My View on "Rate cut hope hinges on Subbarao's successor"

It is true that Dr Subbarao has, in media interactions, indicated he was not keen to continue beyond September, 2013. But no RBI Governor in the past also has given out his mind about his expectations about further extension of tenure especially after the ‘normal’ 5 years term. But politically and from a mere expediency angle, certain factors are in favour of giving a one year extension to Dr Subbarao. With 2014 Elections round the corner, experimenting with a new face at Mint Road, howsoever ‘faithful’ to North Block he may be will be a risk GOI should avoid. For the new incumbent also, it will save a lot of ‘adjustments’, if he takes over post-2014 Elections.

- M.G.Warrier

My View on "Now, open a savings account and earn reward points"

......Whatever it is, RBI has to ensure that Banks do only banking business in a traditional manner ie;accepting deposits and lending of money.If any incentives are linked  other than efficient customer service to these normal banking transactions, there is something seriously wrong and need to be nipped in the bud itself. Otherwise RBI will have to face an embarrassing situation.....................

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‘Ministry not planning to increase retirement age of govt employees’

...........Officials in the Ministry said increasing retirement age requires a detailed consultation with all stake holders and discussion with the Finance Ministry. Without the Finance Ministry’s permission the matter cannot not be processed, they said. At a time when government is working on austerity drive by cutting expenditure and putting in efforts to rein in current account deficit (CAD), the move to increase retirement age will also burden the exchequer’s kitty, they said..............

Read - HBL

Calling FM’s bluff: Why not ask RBI to sell its gold

........The RBI has an estimated 550 tonnes of gold in its reserves. So instead of importing gold to meet the needs of citizens for the rest of the year, the RBI can sell the gold it is holding in its reserves to citizens. With the rupees raised, it can do an even better job of suppressing interest rates by buying government bonds. Even more attractive is the fact that there is no change in its balance-sheet, as it will be substituting one asset class with another. And going by Chidambaram’s advice, the RBI is substituting a dumb non-productive metal with a government bond that would help the government do whatever it wants to do...........

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A question of black and white

......Big corporations are known to buy database from snooping agencies on troublesome employees, such as whistle-blowers and prospective business partners. But most blacklists are public. The Securities and Exchange Board of India and the Reserve Bank of India keep them to help investors. The defence ministry - prone to Bofors-brand scams - recently announced in Parliament a list of arms suppliers with whom no further contracts will be signed. The charges against them include use of undue influence, agents and payment of commissions...........

Read | Business Standard

Cobrapost shows brighter side of Indian banking

Online news portal, Cobrapost.com  in the news of late for exposing unethical practices by banks, sprang up a surprise yesterday when it reported having come across a few ‘honest’ bank managers in the course of the fourth episode of its expose...................

Read | Business Standard

Wait till after Ramzan: Amanath Cooperative Bank

Nearly two months after the Reserve Bank of India directed the Amanath Cooperative Bank to freeze all transactions, the bank announced another deadline to return depositors’ money, promising it after Ramzan, which starts in the second week of July.........

Read | The Hindu

Banks start charging money for SMS alerts, mobile banking

............The frequent hikes in service charges are fast reaching a stage where consumers will revolt. The Reserve Bank of India (RBI), which follows a policy of forbearance (allowing bankers to decide charges themselves) with regard to service charges, refuses to intervene. At the same time, the RBI is pushing banks to extend services to hundreds of million unbanked Indians. There is a clear disconnect here, since no-frills accounts permit only ATM transactions and banks now claim that those too involve a huge cost. Can the RBI afford to remain silent about rising service charges? It is a question that the banking regulator needs to answer.

Read - Moneylife

Nearly 1,000 cards were cloned in Axis Bank kiosk

....The cops who had obtained the CCTV footage of the ATM kiosk had zeroed down the CCTV footage of 22 days and had found that two men of foreign origin had placed the cloning device in the Axis Bank ATM. The source further revealed that the crooks who were seen placing the cloning device and the pinpad seem to be European nationals and are fair in colour. The process of monitoring the CCTV footage ended on Monday, three days after the case was registered in Colaba police station in which the cops have identified a suspicious person of foreign origin........

Read - FPJ

RuPay goes online

The RBI-backed payment network, RuPay, which is widely seen as a domestic alternative to MasterCard and Visa, has been quietly rolled out for e-commerce use by the National Payments Corporation of India (NPCI). This move will provide another payment option for customers with several websites starting to accept RuPay payments—the Future Group’s online venture, for instance, currently provides a RuPay option.............

Read | The Hindu

West Bengal's saving scheme may face RBI opposition

.....If the state government plans to raise any deposits, it has to be routed through either of the two NBFC bodies. Otherwise, the state would need a special permission from the Central government to raise deposits. RBI’s opposition to any non-banking entity raising deposits was accentuated by a recent statement by  RBI governor D Subbarao that, “deposit taking should eventually be restricted only to banks which are tightly regulated. Deposit collection by non-banking companies should be gradually minimized, and eventually eliminated.”.....

Read | Business Standard

Infosys' CBS solution to power UP cooperative banks

.......National Bank for Agriculture and Rural Development (NABARD) is facilitating the implementation of the CBS project. “It is up to the respective DCCBs to approach us for migrating to CBS platform or decide to do it independently,” NABARD chief general manager K K Gupta said .........

Read | Business Standard

WHO NEEDS MORE BANKS?

.......The RBI is seemingly not as enthusiastic as the government and has been slow to implement the policy since when it was first announced by Mr Pranab Mukherjee back in 2010. May be because it wants to be sensible. But with greater emphasis from the government as the 2014 polls approach, it has had to get cracking. Besides “financial inclusion”, another plank with which the government is beating RBI into submission is the magical “increased competition” panacea which will improve customer service and more importantly, bring down interest rates on consumer loans. There are however,...........

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Edelweiss to decide on applying for bank license next week

...."I think anybody who has a credit business will apply for banking...We are only evaluating...We have in the forthcoming week our board meeting where we would decide whether to apply or not,".............

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Tourism Fin Corp to seek licence from RBI to set up bank

The Tourism Finance Corporation of India Ltd (TFCI) on Wednesday said the board has approved a proposal to seek licence from the RBI for setting up a bank. "TFCI, in terms of the approval by the board of  directors, is submitting application with RBI for a banking licence," the company said in a filing on the BSE..................

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Indian rupee to stay under pressure from US dollar: D&B

The Indian rupee is expected to remain under pressure in the near term, given the strengthening of the US dollar against major global currencies and widening of the trade deficit, says a report. According to global research firm Dun & Bradstreet (D&B), steps taken by RBI and government are likely to provide some support to the rupee going ahead..........

Read - IE

FM to meet chief executives of PSBs on June 26

The Finance Minister P Chidambaram will meet chief executives of public sector banks (PSBs) on June 26 to review the performance of the banks during 2012-13. Indications are that Chidambaram will use the occasion to discuss the aspect of bankers' not reducing lending rates in proportion to the policy rate cuts effected by the Reserve Bank of India..........

Read - HBL

Yes Bank to take up Gogia nomination on 27 June

....Gogia—the daughter of Ashok Kapur, late co-promoter of Yes Bank—who has gone to court over board membership, submitted her nomination on Tuesday. The Reserve Bank of India (RBI) nomination form is a declaration stating basic details such as name, address and also whether the person seeking nomination is under investigation by RBI, the Securities and Exchange Board of India (Sebi) or any central agencies. The bank’s company secretary said on Wednesday that it has received Gogia’s nomination. “The nomination will now be presented to the board’s nomination committee on 27 June,” ...........

Read - Mint

Bond auction: RBI goes for uniform price method to curb volatility

.......Under the uniform price auction method, all successful bidders are required to pay for the allotted quantity of government securities at the same rate, which is the auction cut-off rate. This would be irrespective of the rate quoted by them. Under the multiple price auction method, successful bidders are required to pay for the allotted quantity of government securities at the respective rate at which they had bid........

Read | Business Standard

Lakshmi Vilas Bank short-lists three for CEO's post

..........."The names have been sent to the Reserve Bank of India (RBI) for consideration. The new chief executive officer is expected to be appointed soon," one of the sources told Business Standard requesting anonymity. Lakshmi Vilas Bank had received over 55 applications for the position of chief executive officer. The applicants included senior executives from SBI, one former official of RBI, and business heads of ICICI Bank, HDFC Bank, Axis Bank, Citibank and Hongkong and Shanghai Banking Corporation (HSBC)............

Read | Business Standard