RBI seeks data on inter-institutional FI-bank exposures
Mumbai-- For the first time, Reserve Bank of India has asked commercial banks and financial institutions to disclose inter-institutional investment exposures.
Now each and every commercial bank and term-lending institution will have to spell out the kind of funds they have parked with each other for maturities of 15 days and above.
The data, sought by the central banks market intelligence wing, will definitely make the system more transparent.
It could also indicate one of the underlying risks of the banking system and the domino effect that a failure or default by a financial intermediary could trigger.
The move comes at a time when banks, starved of lending avenues, are parking more and more funds in the bonds and debentures floated by term-lending institutions.
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Rangachary proposes stiff entry capital norms for PFs
Mumbai--In order to keep fly-by-night operators at bay, IRDA chairman N Rangachary has proposed stiff capital norms to be fixed for pension fund managers.
"One concern voiced is about the capital that should be brought in by people who wish to enter this sector. Today, life insurers manage pension funds and life insurance business cannot be started with less than Rs 100 crore capital. Would you not look at the same figure as capital for players entering new areas," he said at a seminar on pension reforms organised by Darashaw & Company.
Rangachary has proposed the idea of renewal of licenses for pension managers through auctions.
The pension sector regulator will have the authority to choose the players based on their track record and commitment. The Oasis report had earlier suggested that the pension authority set up six pension managers, which would be privately owned asset management companies, each offering three schemes each.
The pension scheme would be voluntary in nature, and the pension managers could be banks, mutual funds or financial institutions.
The IRDA chief is also serious on the issue of unveiling pension bonds, which could be daily, monthly or annual payment on the pension bonds, said Rangachary.
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