As many as eighteen executive directors of various public sector banks are in the fray for the post of Chairman and Managing Director (CMD) in about nine banks.........
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, February 11, 2013
Non-performing assets in Indian banks
...........The change in the policy of choosing auditors by public sector banks from the empanelled list of audit firms, deviating from the erstwhile practice of appointing bank auditors by a committee consisting of members of the banking division of the Ministry of Finance, RBI and CAG is intended for ensuring level playing field among all Indian banks in respect of appointment of the auditors. In the present scenario, it has become all the more important for RBI’s mandatory inspection to act as an effective deterrent for banks not to resort to non-adherence to applicable prudential norms and less provisioning for NPAs.
Development in the future tense
...................The attitude of the Reserve Bank of India (RBI) and of the corporate world is as though Assam never existed all these years and is some kind of a contemporary discovery. On a recent visit to Assam, RBI Governor D. Subba Rao spoke of the need to raise credit to micro, small and medium enterprises (MSME) and agricultural sectors and for the “deepening” of financial inclusion in Assam. It passes our understanding why this awareness has come about only now after all these years. Likewise, the RBI seems to have discovered only now that the credit–deposit ratio is very low in Assam at around 47 per cent, way below the national average of around 77 per cent. All these years banks have consistently hinted at poor recovery rates in Assam compared to some of the more advanced States of India in order to rationalize this discrimination. Instead of waking up to this gross discrimination only now, the RBI and other banks operating in Assam would have done much better by realizing that this was a problem of money management rather than anything else more serious. .................................
A study on Cooperative Banks in India with special reference to Lending Practices
...............At present there are several cooperative banks which are performing multipurpose functions of financial, administrative, supervisory and development in nature of expansion and development of cooperative credit system. In brief, the cooperative banks have to act as a friend, philosopher and guide to entire cooperative structure. The study is based on some successful co-op banks in Delhi (India). The study of the bank‟s performance along with the lending practices provided to the customers is herewith undertaken.................
Participatory-banking for equality before law in India
The secular system adopted by the Reserve Bank of India (RBI) for banking and financial services in India is conflicting with the fundamental right to freedom of religion. RBI being a secular institution may not adopt any religious model of banking, but it is equally important that RBI should not make any law conflicting with any religion including Islam. So far the Government of India (GoI) and RBI have been reluctant to allow financial inclusion of Indian Muslims by resolving this specific conflict of secular banking system with Islamic laws.........
There is a Need to Revise Definition of NPA - Some Practical Suggestions
Banks are passing through a difficult phase. Year 2012 has been a tough year and 2013 will also be tougher. The major problem being faced by almost all banks, specially the PS Banks is the problem relating to NPA. Most of the banks have huge hidden NPAs. Therefore, there is a need for re-look at the present definition of NPAs.......
Read..........
Read..........
Finance Ministry in talks with RBI for allowing PSUs to issue rupee bonds
The finance ministry is holding discussions with Reserve Bank of India on a potential sovereign bond issue, in a major review of its policy on direct overseas borrowing. The ministry is also simultaneously examining the possibility of state-owned entities, which have the backing of the sovereign, raising funds through rupee-denominated debt overseas,............
INDIA-OECD-WORLD BANK REGIONAL CONFERENCE ON FINANCIAL EDUCATION
Sunday, 3 March 2013
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19.30 – 22.00
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Pre-event dinner hosted by Dr. K.C.
Chakrabarty, Deputy Governor, RBI
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DAY 1 – Monday, 4 March
2013
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8.30 – 8.50
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Registration
of Participants
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8.50 – 9.00
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Welcome Address by Dr. K.C. Chakrabarty, Deputy Governor,
RBI
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9.00 – 9.10
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Opening Remarks by Ambassador Richard Boucher, OECD Deputy
Secretary-General
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9.10 – 9.20
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Opening Remarks by World Bank
representative
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9.20 – 9.40
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Keynote Address by Dr. D. Subbarao, Governor, Reserve Bank
of India
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9.40 – 9.45
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Vote of Thanks by Mr. G. Gopalakrishna, Executive
Director, Reserve Bank of India
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Read.................
Investment savings limit needs to be increased
The wishlist for the personal tax sector, which applies to individual taxpayers, includes increased savings limit for investments up to Rs 3 lakh, separate deduction for education expenses and revival of standard deduction...................
On reducing the old glitter
......Strangely, the report does not refer to an overvalued rupee making imports cheaper. It is worth recalling that at the height of the foreign exchange crisis in 1991, Manmohan Singh liberalised imports, cut import duties and devalued the rupee to launch the reforms process. The present thinking in RBI seems to run counter to that strategy, preferring a strong rupee, higher duties and import restrictions.
Debit cards set to cross 50 crore by 2015
.....However, this does not mean that Indians have yet decided to embrace cashless transactions in a big way, the study added. “The debit cards are largely being used for cash withdrawals and not much at the merchandise stores. The point of sales usage was limited to just about Rs 6909 crore monthly sales in December by the debit card-holders,”...............
Multiplicity of frauds keeps banks jittery
.......Most frauds in the Indian banking system occur at the channel partner's end. While banks have to strictly comply with several regulations, there is no mandated regulatory environment for merchants and retail stores where the card is swiped. Their systems are often hacked to steal customer details. Consumers are also ignorant. All these are adding fuel to fire,”.............
Cards and Frauds
There
has been a spate of credit card frauds all over the world. Cards are
being used in four continents while the holder is blissfully sleeping in
another time zone. Why does this happen? Because no one follows
instructions. Have you ever seen the salesperson at the desk compare
signatures? In any case, it is difficult since the space given for your
signature is so small that even a bad forgery can get by. The only
solution is to make photo cards mandatory. And the photograph must be at
least one-fourth the size of the card to give a proper perspective and
opportunity to compare it with the person presenting the card. If even
after this there are frauds where the holder is not even present in that
town, the merchant and the company shall be liable, not the holder.
- T R RAMASWAMI, (ET)
- T R RAMASWAMI, (ET)
Confronting cyberthieves
The refusal of the Maharashtra State Banking Ombudsman to intervene in a case of net banking fraud that left a customer poorer by nearly ten lakh rupees is bound to add to the anxiety of consumers who are afraid of falling victim to cybercrime. Much as plastic money and online commerce are convenient, they bring with them the baggage of security concerns. The banking and payment card industries, and enforcement agencies must respond to such incidents with alacrity..........
Have you been duped online?
.........Recently, the Reserve Bank of India (RBI) suggested banks disincentivise usage of cheques. RBI suggested measures such as setting limits, levying charges on issue of cheque books to account holders or levying charges on cheque usage, both by the issuer and beneficiary. However, given that frauds still happen, is this shift feasible or even desirable? More importantly, what are the precautions that customers and banks should take to ensure security?.............
RBI may tighten credit card norms
The Reserve Bank of India (RBI) is likely to come out with new norms to ensure card safety. Bankers say that this is likely after a meeting RBI had with banks on Friday to discuss recent frauds in electronic
payments. Bankers told RBI that two forensic investigators have been
appointed to identify the source of fraud. The investigation is being
done by banks that install card acceptance machines in merchant
establishments.............
Damodaran panel likely to submit report soon on business climate
The Damodaran panel,
comprising government officials and corporate honchos, looking into
ways to improve the country's overall business climate is likely to
finalise its report soon.............
Exercise caution before you sign up for a bank locker
.......banks don’t have uniform norms for allotment. On paper or on their Web sites, many banks state that the criterion for allotment of lockers is that you should be a savings/current account holder of that bank. In addition, Reserve Bank of India’s ‘Master Circular on Customer Service’ (available on the RBI Web site) allows banks to obtain a fixed deposit which would cover three years’ rent and charges for breaking open in case of an eventuality. But in reality, you may not get a locker even if you fulfil both requirements..........
Saturday, February 9, 2013
Inflation still high, says RBI Governor
.....Acknowledging the role of UCO Bank that has adopted Jalanga village under financial inclusion programme, Subbarao said, “After my first outreach programme here (in December 2009), UCO Bank has opened a branch which is catering to the banking needs of the entire population of Geltua gram panchayat. I’m informed that 84 SHGs have been formed at this gram panchayat. While UCO Bank’s Jalanga branch has tried all out to provide loans to the people, some are yet to avail credit." Earlier, Subbarao inaugurated the maiden ATM of UCO Bank here and also held an interactive session with a few SHGs (self-help groups). V Ramchandra Rao, Regional Director-RBI (Bhubaneswar) said, “UCO Bank opened a branch at Jalanga on January 6, 2010. The branch has extended advances of Rs 2.5 crore to 567 people. Total deposits of the bank have touched Rs 4.61 crore and 540 ATMs have been issued.”........
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