Bankers Trust:

RBI at risk of losing autonomy?

RBI at risk of losing autonomy?

At first glance, the revised draft of the Indian Financial Code released last week, 853 days after the Financial Sector Legislative Reforms Commission (FSLRC) published the first draft, seems to be a balancing act. It has recommended substantial dilution of the powers of the proposed Financial Sector Appellate Tribunal (FSAT). This will replace the existing Securities Appellate Tribunal and entertain appeals against all financial sector regulators, including the Reserve Bank of India (RBI), but won’t have the powers to set aside any regulations which the first draft had envisaged.

Bankers Trust:

Why bond yields are high

Why bond yields are high

The Reserve Bank of India (RBI) will sell up to Rs.10,000 crore worth of government bonds on Monday to drain excess liquidity from the banking system—the first so-called open market operation (OMO) this fiscal year. The liquidity in the system is in surplus but banks are not in a mood to cut loan rates further.

Bankers Trust:

Let banking be fun, not fear

Let banking be fun, not fear

In an interview with this newspaper last week, Rajiv Lall, vice-chairman and managing director of IDFC Bank Ltd, which is awaiting the banking regulator’s final nod to start operations in October, said: “The way the world is moving, branches are becoming less relevant for a connect with customers. The goal is really to use technology intelligently in a way that it builds a trusted relationship with customers at scale and at lower cost.” IDFC Bank will have five branches in Mumbai and Delhi and 15 for its so-called Bharat banking operations in Madhya Pradesh.