Deveshwar appointed on RBI board

New Delhi, Sep 4 (IANS) The government has appointed ITC chairman Y.C. Deveshwar as a director on the central board of directors of the Reserve Bank of India. A notification to this effect was issued by Vijay Malhotra, undersecretary in the finance ministry. Deveshwar's appointment will be for a period of four years.

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‘Language plays important role in financial inclusion’

.....Meena Hemachandra, Principal of College of Agricultural Banking, said that banking is a business related to all people, and requested all to use Hindi extensively. They should not be overly mindful of the fact that they are unable to find the exact words to use......

Read - HBL

Basel III to benefit Indian banking system: Subbarao

.........“The moral hazard relating to too-big-to-fail institutions which encourages risky behaviour by larger banks has been a huge issue on the post-crisis reform agenda,”......

Read - The Hindu

RBI allows too much money supply - A.Seshan

........Carrying the imprimatur of the Central Board of Directors, the Annual Report of the Reserve Bank of India (RBI) is perhaps its most authentic statement on the state of the economy and the possible solutions to the various problems faced in almost every sector........

Read - HBL

RBI expresses helplessness on shortage of coins of rupees one and five

Have you been blaming the Reserve Bank of India (RBI) for the changes in currency and the fact that the Rs2 coin looks like the Re 1 coin, the 50 paise coin like the demonetised 25 paise coin, etc.? RTI (Right to Information) activist Subhash Agarwal has discovered that the blame lies with the finance ministry, Government of India...........

Read - Moneylife

Govt mints more two rupee coins in 2011-12

......The RBI has replied that the production of these coins was also increasing and their availability would improve. It has, however, declined to say anything on the design of the one rupee coin which the activist has found to be very similar to the 10 paise coin. Instead it has directed him to take up the matter with the Government of India since the design is done by them.

Read - HBL

Engine trouble in India

....“The persistence of inflation at a high average rate of 9% during 2011-12 further atrophied financial saving, as households attempted to stave off the downward pressure on their real consumption,” said RBI in its annual report, and added: “The trend of falling savings rate, particularly that of public sector savings, needs to be reversed for adequate resources to be available to support a high-growth trajectory during the 12th Plan”........

Read - Mint

Two-speed economy

.....The lack of growth in industry is also seen in the credit numbers for banks. The latest Reserve Bank of India data shows that growth in bank credit to all types of industry—micro and small, medium, and large—has been zero this fiscal. Between 23 March and 27 July, there has been absolutely no growth in bank credit to industry.........

Read - Mint

Subbarao adds levity to CRR debate

.....The first condition being, the members of the committee -- the SBI Chairman and Deputy Governor of RBI be locked up in a room till they come to an amicable solution. Second, the findings of the committee should not be made public until his own term expires as the Governor...... 

Read - HBL

Humour in reserve

....The impish humour of Y.V. Reddy was always liable to break out unexpectedly. On Tuesday, his successor cracked what seemed liked a funny one, but was probably also meant as a message. ......

Read - Mint

CRR row: RBI Governor doesn't see an end !

Reserve Bank of India Governor Duvvuri Subbarao on Tuesday played down the cash reserve ratio controversy between his senior most deputy and the nation's largest bank SBI, saying that he is not too sure whether the two will sink their differences before he demits office............ 

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CRR row: RBI guv glues sparring aides in panel

Readl - Hindustan Times

No easing, just teasing, from India's central bank chief

He often opts for the unexpected when it comes to monetary policy reviews, recently disappointing those looking for a cut in interest rates, and on Tuesday he cracked a joke that took a bunch of news-hungry reporters and market players for a ride. Before beginning his speech at one of the country's largest and most prestigious banking events, the Reserve Bank of India chief said in a serious tone that he had something to announce.........

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Bank stocks jump at Subbarao’s CRR joke

....After his speech, a reporter asked Subbarao if his comment was just a joke. He smiled, and said: “What do you think?” While the reporter took time to comprehend, the market didn’t wait. BSE Ltd’s Bankex, the index of 14 lenders, rose to erase losses. The gauge later dropped after the central bank said the comment was light-hearted and that no such panel exists......

Read - Mint

Subbarao's laughter therapy on CRR row

....There was pin-drop silence as the audience, comprising top bankers, didn’t know how to react. They were only too aware of the recent public spat between the RBI Deputy Governor and the SBI Chairman on the latter’s argument that CRR should be abolished. News hungry reporters rushed outside to flash the “story” to their respective websites, agencies and on television. Some even went to the extent of flashing “news” about a possible end to CRR that sowed confusion in the bond market....... 

Read - BS

A Reserve Ratio Evokes Unreserved Laughter

.....Subbarao, better known for his handling of interest rates, showed that he can also handle an unseemly public disagreement over divergent interests in an equally deft manner....... 

Read - ET 

Not Just CRR, Debate Other Policy Tools Too

The discussion on CRR should not just be restricted to the cash reserve requirement, but should also extend to other directed investments such as government bond holdings and lending. It will be delusory to maintain status quo on the ground that they saved India from the 2008 crisis,..........

Read - ET

Mint poll | No RBI rate cut seen; loan charges may drop

Read - Mint

Expect RBI to cut CRR by 100 bps: Pratip Chaudhuri

SBI Chairman Pratip Chaudhuri on Tuesday said he expects the RBI to the cut cash reserve ratio (CRR) by 100 basis points at the September 17 policy meet..........

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RBI may not touch CRR as of now: Shubhada Rao, Yes Bank

.... think that the RBI has a whole set of measures to alleviate liquidity problems. While at this point in time liquidity remains extremely comfortable, the scenario would change post the advance tax payments around September 15. The question would then arise that is it a structural liquidity issue or a temporary pressure on liquidity. Our sense is the RBI has kept its options open as far as......

Read - ET

Assocham wants interest free CRR to stay

.....“The case for continuation of CRR interest free is very valid as well as indispensable. It has worked well and perhaps is not an issue that needs any revisit,”.......

Read - HBL

My View on "EMPEROR, LOOK AT YOUR OWN CLOTHES"

This is not for the first time such a demand of putting RBI under CAG scrutiny has been raised in the press/media. It was demanded in post 1992- securities scam also when all and sundry wanted RBI under the audit purview of CAG. But the combined wisdom of the Government of the day and the RBI Management had preferred to keep RBI, the Central Bank of the Country, as it was and independent of any interference by any constitutional instrumentality much less the CAG. In writer's own admission that " RBI as an institution is known for its impeccable integrity and intellectual honesty " then why it should be brought under the CAG like any other Govt. Department. Central Banking is a specialization and is not every body's cup of tea. CAG's hands are already full and some its recent reports- supposed to be disputable as mentioned by none other than the country's Prime Minister who is known for his impeccable character world over, are not beyond further scrutiny by an independent authority- may be the Public Accounts Committee of the Parliament. Therefore, let the CAG first grapple with the jobs on hand and not add further to its and country's woes by expanding its area of operations. If RBI toay, tomorrow it could be SEBI and so on... Then who will scrutinise CAG's functioning?  With the changing times, the need of the hour should be to make RBI- a constitutional body on the lines of CVC and CAG itself with fixed tenure for the Governor like the Fedreserve. This will be in the best natioanal interest and Mr. TB should strive for it with all the force at his command.

- M L Mahajan, Ex-GM, HRMD

'Lend directly to borrower in priority sector'

.....“Lending directly to the beneficiary will ensure the management of credit and help banks understand the risks associated with this. While routing money through financial institutions, it’s they who take the risk and not banks,”......

Read - BS 

Banks credit to infrastructure sector won’t be termed as priority lending: Chakrabarty

.....“I have no problem in banks lending to infrastructure companies, but don’t classify that as priority sector lending,”......

Read - HBL

Postal department can't find IIT-K, institute loses licence

A series of mistakes, apparently on the part of the postal department, led to the cancellation of the licence of the Indian Institute of Technology, Kanpur (IIT-K) under the Foreign Contribution Regulation Act (FCRA). The home union ministry took the action after it did not receive a reply to a show cause notice sent to the institute. The registrar of the institute RK Sachan said, "Every year we have to submit the annual statement of funds received from foreign sources to the home ministry and the Reserve Bank of India (RBI). Somehow, the ministry did not get the statement and issued a notice to the institute. The institute did not receive the notice either and hence could not reply to the ministry,"....

Read - Hindustan Times

Retirements will create 1.8 lakh vacancies in public sector banks

....The banking sector is expected to grow at approximately 20 per cent over the next decade and will need major induction of talent, a significant part of which is to replace vacancies arising due to retirements in public sector banks. At the current rate of attrition, the industry will need to hire over four lakh more people......

Read - HBL

Government can dilute stake to help PSBs meet Basel III norms: RBI

....“But will the Government sacrifice its majority shareholding responsibility, rights and obligations or will it amend the statutes such that even if their shareholding comes below 51 per cent, it continues to enjoy the privileges of a majority shareholder.”.....

Read - HBL

Mahesh Coop bank on expansion mode

....The Andhra Pradesh Mahesh Cooperative Urban Bank is expanding its operations to Maharashtra, Rajasthan and Gujarat. “Reserve Bank of India has acceded our request to extend our area of operations to these States,” according to Ramesh Kumar Bung, Chairman of the bank......

Read - HBL

Banks set up play area for kids, conference rooms for HNIs

Now, you don’t have to worry about the kids when you discuss your finances with the relationship manager at your bank branch. Private lenders like Federal Bank and Axis Bank have set up branches that have special areas for children, with books, toys and video games to keep them engaged while their parents are busy doing banking transactions................ 

Read - BS

Government, RBI worried over monitoring of Sahara Credit Society

India's financial regulators and the government are caught in a cleft stick over monitoring and regulation of a credit co-operative society backed by members of the Sahara Group. The entity, over which RBI and Sebi have no oversight powers, has substantial deposits...........

Read - ET

J&K Grameen Bank launches new services

Mumbai, Sept 4 (IBNS): J&K Grameen Bank, with the help of IDBI Intech’s i@Connect software, on Tuesday announced it has launched National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) services. "RBI Circular dated 09th April 2012 (Access criteria for payment systems – sub-membership to centralized payment systems) had mooted this innovative concept of rural banks to become a sub-member to their sponsor bank," said on official spokesperson on Tuesday......

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