Reports indicate that the negotiating meeting for Xth BPS has been now called on 17th September, 2014 at 2.00 PM. Who has bent? IBA officials are likely to meet DFS, Ministry of Finance on 8th September 2014 for finalising their strategy. Hope it will not turn into another Lunch Party. Report to follow.
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, September 5, 2014
High Flyer
After breaking into the all male club that was the Top 10 of the India Inc's Most Powerful CEOs listing in 2010, Chanda Kochhar has remained there for the past four years as India Inc's No.1 woman CEO. In a list dominated by promoters, she is the country's most powerful professional CEO. And as CEO of ICICI Bank, she also happens to be the country's most powerful banker. Ms Kochhar spoke with CD minutes before taking off on a flight to Delhi. Edited excerpts:..........
Read - ET
Read - ET
'We are not growing much,so dont need more capital
Arundhati Bhattacharya, who completes a year as State Bank of India chairman this month-end, says she sees much more optimism now than six months ago. In an interview with Manojit Saha & Abhijit Lele, she says she expects stalled projects coming back on track in two quarters. Edited excerpts........
RBI norms may hit co-op depositors
..In its latest circular, the RBI has said that under the new guidelines, the acquiring bank should not incur any loss arising out of the said merger or transfer of assets and liabilities of cooperative banks. “Big depositors holding deposits in excess of Rs 1 lakh each will be required to sacrifice in proportion to the deposit erosion of the target bank,” the circular said........
Read - TOIShriram seeks clarity on niche bank operation
.............“We have written to the Reserve Bank of India (RBI) if one promoter can float multiple banks with different managements and different boards,” said G S Sundararajan, group director. “In case it is allowed, we would be keen to look at wholesale consumer banks and small banks as well.” In a major shift in its traditional stance on bank licensing, RBI has said it would allow niche banking activities and invite applications for differentiated licences, along with those for a universal lender.......
RBI directive to banks on KYC norms for medium and low risk customers
The Reserve Bank of India on Thursday asked banks and all India financial institutions to dispense with the requirement of ‘positive confirmation’ at two/three years in respect of medium and low risk customers respectively. Positive confirmation pertains to obtaining Know-Your-Customer related updates through e-mail/ letter/ telephonic conversation/ forms/ interviews/ visits, etc..........
RBI begins review of Jan Dhan rollout
..............."Besides doing checks, the effort is to find out challenges and hitches being faced by bankers. This is not a fault finding exercise. The aim is to take feedback and attempt to provide timely support, as the targets are stiff," the official said. At the apex, a panel comprising the finance minister, RBI governor and finance ministry heads will take stock of the progress.........
Withdrawal Cap in Jan Dhan Yojana may Deter Depositors, Bankers Say
.......“Once you tell people that they may not be able to withdraw more than Rs 10,000 per month, some fear their money will be locked in case of emergency,” said an SBI branch manager, requesting anonymity. A finance ministry official, however, told ET that accounts opened under the scheme were governed by the Reserve Bank of India’s guidelines for ‘small accounts’. “We do not expect these small account holders to withdraw more than Rs.10,000 per month,” said the official, who did not wish to be identified.........
Jan Dhan cover: LIC says no to premium
..............While the insurance behemoth has agreed to extend life cover, it has conveyed to the Finance Ministry’s top brass that it is in no position to bear the premium cost, sources close to the development said. Even a premium as low as ₹100 for every life insurance contract with a sum assured of ₹30,000 would mean an outgo of at least ₹750 crore, a rough calculation shows............
Outlets everywhere, not many to bank on
..........The problem is set to grow following issuance of 75 million new RuPay cards in the next six months with the launch of the Jan Dhan Yojana. In addition to the problem of long queues at ATMs, there would be the problem of guiding new cardholders, especially in rural and semi-urban areas, on how to use those cards, some bankers told Business Standard. "Biometric cards, though costly in the beginning, are very simple to use. And they mitigate the risk of theft or fraud. RuPay cards will entail a lot of guiding from banking staff to new customers. That may result in hiring caretakers at ATMs who will help customers. Then there is the risk of pin-based cards being misused,".............
ICRA: Fresh NPAs on uptick for PSBs
...........However, ICRA highlighted that there was a significant drop in fresh referrals to the CDR (corporate debt restructuring) Cell for restructuring during Q1, FY2015. If the current trend were to continue, one may expect some containment of the standard restructured book. Overall, the Gross NPA percentage plus 30% of standard restructured advances remains large at 5.5-5.7% (around Rs. 3.5-3.7 lakh crore as of June 2014) and may continue to impact profitability over the short term. Moreover, ........
RBI curbs banking operations of Choundeshwari Sahakari Bank
The RBI has issued directions to The Choundeshwari Sahakari Bank Ltd of Kolhapur, Maharashtra that will require the bank to seek prior approval for its banking business. “In particular, depositors of the bank will be able to withdraw a sum not exceeding Rs 1,000/- (Rupees one thousand only) of the total balance held in every savings bank or current account or any other deposit account by whatever name called, subject to the conditions stipulated in the RBI Directions,” RBI said in a statement........
Debt and default
..........It remains to be seen if the other banks in the consortium, which has notable names like the State Bank of India, IDBI Bank and Punjab National Bank, will follow suit. Mr. Mallya has tried to shift the blame on to UBI for not following due process before declaring him a “wilful defaulter”, but there is no getting away from the basic fact that Kingfisher has not repaid its loans. It can only be hoped that the process of recovery of dues does not get bogged down in the legal system, given that Mr. Mallya has said he would go to court to contest UBI’s action. Banks are under pressure from the Reserve Bank of India to clean up their balance sheets and go after defaulters. Gross non-performing assets of the banking system at 4 per cent may not be alarming yet, but it is a cause for concern.....
Asking bank to stop cheque payment may land you in jail!
........" Once the cheque is issued by the drawer, a presumption under Section 139 must follow and, merely because the drawer issues a notice to the drawee or to the bank for stoppage of the payment, it will not preclude an action under Section 138 of NI Act by the drawee or the holder of the cheques in due course," the Court held..............
IDBI Bank launches e-lounge in Mumbai branch
.............At IDBI Bank’s e-lounge, banking services that the customers can, on a self-service basis, enjoy are facilities such as ATM, Automated Cash Deposit (with a receipt and instant credit of the amount), Automated Cheque Deposit (with an acknowledgment receipt), Automated Pass Book Printing, e-Transact terminal for various Card and Net Banking holders to view balance, make a funds transfer, pay bills and recharge.........
It’s irrational to oppose what’s better for everyone, Uber says
........"Culturally, we are a very solutions-oriented company. So we are, of course, going to look at all options. However, right now we are having conversations with the Reserve Bank of India (RBI), trying to understand what the rule means for us and how we can just focus on delivering a safe alternative to users," Ryan Graves, head of global operations at Uber, told TOI at the company's headquarters in San Francisco............
Credit Card: Cards up your sleeve
........If one does not get a letter regarding the closure of the credit card account, the bank may charge renewal fees, which will show as unpaid dues even after one has cancelled the card. This will keep getting carried over to the next month, attracting penalty. This will affect one’s credit score in the long run — all the records are shared with various credit information companies. Moreover, if one wants to close multiple credit cards, it is better to do it gradually. Analysts say.......
Radio Taxi industry in talks with RBI
Cashless mode of payments is going to play an important role in India’s radio taxi market and the industry is in discussions with the Reserve Bank of India (RBI) to come out with alternative payment models, a top official said. Siddhartha Pahwa, Chief Executive Officer, Meru Cabs said the industry had given a couple of proposals to the RBI on the alternatives, which includes solutions such as a prepaid wallet and exempting a certain amount of rupee transactions from the two factor authentication...........
Telcos Seek RBI Go-ahead for Arms as Payments Banks
.........The GSM industry body, Cellular Operators Association of India (COAI), has written to the central bank, saying that some of the clauses on promoter equity, foreign equity, rural branches and ring-fencing in the draft guidelines will make it complex and expensive for telecom operators to function as payments banks. It has also asked RBI to do away with the restriction on the maximum deposits per customer and align it with those applicable to any scheduled bank......
Read - TOI
Mobile banking may raise lenders' risks, say experts
.......Security experts say that even though the value in transactions through basic mobiles is not high there will be volume-based vulnerability. The caution comes at a time when the government is planning to extend banking service on basic telephones using the *99# command or USSD (Unstructured Supplementary Service Data)a communication protocol for GSM providers. “When compared to SMS, USSD is considered to be relatively more secure because no copies of messages are stored on customers' phones or at the SMSC. The big risk lies on the fact that data carried within the communication channel (between handset and USSD gateway) is not encrypted,“ .....
Read - TOI
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