Indian Banks & Financial System

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Jamal K. Malik
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Indian Banks & Financial System

Postby Jamal K. Malik » 07 Jul 2009 22:33

In Technology & Economic Forum,there is no dedicated thread for our vast and fast growing Indian banks and financial system.Current crisis in Global market is the example of our strength and governance in banking and financial sectors.So this thread is meant to news and discuss the Indian banking system as well as financial system.Here we can also discuss the RBI and Indian Government's planning and policies to govern this systems.


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Re: Indian Banks & Financial System

Postby Jamal K. Malik » 07 Jul 2009 22:47

India’s External Debt as at the end of March 2009
(i) India’s external debt, as at end-March 2009, was placed at US $ 229.9 billion (22.0 per cent of GDP)
(ii) As per an international comparison of external debt of the twenty most indebted countries, India was the fifth most indebted country in 2007.


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Re: Indian Banks & Financial System

Postby Jamal K. Malik » 08 Jul 2009 00:04

Expansion of banking network in the country off-site ATMs without prior approval
For a country like ours, with significant sections of unbanked population and regions, financial inclusion is vital for sustaining long term equitable development the Finance Minister said. As part of the financial inclusion drive, scheduled commercial banks have been opening ‘no frills’ accounts either with ‘nil’ or very low minimum balances. So far, these banks have opened 3.3 crore such accounts, he added.

A gift to unbanked blocks in country and this will change the banking in Rural India.

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Re: Indian Banks & Financial System

Postby Chinmayanand » 08 Jul 2009 03:12

Why does ICICI Bank ask for INR10,200 as a minimum deposit for a new savings bank account while govt banks and others demand less? :((
Can anyone shed some light on RBI guidelines regarding this?

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Re: Indian Banks & Financial System

Postby Virupaksha » 08 Jul 2009 03:20

durgesh wrote:Why does ICICI Bank ask for INR10,200 as a minimum deposit for a new savings bank account while govt banks and others demand less? :((
Can anyone shed some light on RBI guidelines regarding this?

its their business model. They dont want to deal with the poor people who have accounts with only salary of 3-4000 coming into their account and the next day they empty it so as to run their households. The minimum deposit of 10000 is another way of saying only rich are welcome.

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Re: Indian Banks & Financial System

Postby Jamal K. Malik » 08 Jul 2009 13:52

durgesh wrote:Why does ICICI Bank ask for INR10,200 as a minimum deposit for a new savings bank account while govt banks and others demand less? :((
Can anyone shed some light on RBI guidelines regarding this?

RBI has not issued any guideline regarding minimum balance.

http://www.rbi.org.in/commonman/English/Scripts/Notification.aspx?Id=144

Reserve Bank of India has not issued any guidelines regarding the minimum balance to be maintained in savings bank accounts. The banks have been prescribing the minimum balance to be maintained taking into consideration the cost involved in maintaining and servicing such accounts and also levying specific charges, if minimum balance is not maintained. There is, however, no uniform approach in this regard.


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Re: Indian Banks & Financial System

Postby bart » 08 Jul 2009 20:10

ravi_ku wrote:
durgesh wrote:Why does ICICI Bank ask for INR10,200 as a minimum deposit for a new savings bank account while govt banks and others demand less? :((
Can anyone shed some light on RBI guidelines regarding this?

its their business model. They dont want to deal with the poor people who have accounts with only salary of 3-4000 coming into their account and the next day they empty it so as to run their households. The minimum deposit of 10000 is another way of saying only rich are welcome.


They dont mind if it is a salary account, most salary accounts are zero-balance anyway. But yes they dont want very small deposits from individual SB account holders.

Also, ICICI provides a lot more facilities than govt banks, and is ahead in terms of convenience etc. So I think 10k is pretty reasonable. Even SBI has a 'personal banking' branch network where the service is supposed to be better just like private banks, where the minimum balance is 10k.









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Re: Indian Banks & Financial System

Postby Jamal K. Malik » 13 Jul 2009 22:56

Unclaimed EPFO money cannot be utilised: Government
The Government on Monday said it has no plans to utilise unclaimed money of Employees Provident Fund Organisation (EPFO) which has
accumulated to the tune of Rs 3,837 crore, even as EPFO is making efforts to trace those who have not taken their dues.

Rs 3,837 crore :shock: :shock:

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Re: Indian Banks & Financial System

Postby manju » 14 Jul 2009 01:21

I am waiting for my 6 lakhs to be refunded to me for the last 6 months.

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Re: Indian Banks & Financial System

Postby Jamal K. Malik » 14 Jul 2009 18:35

IIFCL meets today to decide on Rs 10k cr unused fund
The board of India Infrastructure Finance Company Ltd (IIFCL) is meeting tomorrow to look at ways to create demand for the Rs 10,000 crore that it had raised earlier this year to refinance highways and port projects. The New Delhi-based financial institution has not received a single proposal for the fund.



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Re: Indian Banks & Financial System

Postby Jamal K. Malik » 18 Jul 2009 00:44

Govt to raise Rs 12,000 crore from sale of bonds

Govt. borrowing will push the interest rate northward.
:cry: :cry: :cry: :cry:



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Re: Indian Banks & Financial System

Postby Jamal K. Malik » 18 Jul 2009 00:51

Merger of SBI and its subsidiary banks
Government has not given direction to any specific bank to consider proposal for merger/amalgamation with a particular bank. The initiatives for consolidation emanate from the management of the banks themselves with Government playing a supportive role as the common shareholder. While supporting any merger proposal, Government keeps in view the interests of the stakeholders and employees of merging banks.

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Re: Indian Banks & Financial System

Postby Jamal K. Malik » 18 Jul 2009 00:53

Credit Card frauds
Reserve Bank of India (RBI) has issued a Master Circular on credit card operations by banks whereby the card issuing bank / Non-banking Finance Company (NBFC) is required not to reveal any information relating to customers obtained at the time of opening the account or issuing the credit card to any other person or organisation without obtaining the specific consent of the customers as regards the purpose for which the information will be used and the organisation with whom the information will be shared. The card issuing banks / NBFCs are required to follow these guidelines scrupulously.

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Re: Indian Banks & Financial System

Postby Jamal K. Malik » 18 Jul 2009 00:54



ramana
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Re: Indian Banks & Financial System

Postby ramana » 22 Jul 2009 00:46

Jamal K. Malik wrote:Merger of SBI and its subsidiary banks
Government has not given direction to any specific bank to consider proposal for merger/amalgamation with a particular bank. The initiatives for consolidation emanate from the management of the banks themselves with Government playing a supportive role as the common shareholder. While supporting any merger proposal, Government keeps in view the interests of the stakeholders and employees of merging banks.



How big are big Indian banks in global picture?

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Re: Indian Banks & Financial System

Postby Jamal K. Malik » 26 Jul 2009 00:28




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Re: Indian Banks & Financial System

Postby Katare » 28 Jul 2009 23:44

ramana wrote:Merger of SBI and its subsidiary banks
Government has not given direction to any specific bank to consider proposal for merger/amalgamation with a particular bank. The initiatives for consolidation emanate from the management of the banks themselves with Government playing a supportive role as the common shareholder. While supporting any merger proposal, Government keeps in view the interests of the stakeholders and employees of merging banks.



How big are big Indian banks in global picture?


Indian banks are little babies…….

Pre-financial meltdown thought process was that large consolidated banks are needed to rule the global financial markets. The new thinking at least from market stability POV, is that it is a bad idea as extra large banks create systemic collapse issues for entire economy.

US has/had largest banks but it also has 9000 independent small banks. In some ways they were a sperm like creature with very large head supported on a extremely long tail. The long tail struggled to stabilize the large head, the thinking now is to reduce the size of head and fatten the size of torso by reducing the length of tail :roll:

India needs a couple of extra large international size banks with balance sheet close to 50-75% of Indian GDP to take on the foreign competition and provide highly sophisticated financial products to Indian/foreign corporates. We also need a large fat torso (a couple of dozen large banks ~1-10% of GDP)with long tail consisting of thousands of small banks having small balance sheets working with rural folks.

Consolidation of SBI's subsidiaries would not make SBI balance sheet much bigger than what it is right now. It'll bring management synergy and cost reduction which will save capital that can than be invested in growing. That's why bank employees are against the move.

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Re: Indian Banks & Financial System

Postby Jamal K. Malik » 31 Jul 2009 18:19


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Re: Indian Banks & Financial System

Postby Chinmayanand » 17 Aug 2009 06:10


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Re: Indian Banks & Financial System

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Re: Indian Banks & Financial System

Postby Malayappan » 28 Oct 2009 13:14

India's Financial Sector in Current Times, S Guhan Memorial Lecture by YV Reddy, Business Standard, Oct 26, 2009

It is worth reading in full. He asks and answers questions on macro economic management, banking etc etc.

Just one excerpt! -
First Question: Is macro economic management reasonably balanced?

The answer is obviously yes – by and large. We have no excessive current account surplus or deficit; no excessive dependence on exports or external demand; no excessive reliance on investment or consumption expenditure; and, no excessive leverage in most households or corporates or financial intermediaries.

We are, however, vulnerable to shocks on four fronts: Fuel; Food; Fiscal; and Finance – external. In regard to fiscal, the quality of management and subordination of monetary policy continue to be issues. On external sector, the quality of capital flows will continue to be an area of concern. In particular, quality of FDI (Foreign Direct Investment) also deserves a close look, in terms of extent to which FDIs are financing green field projects.


There are nine such questions he poses and answers


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