PATNA: The Office of the Banking Ombudsman (OBO), a separate office under the RBI, has cleared 2,718 out of 2,820 complaints lodged between July 2011 and June 2012, according to the annual report presented by Ombudsman of Bihar and Jharkhand Srimohan Yadav on Wednesday. With this, the OBO has registered a growth of 22% in problem-solving measure, he said..........
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.
Thursday, September 13, 2012
Around 300 students from Jharkhand to take part in RBI quiz
About 300 students from 50 schools of Ranchi, Bokaro, Jamshedpur and Dhanbad would represent Jharkhand in the RBI quiz by Reserve Bank of India. Reserve Bank of India(RBI) has launched RBI Q, an all India inter school quiz with a view to create awareness and interest about the history and the role of RBI, banking and finance, economics, current affairs, personalities and events that have contributed to the growth of the country over the years....
Short-term banking courses up for grabs
The banking industry has become a major growth-oriented industry after the phenomenal expansion of branch networks. It is an important tool to facilitate the development of the Indian economy.....
New exemption limit on life cover likely
....For long, life insurers have been seeking a separate income tax exemption limit of Rs.50,000 for premiums. So, the latest government move will cheer them as it will help promote insurance plans as tax-saving instruments. Earlier, investments on pensions were treated separately for tax deductions. There was an income tax limit of Rs.10,000 under Section 80CCC. It was withdrawn in 2005 and the tax department started treating it with aggregate deduction of Rs.1 lakh. The finance ministry is considering to reintroduce the exemption for pensions separately. ......
RBI meet on payment, settlement system by Sept end
Mumbai: The Reserve Bank will hold a meeting by month end to discuss the payment and settlement system, Executive Director G Padmanabhan said here on Wednesday. The central bank had issued a vision document on payment system concerning to cards, ATMs, internet and mobile in 2009, which was open for feedback from various stakeholders........
Growth in prepaid payment instruments not encouraging: RBI
......“Significant changes are required in the technology and business model of non-bank PPI issuers to be accepted at the point of sale terminals, they need to adhere to the form factor specification and connectivity to their switch,.......
Read - BS
Make way for the signal !
The Reserve Bank of India Governor was about to address a conference organised by National Bank of Agriculture and Rural Development (Nabard) in Mumbai, which also involved patching through a video-link between him and some of Nabard’s rural centres. The auditorium is located in the basement of Nabard’s office so, naturally, there were problems connecting to the centres. Instead of fixing the problem or arranging for an alternative, the staff forced people standing at the entrance to the auditorium to leave. The logic? It was these people who were apparently “blocking” the signal! Naturally, this “theory” didn’t hold but it doesn’t say much for Nabard’s adoption of high-end technology, which the conference was supposed to showcase.
MFIs want new RBI guidelines implemented in phases
...."The new norm is not practical and will make MFIs unviable," said MFIN chief executive Alok Prasad. "We have taken up the matter with RBI as the operating cost for most MFIs in the country is still high despite being part of the most efficient MFI system in the world. It will be difficult to bring down the cost immediately." Prasad said Indian companies offer micro loans at the cheapest interest rates.......
No policy space?
....The question for many is: what will the policy response be to this full-fledged crisis in manufacturing? Those who argue for a response from the Reserve Bank of India (RBI) are likely to be disappointed. Manufacturing inflation may have fallen, but consumer prices are still increasing at a rate way out of the RBI’s comfort zone. On Friday, inflation numbers will reveal whether the consumer price index is in double digits or not. Meanwhile, RBI Deputy Governor Subir Gokarn has already dismissed concerns about liquidity. Global influences on monetary policy, too, point in the direction of steady domestic interest rates.....
Read - BS
Varied thoughts on the exchange rate
......In the context of the exchange rate, I recently came across a curious paper titled “The Art of Currency Manipulation”, (26 June), by Kaushik Basu, Rajan’s predecessor. From what I could make out, Basu (now the chief economist at the World Bank) blames the “currency manipulator”, whoever he may be, for the volatility of the rupee’s exchange rate, also taking a swipe at RBI (“The central bank and regulator, ….have very little notion of how the currency manipulator works and so have dealt with this problem very inadequately.”)..........
RBI should go for at least 100 bps rate cuts
.... If you want to buck up the sentiments of investment in the country, one indicator the RBI should focus on is the base rate, which has been contained for a while and should be brought back to an investible rate. I believe that if credit is available at around 10%, many projects may become viable and consumption can catch on. Therefore, RBI cannot utilise the monetary policy alone as inflation control as it will not control the consumption. I certainly recommend that RBI should intervene and reduce the interest rates by at least 100 basis points across one or two instances. Doing so will be a positive indicator for the markets and encourage investment.....
Why low deposit rates may be short-lived for banks
.....The overall loans-to-deposits ratio still remains at 75%, reflecting that out of every Rs 100 as deposits, Rs 75 has been lent. With banks mandated to own at least 23% in government bonds and 4.75% in cash with the Reserve Bank of India, banks are relying on other sources of funds to lend. These ratios will never match. Banks, in their eagerness to please investors, have, in the past few years, raised short-term deposits, (which are low cost), and lent long term for building power plants and roads.
Read - ET
Inflation likely nudged up to 6.95% in August
India's rate of inflation probably picked up in August from July's near three-year low as poor summer rains drove up food prices, a Reuters poll showed, giving the RBI even less room to cut policy rates next week to reinvigorate economic growth. While central banks elsewhere are trying to ease monetary conditions to counter a global slowdown, the Reserve Bank of India (RBI) has consistently flagged high inflation as a key risk for Asia's third largest economy.......
IRead......
Centre readies plan to revive exports, says secy
..........The Reserve Bank of India (RBI) has also been urging the government to unveil a clear fiscal consolidation strategy and tackle the problem of subsidies . The central bank says lack of fiscal consolidation measures weighs heavily on any plan to ease tight monetary policy..........
Cut in FD rates will not lead to capital flight: SBBJ boss
Q. There has been an ongoing debate on abolition of cash reserve ratio (CRR). What is your reading about it?
A. CRR has its own philosophy to which it was set up. RBI has its own reason to keep it. From bankers’ perspective, we raise money and expect return on that. CRR money goes away without any interest. For banks, it is definitely a drain on profits. It is definitely a burden on banks. If depositors’ security is a concern, then the regulator should pay some interest on CRR. RBI normally does not pay interest on CRR. Some 20 years back, it used to pay interest but beyond 3% when CRR had gone up as much as 15-16%. With changing pace of time, discussion on this issue should take place. You cannot continue to do banking as you used to do in the past.
RBI sets stage for a bank supervision overhaul
| CHANGING TACK The changing landscape of banking supervision |
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Read - BS
Forensic audit of Deccan Chargers owners accounts begins
.......The move is set to derail the proposal of DCHL to go in for corporate debt
restructuring (CDR) of its outstanding loans with the bankers. DCHL's board has
passed a resolution on asking the CDR cell to rejig its existing debt. "The
board of directors of the company, at its meeting held on September 7, 2012,
has passed a resolution to restructure the existing debt of company by an
application to Corporate Debt Restructuring (CDR) cell under CDR mechanism as
envisaged under the Reserve Bank of India guidelines,".....
DYK | Banks, NBFCs are rated by RBI on CAMELS concept
Through its annual process of financial inspection, the Reserve Bank of India (RBI) inspects and supervises commercial banks and non-banking finance companies (NBFCs) every year. It also gives a rating to banks and NBFCs, but the results remain out of public domain. Known as the CAMELS rating, the process has been on since late 1990s.............
Read - Mint
Time to worry about retail loans
....one key reason for ballooning retail NPLs in 2008-09 was the damage to the recovery environment as the Reserve Bank of India (RBI) clamped down on lenders’ recovery practices after reports of borrower harassment followed by suicides. The important point to note is that the banking system handled this in a oblique fashion by clamping down on further loans, but not through an improvement in the recovery climate that remains broadly the same even now...........
Geithner to visit India next month
....On October 10, Geithner will travel to Mumbai, the country's financial center, to meet with Reserve Bank of India (RBI) Governor Duvvuri Subbarao, as well as Indian business leaders from a variety of industries.......
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