.........Jewellers are planning to approach the government for an amendment. So will there be a review? “The capital market regulator’s view points are different in terms of risk and mitigation. If the government is looking at reviewing the details in the Act, then may be the product can come back with checks and balances. It could be worked out in a way where companies make a declaration to the government to make sure that the information about the deposits is made available,”..............
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, July 18, 2014
Skimmer walks away with Rs 2.6L from Andheri ATM
In what could be termed as the perfect crime, a man covering his face with a handkerchief and wearing a helmet entered an ATM booth in Andheri (West) and, with the help of a skimmer device, which was already fitted, managed to get card details of 11 customers, withdrawing Rs 2.60 lakh. The accused had also put a sticky CCTV camera to procure the PIN of the cards. The footage of CCTV in the ATM booth and one on the opposite side showed the accused had come on a bike but his licence plate number is not clearly visible in the footage..........
First Data launches its mobile payment solution
..........“Merchants today are looking for a simple and reliable solution from a trusted partner to enable them to grow their business with customers. We are confident that our mPOS solution provides a cost-effective solution for converting on-the-go cash payments to electronic and for small merchants to start accepting cards. With this, First Data will provide all services to merchants through a single window rather than them having to interact with multiple providers.”..............
KC Land & Finance eyeing differentiated bank licence
............ "We are keen to operate on a regional level with a special focus on farmers, NRIs and SMEs. We are from a rural background and have a strong foothold in the rural market. There are certain areas in Punjab where bank branches or business correspondent model is yet to be operational. We will target these areas and bring more people under the banking ambit which can help spur the regional economy."........
RBI sets stiff terms for niche bank licences
The Reserve Bank of India (RBI) on Thursday paved the way for niche banking by issuing draft guidelines for setting up payment banks and small banks. While payment banks will offer remittance services, small banks will offer low-ticket loans and basic banking services within a limited area of operation. After initial screening to ensure eligibility, the central bank will set up an external committee to vet applications, which will be invited after the final norms are issued. Successful applicants will have to start operations within a year of the date of approval............
Small, payment banks a backdoor entry for companies into banking
.........As per the draft guidelines, existing non- bank finance companies, non- bank prepaid instrument issuers, corporate business correspondents, mobile telephone companies, super- market chains, companies, real sector co- operatives, and public sector entities were deemed eligible to apply for a payment bank. "... small local banks can play an important role in the supply of credit to micro and small enterprises, agriculture and banking services in unbanked and under- banked regions in the country, the RBI has decided to allow new " small banks" in the private sector," the RBI said.............
RBI proposes Rs 100 crore minimum capital required for setting up small bank and payment bank
.........The RBI has placed the Draft Guidelines for Licensing of Payments Banks and Draft Guidelines for Licensing of Small Banks for views/comments on the draft guidelines from all interested parties and general public. Both, payments banks and small banks are niche or differentiated banks; with the common objective of furthering financial inclusion. While small banks will provide a whole suite of basic banking products, such as, deposits and supply of credit, but in a limited area of operation, payments banks will provide a limited range of products, such as, .........
The rupee's risky overvaluation
................. A third argument against rupee depreciation is that if the Reserve Bank of India (RBI) mops up incoming foreign exchange, the consequent increase in rupee liquidity would further complicate the tricky task of containing inflation. At the risk of sounding like a stuck record, this article argues that India is taking a risky and sub-optimal approach by allowing the rupee to be overvalued against the dollar........
RBI efforts bear fruit, CDR cases down
..........The amount of loans referred in Q1FY15 stood at R2,720 crore compared to R39,521 crore in the year-ago period. Bankers and CDR cell officials said this fall in referrals is a result of RBI guidelines on early detection of stressed assets where it had directed banks, in December last year, to classify loans on the basis of the number of days interest payments are due. Due to that...........
A prudent gamble?
...............After some apparent reluctance initially, the Reserve Bank of India (RBI) seems to have taken to the idea, extending the broad exemptions to funds raised and lent to low-cost housing projects. The details apart, the main benefit of the exemptions from the banks' point of view is that their cost of funds will decline in the absence of the prudential load, which can then be passed on to borrowers. But it would be naive to think that.........
Financing infrastructure
...........Such mismatch can be avoided if banks are able to access long-term funds at relatively low cost. The RBI’s latest move — which follows Finance Minister Arun Jaitley’s Budget announcement — facilitates both. Banks today are required to keep ₹4 out of every ₹100 mobilised as deposits with the RBI, on which they earn no interest. They also have to compulsorily invest another ₹22.5 in government securities, apart from earmarking 40 per cent of their credit to so-called priority sectors. These pre-emptions...........
Building on BRICS
...........Viewed from this perspective, the new institution's initiatives will only supplement IMF and World Bank, and there is enough unattended space for the new bank. There are limitations in the "already impaired" vision of the rich, and the poor cannot wait on the sidelines for their basic needs to be met.........
BRICS bank gets the thumbs up from IMF
The International Monetary Fund on Thursday welcomed the move to set up a new BRICS development bank, saying that it is ready to work with the Bank’s leadership. “I would like to congratulate you on hosting a successful meeting of the BRICS leaders in Fortaleza, Brazil, and especially on establishing the Contingent Reserve Arrangement,” IMF managing director Christine Lagarde said in a message conveyed to the Brazilian President, Dilma Rousseff.....
A development bank for developing nations
..............The getting together of the five leading developing nations is attractive as they had a combined share of around 20% of the global GDP in 2013 (IMF). However, all the nations are quite different in terms of politics, economic structures and governance. The concept of BRICS is more notional as these are countries which are geographically spread out with little competitive advantage in terms of distance or physical contiguity. Hence, this experiment will set a new financial trend.........
Banks to benefit more than HFCs through long-term bonds: Icra
...............The guidelines say banks can raise long term resources to finance their long term loans to affordable housing through minimum regulatory pre-emption like exemption in the mandatory government security holding and cash reserve ratio and priority sector lending, Icra said. The state-run banks, which have a better presence in the lower ticket loans segment, will benefit more as the definition of what constitutes as affordable housing has been enlarged, it said............
Loan waiver: A.P. urges RBI to extend repayment period
.............Mr. Ramakrishnudu told reporters here on Thursday that normally RBI would give one year’s moratorium and five-year period for repayment but it agreed for a three-year period this time, including moratorium. “We are asking that to be extended to seven to 10 years”, he added. Besides urging RBI to fix the upper limit at Rs.1.5 lakh, the State government wants gold loans up to Rs. 50,000 to be rescheduled..........
Bad loans hit cooperative banking sector in state
..............With 4,839 branches and 1,576 ATMs, cooperative banks have made their presence felt in every nook and corner of the state. In rural areas, cooperative banks are the only banks available to a large section of population. The Reserve Bank of India (RBI) and commissioner of cooperatives have joint control over banks. RBI can suspend the business of banks and appoint administrators by dismissing the board of directors. According to Dhanajay Dhoipode, joint registrar of cooperative societies, 10 banks have administrators as the RBI had dismissed their board of directors to save the banks and their depositors as bad loans piled up.........
COMING SOON TO DALAL STREET - A HUMDINGER . 20,000-Crore ` Share Sale by SBI
...India's largest bank is in discussions with the finance ministry over its financial requirements. The government is expected to support the plan as it's open to lowering its stake in state-run banks to 51%, besides which it doesn't have anywhere near the money needed to infuse the capital they require...............
Ethiopia seeks out Indian banks to boost investment
.........."Previously the Ethiopian government tried to support (investment funds) by availing investment finance with 70:30 ratio - 70 percent loan and 30 percent equity," Ethiopia's Minister for Industry, Ahmed Abetew, told IANS. "But nowadays, the demand for loan is higher than available loanable funds," he said. "That is why the presence of SBI presence is very crucial here in Ethiopia for availing investment funds for Indian companies as well as other companies."..........
SBI ties up with RML for cheaper agri info for customers
.............The information, to be delivered in SMS form in nine languages, will include updates on weather, input prices, crop diseases, government schemes/initiatives and market prices of produce, it said in a release. "As per the new understanding, the service would be made even more affordable to SBI's agri customers," it said.........
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