Page 9 - BANKING FINANCE JUNE 2016

RBI CORNER
RBI justified in asking
banks to make provi-
sions for grain loans:
Sinha
The Reserve Bank of India (RBI) is
justified in most powerful person at the
asking
banks to
provide
for the
loans granted to Food Corporation of
India (FCI) for food procurement in
Punjab, said minister of state for fi-
nance Jayant Sinha.
"From a regulator's perspective, the
RBI is right but the banks are also
right in their explanations on the is-
sue," said Sinha.
According to a report, RBI has asked
banks to provide 15% against the
Rs.12,000 crore in loans that were
extended to FCI to procure foodgrain
on behalf of the Punjab government.
Bankers, however, say that since the
loan was given to a central govern-
ment agency, there is no risk of de-
fault and it should not be marked for
provisioning.
"We are working with the regulators
and various authorities to ensure
that the matter with respect to the
food stocks in Punjab is resolved,"
said Sinha, adding that dialogue is on
between all stakeholders.
At the start of each fiscal year, the
banking regulator clears a cash credit
limit (CCL) for lending to FCI to pro-
cure foodgrain from procurement
agencies of various states. This cash
credit is disbursed by banks. The
agencies get grains from farmers and
store them in their facilities on be-
half of FCI. The procurement agen-
cies then charge FCI for their
services.
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RBI Governor Rajan not top-paid executive at Reserve
Bank, reveals RTI
RBI Governor Raghuram Rajan, cur- RBI's list of 'monthly emoluments of
rently in the eye of the storm over his employees'.
'one-eyed is king among
blind' remark, may be the The latest available public fig-
ures, published by RBI on its
central bank, but he does not website under the RTI Act, are
appear to be the top-paid for the period of June-July
one. 2015 and it could not be ascer-
tained whether these three
As per the latest details pub- persons are still with the RBI.
lished by the Reserve Bank of India While RBI did not disclose their desig-
(RBI) under the Right To Information nations along with the 'monthly emolu-
Act, Rajan's total 'monthly emolu- ments', Hegde has served as its 'Princi-
ments' stood at Rs 1,98,700. This in- pal Legal Advisor' in the past.
cluded a basic pay of Rs 90,000, Dear-
ness Allowance of Rs 1,01,700 and 'oth- The Governor remains on the top in
ers' of Rs 7,000. terms of basic pay. The total monthly
emoluments for each DG stood at Rs
However, the 'monthly emoluments' 1,73,900, while that of the ED was Rs
were higher than that of Rajan in case 1,70,864. The total emoluments are
of at least three others - Gopalkrishna higher than that of DGs in case of at
Sitaram Hegde (Rs 4 lakh), Annamalai least 23 'employees' including
Arappuli Gounder (Rs 2,20,355) and V Killawala, whose total has been dis-
Kandasamy (Rs 2.1 lakh), as per the closed as Rs 1,78,265.
SC may disclose defaulters repayment
without the names
The Supreme Court has decided to examine if the total
amount of defaults in repayment of loans running into
"lakhs of crores of rupees" be made public, without disclosing the defaulters'
names. The Reserve Bank of India (RBI) counsel, however, resisted the proposal.
Remittances for students abroad have been $1 billion
in 9 months
Indians are now spending more money abroad, with figures released by the
Reserve Bank of India (RBI) showing that outward re-
mittances under the Liberalised Remittances Scheme
(LRS) have surged by close to 200 per cent in fiscal 2015-
16. Remittances for students studying abroad have hit
a record high of $1 billion in the last nine months.
Indian residents have sent $3.81 billion out of the country in the first 11 months
of fiscal 2015-16, which is almost 187 per cent more than $1.32 billion outward
remittances in 2014-15, according to RBI figures. On an average, remittances
now amount to over $400 million every month. The full fiscal outflow is expected
to cross $4 billion, or over Rs 26,000 crore.
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