The Reserve Bank of India (RBI) released timelines for regulatory approvals on Monday. It said it will revert to the applicant if the deadline is likely to be exceeded. Among other deadlines, few included...........
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.
Tuesday, June 24, 2014
INDIA POST LIKELY TO GET ‘PAYMENT’ BANK LICENCE, AWAITS FINMIN GUIDELINES
..........‘’India Post can best carry out operations as a payment bank and it needs to project itself as sush now as the RBI has opened up the banking licences and made it available on tap” AP Hota, CEO and MD of National Payments Corporation of India told The Pioneer. NPCI is the nodal agency set up by RBI to provide and monitor retial payments through various gateways in India as well as overseas. Payment banks can only do rudimentary functions of a commercial bank as they cannot do credit or lending or other financial services that a normal commerical bank would do.”The Government is considering this matter as consultation is going on,” added Hota............
Read - The Pioneer
RBI Limits Users' Hit to Rs 10k in Online Frauds
......The Reserve Bank of India has the last word on banking rules and the directive is part of the code prepared by its Banking Codes and Standards Board of India (BCSBI) unit, which seeks to ensure that customers do not get a raw deal. Banks are usually implacable when it comes to redressing such losses, asking customers to prove their innocence before restitution is made. The new code says that for any unauthorised internet banking transactions, the customer’s liability is limited, irrespective of the funds moved out of the account. An unauthorised transaction is one that doesn’t have the express and implied approval of the account holder............
Banking's Just Got Easier for the Differently-abled
...........ATMs that talk, attached with headphones, Braille stickers on keypads, bank branches with ramps and magnifying glasses, and much more... Thanks to the Reserve Bank of India's (RBI) directive to make branches and ATMs more accessible to physically and visually challenged customers, Indian banks are getting ready to serve differently-abled persons............
Return of the Working Women
......This April, Axis Bank launched a programme called `Re-connect', offering jobs to former women employees who have left the system in the past 10 years, in select states. The bank now plans to take it national. In January, Google rolled out gCareer, inviting qualified women professionals who have tak en a break from active working life for a year or longer to work with the internet giant..............
What’s ‘Form 16’ and what to do with it
..............Every year your employer will issue this document. It is a certificate under section 203 of the Income-Tax Act, 1961, which gives information on the tax deducted at source (TDS) from income chargeable under the head “salaries”. Simply put, it gives details of the tax deducted by the employer. If you have not received your Form 16, you can use the..................
Read - Mint
Read - Mint
RBI asks banks to provide data required by special investigation team
Indian banks must make available information required by a government-appointed special investigation team, the Reserve Bank of India said on Monday, referring to a panel appointed by the government to unearth "black money".........
ICAI plans national conference on UCBs
The National Conference on Urban Co-operative Banks is being organized by Committee for Cooperatives & NPO Sectors (CCONPO), Institute of Chartered Accountants of India on 8th and 9th August, 2014 at ICAI Tower, BKC Mumbai. The Reserve Bank of India will be joint organizer in the program with ICAI. Regulators and leaders of UCBs and seasoned speakers from professional field have been invited to address the burning issues pertaining to Urban Co-operative Banks. Delegates from all over India representing various stakeholders are expected to attend the event, claims a press release sent to the Indian Cooperative...........
Shamrao Vithal Co-operative Bank readying itself to convert into a full-fledged commercial bank
.....Unveiling the bank's new logo in Mumbai on Monday, the bank's chairman Suresh Hemmady said, We are trying to make sure, we are in the right direction. This (unveiling of the new logo) would be the first step towards it (converting into a commercial bank). The banking is awaiting RBI guidelines to start dialogue with the regulator and is also working on a road map internally. "Unless there are clear norms from RBI, we cannot take things forward" said Shrinivas Joshi, managing director o ..
Death knell to co-op banks! Nafscob protests
....... “Though there will be additional burden on the non-Scheduled SCBs and all DCCBs – a matter of concern to many DCCBs due to increase in CRR level, the increase may not really affect their bottom line to a greater extent for the time being. However, any increase in future to keep at par with Commercial Banks without payment of interest will create problems for these Banks as they do not have adequate resources to cope with the changes from time to time.” Nafscob MD further says “you may kindly agree with us that keeping into consideration the peculiar functioning of these banks in the restricted areas, the Banking Regulation Act, 1949 itself specifically allowed them to maintain CRR at the minimum statutory level of 3.00 per cent. We sincerely hope that you appreciate the genuine issue involved in this regard and consider payment of interest on CRR balances.”...........
India needs Gujarat growth model to create more jobs - Charan Singh
..........To immediately revive growth in the economy, a distinct short-term strategy should be devised, which should provide seamless continuum into the long-term. In this context, lessons from the developmental model of Gujarat can be of significance for national policymaking. The ......
The Overseas Deal
.....Recently however in June 2014, the RBI felt it appropriate to revise the limit under the LRS to $125,000 per financial year. The industry is therefore now keenly expecting and hoping that the ODI limit would also stand revised and hopefully reinstated to the full value as previously permitted. As regards the permission available under the FEM CAT Regulations for acquisition of immovable property outside India, the restriction imposed in August 2013 came as a surprise. Further,........
Banks as insurance brokers may not be on Finmin to-do list
........Post this, RBI has set up a committee with representatives from banks and insurers on this model. While the final report is yet not out, sources that the panel in its interim report had suggested that banks should not be mandatorily asked to become a broker and they should be given a choice to exercise this option at their own will. There are several public sector banks that have insurance joint ventures. Hence,..........
Andhra Pradesh tries to get RBI nod on loan waiver
Hyderabad: The AP government is making all out efforts to convince the Reserve Bank of India (RBI) to accept rescheduling of agricultural loans. The P. Kotaiah committee appointed by the state government to study and make recommendations on waiver of farm loans is likely to meet RBI officials on Tuesday. If the RBI accepts rescheduling of farm loans, the banks will reschedule them for 3 to 5 years. AP finance minister Yanamala Ramakrishnudu said once the banks reschedule loans, farmers will be able to get fresh loans and ........
Read - Deccan Chronicle
Read - Deccan Chronicle
Andhra Bank offers overnight lockers
......... Safeguarding the jewellery presented to bride is biggest challenge to the people who hire marriage halls. So, the bank has come up with concept of overnight lockers. The bank would give lockers for safe custody of the bridal jewellery or other valuables presented at the marriage. The lockers would be available on payment of Rs. 200 for overnight. All that they (customers) would have to do is to inform the bank authorities and fill up necessary application. They can deposit the jewellery at the bank lockers before 10 p.m..............
Monday, June 23, 2014
A pat for institutional coordination - Dr.A.Vasudevan
Confused FSLRC
My View on "Needed, more deliberation":
The dissenting notes recorded by 4 out of 7 members who signed the final report are well-argued documents, which inter alia plead the case for maintaining the basic features of RBI and assert the need for allowing the central bank to carry on with its present mandates. One wonders what motivated the FSLRC Chairman to finalize the report ignoring the difference of views expressed especially by K J Udeshi, P J Nayak and Y H Malegam. It would appear that the Commission did not get opportunity to understand the present relationship between the RBI and GOI. The regulatory apparatus plus legislations in financial sector in India are in working condition. It has to be admitted that till Dr Rajan’s emergence as an acceptable leader of the Indian financial sector, the FSLRC’s effort to re-invent the institutional structure of regulatory bodies had pushed the regulators and supervisors with the exception of RBI to a confused state, making intelligent debate difficult.
- M G Warrier, Mumbai
Nayak Committee report: Spotlight on PSE governance
...........The report states that more competitive public sector banks will enhance financial returns to the government with no effective dilution of control. I am uncomfortable with these observations. Should the government stay invested in a commercial enterprise to earn attractive return on investment? The answer is no. The government should continue its investment in a PSE only if it serves public interest. The argument that the government's control will not get diluted with dilution of ownership is not tenable.........
RBI seminar to help banks with FEMA rules
`Investment Affected More by Uncertainty than High Rates'
C Rangarajan has played an influential role in India's economic and monetary policy making sphere for three decades. On reflection, the former governor of RBI, who stepped down after heading the Prime Minister's Economic Advisory Council for close to a decade, says the UPA government's weakness in implementing projects and management of food inflation, coupled with RBI's earlier policy of raising interest rates in baby steps, could have led to the slide in growth. Excerpts from a recent interview ............
Read - ET
Read - ET
Letter to GoI Regarding Denial of 100% DA to Old Retirees and Other Similar Issues
......... he periodical review of Pension scheme is the responsibility of the Managements of the Banks. It cannot be tagged to bipartite settlements which have adversely affected the pensioners and ultimately the pension scheme remains as an archaic one in the Banking Industry. As and when there are improvements in the central Govt. Pension scheme.
- Therefore, they form a separate class and when the pay scales of different cadres of Officers are revised then the up-gradation of pension to the Pensioners Class cannot be denied.
- That when the class of Pensioners is requires to be taken as one class this mini classification is writ large since different classes have been created as on 01.07.1993, 01.04.1998, 01.11.2002 and 01.11.2007 for the present. But since the pensioners are still EMPLOYEES as defined in the Pension Regulations, they are also entitled to updation/upgradation of their pension, which is a DEFERRED WAGE as per the law laid down time and again by Hon’ble Apex Courts therefore, they form a separate class and when the pay of different scales of Officers are revised the wages of this Class cannot be denied..............
Unfortunate to be unresolved
My View on "AIRBEA - Resolution on Increase in Ex-gratia for P...":
It is unfortunate that an enlightened employer like the Reserve Bank of India is dragging this issue and leaving the uncertainty surrounding it unresolved eternally. Associations and several individuals including me have taken up this issue with RBI on several occasions. This is an issue which should not be messed up with wage revision. Here, the affected parties are not able to 'argue' their cases and are at the mercy of the institution. RBI can afford to safeguard the interests of the surviving few and history may find it impossible to pardon further delay in decision-making.This is not an issue to be 'negotiated' with associations and unions.
- M.G.Warrier
RBI should allow these left out ex-rbites as a good gesture on humanitarian angle. RBI has funds sufficient to cope up this just demand.
- Chandrbhan Gupta
People at the seats of administration and enabling decision making by the top management, should also ponder over the issue and display a positive attitude towards reducing the difficulties of the super senior ex-Rbites (who had contributed in no mean way to the RBI's image), so that they get the benefits they richly deserve.
Succession plan
My View on "FinMin mulls fixed 5-year term for PSB chiefs":
It is comforting to find that long last there is some move to ensure continuity of incumbents in top positions for a reasonably long period (now proposed as 5 years). Government should aim at a long term policy for succession plans at higher levels in government and pubic sector and guide private sector which are dependent on public funds and government support to adopt transparent norms for top level appointments.
The policy should, besides factoring in eligibility criteria and skill requirements take into account:
(i) The need to allow extended periods beyond the present retirement age so that any appointee is able to continue at the post for a minimum of 5 years. For the purpose changes in the present retirement age may be necessary. The retirement age in India has not been revised upwards for a long time for various reasons.
(ii) To make succession smooth, empanel prospective candidates sufficiently early and allow her/him to join six weeks to six months in advance of the retirement of the person whom s/he will succeed.
(iii) Make those appointed as CMDs/CEOs and other positions like Chief Justice, CAG etc ineligible for appointment to positions eligible for remuneration for a minimum period of 2 years post-retirement. Compensating them with some allowance or pension during this period would be in order.
- M G WARRIER, Mumbai
Rare collections offer a peep into the past
..................Visitors get to know how coins evolved from stones to glass and metals. The Reserve Bank of India is a prominent attraction with its currencies of various denominations. Banknotes from different countries and from the times of the British India and the French India are also on display.......
Change over
...........On the streets of Chandni Chowk, one of the busiest markets of Old Delhi, I came across some pavement vendors with a spread of a variety of 25 paisa and 50 paisa coins belonging to different eras — 1957 to 2009. Taj, the vendor, gave me a strange look as I picked up a handful of coins just to sense how my grandmother would have felt while buying the daily groceries with these minted treasures or my father when he got a bunch of them on winning a match or performing well in his exams.............
Community Chronicles: A note on old money
...........“The Reserve Bank of India stopped printing them some years ago but each note is clean and crisp still, ideal for a collector like you.” Loose notes per piece are for Rs.10 but if I want a bundle which contains 100 pieces of one rupee note, it will cost Rs.3000,....................
Rare coin auction
..................Gold pagodas in the shape of a bowl, minted by the Chalukyas of Badami from the early Andhra-Karnataka region are to be auctioned by the city-based auction house Marudhar Arts. Rare Ramtanka tokens in gold, probably issued during the Vijayanagar dynasty, are also among those put on the block, said a release from the auction house. A Chola gold coin minted during the reign of Rajendra Chola besides ......
Coins distributed
Following RBI instructions on overcoming paucity of small change, The Kanakamahalakshmi Co-operative Bank on Sunday morning distributed coins in return for currency at the Rythu Bazar at .........
RBI च्या बनावट कॉलपासून सावधान!
मी रिझर्व्ह बँकेच्या कॉल सेंटरमधून बोलतोय, तुमचे डेबिट कार्ड तीन तासांत बंद होणार आहे. ते बंद होऊ द्यायचे नसेल, तर आम्हाला आवश्यक माहिती द्या....'...असा कॉल तुम्हाला आला असेल, तर सावध व्हा. हा कॉल फसवा आहे. रिझर्व्ह बँक कोणाकडूनही माहिती मागवत नसल्याने तुम्ही दिलेली माहिती तुम्हालाच नव्या संकटात टाकू शकते आणि त्यातून तुमचेच आर्थिक नुकसान होण्याची शक्यता आहे. गेले काही दिवस अनेक ग्राहकांच्या मोबाइलवर किंवा लँडलाइनवर अशा प्रकारे फोन येत आहेत. कॉल करणारी व्यक्ती आपण रिझर्व्ह बँकेच्या कॉल सेंटरमधून बोलत असल्याचा दावा करते..........
The customer is not always right
........Reserve Bank of India has come out with “Banking Ombudsman Scheme”, which came into force January 01, 2006. The Banking Ombudsman is a quasi judicial authority appointed by the RBI to take care of consumers’ complaints and has the power to summon both the consumer and the bank and resolve the conflict by meditate. The ombudsman for Maharashtra & Goa currently is Mrs Rose Mary Sebastian. Her official address is.............
Indian Bank to employ jail inmates at its Tihar branch
......“We have been associated with Tihar Jail for the past several years and our branch there today has a business of Rs100 crore. A proposal to employ Tihar Jail inmates at non-sensitive positions in the branch has been approved and will soon be implemented,” ..........
SBI offers Chennai Metro touch cards
........Senior level sources said that the proposal was to have a payment card that will have dual functionality. At one level it will work like a regular debit or credit card and at the same time it will incorporate a chip to allow the card to be used to pay for the metro ride. Unlike credit cards which need to be either swiped or dipped into a chip reader, contactless cards can complete a payment almost instantly and ........
How to e-file Income Tax Returns?
Considering the ever increasing usage of internet these days, the Income Tax Department has made the returns filing procedure easier for us taxpayers by enabling us to file returns electronically by visiting https://incometaxindiaefiling.gov.in/. With the huge number of taxpayers, this comes across as a very practical option. Now before getting any further into how the ITR e-filing procedure works, here are a few things you should be aware of............
Perils of uncontrolled plastic money usage
The ‘buy now pay later’ concept has made significant inroads into the Indian consumer psyche. While making purchases with repayment on instalment basis usually forces one to adhere to some kind of fiscal discipline, using plastic money in the form of debit and credit cards is a different thing altogether. Unplanned purchases from either can have far reaching consequences. While debit cards are considered.............
Expert panel to study drawbacks in TDR scheme
The State government has decided to constitute a panel of experts comprising officials of the Reserve Bank of India, and Urban Development and Planning departments to suggest amendments to the Karnataka Town and Country Planning Act to make Transfer of Development Rights (TDR) more transparent and lucrative for landowners in Bangalore and other cities............
Read - The Hindu
Overdraft will attract foreclosure charges
........This latest directive by RBI brings in uniformity, greater transparency and brings new as well as existing borrowers on the same plane. In other words, the pre-payment waiver directive will benefit existing borrowers as well as new borrowers. So you are within your right, if you meet the criteria explained above, to seek nil pre-payment charges with immediate effect, thanks to the regulatory diktat...........
Finance ministry may veto Shome recommendations on revenue boards
................Finance ministry officials also said abolishing the post of revenue secretary is not feasible as he has the broader vision and perspective while framing tax policies. According to officials, changing the target in line with economic growth is not possible as tax collections always come with a lag effect. Besides, they argue,......
Banks occupy moderate news space on TV compared to advertising budgets: Esha Media
........According to a study conducted by Esha Media Research, State Bank of India (SBI) among all the other banks including the regulator –the Reserve Bank of India (RBI) occupied the maximum space on TV of 20.30 hours in the month of May 2014 that was equivalent to spending Rs 32.73 crore on advertising. “In other words, SBI, which has an annual budget of close to Rs 400 crore as per its annual report, got itself covered on the merit of news worth Rs 32.73 crore,”.......
Read........
ADC asks banks to bring rural areas under Banking Ambit
.............Mr Malik enjoined upon all banks and Govt. Depts. to make an earnest endeavor to improve their efficiency so that the common man who is centre of activities of all the concern is benefitted under various Govt sponsored schemes. The meeting was attended by AGM, RBI, Dinesh Gupta , Director RSETI, K S Bhadwal and other senior officers of Banks and Govt Departments.
MP receives SKOCH Financial Inclusion and Deepening Award
.............The State has written a new chapter of progress through inclusive growth in rural areas. Special attention has been paid to availability of banking services in remote rural area. Economic uplift can be ensured only through financial inclusion, it said. According to the statement, ultra small banks are being opened in the radius of every five kms in rural areas of the state.........
Rule shift sought as microfinance institutions told to eye housing, education loans
........RBI’s efforts come against the backdrop of a sharp decline in poverty levels and a perceived increase in the aspirational level of low-income earners, now seeking to build a better life for themselves and their families. Between 2004-05 and 2011-12, a net of 137 million people, or 15% of the population, lifted themselves out of poverty, the Planning Commission estimated last year, bringing down the national poverty rate to 22%. MFIs, which source funds from commercial banks and offer small loans to low-income borrowers, typically at 24-36%, say RBI’s idea will be difficult to implement within the existing regulatory framework, which restricts not only the amount that can be loaned, but also the kind of lending.................
MFIs showing signs of maturity
...........Indeed, MFin has been acting as a de facto SRO for its members and the RBI recognition merely represents a shift from de facto to a de jure positionm but the task ahead is arduous. In India, often an SRO overlooks its real objectives and tries to play the role of a lobby group. MFin should refrain from doing so as the biggest challenge before it is put its house in order. Nobody else but the MFI industry is to be blamed for the crisis that followed the promulgation of the Andhra law as many companies deviated from the primary job of giving small loans to poor................
Banks’ Top Brass Needs to Develop Customer-Friendly Sense & IBA Needs to Work Towards Their Objectives
.........Whenever, RBI comes with dictates like stopping usurious charges for maintaining minimum balances or banning the pre-payment penalty on loans or credit card late fee payments, it is actually a castigation on banks in general and IBA in particular. Does IBA not feel that such immoral charges actually damage the good public image of banking as a service industry? If it feels so, then what action it has taken to stop banks from charging fees which have to be banned by RBI ? If they feel that banks were right, then why IBA has not the guts to protest against RBI dictates. I am of the firm view, RBI must censure IBA for being mute spectator to such fleecing of customers by banks...........
Depositors are vital too
..............However, no nominee of the depositors, who provide core funds for the banking system, is appointed to the boards. Perhaps this is why bad debts are increasing since every stakeholder, except the depositor, has a say in the formulation of bank policies. The Banking Regulations Act should provide for nominations from this vital segment also, ............
Banks put Rs 21k-cr NPAs on block in 3 months
...........Possibly, this is after many years that NPA sale is being contemplated in the very first quarter of a financial year. Banks typically sell bad loans in the last quarter. However, since all banks rush to sell in the fourth quarter and are keen to complete the deals by March 31, there are chances they do not get the right price. Selling at the beginning of a year increases the possibility of fetching a good price........
Minimising role of politicians turned around state’s top cooperative bank: minister
.............“After objections from the Reserve Bank of India (RBI) over MSCB’s functioning, we dismissed the existing board of directors and appointed IAS officers as administrators. We followed guidelines that no loans should be given to relatives or family members of the board’s directors and that individuals taking loans should have repaying capacity of thrice the loan amount.” “We cannot overlook the fact that money in these banks belongs to depositors,................
Sane advice
RBI’s advisory to the state governments that mass loan waiver schemes would adversely affect the financial health of the banks and ultimately such decisions would lead to financial instability is not only a sane advice. It also reveals AP Chief Minister N. Chandrababu Naidu’s hollow mind as he thinks that the RBI works as per directions of the Centre, and his brinkmanship. Of late, it has become a habit with the political parties to promise the moon to the electorate giving little thought to the financial burden and how to bear it. The election laws must direct political parties to explain how such promises would be fulfilled without troubling public sector banks, or the RBI must debar banks from granting loans based on such reckless promises. Loan waiver discriminates those repaying loans promptly against the wilful or otherwise defaulters and encourages every one not to repay loans. This will be a sad state of affairs.
- Ganti Mahapatruni Rama Rao, Visakhapatnam
Nabard CGM opposes loan waiver scheme
National Bank for Agriculture and Rural Development (Nabard) Chief General Manager Jiji Mammen has expressed strong reservations against waiver of agriculture loans. Mr. Mammen, who was in West Godavari district on Friday and Saturday for a visit, said, “loan waivers across the board will vitiate credit discipline and adversely impact the financial health of banking sector”.........
Govt banks: Higher NPAs may pinch brass' pocket
.............SoI discussions have been concluded with the top management of most of banks and the finance ministry will start sending the letters assigning the targets by the end of this month. The evaluation would be done by the remuneration committee, consisting of the government nominee director, the RBI nominee director and two other directors. The Khandelwal committee on human resource issues in these banks had suggested moving away from the practice of providing uniform financial incentives, arguing each bank had its own unique characteristics and business profile. It stressed the need to give higher weightage to qualitative issues such as change in ..........
Funding worry may keep govt away from NAMCO proposal
..........NAMCO, mooted by Ficci and supported by many bankers, is meant to takeover, recover and rehabilitate the banking system’s stressed assets – non-performing assets (NPA) and restructured assets — in the infrastructure sector. “This proposal will not pass muster with the government. Clearing it may attract criticism and give the government a bad name. Anyway, we have forwarded it to the Reserve Bank of India (RBI) for its comments,” a finance ministry official told FE.......
RBI appoints administrator at Kapol Bank
The Reserve Bank of India has appointed an administrator to run Mumbai-based urban cooperative lender, Kapol Cooperative Bank. This follows ..........
Sebi Getting Flooded With Anonymous, Pseudonymous Complaints: Report
..........Consequently, Sebi has decided to prepare detailed notes on each such complaint and apprise its board, which includes nominees from the government and the Reserve Bank of India (RBI) as also some public interest directors besides its own whole time members. he decision has been taken "in view of the repeated nature of complaints and as a matter of good governance and transparency", ....................
Punjab National Bank Drops Plan to Enter Canadian Market
.......We have been pursuing this for 4-5 years but it did not reach a logical conclusion. So, we decided not to go forward with it," K R Kamath, chairman and managing director of the state-run lender, told PTI. The bank had plans to open a subsidiary in Canada with a capital of Rs 100 crore to serve Indian diaspora as well as to finance bilateral trade and investments...........
J&K Bank opens 2 Business Units, convenes DLRC
......Meanwhile, the bank convened a District Level Review Committee meeting of district Pulwama under Chairmanship of Additional DDC Muneer Ahmad. All the district level officers, bank officials and representatives from RBI and NABARD participated in the meeting. The meeting discussed the achievements under District Credit Plan 2013-14 for the quarter ending March, 2014. ............
Saturday, June 21, 2014
Bank's Board is not above board
.......Board is not above Board is a fact known to both the Government and the RBI. The tax payers and depositors have no say in the appointment of Board of directors and they generally bear the brunt. Board of directors and indisciplined borrwers enjoy merrily. The game goes on.
FinMin mulls fixed 5-year term for PSB chiefs
..........The Union finance ministry is considering a proposal to provide a fixed tenure of five years to heads of public sector banks (PSBs). The aim is more operational stability and accountability. It is also considering changes in the appointment procedure of wholetime directors and revising the criteria for selection of non-official directors on PSB boards..............
Needed, more deliberation
...............Over a year ago, the then Governor, D. Subbarao, sought to protect the RBI’s turf. It is now Raghuram Rajan’s turn to shift the spotlight to what he considers to be ill-conceived recommendations. For instance, the enhanced role being given to ill-equipped and inexperienced appellate tribunals will undermine the role of regulators and paralyse the system. Underlying Governor Rajan’s strong words is the belief that an overhaul of the financial architecture as suggested by the Srikrishna Commission will have to be preceded by more deliberations, a point of view that will be appreciated by Finance Minister Arun Jaitley..........
Counterfeit currency note problem not serious in Madhya Pradesh: RBI
BHOPAL: Problem of counterfeit notes is moderate in Madhya Pradesh compared to other states, going by Reserve Bank of India. But the apex financial institution also pointed out that people are by and large unaware of features that distinguish real currency notes from the fake ones. For every 10 lakh notes, only six counterfeit notes are detected on an average. "We have received only one complaint about a fake currency note delivered from an ATM machine in the past one year," a RBI official said........
Bankers Fall in Love With Sound of Music
.....Most of them have been born into middle-class families which nurtured values like simple living, academic excellence and encouraged children to dabble in fine arts. They have managed to retain the values even after making very successful careers in fields dubbed as dry as finance, which is all about pragmatic decisionmaking with little room for other interests. But these people have found time outside their core profession to seriously pursue their hobbies, which for them have also acted as a stress buster while cutting deals and managing balance sheets and bottom lines............
Read - ET
AIRBREA - Resolution on Increase in Ex-gratia for Pre1986 Retirees
........... The meeting expresses its gratitude
to these elders as a result of whose struggle post- 1 January 1986 retirees are
getting the present pension benefit. While making the most sincere request to
the Respected Governor to enhance the present meager ex-gratia plus Medical
Allowance being paid to them, the CEC makes the following observations:.............
Read..........
Chidambaram favours pruning of PlanCom
.............Describing it as his “personal view” and not that of the party, Chidambaram said, “My personal view is that the Planning Commission should be a much more limited body, tasked with drawing up plans. At the moment, it is too big, flabby and unwieldy.”............
'No fresh funds for state-run banks in budget'
..........The Reserve Bank of India-appointed P J Nayak Committee had called for lowering the government's stake in public sector banks to 51 per cent to meet their capital requirements under Basel III norms and suggested setting up a holding company for all public sector banks. According the proposal, the proposed holding company would hold the government's stake in all state-run banks and raise capital through debt and equity on their behalf............
Why the mobile phone is the next battleground for hackers and payment companies
........Mobile payment companies need to mitigate this vulnerability by implementing inactivity timeouts, auto locking after a particular number of incorrect entries to automatically re-locking the secure element. Dual approvals for high ticket transactions as well as enrolling customers for predefined alerts would be beneficial in mitigation of mobile payment frauds.......
Most govt banks lose the plot on Casa
............The move is aimed at making the banking sector more prepared for any liquidity disruptions in the short run. Understandably, banks with lower exposure to high-cost bulk deposits and higher share of current and savings account deposits will find it easier to meet the norms. Banks having excess government bonds ..........
Banks in Tamil Nadu report 119% credit-deposit ratio
............ Total credit of the banks in Tamil Nadu registered a year-on-year increase of 13.50% by March 2014 and touched Rs 6,05,563.11 crore. The State Level Bankers' Committee of Tamil Nadu today convened its 138th SLBC Meeting to review the banking industry performance in the State. The share of Priority Sector Advances stands at 45.54% as against the national average of 40%. The percentage of Agricultural advances........
Getting financial inclusion back on track
.............Banks will need partnerships to roll out a nationwide retail payments infrastructure, with a clear blueprint of the architecture, licensing (payment institutions), and the commercial model (who pays how much to deposit/withdraw cash). It is useful to reiterate the fundamentals: while banking is an anchor economic sector with fiduciary liability, payments are essentially technology-based systems and processes. The nature of risk and mitigation differs much between..................
Financial Inclusion To Boost Markets
.........However, lack of formal banking prevents large sections of the population from being part of the capital market even indirectly . The National Pension System, which manages retirement savings of people and offers superior returns, is the ideal route for the poor to indirectly invest in stocks. But for the populace at large to start saving in such collective saving pools, they first need to have a bank account.
Read - ET
A long battle against inflation
..............The optimism was also based on hopes that consumer price inflation is on the downward glide path charted by the Reserve Bank of India. The credit default swaps market is also hinting at rising bond yields. The main concerns are well-known:..........
Will linking Aadhaar, India Post revolutionise banking?
Recently Bindu Ananth participated in a panel discussion as part of Network 18′s “Change India: Experiments with Big Ideas” TV series. The discussion revolved around the idea of setting up of a new payments bank, and how linking Aadhaar and India Post could revolutionise Indian Banking.
Watch the full panel discussion - Watch the video
Aadhaar=/citizen card
.........While a citizen card is a good thing, Aadhaar is quite distinct from the home ministry’s National Population Register (NPR) which is where the citizen card would emerge from. Ideally, they should have been part of the same project but they were separated for reasons of speed—right now, for every three Aadhaar numbers, NPR has issued just one. While it is still not clear the NPR’s detailed surveys of an area and its residents before doing biometrics will actually weed out non-citizens—it would be a good idea to see how it works .............
The regulatory mess of commodities trading
...............Comparing trading of commodities and bonds and the role played by incumbent regulators FMC and RBI, respectively, Dr Rajan said, the FSLRC also seems to be inconsistent in its emphasis on synergies and regulatory uniformity. "For instance," he said, "in forward trading where a real commodity is delivered, regulatory oversight over the real markets for the commodity where price is discovered, as well as over warehouses where the commodity is delivered, may be important sources of regulatory synergy. Should the FMC be subsumed under the Unified Financial Agency or would it be better ...............
Bombay HC directs YES Bank to hand over all documents to Madhu Kapur
The Bombay High Court on Friday directed YES Bank to hand over all the documents pertaining to the bank's communication with the Reserve Bank of India (RBI) and Securities and Exchange Board of India (Sebi) on challenging Madhu Kapur's promoter status to Kapur's counsel by Friday evening..........
Canara Bank to beef up asset quality
..........“We have been very proactive on the recovery front. We have three general managers for recoveries and monitoring the accounts. The RBI has come out with new guidelines for monitoring the accounts. While we already had the system in place, we have now a structured way of doing it. With improvements in sentiments, we don’t expect any major slippages in first quarter,”.........
Friday, June 20, 2014
Empowering public sector bank boards
...........When a board is thrust on a PSB without any consultation with the chairman, the composition of such a board may well follow the given legislative structure, but the probability of that board having an optimal composition, with interests of the directors aligned to that of the bank, would be very low. On top of it, if as the Nayak Committee Report observes "some non-official directors are of poor quality or get on to the board with parallel agendas (as is now commonly alleged) the chairman then begins to view sections of the board as unhelpful to the interests of the bank". The ecology of the board room can then no longer remain pure.........
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