The World of Finance: Week of September 8th to September 14th 2014

World of Finance: September 08th to September 14th

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India: RBI

  • RBI has closed down six Urban Cooperative Banks (UCBs) which were suspected of being used to route illegal money
  • RBI fixs 70 years upper age limit for private bank CEOs, whole-time directors
  • RBI will adopt a common recruitment system from next year to tap talent for its core functions
  • RBI: Guarantors may get wilful defaulter tag too
  • RBI: Flood victims eligible for loans, easier interest rates

India: SEBI

  • SEBI likely to ease deadline for corp. governance norms
  • SEBI: Major offences, repeat violations can’t be settled
  • SEBI plans to align KYC (know your customer) norms for domestic investors with the foreign portfolio investors (FPI) regime

India: Finance Ministry

  • The Finance Ministry is finalizing the draft Cabinet note on reducing government stake in PSU banks to up to 52 per cent as part of recapitalization drive
  • Finance Ministry asks public sector banks to participate in Swachh Bharat Mission
  • The corporate affairs ministry has rejected a proposal by the finance ministry to exempt banks from 2% mandatory corporate social responsibility (CSR) norms owing to their capital constraints
  • Finance Ministry Framing Incentive Scheme for Bankers to Push ‘Jan Dhan Yojana’
  • Finance Ministry said it has released in advance the installment worth Rs 856.29 crore in October to Jammu and Kashmir to help the state government deal with the unprecedented situation of flood and natural calamity

India: Banking Development

  • As part of its ‘go-green’ initiative, HDFC Bank has started sending PIN, unique code number, for debit card holders through SMS instead of the practice of sending it by post
  • ICICI Bank has launched a facility under which an account holder with it can transfer money to a mobile phone user in the country even without the latter having an account with any bank
  • Banks opting for alert-based surveillance at ATMs, which detects attempts to tamper with cash

India: Banking Expansion

  • ICICI Bank plans to raise $500 Mn

India: General banking

  • Rural ministry asks states to open bank accounts of wage seekers under MGNREGA
  • Jammu and Kashmir Bank has stepped up its operation and reopened 149 out of its 300 branches in Kashmir
  • Karnataka Bank has appointed B A Prabhakar, who retired as chairman and managing director of Andhra Bank, as an additional director

India: Frauds

  • Three persons, including a woman, who were allegedly trying to cheat a bank to the tune of Rs 40 lakh by applying for a home loan on forged documents in Mayapuri area of West Delhi, have been arrested
  • In Indore, the District Consumer Forum has penalized a bank for bouncing a cheque given by a city resident on false grounds

India: They said it

  • Raghuram Rajan, RBI Governor: Need to change appointment process in state banks
  • Raghuram Rajan, RBI Governor:  Inflation across board still too high to begin easing
  • Shyam Srinivasan, MD and CEO, Federal Bank: The worst is over for banking

India: Forex reserve

  • India’s foreign exchange reserves dipped by USD 1.327 Bn to USD 317.313 Bn in the week ended September 5

International:

  • The Bank of England released a report after what it termed a lengthy investigation about digital currencies like Bitcoin.
  • Senior IAS officer Subhash Chandra Garg was appointed as Executive Director in World Bank
  • Barclays bank appoints John McFarlane as new chairman

The World of Finance: Week of September 01st to September 07th 2014

the-world-of-finance-week-2014-Sept-08

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India: RBI

  • RBI eases rules for ECB lenders to extend loans in rupees
  • RBI introduced a number of changes in bonds issued under Basel III international banking norms as a way to make it easier for banks to raise capital and also to make such bonds attractive for investors
  • RBI sets up a first of its kind permanent digital gallery in Chennai aimed at spreading awareness on financial literacy
  • RBI sets up supervisory college for Axis Bank

India: SEBI

  • SEBI: Higher threshold limits to stay for mutual funds
  • SEBI said that listed companies must follow higher corporate governance standards and there will be no dilution to the new norms kicking in from next month

India: Finance Ministry

  • Finance ministry sets up panel to examine unclaimed deposits in PPF, bank & post office saving schemes
  • Finance Ministry to take up 35 FDI proposals
  • Foreign Ministry has approved 22 FDI proposals worth around Rs 4,000 crore
  • Finance Ministry asks RBI to tighten monitoring to check fund diversion

India: Banking Development

  • DBS Bank launched a marketing campaign with a four-part film that is a love story revolving around purpose, relationship and connectivity
  • SBI launches savings bank accounts for children
  • Corporation Bank has launched the ‘Grand Festival Dhamaka’ offer on home and vehicle loans, and loans for medical and business professionals. The offer will be on till December

India: Banking Expansion

  • Dena Bank aims to raise Rs 1,500 crore
  • Exim Bank has signed an agreement with Japan Bank for International Cooperation (JBIC) to boost infrastructure development in India as well as to enhance connectivity and regional integration between the country and its neighbours
  • IDBI Bank launches e-lounge in Mumbai branch
  • HDFC Bank launched its Secure Banking programme and plans to extend it to all its 96 branches across Odisha as part of its efforts to create banking awareness among customers
  • Union Bank of India (UBI) will raise Rs 1,386 crore through qualified institutional placement (QIP) this financial year

India: General banking

  • All India Bank Employees Association to stage protests on September 15 and 20
  • Public sector bank appointments to be under CVC vigilance
  • Kotak Mahindra Bank has appointed Farida Khambata as additional director on its board
  • Branches of Indian banks may face closure in UK crackdown
  • Andhra Bank readies to take hit as farmers stop repaying loans

India: Frauds

  • CBI arrested two suspended senior executives of UCO Bank in connection with the INR 5.73 crore loan fraud

India: They said it

  • Raghuram Rajan, Governor, RBI: Government, RBI to devise monetary framework for central bank
  • Raghuram Rajan, Governor, RBI: BRICS bank not aimed at challenging IMF, WB
  • Raghuram Rajan, Governor, RBI: Grand, big picture reforms in India may take some time
  • U K Sinha: SEBI studies its own regulatory impact
  • Rana Kapoor, MD & CEO, YES Bank: Our bank is institutionalized, not family-run

India: Forex reserve

  • Forex Reserves up $60 Mn at $318 Bn as of August 29

International:

  • UK proposes cutting Russia off from SWIFT international banking system

The World of Finance: Week of August 25th to August 31st 2014

the-world-of-finance-week-2014-aug-31

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India: RBI

  • RBI eases norms, allows single document containing address and ID proof for opening Savings account
  • RBI has asked the public to pay their income tax dues well in advance, authorizes 29 agency banks to accept such payments
  • The RBI has eased the refinancing procedure of external commercial borrowings

India: SEBI

  • SEBI sets 1-year target to complete probes; 221 cases underway
  • SEBI introduces new settlement guarantee safety net
  • SEBI opens new office in Bangalore

India: Finance Ministry

  • Finance ministry considers splitting post of CMD for PSU banks
  • The Finance Ministry initiates actions for listing of one of the country’s largest asset management companies, UTI
  • The Finance Ministry has asked the state-owned LIC to submit details on structuring the Rs 30,000-life cover to be offered under the Jan Dhan Yojana

India: Banking Development

  • All branches of banks across the country will become Aadhaar-enabled by early next month, allowing customers to open accounts with just their 12-digit Aadhaar number
  • ICICI Bank announced the launch of two new mobile banking applications; ‘iLoans’ and ‘iTrack’, for accessing loan account details and tracking status of dispatches, respectively

India: Banking Expansion

  • Banks to hold 60,000 camps to open 7.5 cr accounts under Jan-Dhan Yojana

India: General banking

  • Indian Bank to revise interest rates on FCNR (B) deposits
  • SBI Lowers Interest Rate on Home Loans

India: They said it

  • Arun Jaitley, Finance minister: Containing inflation top priority of Government
  • Raghuram Rajan, RBI Governor: Indian banks’ bad loan level not ‘scary’
  • Raghuram Rajan, RBI Governor: India Better Prepared for Federal Reserve Rate Hike
  • U.K Sinha, SEBI Chief: New Powers to Fast-track Prosecution, Refunds

India: Forex reserve

  • Foreign exchange reserves declined by $810.7 Mn to $318.579 Bn

International:

  • Deutsche Bank’s London branch was fined £4.7 Mn ($7.8 Mn) on Thursday by the U.K.’s Financial Conduct Authority for putting the wrong buy and sell markers on millions of transactions in regulatory reports

 

The World of Finance: Week of August 18th to August 24th 2014

the-world-of-finance-week-2014-aug-25

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India: RBI

  • RBI notifies increased PPF deposit limit of Rs 1.5 lakh per year
  • RBI came out with a new regime for liquidity management to keep overnight rates close to the repo rate and entice banks to do more efficient liquidity management
  • RBI issued the draft of a charter comprising five basic customer rights – fair treatment, transparency, suitability, privacy, grievance redress and compensation
  • RBI prescribes tighter norms for NBFCs to lend against shares
  • RBI asks Uber to follow two-step card verification
  • RBI says that about 36% of the overall 4.1% bad assets in the system have been created by six sectors of the economy – infrastructure, metals, textiles, chemicals, engineering and mining

India: SEBI

  • SEBI is contemplating further alignment of its listing agreement format with the provisions of the new Companies Act for adopting best corporate governance practices and to make the corporate governance framework more effective
  • SEBI has in place a robust system for information sharing and coordination with foreign regulators to nab manipulators and fraudsters operating across boundaries

India: Finance Ministry

  • A forensic audit has been ordered by the Finance Ministry on Dena Bank and Oriental Bank of Commerce (OBC) following reports of misappropriation of funds to the tune of Rs.436 crore from fixed deposits received from customers
  • Finance Ministry has asked government departments to control use of paper and promote electronic communication
  • Finance ministry: India’s economy is on course to grow by around 5.8 percent in the fiscal year to March 2015

India: Banking Development

  • ICICI Bank, the country’s largest private sector bank, announced the launch of EMI (Equated Monthly Instalments) facility on debit cards to enable its customers to convert high value transactions into easy instalments

India: Banking Expansion

  • ICICI Bank plans to add more than 1.5 Mn accounts in FY15
  • Axis Bank to raise Rs 6,000 crore through bonds
  • Karur Vysya Bank raises Rs 625 crore through QIP

India: General banking

  • Corporation Bank has allegedly overlooked the Union finance ministry guidelines while nominating candidates for election of shareholders for its board
  • HDFC Bank launches ForexPlus card for Haj and Umrah pilgrims
  • United Bank of India (UBI), has set up a centralised retail hub at its headquarters in the city, for faster processing and clearance of retail loans
  • Canara Bank has kickstarted a mega savings bank (SB) account opening campaign in all its 5,182 branches across the country
  • HDFC Bank has sent a fresh petition to government on raising its foreign investment limit up to 74 percent

India: They said it

  • Arun Jaitley, Finance Minister: India to tighten up banking risk management

India: Frauds

  • Police have detected a gold loan fraud of nearly Rs 1.5 crore in Santragachi Co-operative Bank in which the bank supervisor and gold valuer were the alleged kingpins
  • A local court has directed the police to lodge an FIR against ICICI Bank CEO Chanda Kochhar and head of card operations Vinay Valse in connection with allegations of cheating and fraud over online shopping through credit card

India: Forex reserve

  • Forex reserves rise by USD 43.3 Mn to USD 319.39 Mn

International:

  • Bank of America will pay a $16.65 Bn fine to settle allegations that it knowingly sold toxic mortgages to investors.

 

The World of Finance: Week of August 04th to August 10th 2014

the-world-of-finance-week-2014-Aug-4

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India: RBI

  • RBI said the proposed Bharat Bill Payment System (BBPS) will have a single brand image providing convenience of ‘anytime anywhere’ payment to customers
  • RBI relaxes takeout financing norms for existing infrastructure loans
  • RBI revised guidelines for mortgage guarantee companies and said that guarantees provided by them may be treated as contingent liabilities, for which credit conversion factor would be 50%
  • RBI allows select crop loan relief in Andhra Pradesh and Telangana

India: SEBI

  • The Lok Sabha approved the Securities Laws (Amendment) Bill 2014 SEBI to crack down on ponzi schemes to prevent systematic financial swindle of gullible small depositors
  • SEBI approves establishing real estate investment trusts (REITs)

India: Finance Ministry

  • Finance Ministry: Examine inflation, growth while setting rate
  • The finance ministry has decided to issue directives to public sector banks (PSBs) to be more transparent in their dealings, cut the role of intermediaries, and fix accountability for actions at the top level
  • The finance ministry has been pulled up by the Comptroller & Auditor General (CAG) for making tax refunds of close to Rs 6,700 crore without Parliamentary authorization
  • Finance ministry has cleared 14 FDI proposals which will lead to inflow of Rs 1,528 crore into the country. The largest FDI proposal cleared is in pharma sector of Rs 600 crore by Laurus Labs Private

India: Banking Development

  • IndusInd Bank has launched a purely video-based channel connecting customers on mobiles and desktops to staff representatives for face-to-face communications
  • The MMTC PAMP, a joint venture between public sector MMTC and Swiss company PAMP, plans to set up 10 Gold purity verification centres in five metros in the next six months, to benefit Gold deposit scheme of banks
  • IndusInd Bank launched a co-branded credit card with Jet Airways, offering a range of benefits under the carrier’s loyalty programme

India: Banking Expansion

  • Odisha Government has prepared an action plan and asked banks to provide services in all 4,597 unbanked gram panchayats (GPs) of the state
  • Kotak Mahindra Bank to raise Rs 300 cr via infra bonds
  • Andhra Bank is planning to issue infrastructure bonds not just for institutional investors but also for retail investors
  • Bandhan Bank to set up fresh branch networks, to hire rural persons
  • HDFC Bank opened its branch at the Dubai International Financial Centre (DIFC)

India: General banking

  • The draft norms for forming small and payment banks have failed to enthuse urban cooperative banks (UCBs), as they find the scope of operation for niche banks too restrictive
    Western Union, the world’s largest money-transfer company, is planning to apply to the RBI for a payments bank licence
  • CBI begins to investigate IDBI Bank’s Rs 900 crore-loan to Kingfisher Airlines
  • Bharatiya Mahila Bank Ltd bagged the Core Banking System Initiative Award for the year 2014 at the Asian Banking and Finance – Retail Banking Awards 2014

India: They said it

  • Raghuram Rajan, Governor, RBI: RBI had started discussions with the government on a monetary policy framework that includes measures to control inflation

India: Frauds

  • S K Jain, suspended chairman and managing director (CMD) of Syndicate Bank, had allegedly prevented loans of over Rs 100 crore on Bhushan Steel and Prakash Industries from being declared as non-performing assets (NPAs)

India: Forex reserve

  • India’s foreign exchange reserves declined by $573.5 Mn to $319.99 Bn for the week ended Aug 1

International:

  • Bank of America has reached a $17 bn settlement with the Justice Department as a settlement in an investigation into the sale of toxic financial products in the run-up to the financial crisis
  • The World Bank’s Board of Executive Directors approved a US$500 mn operation to finance the First Programmatic Financial Sector Development Policy Loan in Ukraine to support a program of high-priority reform measures in the country’s banking sector

The World of Finance: Week of August 11th to August 17th 2014

the-world-of-finance-week-2014-Aug-17

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India: RBI

  • RBI to transfer Rs 52,679 cr surplus profit to Govt
  • RBI forms committee to monitor shadow banking
  • More than 34,000 firms under RBI scanner for doing business on lines of Non-Banking Financial Companies (NBFC) without authorisation

India: SEBI

  • The Government has asked SEBI to allow relaxations in rules for follow-on public offerings (FPOs)
  • SEBI started probe into 108 new cases related to manipulations in the securities laws and completed investigation in 120 matters during the last financial year
  • SEBI has put in place a new alert-generation system to detect possible mal practices by the traders and their group entities with significant exposure to any particular stock

India: Finance Ministry

  • The Finance Ministry has decided to take a relook at recent appointments of top-level public sector bank executives
  • Approve loans on time: finance ministry to banks
  • The finance ministry has ruled out the proposal for the appointment of a chief operating officer (COO) of the rank of deputy governor in RBI
  • Finance Ministry appoints Bimal Jalan as head of Expenditure Management Commission

India: Banking Development

  • HDFC Bank launches ForexPlus card for Haj, Umrah pilgrims
  • PayU makes digital payments possible with Pan card details & bank account information
  • State Bank of India and its five associate banks are planning to collectively install 4,300 cash recyclers, which will accept and dispense currency notes through replenishment and recycling of notes
  • Karnataka Bank has launched a facility to send donations to designated temples by calling IVR enabled toll-free numbers. Named as ‘i-Hundi’ facility

India: Banking Expansion

  • Canara Bank aims NPA recovery of Rs 6,500 crore this fiscal
  • Canara Bank has launched a mega savings bank (SB) account opening campaign in all its 5,182 branches across the country

India: General banking

  • Government asks banks to favorably respond to transfer request from female employees
  • Government may pay commission to banks in return for pushing financial inclusion drive
  • Only 3 free withdrawals from other ATMs, 5 from own in six metro centres — Mumbai, Delhi, Chennai, Kolkata, Bangalore and Hyderabad
  • PSU banks may decide staff housing loan policy on their own
  • The Centre has asked all public sector banks to desist from the practice of directly recruiting officers from campuses in view of court strictures

India: They said it

  • Arun Jaitley: Finance Ministry Will Now Focus on Goods and Services Tax (GST)
  • Raghuram Rajan, Governor, RBI: Need strong insolvency law to prevent fraud
  • Raghuram Rajan: Merging weak PSU banks with strong ones is a recipe for disaster Raghuram Rajan, Governor, RBI: India needs bankruptcy code

India: Frauds

  • The Economic Offences Wing (EOW) of the Mumbai city crime branch have registered a case against a Class I government officer, bank officials and few others for allegedly duping two organizations to the tune of Rs 8.10 crore
  • A special CBI court has convicted five people for defrauding a nationalized bank of Rs 3.63 crore by taking a loan through five “fake” factories in Dehradun
  • An assistant manager with Corporation Bank got arrested for alleged involvement in the fraudulent withdrawal of Rs 12 lakhs from a customer’s account using forged cheques

India: Forex reserve

  • India’s foreign exchange reserves fell to $319.35 Bn as of August 8, compared with $319.99 Bn the week earlier

International:

  • China’s bad bank loans climbs to $112.84 Bn

The World of Finance: Week of July 28th to August 03rd 2014

the-world-of-finance-week-2014-Aug-4

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India: RBI

  • S S Mundra took charge as a deputy governor of the RBI. He will have three year term, and succeeds K.C. Chakrabarty who prematurely resigned from the position
  • The RBI has forwarded a proposal to the SEBI suggesting barring wilful defaulters of bank loans from raising funds through capital markets

India: SEBI

  • SEBI asks Pan card Clubs to stop collecting money from investors
  • SEBI has entered into pacts with 27 securities market regulators in the European Union (EU) for consultation, cooperation and exchange of information related to the supervision of Alternative Investment Fund Managers

India: Finance Ministry

  • Government aims to open 7.5 crore bank accounts by August 15, 2018
  • The Finance Ministry has constituted a panel to strengthen the debt recovery laws
  • The Ministry of Finance invites citizens to design a logo for them. The winner to get a cash prize of Rs 50,000
  • US Secretary of State John Kerry met Finance Minister Arun Jaitley
  • The finance ministry is proposing a national initiative to provide all households in the country with banking services, with particular focus to empower the weaker sections of the society
  • The Finance Ministry appoints SBICapital Markets to undertake a study on mergers and recapitalisation of state-owned banks. The report may be finalised within a month.

India: Banking Development

  • The Government is looking to expand mobile banking through all kinds of phones as part of its ambitious financial inclusion drive that will target 7.5 crore bank accounts by 2018
  • The number of free withdrawals from third-party ATMs may reduce from five a month to two for account holders in cities. The RBI has asked banks to continue with the existing facility for rural ATMs and provide them details of the number of machines that are there in villages
  • HDFC Bank has launched its ‘secure banking’ in Kerala aimed at creating customer awareness about safe banking practices

India: Banking Expansion

  • Central Bank of India sells 7.10 crore shares to LIC, raises Rs 581.61 cr
  • IDBI Bank plans to open 600 new branches this year

India: General banking

  • IDBI Bank said it is not considering any proposal to merge Kolkata-based United Bank of India with itself-
  • Bank of Baroda said it will be an “acquirer” as and when the government moves on with bank consolidation
  • Balaji temple deposits 1,800 kg gold offerings with SBI
  • Against the backdrop of the CBI arresting the CMD of Syndicate Bank for allegedly receiving ₹50 lakh as bribe from large borrowers, the All India Bank Employees Association has urged the government to immediately frame rules of conduct for top executives of public sector banks
  • Indian banks start to shift loan books from Singapore after facing aggressive scrutiny by Monetary Authority of Singapore
  • The Karnataka High Court directed Canara Bank to take over Amanath Co-operative Bank
  • Govt may merge Bharatiya Mahila Bank with another bank to be set up for women
  • Exim Bank entered into a partnership with a US government body to help and advice domestic companies interested in investing in India

India: They said it

  • Arun Jaitley: No plan to change management of rural credit funds
  • Arun Jaitley: PM to launch financial inclusion campaign
  • B Sriram, MD and Group Executive, SBI: Funds needed for SBI merger with subsidiaries

India: Frauds

  • Shimoga police arrested 18 staff members of the Shimoga District Central Cooperative Bank (SDCCB), including its president, for involving disbursal of gold loans by a cooperative bank
  • The CBI arrested eight Indian Overseas Bank employees holding key positions in a staff union for malpractice in the recruitment of sweepers and messengers at the bank’s headquarters in Chennai

India: Forex reserve

  • India’s forex reserves rose to $320.564 Bn. The reserves rose a $2.714 Bn in the week of July 25

International:

  • Portugal’s Central bank unveiled a plan to rescue the country’s second-largest lender by breaking up the bank and pumping in billions of euros of state money
  • The World Bank has revised the Purchasing Power Parity (PPP) index and the global poverty line is being revised from $1.25 a day at present.

The World of Finance: Week of July 21st to July 27th 2014

the-world-of-finance-week-2014-July-28

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India: RBI

  • RBI hikes FPI limit by $5 bn
  • RBI empowers individual banks to decide on a lending cap on loans for nonagricultural purposes against pledged gold
  • RBI reshuffles FII debt investment limits
  • RBI has cancelled registration certificate of Deutsche Securities India Pvt. Ltd (DSIPL) as it was carrying on the business of a non-banking financial institution
  • RBI imposes a total fine of INR 1.50 Cr on 12 banks including ICICI Bank, HDFC Bank and Axis Bank, for not following proper guidelines in advancing loans to the Deccan Chronicle group
  • RBI to identify six systemically important banks for the domestic financial markets, these banks will have higher capital than peers

India: SEBI

  • SEBI will issue final guidelines on newly proposed Real Estate Investment Trusts and Infrastructure Investment Trusts, as also revised norms for ESOPs by listed companies

India: Finance Ministry

  • India will propose a SAARC Development Bank at the regional grouping’s ministerial council in Bhutan
  • Finance Ministry to pitch for ratings upgrade with Standard & Poor (S&P), other agencies
  • Finance Ministry wants banks to be exempt from corporate-social responsibility (CSR) spend

India: Banking Developments

  • SBI, PNB, BoB & BoI preparing blueprint to identify takeover targets
  • Canara Bank launched Canara m-Wallet (for card-free and cashless transactions), Canara easy Cash (instant money transfer (IMT) service,) and Canara P-Serve (touch screen kiosks installed in e-lounges of Canara Bank)
  • The State Bank of Patiala has announced special initiative for the girl child, differently-abled persons and underprivileged sections of the society, will contribute ₹50 for each current account opened, ₹5 for each new savings account, 10 paise for each transaction on alternative channel and ₹2 for every new user of net banking and mobile banking

India: Banking Expansion

  • Bank of India raises Rs 1,250 crore via perpetual Tier-I bonds
  • Syndicate Bank has sought the government’s approval to raise Rs 1,100 crore from the market through Qualified Institutional Placement (QIP) route
  • United Bank of India to raise Rs 300 crore by selling shares to LIC
  • Indian Bank is set to raise Rs 2,500 crore this fiscal
  • State Bank of Patiala adds 25 branches to its network

India: General banking

  • The Government has set the ball rolling on merger of public sector banks, asks IDBI Bank and United Bank of India to prepare a consolidation plan
  • Exim Bank asks RBI to hike its leverage ratio by 50%, i.e to allow lending 15 times of its net-owned funds

India: They said it

  • Raghuram Rajan, Governor, RBI: India will open up its debt markets to short-term foreign investors in a measured way but wants to first build liquidity through long term foreign investments to withstand potential sharp volatilities
  • U K Sinha, Chairman, SEBI: If India is to grow at a pace matching the aspirations of the people, the dependence on bank finance should come down and the task of the Securities and Exchange Board of India (SEBI) is to educate industries as to how they can tap alternative funding
  • H R Khan, Deputy Governor, RBI:  Banks should be given some freedom to determine their financial inclusion strategies as making such obligations mandatory has its own distractions

India: Frauds

  • In Bhubaneswar, the Economic Offence Wing (EOW) of the Crime Branch arrested a man who availed Rs 1.08 crore loan by furnishing fake documents
  • The Indian Air Force has files FIR with the Cyber Cell of Delhi Police in connection with over 50 cases of fraudulent withdrawal of money from SBI accounts of its air force officers posted across India

India: Forex reserve

  • India’s foreign exchange reserves increased by $813.2 mn to $317.85 bn in the week ended July 18

International:

  • World Bank Group commits $ 18 bn loan to India in 3 years

The World of Finance: Week of July 14th to July 20th 2014

the-world-of-finance-week-2014-July-21

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India: RBI

  • RBI has initiated the process of granting differentiated bank licenses by issuing draft guidelines
  • RBI may allow telecom companies, NBFCs to set up banks
  • RBI eases reserve norms for banks issuing infra bonds
  • RBI: individuals can also use funds under Liberalised Remittances Scheme (LRS) to buy immovable property abroad
  • RBI Starts Scrutiny of Companies Suspected of Illegal Money Raising
  • RBI eases overseas investment rules in local companies

India: SEBI

  • The Government prepares a new bill to empower SEBI to take on fraudsters and defaulters
  • The number of attachment orders passed by SEBI with the help of an ordinance has crossed 1,300-mark
  • SEBI is set to issue fresh guidelines on the settlement guarantee fund (SGF)
  • SEBI issues draft norms for setting up infrastructure investment trusts to gain more investments

India: Finance Ministry

  • The Finance Ministry will float a draft cabinet note for Government’s stake dilution in SBI in August to enable it to raise capital for meeting Basel III norms
  • Finance Ministry sets up a committee consisting of officials from Central Board of Direct Taxes to suggest ways to reduce mounting disputes at various tax appellate forums
  • Finance ministry: ‘Achieving Rs 6.24 lakh crore in indirect taxes a challenge’

India: Banking Developments

  • ICICI Bank announced the launch of a special service called ‘Hello Canada’ for its Canadian Customers, offers opening a Canadian dollar account with ICICI Bank, Canada along with an NRI savings account with a branch in the country

India: Banking Expansion

  • Corporation Bank to open 200 ‘Corp Excel’ branches by next year-end

India: General banking

  • United Bank of India will soon embark upon process to ‘name and shame’ its wilful defaulters as part of its effort to recover dues

India: They said it

  • Arun Jaitley, Finance minister: State-run banks would require recapitalization worth Rs 2.4 lakh crore and this would be a top priority for the government
  • Chanda Kochhar, MD & CEO, ICICI Bank: Set to grow faster, but won’t sacrifice profitability

India: Frauds

  • CBI unearths a Rs 250 crore scam in Dena Bank, involving a branch manager and one more person. They took loan using forged documents on behalf of seven private companies who were customers of Dena Bank
  • In Chennai, Central Crime Branch arrested a senior official of a nationalized bank for withdrawing at least Rs 1.5 Cr from different accounts of Bank’s customers

India: Forex reserve

  • India’s foreign exchange reserves rose by $643.2Mn to $317.03Bn for the week ended July 11

International:

  • New BRICS bank setup in Brazil summit to be based in China
  • India will preside over BRICS’s operations for the first six years, followed by five-year terms for Brazil and then Russia
  • World Bank Group President Jim Yong Kim will meet Prime Minister Narendra Modi this week to understand his development priorities

The World of Finance: Week of July 07th to July 13th 2014

the-world-of-finance-week-2014-July-15

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India: RBI

  • RBI buys $19 bn in forward market to contain rupee volatility
  • RBI net buys $1.86Bn in spot forex market for 2nd consecutive month in May
  • RBI relaxes credit policy for the import of rough and polished diamonds
  • RBI received 76,061 complaints last fiscal ending March 31

India: SEBI

  • SEBI asks IRDA to make insurers disclose voting details
  • To safeguard Indian markets from terrorist financing risks, SEBI has issued fresh warnings to stock exchanges and other entities to caution them
  • SEBI asked Finance Ministry to introduce ‘safe harbour’ rules for foreign inflows

India: Finance Ministry

  • Finance Ministry: Insurance Bill May Be Taken Up in Current Session
  • Finance Minister promises more income tax relief if economy improves

India: Banking Expansion

  • Canara Bank expands its Gramodaya scheme in Delhi for identifying villages or slums for overall development
  • RBI Governor Raghuram Rajan launches Indian Bank’s mobile branches in Chennai

India: General banking

  • PM Narendra Modi to attend the sixth edition of the BRICS Summit which will mark the inauguration of a development bank and the creation of a $100 Bn Contingent Reserve Arrangement
  • The All India Bank Employees Association (AIBEA) has urged the Government to put forth an effective mechanism to deal with high volume defaulters
  • Haryana government has decided to start Rashtriya Shahri Aajivika Mission from the current financial year and has drawn up a target to open bank accounts of 50,000 poor people
  • Madras high court: Banks cannot fix 60% of marks as minimum required %age for extending education loan to students

India: Budget 2014

  • SBI, IFCI, SIDBI & Canara Bank have been vetted by Government as potential managers of the ambitious Rs 10,000-crore fund for startups announced in the budget The government has decided to reduce its stake in the public sector banks, enabling the lenders to raise equity from the public; though it will continue to hold majority stake
  • Government Proposes New Legislation to Check Chit Fund Frauds
  • Government favours consolidation of PSU banks
  • Government confident of achieving budgeted fiscal deficit, of 4.1% of GDP, in FY 2014

India: They said it

  • Raghuram Rajan, Governor, RBI: Centre, RBI Must Join Hands to fight Inflation
  • Chanda Kochhar, MD, ICICI Bank: ICICI Bank to list insurance units when valuations optimum
  • Chanda Kochhar, MD, ICICI Bank: Worst of NPA trouble for banking is over
  • George Alexander Muthoot, MD, Muthoot Group: More banking licences is a positive reform

India: Frauds

  • Chennai police arrested two former IT BPO employees for stealing £30,000 from a UK citizen’s bank account and transferring it to their friend’s bank account in the UK two years ago

India: Forex reserve

  • India’s foreign exchange reserves rose by $614.6 mn to $316.39 bn for the week ended July 4

International:

  • BNP Paribas, France’s largest bank, pleaded guilty Wednesday to a federal charge of violating US economic sanctions by processing transactions for clients in blacklisted countries