Govt gets it wrong on CRR - A.Seshan

......During the time when I. G. Patel was Governor (December 1, 1977 to September 15, 1982) there was a reference from the Ministry forwarding a parliamentary question (if I remember well) suggesting that the Annual Report of the RBI might be submitted to Parliament instead of Government. At the instance of the Secretary’s Department, I examined the issue from the broader point of view of central bank autonomy, taking into account the position obtaining in other countries. I pointed out that even in the US, autonomy had been eroded in that the Chairman of the Fed had to appear before a Committee of the Congress to justify monetary policy. What was more interesting was that the US Fed had already come to be subjected to public audit with the exemption of its open market operations. The RBI should trace and study the relative note in its archives with the remarks of the Governor........

Read - HBL

Bankers of Kanpur form club

................ The club was inaugurated by Regional Director, Reserve Bank of India Kanpur K R Das on Tuesday on the RBI campus in the presence of senior functionaries of major commercial banks in the city.  Deputy General Manager RBI Kanpur Anup Kumar said the club had been formed to encourage, promote and foster a spirit of solidarity, service, brotherhood and co-operation amongst bankers and to devise ways and means for betterment of commercial banks in the city.

Read - TOI

Reversing car kills 79-year-old woman

......Police sources said the driver of the car was backing up when the vehicle hit Indira. An investigating officer said Indira was standing in front of her house in the RBI quarters in Poonamallee when the accident took place.  "She did not notice that Ramasubbu Reddy, a Deputy General Manager in RBI, Chennai, was reversing the car," .......

Read - TOI

RBI conducts expo on foreign exchange

Kakinada : Observing that there was a tremendous increase in the use of foreign exchange in the last two decades, Regional Director of the Reserve Bank of India (RBI) A.S. Rao on Friday underscored the need for having basic knowledge on banking services with regard to the foreign exchange among all sections of the society. The RBI conducted an ‘exhibition-cum-interface on foreign exchange’ at Jawaharlal Nehru Technological University Kakinada (JNTUK) here. Inaugurating the programme, Mr. Rao recalled that India faced severe shortage of foreign exchange in 1991, which was followed by the introduction of economic reforms...........

Read - The Hindu

RBI scheme yielding result in Agency

Reserve Bank of India Regional Director A.S. Rao has said that the financial inclusion scheme is yielding the desired results in the Agency after the lead bank (Andhra Bank) adopting Devarapalli village in Maredumilli mandal. Addressing a meeting at the village on Friday, Mr. Rao said that the bank achieved the target by advancing loans to 232 persons in the village and the literary percentage crossed 60 per cent........

Read - The Hindu

Women reach the top at state-owned banks

.....Women have relatively better representation in banking compared to the corporate sector. Part of the reason for this is the recruitment through competitive examinations, which gives women as much chance to get a job as men. India has not yet had a woman heading the central bank, although there have been three women Deputy Governors — Kishorie Udeshi, Shyamala Gopinath and Usha Thorat — all of who have now retired......

Read - TOI

RBI’s decision not to cut interest rates is unlikely to jolt the government

....By not cutting rates, what the RBI has done is to send out a very strong signal. However, it is unlikely that this will jolt the government into change. The result is that the economy is caught in the bind of high inflation and low growth for the year ahead as well........

Read - ET

Who will blink first?

.......Differences between the finance ministry and RBI on their diagnoses of economic challenges are not uncommon, but a public rebuke of monetary policy by the finance minister is unusual. Subbarao, though, plays down the perceived differences with Chidambaram. "We have shared goals. Both of us want high growth and low inflation." he told Business Today in an interview a day after the policy review. The public airing of differences perhaps works to RBI's advantage......

Read - Business Today

No turnaround without asset creation, say experts

......There was one important person who did not share the euphoria. RBI Governor D Subbarao, the man in charge ensuring price stability, growth and financial stability (including currency stability). The central bank has its ears closer to the ground and is any day a better judge than any of the other financial market participants, both public and private. A veteran central banker Subbarao has experienced many such ‘flash in the pan’ movements and knows its end results. Like a seasoned banker he has chosen his words well when he highlighted these concerns in his Second Quarter Monetary Policy statement where he said ‘Domestically, a revival in investment activity, which is key to stimulating growth, depends particularly on the recent policy announcements by the government being translated into effective actions.’ In other words what he is telling the government is announcements are fine, but you need to convert them into action......

Read - BS

'People are making too much of the finance minister's response'

.......I don't feel very lonely. I think people are making too much of the finance minister's response to our policy action. After all, we have shared goals. Both of us want high growth and low inflation. And there is a division of responsibilities. There is a point of view that we must walk together. But, you know, what is called walking together is understood differently. I think that will be resolved in the course of time................

Read - Business Today

India will stand out in Asian region if RBI cuts rates: Rajeev Malik, CLSA

... I continue to have a rather non-consensus view that much of the recent optimism on the rupee is still very much misplaced that we do think over the course of 2013 stronger dollar is going to play out and given the fact that RBI will be cutting interest rates, at least in our view the Indian rupee is actually going to go weaker. .........

Read - ET

RBI issues guidelines on liquidity managemen

The Reserve Bank of India (RBI) on Tuesday said banks should fix a lower limit for their IBL (inter-bank liability). “The IBL of a bank should not exceed 200 per cent of its net worth as on March 31 of the previous year. However, individual banks may, with the approval of their board of directors, fix a lower limit for their inter-bank liabilities, keeping in view their business model,” RBI said in its final guidelines on liquidity risk management..............

Read - BS

ONGC blanks RBI

New Delhi : Defending champion Oil and Natural Gas Corporation (ONGC) warmed up with a 5-0 victory over Reserve Bank of India (RBI) in a preliminary league match of the All-India Public Sector football tournament on Thursday.

Hindu

Gaming the rupee

.....The foreign exchange market could make 5-10 per cent and its gains would be relatively better protected if the RBI is in a stronger position to protect the rupee from contagion. This situation happened in early 2000s as is seen in the chart........

Read - Indian Express

Youth moving away from agriculture, says Heggade

....Campco president Konkodi Padmanabha said that according to the data provided by the Reserve Bank of India (RBI) on farm lending in the country, the share of nationalised banks stood at only 44 per cent and co-operative banks at 56 per cent. This called for introspection by the nationalised banks about their role as promoters of agriculture. The Union government should take steps to encourage banks to lend more to the farm sector......

Read - The Hindu

Outstandings on credit cards up 22 per cent on higher plastic money use

Credit card outstandings are rising again, the way one saw them build up in the pre-crisis days of 2007 and 2008. This time, however, both the card issuers and users appear more prudent. Hence, it may not yet be a sign of any build-up of stress in the system, but an indicator of increasing use of plastic...........

Read - ET

Don’t bank too much on banks

There is a well-known story concerning banks; it says a banker is a person who gives you his umbrella when it is bright and sunny and, at the first sign of rains, he rushes to take it back. In other words, although a bank is meant to provide finance and extend support to its customers, in reality, it may not be so.........

Read - Moneylife

"INSIGHT – The 2nd Annual XLRI Consulting Conference"

XLRI Jamshedpur's Consulting Committee (CRUX) is organizing "INSIGHT – The 2nd Annual XLRI Consulting Conference" with the theme "Success in Uncertain Times - The outlook of corporate, government, and academia". It boasts of an audience of around 150 people, split almost between some sharp and inquisitive minds from XLRI, IIMs, ISB, S P Jain, NMIMS, NITIE, Jamnalal Bajaj, IITB and senior experienced people from the industry and the government.

The list of some of the eminent speakers for the conference is as follows:
· Mr. Jagdish Capoor, Former Deputy-Governor, RBI; Former Chairman, HDFC Bank; Former Chairman, BSE Ltd.........

Read.........