..............The first and foremost issue, is that the government, in conjunction with the regulator, must announce some clear enablers to be put in place to control the bulge in bad assets. While banks can continue to make all-out efforts to clean up their balance sheet, the government can do its bit here. Take the example of asset reconstruction companies (ARCs) in this case. ARCs’ is a clear case of “damned if you do and damned if you don’t” for the banks! For example, ...........
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, July 8, 2014
On RBI push, private banks widen reach in rural areas
............RBI has asked banks to prioritise opening of branches in unbanked rural centres (Tier-V and VI) over a three-year cycle of 2013-16. It has asked them to allocate at least 25% of the total number of new branches to these areas. Also, the central bank will give credit for the branches opened in excess of the 25% for a year, which would be carried forward for achieving the criteria in the next year....
Officer Unions Need to Launch War Against Humiliation by Top Management
.........“Although, a number of readers may not agree with us, but we are of the strong view that to start with, the Board of each Bank should form a Committee at Head Office level to deal with the abusive behavior by regional heads / zonal heads / circle heads / GMs / EDs / CMDs in open forums like Manager's review meetings.The Committee should have at least two Directors (except CMDs / EDs ) as its members, one official from association / union, one member from Ministry of Finance, one member from RBI. All complaints of abuse during the meeting should be dealt by this Committee. ............
CAFRAL - Program on Use of Social Media by Banks
..........Facebook, the world's largest social network has crossed 100 million users in India. Twitter, Google+, LinkedIn, Instagram, Blogspot, Pinterest, and many more social media network are increasingly becoming the preferred communication mode for customers. What are the implications of this emerging trend for banks in India? How can banks prepare and embrace the use of social media to enhance their brand and improve customer engagement?............
Read..........
National Conference on Urban Co-operative Banks
Committee for Co-operatives & NPO Sectors jointly with the Urban Banks Department, RBI is organizing a National Conference on Urban Co-operative Banks on 8th and 9th August, 2014 at ICAI Tower, BKC, Mumbai. The Conference is hosted by WIRC of the Institute of Chartered Accountants of India. 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.........
Ratnakar Bank’s part-time Chairman retires
............Kutte had joined Ratnakar Bank in June 1980 and served the bank for thirty-four years, initially in an executive capacity across various departments, including MD & CEO, and in the last four years as its non-executive Chairman, the bank said in a statement............
Recruitment for admission to the IDBI Manipal School of Banking,
..............IDBI Bank has entered into a MoU with Manipal Global Education Services Private Limited, to provide training in Banking and Finance to prospective candidates aspiring to join IDBI bank as Assistant Manager Grade „A‟. The Bank invites applications from young, dynamic graduates for admissions in IDBI Manipal School of Banking, Bangalore for 1 year Post Graduate Diploma in Banking and Finance (PGDBF). After the successful completion of the course, the candidates will be awarded PGDBF from Manipal University and will be inducted into IDBI Bank as Assistant Manager Grade „A‟. .............
Using an ATM? First tap it to see if you are being duped!
Next time you go to an ATM, just tap it mildly before inserting your card. It might be having a skimmer to steal your card data. There has been sharp rise in the inter-state tech-crime gangs which are targeting ATMs in different cities from time to time, warn police. One such major gang was nabbed by the police here recently which brought a frightening modus operandi into light. "Our investigation revealed that..........
Centre likely to raise tax exemption beyond Rs 1L
......In addition, there have been discussions around raising the tax-free allowance available to salaried individuals. As TOI has argued in the past, these tax-free allowances have little relevance now. For instance, the tax-free annual medical reimbursement is fixed at Rs 15,000, while transport allowance is pegged at Rs 800 a month. While there have been suggestions to hike the 80C limit to Rs 5 lakh, government sources dismissed the demand arguing that there is little headroom given the tight fiscal situation............
Indexing tax slabs: an idea whose time has come
.........Inflation acts as a faithful ally of the ruling dispensation in extracting extra taxes from the working population. Indexation of tax slabs, as suggested by Nobel Prize winning economist Milton Friedman, can work as an effective antidote and save the hapless taxpayer. Let me explain the phenomena with the help of a simple example:.................
Five-rupee coins being melted for commercial purposes
.........RBI should sue-motto declare on its website, number of coin-bags in different denominations and new packs of currency-notes supplied for public-distribution to various bank-branches in different cities mentioning also dates of their supply. Rather different bank-branches should be directed to maintain complete record of distribution of coin-bags for an effective check to prevent ‘black-marketing’ of coin-bags.
Coin exhibition throws light on heritage
..............Every piece of coin unravels important history. In addition to history lovers, research scholars and a large number of students make a beeline to the venue to have a glimpse of the ancient coins made of silver, gold, aluminium and copper. The coins stand as a mirror of the hoary past, describing vital information. Some coins throw a surprise given their small size..........
ICICI Bank coin exchange mela
KOLKATA, JULY 7:
The country’s largest private sector bank, ICICI Bank, had in June organised coin exchange melas across 20-odd branches in the city. The mela was held within the guidelines of the Reserve Bank of India (RBI). According to a release issued by the bank, more than 500 customers participated in the programme, and coins worth nearly Rs 7 lakh – having denominations of Rs 10, Rs 5, Rs 2 and Rs 1 – were exchanged..........
Banks look at expanding digital branch footprint
The increase in online transactions had prompted banks to give customers more options to transact via online platforms such as social media. Now, lenders are taking the digital route a step further and are focusing on digital branches to cater to the more technologically advanced customers. These digital branches not only convenient for the consumers but are also helpful for the banks. "We think "smart branches" are the way to go in the future. ...........
An Investor’s Perspective
...........While it is understandable for regulators to be nervous of fraudulent transactions/ money laundering etc., there are separate regulations to take care of such situations and the RBI and other regulators have other powers with them to regulate such transactions. In any case, the DCF regulation too effectively operates on “self-certification” since based on the valuation certificates filed with bankers the transaction can go through without any prior RBI approval. In case of transactions with related parties, Indian tax authorities, through transfer pricing and other corporate tax provisions also have powers to scrutinize such share transactions. Therefore, while we wait for guidance from RBI on this issue, it would be interesting to observe whether RBI would completely leave the discretion on pricing to corporates or would go for valuations norms which provide some more flexibility on methodology............
Rangarajan panel report faces flak
The Rangarajan Committee, which has suggested a new benchmark for describing poverty, came under attack from political parties, which said it amounted to "mocking at the poor" and makes neither "common sense" nor "economic sense". However, C Rangarajan defended his panel's report...........
Even Rangarajan couldn't bring India's poor to BRICS standard
.......India has another dubious distinction – one of the highest poverty ratios among developing countries. While the Rangarajan committee estimates India's poverty ratio at 29.6% for 2011-12, the same for Brazil is 9% and for Russia 10.7%, according to data on country-specific official estimates available with the World Bank. A better picture on comparison emerges on.................
Government lies about inflation
...........Moreover, successive governments would have us believe that rising prices are caused by supply-side shocks well beyond their control. Then, the government, projects itself as actively fighting the problem of price rise through emergency measures. This, while such price rise was caused by aggressive monetizing of government debt by the RBI and a policy of easy credit in general. As far as monetizing of government debt goes, the RBI has run India’s very own quantitative easing programme by funding over one-fourths of the government’s gross market borrowing in fiscal years 2011-12 and 2012-13. In such a scenario,..............
Food inflation and the paradox of growth
...........Arguments such as that the Reserve Bank of India (RBI)'s policy of maintaining high interest rate hurts growth but does not bring down inflation or that the fiscal deficit needs to be lowered miss the point. Lower GDP growth is actually needed. And reducing the fiscal deficit will hurt GDP growth just as maintenance of a high interest rate will. However, the maintenance of high interest rate has disadvantages. It encourages inflow of foreign institutional investment, which causes exchange-rate appreciation and forces RBI to sterilise much of the inflow and thus accumulate foreign currency reserves. For this reason, a combination of lower interest rate and a lower fiscal deficit is a better policy mix.............
BIFR hearings reach dead end
State Bank of India’s refusal to follow the Reserve Bank of India guidelines in extending reliefs and concessions to sick public sector units before the Board for Industrial and Financial Reconstruction (BIFR) is beginning to have a cascading effect with other banks also inclined to toe the line of the ‘big-brother’. Sources in the banking industry say that the SBI stance has put the other banks in a fix, since many of them are also having to backtrack on their commitments at the hearings of the BIFR. They point out that the SBI group is involved in almost all public sector units of the country as one of the banks in the consortium. With other banks finding it hard to take a view at variance with the SBI stance, there is a stalemate at the BIFR hearings, with the board being unable to finalise rehabilitation packages for PSUs in which SBI is involved.
HBL
ICICI Bank chief Chanda Kochhar eyes 'right-value' bank for takeover
............"Earlier we took over banks of the size of 300-400 branches as they were relevant to our size at that time. But, today the size would have to be different. And with addition of 650 branches last year, it is like adding one full bank in a year,".......
Chargesheet in GSCB fraud within a month
..........The petitioners had prayed for the constitution of a committee of financial experts from the Reserve Bank of India/ NABARD to inquire into the financial accounts of the bank from 2001 onwards and fix the civil liability and recover misappropriated money from the guilty persons. During the hearing of the case, M Amonkar, additional public prosecutor, stated that the investigation is nearing completion and a chargesheet would be filed within a month in court. Amonkar, also submitted a status report............
RBI eases lending norms for import of diamonds
............The relaxation came following representations received from Gems and Jewellery Export Promotion Council (GJEPC), RBI said in a notification on Monday. The new rule is effective immediately. The central bank cautioned that banks should ensure.....................
RBI decision on rescheduling of crop loans this week likely
Quite hopeful that the Reserve Bank of India will give a green signal to the rescheduling of crop loans in the 575 mandals hit by natural calamities last year, Andhra Pradesh government is exploring all options to fulfil its loan waiver commitment in the rest of about 80 mandals. “We are examining different options. Securitisation of assets such as land, properties, revenue of government organisations and raise loans against them to fulfil our commitments. .......
AP banks see sharp rise in loan dues from SMEs
..........In line with the guidelines of the Reserve Bank of India banks were also supposed to adopt a "sympathetic" attitude towards sick enterprises and help in rehabilitation especially in cases where the sickness is on account of circumstances beyond the control of the enterprises. According to a senior banker, the overdues had also cast a shadow over the performance of banks in implementing the prime minister’s task force recommendation on ensuring proper credit flow to micro, small and medium enterprises in some aspects......
Monday, July 7, 2014
Super regulator may become a reality
...........On both these matters, creation of UFA and setting up of FSAT, RBI Governor Raghuram Rajan has come out as being very critic al On creation of Unified Financial Authority (UFA) and setting up of FSAT, RBI Governor Raghuram Rajan has been very critical and said that some of the suggestions made by FSLRC were 'somewhat schizophrenic' and said last month that some of th e recommendations made by FSLRC were 'somewhat schizophrenic'.Sources said it was unlikely that the convergence and creation of UFA would g et announced in Parliament's Budget Session, which beg ins today, but a commitment will be shown that the government wants to do this............
Debt Management in India : Need for Separation and Independence - K Kanagasabapathy, Charan Singh
.............In view of the conflict in the two volumes of the report by the FSLRC, the policy stance on independence of the PDMA is not transparently clear. In this situation, the present arrangement under the RBI seems to be more independent than the status envisaged for the PDMA. Therefore,............
Where are the savings? - Renu Kohli
.......Does this imply a commensurate increase in household financial savings? Trends in some of its key components suggest the opposite: In 2013-14, total bank deposits grew slower at 14% compared to 15.8% in 2012-13; net investments in mutual funds were down 29.7% in 2013-14; first year premium collected by life insurers grew, albeit at a slower pace of 11.8%; while retail participation in the primary market remained mostly subdued. Although the list of savings in financial assets isn’t exhaustive, the broad direction is of a decline. Further, ............
Of Financial Inclusion and Financial Literacy
........... Despite the fact that so much focus and importance is laid on the implementation of Financial Inclusion, the level of literacy and awareness among the masses has not risen to the expected level. It is doubtless a fact that without people having any knowledge about Financial Inclusion, it would have no the desired result in terms of being effective. In this regard the latest discussion paper of the Reserve Bank of India, promoting financial literacy, in a bid to bring in awareness among the people is significant. The research paper suggests ..........
Memorandum to Gajanan Kirtikar by NBOA
NATIONAL BANK OFFICERS’ ASSOCIATION (NBOA)
C/O NABARD, HO, BANDRA-KURLA COMPLEX , MUMBAI
01 July 2014
To
Shri Gajanan Kirtikar
Hon'ble Member of Parliament
New Delhi
Respected Sir,
Many thanks for sparing your valuable time to meet our delegation on 28/06/2014 at Mumbai and for assuring your kind patronage and support to AINBOA. We submit the following issues for your kind consideration and request a favourable and appropriate intervention from your good offices on these issues of paramount importance to us.........
RBI-Gangtok DGM conferred CFA Charter by ICFAI Tripura
KC Chakrabarty to Join IBHFL as Ind Director
Former deputy governor of the Reserve Bank of India KC Chakrabarty, known to speak his mind, will soon join the board of Indiabulls Housing Finance (IBHFL) as an independent director, said people familiar with the development. RM Malla, former CMD of IDBI Bank and Sidbi, and currently managing director of PTC India Financial Services, a subsidiary of Power Finance Corporation, will also join the company's board as an independent director.............
Read - ET
Read - ET
He K(h)an do it...............
Hearty congratulations to Mr. H. R. Khan on his reappointment as DG. There never was any doubt about that. I was in VOF CAB Pune a few years back. There everybody from sweeper to the Principal was singing paeans about Mr. Khan of his qualities of heart and head. I did not have the good fortune of seeing him personally. But I am sure that my prophecy of his clearing the last hurdle in RBI will come true.
B. K. Kamath, CGM (Retd.)
Heartiest congratulations to Khan Sahab. Having known Harun from the days when he was RPCD Bhubaneshwar incharge, Principal CAB and fellow Director on the Board of Dena Bank, he is a pleasant, polite, pushing and practical executive. I am sure his extension will help in continued guidance to banks.
- Subhash Wadhwa, Former MD AFC& CGM NABARD
Hearty Congratulations to Mr Khan.Hope the rural sector in general and financial inclusion in particular will thrive under his leadership.
- Dr.T.V.Gopalakrishnan
This is a most welcome move. Congratulations to H R Khan Continuity at the top will help in ensuring that the institution can take forward policy initiatives forward without losing ‘learning time’ for new incumbents at the top at shorter intervals. Government of India should guide authorities responsible for top level appointments within the government and public sector and even large corporates and organisations dependent on public resources to plan their recruitment, career progression and placement plans to make sure that the pool available for selection for top-most layer in institution/departments have enough number of eligible candidates in the age-group of 45-55 so that individuals appointed get a tenure of 5 to 10 years. HR policy needs a revamp. Sometime back eligibility criteria had to be changed to get more than one candidate for ‘selecting’ the CEO of a large public sector organisation.
- M.G.Warrier
A+ by A+ to A+
My View on "Former RBI governor: I would give Rajan A+ rating":
- M.G.Warrier
Circumventing the provisions of the RBI Act is uncalled for
The appointment of an Officer on Special Duty in the rank of Dy Governor from the private sector bank in the guise of streamlining the functioning of the Central Bank and rid it of the reputation being a monolith seems not desirable and that too in an autonomous august institution exclusively owned by the Central Government circumventing the provisions of the RBI Act 1934 is uncalled for and definitely not in the interests of the economy, the institution and its human resources. It not only takes away all the positives of the public sector character of a mighty and a nationally sensitive organisation but also weakens the regulatory system meticulously built up over a period for ensuring sound and healthy financial system in general and banking system in particular.
- Dr.T.V.Gopalakrishnan
Sahara: The Untold Story
......It is an attempt to demystify India’s most secretive and largely unlisted conglomerate, The Sahara Pariwar, which has excelled in raising money from people over decades and is embroiled in controversy including court- room drama. Sahara Story is “ a riddle wrapped in a mystery inside an enigma”. The promoter Subrata Roy merrily soaks in the glory of cricket and the film world. Roy has become the ‘ Robinhood’ of a county where only 35 per cent of the adult population has access to banking services. The background to the story is very well told. .........
Read - FPJ Book Review by P.P.Ramachandran
Vicious circle needs to be broken - Dr.T.V.Gopalakrishnan
My View on "Narendra Modi's golden opportunity - T C A Sriniva...":
The article is interesting and also conveying a lot to the new Government. The budget is a tool to set right all bad that has happened in the economy because of bad governance, keep the confidence of the people growing and make good economics and equally good politics.It is a god given golden opportunity to the new government to think afresh and be away from beaten track. The author is 100% right when novice stake control and they have no biases as such. They can do wonders and wonders are essential to revive the economy and the confidence in the economy. This wonder can start with taxation policies which are archaic and have not done anything but damage to the economy. Reduce the tax rates and take away all exemptions. People will save as savings are in their own Interest. The Government need household savings for capital formation and for this the Government has to facilitate savings.This is possible by controlling inflation, running the banks efficiently and profitably, discouraging investment in gold and real estates, reducing corruption in the society and avoiding generation of black money. All these are possible if the Government is strong, administration is efficient, accountability is fixed, transparency is maintained, information is gathered adequately and put into optimum use to draw appropriate policies etc. The present vicious circle of lower savings, lower investment, lower production,high inflation, needs to be broken.
- Dr.T.V.Gopalakrishnan
Three out of 10 in India are poor, says Rangarajan panel
A panel headed by C Rangarajan, the former chairman of the Economic Advisory Council to the Prime Minister, has dismissed the Tendulkar Committee report on estimating poverty and said that the number of poor in India was much higher in 2011-12 at 29.5% of the population, which means that three out of 10 persons are poor..............
A case to forge new economic bonds - Charan Singh
...... Ben Bernanke’s, famous ‘savings glut’ hypothesis in 2005 also underlined the interconnection of financial markets and global integration. The impact of such integration on developing countries was perhaps best articulated in August 1999 by Bimal Jalan, who had successfully guided the Indian economy through the Asian crisis of 1997, and stressed that the new financial architecture is “too heavily weighted in favour of industrial countries”. Thus far, the India’s plea for.....
RBI to convene meet of finance firms
.............The press release said the RBI had instructed its regional office in Thiruvananthapuram to initiate strong action against private financial institutions that did not follow the banking code of fair practices. The Home Minister had met RBI Governor Raghuram Rajan and apprised him of the crackdown ‘Operation Kubera’ the State government had launched against...........
RBI: India Post needs to re-apply for licence
India Post will have to re-apply for a bank licence under the differential licence norms, if they are keen to function as a payment bank, R. Gandhi, deputy governor of the Reserve Bank of India told Cogencis. “That is government. That is up to them. If they want to apply as a payment bank, then it has to be a fresh application !” Gandhi said.......
Read - FPJ
Read - FPJ
For a competitive rupee
..........For the economic recovery, which seems to have begun now, to be robust and for sustained success in manufacturing, the RBI needs to aggressively intervene in the market and buy dollars to undo the appreciation that capital inflows are causing. This would be easier for the RBI if there is better appreciation and a broader national consensus on the necessity of a competitive exchange rate.
No equal treatment to good and bad borrowers: RBI
In a simple and clear message, Reserve Bank of India (RBI) Governor Raghuram Rajan has told officials of the Telangana government they would have to differentiate a good borrower from a bad even in the case of farm loan reschedulement to protect the banking sector...........
Four suggestions for the Budget
..............For the common man, the tax burden is represented by the average rather than the marginal tax. To simplify the system all exemptions, rebates and deductions should be eliminated. Such a system will be welcome to everyone except tax consultants ! Objections will be raised on the ground that tax incentives will not be available for promoting saving. It is time that the authorities realised that saving is a function of incomes and not of returns. The latter, by way of interest or yield, determines only the avenues of investment and not the total quantum of savings. Did not people save in the past, burying their money under their pillows, before the advent of institutions like banks?.......
Acche din can wait
.......... The RBI’s mandate is first and foremost to protect the value of money, which means maintaining price stability. That requires it to make an informed guess about what the public is thinking about price movement. For the past five years the survey consistently shows that households expect inflation to be above 12 per cent. This inflationary angst is considerably above what used to be the case between 2000 and 2007, when expectations were much lower. The actual inflation rate in early 2002 was barely 1 per cent. This five-year angst also partly explains why there was.............
Major changes in Income Tax Returns (FY 2013 - 14 or AY 2014-15)
...........All salaries taxpayers will now have to give now separate details of LTA (Leave Travel Allowance) and HRA (House Rent Allowance) and other allowances separately. This will help Govt. to track proper claim of such deductions, recent HRA and LTA fallacious claimed by some MPs and Govt. taxpayers may have forced for such changes..............
5 tips on mobile banking security
A recent survey by software security firm Trend Micro says India ranks third among countries most affected by mobile banking malware. Samarpan Dutta tells you how to secure your transactions...........
Read - ET
Read - ET
Shadowy world of money movers
.....As per RBI guidelines, Indian passenger, while going abroad, can carry foreign exchange without any limit provided it is procured from authorised money exchangers. But this is where unauthorised travel agents come in. These agents usually offer discounts on a ticket if a passenger agrees to carry a small consignment. The passenger is often unaware of what the packet contains. Sometimes a group of 10 to 12 people join together and the profit is shared. The currency may be used for payment of smuggled gold. The labour class is most vulnerable. It is often on the basis of doubt that these "carriers" are intercepted at the Mangalore airport.........
Going cashless whole hog
.....The tricity, or a percentage of the upper income group, is, I presume, familiar with newer models of transferring and using money through mobiles on platforms provided by telecom operators like Airtel and Vodafone. Besides cutting down on the use of cash, an avowed goal of the Reserve Bank of India and successive governments for some time now, it also promotes financial inclusion. The earnings for operators for providing the service might not be that lucrative at the moment, but the initiative is meant for the long haul, as it is expected to lead to a substantial cost reduction in the ease of doing business........
Muthoot Finance gets nod for housing loan business
.............After the Reserve Bank of India (RBI) had raised concerns about concentration risk, gold loan NBFCs have been trying to diversify their business. Muthoot Finance has plans to get into insurance and housing finance. While it is still scouting for foreign partners for its insurance business, the current focus is on housing finance as NHB, the agency that promotes housing finance institutions, has given approval...............
Cooperatives brace for a rough ride
..............Four recent decisions that will affect the equilibrium of the cooperative sector have initiated a churning process here ? I-T department's strict enforcement of 80(T) of the I-T Act to levy income tax from cooperative societies, amendment in Banking Regulation Act that bans primary cooperative societies from doing banking business, RBI's directive regarding statutory liquidity ratio (SLR) that may hit the state cooperative bank badly and the 97th amendment of the Constitution enacted in 2011 that has made forming a cooperative society a fundamental right of a person..........
Ramkumar given charge of ICICI Bank's CSR arm
ICICI Bank is set for a change at the senior level. From August, K Ramkumar, ED, will no longer be handling HR but will be responsible for ICICI Foundation -the platform for most of the group's CSR (corporate social responsibility) activities. He will remain a member of the bank's board and continue to be responsible for the other two business verticals customer service & oper ations, and service quality. HR head T Srirang will now report directly to Chanda Kochhar, the bank's MD. Kochhar told TOI that the change in Ram's profile underscores the bank's has always been led by a very commitment to its social initiatives and ICICI Foundation, which has always been led by a very senior person. Given Ram's passion for CSR and his contribution in rolling out the ICICI Academy for Skills, the bank's key CSR initiative last year, he was the person best suited for the role, Kochhar said.
SBI unveils its digital banking initiative
.....The digital stores will be bringing several unique and differentiated offerings to the new-age Indian customers. These include instant issuance of personalised debit cards created through an instant account opening kiosk, instant in-principle loan approval and an interactive dream wall to aid customers in conceptualising their journey towards realizing their financial dreams. "SBI is committed to offering best-in-class services to our increasingly tech-savvy customers and will continue to invest in digital stores to create a superior banking experience," Arundhati Bhattacharya, chairman, State Bank of India, said.............
ICICI Bank to open China, South Africa branches this fiscal: Chanda Kochhar
....................“Our focus is on Indian companies expanding into foreign markets, multinationals from outside coming into India and also the NRIs (non-resident Indians), when it comes to the international banking business.”........................
IFC to infuse Rs 160 cr into Bandhan
........"IFC will shortly infuse Rs 160 crore as Tier II capital in Bandhan", chairman of the MFI Chandra Sekhar Ghosh told PTI. Ghosh was recently at the IFC headquarters in Washington to hold discussions with the World Bank arm, which had shown interest in greater participation in the MFI's transition into a bank.........
Chansrichawla stake in Catholic Syrian Bank falls below 10%
...............The Reserve Bank of India does not want any single promoter to hold more than 10% stake in private banks, and has been pushing such promoters to reduce their stakes. The central bank is more comfortable with dispersed bank shareholding.............
Saturday, July 5, 2014
Former RBI governor: I would give Rajan A+ rating
'No need to set BPL for fin inclusion'
.........Rajan was speaking at a press conference to mark the visit of Queen Maxima of the Netherlands in her capacity as the United Nations secretary general's Special Advocate (UNSGSA) for inclusive finance for development. "There has been a lot of discussion in poverty and my answer is that it does not matter that we have a precise definition as there is so much demand for financial services," said Rajan. He added that what was needed was to create an environment where financial services could expand............
RBI norms on differentiated banking this fiscal year
Financial inclusion of women: Myth or reality?
.........A Reserve Bank of India (RBI) report indicates that women’s credit outstanding from commercial banks accounts for only 5% of all credit outstanding (RBI 2013). Many experts argue that although financial inclusion initiatives are targeted towards the general population (including women), most initiatives are introduced without comprehensive understanding about women’s socio-economic conditions, intra-household bargaining position, and restrictions on mobility. For example, rural women are actively engaged in agriculture, yet, many of them face constraints when accessing agriculture credit because................
Congratulations to the Founder of FinClusion
My View on "HR Khan back as RBI Deputy Governor":
- Santhanam
Nice to see the news about Harun Khan. He deserves. Congratulations to him thru this medium.
- B.K.Katyal, CGM (Retd.)
RBI set for rejig; 5 verticals, new posts to be created
.........Since the RBI Act also prevents a private sector banker from holding a deputy governor position, the central bank may use the position of officer on special duty to bring in former ICICI Bank executive Nachiket Mor to head the internal administration vertical...........
Read - FPJ
Financial awareness camp held in Odisha town
......In their address, retired Chief General Manager, RBI, Dasarathi Mishra, chief manager, Bank of India, Bhagavat Rana and Braja Kishore Mishra of the Axis Bank talked about ideal saving habits, methods of saving money, basic banking, RBI initiative on financial inclusion and financial literacy, procedure to open no-frills accounts in a bank etc. A quiz program covering basics of banking and economy was also conducted on the occasion...........
RBI quiz
The Reserve Bank of India, Kochi, will conduct quiz competitions for school students in Kozhikode and Kochi on August 4 and 6 respectively as part of promoting financial literacy. Students of IX to XII standards can participate in the competitions. Last date for submitting applications for preliminary rounds is July 20. Contact 0484-2400076, 2401153 for more details.
The Hindu
Growth Partners: Banks and operators collaborate to drive rural mobile banking
.......In its efforts to promote and encourage the adoption of mobile banking services, the government, along with the RBI, has taken several steps. The RBI issued mobile payment guidelines in 2008. The guidelines were amended in 2009 to increase the limit on the transfer of funds and purchase of goods from Rs 5,000 to Rs 50,000 per day for each customer. This limit was removed altogether in December 2011 and banks were allowed to put their own restrictions on daily transactions on the basis of the risk perception of their customer profiles. To ensure interoperability among different telecom service providers and various banks, the National Payment Council of India launched the interbank mobile payment system (IMPS)............
HC creates record of sorts by solving urban bank row
.......A Division Bench of Justices V. Ramasubramanian and V.M. Velumani on Thursday directed the liquidator of the bank to disburse Rs.9.18 crore to individual depositors besides paying Rs.15.16 crore to Deposit Insurance and Credit Guarantee Corporation (DICGC). Allowing a writ petition filed by the DICGC seeking arrears of Rs.22.96 crore from the liquidator, the Bench said the bank was established around 100 years ago as an institution of cooperative micro-financing and it flourished until 2001.........
CBI to Fill UP posts on deputation basis
..Eligibility conditions for appointment on deputation: Officers under the Central Government or State Governments or Union Territories or Government Financial Institutions including RBI, NABARD, SIDBI or Public Sector Financial Institutions (including Public Sector Banks):..........
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