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| The meaning and significance of RBI marching together with the government is that the former takes charge of two flanks — inflation control and a sustainable exchange rate |
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.
Friday, October 19, 2012
RBI, Govt must move in sync - S.S.Tarapore
'80% bank grievances owing to lack of proper communication'
RANCHI: Reserve Bank of India (RBI), the Banking Ombudsman for Jharkhand and Bihar, on Thursday disclosed that over 80 per cent banking grievances from customers are due to lack of proper communication either on the part of the customers themselves or the bankers. The ombudsman also suggested that customers should be careful enough while signing papers during transactions with the bank, especially when taking loans. The customers were also warned of replying to any email or SMS which tell them about cash prizes that they have won.......
Army School wins RBI quiz
SHILLONG: The Army Public School of Shillong won the Shillong edition of Reserve Bank of India’s all-India RBI Inter-school Quiz on Wednesday. The boys’ team led by Ankur Das and Sachit Krishnan outsmarted other six finalists in the contest. There were 42 teams in the elimination round held at St. Edmund’s College Auditorium. Urban Affairs Minister, Ampareen Lyngdoh, gave away the prizes to the winner. The team also entered the semifinals for East Zone. Barry O’Brian conducted the event. Sanjiv Bokil, DGM, SBI, Shillong gave away cash prizes of Rs 5,000 to winner and Rs 4000 each to two runners-up teams.
The Shillong Times
14th Finance Commission: Union Cabinet nod for setting up panel
NEW DELHI: The Union Cabinet on Thursday gave its nod to setting up of the 14th Finance Commission and also finalised its terms of reference. Former RBI Governor Y V Reddy is tipped to be the chairman of the Finance Commission, a Constitutional body. The Commission, set up after every five years, decides the formula for sharing of central revenue between states and centre...........
Who wants an expensive hedge?
....RBI’s role is thus to ensure a non-volatile rupee, educate borrowers about risk management, wean them away from the ephemeral benefits of unhedged exposure and urge banks to use more caution. RBI in its mid year credit policy of October 2011 had warned banks about this corporate tendency to remain exposed. It urged banks to recognise the credit risk in lending to corporates who had unhedged foreign loans on their books. Unfortunately, if domestic lenders shy away, the foreign and offshore dollar lenders will show up on the doorstep of such borrowers.....
Read - FE
RBI still cautious; govt likely to be kept waiting for rate cut
.......The RBI, however, is not yet satisfied with the government’s fiscal consolidation measures and awaits more steps to reduce the deficit before it pulls the trigger on rates, officials close to policymaking said. “There will always be pressure from the ministry, but we have to be clear in explaining to them the problems on inflation,” said one RBI official, who declined to be identified due to the sensitivity of the matter.............
New banking licences: Clear the dead wood first !
........It may be recalled that a little more than two years ago, the then finance minister Pranab Mukherjee announced that licences will be given to private companies to set up commercial banks. It has taken quite some time to prepare the draft licensing norms but the final version may take some more time since the Reserve Bank of India (RBI) wants to have adequate powers to directly intervene in the newly-established (and licensed) banks should they act out of step with its direction and or act in an unacceptable manner.......
Banks may need more capital than RBI’s estimates: Rangarajan
.....Financial innovation, the periodic entry of new banks and better planning by banks are the need of the hour to keep pace with the growing needs of the economy, C. Rangarajan, Chairman of the Prime Minister’s Economic Advisory Council, said. Addressing a gathering at an award function to felicitate the top performing financial institutions in the country, the former Reserve Bank of India Governor said the Indian banking system is in a good shape. However, there is a need to be watchful and plan well in advance to match the requirements of a growing economy, he added......
RBI seeks sops for remitting profits
NEW DELHI: The Reserve Bank of India (RBI) has asked the finance ministry to provide incentives to Indian companies that have invested abroad to repatriate a part of their profits to India, in a bid to increase the quantum of stable foreign inflows compared with borrowed funds that have become the mainstay of India's capital flows. .....
Read - ET
Upto Rs 2 cr in agri loans to qualify for priority sector status
The Reserve Bank of India (RBI) has revised lending norms under which loans up to Rs 2 crore to agricultural companies will qualify for PSL (priority sector lending) status. Under the revised norms, any lending, with an aggregate limit of Rs 2 crore, by banks to corporates including producer companies of individual farmers, partnership firms and co-operatives of farmers in agriculture and allied activities like dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture, would qualify for priority sector lending.........
Are you ready for prepaid cards?
........Using prepaid cards instead of cash is much convenient for carrying, management and tracking. Besides you tend to remain within your budget and spend the calculated amount. With wide acceptance, prepaid cards are easy to use.Aadhar-enabled micro-ATM delivers money to villagers
......Unique ID Authority of India in collaboration with United Bank of India and Tripura Grameen Bank today undertook field trial of Aadhaar-enabled payment system with online authentication of biometric of the beneficiaries in Mandwi Block. "Our endeavour was successful today," Dinesh Mushahary, Chairman of Gramin Bank Tripura, who was present during cash transfer, said......
Read - FE
The RBI and its inflation dilemma
..............Although the clamour for a rate cut is high and it has a direct impact on sentiment, a comfortable liquidity situation this year has resulted in a significant fall in market interest rates and the cost of funds for banks. So even if the RBI is unable to cut the repo rate on Oct. 30, we still expect market interest rates and funding costs to remain benign as the RBI would infuse further liquidity into the system through CRR cuts or open market operations......
Inflation vs growth: Stiglitz is wandering in the wrong continen
...........For instance, in response to a question on whether the Reserve Bank of India (RBI) should continue or abandon its tight monetary policy which, intended to tame inflation, has seemingly stifled growth, Stiglitz say:
“In my view, (the) adverse effects of inflation are a bit exaggerated. 8% inflation is normal in a developing country whereas growth has the ability to keep millions (fed), creating jobs and opportunities. Raising interest rates is unlikely to make a ‘big’ dent on inflation. In a trade-off between growth and moderate inflation, I would plump for growth.”.........
RBI must cut rates to prop up growth, say bankers
............All eyes are on RBI Governor D Subbarao who is to unveil the second quarter monetary policy on October 30. While there is growing optimism that he may walk with the government following the rash of reform measures in the past one month, the latest inflation numbers have poured cold water on any such hopes.........
Rethinking RBI recommendations for microfin institutions
.........We conclude by acknowledging RBI’s intention to effectively protect the microfinance clients, while providing them the benefits of access to credit and other financial services. However, much debate surrounds on how to achieve this goal and what trade-offs be made between expansion of services, customer protection, and institutional requirements.
Functioning of SAT sans presiding officer challenged
....The procedure for appointment of a ‘member’ of SAT requires the presiding officer to be a part of the Selection Committee. The remaining two members of the Selection Committee are the Governor of RBI or his nominee, and the Secretary/Finance Secretary, Department of Economic Affairs..........
No probe ordered into Wal-Mart: Govt
...The Financial Times said the Commerce Ministry last week asked the Reserve Bank of India (RBI) to investigate allegations that the world's largest retailer had "clandestinely and illegally" invested in supermarkets in the country. The accusations were made by a Communist Party member of parliament in a letter to the prime minister. An Ministry of Commerce and Industry official, who declined to be identified, said the ministry had forwarded the complaint on October 10 to the RBI for examination, but said the ministry had not asked for a formal probe into the matter.......
Banks to become EC's eyes and ears during polls
.........In a communication to the Indian Banks’ Association, the poll body said it was empowering district election officers (DEOs) to ask for this information, to maintain purity in the election process. Earlier, the ECI had brought the income tax (I-T) department into the web of information sharing on money transactions relating to polls. Banks would also have to furnish information on unusual transfer of amounts through the Real Time Gross Settlement System (RTGS), an electronic payment channel. They’ve been told to watch movement of funds from one account to several others in a district or constituency without any precedent for such transfer. Any cash deposit or withdrawal exceeding Rs 1 lakh from a bank account of a candidate or spouse or dependents mentioned in the poll affidavit filed by candidates also comes under the ambit...........
Lokayukta registers FIR against Manda Thete
........Notwithstanding the fact that a case was already registered against her, five officials of the bank entered into an understating with her and settled the issue in return of Rs 53 lakh. According to the SPE officials, the legal advisors submitted a false legal opinion to the bank that paved the way for clearing obstacles in the settlement. "Reserve Bank of India ( RBI) and state government rules forbid any such settlement on defaulted loans, that too when a criminal case has already been registered," said the SPE officer.
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