..........In a notification issued on Wednesday, RBI advised banks to provide ramps in all existing and future ATMs, and make at least one third of new ATMs installed as talking ATMs with Braille keypads. It was also advised to ensure that at least one talking ATM with Braille keypad is generally available in each locality for catering to the needs of visually impaired persons." In effect, Urban cooperative banks (UCBs) are now advised to take appropriate steps to provide ramps at the entrance of the bank branches so that persons with disabilities/wheel chair users can enter bank branches and conduct business without difficulty............
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, June 12, 2014
Wednesday, June 11, 2014
RBI must not be a puppet of international powers
RBI : Gandhi says urban co-op bks’ issues stem from faulty governance
.....“Many of the problems faced by the UCBs (urban co-operative banks) are due to governance issues and lack of professionalism,” Gandhi said at the ‘Conference of Urban Co-operative Banks’ held in Ahmedabad on Jun 8. A copy of his speech was posted on the RBI website today. Gandhi also pointed out that the functioning of urban co-operative banks was skewed towards creditors and that depositors had very little say in how their funds were managed. Creditors have a larger say in governance while depositors have very little stake and there is a need to empower them appropriately, Gandhi said. In his address, Gandhi also touched upon the need to evaluate the present regulatory framework for the transition of urban co-operative banks to full fledged commercial banks. “It is important to mention here that once co-operative banks reach a certain threshold level, they are also expected to follow a regimen like large banks and standardised global practices, which may not be possible within the existing legal structure of co-operative banks,” Gandhi said...........
'Existing legal framework for urban co-op banks needs to be revisited'
..........Addressing the Conference of Urban Co-operative Banks (UCBs) in Ahmedabad, R Gandhi, Deputy Governor, RBI, said “…once cooperative banks reach a certain threshold level, they are also expected to follow a regimen like large banks and standardised global practices, which may not be possible within the existing legal structure of cooperative banks. “Thus, before we move forward, the existing legal and regulatory framework needs to be revisited to enable smooth transition..........
New-Gen Urban Cooperative Banks—Some Musings
.............Since the theme of the Seminar is “Next-Gen Co-operative Banks” let me now briefly dwell on the subject. To begin with let us analyse some of the best global practices in cooperative banking and their implications for next- gen cooperative banks in India, before moving forward to what is our expectation from these banks. The co-operative banking sector contributes significantly to the growth, stability and competitiveness of the European banking industry at a local and regional level. Ordinary citizens can become members / owners of co-operative banks with relatively small investments. As a result, they have a direct say in the business and are involved in the governance, strategy and risk management processes. The core business.............
Scholarship in memory of late Dr.Meenakshi Tyagarajan
At every birthday of mine, from age 8 until the age of 18, she
always gave me the gift of reading, by buying me the most thought-provoking
books. She would send me additional reading material through my mom, regularly
from the British Council library. Stern, but, compassionate. Brilliant and
seemingly irreverent, and yet, simple. While someone recommended that I read
'The Complete Works of Shakespeare' as a 15 year-old, she recommended that I
read Charles Lamb's abridged version first. When I had begun reading
Irving Wallace, she had suggested that I also read Edgar Wallace. She always
advised that I read good literature. I consider Dr. Meenakshi Tyagarajan to be
the biggest reason for my modest command of the queen's language today.
- Shivkumar Raman
Two Scholarships have been endowed for the Two Best Girl
Students in the field of Economics in the name of Dr.Meenakshi Tyagarajan
Amount--- Rs. 20,000/-
College--S I E S College--Sion, Mumbai
Donor---Shri.Shivkumar Raman*
* Shivkumar is the son of Smt. Mythreyi and Shri.P.Raman.
Mythreyi was the longest associated friend of Meenakshi--over 50 years. And
Shivkumar lovingly recalls the influence of Meenakshi on him and his
intellectual development.
- P.P.Ramachandran
ICICI Bank organised Coin Exchange Melas across 17 branches in Uttar Pradesh
......Mr Jogi Meghanath, General Manager, Issue Department, RBI Lucknow inaugurated the event. These melas were organised to offer free facilities of exchanging currency notes with coins or currency notes to the general public. They are much-awaited events that receive an overwhelming response from people from all walks of life.................
Banking Behemoth: SBI to Merge 5 Arms with Itself
State Bank of India, the nation's biggest lender, will kick off consolidation in the banking industry by combining five associate banks as it prepares to fund the econo my that is on the cusp of a strong a two decades ago. growth like China two decades ago. The combination of the associates will enhance the asset base of SBI to Rs. 21.9 lakh crore, and add 5,658 branches to its 15,143 branches. The combined market share will rise to 24%, from 19%, making it a formidable force. “The timing is very conducive now,“ SBI Chairman Arundhati Bhattacharya told............
Read - ET
Read - ET
India Not The Next China, But Getting There
.......“Among the top 10 banks in the world, three of them are Chinese. Why did that happen? Because the Chinese economy grew and, therefore, the banks had to grow in order to provide credit,” she said. “Things will happen in India if the Indian economy grows. India will need bigger banks. To build bigger banks organically is difficult. So, to do it in an inorganic way by clubbing some of the banks will be the best route,.........
Coordination mechanism by RBI : Better organisation - Better Idea
My View on t "Better regulatory coordination vital":
Last couple of years have seen a welcome rise in the awareness level about the role of regulation and regulators in governance and management of resources in general. Perhaps, CAG Vinod Rai’s 2G report made the beginning of a new phase in the financial history of India. Still, we have seen regulators remaining silent spectators, when their sacred ‘space’ was being encroached by political masters through ‘executive’ actions, which on several occasions did not stand scrutiny, or had to be rushed through back-door maneuverings in legislatures. AADHAAR, National Pension System, coal mines allocation, oil pricing…the list can go on and on, if examples are needed.
As M Damodaran put it, when regulated entities-these include government and public sector-‘move from one unregulated jurisdiction to another’ or find out means to circumvent need for legislative changes, the burden of the regulators increase. In such situations, coordination and fast sharing of information among regulators become crucial.
In the present scenario, in the financial sector, one cannot think of a better organisation other than Reserve bank of India to entrust the responsibility to put in place a coordination mechanism to ensure that all financial transactions higher than a pre-decided bench-mark complies with the regulatory norms of the body responsible to oversee such transactions. Perhaps, the finance minister could discuss this issue during his pre-budget interactions with RBI and other regulators in the financial sector.
- M G Warrier
Slice of History - RBI's Tryst with Partition
............India's central bank was confronted with difficult problems during the period when it was the common central bank for two dominions. However, the RBI incurred the displeasure of the Pakistan authorities who complained that the attitude adopted by India's central bank was `not in keeping with its duty as the banker of the Pakistan government and its currency authority'. The bank ceased to function ...........
Read - ET
Mid-sized firms bear brunt of fund crunch
.............“No one wants to take a hit by lending to companies which do not pay back,” said the official of a large state-run bank. Not wishing to be named, the official added, “But there is no blanket ban on them. When things improve, banks will resume lending.” While the pace of loan growth to micro and small companies and large firms, too, has declined in a slowing economy, that towards the infrastructure sector almost halved in the 12 months ending April, RBI data show. There are around 15 million registered medium-sized companies in India, around 20 million small companies, and about 5 million micro- and tiny enterprises, according to the SME Chamber of India, an industry lobby of small companies........
New law needed
My View on "Write off of loans and offer of freebies - Dr.T.V....":
There must be a new Law against loan write-offs by anybody other than the loan provider. Parliament has more private money lenders whose interests in write-offs would help augment private money lending for farmers. If the governments write off the private money lending for farmers, then all the suicides of farmers would come to a halt. Most farmer-suicides happened in homes that did not have institutional credit. Farmers do not trust the banks as much as the banks do not trust the farmers! Who else except the banks to blame?
- Dr.Yerram Raju
Increase 80C limit, list LIC: Banks tell FM
.........Jaitley was reportedly told that the revenue department loses Rs 31,000 crore every year on Rs 1 lakh deduction, and if the limit was increased to Rs 2 lakh the loss would increase to Rs 62,000, assuming all taxpayers availed the tax benefits. “Every year the finance minister is a mere listener. It was different this year,” said an executive............
Income tax rebates: Salaried can cut their outgo drastically
........Inclusion of registration and stamp duty fees under 80C not only reduces tax liability, but also saves the property buyer from further cash outgo. Also, an individual who has taken a home loan can avail of deduction towards principal repayment in the financial year. This will be above the R1.5-lakh rebate he gets on the interest amount paid towards the housing loan under Section 24. More importantly, even principal payment towards home loans taken from HUDCO qualifies for exemption under 80C. Also, subscription to the home loan account scheme of the National Housing Bank (NHB), or contributions made by an individual to any notified pension fund set up by NHB, also meet the deduction requirements......
Aadhaar enrollment agencies protest, stop work
......The enrollment imbroglio is the latest in a series of shocks for the project in recent weeks, with RBI suspending a plan to mandate Aadhaar-based biometric ATMs and the finance ministry stating that direct benefits transfer (DBT) can work even without Aadhaar. The development is significant amidst uncertainty at the UIDAI headquarters and field offices about the Aadhaar project's future under the new government.........
Read...........
RBI relaxes cap on United Banks loan sanctioning power
United Bank of India (UBI), which scripted a turnaround by returning to profitability in January-March quarter, has been allowed by the Reserve Bank of India (RBI) to consider loan proposals up to Rs 200 crore from 'AAA'-rate companies. The banking regulator had capped the lender's loan sanctioning power to Rs 10 crore following a rise in its bad assets and dip in the capital adequacy ratio...............
RBI introduces liquidity ratios for banks
............“The LCR would be binding on banks from January 1, 2015; with a view to provide a transition time for banks, the LCR requirement would be minimum 60 per cent for the calendar year 2015, i.e. with effect from January 1, 2015 and rise in equal steps to reach 100 per cent on January 1, 2019,” RBI said in a statement on Monday. Banks, however, has been asked to achieve a higher ratio than the minimum prescribed above as an effort towards better liquidity risk management. The move from the Indian banking regulator comes after the Basel Committee on Banking Supervision proposed certain reforms to strengthen capital and liquidity regulations in the aftermath of the global financial crisis of 2008.............
Lenders pitch for co to manage bad loans
...............“The prime concern of the banking sector representatives are long-term financing requirement for the infrastructure sector. Given the scale of the infrastructure projects these days, their gestation period is long and to support such projects in the future, the banking sector has asked the government to see that such schemes are formed.”...........
More Indians see inflation stabilizing: RBI survey
................The current survey, pertaining to the March quarter, was released on Tuesday. It found that 51.2% of the respondents expected prices to “increase by more than current rate” in the next three months, that is up to June. RBI said that in comparison, in the quarter ended September 2013, 74.5% of the respondents had been expecting prices to rise at more than the current rate in the next three-month period...........
Many PSB heads welcome Nayak panel report but with caution: BS poll
...............“The Nayak panel should have taken input from RBI before finalising the report. All the board level appointments are made after RBI’s approval of fit & proper. The selection committee for appointment of CMDs and executive directors is headed by RBI governor though he delegates one of the DG for the interviews. So RBI is also responsible for top appointments. RBI cannot wash off its hands if there is lack of governance in public sector bank’s boards,” said Pratip Chaudhuri, former chairman, State Bank of India..............
Same old problem for PSBs
...........The Nayak Committee addresses only the ownership issue, and the control and interference that comes with it. What about the operational issues in PSBs and the stubborn responses of its huge manpower? Poor customer service, lethargic approach to business development, the "clock-watching" approach of the staff and low productivity have all played havoc with the operational efficiency of PSBs............
DCCBs aid: State wants RBI to move first
.............RBI has rejected banking application of the DCCBs on the ground that they don't not have enough capital to cover the risks. Now, even though the state is ready to provide capital, it wants the RBI to first revive the three banks. But capital adequacy is the very condition on which RBI may grant a licence to revive the banks. An official communique from the state's information department says that the funds will be released if the RBI revives the banks' licences............
HCBL Bank reaches out to micro entrepreneurs
......However, they get a miniscule share of the price paid by consumers, as there is a long chain of middlemen involved. Majority of these artisans are poor and do not have resources to market their products directly. The Bank would allow these artisans to display their finished products in its branches for selling. Last year, HCBL had started opening savings bank (SB) accounts of beggars under financial inclusion and motivating them towards self-employment. So far, the Bank had opened accounts of 150 beggars in Lucknow under the relaxed Know Your Customer (KYC) norms of the Reserve Bank of India (RBI)...........
RBI holds the key to resolving HPL dispute
........Because the polymer producer has been defaulting on its own loan obligations for the past two years, lenders need clearance from the Reserve Bank of India (RBI) to make loans to TCG for its proposed purchase of HPL’s shares. Though TCG is likely going to mortgage other assets as well, RBI’s clearance is mandatory for banks to lend for this purpose, the government official said, adding that TCG has indicated to the state government that it has already approached banks for loans........
Canara Bank expands overseas network to New York
.............With the inauguration of New York branch, the Bank now has presence in 8 countries, namely, UK, USA, Hong Kong, China, Bahrain, South Africa, UAE and Russia. The Bank has plans to open branches/offices in Germany, Dubai, Brazil, Tanzania, Japan, Nigeria and Qatar during the current financial year. Overseas business of the Bank, which is at 5.72% of the total business as at March 2014 is projected to increase to 10% by end of FY15, the Bank said in a statement...........
Needed, a Holistic Approach to Savings
........All savings can then be exempt from tax both at the time of contribution and during the accumulation and growth phase, to be taxed only at maturity, that too if the money is used for consumption. However, if the money is re-invested in another saving instrument, the reinvested amount should, again, be exempt from tax. Moreover, there need be no limit to such tax exempt savings. It makes sense to extend the EET principle to ...........
Banking on following your money’s trail
.........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,” .......
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
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