Indian banks, and consequently the entire banking system, have managed to attract criticism on the back of rising non-performing loans (NPLs)—to the extent that any mention on Indian banking in the global arena is mainly regarding NPLs and restructured loans. The inherent strengths of the retail deposit backed banking system and a two-century-old track record of no bank failures have receded into the oblivion. Let us examine whether the so-called NPL crisis is really a crisis situation.......
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.
Friday, December 13, 2013
To check for potential NPAs, RBI orders audit of Allahabad Bank
......The banking regulator has notified Allahabad Bank about the audit to assess the potential non-performing assets and ‘special mention accounts’, finance ministry sources told FE. The RBI’s focus on ‘special mention accounts’ of banks is part of its efforts to ensure that the lenders upgrade their Early Warning Systems so that timely action can be taken before more accounts slip into the NPA category, .....
Banks may soon begin charging customers for ATM usage
......Banks are worried. If the 100,000 ATMs have 20 million transactions a day that means 600 million transactions a month. So, if each transaction costs Rs 6, the total expenditure for banks would be Rs 360 crore a month. If the proposal goes through, this cost would have to be borne by customers. Imposition of any fee would mean the end of free ATM usage for customers...........
Banks want more time for biometric card authentication
.........RBI's working group on the subject, chaired by Gowri Mukherjee, had advised testing the feasibility of using Aadhaar as an additional factor of authentication for domestic transactions.
Here's what RBS sees about Indian banks in 2014
Indian banks are likely to hit the international market with Basel III compliant capital issuances (bonds) in 2014. This will ideally improve capital adequacy of banks with no dilution, Royal Bank of Scotland said in a report released on Thursday..........
New Bank Licences: Rajan optimistic on Jan date
.............."My hope is that by early next year, we will be able to announce the licences. I think we are on target for that, maybe a few weeks this way or that way," Rajan said at a press meet on Thursday...........
What should India's new banks focus on?
......As the new aspirants wait to hear from the Reserve Bank of India (RBI), they should be developing the plan for the plan. This will not be easy as the mandate set out by the Reserve Bank of India is challenging. It calls for one out of every four branches opened by the new banks to be located in rural areas - reflecting the central bank's concern that only 59% of households in India had access to banking services in 2011, according to the most recent census data. Furthermore, the banks will need......... ..
Read - ET....
Bank unions oppose move to grant licences to corporates
United Forum of Bank Unions (UFBU), which has declared an all-India strike on December 18, is of the view that corporates should not be given banking licences. They were in the first place responsible for the collapse of many banks during 1947-1969, according to M.V. Murali, Convenor, UFBU. He is also General Secretary of both National Confederation of Bank Employees and All-India State Bank of India Staff Federation..............
We want a bank licence, but not at any cost, says Shriram Group patriarch
...........“We have made it clear to the regulator that, in the present form of new bank licence norms, it is a huge challenge for the group NBFC, with assets under management (AUM) of over Rs 60,000 crore, to transfer its businesses to a bank. We want a bank licence but not at any cost," ........
Gopalakrishnan pitches for passage of key economic bills
....."...To me what is positive is that proactive action can reverse the situation and that is the reason why I believe the RBI Governor also yesterday talked about continuing on the appropriate bills that need to be passed even during the run-up to the elections so that we can keep up the momentum," .........
IOB gets RBI nod to open 2nd branch in Bangkok
Indian Overseas Bank (IOB) has received the Reserve Bank of India (RBI) approval for opening a second branch at Bangkok, its Chairman & Managing Director M. Narendra has said..........
Court allows plea to produce Jayalalithaa's seized valuables
.....Special Court Judge John Michael D'Cunha ordered the transit of the seized material from Chennai to Bangalore by December 21, observing that it was required for giving fair justice. The seized material is deposited in an RBI treasury in Chennai...........
Thursday, December 12, 2013
RBI’s tough-speak
Raghuram Rajan warns government on fiscal reforms
Financial inclusion in India – an assessment : P Vijaya Bhaskar
............It is one’s earnest hope and desire that the issues raised herein would trigger an informed debate and discussion, which could provide an invaluable feedback in the run up to the Report of Nachiket Mor Committee, which at present is examining the entire gamut of issues surrounding Financial Inclusion. Further on, the research community may like to go into such aspects of Financial Inclusion, which would provide valuable leads to the regulators and all the stakeholders concerned in achieving meaningful and holistic Financial Inclusion at the earliest in our country.
Moving financial capability forward - innovation scale and impact : Deepali Pant Joshi
........Greater financial access combined with financial education creates financially responsible citizens. This mix of financial access and financial education provides a foundation for appropriate market conduct and prudential regulation. Improving individuals' financial behaviour is a long-term policy priority. Financial education needs to commence early and continue through adulthood. In order to achieve the objective of financial inclusion, our financial literacy efforts are primarily directed towards dissemination of simple messages of financial prudence, in vernacular languages, through large awareness campaigns across the country combined with vigorous roll out of financial inclusion plans by banks, insurance and pension funds, and others. It is important to note that being literate is not a necessary prerequisite for attaining financial literacy as...........
Rationale, logic and facts of updation
Friends,
The members of the Central Board of the Bank were not told so boldly the rationale, logic and facts of updation in the Bank as has been told in the latest communication / appeal dated 9th Dec. 2013 to them by our GS Shri MB Talekar. This is to the best of my knowledge. I humbly wish all of you to go through it seriously and be convinced that ultimately we would win the case as our fight is for just cause of our community. Kindly do not lose hopes as the issue has so far been dealt with in wrong direction by mighty elements like GOI. Showing perseverance and develop strong pressure is the need of the hour for our community across the board.
Mamata Banerjee has no time to meet RBI Governor
......RBI Governor Raghuram Rajan is coming down to Kolkata on Wednesday afternoon and will hold the central board meeting on Thursday. It is a custom for the governor to meet the chief ministers of states where the RBI holds its central board meetings. RBI officials said the state secretariat did not respond to a request by the banking regulator for a meeting with the chief minister. The Kolkata central board meeting is the second since Rajan took over as the RBI Governor in September ..
RBI banks on experience to breeze through
....RBI is an experienced team coached by the veteran former state footballer Vijay Kachhi and as expected the RBI team comprising of stalwarts like Rajesh Tadvi, Rajiv Karir, Anil Tomar, Abhishek Tripathi and many more showed better ball control and coordination and was in complete control of the proceedings............
High inflation in Nov set to keep pressure on RBI
...........If actual data for November reflects median forecasts in the poll it would harden expectations for another interest rate hike at the RBI's meeting next week. "Will Dr Rajan feel the need to respond to the rise in both WPI and CPI inflation? We expect he will and still look for a (final) 25 basis point hike at the 18 December meeting," .......
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