Oration By Dr.Y.V. Reddy (Former Governor of Reserve Bank of India)

Date & Time :
Tuesday, 31st Jan 2012 at 4.00 pm to 5.30 pm

Speaker          :
Dr.Y.V. Reddy (Former Governor of RBI)

Topic              :
"Development and Regualation of Financial Sector"

Venue             :
ITC Kakatiya,Begumpet

RBI awaits govt move on fiscal deficit

Reserve Bank of India (RBI) Governor D Subbarao said that the central bank will watch the steps being taken by the government to curtail fiscal deficit before taking a decision on rate cut. “The (fiscal deficit) number as a proportion of GDP has to come down, that is very important as you recognise but within that we will look for the quality of fiscal adjustment that is being made,” he told analysts. Subbarao said “First, we have depended, I believe, quite heavily on the tax side and neglected the expenditure compression element of this over the years”. He said efforts to reduce fiscal deficit should be as much on the tax increase as on expenditure compression.

DH

CRR cut a balancing act, will fix liquidity issue: Experts

............From that perspective we cannot differentiate between a CRR and a OMO. Where the differentiation can come is CRR is kind of free money for the banks, whereas OMO has a cost attached to it, but on the other hand if you do too much of OMO you will always be criticized that you are funding your fiscal deficit and lets not forget that at least in this policy statement RBI has been very clear about fiscal consolidation............

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THE SMART RURAL WOMEN BANKERS OF SATARA

........While some micro- finance institutions in India have run into scandal for mismanagement and fraud, Sinha says the bank is scrupulous about accountability,with internal audits every three months, a yearly audit by the government's co-operative department and an inspection by the central bank every four years...........

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NBFCs Have Greater Ability To Take Quicker Decisions - RBI

...... A recent RBI paper looks at NBFCs in India and offers suggestions. As the paper points out, NBFCs fulfil a need that banks are unable to meet. They have the ability and flexibility to take quicker decisions, assume greater risks and customise services and charges according to the needs of the clients. At the same time, the strong and growing links between banks and NBFCs means that NBFCs could pose a threat to the safety and stability of the financial system.......

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Actuarial science professionals can play vital role in financial inclusion

....The key focus for the government is financial inclusion and public sector banks have been increasing their head count. A report of Icra Management Consulting says the banking and financial services sector is likely to employ 8.4 million people between 2008 and 2020.....

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How does inflation affect common man’s palate?

Amidst all the hoopla surrounding the ‘ever-so-important’ inflation numbers, what do they signify for the ‘aam admi’ of India? If you thought lower inflation numbers would bring some respite for your ever-depleting pockets, think again.....

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Postal dept works towards bank permit

.........The department will apply for a banking licence from the Reserve Bank of India. Post Bank of India may be set up with the required authorised capital of Rs 700 crore, the official added. “The plan is to offer banking services in rural and semi-urban areas by converting our post offices into banks. The department has about 1.5 lakh post offices across the country, which is mainly located in rural areas,” a source said......

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RBI moves lift market sentiments indices

.... The answer lies in the ability of the government to push through more reforms. The acid test will be the Union Budget. The RBI's actions need a follow through from the finance ministry. The ministry needs to produce some cash flows to reduce the fiscal deficit. The RBI will not be able to start its rate cut programme if the budget document shows no control over government spending.....

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The Last Mile

..... “Have you ever seen an advertisement or even a leaflet from banks saying that they now offer 6 per cent on a savings account? SBI says it is a banker to every Indian. What about the people in the remote parts of India? They are bonafide customers of the bank.” He is categorical that BC is just a channel; the principal is the bank, it is its responsibility to offer products and services suited to the catchment area. Khera’s view echoes in the RBI review: “The BC model is largely perceived as a channel for undertaking only liability side business (deposits)... If BCs are used merely for this purpose, the income generated by BCs will not be sustainable over a period”.......


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It Is All About Money

.............Six years ago, the Reserve Bank of India came up with the business correspondent model to tackle this problem. Business correspondents were people or firms who would act as agents of a bank. They would be allowed to offer some basic services, and paid on a per transaction basis.Just over half a decade of operations, the results are mixed. On the success side, many banks have managed to provide no-frills accounts to people in many previously unbanked areas. At the same time, most banks still find the operation economically unviable. Most end up subsidising costs. Also, most business correspondents find that acting as an agent for the bank does not even offer them enough money to survive. And many villages still remain without any banking facilities...............

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There’s credit card insurance, too

India has around two crore credit card holders. However, there are only a select few who are aware of an insurance cover which is available with the plastic........

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Additional safety in online transactions

Another choice to ‘extra protect' your online transactions is to create virtual cards. Banks such as HDFC and Kotak Mahindra currently provide this option.

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Making card transactions more secure

....thanks to the Reserve Bank. Based on the report of a working group on ‘Securing Card Present Transactions' (i.e. transactions at POS/ATMs), the regulator has recommended that all card issuers (banks) must be ready to issue EMV chip cards by June 30, 2013. The apex bank has also said that the POS infrastructure must be equipped to support chip cards and PIN-based authentication by the same date. ..........

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He sacrificed his today for their tomorrow

.... The last of his pupils to be selected were Apoorva Nandekar and Ketki Tol. The former's father P.R.Nandekar, an RBI employee, recalled Chafekar of having kept his word of felicitating the girls. "He did this after being discharged from hospital,".....

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Is it time to buy or invest in housing? Yes, say bankers

.... Bankers estimate that the Reserve Bank of India (RBI) is likely to reduce its repo rate, which will further bring down rate of interest on housing loans. It will give a fillip to the economy and will fuel demand for housing in next six months.....

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Noida banks want better relocation deal

....“What usually happens is that banks rent space in plots owned by other individuals or organisations. Very rarely does a bank make a capital investment of its own, and there are strict norms by the Reserve Bank of India (RBI) in this regard,”........

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