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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 31, 2012
Sacrificing growth to tame inflation: Subbarao to critics
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RBI Governor D Subbarao for stable taxation and investment regime to attract FDI
NEW YORK: Reserve Bank India Governor D Subbarao has appeared to have joined the debate on the recent controversial retrospective taxation provisions saying there is need to have a stable policy, taxation and investment regime to attract foreign capital. "India has to run a stable policy regime and have a stable taxation and investment regime," he said during his lecture at the Asia Society here.......
U.S. Industry Welcomes Reserve Bank of India Governor
The U.S.-India Business Council (USIBC) today hosted the Governor of the Reserve Bank of India (RBI), Dr. D. Subbarao, for a private meeting of top executives from global financial, manufacturing, and other corporations. The industry representatives, including several CEO-level, heard from the Governor the challenges RBI faces in managing inflation while promoting the growth necessary to keep the engine of India’s economy thriving, all in the midst of many factors beyond the respected institution’s control.......
Time for self-regulation?
Public sector bank chiefs are not always paragons of HR virtue
....Human resource, or HR, development is one of the key portfolios that K C Chakrabarty handles as the Reserve Bank of India (RBI) Deputy Governor. And there is no doubt that he has initiated sweeping administrative reforms to ensure fairness in transfers and postings in the central bank. He is also known for his outspokenness in an organisation that seems to specialise in a language that hides more than it reveals...........
Minting on error: Rs. 5 coins go for Rs. 5,000
Kolkata : ......."Recently, we came across a 5-rupee coin from the Calcutta mint with the normal reverse showing 'XIX Commonwealth Games, 2010- Delhi'. The coin had no denomination," said Sharma, who bought one such piece for Rs. 6,000. "The issue has come to Reserve Bank of India's notice. We are investigating whether there was an error on our part or there is foul play," a senior RBI official said.
Memories framed only remained............
“ I am deeply saddened by the sudden unexpected untimely demise of Ms.Anitha Srinivasan. She was a very friendly, affectionate person with full of zeal and enthusiasm. I recall the support and cooperation she gave for our training programme conducted at RBI, Chandigarh. At a short notice, she handled a session on HR combined with a Quiz which is still Green in my mind. In fact, that was my first programme as the Faculty of CAB that too at an outstation. In the end of the program, she presented me a photo frame taken at the inaugural session with the RD-RBI, CGM-NABARD, Anitha, R R Kulkarni, CAB-Faculty and myself, which I kept it for display in my house. She also shared her memoirs of outreach programme conducted in a village in Himachal Pradesh in one of the coldest winters. Seeing her talent in teaching, I suggested her to join CAB as Faculty but she joined the heavenly abode. I pray to almighty for her peaceful soul”.
- L.M.Ganesan, AGM/MOF, CAB, Pune
86th meeting of Reserve Bank of India, Co-ordination Committee on Training held in Bhopal
Ms. Meena Hemchandra, CGM, Principal-CAB & President CCTH releasing Hindi Noting Table Calender, Shri P.R.Ravi Mohan, Regional Director, RBI, Bhopal, Shri Vivek Maindargi, AGM, RBI, Shri Umesh Kumar Singh, Field General Manager, Central Bank of India, Bhopal Zone, Shri S.K.Agarwal, Principal, SPBT College, Mumbai (DGM, Central Bank of India)
New banks not recipe for quick financial inclusion, says Kamath
..... “Banks are reaching out to the masses and accounts are being opened every day. I think the immediate thing we need to figure out is how to get money into these accounts and how do you create lending opportunities (in rural areas). These are product-related challenges that banks are facing,” ...........
Read - BS
Banking Ombudsman receives 3k complaints
The Banking Ombudsman, Chandigarh, which covers Punjab, Himachal Pradesh, the Union territory of Chandigarh and three districts of Haryana received 3,521 complaints in the year 2011-12. According to J Tashi, the Banking Obudsman of Chandigarh, 663 levy charges on loans related complaints, 574 complaints related to suspected use of cloned ATM cards, 499 complanits related to pension funds and 17 complaints pertaining to debit cards were received. The complaints made on-line increased by 12.6 per cent while other modes decreased.......
Kamath disagrees with SBI chief, says CRR part of monetary policy
....Asked to comment on the vocal slugfest between Chaudhuri and RBI Deputy Governor K.C. Chakrabarty on the issue, Kamath said in the whole issue of monetary policy, several tools are being used, including Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio. CRR is the portion of deposits kept by banks with the Reserve Bank on which no interest is paid. “I think the monetary authority (RBI) in its wisdom uses all these tools as appropriate and that’s what is being done.......
Bankers can give views
Apropos the debate on phasing out the cash reserve ratio, bankers should be allowed to express their views freely on pertinent areas of the banking sector since that will go a long way in framing effective policy for financial stability. The regulator should welcome views as long as they do not damage anyone’s interest.
- Srinivasan Umashankar Nagpur (BS)
CRR battle
The recent war of words on CRR between RBI Deputy Governor and SBI Chairman goes beyond the subject itself. First, the media should ascertain the views of the chairmen of other banks. The RBI Deputy Governor will find himself in a hopeless minority. No chairman of another bank ever has the courage to say anything against SBI till he gets into RBI. There was a time when SBI officers ran many other banks. When these banks wanted a chance to get into SBI, the experiment failed when such a chairman mishandled the Harshad Mehta snafu in a ham-handed way. Also, RBI can never forget that SBI’s genealogy beats that of the RBI by more than a century and that SBI, in its previous avatars, was virtually the first RBI from 1862 till 1935.
- T R RAMASWAMI (ET)
Can’t just junk the fear
..........When the RBI Governor says, even if just by way of abundant caution, that “we need to prepare for” a ratings downgrade, it’s time to get worried, very worried...........
Read - FE
Read - FE
There’s no money to show, honey
High fuel bills, food bills and a wedding cake tax regime - India's consuming classes have never had to fight on so many fronts. Now, latest RBI data shows household financial savings are also decelerating sharply. So is the wallet pinch so hard that Indians are putting off consumption as well as savings?..........
RBI asks urban co-operative banks to modify FD form
....RBI had earlier asked UCBs to incorporate such a clause in the account opening form, however, it said, "UCBs which have neither incorporated such a clause in the account opening form nor taken adequate measures to make the customers aware of the facility of such mandate, cause unnecessary inconvenience to the 'surviving' deposit account holders(s). "UCBs are, therefore, advised to invariably incorporate the aforesaid clause in the account opening form and also inform their existing as well as future term deposit holders about the availability of such an option." .......
RBI signs MoU with UK on black money
New Delhi, Aug 30 (IBNS) The Reserve Bank of India (RBI) has entered into a Memorandum of Understanding (MoU) with Financial Service Authority (FSA) of UK on black money...........
Parl Panel concerned over lack of sync between RBI, govt
......."There is a visible lack of sync between the fiscal and monetary policy being followed by the government and the RBI ... The Committee strongly feel that monetary policy alone cannot bring down inflation or spur growth in the absence of commensurate fiscal measures," said a Parliamentary panel report on 'Current Economic Situation And Policy Options'............
Firms rush for NCDs ahead of RBI policy
A slew of non-banking financial companies (NBFCs) have lined up their non-convertible debenture (NCD) offerings ahead of the Reserve Bank of India (RBI) policy review on September 17. NCD issues worth more than Rs 2,000 crore are likely to hit the market in two weeks..........
RBI, finmin paint bleak picture
....The central bank, in a forceful submission that highlighted its growing differences with the finance ministry, reiterated its demand for fiscal action by the Union government and has recommended that it restructure spending. It should step up capital expenditure that will, in turn, serve as a stimulus to “crowd-in” investment, RBI said. The central bank was categorical that the Union government will not be able to adhere to its fiscal deficit target for the year, unless it takes some corrective steps......
Corporate loan rejig could soar to Rs 3.25-lakh crore
......At a recent seminar, K. C. Chakrabarty, Deputy Governor, Reserve Bank of India, said the increase in restructuring can be partially attributed to excessive borrowing by some corporates during boom periods. He said there are deficiencies in project appraisal, especially with regard to cash flow analysis and the determination of the date of project completion.
Fake Indian currency racket trail now reaches Luxembourg
...."We are in touch with them and the Ministry for External Affairs (MEA) has been informed. We are also sending them the samples of the fake notes so they can spot them and discontinue their circulation in their country. Reserve Bank of India (RBI) has also released its report on the difference between fake and original currency,"......
RBI asks banks to post bulk deposit rates on website
The Reserve Bank of India (RBI) has asked banks to put up bulk deposit rate on their websites, to stop banks from offering exorbitant rates to corporate depositors. According to RBI norms, no bank can offer varying rates on the same day at different locations..........
Accounting for NPAs when economy is down
The task for the RBI is certainly cut out, as it has to balance a dark economic environment with aggressive accounting standards. Having done so in the past (for Indian accounting standards), this should not be a too Herculean a task for the RBI..............
Banks oppose RBI committee's suggestion of higher NPA provision
.....The Reserve Bank of India had set up a working group under the chairmanship of B Mahapatra, executive director, RBI, to review the guidelines on restructured advances of banks and financial institutions. Bankers felt if regulatory forbearance was taken away, which would mean all restructured loans would have to be classified as NPAs, it would increase NPAs in the system. This would have an implication on banks’ profitability and ratings. “Banks’ ratings would be drastically affected if NPAs increase sharply. An adverse rating would make it difficult to raise funds at viable costs,” ......
Technology as agent of change in Indian banking
The evolving information technology in banking can not only help introduce transparency and reduce costs for the banks, but also improve customer service and reach, while enabling financial inclusion.....
No-frills demat account suited for irregular users
| The no-frills banking experience |
| In 2005, the Reserve Bank of India (RBI) also proposed no-frills banking accounts. Account holders could maintain zero balance. In addition, the first cheque book was free and subsequently Rs 5 was levied on every cheque leaf.However, such accounts have not helped banks to spread reach, neither have too many people entered the banking system through these routes. According to public sector bankers, the incremental number of accounts through the no-frills option is barely one per cent. In fact, even the apex banker was not-too-happy with the banks as these accounts remained mostly on paper and no transactions took place. In fact, RBI has told bankers recently to remove the no-frills tag from these accounts since it seemed like a stigma. Instead, they have asked to call it basic savings bank accounts. |
Read - BS
‘I need to earn salary, and not get salary’
...... the board had fixed a salary of Rs 1 lakh a month for him. This was approved not only by the shareholders at the AGM, but also by the RBI and the Central Government. But surprisingly, he has not drawn his salary. He said: “I have a policy. That is to earn the salary, and not to get the salary. I did not take it. As a non-executive director I get sitting fees, conveyance and halting allowance. I also get my pension. These help me meet my expenses.”......
Read - HBL
Corruption: A challenge for managers - M.G.Warrier
.....In November 2010 writing on “Demand and supply of corruption in India” Dr Bimal Jalan made the following observation on the working of the watchdogs of governance in India: “Investigations are carried out, guilt is established, appeals are filed but nothing much happens after that. Years pass; courts, people and the media soon move on to other cases.” The same feeling, in different situations has been finding expression through word of mouth, media reports and on faces of aam admi captured by electronic media and telecast across the world........
Read - Moneylife
Foreign banks in India
....Now the Reserve Bank of India (RBI), the regulator, wants local rules to apply to foreign banks with over 20 branches in India. In practice that means the big three. One bigwig says the rules will make India a harder place to operate in than China. It is easy to sympathise with the foreigners. They know nothing about the price of ploughs. Foreign banks have just 21 ATMs in rural India, home to 830m people. But the RBI’s stance is understandable, too. Why should big foreign banks be treated differently when 70% of farming households have no access to formal finance?.....
Are banks ready for Basel III?
.....Basel III represents a wholly new era in banking regulation where quick and accurate compliance can be achieved. Unlike Basel II, the implementation of Basel III requires monitoring data every step of the way and with the findings set to become public, the implication is that no further regulation will swiftly follow until the new risk paradigm is reached.
7% interest on savings accounts helps smaller banks gain
....Since the deregulation of savings deposit interest rate in October 2011, five private banks, 10 foreign banks and a co-operative bank have increased their savings deposit rate in the range of 100-500 basis points so far, according to RBI data. These banks have increased their share of savings bank deposits in the banking system from 1.8% to 2.1% in the post-deregulation period up to July 2012......
Choose a cash back credit card that suits your spending pattern
The spectre of inflation is still haunting the common man. The Reserve Bank of India recently underscored the threat when it revised its inflation expectation upwards from 6.5% to 7% for March 2013. Sure, the only way out of this inflationary situation is to cut down on discretionary spending..........
Read - ET
Read - ET
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