Kids learn economics at RBI stall

Delhi: Little Ragini is too young to learn about currencies of different countries and meaning of words like savings and current account. But what aroused her interest in banking and commerce are the comic books describing all such economic terms in the language of kids. The stall of the Reserve Bank of India (RBI) at the ongoing India International Trade Fair (IITF) is disseminating awareness about finance and economics among the visitors in the language they understand. "We have come up with these comics book series and cartoon books to make kids learn about the banking systems and to prepare their minds for a vibrant future economy, which will depend on their shoulders," said a senior RBI official at the stall. The RBI's objective for participating in the fair is to establish direct contact with the common man and learn from their queries and comments. "This stall is very informative for all of us, especially the middle class, as we get to know a lot about our financial system," said Rajesh Sachdeva, Ragini's father. A quiz on financial literacy is also being organised, besides the screening of films on security features of currency notes and banking schemes.

HT

Banks Oppose Move to Prune Top Deck

PSU banks fear loss of supervisory control & grip on business

Public sector banks have opposed the government’s proposal to trim the size of their top management which they fear would force them to sacrifice the quality of supervisory control amid concerns over rising bad loans and lose their grip on ground-level business. Bank chiefs have told government officials that the size of business should not merely be the sole criterion for deciding the number of general managers and their deputies as the banking industry is passing through a challenging phase before the imminent Basel III regime from January 2013. “We have urged the ministry to keep in mind that banks do a diverse business today and there are constant changes in regulatory environment, especially after the global financial turmoil in 2008,” a bank chairman told ET requesting anonymity. Earlier in the month, the finance ministry has proposed to reduce the number of senior executives in public sector banks apparently to help them tide over the crisis at their top deck created due to mass retirement. After factoring in inflation, it said government banks should not have more than 10 general managers for business up to . 1.5 lakh crore and proposed a 1:3:9 ratio of GM, DGM and AGMs. At present, banks can have a maximum of 20 GMs for . 1 lakh-crore business. The HR regulation was last revised in 2007. “A change in the guidelines is overdue. The ministry wanted our feedback on the proposals they made. So, we have written to them,” another senior bank executive said. Another official at a small-sized government bank said that they have urged the government to implement the proposal in two or three phases. According to the proposal, Punjab National Bank can have a maximum of 37 GMs till March 2013, while Bank of Baroda, Bank of India and Canara Bank can have 35, 34 and 33, respectively. Likewise, the ministry has pegged it at 20 for Central Bank of India and 20-23 for Union Bank of India. It has put a ceiling of 10 GMs for smaller players like Andhra Bank, Bank of Maharashtra, Dena Bank, Punjab & Sind Bank, United Bank of India and Vijaya Bank.

ET

Pain in near term, relief by year-end?

The rupee, which has lost 18 per cent against the dollar in the last three months, could be headed for fresh lows, at least in the near term (couple of weeks), said dealers and economists. On Monday, the rupee crossed the 52-mark against the dollar, as nervous foreign exchange traders squared-off their positions, on fading hopes that the Reserve Bank of India (RBI) would step in to control the fall. The rupee fell by 82 paise to close at 52.15, an all-time closing low. Though R Gopalan, secretary of economic affairs, on Monday said the central bank’s ability to intervene in the foreign exchange market was “limited”, most experts are hoping RBI would step in to arrest the fall sooner rather than later. Business Standard conducted a poll of 10 dealers and economists on their rupee guidance for the near term and for the year-end. After Monday's fall, most of them were reworking their forecasts for the rupee-dollar exchange rate. “We are in the process of revising the forecast and, most likely, it would be revised downwards,” said an economist from a foreign bank, on the condition of anonymity. “It is difficult to give a strong forecast at this point. The rupee may depreciate to 52.50-53 levels in the near term, depending on the developments in the euro zone,” said Priyanka Kishore, foreign exchange strategist, Standard Chartered Bank. What is encouraging is that forecasts for both December-end and March-end are positive. For instance, according to Standard Chartered forecasts, the rupee would stand at 50/dollar by December and 48.8/dollar by March-end. The predictions of Crisil were the most bullish — Rs 50/dollar by December-end and 46/dollar by March-end. However, many are hinging their predictions on RBI’s intervention. Vivek Rajpal, India rates strategist, Nomura, said the rupee would recover to some extent by the end of March, assuming RBI would be active in managing the exchange rate. “Rupee is an equity currency, and a change in RBI's stance from an anti-inflationary one to a pro-growth one would also be helpful in holding the rupee-dollar exchange rate at current levels,” he said. Traders had expected RBI to arrest the rupee's fall. But recent comments from a central bank’s senior official that the bank would not change its stance has hurt market sentiments. RBI Deputy Governor Subir Gokarn had said the apex bank would not set an exchange rate, and that the objective would only be to smoothen excess volatility. Data shows RBI had sold $845 million in September, when the currency had witnessed sharp volatility and depreciated 6.25 per cent. 

BS

RBI allows banks, NBFCs to set up infra debt funds

The Reserve Bank of India (RBI) on Monday issued guidelines to allow banks and non-banking financial companies (NBFCs) to sponsor infrastructure debt funds (IDFs), to support long-term finance in infrastructure. The same are based on the parameters RBI had issued in September. IDFs may be set up either as mutual funds or NBFCs.  According to the guidelines, NBFCs trying to set up IDFs should have been operational for at least five years, should have minimum net owned funds of Rs 300 crore and a capital adequacy ratio of 15 per cent. Besides, its net non-performing assets should be less than three per cent of net advances. It should also have earned profits for the last three years, RBI said in a release. Investors would be primarily domestic and off-shore institutional investors, especially insurance and pension funds with long-term resources. IDFs set up as MFs would be regulated by the Securities and Exchange Board of India, while those set up as NBFCs would be regulated by RBI. “Sponsor infrastructure financing companies would be allowed to contribute up to 49 per cent to the equity of the IDF-NBFC, with minimum equity holding of 30 per cent of the equity of the IDF-NBFC,” RBI said. Banks acting as sponsors would be subject to their prudential limits on investments in financial services companies and limits on capital market exposure, RBI said. "Investment in a bank’s equity in subsidiary companies, financial services firms, financial institutions, stock and other exchanges, put together, should not exceed 20 per cent of the bank’s paid-up share capital and reserves and this limit would also cover the bank’s investments in IDFs as sponsors. Banks’ exposures to IDFs (MFs and NBFCs) by way of contribution to paid-up capital as sponsors would form part of their capital market exposure and should be within the regulatory limits specified,” it said. Finance Minister Pranab Mukherjee, in the Budget speech for 2011-12, had announced the setting up of IDFs to source long-term debt, both from foreign, as well as domestic investors. Taxation rules were also eased to make IDFs more attractive to off-shore funds.

BS

RBI’s action of pushing up interest rates on savings accounts is fraught with peril

The Reserve Bank of India (RBI) has made another dangerous move by freeing up the interest rates on savings accounts deposits. In an earlier argument against this, I had said that RBI should have, in fact, made this ‘zero’. Now, RBI has ensured a cut-throat race amongst banks, to fight for savings accounts deposits. This is great for the individual who keeps his money in a savings bank account. Unlike in the past, we must now ‘shop’ with banks for higher and higher rates. Yes, RBI has said that for identical amounts, banks cannot differentiate in the interest rate offered. That does not mean that we cannot get freebies from a bank. We should club our accounts together and use it as a bargaining tool. In case banks refuse higher interest rates, we can always bargain for some other freebie. Now, we will also have to be more combative and watchful with banks. They will try to make up for the higher interest rate by imposing a charge for virtually everything—from the number of cheque leaves to imposing a charge on a visit to the branch for anything. Perhaps, they will also start delaying clearance of credits to enjoy a ‘free float’ on our money. While it looks good for the depositor, what about the banks? Not very good, I think. They will perhaps put up a brave front and say that they will hike their lending rates also. But wait. Why would any blue-chip corporate borrow at usurious rates? Maybe they can borrow elsewhere. This would force banks to extend credit at high rates to riskier customers. Generally, when interest rates are high (both ways) the net spread a bank makes is higher than when interest rates are in single digits. So, initially, it would seem as though banks would make higher profits. However, my call is that banks will be in a rat race to mop up deposits and end up paying high costs. Lending will deteriorate in quality as banks will seek to deploy the high-cost funds and earn a spread on it. What is the implication for investors? I would keep away from bank stocks for some more time, until RBI gets its act together on inflation. After all, after 13 continuous upward nudges of interest, inflation still remains high. A large portion of savings bank and current account deposits (CASA, as it is popularly known) gives some banks an edge. For instance, State Bank of India (SBI) and HDFC Bank have CASA deposits that constitute nearly 48% of their total deposits. Now, the interest costs for these two banks will rise much higher than those for banks that have a lower proportion of CASA. What will be interesting is to see what happens if, and when, liquidity in the domestic market eases. Today, tight liquidity has pushed up short-term borrowing and lending rates so high, that there is not much gap between interest rates on a 30-day loan and a 10-year loan! Liquid funds give returns almost in line with yields on 10-year government securities! Once liquidity eases, will the returns on liquid funds crash? Logically, they should. Then, we will have the funny situation of savings accounts returns beating liquid fund returns! And, with banks being forced to pay interest on ‘daily’ balances, savings accounts should replace liquid funds, for the individual investor. We need not go to liquid funds at all. It saves us the bother of filling forms for purchase and redemptions. Another implication is that interest rates are going to play an important role in all financial advice. We are perhaps entering a phase where fixed returns are going to be more tempting than equity returns, as companies struggle to grow in the face of weak capital markets, flagging demand and high resource costs, combined with runaway wage costs. RBI has set in motion a run-up in interest rates that will benefit the saver in the short term. I only hope that the lending rates do not go so high that they kill borrowing, and borrowers.

Moneylife

RBI to issue floating-rate bonds after two years

Reserve Bank of India is poised to issue floating-rate bonds (FRBs) — for the first time in two years. Come this Friday, and the country’s central bank will reissue Rs 3,000 crore worth of FRBs that are set to mature in 2020. Many believe that the yields are likely to ease, as the demand for FRBs is high in the current rising-rate environment. “These instruments will help investors manage their interest-rate risks more effectively,” notes N S Venkatesh, head of treasury at IDBI Bank. “The FRB issuance is a welcome move, as yields are currently at high levels.” The rate of interest on FRBs is payable half-yearly. RBI will announce it before the commencement of the relative semi-annual coupon period. Yields are also expected to soften, as RBI will purchase bonds via open-market operation (OMO) on Thursday. The details of the securities to be purchased are yet to be announced. Says a bond dealer with a public sector bank: “The success of OMOs will depend on the security that RBI chooses to buy.” Today, yields on the ten-year benchmark bond touched an intra-day high of 8.86 per cent, before closing at previous day’s level of 8.83 per cent. Besides FRBs, RBI is also auctioning Rs 4,000 crore of government security that will mature in 2040. The coupon rate is 8.30 per cent. Then there is another Rs 6,000 crore of government security -- maturing in 2024 with a coupon rate of 9.15 per cent. A treasury official of a public sector bank sees the possibility of devolvement in the auction for the paper maturing in 2040. Reason: “There could be bidding for higher yields that RBI may not accept.” For the second half of current financial year, the government will borrow Rs 2.2 lakh-crore against the earlier-planned Rs 1.67 lakh-crore. A higher-than-planned borrowing has led to yields trading at three-year high levels. 

BS

Govt may ease foreign entry in MF schemes

... The Reserve Bank of India (RBI), Sebi and the finance ministry are currently reviewing the norms to facilitate entry of so-called qualified foreign investors, or QFIs.....

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Montek says fiscal deficit will exceed target of 4.6%

I will say, if there is some slippage ( in meeting fiscal deficit target), we should not mind.”................

Details

Re to touch 54-56/$; chance of self-correction low: Experts

... “The chances of a self-correction in the currency are low, and would depend on foreign direct investment and capital inflows,”....

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Tight liquidity limits RBI role in forex market

NEW DELHI: Market talk suggests that the Reserve Bank of India stepped into the foreign currency market on Monday to check a steep fall of the Indian currency, but it could not prevent it from closing at an all-time low. Executives manning some of the largest treasury operations in India said RBI has been intervening in the currency markets for the last few weeks, something it had refrained from doing for nearly a year when the rupee hovered in the 44-45 range to the greenback. Just like during the height of the global financial crisis in September-October 2008, RBI governor D Subbarao has limited ability to dictate how the rupee moves this time too. Whenever RBI asks banks to step in on its behalf, the public sector players supply more dollars into the market, hoping that they would stem a decline. During this exercise, they also buy rupees from the market and end up reducing the supply of the Indian currency. So, with less cash available in the system, there is every possibility that interest rates, even if it is in the short-run, rise. Given that liquidity is tight with banks borrowing over Rs 1.27 lakh crore through RBI's overnight lending window, the central bank would not like to drain more cash from the system. While RBI remained silent on Monday, the government acknowledged that the authorities had limited ability to intervene and stem the rupee's slide. "The rupee cannot slide beyond a point. Ability to intervene (in the forex market) is also limited," economic affairs secretary R Gopalan told reporters.

TOI

Re plunges, but RBI is helpless

The rupee on Monday plunged to 52 against the dollar, and Reserve Bank of India (RBI) virtually expressed its inability to arrest the slide. The central bank is in a bind as selling dollars in the market to stabilise the value of the rupee will tighten the liquidity situation and may also force the RBI to resort to further open market operations. The fall of the rupee could not have come at a worse time, with the inflation nudging 10 per cent. Analysts say the sharp depreciation will make oil imports costlier. The fall was due to rising demand for the US currency, especially from oil importers and lower participation from foreign institutional investors in the equity market. The parity with the dollar is an all-time low for the rupee after March 2009, in the wake of the 2008 financial crisis. The erosion of the rupee may fuel inflation further making food and fuels costlier. The rupee has fallen nearly 15 per cent since July this year. Compared to other Asian currencies, the fall of the rupee has been more pronounced since late July, partly due to the country’s widening trade deficit. Unlike most Asian countries, India has long run a trade deficit that reached a four-year peak of $19.6 billion in October. The currency of every other emerging economy is falling, except the Chinese Renminbi. The currencies of Russia, Brazil and Indonesia too have eroded, but not to the extent of rupee.

DH 

Rupee in uncharted territory

...What is intriguing is the Reserve Bank of India's rather passive stance in the face of such large declines in the home currency. It is possible that, in its assessment, the size of forex reserves is not large enough to defend the rupee in what promises to be a period of prolonged uncertainty and financial market volatility. Or else it wants to ...

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State-run banks set up more ATMs

State-run lenders, which account for about 75% of the Rs.64 trillion Indian banking industry, are seeking to protect their share by following their technology-savvy private sector rivals and offering options beyond branch banking to customers. The top two state-run banks —State Bank of India (SBI) and Punjab National Bank (PNB)— have increased the number of ATMs aggressively in recent years, adding more of the devices than branches. IDBI Bank Ltd too has done so, although for a different reason—it has a relatively small branch network. Going by the latest figures available, the State Bank group had 24,651 ATMs as against total branches of 17,913 in March and PNB had 5,050 ATMs against 4,855 branches. IDBI Bank had 1,370 ATMs and 806 branches. Larger, new-generation private sector banks such as ICICI Bank Ltd and HDFC Bank Ltd already have an extensive ATM network. “Public sector banks have realized that alternative channels are more efficient (than the branch model),” said P. Pradeep Kumar, deputy managing director, information technology (IT), at SBI. “Lack of availability of core banking (at ATMs) was a hurdle earlier but this has been resolved now.” Out of the total ATMs that the State Bank group has, 42.8% or 10,547 are at off-site locations or away from the branch, the data showed. Traditionally, private and foreign lenders have been using alternative banking channels such as ATMs to increase reach and bring down operational costs. State-run banks have begun following this trend only recently. Banks do not need Reserve Bank of India approval to set up off-site ATMs. Customers are allowed to use ATMs of any banks up to five times a month for free. This has acted a catalyst for rapid ATM expansion, bankers said. In March, Axis Bank Ltd had 6,270 ATMs, nearly five times the number of its branches while ICICI Bank had 6,104 ATMs compared with its branch network of 2,523. Overall, commercial banks in India have 74,505 ATMs and 74,130 branches. Of the total ATMs, nearly 45% operated outside bank branches. Banks are keen to rely on alternative banking channels mainly due to the cost effectiveness of running such units. According to senior bankers, banks typically spend around Rs.15,000 to Rs.20,000 per month to maintain an ATM. A normal branch with three officers could cost anywhere between Rs.60,000 and Rs.1 lakh or even more, depending on the location. “An ATM costs at least Rs.4 lakh but you have to shell out much more if you want to set up a branch,” a senior SBI official said. He did not want to be named as he is not authorized to talk to the media. Banks generally outsource the creation and maintenance of ATM networks. Customer demand has led to the widening of the ATM network, said K.R. Kamath, chairman and managing director of PNB. Most state-run banks want to reduce their dependence on high-cost branch models and increase their reach. “Many public sector banks such as Bank of Baroda are working on improving their channel banking part as this provides speedier transactions and reach at lower cost,” said Abhishek Kothari, analyst with Mumbai-based brokerage, Way2Wealth Brokers Pvt. Ltd. “Going ahead, this channel is going to be critical for banks as more and more customers even from the rural areas are increasingly finding it convenient to access basic banking services.”

Mint

Lessons from the commercial micro-finance model in India

.... The Reserve Bank of India is one of India’s greatest institutions and it has done a fantastic job protecting the Indian financial sector through the recent global financial crisis. Let us be clear on that! However, micro-finance is not regular finance and it has many peculiarities which require appropriate strategies of regulation/supervision including local presence. The sooner the RBI recognizes these facts the better......

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Credit worthy

Next time your bank informs you that the limit on your credit card has been slashed, or that your card will be cancelled because of repeated defaults, don’t be too surprised. As a part of a cleaning-up exercise, banks have become cautious about issuing new credit cards and are undertaking more rigorous credit checks on the existing card holders............

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In public interest

''The public has a right to know the details.''

The Central Information Commission’s directive to the Reserve Bank of India to disclose the names and other details of the top 100 businessmen and industrialists who have defaulted on repayment of loans from banks gives yet another boost to the right to information. Though the right is now considered as part of the most important citizenship entitlements, it is not without a fight that it finds acceptance in new areas. The CIC has, through a number of orders in the past, expanded the scope of the right and taken it to areas which were considered beyond the limits for citizens. In the process, the definition of public interest has also undergone a change and the territory of confidentiality has steadily shrunk. The RBI had refused to furnish information relating to default in loans taken from public sector banks and the names of defaulters on the argument that such information was fiduciary in nature and disclosure would amount to a breach of trust between the banks and customers. But the CIC’s view that public interest overrides fiduciary obligations strengthens the spirit of the RTI. It is when tested against actual cases that concepts like public interest or a fiduciary relationship get clearly defined and acquire new meaning. It is also possible to look at the issue from a different angle. Though the relationship is fiduciary in nature, is a client entitled to protection under it after he has defaulted on loan obligation? If tax defaulters’ names can be published loan defaulters have no reason to claim special privilege and banks have no reason to hold them back. The need to maintain confidentiality is based more on commercial than moral considerations. Both considerations should subserve greater public interest, as the CIC has noted. It is known that large amounts of public funds are caught in delays and loan defaults and big business has a major share in them. The public has a legitimate right to know the details. This can even act as a deterrent against default. The CIC’s ruling has come in the wake of another ruling which asked the RBI to make public the audit reports of co-operative banks. The RBI had rejected this demand also. It is surprising that the apex bank considers the financial position of even public entities confidential. The CIC has done well to expand the scope of the RTI in both cases, but efforts are on to undermine it.

DH

RBI to make corporate loan pricing transparent

Reserve Bank of India (RBI) is working towards bringing in transparency in pricing of corporate loans that banks extend to companies. The central bank is of the view that there should be a methodology for changing the premiums that banks use effectively for hiking lending rates. This follows banks' move to increase tenor premiums and risk premiums to get higher rates for their lending without changing the base rate. A senior RBI official told Financial Chronicle that this method of arbitrarily changing the lending rates when the rating remains the same and other variables like the financial position and other fundamentals of the company remain the same is unfair to the corporate client. "In our inspection of banks, we have discovered that two entities who come with the same rating get two different rates. There should be a uniform rationale in pricing these loans.” Senior bankers who did not want to be quoted said the loan is priced depending on risk perception of the client. "They may have the same rating, but in our perception, we could take a view that their revenues could be impacted because projects are going on stream, etc. Company pays the rating agency that rates it and so may have a vested interest. For a bank, it is a business decision,” said a senior banker. Subir Gokarn Deputy Governor of RBI, said on the sidelines of a banking conference last week, “Though the base rates of banks have not changed, banks have been increasing the premiums over the base rate. So lending rates are rising.” RBI is of the view that banks should bring down their net interest margins (NIMs) but improve profitability by improving operational efficiencies. According to an RBI report, which was released last week, on the trend and progress of banking in India, “Maintaining profitability is a challenge, especially in a highly competitive and high interest environment. However, a detailed analysis showed that NIM that is already high in India compared with some of the emerging economies increased further. Thus, there is a need to reduce NIM increase other income and reduce operating expenses in the interest of efficiency and profitability.” RBI has already set up a working committee to look into the pricing issues for retail customers specially on floating rate home loans and prepayment clauses for retail loan like auto or home loan. But an RBI official confirmed that even large ticket loans extended to companies will be extensively evaluated for fair pricing. From July 2010, RBI brought in the base rate concept fixing a floor under which no loan can be priced. But now, banks try to keep the base rate low to meet the short term funding requirements of companies, which otherwise could have migrated to the debt markets in the form of commercial papers. It was to bring in greater transparency that RBI did away with the BPLR (benchmark prime lending rate) for customers as banks kept high BPLR and continued to lend much below that for large corporate clients while the smaller clients and retail customers were charged at higher rates of interest. "In a deregulated environment, transparency in pricing assumes greater significance in ensuring that the risk is priced adequately and borrowers are charged interest in a fair manner," the central bank said in its second quarter policy statement released on October 24. As per Capitaline Neo data, the current 12 constituents of Bank Nifty index had collective interest income from advances to the tune of Rs 1,34,145 crore in the first two quarters of FY12, up 37 per cent from the corresponding aggregate of Rs 97,388 crore in FY11. The Bank Nifty constituents are Axis Bank, Bank of Baroda, Bank of India, Canara Bank, HDFC Bank, ICICI Bank, IDBI Bank, Kotak Mahindra Bank, Oriental Bank, PNB, SBI and Union Bank.

FC

Banks in JK flout RBI norms

Despite consistently increasing their business in Kashmir, most of the banks operating in the Valley don’t adhere to RBI instructions on priority sector lending. Interestingly, some top-notch banks including HDFC Bank, ICICI Bank, Yes Bank, Axis Bank and IndusInd Bank also come in the list of banks that are flouting the Central Bank norms laid down for lending to the priority sector including agriculture and loans to weaker sections. Interestingly, the HDFC Bank is planning massive expansion in the state, even as targeting to increase its branch strength to 50 by March. According to the latest RBI norms, all domestic banks have to disburse 40 per cent of the net bank credit to priority sector, out of which18 per cent should represent agricultural advances. The net bank credit is the figure reported in the fortnightly return the banks submit to the RBI. The RBI norms further provide that the banks should cater to the weaker sections of the society, particularly small and marginal farmers with five acre land holding and landless labourers, tenant farmers and share croppers.  For artisans, village and cottage industries, the banks, according to RBI guidelines, should extend individual credit limit up to Rs 50,000. Around 10 per cent of the Net Bank Credit has to go to weaker sections of the society and the Target Credit to women beneficiaries should be five per cent. The loans applications of the priority sector, RBI rules say, can be rejected by the branch manager, provided the rejection is later ''verified by the Divisional Manager or regional manager''. Figures reveal that most of the banks fail the guidelines. “The ICICI Bank only provides basic banking facility like deposits and ATM services while credit cards, loans and mandatory priority sector credit exposure are not being taken seriously,” sources said. Figures reveal that the Yes Bank, with deposits of around Rs 40 crore in the state, has not a single case of lending in J&K in any sector. “Both Axis and IndusInd banks have no lending facility at all and have restricted to customer deposits and banking services, thus making only profit with no credit exposure to contribute to the state’s economy,” sources said. However, a senior HDFC Bank executive said the HDFC Bank was aggressively advancing in the state. “We are here for the last five years only. During this brief period we have made around Rs 280 crore advances in J&K with about Rs. 100 crore to priority sector alone.” He said the Bank in the state has appointed entire staff as well as the top management from J&K alone. About maintaining 40 per cent credit target to priority sector, he said: “Although we may not be covering the 40 per cent target, but still our priority sector lending in J&K won’t be less than 35 per cent,” he said, adding that the RBI guideline for priority sector is not state or region-specific. Despite repeated attempts, officials of other banks could not be contacted for their comment.

Greater Kashmir

Allahabad Bank celebrates 147 years

 

'State cooperative banks up to snuff'

... He added that institutions like NABARD are not supporting the cooperative sector because of the policy changes of the RBI. "The RBI policies have affected the service attitude of the NABARD, which was compelled to enter the financial market when it didn't get sufficient fund from other operations. The move to commercialise NABARD adversely affected the cooperative sector," and claimed that all these moves are the result of globalization............

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