Source |
Date |
Description |
BUSINESS STANDARD (9) |
21/5/2005 |
PAYMENT SYSTEM BILL ON CARDS The Reserve
Bank of India today said it is working with the Centre to draft a comprehensive legislation on payment system. The Payment
System Bill will give th apex bank powers to form regulations for the payment industry, R B Barman, Executive Director, RBI
said on the sidelines of a seminar on payment systems in banks. |
BUSINESS STANDARD (9) |
21/5/2005 |
IBA PLANS FIRM FOR CENTRALISED CLEARING SYSTEM
Indian Banks' Association in association with member banks, will form a company that will act as an umbrela organisation
for operating all retail payments and settlement system in India. The umbrella organisation will own and operate the clearing
system in India. A slew of banks including ICICI Bank, Citibank, Standard Chartered Bank and 12 public sector entities are
likely to pick up stake of this company. |
BUSINESS STANDARD (1) |
20/5/2005 |
BANKS TOLD TO FURNISH DATA ON DERIVATIES Concerned
over banks' unhedged positions in the market, the Reserve Bank of India has sought data from banks on their derivatices exposure.
The Central bank has sought data from the fixed income market on banks' domestic as well as foreign exchange positions
in segments like currency rupee options, interest rate swaps and the like. Normally, commercial banks on their own report
to the RBI their positions at regular intervals. |
THE FINANCIAL EXPRESS (PAGE 12) |
18/5/2005 |
IBA DIFFERS WITH RBI ON DO-NOT-CALL REGISTRY
The Indian Banks' Association has informed the Reserve Bank of India that it would not maintain a ""do-not-call" registry
for the banking industry, as suggested by an RBI Group. The Group has recommended that the IBA should set up a website
for the same and act as a mediator with the card issuing banks. The group was set up to address the issue on unsolicited calls
for marketing banks' credit or debit cards. |
BUSINESS LINE [pg 1] |
13/5/2005 |
Bank mergers : Approval from two-third board
members must RBI has stipulated that merger of banks should have the consent of 2/3 majority of the members of their
boards and not just those present at the board meeting alone. |
BUSINESS STANDARD [pg1] |
13/5/2005 |
SSI Cap to be raised to Rs.5 cr. The
government introduced the Small & Medium Enterprises Development Bill 2005 seeking to enhance the investment cap for small-scale
units from Rs. 1 cr. to Rs.5 cr. It seeks to extend progressive credit facilities to SMEs in line with the guildelines laid
out by the RBI |
BUSINESS LINE [pg 6] |
13/5/2005 |
Risk-averse, most banks reach IFR Limit Most
banks have reached the investment fluctuation reserve[IFR] limit ahead of the deadline prescribed by the RBI i.e., April 2006.According
to RBI guidelines, banks are expected to have built-up reserve of 5% of the investment portfolio within the prescribed deadline. |
BUSINESS STANDARD [pg15] |
13/5/2005 |
RBI may allow rupee to pump iron India's
central bank may allow the rupee to gain gradually in the next few weeks in a bid to stave off rising inflation. |
FINANCIAL EXPRESS [pg 14] |
10/5/2005 |
RBI to meet foreign bank chiefs on card gievances
The RBI is slated to meet chief executive officers of foreign banks next week to discuss customer grievances on credit
cards. |
BUSINESS STANDARD [pg 15] |
10/5/2005 |
Foreign Banks await detailed guidelines to
merge PDs Primary dealers [PDs] promoted by foreign banks are learnt to be reviewing their business in India. The RBI
had announced in its monetary policy that permitted structures of PD business will be expanded to include banks which fulfil
a minimum criteria. |
ECONOMIC TIMES [pg 14] |
10/5/2005 |
Banking Reforms Bills to be tabled in Parliament The
government will soon introduce three bills in parliament that intend to give a big push to banking reforms and increase FDI
in private banks. While 2 bills pertain to amendments in the Banking Regulation Act 1949 and the RBI Act 1934, the thrird
one is Credit Information Cos.[regulation]Bill of '04. |
BUSINESS STANDARD (Page 11) |
9/5/2005 |
RBI TO ASSESS BASEL -II EFFECT IN 2005-06
The Reserve Bank of India will assess the impact of Basel-II capital adequacy on banks in the current year (2005-06)
itself. It will conduct parrallel accounting in about 10 banks to get first hand estimation of the extent of impact the banking
sector would have to bear. |
THE FINANCIAL EXPRESS (Page 1) |
7/5/2005 |
RBI LOWERS CDR BAR TO RS.10 CR The
Reserve Bank of India has proposed to lower the bar for extending the corporate debt restructuring scheme to corporate entities
on whom banks and institutions have an outstanding exposure of Rs 10 crore or more, as against the current norm of Rs. 20
crore and above. |
BUSINESS LINE (PAGE 1) |
4/5/2005 |
BANKS TO FLOAT COMPANY FOR NEW SETTLEMENT
SYSTEM All banking transactions in the four metros- Mumbai, Delhi, Kolkata and Cheanni - will be cleared and settled
under the proposed National Settlement System (NSS) by December. The NSS will function under a limtied company owned and operated
by banks, the Reserve Bank of India said on Tuesday. This proposed company will act as an umbrella organisation for all retail
clearing operations. |
THE FINANCIAL EXPRESS (PAGE 14) |
4/5/2005 |
BANKS LINE UP HIOMETIC ATMS WITH FINGERPRINT
TECHNOLOGY Banks are switching over to biometric ATMs in a big way. Close on the heels of private sector ICICI Bank
launching a pilot on biometric ATMs in the tobacco belt in Guntur District of Andhra Pradesh. |
BUSINESS LINE (PAGE 1) |
3/5/2005 |
SAVINGS ACCOUNTS EXEMPT FROM CASH TRANSACTION
TAX The Finance Minister, Mr P Chidambaram, on Monday, announced a softening of the incidence of proposed Fringe Benefit
Tax (FBT) on companies, while exempting transactions in savings bank accounts from the Banking Cash Transation Tax (BCTT). |
BUSINESS LINE (Page 6) |
3/5/2005 |
NEW CHAIRMEN OF PNB, OBC ASSUME CHARGE Mr
S C Gupta on Monday took over as Chairman of Punjab National Bank, while Mr K N Prithviraj assumed office as CMD of Oriental
Bank of Commerce. |
BUSINESS STANDARD (3) |
2/5/2005 |
IBA SEEKS CASH WITHDRAWAL TAX LIMIT RAISED
TO RS. 50,000 The proposed tax on cash withdrawals from banks is taking a new turn with the Indian Banks' Association
and Reserve Bank of India moving the finance ministry in his regard. The IBA, in its presentation to the ministry, has
asked for raising the limit to Rs. 50,000 as against the porposed Rs. 10,000/- and remove demand draft and inter-bank transctions
from the purview of the dash withdrawal tax. |
BUSINESS STANDARD (1) |
2/5/2005 |
RBI TO CRACK THE WHIP ON INTERMEDIARIES The
Reserve Bank of India is readying to crack down on the unholy relationships among financial intermediaries. Under the microscope
of the central bank are rating agencies, auditing firms, investment banks, and commercial banks that are going the whole hog
in pushing third party products. The RBI intends to crack down on the confilict of interest arising in the Indian financial
services sector. It has set up a working group on this. |
BUSINESS STANDARD (18) |
30/4/2005 |
NHB CHIEF GIVEN CHARGE OF UNITED BANK OF INDIA
Shri P K Gupta, Chairman and Managing Director of National Housing Bank , has been given the additional charge of
CMD of United Bank of India from 1st May, 2005 |
THE FINANCIAL EXPRESS (Page 5) |
30/4/2005 |
BILL TO AMEND MONEY LAUNDERING ACT TABLED
A bill to amend the Money Laundering Act, 2002 by providing for the appontment of the chairperson and member of the
appellate tribunal was introduced by finance minster P Chidambaram in the Lok Sabha on Friday. In order to ensure effective
implementation of the Act and remove certain difficulties, the Bill was brought in to amend the 2002 law. |
BUSINESS LINE (Page 10) |
28/4/2005 |
RBI DIRECTIVE TO FIs ON RISK EXPOSURE Financial
institutions, which do not accept public deposit, having asset size of Rs. 500 crore and abvoe will be subject to limited
off-site supervision by the Reserve Bank of India from March 31. |
THE FINANCIAL EXPRESS (Page 14) |
27/4/2005 |
RBI MAY ALLOW SOME UCBs TO FOLLOW 180 DAY
NPA NORM The Reserve Bank of India is likely to present a slightly watered down version of the vision document for
Urban co-operative banks in the forthcoming Annual Policy. |
THE FINANCIAL EXPRESS (Page 14) |
27/4/2005 |
FIRST PSB MERGER THIS FISCAL: SINOR The
first consolidation between two state owned banks along regional lines will happen before the end of the fiscal, said H N
Sinor, Chief Executive, Indian Banks' Association. |
THE FINANCIAL EXPRESS (Page 14) |
27/4/2005 |
BANKERS AWAIT RBI GUIDELINES ON RISK MANAGEMENT
COURSE Banks have less than a year to go before they embrace the Basel-II norms. Thus, bankers expect their regulartor,
the Reserve Bank of India, to spell out the next step on how to manage credit risks. It may also spell out guidelines for
setting up overseas offfices. It is gathered that RBI has been working on the same to make the process easier. |
THE FINANCIAL EXPRESS (Page 1) |
27/4/2005 |
CHARGE OF THE CREDIT CARD BRIGADE The
RBI's working group on plastic money favours allowing banks cand ciredit card companies decide their service charge rates
depending on their size and spread of business. The average rate right how is 2.25%. The cental bank is unhder pressure
to ensure fair practices and uniformity. We have decided not to fix any rates on behalf of banks and card companies. We would,
however, ensure there is reasonable degree of uniformity, apart from fair practices, a member of the working group said. Plastic
companies are also expected RBI to specify a code of conduct in its forthcoming credit policy. |
BUSINESS STANDARD (1) |
26/4/2005 |
CUSTOMER SERVICES BODY MULLED The
Reserve Bank of India is considering a proposal to set up a banking codes and services board in the country to supervise customer
services. This is in line with the recommendations of the Tarapore Committee. A redressal mechanism for customer compalints
already exists, but this does not have judicial status. The board, sources said, would have the action against banks, if required.
|
BUSINESS STANDARD (9) |
25/4/2005 |
BANKS MAY GET MORE LEEWAY ON DERIVATIVES The
Reserve Bank of India is likely to announce a roadmap for banks to participate in the derivatives segment in the equity, commodities
and fixed income (bonds) markets for better risk management. According to sources, recommendations of several internal
committees set up by the RBI may figure in the annual credit policy to be announced this week. |
BUSINESS STANDARD (2) |
16/4/2005 |
BANKS GET NOD TO SET UP INSURANCE ARM After
a gap of four years, the Reserve Bank of India is likely to permit public sector banks to set up insurance subsidiaries, provided
the new ventures are widely held. |
BUSINESS STANDARD (8) |
16/4/2005 |
RBI REDUCES UCB EXPOSURE LIMIT The
Reserve Bank of India today revised the exposure limit of urban co-operative banks to a single borrower and a group borrowers
at 15 % and 40% respectively from the current 20% and 50 % respectively. |
BUSINESS LINE (PAGE 1) |
15/4/2005 |
MORE PSU BANK OFFICERS MAY BE OFF CVC PURVIEW
Public Sector Banks can hope for more freedom in the days to come with the Ministry of Finance strongly backing the
industry's demand for taking out more layers of senior officers out of the purview of Central Vigilance Commission (CVC) |
BUSINESS STANDARD (1) |
15/4/2005 |
BANKS' MUTUAL FUNDS PITCH UNDER SCANNER Private
Sector and Foreign Banks, which have been aggressively pushing depositors to invest in mutual fund products, have come under
the scanner of the regulator. The Reserve Bank of India has sent out notices to banks, seeking information on their activity
as regards their cross-selling thrid party mutual funds and churning the protfolio of their depositors. |
FINANCIAL EXPRESS [pg 12] |
13/4/2005 |
RBI issues draft norms on bank transactions
of NPAs RBI, on Tuesday, said that a bank can purchase/sell non-performing assets from/to other banks only on 'without
recourse basis'and the transaction should be concluded only on cash basis. |
BUSINESS STANDARD [pg 4] |
13/4/2005 |
Keep NPAs for 15 months :RBI RBI draft
guidelines for purchase or sale of bad loans issued suggested that banks purchasing NPAs should keep them on their books for
at least 15 months. |
FINANCIAL EXPRESS [pg8] |
13/4/2005 |
Banks ready Rs.181 cr credit line for silk
farmers in Kerala Bankers in Kerala are readying a dedicated Rs.181cr. credit line for silk farmers. |
BUSINESS STANDARD [pg II] |
13/4/2005 |
RBI likely to set up separate monetary management
unit RBI is planning to set up a separate monetary management cell by carving out monetary policy activities from other
depts.such as internal debt management and monetary policy dept. |
FINANCIAL EXPRESS [pg14] |
12/4/2005 |
RBI sets cap for donations by UCBs at 1% of
previous profit The RBI on Monday said that normal donations made during a year by a UCB should inaggregate berestricted
to a maximum of 1% of the published profits of the bank for the previous year.This ceiling on donations/contributions for
public/charitable purposes has been imposed by RBI as it has come across instances of large donations being made by UCBs which
adversely affects the interest of depositors. |
ECONOMIC TIMES [pg 16] |
12/4/2005 |
Banks place their bets on T-bills as G-sec
yields soar Action in the treasury bills market is hotting up as the rise in yields on g-secs is compelling banks to
look at short term instruments to put money in. Wary of rising yields, banks are unwilling to take a bet on long-tenor bonds. |
BUSINESS STANDARD [pg 2] |
12/4/2005 |
Govt. 'goes slow' on FDI in insurance The
Finance Ministry is going slow on the issue of hiking foreign direct investment in the insurance sector even as efforts are
on to draft a Bill on insurance based on the feedback from the Insurance Regulatory Development Authority [IRDA]. |
BUSINESS STANDARD [pg 14] |
12/4/2005 |
RBI OrderDelayed Credit of ECS RBI
has reiterated that banks must pay conpensation in case of delayed credit of ECS funds to beneficiaries/customers. |
THE ECONOMIC TIMES (page 1) |
8/4/2005 |
FOREIGN TRADE POLICY TO GET CRACKING ON PENDING
SCHEMES Foreign Trade Policy amendments, which aim at strengthening the country's export thrust to increase India's
share in global exports to $150bn by "09. While the Duty Entitlement Export Promotion Scheme is all set to continue in '05-06,
Commerce and Industry Minister Kamal Nath is expected to accounce the implementation of the Target Plus scheme, the formation
of an export promotion council for the service sector and liberalise the export promotion capital goods scheme for the farm
sector. |
THE ECONOMIC TIMES [pg1] |
7/4/2005 |
FII Cap in PSU banks may be raised to 24%
The government is studying a proposal to rais the foreign institutional investment limit in public sector banks to 24% from
the current 20%. |
BUSINESS STANDARD [pg 17] |
7/4/2005 |
IDRBT setting up banking, finance e-security
monitor In a step towards securing the Indian Banking and Financial Sector, the Institute for Development & Research
in Banking Technology is setting up the Indian Financial Computer Emergency Response Team [Inficert] |
THE FINANCIAL EXPRESS (Page 12) |
6/4/2005 |
RBI ISSUES 2 STAGE GUIDELINE FOR SECURITISATION
OF ASSETS The assets of a bank, after their transfer to the special purpose vehicle (SPV) should stand completely
isolated from the originator, even under backruptacy, says the draft guidelines on securitisation of standard assets unveiled
by Reserve Bank of India. |
BUSINESS LINE (Page 6) |
5/4/2005 |
BANKING SERVICES PUBLIC UTILITY FOR SIX MORE
MONTHS The services in the banking industry have been declared as a public utility under the Industrial Disputes Act,
1947 for another six months with effect from March 30 2005 in the larger public interest, according to an official release.
The Ministry of Labour, in a notification issued here, said the services in this industry were earlier declared public
utility for six months from March 30, 2004 and subsequently extended for another six months. Consequently, all bank employees
would be required to give a six weeks' advance notice of a strike so that conciliatory proceedings can be started. During
the conciliatory proceedings and seven days after thier completion, the employees cannot go on strike, the release said. |
THE FINANCIAL EXPRESS (PAGE 16) |
5/4/2005 |
MAKEOVER FROM BANKING TO FINANCIAL SERVICES
SOON Banks are set to undergo a transition from banking to financial services say the Reserve Bank of India's Deputy
Governor V Leeladhar. In an address at National Institute for Bank Managment Mr Leeladhar said, banks are uniquely poised
to broaden their product lines into the complete offerings that would go under the rubricfinancial services. |
THE FINANCIAL EXPRESS (Page 1) |
4/4/2005 |
OFFSHORE BANKING UNITS IN A BIND Offshore
banking units (OBUs) floated by banks in special economic zones (SEZ)with much fanfare a couple of years ago are proving to
be the proverbial mill sonte around their neck. Stringent restructions imposed by the Rserve Bank of India on lending
have resulted in these units chasing the same set of borrowers. Businesses in SEZs are taking advantage of this situation
and playing one bank against the other to hammer down the interest rate on loans. |
THE FINANCIAL EXPRESS (Page 1) |
2/4/2005 |
RBI OKAY MERGER OF IDBI BANK WITH IDBI Reserve
Bank of India on Friday approved the amalgamation of the IDBI Bank Ltd with IDBI Ltd. The merger will come into effect from
Saturday. |
THE FINANCIAL EXPRESS (Page 1) |
2/4/2005 |
PAN RULE HURTS CREDIT CARD SALES The
number of new credit cards issued by banks has gone down by almost 25% over the last couple of months. Reason: the Central
Board of Direct Taxes (CBDT) has dropped a mombsheel by making it mandatory for prospective cardholders to give their Permanent
Account Number/Attach Form 16 with their application forms. |
THE FINANCIAL EXPRESS (Page 20) |
2/4/2005 |
RBI WANTS CORPORATES TO DISCLOSE OFF-BALANCE
SHEET TRANSACTIONS Corporates, like banks, should disclose mark-to-market (MTM) positions of their off-balance sheet
transations such as forward contracts, interest rates derivaties said Usha Thorat, Executive Director, Reserve Bank of India.
|
THE ECONOMIC TIMES (Page 6) |
2/4/2005 |
CODE OF CONDUCT SOON FOR CREDIT CARD ISSUERS
Unsolicited credit cards, bloated bills, hidden charges, so-called freebies, telemarketing by direct selling agents
pushing credit cards that you don't want - all very familiar and unpleasant experiences of many. But perhaps not for long
with a "fair practicer code" coming into play soon. |
The Financial Express{page12} |
31/3/2005 |
IBA MULLS HIKE IN TRANSACTION TAX THRESHOLD
TO RS.50,000 Indian Banks' Association plans to take up with the Centre the issue of the proposed tax on cash withdrawals
and may recommend to hike the threshold limit to Rs. 50,000 from the planned Rs.10,000/-. IBA is exploring options of sending
a delegation or making a presentation to the Centre on the administrative hassles and rise intransations cost involved in
the proposed tax. |
The Financial Express{page12} |
31/3/2005 |
RBI HIKES WMA FOR STATES BY 9.77% TO RS 8,935
CRORE The Reserve Bank of India has raised the aggregate normal ways and means advances (WMA) of the state governments
by 9.77% or Rs. 795 crore, to Rs. 8,935 crore from the pressent limit of Rs. 8.140 crore. WEMA is an overdraft facility that
state governments can avail of from the RBI for a short period. The minimum WMA limit is Rs. 50 crore for any state. |
The Financial Express{page12} |
31/3/2005 |
FORM ADVISORY COMMITTEES TO MONITOR AGRI CREDIT
FLOW The Reserve Bank of India on Wednesday has asked banks to form advisory committees to monitor the flow of credit
to agriculture and related activities from the banking system. This is part of the accepted recommendations of the committee
set up under the chairmanship of Prof V S Vyas which had prepared a report on raising the flow of credit to the agriculture
sector. |
THE FINANCIAL EXPRESS (PAGE 3) |
30/3/2005 |
RBI ALLOWS UCBs TO AMORTISE PROVISIONS TO
HTM CATEGORY The Reserve Bank of India has allowed scheduled Urban Cooperative Bank to amortise the provisioning requirement
arising on account of shifting of securities from held for trading (HFT)available for sale (AFS) categoies to the held to
maturity (HTM) category over a maximum five years commencing from the current fiscal,with a minimum of 20% of such amount
each year. |
BUSINESS STANDARD (1) |
29/3/2005 |
CREDIT POLICY Reserve Bank of India
Governor Y V Reddy will unveil the annual credit policy statement for 2005-06 on April, 28,2005. |
THE FINANCIAL EXPRESS (Page 10) |
29/3/2005 |
RBI NORMS ON CLOSURE OF RURAL BRANCHES OF
PSU BANKS SOON The Reserve Bank of India would formulate a comprehensive guideline on rural branches. There is pressure
on it to come up with avilable policy by which public sector banks can shut loss making rural branches. |
BUSINESS STANDARD (14) |
29/3/2005 |
BANKS CAN'T USE IFR TO SET OFF TREASURY LOSSES
The Reserve Bank of India is unlikely to allow commercial banks to use the investment fluctuation reserve for setting
off treasury losses while preparing the profit and loss account for 2004-05. |
THE FINANCIAL EXPRESS(PAGE 11) |
24/3/2005 |
COMPREHENSIVE AMENDMENT TO BANKING REGULATION
ACT ON CARDS The Finance Ministry is in the process of bringing in a comprehensive amendment to the Banking Regulation
Act. A bill for this purpose is likely to be introduced in Parliament after the recess. |
THE FINANCIAL EXPRESS(PAGE 11) |
24/3/2005 |
SEPARATE REGULATOR FOR CO-OP BANKS ON ANVIL
The finance ministry is considering setting up a separate regulator for the co-operative banks. There could also be
some structural re-organisation of these banks with a view to making them financially stable. At present, the co-operative
banks come under the aegis of the Reserve Bank of India. A consultative committee comprising senior memebers of Parliament
is in favour of having a separte regulator for the co-operative banks. |
THE ECONOMIC TIMES (Page 18) |
23/3/2005 |
RBI TO ASSIST NBFCs' EXIT FROM PUBLIC DEPOSITS
The Reserve Bank of India has said that it would assist NBFCs which voluntarily move out of public deposits, by imparting
training, technology support among other things. The RBI Governor Y V Reddy who met the representatives of the NBFC industry
to discuss the roadmap for the sector, has indicated this. |
THE FINANCIAL EXPRESS(PAGE 22) |
23/3/2005 |
IBA SEEKS SEPARATE SECURITISATION LAW FOR
WIDER APPLICATION The IBA is pushing for a separate legislation for securitisation so that financial assets held not only
by banks but also by any person or a non-banking entity can be securitised. A separate law having wider application is being
sought as under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI)
2002, only banks and financial institutions can securitise their assets. |
BUSINESS STANDARD (1) |
22/3/2005 |
PSU BANK MERGERS PUT ON HOLD The Government
has put on hold all proposals to merge state owned banks. The Prime Minister's Office is believed to be unwilling to give
its nod to mergers at this point of time, keeping in mind political ramifications. The Left parties have been opposing bank
mergers. The PMO's decision, in effect, deals a blow to consolidation in the banking industry. |
FINANCIAL TIMES |
22/3/2005 |
DERIVATIVES FIXING PLAN Leading banks
in the internatinal credit derivatives market will today launch a regular weekly "fixing" for the first time to give investors
an independent benchmark of prices. |
BUSINESS LINE (PAGE 1) |
18/3/2005 |
CHIDAMBARAM PROMISES GOOD NEWS ON CASH WITHDRAWAL
TAX The Finance Minster Mr P Chidambaram, on Thursday hinted at a softening of the Budget proposal to impose 0.1 per
cent tax on bank cash withdrawals of Rs. 10,000 and more in a single day. |
BUSINESS LINE (Page 6) |
17/3/2005 |
NBFCs DISCUSS GROWTH ISSUES WITH RBI Members
of the Finance Industry Development Council on Wednesday met the Governor of RBI, Dr Y V Reddy and briefed him about the problems
facing the non-banking finance companies. |
THE FINANCIAL EXPRESS(PAGE 11) |
17/3/2005 |
BANKING BILL IN CURRENT SESSION: RAKESH MOHAN
A bill to amend the Banking Regulation Act would be introduced in Parliament soon, economic affairs secretary Rakesh
Mohan has said. The Bill, among other things, would empower the Reserve Bank of India to trim mandatory limits on statutory
liquidity ratio (SLR) for commercial banks. |
THE ECONOMIC TIMES (page 1) |
15/3/2005 |
FIs, PSU BANKS TAKE A KNOCK ON DERIVATIES
A few financial instituitions and state owned banks have taken a hit on derivaties exposurers with their bets on overseas
interest rates going wrong. These institutions had entered into derivatives called "quantos" a sophisticated financial
structure, with a view that the London Inter bank Offering Rate (Libor) an international benchmark rate on dollar deposits,
would not move up. They were proved wong, with the six month Libor rising 200 basis points in the past year. |
BUSINESS STANDARD (PAGE 1) |
11/3/2005 |
PM FOR POLITICAL CONSENSUS ON FISCAL REFORMS
Prime Minister Manmohan Singh today sought a "national political consensus" on the issue of bridging the growing fiscal
deficit, instead of trying out various unpopular austerity measures. |
BUSINESS STANDARD (page 2) |
11/3/2005 |
RBI SETS UP NEW PAYMENT AND SETTLEMENT BOARD
The Reserve Bank of India today constituted a Board for Regulation and Supervision of Payment and Settlement Systems
(BRSPSS) as a committee of its central board. RBI Governor Y V Reddy is the Chairman of the board and deputy governor
V Leeladhar the Vice Chairman. Deputy Governors K J Udeshi and S Gopinath and Central Board Memebers. H P Ranina and N R Narayana
Murthy are members of the board. |
FINANCIAL EXPRESS [pg 14] |
11/3/2005 |
Treasury Managers to meet RBI Governor on
SLR,CRR Treasury Managers of banks and money market participants are planning to meet the Governor of RBI, Y V Reddy on
Friday to seek further clarity on the issue of the removal of upper and lower bounds of SLR and CRR as announced by the FM
in budget 2005-06. |
BUSINESS STANDARD (Page 14) |
10/3/2005 |
BANKS MAY SEE CAPITAL PLUNGE POST BASEL-II
Commercial banks are likely to see a drastic reduction in their capital with the implementation of the stringent Basel
II norms in 2006. Banking analysts expect two-three per cent of their capital adequacy ratios (CAR) to be shaved off under
the new norms. The Reserve Bank of India has announced that banks will have to adopt the standardised approach for credit
risk and basic indicator approach for operational risk with effect from March 31, 2007. |
BUSINESS STANDARD (PAGE 14) |
10/3/2005 |
RBI TELLS IDBI TO REWORK PRIORITY LENDING
STRATEGY The Industrial Development Bank of India proposal to the Reserve Bank of India seeking priority sector status
for its outstanding infrastructure lending portfolio - and thus an exemption from priority sector lending norms - has met
with resistance at the apex bank. |
THE FINANCIAL EXPRESS (Page 1) |
7/3/2005 |
MOVE TO DELINK FDI NORMS FROM INSURANCE ACT
The Finance Ministry is looking at a proposal to delink the foreign direct investment limit norms from the Insurance
Act when it is amended. This move would empower any future government to increase the FDI limit through an executive order
wihtout taking the issue to Parliament. |
BUSINESS LINE (Page 8) |
7/3/2005 |
BANKING ON BASEL -II With the Reserve
Bank of India issuing draft guidelines, the stage is set for banks to migrate to a new risk management regime under the Basel
-II norms. The deadline is March 31, 2007 and for one year before that banks are expected to do a paralle run to finetune
their systems and procedures. Top bankers say the transition may be relatively smooth, given that they have been sensitised
to the needs of a more sophisticasted risk-containment scheme thanks to the Basel-I accord and the various regulatory measures
introduced by the RBI in its wake. Most banks will require additional capital, though few have been a ball park figure. While
reworking their capital adequacy requirements under the new guidelines, banks will have to outlay more capital under certain
heads and less under some other categories. This arises out of the essential difference between Basel I and II approaches.
|
BUSINESS LINE (Page 6) |
5/3/2005 |
BANKS DIRECTED TO DISCLOSE DERIVATIVES EXPOSURE
The Reserve Bank of India has asked commercial banks to disclose thier risk exposure in derivaties in their balance
sheets from March, 2005. The disclosure format includes both qualitative and quantitative aspects and has been devised
to provide a clear picture of the exposure to risks in derivatives, risk management systems, objectives and policies, the
central bank has said in a notification. |
BUSINESS LINE (PAGE 6) |
5/3/2005 |
BANKS NEED RS. 11,900 CRORE MORE CAPITAL TO
MEET BASEL NORMS: ICRA Indian Banks, notably state owned entites, will need Rs. 11,9000 crore more capital for meeting
operational risks along, and may raise Rs. 18,000 - 20,000 crore in the medium term when they implement Basel II capital norms
from March 31, 2007, ICRA said on Friday. |
BUSINESS LINE (Page 3) |
3/3/2005 |
JALAN SEES STABLE INTEREST RATES The
official interest rates will be stable in the next few months even though federal borrowing is set to rise, as inflation has
slowed and foreign capital inflows are strong, the former RBI Governor, Mr Bimal Jalan has said. |
THE ECONOMIC TIMES (page 1) |
3/3/2005 |
FM RULES OUT FRINGE CUT, BUT TRIM'S OKAY Finance
Minister P Chidambaram on Wednesday gave a clear indication of reviewing the Budget proposal to tax cash withdrawals from
banks. The Government will also take a relook at various categories of expenses proposed to be covered under fringe benefits
offered by employers. However, at the same time he stood by his Budget proposals to being into the tax net perquisites offered
to employees, which are of private nature, as also devise anti evasion measures. |
BUSINESS LINE (PAGE 1) |
2/3/2005 |
CHIDAMBARAM PLANS TO REWRITE IT ACT, RAISE
FDI IN INSURANCE The Finance Minister Mr P Chidambaram, is planning to rewirte the income-tax law. Also high on his
agenda is an ombibus insurance law that would help the Government to raise the FDI limit in the insurance sector from 26 per
cent to 49 per cent. The proposal to hike FDI in insurance has not been put off. We will have to introduce a Bill. Some
other amendments are required to both the Insurance Act 1938 and the IRDA Act 1999. All amendments would come together, he
said in an exclusive interview to Business Line, a day after presenting the Union Budget for 2005-06. |
THE ECONOMIC TIMES (page 10) |
2/3/2005 |
V P SHETTY TO BE IDBI'S CMD, KHANDELWAL TO
HEAD BANK OF BARODA The Government today notified VP Shetty as Chairman and Managing Directo of IDBI and A K Khandelwal
as CMD Bank of Baroda. |
THE FINANCIAL EXPRESS (Page 9) |
2/3/2005 |
RBI TO PUBLICISE DETAILS OF PENALITY REPORTS
ON UCBs The Reserve Bank of India has decided to place the details of the levy of penalty and actions taken by it
on the basis of inspection reports or other adverse findings against urban co-operative banks in the public domain, in order
to protect the interests of the members and depositors. |
BUSINESS STANDARD [pg 1] |
2/3/2005 |
Bank tele-marketers could soon be a tring
of the past-Not interested in a product?They won't call you for next 3 months The IBA new guidelines for direct selling
agents[DSA]suggest that a customer who shows no interest in a particular offer should not be disturbed for another three months.
|
BUSINESS STANDARD (1) |
2/3/2005 |
FM MAY RE-EXAMINE TAX ON SALES PROMOTION,
PUBLICITY Finance Minsiter, P Chidambaram said today he would review whether employers would have to pay tax on sales
promotion and publicity under the "fringe benefit" tax. |
BUSINESS LINE [pgs 16,17&18] |
1/3/2005 |
Finance Minister's Speech The Big
Picture : Social Sector thrust, A case for more FDI, Emphasis on infrastructure projects, Budget estimates for 2005-06, Investment
focus on agriculture, Banking Sector: Reform Road map. |
BUSINESS LINE [pg 21] |
1/3/2005 |
Bankers welcome nod for preference shares,
seek clarity Banks have welcomed the Union Budget proposal to all them to raise capital through preference shares
in the Union Budget 2005-06.According to the budget, banking companies have been allowed to issue preference shares since
preference share capital can be treated as regulatory capital under specified circumstances as per the Basel Norms. |
ECONOMIC TIMES [pg 15] |
1/3/2005 |
Weak Private Banks can get foreign muscle
Foreign banks going long on India can rejig their operations and private banks, particularly the weaker ones, could change
hands. Foreign banks will be allowed to form 100% subsidiaries after chipping in Rs.300 crore, convert branches into subsidiaries
and acquire local private banks which have slipped into quagmires. |
ECONOMIC TIMES [pg15] |
1/3/2005 |
Banks can now unlock funds and let them rock
Banks will have a new way to raise long term capital and a greater choice to put money where it fetches a better return. Legal
reforms are under way which could unlock funds tied up as cash and low yielding governtment bonds. |
FINANCIAL EXPRESS [pg 8] |
28/2/2005 |
Extracts from epoch-making budgest presented
over the years that mark defining moments in India's economic history 1947 - Dawn of an era : 1997 - The dream budget |
BUSINESS STANDARD [pg 1] |
28/2/2005 |
In last 10 yrs. sensex rose six times on budget
day The bulls have notched up a score of 6-4 over the last 10 budgets. In the past decade, the sensex rose on budget day
six times and fell four times. |
THE FINANCIAL EXPRESS (Page 16) |
26/2/2005 |
IBA PLANS PENSION PLAN FOR PSB STAFF The
Indian Banks' Association is working out a new pension scheme for employees of public sector banks of the country. The
IBA Chairman, P S Shenoy informed the United Forum of Bank Unions (UFBU) about the decision at a bipartite meeting held in
Mumbai recently. |
BUSINESS LINE [PG 1] |
25/2/2005 |
Scrutiny of self-assessed excise returns likely
from April 1 Come April 1 and self assessed excise returns may come under scrutiny of the revenue dept. The coverage of
selective audit under the Cenvat credit rules |
BUSINESS LINE (Page 3) |
25/2/2005 |
BUDGET SESSION BEGINS TODAY The Budget
session of Parliament, beginning Friday, will be dominated mainly by economic issues such as Rail Budget and the Union Budget
for 2005-06 in the first few days and discussion on the motion of thanks of the President's address. |
THE FINANCIAL EXPRESS (Page 1) |
24/2/2005 |
SEBI TIGHTENS MARGINS IN CASH SEGMENT Tightening
the margining requirement for the cash market at a time when equity markets are booming, the Securities and Exchange Board
of India has asked all stock exchanges to collect the Value at Risk margin upfront and Mark to Market margin on the next day
before the beginning of trading. These changes in the collection of margins will be effective from May 18, 2005. |
BUSINESS LINE (PAGE 1) |
23/2/2005 |
GOVT CLEARS AUTONOMY PACKAGE FOR PSU BANKS
The tussle in the banking space would now be on an equal footing with the Ministry of Finance today clearing a new
autonomy package for public sector banks aimed at creating a level playing field for state owned banks with their private
sector banks. Besides allowing PSU banks the freedom to decide on virtually the entire gamut of human resources issues,
the package permits them to undertake acquisitions of companies or business, close or merge unviable branches, open overseas
offices, set up subsidiaries, take up a new line of business or exit an existing business - all without the need to seek prior
Government approval. |
THE FINANCIAL EXPRESS (Page 1) |
18/2/2005 |
RBI CLIPS PUSHY AGENTS' WING Direct
Sales Agents marketing cards, be they of the credit, debit, smart or gift kind, will henceforth be required to conduct customer
due diligence (CDD) by applying the "Know Your Customer" principle on prespective customers. Hitherto, only the bank issuing
the plastic card was required to carry out the CDD. The Reserve Bank of India has now extended this principle to DSAs
employed by banks. Given the fact that many credit card holders are not even account holders of the issuing banks, the DSAs
have been asked to conduct the CDD by applying the "KYC" norm themselves. |
THE ECONOMIC TIMES (page 1) |
16/2/2005 |
BANKS TO SET ASIDE MORE FUNDS FOR MKT EXPOSURE
Banks here will have to provide an additional risk weight of 2.5% on equity investments to capture market risk, adhering
to Basel II's higher capital norms. All Banks will have to adopt the new standardised approach for credit and operational
risks with effect from March 31, 2007. |
THE FINANCIAL EXPRESS (Page 14) |
16/2/2005 |
SOME BANKS MAY BE ALLOWED TO SHIFT TO IRB
APPROACH IN RISK The Reserve Bank of India on Tuesday said 'at a minimum' all banks in the country will have to adopte
'standarised approach' for credit risk and basic indicator approach for operational risk with effect from March 31, 2007.
|
THE FINANCIAL EXPRESS (Page 1) |
15/2/2005 |
HOTELS, TOURISM, AGRI & HOUSING TO GET
INFRASTRUCTURE TAG The long drawn demand of providing sectors like agriculture, tourism, housing, hotel and hospitals
the infrastructure tag may just turn out to be a reality in the forthcoming Budget 2005-06. |
THE FINANCIAL EXPRESS (Page 1) |
15/2/2005 |
SENSEX BREACHES 6,700 IN PRE-BUDGET RALLY
It's being called the pre Budget effect. Fresh inflows from foreign institutional investors and the expectation of
a friendly Budget lifted the benchmark 30 share BSE Sensex to its new all time intra-day high of 6,719.20 on Monday, as investors
bought into technology and banking stocks. This is the first time ever that the Sensex has crossed the 6,700 mark. |
BUSINESS LINE (PAGE 1) |
14/2/2005 |
BANKING SET TO BE UNLEASHED The Budget
is expected to focus on the financial sector in big way. Sources close to the developments said the government was expected
to outline its plan for raising the foreign direct investment in private banks to 74 per cent and sort out the voting rights
issue, announce guidelines for mergers and acquisitions and a package for managerial autonomy for public sector banks. |
THE ECONOMIC TIMES ([AGE 2) |
11/2/2005 |
RBI GUIDED BANK M&As TO GET TAX BREAKS
NOW Amalgamations in the banking sector carried out under a scheme prepared such as the one involving Oriental Bank
of Commerce - are all set to be eligible for tax breaks now. The Central Board of Direct Taxes has agreed to carry out
necessary amendments in the Income Tax Act. These changes have been provided for banks, which take over another bank under
special conditions - where a moratorium is declared on the operations of a bank and a scheme for merger is sanctioned by the
Government. Changes are also set to be made for extending tax breaks available under Section 72 (A) of the Income Tax
Act to a bank taking over a financial institution. This will help the government push through, for instance,the merger of
the troubled financial institution IFCI with a bank. |
BUSINESS LINE (Page 6) |
11/2/2005 |
PAYMENT AND SETTLEMENT SYSTEM BOARD VERY SOON
The RBI Deputy Governor, Mr. V Leeladhar, today said that the proposed Board for Payment and Settlement Systems would
be set up in the next few weeks. Telling to reporters at the sidelines of a banking technology seminar organsied by the
Indian Banks' Association, here today, Mr Leeladhar said the board would function as an autonomous body. |
BUSINESS LINE (Page 6) |
11/2/2005 |
RBI GROUP TO PROBE PRACTICES OF RECOVERY AGENTS
The Reserve Bank of India has set up a working group to look into the alleged "strong arm" business practices of the
recovery agents engaged by commercial banks to pursue the defaulters of loans for repayment. According to the RBI Deputy
Governor, Mr V Leedadhar, the Committee would look into details of the activities of agents and submit suggestions including
the regulatory framework for the card business of commercial banks. |
THE FINANCIAL EXPRESS (Page 1) |
11/2/2005 |
BANK VOTING RIGHTS BILL LIKELY IN BUDGET SESSION
The government is likely to introduce a bill during the Budget session to align voting rights in the banking sector
with the shareholding pattern. It is also considering introducing another Bill in the session to gradually divest states
of the power to regulate cooperatives to bring them solely under the Reserve Bank of India. Currently both RBI and states
regulate cooperative banks. |
THE ECONOMIC TIMES (page 1) |
9/2/2005 |
RBI TAKES STOCK, ALLOWS BANKS TO PLACE BIGGER
BETS ON THE STREET The plan to allow banks greater exposure to the capital markets is now on course, with HDFC Bank
being the first off the block. The bank has obtained the approval of the Reserve Bank of India to raise its exposure to
the stock markets from 5% of outstanding advances at the end of the previous financial year to close to 10%. This is in line
with the government's announcement of '04 to allow banks with a strong risk management system greater exposure to the markets.
|
BUSINESS LINE (PAGE 1) |
9/2/2005 |
GOVT STUDYING SBI ACT CHANGE FOR TAKEOVERS,
MERGERS The Government is considering amending the SBI Act and the SBI (Subsidiary Banks) Act to allow the State Bank
Group take over public sector banks, other banking companies and regional rural banks. The amendments under considertion
would also facilitate the merger of SBI and its seven subsidiary (associate) banks. |
THE FINANCIAL EXPRESS (Page 1) |
8/2/2005 |
DO NOT MAKE UNSOLICITED CALLS: SC NOTICE TO
TELCOS. The Supreme Court on Monday issued a notice to the Government, Telecom Regulatory Authority of India, Telecom
service providers and Private and Foreign Banks on a Public Interest Litigation which sought a law to ban unsolicited calls
- promotions for credit cards, loans, new phone connections etc., A similar law in the US had hit headlines a few month ago.
|
THE FINANCIAL EXPRESS (Page 10) |
5/2/2005 |
RBI TO PREPARE DOCUMENT ON COOP BANKS' REVIVAL
BY MARCH The Reserve Bank of Idnia is preparing a "Vision Document" aimed at rejuvenating the co-operative banking
sector, which is expected to be ready by the end of next month. This document will serve as a comprehensive roadmap for
the functioning of co-operative banks in India and also address the demands of small banks for a set of differential prudential
guidelines. |
BUSINESS STANDARD [PG1] |
5/2/2005 |
PSU banks' payout In a move aimed
at shoring up the centre's revenue receipts, the finance ministry has asked alll nationalised banks to pay interim dividend. |
THE ECONOMIC TIMES (page 1) |
4/2/2005 |
BANKS MAY GET TO INVEST 10% OF DEPOSITS IN
STOCKS The Ministry of Finance is considering a move to increase the participation of commercial banks in the equity
market. As per the plan prepared by the MOF , in collaboration with the RBI, there could be an increase in the limit of banks'
participation in equities from 5% to 10% of incremental deposits. |
BUSINESS LINE (PAGE 1) |
4/2/2005 |
BANKS MAY BE ALLOWED TO TRADE IN COMMODITIES
In what would give a huge boost to commodity futures trading, the Government is all set to allow banks to trade in
commodity dervatives. The Reserve Bank of India, according to sources, has given its nod to amend Sections 6 and 8 of
the Banking Regulation Act 1949, which prohibit banks from dealing in commodities. The proposed amendment to the Act,
enabling banks to deal with commodities and their derivatives, is likely to feature in the forthcoming Union Budget. |
THE FINANCIAL EXPRESS (Page 14) |
3/2/2005 |
PSBs' PROFIT DECLINE MORE THAN PRIVATE BANKS'
IN Q3 The decline in profits of public sector banks is higher than that of private sector banks during October- December,
2004. A comparison between 14 private sector banks and 18 public sector banks shows that private sector banks' profit
decline is lower compared to the that of PSBs during the third quarter. |
BUSINESS LINE (Page 6) |
3/2/2005 |
BANKS TOLD TO REVIEW RISK AUDIT SYSTEM Pointing
towardss deficiencies in risk-based internal audit in banking entities, RBI has asked banks to expeditiously review their
audit system and ensure compliance with guidelines at an early date. |
BUSINESS LINE (Page 6) |
3/2/2005 |
RBI PRESCRIBES NORMS FOR MERGER OF UCBs The
Reserve Bank of India has said that it will consider proposals for merger and amalgamation among urban co-operative banks
when the net worth of the acquired bank is positive and the acquirer bank assures to protect entire deposits of all the customers
of the acquired bank. |
THE FINANCIAL EXPRESS (Page 12) |
2/2/2005 |
FM AGAINST REGULATOR IN MICRO-CREDIT The
best way for lending institutions to promote micro credit disbursals is to use intermediaries as these are able to identify
more effectively with the needs of the borrower, better than banks and financial institutions, said Finance Minister P Chidambaram
while giving away award to successful mocro-entrepreneurs,on Monday. |
THE FINANCIAL EXPRESS (Page 18) |
2/2/2005 |
LEGISLATION TO BEING BANKING SECTOR OUT OF
CVC AMBIT LIKELY The Union Government is likely to place a bill in Parliament bringing the banking industry totally
out of the ambit of Central Vigilance Commission. Union Finance Minstry sources told FE that the proposal follows suggestion
by the Indian Banks' Association in this regard. In its recent report on "Vision 2010" IBA suggested that the banking sector
should be brought totally out of CVC ambit in order to allow the banks to function independently and judiciously. |
THE FINANCIAL EXPRESS (Page 10) |
2/2/2005 |
RBI FURTHER SIMPLIFIES FEMA RULES The
Reserve Bank of India has put in place procedures for compunding of contravention under Foreign Exchange Management Act (FEMA)
with a view to provide comfort to the citizens and corporate community by minimising tranctions costs, while taking severe
view of willful, malfide and fraudulent transactions. The Centre in consultation with RBI has amended the foreign exchange
rules, whereby the compounding process would be subject to the direction control and supervision of the governor of RBI. |
THE ECONOMIC TIMES (Page 15) |
1/2/2005 |
CSO RAISES FY04 GDP GROWTH FIGURE TO 8.5%
The Central Statistical Organisation (CSO) on Monday revised India's gross domestic product (GDP) growth figures upwards
for 03-04 to 8.5%. In its quick estimates of the national accounts, the alteration is from 8.2% in the revised estimates released
in June 2004 and 8.1% project in the advance estimates of February '04. A significant part of the revision could be attributed
to the upward correction of agriculture sector growth to 9.6% from 9.1% considered in the revised estimates. Agriculture as
an economic activity recorded a 10.6% growth. |
THE FINANCIAL EXPRESS (Page 18) |
29/1/2005 |
PSBs SHOULD NOT MAKE TAKOVER STATEMETNS NOW:
HOUSE PANEL The parliamentary committee on banking wants different public sector banks to restrain from making any
statements on thier takeover plans, till the bill allowing amalgamation of such banks gets the Parliament approval. |
BUSINESS LINE (PAGE 1) |
29/1/2005 |
PBS OFFICIALS MAY BE OUT OF DVC, CBI PURVIEW
The public sector banking industry might not be the same very soon with the proposed new autonomy package promising
to usher banks into a new world of freedom. Some of the issues under the Government's consideration are removing bank
officials from the purview of the Central Vigilance Commission and Central Bureau of Investigation, freedom to determine compension
packages for specailised staff including differential salary package and a go-ahead to the acquisition of private companies.
|
THE FINANCIAL EXPRESS (Page 1) |
29/1/2005 |
EQUITY DOORS OPEN FOR PROVIDENT FUNDS In
a big push to the stock markets, the government on Friday allowed pension funds, non-government provident funds to invest
upto 5% of their corpus directly inequity and another 10% inequity-linked mutual funds or debt instruments of private companies.
|
THE ECONOMIC TIMES (page 1) |
28/1/2005 |
BANKS RAISE THE RATE BAR ON FDs Banks
are waging a rate war to attract deposits. Interest returns, well above the rack rates, are being offered to allure corporates
and bulk depositors, with the result that the return on short-term deposits is outstripping the interest on three year fixed
deposits. On Thursday, a State Bank of India associate accepted a bulk deposit of Rs. 1,500 crores from one of the biggest
provident fund managers for 180 days at a rate of 6.3%. The same bank offered 6.5% on a Rs. 100 crore deposit for 123 days.
|
THE FINANCIAL EXPRESS (Page 1) |
28/1/2005 |
GDP TO GROW 6.7%: NCAER NCAER has
projected economic growth of 6.6 to 6.7% this fiscal but said revenue deficit seems a "bit out of control" |
THE FINANCIAL EXPRESS (Page 15) |
25/1/2005 |
RBI TO DELINK GUARANTEE OF STATE BACKED LOANS
FOR PRUDENTIAL NORMS The Reserve Bank of India has decided to delink the requirement of invocation of guarantee for
asset classification and provisioning in respect of state government guaranteed exposures (advances and investments) and subject
them to the same norms as applicable to exposures not guaranteed by the state governments in the case of state and district
central co-operative banks. |
BUSINESS LINE (PAGE 1) |
24/1/2005 |
NEW AUTONOMY PACKAGE FOR PSU BANKS ON CARDS
A fresh autonomy package for public sector banks is in the works, this time around seeking to provide a high degree
of freedom to the board of directors on operational matters. The corporate governance linked package could include greater
freedom to the boards on opening of branches, restructuring of operations including closure of loss making businesses and
opening of new lines of business. |
THE FINANCIAL EXPRESS(PAGE 5) |
24/1/2005 |
BANKS MUST CLOSELY MONITOR HIGH RISK ACCOUNTS:
RBI Banks should closely monitor the accounts of high networth individuals, non government organisations, politically
exposed persons, closely held companies, trusts charities and firms with sleeping partners as they fall in the high risk category,
said Reserve Bank of India, Chief General Manager, Prashant Saran. The Indian Banks' Association has formed a working
group to draw up a model code for banks to enable them to comply with customer acceptance policy in matters regarding money
laundering. |
THE FINANCIAL EXPRESS (Page 4) |
20/1/2005 |
LEFT BACKS FM's BANK CONSOLIDATION PLAN The
left parties conveyed their concerns over banking sector reforms to Prime Minster Manmohan Singh on Wednesday over a breakfast
meeting. The discussions although general in nature, focused mainly on reforms in the banking sector. However, both sides
will meet on February 1 when the Left parties will present their budgetary wish list to the government. |
BUSINESS STANDARD (1) |
20/1/2005 |
BANK REFORMS GET LEFT NOD The Government's
reforms initiative received a boost today with the Left parties giving their nod to restructuring the banking sector and the
sale of a 5 per cent stake in Bharat Heavy Electricals Ltd through public offcer. |
THE ECONOMIC TIMES (page 6) |
19/1/2005 |
RBI DOES A DRESS REHEARSALL FOR FISCAL RESPONSIBILITY
ACT ERA The Reserve Bank of India Governor Y V Reddy today held meetings with a cross section of money market participants
to prepare them for a post-Fiscal Responsibility Act Market. The FRA, which is aimed at reducing the Government deficit,
has huge implications for the bond market where the government is the biggest issuer. |
THE FINANCIAL EXPRESS(PAGE 8) |
19/1/2005 |
12th FINANCE COMMISSION FOR CAP ON INTEREST
RATES Concerned over poor financial health of states, the 12th Finance Commission is understood to have suggested
a cap on interest rates on loans given by the Centre to States. The panel had taken a very liberal view on debit as all
states, barring a few like Tamil Nadu, had a difficult fiscal situation, official sources told PTI. |
THE ECONOMIC TIMES (page 6) |
18/1/2005 |
RBI MAY MAKE REPORTING MANDATORY FOR ALL CP
DEALS ON NDS In a move to deepen the market and improve pricing the Reserve Bank of India may make it mandatory for
issuers to report all commercial paper deals on the Negotiated Dealing System (NDS) platform. This was indicated by RBI Deputy
Governor Shyamala Gopinath at a seminar on "Strengthening the CP Market" on Monday. |
BUSINESS LINE (PAGE 1) |
18/1/2005 |
DOUBTS OVER ANNUAL CREEPING ACQUISITION PROPOSAL
With the Finance Ministry- RBI combine busy drawing the final lines on the FDI roadmap that is to be dovetailed with
the ownership guidelines in private banks, here is a sneak preview of what the cartographers might have in store for the investing
community. Accordingly to official sources, the proposal to allow staggered annual creeping acquisition of 10 per cent
of the paid-up capital of a private bank by foreign banks is unlikely to go through as there are fears that it might lead
to manipulation of shares of the investee bank. |
BUSINESS STANDARD (1) |
17/1/2005 |
PRIVATE BANK NORMS The Reserve Bank
of India is expected to release the second draft guidelines on ownership in private banks early this week. RBI Governor Y
V Reddy on Saturday met Finance Minister P Chidambaram in Delhi to give final touches to the guidelines. |
BUSINESS STANDARD (Page 11) |
17/1/2005 |
FM TO SPEED UP PROMOTION PROCESS AT PUBLIC
BANKS The finance ministry is working on a plan to speed up the process of elevation of executive directors (ED) to
the post of Chairman & Managing Director in public sector banks. This is for filling a slew of vacancies which will be
created at the top in the banking industry over the next few months. Currently, an ED needs to put in a minimum of one
year in order to be considered for the post of Chairmanship. The finance ministry is planning to reduce the minimum period
to six months. |
BUSINESS LINE (PAGE 1) |
13/1/2005 |
REDDY MOOTS CAPPING FII INFLOWS Dr
Y V Reddy, Governor, Reserve Bank of India, today called upon the Government to have an option to impose a ceiling on FII
inflows or even taking them. However, he later clarified that the RBI was not in favour of imposing such a ceiling at
this stage and that the effectiveness of taxes was arguable. |
The Hindu Business Line(page 6) |
11/1/2005 |
'Customer want more personalised ATM services'
BANK customers in India expect more personalised services from ATMs, according to a recent survey conducted by NCR Corp, a
global technology company involved in manufacturing and supply of ATMs and related services in India. |
THE ECONOMIC TIMES (page 6) |
10/1/2005 |
RBI plans to speed up fund transfers NEW
DELHI As part of efforts to speed up fund transfers, the RBI is working on a system to enable encashment of multi-city
cheques in a day or two. Days are not far when a person can transfer funds through the nearby banks ATMs also, a senior RBI
official said. The central banks is also hopeful that the Real Time Gross Settlement (RTGS) facility is available in 500 major
centres in the country by next fiscal from 215 centres now, RBI chief GMR Gandhi said. |
THE FINANCIAL EXPRESS (Page 1) |
10/1/2005 |
Indian Banks likely to get 'national' status
in S'pore Singapore bourse seeks tieups with NSE, BSE The monetary authority of Singapore is considering conferring 'national'status
to Indian banks in Singapore under the India-Singapore comprehensive economic co-operation Agreement (CECA). |
The Financial Express (page11) |
10/1/2005 |
RBI works on policies to build bigger forex
kitty The Reserve Bank of India(RBI) is working on policies to build a higher level of foreign exchange reserves in the
country, which takes into account the anticipated current account deficits and also 'liquidityatrisk', arising from unanticipated
capital movements. |
The Indian Express(page8) |
9/1/2005 |
Card harassment The Reserve Bank of India's
(RBI) initiative in persuading the Indian Banks' Association(IBA) to evolve a code of conduct for credit card issuing banks
is a welcome move. Although RBI has noted the harassment caused by Directo Selling Agents (DSAs) appointed by card issuing
banks, the effort will be further enhanced if IBA calls for public comment before evolving conduct rules. |
The Indian Express(page8) |
9/1/2005 |
Card harassment The Reserve Bank of India's
(RBI) initiative in persuading the Indian Banks' Association(IBA) to evolve a code of conduct for credit card issuing banks
is a welcome move. Although RBI has noted the harassment caused by Directo Selling Agents (DSAs) appointed by card issuing
banks, the effort will be further enhanced if IBA calls for public comment before evolving conduct rules. |
BUSINESS STANDARD (8) |
8/1/2005 |
RBI NOT TO FOLLOW US FED., RULES OUT RATE
HIKE The Reserve Bank of India Governor Y V Reddy today virtually ruled out a rate hike following the footsteps of
the US Federal Reserve. "In the past also when there have been changes in the US Interest rate, it was not followed by
the Central Bank here," Reddy told reporters on the sidelines of Indian Institute of Banking and Finance's Sir Purshotamdas
Thakurdas Lecture delivered by President of US-Based Yale University., Richard C Levin when he was asked whether the Indian
central bank would review the rates in the light of the US rate hike. |
BUSINESS STANDARD (Page 14) |
7/1/2005 |
REDDY SAYS MARKET DYNAMICS TO DETERMINE BANK
MERGERS The Reserve Bank of India will consider merger proposals by public sector banks on the strength derived by
them from their propsoed consolidation. The strength derived and future prospects will be taken into consideration while vetting
merger proposals from public sector banks, RBI governor Y V Reddy said today. |
BUSINESS LINE (PAGE 1) |
7/1/2005 |
ROADMAP FOR FDIHIKE IN PVT BANKS SOON The
Finance Minister, Mr P Chidambaram, has hinted that the roadmap for allowing foreign banks to pick up to 74 per cent stake
in Indian Private Sector Banks would be announced within the next few days. |
THE FINANCIAL EXPRESS (Page 12) |
6/1/2005 |
RBI should fix SSI lending target for banks:house
panel The Parliamentary Committee on banking feels that the Reserve Bank of India (RBI)should fix targets for individual
banks for lending to the small-scale industries (SSI) sector. |
The Financial Express{page12} |
5/1/2005 |
IBA asks banks to provide details to NRIs
on quqke relief Indian Banks' Association(IBA)has asked member banks having overseas branches to provide necessary information
on website for making donation to the PM's National Relief Fund by NRIs and others. "The overseas branches will give publicity
regarding the remittance facility, available to NRIs and others free of charge."IBA said |
FINANCIAL EXPRESS [PG 9] |
4/1/2005 |
FM for "libral" loans to workers in unorganised
sector FM on Monday asked bank officials to be "liberal" in extending credit to workers in unorganised sector. |
BUSINESS STANDARD [PG 14] |
4/1/2005 |
RBI to seek certification for its currency
management system RBI is preparing itself for an ISO certification for its currency management system and has decided to
update the security features of all notes above Rs.100 denomination. |
BUSINESS LINE (Page 6) |
4/1/2005 |
RBI MAY HIKE INVESTMENT FLUCTUATION RESERVE
Public Sector Banks have been quietly sounded about a possible increase in the investment fluctuation reserve from
the current level. Already most of the banks have reached the prescribed IFR threshold of 5 per cent of their respective
investments. The deadline for complying with IFR guidelines is April, 2006. |
Business Standard, Page 1 |
3/1/2005 |
But RBI wary of portfolio funds Reserve
Bank of India(RBI) has expressed reservations about the Finance Ministry's proposal to liberalise the investment limit for
foreign institutional investors (FIIs) in certain sectors. |
BUSINESS STANDARD [pg1] |
3/1/2005 |
Banks,FIs may be allowed to borrow abroad
RBI has initiated a review of its policy relating to external commercial borrowings[ECBs, amid calls for allowing financial
intermediaries to raise debt abroad. |
The Economic Times (Page 5) |
3/1/2005 |
Debt rap:Wilful defaulters can't recast loans
with existing lenders Wilful defaulters won't be able to restructure their debt with existing lenders. A fortnight ago,
RBI directed the Corporate Debt Restructuring (CDR) group not to entertain any company which is categorised as a 'wilful defaulter'
by any lender, irrespective of whether it is a CDR member or not. The CDR is a forum of banks which considers the restructuring
proposal and possible cuts lenders would have to take against an exposure |
BUSINESS STANDARD (8) |
1/1/2005 |
GILTS MANAGEMENT KEY TO BANK RESULTS IN THIRD
QUARTER The financial performance of commercial banks for the third quarter of the fiscal year 2004-05 (October-December
2004) is likely to be a mixed bag. |