ATM cards issued by the public sector banks are found to be highly susceptible to fraud as they are made of inferior technology, according to the banking ombudsman of Andhra Pradesh. "The cyber crime wing of the police department has been receiving 4-5 complaints every day involving impersonation and most of these cases pertain to the cards issued by the public sector banks," N Krishna Mohan, Banking Ombudsman and Chief General Manager of Reserve Bank of India, said on Wednesday.........
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.
Thursday, August 22, 2013
Aadhaar Card to be accepted as address proof
........Minister of State in the Ministry of Finance Namo Narain Meena, who gave this information in written reply to a question in the Lok Sabha, said, “RBI vide its circular dated 28.09.2011 has advised banks to accept the Aadhar letter issued by Unique Identification Authority of India (UIDAI) as an officially valid document for opening bank accounts without any limitations applicable to small accounts.”...........
Only swift action on CAD can soothe market: Gokarn
...........Gokarn, who is currently director of research at Brookings India, feels that government and RBI should not ignore rating downgrade risks. “We need to see a dramatic change in monetary policy stance. Only a swift action on CAD can soothe market,” he added.......
Crisis Brings RBI and Government Together
.......Whatever these measures achieve in the long-term, the response to the depreciating rupee has certainly given the immediate impression that the country’s economic and financial management system is working hand in glove after a long period of antagonism. The time of crisis may have brought the bank and government back together, but their underlying ideological divisions may eventually drive them apart again.
RBI saved banks from logging Rs 30,000 cr mark-to-market loss: ICRA
Ratings agency ICRA on Wednesday said the country's banks were staring at a loss of up to Rs 30,000 crore on mark-to-market (MTM) loss if not for the Reserve Bank of India's (RBI) relaxations yesterday. The losses will now get reduced to Rs 3,000-5,500 crore, it said in a statement released a day after the Reserve Bank got in the set of relaxations.............
RBI act to induce sanity; relief rally in banks: BlackRidge
...........There is something to cheer about on the basis of what RBI has done. Typically, RBI was in the past following a classic textbook approach of raising interest rates, bringing down growth, sucking away liquidity and then trying to manage the currency. I think the Indian version of the Operation Twist, what we have seen is expected to get some sanity in the market...........
Banking on RBI
...........Indeed, from RBI’s Wednesday’s announcements, it appears RBI itself was taken by surprise since the stated purpose behind its moves the past month has been to increase only yields at the very short end of the market. With the new dispensation and the promised open market operations—the exact duration and amounts have not been specified—aimed at bringing down longer yields, banks can heave a sigh of relief for now...............
RBI measures fall flat
..........“The worry is that the measures taken by the central bank are seen as incremental and reactive. These are times when people panic and there is a lack of confidence in the market, as well as the economy,” ............
When RBI appears lost...
..........“The market is confused. One group of pundits believes that the steps the RBI announced yesterday is an indication it will no longer take any fresh liquidity tightening measures. But this could exacerbate the pressure on the rupee. But there are others who believe the RBI will intervene whenever the forex market turns volatile. The market seems to be divided on whether or not the RBI will intervene,” .................
Why rupee should retire at 65, and Mr C should take a vacation
The Rupee met the Dollar for lunch yesterday. This was what we overheard…
Dollar: Hi there, Li’l Rupee. How’s life?
Rupee: Can you go easy on the “Li’l” part? I’m not in any mood for your cockiness…
Dollar: Sorry, didn’t mean to belittle you. Sorry, that slipped out unintentionally. But why are you in such a sorry state? What happened?.............
A Weaker Rupee is Not a Bad Thing
..........The
government should now focus on reining in inflation, part of the reason
for the rupee’s weakness and likely to go up because of that weakening.
The Reserve Bank of India has done what it could by keeping interest
rates fairly high, but a lot of inflation is related to administrative
lapses..........
Read - ET
Can rupee break 70/$? Yes, if these 4 conditions aren’t met
T
he rupee has already broken the 64 mark against the dollar. Market analysts fear that the Indian currency may touch 70 against the dollar in the near-term. According to Nizam Idris, head - EM FX Strategy of Macquarie, the rupee may break that psychological mark based on these four conditions........
My View on "ISLAMIC BANKING – Shattering the concept of Commercial Banking"
The terms 'Hire Purchase' and 'Lease financing' are familiar among those associated with financial institutions particularly, banking. In the case of higher purchase financing, we add the interest element and collect the amount in installments over a fixed period of time. In Islamic banking, instead of interest, a fee is loaded and the same is recovered from the user. Here, the ownership remains l with the lender until all the installments are paid by the borrower. The relationship between the lender and the borrower is something similar to that of a seller and buyer. Similarly, in the case of lease financing, lease rent is collected from the user and the asset would be transferred after a specific period of time either to the lessor or lessee depending upon the terms of the contract. These are just two examples which are very close to Islamic Banking. Islamic Banking is more transparent. It recognises partnership approach to banking and so better monitoring and follow up supervision is ensured as the banker is also keen in running of such enterprises supported by it in a profitable way.
Advantages for India:
In the present CAD crisis, allowing Islamic Banking in the country, would bring in huge flow of foreign investments from friendly countries such as UAE and others which would help in long term stability of foreign exchange. It is understood that even when the Indian currency is falling in value every day, none of the foreign investors in banks like HDFC, ICICI etc., have taken away any of their investments in these banks. So, allowing Islamic Banking will give long term stability to our economy. No going back to IMF as we were doing earlier. Now also such fears are looming large. Traditional banking will have good competition to meet with and so they will work more efficiently and it will improve customer services in terms of cost of providing various services.
Caution while allowing Islamic Banking:
There may be chances of funds from terrorists' groups to come to India through this banking system. Of course, a robust oversight system and suitable checks and balances would need to be in place which RBI is capable of taking care.
- S.Santhanam
India- RBI approval for Cheraman to boost inclusive growth
(MENAFN - Arab News) Indian and international Islamic banking experts have welcomed Reserve Bank of India's decision allowing operation of an interest-free non-banking financial company (NBFC) in Kerala, saying it would encourage the country's 200-million-strong Muslims to participate in the country's development projects. "It will have a big impact on the Indian economy and contribute to the expansion of Islamic banking and finance worldwide," said Mohammed Azmi Omar, director general of the Islamic Research & Training Institute, an affiliate of Islamic Development Bank.........
Read.........
Read.........
Madhu Kapur’s suit can’t be accepted under banking laws: Yes Bank
........“This court has no jurisdiction to entertain this suit because the respondent is a bank governed by Banking Regulation Act just like companies are governed by the Companies Act,” Kadam said, citing some instances when corporate cases were not heard in the civil court. “(I am sure) this civil court in its wisdom will not sit over the jurisdiction of this case,.............
SBI rejigs accounts to lower losses on farm lending
.......Insiders say this is the first time that the bank has undertaken such an exercise. SBI's farm loans stand at Rs 40,000 crore with 7-8% of bad debts. Experts TOI spoke to say that the exercise is nothing "but fudging of books". A spokesperson at RBI said, "We are aware of the issue and examining it." .........
Yellow metal price rise revives fortunes for gold loan NBFCs
......... “There’s no denying that when gold prices increase, there is a positive effect on the eligible loan amount (which automatically goes up). This being the case, when import duties are hiked or when other supply restrictions push up the price of gold, the gold loan industry actually stands to gain,” ...........
Nabard union cautions against recasting cooperative credit system
All-India Nabard Employees’ Association has said that basic features of cooperative credit structure should not be tinkered with until after an informed nationwide debate on the matter. The demand comes in the context of a Reserve Bank directive to the National Bank for Agriculture and Rural Development (Nabard) that it should pilot the reforms in the cooperative sector..............
RBI wants politicos away from co-operatives
In response to a directive from the RBI the Punjab govt. has decided to begin a process that would prevent politicians and their supporters from controlling central cooperative banks in the state. In a strange coincidence readers could recall that IFFCO Managing Director U S Awasthi had recently told Indian Cooperative that politicos should desist from joining cooperative affairs. Echoing his views RBI passed a similar direction in the wake of large-scale bungling in the affairs of the cooperative banks across states...........
Wednesday, August 21, 2013
Subbarao came with new ideas, but leaves with old problems
A mixed legacy of India's 22 governors so far, few have had multiple challenges like the departing central bank chief Duvvuri Subbarao. Yet he showed a dignified approach to policy-making at a time when the quality and credibility of institutions are being eroded, says ET...............
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