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, August 9, 2012
Coming soon, flexi-timings for RBI officers
Coins worth Rs 5 lakh distributed
Kohima, Aug. 8: State Bank of India distributed coins worth Rs 5 lakh to its customers here today during a Coin Mela. SBI carried out the coin distribution fair on the instruction of Reserve Bank of India because of shortage of coins in the market.........
Will RBI stand up to Chidambaram?
Are we back to another episode of that dreary old play: FM vs RBI Governor? The Finance Minister is a man in a hurry with a job to do — restore growth. D. Subbarao has a year left in office. Will this be his finest hour? Or not?
.....It had to happen. The political imperative, not to mention the exalted ego of finance ministers — honourable exceptions excepted — lead them not only to over-rule economic prudence but also straight into a joust with their tedious minder, that long suffering old maiden aunt — the Reserve Bank of India (RBI). Thus, the seat has not even warmed up and P. Chidambaram has announced his intent: He will reduce interest rates. And if you think he is telling the RBI “be quiet, Aunty, I am here now and all is well”, well, that’s your problem, isn't it?.......
Read.........
Financial Inclusion Conference 2012 on “The first mile walk into the financial system” organized by Sa-Dhan on 7th August ’12
.........Dr K.C.Chakraborty, Deputy Governor, RBI, in his inaugural address appreciated the theme of this year’s conference – “The First Mile Walk in to the Financial System”, which focuses on customers rather than the suppliers. “The extent of Financial Exclusion in India in mammoth”, he said. He further said that financial inclusion will require well functioning and efficient financial markets..........
Bank staff threaten two-day strike
The All India Bank Employees’ Association (AIBEA), which represents the employees of the public-sector banks, has threatened to go on a two-day strike from August 22, against the government’s proposed Banking Bill, closure of rural branches and other set of banking sector reforms. In a circular to the members, C H Venkatachalam, general secretary, AIBEA, said “the attacks are increasing and the IBA/government are indifferent to our demands. Hence UFBU has given the call to revive the agitation and struggle programmes. Further, the government is also proposing to amend the banking laws during the current session of Parliament. UFBU has therefore, decided that they should be ready for instant protest strike in such an eventuality”..........
Causes and cures for India’s current account deficit
....Excess demand, we have seen, is not driving the CAD, since growth has fallen below potential and the latter itself is falling as investment slows. Even so, the RBI cannot afford cuts in its repo rates now. Credit growth has fallen, but deposit growth has fallen even more. If banks cannot, then, reduce deposit rates – post-tax real returns to them are still negative – it limits the transmission of lower policy rates......
Monitoring banks
Recent reports about Standard Chartered Bank’s and HSBC’s involvement in illegal deals are a signal to the RBI for evolving more stringent regulations for banks. Frauds in banks are not coming down.
- Usha Madodi, Mangalore (HBL)
Bank chief selection norms may change
........The norms for selecting public sector banks’ chiefs are likely to be tweaked again. The finance ministry has proposed to remove from the guidelines a clause on the lateral movement of small and mid-sized banks’ heads to large banks. If the proposal goes through, the executive director of a large bank will be preferred over the chairman and managing director of a small bank to fill a top vacancy in an ‘A’ category bank. The ministry has sought the Reserve Bank of India’s views on the issue. The proposals were sent to the central bank after securing the approval of the then finance minister, Pranab Mukherjee. Now that P Chidambaram has become the finance minister, the department of financial services would have to seek his approval........
Economic malaise in India and corporate debt restructuring
..........To prevent abuse by delinquent borrowers, the RBI-appointed Mahapatra Committee in its fairly comprehensive report, quoting best practices across the globe, has rightly stipulated that the CDR request be approved by at least 75% of total exposure and consent of 60% of the total creditors. As per the .......
Financial literacy
A plan proposed by the Reserve Bank of India and the Securities and Exchange Board of India to hold a nation-wide survey on financial inclusion and literacy and launch a programme of education is very welcome. A concept paper, National Strategy for Financial Education, has been thrown open for public debate and the ideas it generates may be incorporated in the plan. India is poor both in terms of financial inclusion and education............
National Housing Bank scraps pre-payment charge on dual rate loans
....Housing finance companies like HDFC and LIC Housing Finance will be affected by the move. The Reserve Bank of India, the banking regulator, has already removed pre-payment charges on dual rate schemes. "We will respect the NHB circular and will implement it," said an HDFC spokesperson. So, in case of a dual rate loan, housing finance companies will charge a penalty only if the loan is refinanced from another financial institution......
Read - ET
Read - ET
Why Sid thinks you must use chip-based cards
.....While the Reserve Bank of India (RBI) has taken the initiative to make two-factor authentication mandatory for card-less transactions (e.g online), the same requirement for card transactions is at least a year away........
ICICI Bank gains low-cost deposits but no fee income
........“There are people who are coming (to buy the stake). They are not welcome...the answer is no.” Three months later, in August 2010, India’s largest private lender ICICI Bank Ltd acquired BoR in a forced takeover overseen by the Reserve Bank of India (RBI).................
Textile firms' loans of Rs.35,000 crore to be restructured
.....The Reserve Bank of India (RBI) has opined that there is no need for any special regulatory dispensation and "banks can provide two-year moratorium on term loans and convert working capital into working capital terms loans with repayment period of 3-5 years as part of restructuring, in terms of existing RBI guidelines,"........
Will Chidambaram walk the talk on faster disinvestment?
.......However, while Chidambaram’s finance ministry seems to be beginning to get its act together, major challenges loom on the economic front. A critical meeting between the finance minister and Reserve Bank of India (RBI) Governor Duvvuri Subbarao has also been keenly discussed in financial circles since it is now well known that Subbarao has, by and large, made further easing of interest rates conditional to fiscal consolidation. Both the ministry and RBI will need to address the problem of slowing growth and the continuing threat of inflation in a fluid global economic situation. And to that extent the meeting assumes great significance, particularly since RBI did not reduce rates even at its last policy review on 31 July, choosing instead to reduce the statutory liquidity ratio (SLR) by 100 basis points to 23 percent to give banks some room to lend.....
Five economic Bills that need attention
..........The Public Debt Management Agency of India Bill, 2012: The Bill is ready for a cabinet nod. It is to establish the Public Debt Management Agency of India. This was announced in the Budget speech in March. The idea is to separate the Reserve Bank of India’s role to fix interest rates and also act as a debt manager...........
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