Category: RBI–Banks

SBI DGM [Economist]–” FCNR[B] benefits outwieigh costs “–[1] Hedging cost $16.3 billion while investment income [ US Treasury ] will be $22.4 billion –net surplus being $6.1 billion [ which translates into -Rs.58372 crores at the current exchange rate [2] So it will not be fiscal drag [3] Liquidity dynamics –12 trillion of rupee liquidity offers much relief to banks to lend to the productive sectors and it eases  elevated CD ratio [3] Banks may need couple of quarters to use these surplus funds [4] RBI’s forward position will be taken care of [ $100 billion short dollar position with $40 billion maturing within an year –As these positions unwind, liquidity will automatically contract [5] September and October which  are — traditionally liquidity strained months –because of advance tax, credit growth–capex revival, government borrowing and import payments ahead of Diwali & festival induced purchases –will have absorbed much of this surplus–Article by Mr Bibekananda Panda — Courtesy BL

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RBI Guv on fintechs–[1] Helped bridge India’s MSME’s credit gap by extending formal, collateral like credit to millions of small businesses that were invisible to traditional underwriting models-[2] Fintechs have taken banking from the branch to the hand of every citizen [3] Fintechs have improved customer experience and efficiency in India’s financial infrastructure, reducing account opening and payment settlement times, cutting transaction costs, strengtheing fraud detection through AI driven analytics–enabling real time supervision– Courtesy BL

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BL editorial criticises SBI for Rs.15 levy plus GST when Basic Savings Account holders withdraw cash via ATMs–more than 4 times a month–[2] Editorial questions the levy on the ground of being unfair [ and defies logic ] and stresses the fact that the levy will be borne by the low income households & casual labourers among others [3] Further points out that Bank’s quarterly profits are Rs.20000 crore plus [4] SBI earned 286 crores via ATM charages and Rs-232 crores via recovery of penalty for not maintaining minimum balance.

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अग्रलेख : मिरवावे असे काही…

भारताने जगास दिलेली ‘यूपीआय’ सेवा दहा वर्षांची होत असताना, आपल्याकडील मोबाइल देव-घेव ३१४ लाख कोटी रुपयांवर गेली आहे… https://www.loksatta.com/sampadkiya/editorial/upi-10-years-digital-payment-revolution-india-nandan-nilekani-pramod-varma-ssb-93-6098983/?ref=hometopblock_hp ‘‘भारतीय बँकिंग क्षेत्र ज्या क्रांतीच्या प्रतीक्षेत

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