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.
Sunday, July 29, 2012
Reviving investment is key to boost growth: Bimal Jalan
Rebuilding a Stronger Microfinance Sector in India
The central government has now stepped in. The Microfinance Institutions (Development and Regulation) Bill, 2012 puts the Reserve Bank of India firmly in control of the sector. Vijay Mahajan, the president of the Microfinance Institutions Network of India and also the founder and chairman of the Basix social enterprise group talked to India Knowledge@Wharton about the implications of the new bill and the way ahead for the sector.........................
FinMin asks PSU banks to reform board meetings
.....“Issues relating to business strategy and operations should be discussed at the board once a quarter. What is happening now is a lot of time goes into reporting items prescribed by the Reserve Bank of India (RBI),” ...........
My View on "Yaga Venugopal Reddy set to head 14th Finance Commission...":
These days, when every move of the government and political leadership is justifiably viewed with suspicion, may be because of the presence of people like Manmohan Singh and Dr C Rangarajan and several other right-thinking veterans in Delhi (who survive there as others are not interested in hard work!), some decisions stand out giving hope that all is not lost yet. The choice of Dr Y V Reddy for this job is one such instance. He will have a tough time balancing pulls and pushes of a multi-dimensional nature. But he will face all those with his disarming smile and quickly do the right thing at the appropriate time. This Finance Commission will have the responsibility of giving a direction not only about ensuring distributive justice in allocation of resources but also making the economy move forward from the present stalemate. Congratulations to Dr Reddy !
- M G Warrier
‘Kidnap’ complaint hits efforts to weed out loan recovery evils in West Bengal
.....Another agency owner argues: "The last major such incident in Kolkata was in 2007. Since then, prodded by the RBI and the banks, a rigid system has been put in place to weed out such incidents. To be fair, in the five years since, nothing happened."........
Read - TOI
Read - TOI
The colour of money
It may not take a century for villages in India to get banks, and villagers to own accounts. Madhya Pradesh is paving the way for financial inclusion. The state is suddenly full of excitement about what it considers is a feat. Its rural development department has hired publicity agents to spread the word that every villager in the state would have an account by August 15. This is the result of a change in strategy, according to the officials of the state government...........
Unpractical ‘short-changed’ advertisement by union ministry of consumer affairs
.... It refers to advertisements entitled ‘short changed’ in all the newspapers on 27.07.2012 by helpline-website ‘jago grahak jago’ launched by union ministry of consumer affairs awakening people to insist on change instead of unwanted items like candies usually given by shopkeepers due to usual shortage of coins. Instead of wasting public-money on such unpractical advertisements, various concerned wings of union government namely department of consumer affairs and security printing & minting corporation of india limited (spmcil) should first co-ordinate amongst themselves to ensure sufficient supply of coins especially in denominations of rupees one and five which are presently ‘sold’ at high premium in ‘coin-markets’........
UP asks banks to be especially alert on fake Indian currency
.........The minister also accepted that cases of fake notes from bank ATMs have also come to the light and added that suggestions have been given to the RBI for not allowing money into ATMs manually and deploy guards there after their character verification.........
Fake Indian currency a threat to country
Lucknow, Jul 25: Cirulation of fake Indian Currency Notes (FICN) and other counterfeit items is a major problem in Uttar Pradesh which could be a terrorist and economic threat for the country, several speakers at a FICCI- CASCADE seminar maintained here today. Speaking at the seminar titled ‘Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy’ as the chief guest, Uttar Pradesh Commissioner Customs Ajay Dixit maintained that the smuggling of counterfeit currency was widely prevalent in the country due to its porous international borders with Nepal and Bangladesh. Dixit quoting RBI statistics, said...............
Where have all the coins gone?
......An examination of the scarcity of coins in various parts of the country might offer a bigger picture. Earlier this year, the RBI had decided to back out from retail operations and hence halted their distribution of coins from its offices. But there are allegations of procedural inexperience of the present distributors, which has further resulted in the rising price of coin and an uneven demand-supply ratio. Inadvertently this is affecting the economy very badly. Let’s do a simple math. Suppose in Manipur, a one person loses Rs 3 a day while shopping; then the state loses Rs 81,65,268 daily, if we take into account the present population of 27,21,756 as per the 2011 census. Needless to say, some economists measure the shortage of coins is adding to 3% to 5% inflation in the national economy.........
State opts for e-payment from August 1
BHUBANESWAR: The state government will launch the new system of electronic disbursement of government payments from August 1. The new system, which is being launched in collaboration with the Reserve Bank of India (RBI), aims to benefit government employees, vendors, suppliers and other payees and ensure transparency in all financial transactions and accelerating the pace of payment.......
Foreign banks expand presence outside large cities
.........The Reserve Bank of India (RBI) has not allowed large foreign banks to open branches in metropolitan cities in the past five years. This has resulted in places such as Proddatur, Nandyal and Nanded getting foreign bank branches. “RBI does not appreciate the idea of large foreign banks having more branches in metro cities,” said a top executive of a large foreign bank who did not wish to be named. “There are no guidelines or written communication. But they have made it very clear that they want foreign banks to expand into deeper geographies.”...............
Private banks' value two times PSUs'
India’s banking system has its pockets of excellence and pockets of incompetence, and everything in-between. The regulator, RBI, does a reasonable job but there is also a fair amount of political interference. Commercial interest rates are set by banks themselves, and policy rates, cash reserve ratios (CRR), sector lending limits and sectoral risk-weights are set by the RBI..................
Regulation and supervision of MIVs: An urgent task for central banks and regulators globally
......In fact, during the Indian microfinance crisis, I realized that India’s central bank (Reserve Bank of India) perhaps did not have (in one place) all the requisite information with regard to foreign equity and debt flow into the Indian microfinance sector. And as I have previously mentioned, (and as Mix Market has so eloquently put it), it is the unique combination of significant equity flows (and debt funds) from abroad with local banking funds and their subsequent and continuous investment as “microfinance loan assets” that created the perfect storm for the Indian microfinance crisis. It is precisely this that regulators have to guard against globally.........
Indian central bank in focus again
.....The RBI, which believes monetary tinkering is not the prescription to deal with the gloom hanging over the nearly $2 trillion economy, is unlikely to stray from its stated policy. It is more concerned with price pressures that are bursting at the seams, especially for food items that are driven by supply-side bottlenecks. Fuel prices, kept artificially low by unsustainable government subsidies, are another time-bomb the RBI is worried about...........
India's mid-summer nightmare
........Eventually, high food inflation hits the overall economy and prompts the Reserve Bank of India to raise interest rates to suppress prices. Currently, high interest rates have made borrowing costlier for firms, which do much of their business on short-term loans. "There are blunt instruments which can bring down inflation but also dampen growth. But we don't have a consensus on how much of dampening of growth is acceptable to bring down inflation," Kaushik Basu, India's chief economic advisor, said.......
SBI's Chaudhuri says liquidity situation still tight, ICICI's Kochhar differs
New Delhi: State Bank of India Chairman Pratip Chaudhuri has said that there is a strong case for the central bank to cut the cash reserve ratio in the forthcoming monetary policy review as the liquidity situation is still tight, contrasting the state-run bank's top private sector rival ICICI Bank's view that cash flow in the banking system is comfortable............
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