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, July 3, 2014
UN special envoy hails RBI's work on financial inclusion
Poverty definition immaterial for financial inclusion: Raghuram Rajan
.........“It doesn't matter that we have a precise definition. There's so much demand for financial services in the country that we don't need to delineate 'you get it, you don't'. Everybody needs it,” .............
Governance in the corporate sector - certain perspectives - G Padmanabhan
Valedictory address by Mr G.Padmanabhan, Executive Director of the Reserve Bank of India, at the 15th National Conference of Practising Company Secretaries (PCS) on the theme "Practising Company Secretaries: The Facilitator for Corporate Growth", Mumbai, 27°28 June 2014
....During the past two decades, the importance of good corporate governance has come to the fore. The concern has been reinforced, particularly as it relates to the financial sector, in the backdrop of the global financial crisis. Suffice it to say here that it essentially comprises acting in a manner as to enjoy sustained trust of all the stakeholders which can broadly be grouped into four categories: the owners, the lenders, the customers and the regulators. The literature on corporate governance is voluminous and I too have spoken about it elsewhere. It is not my intention to go into the principles and practice of sound corporate governance here today. After jogging my mind about the issues that I should flag to an audience like this, I concluded that, given my background, it might be worthwhile to talk about............
गोल्ड बॉन्ड संभाल सकते हैं आर्थिक हालात - एस एस तारापोर
Centre must set up gold bank, deposit accounts to check smuggling: Assocham
.............The industry chamber has mooted a proposal in this regard to the finance minister, nudging him to consider unveiling it in the upcoming Union Budget. "The gold bank would procure and retain gold abroad through offshore foreign currency borrowing. Using this gold from the gold bank, scheduled commercial banks can offer gold deposit account to their retail customers. finance minister could consider announcing it with the Budget," Assocham president Rana Kapoor said...............
RBI Seeks Quotes to Swap Gold to Improve Reserves Quality
..............The apex bank said the operation would "standardise the gold available with RBI in India with respect to international standards like London Good Delivery" and the gold acquired would be delivered to its overseas custodian, the Bank of England. Under the leadership of Governor Raghuram Rajan, appointed last year, the RBI has sought to modernise its market operations and improve the management of gold and foreign currency reserves that are worth a total of around $315 billion................
Grand farewell to the brand persona
United Forum of Reserve Bank Officers' Association & Employees, Belapur had organized a grand farewell to its beloved leader. The pictorial history of Shri Madan's journey of dedicated working in RBI captured from time to time was displayed near the stage. Aesthetic rangolis added colours to the event. The proramme commenced with traditional deep-prajwalan followed by garlanding of statutes of Chhatrapati Shivaji Maharaj and Bharat Ratna Dr. Babaseb Ambedkar. Shri Keshav Jagtap, Secretary, AIRBOA welcomed the dignitaries on the dais who were felicitated by the United Forum leaders of the Belpaur unit.
Singing to the tunes of a novel concept - 'The Belapur Signature Song' written by Shri Madan Khadgi was presented
by the staff. Then
Shri Madan Khadgi was felicitated by the United Forum, Belapur with a huge
garland (colloquially called as "Ajgar Har") and a traditional turban
(in Marathi "Feta").
The
dignitaries and the staff could not stop themselves in describing the good qualities of brand persona Shri Madan Khadgi, his ability to write, direct, produce and acting in the drama, to name the few.
His unbiased and selfless leadership qualities were praised by one and
all. Madan's balanced dual role as a
personnel officer of the Bank and trade union leader proved to be two sides of one coin. General Manaer (O-I-C) Shri Ajay
Michyari had special words for him. "Shri Khadgi speaks what he thinks and he thinks first and then speaks" Shri Michyari said and further added that Madan played both the roles of Personnel Officer
and Union Leader impartially. A grand farewell to the brand persona ended with vote of thanks by Shri Shashikant Pawar, Assistant Manager.
- Shashikant Pawar
- Shashikant Pawar
Achhe Din (kab) aanewale hai?? - K.N.S.Unni
Please refer to plea of Shri.P.P.Ramachandran to Governor Dr.Raghuram Rajan. Beyond doubt there must be a close relationship between the Regulator (RBI) and the Finance Ministry. A “Give and Take” philosophy must imbue their connection—not animosity. Currently the atmosphere one suspects is vitiated by hatred and suspicion. In the past many of our Governors stepped into RBI after serving as Finance Secretaries which inevitably resulted in RBI culture being modelled to suit the dictates of the mandarins of the Finance Ministry. However Dr.Jalan and Reddy did their best to arrest the imposition from the Finance Ministry. We hear that a decision was taken,may be five years ago, to amend the pension regulations but between them the RBI and Finance Ministry moved the papers back and forth for a long time until the day the then Finance Minister who attended the Board Meeting asked the Governor and the Secretary dealing with the case to have a one to one meeting and find a solution. My humble query to the powers that be is simple-- whether such a lot of time should have been wasted to the great detriment of the old and dying retirees and also why the Treasury and Central Bank did not adopt an attitude of give and take to solve the issues long long ago—before hundreds of Retirees joined the Maker. Happily the scenario has changed and we have a new government under the leadership of one who promises us Achhe Din. I trust that the darkest period in the life of retirees is over and day light would soon come.A happy sign of Ache Din is perhaps the reshuffle of Secretaries in the Ministry. The insistence of the Government that the RBI should revise the pension only once in ten years whereas the wage revision would be once in five years raises the question whether we are back ward looking or forward looking Rather than pull the RBI retirees back to the level of Government employees a forward looking move could have been to reduce the ten year period prescribed for government employees to five years thus making both groups happy. One should be pardoned for expecting the Government to add to the welfare of the working class rather than abridge it.
- K.N.S.Unni, Adviser (Retired)
- K.N.S.Unni, Adviser (Retired)
RE 1 COIN DELAYS YATRA WORTH CRORES
The temple, the devotees and the state pumped in undiluted devotion and crores of rupees to make the 137th chariot procession of Lord Jagannath in the city a grand success. But a Re 1 coin delayed the annual fair that is normally organised with military-like precision and months of preparation. ............
No signal yet for chariot wheels
My View on "FINDING A REPLACEMENT FOR CHAKRABARTY":
Reserve Bank of India is one statutory body in the country which has been able to withstand the pangs of succession issues at the top for more than 7 decades of its existence, thanks to the maturity shown by those in charge of governance in Delhi. Recent developments in relation to filling up of top positions in judiciary, executive including those like state governors, statutory bodies and public sector organisations signal the need for transparent and rational succession plans.
Developments like easing out of a Deputy Governor (Subir Gokarn) for no fault of his and a short-lived controversy about selection of a Deputy Governor from inside and the present delay in deciding on filling up of the vacancy caused by Chakrabarty’s resignation brings focus on the need to ensure continuity at the top in organisations like RBI and perhaps a quick review of the selection and placement procedure at higher levels. Perhaps the pool from which selection is made may need some change and the age profile (raising the upper age limit by 3 to 5 years from the present ‘normal’ at 62 years) need a review.
Formulating and implementing succession plans for top government/public sector jobs with professionalism and efficiency in a graceful manner is imperative for allowing the institutions to function with reasonable functional autonomy within the legislative mandates.
Another point is that it will be next to impossible to attract talent to these government positions, given the meager remuneration offered. It is time to revise this, factoring in market realities. The present practice has resulted in compromises on quality and the nation can ill-afford this state of affairs.
- M.G.Warrier
Lord Jagannaath's chariot wheels move very slowly and the Lord for a week from yesterday is in hibernation and would be back by 9th July. Hope the new Dy. Governor's appointment would be announced!!
- Yerram Raju
Bankers Wage Revision in Positive Direction: UFBU Representation and Govt indication
.....As information received there are difference of opinions between bank employees unions and employees on hike of salary percentage When the demand was raised in 2011 the hike of 25 % was reasonable but for today its required to be 35% minimum. As [per industry sources, the earlier govt was not in mood of settlement due to various political and hostile attitude but new govt approach is seems to be practical and bank employees wage revision is expected to be finalized in August 214 and bank employees may get increased salary from October 2014.............
Timely suggestion
My View on "Review the RBI - A.Seshan":
This is a timely suggestion.
It would be worthwhile to revisit the preamble of the Reserve Bank of India Act, 1934 which reads asunder:
“An Act to constitute a Reserve Bank of India.
Whereas it is expedient to constitute a Reserve Bank of India to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage;
And whereas in the present disorganization of the monetary systems of the world it is not possible to determine what will be suitable as a permanent basis for the Indian monetary system;
But whereas it is expedient to make temporary provision on the basis of the existing monetary system, and to leave the question of the monetary standard best suited to India to be considered when the international monetary position has become sufficiently clear and stable to make it possible to frame permanent measures;
It is hereby enacted as follows: -”
Beyond some cut and paste, because of changes in the institutional structure in the financial sector or external policy compulsions, the RBI Act has not yet been subjected to the comprehensive review, envisaged in its preamble.
- M.G.Warrier
Plea for ‘no tax regime’ for pensioners
The Vellore Institute of Development Studies (VIDS) has urged the Central government to introduce a bold ‘No Tax Regime’ for all pensioners during the forthcoming Union budget, in order to enable the pensioners to lead a peaceful retired life. It also pleaded for exemption from income tax on all retirement benefits, including lump sum payments and monthly pension...................
Little tax relief on the cards
............Tax experts say the government might not increase both the limits substantially, though a total increase of at least Rs 1 lakh crore is needed, as persistently high inflation had eroded household savings. "The government should give some benefit to people; there might be other ways to offset the revenue loss by cutting subsidies, higher disinvestment or improving compliance. If it is raised to Rs 3 lakh, it is a nominal increase," said Divya Baweja, senior director, Deloitte...........
Inter School Quiz
The preliminary round of the All India Inter School quiz conducted by the Reserve Bank of India will be held in Karnataka at the following places between 9.30 a.m. and 12.30 p.m.: Shikshakara Sadan Auditorium, Kempegowda Road, opposite Cauvery Bhavan, Bangalore on August 14; Navajyothi Sabhanagana, JSS College for Women, Mysore, on July 28; and Loyola Hall, St. Aloysius Pre-University College campus, Mangalore, on August 1. Schools and colleges can send in the entries of a two- member team. The last date for registration is July 18. For details, email:hrdbangalore@rbi.org.inor call 080-22180416/080-22180338
RBI directs banks to oppose loan waiver proposal
A fresh diktat from the Reserve Bank of India, barring banks from giving in to government pressure and waive off farm loans, could be a death blow to lakhs of farmers, who are seeking a bailout package..........
Now comment on credit report disputes
..........For instance, as banks keep on updating your credit behaviour, there may be a manual error in the information fed in. So, if your outstanding credit was Rs.5,000, but the bank accidentally entered it as Rs.50,000, the error should not effect your credit performance. The committee had suggested that additional fields should be created in the credit report to include dispute codes, consumer comments on the dispute and details of collateral..................
Review bank branch audit norms: ICAI
..................The contention of the CA Institute members’ are that banks are guided by their overall aggregate exposure in branches with advances of below ₹ 20 crore and feel that it may not be material enough to warrant a statutory audit every year. “They (banks) look at the aggregate picture and contend that such branches account for only say 15-16 percent of the bank’s total advances. But what they don’t realise is the risk factor. If there is increased NPA in such branches, the entire profit of a bank in a financial year could get wiped out”, a chartered accountant said. Rather than only looking at “materiality” in terms of advances, the risk factor also needs to be considered by the banks and banking regulator, it was pointed out............
Is time running out for Dhanlaxmi Bank?
.......At the peak of the crisis, the Reserve Bank of India (RBI) was apparently in favour of merging Dhanlaxmi Bank with another financially strong bank. "Former RBI governor D Subbarao was in favour of the merger," says a person familiar with the developments at the bank. "But the state government of Kerala opposed the merger on the ground that Dhanlaxmi was the only home-grown Hindu bank from Kerala." Dhanlaxmi, being one of those old-generation private banks, was given a chance to reinvent itself under a new management and Jayakumar was given charge in May 2012. While other lenders in a similar position, like Federal Bank and Ratnakar Bank, are on a strong footing now after a leadership change, the Thrissur-based lender has remained trapped in a web of increasing cost and high slippages (in non-performing assets), from which it is still yet to recover.........
Plan to cover all unbanked GPs in Odisha prepared
..............."Keeping in view the existing infrastructure (connectivity, power supply, communication) and man power and viability aspect, it was viewed by all banks in the meeting dated June 24, 2014, that would be an herculean task to open huge number of branches in the unbanked GPs within three years. Hence, it was unanimously decided to prepare the branch opening plan for the period 2014-15 to 2018-19 covering five years instead of three years as suggested by the state government".......................
Sebi chief U K Sinha to meet Arun Jaitley tomorrow
........The meeting assumes significance as Jaitley is gearing up to present his maiden Budget in Parliament on July 10. Sebi has been pressing that there is a need for uniform tax treatment of retirement related investments irrespective of the investment routes - pension products launched by mutual funds or the retirement funds managed by the government's EPFO (Employees' Provident Fund Office)...........
Government support to state-run banks to be factored in: S&P
...............S&P said the proposal does not change its assessment that the government is highly supportive of banks and that it would reassess the tendency of the government to provide extraordinary support at a later stage of the development of the resolution regime. However, S&P noted that garnering political commitment for such sweeping changes would be difficult. These changes would take a while to implement, making it tough.............
R-Cap in talks with Sumitomo Mitsui for banking initiatives
The Anil Ambani-controlled Reliance Capital Ltd is in talks with Japan’s Sumitomo Mitsui Banking Corp. for various initiatives in banking for over a year, company said on Wednesday. In a statement to BSE, the company said it was “constantly exploring various strategic partnerships, which may or may not necessarily result into transactions.”...........
Bandhan starts recruitment drive
.............Chairman of Bandhan Chandra Sekhar Ghosh earlier told PTI that the proposed bank would harness the best skills available in the market, so that customers were able to get the flavour of a new generation bank. However, he said that the shift from an MFI (micro-finance institution) to a new-generation bank would require a change in the mindset of the existing employees as they were so far dealing with poor people living in the semi-urban and rural areas..........
World Bank officials to make field trip to Bandhan Financial Services
Onno Ruhl, Country Director, World Bank, along with other senior officials of the organisation will visit the Kolkata-based Bandhan Financial Services Pvt Ltd on July 10. Bandhan, a micro-finance company, was recently given banking licences by the Reserve Bank of India (RBI)..........
Wrongly billed for your credit card? Here’s what RBI says banks must do
.........the Reserve Bank of India has a set guidelines that banks need to follow. On Tuesday, the apex bank issued a master circular on credit card, debit card and rupee denominated co-branded prepaid card operations of banks, and here's what it had to say:..............
Wednesday, July 2, 2014
Review the RBI - A.Seshan
Do not destabilise Reserve Bank of India - M.G.Warrier
...........Not much research is needed to conclude that the Finance Ministry and FSLRC, in a hurry to resolve certain minor issues, ignored the evolution of the role of RBI and the care with which RBI has nurtured the financial sector. The Federal Reserve (in the US) and RBI function in two different worlds. To say that the time is not right for dismantling or truncating the RBI, which is doing creditably well as has been admitted in several international forums, would be stating the obvious.............
Oily water - Dr.T.V.Gopalakrishnan
My View on Oil and water - Dr.Subir Gokarn
.......... With the liberalisation, some of the regulatory measures have been removed but banks' involvement in financing such activities are not ruled out as RBI does not micro manage things under liberalised environment. A strict vigilance if kept on these activities and the government can act on black money and initiate other administrative and economic measures,inflation impact because of monsoon shortage if any can be minimised...............
Raghuram Rajan finds ally in Dutch Queen
........The Dutch Queen will be visiting RBI in Mumbai on July 2nd in her capacity as the United Nations secretary general's Special Advocate (UNSGSA) for inclusive finance for development. She will hold a joint press conference with the RBI governor. She has been designated into this role since September 2009 by the UN secretary general to raise awareness of inclusion to achieve the final goal of poverty alleviation.....
FINDING A REPLACEMENT FOR CHAKRABARTY
Everyone knows it is difficult to fill in the position of KC Chakrabarty, the former deputy governor of the Reserve Bank of India. Has it become so difficult that the government is yet to find a replacement for KC? The mild mannered SS Mundra of Bank of Baroda was supposed to succeed. But there are no signs of the government approving it yet. Are they still debating, or is it that the wheels are moving slowly?
ET
ET
The poor little rich man
........This is where Mr Bandyopadhyay's book is useful in understanding the Sahara finance model, beyond the immediate context as well. He dwells in considerable detail on the birth of firms such as Peerless, the precursor to Sahara. Both mobilised funds from depositors as "para-banking" entities or residuary non-bank finance companies (RNBFCs), which were later banned. Actually, almost all of Sahara's arms or their methods of raising funds from depositors have been banned over the years, starting with Mr Roy's "prize chit schemes" in 1978. In Mr Roy's own words, he has faced six bans for raising money. The new model, incidentally, is "co-operatives"...........
Celebration to mark the 90th Anniversary of RBIEA, Chennai
The Ninetieth Anniversary of Reserve Bank of India Employees' Association, Chennai was celebrated on 30th June 2014 on the beautifully decorated dais at the Banking Hall of RBI. Com.A.Govindasamy, President of RBIEA, Chennai presided over the function. Sri R.Gandhi, Dy.Governor was the Chief Guest. Sri T.K.Rangarajan, M.P. from Tamilnadu graced the function. Com.Samir Ghosh, Gen.Secretary of AIRBEA and Dr.Sadakathulla, Regional Director of Tamilnadu and Pondichery were the other dignitaries who adorned the dais. Past office bearers, committee members and activists attended the function in good number. The members of the executive committee of the Forum of Retired employees of RBI were present in full strength. The meeting commenced with a patriotic glorifying the labour movement. Com. B.Christy Kennedy, present Secretary of RBIEA extended a warm welcome to the dignitaries and other invitees.
In the Presidential address Com.A.Govindasamy said that the city of Chennai had the cherished history of pioneering many struggles and movements. He said RBIEA is one of the most militant organisations in the Trade Union. He informed that the Currency Employee's Union was formed in the year 1923 which was later transformed to RBI employees' Association after the enactment of RBI Act 1935. He gave a detailed account of the odds and onslaughts the Association had faced from the Government and the Management in the past. He recalled the services rendered by the illustrious leaders of the movement which was responsible for many achievements. Com.A.G. made a special mention about the leadership provided by Comrades Ashis Sen, Samir Ghosh, K.T.Sule, T.K.Ghosh, Ajit Subedar, Valanju, Biren Sen and Naresh Das from the All India. Locally he praised the role played by of Comrades V.G.Row, R.Parthasarathy, A.Natarajan and W.R.Varadarajan in leading various struggles and strengthening the organisation.
Sri R.Gandhi, Dy.Governor in his address congratulated the Association on the occasion of its 90th Anniversary. He mentioned that the Trade unions' role will go a long way in making the management to make a true assessment of their functioning. He mentioned the efforts taken by RBI in creating public awareness for the functions discharged by RBI. He informed that RBI has recently constituted various committees to formulate innovative ideas to promote employees welfare. He appealed that the Unions should strive their best both for the employees' benefits as well as the institutional growth.
Com.Samir Ghosh appreciated Sri Raghuram Rajan, the Governor and Sri R.Gandhi, the Dy.Governor for their positive outlook and understanding of the employees' problem in the proper perspective. He said that under their leadership the RBI employees are sure to get their major problems resolved. He appreciated the role played by the leaders and membership at Chennai in implementing the calls and in building up a strong organisation. He gave a vivid picture of the employees' flight in the earlier years of the Association's formation and how various leaders toiled to strengthen the association inch by inch to its present level. He requested Sri T.K.Rangarajan, M.P. to voice the grievances of RBItes in the floor of the Parliament.
Dr.Sadakathulla the Regional Director of RBI made a mention about the various welfare measures the Bank is implementing. He assured his support to the cause of the retirees in all matters. He also announced of his plans to accede to the request of the Forum of retired employees to provide a room in the Bank's Annexe building for their secretarial functioning. He also appreciated the services of the "RBI Chennai Friends" Group to the past and present employees of RBI at Chennai.
Sri T.K.Rangarajan, M.P. while addressing the gathering mentioned about the good rapport he and his senior Sri Umanath maintained with the leaders of RBIEA, Chennai in the past. He assured his continued support both inside and outside the Parliament. While computing statistics and drawing various policies RBI should take into account the interest of the base level workers. He pointed out that although there is considerable improvement in the industrial output the number of workers in small entrepreneurs and small and medium scale industries has come down drastically to an alarming level during the past twenty years. He said if the same trend continues the country may have to face disastrous results. He wanted RBI to guide the Government in the right direction.
Past leaders of RBIEA, Chennai viz.Comrades A. Natarajan, S.Jayaraman, T.V.Subramanian, R.Chandrasekaran, R.Sivanesan, N.V.Padmanabhan, K.Ramasubramanian and S.Ramabadrdan were invited to the dais and were honoured with shawls and mementos. Sri R.Sivanesan and N.V.Padmanabhan could not attend the function as they were out of station.
In addition, many retirees who were actively associated with RBIEA in the past graced the occasion. R.V.Raman, M.Pugazhendi, T.K.Chandrasekar Nair, R.Rajagopalan, Sri A.Manoharan, A.Sivasubramanian, R.Chakrapani, G.S.N.Prasad, G.Mohandas, N.Janardhanan, G.Devarajan, S.Radhakrishnan, M.Hariharan, S.Venugopalan, S.Thiagarajan, G.S.Shunmugam, Sarada Maheswar, S.Vaijayanthi, Juliet Ashok Raj are a few to mention.
Bharatha Natyam was performed by two young comrades Sujitha and Vidya as a part of entertainment.
One of the highlights of the function was the beautiful display of old photographs depicting various events in the past. Light refreshments were served to all the members who attended the function. Sri A.P. Mathivanan compered the programme in an impressive manner and also proposed vote of thanks. The successfully organised function has thus come to a close.
- B.Chandraiah
Dear FM, Please Help Us Seniors
Uncontrolled, all-round inflation has hit senior citizens the most. Hence, the finance minister is requested to gift senior citizens income-tax exemption up to `. 5 lakh a year. Secondly, the cost of anti-asthma inhalers has increased unbearably in the last three years. The price of such inhalers should be reduced to half in the Budget. Finally , the medical insurance companies have doubled their premium recoverable from senior citizens in the current year as if all citizens are going to be hospitalised simultaneously as soon as they turn 60. This should be stopped with retrospective effect.
- HANSRAJ BHAT Mumbai
ET
- HANSRAJ BHAT Mumbai
ET
WHAT IS THE LIKELY DEARNESS ALLOWANCE INCREASE FOR BANK OFFICERS AND WORKMEN FROM August 2014 to October, 2014
.........Although, in the month of May 2014, the DA has decreased by 2.55%, yet now in August, 2014, there will be again increase and DA is likely to cross 100% barrier. There has been sharp increase in CPI in the month of April and May 2014. The trends of previous years indicate that in June, the inflation usually marginally increases. Assuming that............
RBI Panel for Indices on Labour, Wage to Improve Policymaking
.........The panel, headed by RBI Executive Director Deepak Mohanty, said, "With increasing integration with the global economy and the growing complexity of the economic structure, information needs have increased considerably and data gaps are being experienced in various domains of central banking." The Committee on Data and Information Management was set up by the RBI to address the concerns and to place the information management on ............
RBI clarifies on TDS on remittances to non-residents
The Reserve Bank of India (RBI) on Monday said it has reviewed the policy relating to issue of instructions under Foreign Exchange Management Act, 1999 (FEMA) and clarified that it has decided against issuing any instructions in regard to deduction of tax at source.....
India looking at ways to monetise its citizens' gold
With India's gold imports having pressured its current account deficit (CAD), two large Indian public sector banks have suggested that there is a greater need to make use of gold available in the country, and that the precious metal should be made more liquid. A government official has seconded the move, laying bare some aspects of the government's intention to monetise the gold stores held in most households across the country...............
Old for New in Nagpur: RBI to Start a Gold Rush
Old isn't always gold — at least, not for the Reserve Bank of India (RBI). There is a plan to swap some of the old gold lying in RBI's Nagpur vault since pre-Independence times — and whose quality is not exactly top grade — with purer gold. The country's monetary authority has sounded out large lenders and international bullion banks to strike 'location swap' deals. While the..................
ICICI Bank Organises Coin Exchange Mela in Indore, Madhya Pradesh
Indore: ICICI Bank, India’s largest private sector bank, today organized a Coin Exchange Mela at its Ratlam Kothi branch in Indore, Madhya Pradesh under the guidance of the Reserve Bank of India. The mela was organised to offer free facilities of exchanging currency notes with coins to the general public. This is a much-awaited event that receives an overwhelming response from people from all walks of life............
RBL Bank expands and rebrands as IPO draws closer
.............The bank is targeting a growth of 40-50% in advances and deposits in the next two years. In the year ended 31 March, its net loans grew 54% while deposits rose 39%. Historically, most RBL’s branches were located in Maharashtra and Karnataka, earning it the label of a regional lender. Now, it is working to shed that image, hiring McCann Worldgroup to help with a rebranding. “McCann has helped us in changing our brand name and logo to RBL Bank to compliment the personality of a modern bank that we have been building over the past four years,” Ahuja said...............
Experienced Finance Hands on State Bank of India Board
For a long time, the State Bank of India board had industrialists representing shareholders on it. But with the change of government, even this tradition seems to be changing. Some experienced finance hands are on board to guide it -MD Mallya, former CMD of Bank of Baroda and Bank of Maharashtra, and Sunil Mehta, who had represented AIG in the country. As the SBI prepares to take advantage of a likely recovery in the economy, the wisdom of the wizards should help it avoid bumps.
ET
ET
Finance ministry looking at public banks' consolidation
........"There has been some discussion, but the ministry wants to tread cautiously because of complex issues such as what will happen to the shareholding pattern and employees after the merger of two banks," said a finance ministry official who did not wish to be identified. It might start by merging the State Bank of India (SBI)'s five subsidiaries - State Bank of Hyderabad, State Bank of Mysore, State Bank of Bikaner & Jaipur, State Bank of Patiala and State Bank of Travancore - into the parent. "I think this government is as keen on the consolidation as the previous government was, but the problem is ground realities........
AIBEA opposes PJ Nayak panel proposals
The Government should decline to accept the adverse recommendations of PJ Nayak Committee which was set up by the Reserve Bank of India, says the All India Bank Employees’ Association (AIBEA). AIBEA is the largest trade union body representing about half-a-million bank employees. In its pre-budget memorandum to the Union Finance Minister, it has also demanded that the Government holding in the public sector banks should not be reduced below 51 per cent, and that the governance board of PSBs should be enlarged, and strengthened throught the appointment of professional persons from various fields of interest........
Mobile money and digitized payments have few takers
..............The Digitized Government Payments Study is a qualitative study with government-payment beneficiaries across four districts in Maharashtra conducted during the 13-23 December 2013 period, focusing on the potential for digital government payments to expand financial inclusion.................
Will the Reserve Bank Lift The Veil On Corporate Treasuries?
.......“Some of the corporate treasuries are larger than many banks' treasury operations. Their large operations do have an impact in financial markets. Those companies can take large positions domestically as well as through their offshore entities.“ The central bank bore the brunt of that set-up last year when all its measures to arrest speculation on currency by banks did not yield much result...........
Finmin, RBI & Sebi in Talks
......Talks are on between the finance ministry, Securities & Exchange Board of India and Reserve Bank of India over the proposal, said a senior official with knowledge of the plan. The official said such a move makes sense as the overall investment limit for foreign funds in government bonds will not be changed. It will instead allow investors who want the bonds to acquire them while leading to an overall lowering of bond yields and greater liquidity. RBI has been uncomfortable with allowing.............
IIM Ahmedabad raises Rs 16 cr from Corporates, Govt. bodies for research
.........As its fundraising and development efforts gain traction, IIM Ahmedabad, today, made its first announcement relating to support that has been committed by and agreed to with leaders in corporate and Government institutions. Put together, these collaborations will pool in over Rs. 16 crores to fund cutting-edge research and award scholarships to meritorious students. “We have some of the brightest alumni in this country and abroad, who feel strongly a desire to contribute to their Alma Mater. For example, Raghuram Rajan, Governor, RBI; KV Kamath, Chairman, ICICI Bank; Dr. Harsh Kumar Bhanwala, Chairman, NABARD; and KV Srinivasan, CEO, Reliance Capital are all a part of the distinguished IIMA alumni group who came forward to contribute and maintain IIMA as the premier institution for management education and research,” said Prof. Ashish Nanda, Director, IIM Ahmedabad..............
Aiming to trim financial burden, SBI to open 5K new ATMs
Even as the uncertainty over charging users for ATM transactions continues, nation's largest lender State Bank of India today said it will be launching up to 5,000 new ATMs this fiscal. The move is aimed at helping improve the debit cards-to- ATMs ratio for the bank and may also possibly help it save money expended on ATM interchange fees.....
Prod RBI to allow currency swap for JBIC: Tokyo to govt
........This will help JBIC offer long-term low-interest rupee loans for projects not connected with the Delhi-Mumbai Industrial Corridor (DMIC), where it has 26% stake. “There is huge demand for rupee-based loans in India and JBIC can offer dollar or Yen funds through a swap. However, RBI prohibits this. If such transactions are allowed, JBIC would be able to lend at much lower interest rates because of its high credit rating. ADB and IFC are already allowed to do such swaps without limitations,” .................
NBFC-MFIs: average base rate pegged at 10.09%
..........In February, the RBI, in its circular relating to the pricing of credit, said the interest rates charged by an NBFC-MFI to its borrowers will be the lower of: the cost of funds plus margin; or the average base rate of the five largest commercial banks by assets multiplied by 2.75. The average of the base rates of the five largest commercial banks is advised by the Reserve Bank on the last working day of the previous quarter, and the same determines interest rates for the ensuing quarter...........
No magic wand to bring down bad loans: SBI chief
....."We are seeing some lessening of stress but there is no magic wand, we have to work through our way. As the GDP goes up, demand goes up, the capital market will begin to respond, people are able to raise equity, we will see things becoming better.".....
Small borrowers: banks may have to give more loans
...........“We are looking at segregating the housing exposure into categories within the overall housing loan portfolio of banks. Talks are on to give banks specific lending targets for housing loans up to Rs.5 lakh for EWS and LIG,” said G.S. Sandhu, secretary, department of financial services in the finance ministry. Currently, home loans up to Rs.25 lakh in metros and up to Rs.15 lakh in non-metros are classified as priority sector loans by the Reserve Bank of India (RBI); however,...............
No Bank Credit for Hoarders
The Centre has instructed the states to act against grain hoarders. In the distant past, RBI's selective credit control (SCC) operated in sync with the government's stock control stipulations. During the Gulf crisis, it was given up as it was seen as directed credit. However, directed credit still prevails, such as targets for priority sector advances. The SCC was operated with three instruments: minimum margin, level of credit and minimum rate of interest. So, minimum margin alone can ensure that bank credit is not used for hoarding commodities in short supply . The RBI should give the idea some thought.
- A SESHAN Mumbai
ET
- A SESHAN Mumbai
ET
Loan disbursal: banks told to do an early eligibility test
......V. Raveendran, Assistant General Manager, Reserve Bank of India, who reviewed the District Credit Plan in detail, said the reporting system of banking statistics witnessed a commendable improvement in Kozhikode, especially in the 96 per cent submission of lead bank returns (LBR). Expressing satisfaction over the overall performance of the banking system, he said the district could have performed better with a little more attention on the Other Priority Sectors..........
Celebrate credit quality transparency initiatives
......................Along the same lines, RBI’s move to force banks to detect stress early (and penalise if not done) has to be specially commended, though this too should have been done years ago. There is no reliable estimate of what fraction of bank loans fall under SMA2, i.e. borrowers who pay between 61 and 90 days and technically avoid being called non-performing, and banks are understandably tight-lipped about this (many have not bothered to record this properly before). But RBI should mandate banks to disclose that number on a quarterly basis. And then, .............
Impediments in Recovery of Non-performing Assets
Recently, there have been some judicial pronouncements by the apex court determining the scope of powers of enforcement of securities without the intervention of the courts, by the banks and FIs under the SARFAESI Act. The apex court has reiterated the need to protect the interest of borrowers, and emphasized that the exercise of extraordinary powers of recovery , by banks and FIs must be in compliance with the provisions of the SARFAESI Act.............
Read - ET
Read - ET
Now, Telangana to knock on the doors of RBI for crop loan recast
..........Caught in the crossfire are the banks whose NPAs would rise dramatically in the current quarter if the RBI does not come to their rescue. Close to Rs 10,000 crore in Andhra and around Rs 5,000 crore loans in Telangana are expected to freshly add to the NPAs from this month onwards as the short-term production loans given in April last year remained unpaid for the last 90 days, according to officials. “This is going to be a big setback for banks because they will have to make a provisioning for the fresh NPAs that will further affect their profitability. The interest calculated so far on these loans will have to be returned now. This will further dent their performance,” ............
Tuesday, July 1, 2014
Budget 2014- 15: Nightmare or relief? - Dr.S.S.Tarapore
..........While powerful lobbies would effectively articulate their needs, the plea of the common person would be that inflation not be inflicted upon them and they be spared electric shocks of punitive measures which are portrayed as rectification of historical distortions.
Read - FPJ
Make Customer Service Ratio as Part of RBI's evaluation of banks - Dr.T.V.Gopalakrishnan
..........Unfortunately some of the private secctor banks' staff are not even aware of the existene of an Ombudsman or a Regulator in the name of RBI and many times they express their ignorance by saying with all innocence that they have not seen such a bank in their vicinity. Whom to blame.............
Subscribe to:
Posts (Atom)