the Reserve Bank of India. These will be the two successors to KC Chakrabarty and HR Khan. The deputy governors will, in turn, be members of the selection committees that will recruit public sector bank chairmen and executive directors. Around 12 such posts will come up till March 2015...........
The Manmohan decade
I was an employee of the RBI and Dr. Singh was the Governor for a brief period. In this role, he was simplicity personified, and anyone could meet him in his room. His car never sported a red beacon. He was always graceful and never harsh. It is unfortunate that he fell into the web of politics and became easy prey for politicians. He is free now but has retired hurt.
- S. Venugopalan, Chennai
The HinduForget firing, he is needed for fire fighting......
My View on "Far from sacking him, Raghuram Rajan is the man th...":
A well researched article. The penultimate para quoted here is significant. For those who may not read the full article, let me quote the concluding two paragraphs:
"However, there is one indisputable fact: far from thinking of replacing the RBI governor, the new government would do well to allow him the flexibility and freedom to keep a close watch on inflation so that any future reform measures do not lead to serious inflationary consequences.
Rajan knows this only too well, as he demonstrated last week when he said the government could fire him if it wanted but it was he as RBI governor who would set interest rates. A smart government will know that in this situation Rajan is one of the men the economy will depend on the most. Forget firing him, the government will need him for fire fighting. There are quite a few fires still to be fought."
- M.G.Warrier
‘Motivated’ Media discussion
My View on "Could RBI Governor Rajan Be Ousted By a New Govern...":
It is not the lack of RBI’s allegiance to legislative supremacy of the government of the day that made Dr Rajan assert his eagerness to protect the mandated role(in deciding monetary policy) of RBI. The assertion of ‘ownership rights’ by lower level functionaries of GOI over all public sector organisations including statutory bodies like RBI and their interference in the legitimate functioning of institutions even in HR issues deny the top managements of these institutions a level playing field with their counterparts elsewhere. There is no point in sidetracking the issue of ‘political interference’. Even the present ‘motivated’ media discussion on continuance of present incumbent as Governor, post-16 May serves perhaps only one purpose. It gives an opportunity to those who are not generally RBI-watchers and to those who are really serious about understanding the ‘equation’ between RBI Governor and the finance ministry to ponder deeper. Suffice to say that the debate may not affect the continuity at Mint Road or more specifically the broad policy perspectives of RBI.
- M.G.Warrier
RBL Bank appoints Rama Bijapurkar as independent director
............."Rama is well recognised as one of India's most respected thought leaders on market strategy...As we have embarked on an aggressive growth path with a keen eye on our consumer business, we look forward to her deep insights to aid our board decisions in achieving these goals," Vishwavir Ahuja, managing director and chief executive officer of RBL Bank, said in a statement................
May 16 holiday plea
.......This must be one of the most unusual requests the Election Commission has received. A traders' body has asked the Commission to declare May 16 a national holiday so that people can watch live updates of the election results without the interruption of office work..........
Painting for a cause
My Multi Talented Daughter Ms Priya Kumar has started painting for a cause. Proceeds of sales will go for Under Privileged Children. Will you like to join hands with her by buying/promoting?
With Regards,
Mrs.Sona Kumar, Ex-AM, Insp.Dept. Mumbai
(Ex-RBITES)
+9198201 95874
Sona Sarovar Trust - What began with just a bowl of water, is now a full fledged initiative to aid the underprivileged. Join hands to add your share of goodness to the world. To know more, click here
Otta kaal anna finds pride of place here
..........He sells ‘otta kaal anna’ (coin with a hole in the centre), ‘oru anna’ (one anna), and five and ten paise coins, among others. Students, cinema production teams and coin collectors frequently approach him for purchasing the coins. “When I worked in a shop earlier, I would keep aside coins of different shapes. My interest in coins began then,” he says. The coins are priced according to their value, ranging between Rs. 3 and Rs. 1,000. He goes to various districts and States to collect the coins. “Most coins are found on river beds as there used to be a practice of dropping coins while bathing. I have found many coins in Thanjavur, Karaikudi, Mumbai and Kolkata,”.........
India Post to re-apply under new guidelines: Fin Min
......"India Post was not considered under these guidelines due to the special nature of India Post," the finance ministry said. It said that on the issue of capitalisation of India Post no view has been taken by the finance ministry nor has the communication been sent to RBI.........
FM to meet financial advisors today
.............As he is likely to resign on May 17 to make way for the next finance minister, the exercise would not have much repercussion. The new government might take a fresh look at the Budget Estimates (BE) for 2014-15 in the Budget to be presented in late June or early July...............
Show me real money
..............Money is something we use to purchase something we want. It is issued and guaranteed by the government and the central bank (the RBI in our country). But what happens when unscrupulous people, for their own greed, produce money that is not real or issued by the government or RBI? Does it still hold the same value? Counterfeit money or fake currency is illegitimate currency and its actual value is much lower. Printing or even possessing fake currency notes is a punishable offence. So not only does it decrease the real value of money, but it also creates a situation where people are reluctant to accept currency of higher denominations. Even though, counterfeit money is being printed in large quantities, there are ways you can identify fake notes. .............
Ponzi schemes out
This refers to the editorial "Probing Saradha" (May 13). If we have to plug the regulatory gaps in deposit schemes, we may consider vesting all residual responsibilities with the Reserve Bank of India (RBI) that has the capacity to punish the wrongdoers. RBI can also have district-level sub offices where anybody can go to seek clarifications about such schemes. ........
Why is SBI going easy on Kingfisher?
.....On Wednesday, DNA reported how officials from the Central Bureau of Investigation had to return empty-handed when it asked the country’s largest bank for details regarding loans given to the now-grounded Kingfisher Airlines . Sources told the newspaper SBI did not cooperate with officials from the investigative agency and reportedly said that “there was no fraud involved [in the Kingfisher case] and that it was simply a case of business failure”.
RBI forbearance for three Andhra Pradesh MFIs
.......“We tried for a second round of restructuring. Since it was not approved by the RBI, we struck a deal with the banks for an alternative arrangement. Initially, it was difficult to convince some of the public sector banks in the consortium for additional funding. However, based on good portfolio performance of Share outside Andhra Pradesh, and long term plans on merger of Share and Asmitha, banks finally agreed to lend us,”...............
Bandhan appoints Deloitte as management consultant
Leading micro finance institution Bandhan Financial Services, which has obtained banking licence from the Reserve Bank of India (RBI) in April, on Wednesday appointed Deloitte as its management consultant............
Wednesday, May 14, 2014
Indian banking at crossroads - challenge of risk management from globalisation to financial inclusion : R.Gandhi
Valedictory address by Mr R Gandhi, Deputy Governor of the Reserve Bank of India, on the occasion of Seminar on Banking, organized by the Indian Merchant's Chamber, Mumbai, 8 May 2014
....... The Reserve Bank too has adopted a proactive and calibrated approach towards demanding and facilitating robust risk management efforts by the banks. Reserve Bank has been adopting a considered approach of limiting the systemic risk originating from both the pro-cyclicality as well as interconnectedness dimensions. For example, countercyclical measures were adopted as early as 2004 to stall heating up of certain specific sectors by increasing the risk weights and provisioning ratios for sensitive sectors such as capital market, housing, commercial real estate during the period when the boom was building up. Several measures were taken to reduce the inter-connectedness among banks on the one hand and between banks and NBFCs on the other, to address the cross-sectional dimension of systemic risk and regulatory limits have been placed on exposures to capital market exposures. Such.........
Read.........
50% Indians Without Bank Accounts Represents a Revolution of Demand: Dr Deepali Pant Joshi, RBI
.....“Fifty percent Indians still don’t have a bank account. How do you allow this 50% to be part of the economy? You thus have a revolution of demand. How will you ensure that they can avail of banking services? How will you use technology to reach out to them and at the same time give a better and more user friendly experience - that is the biggest challenge and opportunity facing the Indian banking industry,” said Dr Deepali Pant Joshi, Executive Director, Reserve Bank of India (RBI)...........
Read.........
RBI goes to school to spread financial literacy
.............RBI's Assistant General Manager Shailaja Singh highlighted the importance of passwords for online transactions and said passwords must be kept confidential. "People should not 'pass the (pass) word'," she said and added customers, instead of making verbal complaints about the deficiency of services of any bank, should write the complaint, get it duplicated, submit the same to the bank authorities concerned and get it 'received' on the duplicate. This documented proof of complaint would enable them to approach the RBI later, if need be. In his address, RBI's Bihar-Jharkhand Regional Director M K Verma dealt with a plethora of topics, including the recent RBI move to allow minors above the age of 10 years to open and operate savings bank accounts independently, if they so desired...............
Canara Bank launches credit scoring model to finance SMEs
.........The eligibility is decided based upon aggregate scores secured by the loan applicant on various parameters prescribed under behavioural, management, business and financial aspects. The model was launched here yesterday by Executive Director, Reserve Bank of India (RBI), Deepali Pant Joshi.
The Economist who can rescue India
Will high inflation, low IIP set the stage for a clash between RBI and BJP-led govt?
........Does that suggest any softening of the Reserve Bank of India’s stance on interest rates? Probably not. With the monsoon expected largely to be below normal as a result of El Nino (a global weather phenomenon that causes floods and droughts), it’s unlikely that RBI governor Raghuram Rajan will be in any position to cut interest rates..........
Read...........
Read...........
After the victory, avoid pitfalls
.............So what should the Modi regime focus on to improve governance? One way to address this question would be to list what the new government should avoid doing. There are three clear decisions that it should not contemplate in the current situation. In spite of some provocations from sections within the BJP, it should avoid tinkering with the functioning of the Reserve Bank of India (RBI). Maintaining the apex bank's functional autonomy should be as important as allowing the current governor to remain focused on the job to manage the supervision of monetary policy and banking regulation. In other words, there is no need to change the RBI governor............
Far from sacking him, Raghuram Rajan is the man the new govt will need the most
.....However, there is one indisputable fact: far from thinking of replacing the RBI governor, the new government would do well to allow him the flexibility and freedom to keep a close watch on inflation so that any future reform measures do not lead to serious inflationary consequences.
Could RBI Governor Rajan Be Ousted By a New Government?
As India appears to be on the threshold of political change, some economists, executives and investors are wondering whether a new government would dare to try to push out the country’s hawkish central bank governor Raghuram Rajan. The Reserve Bank of India governor is appointed by the government, and can technically be fired by the government as well......
Rajan Keeps Fingers Crossed Amid Change of Guard in Delhi
...........That was Rajan’s way of sending a message that he is no pushover to some sceptics who reckon that he may have a tough time ahead when a new political formation comes to power in Delhi next week. But the RBI governor, who has earned praise both at home and abroad for his handling of external sector management and approach towards cleaning up the mess in the banking sector, could well be up against one of his biggest challenges soon. A change in guard in Delhi and with it a new approach towards economic policy management could trigger a review of the current stance on monetary policy with its singular focus on inflation control. ...........
Read - ET
Needless controversy
.......... No other finance minister has needled and harassed successive RBI governors as much as Chidambaram did in order to impose his own arbitrary will on the central bank. Even when the new government is yet to be constituted, a media- driven controversy on the fate of Rajan, in which the outgoing finance minister needlessly waded in, could unnecessarily sour relations between the RBI Governor and the new boss in the finance ministry. Regardless, ...........
A wait and watch policy expected from RBI next month
In a struggle between growth and inflation, the Reserve Bank of India (RBI) may decide to maintain a status quo in key policy rates on June 3. According to experts though Consumer Price Index (CPI) linked inflation has risen once again in April, but there has not been significant uptick in core inflation. Besides that the fiscal stance of the soon to be formed new government will be a key driver before making any changes in the policy stance by RBI......
Nayak report calls for single bank licensing regime
........"It would be desirable for the bank licensing regime to move to a uniform license across all broad-based banks, irrespective of ownership, subject to inter-jurisdictional reciprocity considerations in respect of foreign banks, and niche licenses for banks with more narrowly defined businesses,"............
A window of opportunity
.......Reserve Bank of India (RBI) Governor Raghuram Rajan has been a consistent advocate of floating exchange rates and this may come in the way of his willingness to buy up dollars, thereby preventing the rupee from discovering its true value. However, this is not a position that should be cast in stone, particularly when the issue is viewed in the broader context of financial stability. While........
RBI panel for diluting govt stake in public sector banks to below 50 %
............The panel, headed by ex-Chairman of Axis Bank, P. J. Nayak, said governance at the 26 public sector banks (PSBs) suffered due to several ‘externally imposed constraints’ like dual regulation by the RBI and the Finance Ministry, and external vigilance by agencies such as the CVC and CAG, among others. “If the government stake in these banks were to reduce to less than 50 per cent, together with certain other executive measures, all these external constraints would disappear,” the report says............
Chidambaram chairs tenth meeting of Financial Stability and Development Council
.................he Council took stock of the Indian economy and deliberated on domestic and global growth scenario, fiscal, monetary and external sector, foreign capital flows, inflation, developments in financial markets, as also the outlook and challenges facing the economy.
The Council also discussed the detailed assessment of ...........
Even bank fixed deposits have variants
.....The first thing to remember is that most FDs are tax inefficient. If you are in the 30.9% income tax bracket, an 8.50% annual return from an FD gets reduced to a net return of 5.87%. For 20.6% tax bracket, net return will be 6.75%, and 7.62% for those in the 10.3% bracket. Opt for an FD only if you are in the lowest tax bracket or have no tax liability..........
Cash crunch at SBI ATMs
..........ATM services of India’s largest public sector bank are hit across Jharkhand and Bihar wherever SIS Services Private Limited, a leading cash-in-transit (CIT) or money-ferrying company, services them, as the company struck work five days ago in the two states over a dues-related row. According to SIS officials, cash management major National Cash Register (NCR), which outsourced them the job in Jharkhand and Bihar, stopped paying them since October 2013................
Switch to Digi-money Will Mean More Transparency
...........Competition between e-money payment system and internet based transactions using bank accounts may benefit consumers. The mobile payment system may become the ‘rails’ for product distribution by financial intermediaries. Business model for MNOs would develop around products pushed through the e-money-paymentsystem and ownership of patterns of financial behavior in the e-money economy. MNOs in their existing legal form could be licensed as ‘domestic money exchanges’ and as ‘payment operators’, which may require multiple regulators, but one for each function --RBI and Trai.............
Read - ET
Consolidated fund of Telangana a/c opened
............With Governor’s approval, Secretary, Finance, went to Mumbai on Tuesday to sign an agreement with the RBI and open an account for Telangana State which will become operational from June 2. According to the Andhra Pradesh Reorganisation Bill-2014, the cash balance and credit balance of the existing State of Andhra Pradesh will be divided between the two successor States on the basis of population ratio. This apportioning will be carried out by adjusting the credit balances for the two States in RBI books........
Madhu Kapur accuses Rana Kapoor of misusing his post at YES Bank
..........."Mr Rana Kapoor is misusing his position as managing director of the bank. The resources of the bank are being used by Mr Rana Kapoor to directly and indirectly deny us our rights, including by using the bank and independent directors as a front to raise untenable preliminary objections...In view of the above, you are requested to give no approval to the appointment of any person as chairman or managing director of the bank, unless it is jointly recommended by Mr Rana Kapoor and is according to the articles of association," Madhu Kapur and her children wrote in a letter addressed to one of the RBI deputy governors..............
Tuesday, May 13, 2014
Take RBI Into Confidence and build the economy strong - Dr.T.V.Gopalakrishnan
Read.......
Music, Yes, but High-Pitched
My View on "A Modi Victory may Not be Music to Rajan’s Ears":
This refers to ‘A Modi Victory may Not be Music to Rajan’s Ears’ (ET, May 12). Let us see how Raghuram Rajan manages “surging inflows”, if that really happens. The figures of external debt and forex reserves quoted in the report do not lead one to assume a crisis. After all, the richest country has a debt of around $16 trillion, and its “reserves”, whatever the level, did not save that country from problems in recent years. No central bank can insulate itself from problems. What the world will be interested in knowing is how best the problems are tackled.
- M.G.Warrier
Published in ET
Published in ET
No More Salsa?
So, has he done all his reading, travelling and salsa dancing? Otherwise, why opt for the dry world of consulting. Ex-RBI guv D Subbarao, who had famously said in 2013 that he'll spend time with books, travel and dancing lessons, is taking up an assignment with the Boston Consulting Group. ET hears RBI has already given its go ahead. Subbarao can take tips from one of RBI's deputy guvs, Urijit Patel, who was a BCG man before he discovered the joys of central banking.
Conned Indian Financial Consumer
.....Who better to endorse this than Dr KC Chakrabarty, the former deputy governor, who never failed to say that it took years to implement even obvious decisions in India? Personally, I see the 6th and 7th May directives as a signal that Dr Rajan is beginning to take a hard look at how customers are treated. RBI is focused on financial inclusion, but without a clear consumer protection framework which spells out accountability and punishment. As a result, every effort to bring in new customers will only lead to more disenchantment.
Cricket credit card by Ratnakar Bank
........This is an innovative and special credit card with many exciting features. Those who will avail this card will get the chance to get the IPL passes of the match featuring Delhi Daredevils. This platinum card with lot more features. Customer will also get the facility of gift vouchers, redemption of points collected on each purchase.........
Obituary
Shri C.JAYACHANDRAN (89 YEARS), Retd. Exchange Control Officer, RBI, Chennai passed away on May 11, 2014. He was an active Office Bearer of the erstwhile Reserve Bank Retired Officers Association. His son Sri J.Balaji is a serving employee of the Bank and residing at PH Road Qrs.
Address:
C/O. Sri J.Ravinder, 880/1, 11th Street, Syndicate Bank Colony, Anna Nagar West Extn. Chennai 600101
We convey our heartfelt condolences to the bereaved family and pray for his soul to rest in peace.
|
New currency notes
The Reserve Bank of India will soon issue currency notes in the denomination of Rs. 20 and Rs. 1,000, incorporating the rupee symbol on the obverse and reverse sides without inset letter in both numbering panels in the Mahatma Gandhi series-2005. The new notes will bear RBI Governor Raghuram G. Rajan’s signature. Also, on the reverse, the year of printing ‘2014’ will be marked,....
High interest among foreign investors: Shikha Sharma
.......Answering a question on banking sector reforms, Ms. Sharma lauded RBI’s efforts on appointment of committee on bank governance, while she said RBI’s focus on quality of reporting by banks and data sharing to handle the credit quality issues, among others were all good steps in the right direction.
Regulation Should Prevail Over Ownership at Govt Banks: RBI
....According to the RBI, the regulator, and not the government, should decide the fate of a financial institution. Since “regulation has to be ownership neutral”, whatever rules apply to private banks should apply also to public sector banks, it said. Since the government has a say in the appointment of the board members of a bank, corporate governance practices vary between public sector and private banks, despite both being regulated by the RBI......
Read - ET
Indian banks can offer structured derivatives abroad without RBI permission
......“Banks should ensure that their foreign branches/subsidiaries, dealing with such products in foreign jurisdictions, have adequate knowledge, understanding, and risk management capability for handling such products. At other centers, banks may offer only those products that are specifically permitted in India,” .....
RBI may allow credit enhancement to support infrastructure bonds
....“The whole idea of a corporate bond market is to diversify risks from the banking system. But, in India, we make banks investors in corporate bonds perhaps to the same extent in which they have their loan exposures,” ........
RBI says corporates should voluntarily access bond market
The Reserve Bank of India (RBI) believes that corporates should voluntarily access the bond market for meeting their financial needs as this would lead to development of the market. “The corporates should voluntarily accessing the bond market for part of their own financial needs,” said Chandan Sinha, Executive Director, RBI at an event organised by Confederation of Indian Industry......
The phenomenon called ‘female financial paradox’
Women are a growing economic force and expected to add about $6 trillion in earned income globally over next five years according to the research by the Boston Consulting Group. Yet many women lag behind men when it comes to using those assets to plan and build financial security. This phenomenon is termed as “the female financial paradox”........
Rana Kapoor should not be allowed another term as YES Bank CEO: Madhu Kapur tells RBI
..."...you are requested to give no approval to the appointment of any person as chairman and managing director of the bank unless it is jointly recommended by Rana Kapoor and us (successors of late Ashok Kapur) as per the Articles of Association," said a letter dated May 9, addressed to the RBI deputy governor. The letter was jointly signed by Madhu Kapur, her daughter Shagun Kapur Gogia and son Gaurav Kapur.
ATM frauds on rise, Police nab two youth from Mango
....Another police officer added that it was indeed a pity that the leading banks, instead of being a role model to other banks in the district, was careless in adhering to security norms laid down by the RBI. It was only after the heist, the bank was now contemplating to put security systems in some places.......
PF denial costs bank 3 lakh
.....In his appeal, the complainant said that he was an employee of the bank and his services were terminated. His provident fund as far as his contribution was concerned was given by the bank, but it was delayed. The officials refused to disburse the contribution of the bank towards his provident fund. Unnikrishnan filed a complaint for interest on the amount which was given late by the bank. .........
Now, get info on farm tech
In a bid to create awareness on farming techniques and to increase productivity, the Karimnagar District Cooperative Central Bank (DCCB) on Sunday launched Farmers Development Centre, a first-of-its-kind initiative in the country. The FDC, launched in association with Nabard and e-fresh portal, would enlighten farmers about the latest farming technology and methods for increasing yield..........
Monday, May 12, 2014
Governor’s freedom
Read - Mint
I am the boss, fire me if you want: Raghuram Rajan
......“I determine the monetary policy. I say what it is. The government can fire me, but the government doesn’t set the monetary policy. So, in that sense, am I independent! Well, I am happy to talk to the government. I am happy to listen to the government but ultimately the interest rate that is set is set by me,” ........
Raghuram Rajan stresses independence from govt
...........“The key question is what kind of equation do you have with the government? I determine monetary policy, I say what it is,” ............
Why a Raghuram Rajan-Modi team can be good news for India
One is amused and yet troubled by the recent media discussion on the non-issue of whether Raghuram Rajan will continue as RBI Governor in case a Narendra Modi government takes over. This is a non-issue because whether we look at the matter from Modi's point of view or Rajan's. Their staying together is such an obvious win-win outcome that it is a no-brainer. Indeed,the two are made for each other and the country badly needs both of them.
Read more at: Read......
A Modi Victory may Not be Music to Rajan’s Ears
....Surging inflows could create twin problems for Rajan – appreciation of the Indian rupee which could erode the country’s competitiveness in international markets and a slowing down of exports. If he buys up the dollar flows, he would release rupees into the system and that could aggravate an already elevated inflation. So, damned if he does, and damned if he doesn’t. However, some experts said this wouldn’t be a problem but an opportunity.......
Rajan has failed, will have to go, says Swamy
...... “If Rajan gets one more term you can safely say bye to all investment and therefore high growth in this country … he’s from [University of] Chicago so he is not fit for this country … there they believe that more free market the better but in India market failures take place and you’ve got to correct for that.” “We need to immediately drop interest rates … doesn’t mean that we do it in one go … there can be a road map but businesses must know that cost of capital will come down.”.......
Filing tax returns? Give more details this year
.....Many employees get house rent allowance (HRA), leave travel assistance (LTA) and travel allowance as part of their salaries. These allowances are exempt if certain conditions are met. Till now, the taxman had no issues if you mentioned a consolidated figure in your return, but now he wants to know how much you received under different heads. “You will have to separately mention the figures for, say, HRA and LTA,”......
Read - ET
Currencies, Counterfeits and Confidence
..........By that norm India is still far from facing problems. The RBI’s currency department, through the bank’s spokesperson, says firmly: “The security features in genuine Indian banknotes have not been breached.” A directive to withdraw by March 2014 (later extended to January 2015) all pre-2005 notes stirred rumours it was meant to tackle counterfeiting, but the RBI says it was simply a regular process: “Earlier we withdrew older series banknotes in a passive manner where the banks were instructed not to re-issue such notes and send back those notes to RBI for disposal,” says the spokesperson. In the past few years banks were told to do this for all notes of 100 and above printed prior to 2005. “In the current withdrawal plan we have involved the public also,” says the spokesperson. ...........
Read - ET
Know a forgery to catch one
.......Fake notes have no value. When you give them to the bank, they get impounded and you get nothing in return. So before accepting notes, especially high value ones, verify their genuineness by checking at least three or four features. The website www.paisaboltahai.rbi.org.in has all the details about identifying fake notes of various denominations............
The rupee, the dollar and election results
.....Its precipitous fall at one stage, in September, amidst mounting current account deficit (CAD) threatened macro-economic stability. As is well known, the deft measures undertaken by the government and the Reserve Bank of India (RBI) helped in stabilising the rupee. The regaining of overseas investors’ confidence is material to any discussion on the financial markets. More visible than any other financial market, the stock market has been reflecting the overseas investors’ confidence......
NPA also refers to non performing administration: K C Chakrabarty
........“The issue of NPAs is due to Non Performing Administration. Discipline is required for everybody, even bankers and borrowers also. If we don’t resolve the issue of NPA quickly then it will be a big problem. Action should be taken against borrowers who do not cooperate”.........
QNB Group: India’s economy is on the mend
.......The centerpiece of policy actions was the tightening of monetary policy since last July, with the Reserve Bank of India (RBI) draining liquidity from the banking system, limiting access to borrowing from its discount windows and hiking short-term interest rates. In addition, limits on foreign investments and external commercial borrowing in foreign currency were eased in order to allow more capital inflows. Moreover,..............
Banking Law and Practice in India
.........he Reserve Bank’s efforts to trigger the country’s growth has necessitated rewriting, enlarging, amending, substituting several new facts and chapters to update the original book to keep pace with the needs of the emerging economy. Electronic Banking, Cyber crimes have led to amendments in the Indian Evidence Act and Srinivasan has added a new Chapter on “ Bankers’ Book Evidence Act.” The new Sarfaesi Act, the Recovery of Debts to Banks and Financial Institutions Act, 1993 have been dealt with at considerable length and the readers provided with up- to- date case- laws and interpretations furnished of these dynamic subjects.........
Read - Book Review by P.P.Ramachandran
Subscribe to:
Posts (Atom)