View from a central banker - A.Seshan

.......The author takes a balanced view: he gives the RBI credit where it's due and criticises the central bank where necessary. In general, I am on the same page as Mr Tarapore when he discusses monetary and fiscal policies and calls for tightening in the context of rising prices. His criticism of the extensive liberalisation of policies in the light of the 2008 crisis is justified. I called that response a panicky overreaction to the crisis and expected the chickens to come home to roost - and they did. However, his suggestion to abolish the foreign currency-denominated FCNR (B) deposits, although in a different context, is shocking - especially in the current state of steep currency depreciation..................

Read | Business Standard

All India RBI Inter School Quiz held

While inaugurating the quiz programme in the presence of a large number of participants mainly teachers, parents and students of various schools, PK Jena, Regional Director of RBI Guwahati, explained that the purpose of conducting the quiz programme is to create an awareness and interest among the students about the history and the role of Reserve bank, banking and finance, other banking institutions, economics, current affairs, personalities and events that have contributed to the growth and progress of India over the years.............

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VITALINFO - Day-to-day 'companion'......................

Dear Mangesh

I was away to my native place for a few days and due to lack of access to financial newspapers there, was worried that I may lose track of developments in the banking and financial world.  Since I carried my laptop with me, your VITALINFO was my day-to-day 'companion'.  The 'digest' of vital news items collated by you as bees collect honey, was a source of 'tonic' for me and my so-called handicap turned out to be a boon.  Executive Director Dr. Deepali Pant Joshi's appreciation is so timely and appropriate - and I do know that this must be a source of strength for you to recharge your batteries with renewed energy and vitality- but no praise is too high for your Herculean efforts. So, Ruk jana nahi ......  Congrats!

With affection and regards,

- S.M.Khot, Ex-General Manager 

You are doing a great job single handedly ! Kudos to you and you deserve all the possible appreciation you can get. I appreciate the fact that Deepali recognized your commitment and dedication too. Congratulations ! 

- Smt Harmesh Khanna, Ex-General Manager

Dear Mangesh

Congratulations on the prestigious certificate awarded to u by our ED, Ms. Deepali Pant Joshi for your VITALINFO which briefs each and every citizen in the country from all walks of life with the latest information pertaining not only to banking industry but also other areas as well. It also speaks about the single handed effort put in for enriching our knowledge day in and day out.  Keep the VITALINFO going ahead winning more and more laurels.

Regards 

- Lalitha Viswanathan, Private Secretary

Financial exclusion

The government and the Reserve Bank of India are trying hard to make financial inclusion a reality but their best efforts are tangled in red tape. Recently, a young man from a scheduled tribe visited a public sector bank in Kota,..........

Read | Business Standard

Fire over a smoke

The financial fraud by his company and subsequent arrest might have tainted his image, but Saradha Group promoter Sudipta Sen appears unwilling to change some aspects of his lifestyle even in judicial custody.........

Read | Business Standard

Govt approves prosecution of Apex Bank chief, nine others

..........Notwithstanding the fact that a case was already registered against her, five officials of the bank entered into an understating with her and settled the issue in return for Rs 53 lakh. According to the SPE officials, legal advisors submitted a false legal opinion to the bank paving the way for clearing obstacles in the settlement. Reserve Bank of India (RBI) and state government rules forbids any such settlement on defaulted loans, said the SPE officer who investigated the case............

Read - TOI

Study glare on Bengal's Ponzi reach

KOLKATA: It's no coincidence that Ponzi scamsters made merry in Bengal. A research report published by research and analysis company Crisil has pointed out that Bengal ranks much lower than the national average in "financial inclusion". In other words, the average citizen's access to institutional banking systems is very low in the state. The report, prepared with the Union finance ministry and the Reserve Bank of India, shows that in 2011, Bengal's average score was 28.8 against the national average of 40.1..........

Read - TOI

Chit funds scam: SC to hear plea for CBI probe

......The petitioner said the Securities and Exchange Board of India and the Reserve Bank of India were unable to control the chit funds and the Saradha Chit Fund scam was a serious threat to the economy. Due to lack of coordination among different agencies, the State government was unable to stop the illegal activities of the chit funds under the Chit Fund Act. The individual investors had no remedy and the State agencies were not performing their duties to protect the small investors. Hence the present writ petition...........

Read - The Hindu

VPS Advisory promises 20% assured return. Is SEBI on vigil?

.........The company claims it has a technique of making 20% profit consistently. The marketing mailer, full of grammatical mistakes, even mentioned that it never makes a loss. It said, “Overall at any worst case we make profit and come out.” For this, you will need to open a trading and demat account through them or give your demat account, along with the username and password! ...........

Read - Moneylife

Honest Bankers in Cobrapost May Soften RBI Rap

.........So far, RBI has fined three private banks for various irregularities detected during its inspection. We learn that as many as 15 show-cause notices have been issued by the regulator. But, now, the banks can use these honest bankers to forcefully argue that they do not encourage employees to break the rules, much less launder black money. In effect, banks would expect everyone to believe that the willingness to launder black money is not a reflection of institutional tolerance (or encouragement) but an employee fraud................

Read - Moneylife

My View on "FM to meet bank Chiefs on 3rd July" - Dr.T.V.Gopalakrishnan

..........The banks failed to cooperate with RBI is a fact and this has affected the economy in different ways. Savings in banks have come down, savings have been diverted to other assets, NPAs have increased,  productive loans have fallen down and all stakeholders who include the GOVT, the economy, the depositors and borrowers have suffered in the process. The FM will do well if he can make the bankers to work in the interest of the economy.............

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Muthoot Finance is qualified to become a bank: MD

.......“I see no reason why we should not enter the banking arena. We feel we are the most suited and qualified to become a bank,”........

Read - HBL

Birla, Dhoot join banking bandwagon

.............Aditya Birla Nuvo today said its board of directors had approved a proposal to apply for one of the new bank licences. It is the holding company of Aditya Birla Financial Services, the group’s non-banking financial company (NBFC). Another large industry house, Videocon Industries, gave its application for a bank licence today. Venugopal Dhoot, chairman, said: “Videocon is a mass brand, with strong rural identification. Therefore, it will have great visibility (as a bank).” Unlike most of the new banking aspirants, Videocon is not present in the financial services sector................

Read | Business Standard

Spice to Seek Banking Licence, in Talks to Rope in S’pore Investor

The BK Modi-promoted Spice Group will apply for a banking licence in India and is in talks with an unnamed bank in Singapore to offer a stake in the venture if it manages to get an approval from the central bank, the chairman of the group has said. Spice Group, which is headquartered in Singapore, has already brought on board former Sebi chief DR Mehta and former senior executives of Citibank and HDFC Bank to prepare a blue print for its banking foray, using Spice’s existing telecom and retail business, said Modi, who is chairman of the group................

Read - ET page 5

South tops in bank access; Maha, Guj below national avg

........A new index on financial inclusion released by ratings and analytics firm Crisil on Tuesday showed that Puducherry topped the list, followed by Chandigarh and Kerala. Most of the top slots went to smaller states and Union Territories with Goa and Delhi at number four and five..............

Read - TOI Mumbai Edition Page 1

RBI tightens gold lending norms for regional rural banks

MUMBAI: The Reserve Bank of India tightened restrictions on gold lending on Tuesday for regional rural banks (RRBs) and said the curbs extend also to units of gold exchange traded funds (ETF) and units of gold mutual funds, to tame demand for the yellow metal and rein-in a record high current account gap........

Read - ET 

NHB to lower risk weight for housing finance companies within a week

.......NHB said it would follow Reserve Bank of India's decision to reduce risk weight on banks' home loan over Rs 20 lakh. This is expected to have a softening impact on housing loans rates. "We will issue a notice in a week," NHB chairman and managing director RV Verma told ET........

Read - ET

Orchid starts debt restructuring process

CHENNAI: Orchid Chemicals is seeking recourse with its lenders and consequently has made a reference to the corporate debt restricting (CDR) cell, a body constituted by RBI to ensure restructuring debt of an organization............

Read - TOI

Deadline for FCCB buyback, prepayment extended till Dec

The Reserve Bank of India has extended the deadline for buyback and prepayment of foreign currency convertible debentures (FCCBs) under the approval route till December this year. The decision to continue with the scheme was taken in the light of developments in the global financial markets and review of the scheme, RBI said in a communication to commercial banks....

Read | Business Standard

Rs 1,000-cr inflation-indexed bonds auction sails through

..........The RBI received 81 competitive bids worth Rs 2,388 crore from wholesale investors, of which 42 bids (Rs 997.70 crore) were accepted as compared to 167 competitive bids worth Rs 4,616 crore in the first auction with 26 bids being accepted (Rs 985.94 crore). The cut-off yield for the first auction, conducted on June 4, was fixed at 1.44 per cent. However, the response from retail investors remained subdued with two bids worth Rs 2.30 crore...........

Read - HBL