PANAJI: NRIs and PIOs cannot purchase agricultural land, plantation property or farmhouses in India, said A Subramanya, Manager, Foreign Exchange department, Reserve Bank of India, Panaji. At a seminar organized in collaboration with the Institute of Company Secretaries of India and Gon 'Acquisition of Immovable Property by Non-Resident Indians', Subramanya said there are no restrictions on the number of residential or commercial properties that NRIs and PIOs can be purchased. ..........
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.
Wednesday, August 15, 2012
Financial inclusion: Miles to go
.....As K.C.Chakrabarty, the Deputy Governor of RBI and in-charge of financial inclusion, noted in a recent speech, “Even where bank accounts are claimed to have been opened, verification has shown these accounts are dormant. Few people conduct any banking transactions and even fewer receive any credit.” Even now, not more than 40% of the population have access to bank accounts. Despite increase in banks’ presence in rural areas, more than half of the 6,00,000-odd villages across the country do not have access to banking.........
RBI asks banks to frame clear policy on deposit rates
...."It has been observed that there are wide variations in the interest rates offered by banks on single term deposits of Rs 15 lakh and above and those offered on other deposits (i.e. deposits less than Rs 15 lakh) of corresponding maturities. Further, banks are offering significantly different rates on deposits with very little difference in maturities," RBI said the notification on Tuesday.........
The Leaderboard: Raghuram Rajan
.....Based on his previous writings, we can expect Mr. Rajan to push for increased foreign direct investment, anti-corruption legislation, and a possible easing of regulatory moves that have thus far limited foreign investment. The Reserve Bank of India (RBI) should expect continued scrutiny from Mr. Rajan, since he believes that the RBI is complicit in high government borrowing- a claim the RBI has already denied.
Chidambaram to meet bank chiefs on Aug 18
Finance minister P. Chidambaram will conduct a quarterly review of public sector banks’ (PSBs) performance on August 18. This will be Chidambaram’s first meeting with PSB honchos after he took charge of the Finance Ministry on July 31. The meeting comes in the backdrop of the economy facing challenges on the growth, inflation, and policy reform fronts........
Karnataka Bank Opens 400th ATM at Bejai Church Complex
....."The Bank plans to install another 50 ATMs by the end of this year. As per a survey conducted by the Reserve Bank of India (RBI), among the 52 banks that provide ATM facilities, Karnataka Bank is in the fourth position, which is a praiseworthy achievement,".......
Two youth held with fake currency
.......The upgraded quality of CFIC (printed in the latest series of currencies of Reserve Bank of India) made it difficult to differentiate it with genuine currency notes...........
Aggressive approach & a clear business model is needed for cashless e-payments
.....The recent steps by RBI to cap the merchant fees for debit cards have the ability to provide the much-needed fillip to the payment business. The hope is that e-payments will grow by 100% year-on-year and that payments can become all pervasive. However, good intent needs to be backed by speed and a clear vision of the end goal. Today, the Indian payment industry is lacking due to low investments and unclear business models for private and foreign operators........
Read - ET
Read - ET
RBI panel for increasing investment limit for FIIs in government securities
....The 13-member group, headed by RBI Executive Director R Gandhi, has made various recommendations on G-Sec market, retail participation and interest rate derivatives market.......
Tight policy may have deepened slowdown, says Subbarao
....“Firstly, the tight RBI policy stance. Secondly, the issue of infrastructural bottlenecks. Third, the lagging economic and governance reforms and governance issues affecting the investment sentiments,”.......
RBI caps bank investment in group business
Banks will find it tough to put money in group businesses such as insurance and other financial service companies with the Reserve Bank of India prescribing a ceiling for investment by lenders in group businesses...........
Centralised mart for G-Secs players soon
....Further, according to RBI Deputy General Manager R R Sinha, the panel has suggested that insurance companies, provident funds and other financially sound entities be permitted to participate in the IRS market. The working group, comprising market experts, RBI officials and other stakeholders, was according to Sinha, constituted under the chairmanship of RBI Executive Director R Gandhi to explore ways to enhance liquidity in the G-Secs and interest rate derivatives markets..........
Banks, post offices may be roped in to sell G-Secs
Bank branches and post offices could be used as distribution channels to get retail investors to invest in government securities, according to a Reserve Bank of India panel......
Five reasons why Indian rupee would continue to fall
 |
| The Indian rupee has shed close to 25 per cent value over the past one year. It is likely to fall further. Here are reasons why the Indian currency could be under pressure. |
The rupee and the J curve
....Unlike China, however, slowing growth has not resulted in slowing inflation. Wholesale inflation remains stubbornly above seven per cent and retail inflation is in double digits. The economy seems stuck in a low-growth, high-inflation equilibrium – reminiscent of the late 1990s – such that the Reserve Bank of India’s hands are tied even as growth continues to flounder.......
When will RBI lower interest rates?
.....The finance minister has already spoken of ‘calibrated risk’, i.e. lower interest rates, amongst other things, to revive growth. But the RBI is on record to say “…as the multiple constraints to growth are addressed” - a euphemism for government action – it will “suitably adjust its monetary policy stance”. Assuming the government does ‘something’ over the next two weeks, will monetary action follow suit?.....
Lower inflation: Time for another Chidu-Subbu tete-a-tete
.....Given the multiplicity of factors, it will indeed be a tightrope walk for policymakers. How much RBI and the finance ministry understand each other’s concerns will determine the way monetary policy will move in the near term. An ideal time for another heart-to-heart chat between Chidambaram and Subbarao, perhaps. Just to ensure both sides are on the same page, unlike a few months earlier.
One-third of slowdown due to interest rate hikes, says Gokarn
Reserve Bank of India (RBI) Deputy Governor Subir Gokarn on Tuesday said the central bank had come to a rough conclusion that about a third of the slowdown was due to interest rate hikes and the rest due to a combination of other domestic and global factors.......
Read - Indian Express
Read - Indian Express
Rate cut hopes rise as inflation eases
.....Finance minister P Chidambaram's comments that interest rates are high and the government will take steps to ease the burden have also added to expectations. But RBI is still worried about the inflationary pressures in Asia's third-largest economy. Governor D Subbarao said on Monday that inflation remained "above our tolerance level". But some experts say slowing growth, sliding exports and industrial output and overall gloomy outlook may prompt the central bank to ease rates. .......
Interest rates that are out of sync with fundamentals are unsustainable
.... If the RBI is going to withdraw liquidity through the CRR on the one hand and then pump in liquidity by paying interest on these impounded balances on the other, the CRR, as a tool of monetary policy, loses all meaning. It would be a case of taking away with one hand and giving with the other — a completely pointless exercise. It is not sustainable because unless interest rates in an economy reflect underlying macroeconomic fundamentals, it will not be possible to sustain interest rates at that level for long without it resulting in serious macroeconomic imbalances..........
Statistical chimera
Inflation has yielded ground neither to the RBI’s monetary policy aggression nor to the pious entreaties of the Government. The public has reason to worry.
Read - HBL
Freeze accounts of fraud accused: Cops
...........The arrests in the case followed a release from the RBI Department of Non-Banking Supervision, Chennai Regional Office against Aphro Trust and its associates functioning from Teachers Colony in Kolathur. The release said the Aphro Trust and its associates were not regulated by the RBI as claimed and warned the public..........
Nabard to refinance loans of farmers in scarcity-affected areas
........Nabard is considering a special line of refinance at 7.5 per cent to enable banks to finance farmers for cultivation/purchase of fodder. The scheme would be finalised in consultation with the state government," said Prakash Bakshi, chairman, Nabard, who was on a visit to scarcity-affected villages in Rajkot district on Tuesday......
Moneyspinner Subrata Roy spins new yarn: direct retail
...Roy has been thwarted both by the RBI and Sebi. A few years ago, the RBI asked Sahara India Financial Corporation to return all deposits by 30 June 2015. The company proclaimed last year that it was winding it up earlier..............
Union govt gives clean chit to HSBC’s India employees
....The bank’s India staff was cleared after a preliminary report from the Financial Investigation Unit and the Reserve Bank of India (RBI), sources said. However, both the agencies have been asked to continue with their investigation and maintain surveillance of the bank’s activities. Sources added that the two have sought more details on HSBC from US authorities......
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