....The Commission envisages a 12-member RBI Board with not more than one half being executive members; this by itself is reasonable but one has to dwell a little further into the Commission's proposal. There is an insidious proposal, in that the post of 'Governor' should be abolished and the head of RBI should be named as 'Chairperson'. The Commission's ready defence would be that, after all, the head of the US Fed is called 'Chairman'; the Commission would conveniently forget that members of the 'US Fed are called Governors and the head is known as Chairman of the Board of Governors. Furthermore, the Deputy Governors are to be brought down a peg and called members and one of the members would be called an 'administrative law member'. The whole ploy seems to be to downgrade the RBI to the level of any other financial regulators. The Commission needs to appreciate that central banks are unique. .............
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.
Saturday, May 4, 2013
New Bank Licences to Come Under New Guv
.........New
bank licences will not be distributed during the governorship of
Duvvuri Subbarao at the Reserve Bank of India as the ground work and due
diligence will not be completed by September when he completes his
term. His successor will have the privilege of granting those long
awaited licences to commence banking operations. “I doubt,’’ said
Subbarao on the possibility of his handing out new bank licences. “It is
not possible. It will take longer than that. It is not practical. I
have only four months to go.’’ Subbarao’s admission that new licences
would move well into a new Governor’s term could disappoint aspirants............
Activist Subba: RBI curbs on bank charges
..........RBI’s
activism is in line with the move by some central banks worldwide to
treat banks as utilities – providing them protection and rationing their number but regulating them intensely. In
another customerfriendly move, RBI said banks must have a policy where
pricing of loans is transparent, realistic and related to the risk
perception of the borrower...........
Do we need a regulator for ‘unclaimed’ deposits? - M.G.Warrier
.....Ironically, the position will only aggravate with compulsory opening of more accounts to promote financial inclusion, insistence on Aadhaar-enabled accounts even before Aadhaar is yet to reach and crediting of government scheme benefits through bank accounts. The GOI and RBI may look at the issue from a social security angle, lest people lose faith in government-sponsored savings schemes and social security measures and even in the financial sector regulator........
Now, stamps with personalised touch
 |
| FIRST CUSTOMER RBI Regional Director (Chennai), J. Sadakkadulla takes a look at the personalised stamps with his image on it at Anna Road HPO on Friday. |
Seminar on Indian banking at Moodbidri
....Deepali Pant Joshi, Executive Director of Reserve Bank of India, will inaugurate the seminar. N.K. Thingalaya, economist and former Chairman of Syndicate Bank, will deliver the presidential address,.........
CBI willing to probe Saradha scam if court asks
......The state was allowed to file a supplementary affidavit if it wished on the points raised in the applications pitching for a CBI probe.Counsel representing the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) - which monitor companies seeking deposits - also furnished documents to the court on their stand on the issue..........
No clean-chit to ICICI,HDFC,Axis;show-cause notices on way: RBI
....."No we have not. And we are saying that we are (going) to issue show-cause notices. So, the inquiry is still in progress," RBI Governor D Subabrao told reporters when asked whether the apex bank had given clean chit to the three banks. ...........
Focus on bank consolidation
....."It's a no-brainer as it makes a lot of sense. But practically, we have miles to go. I don't think it's in the hands of RBI and the government needs to step in. How will you tackle the trade unions? State Bank of India is struggling to merge its associates. Consolidation has its own advantage, but I don't think it will happen any time soon,"......
Duncan Lawrie eyes private banking space in India
Duncan Lawrie, a part of the UK-based Camellia Group, is eyeing the private banking business from Indian high-networth individuals, an official of the company said.........
Murugappa Group to take a call on foray into banking sector
Diversified business conglomerate Murugappa Group would take a call on its foray into banking services sector over the next couple of months, a top company official said today. "After the guidelines came from RBI, there were some issues relating to NOHC (Non-Operative Holding Company) and other regulations. We have actually sought some clarifications (from RBI),"............
Banks not carrying out customer due diligence: RBI
.........The investigation, according to the RBI annual policy statement, has underscored the need for better regulatory compliance by banks as well. The central bank will issue draft guidelines on wealth management services offered by banks by end-June, 2013. Wealth management services (WMS) generally include referral services, investment advisory services (IAS) and portfolio management services (PMS). Detailed guidelines will be issued by end-June 2013........
Does RBI really want rates to fall?
......So, RBI's repo rate cut needs to be seen in the light of tight liquidity conditions and lower transmission. Possibly the central bank is sending out a message to banks that it isn't supportive of a lower interest rates regime just yet.........
Bank draws flak for refusing to open salary accounts
Following a refusal by Vasco-based Axis Bank to open salary accounts for their employees on the basis of a letter issued by the employer/company as identity and address proof, the Vasco-based Swift Wash, a rehabilitation unit, has written to the bank again. It has also sent copies to the Governor of the Reserve Bank of India (RBI) and the Union Finance Minister..........
2 lakh villages get banking outlets
.....The RBI’s monetary policy statement for 2013-14 said that the banks have been advised to draw up the next FIP for 2013-16 to take financial inclusion to the next stage of providing universal coverage and facilitating electronic benefit transfer........
Lead Bank Scheme to cover metros to ensure smooth delivery of cash transfer benefits
........RBI has admitted that financial exclusion is not merely a rural phenomenon and it is in fact widespread in metros. The latest move aims at facilitating doorstep banking to the excluded segment of urban poor and to implement direct benefit transfer under social welfare plans. Lead bank scheme is an integrated mechanism to extend banking facilities to consumers, especially the economically weaker ones.............
KYC norms: Showcause notices to be issued for violation
.....This move comes after three private sector banks — ICICI Bank, HDFC Bank and Axis Bank — employees were allegedly caught in a sting operation by online magazine cobrapost.com offering to convert tax evaded money into legitimate money. “First we will show the audit report to all the banks and ask them to explain. If we feel that their explanation is unsatisfactory, we will issue a show-cause notice and based on that we will take some action,” K.C. Chakrabarty, Deputy Governor, RBI, said.......
Tighter corporate debt recast norms soon, says RBI
........The move comes even as the monetary authority had last October increased the provisioning for standard restructured loans to 2.75 per cent from 2 per cent and had said it would gradually go up to 5 per cent of the recast amount. The latest step comes following the recommendations of a RBI working group, headed by B Mahapatra, to review the existing prudential norms on restructuring of advances by banks/financial institutions. Following this, the RBI had issued the draft norms on January 31......
Reserve Bank of India concerned over dependence on ECBs
......India's strong dependence on external and short-term debts for financing current account deficit remains a key concern for the Reserve Bank, although the deficit may ease in the fourth quarter due to the fall in global commodity prices...........
‘We are close to the end of the easing cycle’
overnorship of the Reserve Bank of India (RBI) has been a roller coaster ride for Duvvuri Subbarao. In a short span of over four years, he has eased, hiked and again eased interest rates. Soon after presenting his last annual monetary and credit policy on Friday – his five-year term ends in September this year – Subbarao revealed his mind on all things macroeconomic to Parnika Sokhi and Megha Mandavia. Excerpt from the interview:.........
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