......The RBI’s intended mission of a safe, efficient, accessible and inclusive world-class payments system is appropriate and is a very critical cog in the giant wheel of India’s economic growth. The payments industry and the outside world will be watching the strategy to unfold in the coming years. We all hope that all the good intentions get translated to actions and that India’s payments system takes its rightful place among the leading markets for electronic payments.......
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, September 12, 2012
Signature comment
A man from an audience that Reserve Bank of India’s
witty and outspoken Deputy Governor K C Chakrabarty was addressing in Mumbai
recently asked for his autograph. He would always treasure it, he told
Chakrabarty, as the autograph of the future governor of RBI. To this
Chakrabarty responded, “The governor’s office is not vacant, and I’m a middle
class person. By saying this you will take away even my existing job.”
BS
RBI Nominee Director on the board of Bank of India
Bank Of India has informed the Exchange that "In terms of Notification No.F.No.6/3/2011-BO.I dated 06.09,2012, Government of India has nominated Shri P. R. Ravimohan, Regional Director, Reserve Bank of India, Bhopal as Reserve Bank of India Nominee Director of the Bank in place of Shri P. K. Panda with immediate effect and until further orders under Clause (c) of Sub-Section 3 of Section 9 of The Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970/1980 read with Sub-Clause (1) of Clause 3 of the Nationalised Banks (Management & Miscellaneous Provision) Scheme 1970/1980".
ICICI Bank opens new branch in Cuttack
ICICI Bank, the country’s largest private sector lender, has opened a new branch at the Mahanadi Vihar area in Cuttack. The new branch was inaugurated by P.S.Venkataswaram, Deputy General Manager, Reserve Bank of India (RBI) -Odisha........
Beware of money mules
....RBI’s stringent restriction to curb increasing phishing and Trojan scams has now led to the mushrooming of money mules. “These mules are identified by fraudulent elements for the safe transfer of stolen money out of the country. As RBI guidelines do not allow anybody to transfer money overseas, the phishing and Trojan scamsters use this method. Though mules can be tracked down, many times they target dormant accounts to take out the money,” explained M Palanisamy, the Banking Ombudsman of Karnataka......
Sectoral Session on Financial Services
Emerging Kerala 2012
Biennial Global Connect
14 September 2012: Hotel Le Meridien, Kochi
Program Schedule
(1030 – 1230 Hrs): Sectoral Session on Financial Services
1120 Hrs Discussions & Interactions – Panelists:
1) Dr. Subir Gokarn, Deputy Governor, Reserve Bank of India
2) Mr. Uday Kotak, Executive Vice Chairman & MD, Kotak Mahindra
3) Mr. Shyam Srinivasan, MD & CEO, Federal Bank
4) Mr. H.K. Dubey, ED, HUDCO
5) Mr. P. Nanda Kumaran, Managing Director, SBT
6) Mr. C. Parthasarathy, Managing Director, Karvy
My View on "Nothing for banks to gripe about"
 |
| - A.Chandramouliswaran |
I have great respect for Shri Seshan for his knowledge,meticulous research, for updating himself practically on a daily basis with the latest data regarding the economy in general and banking system in particular, extensive study even at this advanced age and finally for his enormous energy in spending several hours daily on reading, writing not only on banking subjects but also on music, tennis etc.Hence, it is with utmost humility that I wish to raise an issue with him. CRR was 6% till some time ago. With the amendment of the RBI Act, CRR could be even 10% or more. Would the RBI be justified in not paying any interest on CRR,i.e even if the cash balance is required to be maintained in excess of the statutory minimum of 3%, say,at 10%? Banks have a certain cost of funds and would be handicapped in keeping the cost of their lending operations competitive if they do not earn any interest on a substantial portion of their funds. This issue has assumed more relevance in recent times with even Public Sector banks being recognised as commercial entities( notwithstanding its social obligations in line with the directives of the Government/RBI) and expected to make profits for its shareholders who to a significant extent are now private shareholders.
Bharat does not quite beckon young bank staff
......Young bankers can probably look forward to more positive changes soon. A recent report by Crisil points out that last year consumption expenditure in rural areas exceeded that of the urban . Perhaps, that is reason for hope.
Banks must raise profitability before Basel-III kicks in: Govt
......."In the preparatory phase, if banks can improve their profitability, perhaps the need for capital from government will go down to that extent,"........
Advice from the trenches
Dear Professor Raghuram Rajan,
Congratulations on joining the crew of Indian policy makers as chief economic advisor (CEA). It is high time the ministry of finance (MoF) had a practical and realistic macro framework.....
.......Indian finance ministers cannot resist public comments about what the Reserve Bank of India (RBI) should and/or will do, even if they sometimes sound foolish. Perhaps taking a lead from them, several MoF officials mimic that approach, never mind that they cannot set their own fiscal house in order. I hope you’ll successful in bringing around a refreshing change in this respect. Financial markets are becoming more important, and the last thing one needs is an airing of differences in public or even an active undermining of the RBI.......
Read - BS
Inflation bugbear
.....Even if RBI and the government do work together effectively to reduce inflation, the pain won't go away for another six months......
Read - Business Today
Govt to take steps to help RBI relook at monetary policy
....."We still believe food inflation is a cause of major concern and it needs to be tackled in a manner that we are able to give comfort to the regulator Reserve Bank that it is time for them to have a relook at the monetary policy,".....
Rate cut may be deferred
.......Lack of government action to address the country’s fiscal woes might prolong the wait for rate cuts from the Reserve Bank of India (RBI), economists say. RBI has not changed the policy rate since the annual monetary and credit policy announced in April, owing to sticky inflation and hopes the government would act to support the central bank’s efforts. Currently, the repo rate, or the rate at which banks borrow from RBI, is eight per cent.......
You Economists Don’t Know Nothing
....In India, RBI Governor YV Reddy got credit for tightening credit and real
estate regulations during the boom. Yet the stock market in India rose
seven-fold and the real estate market even faster. Central bankers'
theories and tools look very weak today: raising interest rates has not
cured inflation in India, and cutting them has not yielded growth in the
US or Europe.......
Read - ET
The Indian economy’s new normal
.....J P Morgan economists Jahangir Aziz and Sajjid Chinoy said in a 7 September note that the persistence of high inflation despite falling growth is because the potential growth rate of the Indian economy has fallen to 6-6.5%, lower than the 7.5% assumed by policy makers and the financial markets. Reserve Bank of India governor D. Subbarao has said earlier that the potential growth rate of the Indian economy --- or the growth it can sustain without setting off an inflationary fire --- is 7.5%, a full percentage point lower than the pre-2008 levels.......
Read - Mint
Gold as currency: India should take the lead
.....In the 1920s, when the British sought to pass the Reserve Bank bill in the Legislative Assembly, Indian leaders voted against it. As London’s Financial Times reported in 1927, the intent of setting up the Reserve Bank of India was to provide gold at a rate that would “make it unprofitable for dealers or the public to demand it for non-monetary purposes”. The British wanted to make it an almost impossible task to redeem the rupee for gold by allowing its redemption only in London.......
Gold loan NBFCs will feel regulatory heat: ICRA
....The new regulations, in the form of loan-to-value (LTV) cap and funding constraints, will significantly restrict expansion capabilities of these NBFCs, said ICRA Management Consultancy Services (IMaCS). By the new Reserve Bank of India norms, NBFCs can lend only up to 60 per cent of the value of pledged gold (the LTV ratio is capped at 60 per cent)......
Showcause notices concern collective responsibilities: Modi
....In simple terms, the act requires certain foreign exchange transactions to be approved by the Reserve Bank of India (RBI) and the current investigations surround the potential contravention of the law in the BCCI's dealings with Cricket South Africa [CSA) for IPL 2. .....
Read....
Govt can provide equity support to public banks for Basel-II
......The comments come within a week after RBI Governor D Subbarao pointed out that the government would find it difficult to fund banks’ migration to the Basel-III norms due to its precarious fiscal condition.
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