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Friday, August 17, 2012
Give growth a chance - K Kanagasabapathy
How to keep your debit and credit card secure
....But just how do you stop such frauds? Well, there are various layers to card security and many ways that banks use to protect you from fraud. The more effective ones are in place for online transactions, such as the 3D Secure PINs and passcodes, which were recently mandated by the RBI.......
RBI faces a "No, minister" moment
....when it comes to asserting the independence of the Mumbai-based Reserve Bank of India from political masters in New Delhi, D. Subbarao, governor of the central bank, has large shoes to fill. His predecessor Y.V. Reddy had been an RBI Deputy Governor for six years and was at the International Monetary Fund in Washington before he returned to run the central bank. Distance from New Delhi allowed Reddy to chalk out a course that was often seen as adversarial by the finance ministry. The relationship between Reddy and Chidambaram, who was also the finance minister between 2004 and 2008, was sometimes stormy. By contrast, the current governor was the top finance ministry bureaucrat when Chidambaram picked him to run the central bank. Saying no to a benefactor is hard. But Subbarao would do well to convince Chidambaram that untimely monetary easing could threaten stability. His case is strong......
Hold your nose
India’s public-sector banks are sitting on something unpleasant
....The Reserve Bank of India (RBI) is on the warpath. K.C. Chakrabarty, a Deputy Governor, says: “It’s a concern. The banking system will not collapse because of this tomorrow. The system hasn’t become unstable. But if this continues for one or two years, it will become unstable.” The RBI plans to tighten the rules on restructured loans again, having loosened them in 2008 to protect India from the global crunch and given special treatment to infrastructure loans, deemed a national priority, in 2010.......
Law graduation falls for scam twice, loses 7 lakh
MUMBAI: A woman has been arrested for cheating a Khar-based law student of Rs 7 lakh by posing as a Customs official and Reserve Bank of India manager. The accused, Donshung Ruvandar (27), has been remanded in police custody and her two Nigerian friends, who were also a part of the scam, are wanted in the case.......
RBI directive on‘survivor’ clause
......The RBI observed that many banks have neither incorporated the “either or survivor” or “former or survivor” clause in the account opening form nor have they taken adequate measures to make the customers aware of the facility of such mandate. This has put the “surviving” deposit account holders to unnecessary inconvenience.
Maharashtra moves closer to direct cash subsidy model
........The state has plans to use UID numbers to transfer cash directly into the accounts of beneficiaries of state and national schemes. Chavan said that the state had plans to adopt the model universally for all welfare schemes. To facilitate this, the Reserve Bank of India has asked banks to use UID numbers extensively for opening of bank accounts.
India says ban high-value notes: FinMin
.....One common demand from the public is that high denomination currency notes, particularly Rs 1,000 and Rs 500, should be demonetised", says a committee headed by the CBDT chairman in its report to the Finance Ministry.......
RBI stance has succeeded ‘to some extent’, says Subbarao
Thiruvananthapuram, Aug 16: Reserve Bank Governor D. Subbarao is of the view that the recent policy monetary initiatives have succeeded “to some extent’’. “Has the RBI succeeded in its efforts? To some extent, I would say,” Subbarao remarked during the course of a lecture delivered here...........
Declining growth a concern
Clearly, the recent developments suggest that RBI would not like to risk cutting the key policy rates for the sake of moderating inflation. A cut in the SLR from 24% to 23% is however an intelligent move. The continued decline in the growth rate must concern one and all. To what extent can the country afford to sacrifice the growth rate for containing inflation is a moot question.
- Srinivasan Umashankar, Nagpur (FE)
'Interest rate decision will depend on inflation situation'
.... "Interest rates to fall when inflation drops...," RBI Deputy Governor K C Chakrabarty said after meeting Economic Affairs Secretary Arvind Mayaram ......
RBI puts half of forex reserves in govt bonds
.....the central bank’s investment of forex reserves is driven by the objective of safety, liquidity and the goal of maximising returns is embedded in these objectives, RBI said.
Twelve banks fail to meet CD ratio norms
Twelve commercial banks operating in Odisha, including top private sector lender ICICI Bank have failed to meet the minimum CD (credit deposit) ratio of 60 prescribed by the Reserve Bank of India (RBI)........
Improvement in govt finances can avert rating downgrade: RBI
........Fiscal consolidation, said RBI Deputy Governor Subir Gokarn, will also help in moderating inflation and lowering interest rates. "The best way to prevent it (ratings downgrade) would be to put in place a sustainable process of fiscal consolidation because that is the most important parameter, indicator on which that risk or threat has manifested. If we can do that reduction ... that risk is averted," he told reporters.......
Rupee slide
This refers to “Rupee depreciation does not help us” (Business Line, August 15). Though dollar earnings of exporters rise when the rupee depreciates, importers have to pay more for capital goods and machinery. The RBI’s directive to exporters to convert half their foreign-exchange earnings into rupees to make dollars available in the market had disappointed exporters. Instead, unnecessary imports should be curbed and more foreign direct investment attracted to increase the supply of dollars. A Tobin tax may also help bring dollar revenue and control the flow of foreign institutional investment.
- N.R. Nagarajan (HBL)
Bondholders withdraw case against Tayals
......RBI imposed a Rs.25 lakh penalty on the lender in February 2010, bringing the troubles facing it to light. The central bank cited irregularities in the running of the bank, including the acquisition of immovable properties, deletion of records in the bank’s information systems and the conduct of some accounts, among others........
Drought year
.......In terms of monetary policy implication, the Reserve Bank of India (RBI) has said that focusing only on core inflation—inflation minus food and fuel— may not be appropriate in the Indian context. Put differently, higher food prices, resulting in higher general price level, will not allow RBI to cut rates anytime soon. As a result, monetary policy may not come to the rescue, as expected, at a time when growth is slowing down.
MFI client base drops by 5 million in a year: Sa-Dhan
......MFIs have brought down their operating cost this year but their profitability is still under stress. The recent RBI announcement of relaxing 26 per cent interest cap is a welcome step and the benefit of this relaxation will be realised by MFIS at the end of this financial year,” .......
Crowdsourcing Based Microlending Service Kiva Launches In India
....The Reserve Bank of India (RBI) requires loan funds sent to non-government microfinance institutions to remain in the country for at least 3 years. As a work around for this, Kiva’s field partners will hold on to loan funds for the minimum 3-year term before sending repayments back to lenders......
Bangalore police to crack whip on fin firms
The robbery bid at Muthoot Mini Finance office at Mariyappana Palya near Jnanabharathi on Tuesday has made the city police to crack whips on banks and other financial firms which do not adhere to Reserve Bank of India’s (RBI) guidelines on security matters. The police have decided to write to the RBI about the violations made by firms and recommend cancellation of their business licenses. The fact that most of the firms have not appointed security guards has made the police to identify such firms and initiate action against them.......
Eyeing company deposit plan? Guard yourself against fraud
......The agents, who collect deposits from across West Bengal, Jharkhand and parts of Madhya Pradesh and southern India, are given on-the-spot commissions of 16-33 per cent. The Reserve Bank of India (RBI) often comes up with advertisements against such companies, clarifying that it does not give any guarantee of the investment options being floated by these companies.........
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