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.
Tuesday, September 18, 2012
Subbarao takes the middle path
RBI: Cautious, careful, correct
The stage was set by the government over the weekend with big ticket announcements - the diesel hike, the FDI opening up, the PSU divestment. All that was required, we are led to believe, to get the party rocking was the RBI " do its bit" to get the crowd on its feet and on to the dance floor. The " do its bit" concerned the one thing that corporate India has consistently asked the RBI to do - cut interest rates. That is the story that marked the weekend, built the expectations and raised the pressure on the RBI as it went into the mid- quarter monetary policy review on Monday. Fortunately, the RBI has not succumbed entirely........
Striking a balance
....The latest policy moves announced by the Reserve Bank of India (RBI) on Monday can be seen in tandem with the reform announcements from New Delhi last week. Together, they should improve investor sentiment in the short term. But not enough has been done to address the longer-term structural problems in the Indian economy....
RBI does minimum
......The RBI’s action should be seen as the absolute minimum it could do in order to express support for the apparent increase in activity from the Central government on reform and fiscal consolidation, without compromising the fight against inflation. Indeed, the RBI’s statement says as much. On its future course of action, the central bank says that “as policy actions to stimulate growth materialise, monetary policy will reinforce the positive impact of these actions while maintaining its focus on inflation management. Only this will ensure that the economy derives the maximum benefit from the recent, and anticipated, fiscal and supply-side policy measures.”......
CRR cut more potent than rate: PMEAC
......"The RBI has taken a cautious step. The latest data on inflation has not been encouraging...Under the circumstances, I believe this (25 bps reduction in CRR – cash reserve ratio) is the maximum the Reserve Bank could have done," ......
RBI issues guidelines on treatment of banks' illiquid assets
The Reserve Bank today issued draft guidelines on prudent valuation of banks' long-term assets which are illiquid in nature. "The prudent valuation adjustment for illiquid positions has assumed greater importance in the wake of the recent financial crisis," RBI said in the draft supplementary guidance.......
Water purifier donated to school lies idle
.....Mr. Subba Rao procured a purifier from Mumbai to donate to the school in keeping with his promise to provide safe drinking water to the students. The students with poor social and economic background, told Mr. Subba Rao during his visit to the school a couple of years ago, where he had studied up to VII standard, ......
RBI plays wait-and-watch game as politics dominates
......Considering the state of the Indian economy and governance, the reforms did not merit immediate rate action. Market and economy watchers should be patient and wait for FDI — “foreign direct investment” — approvals to go through. Perhaps Subbarao was watching the political game instead of succumbing to the excitement of the moment.......
CRR cut a welcome step in right direction: Montek
......"..What RBI has done is that they have acted in the market by releasing resources. It is the release of resources that will make an impact on the rest of the system. It is a step in the right direction, "......
Analysts says CRR cut indicates RBI's concern on growth
Analysts and economists have welcomed the RBI decision to keep the rates unchanged in view of the sticky inflation and increase the liquidity with a marginal CRR cut, saying an interest reduction is a bit too far off as the positive impact of the reform measures will take a while to materialise.......
Lending rate to pinch less
| RATE CUT MUST WAIT BUT DOVISH TONE IS HERE |
 “Given the comfortable liquidity and the recent reduction in deposit rates by banks, interest rates in general could be expected to trend downwards gradually”Chanda Kochhar MD & CEO, ICICI Bank |
 It is a positive move but not to the extent we hoped for. It shows that RBI is willing to respond. Our asset liability committee will meet tomorrow to take a call on interest ratesPratip Chaudhuri Chairman, State Bank of India |
 “Everyone was expecting a rate cut this time. However, RBI seems to be waiting for inflation to soften further. So, probably in the next 6 weeks or so, we can expect a rate cut. Banks have already started lowering rates and a cut by RBI next time will help consumers get relief”Rajeev Talwar Executive Director, DLF |
Read - BS
Sound strategy
......Without in any way discounting monetary policy’s role in supporting the growth revival, the RBI is categorical in stating that continuing inflationary pressures alongside risks emerging from the current account deficit and fiscal deficit constrain a stronger policy response to growth risks. Restricting monetary action to a CRR cut for now is a good idea.......
RBI is giving positive signal; repo cut may come in Oct
......The CRR cut will infuse around Rs 17,000 crore into the system and this infusion is not going to do wonders for systemic liquidity and bank credit growth. However, the CRR cut is definitely a precursor for policy easing in RBI’s forthcoming policy review in October 2012.......
Sorry, no gifts: Why the RBI held back on rate cut, again
......"As policy actions to stimulate growth materialize, monetary policy will reinforce the positive impact of these actions while maintaining its focus on inflation management," ......
Smiling Appa - The Boss
"Hearty GR
Archived..............."
This is a second shocking news within
a short time of two three weeks after sudden and shocking demise of Smt Anitha
Srinivasan GM RBI Chnadigarh. Shri GR Appa was my first boss (Staff Officer) when
I joined RBI in 1974. He was very witty and had a knack to extract the
work very smilingly from his juniors. I would always cherish fond memories of
GR. May God rest his soul in peace and give courage to his family to sustain
the shock.
- Ramakant Kulkarni
Ex.Member
of Faculty CAB Pune and Ex. GM NABARD Pune
Emerging Kerala: Submerged priorities
......Reserve bank of India (RBI) Deputy Governor Subir Gokarn was a lone sane voice in the sound and fury created by the indoor festival that was “Emerging Kerala” in Kochi. He said the state should exploit the inherent strengths while planning for economic development. Kerala has all the potential to develop at par with some of the developed countries.......
Currency time-bomb: Counterfeit notes galore with election in the corner !
......It would appear the very purpose of having test runs with Rs 10 polymer currency notes by the RBI was to see and assess the market reaction and, perhaps, introduce the polymer notes on a gradual basis, if and when a final decision is taken by the government. We need to take care of higher denominations rather than small notes !......
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