RBI cannot pursue policy oblivious to growth: D Subbarao

..... "In a country like ours where fiscal deficit is high and is likely to be high, no matter what we might wish, when the government borrowing is such a large part of the total credit outflow, can the central bank realistically remain indifferent to the government borrowing?".....

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RBI's Gokarn: Open market ops not aimed at helping govt

..... The Reserve Bank of India's choice of securities to buy in open market operations is not aimed at reducing the cost of borrowing for the government but to ensure an adequate supply of liquidity in the banking system, Deputy Governor Subir Gokarn said......

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Key takeaways from RBI's research conference

The following are the concluding remarks by Deepak Mohanty, Executive Director, the Reserve Bank of India (RBI), at the Second International Research Conference 2012, at Reserve Bank of India, Mumbai on February 2, 2012.

...........We have had one and half days of intellectually stimulating discussions on a range of critical central banking issues revolving around the New Trilemma that has been defined by this Conference. While we may not have clear solutions, expectations from central banks are very high. The deliberations in this Conference, I believe, make some contributions in guiding policy and spurring further research.................

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‘Bee’ there

India’s first ever annual National Bee Day will be celebrated on February 5, 2012 at Maharashtra Nature Park, Dharavi. Under The Mango Tree, an organisation that promotes beekeeping with the indigenous bee Apis cerana indica to increase agricultural productivity, enhance income and improve livelihoods of marginal farmers in India, is organising this day with the objective of this celebration is to create awareness about bees and the role they play in the eco system, among people. According to this organisation, in the UK, it has been estimated that the economic costs due to pollination by bees and other pollinators is approximately £440 million pounds a year (Source: BBC, 2010) but similar estimates do not exist for India. In beekeeping however, the hybrid Apis mellifera has been given more importance than Apis cerana indica, our indigenous bee which is in the environment all across India and is an excellent pollinator. With this is mind, Under the Mango Tree plans to focus attention on bees on Cerana Day which is on February 5. This day would be celebrated with several activities like bee walks, cooking with honey, honeybee films for children and adults, kids crafts and games, an interactive session with Mumbai’s beekeepers, honey tasting, food stalls, face painting and bee costumes, bee photo exhibition and also a special panel discussion on bees and pollination. Also, the report of a study undertaken to assess the impact of beekeeping on local crops in Valsad, a district in South Gujarat, will be released by Usha Thorat, Former Deputy Governor, RBI, the study report. This will then be followed by a panel discussion on role of bees in pollination.

The Afternoon

How long can govt be on RBI life support?

The Reserve Bank of India has joined the ranks of central banks intent on saving the country — and the world — from collapse by printing money. The RBI is the fifth big central bank to finance fiscal deficits through bond purchases, the other four being the Fed (US Federal Reserve), ECB (European Central Bank), BOJ (Bank of Japan) and the BOE (Bank of England)........

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Low-Casa banks rake it in with savings rate hike

..... Banks with low current account savings account (Casa) balances have been on an advertising overdrive ever since the Reserve Bank of India unshackled savings account rates........

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The ‘concessional window' is off. Relatives of directors of commercial banks won't be able to avail themselves of concessional loans henceforth. The Reserve Bank of India has said that restriction as contained in Section 20 of the Banking Regulation Act, 1949, “will apply to grant of loans and advances to spouse and minor/dependent children of the directors of banks.'' “However, banks may grant loan or advance to or on behalf of spouses of their directors in cases where the spouse has his/her own independent source of income arising out of his/her employment or profession,'' the apex bank said. The facility thus granted, however, should be based on standard procedures and norms for assessing the creditworthiness of the borrower. “Such facility should be extended on commercial terms,'' the RBI asserted. As mentioned in the circular dated March 1, 1996, all credit proposals for Rs.25 lakh and above should be sanctioned by the bank's board of directors/Management Committee of the board. The proposals for less than Rs.25 lakh might be sanctioned by the appropriate authority in banks in terms of the powers delegated to them, the RBI said.

HBL

Republic Day celeberations, RBI, Nagpur

Rate-sensitive sectors bound to benefit, say fund managers

............"With the RBI initiating monetary easing by way of cutting CRR by 50 bps, which was higher than our estimates, interest rate sensitives are bound to benefit.".......

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RBI to banks: Take call on stressed sector exposure

The RBI has put the ball squarely with the banks on the question of whether to take fresh exposure to the power sector in the wake of fuel woes and mounting distribution sector losses raising serious viability concerns.............

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RBI directs banks not to overstate value of house property for loans

Stating that banks have been found overstating value of houses they finance by adopting practices like including stamp duty and other charges in the cost, the RBI today directed lenders to refrain from such practices..............

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RBI seeks details of banks' exposure

.... RBI is aiming to find out the amount of loan that is given to those companies other than acquiring licences, which are mostly for capital expenditure.......

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RBI directive on deposits with Manappuram Finance

Reserve Bank of India (RBI) has advised the general public against depositing or renewing deposits with Manappuram Finance Limited, Thrissur, as the company is registered with RBI as a non-deposit taking Non-Banking Financial Company with effect from March 22, 2011. An RBI release said the company was not permitted under the Reserve Bank of India Act, 1934, to accept/renew deposits from the members of the public. 

HBL

RBI launches industrial outlook survey for Jan-March 2012

....The RBI has been conducting the Industrial Outlook Survey on a quarterly basis since 1998. The latest will be the 57th round of the survey. It has entrusted the task of conducting the survey for the current quarter to the Centre for Research Planning and Action (CERPA).....

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Purchasing Managers’ Index: Optimism in the air

....With the PMI hinting at a revival in growth, interest rate cuts by the RBI may be just what the doctor ordered to put the economy back on track. However, the apex bank may not be in a hurry. More so, because upside risks to inflation still remain high.....

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SBI set to publish pics of defaulters to force them to pay dues

.... "The idea is to discourage the public from defaulting on loans. We will send them notices before going ahead with such measures,"......

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LIC takes the electronic route for all policy payments

....Operated by the Reserve Bank of India (RBI), NEFT is a nationwide system that facilitates transfer of funds from one account of any bank branch to another. At present, around 74,000 banks across the country are participating in this system.......

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