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| RBI Governor D. Subbarao greets Governor K. Rosaiah at Raj Bhavan in Chennai on Wednesday |
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.
Thursday, July 5, 2012
‘Banks must look at last mile in micro finance’
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| Financial inclusion is a necessity, a pre-requisite for growth |
Read - The Hindu
Subbarao says banks treating no-frills a/cs as nuisance
Reserve Bank of India Governor D Subbarao on Wednesday expressed disappointment that frontline branch mangers treated low-income household customers as an intrusion into their time and business, and were treating “no frills” accounts as a nuisance. “The general impression I got is that frontline branch managers treat ‘no frills’ accounts as a ‘nuisance’ and low income households as an intrusion into their time and their business. This is disappointing to say the least,”.............
India Struggles to Cushion Rupee's Fall
For almost a year, India's central bank has spent billions of dollars to support the beleaguered rupee. And yet the currency is Asia's worst-performing against the U.S. dollar over the past year. The fruitless efforts by the Reserve Bank of India shows how central banks, especially in emerging markets, often are powerless to manage pressures on their currencies if international market forces are ranged against them..............
SC restrains RBI on approval to foreign law firms
....The court said "it is clarified that the Reserve Bank of India shall not grant any permission to the foreign law firms to open liaison offices in India under Section 29 of the Foreign Exchange Regulation Act, 1973". The expression "to practice the profession of law" under Section 29 of the Advocates Act, 1961 covered "the persons practicing litigious matters as well as non-litigious matters other than contemplated in para 63(ii) of the impugned order...", the court said........
Disappointing to see banks with low customer footfalls: Subbarao
Guv says banks should look at financial inclusion as an opportunity to build fortune at the bottom of the pyramid
The Reserve Bank of India (RBI’s) Governor Duvvuri Subbarao today said that there is a disappointingly large number of cases of bank branches with low customer footfalls. The Business Correspondent (BCs) will drift off after a few months and ‘no frills accounts’ which remain largely inoperative. In his oration speech as part of Indian Overseas Bank’s Platinum Jubilee celebrations at Chennai on Wednesday Duvvuri Subbarao, Governor, Reserve Bank of India said that banks should look upon financial inclusion not as an obligation but as an opportunity to build fortune at the bottom of the pyramid.............
Read.........
Have banks misled investors by inaccurate reporting of NPAs?
.....Dr Chakrabarty could not have been unaware of the practices of reporting of NPAs in PSBs as he was the CMD of two public sector banks- Indian bank, one time a weak PSB, and Punjab National bank-prior to his becoming the deputy governor. Generally speaking, banks in the past endevoured to show diminished figure of NPAs, in such of those loans where the departure from the strict criteria of identification of NPA, was 'minor' which the statutory auditor accepted as reasonable.....
TN's diversification model to help address risks: Gokarn
Tamil Nadu has managed to show resilience during the bad times mainly due its diversification, which can be a good example on how diversification is a best way for lesser risk, says Reserve Bank of India (RBI's) Deputy Governor Subir Gokarn..............
RBI will focus on progress of south west monsoon: Subir Gokharn
CHENNAI: The Reserve Bank of India would pay more attention to the progress of the south west monsoon as it goes into its "policy date", RBI Deputy Governor Subir Gokharn said .........
RBI wants loan rates to be more transparent
“One problem that has persisted even after the introduction of the base rate system relates to the lack of transparency in the customer-specific spread charged to a borrower over the base rate,”........
Current account deficit has put pressure on rupee: RBI
.....“I don’t think the rupee movements are directly correlated with open market operations but are being driven by judgements on liquidity conditions and will continue to be driven by conditions on liquidity – whatever is causing the liquidity stress whether it is foreign exchange markets or something else,”......
RBI says no co-relation between OMOs, rupee
....."I don't think you can directly correlate the rupee movement with the OMOs," Gokarn on sidelines of an industry event in the southern city of Chennai, where the RBI's two-day board meeting began on Wednesday. "OMOs are being driven by judgements about liquidity conditions and they will continue to be driven by judgements about liquidity conditions, whatever is causing liquidity stress, whether it is foreign exchange market or something else.".......
Decision analysis for interest rates
....Several analysts applauded the Reserve Bank of India’s (RBI’s) resisting cutting interest rates despite declining growth. Some quoted monetary theory to justify this; others praised the regulator’s standing-up-to-government stance. Meanwhile, the nation groaned, waiting for relief. Is this just the vaunted animal spirits in reverse, that perceive a half-full glass as half-empty? Or is there substance to the frustration of those who function in the real-world marketplace, who deliver products or services and expect rational solutions?....
Current account deficit a major cause for rupee fall: Gokarn
Discount on debit card-payment acceptance postponed to Sept 1: RBI
The Reserve Bank today said reduction in merchant discount rate (MDR) for purchases made by debit card payment to 0.75-1 per cent, which was to be effective from July 1, will now be applicable from September 1 due to some operational issues.................
Finance ministry pushes for lower third-party ATM fee to increase financial inclusion
The finance ministry will push for lower third-party ATM charges in a bid to increase financial inclusion, risking further unpleasantness between the government and the Reserve Bank of India, which is not enthused by the idea...............
Micro-lending norms to be eased in phases: Subbarao
.....where floating rate loans are concerned, existing customers have been disadvantaged vis-Ã -vis new customers with similar credit ratings, resulting in complaints about discrimination. To address this, the Reserve Bank has constituted a working group under the chairmanship of Deputy Governor, Mr Anand Sinha, to determine the principles that must govern proper, transparent and non-discriminatory pricing of credit. The working group is expected to submit its report by August 2012....
RBI may relax norms to revive microfinance industry
Microfinance institutions (MFIs) in the country can breathe easy as the Reserve Bank of India (RBI) is likely to relax some of the norms pertaining to their net worth, capital adequacy and provisioning needs. The relaxations are expected to help troubled micro-lenders emerge out of the crisis. "The rollout of the new regulatory regime has run into some bottlenecks. Some MFIs are unable to comply with the qualifying asset criterion for registering as NBFC-MFI, and therefore banks are reluctant to make fresh loans to them as such loans do not qualify as priority sector lending," RBI governor D Subbarao said at an event organised by Indian Overseas Bank to celebrate their platinum jubilee here today.............
Finance ministry backtracks on bulk deposit cap diktat banks breathe easier
....“There is no instruction by (the) Reserve Bank of India on the proportion of bulk deposits to total deposits. Banks have their internal policy on these deposits. These are short-term deposits, primarily meant to bridge the asset liability gap in the short run,”.....
RBI should look at Islamic banking afresh: Khurshid
The Law Minister, Mr Salman Khurshid, said on Thursday that he had written to the Planning Commission and the Reserve Bank of India (RBI) on the issue of Islamic banking. He said he was quite hopeful that the RBI would look at the issue afresh and soon come up with its views after deciding on the technical issues..............
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