..........Ironically, in both the cases, mostly PSU banks have borne the burden of the NPAs since agile private banks exited their exposure in Kingfisher in time and lent substantially low volumes to the agriculture sector. Whatever the private banks have lent to the agri sector, the farm loan waiver can not be enforced on them. It can now be established that if PSU banks remain state-owned, they have to face more such farm loan waivers in one or other way. In such a case........
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.
Tuesday, June 10, 2014
Maharashtra farmers to protest outside RBI office
Hailstorm affected farmers in Maharashtra are set to demonstrate outside the Reserve Bank of India office in Navi Mumbai on Tuesday. Farmers have claimed that the commercial nationalised banks, rural banks, private and corporative banks are not following the RBI Master Circulars to help and support the farmers. “Using the loopholes in the lending policies of RBI, these banks are actually lending to corporates rather than to the farmers and agriculture. This is forcing the farmers to approach private and illegal moneylenders, who charge usurious interest. This is the main reason for thousands of suicides of farmers being reported every year and for lowering of agricultural growth rate,” a statement by All India Kisan Sabha said....................
`Rajan Sympathetic to Bankers' Cause
.............Reserve Bank of India Governor Raghuram Rajan has been an advocate of prudent lending and prompt repayment principles. He is sympathetic to the bankers' cause and is likely to argue against waivers, said the person. “The regulator is also against the plan,'' said the person. “We are looking at a public interest litigation (PIL), but if something concrete happens even before that, we may drop it.'' Even among bankers there are doubts about the fallout of such a litigation as some believe that there is very little they can do to challenge policy decisions...........
Let's wait and watch
My View on "Write off of loans and offer of freebies - Dr.T.V....":
Dear TVG,
Write offs of loans are for votes and the governments, rather the ministers responsible for such decisions are not loosing anything from their pockets and when they get the votes and come back to power, they make more money. If we see the stats of most of the politicians wealth from one election to the other, it is manifold. So we can imagine, why these write offs. It's the tax payers money is being used for such activities. I only wish the new Central Government will put a stop to all these. Let us wait and watch.
- William Panakal
SLR cut signals RBIs optimism on credit pick-up: B Prasanna
..............Thus, in all, RBI is unlikely to hike repo rate in the current fiscal. The hurdle for a rate cut is also high. The drivers highlighted above suggest that even if inflation decelerates, the momentum is unlikely to decline so significantly so as to suggest 6% final inflation target can be credibly achieved. Thus, RBI is likely to remain in a wait and watch mode for longer.............
Virtual visits
You need to visit your bank but can’t bear the thought of stepping out in the heat. If you are a customer of IndusInd Bank, all you need is a computer or even a smartphone to ‘visit’ the bank. A new service called Video Branch enables customers to schedule a video conference with the bank staff, whether with the branch manager or your relationship manager. Transactions that can be made using this service are booking a fixed deposit, RTGS and NEFT funds transfer, which can be done immediately through a video chat with the contact centre executive. Scheduling a video conference can be done through the bank’s website.
HBL
RBI eases address proof rules for bank A/c
............In a notification, RBI said, “Henceforth, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation. In case the address mentioned as per ‘proof of address’ undergoes a change, fresh proof of address may be submitted to the branch within a period of six months.” The RBI further added that in case the proof of address furnished by the customer is not the local address or address where the customer is currently residing, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer............
RBI signs MoU with South Korean regulator
..........“RBI has been signing MoUs ..with supervisors of other countries to promote greater co-operation and share supervisory information among the authorities,” the central bank said in a statement on its website. Deputy governor H.R. Khan represented RBI at the ceremony in Seoul.
PSU banks autonomy can be a reality
...............The new government has taken the right step by deciding to lower its stake but it will be more prudent if there is no interference in the operations of the banks. This according to the PJ Nayak report can come when the government's stake in all public sector banks are transferred to a holding company.............
FinMin puts amalgamation of regional rural banks on hold
............... Bill to amend the RRB Act is being considered by the parliamentary standing committee on finance. The amendments are aimed at increasing the pool of investors to tap capital for RRBs. A senior public sector official said now, the focus would be on improving the performance of RRBs, including their profitability. Further amalgamation on this front should happen only after examining the viability of the exercise, the official added...........
Public sector banks can get a BIC leap forward
...............The BIC will help distance the government from the boards and managements of PSBs, without any loss in its ownership of the banks. The BIC would "hold equity stakes in banks which are presently held by the government" and be constituted as a core investment company under RBI registration and regulation. A shareholder agreement between the government and BIC would assure the latter of its autonomy, and set its objective in terms of financial returns from the banks it controls. The board of the BIC would be professionally constituted with a professional CEO, a non-executive chairman nominated by the government and independent directors with adequate skills and expertise. The report recommends..............
It's final: RBI tells banks to keep 60% liquidity coverage ratio from January 2015
................The concept says that financial institutions should have 100% assets back-up to ride out short-term liquidity disruptions. Accordingly, banks are required to hold an amount of highly-liquid assets, such as cash or treasury bills, equal to or greater than their net cash over a 30 day period...............
More services on anvil at non-home ATMs
.............. “Several banks have the cash deposit facility at ATMs that are not inter-operable as yet. So only the bank consumers can use it. We have sought RBI’s permission to make it independent now. In fact, a request has also been sent to make another feature-bill payment also interoperable,”...........
Now, wristband that allows you to make payments
...........The bank's Barclaycard division plans to roll out its 'bPay' band, at sponsored events this year, ahead of a wider launch in 2015. The device uses the contactless payment technology in Barclays' credit and debit cards, which lets users make payments by scanning them against terminals, 'The Telegraph' reported. A user can add money to their 'bPay' band using their Visa or MasterCard credit or debit card. The money can then be spent on small purchases up to a single transaction value of 20 pounds by swiping the bands over a terminal.............
Man withdraws Rs 10k, bank sends SMS for Rs 25k debit
A journalist from Nandurbar in northern Maharashtra has been making rounds of a police station in Borivli (East) for a month after he found that Rs 25,000 had been debited from his bank account when he had only withdrawn Rs 10,000. He has submitted evidence to the police, but they have been dragging their feet on the matter..............
Read - TOI
Read - TOI
Banks seek tax breaks on deposit income
.......One suggestion from the banks is that interest income from bank deposits should be subject to indexation benefit. In other words, tax would be paid only on the real returns above the rate of inflation. Speaking to TOI, a senior banker said that going forward mobilizing deposits to fund growth could be a challenge. Banks are facing competition from fixed maturity plans of mutual funds, government small saving schemes and taxfree bonds of financial institutions. “For tax payers, it does not make sense to maintain fixed deposits which attract tax........
Use MFs To Save For Post-Retirement Life
.........According to financial planners, through judiciously choosing the right mutual fund schemes after identifying investment requirements, you can save enough to meet post-retirement financial needs even if you are faced with rising medical costs, increasing life expectancy and high inflation. Your savings should be enough to maintain the lifestyle that you are enjoying now. However, retirement planning is like running a marathon in which patience and discipline are the two most important aspects of winning............
Raised cash reserve ratio may hit co-ops’ profitability
.............Non-interest bearing CRR to be maintained by even district cooperative banks has now been raised 100 bps to 4.00 per cent on par with State Cooperative Banks with effect from July 12. RBI has sought to balance this with a cut in the SLR from 25 per cent to 22.50 from the fortnight beginning July 12. Sources in the cooperative sector said district-level banks would find their profitability eroded in the bargain..................
Sidbi repositioning itself to fulfil financial needs of MSMEs
.....................“Risk capital is a requirement that is not catered to by commercial banks. We at Sidbi would like to play a role that is both complementary and supplementary to commercial banks. We want to fill the void and fulfil the financial needs of the MSMEs.”
A primer on classification of banks in India
Apart from offering licences on tap, the regulator will also offer differentiated licence for niche activities. As a result, payment banks, local area banks in the country will come into existence with universal banks that are present now............
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