Nationalised banks account for just 17.5 per cent of the fraud cases that have been registered in India’s banking system in the past four years. But what is alarming is that over 83 per cent of the cumulative losses of Rs 29,910 crore due to such acts occurred at state-run lenders, raising a question over the efficacy of systems in place in the wake of the Cobrapost expose. The data on frauds in the banking system was compiled by RBI based on information filed by the 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, August 5, 2013
With few checks, thieves swipe stolen cards without any hassle
..............Despite banks instructing retailers to request customers for identity proof, most commercial establishments give the process the go-by. Owners of shops and restaurants say they usually do not have the time to cross-check if the transaction is kosher. The RBI had directed banks to install card swiping devices that require customers to enter PIN numbers at commercial outlets from July 1, but few establishments offer this additional security feature. The lack of checks has resulted in a spurt in fraudulent card use, say security experts. .........
Resolve your problems with the right RTI application
..............All government institutions fall under the purview of the RTI. Institutions such as the Reserve Bank of India, Securities and Exchange Board of India (Sebi), Insurance Regulatory and Development Authority (Irda) and public sector banks have PIOs. But a private bank or a private company isn't obliged to have a PIO. So, if you have an unresolved complaint against a private sector bank, first file a complaint with the banking ombudsman; then, file an RTI application seeking the status of your complaint. This would ensure you get a response from the ombudsman, who would have to ask the bank for details of the complaint............
CM writes to RBI over loan repayment of mining-affected
.........In a letter sent to RBI Governor D Subbarao on July 26, Parrikar, while highlighting the economic slowdown caused as a result of direct and indirect halt in mining activities, said banks are pressurizing borrowers who are affected by mining to repay their dues. The borrowers had requested the banks to re-phase and restructure the loans last year with the hope that mining would start this year. They approached banks with the same request this year as mining has not resumed. However, Parrikar claimed that this request for another restructuring of their accounts is not being considered by the banks.............
Jaffer Sharief wants CBI probe into Amanath bank scam
...............The bank, mainly a minority institution, has been in dire straits, as RBI directed it to freeze all transactions following blatant violation of the central bank’s guidelines. For the last six months, the bank has been allowing depositors to withdraw only Rs 1,000 per account. It announced recently that depositors’ monies would be returned after Ramzan.............
Govt likely to earmark Rs 1,300 cr for Post Bank of India
........There are around 90,000 bank branches in the country and provision of real-time banking services through postal network is estimated to triple the current banking network. The Post Bank of India is proposed to be owned by DoP, but with a completely independent board, governance structure and operations. It will have representation from Finance Ministry, Ministry of Communication & IT, besides independent directors on its board.............
RBI approves reforms in primary co-ops
........In States where the central/ state cooperative banks are fully computerised and on core banking systems, Primary cooperatives will function as their business correspondents. A circular from the head office of National Bank for Agriculture and Rural Development (Nabard) unveiled the reforms to state and central cooperative banks. Jose T. Abraham, President, All-India Nabard Employees Association, said this would mean the death knell for an estimated 93,000 primary cooperatives in the country. Rather than help financial inclusion, the new reform would only drive poor farmers and rural people to local moneylenders for meeting their credit needs, he added. The employees association would resist implementation of these reforms with all strength at its disposal..............
Nabard chief against splitting cooperative banks
 |
| ..............“If we split the bank which is serving entire Andhra Pradesh, we will create one more cooperative bank, one more board and have one more chairman. A good financial institution broken into two will become weak,”................. |
Kerala rejects NABARD fiat
The State government has rejected a directive of the National Bank for Agriculture and Rural Development (NABARD) to primary cooperative banks (PCBs) to stop accepting deposits and transfer their equity, loans, and deposits to district cooperative banks (DCBs) as recommended by the Prakash Bakshi Committee.............
Regional Rural (Gramin) Banks : Going Away From the Objectives?
In yet another attempt to save regional rural banks from collapse, the Government intends to take private parties on board. In this year’s Budget session of Parliament, the Finance Ministry tabled a Bill that allows regional rural banks (RRB), also known as Gramin Banks, to raise capital from private sources. Analysts are skeptical. They say private shareholding may ensure financial stability but would distract RRBs from their objective of strengthening rural economy.................
MP sets example, makes DBT a hit
.......The RBI allows a small bank branch for a population of 2,000 but in bigger states like MP it would translate into villagers having to travel 10 to 20 kms to visit a branch. Banks in states like Orissa and Bihar appointed banking correspondent for villages for last mile banking service but the model failed because of inadequate business and inconsistency in visits of the banking correspondents............
Banks slam brakes on loan disbursals
.......For whatever meagre disbursals are happening right now, banks are insisting on higher premiums over the base rate, making loans far more expensive than they ought to be. The present situation is an exact reversal of the earlier practice when banks were saddled with huge sanctioned loans that were not being availed by borrowers. Bankers say they will not be disbursing the sanctioned limits until there is clarity on where the interest rates are headed........
Understanding the poverty line
........A Committee chaired by one of India’s finest economists, former Chairman of the Prime Minister’s Economic Advisory Council and the National Statistical Commission, the late Suresh Tendulkar, computed poverty lines for 2004-05 at a level that was equivalent, in purchasing power parity (PPP) terms, to one U.S. dollar per person per day, which was the internationally accepted poverty line at that time............
A last chance for economic survival
.......The lower growth resulting from Dreze-Subbarao policies pushes up the fiscal deficit and consequently boosts inflation, thereby resulting in the RBI tightening the spigot even more harshly. In the process, the Central bank dooms hundreds of companies into defaulting on their loans. As a result of Dreze and Subbarao, the Indian banking sector is rapidly becoming as sick as the sector became during 2005-8 in the US and in parts of the EU, with the difference that this country does not have the financial cushion needed to stabilise the banks. Aware of this, speculators are making a killing out of making a safe bet, that the rupee is headed downwards towards 75 to a US dollar and even 90, thereby boosting prices (and monetary tightening) even more.................
Depressed Indian economy - Charan Singh
All-out effort to accelerate growth required
...........Finally, the RBI would help the economy recover by lowering interest rates. The government could consider lower interest rates, at least for loans to the housing sector and infrastructure to spur growth. Finally, to ensure recovery, special concessions could be considered for auto industry as were granted by President Obama in the USA. The need is to revive growth and all-out effort to achieve growth should be made by the policy-makers.
The writer is a Professor of Economics, RBI Chair, IIM, Bangalore. The views expressed are personal.
Bank of Maharashtra to get capital infusion of Rs 2,200 cr
...........“We are likely to get a capital infusion of Rs 2,200 crore from the government of India in September which will raise our core capital adequacy ratio from the present 7.57 per cent to over 8 per cent as required by the Reserve bank of India,” Narendra Singh, chairman and managing director of Bank of Maharashtra, said. However, it’s overall CAR under Basel II norms as of end June was 11.83 per cent, he said..................
Canara Bank considering takeover of Amanath bank
............Asked whether the bank, which has been slapped with a moratorium by the Reserve Bank of India against allowing withdrawals of more than Rs. 1,000 by depositors, would not become a burden, Mr. Dubey said, “Of course, we are aware of the moratorium by the Central bank, but we will also consider other factors, including how many (loan) accounts are secured, before we take a decision on the matter.” He said he was aware the cooperative bank was saddled with “some NPAs”........
What deterred new banking aspirants?
...............Though the licensing tranches started nearly 25 years after bank nationalisation in 1969, one in 11 applicants and one in 50 got RBI banking approvals in 1993 and 2003 respectively. Ten entities were granted approval in 1993, while in 2003, that was whittled down to just two applicants. But this time, the ratio may improve, as the base number is low at just 26 and the government may be keen to enlarge the banking network owing to its financial inclusion commitments.....................
‘We have to grow our business beyond infrastructure’
...............IDFC is one of the several players that have applied to the Reserve Bank of India for a banking licence. “It is a nice, interesting irony and coincidence that my outside-IDFC activities are helping a great deal in fashioning what I believe to be a very differentiated and promising business model for a new bank,” Lall said, during a recent interaction here..............
Move to settle YES Bank case out of court
Kapurs and Kapoors - the families of YES Bank's promoters, the late Ashok Kapur and Rana Kapoor, respectively - might not wait for the courts to solve the dispute over membership on the bank's board. A move is understood to have been initiated for an out-of-court settlement. According to people familiar with the development, a meeting between the families was held on Saturday to discuss whether the case could be settled outside court. Another meeting was scheduled on Sunday evening,..................
Subscribe to:
Posts (Atom)