........There are, of course, many good reasons for NRIs to park their money in India in the three schemes that are now in operation. Clearly, they earn a little more from these deposits than they can hope to get in developed economies, where such schemes will earn them much less. Such deposits are also a reflection of their confidence in the Indian economy, its growth potential and financial system, where their money is not only safe but can also get good returns. Finally, NRIs do have a social and emotional connect with the country they belong to and investing in these deposits gives them that extra satisfaction..........
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.
Monday, September 8, 2014
Interest rates turn real
............Nevertheless, with fixed deposit rates now higher than inflation and with buoyant equity markets, it’s likely that the share of financial savings in household savings will increase. Note also that India is one of the few Asian countries to have positive real rates, the credit for which should go to central bank governor Raghuram Rajan.
Inflation looms over RBI plans
..........RBI will announce the bi-monthly review of the policy on September 30. Bringing down inflation has topped the agenda of Mr Rajan who has hiked rates thrice in his year-long stint as the central bank Governor. Recently a series of commentary from the finance ministry had indicated that it wants interest rates to come down given inflation has “moderated”. “We see inflation is going to come down further and we hope as the (RBI) governor has in his recent credit policy stated, RBI will not hold interest rates high any longer than is necessary and I hope that threshold we will reach soon enough,” finance secretary Arvind Mayaram had said during an interaction with the industry some two weeks ago..........
Monetary stimulus may backfire, provoke savings glut, says Rajan
....."Any emerging market today is going to look at the currency volatility and say 'whatever money comes in, I am going to be careful about it, I am going to build some reserves,'" Rajan said in a speech in Chicago on Friday. "That kind of policy will depress global demand."........
BRICS bank not aimed at challenging IMF, World Bank: RBI Governor Raghuram Rajan
........."I don't think it was primarily meant to challenge the existing multilateral institutions but it certainly is saying look we have plenty of money ourselves, why don't we put some of this money to use in a way that benefits us rather than necessarily depending on the multilateral institutions to change which is taking much more time than anybody thought of,".........
FOXED BY LACK OF RBI'S NEW BANKING GUIDELINES, NBFCS SHIRK FROM RE-APPLYING
Confused by RBI's lack of guidelines for new banking licences despite the announcements of licences on-tap, NBFCs like the ShriramGroup has said that it will only apply for standalone banking licence and was not keen to convert its NBFC into a bank............
Read - The Pioneer
Read - The Pioneer
Jan Dhan Yojana: KPMG to validate number of accounts opened by banks
.......KPMG’s confirmation of the number of accounts opened will help the Centre pitch for an entry into the Guinness Book of World Records for the maximum number of bank accounts opened in a day, banking industry sources said. It would also provide some comfort to the Finance Ministry that the numbers submitted by the banks were accurate and reflected the true picture.........
Making laws for 'glocal' economy
............The central bank's recent circular was triggered by complaints by the competitors of Uber Technologies that the San Francisco-based provider of niche cab services had violated Foreign Exchange Management Act (FEMA) norms and didn't have in place a second level of authentication. Uber didn't respond to emailed questions on the issue. Senior executives from the e-commerce segment say it makes business sense to offer a global service through a single-payment gateway rather than use multiple payment systems across many countries. The e-commerce economy doesn't recognise geographical or national boundaries. As a result, ...........
Uber in talks to integrate digital wallet in India
..................Uber stores credit card details of passengers and automatically charges the card once the taxi ride is over without two-factor authentication as it uses an international payment gateway. Companies such as Uber now have until October 31 to become compliant. "They are working on integrating a mobile wallet into their application," said a person with direct knowledge of the discussions. "It will most likely be Paytm. The integration will take some time as it has to go through the Uber proc ..
Shady gold auction raises police suspicion, 63 kg seized
.......The officials of the firm claimed that they could sell the gold at any price they wanted since there are no guidelines from the Reserve Bank India. “We have written to the RBI for clarification in the case. We have been informed by the firm that the seized gold belongs to more than 3000 customers. But they have not maintained documents to support their claim,” DCP Goyal said..........
SBI to raise global biz share to 25% in 3 yrs
.......“International operations should actually give us a risk diversification. Meaning, it should not be doing only Indian business, sitting at a foreign centre. Of course, it is our strength and we would continue to do part of that but we are now trying to localise as much as possible.”......
Dena Bank wants govt to dilute its stake in the PSB
........."Our target is to grow at around 18% in the next 18 months, primarily driven by SME and retail," said Dena Bank's Chairman and Managing Director Ashwani Kumar, who noted that to support this growth the bank would require around Rs 1,200 crore. He said the retail book alone is expected to grow by around 23-24%. The bank already approached the government, which holds about 58% in the bank, for capital infusion. "We also asked the government to reduce its holding to 51%. If we do not receive this capital, then our growth would be around 11%."........
Unique identification number planned to track bank loans
......This will give information about the number of officials involved in sanctioning the loan, the stage at which the application was rejected, and the official who rejected the loan application. The move, which is in the final stages of discussion, will bring in more transparency in sanctioning of loans and check cases of bribery in disbursal. The lenders will also be asked to monitor the end use of loans disbursed and keep close watch on the activities of a company or individual availing of the loan................
'Sudipta planning for ‘Saradha bank’ licence from scam funds'
...........“The capital for this bank could have been anywhere above Rs. 1,000 crore and the group was banking on the funds that its front companies had collected by floating the ponzi schemes which are now under probe after the scam broke out,” a source privy to the development said. Documents related to RBI guidelines, rules and regulatory compliances required for applying a bank licence were recovered during detailed searches, sources said, adding some of them were found after data was forensically recovered from computer hard discs. “Had the scam not broken out, the group would have applied for the license. We get to understand that the brand name for this future business venture would have been showcased as ‘Saradha bank’,” the source said......
Syndicate Bank- Bhushan Steel fiasco: Banks in a spot over 'mistaken identity'
Is one of the men arrested in the scandal over alleged bribes for higher loan limits the victim of mistaken identity? Lenders certainly hope so...............
The ones that got away
How did so many get-rich-quick schemes spring up in the first place, without the approval of the Reserve Bank of India or the Securities and Exchange Board of India? If this is what you’re wondering, they have essentially exploited grey areas in laws that made SEBI the regulator for ‘securities markets’ and RBI the regulator for banks and NBFCs. As most of the money-pooling schemes collected money towards ‘units’ in plots of land, livestock, time-shares and so on, they claimed that they weren’t dealing in securities or deposits. But the high-profile Sahara and Saradha cases prompted Indian lawmakers to recently amend the SEBI Act to plug this loophole.........
Vijay Mallya, defaulter
.............While recommending revised rules for restructuring loans, the Mahapatra Committee noted that a significant portion of restructured standard assets turned into non-performing assets (NPAs) because they were weak to begin with, and the reason banks went ahead with the restructuring was because the quality of due-diligence was so poor; a recent media report highlighted how the restructuring for R14,000 crore of debt was not working out. It is perplexing how bankers can be so casual with their ..........
‘Our bank is institutionalised, not family-run’
A lot has changed in the first five months of this fiscal, particularly in the last three months of the new government. Business confidence, in terms of conviction and message has dramatically changed the economic environment. Industries like FMCG, pharma, IT, renewable energy and M&As within the domestic sector are seen as game-changers by bankers and economists. YES Bank’s MD & CEO Rana Kapoor is all pepped up for a gear-shift under the new regime. “But the bigger worry is for these (initiatives) to translate into kinetic energy or what we commonly say, green shoots,” he tells OP Thomas in an interview. Excerpts............
Goa mining ban: OTS formula hits a road-block
...........A debt relief scheme notified by the Goa government recently to partially write off accumulated interest or principal of the bank loans of borrowers affected by mining ban through a one time settlement (OTS) formula has faced a road-block as the scheme is yet to get clerance from the Reserve Bank of India(RBI)........
Saturday, September 6, 2014
CAFRAL - Enriching Knowledge through Research
.............“I am hopeful that in the days ahead CAFRAL will continue its efforts to stimulate discourse on various themes that the banking and finance sector is currently grappling with”................
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