.............The RBI has said it will consider need-based relaxation of the 50 per cent limit in cases where the Insurance Regulatory and Development Authority (IRDA) calls for capital infusion into the insurance joint venture. The relaxation, if permitted, will be subject to the NBFC complying with all regulatory conditions...........
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, November 29, 2013
Lanco future uncertain as banks split on recast
With the Reserve Bank of India (RBI) chiding banks for having been too lenient with borrowers and suggesting that they’re evergreening loans, banks now appear to be taking recast proposals more seriously. The R7,500-crore debt recast plan for Lanco Infratech has been put on hold with several lenders in the 27-bank consortium not comfortable with sanctioning additional loans........
Bank can publish defaulter's photo in papers: High Court
...."In our view, there would be no impediment to publication of photos of the defaulters. There is no legal bar which expressly prohibits the bank from publishing photos. "However, the decision to resort to such measures should be taken by a very senior level official not below the rank of General Manager of the bank. In this case, due process was followed and the decision cannot be faulted," the court said. ..........
Bankers wary of Gammon's making loans equity
........In recent months, RBI Governor Raghuram Rajan and Deputy Governor K C Chakrabarty have raised concern on rising non-performing assets and restructuring of loans in the banking sector. According to BSE data, promoters hold 35 per cent stake in Gammon India. If the loans are converted into equity, this stake would fall considerably........
Nidhi firms raising crores from small depositors
KOLKATA: After the Saradha loot, another danger is lurking in the money market waiting to devour small depositors. Several firms posing as "banks" are offering interest rates higher than that of banks on fixed deposits, when the Reserve Bank has issued no banking licence in the last 10 years. One such "bank" has even put up billboards across the city inviting deposits. It gives loans to members against mortgages........
Thursday, November 28, 2013
VITALINFO - Service beyond compare - G.Padmanabhan, Executive Director
Dear Mangesh
Thanks for the mail. These days whether we read
newspapers or not, VITALINFO is a must. The service you are doing to all
members is just beyond compare. Please continue to be inspired. Best regards
- G.Padmanabhan, Executive Director, RBI
If I had my life to live again.......................I would 'Re'serve VITALINFO
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| Entering into 4th year |
RBI holds ‘coin mela’ to ease shortage of change
....Sanjay Bhatia, Deputy General Manager of RBI (Chandigarh), said, "To overcome the shortage of the currency notes, especially in the markets, we have introduced this process. Increase in circulation of coins will help prevent counterfeiting of currency. We are working to expand this process in the whole city and then to Mohali and Panchkula."
Reserve Bank of India cautions on deposits with dubious NBFCs
Fearing many innocent investors being lured by fancy interest rates offering by NBFCs, Reserve Bank of India executives yesterday at public information campaign at Jaisingpur in Kangra, cautioned the people from falling into such a trap. Kuldeep Singh Bhati, Assistant General Manager, Reserve Bank of India (RBI) advised people to resist from depositing their hard earned cash in category-B firms which carry a dubious track record. Sharing views of the RBI he said that public should hold more caution when dealing with non banking financial companies.............
NABARD holds financial literacy workshop at Kulgam
...........Agriculture and allied sectors assumes a significant role in economic role especially in rural areas for which every effort needs to be made by all stake holders, saying that NABARD has got a mandate to provide financial assistance under new financial inclusion under RBI guidelines Additional Deputy Commissioner added. During the work shop, initiation of developmental activities and the benefits of financial literacy and its impact on economic activities was stressed by the speakers. The utility of financial literacy and its benefits to the common masses were explained in simple and colloquial language to the audience. Concepts of working of SHG’s, JLG’s, access to credit card facilities and banking insurance were also discussed............
Valuation Risks Need Recognition and Mitigation - Yerram Raju
........Trend and Progress of Banking 2013 indicated that INR 16000cr are NPAs in realty sector. But mind you these are reported NPAs. Many may be hiding. Concealed risks are more than the revealed risks and these could arise from faulty valuation of the properties and could also be collusive faulty valuation reports..............
RBI Pension History: Research/publication
An open letter from M G Warrier
TO WHOMSOEVER IT MAY CONCERN
Greetings
The first casualty of lack of transparent communication is truth. It cannot be different, even if the institution is as big as RBI and the Governor is a person of impeccable integrity. Dr Subbarao’s efforts to resolve the long pending issue of pension revision got stifled by a hostile finance ministry. Hostility of a ministry should not be allowed to cause hurdles in the management of HR beyond an acceptable level of tolerance. I am not privy to the goings on in regard to pension revision at this point of time. I now propose to put together a paper on the basis of available information on the evolution of pension scheme in RBI since 1980s to the current period. I invite anyone who may have documents relevant for the study, which they consider, can be made available for research/publication, to share them with me. There is a belief that lower level officials in finance ministry are being used to pressurise RBI to agree with the line of thinking in the ministry using pension revision as a bait. One such issue is notification of RBI(Staff) Regulations, 1948. I am copying below excerpts from a note recorded by me on related issues sometime back. Kindly feel free to share your views.
- M G Warrier
Take up Arms to end Inflation
This
refers to ‘Move Over, Rajan’ (ET, Nov 27). Our Delhi leaders either do
not have the will to tackle inflation or cross-currents are working
against their strategies to contain it. Even the RBI during Subbarao’s
time advised the government to improve the supply chain to contain food
inflation. But why has the RBI been overusing policy rates without using
other weapons in its armoury? What happened to the selective credit
control measures? These measures adopted in the 1970s did have a
sobering effect on inflation.
- K V RAO, Bangalore (ET)
- K V RAO, Bangalore (ET)
Rajan, FM Working As A Team: Ram Charan
Management Guru Ram Charan says that RBI Governor Raghuram Rajan is the first cause for optimism on India. “I appreciate Rajan's approach to problems,”......
Watch the video...........
Watch the video...........
The last chance
..........India therefore has an ample and growing cushion to absorb the rise in imports that precedes the revival of growth. There is, therefore, no downside to lowering the interest rate now. All that Raghuram Rajan has to do is abandon the belief that raising interest rates is the cure for all types of inflation; recognise that India is suffering from endemic cost push inflation born of supply shortages, and that the only cure for these shortages is economic growth.
IBA awards HDFC Bank in technology innovation
.....The 6 winners were announced from a total of 88 nominations across 33 banks (20 PSU, 10 Private and 3 Cooperative). HDFC Bank was awarded in the category of ‘Most Innovative use of Technology’. Usha Thorat, Former Deputy Governor, RBI & Director, CAFRAL chaired the Jury that included MV Nair, Former Chairman & MD, Union Bank of India, MD Mallya...........
Banks violate RBI norms to deny zero-balance A/Cs
Banks have been found to use the Reserve Bank of India's norms as an excuse to avoid opening zero-balance accounts. In a sting operation conducted by a web portal, an IIT Mumbai professor sought to open a basic bank account in 19 banks without address or identity proof. In all the 19 branches, the professor was shooed away although RBI regulations require banks to open a 'small account' without address or identity proof. The professor's sting operation seeks to expose how banks use the pretext of 'know your customer' guidelines to turn away business that is unprofitable. Incidentally, these are the same banks which fell victim to a sting operation by a web portal which exposed their willingness to violate the 'know your customer' guidelines to grab business.........
Tough to change RBI's banking licenses norms now
....I would not know why Tata Sons have decided to withdraw but by and large you did get a sense when the clarifications were rendered to the guidelines. The guidelines, and then the clarification suggested that conversion of non-banking financial companies (NBFC), particularly large-sized NBFCs would be very difficult to meet with within the guidelines which were offered in June 2013. In keeping with that you are getting a sense that perhaps some of the NBFCs may have failed, they are better off continuing as NBFCs rather than converting as a bank, so that could be one reason............
Tata says bye to banking
....The Reserve Bank of India (RBI), in a press statement issued on Wednesday, said it had accepted the request for withdrawal of the application. RBI said the company had indicated its current financial services operating model best supported the needs of the Tata group’s domestic and foreign strategy and provided adequate operating flexibility to its companies, while securing the interests of the group’s diverse stakeholder base.......
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