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Tuesday, August 7, 2012
Govt Will Work With RBI to Control Inflation: Chidambaram
Activating Debt Markets
MUMBAI, India - Reserve Bank of India (RBI) Deputy Governor H.R. Khan to chair a panel discussion on 'Activating Debt Markets' at the CAFRAL Programme on Treasury Management - 1100 on 11th August 2012.
The Sa-Dhan FICCI Financial Inclusion Conference 2012: Exclusions to the fore?
It is very easy to talk high flying concepts at conferences, however, much of the intended strategies are not implemented and that is something that conference organizers must take notice of with regard to financial inclusion and/or microfinance............
Vidarbha Taxpayers' Association urges RBI too direct banks to install fake currency detector machines
........."RBI should issue mandatory orders to this effect immediately. The common man fails to detect fake currency and all cannot procure FCDM, hence banks should also install one such FCDM for its account holders and general public in their premises," said Vidarbha Taxpayers' Association members in a memorandum sent to Prime Minister Manmohan Singh and RBI governor Dr Duwuri Subbarao........
RBI wants government to simplify foreign investment regim
The Reserve Bank of India has dashed off a proposal to the finance ministry to simplify the country's foreign investment regime, hoping that the new team at the North Block would expeditiously consider the suggestion gathering dust for years.............
Banks told to adjust base rates in tune with monetary conditions
Lending rate benchmarks (or base rates) of banks are expected to be responsive to monetary conditions, according to Anand Sinha, Deputy Governor, RBI.Speaking at the launch of IDBI Bank’s online portal for selling Certificate of Deposit, Sinha said the banking system is supposed to be responsive to monetary conditions, and to that extent the RBI would like banks to respond by adjusting their base rate (read: effect a cut)...........
RBI wants banks to cut base rates, not select lending rates
A Korean lesson for India
....he Reserve Bank of India (RBI) is unable to cut interest rates because, while the economy is slowing, inflation remains uncomfortably high and may even accelerate as insufficient monsoon rainfall pushes up food prices. Some months ago, Korea had a similar problem: inflation expectations were holding close to the top of the central bank’s two to four per cent target even though......
How to make the most of banking ombudsman system
......., “If you are not happy with the award, you will then need to approach the appellate authority. The deputy governor of RBI is the appellate authority.” Keep in mind, that even banks can approach the appellate authority against the award passed by the ombudsman. You usually get 30 days to get in touch with the appellate authority from the date of receipt of the award. The appellate authority can dismiss or allow your appeal to stand or even change the award amount.........
.........Of course, you will need patience to deal with the ombudsman system. But a lot of good changes have happened in the past, only because customer have lodged complaints with ombudsman and followed through.
Rate action unlikely in RBI policy meet on 17th September: Killol Pandya, Daiwa Mutual Fund
.....here is also seemingly a lack of fiscal steps to assist in the monetary actions which RBI has undertaken in the past. So, in that context, we welcome the situations where we are seeing liquidity improve significantly more than what we all thought it will improve. That is assisting the reduction in short-term yields in the 1- to 3-month segment. Therefore, it is a welcome situation.......
Rewarding profligacy
.....There is a need, perhaps, for a re-look at the conduct of RBI’s OMOs. In today’s context, they have effectively become a means for the Government to get the central bank to print money to finance its deficits. True, the RBI no longer subscribes to primary auctions of government stock. But by buying these in the secondary market from banks, often just before an auction is scheduled, it is indirectly achieving the same results. The primary fault for this, of course, lies with the Government.......
Chidambaram unveils roadmap to lift economy
...Unveiling a broad roadmap to regain the confidence of investors, the Minister, who took charge of finance portfolio last week, made a detailed statement in which he said that government will work with the RBI to moderate inflation in the medium term. ............
RBI Governor D Subbarao meets P Chidambaram, discusses economic situation
NEW DELHI: Reserve Bank Governor D Subbarao today met Finance Minister P Chidambaram and discussed the macro-economic situation. This was the first meeting between the RBI Governor and Chidambaram following his taking over the charge of the Finance Ministry last week. "Met the Finance Minister after he took charge. Reviewed macro-economic situation with Finance Minister," Subbarao told reporters after the meeting............
Why P Chidambaram, RBI governor D Subbarao meeting matters
Reserve Bank of India Governor D Subbarao met finance minister P Chidambaram on Monday. The relationship between the finance minister and the Governor is critical in the context of the situation in the economy. While it is called a ‘courtesy call’, the governor needs to highlight critical areas for the government to act on so that he can cut interest rates to stimulate growth.............
Looks like Chidambaram will ride roughshod over RBI on rates
........But if he meant that the RBI must cut rates and not wait for Chidambaram to start reining in his fiscal deficit (which he said nothing about containing), he is merely following in the footsteps of his predecessor, Pranab Mukherjee. He is setting up the economy for greater failure. The only interpretation one can put to this statement is that as FM he is going to force the RBI to cut rates, impacting both the central bank’s independence, with negative consequences for the economy. Duvvuri Subbarao is going to be under tremendous pressure from North Block to cut rates.........
Now, RBI blames govt of policy stasis
It is not just the Opposition that feels the government is in the grip of a policy paralysis. The Reserve Bank of India has said "concerns over policy stasis" must be addressed as "newer risks" to growth emerge from slowing global trade, domestic supply blocks and a slack monsoon. .........
End This Fudge
.........It is just over a week since an RBI-appointed Expert Group called for an early end to the present smoke and mirrors system of estimating (obfuscating?) non-performing assets (NPA) numbers, euphemistically termed ‘regulatory forbearance’. Yet, far from heeding the Group’s suggestion, the government is reportedly contemplating exactly the opposite........
Monsoon-led inflation cuts rate hopes at Goldman
India’s weakest monsoon since 2009 is poised to fuel the worst inflation among the largest emerging markets and leading banks from Goldman Sachs Group Inc. to Nomura Holdings Inc. to cut forecasts for interest-rate cuts. Goldman Sachs now predicts the Reserve Bank of India will lower its repurchase rate by 25 basis points to 7.75 per cent by year-end, after paring an earlier estimate for a 75 basis point decrease last week.........
Pvt banks reject FinMin's joint lending proposal
.......Bankers said the uniform asset classification proposal would lead to legal complications. Also, Reserve Bank of India (RBI) norms had to be changed to implement the proposal, they added. “If the loan has not become an NPA for a bank, the SARFAESI Act (the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) cannot be invoked,” said a senior executive from a public sector bank. The Act enables lenders to recover dues without court intervention. Banks and financial institutions can take possession of securities in case of a default and sell these to recover the loan. The finance ministry has asked IBA to hold discussions with RBI to amend regulations and enable uniform asset classification in case a borrower defaulted on loans from some members of the consortium.......
Why Indian CEO pay needs policing?
.....In January, 2012 the Reserve Bank of India (RBI) issued guidelines on compensation of bankers. RBI felt that employees were too often rewarded for increasing the short-term profit without adequate recognition of the risks and long-term consequences that their activities posed to the organizations. Today, private sector and foreign banks operating in India need RBI’s approval for grant of remuneration to top executives. Variable pay of top bosses at banks has been restricted to 70% of fixed pay......
IRDA to finalise whistleblower policy soon: Hari Narayan
In light of the recent ICICI Lombard controversy, the insurance regulator said that it will soon finalise the whistleblower norms akin to what the Reserve Bank of India has........
Muthoot Finance to recruit 2,000 people this year
......Muthoot said that the industry was keenly awaiting the report of the KUB Rao committee of the RBI. The report was to be submitted by July 31, but since it has not yet happened, it is expected to come out any time now.
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