For a social cause

Cosmos Co-operative Bank is committed to extending financial assistance to women's self help groups to help them to become self-sustainable.", stated Krishnakumar Goyal, chairman-in-charge, Cosmos Bank, at women's gathering. Magsaysay Award winner Nilima Mishra visited the banks head office on and was felicitated by the bank on her achievement of Padmashree Award, also for her substantial contribution to women's empowerment through self help groups.

TOI 

Provident fund to earn 8.5% interest in FY'13

Provident fund deposits are set to earn 8.5 per cent interest in 2012-13, slightly higher than the 8.25 per cent returns declared in the last fiscal. The decision was taken at the meeting of the Employees' Provident Fund Organisation's (EPFO) Central Board of Trustees (CBT) on Monday........

Read - IE

RBI, CA institute likely to discuss IFRS roadmap today

.....For banks, the CA institute had left it to their regulator, RBI, to decide on a suitable IFRS roadmap. There are indications that the Tuesday meeting will revolve around crucial issues such as accounting standards on financial instruments. The meeting could also discuss other important issues such as audit of banks, it is learnt. RBI Deputy Governor Anand Sinha will chair the meeting.......

Read - HBL

Tax saving deposits must be made more attractive, say banks

.....If the ministry agrees to the banks request then tax savings deposits will be at par with investments in equity linked savings scheme insofar as tenure of the investment goes. Further, banks also want the ministry to allow them to grant loans against the tax savings deposits........

Read - HBL

Rupee Bank is stable, claim employees

........While taking a dig at the RBI, it said the regulator should have considered the fate of lakhs of affected account-holders on humanitarian grounds before imposing the restrictions on Rupee Bank. According to the committee, Maharashtra Cooperative Bank Federation President and member of Task Force on Co-operative Urban Banks (TAFCUB) Vidyadhar Anaskar met the Rupee Bank Chairman on Sunday and stressed ways to ensure the RBI lifts the restrictions on the bank.............

Read - Sakal Times

RBI cracks down on Rupee Co-op Bank, depositors to feel the pain

The Reserve Bank of India (RBI) today directed ailing Pune-based Rupee Co-operative Bank not to allow depositors to withdraw more than Rs 1,000 from savings, current or any other deposit account. "According to the directions, depositors will be allowed to withdraw a sum not exceeding Rs 1,000 of the total balance held in every savings bank or current account or any other deposit account by whatever name called," RBI said in a statement............

Read - FE

Co-op chief orders report on Rupee Bank

....... "I have sought an inspection report of Rupee Bank. The report will have all the details of bank's financial situation, its deposits, debt, arrears and advances and performance of the bank in recovering loans. The RBI generally takes time to initiate action against any institution."......

Read - TOI

Two held in fraud case

........Earlier, another director of the company, Uttam Acharjee, was also apprehended by the CID in the same case. The group has allegedly duped hundreds of people across the state. However, another kingpin of the group, Chandan Das, is yet to be arrested. Assam Police, along with RBI, have recently accelerated investigation in all the cases registered under economic offences.

Read - TOI

RBI guidelines on inclusion fall short

..................The major concern is that the money should not go to the wrong people but to those who desperately need it. That is why it is felt that new private sector banks may not be the answer to the financial inclusion objective. Those who want to game the system have ways of doing it and are always one step ahead of the regulators. No amount of ring-fencing works.

Read - Deccan Chronicle

Cash Transfers: Merits and demerits

..........The RBI's definition of financial inclusion mandates a bank to offer at least four services: savings account with an overdraft facility, business loan, remittance facility and an insurance-cum-retirement benefit product. Today, for the purpose of cash transfers, banks are offering merely a bank account. Mostly, it's a no-frill account: this does not burden an account holder with a minimum-balance requirement, but also places restrictions like a monthly cap on number of withdrawals....................

Read - ET

Japan's 7-Eleven eyeing Indian white label ATM space

..........Japanese financial and retail chain 7-Eleven is considering entering into the white label automated teller machine (ATM) space in India, three people aware of the development said. Seven Bank, a Japanese banking unit of 7-Eleven, has an ATM business arm..........

Read | Business Standard

“Don’t privatise banks, insurance”

The UPA government should give up moves to privatise banking and insurance sectors, CPI (M) district secretary B. Narayana demanded on Sunday. Prime Minister Manmohan Singh gave directions to RBI permitting private investment and institutional finance in banks and insurance sectors, a day after the nation-wide general strike, he told a press conference here............

Read - The Hindu

Sena, MNS freeze PSU bank’s hiring

Mumbai: Under pressure from the Shiv Sena and the Maharashtra Navnirman Sena, the Central Bank of India (CBI) has decided not to interview candidates from outside Maharashtra for clerical posts. Several candidates from other states in the city for the interviews have been asked to wait till the bank gets directions from the Institute of Banking Personnel Selection (IBPS) on how to resolve the issue......

Read - TOI

RBI vs IRDA: Finmin to play peacemaker over broking licence for banks

............"The IRDA and the RBI can jointly come up with a framework where commissions are regulated and banks also share the responsibility of misselling," said a chief executive of a private sector insurance firm. Bankers, too, have apprehensions about lenders doubling up as brokers. "The concerns raised by RBI are valid. Brokers also need to take out a professional indemnity policy," said the executive director of a state-run bank.

Read - ET

Inside Man Vijayan’s the Right Fit for Irda

If authority over the industry, professionalism and a secretive nature are the hallmarks of a regulator, TS Vijayan is the perfect fit to head the insurance regulator. Vijayan, the 59-year-old life-time insurer, carries with him an enormous bank of knowledge of the industry, has earned the admiration for laying the foundation for the Life Insurance Corporation of India’s survival amid competition from nimbler rivals — and loads of animosity......... 

Read - ET

Don’t lower your guard

....The point is that no matter how stiff the entry barriers appear to be, it is impossible to weed out undesirable applicants. For all the precautions that are to be taken before awarding the licences — the RBI has proposed a scrutiny of short-listed applicants by outside experts — the subjective element cannot be eliminated altogether. At the present juncture, the scope for applicants to use political connections to influence the process is real. Curiously, in a departure from the earlier draft, the final guidelines do not prevent real estate companies and brokerages from applying. In all likelihood, some of those queuing up to open their own banks will indeed be from these speculative sectors. The wisdom of lowering one’s guard is not at all clear. It is not wise to ignore the numerous warnings on opening up the banking sector to conglomerates.......

Read - The Hindu

RBI honcho vows banking for all in remote village

The Executive Director (ED) of Reserve Bank of India (RBI) participated in a programme organised by the central bank in Saram Village of Gola block in Ramgarh District. The programme on financial inclusion was aimed at making the villagers aware of the various financial programmes run for their benefits by banks in the area. On the occasion Deepali Pant Joshi, ED, RBI said, “RBI will help in the expansion of banking services in rural areas and will also spread awareness about them.” It is expected that baking services could be provided in the villages having population of 2000................

Read - The Pioneer

Rs 500 denomination banknotes gain significance: RBI study

..........."Rs 500 denomination notes quickly emerged as the second most important denomination since 1998-99 and replaced Rs 100 denomination as the most important denomination in 2003-04. Its share in value among all denominations peaked at 47 per cent in 2010-11," ..........

Read - ET

Banks like ICICI, HDFC to give big hikes to ward off poachers, advent of new banks to perk up demand

MUMBAI: Middle and lower level management staff at lenders such as ICICI Bank, HDFC Bank, and IndusInd Bank are probably in for sweet pay increases this year as human resource managers strategise to ward off poaching by new banks............

Read - ET

Obituary

With profound grief I inform that Smt. Leela Joshi, wife of Shri R. M. Joshi, Ex-CGM, RBI and Ex-ED, SEBI  passed away on 23rd February 2013 at 11.25 PM after a brief ailment.  May her eternal soul rest in peace.

- K.S.Iyer, Ex-Manager, Mumbai