The Reserve Bank of India will organise a financial outreach camp later this month at Assam’s Darrang district as part of its initiative to bring the people of remote areas under the ambit of the banking structure. The camp would be conducted on December 22 at Gharowa Sonapur Village in Darrang district, an official statement said. RBI Executive Director Deepak Mohanty will formally inaugurate the camp............
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.
Thursday, December 20, 2012
RBI to expedite new bank licence process: Chakrabarty
 |
| “Time we cannot say but the process will be expedited... I don’t think it should take much time,” |
SBBJ seeks virtual banking licence
..The customer will not walk into that branch at all. So, everything will be done either online or through mails,” said Shiva Kumar, managing director of SBBJ, an associate of the State Bank of India. Kumar is hopeful to get a virtual banking license but the banking regulator may be conservative in granting one. RBI had rejected such applications in the past citing norms that need modifications to allow virtual banking. There are other hurdles too. For instance, even though most transactions can be carried out online, cash deposits still need to be made at the bank branch. “In future, there will be Automated Teller Machines that will allow customers to deposit cash as well as withdraw. There will not be any need for a home branch then,”..........
Conciliation meeting
As already intimated, the Bank is contemplating closing down the public
counters in the Banking Hall at all centers from 1st January 2013.(from
2nd January 2013 wherever 1st is a holiday for New Year). In protest thereof, the AIRBEA and AIRBWF has decided to go on A DAY's STRIKE on 1st / 2nd January 2013. The Officers' Associations have decided to go on Mass Casual Leave on the same day. The
Association and Union at Chennai gave notice to the Bank for the Strike
and also submitted a copy thereof to the Regional Labour Commissioner. Today the Regional Labour Commissioner has issued notice to the
Unions not to go on strike and the Bank not to implement their decision
to close down the counters on 2nd January 2013. They have invited the
Bank and the Unions for a conciliation meeting to be held on 28th
December 2012.
- B. Chandraiah, Chennai (Via e-mail)
Grameen Bank holds awareness programme at Pangali
........Suchitra Bhattacharya from RBI also highlighted the policies and programmes of RBI and threw light on ICT enabled financial inclusion in village Pangali. Earlier R P Sharma, Senior Manager, Microfinance and Financial Inclusion apprised the gathering about the various lending schemes of the Bank for providing credit to agriculturists, business community, transporters etc. Romesh Kumar, AGM NABARD acquainted the gathering about the concept of FI, self help groups and Farmers Club and other programmes of NABARD to generate the income of rural people..........
My View on "Dr. Sandip chosen for "HR LEADERSHIP AWARD"
“A large part of the productivity and quality movement in Indian Industry has been achieved on the shoulders of outstanding HR professionals, which have gone unacknowledged.”(Business Manager, December, 2012).
Seen in this context, any honor conferred on those who ‘live’ HR management is worth celebration.
Best of luck in all your endeavors.
Warm regards
- M G Warrier, Thiruvananthapuram
PSU bank unions to go on strike today
..........Besides All India Bank Employees Association (AIBEA), Bank Employees Federation of India (BEFI), All India Bank Officers' Association (AIBOA) and National Union of Bank Employees (NUBE) are participating in the nation- wide strike. The unions claimed that about 7 lakh employees of various public sector banks would participate in the strike.The strike follows Lok Sabha clearing Banking Laws (Amendment) Bill after the government dropped controversial provisions relating to allowing banks to trade in futures.......
IT would like RBI to look at interest rates: Infy
IT industry would like the RBI to look at the interest rates though such a momentum is building up, Infosys Co-Chairman Kris Gopalakrishnan said today. "There is no conflict," he told reporters here when asked whether he sees any conflict in a scenario where reforms bills are being passed in Parliament on the one hand and the RBI is keeping interest rates unchanged.......
No support
.......It appears that the RBI has taken the decision to avoid surprising the markets, even positively. Past governors of the RBI have been known to deliver positive surprises that can shift the markets, and initiate pre-emptive or anticipatory moves to deal with negative developments on the horizon. It appears the current dispensation in the RBI underestimates the usefulness of such actions. It is far from certain whether that is the correct approach at a time when India should be worried about an “investment cliff” — the fact that investment has collapsed, that there are no orders in the pipeline, and that manufacturing has essentially stopped expanding. The full effects of this freeze have still not played themselves out, and counteractive action from the RBI to support the private sector in advance might have been indicated.........
The banking win-win
The year-end holiday spirit will certainly be missing this year at the Reserve Bank of India’s ( RBI’s) headquarters on Mint Road. For Finance Minister P Chidambaram has just taken away the RBI’s last reason to delay the final guidelines for new banking licences. In fact, the Banking Laws (Amendment) Bill, which the Lok Sabha passed on Tuesday and the Rajya Sabha is due to vote on Thursday, has given the central bank everything it asked for: greater regulatory oversight over banks, the ability to overrule boards and the power to inspect the books of associate companies of the promoter group — its preconditions for new licences. Though it’s debatable whether power to supersede bank boards can adequately safeguard against the problems created by banks promoted by those with interests in other industries, the finance ministry has at least shed its reluctance to bulldoze the RBI......
Read - BS
Issuing new licences will add to competition, grow banks and improve services
....Licensing of new banks has
always been a contentious issue. The RBI has issued only 12 new bank
licences since the beginning of reforms, even while the number of
commercial banks has declined sharply from around 301 to 169 over the
last decade. This has curtailed expansion of banking facilities, leaving
more than 40% of households without a single bank account even now.....
All eyes on RBI for final banking guidelines: Aditya Birla
.........In the first option, NBFC would convert itself in to a bank; this route was also open in the earlier guidelines as well. Second, just apply for bank and continue to keep an NBFC. I think both options remains open in the last set of guidelines that we saw...........
NBFCs open to both organic and inorganic route to set up banks
....If permitted by the RBI, the NBFCs are likely to consider banks at the holding company level and may not convert the NBFC into a bank, according to brokerages. “If they were to convert to an NBFC, they may need to contend with issues relating to concentration risk (for NBFCs doing specialised lending), the impact of statutory liquidity ratio and cash reserve ratio on their existing borrowings. Hence, from an investors’ perspective, we believe the upside (from a bank licence) may be through the SOTP (sum of the parts) route, assuming the holding company were to hold both the bank and an NBFC and is listed,”.......
We Need Larger Banks, not Necessarily More: Kidwai
....The
larger issue is whether our banks are growing fast enough to support
trillion dollars of investment in infrastructure. There’s no way our
banks can support it at their current level of growth. We need larger
banks, not necessarily more banks. To get larger banks, we need to allow
them to go out and get equity. Government-owned banks will have an
issue, as by virtue of their ownership, they have to get funds from the
fisc......
Much more to account for
Banking in India remains a service in acute short supply both in terms of the people it reaches and the amount of credit that passes through the system. Close to half the country’s population have no access to a bank. Indian households park less than half their savings in the financial system. And banks lend just over a half of the national income. India is thus doing a lot of its business without banks. This reflects in the stature of our banks on the world stage: not one, including the state-owned behemoth State Bank of India, figures in international banking’s top league........
RBI’s decision to keep policy rates unchanged evokes criticism
.........“It is ridiculous to keep the policy Repo rate under the liquidity adjustment facility (LAF) unchanged at 8 per cent even after the Headline WPI (whole price index) came down to 7.2 per cent in November. The same RBI, during the last revision in October, cited higher inflation as the reason for not lowering the Repo rate,”..........
Pakistan pushing fake currency into India
....."The security features in the high value currency notes are being constantly upgraded," he said. "The RBI (Reserve Bank of India) has also strengthened the mechanism for detection of counterfeit notes by the banks."
The missing growth push
.....The RBI’s policy statement itself states that time has now come to tilt a little towards growth in its balancing act between growth and inflation. It observed: “In view of inflation pressures ebbing, monetary policy has to increasingly shift focus and respond to the threats to growth from this point onwards.” However, when it came to taking action on this observation, the central bank sought to play it safe and keep its options unutilised. This will harm the growth spurts and the green shoots that are visible and have been referred to in the mid-year economic analysis of the Finance Ministry..........
How RBI’s policy actions affect you
....Where does the CRR fit into all this? While loans are not directly linked to CRR, changes in the ration may impact interest rates. When the CRR is raised, banks have to increase the funds they keep with the RBI. As the CRR earns no interest, banks may have to recoup costs through other lending. They may also have a lower amount available to lend. This may result in interest rates going up. Remember, a CRR change does not always warrant a change in a bank’s base rate.....
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