.....The Reserve Bank of India (RBI) deserves kudos for setting out the rationale of its monetary policy of July 31 with painstaking effort. The global situation is increasingly worrisome. Despite all the international confabulations, the world economy has not come out of the quagmire. Never before have central banks, the world over, resorted to such unbridled money creation. The stage is now set for the global storm of 2013......
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.
Friday, August 10, 2012
12th five-year plan draft delayed to incorporate a few new chapters
......Agreeing with former RBI governor YV Reddy’s assertion, the official said India’s growth model is such that a double-digit growth is not sustainable in medium to logn-term. The aim should be grow at around 8 per cent, which was sustainable given the nature of the economy........
RBI ‘profit’ an invaluable fiscal prop
.....However, accounting policies of the RBI ensure that, out of the gross income, the bank makes a provision for contingency reserve and asset development reserve to take care of unforeseen developments and ensure funds for internal capital expenditure and investment in subsidiaries and associate institutions..........
RBI to pay Rs 160.1 bn of dividend to government
The Reserve Bank of India on Thursday said its board approved transfer of 160.1 billion rupees ($2.9 billion) dividend or surplus profit to the government for the accounting year ended June 30, lower than market estimates, further easing cash with banks. Market participants had expected a dividend payout of about 250-300 billion rupees. The RBI follows a July-to-June accounting year. In the previous year, it paid a dividend of 150.09 billion rupees........
Insurance cover also applicable to deposits in co-op banks
.......According to the existing norms of DICGC, a wholly-owned subsidiary of the RBI, a maximum of Rs 1 lakh is paid to a depositor in case a bank goes insolvent. "In terms of the provisions of the Deposit Insurance and Credit Guarantee Corporation Act, the deposit insurance coverage is also applicable to the eligible deposits held in all eligible co-operative banks," Chidambaram said in a written reply. He said the government has suggested Deposit Insurance and Credit Guarantee Corporation (DICGC) and the Reserve Bank of India to adopt to risk-based deposit insurance premium structure. This will be prior to the DICGC proposal for increasing insurance coverage limit from Rs 1 lakh to to Rs 2 lakh being approved ........
A call for SEBI and RBI functionaries to declare assets publicly
The former Secretary calls for senior functionaries at SEBI and RBI to make public disclosure of their salaries and an annual declaration of their assets, in accordance with the spirit of Article 19 of the constitution which confers on the citizen the right to know about various public authorities. EAS Sarma, a highly respected former Secretary, Government of India (Expenditure and Power) has written the Finance Ministry calling for greater transparency and public accountability in the finance sector to enhance the credibility of the statutory institutions that have a bearing on the day-to-day lives of the people..........
Solution not far away!
....Few people are aware of the fact that the Reserve Bank of India (RBI) has directed banks to reimburse customers for wrongly debiting amounts from their accounts in what they call ‘failed ATM transactions’.
After a customer files a complaint, the bank has seven days to rectify the problem. Beyond this, it is liable to pay Rs 100 per day till the money is credited back to the account. The only catch is that the customers are entitled to this only if they lodge the complaint within 30 days of the transaction.......
After a customer files a complaint, the bank has seven days to rectify the problem. Beyond this, it is liable to pay Rs 100 per day till the money is credited back to the account. The only catch is that the customers are entitled to this only if they lodge the complaint within 30 days of the transaction.......
RBI asks banks to make financial inclusion more meaningful
The Reserve Bank Thursday asked banks to make financial inclusion more meaningful and ensure qualitative coverage through proper functioning of banking correspondents. "Banks should ensure qualitative coverage of financial inclusion through proper functioning of banking correspondents," RBI Governor D Subbarao said in a specially convened meeting of State Level Banking Committee (SLBC) after its central board meeting Thursday.............
FM to meet PSB chiefs next week
.....In a statement earlier this week, Chidambaram had hinted at some monetary easing by RBI. He said prevailing interest rates were high and calibrated risks could be taken to stimulate investment and ease consumer burden. In the meeting, the minister would discuss issues pertaining to advances and deposits of banks, return on assets, profit per employee, and percentage of electronic transactions. The financial inclusion plans, performance of the Swavalamban scheme under the New Pension System, lending to minority communities and issues related to regional rural banks would also be discussed.
Rs 500 note, a favourite with counterfeiters
The Rs 500 note appears to be most preferred choice for counterfeiting. This is evident from the figures tabled in the Lok Sabha by the Finance Ministry. The Ministry informed the House that the cost of printing currency notes in the two Government presses varied. According to information provided by the Reserve Bank of India, 4.35 lakh fake currency notes were detected during 2010-11. Of this, there were 2.46 lakh pieces of notes with Rs 500 denomination, valued at Rs 12.30 crore...........
RBI to issue Rs 10, Rs 50 notes with rupee symbol
...."The Reserve Bank of India will shortly issue Rs 10 and Rs 50 denomination bank notes incorporating rupee symbol, with inset letter 'L' in the Mahatma Gandhi Series-2005 bearing the signature of D Subbarao, Governor, RBI, and the year of printing 2012 printed on the reverse of the bank notes,".....
RBI to issue new 5 rupee coin soon
.....The Reserve Bank of India (RBI) will shortly issue five-rupee coins in their new shape and size. The obverse of the coin shall bear the Lion Capital of Ashoka Pillar with the legend ‘Satyamev Jayate’ inscribed below, a RBI release said..........
487 cases of ATM frauds reported in 2011: Government
Banks have reported 487 cases of ATM frauds in 2011, involving over Rs 7 crore -- triple the amount reported four years ago, Parliament was informed today. As many as 153 incidents of ATM frauds were noticed in the calendar year 2008, involving an amount of Rs 2.46 crore, finance minister P Chidambaram told the Rajya Sabha in a written reply. He said the Reserve Bank does not maintain a separate data on the nature of ATM frauds..........
UBL poised for entry in India
...........An application was submitted to the Reserve Bank of India in Feb 2007. With the recent CBMs between the two countries and India allowing investments from across the border it appears UBL is poised for entry into the Indian market place, once the Reserve Bank of India's clearance is received...........
Govt has 'badly lost its way', hurting economy: Moody's
...."There has been little policy response from either the Reserve Bank of India or the government and with the global uncertainty dragging on, we see nothing on the horizon to lift the economy from its funk,".......
Fiscal prudence
The editorial ‘Rewarding Profligacy’ (Business Line, August 7), brings out well the respective roles of the Reserve Bank and the Government. In 2004, the Centre breached the limit for revenue deficit for the first half of the financial year, prescribed by the Fiscal Responsibility and Budget Management Act.
In subsequent years, its breach became the norm, and Finance Ministers of the day expected the RBI Governor to contain inflation without worrying about fiscal expenditure. Now, it’s time for the present Finance Minister to seriously consider measures to reduce the expenditure of the government and support the RBI in achieving the projected growth rate.
- K.S. Raghavan Mumbai (HBL)
RBI signs MoU with Central Bank of Russian Federation
......"The Reserve Bank of India and the Central Bank of the Russian Federation (CBRF/The Bank of Russia), on August 3, 2012 concluded a Memorandum of Understanding (MoU) to promote greater co-operation and sharing of supervisory information between the two supervisors," ........
Central Board meets today in Mumbai
The Central Board of Directors of the Reserve Bank of India met today at Mumbai. Dr. D. Subbarao, Governor, Reserve Bank of India chaired the meeting. Shri Anil Kakodkar, Shri Kiran Karnik, Shri Y. H. Malegam, Shri Azim Premji, Shri Dipankar Gupta, Shri Najeeb Jung, Shri G. M. Rao, Ms. Ela Bhatt and Dr. Indira Rajaraman were present at the meeting. Deputy Governors of the Reserve Bank, Dr. K.C. Chakrabarty, Dr. Subir Gokarn, Shri Anand Sinha and Shri H R Khan were also present. The meeting was also attended by Shri D.K. Mittal, Secretary, Financial Services and Dr. Arvind Mayaram, Secretary, Economic Affairs Government nominee directors on the Central Board. Dr. Mayaram has replaced Shri R. Gopalan on the Central Board post his superannuation. The meeting reviewed key economic, monetary and financial developments in the country...........
Action plan to rein in high fiscal deficit soon: Economic Affairs Secretary Arvind Mayaram
.....Admitting that the deepening crisis in the global economy is posing challenges to the domestic economy, Mayaram said, "The global economic headwinds and fiscal deficit are threats to our growth..." Mayaram, who is also the government nominee on the board of the Reserve Bank, was talking to reporters after a meeting of the board of the central bank here........
MFI body wants more relaxation
.....“Though RBI has given pricing flexibility to the MFIs, it has been done in conjunction with a tightening of the margin caps. For MFIs with loan portfolios greater than Rs 100 crore, the margin cap has been reduced to 10 per cent. This reduction will put pressures on their profitability and sustainability,” ......
Banks fail to meet farm lending target in Maharashtra
Mumbai, Aug 9: Dragged by the poor progress of the monsoons, banks have so far met only 57 per cent of their Rs 24,629-crore agricultural lending target in Maharashtra, a top banker said here today. Roughly about 57 per cent of the targets have been met. I believe that it should have been much more,” Bank of India Chairman and Managing Director Alok Misra, who also heads Indian Banks Association, told reporters here. RBI Governor D Subbarao had convened the state-level banking committee meeting on Thursday which was attended by the State Government officials and the bank chiefs............
How ‘Houdini’ Chidambaram can fix the economy
.....To make Subbarao’s job that bit easier, or perhaps to provide him an incentive to loosen up, Chidambaram has made some feel-good noises to suggest that he will keep up his end of the bargain by reining in the twin deficits and simultaneously provide the triggers for investment-led growth. But how can Chidambaram go about achieving this in a drought year, when spending will have to be stepped up, and with less than two years to go for the general election, in the run-up to which too spending on programmes calculated to keep rural voters in good humour will be stepped up?........
IIP: Chidu’s task of reviving growth just got tougher
.......Unlike other central banks which have been cutting rates to spur growth, the Reserve Bank of India (RBI) has been holding back on reducing borrowing costs, saying it wants inflation to ease first.......
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Have a safe and healthy digital life: Use Internet discreetly
.......here is another feature that banks have launched in line with the guidelines of the Reserve Bank of India. It is called ‘One Time Password (OTP)’. The OTP is a random code that is sent to registered mobile number (and e-mail ID) of the customer for the customer to enter while executing a financial transaction. OTP expires after one use and is usually valid for a few minutes. As it is sent to the mobile number or the e-mail ID of the consumer, it has become very important to safe-keep the mobile and the access to e-mail ID...............
Mobile-banking: A win-win combo
....The opportunity for mobile banking lies in its potential to supplant cash transactions, which dominate our daily lives. Recent amendments to RBI guidelines have allowed nonbanks to issue mobile-based semi-closed instruments, while also extending their usage to bill payments and ticketing. The industry definitely needs further liberalisation to increase the penetration of these instruments.......
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