The World of Finance: Week of May 05th to May 11th 2014


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India: RBI

  • RBI’s decision to let banks offer independent savings accounts to children over 10 has received mixed response
  • RBI has asked banks not to penalize account holders for not maintaining minimum balance in their inoperative accounts
  • The Government has asked the RBI to set up a committee to look into the insurance regulator’s concerns that some of the instruments issued by banks to raise tier-II capital were perpetual and illiquid
  • RBI to banks: Don’t levy pre-payment fee on floating loans

India: SEBI

  • To enhance enforceability of various regulatory provisions by listed firms, SEBI proposed a new set of rules that would require greater disclosures by the companies and give more powers to stock exchange to check any non-compliance
  • SEBI signs Memorandum of Understanding with Financial Intelligence Unit for effective implementation of anti-money laundering rules

India: Finance Ministry

  • The Finance Ministry proposes lowering bank’s exposure limits, especially of small banks, for capital fundings to single borrower and borrower groups
  • FinMin cancels India Post’s plan to set up a bank
  • The finance ministry has called a meeting of the chiefs of public-sector banks (PSB) and financial institutions to review their performance in FY14 on May 13

India: Banking Developments

  • Ratnakar Bank Limited (RBL) will be launching a special edition ‘Cricket Credit Card’ in association with IPL franchise Delhi Daredevils; will have features like Match Passes on redemption of reward points for IPL matches featuring DD

India: Banking Expansion

  • Syndicate Bank plans to raise fresh capital of Rs 2,650 crore during the present fiscal
  • Dena bank seeks Rs 1,200 cr in capital from Government in FY15
  • The Kakinada Town Co-operative Bank, having a network of 13 branches in the East Godavari district, is expanding its operations to Visakhapatnam district by opening a branch in Visakhapatnam

India: General banking

  • Dhanlaxmi Bank Ltd’s attempt of raising around Rs 233 crore through preferential allotment has failed as a group of investors from Mumbai decided against investing in the bank
  • Bharatiya Mahila Bank says no need to raise capital at present
  • The All India Bank Employees Association (AIBEA) has revealed the secret list of the country’s top 406 loan defaulters who together owe public sector banks a whopping Rs 70,300 crore. Kingfisher Airlines top the list with Rs 2,673 crore
  • Two Padma awardees in top defaulters’ list

India: They said it

  • R Gandhi, Newly appointed RBI Deputy Governor: An entity’s failed attempt at getting a bank licence will not have any bearing on its move to pick up a large share-holding in an existing bank
  • P Chidambaram, Finance Minister to Bharatiya Mahila Bank: Hire laterally from other sectors

India: Frauds

  • In Bathinda, The district police have a person for encashing a fraudelnet draft of INR 7 lakhs from Punjab State Central Cooperative Bank’s civil lines branch
  • Within days of opening a new account with Vasai Branch of a private bank, a 30-year-old man was conned into giving away his bank details and personal identification number (PIN) to a caller, who withdrew INR 50,000 from his account, from an ATM in New Delhi
  • A man was arrested for allegedly taking loan from a bank by producing fake land documents in Odisha’s Ganjam district after the bank lodged FIRs against 36 people leveling similar charges

India: Forex reserve

  • India’s foreign exchange (Forex) reserves rose by $1.94Bn to $311.85Bn for the week ended May 2


  • World Bank has banned two Indian entities, Savoir Soft Solutions Private Ltd, for 3 years, and Mr. Laxminarayan Mallick for 4 years, for violating its fraud and corruption guidelines making them ineligible to participate in any projects financed by the global lender
  • India moved a step closer to gain access to bank account information of its citizens in offshore banks after a host of countries, including Switzerland and Singapore, committed to share all financial information with other governments