Mumbai: A team of experts constituted by the Reserve Bank of India is in the process of investigating the reasons for the breakdown of HDFC Bank’s digital banking channels which caused for millions of customers to be locked out of their net banking and mobile banking accounts for over 48 hours earlier this week. “We are cognizant of the problem. It happened on 2nd of December due to technical glitches and restored on Tuesday” said the deputy governor MK Jain at Monetary Policy press conference responding to a query on whether the regulators will penalize banks such incidences. “Our team has gone to identify the reasons (for the breakdown) and find out what we can give as directions (to the bank).” Following the payday outage at the most valued lender in the country, several customers unable to access their salary accounts to make bill payments on time expressed their displeasure on twitter even as #hdfcbankdown trended on Monday and Tuesday across the … [Read more...] about RBI investigating ‘net banking’ breakdown at HDFC Bank
Indian private banks
NEW DELHI (AP) — A former Indian finance minister just released on bail in a bribery case joined a protest Thursday of the government’s economic policies, which are being blamed for India’s slowest economic growth in six years. Former Finance Minister P. Chidambaram said the lower growth rate was pushing millions of people into poverty and he will raise the issue in Parliament. He joined his Congress party’s protest hours after his release on bail. On Wednesday, India’s Supreme Court ordered Chidambaram released in the case involving alleged bribery and money laundering benefiting his son’s company when he was the finance minister in 2006. He denied the allegations and accused Prime Minister Narendra Modi’s government of pursuing a political vendetta. India’s economic growth was 4.5% in July-September, down from 7.4% in February this year, Chidambaram said on Thursday. He also said that there was no demand in the market because people … [Read more...] about Former Indian finance minister protests economic policies
NEW DELHI: The Central Information Commission has issued a show-cause notice to the Reserve Bank of India for not appearing before it in a matter pertaining to disclosure of inspection reports of HDFC Bank, calling it "casual" approach. The transparency watchdog has directed the Central Public Information Officer of the Department of Banking Supervision of the RBI to explain why penal provisions under the transparency law should be not invoked against him for his absence. In a stern order, Information Commissioner Suresh Chandra said that after adverting to the facts and circumstances of the case, hearing the appellant and perusal of records, he felt that in view of the absence of the respondent the relevant facts of the case could not be ascertained. Priti Ranjan Das had approached the commission on behalf of HDFC Bank with an appeal against the disclosure of information to RTI applicant Girish Mittal who had sought inspection reports of the private bank from the RBI since 2011. … [Read more...] about CIC issues show-cause notice to RBI for casual approach to its notice
Britain’s relationship with Europe is low down on the list of concerns for most voters in the coming election, but the subject of the “Brexit” – Britain’s secession from the European Union – will come to dominate our political lives should the Conservatives find themselves in some kind of power after 7 May. David Cameron has promised a 2017 referendum on our place in the EU, a referendum our survey suggests is favoured by the majority of the population. The result of any plebiscite looks less certain, with those wishing to leave Europe just outnumbering those likely to vote for the status quo, but there are still many undecided. The arguments on either side are clear. If you’re a Eurosceptic, the impositions of European Union bureaucracy are daily infuriations, with Britain supposedly ceding control to Brussels of immigration policy, of its legal system, of its famously curved cucumbers. Britain contributes a small fortune to the European Union … [Read more...] about What would happen if Britain left the EU?
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Thursday maintained status quo on repo rate, the rate at which it lends to banks, recognising the rise in inflation caused by soaring food and vegetable prices. It is for the first time that the MPC led by Shaktikanta Das turned hawkish ever since the new governor took over exactly a year ago last December. In fact, Das said it in as many words that “inflation control is the prime objective of RBI’s money policy.” The repo rate stood at 5.15 per cent post the policy review. Accordingly, the reverse repo rate under the LAF remained unchanged at 4.90 per cent, and the marginal standing facility (MSF) rate and the bank rate at 5.40 per cent. The MPC, however, decided to “continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.” Here are key takeaways from the money policy review: GDP projection … [Read more...] about Has Guv Das turned hawkish? Key takeaways from RBI money policy