Cauvery Water Dispute

The Supreme Court directed the Karnataka government to release 15,000 cusecs of Cauvery water per day to Tamil Nadu  to make sure the samba crops in Tamil Nadu survive.

SC also directed the Tamil Nadu government to approach the supervisory committee for the release of Cauvery water as per the final order of the Cauvery Water Dispute Tribunal. Continue reading “Cauvery Water Dispute”

Financial Awareness-September(21-30) 2016

  1. RBI plans fund to push card swipe machines (Source: ET)
  • Concerned over low use of debit cards in electronic payments, the Reserve Bank of India wants banks that are not installing card accepting machines to contribute to a fund that will subsidise installation of point of sales (PoS) terminals.
  • There are over 68-crore debit cards in India. Over a third of these have been added in the last two years following the implementation of the Jan-Dhan Yojana. But the number of PoS terminals (credit card accepting machines) has gone up marginally from 12 lakh to 14 lakh. The average debit card holder in India uses his/her card only once at a PoS machine for every 10 transactions in an ATM.
  • The proposal envisages creation of an ‘acceptance development fund’ which will subsidize installation of PoS machines with smaller merchants and in small towns and villages. The RBI has come out in support of a fund rather than mandating installation of PoS terminals for banks as some lenders are not interested in the business. Today, four lenders dominate the merchant acquisition business -State Bank of India, HDFC Bank, ICICI Bank and Axis Bank.

Continue reading “Financial Awareness-September(21-30) 2016”

Financial Awareness-September(11-20) 2016

  1. RBI asks banks to accept Income Declaration Scheme tax payments in cash (Source: ET)
  • The Reserve Bank of India has issued a circular asking banks to accept in cash tax payment under the Income Declaration Scheme (IDS) that closes on September 30.
  • “We advise that banks must invariably accept cash, irrespective of amount, over the counters from all declarants who desire to deposit cash at the counters, including deposits under the above Scheme through challan ITNS- 286,” the central bank has told banks while admitting to some reluctance on the part of banks.
  • RBI has in its circular issued on September 8 also pointed to an August 2008 communication to the banks that asks them not to incorporate clauses in the terms and conditions which restricts deposit of cash over the counters. Banks will, however, have to comply with the appropriate Know Your Customer (KYC) requirements for customers and walk-in customers.

2. Huge NPA provisioning by banks limits credit growth: President (Source: Business Line) Continue reading “Financial Awareness-September(11-20) 2016”

Financial Awareness-September(1-10) 2016

  1. Non-food credit growth marginally falls to 9.72 (Source: Financial Express)credit
  • The growth rate of Non-Food Credit of banks slightly declined to 9.72% (Y-o-Y) during the fortnight ended August 19, compared with 9.92% in the previous fortnight, Reserve Bank of India (RBI) data released.
  •  The outstanding non-food credit in the banking system stood at Rs 71.72 lakh crore as on August 19, compared with Rs. 65.63 lakh crore in the same fortnight last year — a rise of Rs 6.09 lakh crore.
  • On the other hand, the rate of growth in deposits improved slightly to 9.19% (Y-o-Y) compared to 8.71% in the previous fortnight.
  • With hardly any growth in project loan sanctions, the credit growth of 9.72% was most likely a function of demand from the retail segment, something which the managements of several large banks have lately spoken about as their focus areas.
  • Another relatively bright spot for loan growth in recent months was the demand for working capital loans.
  • Companies have been moving their borrowings to the corporate bond market due to lower interest rates. In the first quarter of the current fiscal, firms mopped up over Rs 1.3 lakh crore through the corporate bond market, as against Rs 4.6 lakh crore raised in FY16, indicating a shift from bank borrowing.

2. Relief for banks, as FinMin relaxes ‘FATCA’ compliance norm. (Source: Business Line) Continue reading “Financial Awareness-September(1-10) 2016”

RBI Grade B 2016 Phase 2 Result

Those who have appeared for Phase 2 on 19th Sept 2016 can check their result here – https://opportunities.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=3258

Only 680 candidates are selected for the interview.

Many of you prepared hard but didn’t get through due to the unexpected pattern in finance paper which many of the candidates find difficult. Don’t get disheartened and start preparing for next year from now itself and don’t wait for the right time. The right time is here-NOW. Avoid Procrastinating and focus on your goals. Continue reading “RBI Grade B 2016 Phase 2 Result”

Financial Inclusion in India – The Journey so far and the Way Ahead

Speech by Shri S. S. Mundra, Deputy Governor – September 19, 2016 – at the BRICS Workshop on Financial Inclusion in Mumbai

Financial Inclusion is a much-cherished policy objective for us in India and our economic policy has always been driven by an underlying intent of a sustainable and inclusive growth. Although I would not dwell at length about the virtues of financial inclusion before this learned audience, I would still like to draw reference to a profound ILO Declaration of Philadelphia (1944) which states that Poverty anywhere is a threat to prosperity everywhere.” The policy makers in India too i.e. Government of India and the RBI had an early realisation about the implications of poverty for financial stability and have endeavoured to ensure that poverty is tackled in all its manifestations and that the benefits of economic growth reaches the poor and excluded sections of the society.

“Financial Inclusion is the process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low-income groups in particular at an affordable cost in a fair and transparent manner by mainstream institutional players”.

Role of RBI in Financial Inclusion Continue reading “Financial Inclusion in India – The Journey so far and the Way Ahead”