..........The other advantage of taking banking to the rural areas is to assist about 75% of farming households, who as per government records have no access to formal sources of credit. The RBI is optimistic that financial inclusion would mitigates the exploitation of vulnerable sections by the usurious money lenders by facilitating easy access to formal credit.
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.
Monday, August 11, 2014
Regulations alone won’t work to control India’s illegal finance market
................“The actual problem relates to the factors that attract common man to illegal financiers, they say. The real solution (to the problem of illegal finance market) should come from the macro level,” said Abizer Diwanji, partner, financial services at EY India. Presently, the returns on savings offered by formal financial institutions such as banks on most products are negative if adjusted to inflation. This prompts a large section of savers/investors approach informal lenders to seek higher returns despite their high-risk nature. “Empowering Sebi is a step in the right direction. But the larger issue is ............
Roadmap for common KYC norms, demat accounts readied
.......“A draft roadmap for creating standards and protocol for setting up account aggregation facility for financial assets was deliberated in the meeting,” said the statement. Account aggregation means a single window for a consumer to view details of all of her bank accounts/investments/financial transactions. This will be a precursor to a common demat account for financial consumers. Rajan had earlier tasked the Inter Regulatory Technical Group (IRTG) to study the feasibility of two proposals.
Lens on SBI after complaints
BHUBANESWAR: The State Bank of India (SBI) and its subsidiaries have come under the glare of the banking ombudsman (Odisha) as maximum complaints were lodged against them last fiscal year. Releasing his annual report at the Reserve Bank of India here on Friday, banking ombudsman Bijay Kumar Mishra said, "We received 753 complaints against SBI and its associates, which is 50.27% of the total complaints received against all banks in 2013-14." .....
SBI asked to pay Rs 5,000 for receiving double payment of EMIs
........."The complainant has not disclosed this fact in his complaint and has hidden the relevant fact. Impact of this transition in the payment terms and its processing time as well as return of unused cheques must have been agreed between both parties involved in the transaction and effected upon. "...However, it is apparent that in the process, Opposite Party (OP) has received EMI payment twice for the months of March and April, 2011, but the same was accounted for in statement of account given to the complainant. "Thus, OP (bank) is only deficient on account of receiving double payment of EMI for month of March and April, 2011," the forum said..........
We may not merge associate banks, says SBI
Is Someone Using Your Cheque Book?
..........There was someone, he knew, who had deposited a cheque with the same number to take money out of his account. Is it possible? What was happening? Kataria sensed that he was not a victim of new-age frauds that newspapers have been reporting about: no one had stolen his Net banking password; no hacker had fished out his credit card data. Instead, someone had simply used a cheque that was a replica of a leaf in his cheque book. Half an hour later, Kataria was told by the bank's Mumbai branch manager that the cheque was debited at the bank's branch in Nipani, a non-descript town in Karnataka and 37 kms from Kolhapur. While Kataria did not lose any money (as the amount was credited back to his account by the end of the day), he as well as his branch manager are clueless of what happened, how it happened.......
Aadhaar Down, RuPay Up in Financial Inclusion Drive
.............The finance ministry has decided to limit Aadhaar's role in its welfare scheme payments and, instead, use ATM-enables RuPay cards for last-mile authentication to withdraw money. While it will continue to use Aadhaar for opening accounts and to eliminate ghosts and duplicates from beneficiary rolls, the ministry has decided to give RuPay ATM cards with bank accounts being opened under to-be-announced financial inclusion drive, Sampoorn Vittiyea Samaveshan, government officials told ET............
The Aadhaar conundrum
...........Incidentally, the Reserve Bank of India recently made the Aadhaar card a valid document for opening bank accounts, along with voter identity card, PAN card, driving licence, passport and MNREGA job card. Now, UIDAI officials have suggested that the Latwal family return the envelopes to the Aadhaar enrolment centre for further investigation. UIDAI officials, who learnt about this case, examined their records and found out that the Aadhaar cards were issued on the basis of the address proof provided, which in this case was the ration card.......
Rangarajan calls for timely completion of mega projects
.................Dr. Rangarajan, former chairman, Economic Advisory Council to the Prime Minister, in his lecture gave details on how economic liberalisation was initiated in 1991 and challenges faced by the country in implementation of structural reforms. He called for the need to complete mega projects in a time-bound manner and efforts to find out solutions to environmental and land acquisition problems. He said good governance was the key to economic growth and called for continuity in policies in various States to achieve the desired objectives.......
Fencing India’s economy from global shocks
.........................What is more important is that the Indian central bank has credibility about its ability to control inflation. In his conference with economists after he announced the new monetary policy last week, Raghuram Rajan did well to point this out: “My sense is that for the most part we would be driven by domestic conditions rather than external conditions in determining the interest rate, which is precisely why we are fighting very hard to build inflation credibility, because I think once you get some inflation credibility it gives you................
Now, easy transfer of jewellery to bank gold deposit schemes
............These centres will take just 45 minutes to weigh, melt the gold, verify the purity and issue the certificate against 90 days taken at present. The consumer will be witness to the whole process, against the present practice of completing the process (except weighing) in a remote location at Government-owned mint houses or in Switzerland. Once the process is completed in a purity verification centre, the gold will be taken to the company’s refinery near Delhi...................
Loan Reschedule Only in 4 AP, 3 Telangana Districts
.......According to sources, RBI executive director Deepali Pant Joshi, in the latest letter to AP chief secretary IYR Krishna Rao and TS chief secretary Rajiv Sharma, made it clear that the rescheduling facility would cover only loans given by commercial, cooperative and rural banks.
The RBI’s letter also said this concession would only include short-term production loans and exclude crop loans taken against gold loans for other allied activities..........
Loan waiver: Banks in the red
........."As a result, the effect on both banks and farmers is immense. While the banks have been hit by bad loans, they are losing on revenue as they are not issuing fresh loans. For farmers, it is worse as they are not getting loans when they badly need it, while interest on their defaulted loans is increasing by each passing day," ..............
Apex bank to the rescue once again
...........“As against Rs 33,000 crore proposed in the interim budget, actual dividend from the RBI stands at Rs 46,000 crore,” the government said in its medium-term fiscal policy statement last month, a document that is issued along with the Union budget. “Over the past years, the RBI has been setting aside a portion of its profits as reserves before declaring dividend to the central government. Over the years, sufficient balances have been built up in various reserves and, as such, the RBI has decided to pass on higher dividend to the government. Accordingly, the dividend declared in 2014-15 has been revised upwards,” the document added.........
Government banks shying away from lending to lower rated firms
.........Nitsure said capital conservation pressures will substantially cut down “irrational expansion of loans” in some smaller banks, which used to grow at a rate much higher than the industry average. The companies coming to banks, in turn, will have to make themselves more creditworthy for banks to lend. “The conservation of capital is going to inculcate a lot of discipline in both banks and borrowers,” she said..................
To Clean up System, Banks Turn Screws on Middlemen
State-owned Indian Bank and Andhra Bank are cracking down on middlemen, who act as facilitators between lenders and borrowers, to clean up the system after the recent arrest of the Syndicate Bank chairman and company executives over corruption related to enhancing credit limits..............
Read - ET
Read - ET
Damage control: Syndicate Bank merger on the cards?
..........“We will look into the matter (of Syndicate Bank) in detail and decide on next steps... At this point, we cannot say anything and we cannot rule out anything including its merger,”........
Bad loans and worse
....................Of course, these cases may well be the exceptions. But their high profile and visibility do raise questions about both the integrity of the credit-appraisal processes within banks and the quality of governance and supervision. The formality of credit appraisal is well-established. All banks have some objective and transparent formulae to score loan proposals on a variety of risk parameters. Committees at different levels are supposed to minimise individual influence on specific decisions. Despite all the paraphernalia of objectivity, these and other cases suggest that ...........
Ghost in the Cash Machine
.............The majority of Indian banks have a top-down approach to loan clearance, justified on the grounds of speed and improving market share. In case a branch manager does not approve the loan, promoters go directly to zonal or regional managers. In case they are reluctant, they go to the general manager, executive director or the chairman-managing director. And every superior justifies the decision on the ground of business growth but without any transparency or accountability . No wonder Percy Mistry , who chaired a government panel on financial sector reforms, chose to call Indian public sector bankers “zombie bankers“.........
IDBI Bank's Kingfisher Airlines loan under CBI scanner
..............“There was no need for the bank to take the exposure when other banks’ loans (to the airline) were getting stressed,” the CBI official said. “Along with other lenders to Kingfisher Airlines, CBI also asked us for details about the loan account. Most of the information has already been furnished. A few documents will be handed over to agency in the next few days,” said a senior IDBI Bank executive who did not wish to be named..........
Scrutiny of bad loans set to increase
Recent moves by the Central Bureau of Investigation (CBI) against IDBI Bank Ltd and the chairman of Syndicate Bank Ltd are likely signs of the government getting tough on bad loans in the banking system—as much a reflection of the rot in Indian banking as it is of the economic slowdown and policy paralysis that delayed projects. There could be more such action by enforcement and investigative agencies in the weeks and months to come and the banks themselves could get more aggressive in dealing with the sour loans on their books...............
Saturday, August 9, 2014
Vittaldas Leeladhar to be honoured
Think for an internal solution for lateral entry - Sitendra Kumar
My View on "United Forum's letter to Governor/Members of the C...":
Today in VITALINFO, there was news that UNITED FORUM has protested against LATERAL RECRUITMENT of Grade F officers in DEPR. Where is the need to do so? They must think on established pattern in Central Government for career progression and not unnecessarily put brakes in increasing the talent pool of RBI. What talent has to do with age? Why we keep on harping that we have an army of well-trained competent officers in various levels whereas truth is that the existing economic laws have failed to provide any solution to various myriad problems and efforts to evolve new economic tools are going on. A stagnant water smells. Why keep on raking stagnancy problem in RBI when no such problem exists in various all India services? These services have created a large number of posts to which officers are promoted in a time bound manner .All are promoted to HAG+ and Apex levels irrespective of number of vacancies. We can also find an internal solution to this problem but lateral entry in the field of Risk Management and Research is a must.
Today in VITALINFO, there was news that UNITED FORUM has protested against LATERAL RECRUITMENT of Grade F officers in DEPR. Where is the need to do so? They must think on established pattern in Central Government for career progression and not unnecessarily put brakes in increasing the talent pool of RBI. What talent has to do with age? Why we keep on harping that we have an army of well-trained competent officers in various levels whereas truth is that the existing economic laws have failed to provide any solution to various myriad problems and efforts to evolve new economic tools are going on. A stagnant water smells. Why keep on raking stagnancy problem in RBI when no such problem exists in various all India services? These services have created a large number of posts to which officers are promoted in a time bound manner .All are promoted to HAG+ and Apex levels irrespective of number of vacancies. We can also find an internal solution to this problem but lateral entry in the field of Risk Management and Research is a must.
- Sitendra Kumar
Outsourcing officers in higher grades is not new to RBI. Bank has outsourced engineers, security advisers, press relation officer etc. Now, it is the turn of common cadre officers - For wider choice of merit in selection of CGMs for the Central Office HODs. Why United Forum is objecting this now?
- Capt. C B Gupta
Questionable stand on specialisation - M L Mahajan
My View on "United Forum's letter to Governor/Members of the C...":
I congratulate the Leadership of United Forum for putting up their defence so effectively against the proposed restructuring of different functions of the Bank in the name of efficiency and specialisation. Specialisation was there in the Bank which had benefitted a few and was thus replaced by introduction of Combibed Seniority in 1972 after it was upheld by the Apex Court of the country. Four decades down the line specialisation is being revisited, is questionable and needs to be resisted jointly by all. I hope Bank would see reasoning in the averments made in the said communique by United forum and would take it on board while implementing the report..
- M L Mahajan
Exclusive interview with Daman Singh author of ‘Strictly Personal’
............Maybe some people would call it fate, but I don’t think it’s just that. Basically, my father started his career as a lecturer in Punjab University. He’s never applied for any job ever since, the offers just came to him. That’s how he went to the UN, to Delhi School of Economics, to the Ministry of Foreign Trade, the Planning Commission, RBI etc etc etc. .............
Raghuram Rajan gives Narendra Modi an excuse for going slow
Raghuram Rajan may be too good a central banker for India’s own good. Of course, the stability the Reserve Bank of India (RBI) governor has bestowed on Asia’s third-biggest economy is a good thing. When he started the job 11 months ago, the currency was plunging and markets were betting the country would be the first.......
Centre to take a leaf out of Chouhan's rural banking plan
..........The challenge before the state was the large tracts of unbanked areas where pay-outs by the government under social development schemes became a problem. With the help of nationalised banks, the state government started in these 'shadow' areas what the Reserve Bank of India called ultra-small branches, Sharma said. But there were major innovative differences between the RBI's definition of an ultra-small bank and the Madhya Pradesh 'samriddhi' banking. The RBI requirement is that an ultra-small bank should have a minimum core banking solution terminal linked to a passbook printer and a safe for cash collection. It could be even a mobile banking system operational from a van or a kiosk. However, in Madhya Pradesh .............
Syndicate Bank may be a candidate for merger
.........Although the government is yet to receive any formal proposal with regard to bank mergers, the Bombay-based United Bank of India, Dena Bank and Bangalore-based Syndicate Bank make a case for losing their individual entity. “UBI is a weak bank. There a list of another weak banks too. Syndicate Bank could be another. There is Dena Bank also. They need to be merged but we still do not know who could be the possible candidate for take over,” the official told Deccan Herald. ............
More cover needed
.................. As RBI Governor Raghuram Rajan recently said, the extent of the turbulence once the Federal Reserve and other central banks begin hiking interest rates cannot be gauged by anyone. We have received $12 billion of funds into stocks so far this year and $13 billion into debt. While not all the money that has been invested in equity will flow out — since equity investors have a longer investment horizon and are betting on improvement in economic growth and company fortunes —– the entire inflow into debt is at risk since ...........
Workshop to make police aware of bank frauds
.............The workshop revolved around frauds related to credit cards, internet banking, lotteries, etc. Deputy commissioner of police Sandeep Diwan said, "The workshop was organised as a large number of such frauds have been reported in different parts of the country. Nashik police personnel should be acquainted with the working processes of banks when they have to deal with such complaints in the future." Diwan added that many a times...........
Now, get credit or debit cards in just an hour, courtesy Citibank
.......“A pattern that has been observed is that most card users who have received an instant, pre-activated card make their first purchase within 8 hours of receiving it. This helps banks significantly reduce the cycle time between a credit card application, and the receipt of the card by theuserand the first usage –and in turn see an uptick in their interchange revenues,” ..........
Govt orders 5 Bharat Ratna medallions from RBI mint
NEW DELHI: The government is learnt to have ordered five Bharat Ratna medallions from the RBI mint, escalating speculation that the highest civilian honour may be awarded to more than one person around or after this Independence Day. ..........
ICICI Bank organises 21 coin exchange melas in four states across North India
.....The melas took place in line with the guidelines of the Reserve Bank of India. The melas were flagged off by RBI officials P.K. Lamba and Ram Sarup in the Chandigarh Sector 35 Branch. The melas were organised to offer free facilities of exchanging currency notes with coins to the general public as well as provide fresh currency notes in exchange for soiled and mutilated ones. Anyone.....
Opening bank branches in India, Pakistan might take some more time
......Indian public sector banks State Bank of India and Bank of India had their branches in Karachi and Lahore till 1965. However, they were shut down following the war between both countries that year. Ali said all processes concerning the grant of 'Most Favoured Nation' (MFN) status to India has been done by the Pakistan government. However, he also indicated that a final decision on this will be taken only after the meeting of both foreign secretaries on August 25....
Western Union may apply for payments bank licence
................"We are definitely looking at applying for payments bank. It is an opportunity for us and we are visiting it. The payments bank guidelines are a reflection that we need to be able to provide a broader set of financial services to a very broad community and the traditional ways of doing that are just not working," ...................
IDFC appoints Ravi Shankar to head proposed rural bank
Mumbai: IDFC Ltd has appointed Ravi Shankar, head of business and marketing at Fullerton India Credit Co. Ltd, to head its new bank, Bharat Banking. Shankar will build the rural banking business and drive all financial inclusion initiatives at the bank, the infrastructure financier announced on Friday. He assumes the role with immediate effect.....
Infosys, HDFC Bank Basing As India Wrestles Inflation
.............The data also hinted at some caution, with input prices accelerating faster than expected. That is a key concern in a country with consumer price inflation running at 7.3%, although down from 10% in 2013. Despite that threat, the Reserve Bank of India voted this week to leave its target interest rate at 8%. It sees inflation cooling off further and projects 5.5% growth for the country's economy this year.
Against that backdrop, ...............
ARC fees: RBI restores sanity
......This model will do away with the need to determine NAV based on the subjective and often unrealistic credit rating needed in 15:85 structure, and will, therefore, be more scientific and cost efficient. It is expected that in due course, RBI will adopt this alternative recovery based fee model. To sum up, the 15:85 structure is the right move but not final. ARCs will.....
SBI Wants External Team to Manage Bhushan Steel
..........“We will try to bring in a management agency which will oversee the day-to-day running of the unit during this period,“ State Bank of India Chairman Arundhati Bhattacharya told reporters in Mumbai on Friday. “We don't want it getting into any kind of trouble and create trouble for our exposure.“......
Read - ET
The friendly lender is here
...............Whatever the methodology adopted by SBI, or other banks and financing institutions, there is increasing interest shown by banks/other financial institutions and by the regulator, Reserve Bank of India, in recent days to increase the coverage of housing loans. This is commendable and deserves to be welcomed. For some time, the RBI has frowned upon the many frauds in property loans granted by banks, mainly bulk loans, and had even increased the risk weight for home loans as a cautionary step. Now proposals in the ......
One bad apple?
...............While there must be a presumption of innocence until there is a verdict of guilt, the facts as they have been reported raise some larger questions about public sector banks. Are the huge NPAs in PSU banks entirely attributable to economic adversity and bad judgment? Or do we have reason to suspect that they owe significantly to governance issues? The Syndicate Bank case draws attention to the bank’s loan appraisal and risk management systems. Even assuming the CMD enjoyed the discretion to make suo motu lending decisions without consulting the internal committee, how could there be a discretionary element in recognising NPAs? ............
RBI Governor's Tough Inflation Stance Risks Stand-Off With Government
....Mr Rajan, well known within the RBI for pragmatism, now must work with the government of Prime Minister Narendra Modi, which understands the need for - and wants - lower inflation, but doesn't see the value in hard targets. The governor's people skills may be tested when Finance Minister Arun Jaitley attends Sunday's RBI board meeting in Delhi, representing a government that is equally keen on boosting an economy that has just had two consecutive years of sub-5 percent growth.....
RBI to reschedule loans only in four districts
.................The State government wrote a detailed letter on July 4 justifying the need for crop loan rescheduling and cited various other factors such as consecutive years of natural calamities, rising input costs, lack of remunerative prices that drained the farmers financially and drove thousands of them to commit suicides. In its response, the RBI apparently relented to reschedule crop loans only in four districts- Srikakulam,Vizianagaram, Nellore and Krishna districts. But significantly Nellore district did not figure in the list of affected districts notified by the previous government. The RBI also believed to have made it clear in its communication that it would reschedule only pure crop loans and not gold loans, ie those availed against pledging gold............
SBI sees surge in agri loan defaults
..........."We believe that these two states have a lot of potential and unless these two states have access to bank finance, they will not be able to come up to full potential," said Bhattacharya speaking of the damage caused by defaults. "The loan waiver announcement has had an induction effect in other states and the repayment culture was affected. The main culprits are the states that are about to go to polls," said Bhattacharya, highlighting the risks of defaulting.........
CBI on Mallya’s doorstep
.......The agency registered the PE after finding IDBI’s report “not convincing”. The agency asked the public sector bank why it provided Kingfisher with the loan when the company was in the red. The bank’s answers were not convincing, a CBI source said. Prima facie evidences indicate the involvement of bank officials, the source said. The CBI will look into Mallya’s role — the representation he gave to avail Rs900 crore. Also, it will investigate if Mallya used the money for the purpose he took it for. Once the investigations are completed, the CBI is likely to file an FIR. Currently, investigations are in an early stage because IDBI officials are apparently reluctant to part with files related to the loan. “Some files have arrived. We will soon obtain the rest,” the source said..........
For SBI, a long, slow haul ahead, just like the economy
..................But the manner in which those gross NPAs have come down is not particularly encouraging. Recoveries and upgrades were lower than in the March quarter. Write-offs were higher, as a result of the sale of loans to asset reconstruction companies. And fresh slippages too increased by 25% compared with the March quarter. They increased particularly in the small and medium enterprises and agriculture sector, the latter because of the waiver promises made in Andhra Pradesh and Telangana. Loans to the mid-corporate segment continued to see high slippages, which highlights ........
Saradha scam: CBI conducts raids in Odisha
............CBI sources said role of regulatory bodies like the Securities Exchange Board of India (SEBI), the Reserve Bank of India (RBI) and the corporate affairs ministry will be examined according to the orders of the Supreme Court which had directed the CBI to probe the case. The agency has registered cases for alleged criminal breach of trust, cheating and criminal conspiracy among others. In 47 first information reports registered in Odisha, ...........
Cheque-bounce trial gets tedious
Recovering money if a cheque bounces will now be a lot more tedious and costly. In a landmark judgment, the SC has changed the ground rule under Section 138 of Negotiable Instruments (NI) Act to prosecute a person who had presented the cheque that bounced due to insufficiency of funds. Earlier, a case under Section 138 could be initiated by the holder of the cheque at his place of business or residence........
Read - TOI
Read - TOI
Exhibition draws crowd
.............Also, stall by Tamil Nadu Water Supply and Drainage Board, Reserve Bank of India and Steel Authority of India Limited explained the various ongoing projects and activities. About 70 private stalls displayed consumer materials, play materials for children, eateries and shops that sell various items. The 45-day exhibition was inaugurated on .......
Friday, August 8, 2014
Better safe than sorry - Dr.S.S.Tarapore
...........In the early 1960s, the RBI had to impose a regime of moratorium, amalgamation and mergers on hundreds of small banks. With the deeply ingrained belief in the immortality of scheduled commercial banks, the concept of a bank dying is alien to the culture of Indian commercial banking. The upshot of this is that profits are private and losses are public. The RBI should undertake a hard look again before going in for a proliferation of small banks...............
Rajan Warns of a Global Market ‘Crash’
....Rajan said that back then, countries were engaged in a period of competitive devaluation, in a similar way to central banks now being engaged in ever more accommodative policies. “We are taking a greater chance of having another crash at a time when the world is less capable of bearing the cost,” Rajan said in an interview on the journal's website dated Wednesday. Rajan said he worried about the impact of investors exiting markets all at once after buying heavily into assets inflated by these loose central bank policies. “There will be major market volatility if that occurs. True, it may not happen if we can find a way to unwind everything steadily. But it is a big hope and a prayer,” Rajan said....
Read - ET
Khan: RBI discussing with govt on auctioning cash balances
.......... “We have been in discussion with government whether they can release the (cash balance) figure… as of now, they have some reservation about releasing figures… We are in discussion with the government about auctioning their balances,” Khan said in a post-policy conference call with analysts. The government keeps its cash balances with............
Read - FPJ
FEMA administration — Prospects and Challenges : G Padmanabhan
............Speaking at the seminar, RBI Executive Director G Padmanabhan said, "the Indian economy requires investment on a massive scale not only to sustain a high growth momentum, but also to create the physical and social infrastructure to fulfil the needs of one and a quarter billion aspiring Indians. India has a high rate of savings, but it is inadequate to meet the gargantuan investment needs of today." While on the subject of foreign investment, it is important to note ..............
Unconventional monetary policy and the Indian economy - Deepak Mohanty
Paper presented by Mr Deepak Mohanty, Executive Director of the Reserve Bank of India, in the SAARCFINANCE Governors’ Symposium, Colombo, 24 July 2014
....The limitation of transmission of conventional monetary policy through interest rate led major central banks to undertake measures which were monetary in nature but unconventional in their instruments and operational targets. For example, a crisis may impair the normal functioning of financial markets. In such a situation, central banks can resort to direct financial asset purchases and/or loosen collateral standards to expand their balance sheets. In the recent global financial crisis ........
Read......
RBI to widen campaign area
......“The reason for the marginal decline maybe because more people were satisfied about the scheme the earlier year. But I can assure you that there was no less effort from the banking ombudsman office of RBI to take the awareness campaign forward,” Anand Prakash, the banking ombudsman for the Northeast, told reporters here today..............
RBI proposes 'anytime anywhere' bill payment system
.............In this backdrop, the RBI has proposed Bharat Bill Payment System (BBPS) with an objective to implement an integrated bill payment system and "offer interoperable and accessible bill payment service to customers through a network of agents, enabling multiple payment modes, and providing instant confirmation of payment. "Hence, it has been decided that the existing players in the online commerce segment catering to the requirements of bill payments as well as aggregation of payment services (in relation to bill payments) will be a part of BBPS," the RBI's draft guidelines said. ..........
VITALINFO - Delay regretted.........
Dear all,
Due to non-availability of internet, today's VITALINFO is delayed. Though I was ready to start working at 3.30 a.m. as usual, I was not able to do so. Finally, I had to go to another location to resume the VITALINFO. The delay is deeply regretted with a sincere request to bear with me.
- Mangesh
GITAM award for Rangarajan
GITAM University will present its annual GITAM Foundation Award to noted economist and former Governor of Reserve Bank of India C. Ranagarajan at its 34th Foundation Day celebrations on August 9.
The Hindu
SBI's first woman chairperson Arundhati Bhattacharya is ringing in change
.........."If the past chairmen and the top management had not had the ability to envision what the future would be like, we would have become irrelevant a long time ago," says Bhattacharya , who is yet to move to her new renovated chairperson's office. The 58-year old, however, agrees that much cannot be done in a very short tenure. "It takes time for something to really filter down and start giving results," she says. The government now seems keen to set the house of SBI in order. Bhattacharya's entry into the corner room has brought some firsts to the bank, often a victim of musical chairs at the top. For the first time, the bank is experimenting with a fixed tenure for the chairman - Bhattacharya has got a fixed three-year term...........
Banker, former MP Eknath Thakur dead
No board changes till 19 August, Yes Bank tells Bombay HC
..................However, justice G.S. Patel asked for an assurance from Yes Bank that it will not make any changes in the board till the hearing of Kapur’s plea. He said, “Once I have started hearing the motion, if the board constitution changes, then I don’t want to face a situation that reliefs sought by Darius Khambata (counsel for Madhu Kapur) become in-fructuous.” While the bank gave an assurance to justice Patel who is presiding over the case, it asked the court to not record the undertaking or pass an order to this effect...................
Appeal to Governor for 100+
Respected Governor Dr, Raghuram Rajan,
It is with great joy that I advise you that one of our RBI Retirees has crossed a Hundred Years!. This Centenarian was born on 22nd February 1914. He is Shri.P.V.Krishnamurthy who joined the Bank in the year 1935 as a Coin-Note-Examiner Grade II and retired in the year 1972 as Manager (equivalent to Regional Director of today). Happily he is in good health . He resides in Gopalapuram, Chennai with his wife, daughter and son-in-law.
Your distinguished predecessor Governor Dr. D.Subbarao, on my request, felicitated another RBI Retiree Shri M.G.Nair, who was on the brink of 100 years. Dr.Subbarao sent a team headed by Kochi Office Chief Shri E.Madhavan and a retired Adviser, Shri.K.N.S.Unni to the Ottapalam residence of Nair and he was presented with a shawl, coconut and the P J Gold Medallion and his wife a bouquet. Shri. Nair missed his Century by a whisker—a few months.
I earnestly request you to send a similar team headed by the R.D of Chennai and felicitate Shri.Krishnamurthy and his wife. \
Yours faithfully,
P.P.Ramachandran, (Retd DGM)
Reserve Bank Officers' Association on Lateral Recruitment - Restructuring and HR initiatives
................It is therefore highly debatable whether RBI should look for outsiders to perform research in a core functional area where RBI has excelled in the last few years. The issue assumes even more significance in the background of the fact that RBI has an army of well-trained competent officers in various levels and belonging to different age groups (with the younger officers providing and important second and third line of talent pools). Having said so, Bank going in for head hunt to bring in an officer of 35 years of age as direct grade 'F' officer...........
United Forum writes to Deputy Governor Shri S.S.Mundra
..........All the above issues are at various stages of development and immensely concern us. There have been huge mobilisations of employees and officers seeking redress including cease-work programme......
United Forum's letter to Governor/Members of the Central Board
........What we find disturbing is that the assurances coming from the topmost echelons of the institution are also not being honoured leaving us wondering as to whether this is by design!! We look at the chain of events relating to involvement of staff / officers and their feedback, we come to the disturbing conclusion.......
Gold imports: HC seeks Centre, RBI replies on plea against easing curbs
.....................Justice Vibhu Bakhru sought replies from the ministry of commerce and the RBI by 23 September on the plea of Delhi Bullion Jewellers Welfare Association, which contends that the circular was passed without following due procedure and is not a policy decision. The petitioner organization has contended the 21 May circular was issued in an “arbitrary manner” by the previous government right after the Lok Sabha election results were announced.........
Modi govt to take leaf out of MP CM rural banking book
..........But there were major innovative differences between the RBI's definition of an ultra-small bank and the Madhya Pradesh `samriddhi' banking. The RBI requirement is that an ultra-small bank should have a minimum core banking solution terminal linked to a passbook printer and a safe for cash collection. It could be even a mobile banking system operational from a van or a kiosk. However, in Madhya Pradesh .........
Sampoorn Vittiyea Samaveshan: RBI, NDA not on same page over financial inclusion
..........Top government sources told ET that the Reserve Bank of India (RBI) was in disagreement with three critical elements of the drive. For one, RBI has categorically stated that a Rs 5,000 overdraft "may not be allowed" for the 7.5 crore new bank accounts that the Centre is keen to open in the next year as a part of the financial inclusion drive. While the dispensation is recommending
‘RBI inspection not related to CMD’s arrest’
.............. “it is an annual process conducted by the RBI. The RBI has been doing this for the last two weeks under the AF-5 (annual financial accounting) guidelines. It is done for all banks and it is not connected to the alleged bribery charges against Mr. Jain or his arrest.”..............
Syndicate Bank is no one-off: Dear Rajan, here’s what you must do to clean up public banks
The Reserve Bank of India (RBI) seems to have somewhat underplayed the Syndicate Bank scam as a one-off incident. At least, that is the sense one gets looking at the comments of Raghuram Rajan on the matter at a presser that followed the monetary policy announcement on Tuesday. The governor cautioned that one shouldn't extrapolate the matter to other public sector banks. "I would emphasise that one should not extrapolate this to the entire public sector banking system and assume that all the problems in the public sector banks are because of criminality rather than other factors," Rajan said. He's right. Not all the problems in the public sector banks are because of criminality factor, but some are. The RBI must acknowledge that.......
Indian banks to raise IT spending by 10% in 2014 - Gartner
......."The expansion strategy of banks is entering its peak in India with the release of two new bank licenses granted by the Reserve Bank of India (RBI) to IDFC and Bandhan Financial Services. There are another two dozen financial institutions still waiting for the same grant,"........
RBI tweaks methodology for computing rupee reference rate
The Reserve Bank of India said on Thursday it would tweak the metholodogy for computing the daily rupee reference rate from September 1, accepting the recommendations issued by a central bank committee on changes to various financial benchmarks........
PSB Boards to be Cleaned up: Sitharaman
The government is set to embark on a cleanup of public sector bank boards in light of the recent arrest of a bank chairman, said Nirmala Sitharaman, minister of state for finance as well as commerce & industry. ......
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