Rbi

Money laundering: NABARD gives clean chit to cooperative banks

Mumbai: Amid allegations of cooperative banks being used as conduits for money laundering, NABARD, which jointly regulates such lenders, has said that it has found no shortcoming pointing towards any such activity.

"Every year we do an inspection and we have not found anything like that," National Bank for Agriculture and Rural Development's (NABARD) chairman Prakash Bakshi told reporters over the weekend, when asked about the recent controversy over money laundering.

A probe launched by Reserve Bank of India following allegations of non-compliance with anti-money laundering measures and know your customer (KYC) norms by top private banks has reportedly found that cooperative banks are used as conduits.

Not having the entire bouquet of service offerings, the cooperative banks tie-up with scheduled commercial banks to expand their reach. Co-operative banks can accept cash under Rs 50,000 from customers (the limit at which reporting to tax authorities sets in). They usually earn commission from larger banks for providing services. ...more    

'RBI likely to cut policy rates at its June 17 meeting'

New Delhi: Taking a cue from the continued downward surprises in inflation and sluggish growth indicators, the Reserve Bank of India is likely to go for further monetary easing in its June 17 policy meet, global investment banking majors have said. The headline wholesale inflation fell to 41-month low in April (4.89 per cent), dropping within the central bank's comfort zone of less than 5 per cent and fuelling market...  

Corporate reputations for fair play can be fluff when regulators sleep

Espresso Economics |  Vivian Fernandes

A 19 October, 2011 circular of the National Housing Bank says no penalty or fee for prepayment of home loans can be charged, provided the ...

RBI to take note of falling inflation in next policy review

Frankfurt: The Reserve Bank of India (RBI) has said it would take into account falling inflation while deciding on policy initiative in its review next month. "We certainly will take note of the softening of inflation and the external payments situation in the next mid-quarter policy statement on June 17," RBI Governor D Subbarao said at an event in Frankfurt on Tuesday. He said he was happy to see that...  

RBI to take note of lower inflation: Duvvuri Subbarao

Frankfurt: The Reserve Bank of India will take note of falling inflation when discussing potential interest rate cuts, the central bank's Governor Duvvuri Subbarao said on Tuesday, adding he was very happy about the falling inflation. Asked about potential interest rate cuts in light of falling inflation, Subbarao said they would be taken into account and in future central bankers "will take note of softening inflation." The headline wholesale inflation...  

Finance Ministry sees room for easing of rate by RBI

New Delhi: Encouraged by the declining trend in inflation, the Finance Ministry on Tuesday made a case for further rate cut by the Reserve Bank to boost sagging growth. "I think we need to look at statement made by RBI Governor during the last policy review where he had stated that RBI is closely monitoring inflation figures and if there is dramatic change in inflation figures then RBI will take...  

Don't staple note packets, issue clean notes: RBI to banks

Mumbai: The Reserve Bank of India (RBI) has directed banks to do away with stapling of note packets and issue only clean currency notes to the public. "...banks should do away with stapling of any note packet and instead secure note packets with paper bands and should sort notes into re-issuables and non-issuables, and issue only clean notes to public," it said in a notification. It also asked banks to...  

Suzlon bags 90 million euros contract in Germany

New Delhi: REpower Systems SE, part of wind turbine maker Suzlon group, has bagged an order worth 90 million euros (over Rs 639 crore) for four wind power projects in Germany. A contract has been received from B rgerwindpark im Kirchspiel Medelby GmbH & Co KG for supplying 27 wind turbines to four projects worth 90 million euros, Suzlon said in a statement on Tuesday. The turbines are scheduled to...  

Bombay HC quashes arbitration award in Tulip Hotel case

Mumbai: In a judgement that might clear the way for the land development in Tulip Star property, the Bombay High Court has set aside an arbitration award which had held that the agreement between Siddhivinayak Realties and V Hotels stood terminated. Siddhivinayak Realties is a joint venture between Oberoi Realty and DB Realty founders Shahid Balwa and Vinod Goenka, while V Hotels is currently the owners of the Tulip Star...  

RBI puts restrictions on gold imports by banks

Mumbai: With gold imports putting pressure on the current account deficit, the Reserve Bank on Monday imposed restrictions on import of the yellow metal by banks. "To moderate the demand for gold for domestic use, it has been decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs of exporters of gold jewellery," the RBI said in a statement. As per a...  

Money laundering: RBI action soon; banks start cracking whip

Srinagar/Chandigarh: Amid fresh allegations of money laundering by banks, RBI and several banks on Thursday said actions are being taken against erring institutions and employees for violating prudential banking norms. The central bank has already completed investigations against banks and would take action against guilty institutions, RBI Governor D Subbarao said in Srinagar. "We have done investigations, we have prepared an internal report. There are processes to be followed to...  

No criminality in Cobrapost findings: SBI

Chandigarh: Bank officials' advices of splitting deposits to evade taxes, as exposed in a sting operation by an online news portal, are "undesirable loose talks" but there is no apparent criminality, SBI Chairman Pratip Chaudhuri said on Thursday. "Prima facie, things that have come to our notice it looks (that) there is no criminality in the sense that somebody has suggested splitting up your deposits, say Rs 50 lakh into...  

Action against banks involved in money laundering soon: RBI

Srinagar: The Reserve Bank of India (RBI) on Thursday said it has completed investigations against banks following the Cobrapost expose and will take action if they are found guilty of violating prudential banking norms. "We have done investigations, we have prepared an internal report. There are processes to be followed to take investigations to its logical closure...The first is action against individual institutions who are involved in practises which are...  

WB chit fund scam: CPM seeks CBI probe into Saradha issue

New Delhi: Claiming that names of top political persons are surfacing in the chit fund scam in West Bengal, a CPI (M) member on Wednesday sought a CBI enquiry into unregulated money raising activities in the wake of Saradha Group allegedly defrauding investors of their money. Prasanta Chatterjee, a CPI-M MP, demanded a CBI probe into the issue through a Special Mention in the Rajya Sabha. "... since many poor...  

Difficult to cut interest rates soon: Banks

Mumbai/ New Delhi: Big banks say it will be difficult for them to pass on the benefit to customers even though the Reserve Bank of India (RBI) cut repo rate by 25 basis points on Friday even though the cash reserve ratio was left untouched. The banks say RBI's move is not enough to cut interest rates for customers. The State Bank of India (SBI) said there is not much...  

Highlights of RBI's monetary policy 2013-14

Mumbai: Sticking to its cautious stance, the Reserve Bank on Friday cut the key interest rate by just 0.25 per cent to 7.25 per cent and kept the liquidity enhancing cash reserve requirement unchanged, disappointing the industry and stock market. The RBI in its annual monetary policy statement said there would be modest improvement in the country's economic growth to 5.7 per cent in the current fiscal, as against the...  

RBI cuts repo rate by 0.25 pc, CRR unchanged

Mumbai: In a move that is likely to bring cheers to the consumers, the Reserve Bank of India (RBI) cut repo rate by 0.25 per cent on Friday for the third time since January. The cut may lead to softening of loan EMIs. Following the 25 basis points cut, the repo rate stands at 7.25 per cent, its lowest since May 2011 even as Cash Reserve Ratio (CRR) has been...  

RBI likely to cut interest rates to prod sputtering economy

Mumbai: The Reserve Bank of India (RBI) is expected to cut its policy interest rate by a quarter point on Friday for the third time this year as it looks to bolster an economy growing at a decade low and takes comfort from easing inflation. While investors are hoping to hear a less-hawkish tone from RBI Governor Duvvuri Subbarao, the RBI in its report on macroeconomic and monetary developments on...  

Inflation seen range-bound this fiscal, says RBI

Mumbai: Inflation is likely to be range-bound and stay around the current levels in this financial year as supply-side issues, along with recent price adjustments in fuel prices, will offset the recent gains, the Reserve Bank of India said on Thursday. "Headline inflation in 2013-14 is expected to remain range-bound around the current levels," RBI said in its annual Macroeconomic and Monetary Developments report. "While sluggish global growth may dampen...  

RBI sees 'very limited' room to ease monetary policy

Mumbai: The Reserve Bank of India (RBI) on Thursday warned of "very limited" space for further easing of monetary policy this fiscal year, striking a hawkish tone a day before it was expected to cut interest rates by 25 basis points for the third time in 2013. The central bank's cautious language in its report on macroeconomic and monetary developments could dent rising market hopes for RBI Governor Duvvuri Subbarao...