............Given the company’s transition to becoming a bank, the loan book was earlier expected to decline to meet the regulatory requirement of CRR, SLR and priority sector lending. But with the recent move, the company may be able to continue its infra lending during the transition and after. In the latest Budget, the finance minister proposed to reduce regulatory requirements of long-term funds raised for lending to long-term infrastructure projects. Currently, ..........
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 15, 2014
New BRICS bank will give India a boost
...........The New Development Bank, with an initial corpus of $50 billion which could later be doubled to $100 billion, could be an alternative to the IMF to fund not just India’s infrastructure needs, but also of other developing countries, like many in South America, who don’t like borrowing from the IMF because of the many strings attached. “The Modi-Government has to ensure that the Development Bank gets operationalised soon as funding other develop economies will increase India’s global clout,” an economist from a Delhi-based research agency said...........
RBI yet to approve crop loan rescheduling proposals of AP, Telangana govts
....RBI Deputy Governor R Gandhi said initial discussions had taken place between the central bank and the two state governments. “We have asked them (state governments) to come back with full details, which we are awaiting,” he told media persons on the sidelines of FINSEC-2014, a financial sector conclave, organised by FICCI here today.......
Over 5k bank officials face action in loan waiver scam
The government has initiated action against more than 5,400 bank officials related to irregularities in the agricultural debt waiver scheme. At least 6,823 ineligible beneficiaries have been detected so far and Rs 627 crore recovered from them. In response to a question in Lok Sabha, finance minister Arun Jaitley said 6,823 ineligible beneficiaries were detected in the 2008-09 agriculture debt waiver scheme. The minister said that action was initiated against 5,411 bank officials and 22 FIRs were registered............
Read - TOI
Read - TOI
Money trickles into T-account
...............An instance was the amount due to Telangana as its share from centrally sponsored schemes which was in June credited to the Consolidated Fund account of Andhra Pradesh maintained with the RBI. Both the governments took up the matter with the Centre which prepared the respective estimates and asked the RBI to apportion the same between the two States...........
Monday, July 14, 2014
Budget 2014- 15: As good as it gets - Dr.S.S.Tarapore
............Rather than strong ad hoc measures such as drastic reduction in subsidies followed by rollbacks, the finance minister has decided to set up an Expenditure Management Commission, which will inter alia also recommend a comprehensive and enduring programme of reduction in subsidies. The Expenditure Management Commission will have a larger remit and locate areas where expenditures can be curtailed without loss of welfare, which would then enable the government to facilitate such expenditures which meet imperative social needs. The Commission would be undertaking...........
Demanding to be included - Dr.Subir Gokarn
...........Enormous amounts of strategising, mandates to banks and other financial intermediaries, incentives and disincentives and so on have gone into the process. And yet where we stand today suggests achievement far less than expected, let alone desired. Thus far, the debate has revolved round the "supply side" of the equation - the appropriate organisational and incentive frameworks for expanding financial access........
Active middlemen and inactive institutions - Dr.T.V.Gopalakrishnan
............ NABARD which can be the best coordinating agency and problem solver has miserably failed in taking care of farmers interets, There is a Local Board in RBI which can play an effective and proactive role in coordinating and guiding all local authorities in various states and banks including NABARD has not been taking any interests although they can be easily an effective and very useful tool .................
Theory and practice
.........Generally, the huge pile of papers presented in the form of Economic Survey and Budget documents, which are produced in "secrecy", do not mean much to the common man beyond some price and cost rises, and increase in expenditure on account of taxes and other levies. Think of a day when the Economic Survey gives a realistic account of the "wish list" of the people who..........
The good is in the detail
.......... I propose to appoint a committee with representatives from the Finance Ministry, Ministry of MSME, RBI to give concrete suggestions in three months.” In the budget discourse monopolised by corporates, the financial world and the elite, this profound idea has been completely ignored. That Small and Micro Enterprises (SME) form the backbone of our economy is a slogan that has been a part of the national economic discourse for long. But beyond oral compliments, nothing great has been done for them. Also, there is very little awareness about this vital segment of our economy............
RBI dividend in FY15 may be more than budgeted
.......... Finance secretary Arvind Mayaram told FE that RBI will pay R46,000 crore to the government as dividend this fiscal, compared with R33,010 crore last fiscal and a similar amount envisaged in the interim budget. This year's dividend amount could turn out to be even higher, due to the new accounting philosophy recommended by the Malegam panel for the central bank, he said............
The Dollar Trap - Book Review by P.P.Ramachandran
.........The author has arrived at a judgement that the dollar will continue to reign as the leading reserve currency in the near future. The dollarcentric equilibrium seems to be unstable with big risks for the entire global economy. The fear of its decline and the resultant devastation itself lends a measure of equilibrium to the dollar. This is a painstakingly researched book and throws a flood of light on the omnipotence of the dollar and deserves to be read by economists, planners, financiers and students of banking and finance............
RBI receives over 76,000 complaints against banks
...........The reply to a query by RTI activist Abhay Kolarkar informed that offices of 15 ombudsmen appointed by the apex banks received these complaints within a year. Chief information officer with RBI DG Kale provided a big list of banks that included nationalized, cooperative and private ones, against which the complaints were lodged at ombudsmen offices mostly located in the state capitals........
APMC traders eye gadgets to detect fake currency
NAVI MUMBAI: The wholesale trader community at the five APMC markets in Turbhe have taken serious note of the rise in incidents of fake currency being circulated on the premises. Though the police have nabbed many accused for possessing fake currency in the past, the trader community, too, has started taking precautionary measures to prevent being cheated. About 80% of the wholesale traders, who handle a lot of cash daily, have started using machines to detect fake currency...............
This is not financial inclusion, Mr Modi
.........For years now, the Reserve Bank of India (RBI) has been trying hard to expand banking services in Asia’s third largest economy where, according to a 2012 World Bank working paper, only 35% of adult population has access to the formal banking network. For the first time, in January 2006, the RBI had allowed banks to appoint BCs and address the so-called last mile problem in providing banking services to the masses. The scope of business correspondents has continuously been extended over the years. In the last week of June,.................
Challenges for Senior Bankers To Make Frustrated Young Bankers As Part of the Bigger Bank Family
.............The senior bankers need to be sensitized about the fears and the psychology of the new recruits. The young bankers needs to be taught slowly the art of adopting to new environment, rather than adopting the methods of teaching them through punishments even for small aberrations like taking a day's leave without information etc. Certainly they are adult but they need time to adjust to new hostile work environment after a cool college life. They need to be give time to overcome the fears generated by lose talks in the branches / administrative offices. Young bankers too need to learn the art of adjusting to the new environment and.............
Banks use analytics to check fraud in online payments
...........“There are two kinds of fraud detection in payments: One is during the transaction, and the other is using analytics to identify suspicious transactions based on past behaviour. We specialize in the analytics part,” said Ganapathy. Whenever there is a transaction that is out of the way, it will trigger an alarm at the bank’s control centre which will immediately call up the customer or send an SMS to verify the transaction...........
Demand for Formation of NRBI (National Rural Bank of India)
..........All the committees appointed by the GOI, RBI & NABARD have categorically rejected the proposal of “merger of RRB with Sponsor Bank” and most of them have recommended either for formation of NRBI or five Zonal Rural Banks or State Level RRBs. Sir, we have been demanding for more than three decades for restructuring the RRBs to form NRBI at the Apex Level with State Level RRBs, totally delinked from Sponsor Banks for the reasons that –.........
NABARD awards for best farmer’s clubs
The National Bank for Agriculture and Rural Development presented awards to the best performing farmer’s clubs to mark its 33rd foundation day recently.They were presented by Finance Secretary K. Shanmugam for best performance in technology transfer, input supply, credit facilitation and village development. RBI Regional Director J. Sadakkathullah and NABARD Chief General Manager K. Venkateswara Rao spoke.
Nabard launches RuPay Kisan cards
.........."This is the first time that RuPay Card, which is in the nature of ATM cum Debit Card, is being issued by any cooperative bank in the state of Haryana," said Nabard Chief General Manager (Haryana) D V Deshpande. He said the issue of RuPay cards by cooperative banks will enable them to improve their customer service and bring it on par with any other bank to farmers and other customers.........
NPS needs tax sops, better reach, say fund managers
.................Pension earned from the NPS after retirement is taxable. An employee’s contribution up to 10 per cent of his basic salary and dearness allowance is eligible for income tax deduction within an overall Rs 1 lakh limit. The NPS also offers an extra income tax deduction if an employer contributes 10 per cent of the basic salary plus dearness allowance to an employee’s NPS account. This has no upper limit. “Some tax sops should be provided to push this product. We had expressed this concern to the finance ministry,”........
Uniform taxation for retirement products
...........“It’s not clear what uniform tax treatment for pension funds and mutual fund-linked retirement plans would mean. Right now, under section 80CCD (1), the employee gets a deduction of up to 10% of the salary on contributions in NPS. This deduction is capped at Rs.1 lakh. Under section 80CCD (2), the entire employer contribution up to 10% of the salary is deductible in the hands of the employee. Could the uniform treatment refer to giving the same benefits to mutual fund retirement plans as well?”............
Now, you can re-invest only in one house to save tax
......the explanatory memorandum to the Finance Bill has explicitly laid down that the benefit of capital gains tax exemption is intended only for re-investment in one residential house in India. The relevant sections of the I-T Act have thus been amended.
Read - TOI
Insurance policies with low cover to attract TDS on surrender
............While death benefit under the plan is always tax free under Section 10 (10D), the benefits under the Section are available to schemes only if the premium paid in not more than 10 per cent of the sum assured. It has, however, proposed to keep the small tax payers out of the net and said that there will be no deduction within this provision if the aggregate sum paid in a financial year to an assessee is less than Rs 1 lakh.........
ITR filing: CBDT launches new tax calculator for taxpayers
.............he 'Systems' directorate of the department has recently launched the new online facility where a taxpayer, individual, corporate or any other entity, can compute the liability and this filled up format can even be sent to a private email or to the email of the tax planner, intermediary or Chartered Accountant........
Investment limit hike makes PPF more attractive
.............The scheme is for 15 years. On maturity one has the option of continuing it for a further five years or encashing both principal and interest. There is no tax on the interest encashed. Interest is paid at 8.7% per annum and it is entirely tax free without any limit. Interest alone grossed up without taking the 80C benefit amounts to nearly 15%, which is significantly better than what one may earn on a fixed deposit (8% to 9% gross). It should be noted that interest is calculated..........
AIBEA demands mechanism to deal with banking defaulters
.................."The wilful default of bank loans should be made a criminal offence", AIBEA general secretary, C H Venkatachalam, told reporters here. "Such defaulters should not be allowed to hold office of public interest or contest in elections", he said, adding that the banking regulator should publish the list of such defaulters, since over Rs 5.65 lakh crore of public funds were locked up as NPAs.......
Team from IIT-M studies site of fire
.......A team from Indian Institute of Technology-Madras (IIT-M) inspected the accident site on Sunday. Upset over the damage to the heritage structure, but relieved there was no loss of life, SBI general manager Sanjiv Chadha said on Sunday that the three bank branches would be up and running from Monday.........
Monetising property: Advanced groundwork at Bank of India
.............Explaining the arrangement for such a transaction, a senior BoI executive said the Mumbai-headquartered bank could float a wholly-owned subsidiary for the deal. The selected real estate assets (buildings, head office premises and residences) would be transferred (formally, sold) to this subsidiary, a Special Purpose Vehicle (SPV), at value..........
Banks must boost MSME lending
..............A study by the International Finance Corporation shows that the commercial banking sector provides only about 10-15% of the recurring credit requirements of the MSME sector, which it estimates at R20 lakh crore at the lower end and R32 lakh crore at the higher end. Non-bank companies provide about 8-10% while at least 75% of the requirements are met from non-formal and non-organised sources.......
People are comfortable dealing with a public sector bank
............Banks are traditionally accustomed to selling single-premium plans because they are comfortable with one-time pay, guaranteed products such as the fixed deposits. That’s the only place where we are not aligned, and that’s where our team comes in. Our bank partners like traditional plans because these have guarantees built into them, which their customers demand..............
BRICS Bank on Agenda as Modi Takes Midfield
.........This edition of BRICS is significant as it is expected to witness the creation of BRICS development bank whose formation has been delayed over differences between China and India over its holding pattern. China, the biggest economy in the BRICS, wanted majority stake in the bank that would be a counter to the IMF dominance. The bank will have $100 billion capital within seven years. The highlight of the meet will be the creation of a $100 billion fund with contribution from all five members that would tackle liquidity crisis that any member country may face in future............
Tanishq pulls the plug on gold deposit schemes
..........“There was resistance from customers, as they wanted to complete the scheme. But now, as the Ministry of Corporate Affairs has clearly stated our scheme will be under public deposits, we are forced to close the scheme. We have given customers time till the end of August. If they do not opt for purchase of jewellery, we will send them cheques to close the payment,”..........
55 firms collecting money illegally evade action
...........The secret note says that according to inputs received by the IB, about 55 companies are collecting money from the public in West Bengal “without registration either with the Securities Exchange Board of India (SEBI) or the Reserve Bank of India (RBI) and without filing any offer document with SEBI.” “Inputs further state that the government authorities are aware of the companies but still has not initiated any action against them,” .........
Worst behind banking industry on NPA front: Kochhar
..........."There will be some addition to NPAs and the restructured assets to the banking industry, but I think these additions in FY14-15 should be less than the additions in FY13-14. In that sense, we can assume that the peak is behind us and gradually now there should be an improvement,"............
RBI throws spanner in AP govt’s loan sop
..........This is a major setback for the government, which had sought rescheduling of farm loans worth Rs 35,000 crore. A team of officials on Friday rushed to Mumbai to persuade RBI officials to at least extend the rescheduling to rabi season, which amounts to another Rs 15,000 crore. ............
Saturday, July 12, 2014
A new alliance
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| File photo |
In defence of a unified financial regulator
.........The journey to a unified financial regulator as envisaged by the FSLRC could perhaps be made less challenging by making it a two-step process due to the plethora of regulators i.e. RBI, Sebi, Irda, PFRDA and FMC (Forward Markets Commission). The unified framework would become effective if SAT is quickly upgraded into one common Financial Services Appellate Tribunal (FSAT) for all regulators other than RBI to start with. In step two, the FSAT should have oversight over RBI also. This approach could result in tangible outcomes sooner than later...............
Indian Bank rolls out mobile branch, ATM for slum dwellers
Reserve Bank of India Governor Dr Raghuram G Rajan launched Indian Bank’s two mobile branches/vans with ATM facility, for providing banking services to urban populace residing in the slum areas of Royapuram, Tiruvotriyur, Tondiarpet in North Chennai and Kannagi Nagar, Thanthai Periyar Nagar and Semmencherry in South Chennai, under the Bank’s Urban Financial Inclusion initiatives.........
Students advised to focus on wholesome personality
.............Commenting on career options, Chief General Manager (IT) of the Reserve Bank of India (RBI) A K Hirve advised students to look beyond placement opportunities provided by their institutions and seek careers in the banking sector, particularly in the RBI.............
CVN : Debt of gratitude - Surendra Khot
Shri C.V.Nair essentially belonged to the erstwhille ACD, which was a well-organised Department headed by Dr.C.D.Datey with high-profile colleagues like Dr.M.V.Hate, M.L.T.Fernandes, K.G.Patkar, Kum.I.T.Vaz, R.R.Pradhan who moved over to Combined Seniority Departments under the Combined Seniority Scheme and rose to hold key positions in Central Office. Shri Nair was the Manager, Calcutta Office and later took over as Chief Manager (redesignated as Principal Chief General Manager) and was elevated to the position of ED. For several years, he had steered the RBI Officers Association as President and engaged in negotiations with the Bank's Management in resolving issues and problems concerning officers. Later as CM/ED he had represented Management in negotiations with various Associations/Federation on their charters/agendas. To the credit of Shri Nair and Shri O.P.Taneja who headed erstwhile PPD as Chief Officer, charters with various Associations were settled satisfactorily in 1984 without any staff agitations/strikes, which was unprecedented in the Bank's history. He had tried, among other things, to secure seats in Central Schools run by Central Government for the children of RBI officers on transfer. He was expert and effective in managing administrative and IR matters/issues and provided able and matured leadership while heading the Officers' Association as well as discharging onerous responsibilities in his capacity as Manager (redesignated as RD) and CM and ED. The RBI and its fraternity owes him a debt of gratitude for his immense contributions towards improving their service conditions and welfare and efficient discharge of his duties and responsibilities in his official capacities.. He was a source of strength to his superiors and created a special niche in the minds of RBI-ites. He was ailing for some time but kept track of developments in RBI. May his soul rest in peace!
- Surendra Khot
RBI in way of Amanath – Canara Bank merger
..............Canara Bank is prepared to take over Amanath Bank since January 2014. But the RBI has always tried to keep the matter concealed by giving excuses like code of conduct and approval of the present government. In April 2014, the high court had asked the RBI stating that if Canara bank is ready to take over Amanath bank, then what are the objections the RBI has? The RBI should come forward to help the customers otherwise people will lose faith in co-operative banks. It also instructed the RBI to take a decision at the earliest so that the depositors would be able to get back their money..................
RBI quiz competition
Imphal, July 10 2014: The Reserve Bank of India(RBI) will conduct an all India inter-school quiz competition in Imphal on August 6, 2014, from 9.30am to 12.30pm, in the auditorium of the Jawaharlal Nehru Manipur Dance Academy, Imphal. Imphal is among the 62 locations chosen to conduct the competition by RBI.........
Read..........
Read..........
Mahindra & Mahindra targets bank employees with special scheme
...........Commenting on the scheme, Mahindra & Mahindra Chief Sales & Customer Care Officer, Automotive Division, Arun Malhotra said it is a way of acknowledging support and contributions made by bankers and providing a further fillip to the company's relationship with them going forward. "Financiers are an integral part of the automotive business model since a majority of vehicle purchases are finance based in India," he added...........
World Bank assures Bandhan of financial support
.........A five-member team of World Bank, led by Ruhl, went on field visits in West Bengal’s South 24 Parganas district on Thursday to witness the activities of Bandhan and explore possibility of financial as well as technical support. “Ruhl said the World Bank would like to support Bandhan more on financial as well as technical fronts going forward whenever we need it. He assured us that we can sit together and find out the requirements. It may include equity infusion or debt financing,” Ghosh told FE. “They have given the massage that if we need equity infusion, the World Bank is ready to provide it,” he said...........
Several PSU banks have made consolidation proposals
......Talks of merging smaller public sector banks with their larger peers have been doing rounds for sometime, as asset quality issues and heavy regulatory regime have impacted ability of small banks to raise funds to meet Basel III norms. The government is also considering the proposal to set up a holding company for public sector banks to help them raise funds by leveraging their combined assets, Sandhu said. " We have to examine it, whether that is the right way to go. That is under consideration," he said................
Huge bank recapitalisation bill a fiscal risk: Fitch
Fitch Ratings has said the need to infuse capital in public sector banks is (PSBs) large enough to pose a risk to the Union government's fiscal targets, if the task falls on the latter. The Union Budget has estimated the new investment requirement at Rs 2,40,000 crore in PSBs till March 2019...........
Asset quality improvement in banking is one-two quarters away
.....Over the past few months, foreign fund flows have been strong and equity markets have been riding on the expectation of green shoots for pick up in industrial activity bolstered by a pro-business government. However, Edelweiss Securities Ltd feels that asset quality improvement for banking and financial services sector is still one to two quarters away............
Bypassing RBI tools to raise funds for infrastructure not prudent
............. This is also one of reasons why Indian banks came out unscathed from the global financial meltdown in 2008. So are we risking our banking system by allowing banks to raise long-term resource for infrastructure by bypassing SLR requirements. The lax credit appraisal system in the public sector banks that control two-third of the banking is already showing up by way of non-performing assets. Loans to infrastructure projects have been the worst hit since the economic slowdown. The banks have not only ..........
Pinarayi hits out at RBI
Communist Party of India (Marxist) State secretary Pinarayi Vijayan on Friday urged the Reserve Bank of India (RBI) not to shackle major cooperative banks in the State which performed well. Mr. Vijayan said the RBI was now directing cooperative banks to forgo their social commitment and concentrate on profit-making banking business.
The Hindu
Loan waiver scheme to affect credit discipline: Nabard
..............The governments know that it is not the right thing to do. But farmers would need some help in times of certain problems, Nabard regional Chief General Manager (Telangana, AP) Jiji Mammen, said. He said the bank has an exposure of Rs 7,600 crore in crop loans in the two States. The bank has not received any communication from the Reserve Bank of India on the loan waiver issue............
Agri loan waiver: 6,823 ineligible beneficiaries detected
...................."All direct agricultural loans disbursed to farmers between March 31, 1997 and March 31, 2007, overdue as on December 31, 2007, which remained unpaid until February 29, 2008 were covered under the scheme," he said. Reserve Bank of India (RBI) and National Bank for Agriculture & Rural Development (NABARD) were the nodal agencies for the scheme. They had issued "directions to the lending institutions on January 1, 2013 and January 14, 2013, respectively to examine the cases of any irregularities and take corrective steps.........
After driver's suicide, auto unions ask govt to curb illegal financiers
.......Auto Union JAC member A Sathi Reddy, in a statement, alleged that the Telangana government is turning a blind eye to the illegal activities of the unorganised financiers, who are neither registered with the Reserve Bank of India nor with any other government agency. A few days ago, a PIL was filed in the Hyderabad high court on the same issue, he added...........
Friday, July 11, 2014
RBI's Central Board met at Chennai to take stock of current economic situation & other issues
Raghuram Rajan says ‘determined’ to bring down consumer inflation
Nudges and pushes - Dr.Subir Gokarn
........I, for one, did expect the speech to begin with an overarching strategic statement, laying out an economic road map for the five-year term. Though there were some initial hints of this, in the event, Mr Jaitley dived straight into details. If there was, indeed, a big picture behind all these details, it had to be discerned. As the speech unfolded, outlines of a big picture did emerge from all the little details. Here are a few of its aspects..........
Tribute to Guru CVN by Shishya
I regret to read about the sad demise of Shri C.V.Nair. I did not work under him. I came across Shri Nair at New Delhi, when I attended in the year 1972 the All India Conference of Officers Association (representing the of Kanpur unit) conducted to go into the recommendations of the Cadres Review Committee, appointed by RBI and to offer the views of the Officers' Association to the Bank. The way he conducted the proceedings was excellent, having full clarity on all the issues affecting the Officers. He was one of the officers involved in furnishing lot of data on various issues affecting the Officers, before the CRC. He was also involved in the process of the Reserve Bank ameliorating the service conditions of Officers in various aspects - ensuring to a great extent that the transfers were not made at a time that would affect the academic year of the children, to bring inter-mobility of officers between the general side departments and specialised departments and in many other areas. I Pray to God to rest his soul in peace and tranquility.
- Mohana Rao
I knew and had high regards and respect for Mr CV Nair. I attended several General Council Meetings which he presided over. In one of GC meetings, when I vehemently opposed CAIIB as a condition for confirmation of DR officers, he called me aside after the meeting and told me that had I spent half of the energy in trying to pass CAIIB instead of fighting against the Bank's policy, I would have achieved my goal. I also worked under him when he was the Manager (RD) in Calcutta (Kolkatta). I had fought with him as the Secreatry of the Calcutta unit. But I always admired him. He, perhaps, was the only person who addressed the then Governors by their names while attending JCC meetings. He used to say that in the JCC meetings the President of the Officers Association is no way less than the Governor in status. Very bold, lucid and logical and firm in his arguments with the Bank. I always remained his 'shishya' (student) though on several occasions I had differed with him openly as General Council Member earlier and as the Secretary of RBIOA of Calcutta unit later. My sautes to the great CV Nair.
- P.Arvindan
With profound grief I share the sad demise of C.Vijayan Nair with all those who know him as CV Nair. He has been an expert in agricultural finance and a master orator besides a great writer. As a stenographer when I was attached to him, it was a pleasure to take down his dictation which helped me in improving my language and such was his flow of language and with words he will knit a garland. Precise with points, he used to face any deliberations - as I had opportunities to take down the proceedings of several meetings in which he participated and with authentic information he will put forth his views. At the same time he is very jovial and used to take everything light and a great analyzing personality. I had a small incident to quote here about the jovial quality of CVN. When I was assisting Mr.V.V.Mahadevan in his capacity as the Private Secretary to late B.N.Srivastava, who was then ED in charge of administration, CVN was then holding the charge of Chief Manager, DAPM. He used to come to meet for discussion of official cases with BNS and in one of the discussions, BNS was in a signing spree of cases in the presence of CVN and when I happened to enter the cabin of BNS, CVN called me “Sridharan, please bring all the pending cases now itself as BNS is in an initialing mood and this is the time to clear off all cases” BNS looked at CVN and laughed and when I was about to ask as to its seriousness, CVN said it was a joke that he cracked and it should not be taken seriously and I should not bring all the cases at that point of time. CVN is known for his critical analysis and at the same time a person with cool, calm and above all a very good humane displaying his simplicity in every approach.In his demise, we have lost a very simple but brilliant officer who also led the Officers community through his great leadership quality both in the official field as also in the Officers’ Association’s activities. Let me join all to pray - may his soul rest in peace!
- R.Sridharan
Former Principal Private Secretary to Governor
Meru Cabs asks RBI to extend recurring payment rules to foreign players like Uber
......Meru says foreign players like Uber are able to circumvent the mandated two-stage credit card authentication by routing their transactions through foreign payment gateways, on which RBI has no jurisdiction. This allows them to store credit card details and use them for recurring transactions without the RBI’s mandated 2-factor authentication. The report also points out that Uber can also charge consumer’s credit card directly in case of taxi cancellations, which is currently not available for any other Indian taxi players..........
Notice to RBI on Unilever petition
Unilever has filed a petition in the Bombay High Court against the Reserve Bank of India's directive asking it to file a revised application for preferential allotment of shares in Hindustan Lever Ltd (HLL). A notice to this effect was served on RBI on Friday. Bank officials confirmed this today. The application follows the move by............
Govt to sell stakes in PSBs instead of recapitalisation
The government stake in most public sector banks (PSBs) will fall as and when they access capital markets to fund their growth and meet the Basel III requirement. But, the government will continue to hold majority stake in all the banks. The annual recapitalisation exercise for banks is likely to be replaced by selling stake to retail investors. As a part of the stake selling exercise, the public sector banks will have a special offering for retail investors to give them a direct ownership. The government ........
RBI will work with govt on monetary framework: Raghuram Rajan
.........“Hopefully, by the end of the year, we think the economy is on course to come down to a consumer price index (CPI) inflation rate of about 8% and by the end of next year, to a level of 6%, and we will be in discussion with the government on monetary framework made in the budget announcemt..................
Budget 2014: Ground set for turf war between RBI and government
A battle for regulatory turf seems to be in the offing between Reserve Bank of India and the government with the finance minister pushing proposals by the Financial Sector Legislative Reforms Commission which was roundly criticized by RBI governor Raghuram Rajan...........
FM in tune with Rajan plans on monetary policy, new banks
..............The government also said norms of on-tap bank licences as well as niche banks will be announced during the course of the year – an initiative which RBI is perusing actively. “After making suitable changes to current framework, a structure will be put in place for continuous authorization of universal banks in the private sector in the current financial year. RBI will create a framework for licensing small banks and other differentiated banks,” Jaitley said.................
Union Budget 2014-15: Govt, RBI to devise modern monetary policy framework
.........The tone for inflation targeting was set by Finance Minister Arun Jaitley in his budget speech when he stressed on a modern monetary policy framework to meet challenges of an increasingly complex economy. RBI Governor Raghuram Rajan was in agreement with Jaitley when he said the central bank would develop the framework in consultation with the government during the year. Retail inflation rose to 8.28 per cent in May on account of rising food prices. Through the new mechanism, the government and the Reserve Bank of India (RBI) may look to bring down consumer inflation to 8 per cent by this year-end...........
Forward looking but not a dream budget for SMEs
..........One of the proposals that makes sense is the government proposing to set up a committee to examine the flow of funds to SMEs. The proposed committee will have representatives from Reserve Bank of India, Finance Ministry and the Ministry of Small and Medium Enterprises. This was very much needed. Although it is common knowledge that SMEs in India face severe challenges in terms of access to capital at different stages of running an enterprise and also grapple with high interest rates, government records on the problem are dismal. A centrally monitored ............
Budget 2014 displays intent towards financial inclusion
............... "After making suitable changes to current framework, a structure will be put in place for continuous authorisation of universal banks in the private sector in the current financial year. RBI (Reserve Bank of India) will create a framework for licensing small banks and other differentiated banks. Differentiated banks serving niche interests, local area banks, payment banks, etc., are contemplated to meet credit and remittance needs of small businesses, unorganised sector, low income households, farmers and migrant workforce."..........
Liberal infrastructure funding regime for banks
..........Put simply, these funds will not attract norms like Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR) and those on priority sector lending. While the finer details are awaited, banks will have more to lend for funding long-term infra projects. At present, for every Rs 100 crore raised through deposits, banks have to keep Rs 4 crore with Reserve Bank India as CRR (which earns zero interest income) and invest Rs 22.5 crore in government bonds to meet SLR norms. Beside, Rs 40 crore has to be lent to priority sectors. ........
Too early to declare victory over non-performing assets battle: RBI Governor Raghuram Rajan
............."I think, the most immediate problem we have to confront is that of rising level of stressed assets in the banking system. Fortunately in the last quarter those levels of stressed assets tapered off or flattened out. But, it is too early to declare victory," ................
AAP slams Naidu over farm loan waiver
Chief Minister N. Chandrababu Naidu may have heaved a sigh of relief after the Reserve Bank of India gave its nod for rescheduling of the farm loans, but the TDP supremo has drawn flak for ‘inviting’ the loan waiver trouble upon a new fledgling government. “Mr. Naidu used the loan-waiver promise as bait to garner votes in the elections and landed on a sticky wicket in the aftermath of polls. He should have done his home work properly on the feasibility of the proposal,”...........
Thursday, July 10, 2014
RBI Governor Dr.Raghuram Rajan visits Chennai
Dr.Raghuram Rajan, Governor of RBI has arrived at Chennai today in connection with the Central Board Meeting to be held on 10th July 2014.
The Governor gave audience this morning in separate meetings to the Executive Committee Members of the Forum of Retired Employees of RBI, Chennai and the United Forum of Officers and Employees of RBI. Sri R.Gandhi, Dy.Governor, Dr.Sadakkadulla, Regional Director (TN) and other officials were also present in the meeting.
The Executive Committee of the Forum of Retired Employees felicitated Dr.Raghuram Rajan on his assuming office as Governor of RBI. They honoured him with a shawl and presented a memento. While thanking the Governor for all the efforts he has taken after his assuming office for getting Government's approval to restore Updation of Pension, the Forum requested him to use his good offices for implementation thereof without further loss of time. They also requested him to grant enhancement of Ex-gratia amount to the Pre-1986 retirees which was stagnant for a long period. They impressed upon the Governor that this issue can be settled within the powers of the Governor. The Forum has submitted a written appeal to Governor in support of these requests. Sri T.G.Nair, Gen.Secretary of All India Retirees Assocation from Mumbai also joined the delegation.
The Governor was receptive and gave a patient hearing. He expressed his happiness over meeting the retirees. Regarding the ex-gratia enhancement he said he would look into the matter and do the needful. Regarding the Pension updation he admitted that the process is taking time despite best efforts. He assured that he will do everything to ensure a fair settlement of the issue at the earliest.
It is understood that during their meeting the United Forum of Officers and employees of RBI took objection to the Bank's unilateral decisions in respect of the re-organisation of the Bank's functions. The United Forum also demanded that one or two of Central Office departments may be brought to Chennai. They also demanded that updation of pension and one more option for pension should be implemented early. During the discussion they also insisted that adequate care should be taken to see that the interest of the serving employees is not compromised.
The Governor replied to the United Forum that the Bank will take the Unions into confidence while deciding about re-organising the functions. The Governor said he will consider the suggestion to de-centralise some of the Central Office functions by shifting the departments to its various offices. The Governor's reply in respect of the demand for updation of pension was the same as given to the retirees' forum.
- Chandraiah
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