........According to a Trai statement, USSD is a ubiquitous, inexpensive, secure and convenient channel for mobile banking. “The framework is to encourage financial inclusion. We want mobile banking to be extended to the un-banked people, especially in the rural areas,” said Trai chairman Rahul Khullar..............
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, November 28, 2013
For fourth auction in a row, IIBs find no retail interest
...... “Since the RBI mentioned that there would be a CPI-linked instrument, most people are waiting for that. From just an optical basis, the 3% differential between the CPI and WPI is making people wait for the CPI-linked instruments,” said Ananth Narayan G, co-head, wholesale banking, and head of global markets at Standard Chartered Bank. RBI Governor Raghuram Rajan, after taking over in September, had announced that retail inflation-linked savings certificates would be issued soon. Separately, Deputy Governor HR Khan indicated on Monday that IIBs for retail investors would be issued in December............
Card swipe machines may raise banks' costs
........According to the head of the cards and direct banking business of a private bank, this would result in an additional feature of validation at POS machines using the Unique Identification Authority of India (UIDAI) number. “This has come as a surprise to us because RBI had not discussed this with banks so far. Now, POS terminals will have to be changed to accept biometric validation,” the official said, on the condition of anonymity........
Is the bank ATM a public good?
..........The subtext, sometimes articulated, is that since 60% of the adult population does not have a bank account, an ATM is essentially an elitist construct, not worthy of being within the protective cover of the general law and order setup. The Reserve Bank of India’s (RBI’s) obscure diktat to banks to provide adequate security to ATMs and the Karnataka government’s summary closure of ATMs because of non-compliance with the security-guard requirement are emblematic of this muddled thinking. What everyone conveniently forgets is that an ATM is not tied to the mother bank—the free usage of another bank’s ATM (up to a fairly liberal limit) has made the ATM a near-public place...........
The Header over the Bar
This
refers to ‘Aadhaar Link Mandatory for Card Deals Now’ (ET, Nov 27). On
the basis of recommendations of a working group that had examined the
issues including those relating to security features in the card payment
system, RBI has advised banks that (a) in respect of cards, not
specifically mandated by the RBI to adopt EMV norms, banks may take a decision whether they should adopt Aadhaar as additional factor of authentication or move to EMV chip and PIN
technology for securing the present card payment infrastructure, and
(b) the card infrastructure has to be enabled for both EMV chip, PIN and
Aadhaar (biometric validation) acceptance. As banks have an option to
decide, the headline is misleading.
- M G WARRIER (ET)
- M G WARRIER (ET)
Now Aadhaar link mandatory for card transactions at merchant locations
.....Aadhaar is currently used by banks to establish identity while opening bank accounts, which can then be used to make sure that subsidy payments are routed directly to beneficiaries. RBI had directed banks to issue chip-based cards by November 30 to tackle rising fraud.....................
India’s top eight retail chains report rising card payments in big cities
Plastic is overtaking cash in India's modern retail stores; in many instances, in fact, it has already done so. This should bring cheer to the Reserve Bank of India and the government because it means controlling fake currency and black money becomes easier...............
Read - ET........
Kisan Credit Card to be converted into smart card
..........“All KCCs will be converted to ATM cards by March 2014. Beneficiaries registered for mobile banking would also be able to pay through their mobile too. In the new smart card system, new KCC money could be withdrawn from any ATM or even swiped with a fertiliser, pesticide or tractor dealer, just like a regular debit or credit card,”........
Wednesday, November 27, 2013
Breaking the link - Renu Kohli
............What, however, surprised analysts was the post-policy interaction with the Governor. To a question on whether RBI would raise the policy rate any further, given the higher, end-of-the-year CPI inflation forecast, the Governor replied the central bank was done with its policy rate hikes, which had factored in this projection; he further clarified RBI would now observe inflation as it unfolded going forward and would only act if the out-turn was significantly different than predicted. Though taken aback by the Governor’s clarifications—these didn’t quite match up to his perceived image of an inflation fighter—the implications didn’t take very long to sink in. The Governor’s explanation had completely broken the perceived link between the policy rate and headline CPI inflation............
Move Over, Rajan
RBI
Governor Raghuram Rajan cannot bring inflation down. Only politics can. The
sooner politicians, policymakers and analysts realise this, the sooner we will
have realistic solutions. Inflation has three different drivers. One is the
large fiscal deficit, which creates demand for goods and services in excess of
the supply. Another is steady increase in fuel prices as part of a programme of
gradual decontrol in a context of volatile global energy prices and a weak
rupee. And the third is a steady increase in the demand for fruit and
vegetables and a range of protein foods such as lentils, milk, meat, fish and
eggs. To squeeze any of these inflation drivers, you need good politics.
Finance minister P Chidambaram has said that he would hold the deficit down below
4.8% of GDP. And his determination is clear and credible. But this is not
enough............
Read - ET
RBI has no option but to dance to the Fed's tunes
..............Nor for that matter would any 'self-respecting' central bank. And the RBI as we all know is nothing if not hugely self-respecting!! So let's see what happens between now and 18 December.
Read - ET
RBI warns bank customers to be wary of fraudsters
........Participating in an outreach programme organised by the RBI at Padangady village in Belthangady taluk of Dakshina Kannada district on Tuesday, G. Padmanabhan, Executive Director of RBI, said that as bankers embraced technology there would be people to dupe them. Customers have to be careful in such a situation. Some people are getting messages on the mobile phones or emails where they are offered huge amounts in lotteries. In such cases, people are asked to pay some amount in advance to the sender to get the money. Padmanabhan urged customers not to fall prey to such traps...............
Need to increase use of electronic payments: Khan
NEW DELHI, NOV 26:
India needs to work towards increasing the use of electronic payments and usher in a lesser-cash based society, H.R.Khan, Reserve Bank of India Deputy Governor, has said. Khan, who visited RBI’s stall at the India International Trade Fair here on Monday, rued the limited use of card-based payments at the stalls put up at IITF. There is also not so good acceptance of money through cards by shopkeepers, he added. Khan expressed hope that situation would improve during the next year’s edition of IITF and there would be improved acceptance for card-based payments...........
RBI balm fails to reduce foreign banks' headache
.......Uncertainty also remains on the stamp duty front. RBI said a new section, 8E, had been inserted in the Indian Stamp Act, 1899, vide Banking Laws (Amendment) Act, 2012, and notified in Gazette of India, exempting foreign lenders from paying stamp duty on converting branches into subsidiaries. A senior banker, part of the compliance team of a foreign bank in India, said: “We understand that stamp duty is a state subject and we are not sure if the central government, through a gazette notification, can override state laws. We need to be absolutely certain if we don’t have to pay stamp duty before we decide to set up a subsidiary here.”.......
A hero for whom giving is joy
NAGPUR: Sometimes you just stumble on a real hero living in your midst. It is rare to find anyone engaged for decades in silently wiping others' tears without seeking self-attention or even claiming to be a Good Samaritan that he certainly is. Jaiprakash Chaurasia, a retired employee of Reserve Bank of India, finds joy in giving. He joined the RBI as an assistant in 1978 and retired in August 2011. For every month during his 33 years of service, he made it a point to donate the amount that he earned by way of overtime allowance...........
Litmus test for VITALINFO - Exemplary performance
Hi Mangesh
You are really worth for RBI. You are like a newspaper to all of us giving
full information about all around of Banking Industries. Keep it up. God bless
u dear and give enough strength to continue with this kind of good work.
- K. Swaminathan, Ex Private
Secretary
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REQUEST,
READ IT, STUDY IT, IT'S EASY TO
DIGEST,
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Dear Tarambale,
You deserve every bit of
accolades that are coming your way for the great service you are doing. It is a
huge intellectual task which you are performing magnificently. God bless you.
Our good wishes to you. Regards.
- B K Katyal, Ex
Chief General Manager
Dear Shri Mangesh,
I am now addicted to
VITALINFO and I appreciate your exemplary performance. You are simply the great
and no words are enough to praise your untiring effort in executing this wide
knowledge about banks. Thanks a lot for sharing the information! I am now working
in CAFRAL on contract basis. Kindly include my email id to send this precious
VITALINFO.
– Janaki Ravindran
Dear Mangesh,
Good Morning ! Congrats for ur gr8 work. I read all the comments. Regards
- Sushama Dhawde, Private Secretary
- Sushama Dhawde, Private Secretary
Whither secularism? Govt releases Rs. 5 coins with Vaishno Devi emblem
...........However, the RBI appears to have pushed aside this
traditional concept of commemorative coins. According to RBI sources, it has
issued six other commemorative coins this year. These include coins for 150
years of Kuka Movement, 150th birth anniversary of Swami Vivekananda, 150th
birth anniversary of Motilal Nehru and 150th birth anniversary of Madan Mohan
Malaviya. The RBI only came up with a statement on April 26, 2013, that
coins the picture of ‘Mata Vaishno Devi’ in the centre were minted by the
government and were put into circulation by the central bank. There has been no
explanation or justification to promote the introduction of such an unusual
practice..........
ICICI Bank Organizes Coin Exchange Mela in Haldwani
Haldwani: ICICI Bank, India’s largest private sector bank, organized a Coin Exchange Mela at its Haldwani, Tikonia, Govind Vallabh Pant Marg branch, under the guidance of the Reserve Bank of India. The Coin Mela was organised to offer a free facility of exchanging................
Valuable, but not logical
My View on "Need to incentivise investors to move away from go...":
In an environment where even men wear gold anklets and chains and where the investors are not sure of realizing their investments in the shape in which they have deposited, and where wearing ornaments is part of culture for women, it is difficult to take the valuable suggestion of Subir Gokarn to a logical conclusion.
- Yerram Raju
Window dressing
.....It is tough to understand how delayed payment of amounts that have already become payable will reduce expenditure. Anything is possible because we are hearing about thousands of crores of "unclaimed" deposits with the Employees' Provident Fund Organisation, Life Insurance Corporation, banks. With all the development in technology, can we not think of a more transparent accounting system for public funds?...........
Read | Business Standard
A fine on late refunds
..........The government cannot bully law-abiding taxpayers from their rights because of economic mismanagement. In fact, there should be a stipulated time for I-T refunds or,.....
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