Skip to main content

Govt says no question of closing any PSB

Govt says no question of closing any PSB
Dismissing rumours, both the government and the Reserve Bank said on Friday there was no question of closing any public sector bank (PSB).
The decision of the Reserve Bank to initiateaPrompt Corrective Action (PCA) against large stateowned Bank of India led to rumours that the government may close down some banks.The RBI said it has come across some "misinformed communication" in some section of media, including social media, about closure of some PSBs in the wake of their being placed under the PCA.
The government, too, dismissed the rumours, saying on the contrary, it is planning to strengthen stateowned banks."The government is strengthening PSBs by Rs 2.11 lakhcrore recapitalisation plan.Do not believe rumour mongers.Recap, Reforms road map for PSBs firmly on track," said financial services Secretary Rajeev Kumar inatweet.
The RBI said, "the PCA framework is not intended to constrain normal operations of the banks for the general public".The central bank had issued a similar clarification in June also.It emphasised that the PCA framework has been in operation since December 2002 and the guidelines issued on April 13 are onlyarevised version of the earlier framework.
Besides Bank of India, the RBI has also initiated similar action against other PSBs, including IDBI Bank, Indian Overseas Bank and UCO Bank.The RBI said that under its supervisory framework, it uses various measures/tools to maintain sound financial health of banks
"The PCA framework is one of such supervisory tools, which involves monitoring of certain performance indicators of the banks as an early warning exercise and is initiated once such thresholds as relating to capital, asset quality etc. are breached," it said.
Banks lost Rs 16,789 crore on account of fraud in financial year 201617, the finance ministry said in the Lok Sabha on Friday.Finance Shiv Pratap Shukla said an interdisciplinary standing committee on cybersecurity was constituted by the RBI comprising academia, information security audit, forensic and cybersecurity experts.
The committee reviews threats inherent in existing or emerging technology, and suggests policy intervention.In another reply, he said incidents of bank robbery, theft, dacoity and burglary were reported from different parts of the country during 201617. The amount involved in such incidents totalled about Rs 65.3 crore.

The Business Standard, New Delhi, 23th December2017

Comments

Popular posts from this blog

Deposit gush:-CA Institute Bats for Special Audit

Obligation for the Month of May 2017

Obligation for the Month of May 2017 Event DateActApplicable FormObligation6-May-2017Service TaxChallan No.GAR-7E-Payment of Service Tax for April by Cos7-May-2017Income TaxForm No.27C (TCS)Submission of Forms received in Apr  to IT Commissioner7-May-2017Income TaxChallan No.ITNS-281Payment of TDS/TCS deducted/collected in Apr10-May-2017ExciseER-1Return for Non SSI assessees for Apr10-May-2017ExciseER-2Return for EOUs for Apr10-May-2017ExciseER-6Return by units paying duty >  1 crore (CENVAT + PLA) for Apr12-May-2017D-VATBE - 2Advance information for 2nd fortnight of May of functions with booking cost > Rs 1 lakh in Banquet Halls,hotels etc. in Delhi15-May-2017D-VATDVAT-20Deposit of DVAT TDS for  Apr15-May-2017Income TaxForm 27EQTCS Returns by ALL Collectors15-May-2017Providend FundElectronic Challan cum Return (ECR)E-Payment of PF for Apr15-May-2017D-VATDVAT-48 Return of DVAT TDS for quarter ending March21-May-2017ESIESI ChallanPayment of ESI of Apr21-May-2017M-VATMVAT ChallanPa…

RBI minutes show MPC members flagged upside risks to inflation

RBI minutes show MPC members flagged upside risks to inflation Concerns about economic growth and easing inflation prompted five of the six monetary policy committee (MPC) members to call for a cut in the repo rate, but most warned that prices could start accelerating, show the minutes of the panel’s last meeting, released on Wednesday. The comments reflected a tone of caution and flagged upside risks to inflation from farm loan waivers, rise in food prices, especially vegetables, price revisions withheld ahead of the goods and services tax, implementation of house rent allowance under the 7th pay commission and fading of favourable base effect, among others. On 2 August, the panel chose to cut the repurchase rate—the rate at which the central bank infuses liquidity in the banking system—by 25 basis points to 6%. One basis point is one-hundredth of a percentage point. Pami Dua, professor at the Delhi School of Economics, wrote that her analysis showed “a fading economic growth outlook, as …