.....Tamal Bandyopadhyay, who has emerged as an acute observer of the Indian banking scene, has managed to dispel both these reservations in this unfussy book. He has converted journalistic weakness into strength and told the story of the HDFC bank in a manner that only a truly accomplished reporter can — in fascinating, rather than mindless, detail.........
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Monday, November 26, 2012
Banking on short takes
.....Tamal Bandyopadhyay, who has emerged as an acute observer of the Indian banking scene, has managed to dispel both these reservations in this unfussy book. He has converted journalistic weakness into strength and told the story of the HDFC bank in a manner that only a truly accomplished reporter can — in fascinating, rather than mindless, detail.........
BANCON 2012: FM nudges RBI on banking licences again
........."Let me emphasise that the three powers that RBI wants are already there with the RBI. It is already there in the regulation, it is there in the powers to grant the banking licences," he said. "I am sure the RBI acknowledges and appreciates the well-considered position of the Government and will take the process forward," he told reporters after inaugurating the two -day annual national banking summit (Bancon 2012) ......
RBI must allow new banks, says FM
In a stern message to the Reserve Bank of India ( RBI) on the contentious topic of issuing new bank licences, Finance Minister P Chidambaram made it clear that RBI has the powers to issue new licences and expressed the hope it will take the process forward " appreciating" government's position. " Whatever powers, whatever authority there was in 1993, remains on the law books today. In fact there are more power and authority now in place." He was speaking at the launch of a book ' A Bank for the Buck' on the history of HDFC Bank by financial journalist Tamal Bandyopadhyay in Mumbai on Saturday. " I am keen that there should be more banks. That is the policy of this government. The policy was announced by my predecessor in his budget speech in a year and half ago. This government's intention is to urge the RBI to quickly finalise the guidelines." His remarks assume significance in view of the reluctance of RBI to move ahead with the policy of granting new bank licences in the absence of changes in the Banking Regulation Act, which is awaiting approval of the Parliament.........
'India must have world size banks'
...."We must create at least 2 or 3 world size banks. China has done it. And if India wants to be and as it will be the third largest economy in the world...we must also have one or two world size banks and some consolidation is inevitable," .........
Read - FE
India's banking sector has changed a lot, set to change further: KPMG
.....With increasing volume and complexity of the banking business, it will be imperative for the regulator to move gradually towards more offsite monitoring than onsite. Technology will play a much larger role in the overall supervision of the banking system. There are likely to be transformational changes in the entire regulatory system for financial services.........
Nagpur Municipal Corporation general body to end RBI sq naming row
NAGPUR: The Nagpur Municipal Corporation (NMC) general body is likely to put an end to the ongoing controversy over RBI square's name. The naming committee headed by deputy mayor Sandip Jadhav has agreed to name RBI square as Samvidhan square and the stretch of road from Akashwani square to Ladies Club after former chief minister Vilasrao Deshmukh. The general body will take a final decision on the committee's resolution..........
10- rupee note to be collector’s item, so preserve it!
Stock up the 10- rupee currency notes as they are to become a collector’s item, though only in the distant future as the Reserve Bank of India ( RBI) has decided to gradually replace them with coins that last much longer than the paper currency and hence cost- effective. Minister of State for Finance Namo Narain Meena disclosed this in the Lok Sabha on Friday, saying the currency notes have a life span of “ just eight to nine months” and hence RBI plans to gradually replace them with coins. He, however, declined to set a deadline for the end of the 10- rupee notes era, pointing out that speed of the replacement depends on the capacity of the mints to supply the coins..........
Co-opting the consumer with positive banking
.....Most bankers’ lives are monotonous and they have stopped thinking and learning. They get up early, travel to work in the morning, go home tired and return to the same routine the next day. Bankers should start their day with a positive attitude saying “How can I be a better banker”. This will change the dull faces of boring bankers and they will start trying to do their jobs better........
Better days ahead
.....“The new banks will be at a disadvantage to existing banks due to absence of an existing client base and the requirement for new banks to ensure 25 per cent of branches in unbanked areas from the outset. For existing banks, the requirement is for only new branch additions. Therefore, they continue to have a large proportion of branches in high business opportunity areas. Also, creating a strong CASA franchise is far from easy, as Yes Bank can testify after struggling to create a meaningful CASA franchise over eight years. This is not to deny that a banking licence would be a positive, but merely stressing that they come with complications. So valuations can’t go out of the window on such expectations,” ..........
No RBI role, Rupee to recoup on its own
......Mayaram hoped the currency will appreciate once the economy is back on an upward curve without any effective intervention by the RBI. "I don't think RBI would have to effectively intervene for strengthening the rupee. We believe, once the slowdown bottoms out, the rupee will strengthen"......
Read - Express India
Two-thirds of bank deposits have no insurance cover
.....The falling insurance cover is due to the rising proportion of high-value deposits. Bank depositors enjoy insurance cover on deposits up to Rs 1 lakh. This means that if a bank goes belly up, each account will still recover up to Rs 1 lakh from the Corporation.Some experts feel that the situation calls for a revision in the insurance cover offered. The insurance limit of Rs 1 lakh per account was set way back in 1993. With inflation averaging 6.5 per cent in the last two decades, a Rs 1 lakh deposit then would equal Rs 3.3 lakh at today’s prices. Bankers, however, counter that this may not pose much of a risk to small investors, as most are likely to have deposits of less than Rs 1 lakh. In fact, banks have deposit accounts (savings and time deposits) numbering 107 crore. Of these, 99.6 crore deposit accounts, or 93 per cent, have less than Rs 1 lakh as balance.........
Govt panel suggests consumer campaign against ponzi schemes
A government panel has suggested running a public campaign under the
flagship consumer awareness programme 'Jago Grahak Jago' to guard the
gullible investors against multi-level marketing (MLM) and pyramid
structure companies collecting money through ponzi schemes. The
recommendation has been made by the inter-ministerial committee, headed
by Consumer Affairs Secretary and comprising of members from Reserve
Bank of India, Finance Ministry, Corporate Affairs Ministry and Law
Ministry among others,.......
Centre open to Islamic banking, says Rahman
......Sources said that by asking for amendments, the RBI wants to put the ball in the government's court on the issue. The government and the RBI do not appear to be on the same page on the matter. Asked if the RBI was not cooperating with the government, Khan said, "I have not dealt with them so far. I will talk to them on the issue." The government, on its part, has been pushing for the introduction of Islamic banking for quite some time. The then Union Law Minister Salman Khurshid had written to the Planning Commission and the RBI to look into the issue. The National Commission for Minorities had a meeting in May this year to discuss the issue, which was attended by finance ministry officials.......
Gold-backed instruments can bring down gold imports: Gokarn
....“Essentially role of innovation is not denying people to invest in gold, but find ways to give them gold like qualities (through new instruments). That might give some solution to the larger scale (gold) imports” Gokarn said while speaking at Bancon conference in Pune..........
RBI considering four alternatives to gold
......Given Indians’ yen for gold and the pressure on the current account due to its import, the Reserve Bank of India is considering introducing four gold-related instruments to ease the physical demand for the yellow metal. The instruments are modified gold-deposit scheme (GDS), gold-linked account, gold-accumulation plan, and gold-pension plan, said RBI Deputy Governor Subir Gokarn at the Bankers Conference in Pune.......
Steps to discourage gold imports on cards
Concerned with the drastic depreciation in the Indian rupee against the greenback raising alarm bell for decision makers, the Standing Committee of the Reserve Bank of India (RBI) on gold is meeting on Monday to take immediate measures to discourage import of yellow metal. Gold is seen as unproductive asset causing monitory management issues.........
Banks want RBI to allow gold buyback
Banks have asked the Reserve Bank of India to allow them to buyback gold which is not allowed at present, though banks are allowed to sell gold coins. In an interaction with Subir Gokarn deputy governor, RBI, at the annual banking conclave BANCON, State Bank of India’s chairman Pratip Chaudhuri suggested such a move which will in turn will improve market liquidity. “Today all the banks are selling gold but RBI does not allow to buyback their own gold. Suppose somebody has taken gold from my bank and the same gold, without opening the seal, comes back, banks are not allowed to buyback. What would be the underlying thoughts as it is impeding the liquidity of gold holdings,” Chaudhuri asked the regulator in an interaction which followed by a speech by Gokarn on the country’s gold import problem...........
Bank told to pay 42 thousand to man whose account was hacked
......The commission took into consideration the RBI guidelines which state that it is the bank's liability to the customers on account of unauthorized transfer through hacking, denial of service on account of technological failure, etc needs to be assessed and banks providing internet banking should insure themselves against such risk. "The appellant (bank) has not explained whether they have acted in accordance with these guidelines. The deficiency in service on the part of the appellant is proved beyond doubts," the commission said. .....
Vijayalakshmi Iyer takes charge of Bank of India
The government has on Monday appointed Vijayalakshmi Iyer as the chairperson and managing director of Mumbai-based Bank of India. Iyer — who was an Executive Director of Central Bank of India prior to this appointment — will serve Bank of India till May 31, 2015........
Piercing the veil on foreign offices
....While, it may seem strange at first glance that the RBI is looking into matters related to immigration compliance, the reason for it seems to be national security. This is in line with the recent trend of Government authorities cross-verifying whether foreign nationals are complying with regulations in the jurisdiction of other agencies.......
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