RBI asks Indian Institute of Bank Management to create pool of banking personnel

GUWAHATI: Expressing concern over the high rate of attrition in the banking industry, Sandip Ghose, the Chief General Manager-in-Charge of the Human Resource Management Department at RBI's central office, Mumbai, asked the Indian Institute of Bank Management (IIBM) here to create a pool of dedicated banking personnel in the region.............

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RBI paper considers monetary transmission in India

Reserve Bank of India working paper focuses on operation of monetary transmission mechanism in India; demonstrates significant causal effect of rate changes

                       

The Reserve Bank of India (RBI) published a working paper on May 18 considering the monetary transmission mechanism in India. The author, Deepak Mohanty, an Executive Director at the RBI, uses a structural vector auto-regression to assess the impact of policy rate increases on output growth and inflation. He finds that rate increases have a negative impact on growth with a lag of two quarters, and a moderating effect on inflation with a lag of three quarters. The overall effect lasts through 8–10 quarters. Furthermore, the author finds significant unidirectional causality from policy rate increases to output, inflation and some measures of liquidity. 

RBI warning on phishing mail

Srinagar, May 21: The Reserve Bank has cautioned general public against an e-mail being fraudulently sent in its name to cone people.  In its press note available on its website, the RBI says: “It has come to the notice of the Reserve Bank of India that an email has been sent in its name from mail id: alert@rbi.org and signed by RBI Online offering a 'new online security platform'.  According to the mail, the 'new online security platform' offers to 'prevent online identity theft in internet banking by asking the customer to go through a two-way authentication factor before he/she properly logs into internet banking every time'.  The email then asks the recipient to 'download the attachment and update'.  “The Reserve Bank clarifies that it has not sent any such mail,” it said, adding that in fact, it does not have any mail ids with extension @rbi.org.......................

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Claim deposit insurance by Mar 2013: RBI

Holders of two joint accounts in cooperative banks that failed before April 2007 have been given time till the end of this financial year to claim deposit insurance from DICGC, a subsidiary of RBI. "The benefit of the revised guidelines dated April 26, 2007 in respect of insured cooperative banks which have been liquidated prior to April 26, 2007 shall stand withdrawn and cease to have effect from March 31, 2013," RBI said in a statement.......................

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OBC conducts 67th State Level Bankers' Committee Meet

India on lookout for OMOs, RBI board

.....The RBI board's routine meeting takes place on May 24, after which Governor Duvvuri Subbarao will address the media at 3:30 p.m. (1000 GMT).  RBI Governor to meet Uttarakhand chief minister and other industry representatives on May 23 but possibility he will address media is low.


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White Paper suggest incentives for use of credit, debit cards

....The report also noted that as of now there are no legal restrictions to keeping very large amounts of cash with oneself or transporting it from one place to another. One is neither required to report it nor provide any explanation for it. "There have been suggestions that the government may consider amending existing laws, including the Coinage Act 2011, The Reserve Bank of India Act 1934, FEMA, and the Indian Penal Code, or enacting an entirely new statute aimed at regulating the possession and transportation of cash above a particular threshold limit,".............

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Check cheque issues

.....Notably, the Reserve Bank of India (RBI) in its directive has stated, “No changes/corrections should be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), etc., fresh cheque forms should be used by customers.” If there are any alterations on the cheque, except the date, customers will have to issue a fresh cheque...............

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Fool's gold

This refers to the report “300% jump in gold export industry questions data” (May 13). What is more disturbing than the possible discrepancy in the export figures for gold is our continual need to import gold despite a handsome domestic stock of over 18,000 tonnes. This is a direct draft on our precious forex funds. It is unfortunate that the government has made no perceivable effort to discourage the accumulation of “ornament gold” in households, which is partly responsible for financial loss in middle-class families and, to some extent, dowry and security problems. The import and accumulation of huge quantities of gold in the form of jewellery has other social implications like the under-utilisation of financial resources for productive use, and the pledging of assets for raising funds, which ultimately help only the money lender. One way to check the current rise in imports, which is not commensurate with exports of gold products, is to link the quantum of imports to the past few years’ export record. Import of gold for pharmaceutical and other essential purposes could be outside such limits.

M G Warrier, Thiruvananthapuram (BS)

JK Bank fails to support agriculture sector: Mir

......Mir said it was disgusting that J&K Bank and other nationalized banks operating in the state have not even been issuing the Kissan Credit Cards to the farmers. “Contrary to the Reserve Bank of India instructions, the banks are demanding guarantors for issuing such cards,” he said.  Mir said in his recent visit to the Valley, Governor RBI made it clear that no guarantor was required for KCCs up to Rs 1 lakh. “But J&K Bank and other banks are demanding the guarantors in this behalf, which goes against the very spirit of the central bank instructions,” he said..............

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All asset classes will be affected by the euro zone crisis

.....The first thing I remember RBI has not taken the responsibility of the development of the country and that is the responsibility in the hands of the government of India. So, we shouldn’t be expecting RBI to be coming out and bailing the Indian economy every time we get into serious trouble.........

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To stop the drift

Storm clouds are gathering over the Indian economy

....The rupee has been falling against the dollar and other foreign currencies week after week, and is crossing the historic low of Rs 54 to the dollar. The RBI has probably intervened in the foreign exchange market by selling dollars in order to stem the fall of the rupee. (I write “probably” because the RBI does not, for understandable reasons, conduct these interventions publicly.) But there is a limit to the extent to which the RBI can succeed in its efforts. Inevitably, market forces will determine the value of the rupee.........

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Don’t defend the rupee

When the rupee is volatile and there seems to be no sign of light at the end of the proverbial tunnel, it makes a lot of sense to let things be as they are. RBI has limited ammunition to defend the rupee and any kind of sale of dollars gets absorbed soon and the situation reverts to the status quo.........

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Sri Lanka to benefit from RBI's $2 billion swap arrangement

Sri Lanka is among the member nations of SAARC who will benefit from the RBI's $ 2 billion swap arrangement aimed at strengthening regional financial and economic cooperation, the Indian High Commission said today....................

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RBI, Indian Govt. has no right track of free fall of Rupee

.... “Whatever may be the tall claims either by the Finance Minister Mr. Pranab Mukherjee or the Reserve Bank of India, the rupee has been nose diving continuously unstopped and it has broken all previous records of plunging below the level of 55 rupees per Dollar.....

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Staying the hand on forex

.....The proponents of greater intervention, however, miss out on two things. The first is that the existing forex reserves, at around $292 billion (inclusive of gold), can pay for just over seven months of India's imports. In contrast, these sufficed for 13 months at the time when Lehman Brothers went belly-up. The crisis then, in a sense, presented an opportunity for the RBI to shed what many then considered as excess reserves in its kitty. Today, though, nobody can really compare the RBI's plight on currency reserves with that of the Food Corporation of India on grain stocks........

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Economy in ICU as rupee has a big fall

....Spelling fresh trouble for the Indian economy, the rupee began the week on a shaky note, plunging below the psychological level of 55 to close at an all- time low of 55.04 against the dollar on huge demand for the greenback from banks and importers to meet month- end requirements. The sharp fall came on a day the RBI reportedly did not intervene in the market but came out later to impose restrictions of USD 100 million on " position limit" for forward contracts by banks............

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RBI imposes restrictions on forex dealers as rupee hits 55 per dollar

As rupee breached the 55 level to its all-time low, the Reserve Bank on Monday imposed restrictions of USD 100 million on "position limit" for forward contracts by banks. "The position limit for the trading member...bank in the exchanges for trading Currency Futures and Options shall be USD 100 million or 15 percent of the outstanding open interest, whichever is lower," RBI said in a notification.............

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RBI says more steps to arrest rupee fall

Amid rupee breaching the 55 levels spelling more troubles for Indian economy, RBI Deputy Governor Subir Gokarn on Monday said the central bank will continue to take steps to stabilise the domestic currency. "There is very strong pressure on the rupee to depreciate ... we have done a number of things and will continue to do things that we think have an impact of stabilising the rupee," Gokarn said while speaking on the sidelines of an event on Monday evening.................

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