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.
Tuesday, August 14, 2012
Who killed the India growth story: Delhi, not Mint St
M K Singh takes over as RBI Regional Director Chandigarh
Mr M K Singh took over as Regional Director, Reserve Bank of India, Chandigarh. He will look after functioning of Himachal Pradesh, Punjab, Haryana and UT Chandigarh. Before joining here, Mr Singh was the Regional Director of RBI in Patna and was looking after the states of Bihar and Jharkhand. Mr Jasbir Singh, who was Regional Director Chandigarh, has been transferred to RBI, Central Office, Mumbai as Executive Director.
RBI tells banks to include compensation in cheque policy
.....The RBI has come up with the abovementioned directives as it has noticed that in the CCPs and compensation policies of various banks there is no mention about the compensation in respect of the delay in realisation of local cheques. Instances of delayed credit to customers' accounts without any compensation for the delayed period beyond the time line indicated in the CCPs, in respect of local cheques, have been brought to the RBI’s notice......
Core banking: RBI’s half-baked directions to banks
RBI has just come out with guidelines for issuance of “Payable at par/Multi-city” cheques to all eligible customers in a standard format. But the RBI should have thought of many other possibilities of offering a wide variety of services using CBS. Here is a list of benefits it could have allowed.........
......But unfortunately, many public sector banks in our country are either slow in providing innovative services to the customers or do not bother to find out the customer’s needs. They only act on getting a direction from the RBI, which alone with a little foresight can make the life of bank customers a little more comfortable and convenient in these trying times.
Click to read more.............Polymer rupee notes: Slow or no progress?
.....In fact, in order to counter this menace, a couple of months ago, it was reported that in a pilot scheme to introduce polymer rupee notes, an unannounced entry into the market was made in selected cities like Bhubaneswar, Jaipur, Kochi, Mysore and Sheila, to test the market or public reaction. So far, however, the Reserve Bank of India (RBI) has not yet made its findings public on this score. Nor do we know the quantum of such currency or the unit or face value. But the crucial point is what is delaying the actual introduction of polymer rupee notes at least in the higher denomination of Rs 500 or Rs 1,000 as a start, as the majority of the counterfeit notes detected were in Rs 500?......
Improvident
...........The only saving grace is that, as compared to RBI which has said unclaimed fixed deposits in banks (R425 crore) can be appropriated by a depositor education fund, the labour ministry has said the funds in the inoperative accounts can’t be transferred to anyone else. What good that does to subscribers is not clear though.
Critical thinking on development issues
.....MIDS, as it is popularly known, was founded in 1971. It is located at Gandhinagar, Adyar, Chennai – 600 020; Website: www.mids.ac.in. The institute was reconstituted as a national institute in 1977 under the joint sponsorship of the Union government and the Tamil Nadu government. The Reserve Bank of India established a Chair in applied research in regional economics in the institute in 1985. The central bank had been granting fellowships to Ph.D. scholars. Later on, the RBI made it an endowment......
Inflation too high for comfort - RBI
...."The task for the RBI is to restrain demand. What is the task for the government? The task for the government is to generate supply so that we produce more and that will bring down inflationary pressures," Subbarao said in a speech at a event in south India.......
Economic reforms need an urgency of purpose, RBI governor says
Implementing economic reforms with sincerity and urgency of purpose is essential to return to the high growth trajectory, said Reserve Bank of India Governor D Subba Rao ............
6% growth won’t get India anywhere: Subbarao
....“We must look to grow 10 per cent for another 15 years in order to raise our status from a low-income country to a medium-income one,”.........
Declining investments a cause for concern: RBI
....Reserve Bank of India (RBI) governor D. Subbarao reiterated his concern about inflation on Monday, saying it remained above the central bank’s comfort level, and called monetary policy the first line of defence even when inflation was coming from supply shocks.......
Banks begin reviving special schemes
.......RBI’s latest data shows bank advances, as of July 27, had grown 17.2 per cent over a year, while deposit growth lagged at 13.8 per cent. The central bank has projected deposit growth of 16 per cent in the annual monetary and credit policy for 2012-13. "Concerns that deposit growth has significantly been slower than credit growth for a prolonged period of time is something we have been watching closely and that was one of the issues we discussed with bankers on Monday," RBI Deputy Governor Subir Gokarn had told Business Standard in an interview after the first quarter policy announcement last month......
Loan restructuring skewed towards corporate borrowers: RBI
RBI's outspoken Deputy Governor KC Chakrabarty makes a serious accusation. In a speech supported chapter and worse with statistics he says, public sector banks restructure much more than private banks
Read and watch video...........
Can't Abandon Inflation Agenda, Says India's Central Banker
.....“Clearly the argument is that if you cut rates, you will get some rebound, some stimulus for investment. But on the other side, we're dealing with a relatively uncomfortable inflationary situation. The inflation objective cannot be abandoned,”..........
Loan recast: PSBs bear the brunt
........The Reserve Bank of India (RBI) argues if economic downturn is the reason for debt recast, that should reflect across all bank groups and not just PSBs..........
Read - BS
Read - BS
A question of autonomy
.....it would be desirable if the government sticks to policy making and allows banks the freedom to take decisions in an increasingly competitive environment. Reserve Bank Governor D. Subbarao and his predecessor, Y.V. Reddy, have come out on the side of the banks. Micro-management is bad for banks and, in the long run, hurts the interests of the major shareholder, the government too.......
Not RBI alone
In his column “The RBI’s free pass” (Policy Rules, August 11), Mihir S Sharma is too strident in singling out the Reserve Bank of India (RBI) for the drop in net profit margins of the sampled companies and for the decline in growth. Margins depend on input costs also, more so in the manufacturing sector in which non-availability or high cost of raw materials (like minerals) and power and transportation take a heavy toll........
Read - BS
Read - BS
Recapitalizing India’s banks
....Investor confidence will, however, require a substantial dilution of government ownership and not merely what is required to raise a sufficient amount of money. A lower government stake will also restrict ambitious civil servants in the finance ministry from interfering into the day-to-day business of the banks and its board. While this may be the right approach, under the conditions that prevail in the government, it may be asking for too much. Any loss of ownership and control is likely to face opposition both inside and outside the government. But if government-owned banks are to meet this regulatory challenge, sooner or later, the government will need to overcome this resistance to change or else banks, taxpayers and the economy at large will continue to be locked in a suboptimal situation........
Court restrains 7 from continuing as Tamilnad Mercantile Bank directors
...........Following the court order, the bank is now left with five directors, including the new MD & CEO KB Nagendra Murthy. There are two RBI nominees KN Rajan and K V Rajan. The other two directors are P Mahendravel (who represents the Nadar Mahajana Sangam which had promoted TMB) and S Sundar, formerly with the SBI.
Dhanlaxmi Bank in trouble? What to do if your bank goes belly up
....As a depositor you don’t really need to be worried about your bank going belly up, well almost. Reason being, the deposits which you make with your bank come with some sort of a safety net. This safety net, in banking parlance is an insurance provided on your deposits by Deposit Insurance and Credit Guarantee Corporation (DICGC). This corporation comes under the wings of the Reserve Bank of India (RBI) and as its name suggest, offers an insurance cover on the deposits you make and also guarantee credit. Says, a senior officer, who did not want to be named, from the DICGC, “All commercial banks are covered by DICGC. ” All foreign banks which are currently functioning in India, as well as co-operative banks and rural regional banks are also covered........
SBI might absorb one associate bank this year
State Bank of India (SBI) is likely to merge one of its five associate banks in the current financial year. The board of the country’s largest lender has given its approval for the merger, and SBI will now start the process of identifying an associate for the merger............
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