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A Monthly Newsletter of Indian Institute of Banking & Finance
(ISO 9001 : 2008 CERTIFIED ORGANISATION)

(Rs. 40/- per annum)

Committed to professional excellence

Volume No. : 5

Issue No. : 6

January 2013

Mid-Quarter Monetary Policy Review - 18th Dec., 2012
Monetary and Liquidity Measures q The Cash Reserve Ratio (CRR) of scheduled banks remains unchanged at 4.25% of their Net Demand and Time Liabilities (NDTL). q Repo Rate under the Liquidity Adjustment The Facility (LAF) remains unchanged at 8%. qReverse Repo Rate under the LAF remains The unchanged at 7%. q The Marginal Standing Facility (MSF) and Bank Rate stands at 9%. Growth In Q2 of 2012-13, GDP growth at 5.3% was marginally lower than 5.5% recorded in Q1. On the domestic front, GDP growth is evolving along the baseline projection of 5.8% for 2012-13. Industrial activity rose sharply in October due to a low base and festive demand, propelling the growth of both consumer durables and non-durables into double digits. Significantly, capital goods production recorded a growth of 7.5% after 13 successive months of decline. Inflation Headline WPI inflation edged down to 7.2% in November due to softening of prices of vegetables, minerals and fuel. The new combined (rural and urban) CPI (Base : 2010 = 100) inflation increased in November, reflecting sustained food inflation pressures, particularly for vegetables, cereals, pulses, oils and fats. Monetary and Liquidity Conditions Money Supply (M3) growth remained below its indicative trajectory due to lower deposit growth; non-food credit growth rose above the indicative trajectory of 16% suggesting some pick-up in economic activity. Liquidity conditions have remained tight in Q3 due to large government balances with RBI and a widening wedge between deposit & credit growth. To contain the liquidity deficit at reasonable levels, RBI conducted Open Market Operations (OMOs) on December 4 and 11, injecting primary liquidity of `232 billion. Accordingly, money market rates remained close to the repo rate.
The mission of the Institute is "to develop professionally qualified and competent bankers and finance professionals primarily through a process of education, training, examination, consultancy / counselling and continuing professional development programs."

INSIDE

Monetary Policy Review .......................................1 Top Stories............................................................2 Banking Policies ...................................................2 Banking Developments.........................................3 Regulator's Speak... .............................................4 Insurance ..............................................................5 Microfinance .........................................................5 Rural Banking .......................................................6 International News ................................................6 New Appointments................................................6 Forex.....................................................................6 Products & Alliances .............................................6 BIS ........................................................................7 Financial Basics....................................................7 Glossary................................................................7 Institute's Activities................................................7 News From the Institute........................................7 Market Roundup ...................................................8

"The information / news items contained in this publication have appeared in various external sources / media for public use or consumption and are now meant only for members and subscribers. The views expressed and / or events narrated / stated in the said information / news items are as perceived by the respective sources. IIBF neither holds nor assumes any responsibility for the correctness or adequacy or otherwise of the news items / events or any information whatsoever."

Top Stories - Banking Policies

Top Stories
Highlights of the Mid-Year Economic Analysis 2012-13 tabled in Parliament : q Economy expected to grow at 5.7-5.9% in 2012-13. q growth in the second half of the year would be GDP close to 6% against 5.4% in first half. q Slowdown seems to have bottomed out. q economic climate continues to be fragile. Global q Monetary and fiscal policies should boost investor confidence. q Recent fiscal consolidation plan has improved investors' perception of economy. q deficit for this fiscal likely to be 5.3% of GDP. Fiscal q Inflation expected to moderate in Q4; March-end inflation seen at 6.8-7%. q Moderation in inflation will facilitate softening of monetary policy stance by RBI. q Agriculture to better on good prospects of rabi crop. q Services sector expected to grow better. q Current Account Deficit (CAD) and trade deficit might be lower than previous fiscal. q monetary policy and higher borrowing cost Tight dented investment flow. q Downside risks associated with global and domestic factors may impact direct tax collection. Amendments to the banking laws and more powers to RBI The Banking Laws (Amendment) Bill brought about changes in three laws, giving RBI more power to regulate banks, raising voting rights for investors in banks and allowing PSBs to raise capital through bonus and rights issues. The Bill passed by the Lok Sabha amends the Banking Regulation Act, 1949, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980. Further, RBI will have the power to supersede the boards of banks and inspect the books of associates of banks. 34 schemes identified for cash transfers Mr. P Chidambaram, Finance Minister stated that the . government has decided to shift to AADHAAR-enabled direct benefit transfer of funds under 34 identified central
IIBF VISION

sector and centrally sponsored schemes, in a phased manner. The rollout will start with 43 districts from January 1. The concerned central ministries have set up implementation committees on Direct Benefit Transfer (DBT), which will operationalise transfers with due consultation with state governments and various stakeholders. Lok Sabha approves Companies Bill Lok Sabha has approved the much-awaited Companies Bill, 2011, making it mandatory for profit-making companies to spend on activities related to Corporate Social Responsibility (CSR). The Bill, aimed at improving corporate governance, also contains provisions to strengthen regulations for companies and auditing firms. A clause related to offence of falsely inducing banks for obtaining credit has been introduced. The changed law gives more statutory powers to the Serious Fraud Investigation Office (SFIO) to better tackle corporate fraud.

Banking Policies
RBI extends deadline for new format cheques Bank account holders can continue to use their old format cheques for another three months following an RBI notification which says that “it has been decided to extend the time up to March 31, 2013 for banks to ensure withdrawal of non-CTS 2010 Standard cheques and replace them with CTS-2010 Standard cheques. FIMMDA Code of Conduct RBI has notified that in the interest of maintaining integrity and orderly conditions in the Government Securities (G-secs) market, all subsidiary general ledger / constituents' subsidiary general ledger account holders should adhere to the Fixed Income Money Market and Derivatives Association of India Code of Conduct while executing trades on Negotiated Dealing System (NDS) Order Matching and in the Over-The-Counter (OTC) market. Amendments to debt recovery law The amendment to the debt recovery legislation will, allow multi-state co-operative banks to assign their bad loans to Asset Reconstruction Companies (ARCs), proving a win-win situation for banks as well as the companies. ARCs buy bad loans from banks and financial institutions at a discounted rate and recover the dues from the borrower. Rights issue on cards for PSBs Ahead of the implementation of Basel III norms in the banking sector, PSBs are looking to raise capital,

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January 2013

Banking Policies - Banking Developments

with a rights issue being the preferred mode of capitalisation instead of a preferential allotment of shares being subscribed by the government. It would give all shareholders an equal investment opportunity. Banks can issue online debit cards without RBI nod RBI has allowed banks to issue online debit cards, (including co-branded debit cards and rupee denominated co-branded pre-paid cards), without seeking its prior approval. The move is to obviate the need for banks to approach RBI for every co-branding arrangement. Strict compliance with Know-Your-Customer (KYC) norms, Anti-Money Laundering (AML) standards, Combating of Financing of Terrorism (CFT) and obligation of banks under Prevention of Money Laundering Act (PMLA) is a must. RBI eases KYC norms for banks RBI eased the mandatory KYC norms for banks so that opening a bank account will be simple and hassle-free. Insistence on introduction by an existing customer while opening a new account will now be treated as nonmandatory. If the identity proof has an address that is the same as the address on which an account is being opened, then a separate address proof will not be needed. AADHAAR cards will have to be accepted as both identity and address proof, if the address on the account opening form and AADHAAR are the same. Also, job cards given under the rural job scheme should be accepted as a valid document to open bank accounts. RBI proposes tighter capital, provision norms for NBFCs RBI has proposed tighter capital requirements and provisioning guidelines for Non-Banking Finance Companies (NBFCs) in the draft guidelines based on the Thorat committee report on reviewing the existing norms for NBFCs. RBI has asked that Tier-I capital of captive NBFCs be raised to 12% from the current 7.5% but that of infrastructure financing companies be kept unchanged at 10%. NBFCs that fall short of the required capital level will be given 3 years to comply. RBI has also proposed that NBFCs must classify loans as NPAs within 90 days of non-payment, bringing them on par with banks. Further, the provisioning for standard assets be raised to 0.40% from 0.25% of the outstanding amount from March 2014 onwards. Direct cash transfer arrangements As per a finance ministry circular to PSBs and Regional Rural Banks (RRBs), banks need to have at least one bank branch or Business Correspondent Agent (BCA) for every village or group of villages with 1,000 to 1,500 households. Since the population of gram panchayat
IIBF VISION

varies across the states, banks need to ensure that about 1000-1500 households are available in the sub service area of BCA. In case of North East, Hilly states and sparsely populated regions of other States banks may decide the households to be covered by each BCA appropriately. In case of larger gram panchayats more than one BCA could be appointed. RBI postpones Basel III roll out to April 1 RBI has rescheduled the date of commencement for implementation of Basel III financial norms to April 1, from the earlier January 1. The announcement came after some PSBs withdrew their perpetual bond issuances, as these would not qualify as Tier-1 capital in the Basel III regime. Thus, the banks needed more time on the same. RBI is going to closely monitor the progress on Basel III implementation in other countries, particularly in the major ones which are members of the Basel Committee on Banking Supervision (BCBS).

Banking Developments
Tough CDR terms Now, promoters of companies seeking easier repayment terms through a Corporate Debt Restructuring (CDR) package will have to fork out 25% (as against the current 15%) of the diminution in the fair value of the restructured account. Moreover, they will have to pledge 100% of their shares and furnish unconditional personal guarantees. RBI group opines that any conversion of loans into preference shares be done only as a last resort. The CDR core group has decided that the lead banker be authorised to appoint new directors to the boards of stressed companies, if necessary. The stressed companies must open a Trust and Retention account through which all receivables and payments be routed. Banks will also be stricter about companies achieving financial targets after a restructuring exercise. Henceforth, the concessional rate of interest offered in a CDR package will not be lower than the base rate. Panel to review balance sheet of RBI RBI has set up a technical committee to review the form and presentation of its balance sheet and profit & loss account. Among other things, the committee, headed by Mr. Y. H. Malegam, will examine whether disclosures in the accounts are adequate or need to be increased. Banks borrow `1.7 lakh crore from RBI, highest in FY13 Borrowing by banks under RBI's daily Liquidity Adjustment Facility (LAF) touched a record high for the

3

January 2013

Banking Developments - Regulator's Speak...

financial year at `1,70,140 crore. The system generally sees such high borrowing in March, when liquidity is invariably tight. The high borrowing was due to advance tax outflow and drained `50,000-60,000 crore from the system. The tight liquidity has also resulted in escalation in money market rates. Due to tight liquidity, many banks have been borrowing under the LAF and lending in the call money market, due to which call rates are hovering above the repo rate of 8%. Banks may get to buy defaulters' assets at reserve price Amendments to an asset foreclosure law currently pending in Parliament could allow banks to defer the sale or disposal of assets seized from defaulting borrowers, allowing them to acquire the assets at the reserve price if there are no buyers. The amendments to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act are listed for passing into law in this session of parliament, and have not been referred to a parliamentary standing committee for scrutiny. The amendment bill makes changes in the way that banks treat immoveable property taken over from defaulting borrowers. Typically, such a property is sold at auction, while setting a minimum reserve price for the asset, determined after an independent valuation. Dues from the sale are then adjusted against the borrower's outstanding loan. Government clears `12,000 crore capital infusion into PSBs The government has approved the first tranche of infusion of funds worth `12,000 crore in PSBs to enhance their capital base. It has made budget provision of `15,000 crore for recapitalisation of PSBs in the current fiscal. In 2010-11, the government had pumped in `20,157 crore in PSBs to maintain Tier-I capital at 8% and increase the government equity in some banks to 58%. Low-cost housing ECB gets RBI nod RBI has allowed raising of funds overseas for low-cost housing projects. In the current financial year, developers and housing finance companies will be permitted to borrow $1 billion under the low-cost affordable housing scheme. RBI will review this limit annually. Developers with minimum 5 years of experience in residential projects and with no defaults on any of their financial commitments to banks / other agencies will be eligible to raise funds overseas. Mobile banking on an upswing Mobile banking services, such as mobile wallet and Interbank Mobile Payment Service (IMPS), are being used for instant inter-bank electronic fund transfer
IIBF VISION

service through mobile phones. These services are mainly used for balance checks, account transactions, payments, credit applications etc. IMPS is also being extended to accept merchant payments using the bank account and AADHAAR number. The growing popularity of M-banking, particularly for small-value transactions, has prompted RBI to raise the limit for end-to-end encryption from `1,000 to `5,000 and remove the transaction limit of `50,000 per customer per day for funds transfer and purchase of goods & services. Parliament nod to amend money laundering law The Prevention of Money Laundering (Amendment) (PMLA) Bill sought to enlarge the definition of the offence of money laundering to include activities like concealment, acquisition, possession and use of proceeds of crime as criminal activities. The proposed amendment seeks to introduce the concept of 'corresponding law' to link the provisions of Indian law with the laws of foreign countries. It also proposes to make provisions for attachment and confiscation of the proceeds of crime even if there is no conviction as long as it is proved that the offence of money laundering has taken place and property in question is involved in money-laundering. It also provides for appeal against the orders of the appellate tribunal directly to the Supreme Court.

Regulator's Speak...
Vibrant corporate bond market essential to finance infra projects According to Dr. Subir Gokarn, Deputy Governor, RBI, the need for financing infrastructure projects is one of the key reasons for developing a vibrant corporate bond market. “The current debate (over developing a sound corporate bond market) is significantly driven by infrastructure financing. The 12th Plan estimates the need for an investment of $1 trillion in the infrastructure sector in the 2012 to 2017 period. Resources of this size would materialise only with the development of a corporate bond market. Foreign as well as domestic capital in infrastructure financing will need facilitation channels. In this context, development of a vibrant corporate bond market is essential.” Rising wages offsetting inflation pinch Dr. Subir Gokarn, Deputy Governor, RBI avers that high inflation may not be generating the same kind of unrest that it used to in the past; as rural wages have been rising at a faster clip annually for the past 5 years. It can be noted that during the past five years,

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January 2013

Regulator's Speak... - Insurance - Microfinance

the flagship rural employment guarantee scheme has raised the bar for rural incomes. RBI hints at rate cut to push growth RBI, in its Financial Stability Report, has hinted at a cut in its policy rate in the Q3 review of monetary policy to revive economic growth. In a foreword to the report, RBI Governor Dr. D. Subbarao says, “growth needs to accelerate if the momentum of poverty reduction, employment generation and pay-off from the demographic dividend is to be accelerated.” GDP growth has moderated in recent quarters (at 5.3% during the July-Sept quarter), buffeted by global headwinds and domestic policy uncertainties. In India, structural impediments such as fall in domestic savings (particularly household financial savings), persistently high inflation, regulatory and environmental issues resulting in lower investment demand and moderation in consumption spending have contributed to lower growth and increased risks to macroeconomic stability. Existing laws do not allow interest on CRR Dr. K. C. Chakrabarty, Deputy Governor, RBI has said that the apex bank can pay interest to banks on their Cash Reserve deposits if the laws are changed. "Under the present law, no interest can be paid on the CRR. However, the government needs to change this rule (for payment of interest on CRR). If the CRR is a cost on banks, then they can adjust that somewhere else.” Weak rupee fuelling inflation RBI has expressed concern over a weak rupee fuelling inflation. According to Dr. Subir Gokarn, Deputy Governor, RBI, rupee depreciation - whether due to political developments or global - contributes to inflation, particularly due to the impact on unavoidable imports like oil. The rupee closed at 54.47 to a dollar on Dec. 7, vis-a-vis 54.14 on Dec. 6. The headline inflation rate, based on the WPI, rose to 7.45% in October. FIIs might trade in currency futures RBI may ease norms for foreign investors, including permitting them to trade in currency futures. It may also allow repurchase facility in Commercial Papers (CPs) and Certificates Of Deposit (CDs), to boost the stagnant bond market. “We are thinking whether Foreign Institutional Investors (FIIs) can be allowed to trade in currency futures,” said Mr. H. R. Khan, Deputy Governor, RBI. “We are now flexible on residual maturity and lock-in period,” he said, referring to restrictive norms for foreign funds in holding domestic bonds.
IIBF VISION

Insurance
Norms revised for investors in CDS Insurance Regulatory and Development Authority (IRDA) has revised its draft guidelines for insurers investing in Credit Default Swaps (CDS) on corporate bonds, allowing them to buy unlisted bonds, but only for infrastructure companies. Insurers can use CDS as a “hedge” to manage the credit risk. However, they cannot buy CDS belonging to the promoter group and neither can any CDS transactions occur between entities belonging to promoter groups. IRDA guidelines on micro insurance in the offing Insurance Regulatory and Development Authority (IRDA) is expected to issue regulations pertaining to micro-insurance sector. Micro insurance products are targeted at rural and urban population, primarily from the low income group category. The proposed regulations will address issues pertaining to the micro-insurance sector both on product and distribution front. IRDA had earlier said that it would allow co-operative banks, primary agricultural co-operative societies and individuals (shopkeepers, medical store owners, petrol pump owners, public telephone operators) to act as micro- insurance agents to bring down distribution cost. Insurance penetration to get a boost Insurance penetration in rural areas is set to get a boost as insurers may have to open 25% of their branches in rural areas from next year. As per the IRDA's draft 'Places of Business Regulations, 2012', all insurers who have completed 10 years of business will be required to open at least 25% of new branches in places with population below `1 lakh. The demographical limit is to encourage business outlets in towns / villages in Tier-II and below. While deciding the new locations, the longterm nature of insurance business has to be considered to avoid short-term presence of offices.

Microfinance
Bank lending to MFIs rises slowly Bank funding to Micro Finance Institutions (MFIs) is picking up again, albeit with some caution. Mr. Alok Prasad, CEO, Micro Finance Institutions Network (MFIN) says, “in 2012-13, the risk perception towards

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January 2013

Rural Banking - International News - New Appointments - Forex - Products & Alliances

the industry has moderated to bring back the banks and investors. However, this funding is happening on a 'selective basis'. Nearly 90% of the MFI disbursals are funded by bank loans. So, any shrinkage in bank loans leads to a drop in the business of MFIs.”

q Mr. Sanjeev

Aga has been appointed as an Additional Director at ING Vysya Bank.

Forex
NRI bank deposits double to $10.14 billion in AprilOctober 2012 Dollar inflows into bank deposits from NRIs have doubled during April-October 2012 to $10.14 billion as NRIs took advantage of higher returns and a weak rupee. During the corresponding period last year, inflows were at $4.88 billion. During the period, non resident (external) rupee accounts saw an inflow of $11.61 billion, almost five times that of last year.
Benchmark Rates for FCNR(B) Deposits applicable for the month January 2013 LIBOR / SWAP For FCNR(B) Deposits LIBOR SWAPS Currency 1 Year 2 Years 3 Years 4 Years USD 0.84350 0.408 0.486 0.636 GBP 1.01375 0.7220 0.7830 0.9046 EUR 0.44000 0.390 0.480 0.615 JPY 0.48714 0.229 0.214 0.246 CAD 1.94800 1.408 1.478 1.580 AUD 3.68200 2.845 2.973 3.175 CHF 0.25640 0.093 0.138 0.235 DKK 0.65250 0.5870 0.6670 0.7800 NZD 3.33800 2.700 2.835 2.985 SEK 1.94250 1.230 1.315 1.420 SGD 0.54000 0.558 0.638 0.730 HKD 0.44000 0.450 0.500 0.600 MYR 3.22000 3.250 3.300 3.380
Source : FEDAI

Rural Banking
Easy access to KCC The Finance Ministry has asked banks to provide farmers easier access to the Kisan Credit Card (KCC) scheme. Among other measures, the ministry has advised banks against charging any processing fee for a card limit of `3 lakh and asking for a separate margin on crop loans. Farmers will also be exempt from submitting documents related to the land title during the annual renewal of the card, if the land is already hypothecated to the bank against a previous loan. This will provide dual benefit to the farmers so that they can avail the amount as per their convenience and also earn interest on their balance. The government may also consider setting up a farm credit rating institution under NABARD to build a credit history of farmer borrowers. This will help in further easing interest rates for those farmers who repay on time.

International News
Reserve accumulation not the cause for global financial instability The International Monetary Fund's (IMF's) Independent Evaluation Office (IEO) has argued that the Fund's emphasis on reserve accumulation as a risk for the International Monetary System (IMS) was not helpful. The main thrust of the IEO report was that “the reserves were a symptom and not the cause. IMF should have focused on the causes impacting the stability of the IMS. The Fund's attempt to articulate solutions, based on excess reserves accumulation, has led to loss of clarity in discussing options to reduce such risks. 'Evaluation of International Reserves : IMF Concerns and Country Perspectives' as this report is titled further says that factors other than reserve accumulation - viz. the leverageinduced fluctuations in global liquidity, inadequate financial sector regulation, and capital flow volatility - are more pertinent sources of concern for systemic resilience.

5 Years 0.834 1.0428 0.780 0.306 1.685 3.300 0.353 0.9400 3.140 1.538 0.890 0.740 3.460

Foreign Exchange Reserves As on December 21, 2012 `Bn. US$ Mn. 1 2 Total Reserves 16,319.6 2,96,538.8 (a) Foreign Currency Assets 14,429.8 2,61,949.8 (b) Gold 1,516.0 27,803.1 (c) SDRs 245.2 4,452.0 (d) Reserve Position in the IMF 128.6 2,333.9 Item
Source : Reserve Bank of India (RBI)

New Appointments qAshwani Mr.

Products & Alliances
Organisation tied up with RBI Bank of Mauritius Purpose Supervisory Cooperation and Exchange of Supervisory Information

Kumar has been appointed as the Chairman & Managing Director at Dena Bank.

IIBF VISION

6

January 2013

BIS - Financial Basics - Glossary - Institute's Activities - News From the Institute
Organisation tied up with RBI Bank of Japan Credit Information Bureau of India Ltd. (CIBIL) ICICI Bank Purpose Currency swap arrangement between the two countries. Central Registry For linking their websites for of Securitisation lenders to easily access Assets information of borrowers. Reconstruction & Security Interest of India MMP Mobi Money transfer service Wallet Payment Systems Accenture To seek management consultancy and advisory services to help improve productivity NASSCOM For entrepreneurship growth development of MSME in the ICT sector in the country.

Financial Basics
Deal Flow The rate at which business proposals and investment pitches are being received by financiers such as investment bankers and venture capitalists. Rather than a rigid quantitative measure, the rate of deal flow is somewhat qualitative and is meant to provide an indication of whether business is good or bad. The state of the economy has a significant influence on the level of deal flow. Economic expansion and robust equity markets will usually generate healthy deal flow for most financiers, while a recession and / or sluggish equity markets may generate some deal flow for only the most established players.

United Bank of India SIDBI

Bank for International Settlements (Continued...)
Article on Stress testing As mentioned in the IIBF Vision for December 2012, from this issue onwards we will be discussing the principles for sound stress testing practices and supervision for banks. BIS has enunciated 21 principles for effective stress testing in banks covering various dimensions of the problem. A glimpse is provided below. 1. Basic role and responsibilities of Senior Management 2. Risk identification and control 3. Range of perspectives and techniques 4. Documented, written policies and procedures 5. Robust infrastructure 6. Regular updating of stress testing framework 7. Coverage of risks and business areas 8. Coverage of scenarios 9. Range of severities 10. Pressures in funding and asset markets 11. Effectiveness of risk mitigation techniques 12. Coverage of complex and bespoke products 13. Coverage of pipeline and warehousing risks 14. Ability to capture reputational risk 15. Highly leverage counter parties 16. Regular evaluation of stress testing programs 17. Corrective action 18. Challenging the scope and severity of scenarios 19. Adequacy of capital and liquidity 20. Stress tests based on common scenarios 21. Identification of systemic vulnerabilities We shall discuss the first principle in next issue. (Source :BIS)
IIBF VISION

Glossary
Negotiated Dealing System An electronic trading platform, operated by RBI, used to facilitate the exchange of government securities and other money market instruments. The negotiated dealing system will also be responsible for hosting new issues of government securities.

Institute's Activities
Training Programs Schedule for the month of January 2013
Sr. No. 1 2 3 Program Financing SMEs Programme on Project Finance International Training Program for the Trainers Date 14th to 18th January 18th to 24th January 21st to 25th January

Training activities completed during the month of December 2012
Sr. Program No. 1 KYC & AML 2 Trainers Training Program on IT Security and Cyber Crimes 3 Credit Appraisal Date 6th & 7th December 10th & 12th December 17th & 21st December

News From the Institute
Advanced Management Programme (AMP) in Banking & Finance The Institute has launched the first Advanced Management Programme (AMP) at Leadership Centre, Kurla, Mumbai.

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January 2013

News From the Institute - Market Roundup q Registered with Registrar of Newspapers under RNI No. : 69228 / 98 q Postal Registration No. : MH / MR / South - 42 / 2010 - 12 q on 25th of every month. Published q at Posted q Posting

Mumbai Patrika Channel Sorting Office, Mumbai - 1 Date : 25th to 30th of every month.

Shri. M. V. Tanksale, Chairman and Managing Director, Central Bank of India inaugurated the AMP on January 5, 2013, in a well attended function consisting of bankers, academicians, HR personnel and resource persons. For more details, visit www.iibf.org.in. Online payment of examination fees Members & Non-Members registering for Institutes' examinations to be held from May / June 2013 can submit their application forms and fees by online mode. For more details, visit www.iibf.org.in.

- Rupee down by 9 paise and closes at 54.94 to dollar. Rupee fell after two sessions of gains on 27th, tracking local stocks and as oil refineries bought dollars, with the local currency headed to end the year with losses. - Rupee generally depreciated 0.53%, 1.07% and 2.18% against $, £ and € respectively whereas at appreciated against JPY by a hefty 4.24%.

04/12/12

05/12/12

06/12/12

08/12/12

11/12/12

14/12/12

15/12/12

18/12/12

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26/12/12 27/12/12

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13/12/12

17/12/12

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19/12/12

21/12/12

26/12/12

28/12/12

90 85 80 75 70 65 60 55 50

RBI Reference Rates

Source : CCIL Newsletter for December 2012 - On 3rd call rates closed stable as demand from borrowing banks matched supplies and ended at 8%. - The overnight rates ended higher at the money market at 8% on 11th from 7.90% previously. - The overnight rates ended higher at 8.10% from 8% on 11th. Moving in arrange of 8.10% and 7.65%. - On 27th, call rates moved between 6.90% and 8.20% indicating extreme volatility. - Call rates touched a low of 7.62% on 15th and a high of 8.1% on 28th of the month.

% p.a. 19500 19450 19400 19350 19300 19250 03/12/12 05/12/12 06/12/12 10/12/12

BSE Sensex

USD

EURO

100 Jap Yen

POUND STERLING

Source : Reserve Bank of India (RBI) - The rupee closed on the last day of previous month at a two-and-half week high of 54.26 a dollar, 1% stronger from its previous close due to dollar inflows from software companies and capital flows. - The Rupee closed at 54.68 / 69 per dollar strengthening for a fourth session in five on 4th as investor hopes for a parliamentary approval to FDI in multi-brand retail grew a day ahead of the impending vote. - The Rupee fell marginally on 10th on dollar demand from oil importers but the losses were capped by expectations of inflows from a spate of share sales. The Rupee closed at 54.49 / 50 weaker than its close of 54.47 / 48 on 7th. - The Rupee fell 0.3 per cent on 13th to 54.47 per dollar on speculation of importers stepping up dollar purchases to pay year-end bills. Printed by Dr. R. Bhaskaran, published by Dr.R. Bhaskaran on behalf of Indian Institute of Banking & Finance, and printed at Quality Printers (I), 6-B, Mohatta Bhavan, 3rd Floor, Dr. E. Moses Road, Worli, Mumbai - 400 018 and published from Indian Institute of Banking & Finance, Kohinoor City, Commercial-II, Tower-I, 2nd Floor, Kirol Road, Kurla (W), Mumbai - 400 070. Editor : Dr. R. Bhaskaran.

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Source : Reserve Bank of India (RBI)

INDIAN INSTITUTE OF BANKING & FINANCE Kohinoor City, Commercial-II, Tower-I, 2nd Floor, Kirol Road, Kurla (W), Mumbai - 400 070. Tel. : 91-22-2503 9604 / 9746 / 9907 q Fax : 91-22-2503 7332 Telegram : INSTIEXAM q : iibgen@bom5.vsnl.net.in E-mail Website : www.iibf.org.in

IIBF VISION

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January 2013

28/12/12

19200

28/12/12

Market Roundup

% p.a. 8.2 8.1 8 7.9 7.8 7.7 7.6 7.5 7.4

Weighted Average Call Rates

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...A Guide for Writing a Technical Research Paper Libby Shoop Macalester College, Mathematics and Computer Science Department 1 Introduction This document provides you with some tips and some resources to help you write a technical research paper, such as you might write for your required capstone project paper. First, congratulations are in order– you are embarking on an activity that is going to change the way you think and add to the overall body of human knowledge. The skill of gathering information, deciding what is important, and writing about it for someone else is extremely valuable and will stay with you for the rest of your life. Because we humans have been doing this for quite some time, we have some reasonably standard forms for technical research papers, which you should use for your capstone. You should do this because your paper will better understood by readers who are familiar with this form. Before you can begin writing your paper, you need to have a sense for what research entails, so I’ll start there. Then I will give you some tips about writing, including connecting with your readers, defining your topic, the format of your paper, and how to include references from the literature. I am a computer scientist, so be aware that parts of this paper are biased toward my discipline. 2 What is Research? A short definition of research, as given by Booth, Colomb, and Williams (Booth et al., 1995) is “gathering the information you need to......

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...are often used interchangeably to describe work which previously was done with paper, but which now has been adapted to information & communication technology (ICT) devices and software. The Information Technology Association of America (ITAA) has defined information technology (IT) in the electronic era as "the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware." IT entails processes involving the use of computers and software to create, convert, store, process, transmit, and retrieve information securely. The term has recently been broadened to ICT (Information and Communications Technology), so as to include the idea of electronic communication. To be paperless means essentially that the traditional paper-based practices-such as writing, note taking, reading, editing, communicating, and even drawing-are instead performed electronically with ICT devices and software. Much has been said and written about the paperless office in recent years, and the rapid development of ICT is enabling an increasing number of paperless practices. The relationship between paperless work styles and ICT is intimate and interdependent; a paperless work and lifestyle cannot be implemented without ICT, and the use of ICT should naturally lead to becoming paperless. Paradoxically, however, the consumption of paper has increased exponentially since the advent of personal...

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...Learning Letter To be honest I’ve never been an excellent writer. When it comes to writing a paper for high school classes, scholarships, and basically everything else I’ve always had trouble with starting my paper and figuring out what to write about my topic. However, choosing a topic has never been a problem for me because I’m passionate about many different things. Whenever I would write a paper in high school I usually wouldn’t spend much time on it because of a couple different reasons, either the teacher chose a topic for me and I simply wasn’t very interested, and also because of procrastination. I believe this class will help me become interested in writing which will motivate me to do the work. As a person I’ve always been more of a reader than a writer. I started reading fantasies like the Lord of the Rings novels at a young age. During my freshmen year of high school I was introduced to writers and poets like Charles Bukowski, Allen Ginsberg, and Hunter S Thompson, and I’ve been reading similar works ever since. One thing that I’ve always wanted to do with writing is being able to write poetry similar to Bukowski. I’m hoping this class can help with that. Even though this class is obviously required to take I’m excited to be in it so I can improve on the things that I struggle with in writing. By the end of this quarter I want to be able to choose a topic, start the paper with ease, and also be able to generate ideas about the topic easily. I’m excited to see......

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...Peer review for Zunwang Liu’s Draft By Guanyi Pan Summary: -the author analyzed the EJBR, and talk about its characteristics such as the length of the article, design of each journal, the audience of the journal, the tones of the articles and so on. Then she perorates that EBR is a example of text that can help us to learn the characteristic of discourse community with readers of JEBR actively share goals and communicate with others to pursue goals. Major point: Observation: the main point of the introduction is unclear. The analyzing parts in the paper is OK. The whole paper is talking about the EJBR. But it is hard to find a conclusion about them. 2. Do not have page number. 3. Observation: lack of the purpose of analyzing Location: page:page 2 Suggestion: After analyzing the length and other formats of EJBR, the author does not give a conclusion of them. So I am confused about why she wrote this, and what is the purpose of it. 4.Observation: unclear object Location: page 3 Suggestion: When the author talks about the audience of the journal, she only wrote “expert members”. I think she should point out what kind of the experts they are. 5. Observation: Need more examples in details. Location: page 5 Suggestion: I think there should be some examples to define about the gatekeeping of this journal. Minor Point: 1.There are some grammar problems and most of them have been corrected by last peer viewer. 2. The in-text citation format is not total correct. 3....

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...match the genre of the writing that the position would involve. For example, if you are applying for journalism positions, submit “clips”—actual articles that have been published in a campus newspaper, blog, or other publication. For a research position, submit an in-depth analysis of an issue or a topic. For a PR position, submit a press release that you have written from a previous internship or as the marketing chair of a campus group. If you don’t have any, you can write a press release for an upcoming event (just make sure you specify that it has not been published). Submit your best writing. If you are deciding between two papers you have written, and one is better written than the other but your weaker paper is topically more relevant, then choose the paper that is better written to submit. The other option is to rewrite the relevant paper to be stronger before you submit it. Remember, it’s your writing skills that the employer is assessing, and being topically relevant is just an added bonus. Provide excerpts if your samples are long. Most employers will specify how many pages...

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...students will reflect on what they are thankful for, and visually present it by creating a placemat to use on their Thanksgiving table. Materials Pencil Paper Construction paper with leaves Construction paper with lines Large construction paper in various colors Glue Scissors Butcher paper Procedure: Beginning Teacher will instruct students to write a list of things they are thankful for. Once the list is written, the students will be handed a sheet of construction paper with the outlines of four different shapes of leaves on it. The students will cut out the leaves, and choose four things they are thankful for to copy down onto the leaves. Middle Once the leaves are finished, the students will be given three more sheets of construction paper; one large sheet, and two with lines on it to cut into strips. Students will be instructed to fold the long sheet in half, and cut from the fold to one inch away from the edge. The teacher will model this so there are few errors. Students will cut the other sheets of paper into strips along the drawn lines. Students will weave the strips of paper into the large sheet of paper, creating a placemat Once all strips are woven in, the students will glue the four leaves with what they are thankful for on them. End The students will place their placemats on a sheet of butcher paper in the back of the room to dry Once all students have finished, teacher will lead a discussion with the students to talk about what they are......

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...‘ My Reflection Letter” I feel like my writing has come along way however this class has given Me the opportunity to see that I need a lot of improvement in my grammar. But it as help me learn to take better notes while reading .I feel that I have learned a lot thus far in English- 090. However in the past, I have always felt afraid to express myself when writing. This I know is a very important aspect of composing and have been very critical of myself. I have always expected to strive to do my best . I put effort and thought into each assignment. However writing the first paper that was given , It really helped me to understand that most people don’t get it right their first try. Initially I would approach it as preparing my writing down note. Next, I proof read my work and correct the grammar and punctuation. Often, I will have someone read it for composition and clarification of my sentences. Finally, I would prepare my final copy. I have felt so much less pressure knowing that my writings don’t have to be perfect the first time. This is why I really like how you give us the opportunity to revise our essays as many times as we need to get them to our satisfaction. I know that I’m never content Often it reaches the point when I get frustrated and think, “Okay, I need to stop stressing over this. My biggest Road blocks does not allow me to think of ideas fast enough. As writing, one thing I really need to work on is organizing my thoughts...

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...Technology(IJAET) ISSN 2231-1963 CALL FOR PAPER IJAET is a carefully refereed international publication. Contributions of high technical merit are to span the breadth of Engineering disciplines; covering the main areas of engineering and advances in technology. IJAET publishes contributions under Regular papers, Invited review papers, Short communications, Technical notes, and Letters to the editor. Book reviews, reports of and/or call for papers of conferences, symposia and meetings could also be published in this Journal Author Benefits : • • • • • • Rapid publication Index Factors and Global education Index Ranking Inclusion in all major bibliographic databases Quality and high standards of peer review High visibility and promotion of your articles Access of publications in this journal is free of charge. PUBLICATION CHARGES: A small publication fee of INR3500 upto 10 pages is charged for Indian author and for foreign author is USD 100 upto 10 pages for every accepted manuscript to be published in this journal. All the transaction Charges will be paid by Author (Inter Banking Charges, draft). Submission Guidelines: Guidelines Authors are kindly invited to submit their full text papers including conclusions, results, tables, figures and references. • The text paper must be according to IJAET Paper format and paper format can download from our website (www.ijaet.org).The Full text papers will be accepted in only .doc format. • The papers are sent to......

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...How to Make Charcoal from Paper By Karren Doll Tolliver, eHow Contributor Homemade paper charcoal briquettes can be used in backyard grills.  Commercial charcoal for grilling food is expensive and can be harmful to the environment. However, industrious do-it-yourselves can make their own "charcoal" from newspaper. This reduces the amount of newspaper refuse as well as the amount of commercial charcoal consumed. In addition, no lighter fluid is needed with the homemade charcoal paper. Therefore, petroleum-based products are also conserved. Making your own charcoal takes only water and a washtub. The time spent forming the charcoal paper briquettes is negligible, although they need to dry for a couple of days in the sun. Things You'll Need • Washtub • Water • Old newspaper Instructions 1 Tear the old newspaper into pieces about the size of your hand or smaller. 2 Place all the torn newspaper pieces in the washtub. Cover with water and let sit for at least one hour. The newspaper will be ready when it is thoroughly saturated with water and is mushy to the touch. 3 Grab a large handful of the mushy newspaper. Form it into a ball about the size of a golf ball or ping pong ball, squeezing out as much water as you can. Repeat until all the mushy newspaper is in ball form. Discard the water. 4 Place the wet newspaper balls in the sun for at least two days. Do not let them get rained on. They must be completely dry and brittle. At this point they are ready for use in the......

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...Leonie Oakes, ‘With Shadows that were their nightgowns’, 2012, maps, ephemera, antique paper, thread, letter press, screenprint, shellac, dye, ribbon. Model: Philly Hanson-Viney. Photographer: Bernie Carr Winner of 2012 Sustainable Fashion Award: Leonie Oakes, ‘With Shadows that were their nightgowns’, 2012, maps, ephemera, antique paper, thread, letter press, screenprint, shellac, dye, ribbon. Model: Philly Hanson-Viney. Photographer: Bernie Carr For the past 70 years Burnie has been a paper making town. The papermaking tradition is kept alive by local artists and artisans. Following the great success of the inaugural 2012 Paper on Skin competition, our aim is to further foster and promote the cultural paper heritage of our town by presenting innovative and wearable paper apparel. The competition celebrates Burnie's proud tradition as a papermaking town by presenting innovative contemporary wearable paper art. Burnie based artist, Pam Thorne, had for a long time harbored the idea of a competition for wearable paper art. In 2011 Pam and Burnie Arts Council approached the Burnie Regional Art Gallery with this idea. After some lively brain storming the paper on skin Betta Milk Burnie Wearable Paper Art Competition became a reality and the inaugural competition was held in May 2012. The success was such that the involved parties decided to make this a biennial event. The 2014 paper on skin Gala Parade & Award Evening was held on Friday 11 April. Betta Milk......

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...the assumption that I would only have to compose simple paragraph papers while also learning the ropes of grammatical writing. I was sadly mistaken. Through the semester Josh gave the class five writing assignments. They ranged from three to five pages long. Out of all the writing assignments I received my favorite was a four page paper I had to write an allegory of myself. My least favorite was a five page paper the whole class had to write. About mid semester, when my hand only had a tingle, Josh lectured about Plato’s “A Allegory of the Cave.” Thus giving me my next challenging task he had in store. I had to compose an allegory of myself while explaining the concept of the Plato’s allegory. I had to dissect the symbolism in Plato’s allegory and prove how it coincided with my own allegory. What made this objective so interesting, yet so strenuous was the fact that my allegory had to be based upon a difficult time I have had in my life. My essay was littered with very detailed descriptors of my dreadful situation and Plato’s allegory. That is why this particular essay was my favorite. I8 was able to take a seemingly arduous task and break it down, in my own words, so that a reader would be able to comprehend “The Allegory of the Cave,” and still be able to relate to my allegory. The last essay due came just before my hand fell off. Before the class took our final exam we were obligated to write a five page paper as a whole. Josh told us we had to accomplish the task......

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