.......“Banks
are forced to offer a higher rate because of the bidding process, often
done informally,” a finance ministry official said confirming that the
issue has been raised with the RBI. The central bank is aware of the
problem and had said even in its 2012-13 monetary policy statement that
there was a wide variation in banks’ retail and bulk deposits, which is
unfair to retail depositors...............
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, September 16, 2013
Mandya district may soon get State’s first all-woman bank
.................The actor-turned MP was in Mandya on Wednesday to lay the foundation stone for a commercial complex on RAPCMS grounds, off Bangalore-Mysore Highway, here. After the programme, Ms. Ramya said she had requested Minister of State for Finance Namo Narain Meena to set up the bank branch in Mandya. She had got a positive response from the Union Minister. The district was likely get the bank by November. Its location, however, was yet to be identified, she said..................
Banks scurry to expand presence in non-urban areas
........Of this, a large number are in metro and urban areas. Though the rule that banks set up at least 25 per cent of the total branches in rural areas has existed for decades, not many banks have followed this diktat. This has lead to an uneven spread of banks. “Notwithstanding the development of various types of banks, the Indian banking sector is yet to meet the desired banking penetration and inclusion as witnessed in most advanced and some of the emerging economies,” the RBI said in a report recently............
Country bank
.......... If the villager has any money, he can open a savings account and create a variable recurring deposit, or ask the teller to make an electronic bank transfer to his girl friend; otherwise he can use the same account to take an overdraft. The Indian villager is a lucky man — at least in the view of the RBI.
Bank Licence Hopefuls Scramble for Clearances
Banking
aspirants, including Shriram Capital and Religare Enterprises, are
running from pillar to post to get clearances from a plethora of bodies
such as the Central Bureau of Investigation, the income-tax department,
as the Reserve Bank of India accelerates processes to grant new licences
by January. The central bank, which is in a hurry after Raghuram
Rajan took charge, has sought details of the ultimate beneficiary
shareholders in some of the group companies and more details about
finance beyond what appears in annual reports.........
Read - ET
Read - ET
RBI must come clean on why it took so long to acknowledge its mistake
......‘Inadvertently’? It’s been more than two months since the Bank released the list of 26 applicants! So why did it take it so long to realise it had made a ‘mistake’?............
Read - ET
Maharashtra’s Rs 545 crore is locked in land leases
.........The leased lands, located at prime spots, house offices of corporate companies such as Reliance Industries, Jet Airways, public institutions Indian Oil Corporation, Reserve Bank of India as well as elite recreation clubs like Hindu Gymkhana, Islam Gymkhana, Bombay Gymkhana, Wodhouse Gymkhana and Willington Sports Club. The Maharashtra Opposition has alleged that the government did not renew the land leases to give an undue benefit to those who possess the lands...............
Banks must explore new-generation technologies: CII-KPMG report
In view of the prevailing scenario, the financial services industry must explore the potential of some new-generation technologies such as social media, mobile, analytics and cloud (SMAC), according to a CII-KPMG report that was unveiled during the Banking Conclave 2013 in Kolkata. With the Indian banking sector at an inflexion point, the CII-KPMG report notes that the sector must live up to the challenges, particularly in view of the government's ambitious financial inclusion plans and its decision to spend substantially on infrastructure building..........
Will Chidambaram yield to raise the tax exemption limit
The Prime Minister’s Economic Advisory Council wants the government to raise the tax free savings limit for individuals to Rs 5 lakh from Rs 1 lakh. It’s a good idea as this could encourage people to buy more houses, mutual funds, insurance or pension policies and improve the country’s financial savings. The salaried middle class would be happy because for most people PF contributions alone account for a good chunk of the tax exempt of Rs 1 lakh. This leaves them with barely any incentive to invest in other savings schemes............
How the money flows from banks
..........According to available statistics, during the current year 2012-13 up to July end, home loans of banks grew by 18.4 per cent. Loans for commercial real estate during the same period grew by 15.61 per cent. It is reported that the bulk of the growth is in Mumbai and Northern Capital Region. The new guidelines are meant to stop the banks from up-front disbursal of sanctioned individual loans to builders, in order to avoid risk to both banks and the borrowers..........
Regulators get tech-savvy
......Various regulators, including the Ministry of Corporate Affairs, Central Board of Direct Taxes, Securities and Exchange Board of India and Reserve Bank of India have started using the Information Technology Act, 2000 to enhance corporate governance...............
There’s someone ‘smarter’ than your smartphone
............“Nowadays people use handsets with Anroid version and download apps from Google’s Playstore. While downloading, there are chances that a malware named Perkele -- which means Devil in Finnish -- may enter the user’s system, through which attacker gathers information of the user’s mobile data,” Rohit Shrivastava, founder of Club Hack, says. So each time a bank sends an SMS or a one time password (OTP) to the user, the same SMS goes to the attacker. This malware, which has entered through the download, helps the attacker block the SMS alert to the user, so the user is not able to see it, .............
IIM-A faculty suggests way out of macroeconomic mess
AHMEDABAD: There is possibly a way out of the current economic mess if credit can be expanded to close the differential between the low end government bond yields and the repo, says a working paper by faculty of the Indian Institute of Management, Ahmedabad..............
Risk-free returns aren't enough
........The Reserve Bank of India's latest annual report shows investors put Rs 647 billion last year in new commercial bank FDs. Bank deposits comprise 56 per cent of a household's investments. Says Vishal Kapoor, head of wealth management, Standard Chartered,"The bank fixed deposit has been a traditional investment across emerging markets and for most investors, as there's a safety and comfort attached to these products."..........
What a swap is all about
........Two parties agreeing to exchange their cash flows in such a way that both are benefited, is what a typical swap entails, in the financial sense. Companies, financial institutions and even countries enter into such exchanges. The commonly used swaps are interest rate and currency swaps. Swaps were in news recently because the Reserve Bank of India introduced a swap window to attract FCNR (B) dollar funds to rescue the beleaguered rupee. The RBI has allowed banks accepting deposits for three years and over, under FCNR (B), to swap the dollars with it for rupees.................
Cash or credit?
......The beauty of credit cards is that the downside is subtly hidden while the benefits are plugged for all they are worth. Then there is the status thing; silver cards gave way to gold, which gave way to platinum, and now, there are black cards and even palladium and titanium. Dubai’s First Royale Mastercard is made from real gold and has a diamond set in the card. All the big players—Amex, Mastercard, Citibank and Visa, as well as leading banks, have VIP cards for their richest clients, which come with special services. All this is a long way from the origins of credit cards, in America, during the 1920s. It started with...........
Merger has strengthened bank’s financial position: chairman
Chairman of Pragathi Krishna Gramin Bank M.B.Bhat has said the merger of Pragathi Gramin Bank and Krishna Gramin Bank had strengthened the bank’s financial position and would enable the bank to provide better service to its customers. Addressing a press conference here on Saturday, Mr. Bhat said that the merger process had been completed and the staff and officers of both the banks were happy.........
Syndicate Bank plans to outsource ATM management
............Initially, the bank intends to go for outsourcing ATM Management Services at 194 off-site ATMs. This might be extended to all the new off-site ATMs opened subsequently. Also, the bank proposes to go for partial outsourcing of management of on-site ATMs, it said in a bid document. The bank has been strengthening the ATM delivery channel by adding more ATMs from time to time. It plans to add 1,300 ATMs during this year..........
Schemes for minorities being cornered by non-Muslims: Report
........The Reserve Bank of India's efforts to extend banking and credit facilities to Muslims, a major fallout of the Sachar Committee report which said Muslims were out of the banking system, has also ended up benefiting non-Muslim minorities whose socio-economic status is comparable to upper caste Hindus, the report said. "Diffidence at the policy level to clearly focus on Muslim deprivation translates into active reluctance by the implementing agencies on the ground to target the Muslims even in districts with high Muslim concentration," the report said........
Top IRDA official charged with sending ‘spurious mails’
.........S. K. Jain, who is also the Vice-President of the IRDA Officers and Staff Association, was charged with using fake IDs to send e-mails to senior officials, including those in the Ministry of Finance, about corruption and malpractice in the regulatory body. The remand report of the police dated August 23, 2013, notes that Jain had “noticed some irregularities in promotions, absorbing of ineligible employees and corruption, upon which they have tried to convey them to senior officers but they have showed deaf ear… As such, he had decided to send mails to private persons…’’............
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