..............None of these companies is registered as chit funds with the Registrar of Companies (RoC) in Bengal, they added. The RoC registration is mandatory to start a company. At least three government regulators come into play when a company or institution tries to raise money from the public — the Reserve Bank of India (RBI), Securities and Exchange Board of India (Sebi) and the Insurance Regulatory and Development Authority (Irda)................
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.
Saturday, April 20, 2013
Soon, PIL in HC seeking ban on chit fund operators
.........The officials also referred to the Prize Chits and Money Circulation Schemes Act enacted by Parliament in 1978 that prohibits chit fund operations. "What happened to this law? What is RBI doing?'' the official questioned.
Nabard seeks standardisation in bank documents
......... "Raigad district central cooperative bank has introduced standardised forms for keeping records of loans, pending payments from farmers, loan sanctioned under various schemes, interest to be charged on it among others. Such standardisation will make documentation simpler as all branches of the banks in the state are being computerised and will be connected to the national financial switch, a requirement for direct cash transfer.".............
Interest subvention scheme expanded
......Some good news is likely to come the way of exporters on their cost of credit. A technical group, constituted by the Reserve Bank of India, is likely to take a call by this month-end on new measures for reducing the cost of export credit (in foreign currency), Sharma indicated. This group comprises senior officials from the Directorate General of Foreign Trade, Revenue Department and the RBI.............
PFRDA tightens investment norms for private pension fund managers
Tightening its norms for the private sector, in the National Pension System (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) has barred fresh investments in equity mutual funds and exchange-traded funds (ETFs) from the corpus. It has also asked these fund managers to restrict their single-industry exposure to 15 per cent of NPS investments under all schemes...........
Friday, April 19, 2013
This is no way to manage public debt - S.S.Tarapore
 |
| ................It would be hara kiri to hastily set up an independent PDMA, say, by an ordinance, without a significant and enduring reduction of the fiscal deficit. The PDMA should be set up only when the government is able to undertake its borrowing without statutory prescriptions, as there could be a constant blame-game between the RBI and the PDMA................. |
Read - HBL
'Banking connectivity surges with BC model'
A journey through the Golden Quadrilateral to India’s heart
When this couple decided to pack their bags and set off on a long road trip, friends and relatives alike tried to dissuade them from undertaking the arduous journey across the country. Today, Ajit Lakshmiratan, a retired Reserve Bank of India officer, and his wife, Ramola Lakshmiratan, are thrilled to have stuck to their instincts to go ahead with the journey — covering the Golden Quadrilateral............
Quantitative capital controls more effective in short term:RBI
........"Our experience has been that while quantity controls are more effective in the short-term, they can also be distorting, inefficient and inequitable,"............
Moody Institution
Subbarao has a point when he says IMF did a poor job of predicting the crisis or in offering solutions
.......The biggest blow to the IMF’s credibility, of course, came from its research head Olivier Blanchard releasing a detailed working paper in January saying the IMF had got the ‘fiscal multipliers’—the impact of reducing fiscal deficits on economic growth—horribly wrong. The research paper said the under-estimation during the early part of the European crisis may have been three times...........
RBI views forex market intervention as real danger
........According to Subbarao, the lower your reserves dip, the more vulnerable you become. “And the vulnerability can become quite serious if your reserves go below the level markets perceive as necessary to regain market access,” he said.........
RBI looking at banking regulations, not black money: Takru
.....We are not talking here about black money because neither the RBI nor the ministry is the competent authority perhaps to decide whether money is black or white. Money has no colour; as far as we are concerned, money is money. Now, what the Reserve Bank of India is looking at is the banking regulations and how the banks have behaved and how the individuals who are working in the banks have behaved when it comes to following processes..............
Cobrapost fallout: RBI extends investigation to 34 banks
.....“RBI has questioned how non-sales staffs, involved on operational matters like a person who is in the teller counter, can have a target. Lure of achieving target leads to not doing the basic duty,” said a senior banker. RBI is likely to issue norms banning sales incentives to operational staff of the banks. Similarly, target on selling gold coins by operational staff will also be abolished. However, violation of anti money-laundering norms has not been found. “Money laundering has a criminal connotation. It was not found in the initial investigation that bank employees are indulging in such activities,” said banking industry sources.......
RBI to come up with new model to curb tax evasion
The Reserve Bank Of India has decided to come up with a new model to curb tax evasion, post Cobrapost revelations, reports Siddharth Zarabi of CNBC-TV18 quoting sources. On Wednesday, reacting to RBI’s probe report on Cobrapost sting, banking secretary Rajiv Takru had noted that audit report pointed towards some severe Know Your Customer (KYC) violations and there were evidence to suggest that the banks were advising clients to evade taxes.................
RBI money-laundering probe shows cooperative banks as the key facilitator of shady deals
...........The reason cooperative banks have repeatedly been at the centre of scams is the shady system of dual regulation, under which both Registrar of Cooperative Societies (RoCS) and the RBI are supposed to be regulating them. RoCS officials say that the RBI does not look closely at these banks, while the RBI says it waits for government recommendations to act as the State's Cooperatives Department has its auditors on the boards of the banks. The primary reason for this poor scrutiny is that most cooperative banks are set up and controlled by powerful politicians................
Alert: Banks ask for resubmission of KYC documents
.......Here’s a sample of the email sent by a private sector bank:
This is with reference to the RBI Guidelines for Re-submission of KYC documents for your ABC Bank Account. We request you to kindly submit the following documents at your home branch or any of your nearby ABC branch..............
My View on "Who will step into Subba Rao's shoes?"
We are familiar with Raghuram Rajan, the chief economic advisor to Finance Minister P Chidambaram , his exposure to international economic problems, his academic credentials and track record which makes him eminently suitable to be GOV.What is the track record of Arvind Mayaram, Secretary, Department of Economic Affairs (DEA). All his life stayed in Rajasthan working in districts, administrative divisions etc.For a short tenure he came to MoF.How does he compare himself with GOVs of Central Banks of advanced countries.Put under the lens his expertise in Monetary Policy, Risk Management,Bank Supervisory expertise, role in implementing Basel Committee recommendations on the website and let the experts choose the next GOV. Why can't any RBI Dy GOV can become a GOV who has deep Central Banking expertise?Why only IAS types? What genetical complex RBI community is having?
- Sitendra Kumar
Recent developments which saw easing out of a Deputy Governor (Subir Gokarn) for no fault of his and compulsions to retain another Deputy Governor for another year calls for a review of the selection and placement procedure at that level. Perhaps the pool from which selection is made and the age profile (raising the upper age limit by 3 to 5 years from the present ‘normal’ at 62 years) need a review. In the circumstances, it would be most appropriate to extend the tenure of Governor Dr Subbarao who is to retire within months, initially by another year at this juncture. This would be a pragmatic political approach also, if one weighs the uncertainties in the horizon. Formulating and implementing succession plans for top government/public sector jobs with professionalism and efficiency in a graceful manner is imperative for allowing the institutions to function with reasonable functional autonomy within the legislative mandates.
- M.G.Warrier
Rajan will be good for the country, Mayaram for the government. In view of the general elections government would like to have someone at the helm of RBI who would play ball with it in vote bank politics. If it is Mayaram, expect a series of rate cuts and lower cash reserve ratios from September, irrespective of the economic situation. From the point of view of the RBI staff, Mayaram's appointment would ensure the continuation of two Deputy Governors' positions for them. If, however, Rajan becomes Governor one of the two DGs' posts will go to an IAS officer at the earliest opportunity. Since the middle of the 1980s the formula for the appointment of four Deputy Governors is: economist -1; commercial banker -1; IAS officer -1; and RBI promotee -1. When the Governor's post goes to an IAS officer, the quota for the service is released for being filled up by an RBI officer.
- A.Seshan
My View on "Govt banks may switch from gross salary to CTC for pay hike"
Like New Pension Scheme which has dismantled an existing social security system which was available to a small section of government and public sector employees without providing an acceptable transparent substitute, here again, it looks, GOI is planning to stealthily destabilise the wage structure in banking sector.
There is no denying that ‘Cost to Company’(CTC) is an aspect that should be transparently packaged in any wage policy. But asking one category of employers (public sector banks) with whom GOI has a master-servant relationship to come out with ‘views’ on the concept makes one suspect the motives.
Public sector, if backed with a level playing field as compared to the private sector, right from the Board Room to the junior-most functionary, will function much more efficiently than many of the private sector organisations in India, which, by and large, concentrate on the creamy layer of industrial and financial sector activities. Let us not forget that the civil services, executives and staff of public/private sector undertakings have to supplement the skills of the increasing number of political masters who were not as fortunate to get trained or groomed. The nation is immensely dependent on them for carrying out the development agenda on hand.
There is a governance and ethical issue hovering around the remuneration structure across government, public and private sectors and the unorganized sector in India. Time for a National Commission on Remuneration Practices has come. The Commission should go into the adequacy of wages, minimum and maximum remuneration across sectors, their relationship to lifestyle needs of employees and paying capacity of employers and the need to factor in social security needs like healthcare and old age needs in wages.
- M.G.Warrier
RBI wins above 40 yrs men’s team championship
JAMMU, Apr 18: : Reserve Bank of India wins men’s team championship of above 40 yrs beating Punjab 3-2 in the 20th J&K Bank National Veteran Table Tennis championship-2013 being played at Sher-E Kashmir Indoor Sports Complex in Srinagar..........
Mangelal Sharma gets his Rs 7 lakh back
..........Yesterday, there was another knock on 79-year old Mangelal Sharma’s door. Once again,the visitors were IndusInd Bank officials from his branch. But this time, it was not to mis-sell. The bankers came—at 11.30 in the night—bearing a demand draft of Rs7 lakh covering the amount he was persuaded to withdraw from his fixed deposit and invest in DWS’s mutual fund scheme with a 10-year lock in period.........
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