.........Keeping a track of money spent is certainly not new. So, why are banks now offering their customers such a facility? “Personal financial tracking has become popular globally. On the basis of customer insight, we anticipated demand for such tools in India. With Internet and mobile banking usage rising, we looked at combining customers’ banking attributes with their desire to control finances and manage expenses,” .......
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, June 11, 2014
Directed Investment is Need of the Hour, Not Lower Rates
........However, a broad-brush tight monetary policy by itself may have limited efficacy in bringing down inflation in the current Indian context. In a paradoxical way, in fact, it might actually have unintended consequences of achieving just the opposite. India is not yet a borrow-and-spend economy . Only 18.6% of banking loans are towards retail and consumption. That means higher interest rates passes on as a higher input cost, through 81.4% of banking loans that go to producers and intermediaries. High interest rates penalise infrastructure investments that are needed to address the supply side. But, seeking lower rates across the board may be mis placed at this stage..........
Arun Jaitley for hitting ‘undo’ button to revive economy
Hitting out at the last UPA government for the labyrinth the economy has got into, finance minister Arun Jaitley on Tuesday hinted that many of the regime’s policies that stymied economic growth could be reversed. “The UPA left the economy in a bad shape. Things that have been done have to be undone,” he said in the Rajya Sabha in what was seen as an oblique reference to the UPA’s costly welfare schemes that strain government finances and investor-unfriendly policies like retroactive taxation...........
Tuesday, June 10, 2014
Will Rajan Lag Markets In Lower Interest Rates?
In two months before Duvvuri Subbarao took his first baby step of raising key rate by 25 basis points in April 2010 to fight inflationary pressures, yields on benchmark bonds had surged about a hundred basis points. A similar act may be playing out now on the Mint Street, though in the opposite direction. Market is flashing signs of lower interest rates though Reserve Bank of India Governor Raghuram Rajan is showing little signs of easing anytime soon. ........
The power of small - Charan Singh
...........The MSME sector has great potential to help economic recovery and accelerate growth. In view of its significant capacity to create employment, the MSME sector deserves special attention. To incentivise MSMEs, the government could consider tax concessions or even tax holidays, which are offered by many countries. The government could also consider providing subsidies to MSMEs, including interest subsidies. Finally, to tap their employment generation potential, the problems of MSMEs need to be considered in a disaggregated manner. In fact,....................
Better regulatory coordination vital
.............K C Chakrabarty, who recently retired as Deputy Governor of the Reserve Bank of India (RBI), said unless regulatory arbitrage was reduced, there would be a tendency to avail of gaps, adding not being able to address this issue was a collective failure of society. He was speaking at a function organised to release Sahara: The Untold Story, a book by business journalist Tamal Bandyopadhyay.............
Putting the spring back into the economy
............The other crucial thing that the government needs to do in order to sustain growth is to control inflation. Inflation has always been partly demand-driven and partly structural, due to elements like supply bottlenecks. In India, in the last few years, it’s the structural part which is almost always driving inflation, particularly food inflation. While the Reserve Bank of India (RBI) and monetary policy can ensure that inflation does not lead to hyperinflation, unless we solve the problem in the food sector, we will keep on having high inflation rates. Hence, interest rates will not be able to come down, hampering growth.
In order to solve this problem, .............
CM inaugurates Gujfed initiative
This is no secret that Gujarat Urban Co-operative Bank Federation (GUCBF) is ahead of its counter parts operating in other states. Or what else can explain its initiative to form an umbrella organization to promote technological modernization, capacity building, research and financial literacy among cooperative banks on the RBI’s suggestion.
The Centre of Banking Research and Excellence was inaugurated in Ahmadabad at the hands of Gujarat Chief Minister Anandi Ben on Saturday, a proud Gujfed Chief Jyotinder Mehta informed Indian Cooperative.
RBI had set up a Committee five years ago to work out an umbrella organization for the urban cooperative banks. The Committee recommendations were sent to all the state headquarters. Acting on the suggestions, Gujarat Chapter of Nafcub has taken initiative to start the Umbrella Organization aimed at improving the functioning of UCBs.
“And we were lucky to rope in the services of V S Das, the then ED and member of Committee from RBI. After retirement he has agreed to oversee the entire operation” Mr Mehta said to Indian Cooperative.
Sources say the umbrella body would be the first of its kind in the country and offer the cooperative banking sector services like asset liability management, fund management and investment banking.
There are 233 urban co-operative banks and 18 district co-operative banks in Gujarat with over 10 million account holders. Nearly 3 million farmers are linked to different credit societies in Gujarat. The cooperative banks in the state have Rs 40,000 crore in deposits and have doled out Rs 30,000 crore in advances.
“Gujfed has also started what is known as “Sahkar Setu 2014” aimed at envisioning the next generation cooperatives. Next Gen Co-op would be futuristic encompassing the latest technologies”, beaming Mehta added.
PSU babus can't travel `Jaipur to Delhi via Sao Paulo' anymore
.The government has issued a comprehensive set of guidelines for employees of public sector banks, financial and insurance companies and other regulatory bodies, significantly limiting their leave travel concession (LTC) claims. The notification was prompted by the widespread misuse of LTC/LTA facilities by government and public sector employees, exposed by TOI over the last year and now under CBI investigation..........
‘Full financial inclusion a pipe dream’
Six of India’s senior bankers and heads of microfinance institutions (MFIs) gathered at Mint’s first annual South India Banking Conclave to discuss the issue of making financial inclusion sustainable and how to address the challenge of combining profitability with inclusion. The consensus that emerged out of the discussion is that both banks and MFIs are moving in the right direction and it has to be combined with financial literacy but it will take time to cover the entire country..........
Ind-Ra: RBIs Policy Stance Guided by Upside Risks
India Ratings & Research (Ind-Ra) believes the Reserve Bank of India's (RBI) policy stance of maintaining status-quo on policy rates is the right step under the current macroeconomic environment. The agency does not expect any change in the policy rates in the near term. We believe besides looking for a predictable and sustained downward trajectory of inflation, the RBI will watch out for the fiscal stance of the new government before changing the rates...........
WHAT’S SO DOVISH?
Analysts and commentators were quick to dub the latest credit policy statements by RBI governor Raghuram Rajan “dovish”. And how did they come to that conclusion? On the basis of a sentence in the policy which said: “If the economy stays on this course, further policy tightening will not be warranted. On the other hand, if disinflation, adjusting for base effects, is faster than currently anticipated, it will provide headroom for an easing of the policy stance.” Look closely at the statement, it is nothing exceptional. Similar statements were made by Rajan himself earlier and by many other governors. Yet when the mood is different, the same statement acquires a different hue!
PMO to Look into PSU Banks' Bad Loans, Governance Structure
The Prime Minister's Office is keen to champion fast-track reforms in public sector banks to lift the overhang of rising bad loans that make it a challenge to re-start the investment cycle and pose a fiscal headache for the government on account of banks' capital infusion requirements. At the same time, the PMO is looking to overhaul and strengthen government-owned banks' governance structures at the earliest so that the problem of bad loans doesn't return with the next cyclical downturn. The Modi government could take a cue or two from private banks whose management and credit appraisal structures have helped them contain the rising tide of non-performing assets that have accompanied India's slowing economy in recent quarters, ..........
Things not moving..........
My View on "Functioning of the Reserve Bank of India - A.Chand...":
Dear Chandramouliswaran Sir,
I totally agree with your comments.Things are not moving in the required and desired level at commercial banks and RBI. Despite RBI inspections, why NPAs are going up and up in every bank, specially Public Sector Banks.
- William Panakal
Banks may take legal route to end agriculture loan waivers
..........Banks may also insist upon mandatory insurance for all farm loans as a protection against future loan waivers, though this may raise the cost of funds for the agriculture sector as a whole. The Indian Banks' Association, the industry lobby group, has sounded out both the Reserve Bank of India and the Union government about the hazards of a waiver, said two people familiar with the development. They said that no final decision has been taken on the proposed legal action and banks were stil ..
Farm loans
..........Ironically, in both the cases, mostly PSU banks have borne the burden of the NPAs since agile private banks exited their exposure in Kingfisher in time and lent substantially low volumes to the agriculture sector. Whatever the private banks have lent to the agri sector, the farm loan waiver can not be enforced on them. It can now be established that if PSU banks remain state-owned, they have to face more such farm loan waivers in one or other way. In such a case........
Maharashtra farmers to protest outside RBI office
Hailstorm affected farmers in Maharashtra are set to demonstrate outside the Reserve Bank of India office in Navi Mumbai on Tuesday. Farmers have claimed that the commercial nationalised banks, rural banks, private and corporative banks are not following the RBI Master Circulars to help and support the farmers. “Using the loopholes in the lending policies of RBI, these banks are actually lending to corporates rather than to the farmers and agriculture. This is forcing the farmers to approach private and illegal moneylenders, who charge usurious interest. This is the main reason for thousands of suicides of farmers being reported every year and for lowering of agricultural growth rate,” a statement by All India Kisan Sabha said....................
`Rajan Sympathetic to Bankers' Cause
.............Reserve Bank of India Governor Raghuram Rajan has been an advocate of prudent lending and prompt repayment principles. He is sympathetic to the bankers' cause and is likely to argue against waivers, said the person. “The regulator is also against the plan,'' said the person. “We are looking at a public interest litigation (PIL), but if something concrete happens even before that, we may drop it.'' Even among bankers there are doubts about the fallout of such a litigation as some believe that there is very little they can do to challenge policy decisions...........
Let's wait and watch
My View on "Write off of loans and offer of freebies - Dr.T.V....":
Dear TVG,
Write offs of loans are for votes and the governments, rather the ministers responsible for such decisions are not loosing anything from their pockets and when they get the votes and come back to power, they make more money. If we see the stats of most of the politicians wealth from one election to the other, it is manifold. So we can imagine, why these write offs. It's the tax payers money is being used for such activities. I only wish the new Central Government will put a stop to all these. Let us wait and watch.
- William Panakal
SLR cut signals RBIs optimism on credit pick-up: B Prasanna
..............Thus, in all, RBI is unlikely to hike repo rate in the current fiscal. The hurdle for a rate cut is also high. The drivers highlighted above suggest that even if inflation decelerates, the momentum is unlikely to decline so significantly so as to suggest 6% final inflation target can be credibly achieved. Thus, RBI is likely to remain in a wait and watch mode for longer.............
Virtual visits
You need to visit your bank but can’t bear the thought of stepping out in the heat. If you are a customer of IndusInd Bank, all you need is a computer or even a smartphone to ‘visit’ the bank. A new service called Video Branch enables customers to schedule a video conference with the bank staff, whether with the branch manager or your relationship manager. Transactions that can be made using this service are booking a fixed deposit, RTGS and NEFT funds transfer, which can be done immediately through a video chat with the contact centre executive. Scheduling a video conference can be done through the bank’s website.
HBL
RBI eases address proof rules for bank A/c
............In a notification, RBI said, “Henceforth, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation. In case the address mentioned as per ‘proof of address’ undergoes a change, fresh proof of address may be submitted to the branch within a period of six months.” The RBI further added that in case the proof of address furnished by the customer is not the local address or address where the customer is currently residing, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer............
RBI signs MoU with South Korean regulator
..........“RBI has been signing MoUs ..with supervisors of other countries to promote greater co-operation and share supervisory information among the authorities,” the central bank said in a statement on its website. Deputy governor H.R. Khan represented RBI at the ceremony in Seoul.
PSU banks autonomy can be a reality
...............The new government has taken the right step by deciding to lower its stake but it will be more prudent if there is no interference in the operations of the banks. This according to the PJ Nayak report can come when the government's stake in all public sector banks are transferred to a holding company.............
FinMin puts amalgamation of regional rural banks on hold
............... Bill to amend the RRB Act is being considered by the parliamentary standing committee on finance. The amendments are aimed at increasing the pool of investors to tap capital for RRBs. A senior public sector official said now, the focus would be on improving the performance of RRBs, including their profitability. Further amalgamation on this front should happen only after examining the viability of the exercise, the official added...........
Public sector banks can get a BIC leap forward
...............The BIC will help distance the government from the boards and managements of PSBs, without any loss in its ownership of the banks. The BIC would "hold equity stakes in banks which are presently held by the government" and be constituted as a core investment company under RBI registration and regulation. A shareholder agreement between the government and BIC would assure the latter of its autonomy, and set its objective in terms of financial returns from the banks it controls. The board of the BIC would be professionally constituted with a professional CEO, a non-executive chairman nominated by the government and independent directors with adequate skills and expertise. The report recommends..............
It's final: RBI tells banks to keep 60% liquidity coverage ratio from January 2015
................The concept says that financial institutions should have 100% assets back-up to ride out short-term liquidity disruptions. Accordingly, banks are required to hold an amount of highly-liquid assets, such as cash or treasury bills, equal to or greater than their net cash over a 30 day period...............
More services on anvil at non-home ATMs
.............. “Several banks have the cash deposit facility at ATMs that are not inter-operable as yet. So only the bank consumers can use it. We have sought RBI’s permission to make it independent now. In fact, a request has also been sent to make another feature-bill payment also interoperable,”...........
Now, wristband that allows you to make payments
...........The bank's Barclaycard division plans to roll out its 'bPay' band, at sponsored events this year, ahead of a wider launch in 2015. The device uses the contactless payment technology in Barclays' credit and debit cards, which lets users make payments by scanning them against terminals, 'The Telegraph' reported. A user can add money to their 'bPay' band using their Visa or MasterCard credit or debit card. The money can then be spent on small purchases up to a single transaction value of 20 pounds by swiping the bands over a terminal.............
Man withdraws Rs 10k, bank sends SMS for Rs 25k debit
A journalist from Nandurbar in northern Maharashtra has been making rounds of a police station in Borivli (East) for a month after he found that Rs 25,000 had been debited from his bank account when he had only withdrawn Rs 10,000. He has submitted evidence to the police, but they have been dragging their feet on the matter..............
Read - TOI
Read - TOI
Banks seek tax breaks on deposit income
.......One suggestion from the banks is that interest income from bank deposits should be subject to indexation benefit. In other words, tax would be paid only on the real returns above the rate of inflation. Speaking to TOI, a senior banker said that going forward mobilizing deposits to fund growth could be a challenge. Banks are facing competition from fixed maturity plans of mutual funds, government small saving schemes and taxfree bonds of financial institutions. “For tax payers, it does not make sense to maintain fixed deposits which attract tax........
Use MFs To Save For Post-Retirement Life
.........According to financial planners, through judiciously choosing the right mutual fund schemes after identifying investment requirements, you can save enough to meet post-retirement financial needs even if you are faced with rising medical costs, increasing life expectancy and high inflation. Your savings should be enough to maintain the lifestyle that you are enjoying now. However, retirement planning is like running a marathon in which patience and discipline are the two most important aspects of winning............
Raised cash reserve ratio may hit co-ops’ profitability
.............Non-interest bearing CRR to be maintained by even district cooperative banks has now been raised 100 bps to 4.00 per cent on par with State Cooperative Banks with effect from July 12. RBI has sought to balance this with a cut in the SLR from 25 per cent to 22.50 from the fortnight beginning July 12. Sources in the cooperative sector said district-level banks would find their profitability eroded in the bargain..................
Sidbi repositioning itself to fulfil financial needs of MSMEs
.....................“Risk capital is a requirement that is not catered to by commercial banks. We at Sidbi would like to play a role that is both complementary and supplementary to commercial banks. We want to fill the void and fulfil the financial needs of the MSMEs.”
A primer on classification of banks in India
Apart from offering licences on tap, the regulator will also offer differentiated licence for niche activities. As a result, payment banks, local area banks in the country will come into existence with universal banks that are present now............
Monday, June 9, 2014
Madhavpura bank collapse is behind us, says RBI Executive Director
“The crisis of confidence” brought about by the collapse of Ahmedabad-based Madhavpura Mercantile Co-operative Bank (MMCB) is a chapter in history feels N S Vishwanathan, the Executive Director of Reserve Bank of India (RBI) who on Saturday pointed out that the urban co-operative banking sector in the country was currently in a growth-mode. “The failure of the Madhavpura Mercantile Co-operative Bank, had a deep impact on the sector. Everyone knows, it was a case of bad governance. The bank’s failure had..........
Fewer UCBs good for co-operative banking: RBI official
.... The CBRDE was inaugurated by chief minister Anandiben Patel who said that co-operative sector giants should protect the trust of depositors at any cost and simplify the procedure of obtaining loans and insurances. "CBRDE will function as a banker for its member banks and act as a hub for training for banking personnel. It will also provide consultancy services in various areas, undertake research and also provide IT services," said V S Das, former ED, RBI. Das, who was Regional Director of the RBI in Gujarat From 2000 to 2003, will be consultant of CBRDE. Gujarat is the first state to set up such an umbrella organization for co-operative banks....
New apex body to help co-op banks upgrade tech
AHMEDABAD: Gujarat Urban Co-operative Banks Federation (GUCBF) and Gujarat State Co-op Bank Ltd (GSCB) will form an umbrella organization that will help co-operative banks in technological upgrading, capacity building, research and in increasing financial literacy. The yet to be named organization is being set up on the recommendation of the RBI. .......
The task ahead of Reserve Bank
Finance Minister reaches out to RBI Governor
The clear chemistry between Finance Minister Arun Jaitley and RBI Governor Raghuram Rajan has put to rest fears of a confrontation between the BJP-led government and the head of the central bank. The tone and tenor set in by the latest monetary policy brings in relief that India's central bank and Finance Ministry will be working in tandem to fight inflation and promote growth...........
Arun Jaitley underlines need to lower cost of business to revive growth
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| Union finance minister Arun Jaitley with Reserve Bank of India Governor Raghuram Rajan at a meeting at the central bank headquarters in Mumbai on Saturday |
Functioning of the Reserve Bank of India - A.Chandramouliswaran
Central Government, under the dynamic leadership of Shri Mody, is taking many steps to improve Governance. Reserve Bank of India cannot afford to lag behind especially since it had a record of much better standards of governance and efficiency.
It needs hardly any emphasis that the rules/regulations issued by the Bank to the entities regulated by it would serve their purpose only if they are implemented by the latter. It has been my experience ( now that I have been on the other side of the fence for a pretty long time) and also the experience of many others that banks do not follow the instructions issued by the RBI in a wide range of areas starting from payment of Savings Bank interest for delay in credit of cheques deposited into the account, clear description of the transactions in the Passbook/Statement., maintenance of minimum balance in a Savings Bank account, prompt payment to beneficiaries of inward remittances from abroad and payment of interest for delays in such payments, observance of regulations relating to foreign exchange remittances for residents for various personal purposes, remittances to non-residents from balances in their accounts, issue of Foreign Inward remittance Certificates (FIRC) and hundred other areas. With large scale delegation of powers to authorised dealers in the area of foreign exchange remittances, the intention of the Reserve Bank of India for good customer service is totally frustrated by the ignorance and carelessness of the branches of authorised dealers. I am aware of the difficulties in tackling this task. But then, if this is not tackled by suitable internal and external audits, including that of RBI, good and efficient customer service would not be achieved notwithstanding appointment of any number of Customer Service Groups/ Committees.
I would next come to the functioning of the RBI. In our times decades ago, the officials could perhaps be accused of an attitudinal problem in that generally they were perhaps negative in their approach and strained every nerve to find an argument to say "No" to the request!! This was perhaps conditioned by the atmosphere prevailing then. In recent periods, it has been my experience that while the officials are helpful and have a positive and helpful attitude, they are not always found to be thorough with the rules/regulations and the latter ingredient is also a prerequisite for efficient and good customer service. The policy of the RBI relating to placement of officials and the relaxed and liberal approach to the level of efficiency including the speed of disposal expected of them in practice may have take some some blame for this situation. Responses to clarifications sought on the instructions issued by the RBI and grievances of members of the public are very much delayed. It is high time that time limits for disposal of letters addressed to the Bank are laid down and enforced ruthlessly. As if the delay is not sufficient, the contents of the reply from the RBI are on occasions frustrating when the letter says that "the Bank has carefully considered the request but regrets its inability to be of any assistance in the matter." Such replies are better avoided even in their internal communications to the employees even though they are common and perhaps continue till this day. If my memory serves me right, there were instructions issued much before I retired long long ago that explanatory remarks have to be given for the decision of the RBI in its communication to a member of the public who had approached it for any matter. Unfortunately, these instructions are not being followed even now.
- A.Chandramouliswaran
K C Chakrabarty – An Accidental Banker ? - Lessons for Top Management
Read.........
Fin Mkt Watchdogs Ask FM to Raise 80C Volume
............The matter cropped at the Financial Stability and Development Council (FSDC) meeting on Saturday afternoon when Jaitley met heads of all financial services and market regulators. The country's savings have dipped to a nine-year low amid spiraling inflation, drop in profits of businesses and the inclination of household savers to buy more gold and park less money in traditional financial instruments. The savings rate in the economy has slipped from a high of little more than 38 per cent......................................
MP Rajeev Chandrasekhar asks FM to make regulatory bodies accountable
...........Under the existing architecture, the financial sector is regulated by eight agencies, which are Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA), Pension Fund Regulatory and Development Authority (PFRDA) and Forward Markets Commission (FMC), Securities Appellate Tribunal (SAT), Deposit Insurance and Credit Guarantee Corporation (DICGC), and Financial Sector Development Council (FSDC). However, from the consumers’ perspective, the track record of these regulators is a huge disappointment. In fact, there is hardly an example of an investor or saver receiving satisfactory redressal of his grievances from these regulators........
CAFRAL - Conference on Financial Frauds
....The objective of the conference is to deliberate on the framework for strengthening the mechanism to deal with financial frauds in the financial sector and understanding best practices in banks by inviting the top regulatory authorities from the CVC, RBI, Police Department and eminent legal authorities..........
Read................
THE POSTMAN KNOCKS
As “India Post as banking platform” by Charan Singh rightly concludes (June 6), the post office has touched the life of every Indian, irrespective of age, caste or place. It can be a banking partner for us. Today, more than 50 per cent of Indian adults do not have a bank account and banking as a whole is an ever-growing industry. It has never seen a decline in business volumes. The department of post and telecommunications appears to be precisely qualified to meet the objectives of the licensing policy of the RBI, as P&T has the necessary infrastructure and network to penetrate the rural sector. Hope the new government leverages India Post for banking operations fruitfully, without further loss of time and reaches the heart, hand and mind of the Indian populace.
- RS Raghavan, Bangalore
Consider the RBI policy as an indicator
...........“From a hawkish tone, the policy was more dovish, trying to balance growth while curbing inflation. Steps to increase credit availability by reducing the Statutory Liquidity Ratio (SLR) by 50 basis points to 22.5% starting mid June 2014 should help in increased availability of funds required for growth. However, this is unlikely to result immediately into a reduction in rates in the near term.The thrust still seems to be on curbing inflation despite the need to fuel the ailing economy.”................
India’s economic scenario : Glimmer of hope ?
............Financial inclusion has still to travel miles and miles more to see the smiles! Incidences of regional imbalances have to be done away with over time. No war please. If we want to fight it is best to fight against poverty, unemployment and crimes – looking at the plight of SAARC Nations!!............
Emerging Economies and Capital Flows – the poisoned chalice
......Hence, to expect technocrats and policymakers in emerging economies to get past political obstacles and pursue a rational and painful reform path – especially when times are good – is to demand of them a feat that policymakers in the West had not attempted.Indeed, Raghuram Rajan had referred precisely to these issues in the Andrew Crockett Memorial Lecture he delivered in June 2013.[4] His recent remarks on the collapse of global policy co-ordination, in fact, should be seen in the context of his remarks made then about the large spillover effects from unconventional monetary policies pursued in the West, the unproven efficacy of macroprudential measures, the difficulty of persuading economic participants to practise delayed gratification when times are good..........
A peek into the prime ministers economic vision
...........His speech, after a book launch at 7, Race Course Road, his official residence, underscored the importance of an urban and rural growth agenda, revival of the 'green revolution' in agriculture, a focus on renewable energy, exploiting the 'demographic dividend', making 100 'smart' cities and quick decision-making. Skill, scale and speed are what India needs to compete with China, Modi said..........
Steady and safe
...................The government should accept that instead of intruding on Mr Rajan’s turf. It should concentrate on the many tasks that it has to address on the economic front. The government should acknowledge that there are major supply constraints that are contributing to keeping inflation at a high level. It should start the work, sooner than later, to remove these constraints. The success of such measures will prepare the ground for the RBI to review and alter its position on interest rates. The RBI’s position is thus not unrelated to the overall economic situation that is prevailing in India today, thanks to the ..............
'No' by 'Yes' = long silence
My View on "YES Bank calls Madhu Kapur's allegations baseless,...":
Yes Bank Management's 'No' to Mrs Madhu Kapur's demands and long silence of the regulator, the RBI on the issue surprises the shareholders of the Bank and the people at large about the affairs of the bank. Allegations and counter-allegations are going on for months together and the publlc are entitled to know the correct position particularly with regard to her claim to be a director, her questioning the appointment of Mr Srinivasan with the clearance of RBI etc. Will RBI clarify the position for the good of the banking industry and the depositors, shareholders of the Yes Bank?
- Dr.Santhanam
RBI may let South Korean banks branch out in India
.........In the case of foreign banks, the RBI forwards their applications to an inter-departmental committee consisting of officials from the ministries of finance, home, commerce and external affairs. The banking regulator then takes a final decision on the basis of the panel’s recommendations. The panel, on June 6, gave its nod to Shinhan Bank’s application to open three more branches, as well as to Woori Bank and Industrial Bank of Korea to start one more branch each, the sources said...........
Shortage of Coins, Business Owners are Trying to Gain More from Customers
.......Mahatma Gandhi had something to say about this so many years ago. "You must be the change you want to see in the world". :-) I have this same problem in Mangalore getting change. I haven't seen a 5 Rs currency note in a long time, though Rs 2 coins seem to be very popular here. But it's strange that slightly prosperous roadside Chatwallahs or Chinese Food vendors give me whatever change I need. With already squeezing margins due to rising commodity prices, hotels are feeling the current situation too hot to handle. Besides, small grocery shops and retail establishments are also finding it difficult to procure coins.........
Unethical and Unfortunate
My View on "Banks ask Fin Min to reject AP govts farm loan wai...":
The announcement is unethical. But, is there any provision in the BR Act to write off bank loans by anyone other than the Board of Management of the Bank concerned? Is it a legally tenable move? Just because none of the Chairmen of any PSB has challenged it in the past, the govts also take for granted and issue waiver of loans from time to time.RBI should guide the banks on the legality of this move as it involves the profitability of the banks which in turn adversely affect the depositors' funds with these banks. Unfortunately, there is no word from the RBI in this regard.
- Dr.Santhanam
Write off of loans and offer of freebies - Dr.T.V.Gopalakrishnan
.............This sort of loans write offs in early 1990s and 2010s by the Central government and by Some State governments, Maharashtra ,Haryana etc though were severely objected to openly and privately by the previous successive Governors of the Resereve Bank, politicians however, ignored them and the write off of loans and generation of bad loans in anticipation of possible write off offers from the politicians have become the order of the day. The general discipline expected from borrowers has been on the decline. and..........
Read............
Farm loan waiver will be implemented: KCR
..........“No work related to the issue has been done yet in the absence of details and the bankers are yet to come up with details of farmers’ outstanding dues. It will take at least 10 to 15 days to finalise the details, get clearance from the finance department and get the RBI approval before it actually come into force”,.......
It’s time to talk about the bad loans scam
........Previous Finance Ministers Pranab Mukherjee and P. Chidambaram perfected the art of ignoring the problem. They stayed silent on the issue and when pressed spoke about bad loans only in vague, inconsonant terms. That fuelled speculation that many bad loans were not just the result of bad business decisions but bad intent — that businessmen in cahoots with politicians, bankers and bureaucrats have been looting public sector banks merrily. After all, the rate of bad debt in government-owned banks is about 5-10 times higher than in private banks. Partly, this is because PSU banks lend more to the weaker priority sector. But it is undeniable that poor management and corruption are also major reasons public sector banks are bleeding.............
FinMin shortlists B Sriram, V G Kannan for MD posts of SBI
The Finance Ministry has shortlisted two senior officials of State Bank of India (SBI) for the post of managing directors of the country's largest bank. B Sriram, managing director of State Bank of Bikaner and Jaipur (SBBJ) and V G Kannan, managing director of SBI Capital Markets Ltd, are contenders for the post of two managing directors of the SBI, sources said. Names of shortlisted candidates have been sent to Finance Minister for his approval,....
Uday Kotak wins EY World Entrepreneur Of The Year Award
...........While accepting the award, Uday Kotak said, "I accept it with all humility on behalf of 1.2 billion Indians." He said, "It is recognition of the skills and dedication of the 25,000 employees of Kotak Mahindra Bank who have worked so hard to build a world class Indian financial services brand." Kotak set up Kotak Capital Management Finance Ltd in 1985. In 2003, it became India's first non-banking finance company to be converted into a bank................
SBI sensitises villagers on financial literacy prog
...........During the programme, the participants were sensitized about the role of bank in financial inclusion, financial planning, financial discipline, use of Information Communication Technology (ICT) to provide banking services in the rural/ unbanked areas, precautions to be taken while operating ATM/ Debit and Credit Cards, fictitious mails/SMSs offering money, chit funds, steps to be followed for resolution of grievance with bank including Banking Ombudsman Scheme 2006 of Reserve Bank of India (RBI) and undertaking Income Generating Activities (IGA) on scientific lines. They were also briefed about the need to develop long term relationship with bank for all round development..........
ICICI Bank overtakes HDFC Bank as top private bank employer
With addition of over 10,000 jobs last fiscal, ICICI Bank has overtaken rival HDFC Bank as the biggest employer in the private banking space with more than 72,000 employees. Incidentally, HDFC Bank saw its employee headcount decline by 900 during the fiscal ended March 31, 2014, while at least five other major private sector banks saw their workforces grow during the year..............
Withdraw amendments to Multi-State Co-op Act: Sahakar Bharati
......microfinance institutions in the country have hardly been regulated, and some of them charge high interest rates. Since there is a need to regulate such institutions, the Government should introduce a strong Bill in this regard, he said. Stressing the need for setting up small local urban cooperative banks across the country, he said no urban cooperative bank has been set up in the country in the past 15 years. The RBI should announce norms for setting up new urban cooperative banks, he said........
SIT on black money decides to solve tax treaties’ secrecy puzzle
......The SIT, sources said, would look into the possibility of requesting competent courts and the relevant authorities in foreign jurisdictions for permission to share with other agencies the data obtained by the Central Board of Direct Taxes (CBDT) and the I-T department. The agencies for which the data access could be requested include Enforcement Directorate (ED), Directorate of Revenue Intelligence (DRI), Reserve Bank of India and CBI, so that suspects in such cases can be probed from various angles and under provisions of criminal laws........
Spot gold premia decline
............Though gold is imported and loaned to jewellers, the pricing is done when jeweller returns the gold to the lending bank. As loan periods usually exceed three months, spot premia are different after a loan period is over; the import duty, too, might be different. A source in the know said, “This is becoming an issue for lending banks, as they are not able to conclude how to price gold when jewellers return the gold taken on loan.”.................
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