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.
Sunday, June 15, 2014
Obituary
Smt D.Sukumaran Nair (63) died in the early hours of 13th June in KIMS Hospital. She was in DOBD and staying in Gokuldham Quarters.
Landline 0471 2720202
Mobile 09446904821
- P.P.Ramachandran
Silver lining
My View on "Wait and watch till August - Dr.S.S.Tarapore":
The timing of Elections, 2014 did cause some dislocation in work relating to Budget, 2014-15 in Delhi and finalisation of Monetary Policy for the current year in RBI. While Reserve Bank of India could factor in the uncertainties and move forward with policy formulation, at ministerial level, things will stabilise only after Finance Minister finalises his maiden budget. As results of any policy measure by the central bank will be dependent on the supportive policy initiatives from the central government, RBI Governor cannot be blamed for the ‘wait and watch’ approach he has opted for the time being. Still, to the extent possible, RBI has made clear its expectations and has not stopped from doing what the Bank considered best in the given circumstances. In the context of the new government’s commitment to honour election promises, many of which will have an impact on resources availability and prices, RBI’s expectation about level of inflation at 8 per cent by January 2015 and at 6 per cent a year later are predictions based on prevailing situation. Depending on the measures by the government to fuel growth and improve the financial position of less privileged, the impact of inflation too will vary, making numbers less relevant. The silver lining is the better coordination between finance ministry and RBI as is evident from the more cordial language used in communication by both. Let us wait and watch.
- M G Warrier, Mumbai
Beware of online banking frauds: Look before you reply
Last month, the Reserve Bank of India (RBI) noticed a fake and fictitious account created as http://www.rbi-inonline.org/savings.html by some unknown persons, saying they were offering various banking facilities. Some fraudsters were asking the public to apply online for opening a “RBI Savings Account”. When this came to the notice of the central bank, they immediately cautioned the public ........
Many solutions
This is with reference to “Wait and watch till August” by SS Tarapore (June 13). Again, the RBI is firm on its stand with regard to inflation control being its pivotal aim and has introduced few changes in the monetary policy. All it did was change the SLR by 0.5 per cent. Of course, the optimism existing in the macroeconomic sphere thanks to the new government could boost the confidence of domestic as well as foreign investors. But steps such as removing the blocks on stalled projects, introducing investor-friendly tax and labour policies and facilitating land acquisition will do more along with tuning up the agricultural sector to reduce food inflation.
- Ramasamy Nagarajan
HBLUFBU Needs to Learn Lessons from Modi
.....The worst part is that even after the meeting was over on the afternoon of 13th June and almost 10 lakh bankers are breath takingly waiting for the circular of UFBU, these leaders are sleeping and I have yet to see the circular till the afternoon of 14th June i.e. after 24 hours of the meeting. I know in earlier settlements they used to take even few days to issue such circular as there was no pressure from social websites. Times have changed, and now cadre excepts that full fledged details to be released within few hours and not after few days. Some of the newspapers have covered the story in today's newspapers, but no circular from UFBU leaders. Are they so busy that they can not draft a letter of one page giving what actually transpired in the meeting? God save the Aam Banker from such retired and slow bankers. UFBU needs to learn their lesson fast.......
Wage Talk 13.06.2014: IBA offered 11%, UFBU demanded 25%
............In this talk IBA has improved wage increase offer of 10% to 11% in total salary which was rejected by bank union representative organization UFBU. Bank employees are demanding 25% increase and are hopeful from new govt. As reported this meeting was just a symbolic meeting in which govt shown willingness towards salary revision of bank employees for which PM and FM both had given assurance..........
Tax treatment: Pension regulator seeks parity for NPS with provident funds
................PFRDA has told the Finance Ministry that NPS withdrawals should be exempted from tax at the time of withdrawal just as PF withdrawals are at the time of retirement. “We have pitched for an EEE (exempt-exempt-exempt) tax structure for NPS on the lines of provident funds. Currently, we have an EET (exempt-exempt-tax) structure for NPS and this reduces the attractiveness of this product,” ...............
RBI sets norms for late fees on cards
In a move that will bring relief to credit card holders, RBI has told banks that they can charge late fees only in the next billing cycle following a missed payment. At present, card issuing banks charge a late fee for any payment made after the due date. The late fee imposed by card issuers ranges between Rs 100 and Rs 700, depending on the outstanding amount...............
Read - TOI
Why revised version of Inflation Index Bond may fail again?
.....In order to earn high post-tax return from these bonds, the investors in the 20 percent and 30 percent tax bracket would always need inflation rates to remain on the higher side, which is against the basic premise on which the RBI has been formulating its monetary policy in the recent years. Though the RBI cannot do much to make these bonds tax-free, it can definitely impress upon the government to consider making these bonds as tax-free.......
eMoney
.............What has helped is the boom in digital payments in India. According to the Internet and Mobile Association of India, such payments are expected to reach R1.2 lakh crore by the end of the year, 40% higher than in 2013. Credit cards will make up 21% of this while the rest will come from debit cards and internet banking. This has a lot to do with the fact that e-commerce...............
CII proposes five-point agenda for revival of NBFC growth
In order to arrest the steep rise in NPA and slowdown in loan growth, Confederation of Indian Industries (CII) has called for a long-term vision for the development of the NBFC sector in India. It has suggested a five point agenda for consideration of the Ministry of Finance and the Reserve Bank of India. The agenda focuses upon......
HC finds RBI terms 'unnecessary'
The High Court of Karnataka has termed “unnecessary,” the conditions imposed by the Reserve Bank of India for the taking over of Amanath Co-operative Bank by Canara Bank. During the hearing of a petition, Justice Ram Mohan Reddy observed that ......
SEBI takes its job seriously
The Securities and Exchange Board of India (SEBI) has taken up the job of investigating the Collective Investment Schemes (CIS) with zest. The regulator hopes to shed its negative image courtesy the Subroto Roy Sahara case. SEBI officials confess that the Sahara and Sharada scams are merely the tip of the iceberg, compared to the 600 CISs they are currently looking into. SEBI has started identifying CIS promoters and confiscating their passports before they flee abroad, as it has happened in the past. “Most regulating agencies like the RBI, MCA refuse to take responsibility when such scams come to light. The SEBI is left with the unpleasant task of cleaning the mess. Which is why we have decided to take our job seriously and are investigating the many companies expected to go bust in the near future,” says a SEBI official.
The Sunday GuardianTop 3 lenders in consortium may need to declare 'wilful defaulter' before penal action
The Reserve Bank of India (RBI) may want at least three top lenders in a consortium to declare a borrower a wilful defaulter before penal measures become applicable and the case is taken up by an appellate authority, banking industry officials say. They believe the regulator might take such a step to prevent banks with a relatively small exposure from classifying any borrower a wilful defaulter as a pressure tactic..........
CAG Report Pulls Up KSFE over Lending Business
.................The State Government thus permitted the KSFE in September 2012 to carry on the existing activity of lending business along with the chitty business. The audit sought clarification from the Reserve Bank of India on the status of the KSFE. “RBI stated that it had clarified on May 2013 to the State Government that it could not conduct chit and lending business simultaneously and advised them to hive off the lending business of the company into a separate entity and register it as a Non- Banking Financial Company,” the report says..........
Is EMI on credit card helpful?
...............While the use of credit cards as a mode of payments has caught on well, most people don't realise the perils of reckless use of credit cards. If you spend beyond your repaying capacity and do not pay your bill on time, most credit cards charge prohibitively high interest rates in the range of 36 per cent and 45 per cent. So, how does one deal with this?...............
At AGM, Kapur questions YES Bank governance
.............In her address at the AGM, Madhu Kapur said she was fighting for the rights she had inherited from her late husband (Ashok Kapur), which had been denied to her. These rights, she said, were enshrined in the Articles of Association and approved by the Reserve Bank of India. “If we want our bank to be sustainable, it will have to be trustworthy at all levels, with corporate governance and transparency being truly observed at all times,”...........
Friday, June 13, 2014
Wait and watch till August - Dr.S.S.Tarapore
Reserve Bank of India Governor Raghuram Rajan had to set out the second bi-monthly monetary policy for 2014-15 on June 3, playing his cards blind. Normally, by this time of the year, the Budget is announced and the task of the RBI becomes clearer. This year, because of the general election, the Budget has been scheduled for early July. As such, the RBI had a tough call to make. Given the circumstances, the RBI cannot be faulted for its somewhat emollient monetary policy stance.............
Banking on governance
.................... There is a risk of the report getting lost in the abundance of official and non-official recommendations and suggestions on financial sector reform that are now available to the new government. On the other hand, the committee’s report might well be the blueprint that a new government that is keen on reform might consider adopting, albeit with modifications. The report has already become controversial, with major bank trade unions threatening to go on strike against its key recommendations that are centred on the dilution of government ownership in public sector banks ...........
Country's first payment bank to come up soon: RBI
 |
| "I know that you are not happy that we have given licence to two (entities). We will come out with guidelines on universal commercial banking, which will be not be a single window, but it will be 'on tap', |
Private banks' work culture
RBI Deputy Governor H R Khan on Thursday said chasing growth with a pressure cooker-like work culture might put private banks in a tight spot and dent their image. Khan added it might result in the young generation's dislike for banking profession............
‘Private banks must focus on retaining and managing talent’
.............Speaking at the ‘Banking, Financial Services and Insurance Conference’ organised by SBICAP Securities, Khan said that banking has become a hated profession among some youngsters. The RBI Deputy Governor’s observations are significant as they come in the backdrop of a large private sector bank reportedly issuing pink slips to about 1,200 employees. Referring to the 4Ps in banking, Khan said if a bank has excellent products, excellent processes and excellent partnerships, but not the people, then all its efforts (to grow business) will fail...................
Payments bank could cause regulatory arbitrage, SBI says
The payments bank proposed to be allowed by Reserve Bank of India will hurt existing "universal" banks as they will offer products which are cross-subsidizing other services. She also said that there would be an element of regulatory arbitrage as a payment bank would invest only be investing in government bonds. Speaking at a conference on banking and financial service organized by SBI Capital Markes, Bhattacharya said, "There is an element of cross-subsidy in services provided by a bank. The payments bank will not have to provide the cross-subsidy. We will have to find ways to.....
After weak response, RBI now plans revamped inflation bonds
The Reserve Bank of India (RBI) is planning to revamp the inflation-indexed bonds which have failed to attract retail investors. “We had launched inflation-indexed bonds (IIBs) that were not successful. We are coming out with the revised version,” RBI deputy governor HR Khan said...........
Not considering raising FII debt limit in govt debt "right now": RBI
India is not considering raising the foreign investment limit in government bonds immediately, Reserve Bank of India Deputy Governor H.R. Khan said on Thursday. "Right now there is no such discussion," Khan said, in response to a question on raising the foreign institutional investment (FII) limit in government debt, on the sidelines of a banking seminar......
Closure of public counters in RBI - Mass casual leave
United Forum of Reserve Bank Officers & Employees issues circular dated June 11, 2014........
KYC relaxation a big boost for financial inclusion
....."Currently RBI is relaxing norms to open up the bank accounts and this is the first step in the stage of financial inclusion. Once this is done the second step is going to be to ensure that these accounts remain active and made productive by using other basic and advanced financial services,"....
Non-performing policies?
...........The government and Reserve Bank of India need to consider the various pros and cons of separating NPAs from public sector banks. In the banking business, non-recoveries are a part of the process and the provided remedies are improving loan origination and writing off the unrecovered loans. The NAMC proposal also shows the weakness of the Indian banking policy formulation..........
Inflation eases but monsoon un-eases
...........Since there are upside risks to food inflation and core inflation is already ticking up, it may be a while before the Reserve Bank of India (RBI) cuts interest rates to boost growth.
Bandhan - RBI may rethink
"Prof Yunus quoting examples of Raiffiesen Bank Internationl AG, Societie Agricole SA and others has highlighted the harms of providing general banking licence to MFIs which would make them move away from serving the underserved and unserved. He has rather recommended for special banking licence to MFIs. I have also been voicing similar concerns in my responses to the action of the RBI providing banking licence to Bandhan, the MFI. If Bandhan is going to function as a full fledged commercial bank, then MF portfolio would be just one of the asset side items of the Bandhan Bank. It would just comply with the PSL requirements of RBI. In about a decade, it would also go the Raiffeisein Bank and others. Sure, this may not be the objective of the RBI in having granted banking licence to Bandhan. Hope in the light of the observations of Prof Yunus, at least now, the RBI may rethink on its decision in granting the general banking licence to Bandhan and convert it as a special licence making it to function on the lines of banks like Bancosol, Bolivia, Grameen Bank, Bangladesh etc."
- S.Santhanam
Bharatiya Mahila Bank recruiting for 200 posts of Probationary Officers 2014
Bharatiya Mahila Bank Limited has invited job applications for recruitment to the post of Probationary Officers in Junior Management Grade/Scale I (JM G/S -I). Interested and eligible candidates are required to apply for the job before June 25, 2014..............
Bank of Baroda - Appointment and Cessation of Director
...... the Central Government vide their letter Dated June 10, 2014 has appointed Smt. Surekha Marandi, CGM, RBI, as Director of Bank of Baroda vice Shri. Sudarshan Sen, CGM, RBI, with immediate effect and until further orders........
Soon, you won't need smartphone for mobile money transfers
.........Finance Minister Arun Jaitley might next month launch mobile banking services for people not using smartphones. The move is aimed at pushing financial inclusion in India and bringing down banks' cost of servicing clients. Such a service will also reduce the transaction cost for those bank customers who are forced to visit a branch every time they have to transfer money from an account to another as they do not have smartphones or internet access........
Cyber Security Of Banks In India Needs Strengthening
............RBI has also mandated establishment of Steering Committees on Information Security by Banks in India and appointment of Chief Information Officers (CIOs) for all banks in India. However, banks in India have failed to comply with the directions of RBI so far and even RBI has allowed them to take this liberty. In effect, this means that there is neither a legal framework nor any compulsion to ensure cyber security of banks in India. Naturally..............
mRUPEE partners Infibeam to launch online retail e-commerce
.....This is the first time in the industry that a dual payment gateway has been introduced to give the customer two choices for making payment from an mRUPEE wallet and/or net-banking, debit card and credit card. This service will be available to both B2C and B2B customers. Another first in the industry is that a new retailer-assisted model has been introduced to facilitate those users who are not so technology or internet savvy. This would help the customers to benefit from offers and discounts available to online user community............
Court seeks RBI’s stand on merger of Amanath, Canara banks
The Karnataka High Court on Thursday asked the Reserve Bank of India to clarify its stand on the two conditions imposed by it for the merger of loss-making Amanath Cooperative Bank with the Canara Bank...................
Madhu Kapoor can challenge Yes Bank AGM resolutions in court: HC
The Bombay high court on Thursday allowed Madhu Kapur, widow of Yes Bank Ltd’s co-founder Ashok Kapur, to challenge in court all the resolutions that are likely to be passed in the annual general meeting (AGM) of the bank on 14 June. The court was hearing a chamber summons filed by Kapur, seeking a stay on several board resolutions that have been proposed to be passed in the AGM......
Thursday, June 12, 2014
Why there's chorus for more accountability for regulators
.............Given that certain regulators have more regulatory freedom than others, there has been a void in fixing proper accountability of these agencies. Many former regulators and experts believe accountability through the line ministry is not good enough. Former RBI governor D Subbarao told Governance Now that making the central bank directly accountable to parliament is important. In fact, prior to his retirement in September last year, he had said that while the RBI Act does not lay down any formal framework to ensure accountability, it does follow “certain good practices (which) have evolved over the years”. Subbarao’s list of good practices included explaining the monetary policy rationale, post-policy conferences for media interaction, and appearing before the parliamentary standing committee on finance, among others. But he maintained that these weren’t enough to ensure complete accountability.................
Economic challenges for the new Govt. - Charan Singh
..........The monetary policy in the country plays a very important role in preserving the value of the currency. The RBI follows a multiple-indicator approach............
How Raghuram Rajan Helped Me Have Better Biryani
.............Thanks to the new rules, I can concentrate on making people around me "moneywise". Wondering what’s the connection? A month ago, I had promised my cook that I would help her open a savings bank account and a Public Provident Pund (PPF) account so that she could earn better returns on her savings. A happy cook is the most valuable asset for any work from home mom you see! Armed with her documents such as voter ID, Aadhaar card et al, I visited the bank close to my house. "Sorry madam, her bank account can’t be opened until there is a proof of current address," said the bank manager, thereby destroying my hopes of having a happy cook. Being a migrant worker from a village in Maharashtra, she doesn't have a registered house agreement or lease agreement as valid proof. Now thanks to the RBI, I will have a cook with better savings, and a husband with better meals! Thank you, Mr Rajan!
Expanding Access to Finance for Small Businesses in India: A Critique of the Mor Committee’s Approach
The first blog in this series highlighted the context of the Mor Committee’s recommendations and the significant gap between the supply of and demand for credit for small businesses. The second blog in the series examined the role of the banks, development finance institutions and non bank financial institutions (NBFCs) to examine why they have been so backward in coming forward to meet this gap. This concluding blog looks at the ways of measuring access to finance for small businesses.............
Read - MicroSave
Read - MicroSave
NBI to host NCIA
KATHMANDU: National Banking Institute (NBI) is organising a one-day National Conference of Internal Auditors (NCIA), in Kathmandu, on June 20. The conference will primarily focus on risk-based audit in Nepal’s banking and financial sectors. Theresa Karunakaran, General Manager of Department of Banking Supervision at Reserve Bank of India (RBI), will be the international resource person for the event, as per the press release. Karunakaran has given trainings to large number of employees of RBI and National Institute of Bank Management and has represented RBI in various international seminars related to internal auditing.
RBI reviews UCBs performance in J&K
The 15th meeting of the State Level Task Force on Urban Cooperative Banks (TAFCUB) was held at RBI, Srinagar under the Chairmanship of K K Saraf Regional Director for J&K Reserve Bank of India. The meeting was attended by Kamla Devi, Special Secretary, Cooperative Department, J&K Government, Anjana Tikoo, Additional Registrar, Co-operative Societies, Subhash Gupta, Chief Executive, National Federation of Co-operative Urban Banks, New Delhi, A.K. Mattu, General Manger, Reserve Bank of India, Jammu, P.N.Das, RBI, Central Office, Mumbai and CEOs of Urban Co-operative Banks operating in the state of Jammu and Kashmir. The meeting reviewed the performance of the Urban Co-operative Banks (UCBs) in the state of Jammu and Kashmir. The latest policy developments in the area of Urban Banking Sector and their specific issues were discussed in the meeting..........
Read..........
Read..........
WRDS Best Paper Awarded for Research on Historic Bank Failure and Implications for Current Bank Policy
PHILADELPHIA--(Business Wire)--Wharton Research Data Services (WRDS), the leading data research platform and business intelligence tool for corporate, academic and government institutions worldwide, is proud to announce the winners of the Wharton-WRDS Best Paper Award in Empirical Finance. The 2014 Best Paper Award winners, Raghuram G. Rajan, Governor of the Reserve Bank of India and Distinguished Service Professor of Finance at the Booth School of Business at the University of Chicago, and Rodney Ramcharan, Chief of Financial Studies at the US Federal Reserve Board, explored bank failures during the agricultural collapse of the 1920s, leading up to the Great Depression. The award for their paper, Financing Capacity and Fire Sales: Evidence from Bank Failures, will be presented to the researchers on June 17 at the upcoming Western Finance Association (WFA) conference.
CAFRAL - Conference on Derivative Markets – Issues and Challenges
.......The objective of the program is to deliberate on the strategies, challenges and issues before the banks for developing and deepening the Derivatives Markets in India, given the dynamic nature of our exposure to international and domestic financial markets..............
Change in Directorate
.........The Government of India, Ministry of Finance, Department of Financial Services, vide its notification dated June 10, 2014, has nominated Shri G. Sreekumar CGM, DGBA Department of Government and Bank Accounts, Reserve Bank of India, Mumbai, on the Board of Bank of Maharashtra with immediate effect ..............
No choice
My View on "Many PSB heads welcome Nayak panel report but with...":
Shri Chaudhry is perhaps not aware how the Board members are selected. Most of board members are appointed by MoF who are political appointees. As regards CMD and EDs , it is like our election system where voters have no choice. RBI cannot do much as MOF chooses candidates who are put through interview. Sh Chaudhry may be aware in a few cases RBI Governor put his foot down in appointment of SBI chairman and ultimately RBI prevailed . I agree with him but generally RBI has to go with names proposed by govt.
- Ravi Sharma
आरबीआय निरीक्षकाचा अटकपूर्व जामीन अर्ज उच्च न्यायालयाने फेटाळला
मुंबई - पेण अर्बन सहकारी बॅंकेचे लेखा परीक्षण रिझर्व्ह बॅंकेच्या वतीने करणाऱ्या आरबीआय निरीक्षक अब्दुल बरी खान (ए. बी. खान) यांचा अटकपूर्व जामीन अर्ज मुंबी उच्च न्यायालयाने फेटाळला आहे. आरबीआयच्या या निरीक्षकाने जाणूनबुजून पेण अर्बन बॅंकेत होणारा आर्थिक गैरव्यवहार नजरेआड केल्याचे सकृतदर्शनी दिसत असल्याचे न्यायालयाने यावेळी सांगितले आहे. अब्दुल बरी खान यांच्यातर्फे ऍड. अमीन सोलकर यांनी, सरकारतर्फे ऍड. घरत यांनी तर या अटकपूर्व जामीन याचिकेला विरोध करत हस्तक्षेप याचिका दाखल करणाऱ्या ठेवीदारांच्या वतीने ऍड. मंदार कुलकणी आणि श्रीराम कुलकर्णी यांनी युक्तिवाद केले. ........
RBI Pilot scheme to allow withdrawals from semi-closed mobile wallets
..............Semi-closed mobile wallets, which were once hailed as weapons of financial inclusion as they do not require the user to have a bank account, have one noticeable drawback: a user can add cash but can’t draw it out. The Reserve Bank has a long-held the view that letting telecom operators to offer cash-out facilities for their mobile wallet users would allow the companies to bypass the banking system..........
Rupee has been a very strange player
.........Obviously now the conjection in the market, I do not have any first hand information, only second hand information is that RBI has been a big buyer both in the spot in the forward markets. It has absorbed more than Rs 14,000 crores in the last three days. RBI was going to take action. Raghuram Rajan has said that he does not like global monetary policy changes and that India has to react and obviously, he has set up a team to say "Do not let this affect us" but the rupee has been a very very str ..
Muhammad Yunus backs MFIs for special banking licence
.......... At present, Reserve Bank of India (RBI) regulations do not allow MFIs to collect deposits from the public. Yunus, however, welcomed RBI’s decision to give a licence to microlender Bandhan Financial Services Pvt. Ltd to start a new bank. But he expressed reservation on the wisdom of giving a full banking licence to microlenders. “If you give the full banking licence then you will be tempted to move into other direction. So, you give a limited banking licence allowing taking deposits only for the purpose of lending money to poor,” Yunus said..........
RBI guidelines would constrain growth of banks with weaker franchises
.........."The guidelines will push banks towards more stable sources of funding and in turn towards lesser wholesale funding and greater granularity in deposits. Banks with weaker liability franchises will have to accelerate their liability franchise build-up. The guidelines will likely avoid build-up of systemic risk by limiting the ability of banks to grow on back of wholesale funding,"...........
Lost Aadhar
My View on "Aadhaar enrollment agencies protest, stop work":
It is impossible to retrieve your aadhaar card number if you happen to loose. In a number of cases the aadhaar cards got misplaced courtesy postal authorities and it has not been possible to generate duplicate with the same parameters. What is usefulness of the system if you cannot regenerate the profile or number of a member. I think. It is putting the crores of rupees into drain.
- Ravi Sharma
Police on alert after spurt in fake note seizures
............“We are investigating these instances, but the truth is that tracing the source of these fake notes is difficult. In most cases, persons caught with the notes turn out to be just carriers, with the notes having been passed on to them through at least four agents. The investigation sometimes hits a dead end when we find that the original source is from outside the country,” ........
Higher excess SLR to help banks meet LCR norms
........"While the mandated is to keep SLR at 22.5%, most banks have been operating at a higher level of 28-29%. And these banks will stand to gain as they can either liquidate it or lend it to RBI on the repo window and meet the new liquidity requirements as and when the need arises." However, it is because of the low credit demand that banks have been parking additional money in SLR. But when........
Will Setting Up of National Asset Management Company Solve NPA Problems of Banks in India
........Government announces waiver scheme from time to time for electoral gain. As a result borrowers of the bank willfully default in repayment of bank loan. Quantum of Non Performing Assets known as bad assets in public domain continues to rise year after year in all public sector banks. Then process of compromise and write off starts at bank level and again there is unhealthy transaction of money between bankers and borrowers or between brokers and officers who decides to sanction sacrifice loan amount. Ultimately culture of non-re payment of loan by borrowers back to banks takes the root and bankers have to suffer huge loss due to high provisioning and due to rising NPA. For this purpose.............
PSU banks have to stop becoming piggy-banks for politically friendly businesses
.........."The other big worry is the health of PSU banks – all of which are owned by the taxpayers and public of this country, but seem to have been run like some people’s personal fiefdoms - with the consequence that lakhs of crores of non-performing assets (NPAs) dominate their balance sheets and write off taxpayer equity. Regulatory competence here again needs to be examined which ..........
Banking Reforms – The Right Direction
..........RBI shall confine its role to determine the broad policy framework for various banking functions and shall not poke its nose into the minute details of their implementation. Thus, RBI’s role vis-à-vis other banks will be restricted to 1. Policy maker, 2. Regulator, 3. Bankers’ bank and 4. Lender of the last resort. Currency Issue and Management will be an additional function of the nation’s central bank. RBI must closely monitor banks only in a select, critical areas and stop interfering in other areas of banking. RBI must determine the range of interest rates i.e. the maximum and minimum thresholds only. Individual Banks must be given full freedom to fix their own interest rates and service charges themselves within this range/band in a transparent manner. ......................
Read..........
No Difficulty in Merging With SBI: State Bank of Mysore
Sharad Sharma, managing director of State Bank of Mysore, one of the associate banks of SBI told NDTV that he does not see much procedural difficulty in merging with State Bank of India. If the proposed merger goes through, it will reduce operating overheads of both the banks, he added...........
Sebi seeks MF liquidity window
............Interestingly, the proposal comes at a time when RBI has been giving indications that it plans to shut the repo window for banks as well. RBI had opened a repo window for mutual funds in 2008 and 2013 to help deal with the redemption pressure for liquid schemes. The first was prompted by a severe liquidity crunch on account of the global financial crisis..........
Modi's reforms 'may lift millions out of poverty
.........In a DW interview, Charan Singh, economist and Reserve Bank of India Chair Professor of Economics at the Bangalore-based Indian Institute of Management, says that if properly implemented, the reforms are set to increase economic growth to an annual rate of eight percent or more, potentially lifting millions of people out of poverty.
DW: What are the strong points of Narendra Modi's economic program?
Charan Singh: This is an ideal resolution made by a government which was brought to power with a thumping majority. The recently elected PM - who has been credited with driving Gujarat's economic growth as chief minister - is a man of experience. His no-nonsense attitude to reforms and governance is known to all.............
ICICI Bank Issues Pink Slips to 1,200
...................... “Once in three years, it is the bank's strategy to look at the larger space and see if there is a need to merge or split jobs,“ said Ramkumar. “That leads to some redundancies.“ Although ICICI Bank is known for its toughness when it comes to eliminating inefficiencies, it did not cut jobs during the economic slowdown in 2012-13 and in 2008-09. It also exempts staff on maternity leave, and those whose children are taking tenth, or 12th class board examination. However, job cuts at ICICI Bank may be good news for rivals .........
Read - ET
IOB to open second branch in Bangkok in early July: Narendra
.....This state-owned bank also plans to soon launch a qualified institutional placement (QIP) issue to mop up between Rs 1,000 and Rs 1,200 crore, he said. The second Bangkok branch will become a reality more than six months after the Reserve Bank of India's approval for the same...........
Jaitley’s thank you note to middle class?
.........Though Jaitley has also ruled out any mega dole outs to individual tax payers such as exempting income up to Rs5 lakh, there is a high likelihood of increasing the exemption limit, according to senior ministry officials. These and other initial indications from the finance ministry give enough indications that Jaitley’s will be a budget tailor-made for the middle classes. What is not clear yet is whether welfare measures initiated by the UPA government will be cut down because it would mean that the budget will be fattening the wallets of the middle class while depriving the poor of the little dole they get from the government.......
Enjoy today, but not at the cost of your tomorrow
.........Moreover, this irrational spending behaviour seeds misunderstanding about money’s acquisition, accumulation and use in the minds of our children. They are nudged towards believing that money comes easy and can, therefore, be spent easily. Since many of our expenses revolve around children, it’s critical that they understand the dynamics of money early in life.........
RBI: Every 3rd new ATM be disabled friendly, talking with Braille keypads
..........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............
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...........
Subscribe to:
Posts (Atom)