Gautam Chikermane: If you were RBI governor, would you cut rates today?
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Saturday, July 21, 2012
If I was RBI Governor, I would cut rates: Kaushik Basu
RBI officials depose before court
Coimbatore, July 20 (PTI) Two senior RBI officials today deposed before a Court here, which is trying the Rs 839 crore Pazee Forex Trading Scam, in which thousands of investors were cheated. H C Rathi, AGM, RBI, Mumbai and Chandini, DGM, RBI,Chennai told the Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) (TNPID) Court that RBI had not filed any complaints or cases, including under Foreign Exchange, against the firm.....................
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Inflation due to govt, industry — not RBI - M.Y.Khan
...........We have to realise that inflation is a baby of multiple factors such as: GDP growth, excess money supply, short supply of goods in the market, manipulation in the market, misconceived expectations, exchange rate movement, depreciation of the Indian currency due to large current account deficit, cost-push factor, rise in per capita income and increase in demand due to shifting of population to higher income bracket, and decline in poverty ratio.The Reserve Bank does not have multiple instruments to control all these variables. It is the government which has to grapple with the complexities of inflation, rather than hold the Reserve Bank responsible for the rise in inflation rate.
‘Govt and banks — a con game at some level’
Dr Y.V. Reddy makes a public appearance whenever he is delivering a lecture or writing/releasing a book. When he was in Mumbai earlier this week, to release a compilation of I.G. Patel’s essays, it was a good opportunity to get his views on some current issues. Retirement from the Reserve Bank of India has not dimmed his memory, his quick thinking or his gift of picking the right phrase to articulate his thoughts. He continues a busy career as a globe-trotting advisor even as he holds an emeritus professor’s chair at the University of Hyderabad. Most recently he flagged a number of important issues in his landmark lecture a month ago (Per Jacobsson Foundation Lecture at Basel). He makes reference to some of those issues in this interview...........
Golden escape route
.....Although it is true that a third of the global demand for gold is from India, the extraordinary penchant for gold (in preference to other forms of savings) wasn’t always there. In 2001-02, for instance, the fresh money that went into small savings avenues was more than three times the value of gold imports; now gold pips small savings. Shares and mutual funds too have been preferred options in some past years. The dramatic increase in the preference for gold is therefore new. And the former Reserve Bank governor, Y V Reddy, put his finger on the problem last week when he said at a lecture in New Delhi that the system has simply not given savers a fair deal.........
RBI unlikey to ease monetary policy soon
...."In the likely absence of any meaningful fiscal consolidation, RBI will be reluctant to cut interest rates, as without effective fiscal/structural measures growth may not be helped by lower rates while inflation could shoot up."........
Reserve Bank of India plans to tighten the debt restructuring norms
.....RBI working group headed by Deputy Governor Anand Sinha has said that RBI could do away with the regulatory forbearance regarding asset classification, provisioning and capital adequacy on restructuring of loan and advances in line with the norms followed internationally. This would means that banks will have to classify an asset as substandard and make provisions on it the moment it is restructured........
RBI to issue Rs5 coins bearing ICMR emblem
The Reserve Bank of India (RBI) will shortly put into circulation rupee five denomination coins bearing the emblem of Indian Council Medical Research (ICMR)........
Fake notes with face value over Rs 101 cr detected: RTI reply
.....The RBI said it has instructed all scheduled banks that bank notes in denominations of Rs 100 and above should be reissued by the banks over their counters or through ATMs only if these banknotes are duly checked for authenticity/ genuineness and fitness by machines........
Printing that small note costs big money
....In response to the RTI query on the average life of currency notes, the RBI said, “No study has been done so far in this regard. However, conventional wisdom indicates that smaller denomination notes have a lower average life than banknotes of higher denomination (100, 500, 1,000).” ........
Eulogising mediocrity – from cricketers to RBI governors
...........Anyway, I always listen to central bankers’ interviews with a sense of humour. How the greatest price manipulators in the history of commerce (which is what setting “interest rates” really does) can sit and talk with a straight face about reforms, markets and liberalisation is a great mystery. But the probable answer is that, with the exception of Alan Greenspan, most central bankers are Keynesian in their beliefs and so they are probably just lip-synching. But there is hope! As Reddy showed, once can always learn.
Personal guarantee must before loan restructuring: RBI panel
.....The RBI had in January set up the panel to review the existing prudential guidelines on restructuring of advances by banks and financial institutions and suggest modifications taking into account the best international practices and accounting standards. The panel, which is headed by RBI Executive Director B Mahapatra, said corporate guarantee should not be considered as a substitute for the promoters' personal guarantee...........
FII investment in MindTree hits trigger limit: RBI
....The Reserve Bank today said FII investment in MindTree has reached the trigger limit under portfolio investment scheme and purchase of further equity shares of company will require its approval. "...The aggregate net purchases of equity shares in Mindtree Ltd by Foreign Institutional Investors (FIIs) in the primary/secondary markets under Portfolio Investment Scheme (PIS) have reached the trigger limit," the RBI said in a notification today. Therefore, "further purchases of equity shares of this company would be allowed only after obtaining prior approval of the RBI," it said.........
Priority sector credit rules for large foreign banks, too
....In the draft norms, the banking regulator had said these loans would be classified under the priority sector up to a maximum of five per cent of adjusted net bank credit or credit equivalent of off-balance sheet exposure, whichever was higher. In today’s revised guidelines, RBI removed this cap and said “investments by banks in securitised assets, outright purchases of loans and assignments to be eligible for classification under priority sector, provided the underlying assets qualify for priority sector treatment and the interest rate charged to the ultimate borrower by the originating entity does not exceed the base rate of such bank plus eight per cent per annum.”.
Divert 40% loans to priority sector: RBI to some foreign banks
Foreign banks with more than 20 branches in India will have to channel 40% of their lending to the priority sector, which includes agriculture and small and medium businesses, in five years, the Reserve Bank of India (RBI) said on Friday...............
Where are the farmers in the great economy debate?
.........When the RBI Governor refuses to cut rates citing inflation, there’s a collective sigh of disappointment from the business class. The reaction follows the similar pattern when political parties stall bills that certain sections believe could usher in progress..........
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