MONEY & BANKING


Whether it is a computer or a human error, banks must refund the amount they wrongly debit. While RBI has taken the first right step by asking the banks to issue an acknowledgment, it should ask the banks to instantly refund the tax wrongly deducted As per the present Income Tax (I-T)...

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Moneylife Digital Team 04 June 2013
SBI and Central Bank of India returned a DD saying that it is a "cancelled instrument". What these banks forgot is that the DD cannot be cancelled without the original instrument, which was in their possession at the time of clearing Strange as it may sound, but two state-run lenders,...

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Moneylife Digital Team 03 June 2013
Applicants have to submit their applications by 1st July for evaluation to get a new bank licence, the RBI said, even as it extended the validity of in-principle licence nod from 12 months to 18 months Making it tougher for aspirants, the Reserve Bank of India (RBI) today said it will...

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Moneylife Digital Team 29 May 2013
The Reserve Bank of India while ruling out a ban on the sale of gold by banks has asked lenders to refrain from aggressively selling the precious metal and related products D Subbarao, the governor of Reserve Bank of India (RBI) on Wednesday ruled out a ban on gold selling by...

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Moneylife Digital Team 28 May 2013
The central bank further said that banks cannot give advances against gold Exchange Traded Funds and units of gold mutual funds In a bid to restrict the demand for gold, the Reserve Bank of India (RBI) Monday imposed curbs on banks and NBFCs for providing loans against gold coins as well...

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Michael Mason-Mahon 07 May 2013
While the HSBC Holdings chairman Mr Flint, the board of directors, and CEO Mr Milne of HSBC India are unaffected, will they care about the lives they have ruined in India?   The Hong Kong and Shanghai Banking Corporation Ltd (HSBC) group spends hundreds of crores of advertising around...

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Moneylife Digital Team 07 May 2013
The central bank would shortly come out with its clarifications on issuing licences for more private sector banks The Reserve Bank of India (RBI) has received queries from different individuals and entities on various aspects of 'guidelines for Licensing of New Banks in the Private...

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Moneylife Digital Team 06 May 2013
Despite raising the issue of unwanted marketing calls to the HSBC’s highest authorities in India, Sinha continued to be harassed by telecallers on behalf of the lender. Finally, after over four years, a consumer forum found the Bank and its agents guilty and asked them to pay Rs50,000

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The growth of non-banking financial companies-NBFCs in India has piggybacked on using the priority sector norms of banks, through the securitisation route. If securitisation becomes difficult or costly, as is likely, it will affect the profits and growth of NBFCs. Are there options? With...

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Besides real miscreants who collect deposits from public with the ulterior motive of cheating their ‘clientele’, the government and corporates too become indirect beneficiaries of accumulating “unclaimed deposits”. This is because money not paid back to the original depositors/ savers becomes...

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Whistleblowers provide details of how banks were using cooperative banks to launder money The Reserve Bank of India’s (RBI’s) repeated assertion that it has found no evidence of money laundering in its inspection of three private banks, even before its inspection report is complete,...

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With some sixty days to go for the much hyped new banking licences, the recent news of the Parliamentary Standing Committee on Finance expressing serious views that the guidelines may lead to corrupt practices, makes one wonder what these guys were doing so long   The last date for...

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The central bank must clarify whether we have the necessary technology and equipment to mint these polymer notes within the country and announce the timeframe within which these notes would be launched into the financial system The Banking Ombudsman of Karnataka recently had organized a...

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The finance ministry should have consulted the RBI, if at all it was necessary to modify the dividend payout ratio of PSBs for whatever reasons, to avoid the predicament being faced by the public sector banks now  As per the report in The Economic Times (ET) dated 15 April 2013, the...

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An RBI deputy governor explains with great clarity the customers’ problems and also the solutions, but prefers to remain passive Not long ago, Reserve Bank of India (RBI) deputy governor Dr KC Chakarabarty, triggered widespread outrage, when he seemed to give a clean chit to the three...

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The finance ministry and FSLRC, in a hurry to resolve minor issues, perhaps ignored the evolution of the role of RBI and the care with which RBI has nurtured the financial sector. Time is not right for dismantling or truncating the RBI which is doing creditably well as is being admitted in...

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Moneylife Digital Team 05 April 2013
Bank credit increased at a slower rate by 14.4% in February on a year-on-year basis against an increase of 15.4% in February 2012. However, Nomura’s Equity Research states, “If we assume the same quantum of loan growth for March 2013 as was achieved during the same month last year, then we...

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Banks are not paying any interest on balances in current accounts. This has not only deprived banks deposits at cheaper rates but has also resulted in money from current accounts flowing into other markets and mutual funds The chairman of State Bank of India (SBI), the largest commercial...

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The proposed post office bank can provide the much-needed basic banking facilities in a simple, friendly way to the illiterate and less literate people across the country. However, there is no definite answer whether the post office will shed its image and work culture to take on to...

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One of the key risks posed by the bank subsidiary model is that the parent bank is directly exposed to the functioning of various subsidiaries and any losses incurred by the subsidiaries inevitably affect the bank balance sheets. Such risks can be mitigated largely by the FHC structure, the...

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