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Showing posts with label Create Money. Show all posts
Showing posts with label Create Money. Show all posts

Monday, 25 April 2016

07:52

Sensitise public against unsolicited offers: RBI to banks

Sensitise public against unsolicited offers: RBI to banks
Concerned over rising incidents of unscrupulous elements duping the public, RBI today asked banks to prominently display warnings that people should not respond to unsolicited offers through e-mails and phone calls. "We believe that the absence of financial literacy and lack of alertness to fraudulent schemes/calls are the main reasons behind the innocent depositors falling prey to such schemes," the Reserve Bank said in a notification.
These episodes, apart from impacting the public at large, have repercussions on the banking sector as the money that is misappropriated by these unscrupulous entities should have come to the banking system augmenting banks' deposit base, RBI said. It has come to the notice of RBI that customers receive telephone calls relating to their winning lotteries/prizes and asking them to deposit money in an unknown account, following which the amount of lottery would be remitted to them or credited to the account they would advise. Once the customers play along, they remit the required amount, apart from divulging details of their accounts to fraudsters.
RBI suggested that banks as part of their customer education efforts should consider designing suitable posters, pamphlets, flyers or notices containing such messages. The messages RBI wants lenders to display include 'Never respond to unsolicited offers of money received through mails/phone/other media; No one really gives you money for free and Be careful while investing in seemingly attractive schemes offering high returns'.
There have been several instances of the general public getting tricked by various schemes for mobilisation of funds by way of deposits/investments, RBI said, adding that such programmes are often projected as investments. As many as 861 bank advance-related fraud cases of Rs 1 lakh and more, totalling Rs 4,920 crore, were reported in the first half of 2015-16. In 2014-15, 1,651 such cases were reported with an amount of Rs 11,083.11 crore.

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Sunday, 27 December 2015

09:34

Switzerland to hold referendum on banning private banks from creating money

Switzerland to hold referendum on banning private banks from creating money

A radical initiative to strip private banks of their power to “create money” and make it exclusively a central bank privilege has gathered enough support for the Swiss government to announce a referendum on the issue. A vote in favor may result in a return to 100 percent reserve banking.
“Banks won’t be able to create money for themselves anymore, they’ll only be able to lend money that they have from savers or other banks, or even, if necessary, money that the Swiss National Bank has provided them,” the campaign said in a statement on their petition website.

As soon the petition concerning changes to the Swiss banking system had received more than 100,000 valid signatures, the Swiss government confirmed it would hold the referendum, according to the Telegraph. The date when the country will vote to decide whether private banks should be keep their power of creating money has not yet been set.

The move comes as part of the Swiss Sovereign Money Initiative (known as the Vollgeld-Initiative in German) that seeks to put an end to financial speculations. The group is concerned with the current state of affairs in traditional fractional reserve banking, where real coins, banknotes and central bank liabilities account for only a minor part of money in circulation, while most of it exists as electronic cash created by private banks.

“Most people believe that the money they have in their bank accounts is real money... This is wrong! Money in a bank account is… a promise the bank makes to provide money, but it is not itself legal tender,” they group explains in their statement.

The initiative claims that it strives to change the system so that it complies with the Swiss Constitution, guaranteeing safety and avoiding such phenomena as finance bubbles and empty money.

If the change is introduced, Swiss banks would have to look for a workaround to continue providing their clients with the usual set of services.

This won’t be a first referendum on monetary policy in the recent history of Switzerland. The Swiss voted against a law that would increase country’s gold reserves from 7 percent to 20 percent back in 2014, despite early polls showing increasing support for the initiative.

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