...........While the nature of ties between North Block and Mint Road have tended to fluctuate, the statements by Jaitley and Rajan signal a relationship that may be cordial rather than frosty as had been speculated...............
Read - ET
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.
Wednesday, May 28, 2014
Rajan meets Jaitley; discusses inflation, economy
.....The meeting, which comes just days before the next bi-monthly monetary policy review on June 3, lasted for about 50 minutes. “It (curbing inflation) is absolutely a task that the government and the RBI are engaged with,” Mr. Rajan told reporters after the meeting.........
RBI’s goal is to balance growth, inflation: Rajan
.............“It’s absolutely a task that the government and the RBI are engaged with,” Rajan said when asked if curbing inflation was going to be one of the biggest tasks for the government and the RBI. But Rajan also added: “RBI has always maintained the balance between growth and inflation.”.............
Arun Jaitley's job: Unleash animal spirits
...He has consistently raised doubts about the health of the economy during his stint in the opposition. A shrewd lawyer, he is at home with numbers as well as the policy maze. "He is a first-rate choice. The challenges are multiple. In a country like India, the finance minister's job has several challenges. Preparatory work for the next Budget will be a difficult task," said former RBI governor Bimal Jalan.........
Workshop on Audit of Urban Cooperative Banks
Technical Session I-9:45 a.m. to 11:15 a.m
What RBI expects from Auditors/CAs of UCBs in their Audits?
By: Mr.A.K. Bera, Principal CGM, UBD-RBI
CHANGE IS POSSIBLE…
My View on "India needs Many More Raghuram Rajans":
We need to follow ‘WE THE PEOPLE’ Ref: Preamble of India’s CONSTITUTION) AND BE PRACTICAL AND PRAGMATIC. We should, as a beginning has been made in this article, think beyond sectoral and ‘political’ interests. Let us understand the INCLUSIVE SECTOR comprising public sector, privat sector and the one billion Indians who were given denominations and classifications so far. Modi, Raghuram Rajan, Kejriwal, Medha Patkar, APJ Abdul Kalam, Bimal Jalan, Nehru, Gandhi, Lal Bahadur Shastri, Bajpayee, Sreedharan…the list can go on and on…all have/had dreams about INDIA…The recent awakening has shown that CHANGE IS POSSIBLE…
- M.G.Warrier
N(on)R(esident)I(nterest).....
My View on "Why bank depositors deserve tax-free interest":
A sound well analysed commentary on the wrong policy of GOI. While an ordinary Resident Indian is taxed on his hard earned savings post tax on his gross income minus rebates allowed, a Non Resident Indian is enjoying tax free interest of 9% and plus! The NRE deposits have more than trebled since the NRE deposits started earning tax free interest at or more than domestic rate of interest. What an irony of fate of not being an NRI! All investments in bank deposits, stock market etc. should get the same equal treatment in regard to taxation. The article deserves due consideration by the new Government by the new FM, the MOF while presenting this year's budget proposals.The middle class and the lower middle class Resident Indians would always like to put their money in banks as majority lost money invested in the market or MFs during last 4-5 years.
- R.G.Nakhate
Sketching the Genetic Code of A Good Bank Is Tough
..... All this can originate from a robust “genetic structure“
based on the strands of DNA that combine together. The most recent
guidelines on bank licences did touch upon this. So, can we sketch the
genetic code of a “good bank“ ?
The genome of a commercial bank should start with the lineage. We are
talking here of lineage of ideas. Ideas flow from experience,
environment and understanding of the changing face of consumer..............
Expect CAD to be in control in FY15 as well: C Rangarajan
............The next key cue for the market would be Reserve Bank of India (RBI) bi-monthly monetary policy review on June 3. In an interview to CNBC-TV18, Rangarajan said that interest rate actions will largely depend on inflation trajectory. “Only when inflation cools down, monetary authorties take a call on rates,”
Run up to monetary policy: Hawkish stance to weaken rupee
...Today RBI governor Raghuram Rajan said in New Delhi that fighting inflation would continue to be a top priority for the central bank. However, he is also added RBI will aim to strike a balance between growth and inflation......
Reserve Bank of India asks banks to remit unclaimed deposits to DEAF by June 30
.............Banks should calculate the cumulative balances in all such accounts with unclaimed deposits, along with interest accrued till May 23, 2014, and transfer them to the newly created fund, the Reserve Bank of India (RBI) said in a communication to bank chiefs. After the first transfer of amounts, banks should transfer amounts becoming due in each calendar month on the last working day of the subsequent month.
A new deal for public sector banks?
.....It is difficult to guess just how the new government will receive the Nayak recommendations on how PSBs and private banks should be run. The committee finds considerable faults and weaknesses in bank board governance -- faults and constraints that impede the functioning of banks in an era of fierce competition, premium on profitability and high risk. The starting point for the committee is to identify those constraints on public sector banks which their private counterparts don’t have. “These constraints encompass dual regulation (by the finance ministry, and by the RBI, which goes substantially beyond the discharge of a principal shareholder function)…”
Open ‘small accounts’ sans required documents, RBI tells banks
............In a bid to increase access to banking services, the RBI has advised banks to open ‘small accounts’ even without asking for the mandatory documents. RBI Deputy Governor R Gandhi said recently that a small account can be opened by merely filling up a form, signing it before a bank officer, and submitting a self-attested photograph certified by the bank officer. At present, over 50 per cent of Indians have no access to formal banking channels...............
When Minting Rs 1 Coins Was Cheaper
..........RBI deputy governor RK Seshadri took up the matter with the government,
and later governor S Jagannathan followed it up with finance minister YB
Chavan and advocated a change-over from one-rupee notes to one-rupee
coins. RBI had decided to do this shift in a phased manner because of two reasons. One,
RBI was not too sure how the general public would take the change and,
second, it was worried about the cost of destroying the spoiled notes.
At a result,...........
Fake currency racket linkman arrested
...."The seizures also showed that currently the highest number of counterfeit notes was found in Rs 100 notes, followed by Rs 500. According to RBI norms, if 15 fake currency notes are found in every 10 lakh notes of of Rs 100 denomination, the situation is alarming," ........
P J Nayak report implementation can improve ratings of public sector banks, says Fitch Ratings
....."Should the (PJ Nayak report) recommendation lead to a greater separation between the state and bank, it could necessitate a reassessment of our current assumptions on the propensity for extraordinary support for these banks. This has been an important factor underpinning the capitalisation of many PSUs, as this reassessment could have a potential impact on their issuer default ratings," Fitch said in a note.
RBI cancels registration certificate of 3 Kolkata based NBFCs
The Reserve Bank of India has cancelled certificate of registration of three Kolkata based non-banking financial companies (NBFCs) as they were carrying on business of non-banking financial institution (NBFIs)..............
Read more at: ET
Rate cut: RBI may not oblige
........ the support of the Reserve Bank of India (RBI) will be sought to complement its growth agenda by relaxing the tight policy stance. The central bank is unlikely to oblige. We expect RBI will keep the benchmark repo rate unchanged at 8% at the early-June review. Not for nothing will RBI Governor Raghuram Rajan stand his ground and assert institutional independence............
SIT to go after black money
...........“The SIT will have high-profile government officials like Revenue Secretary, Deputy Governor of Reserve Bank of India, Director of Intelligence Bureau, Director of Enforcement Directorate, Director, Central Bureau of Investigation, Research and Analysis Wing chief, Director-General of Revenue Intelligence, Chairman of the Central Board of Direct Taxes and Director of Financial Intelligence.” He said the constitution of the SIT indicated the commitment of the government to pursue the issue of black money in right earnest.............
Banks, ATMs Yet to be Disabled Friendly despite RBI Direction
...Total 70 ATMs and cash deposit machines and kiosks of 18 commercial banks are functioning in the district. While the ‘normal’ customers take benefit of the services, the customers with physical disabilities continue to suffer.........
Debit card transactions recover after brief slump
............But transactions recovered to Rs 3,835 crore in January 2014 and Rs 7,435 crore in February. But this was still below the November 2013 figure. The data of March and April is yet to come out. Bankers say there are indications that it would have surely grown beyond the November level. Many say the bigger issue is of increasing usage of debit card at the ATMs where the transactions are negligible at merchant outlets. Today, the value of debit card transactions at merchant outlets is less than five per cent of the total transactions that takes place every year. People use debit card more often for cash withdrwal through ATMs................
Smaller private banks to opt for white-label ATM to reduce cost
.....Despite the fact that the Reserve Bank of India had given an in-principle approval to WLAs in mid-2013, the roll out of these ATMs have been in the slow lane so far. Bankers explain that even though it brings down the cost of setting up the ATM, the banks haven’t taken up the option as ATMs are also a vehicle to rebrand and increase visibility which gets lost with these independent ATMs......
FIMBank plans to infuse $100 mn in India Factoring
...... "Now, there is much more we can think of doing in India, such as pre-export finance and financing for commodities. Being in trade finance, we will look at a specialised banking licence in India. The Reserve Bank of India has spoken about a differentiated licensing regime in India," Emmenegger said. For FIMBank, a specialised banking license (for trade) would be viable, as it would allow acceptance of deposits, make funding attractive and offer cheaper rates to small and medium enterprises (SMEs), she added. If all went according to plan, IFFSL will need $100 million of equity in the next five years, she said.......
Now, get your money rounded off to the nearest rupee
....."In order to obviate unnecessary discomfort to the public and also to align with the prevalent practice as applicable to banks, NBFCs are advised that all transactions, including payment of interest on deposits/ charging of interest on advances, should be rounded off to the nearest rupee," RBI said in a notification................
SEBI finds large-scale violations of norms in some MF schemes
........SEBI found that many schemes have been repeatedly breaching these norms, especially during the course of a quarter. Some investors put large amount of money in a scheme and withdraw the same at a later stage to meet quarter-end norms, while many schemes were non-compliant on full quarter basis as well. ..........
Read - Deccan Chronicle
RBI asks Kotak Bank to reduce promoter stake to 40% by Sept
....“The bank has received a communication from the RBI to bring down its promoter shareholding to 40% by September 30, 2014 as per estimates provided by the Bank. The next estimate is 30% by December 31, 2016,” the bank said. At present, promoter shareholding is 43.58%.......
Exports should be an engine to create jobs: Exim Bank
.....Institutions such as Exim Bank, National Housing Bank, SIDBI and Nabard are DFIs. So, they have to be dealt with in a way that they deliver on developmental banking. Without accessing the financial markets they cannot operate. The policy must be aligned suitably for DFIs to raise capital. Currently, we are able to raise 10-11 times of our net owned funds. If we need to deliver on a larger mandate, then the Government and the RBI should make suitable adjustments either in our leverage ratio or in equity infusions. If there is suitable relaxation in the leverage ratio, then we can support more project exports from the country...........
RBI Okays Rana Kapoor's Reappointment at Yes Bank
.......“The members of the bank take on record the approval accorded by the Reserve Bank of India, and approve the appointment of Mr Rana Kapoor as the managing director and chief executive officer of the bank for a period of up to August 31, 2015,“ said a resolution sent in a letter to the shareholders for the tenth annual general meeting. For Kapoor and the bank, it must be a relief that the regulator has approved the proposal despite Madhu Kapur, the second largest promoter of the bank, requesting the regulator not to okay such a plan............
Read - ET
Tuesday, May 27, 2014
India needs Many More Raghuram Rajans
Read - ET
Raghuram Rajan loses his 'comfort' factor
....."The RBI is an autonomous body with full freedom to set interest rates in consultation with the government," say experts. But not much is not about the new economist who will be part of the Modi's team in the Planning Commission and Economic Advisory committees. Two names often doing the rounds are economists Jagdish Bhagwati and Arvind Panagariya , who have hailed the Gujarat model in the past. In fact , there was no dearth of advice for Subbarao during his stressful years in the RBI. Economists like C Rangarajan , Montek Singh Ahluwalia and Kaushik Basu publicly aired their views on the inflation and interest rates. That upset Subbarao. Rajan is no novice. He understands the mandate of the RBI and also the......
Is there any professionalism in Banks Boards? - Dr.T.V.Gopalakrishnan
.......When many of the Board members introduce NPAs in banks how can they discuss about the recoveries seriously. Their interests are also on tours, enjoying VIP status, hospitality and Gifts. When no accountability is fixed at Board level and when strict procedures are not adhered to for appointment of Board Members, how can there be professional approach in running the banks? ..........
Read..........
Replacing the old guard
.......Recently, PSBs were stuck in infrastructure finances, whereas private banks exited such projects well in time. In the current situation, where most of the old employees carrying the legacies of the pre-1991 era are retiring and being replaced by young tech-savvy executives, it is the right time for the government to take a call on reducing its stake in PSBs below 51 per cent since resistance from employee unions is bound to be lower. These newly-recruited PSB employees, who are all under the new pension scheme, are more interested in higher salaries and perks rather than secure jobs. ..........
How is the risk perception of customers linked to KYC: RBI
..............RBI deputy governor R Gandhi said that KYC was always there in banking! The focus, earlier, was more on the asset side and not on the liability side as no banker could risk parting with his funds to an unknown person.Speaking at the Federation of Andhra Pradesh Chambers of Commerce and Industry, Hyderabad, on Friday, Gandhi said, “The thorough appraisal process to screen the potential borrowers is a good example of KYC process.” The theme of the session was, "KYC: Compliance vs Convenience". Below are the excerpts of R Gandhi's speech:............
Read.........
Read the full speech.............
Read.........
Read the full speech.............
Man who could have been king
......In 2006, the then RBI governor YV Reddy had warned about the possibility of an overheating economy, but others including many in the government at the time, did not agree. He was famously quoted as saying, “I cannot certainly see the god, but see the devil.” In other words, he may not have had the solutions, but he certainly saw the danger signals. Subsequently, Reddy said at a book release function last year that India should not attempt double-digit growth like China, which was an exception. “One swallow does not mean summer,” Reddy said, emphasising no country in the world, including .............
Reserve Bank of India cautions public against fake website
It has come to the notice of the Reserve Bank of India today that a fake website has been created at http://www.rbi-inonline.org/savings.html by some unknown persons offering various banking facilities and asking members of public to apply on-line for opening "RBI Savings Account".....
The fake website was brought to the notice on 26-5-2014 - Read.........
RBITES - Change in name - Exchange of views
Dear Colleagues,
We had started the group of RBIOA so that we can interact with each other on a mail other than our corporate mail. But somehow it could not be clicked in a large way as every member of the RBIOA had easy access to corporate mail and could interact with more no. of members as all the members are available there. Then it was becoming difficult for me also to handle on day to day basis because of time constraint. Now, it has been decided to change the name of group to RBITES and Shri Madan Gauria, ex-AGM of our bank has been entrusted to liaison with all the members on behalf of the RBITES. Shri Gauria was an excellent officer of the Bank while during service and is also excellent co-ordinator for all of us. He really devotes a lot of time towards this and keeps apprised of the latest happening in the Bank and around.
So he will be the co-ordinator for the new Group - RBITES. You are all requested to switch over to the new group. You may also advise your other colleagues to be a part of it. Website of the group, which is open to all serving employees of RBI, can be accessed by clicking at following link or by pasting it in your browser:
( R N Vatsa)
General Secretary
Reserve Bank of India Officers' Association
Mumbai
Restaurants fume over lack of Rs five coins
......The Indian Hotel and Restaurant Association (AHAR) has written to the Reserve Bank of India (RBI) about the increased shortage of coins in the market. AHAR has written that the RBI's plan to channelise the distribution of these coins only through bank branches is not working in the industry's favour, sources said. "The problem is that banks are not keen on providing this se rvice. We have been frequently turned away from banks, which claim that coins are not available. The RBI should implement such policies only after assuring that banks will make coins available for everyone. .............
Why bank depositors deserve tax-free interest
.......The worst part of banking is the negative return they provide to the depositors, who in the interest of safety of their hard earned savings place implicit faith in the banks and silently suffer erosion in their savings without realizing the loss they incur year after year. The high rate of inflation and the rising cost of living have created a deep dent on their savings. This is made worse by tax laws, which are regressive on account of the failure of the government to bring inflation under control..........
Ombudsman for ombudsman
My View on "Awareness welcome, but Redressal sought for":
I have also come across a case where the performance of the office of the Ombudsman was, to say the least, pathetic. I only hope that persons who are not wanted in the mainstream or who wish to get posted to places of their domicile are not posted as Ombudsman. I headed an organisation just before retirement where employees in various grades who were inconvenient for various reasons,who are sick (some of them even terminally sick) were posted. As far as the head of this organisation is concerned, we are even now perhaps sticking to this policy with a degree of consistency which one wonders whether to be praised or condemned! It is high time some central audit is done of cases disposed off by the various regional offices of Ombudsman.
- A.Chandramouliswaran
One more held in banking job fraud
The MRA Marg police have arrested one more person in the job racket case wherein the racketeers allegedly claimed to provide jobs to aspirants in reputed Union Bank of India and Reserve Bank of India. The accused have alleged to have duped five people on the pretext of providing them jobs.............
Read - DNA
Read - DNA
Giving your teenager a bank account? Start small
......... If parents are worried about the safety of the deposits in the hands of children, there are safeguards that can be built into the entire process. It would be better to start with small amounts and seeing how they handle them. This would ensure that there is no big loss involved even if there is a goofup or impulsive spending. Let them make their own mistakes.........
Cutting expenditure to aid inflation control
.........While the Reserve Bank of India (RBI) has been fighting its war against inflation by keeping monetary policy on a tight leash, the higher governmental spending on subsidies and administered prices of nearly 30 per cent of agricultural commodities kept on fuelling retail inflation during 2009-2014. Furthermore, the government's higher revenue deficit has raised the cost of credit and crowded out private investment, which, in turn, has worsened............
RBI report on credit information to benefit customers, industry: Experian MD
......."The recommendations around the consumer-centric points are to make things a little more transparent and processes a little easier for the consumer," Jayaraman, also the country manager at Experian India, told Business Today. "Ones that are around the banking side are more focused to try and see if they can bring a greater level of usage and uniformity for the (credit information) bureaus. And, the third is around the bureaus to bring some uniformity in the way they're approaching the market place."..............
Tackling inflation politically
......There are people in the BJP who believe that Raghuram Rajan is choking off investment by using the rate of interest as an anti-inflation weapon. But a central banker has no other weapon; he has to play golf with one club. His predecessor RBI Governor had made it clear that he sees the inflation as a result of excess demand as indicated by the budget deficit. Bring down the deficit, he more or less explicitly said, and I will cut interest rates. The budget deficit has not been brought down whatever P Chidambaram’s window-dressing may say. The incoming FM will have to seize the bull by the horn, reveal the true numbers and make drastic cuts in expenditure for the remainder of FY15...........
RBI to maintain status quo next week: BS Poll
....“Inflation has not gone down due to which there is no reason for RBI start cutting rates. However, the expectation is that inflation will come down. In that case why will RBI hike rates? RBI should be maintaining firepower in a case if inflation starts inching up due to below normal monsoon. An immediate rate hike in that case will not help,”......
All eyes on finance
Though the finance ministry and the central bank have traditionally been on opposite sides of the interest rate debate, there can be little doubt fiscal policy needs to create more space for monetary policy to operate. If government expenditure keeps on rising unchecked, as it did till P Chidambaram returned to North Block, this will fuel inflation. And if corporate investments are to grow as expected, higher fiscal deficits will keep interest rates high............
The fourth challenge for the finance minister
.........Nor should the finance minister consider hiving off banking regulation from the remit of RBI. After the 2008 crisis, many Western governments have given their respective central banks more and not less powers over the banking sector. India has no reason to be more loyal to financial deregulation than Anglo-Saxon nations. Hence, the fourth challenge for the new finance minister is to resist the temptation to accumulate more power than what his ministry already has. Thanks to RBI, India has avoided “death by finance”, so far. The new finance minister should ensure that he does nothing to damage that history.
Helping Modi Get His Priorities Right
......Then, there is the inflation bugbear that the RBI has valiantly tried to tame through monetary policy — raising interest rates regularly. Both current RBI governor Raghuram Rajan and his predecessor D. Subbarao have used interest rate hikes to combat inflation — in the process drawing flak for dampening growth. The monetary policy has had some effect on WPI — which has come down over the past two years. Currently, the WPI is just over 5 per cent, a far cry from the 7.5 per cent-plus it was at in November 2013. But the other big inflation problem — food price inflation — has fluctuated between 11 per cent and 8 per cent over the past 18 months despite all efforts.............
Read............
BJP govt inherits historic low CAD, handsome BoP
The BJP-led government may inherit an economy which has logged a decade-low growth rate, but on the external front, there is a gift to the new government from the outgoing UPA regime. As per the data released by the the Reserve Bank of India(RBI) on Monday, the current account deficit (CAD) is merely $1.2 billion, or 0.2 per cent of gross domestic product (GDP) in the January-March quarter............
RBI nod mandatory to takeover, acquire control of NBFCs
....The RBI further said any merger or amalgamation of an NBFC with another entity or any merger or amalgamation of an entity with an NBFC which would result in acquisition/transfer of shareholding in excess of 10 per cent of the paid up capital of the NBFC, would also need its approval.
RBI proposes new bank insolvency law to increase yields
.........Analysts warned that giving depositors the upper hand over other creditors will have serious implications for bondholders, potentially leading to higher wholesale funding costs for the banks. "Now that RBI's stand on depositor preference is very clear, we will have to review our support assumptions on debt instruments once the resolution regime comes into force," said Saswata Guha, a director at Fitch Ratings, India.
No debt recast requests so far in FY15
With the Reserve Bank of India’s (RBI’s) new guidelines on the management of stressed assets in place, banks have not been knocking the door of the Corporate Debt Restructuring (CDR) cell. The cell has not received a single new case for a loan recast from member banks so far this fiscal. The guidelines are aimed at helping banks spot trouble early and take speedy action to prevent assets from turning bad............
Banks unlikely to heed Kerala State directive on loans
... Considering the growing rate of non-performing assets (NPAs), the Reserve Bank of India (RBI) has instructed banks against disbursing unproductive loans. Primary Cooperative Banks (PCBs) without own funds have to avail themselves of loans from the district cooperative banks for their lending operations. On clearing unproductive loans, the PCBs will have to bear........
Banks can wait to trade in commodity futures
........Way back in 2006, the Gupta Committee report released by Reserve Bank of India argued in favour of allowing banks, MFs and FIIs to trade commodity futures. The policymakers kept the recommendation on hold, and for good reasons. India was not ready then for rabid financialisation of commodity markets whose activities touch the lives of almost everyone in some way or the other. This is especially true of sensitive agricultural commodities – food articles – that have a high weightage in consumer price index. The situation is no different even today.............
Frame new policy for coops.: Sudheeran
....The sector needed to be streamlined to arrest unhealthy practices, Mr. Sudheeran said. The government should take steps to see that the NABARD directly disbursed funds to the primary banks, he said. The cooperative institutions should also be freed from the clutches of political parties to ensure transparency in their administration, he said. With the cooperative banking sector facing additional tax burden in the wake of the Reserve Bank of India (RBI) enforcing a fresh tax slab on its business turnover, the government should evolve new policies to streamline the cooperative institutions, he said..........
RBI authorises three more companies to open white label ATMs
Reserve Bank of India (RBI) on Monday authorised three more non-banking finance companies (NBFCs) to open and operate so-called white label automated tellers machines (ATMs) in addition to the four companies allowed earlier.........
Monday, May 26, 2014
Govt, RBI shadow boxing must end - DR R. K. PATTNAIK
.........In essence, the approach of RBI to increase interest rates to control aggregate demand and thereby anchor inflation expectations has been at the center of the discord. There are also media reports that the RBI’s policy stance to control inflation may not be appreciated by the new government and there could be leadership change in the RBI. In this context it may be recalled that the election manifesto of BJP has specific action points on inflation management. The resolutions in the manifesto are well deserved steps in handling the supply side of inflation management. To ensure that inflation management becomes credible and sustainable the NDA government may also consider supporting the demand management policy stance of RBI. In the fitness of things, the new government should listen to the RBI and give its due...........
Read - FPJ
RBI and INFLATION: The Chase Begins…
.........The committee appointed by RBI gave suggestion to solely focus on CPI and not on any other indicator. There are many reasons for choosing the CPI as nominal anchor for monetary policy. One of the reasons is that many countries in the world are now choosing this indicator as the base for their monetary policy but India and China. It is easy to track the CPI and even so called ‘AAM AADMI” can also relate the RBI’s monetary policy decision to increase or decrease the rate w.r.t CPI number. But the larger question is .............
R Gandhi Deputy Governor Reserve Bank of India at FAPCCI
R Gandhi Deputy Governor Reserve Bank of India, Mumbai speaks on ordinary topic relevant to ordinary public. Gandhi says all are primarily public and then refer to FAPCCI. The ideas and impacts of Gandhi explains why they bring certain resolution from Reserve Bank of India. The National Brand and other difficulties are faced by the common public when they first addressed. After finishing them they kindly react to the ideas and they really put them. Gandhi thanks Ayyadevara and Prasad. Gandhi says Know Your Customers is not a reason phenomenon. The concept of Banking Industry is focusing on the essence of them knowing the customer that has been practiced by Bankers from day 1. Banks focus more on Asset not on Liability side as no banker takes risk and parts from the Bank to an unknown person. When a Banker lends money to the party then there is interest list, trade and individual. Know Your Customer assessment is nothing but finding employee the way they can assess of how far the money comes back from creditor’s assessment. This is nothing but Know the Customers Assessment. Gandhi speaks on the safety and soundness of banks.
Where Duvvuri Subbaro grew up
..........According to the family friends of the former chief of the apex bank, his father late Duvvuri Mallikarjuna Rao, who worked as Assistant Public Prosecutor in the city courts, lived in a rented building in the same area before he purchased this house. Later, it was named as ‘Mohan Manjal’ in memory of one of the Duvvuri’s family members. The family of nine members lived in the house until Mr. Subbarao’s father expired. Later, it was sold to a city-based medical practitioner to become a hospital. It became a restaurant after it changed hands again.............
Former RBI Governor Dr Subbarao and Chinese Business Tycoon Mr Wang join NUS B school
...Dr Subbarao will be delivering a series of lectures on central banking challenges co-sponsored by the MAS. While three lectures will be held at the NUS B School on May 30, one will be at MAS on June 2, 2014. Speaking on the occasion Prof Bernard Yeung said “We are deeply honoured to welcome Dr Subbarao to NUS Business School, one of Asia’s leading business schools. As former Governor of RBI and Finance Secretary, Dr Subbarao led India through some of the most challenging times in the country’s economic development. I am confident that our faculty members, students and community will benefit immensely from his insights and knowledge. We look forward to his lectures,”....
India Post needs to apply afresh to Reserve Bank of India for bank licence
India Post will have to apply afresh to the Reserve Bank under differential licence guidelines if it wishes to start banking operations. According to sources, aspirants, including the Department of Post, will have to apply once again after guidelines on differential bank licences are issued in the next few months.......
Interference in public banks
.....There are many reasons for this delay - interference from the Central Vigilance Commission (CVC), Right to Information (RTI), and political interference. There is an urgent need to look at these matters, so that the decision-making can become smoother. On the other hand,.............
The importance of being independent - Janmejaya Sinha
........However, the one issue on which I disagree with the committee is the structure of its solution. It is surprising that the committee did not stay with the analogy of Axis Bank, but went on to create what I believe is an unduly complex and unnecessary solution of a bank investment company (BIC) and a bank boards bureau (BBB). Both may lead to the creation of the same problems that the committee seeks to avoid. Why do we want to shift all government holding into a central bank investment committee? Why can't these banks be allowed to operate like other banks? The nomination committee of the board will pick the CEO and compensation will be market-based. When we can allow independent banks with independent boards to run their banks, all we need is that the government stake be brought below 51 per cent. I think it is simpler and more effective, after...............
Nayak panel stirs up a row
......Government interference has meant that policy objectives rather than commercial considerations dictate a PSB’s working. A less charitable way of saying is that it is because of government pressure that several PSBs have lent to unbankable companies. Not all the worryingly high non-performing assets that banks are saddled with are due to government interference but if banks had decided on purely commercial considerations, they would most certainly had been better off.............
Directors - The weakest link?
........the crux of the problem is how directors are appointed or how they manage to get appointed on the boards of banks. There seems to be a lack of basic skills analysis of directors. Are they competent to join the board is a moot question. It is well-known that ................
Prepayment penalty on floating rate loans may come back
........... However, this position could be reversed if the recommendations of the working group set up "to examine the issues related to discrimination in pricing of credit and recommend measures for transparent and appropriate pricing of credit under a floating rate regime" are accepted. Unfortunately, their recommendations, if implemented, are unlikely to result in a fairer regime. In fact the recommendation, if accepted, might lead to a more unfair regime..............
Banks urged to conduct coin melas
....Vice-president of Coimbatore Consumer Cause M. Govinda Rao says that the RBI should ensure that banks organise special camps regularly, even once in three months, to distribute coins. Banks should also ensure that coins are distributed to customers regularly so that there is no shortage in coin availability.
Where will it settle?
......A halt at this level will mean that the rupee could remain in the band between 57 and 70 for a few years as it consolidates. But such a move will keep open the possibility of a move below 70 over the long term. The RBI has also made it clear that it does not want to ward off rupee depreciation. It is only volatile movements, with depreciation happening over a short period, which it wants to avoid. If the rupee gets past the hurdle at 57, the next resistances are at 54 and then 52. We do not envisage a move above 52, even if copious inflows enter the country. ......
Awareness welcome, but Redressal sought for
My View on "Meet to spread awareness of banking ombudsman sche...":
Creating awareness of banking ombudsman scheme is welcome. But, sadly, those who are aware about its existence and waiting for redressal of their grievances is a larger issue as absolutely no response from the ombudsman on complaints already recd by them. One case in point is that a complaint lodged by one of my relatives servant on 20 March 2014 for non receipt of credit of a cheque for Rs.63,723 issued on SBI Ratnagiri branch and deposited in the SBI Andheri West branch. The bank has not credited the amount of the cheque deposited on 13 March 2013. It is more than one year that no action has been taken by the bank despite visits after visits and letters after letters given to them. Ombudsman at Garment House, Mumbai has also not acted upon the complaint so far. Poor gardener continues to suffer.
Name of Payee: Mr Sakhram Govind Dalvi.
SB A/C No. 10218281741
Che No. 343791 datd 11 March 2013 for Rs.63,723 drawn on SBI, Ratnagiri branch.
SBI, Andheri should have given immediate credit as it's branches are under CBS and it rather chose to send it to the Ratnagiri branch and reportedly lost in transit.
Whether Ombudsman, Garment House will look into this and redress the grievance of the poor gardner and compensate his loss of interest, time (loss of wages whenever he had to visit the branch for finding the fate of his cheque), mental agony?
- Dr.Santhanam
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