banking news updates

RBI to soon come up with vision document on payment systems: RBI will soon be releasing a new vision document for the development of payment systems in the country, which will spell out the broader direction of regulation, its Deputy Governor said. (BS) § Public sector banks losing market share: Brickwork: Private sector banks are gradually gaining market share at the expense of PSBs, according to Bengaluru-based credit rating agency Brickwork Ratings. The agency, in its first Bank Book, estimated that PSBs have lost market share by about two per cent and the same has been gained by private sector banks in FY15. (BL) § A robust insolvency resolution system can speed up loan recovery for banks: Banks can now hope to recover more from their bad loans, if the Bill to consolidate and amend all laws relating to insolvency resolution is passed in the Lok Sabha. Currently, banks take as long as 15 years in certain cases to recover their money, which substantially erodes the value of the assets. (BL) § RBI Governor heeded advisory panel members on rate pause: RBI Governor heeded the consensus of the technical advisory committee on monetary policy to keep policy rates unchanged in the central bank’s fifth bi-monthly monetary policy on December 1, edited minutes of the consultation with external members, which happened through emails, showed. (BS) § December policy: RBI Governor went with majority view for status quo: By keeping the policy repo rate unchanged at 6.75 per cent in the fifth bi-monthly monetary policy statement, Reserve Bank of India Governor Raghuram Rajan heeded the advice of a central bank panel that the rising inflation itself should warrant no change in financial accommodation. (BL) § RBI: No deadline for resolving complaints by banking ombudsman: There is no time limit for resolution of complaints under Banking Ombudsman scheme, aimed at seeking redressal of customers' common complaints against banks, RBI has said. (FE) § CEA for wider tax base, better quality spending in FY17: Nominal GDP growth in the next fiscal “might not be significantly greater” than the sharply reduced estimate of 8.2% for the current year, the government’s chief economic adviser, Arvind Subramanian, told. (FE) § India's Q2 current account deficit narrows to $8.2 bn: India’s CAD narrowed to $8.2 billion (1.6% of GDP) in the September 2015 quarter from $10.9 billion (2.2% of GDP) in the year-ago quarter. However, CAD was up on a sequential basis from $6.2 billion (1.2% of GDP) in the June 2015 quarter. (BS) § ‘Falling exports no cause for panic’: The Centre has said that the continuous fall in exports in the first eight months of the current fiscal is no cause for panic as the decline is largely in the area of petroleum products and has not increased the country’s CAD or impacted the value of the rupee. (BL) § EPFO plans marginal hike in interest rates this fiscal: The Employees’ Provident Fund Organisation is considering a marginal hike in the interest rate on provident fund deposits to about 8.9 per cent this fiscal from the return of 8.75 per cent in 2014-15. (BL) § IDBI Bank may be first on the block when strategic sale process is ready: The government’s disinvestment programme appears to have come undone due to lacklustre market conditions and the reluctance of the bureaucracy to push strategic sale of public sector units for fear of enquiry. (BL) § Life insurers may face restriction on opening new offices if expenses of management exceeded: IRDAI said there could be restrictions on performance incentive to MD, CEO, whole-time directors and key management persons if a life insurance company does not comply with the expenses of management guidelines. (BS)