Tag: NS Vishwanathan

Indianomics: SC rejects interest waiver plea; experts discuss implications

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Supreme Court (SC) today offered a partial victory to banks, to Reserve Bank of India (RBI) and the government, as it rejected pleas to extend the 6-month loan moratorium period that was offered by the Reserve Bank last year.

The apex court also ruled that it was not possible to waive off interest charged on loans under moratorium during COVID-19 as banks too have an obligation to pay back depositors and pensioners.

However, it wasn’t all a win-win for banks. The court ruled that any interest on interest charged shall be deemed as penal and will have to be refunded. Further, the court forced about Rs 1.3 lakh crore worth assets to be tagged non-performing by the end of this month. Rajnish Kumar, former SBI chairman, NS Vishwanathan, former RBI Deputy Governor, Suresh Ganapathy of Macquarie Capital Securities and Nilang Desai, Partner at AZB and Partners, discussed the impact of the decisions on the banking ecosystem.

Watch accompanying video for entire discussion.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Former RBI DG NS Vishwanathan to head expert committee on urban co-operative banks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reserve Bank on Monday announced the constitution of an Expert Committee on Primary (Urban) Co-operative Banks, headed by its former deputy governor NS Vishwanathan. The eight-member Expert Committee on UCBs will examine issues and provide a road map for strengthening the sector, leveraging on the recent amendments to Banking Regulation Act, RBI said in a notification on Monday.

RBI had first announced its intention to set up this committee as part of the Statement on Developmental and Regulatory Policies along with the Monetary Policy Statement on February 5. The expert committee is expected to submit its report within three months from the date of its first meeting.

Harsh Kumar Bhanwala, the former Chairman of NABARD, Mukund M Chitale- Chartered Accountant, retired IAS officers NC Muniyappa and RN Joshi, MS Sriram- Professor at IIM Bangalore, Jyotindra M. Mehta- President of NAFCUB (National Federation of Urban Cooperative Banks and Credit Societies), and Neeraj Nigam- Chief General Manager-in-Charge of RBI’s Department of Regulation have been named members of this expert committee.

Its terms of reference include taking stock of the regulatory measures taken by the Reserve Bank and other authorities in respect of UCBs and assess their impact over the last five years to identify key constraints and enablers in fulfillment of their socio-economic objective.

The committee is also expected to Review the current Regulatory/Supervisory approach and recommend suitable measures/changes to strengthen the sector, suggest effective measures for faster rehabilitation/resolution of UCBs and assess the potential for consolidation in the sector. It will also consider the need for differential regulations and examine prospects to allow more leeway in permissible activities for UCBs with a view to enhance their resilience.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Yes Bank crisis: RBI cautions state governments from withdrawing deposits from private banks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) has written a letter to the chief secretaries of all states, warning them of the implications of shifting bank deposits from private to public sector banks.

In a letter penned by outgoing deputy governor NS Vishwanathan, RBI has requested state governments to reconsider any decision to withdraw funds from private banks, as “such a reactive decision will not be in the interest of stability of the financial system in general, and the banking system in particular”.

CNBC-TV18 has reviewed this letter written by RBI.

Deputy governor Vishwanathan starts the letter by saying that RBI had observed through media reports that some of the state governments had advised their government bodies and entities under their jurisdiction to transfer funds from private sector banks to public sector banks and that some other state comes were also contemplating similar action.

“We strongly believe that such a move can have banking and financial sector stability implications,” the letter read, adding that the central bank has enough powers to regulate and supervise private sector banks.

“It is pertinent to mention that the resolution of weak private sector banks in the past has been done in a manner that the depositors are not put to loss. It is precise with a view to retaining depositors confidence in private sector banks and mitigating their hardship that, after the imposition of a moratorium on Yes Bank, the RBI has drawn up a draft scheme without any delay, and we are making every effort to expedite the finalisation of the scheme.”

The letter comes after several reports had suggested that in the fallout of the Yes Bank crisis, which recently saw RBI imposing a moratorium on the bank and restricting withdrawals by depositors, state governments like Maharashtra were considering moving deposits to public banks.

Ajoy Mehta, chief secretary of Maharashtra, was quoted in reports saying, “We have already issued an order asking for all departments and civic bodies to not have deposits in private banks but in nationalised banks.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBI Deputy Governor Vishwanathan should have got two-year extension, says predecessor HR Khan

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The central government today reappointed NS Vishwanathan as RBI deputy governor for a period of one year. His first term was to end on July 5.

Vishwanathan is considered as a strict and committed officer and the best person to deal with the problems of the financial sector.

Former RBI deputy governor HR Khan, who was succeeded by Vishwanathan, said he was delighted with the extension. “I wish he had got an extension for at least two years, but nevertheless it is good for continuity given his capacity and commitment. We have to provide some continuity in terms of banking regulations and in the non-banking segment,” he noted.

“He is a man who focuses on prudential and stability aspects, who when needed, can also be pragmatic. He is not rigid or inflexible,” Khan added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow