Dr. Duvvuri Subbarao , Governor, Reserve Bank of India has kindly consented to release the book, in the presence of Dr Y.V. Reddy and Professor Alaknanda Patel.
Date: Monday 16 July, 2012 at 5.00 pm
Venue: Reserve Bank of India Auditorium, Mumbai
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Wednesday, July 4, 2012
Of Economics, Policy and Development : An Intellectual Journey by I. G . Patel
Dr. Duvvuri Subbarao , Governor, Reserve Bank of India has kindly consented to release the book, in the presence of Dr Y.V. Reddy and Professor Alaknanda Patel.
The economist as saviour
Indusind Bank opens it's first Currency Chest
IndusInd Bank opened its first Currency Chest in Mumbai – at the Bank's Thane Branch. Mr. Shekhar Bhatnagar, General Manager, Reserve Bank of India, Belapur inaugurated the Currency Chest in the presence of Mr. Romesh Sobti, MD & CEO, IndusInd Bank Ltd and other senior officials of the Bank...........
File complaint after paying credit card dues : Banking Ombudsman
Credit card users should pay their bills first and then lodge the complaint in case of a dispute with the card provider, said Banking Ombudsman (New Delhi) M Rajeshwar Rao. This will protect them from the risk of paying more in case the decision is in favour of the card provider, according to Rao. Customers should read terms and condition carefully so that disputes can be avoided, he said. It is advisable, in case of credit card disputes, to pay the dues and subsequently file complaint against the credit card company, he added.........
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May we finally have some clarity please, Mr Prime Minister?
....If finance ministry officials were quoted as saying the interest rates need to be brought down, the central bank did quite something else, holding on to rates at its last mid-quarter policy review. This was also preceded by a strange event of two RBI Deputy Governors even giving contrasting signals on the direction interest rates should take. Not great news for a business community starved of growth momentum.........
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Slumdog City Retail Banking to Boom With Wireless: Tech
....For a start, the Reserve Bank of India requires wireless companies or “non-banks” to partner with banks to offer mobile banking services, leading to tight controls on business. One reason is that only banks are permitted in India to accept deposits for maturity of less than one year. “Going for a bank-led model was a conscious decision,” Alpana Killawala, spokeswoman at the central bank, wrote in an e-mailed response to questions from Bloomberg News. The regulator is also concerned about “customer service issues”associated with the telecommunications company-led model, such as insufficiency of funds at the paying outlet, she wrote. ....
Gujarat's urban co-op banks fight Madhavpura's ghosts
...... senior RBI official associated with regulation of UCBs said the prudential norms to regulate these banks were very much in place then. But the apex bank was much liberal. There was a sharp rise in the deposit bases of UCBs and many banks were unable to manage the sudden growth. Some crooks took the advantage of gaps. Taking a leaf from that episode, RBI put freeze on any expansion in activities by UCBs, till they brought their houses in order. It banned opening of new branches. The dual control (UCBs come under the regulatory oversight of RBI and the registrar of cooperative societies) has always hampered effective regulation. RBI formed state-specific task forces to deal issues of UCBs. It identified weak but viable banks and firmed up their revival plans. If that failed, road was open for merger with stronger UCBs. In extreme cases, it could go for liquidation.......
Allow co-operative banks to be listed: Greater Bank CEO
To ensure that they survive and thrive, the top 50 urban co-operative banks (UCBs) should be allowed to be listed on stock exchanges, said a senior co-operative banker........
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URBAN CO- OPERATIVE BANKS NEED THEIR SHARE OF RECOGNITION
....in fact UCBs need to be given some kind of support, relaxations. Facilities available to commercial banks such as refinance facility, interest subsidies on various loans such as housing, educational, SME etc. need to be given to UCBs also. Instead they are made to follow international prudential norms, fulfil the various ideal parameters without considering their size, category, area of operation and in case of failing to comply these norms, various restrictions are imposed by RBI on their branch opening, dividend distribution, lending operations. Various such issues affecting UCBs are forwarded to RBI from time to time for taking policy decisions. However slow moving approach adopted by RBI for resolving these issues act as a hindrance in the growth and development of UCBs.......
Banking must go hi- tech to address socio- financial inclusion
......Urban co- operative banks can play a pivotal role in the " real last mile socio- financial inclusion". They can bridge the gap of the staggering geographical disparity, socio- economic categories and the pervasive divides such as physical inaccessibility, cost of access, lack of awareness and trust deficit. Co- operative banks are better equipped to address these issues, given their widespread reach, lower operating costs, flexibility, and deep- rooted connections with the local communities, which, in turn, inspire trust.
With an effective technological application and modernization approach, urban co- operative banks can expand their reach even further; improve operational efficiency and address customer needs more effectively.....
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With an effective technological application and modernization approach, urban co- operative banks can expand their reach even further; improve operational efficiency and address customer needs more effectively.....
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Fallout of a Crisis: The Future of Microfinance in India After Andhra Pradesh
....Janalakshmi, an MFI headquartered in Bangalore, is using a biometric scanner in the field where a thumb print verifies loan collections and disbursements in order to reduce an agent’s time with each client and reduce fraud risk. The use of innovative technology also extends to customer-facing applications. Moving microfinance into a cashless process has benefits for every player in the value chain as it reduces human resource labor, creates electronic records and transaction information in real-time and is ultimately more convenient for the client. The use of mobile technology ......
RBI in its own way is accommodating quantitative easing policies through OMOs
....However, the RBI in its own way is accommodating such policies through its purchases of government bonds. This brings us to the point that inflation in India comes from the non-tradable rather than the tradable sectors. CPI inflation running at 10.36% not converging to WPI at 7.55% captures this idea. Inflation in the non-tradable sector is in th remit of RBI monetary policy and probably has its roots in RBI's QE policy........
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India’s Unbanked Poor
...........However, despite the policy initiatives and efforts of non-governmental institutions, significant proportion of the nation, primarily those who dwell in rural areas, continue to be outside the coverage of the formal banking system. RBI’s own reports suggest that almost 40 percent of Indians lack access to even the most basic kind of financial services.................
Not by ‘animal spirits’ alone
....Not much, other than asking the RBI to reduce interest rates in the hope that will appease organised economy stakeholders. Right now the RBI is not willing to play the appeasement game. Its interest rate policy has not caused the slowdown as much as stakeholders, partly blindsided by New Delhi policymakers, would like to believe. In an inflationary situation, caused by global circumstances and policy ineptitude, the RBI stands out as an exemplary model for commitment to its mandate, more so under circumstances of flippancy and weary helplessness in New Delhi......
Ganeshaspeaks: No major overhauls for Indian banking sector
.....What lies ahead for Banking sector in India and the Indian stock markets? Taking into account the base period (01-01-2002) and the date of launching (23-06-2003) of Bank Nifty, Ganesha has prepared the Horoscope of the Indian banking sector. Looking at the planetary positions in the chart, Ganesha predicts the possible implications of the RBI's current monetary policy, particularly regarding to the repo rate and CRR........
Tripura mulls against Non-Banking Institutions
.....The existing laws are not sufficient to stop such illegal financial business of the NBFCs unless Ministry of Finance, Reserve Bank of India (RBI), Insurance Regulatory Development Authority (IRDA) or Securities and Exchange Board of India (SEBI) do not make coordinated effort,” .....
Interest rate hurting; RBI should cut rate gradually: Kamath
High interest rate is hurting the common man and RBI should cut interest rate gradually to spur economic growth, ICICI Bank Chairman K V Kamath has said. "I would think that we cannot dismantle rate which is very high. We have to do it gradually ... To kick-start demand at the hands of retails individual that's where large part of growth would come from," ..............
Assocham wants RBI to cut policy rates by 100 bps
.....Assocham representatives met the RBI Governor, Dr D Subbarao, on Tuesday to put forth their suggestions to reduce both the repo rate (the interest rate at which banks borrow funds from RBI) and the cash reserve ratio (the slice of deposits that banks park with the RBI) by 100 bps to support credit growth and investments. .....
Sebi probe widens to Fema breach
....The new findings broaden the scope of the violations and raise questions over breaches of the Foreign Exchange Management Act (Fema), which deals with laws relating to foreign exchange to facilitate external trade and payments and promote the orderly development and maintenance of the foreign exchange market in India. If indeed this happens, the Reserve Bank of India may step in as Fema violations are investigated by the banking regulator. .....
Exchange rate factors in high current account deficit: Dhawal Dalal
....In our view, RBI will continue to watch economic indicators to determine the trajectory of inflation and steps taken by the government to control fiscal deficit before deciding on rate cuts. Currently, the CPI (inflation), a measure of consumer prices, is approximately (at) 10 per cent. If we have a poor monsoon this year, it could result in higher food prices, translating into higher inflation. Hence, most market participants don’t expect RBI to cut rates in July at this point. As far as other central banks are concerned, monetary policies continue to observe deteriorating growth in their respective economies and are repositioning themselves for a loose monetary policy.......
Financial system risk rising: RBI
......“The problem in Europe is a bad news for the Indian banking system only to the extent that the European banks will not subscribe to bond issuances of Indian banks,” said Raman of Canara Bank. “They are major buyers of our bonds and the shrinkage in their balance sheet spells trouble for our overseas funding requirement.” The RBI report said any change in India’s external rating could have “cliff effects”, impacting both the availability and the cost of foreign currency borrowing for Indian banks and firms. The effect will not have any impact on domestic credit availability even as specialized types of financing such as structured long-term finance, project finance and trade finance could be impacted, the central bank said.
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Final GAAR guidelines will remove investor suspicions: C Rangarajan
....The trade-off between growth and inflation is purely a short-term phenomenon. Over the medium term, there is no such trade-off. Over the medium to long term, high growth is possible only in an environment of low inflation. However, even in the short run, the primary responsibility of a central bank is to control inflation. RBI’s ability to adopt an easier stance would be facilitated if headline inflation, particularly non-food manufacturing inflation, begins to show signs of a decline. At the moment, I agree with RBI’s policy. But growth is certainly important. As soon as we get clear signs of a declining trend, action towards an easier monetary policy can be taken.......
Is India moving towards a stagflation-like situation?
.....Stagflation has, historically, been caused by expansionary policies that exacerbate supply shortfalls. But, the grievance has been that the Reserve Bank of India has been choking growth by raising interest rates and that the government has withdrawn the stimulus. If this were so, there is again a strong case for not terming the situation close to stagflation......
NRIs will now have to pay service tax for sending money home
....According to the Reserve Bank of India data there are 30 million NRIs. Currently no other country imposes tax on remittances and India would be one of the first.........
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SBI waives minimum balance for savings accounts
The country's largest lender, State Bank of India (SBI), Tuesday announced that it has done away with the minimum balance requirement for savings accounts for both existing and new customers...........
CAD’s bad, real bad: and external debt is looking worse
......In the context of the Reserve Bank’s moves to further increase external borrowing in order to bring in short-term capital flows into the country and boost the rupee, we are probably building up problems for the future – unless exports can be shored up........
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IDBI Bank concludes first transaction through RBI's web-based NDS OM module
.........IDBI Bank concludes first transaction of its gilt account holders (GAHs) through RBI’s web-based Negotiated Dealing System (NDS) OM module. With this, the bank has become the first Primary Member in the country to enable such deal in the Indian market................
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Muted response to RBI's government securities trading facility for corporates
....The Reserve Bank of India's web-based platform meant for corporates to trade in government securities got off to a slow start on Monday, with just IDBI Bank letting one of its customers to access the trading platform directly.....
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Syndicate Bank brings small enterprises under one roof
....According to the guidelines of Central Government and Reserve Bank of India, the bank has taken steps for increased flow of credit to micro, small and medium enterprises sector....
Nagendra Murthy is new MD of TMB
....The RBI, it is learnt, cleared the air by formally communicating the appointment of Mr Nagendra Murthy as MD of TMB late last week. The board met in Bangalore on Tuesday to stamp its approval.....
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