MUMBAI: RBI Deputy Governor Anand Sinha today said the central bank is looking at a move under which a part of banks' statutory liquidity ratio (SLR) holdings can be treated in a way that it complies with liquidity norms under the Basel III capital requirements. "We are thinking on to how to work out a scheme under which a part of the SLR is treated as Basel III liquidity requirement," Sinha said at an event organised here by Care Ratings.........
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Tuesday, October 23, 2012
In spirit and letterhead
Inflation and interest rates are not the only issues exercising the Reserve Bank of India (RBI) these days. The incidence of fraudsters invoking the central bank has become frequent, too. So much so, in addition to running the standard warning scrolls on its website, RBI recently added a footnote to its official leatherhead. Written in English and Hindi, it says, “RBI never sends mails, SMSes or makes calls asking for personal information like bank account details, passwords, etc. It never keeps or offers funds to anyone. Please do not respond in any manner to such offers.”
BS
RBI’s ineffective communication
........Fed officials made all of 48 speeches in 2011, and have made 33 speeches so far in 2012. In contrast, the top brass of RBI officials delivered 70 speeches in 2011, and already another 70 so far in 2012. The RBI seems to be inspired by the Bank of England where the number of speeches in a year matches that of the RBI. There is, however, a difference. In the case of the RBI, the burden of communication (read speeches) is largely shared by the ‘big five’ (the Governor and Deputy Governors), and in rare instances by a few Executive Directors. In the case of Bank of England, apart from the Governor and directors, 10 Executive Directors and 10 members each from the monetary policy and financial policy committees share the burden..........
FINANCIAL LITERACY
The Department of Management Studies, Francis Xavier Engineering College, Palayamkottai, in collaboration with Reserve Bank of India and Indian Overseas Bank organized a Financial Literacy Programme recently. The purpose of this programme is to enable students understand RBI’s functions and role and its different schemes. RBI officials M.A. Khan and R. Sankara Subramanian were the resource persons, who spoke on the security features of currency and gave tips on identifying counterfeit notes. Samraj, Senior Manager, IOB was present. Dr. Jesiah Selvam, Dean, felicitated the resource persons.
The Hindu
Banking sector reforms is the need of the hour - M.G.Warrier
..........It has to be said to the credit of RBI that the central bank effectively brought to the fore the real issues and concerns of all stakeholders in the financial sector, about new banking licenses. In the present scenario, the central bank should take initiative to reopen the banking reforms agenda which was kept in the backburner after allowing some banks in the private sector during the introductory years of financial sector reforms..........Time For Action From RBI
..........Beside this, concerns related to India’s economic growth would also coax the RBI to play the role of a facilitator by cutting interest rates. Today, economic slowdown is a reality. This is reflected in the 5.5% economic growth in current financial year. India grew at 7% and more in last six out of eight years. The estimates of future economic growth are further adding to worries of policy makers............
Why RBI, FM are having tough time seeing eye-to-eye
......Government is keen to have accommodative monetary policy and strong rupee exchange rate to spur growth, control inflation and attract foreign investments. The other stake holders of the system are in wait to get resolution to these conflicts between FM and RBI as both walking in the same direction is essential to get the Indian economy out of its woes and remove the fear of sovereign rating downgrade. There is no alternate option at this stage and the best (and only) option would be for RBI to address issues related to growth while FM work overtime to address issues related to twin deficits and inflation. There is immediate need for role-change to walk in the same direction!........
RBI should leave rates alone
..........At this stage, intellectual honesty demands a confession. I listened to Y.V. Reddy’s wonderful lecture at the India Policy Forum of the National Council of Applied Economic Research. He mentioned that support given to the poor is called subsidy while it is called an incentive if given to the rich. It is a fact that most of us instinctively turn to reduction in and elimination of subsidies as solutions to the problem of high fiscal deficits. Seldom have we turned our attention to the efficacy of tax incentives given to the rich...........
Read - Mint
RBI to form quarterly policies; Interest rates main focus
..............If RBI goes easy on the monetary and interest rates, than perhaps the economy will see new funds floating about, and growth reviving again. But with the intellectual lockjam between the government and RBI, and the autonomous status being a crucial card, the situation will remain tense till October 30 when the policies come out.
Read - Daily Bhaskar
Tying up the inflation conundrum
..........The Reserve Bank of India (RBI) officially tries to maintain inflation at around 4% in the medium term, while maintaining growth prospects and allowing the currency to float as per the market and trying to reduce the volatility in currency price. It’s an admirable, if somewhat convoluted, set of macroeconomic stability goals. But the actual performance of India’s inflation seems to fly in the face of what its central bank is trying to do. We have consistently overshot 4%, and not just in the last couple of years. At least since 2005, inflation—
'Space for better monetary easing seems limited'
............The stickiness in headline and core inflation may prompt the Reserve Bank of India to maintain the policy rate in the upcoming policy review. However, in light of the seasonal pick-up in credit demand, RBI might consider reducing the CRR by 25-50 bps to support activity. With headline inflation expected to average 7.5-7.7 per cent in the current year, the space available for further monetary easing is likely to be limited to around 50 bps over the remainder of 2012-13.
The role of banks in project financing in India
......In India, local banks, both public sector and private sector, have been the only players in infra project financing (PF), with very little participation from international financial institutions (IFIs). This situation is not sustainable - with increasing demand for funds, and Indian banks reaching their prudential exposure limits, there is an urgent need for new instruments and new players in the financing market.......
Read........
Non-bank entities can set up ‘White Label’ ATMs
......Such non-bank entities should have a minimum net worth of Rs 100 crore as per the latest financial year’s audited balance sheet, which is to be maintained at all times, RBI said. In effect, non-bank entities will provide the banking services to bank customers in India, based on the cards (debit/credit or prepaid) issued by banks. Their role would be confined to acquisition of transactions of all banks’ customers and so they would need to establish technical connectivity with the existing authorised shared ATM Network Operators or Card Payment Network Operators, said an RBI release............
Mining crisis: Goa Chamber urges RBI to restructure business loans
Panaji: The Goa Chamber of Commerce and Industry (GCCI) is in talks with the Reserve Bank of India (RBI) urging restructuring of loans of businessmen from the state who hadborrowed money to buy trucks and barges, to ferry ore, reports PTI.......
Punjab National Bank to hire about 8,000 people
Tiruchirapalli: Punjab National Bank (PNB) today said it will hire about 6,000 to 8,000 personnel each year for the next few years and open 500 branches across the country in the current year. "We will be recruiting 6,000-8,000 personnel each year for the next few years," the bank's Executive Director S R Bansal told reporters here.....
De-jargoned | Securitization
.......
According to the Reserve Bank of India (RBI), the securitization market is primarily intended to re-arrange and diversify the credit risk away from the loan originators to a number of investors who can bear it, thus giving some financial stability and an additional source of funding. The main reason for undertaking securitization is liquidity.........
A plethora of courses related to banking
.....The banks fix an appropriate cut-off score based on the number of vacancies and applications received. If you manage to secure the cut-off score or more, you will be called for the subsequent rounds of recruitment process of the specific bank. Some banks like RBI and SBI conduct their own competitive examinations.......
Odisha forms panel to check financial fraud
.....Lately, there have been rampant incidents of some unscrupulous financial establishments and fly-by-night operators duping people, especially in small towns through chit funds, multi-level marketing schemes and collecting investment schemes. The frequency of such cases of fraudulent deals have been particularly high in Balasore in the state's northern belt where people have been more vulnerable to schemes offered to them in the guise of profitable investment. The finance department has felt that such unscrupulous individuals and entities take advantage of the loopholes in the existing legal provisions and the lack of clarity in roles of different agencies such as Union ministry of corporate affairs, Reserve Bank of India (RBI), Sebi and other agencies of Central and state governments.........
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