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


  • 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