......To begin with, there is no nationality specification. The ad does not say that the governor would have to be a British citizen. Which means, in theory, that central bankers or senior finance professionals from other countries could also head the Bank of England. For example, YV Reddy, Usha Thorat or Montek Singh Ahluwalia could, if they wished, become serious contenders. Another striking feature, at least by Indian standards, is how early the British government is going about finding a new governor. In India, even for the most senior positions, advance succession planning is taboo. The incumbent would be on extension for months or the post would be vacant for years before the relevant selection process gets completed. ......
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 27, 2012
How Rao made Manmohan India’s ‘accidental reformer
‘One Rank, One Pension’ a continuing process: Ministry
......The sources said the overall aim of the package was to cover the gap in a phased manner. It was the third time the government increased pensions of ex-servicemen after the Sixth Pay Commission recommendations had been implemented in 2008. “Every ex-serviceman has benefitted from this latest exercise, which has several measures aimed at enhancing the pension of pre-2006 persons below other ranks (PBORs) pensioners and family pensioners.” This would benefit about 13 lakh pensioners, the total cost entailed being Rs. 1,400 crore......
My View on "Updation of Pension for RBI retirees"
The latest affidavit confirms Bank’s intention to stand by the March 1992 circular committing updation of pension as and when salaries of serving employees are revised. The technical hurdle created by GOI at some stage is sought to be removed by amendment to RBI Pension Regulations, 1990 approved by Central board and forwarded to GOI in October 2011. One hopes this gets sorted out fast and the already approved revision of Family Pension is given effect to fast. Another plea I would like to make to the Governor is to be merciful and grant some reasonable rise in the Ex-Gratia paid to pre-1986 retirees (youngest among them would be nearing 85 now). This institution can afford these costs.
M G Warrier
Egg-proofing inflation
The new Chief Economic Advisor Raghuram Rajan’s argument that inflation is being fuelled by people who have become rich and are demanding food products such as milk, eggs and meat rather than cereals (Business Line, September 26) may be right theoretically, but his solution will help only the rich, in whose household budget food items have low share. The more immediate priority should be to address the impact of price rise on the majority of Indians who spend more than 70 per cent of their earnings on food, shelter and healthcare.
M.G. Warrier (HBL)
Banks Plan Common Job Interviews
20 lenders may give Institute of Banking Personnel Selection the interview mandate; SBI will not be part of it
It may become a lot easier to get a job at nationalised banks. Banks are planning to have a common interview that could open up opportunities in one go in many banks for candidates, who now have to give multiple interviews for jobs in various banks. Public sector banks, which recruit about 30,000-40,000 people a year on an average, expect to save time and cost once this common interview becomes a reality. As many as 20 banks are expected to give the mandate to Institute of Banking Personnel Selection, or IBPS, to conduct the common interview on their behalf.......
OUTSOURCING OF BANK JOBS – BENEFITS AND RISKS
Nowadays, we very often hear about outsourcing of bank jobs in India. What are their implications and intricacies? What are the benefits accruing and risks involved, if we encourage it? Why do the Trade Unions oppose it tooth and nail? Why are the Government of India, Reserve Bank of India and Indian Banks Association very particular about outsourcing of bank jobs?..........
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It is a fake money, Honey!
......RBI spokesperson Alpana Killawala said, “Counterfeit notes land up at the RBI from sources such as banks and individuals who come to exchange money. “But central banks all over the world try to stay ahead of forgers; introducing plastic notes is an effort in that direction.”......
Cheque clearance through email
Reserve Bank of India General Manager M. Dash on Tuesday said that the bank was taking banking technology to new heights by introducing a unique system of cheque clearances through email. Speaking at an awareness programme on payment of taxes of the State government through e-mode, Mr. Dash said the mail system for cheque clearances was already introduced in Hyderabad on a pilot basis this year and it was proposed to cover the entire State by the end of next year. As the first step, the RBI had involved 20 banks based in Hyderabad for the mail-aided cheque transactions.......
Read - The Hindu
‘Adhesive man’ glues technique to daily life
......“Prime Minister Indira Gandhi was not impressed by the colour of the note we presented and asked us to go to the RBI Governor. But surprisingly, Dr Manmohan Singh okayed the note within seconds.” ......
Now, ATMs that scan your hand to shell out cash
TOKYO, SEP 26:
Forgot your ATM card at home? No worries, this Japanese machine will scan your hand and give cash. A regional bank in Japan on Wednesday started operating ATMs for cash withdrawals, deposits and balance inquiries that do not require plastic cards but instead identify account holders by scanning their hands.......
Making the case for Financial Literacy – Understanding and Addressing Challenges
......Many institutions such as FINO tried to fill this gap, including, which provides a “last-mile” or doorstep banking service through their BC network to clients who don’t have access to formal banks. Despite this effort, low levels of literacy and financial awareness are still impediments to NPFFI goals. Therefore, RBI initiated ‘Project Financial Literacy’ to disseminate information about financial services and products to groups including rural and urban poor, which was undertaken by many institutions using the classroom based FE format, though this format has inherent challenges:......
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Microfinance India – State of the Sector Report 2011
ACCESS Development the publisher of the Microfinance India – State of the Sector Report has made it’s latest annual report available for free download. The 2012 Microfinance India report will released later this year at the 9th Microfinance India Summit 2012.
Agriculture back in focus as growth estimate gets downgraded by banks
......From Morgan Stanley to Citigroup to Standard Chartered and the Reserve Bank of India, nearly every other bank has downgraded India's growth estimate citing a possible poor farm output which is compounded by the global uncertainty owing to the sovereign crisis. It is a reflection of the hard reality that agriculture, notwithstanding its low contribution to the GDP, will remain significant enough for the overall growth just because of the sheer population that it supports......
RBI to take up deposit-to-equity proposals by UCBs
The Reserve Bank of India will consider financial restructuring proposals of stressed urban co-operative banks (UCBs) involving conversion of deposits into equity or debt instruments. This move comes as financially stronger banks are unwilling to acquire weak UCBs, where the deposit erosion is large. In such situations, restructuring of the liabilities (deposits) of the weak UCB may be a viable proposition, said the RBI......
RBI may hold rate in Oct policy
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"In the last two years, we have been able to bring down the rate of inflation but I admit that inflation is still high and it should come down further,” RBI governor Subbarao said at a function in Himachal Pradesh yesterday. Market participants said while RBI will be keen to support growth, a rate cut is not imminent and the central bank will continue to infuse liquidity so that credit flow to the productive sector is not hampered.......
Banks entice customers to buy gold with special schemes
Despite the RBI discouraging consumers from buying gold, banks under its purview are enticing consumers with schemes to buy gold. For example, SBI group banks, including State Bank of Hyderabad and State Bank of Travancore, have devised special loan schemes to buy gold. These banks have tied up with over 37 jewellery retail brands across the country “of a certain standing” and offer loans to buy gold jewellery from these shops. The jewellery will be deposited with the bank till the consumer pays off the loan.......
RBI allows NRIs to pick-up shares, debentures at face value
......"It has been decided that in cases, where non-residents (including NRIs) make investment in an Indian company in compliance with the provisions of the Companies Act..., such investments may be made at the face value subject to their eligibility to invest under the FDI scheme," RBI said in a circular.......
India yet to see any fallout from QE3, says RBI's Gokarn
......Answering a question from Business Standard on the sidelines of the annual India Investment Forum in New York, Deputy Governor Subir Gokarn said: “To the extent that they have an impact on domestic dynamics, either on growth or inflation, that’s something we’ve got to take into account.”......
Barclays to shut three branches in India
......However, it is not yet known whether the bank will have to face some regulatory issues as the closure of branches are located in non-metro areas. Typically the Reserve Bank of India (RBI) allows a foreign bank to open an urban branch once it opens a rural/semi-urban branch and vice versa. The source said all the factors would have been taken into account before the announcement, but conceded that the wishes of RBI, which has been persistent in taking banking to the hinterland, may have prompted the opening of branches in such places.......
RBI extends deadline for mandatory forex clearing to January 1
The Reserve Bank of India has asked the local currency market association to defer the deadline for mandating that lenders route their forward trades through a domestic clearing house by three months, market participants told Reuters. The new Jan. 1 deadline gives players time to iron out concerns that some foreign banks have over terms such as potential default liability exposures and capital charges in settling at the clearing house......
Read - ET
I don’t know if the economy has bottomed out: Rajan
......What is your outlook for inflation?
Core inflation, which the RBI (Reserve Bank of India) generally looks at, is in the 5-5.5% range; with some help it can be brought below 5%. What has proved harder so far is the CPI (consumer price inflation) which includes substantial food elements, which have been on an upward trajectory, where the supply-side constraints are significant. ......
Bank credit trails services boom
......This highlights the somewhat lopsided flow of credit to the service sectors, prompting the Reserve Bank of India to now lay fresh emphasis on the need for banks to go into the interiors — to nondescript towns and cities — and expand credit linkage in those areas. The added incentive being that providing loans to these segments, particularly for productive purposes, could also help in addressing the issue of retail inflation.......
NBP approaches RBI to open up branches in India
The National Bank of Pakistan (NBP) has formally approached the Reserve Bank of India (RBI) for the opening of two branches in India with a view to facilitate trade between the two countries, sources in the banking industry told The News on Tuesday.......
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