Award for Jaipur Foot chief patron D R Mehta

D.R.Mehta, Former Deputy Governor, RBI

D R Mehta, founder and chief patron of an organisation that popularised the Jaipur Foot, has been selected for the Rajiv Gandhi National Sadbhavana Award this year, the Award Committee announced today. The Award, which carries a citation and a cash award of Rs five lakh, is being given to Mehta, also a former chairman of the Securities and Exchange Board of India, for his outstanding contribution towards promotion of communal harmony, peace and goodwill........... 

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Shri Mehta can be contacted at drmehta.jaipurfoot@yahoo.com

Arvind Mayaram nominated as director in RBI board

...."...The central government has nominated Arvind Mayaram, Secretary, Department of Economic Affairs, Ministry of Finance, as a director on the Central Board of Directors of the Reserve Bank of India with effect from August 7, 2012 and until further orders vice R Gopalan," ......

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Par panel summons Subbarao, differs on monetary policy

Strong disagreement on various aspects of the RBI’s monetary policy led to a heated argument between Members of Parliament and Governor of the central bank D Subbarao, though the head of the nation's topmost financial nerve centre was forthright about the "difficulties" being faced by the nation's economy on the whole..............

Read - The Pioneer 

‘Outreach’ to develop model villages: RBI GM

The Reserve Bank of India embarked upon an outreach programme in an effort to shape under-developed and unreached villages into model villages by undertaking developmental activities through banks and has selected 15 villages in 15 districts in the State to conduct outreach programmes including Kammavaripalle in Porumamilla mandal in Kadapa district, RBI General Manager Rajagopala Rao said on Monday...............

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Of Financial Inclusion and Financial Literacy

The backdrop of giving this headline is because this column today tries to analyze some facts regarding the Financial Inclusion, the latest thrust by the Reserve Bank of India (RBI) on promoting Financial Literacy and its various aspects. Over the last few years, the Reserve Bank of India (RBI) as well as the Government of India has attached significant importance to the idea of Financial Inclusion.........

..........We, therefore, welcome this initiative taken by the country's apex bank and hope that this will go a long way in promoting financial inclusion as well as bringing about improvement in the quality of the lives of the poor and the downtrodden and bring in progress for the nation as well. We hope that this is realized by the authorities responsible for making the process a success and that the initiative is pursued in right earnest.  

Read - The Sentinel Assam

Do not play politics with currency notes

The RBI should not even entertain the thought of featuring personalities other than Mahatma Gandhi on the rupee. It’ll be playing with fire

Dear Mr D Subbarao: While we wish you the best in piloting a vibrant monetary policy for the country at this critical juncture, we would also seek your mediation in handling the vexatious issue of who should feature on our currency notes..........

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IDBI Bank launches IDBI Samriddhi online portal

.....The portal is launched by Anand Sinha, deputy governor, Reserve Bank of India at an event held at IDBI Bank's head office at Mumbai. "Banks need to fully leverage on the potential of technology," says Anand Sinha, deputy governor, Reserve Bank of India who commended the initiative. He further added that technology provides great opportunities for increasing transparency, enhancing efficiency and also in reaching out to a wider investor base......

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No case for removing margin cap on MFIs: Chakrabarty

....“The cap on margins is a must. We have had to introduce the cap because the industry had not behaved responsibly,” K.C.Chakrabarty, RBI Deputy Governor, said at a financial inclusion conference organised by Sa-Dhan and FICCI.........

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Indian banks can weather drought impact: RBI

New Delhi, Aug 7:  The Reserve Bank of India today said Indian lenders are resilient enough to weather the pressure on farm loans caused by drought-like situation because of deficient monsoon. “Whenever there is drought, there is a pressure (on farm loans). But we have sufficient rehabilitation measures so that banks can weather it out,” RBI Deputy Governor K.C. Chakrabarty told reporters on the sidelines of function here.Indian banking system, he added, “has enough resilience (and) will be able to face the stress”............

 

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Top PSB appointments may face FinMin review

.....The recommendations of the appointment board, headed by the governor of the Reserve Bank of India, were sent to then finance minister Pranab Mukherjee. However, the file was sent back to the appointment committee, after stiff opposition from some bank chairmen, who raised the matter with the top echelons of the finance ministry. The board, however, stuck to its stand of no lateral movement......

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State Bank of Travancore on recruitment drive

.....Candidates, will have to appear for a written test to be conducted on October 7 and 14. Candidates can visit www.statebankofindia.com, or www.sbi.co.in under the 'Recruitment link' for online registration, last date for which is August 13, an SBT release said.

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Programme on Treasury Management by CAFRAL

Venue: Hotel Taj Lands End Bandra (West) 

Objective: This programme is specifically designed at the Heads of Treasuries, of banks and their senior level team, who are responsible for management of funds and investments in their banks. The objective is to give an overview of the major issues that those heading/ managing treasury operations would need to address in the context of the evolving macro-economic and regulatory environment.

 August 10, 2012

11.45 am to 1.00 pm Developing and regulating money, forex and debt markets G Mahalingam CGM-in-Charge, FMD, RBI August 11, 2012 03.30 pm to 05.30 pm Panel discussion - Activating debt markets H R Khan DG, RBI P Krishnamurthy Formerly CGM, RBI C E S Azariah CEO FIMMDA Ananth Narayan, Head Treasury, SCB Director, CAFRAL

The expectations downshift

.... Recall that the consensus forecast was for a dramatic fall in inflation, which, in turn, would facilitate aggressive easing by the Reserve Bank of India (RBI). Expectations about rate cuts have undergone a dramatic shift, especially after the recent guidance by the RBI. The concerns are understandable given that Brent crude oil price has surged since bottoming in June. Also, the government is pussyfooting on the anticipated fuel price adjustment and the overdue fiscal correction. Finally, the impact of the poor monsoon will be much more relevant to inflation than growth.......

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Walk the (pep) talk

......Take, for instance, the goal of moderating inflation over the medium term while striving to reduce interest rates almost immediately. So far, the onus has been on the RBI although recently, all evidence points to inflation being driven up by high food prices and other supply side factors over which monetary policy has very little effect. The RBI has often been left to fight the inflation battle singlehandedly and without the support of fiscal policy. As expected, P. Chidambaram has put fiscal consolidation high on the agenda and promised a road map within the next few weeks.......

Read - The Hindu

Finance minister clears Rajan's name for CEA

.......A selection committee, headed by Prime Minister’s Economic Advisory Council Chairman C Rangarajan, had shortlisted Rajan’s name after examining applications of as many as 18 applicants. Rajan, an honorary economic advisor to Prime Minister Manmohan Singh, had not applied for the position, but was picked up by the panel itself........

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Govt to put in place fiscal action plan in 6 weeks

.....“The effort is to first give a kind of confidence to the RBI that the Government is taking steps for fiscal correction. This may bring a change in RBI thinking on interest rate.”.......

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Chidambaram to meet public sector bank chiefs on August 18

....This meeting is significant as it comes in the backdrop of the banking industry facing a crisis-like situation on several fronts, including rising bad loans and human resource problems.........

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To boost economy, RBI must work in tandem with Govt

.........The most relevant question today is not whether the Government is disrespecting the RBI’s autonomy or if the RBI should be allowed to take its own considered assessment of the macroeconomic situation — global or domestic — and act as it alone deems fit, in isolation. There are other important questions such as the efficacy of the RBI’s policy stance so far. For example, the rate rising cycle was steep and fast and in a sense inflation has been stubborn and not really responded to the policy actions. And to believe that a more aggressive rate cutting would fuel inflation immensely seems to be farfetched. The RBI cannot stand aloof.........

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Mr Chidambaram, don’t screw savers to help yourself!

....It is clear that Chidambaram’s brief is to revive growth and what the PM called “animal spirits” in the economy. But the FM is baring his fangs only to the RBI. He is purring like a cat to foreign investors, as evidenced in the announcement on reviewing the retrospective tax.......

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Mr FM, think economy-friendly, not market-friendly policies

........Market-friendly policies are politically acceptable while economy-friendly policies are politically difficult to digest. The question is does the FM have the political backing to take economy-friendly policies? A diesel price hike will not only help bring down the fiscal deficit but will also give the RBI headroom to use monetary policy to ease falling growth pressures. However, given the rising inflation expectations due to weak monsoons, there will be a huge political hue and cry over diesel price hikes..........

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P Chidambaram may have to mend fences with RBI

....Sealing a growing rift between RBI and the government may well top finance minister P Chidambaram's agenda, with the central bank saying declining public investment and a rising revenue deficit slowed growth more than high interest rates........

Read - TOI

Plan commission to use Tendulkar approach for measuring poverty

......“Unless the Rangarajan panel recommends a new methodology for measuring poverty, in which case poverty percentages would be computed based on both the methodologies, the government would follow the methodology suggested by the Tendulkar committee,” ..........

Read - Mint

RBI relaxes KCC repayment norms to help farmers fight drought

.....While modifying the KCC guidelines, RBI has removed the clause pertaining to mandatory repayment of loans by card holders within a year and gave freedom to banks to fix the repayment period. The decision will benefit over 10 crore KCC holders. "The repayment period may be fixed by banks as per the anticipated harvesting and marketing period for the crops for which a loan has been granted," the RBI notification said........

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State Bank wants benchmark prime lending rate scrapped

....The demand for the sunset clause is being made again by banks at a time when the central bank is reviewing the loan pricing mechanism. A committee under RBI Deputy Governor Anand Sinha is looking into the issue of transparency in loan pricing and also studying the efficacy of base rate with respect to transmission of monetary policy.......

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CCI confident it will get to police all sectors

.....Regulators like the Reserve Bank of India (RBI) and the Telecom Regulatory Authority of India (Trai) have been opposing the idea of CCI having a say in determining mergers and acquisitions in banking and telecom, but Chawla expressed his confidence that no sector will be kept out of the purview of the commission’s mandate of ensuring fairplay........

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Indian banking's paradigm shift: Funding ways change

For more than a decade, there was just one mantra on every Indian banker's lips — CASA. It delivered loads of profits for private sector banks, and it even became part of the lexicon at state-run banks over the years. It has become so ubiquitous that banners in branches in rural India scream 'Deposit Mobilisation Programme — CASA' when the client who walks in may hardly know what CASA stands for. But suddenly the power of that mantra seems to be waning.............

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Priority Sector Lending and the Power of Small

.......Over the past two years, banks and RBI have been engaged in some difficult discussions around assets disqualified by RBI on various grounds. The new guidelines address these ambiguities and also broaden the framework through inclusion of PACS/FSS/LAMPS as distribution channels, expanding eligible 'indirect loans' and service enterprise definitions. There is also greater clarity in terms of the regulatory focus on direct agricultural lending and use of NBFCs or MFIs as originators......

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Apparel exporters write to P Chidambaram on loan restructuring

Apex apparel exporters body has written to Finance Minister P Chidambaram and asked him to persuade the RBI to issue necessary directions to banks regarding loan restructuring..........

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Top PSBs keen on opening branches in Pakistan

........A clutch of top public sector banks are looking to open branches in Pakistan. These include Punjab National Bank (PNB), Bank of India (BoI) and State Bank of India. For banks such as PNB and BoI, it would be a sort of homecoming as their roots were in Pakistan, prior to partition. Leading in the race to once again establish presence in Pakistan is PNB, which started its journey in Lahore in 1894.........

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