Khan supersedes 3 EDs to become RBI Dy Governor

Mumbai: Harun Rashid Khan on Monday took over as Deputy Governor of the Reserve Bank of India replacing Shyamala Gopinath who retired last month. Khan who has been appointed for a period of three years and will look after Central Security Cell, Department of External Investments and Operations, Department of Government and Bank Accounts, Department of Payment and Settlement Systems, Foreign Exchange Department, Internal Debt Management Department and Inspection Department.

After interviewing seven RBI executive directors in May, a panel headed by RBI Governor D Subbarao had suggested H R Khan and G Gopalakrishna for the post. The finance ministry cleared Khan’s appointment for the deputy governor’s post. The final clearance was from the Appointments Committee of the Cabinet — headed by the Prime Minister.

“Khan superseded three executive directors (V K Sharma, V S Das and G Gopalakrishna),” said a source.

Meanwhile, G Padmanabhan assumed charge as Executive Director of the RBI on Friday. As ED, Padmanabhan will look after IT, Payment and Settlement Systems and Foreign Exchange.

Source: Financial Express

Read more »

G Padmanabhan takes over as RBI executive director

G Padmanabhan today assumed charge as Executive Director of the Reserve Bank.

Padmanabhan will look after Department of Information and Technology, Department of Payment and Settlement Systems and Foreign Exchange Department, RBI said in a statement.

Prior to his latest appointment, Padmanabhan was heading the Department of Payment & Settlement Systems in RBI since March 2005.

Source: Business Standard

Read more »

Dhanlaxmi Bank forays into gold retailing

Mumbai: Dhanlaxmi Bank, one of India's fastest growing mid-size private sector banks, today said it has entered the gold retailing business with the launch of 'Dhan' gold coins.

The 24-carat gold coins will be available in a tamper-proof pack in two denominations of five and 10 grams at the bank's 275 branches across the country, Dhanlaxmi Bank said in a statement here.

'Dhan' gold coins with a purity of 99.99 per cent will carry Assay certification, signifying highest purity of gold as per international standards. The pure gold coins will be imported from Switzerland based PAMP S.A. Geneva (Produits Artistiques Metaux Precieux), one of the world's premier gold refiners, it said.

The launch of gold retailing marks the second phase of the bank's bullion business. In June 2011, the bank rolled out its wholesale initiative - 24-carat gold bars weighing one kilogram.

"The launch of gold retailing is part of the bank's overall strategy to be a leading provider of end-to-end investment products and services across all verticals. With this launch, we aim to become one of the leading players in the bullion business in the next couple of years," Dhanlaxmi Bank's Chief Financial Officer Bipin Kabra said. India is the highest consumer of gold commanding 20 per cent of world's market share. According to World Gold Council, India had imported 918 tonnes of gold in 2010 far exceeding 2009 levels.

"We see a lot of potential in gold as an asset class. With higher disposable income and near term inflationary expectations, investment in gold will allow investors to hedge and diversify their savings and investment portfolio," Kabra said.

In 2010, global gold demand reached a 10 year high of 3,812.2 tonnes. Demand was up nine per cent year-on-year, and marginally above the previous peak of 2008 despite a 40 per cent increase in the annual average price level between 2008 and 2010.

Source: Financial Express

Read more »

RBI names HR Khan as new deputy governor

The Reserve Bank of India (RBI) named executive director HR Khan as a new deputy governor, effective Monday, for a period of three years.

Shyamala Gopinath, one of the four deputy governors, had retired last month.

Khan will be in charge of the Department of External Investments and Operations, Foreign Exchange Department, Internal Debt Management Department and Inspection Department and some others, the Reserve Bank of India said in a release.

Source: Business Standard

Read more »

Now, India Post in 'post bank' avatar

New Delhi: In a major exercise to boost its profitability, the Department of Posts (DoP) plans to introduce core banking solutions besides setting up India Post ATMs and debit cards for its customers.

"We have set target of bringing in core banking solution by 2012. It will ensure smooth online transactions. We are giving some e-payment services, but they are fragmented," a top offical from Department of Post said.

He added that the work for setting up 1,000 India Post ATMs was in advanced stage and DoP had already held parleys with vendors on this front. "We will also issue debit cards to our existing savings account-holders," the source added.

The DoP is tying up with banks so that customers can use their India Post debit card at any ATM machine pan-India.

With a network reach of over 1.44 lakh post offices, DoP hopes to transform itself into a post bank.

"Yes, this is very much possible. We are offering three-fourth of a bank's services and have the widest reach.

The infrastructure is almost ready. In fact, we have given this proposal to the Ministry of Finance and are waiting for its comments," he added.

The lack of modern banking facilities in rural areas and dependence of villagers on informal sector for their credit requirements prompted government to establish a post bank.

"The aim of establishing a post bank is to provide banking services to the rural poor who still do not have modern banking facilities and still have to depend on informal sector for their credit requirements," he said.

The Planning Commission had allocated Rs 5 crore during the 11th Plan period towards this purpose under the head of 'studies and miscellaneous expenditure relating to setting up of Post Bank of India'.

The DoP with its huge network already provides various financial services, including a post office savings bank, postal life insurance, pension payments and money transfer services.

Source: Financial Express

Read more »