Money & Banking
RBI extends Basel III implementation time to 1st April

The move will provide additional time to some banks that need to enhance their capital base in line with the new norms for strengthening the resilience of the global banking system

Mumbai: The Reserve Bank of India (RBI) has extended the date for implementation of Basel III, the global capital norms for banks, by three months to 1 April 2012, reports PTI.

 

"The Reserve Bank of India has rescheduled the start date for implementation of Basel III to 1 April 2013 from 1 January 2013," the central bank said.

 

RBI, however, did not provide reasons behind the rescheduling.

 

The move, experts said, will provide additional time to some banks that need to enhance their capital base in line with the new norms for strengthening the resilience of the global banking system.

 

RBI further said that India will closely monitor the progress on Basel III implementation in other countries, particularly the major ones, who are the members of the Basel Committee.

 

RBI had issued guidelines on the implementation of Basel III capital regulation in India in May this year. These guidelines were to be implemented from 1 January 2013 in a phased manner and were to be fully implemented by March 2018.

 

As per the new global norms, banks will have to hold core capital of at least 7% of risk weighted assets by 2018.

 

In September, RBI Governor D Subbarao had said that Indian banks will require an additional capital of Rs5 lakh crore (Rs5 trillion) to meet the new global banking norms, Basel III, RBI Governor D Subbarao said.

 

Of the total Rs5 lakh crore, equity capital will be Rs1.75 lakh crore, while Rs3.25 lakh crore will have to come as the non-equity portion.

 

The government, which owns 70% of the banking system, alone will have to pump in Rs90,000 crore equity to retain its shareholding in the public sector banks (PSBs) at the current level to meet the norms.

 

The Basel Committee recently said that the 11 member jurisdictions including India, Australia, Canada, China and Japan, have published the final set of Basel III regulations effective from the start date of 1 January 2013.

 

Seven other jurisdictions including the European Union and the United States have issued draft regulations, and have indicated that they are working towards issuing final versions as quickly as possible.

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RBI cautions banks charging high prices

While profit margins are important for sustaining banking operations, the cost of operational inefficiencies of banks should not be passed on to customers by way of higher service charges and fees said the RBI's deputy governor


Chennai: Cautioning banks charging high prices on products offered to customers, Reserve Bank of India (RBI)'s deputy governor KC Chakrabarty said a new set of guidelines would be announced during the coming Ombudsman Conference in Mumbai, reports PTI.

 

"I am telling you that if you believe that the pricing has become exploratory then we will intervene. We have intervened in the case of micro-finance institutions. What I am saying is that discriminatory pricing (on products offered to customers) should not be there. Pricing should be non-discriminatory," Chakrabarty told reporters.

 

During the Ombudsman Conference, to be chaired by RBI Governor D Subbarao, on 4th January, new guidelines would be announced. "Some new guidelines will come on how it (RBI) can be more stringent in pricing the products to customers of banks", he said.

 

"(Banks) you have to understand the customer needs and be reasonable to customers," he said, adding, "do not do lip service."

 

Observing that banks charge high interest rates for offering educational loans compared to home loans, he said "I am only raising a question why it cannot be reduced."

 

Earlier, after releasing a book 'Indian Banking Reforms and After', written by banker Dharmalingam Venugopal, also Indian Overseas Bank employee, Chakrabarty said banks need to ensure that they maintain high level of productivity and efficiency in their operations.

 

"While profit margins are important for sustaining banking operations, the cost of operational inefficiencies of banks should not be passed on to customers by way of higher service charges and fees," he warned.

 

On restructuring of loans by banks offered to individuals and enterprises, he said an element of discrimination was practiced by the banks in restructuring of loans.

 

"Analysis of available data indicates that the larger borrowers have invariably received benefit of restructuring of their loans, while the restructuring in case of SMEs has remained low. I believe with a timely intervention and support from the banks, this sector would have definitely shown much lower levels of impaired assets than it does", he said.

 

Stating that business operations of banks should be "customer-centric" in nature, Chakrabarty said, "this should be reflected in all aspects of banking operations including creation of customised products and services".

 

To a query on the Union Government's proposal to roll out cash-transfer scheme from 1 January 2013, he said, "we were asking (banks) to do it for more than two years. Now, it has encouraged the government to come out with this particular scheme".

 

"Now everybody has a bank account and if the money is credited into the account, it can stop the leakages. It will also make the financial inclusion more effective. I am telling them (banks) for the last three years as part of their normal business, but now they (banks) are forced to do." he said.

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COMMENTS

Vaidya Dattatraya Vasudeo

4 years ago

Is any one aware if Banks are supposed to charge for CTS2010 cheques or give them as replacement for old cheque folios surrendered.

Vaibhav Dhoka

4 years ago

Banks levy exorbitant charges and bank literacy is low in our country and this is used by bankers to loot customers.Three days back I wrote how Bank of Maharashtra levy charges in this column.It can be verified from their website,by giving example.

2012: When TV found a hero in common man

With shows like 'Satyamev Jayate', 'Kaun Banega Crorepati', Balika Vadhu' on board, it seemed in 2012 Indian TV has gone back to its roots of the 80's and 90's where shows like 'Hum Log' and 'Krishi Darshan' majorly talked about various aspects of human life

Small screen this year was dominated by the common man with shows like Aamir Khan's 'Satyamev Jayate' and Amitabh Bachchan's 'Kaun Banega Crorepati' (KBC) aiming at connecting with the masses by highlighting their problems, reports PTI.

 

'Satyamev Jayate' was a major turning point as the show brought to the fore various issues like female foeticide, child sex abuse, untouchability and the trappings of a big fat wedding plaguing India.

 

The compassionate host brought in real life instances and people across the country to share their sufferings on the public platform. His 14 episode series created a mass awareness and sensitised people. After a positive response, Aamir is now gearing up for a second season to the show.

 

Bachchan's 'KBC 6' also followed the same path as it gave a chance to the people from troubled backgrounds to come out and win money through the game.

 

Sonali Mukherjee, a victim of acid attack, had come on the show with actress Lara Dutta. She narrated the horrific incident that happened to her in 2003. At the end, the girl left with a hefty sum of Rs25 lakh from the show.

 

The sixth season of superstar Salman Khan-hosted 'Bigg Boss' saw a commoner - Hyderabad based martial artist Kashif Qureshi - in the house alongside 12 celebrity contestants.

 

With these shows on board, it seemed Indian TV has gone back to its roots of the 80's and 90's where shows like 'Hum Log' and 'Krishi Darshan' majorly talked about various aspects of human life.

 

Even long-running daily soap 'Balika Vadhu' is another show which showcased social stigmas of the society.

 

The show has always highlighted the issue of child marriage but their recent episodes also talked about widow remarriage. The show saw protagonist Anandi (played by Pratyusha Banerjee) getting married in a mass wedding ceremony which also included many other widows of the village tying the knot on the same day.

 

The small screen proved to be an important platform for luring people into the movie halls as well, with many A-listers using TV shows to for their movie promotions.

 

Salman took full advantage of his show by promoting his and brother Arbaaz Khan's "Dabangg 2". Right from launching the movie's first look to disclosing Kareena Kapoor's item number, the actor revealed every information about his last release on the show.

 

The show also witnesses his actor friend Ajay Devgn and Sonakshi Sinha's "Son of Sardar" promotions and also Anil Kapoor starrer "Race 2".

 

Filmmaker Karan Johar, dancing diva Madhuri Dixit, singers Asha Bhosle, Runa Laila, Abeeda Parveen; actresses Shilpa Shetty, Mahima Chaudhary, Ayesha Takia, Neha Dhupia, Kirron Kher and Malaika Arora Khan also returned to the small screen for judging dance and song based reality shows.

 

While reality shows were entertaining with their celebrity quotient, soaps like 'Bade Ache Lagte Hain', 'Kya Hua Tera Vaada', 'Parichay' and 'Uttaran' took help of their age old formula of taking a leap to make the story interesting. The jump in time saw new characters joining in and old ones getting a makeover to sustain the curiosity of the audience.

 

Also what made a comeback on small screen was the famous epic drama 'Ramayan', recreated by the late Ramanand Sagar's granddaughter Meenakshi.

 

Other mythological shows that made entry into TV were 'Devon Ke Dev Mahadev', based on Lord Shiva and 'Jai Jag Janani Maa Durga' which chronicles the legend of the powerful Goddess Durga.

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