RBI’s prescription for ailing economy

......The most disturbing feature of the whole exercise is the bankers' attitude to these accounts. Governor Subbarao is more blunt when he says: " The general impression I got is that frontline, managers treat no- frills accounts as a nuisance and low income households as an intrusion into their time and business. This is disappointing to say the least. Actually, financial inclusion should be looked upon by banks as an opportunity to build " fortune at the bottom of the pyramid". Outsourcing financial inclusion to other layers may be useful upto a point. Ultimately, these layers have to be integrated with the mainstream banking.

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Subbarao's tightrope walk

The govt has shown its animal spirit, but for RBI Governor D Subbarao, the task has become more complicated. Will he cut rates to keep the animal spirit going or stick to his anti-inflationary stance......

Read - BS

An uncommon policy review

......It is a judgement call; but at the risk of sticking out my neck, my hunch is that the Governor will find it hard to not meet the government halfway and announce a small 25-percentage-point cut in policy rates, most likely in the cash reserve ratio, the subject of a hotly-contested debate between SBI chairman Pratip Chaudhuri and RBI Deputy Governor K C Chakrabarty. Though as a die-hard monetarist, I would be happy to be proved wrong !

Read - ET

Hearty GR Archived……

Shri G R Kulkarni, Ex.AGM and In charge of the then CRDC (now Reserve Bank of India Archieves), Pune expired due to heart attack on September 15, 2012. He was on his way to Pune Rly Stn. to catch Pragati Express at about 7 in the morning.  After getting down from an Auto he suddenly felt uncomfortable and succumbed to massive heart attack on the spot. He was 74. He left behind his wife and two daughters. Funeral took place in Pune on the same day. Shri Kulkarni joined the Bank in early sixities and had worked in DBOD, DICGC, Chennai Office, PPD CO and CRDC (during 1995 to January 1998). He had retired as Asstt General Manager (Adm) from CAB, Pune.  He was quite hale and hearty. He was very friendly with all and was popularly known as "Appa ". May his Soul rest in peace and may Almighty give strength to bereaved family to bear the loss. 

- R.M.Deole & Shrikrishna Purohit (via e-mail) 

Banks need to improve systems to protect asset quality: RBI

Indian banks need to improve their systems and processes to identify early any stress on the quality of their loans, the Reserve Bank of India (RBI) said. "Asset quality of banks is one of the most important indicators of their financial health. However, it has been observed that existing MIS on the early warning systems of asset quality, needed improvement," ......

Read - BS

Will RBI tango with govt on Monday?

Though the government surprised people by biting not just one reform bullet but many in just 48 hours over the weekend, the question now is: Will the RBI Governor walk the much-needed monetary extra-mile on Monday or will be weighed down by the 68 bps spike in August inflation?......

Read - TOI

Finance ministry to meet bank chiefs today to boost realty lending

......The panel, headed by Ajai Kumar, chairman and managing director of Corporation Bank, is expected to give its report by month-end. Mittal will also attend the meeting of the sub-committee of the Financial Stability and Development Council (FSDC) at the Reserve Bank of India (RBI). The sub-committee is headed by RBI Governor, D Subbarao, in which all financial sector regulators are members. RBI deputy governors also attend the FSDC sub-committee meetings.......

Read - BS

Beware! Fraudsters using RBI to trap innocents

...... RBI never asks for any details about customers’ account,” a Jammu based RBI official expressed. He said that RBI’s official website is www.rbi.org.in adding, “RBI through its website warns people about the cheaters and the phishing emails.” RBI cautious public against fictitious offers, never asks customers about their bank details, he said and added, “if anybody has complaint, it can be lodged to a local police, cyber crime authorities against such fictitious offers of money from abroad and SMSes.”......

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Rs 13-cr fake notes in 6 yrs, ICICI Bank puts in plaint

After detecting counterfeit currency with a face value of around Rs 13 crore from all the branches of ICICI Bank, the bank has registered a complaint with Delhi Police. Over the past six years, the bank has received this fake currency notes through its various branches......

Read - The Pioneer

OBC launches RuPay with withdrawal limit of Rs 25K

......"RuPay is a domestic branded card and the idea is to make card payment system cost effective. Cost and affordability are the primary reasons for the need of it," A P Hota, Managing Director and Chief Executive Officer of National Payments Corporation of India (NPCI) that governs RuPay system, said.......

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Bank of Maharashtra organises SLBC Meeting

Gujarat HC order may set tone for AP court MFI verdict

......“The Gujarat high court order can have a persuasive value on the case, though it is not binding on the Andhra Pradesh high court,” said Bomi Daruwala, a partner at legal firm Vaish Associates Advocates. “The central Reserve Bank of India Act will prevail over the state law on regulation of NBFCs, as ruled by the Gujarat high court.”......

Read - Mint

No currency

Sometime ago, Baba Ramdev had suggested taking Rs 500 and Rs 1,000 notes out of circulation as a measure to curb black money. Possible? No, Reserve Bank Deputy Governor K C Chakrabarty told someone who asked the question at an event. Withdrawing these notes and introducing an equal amount of money in lower denominations was beyond the current capacity of the mint, he explained. So, doing this would stall many day-to-day transactions. The question is whether the yoga guru-turned activist will understand this simple truth.

BS

Model education loan scheme set for an overhaul

......Although RBI mandates banks to lend 40 per cent of their total advances, towards agriculture, education, home loans, SMEs and MSMEs to achieve the priority sector lending target, there is no limit specified for each sector.

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Despite everything, RBI may lower rates

.........the Reserve Bank of India (RBI) will once again take stock of the global and domestic economic scenario and brief the markets about its views and course of action. To understand what to expect from the RBI, it would be useful to chronicle recent developments in the domestic and global front which will impinge upon monetary policy......

Read - HBL

Four weddings and no funeral

......The rupee has, like other non-dollar currencies, seen a fairly significant rally both in the build-up to QE3 and in the wake of the announcement itself. The fact that the QE3 news came on a day when our own government decided to announce fairly hefty increases in fuel prices just added to the currency’s momentum. If the Reserve Bank of India (RBI) decides to reciprocate this fiscal initiative with a cut in the repo rate, more appreciation could be on the cards as investor sentiment gets another boost. But how high can the rupee go?......

Read - BS

Political will, need of the hour to sustain euphoria

......With the Government doing its part on reforms, now all eyes are on the Reserve Bank of India's mid-quarter review of the Monetary Policy on Monday. There is an air of optimism among traders that the RBI might actually announce at least 25 basis point cut in interest rates. However, inflation at 7.55 per cent in August – much above the central bank's comfort level – has given little headroom for RBI......

Read - HBL

All eyes on RBI in the reform run

......Most economists and bankers are sceptical. But the Finance Ministry is optimistic, pinning hopes on the RBI’s statement of July 30 on “Macroeconomic and Monetary Developments First Quarter Review”.......

Read - HBL

Policy rate caution

With the “party” that began over the weekend, there have been calls for the Reserve Bank of India (RBI) to take it easy and cut the policy rate..........

Read - Mint

RBI’s turn

The government’s barrage of announcements complicates Governor Subbarao’s choice

......The set of policy measures announced last week is unlikely to yield results this fiscal. The headline inflation at 7.55 per cent is high and is climbing again. Two weeks later, the diesel price rise will push it one per cent more. Yet if the RBI governor wants to vote for optimism on the economy, a 50 basis point cut in repo rates will do nicely......

Read - Indian Express

What will RBI do?

Will the RBI cut rates on Monday or maintain the status quo?

Answers to that would depend upon whether the RBI thinks that the diesel price hike is the starting point of an earnest attempt on the part of the government to mend its finances. In the recent past, the RBI has consistently complained of government inaction in the face of a burgeoning fiscal deficit. So it had to fight the inflation battle single-handedly. With a new finance minister and first concrete proof of government’s willingness to take tough measures, the RBI has some leeway to go easy on interest rates.

Read - The Hindu

Will the central bank go for a rate cut?

......In normal circumstances, a rate cut by the Indian central bank is ruled out even though Asia’s third largest economy is slowing. But I would like to believe the Reserve Bank of India (RBI) may go for a rate cut to send a signal to the market, if not for anything else.......

Read - Mint

RBI needs to take 'calculated risks' and cut rates

......It is time the Reserve Bank gets rid of its obsession with the inflation numbers, while completely ignoring grave situation thrown in by constantly decelerating industrial growth, Assocham President Rajkumr Dhoot said. "We would urge the RBI to stop taking baby steps, if at all, and go in for calculated risks to revive the industrial output," he said......

Read - ET

Government mulls financial products to dampen gold demand

The government and financial sector regulators-the Reserve Bank of India and the Securities and Exchange Board of India -are in discussions to launch financial products intended to discourage demand for gold in its physical form and excessive speculation in real estate...........

Read - ET

Kangra Co-op Bank adopts RTGS

......Kangra Bank is the largest urban co-operative Bank of the National Capital Territory of Delhi. It is said to be the first Co-operative Bank not only in NCTD Delhi but also in northern region of the country to have joined RTGS network run by the Reserve Bank of India......

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RBI approves reappointment of Ananthakrishna as Karnataka Bank chairman

Reserve Bank of India has conveyed its approval for reappointment of Ananthakrishna as part-time chairman of city based private sector bank - The Karnataka Bank Ltd a further period of three years, as proposed by bank's board of directors........

Read - TOI