........... “Do you own a credit card?”. If the customer says yes, hoping to shake them off, they will then hard-sell their card, suggesting you use it because it has more benefits. The real benefit is for the company: Gaining a customer who already owns a card makes it easier for the company to secure the details required for fulfiling know-your-customer norms as mandated by the banking regulator.
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, January 8, 2013
Waiting for the RBI?
.........But there could be another factor at work here: expectations that banks may soon lower interest rates. Finance Minister P Chidambaram has made innumerable statements that the government has done its bit to rein in its fiscal deficit andcurb inflation, and therefore it’s time for the Reserve Bank of India to cut interest rates. All of this has strengthened the expectations of an interest rate cut when the next review of monetary policy takes place later this month......
SBI favours 2 % interest on current a/ c deposits
....." Reserve Bank should allow some interest... something like two per cent to be paid on current accounts... that will encourage more people to put ( money in banks) instead of keeping the money in cash.............
Cut lock-in period for tax saving deposits to 3yrs: Bankers
Bankers demanded that lock-in period for tax saving deposits be brought down to three years from five years to channelise more funds into the banking sector. In a pre-budget consultation with Finance Minister P Chidambaram, bankers also sought permission to issue tax-free bonds like other financial institutions for raising funds and augmenting business.........
'RBI to look at macro situation before deciding on rate cut'
Weeks ahead of its third quarter review of monetary policy, RBI today said it will look at current macroeconomic situation besides inflation before taking a call on reducing interest rates. "Definitely today the policy rate is 8 per cent. Inflation should come not come down to 3 per cent to review the rate but that is depending on the macro economic situation," RBI Deputy Governor K C Chakrabarty said..........
Basel-III: RBI mulls liquidity buffer from SLR portfolio
“We already have quite a bit of liquidity ratio requirement (banks in India)... The basic requirement of basic liquidity that has come is that it should be usable under stress. If we look at our SLR, it’s supposed to be maintained continuously,"..............
Final norms on new bank licences soon, says RBI
......Sinha said the central bank would look into the concerns raised by NBFCs. He, however, added nothing could be assured and advised NBFCs “to live with it”. He said there was no question of treating NBFCs on a par with banks, as banks had more stringent regulatory norms...............
Far reaching changes in powers of the banking regulator
........ The increase in number of banks would lead to more competition and better pricing for the retail customer both for deposit as well as credit products as the newer banks innovate to garner market share. Overall the Bill provides an enabling environment for the regulator and the development and growth of the banking sector.
Hike minimum investment limit for bank licence to Rs 1,000 crore: Assocham
............."Considering the heavy investment needed for technology up gradation for the future purposes, there can be a stipulation suggesting that minimum capital requirement shall be hiked to Rs 1,000 crore from Rs 500 crore within five years of starting the bank. This can help to ensure only serious and resourceful entities are eligible to apply," it said in a statement. ....................
RBI may allow partial SLR conversion to meet Basel-III
T
he Reserve Bank today hinted at allowing part of the statutory liquidity ratio (SLR) holdings of banks to be treated as liquid assets under the Basel-III guidelines, which will come into effect next fiscal. "We already have quite a bit of liquidity ratio requirement.... If you look at our SLR, it is supposed to be maintained continuously. "Therefore, question arises whether we add some more liquidity on top of SLR, which will be definitely not good for our banks. So, we are looking at carving out SLR so that a part of it can become usable," RBI Deputy Governor Anand Sinha told reporters on the sidelines of an event.........
RBI proposal may boost gold loan companies' growth: ICRA
The proposal by the Reserve Bank to increase the loan to value (LTV) ratio to 75 per cent from the present 60 per cent is likely to help gold loan companies increase their business volume at a reasonable rate, says a report by rating agency ICRA.............
Read.........
Read.........
NBFC body asks RBI for same benefits as banks
Non-banking finance companies (NBFCs), in a discussion with Anand Sinha, Deputy Governor of Reserve Bank of India (RBI) on Monday, have asked the RBI to put them on par with banks on areas such as risk weights as per the asset class, tax relief on provisions made for NPAs and permission to raise ECBs..............
Banking Ombudsman Report of 2011-12 shows customers getting the short shrift
...... since banking ombudsman is authorized to cover only specific areas of customer complaint, it will be in the interest of the customer to check whether thecomplaint to be raised by him falls under banking ombudsman’s jurisdiction. What is heartening to note is that The Reserve Bank of India (RBI) has decided to set up a working group to review the banking ombudsman scheme.
Will Cheque-bounce Law Lose its Sting?
..........Thanks to a law that was born a decade after Dickens died and then amended a century later, Indian banks slap a curt notice, threatening criminal proceedings, to force a borrower to pay up once a 'post-dated cheque' - a product of the retail loan boom - bounces. The law makes no difference between crafty borrowers trying to dupe banks and those who have missed their loan EMIs for having lost jobs. But with lakhs of cheque-bouncing cases clogging the courts, the law ministry is trying to figure out whether it makes sense to tweak the law and refer these default disputes for arbitration. It's an idea that has rattled banks............
RBI asked to give all details about NBFCs operating in Karnataka
Bangalore: The Karnataka High Court Monday directed the RBI to furnish within six weeks all details of Non Banking Finance Companies operating in the state and the names and number of private finance companies offering secured and unsecured loans............
RBI dispels NBFCs’ fears of closure
The Reserve Bank of India (RBI) on Monday dispelled fears of the non-banking financial companies (NBFCs) sector that the proposed recommendations of the Usha Thorat committee to maintain an asset size of Rs.25 crore will lead to the closure of small and mid size NBFCs in the country........
Read - Hindustan Times
RBI cancels registration of two NBFCs
Mumbai: The Reserve Bank Monday said it has cancelled registration of two non-banking financial companies -- Emcorp Finance Ltd and Care Credit and Investments Company Pvt Ltd. "Following cancellation of the registration certificate the companies cannot transact the business of a non-banking financial institution," the RBI said...........
Monday, January 7, 2013
Once a 'green horn', D Subbarao aims to demystify RBI in 2013
Calling himself a "green horn" at the time of joining Reserve Bank as its Governor over four years ago, Duvvuri Subbarao has now set a goal to demystify the 'black box' image of RBI and make it a role model for central banks globally. "For an outsider looking in, the RBI is like a black box. Everyone knows people in there do important things, but cannot figure out the connection between that and their lives". "It is important that we demystify the RBI so that people know enough to demand accountability from us,"..........
Punishing the central bank
.........If even after this weakening of the central bank’s monetary stance, the government is bent on making it reduce the policy rates, the conclusion can only be that it wants to whittle down RBI’s independence. Gokarn’s “ouster” must be seen in this light. As the deputy governor for monetary policy, he was the keystone in formulating RBI’s monetary policy stance. In this, he acted in tandem with Subbarao. By ensuring his exit, the government has sent a clear signal that it will not tolerate a central bank that is independent beyond notional terms.
Jodi ka mamla................ KBC via RBSC
If
you have seen yesterday's (4th January) episode of KBC you might have
noticed that a young couple from RBI had appeared - Mrs. Nidhi Chaudhry
and Mr. Dev Raj. They met at RBSC Chennai during training. As you all
know that our Training college at Chennai is also known as
Marriage Bureau for DRs and in each batch a few marriages always takes
place. Promotees don't have that chance because by the time their number
comes for training at Chennai College they are already
married and settled in life. She
made it to the hot seat but unluckily could not win any amount. and
had to leave empty handed. She had selected a "Padav" at 6th question of
Rs.1,60,000/-. She made it to Rs. 80,000/- but was in too much hurry to
answer the last question despite having three lifelines. Anyway our
sympathy goes to her and we wish her a better luck next time. If you are
interested the question was at which degree temperature in both
Centigrade and Fahrenheit is same. The correct answer was - 40 degree
and she replied 40 degree. It
could not be made out from which office of RBI they had come. Anyway
she has already
left RBI as she is selected for I A S and is presently doing
training at Mussorie. However her husband is still working in RBI. If
any of our member has seen the programme, he/she may like to add more
information. And if you happen to know them please convey
our congratulations to them for making it to KBC. You are also free to
add your own experiences at RBSC Chennai.
Madan Gauria, Ex-AGM (Moderator - EXRBITES Group)
| Instantly comes to mind the persons to whom RBSC made life partners: YSP and Usha Thorat; Nalini and B. Mukherjee and Jerome D'Souza and Gokhale Madam......... - Surendra Khot, Ex-GM |
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