High fiscal deficit led to harsh steps: C Rangarajan, Chairman, PM's Economic Advisory Council

......C Rangarajan, a former Governor of the Reserve Bank of India and now the head of the PM's Economic Advisory Council, also warned that India's fiscal and current account deficits were high and the country risks international censure in the form of downgrades by ratings agencies if no action is taken to tame the deficits. "If we did not act now, there would be a much bigger problem ahead of us," said Rangarajan, an economist of international repute not usually known for alarmist talk.......

Read - ET

RBI took the right step ......... thanks to its Governor

...... Thus, a cash reserve ratio (CRR) cut is the most appropriate step that the central bank could have taken for the moment.......

- T V Gopalakrishnan Mumbai

......The Reserve Bank of India (RBI) Governor should be praised for his consistent policy stance. Thanks to his resolve, he has succeeded in persuading the fiscal authority to first act and bite the bullet on fiscal discipline before expecting the regulator to announce growth-inducing measures.......

- Raman Kumar Agrawalla Bhubaneswar

Read - BS

Wrong diagnosis

......The RBI’s obsession with fighting global cost push inflation by crushing domestic demand  gets revealed for what it actually is: Ignorance of basic economics cloaked in outmoded dogma and defended with arrogant obduracy. Publicly the UPA government has joined the chorus of praise the RBI for what it did not do. But if it wishes to save the economy and its  own chances of re-election in 2014 it would do well to persuade the RBI to see the error of its ways before October 30.

Read - Deccan Herald

D Subbarao’s point

The present RBI Governor, Duvvuri Subbarao, was finance secretary when 2G spectrum was allotted to new entrants at 2001 prices in 2008. Deposing before a parliamentary panel on Tuesday, he said that any so-called loss to the exchequer was dependent on assumptions and the numbers anyway were notional. He is correct......

Read - ET

Distance crunching

The shortening space between Mint Road and North Block

Read - BS

People cautioned against fake companies, notes and SMS

SILCHAR, Sept 18: In order to make people know about the growing menace of chit funds, fake currency notes, deceitful SMS and the various facilities offered by the banks, ‘Banking awareness programme’ was organized by Reserve Bank of India, Guwahati, and  NGO Arunodaya Sangha, at Gandhi Bhawan in Silchar on Tuesday.  A host of officials of the RBI and other banks graced the occasion along with members of the NGO......

......Arpita Biswas, Deputy General Manager of RBI, who was the chief guest, said chit funds grew where the penetration of bank was less. The fake financial non banking companies were functioning without the approval of RBI. She added to say several cases of fraud had been brought to their notice. She made it clear that no non banking financial company had been given permission by RBI to raise fund or receive deposits from people.......

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Financial literacy on RBI agenda

The Reserve Bank of India’s Agartala branch is working in tandem with the Tripura school education department to prepare a syllabus to impart financial education to students. RBI Agartala branch General Manager A.K. Pandey said the syllabus was being prepared for introduction at the school level because financial transactions and issues were changing fast over the past decade, thanks to new technologies. “During the past two decades, banking services as well as financial matters have undergone major changes. That’s why an awareness programme is required to educate people, right from their student days, about these services to ensure a convenient adult life,” Pandey said, adding that the state government was extending full co-operation to RBI in all matters. Pandey and RBI’s Banking Ombudsman in the Northeast, B.B. Sangma, who were at Udaipur, the headquarters of the newly created Gomati district in Tripura, spoke about the activities of the RBI banking ombudsman......

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ZSP Shillong 29th Freshers’ Social 2012

Shillong, Sept. 15, 2012: The Zou Sangnaupang Pawlpi (Zou Students’ Assn.) Shillong Branch held its 29th Freshers’ Social Meet 2012 today at Savio Hall, Dhankheti, Shillong. Pu Phiamphu Lianzalal Zou, Asst. Manager of RBI, Shillong graced function as the cheif guest.........

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RBI to organize inter school quiz on September 21

......Deputy General Manager, RBI, Anup Kumar said city schools have been invited to participate in the quiz. Students from class XI to XII would participate in the quiz. City-based educationists and administrative authorities have been invited to be a part of the quiz.

Read - TOI

CRR cut conceptually flawed

......As banking regulator apart from the monetary authority, the RBI is duty-bound to protect banks in the larger interest of the country. Though it is common to expect the government to own up to responsibility for governance, it is time the RBI lives up to its responsibility of protecting the health of banks.......

Read - HBL

Why a CRR cut?

......True, RBI’s task is difficult due to high government borrowings and inflation-induced distortions in demand-supply of capital. Government borrowings from the market to finance nearly two-thirds of its fiscal deficit are forcing RBI to constantly buy bonds. The measures taken last week do little to directly address the fiscal gap......

Read - Mint

Guj likely to have common BCA for financial inclusion

......“Every bank either appoints an outside agency or they go on their own for business correspondent programme. But for better penetration in the remote areas and achieve set targets, a common business correspondent for the entire state is being considered,”......

Read - BS

RBI for no agency business to private banks for three years

......In a letter to the Reserve Bank of India (RBI), the finance ministry has said that for the next three years no private sector bank will get the agency business of the centre and states, pegged at about Rs 20,000 crore......

Read - ET

We must encourage foreign direct investment rather than more debt

......The recent relaxations in the external commercial borrowings (ECB) guidelines announced by the Reserve Bank of India (RBI) favour soft, but potentially risky, options over harder, but more prudent, options.......

Read - ET

RBI mulling financial products to check gold imports

NEW DELHI: Concerned over rising gold imports, the Reserve Bank today said it is planning to come out with financial products on the lines of gold ETFs to give options to investors to take advantage of price movement in the precious metal. "...We can provide people with financial attraction of gold without them having physcally own it. That would in a sense reduce the pressure on imports. So ETFs are one such," RBI Deputy Governor  Subir Gokarn told reporters on the sidelines of a PHD Chamber event here.......

Read - ET

The M-Banking Leader

......After RBI removed the Rs 50,000-per-day cap on m-banking transactions, banks are trying to push this service to all corporate clients. What’s driving them? M-banking costs a tenth of what a bank spends at a branch for a similar transaction.......

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