LUCKNOW: HDFC Bank launched its secure banking programme at Lucknow in Uttar Pradesh. The initiative is part of HDFC Bank's ongoing endeavor to create customer awareness about safe banking practices. The programme will be rolled out across all 284 branches in Uttar Pradesh to educate customers and create awareness. The initiative was launched by guest of honour, Kshitij Singh, Assistant General Manager, Reserve Bank of India, Lucknow. .........
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Thursday, August 28, 2014
Failed ATM withdrawals a concern, says banking ombudsman
.............According to N Krishna Mohan, Banking Ombudsman for Andhra Pradesh and Telangana states, the cash that remained undelivered in this manner was often pocketed by those who periodically open the ATM to replenish it with cash. "As the bank does not keep tab of such failed remittances on a real time basis they obviously fail to notice that the cash accumulated in the 'divert tray' was pocked by those who are entrusted with the job of replenishing the ATM with cash. Customers face the prospect of loosing the money as the banks question the customer's claim in the absence of any proof," Krishna Mohan said............
Ghatkopar bank robber left behind Rs 3L in `loose change'
..............The “uniqueness“ of the heist has alarmed the police, who say it bears multiple signs of an insider job. The thief, they point out, gained entry into the bank painlessly by using sets of duplicate keys. Hiding from the CCTV cameras under an umbrella, he opened the strongroom--which is accessed only by the bank manager and cashier--again with duplicate keys. He took a bagful of money out of the branch and returned for another round of stealing. Altogether, he took away Rs 55.4 lakh. There was another Rs 3 lakh in the room, but he did not remove it “because the notes were of the denominations of Rs 5 and Rs 10,”................
RBI launches 8th Round of Survey on Computer Software and Information Technology Enabled Services Exports
The Reserve Bank of India has launched the 8th round of its Survey on Computer Software and Information Technology Enabled Services (ITES) Exports. The reference period for the Survey is 2013-14.............
RBI simplifies ECB norms
...........RBI said the company should meet the conditions like all-in-cost of fresh ECB must be less than that of the all-in-cost of existing ECB. Consent of the existing lender must also be available. Other conditions include the refinancing shall be undertaken before the maturity of the existing ECB and the borrower must neither be in the RBI’s defaulter list and nor .....
Rebooting pension reforms with retirement plans
...........The original design of NPS was visionary—unbundling fund management, centralized record keeping and annuitization, portability across employers, individual accounts, simplified commoditized indexed product options and low costs through competitive bidding. The NPS that has got implemented on the ground is not the first-best solution as was envisaged but a diluted version of the original framework..........
RCom ready with USSD platform for mobile banking
............."Financial inclusion is a national priority and we are proud to launch this platform whichcan offer basic financial services even in areas that are beyond the reach oftraditional banking. Mobile technology has a crucial role to play in servicingthe under-banked and unbanked sections of society, and RCom's endeavor is tobridge this gap with its customised solutions," .........
Jan Dhan Yojana conflicts with RBI’s payment banks, but the system may yet evolve
Every two years, India's financial inclusion drive reformats itself into a brand new, entirely unrecognisable avatar. Till about three years ago, it starred banks, the Reserve Bank of India and banking correspondent companies. Then came DBTs and the finance ministry, with its common banking correspondent (BC) auctions. Also came Aadhaar, opening bank accounts and keen to become sole authenticator for all financial transactions. In 2014, the landscape has changed again........
Top bankers sweat it out in rural India to rope in un-banked homes
.............Bankers have however continued to face the real challenges of the financial inclusion programme. What is more worrying them is that each account also incurs an annual maintenance of about Rs 100. But, in the long run, the huge network of bank accounts is expected to plug the pilferage in the direct benefit transfers and banks hope to earn commissions by running government programmes. If worked well, this is a big advantage because the government and the banks can keep a tab on the beneficiaries of the subsidy schemes, says a banker.........
How Raghuram Rajan changed rupee's fortunes
...............On September 4, at a time when the rupee was the worst performer among Asian currencies, Raghuram Rajan took charge as RBI’s governor. A slew of measures that he announced for attracting inflows helped improve sentiment. With these steps, the rupee’s fortunes also turned. Business Standard looks at the situation a year ago and compares it with now........
RBI adviser says weak monsoon won’t stop India inflation slowing
.........“The policy stance of the RBI, which has the highest benchmark interest rate among Asia’s 10 biggest economies, is mainly aimed at tempering inflation expectations and not to prop up the rupee,” said Virmani. Governor Raghuram Rajan, who raised the repurchase rate three times in the past year to 8%, left borrowing costs unchanged at a 5 August review. “The RBI’s stance is clearly directed at inflation expectations,” said Virmani. “Any RBI action to reduce rupee volatility will occur at the time of instability..............
Is India heading towards more financial sector volatility? - Renu Kohli
.............Fundamental bearings are extremely modest in contrast. Although remarks by officials indicate that April-June quarter GDP growth may be 5.5%. The Reuters poll consensus, data released this Thursday, was 5.3%, an improvement over January-March’s 4.6%. But last year’s low base (4.7%) can’t really be ignored. Neither can the fact that GDP growth is likely to be heavily predicated..........
Does monetary policy really matter?
.............This means that the use of the traditional trade-off between growth and inflation, something which has been spoken of by textbooks and assiduously pursued by monetary authorities, may not really hold. Taking this a step forward, it goes beyond the rational expectations theory which says that monetary policy cannot affect growth, but also contests monetarism by saying that the best it can do is to adapt to inflation, when it cannot control it.
The crux really is that when we have a situation of supply-driven inflation and low-demand led growth, working on the production side and going in for pump-priming a la Keynes could work. At any rate, monetary policy may not really matter.
Reserve Bank of India Gov. Rajan: Inflation on Target
........A former chief economist for the International Monetary Fund who became governor of the Reserve Bank of India last September, Mr. Rajan has previously said he wants to see consumer-price inflation slow to 8% by January and 6% by 2016. "If we look like we're not set to hit it obviously we'll have to tighten," Mr. Rajan said. "If we look like we're going to achieve it well in advance, we have room to be more accommodating." Mr. Rajan, who as governor has final say over interest-rate setting, left the RBI's main policy interest rate unchanged at 8% earlier this month, citing slowing inflation that was still too high for comfort.........
The Raghuram Rajan and Narendra Modi show
........A series of measures initiated by Raghuram Rajan, who took over as governor at the Reserve Bank of India (RBI) on September 4, however, helped arrest the slide of the rupee. Chief among these was the move to remove the dollar purchases of oil marketing companies from the market and to announce that these bills could be settled in rupees if necessary. ............
Banks face new consumer liability issue
........."Banks have been resisting becoming a broker for a long time since their officials would be held responsible for claims, grievances related to mis-selling and others. Now that the banking regulator has talked about liability for sale of third-party products, they would have to look into servicing all needs of customers,"...........
PSBs and private banks
.....comparing PSBs with private banks is like comparing apples and oranges. PSBs were formed with the motive of rescuing an agrarian society from private money lenders and to infuse government help in the form of agriculture subsidies, which has been fulfilled to a large extent. Meanwhile, private banks exist for the benefit of the shareholders by augmenting profit. .....
Banks seeks continuation of reporting on wilful defaulters after asset sale
..........Senior public sector bank executives said there is apprehension about misuse of system by willful defaulters after banks stop reporting on them. Taking benefit of lack of information sharing, they may try to getting fresh finance by floating new ventures. This reporting will help ARCs in recovery of dues out of the financial assets acquired by them and thus redeem Security receipts........
‘RBI not inclined to cover more mandals in farm loan recast’
..........“Whatever could be done, last month we have already given,” K.R. Das, RBI’s regional director for Andhra Pradesh and Telangana said on Wednesday. The central bank had agreed to reschedule crop loans up to a maximum of Rs.1 lakh each taken between April and October 2013 in 120 mandals in Andhra Pradesh and 100 mandals in Telangana, covering a total of seven districts.................
RBI waits for things to settle down in AP
The Reserve Bank of India (RBI) is awaiting identification of the capital city for opening of its office in Andhra Pradesh. Right now, it is not thinking in that direction and moreover there is no request as yet from the Andhra Pradesh authorities. “As of now we are operating from Hyderabad for both the States”, said K.R.Das, Regional Director, (RBI), AP and Telangana. As a practice, the RBI sets up its offices in all State capitals. “We will definitely have our office in Andhra Pradesh also. Let things settle down”, Mr. Das told presspersons here on Wednesday........
Putting the cat out of bag
My View on "RBI for Making Aadhaar Sole Platform for Financial...":
Ms Deepali Pant Joshi, ED, RBI has put the cat out of the bag. According to her "Over 90 per cent of the 4.1 per cent gross NPAs are created by large corporates," "Among the poorer sections, only 4.4 per cent of total NPAs are from the farm sector, while the share of the MSMEs is only 5.2 per cent. So where is the poor retail customers creating bad loans in the system? NPAs are not a creation of the poor but the rich," News that huge share of NPAs is from the corporates is no surprise given that NPAs like that of KFA loans, Bhushan Steels etc., are still not classified as wilful defaults. And RBI has done very little to bring sense to the bankers and it is just watching the actions from the sidelines. If none of their inspection reports of various banks which financed KFA has observed the failure of banks in classifying the KFA loan as a wilful default there is something wrong with the quality of such inspection reports and RBI should revisit those reports and find if there was any action required against the officials who inspected these banks. If the farm loan share is so low in NPA, then why should not RBI allow Andhra Pradesh Govt to waive the farm loans. Every year, every bank writes off huge amount of corporate debts through management decisions. Has any bank at any time waived any farm loan through management decision? The answer is a clear 'NO'. If banks fail to write off farm loans for genuine reasons the governments would be forced to step in. That is what AP govt is trying to do.
- Dr.S.Santhanam
Centre won’t direct RBI on loan waiver
The Centre has expressed its helplessness in directing the Reserve Bank of India to reschedule crop loans despite Chief Minister N. Chandrababu Naidu’s efforts. RBI has recently given the nod for rescheduling of loans in four districts up to a limit of Rs1 lakh, excluding gold loans. Union finance minister Arun Jaitley on Tuesday suggested that the state government should directly deposit the money into the accounts of farmers instead of asking the RBI to direct the banks.............
Banks seek stricter norms for reporting on wilful defaulters
Banks have urged the Reserve Bank of India (RBI) to amend the norms for reporting on wilful defaulters and non-performing assets (NPAs). They said to prevent defaulters from taking fresh loans from other lenders, reporting to RBI and credit information companies should continue even after NPAs were sold to asset reconstruction companies. Banks and financial institutions can’t grant additional facilities to those listed as wilful defaulters. Also,.........
Syndicate Bank bribe-for-loan scandal signals deeper rot in banking system
......Recently, Reserve Bank of India (RBI) Governor Raghuram Rajan said that "a good middleman acts as a broker. But if the point of a middleman is to pay bribes, that is obviously not okay. Its part of the whole set of governance issues that we need to look at." This is a rare occasion when policymakers and bankers have accepted the presence of middlemen in the system.......
Few women manage Indian funds
............. ‘Women in fund management: a road map for achieving critical mass, and why it matters’. “Women represent a scant 10 per cent of traditional mutual fund managers and a lower percentage in alternative investments fields. Only three per cent of about 9,000 hedge funds have a woman in charge,” ............
Vizag co-op bank eyes multisate licence
.............The cooperative bank currently operates 35 branches, of which two are in Telangana. In the next few years, it is planning to add three more branches in Telangana, mostly in Hyderabad, said Manam Anjaneyulu, chairman emeritus. After getting the multistate licence, the bank plans to enter Odissa and Karnataka.........
Wednesday, August 27, 2014
Hits 'n' misses: Analysing Raghuram Rajan's first year in office
RBI to Step Up Vigilance on Banking Sector to Prevent Frauds: Deputy Governor
.........While speaking on the sidelines of an industry event in Mumbai, Mr Gandhi emphasised the need to go "deeper", and hence, the apex bank may also carry out forensic audits of banks. "One has to go behind the fraud and their modus operandi to find out what are the loopholes...which need to be corrected. For that, forensic audits may be done," he said........
RBI for Making Aadhaar Sole Platform for Financial Inclusion
........."We need to resolve the issues regarding the legality of the Aadhaar number so that this can be the sole number for any financial transactions ... Then the whole financial inclusion programme, including the direct benefit transfers, can be rolled out without hitches and any duplication," RBI Executive Director Deepali Pant-Joshi said at an event organised by Dun & Bradsheet in Mumbai.........
Financial inclusion mandates do not work
.........."These mandates do not work, you need to create an enabling environment for it. In order to make the financial inclusion plan effective steps have to be taken to create a credit absorption capacity which can be built via financial literacy. Other things such as proximity to banking services and less documentation process should also be ensured,".........
Debt waivers inimical to repayment ethic: RBI official
..........."On farm loan waiver issue, you know I have been on a hand-to-hand combat (mode) with the Andhra government. I said no! No! No," RBI Executive Director Deepali Pant Joshi told reporters on the sidelines of an industry conference here, when asked about the progress on debt waiver issue. ................
Nabard's rural infra fund needs a relook, says RBI official
A senior Reserve Bank official today expressed displeasure at the working of Nabard's rural infrastructure development fund (RFID) and termed it a "committed line of credit" to the states which is not getting used for creation of credit absorption capacities. As an alternative to the RIDF, which gets funded through the priority sector lending (PSL) shortfalls by banks, Deepali Pant Joshi, RBI Executive Director, suggested a migration to newer instruments like tradable PSL certificates............
RBI releases note, poster on KYC to help public open accounts
Reserve Bank today released a note and a poster to increase awareness about Know Your Customer (KYC) norms for opening bank accounts. The objective of this is to bring awareness among the general public about the KYC simplification measures taken by the Reserve Bank in the recent times with a view to helping the common man in opening bank accounts, RBI said in a notification............
RBI takes the first step towards customer protection
.........The draft is important because in it RBI formally accepts that the sale of third-party products (not the ones manufactured by banks but others such as mutual funds, insurance and car loans) comes under its regulatory umbrella. My fight with RBI for a decade has been the unforgivable attitude of “not-my-problem”. It has actually been said to me: this is not our problem; the other regulators need to deal with it. But with this draft, third-party product sale, advice and due diligence is firmly the bank’s responsibility. I see the draft as a step in the right direction, but I find that it falls short of giving a road map of implementation, leaving it to the interpretation of each bank. Banks are known to tick boxes set before them by RBI and smirk offline at having had the regulator. RBI will have to show intent to put teeth into these regulations..............
RBI waives address proof for small accounts
The Reserve Bank of India (RBI) on Tuesday allowed banks to open small accounts for people, without seeking ‘officially valid KYC documents’. The central bank has also allowed banks to accept single proof for both identity and address instead of the current practice of asking for different documents. “A small account can be opened on the basis of a self-attested photograph and putting her/his signature or thumb print in the presence of an official of the bank,” said a circular issued by the bank on Tuesday............
RBI says its system rugged enough to handle scams
The banking system must have been rocked by the Syndicate Bank fraud that was unearthed a while ago, but, Reserve Bank of India (RBI) is not flustered, going by the reaction of RBI Banking Ombudsman (BO) M Palanisamy said today in Bangalore. Speaking to reporters in Bangalore today, Palanisamy said that a solitary instance of fraud cannot bring down a bank. "Banks are subject to regulation and online reporting of its NPAs (non-performing assets) and also the offsite surveillance system. Many banks across the globe are in crisis. But in India, with constant monitoring by the RBI, all banks, including foreign ones are running properly," ..........
A bill deducted 214 times
....."The cardholder had used his card for a one-time payment of Rs 2,200. But the bank had debited the same amount as many as 214 times, amounting to a whopping total of Rs 4,70,800 towards payment for telecom services. The bank's systems did not seem to have the filters to identify such aberrations. However, we were able to refund the entire amount to the cardholder by the bank," revealed M Palanisamy, banking ombudsman for Karnataka. .........
Tug of War On at RBI
Governor Raghuram Rajan may have prevailed over the staff union on RBI restructuring, but there's still some heartburn in the organisation. The officers' union is disturbed by his assertion that he has the legal power to appoint executives.This came after he told another union he will consider their objections. Is it just the unease of staff over something new happening after decades, or are the complaints genuine? Watch this space.
ET
ET
Persist to resist
My View on "RBI officers, staff threaten strike over lateral r...":
It is a necessary move. Officers are recruited with higher academic qualifications and after rigorous selection process. The training schedule is also well drafted. As they go up in the hierarchical ladder, they have to several filters. In a very steeply pyramidal structure chances of becoming an F grade is less and less. Not to speak of becoming an ED or DG. A very remote possibility. In such a situation, bringing an outsider at F grade or above level is a punishment for the serving officers. RBI tries to make such attempts periodically. When the present CGM of Communications Dept was recruited as Press Relations Officer at D grade level in that time we all resisted. Gate demonstrations and threat of strikes were given by all the Associations jointly. The Bank called the representatives and assured that such type of recruitment would be very rare and limited only for a very special assignment when such talents are not available within. We have to resist this move of the Bank in the interest of serving staff and officers.
- P Aravindan
3D VITALINFO
My View on "VITALINFO - 'Dedication n motivation on a proper t...":
- V.S. Das, former Executive Director
Please add me into your big list of admirers for the stupendous task you are handling. I only now know the exact meaning of the words 'dedication' and 'commitment'. God bless you and give you good health.
- B K Katyal, Ex-CGM
Dear Mangesh,
Rain or shine
At home or away
Mangesh always holds sway
Neither for a penny nor for a dime
He brings our VITALINFO
always on time.
A billion thanks Mangesh
- B. K. Kamath, Retd CGM
Dear Mangesh,
One should learn from you the three 'D's that "what is called dedication, devotion and discipline. It is amazing experience to read your VITALINFO. I am truly indebted to you for this selfless service of yours! There is no suitable word in the dictionary to praise you. I was struggling to post my comments on your blog/site but couldn't succeed! Hence this is my personal message to you. Kindly accept my best wishes and Kudos to VITALINFO !!! May God bless you! Regards
- Janaki, CAFRAL
Dear Mangesh
Congrats for the accolades you are getting for your well deserved single handed work from all and in particular from ex Governor. I fully agree with the suggestion of Mr.Mukesh Kumar MoF CAB and endorse the same ..You may get more energy and zeal to continue to offer us a full cup of coffee every morning. Best Luck.
- R R Kulkarni, Ex.GM NABARD and Ex. MoF CAB Pune
Sir
The comments of Shri Mukesh Kumar, F.M. are the same we wish to express. You have got all the Medals in these words. Keep it up.
- S S Hendre, AM, CAB, Pune
VitalInfo will never ever get derailed with this kind of dedication.
- Gopal
Wishing you all the best in the untiring effort to keep us up to date.
- Aravindakshan Menon
Looks, VITALINFO has grown into a 'FAMILY NEWSPAPER' for RBites. While it covers financial sector developments excellently well, VITALINFO also allows members of RBI family to share their thoughts. Mangesh, I still feel that you should get more support from RBI and appreciation from the users of VITALINFO. Warm regards
- M G Warrier
Dear Mangesh,
Kindly include the name of Shri D.T.Khilnani, author of the book "Foreign Exchange Management Manual". He had worked with me in the Economic Department thirty years ago and I am proud of his achievement. Kindly ensure that he gets VITALINFO regularly.
- P.P.Ramachandran
No decision on appointment of chief economic adviser
The finance ministry has not yet decided on the name of the new chief economic adviser, a top official said. According to the official, finance minister Arun Jaitley has met several people but has not finalized the name. The post of CEA has been lying vacant since Raghuram Rajan left the finance ministry to join the Reserve Bank as governor in September last year............
Income tax dues can be paid at RBI offices, 29 banks
...........“Pay IT dues in advance at RBI or at authorised bank branches...These will obviate the inconvenience involved in standing in long queues at the Reserve Bank offices,” RBI said in a notification today. It said the assessees can use alternate channels like select branches of banks or the facility of online payment of taxes offered by these banks..........
‘Interest rates likely to come down by this year-end’
........I think rates will come down by the end of this year. For this the RBI governor needs clear understanding on inflation and fiscal deficit. I don’t think interest rate at this point of time will bring in a major turnaround. Because rates for corporate borrowings, personal and car loans are down at this point of time and there is not much demand...so when it picks up RBI can always infuse liquidity by reducing SLR and CRR. So, I think we are in the right trajectory and dollar rupee is stable...........
A Banker's Shock
Bankers are known to drag their feet over demand for loan restructuring from small borrowers. A banker who had prolonged a restructuring demand from a client, got a shock of his life, when the promoter, in sheer frustration, walked up to the banker and laid the keys of his headquarters and factory on the banker's table saying: `You run the companay'.The banker was bewildered. Will this become a new norm?
ET
ET
RBL Bank plans to raise Rs.1500 cr in maiden float
RBL Bank has hired four banks to manage a planned $250 million (Rs 1,511 crore) share sale in the first initial public offering in nine years by a private sector lender in the country, said people with knowledge of the matter..........
IDBI Exec To Head UBI?
The latest buzz within United Bank of India, the troubled lender which is showing signs of recovery quicker than expected, is that a top IDBI Bank executive could be its next chief. The IDBI executive seems to have collected UBI's annual report a few week's ago from the lender's Mumbai office. The executive was earlier to head another bank, but a vigilance commission enquiry halted the appointment.
ET
ET
Banks Get an Electric Shock, Fear a Surge in Bad Loans
The Supreme Court's ruling on Monday that declared the allocation of more than 200 coal blocks illegal has made the banking sector nervous about the final outcome, given that any likely cancellations will hurt borrowers' ability to repay loans and steeply increasing the bad debt burden...........
Read - ET
Read - ET
India Post retains banking ambition
.........."We intend to get into the banking space," said Kalpana Tewari, member (planning & technology) at the department. "We are waiting for the final guidelines to see how we fit into it and the benefits to the organisation. At present, we only have savings bank accounts and do not have credit or overdraft facility, since it is beyond our mandate. We have to work on these areas.".............
India Needs Its Banks to Clean Up Their Act
...............The Nayak report called for the government to reduce its stakes below 50 percent, giving private investors a majority stake. But for populists who believe the banking sector should help promote public interest, the proposal, which would amount to de facto privatization, bordered on sacrilege. India’s central bank chief, the well-regarded Raghuram Rajan, has suggested a middle ground. Already, Rajan and his Reserve Bank have taken smaller steps, such as tightening rules for restructuring bad loans and threatening penalties if banks don’t sell off those loans to force them to come clean about their bad assets and gradually get them off their books...........
'Minimum government, maximum governance' in public sector banks
........In effect, PSBs are subject to dual regulation by the finance ministry and RBI. All PSB board directors are appointed by the government based on criteria that are often not clear. Handicapped by the lack of specialist skills, the quality of PSB board deliberations tends to be poor and focussed more on tactical issues than on providing strategic direction3. The average tenures of PSB chairmen and executive directors are very short, and the process of promoting talent to senior positions has become bureaucratised. Compensation structures have also grown distorted such that ..........
Banks Need a Cultural Revolution Under Modi
........It is easy to blame the malaise on wicked politicians, industrialists who have a stake in such appointments and pliant officials. The Nayak committee, which reviewed governance of bank boards earlier this year, said the boards are disempowered and the selection process for directors is being compromised.That means weak board governance. The committee reckons only radical reforms will work. Its blue print envisages bank boards being chosen by a Bank Boards Bureau comprising former bankers and then the bank boards themselves approving the selection process for CEOs. It also suggest a longer tenure for the CEO -which the finance ministry is also talking of now. On paper, it would be difficult to find fault with the selection process given that those who are part of it, including the secretary in charge of financial services and management professors from elite institutions, are not those who will just play ball.In almost all cases, vigilance approval also comes through. The question then is whether political pressure comes after that or before the final hurdle, forcing the leadership to settle for sub-optimal choices............
Jan Dhan: Banks target 1 cr accounts in two days
There is unusual level of activity at most public sector banks with the finance ministry setting an ambitious target of opening one crore bank accounts over two days — Thursday and Friday — which is nearly a third of the accounts in Delhi and a tenth the number in Maharashtra. This translates into each public sector bank branch opening close to 125 accounts each over the next two days, along with issuing Aadhaar numbers on the spot and authenticating the new address wherever the beneficiary of the no-frills account certifies a change in address......
Read - TOI
Read - TOI
Experts put their heads together on new avatar of plan panel
................“This is a work in progress, it’s not important to discuss upon the deliberations of today’s meeting, the outcome is important. And that decision will be taken by the Prime Minister. We also discussed upon how should the plan be allocated to states as well as upon the autonomy status to be granted to the new body,” Mr. Sinha said. He said it was a long standing need to reinvent the Planning Commission and the Prime Minister has taken a bold step. Replying to a question on how the plan allocation to the states will be given, he said it may be done through the Finance Commission. The meeting took place in two different groups simultaneously, one headed by Mr. Sinha had previous members of the Planning Commission, while the second group consisted of economists including Rajiv Kumar and Pronab Sen.....
Planning Commission replacement shouldn't allocate funds, say experts
............."The experts felt the appraisal function of schemes and programmes, which the Planning Commissions used to perform, should be handed over to the finance ministry," an official said. There was also a view that the new body could carry out long-term planning (with a 10-30-year horizon), the entire funding for which should be decided beforehand, without pre-empting contributions by state governments. Officials said the matter would now be decided by the prime minister.........
Read | Business Standard
Read | Business Standard
FinMin orders forensic audit of UCO Bank
........."We have ordered a limited forensic audit after complaints were filed with regards to some accounts. Those accounts have turned non-performing," official sources said. This is the fourth public sector bank (PSB) where forensic audit is being conducted after alleged cash-for-loan scam came to light with the arrest of Syndicate Bank Chairman and Managing Director S K Jain earlier this month.................
SC decision to ultimately benefit economy: Environment Minister IBA chief says banks may be hit by coal block order
.........."Banking sector pe impact ka jahaan tak savaal hai, jitni koyle ki khadaanein agar productive hai, agar us me se koyla nikal raha hai, aur who koyla agar production purpose ke liye ja raha hai, woh agar ruk jayega, toh swabhavik hai ki woh power production ko impact karega. Aur agar hamara paisa us power unit me laga hai, toh us account ke NPA hone ke chances badh jayenge (if the supply of coal from productive coal mines is restricted to power units then its natural that power generation will be affected. And if banks' money is in those power units, then the chances of that particular account becoming a nonperforming asset increase)," said Tanksale............
Aon Hewitt to design Bandhan pay packet
.........Aon Hewitt’s mandate includes designing a job grading structure along with a comprehensive and market benchmarked compensation and performance management programme for the proposed Bandhan Bank. “We aim to develop a unique banking organisation and want to ensure that the transformation of the organisation from being a microfinance company to a bank is rooted deeply in its philosophy and way of working..........
EPFO can invest 100% in govt bonds, PF rate at 8.75% for FY15
In a major policy shift to ensure security after workers’ retirement, the central board of trustees (CBT) of Employees Provident Fund Organisation (EPFO) on Tuesday raised the upper limit for investment in government bonds to 100% from the present 55% and rejected a proposal to allow putting employees' money into relatively risky equities or exchange traded funds. The CBT also approved the interest rate on PF for 20014-15 at last year's level of 8.75% as against the proposal of cutting it to 8.7%...........
Tuesday, August 26, 2014
Ambit Capital says RBI governor Raghuram Rajan 'above average but could have been better'
...................Rajan also focused "firmly" on inflation, though it still has not been enough to change inflation expectations. But adds supervision of the financial system "continues to be sub-par". Says Rajan needs to do more to spur banks to deal with their asset quality.......
Revised liquidity framework to create predictability: RBI Deputy Governor H R Khan
........."It should have a positive impact in terms of predictability and timing," Khan said on the sidelines of a meeting with state finance secretaries.
RBI to redefine deposits as ponzi scams mount
........“We are discussing it with states and the Centre. We need to define in such a way that who will be the regulator for different types of collection of money. Today, certain things are clear, certain things are unclear. So in the unclear area we are trying to bring more clarity,”
Tough Times Ahead for Bankers : Need for SS Mundra To Rise To Occasion To Play The Role of Bridge Between Bankers and GoI / RBI
.......... It is regrettable that Mr K C Chakrabarty (who too was from banking fraternity), Ex-Deputy Governor, who was better equipped to handle this issue and was in better times, miserably failed to protect the interests of the bankers. Rather he was instrumental in bashing the bankers by issuing controversial statements like PS bankers salaries being more than private sector banks etc. He preferred to take confrontation with the then Governor of RBI to satisfy his ego of supremacy and never supported Aam banker. I hope Mr SS Mundra will not let down the bankers and play a positive role. If he fails to rise to the occasion, bankers will face tough times ahead and Indian banking is likely to suffer irreparable damage in next two years or so. I am of the firm that one post of Deputy Governor has been kept reserved for a banker only such eventualities where the interests of the bankers may be ignored due to lack of knowledge about the problems being faced by bankers. ..........
RBI officers, staff threaten strike over lateral recruitments
THIRUVANANTHAPURAM, AUG 25:
Officers and employees of the Reserve Bank may go on strike if the Governor takes a rigid position on the issue of lateral recruitments into the apex bank. The United Forum of Reserve Bank Officers and Employees is sharply opposed to internal restructuring being attempted "without proper consultations". The United Forum is an umbrella front representing officers and employee unions of the Bank. It has conveyed to the Governor that direct recruitments into the higher cadre should be limited to experts with adequate experience and domain knowledge and strictly on contractual basis, says Samir Ghosh, Convenor............
Kolkata students shine at RBI quiz
.............With RBI as the organizer, it was expected that many questions will touch upon banking and finance. But some questions were tough for even Regional Director Rudra Narayan Kar. "Yes, some questions did leave me stumped. And I'm amazed at the level of awareness among today's children," he told TOI. If the teams couldn't get one right, multiple hands from the audience shot up to answer. However, some rounds did see some interesting responses — for example,..............
Mor(e) Inside Outside
My View on "Raghuram Rajan, Nachiket Mor deserve better - LATH...":
One wishes, things were as simple as this. But they are not. When media discusses an issue, participants in the debate get freedom to choose the layers they want to analyse. They can even decide the timing. This much is obvious. Back in 1960’s when I was in RBI as a trainee, the class-room joke was, in RBI a 10 paise coin will look down upon 5 paise and dictate terms. At that time the reference was to the Clerk Grade I (who got an additional allowance) bossing over Clerk Grade II. Perhaps, much has not changed inside RBI even at the highest level even today. Though the practice of having majority of the top 5 positions filled from outside has been working well, of late, their dependence on their employer for survival and on the ‘experts’ inside for getting things done make their life tough. Added to this are HR-related issues. The excellent leadership provided by Dr Rajan has not gone down well with those who were under the impression that ‘they’ were running the show. It is easy to divert from real issues by raising personal issues. Mor and lateral induction are being used to discredit Dr Rajan in this context.
- M G Warrier
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