Top 5 Policies That Shaped Banking In 2014
The RBI has written out the norms that these houses are to follow and they have 18 months to prepare a report, on failing to do so they can lose out on this license.
Scams: It could be right to say that scams are always going to be around and they also help banks and financial institutes stay on their toes. This year one of the largest scams came out in the open- the Saradha scam in West Bengal. There are two major developments to this case. Firstly, with the Supreme Court asking the CBI to investigate the scam and come out with a possible money laundering angle to it. Secondly, there are possibilities that high political leaders could be involved in it especially those of the Trinamool congress leaders. ET reports that this scam was one of the biggest platforms that helped BJP rise in the state and take a hold of power.
A new Age Limit: RBI has given a new age limit for private sector banks with respect to their retirement. This news was a huge relief for banks like HDFC, IndusInd and few other banks who have witnessed huge returns due to their chairpersons. So in this regard HDFC Bank's Aditya Puri and IndusInd's Romesh Sobti, Chanda Kochhar of ICICI Bank and Shikha Sharma of Axis Bank all can remain in office till they are seventy.
An End to Crooked Promoters: One of the biggest achievements that will be remembered by the banking sector of R. Rajan, RBI’s chief, is that of setting up the credit bureau for big corporate loans. This will keep promoters and lenders under the radar. This bureau will keep information on individuals and company promoters and investors thus keeping them in check. It will also save banks from losing out on money.
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