Latest news with #FinMinIndia
Hindustan Times
3 days ago
- Business
- Hindustan Times
Glad about response over concerns on draft norms on lending against gold, says TN CM
Chennai, Tamil Nadu Chief Minister M K Stalin on Friday said he was glad that the Union government has responded to concerns over RBI's draft directions on lending against gold collateral and batted for prior consultation with states on such matters. In a social media post, Stalin said: "Glad to note that @FinMinIndia has responded to the concerns raised by me in my letter to the Hon'ble Union Finance Minister regarding @RBI's draft guidelines on gold loans. Protecting the interests of small borrowers, especially those seeking loans below Rs.2 lakh such as farmers and daily earners and ensuring timely and accessible credit has been my consistent demand. While appreciating the positive consideration given to this issue, we emphasize that such policies having significant impact on poor should be arrived after due, prior consultation with States." On May 28, CM Stalin wrote to the Centre, flagging concerns and sought easing of norms related to gold loan. He had said: "Our people are simple, dignified, and resilient. Even when all they have is half a rupee, they save it carefully, adding to it bit by bit, until they can buy a single gold bead. Not for show. Not for luxury. But for emergencies—moments when there is no one else to turn to. This is not ornamental gold. It is their shield against life's uncertainties. Today, the RBI has proposed needless restrictions on gold loans, making it harder for poor and middle-class families to access credit with self-respect. This is not merely a regulation. It is a blow to their dignity and survival. At a time when many are already caught in the cruel grip of #LoanSharks and forced into #LoanApps during times of desperation, is it fair to push them further into those traps instead of protecting them? I respectfully urge Hon'ble @nsitharaman and the @RBI Governor to ease the rules on #GoldLoan. Let our people pledge their hard-earned gold with dignity."
The Hindu
3 days ago
- Business
- The Hindu
T.N. CM Stalin welcomes reconsideration of gold loan rules, urges Centre to consult States on key policy changes
Tamil Nadu Chief Minister M.K. Stalin on Friday (May 30, 2025) appreciated the Centre for considering his concerns regarding the proposed restrictions in the Reserve Bank of India's (Lending Against Gold Collateral) Directions, 2025. He added that such policies should be framed only after prior consultations with the States. In a post on X, Mr. Stalin said: 'Glad to note that @FinMinIndia has responded to the concerns raised by me in my letter to the Hon'ble Union Finance Minister regarding @RBI's draft guidelines on gold loans. Protecting the interests of small borrowers, especially those seeking loans below ₹2 lakh, such as farmers and daily earners, and ensuring timely and accessible credit has been my consistent demand.' 'While appreciating the positive consideration given to this issue, we emphasise that such policies having significant impact on the poor should be arrived at after due prior consultation with States,' he added.
India Today
21-05-2025
- Business
- India Today
Siddaramaiah slams SBI branch manager's Kannada snub, but ‘issue now closed'
A controversy over linguistic insensitivity at a State Bank of India (SBI) branch in Bengaluru has now been deemed closed, following the swift action by the bank, Karnataka Chief Minister Siddaramaiah stated via social media.'The behaviour of the SBI Branch Manager in Surya Nagara, Anekal Taluk refusing to speak in Kannada & English and showing disregard to citizens, is strongly condemnable. We appreciate SBI's swift action in transferring the official. The matter may now be treated as closed,' Siddaramaiah weighed in on the matter through a post on X. advertisementHe also cautioned against such incidents' recurrence. 'However, such incidents must not recur. All bank employees must treat customers with dignity and make every effort to speak in the local language. I urge the @FinMinIndia & Dept of Financial Services to mandate cultural and language sensitisation training for all bank staff across India. Respecting the local language is respecting the people. #KannadaFirst,' he wrote. Former Infosys director TV Mohandas Pai also lent his support to the Chief Minister's stand. 'I fully agree with our @CMofKarnataka @siddaramaiah. All customers should be treated with dignity and respect. In every state or district, people who serve should try their best to speak the local language to show respect and dignity to local citizens. Never look down on non-English speakers. Hindi is not the default language to the local language. We need a locally inclusive service culture,' he posted on X. advertisement The row erupted after a video surfaced online showing an altercation between a customer and a staffer, presumably the manager of SBI's Surya Nagar branch in Anekal taluk. In the footage, the staffer is seen refusing to converse in Kannada during an interaction, questioning if there is any rule that mandates her to do so. The exchange escalates, with the customer repeatedly asking the official to speak in Kannada. The staffer retorts, 'This is Karnataka,' to which she replies, 'This is India,' before stating, 'I will never speak Kannada,' and walking video, widely circulated on the social media platform X, triggered public outrage and calls for accountability. Users tagged the SBI and Union Finance Minister Nirmala Sitharaman, accusing the bank staff of imposing Hindi, misbehaving with customers, and flouting Reserve Bank of India (RBI) response, SBI issued a statement expressing regret and confirmed that the incident was under internal review. The bank reiterated its zero-tolerance policy towards conduct that adversely impacts customer sentiment and pledged its commitment to respectful the SBI has transferred the staffer involved and the Chief Minister has called the issue resolved, both officials and citizens have stressed that such incidents must not be repeated and have renewed the call for respectful, locally sensitive service standards across the country. IN THIS STORY#Karnataka#Bengaluru
NDTV
21-05-2025
- Politics
- NDTV
SBI Staff In 'Won't Speak Kannada' Video Transferred. Siddaramaiah Slams Her
The Bengaluru-based State Bank of India (SBI) official, who was seen refusing to speak Kannada in a viral video, has been transferred, Karnataka Chief Minister Siddaramaiah said. The Chief Minister said the behaviour of the SBI branch manager at Surya Nagara was "strongly condemnable" and stressed that "respecting local language is respecting the people". In a post on X, Mr Siddaramiah said, "The behaviour of the SBI Branch Manager in Surya Nagara, Anekal Taluk, refusing to speak in Kannada & English and showing disregard to citizens, is strongly condemnable. We appreciate SBI's swift action in transferring the official. The matter may now be treated as closed." The behaviour of the SBI Branch Manager in Surya Nagara, Anekal Taluk refusing to speak in Kannada & English and showing disregard to citizens, is strongly condemnable. We appreciate SBI's swift action in transferring the official. The matter may now be treated as closed.… — Siddaramaiah (@siddaramaiah) May 21, 2025 The Chief Minister, known to back pro-Kannada organisations, said all bank employees in Karnataka must try to speak in Kannada. "However, such incidents must not recur. All bank employees must treat customers with dignity and make every effort to speak in the local language. I urge the @FinMinIndia & Dept of Financial Services to mandate cultural and language sensitisation training for all bank staff across India. Respecting local language is respecting the people," he said. The SBI official's transfer follows the circulation of a viral video in which she is seen refusing to speak in Kannada as a customer insists. When the customer says, "this is Karnataka", she replies, "You have not given me employment". When the customer repeats, "This is Karnataka", she hits back, "This is India." She also says she won't "speak Kannada for you" and that she will "speak Hindi. The man recording the exchange said the SBI branch should be "taught a lesson". The viral video and the action against the bank official have put the Kannada language row under the spotlight yet again. While pro-Kannada organisations argue that migrants working and living in Karnataka must learn the local language, others stress that no one should be forced to speak a language. The language row has often led to heated arguments in public, videos of which have gone viral and further stoked the debate.
The Print
14-05-2025
- Business
- The Print
What is ‘One state, One Regional Rural Bank' & why it may be a step in the right direction
Established in 1975, RRBs cater to the rural and agrarian economy to support weaker sections of society. According to DFS, 92 percent of the more than 22,000 branches of RRBs operate in rural and semi-urban areas across more than 700 districts. New Delhi: The Department of Financial Services (DFS) last month notified the fourth round of amalgamation of the Regional Rural Banks (RRBs) to improve their viability and financial performance. As a result, 43 RRBs have been consolidated into 28 entities, one each for 26 states and two Union Territories (Jammu & Kashmir and Puducherry), starting 1 May 2025. This is the fourth phase of the amalgamation of RRBs in the last two decades. Eight of the 26 states with RRBs have two each, which will merge into one entity per state. For instance, Gujarat's two RRBs—Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank—will now be known as Gujarat Gramin Bank. The DFS, which comes under the Ministry of Finance, announced on social media platform X on 1 May that the amalgamation will result in an increased capital base of unified RRBs, spurring credit growth and diversification in line with state-specific goals. Amalgamation will result in increased capital base of unified RRBs, spurring credit growth and diversification in line with respective state specific goals. #RRBs #OneStateOneRRB@FinMinIndia @nsitharamanoffc @PIB_India @DDNewslive — DFS (@DFS_India) May 1, 2025 26 RRBs across 11 States/UT are amalgamated into stand-alone RRB in State/UT, reducing the number of RRBS from 43 to 28, to further improve viability and financial performance of RRBs #RRB #OneStateOneRRB @FinMinIndia @nsitharamanoffc @PIB_India @DDNewslive — DFS (@DFS_India) May 1, 2025 Financial sector experts told ThePrint the amalgamation of RRBs was a 'reformist' move that will help improve their governance and efficiency. A former RRB chairman, who did not wish to be named, told ThePrint that the amalgamation 'will allow RRBs to work with the state government for the implementation of schemes, more investment will be available to improve IT infrastructure and, lastly, senior management could likely be given reins of the banks as they are bigger in size now'. Earlier, multiple RRBs in a state were confined to a specified area or district, restricting their statewide access. Also, being smaller, investments in IT infrastructure were limited. Amalgamation is expected to address these shortcomings, thereby making RRBs more efficient, accountable and financially prudent. Ownership of RRBs is divided across the central government, sponsor banks (large public sector banks) and the state government, with a share of 50 percent, 35 percent and 15 percent, respectively. Another former RRB chairman, who did not wish to be named, supported the consolidation, though adding that it would take time to see the desired results. 'One State-One RRB is a step in the right direction, but 10 years of proper governance and supervision are required to improve the overall working culture and financial position of RRBs,' he said. After the amalgamation, combined ownership of the central and state-sponsored banks cannot fall below 51 percent, according to the RRB (Amendment) Act of 2015. The Act also allows RRBs to raise capital from financial institutions and capital markets. However, if ownership of the state government falls below 15 percent, the central government needs to consult the state government. The proposal for amalgamation of RRBs was first recommended by the Expert Committee on Rural Credit in its report in 2004. The Vyas committee was set up in 2001 to study the credit flow to agricultural activities from the Indian banking system. Amalgamation of RRBs began during the UPA era. Under the first phase that started in 2006, 196 banks were consolidated into 82 entities. In this phase, from 2006-07 to 2009-10, the number of RRBs came down to 82 from 196. In the second phase, from 2012-13 to 2014-15, they were further reduced to 56, before coming down to 43, in the third phase from 2018-19 to 2020-21. National Bank for Agriculture and Rural Development (NABARD) is the supervising authority for RRBs, responsible for strengthening, developing and inspecting the banks. ThePrint reached NABARD for comment by e-mail and texts, but had not received a response by the time of publication. The report will be updated if and when a response is received. Also Read: Credit where credit's due—Modi govt has scripted an unbelievable banking success story Profitability of RRBs According to the annual report of DFS for 2024, the performance of RRBs has improved since 2020. While the number of loss-making RRBs declined from 19 in 2019-20 to just three in 2023-24, their consolidated net profit for 2023-24 stood at Rs 7,556 crore. In 2019-20, the consolidated net loss for all RRBs combined was Rs 2,208 crore. The gross non-performing assets (GNPA) ratio too declined from a high of 10.4 percent in 2019-20 to 6.1 percent in 2023-24. But experts say RRB financial numbers might not be accurate due to a lack of robust governance and audit mechanisms. 'NABARD has the supervising authority of RRBs, which does not have a strong governance model, unlike the RBI that oversees commercial banks,' another former RRB chairman told ThePrint on condition of anonymity. Since its inception, RRBs have been recapitalised by more than Rs 19,000 crore. But of this, nearly Rs 10,890 crore was received in 2021-22 (Rs 8,168 crore) and 2022-23 (Rs 2,722 crore) only. The central government's share in this recapitalisation was aligned with their ownership—50 percent. In 2018, the Supreme Court order made it mandatory for RRB employees to get a pension, running up the operating cost for the banks. The recapitalisation aims to address rising pension liabilities, support credit expansion and business diversification, as well as reduce non-performing assets (NPA). However, concerns persist about the gross non-performing assets (GNPA) of RRBs which, though improving, still remain higher than the broader banking industry. According to the Economic Survey, GNPA ratio of scheduled commercial banks was 2.8 percent at the end of March 2024, whereas for RRBs it was 6.1 percent. 'About 90 percent of RRB loans are related to the agriculture business. Most of them are ever-greened, a practice of disbursing new loans to prevent old loans that have not been serviced from turning bad,' Tamal Bandyopadhyay, author and columnist at Business Standard, told ThePrint. 'Over a period of time, this can cause concerns over RRBs' profitability, as in the absence of cash flow, profits of many of them appear to be on paper,' he added. RRB loans are dominated by the agriculture sector, which accounted for nearly 70 percent of the loan book on 31 March 2023, according to a DFS report. Most often, agricultural loans are low-interest loans compared to car, home or personal loans. 'Accounting norms do not often apply to RRBs. If the interest is not paid in 90 days, then instead of marking it as an NPA, the amount gets rolled over with interest added,' said a former RRB chairman quoted earlier. Most of the customer base of RRBs, he said, is from the weaker sections of society. 'In case of a calamity like drought or floods, a farmer does not have the ability to repay the loan and RRBs do not have any mechanism to recover.' Although RRBs are now getting IT upgrades, they are still behind private and public commercial banks. Losing ground to private banks RRBs are losing ground to private banks, many of which are increasingly foraying into rural areas through their representatives. Multiple RRBs are even competing with their own sponsored banks in some states. 'Public and private banks are entering rural markets through their representatives, cost-effective and technology-driven channels, thereby making it much harder for RRBs to retain customers,' Bandopadhyay said. 'The best solution would be for the government to merge the RRBs with their sponsor banks, which are in a better position to train RRB employees for better rural banking. The RRBs can become a subsidiary of PSU banks in rural areas,' he added. RRBs face other structural problems such as the need to recruit employees locally from small towns and villages, where candidates often lack the necessary skills or knowledge of financial services. Also, in many smaller districts, local officers and politicians exert influence over the functioning of RRB branches. 'RRBs need proper HR policies and guidelines to govern employees at the local branch level,' says a former RRB chairman. Employee union demands autonomy The All India Regional Rural Bank Employee Association welcomed the amalgamation move in an 11 April letter to DFS Secretary Nagaraju Maddirala, which ThePrint has seen. This, it said, has been its long-standing demand. It did, however, also raise concerns about the autonomy of the RRBs, which it said were being run at the behest of their sponsored banks. 'Sponsor banks are treating the RRBs as one of its subordinate departments and are interfering in every activity on a daily basis, subverting the independent functioning of deputed Chairmen/General Managers of these banks,' the letter stated. The employee association has demanded that the chairman of the amalgamated RRBs must be appointed from the open market and should not be the purview of a sponsored bank. The letter said that the K.C. Chakrabarty committee, which was set up in 2009 to assess the financial position of RRBs and suggest measures regarding recapitalisation, had also suggested the chairman be selected from the open market. 'Having an independent chairman for RRBs would help in improving the performance, but it is easier said than done,' said a former RRB chairman quoted earlier. A senior employee association representative told ThePrint the amalgamation of banks could result in problems over one or two years because of diverse work cultures, systems and procedures. 'But in the long run, the amalgamation would help RRBs to grow.' Udit Bubna is an intern who graduated from ThePrint School of Journalism. (Edited by Sugita Katyal) Also Read: 'Mujhe EMI bharna hai'—how voice tech is bringing millions of Indians into banking system
