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.
Saturday, November 17, 2012
Cooperatives are model for inclusive growth: D Subbarao
Fall in share of co-ops in farm credit a concern: Subbarao
The declining share of co-operatives in agriculture credit is a cause for concern, RBI Governor D. Subbarao has said. “Until the early 1990s, cooperatives provided almost 62 per cent of the agriculture credit in the country. But over the years, their share has declined, going down to 16 per cent by 2009-10,” Subbarao said at a conference on co-operatives in Pune. Co-operatives are institutional set-ups where people come together and pool their resources to attain mutually profitable outcomes..........
Mr FM, managing banks is best left to bankers
.....After failing to push the RBI to toe his line on cutting rates, Chidambaram now seems to be resorting to different tactics. After all, his ultimate aim is to see a fall in interest rates. But this is sure to have disastrous consequences on the business of banks, which are already reeling under the adverse impact of government interventions.......
RBI, finance ministry split wide open
A day after finance minister P.Chidambaram prodded the Reserve Bank of India (RBI) to speed up the process of licensing new banks, governor D.Subbarao said on Friday that the central bank would do so only after making sure that the groundwork is in place and all “enabling conditions” are met. The RBI chief’s remarks seemed to indicate a widening divide on policy between the finance ministry and the central bank, which have also differed over the timing of interest rate cuts to prop up sagging economic growth...........
No new banking licences without legal backing: RBI Governor D Subbarao
PUNE: A day after Finance Minister P Chidambaram asked the Reserve Bank to speed up the process of issuing new bank licences, Governor D Subbarao today said it would be not possible without fulfilling the enabling conditions for the same. "We have been preparing for launching this process (of issuing new bank licences) but all the ground work, all the enabling conditions for launching this work have to be fulfilled," he told reporters on the sidelines of a function here........
In reverse order
......... The RBI has all through been maintaining that it needs to be empowered suitably before licensing new banks, especially those promoted by large corporates who should not be allowed to view them as captive fund pools. If the Government was really keen that new banking players be allowed – which it still is – there was nothing stopping it from amending the banking regulations as desired by the RBI. It can still do so, rather than try and browbeat the banking sector regulator.
Bancon 2012 in Pune on November 24-25
.....BANCON 2012 will be inaugurated by Finance Minister P. Chidambaram RBI Deputy Governor Subir Gokarn is expected to give a special address on India’s gold import problems and suggest solutions........
Inflation dip will be gradual, says RBI’s Chakrabarty
Inflation may have hit a nine-month low of 7.45 per cent in October, but concerns over price rise have not ended. K.C. Chakrabarty, Deputy Governor of the Reserve Bank of India, said that inflation cannot come down all at once. “It (inflation) is today at (around) eight per cent. It will not come down at one go. It will go down gradually,” he said on Friday after meeting the Chief Ministers of the northern States..............
Subbarao warns against non-inclusive growth, casino banking
.....Inaugurating two-day international conference on 'Leveraging cooperative advantage', organised by the RBI-run College of Agricultural Banking as a part of International Year of Cooperatives of the UN in Pune, Subbarao said, "The recent financial crisis has taught us some very important lessons. "The general disenchantment with 'casino banking' in certain developed economies underscored the dangers of over-financialisation of the real economy," Subbarao said. Casino banking is the practice whereby a commercial bank engages in unduly speculative or risky financial activities with the aim of achieving high profits.......
FM proposes, RBI disposes on licences
....The finance minister reasoned on Thursday that “the power or the authority” which the RBI wants is already available in the other provisions of the law and with the central bank’s own regulations and guidelines for new banking licences. “We are only formalising them by amending the Banking Regulation Act. And I have assured RBI that the Act will indeed be amended, hopefully in the Winter Session of Parliament, and if not in the Winter session, then in the Budget session.” The minister also said that even if the RBI proceeded to receive applications and process them, the first banking licence was not likely to be issued in the next 6-8 months. “So by the time the licence is issued and the banks come into existence, the Act would have been amended.” Subbarao proffered a correction, saying it will take at least 8-9 months to issue the first new bank licence if the Act is amended in the Winter Session which begins on November 22..........
'MSC bank not yet eligible for licence'
PUNE: Reserve Bank of India (RBI) Governor D Subbarao said on Friday that the apex bank was still working on measures to make the Maharashtra State Cooperative (MSC) Bank eligible to apply for a banking license. "There are some issues regarding the credit and debt recovery and the bank is working on it," he said while speaking to reporters after delivering the keynote address on leveraging cooperative advantage at the two-day international conference on cooperation. It was organised at the city-based College of Agricultural Banking.............
Learning from the HSBC mess - G Sreekumar & L Prakash Sai
.....While “tailoring banking solutions to suit individual needs” and “personalising services”, banks need to ensure that they do not tread on legal and regulatory requirements. It may be “one world”, but jurisdictions are many, and being present in several at the same time entails having to tailor ones processes and compliance to meet stringent requirements across the world........
Sreekumar is General Manager of the Reserve Bank of India, currently on sabbatical at the Indian Institute of Technology, Madras. Sai is Professor at the Department of Management Studies at IIT Madras.
Read - BS
RBI officials skip meet on mining issue
PANJIM: The Reserve Bank of India, which earlier had agreed to visit the state and talk to the banks about the restructuring of loans of truckers who are suffering due to the mining recession, did not visit the state, and have apparently withdrawn their resolve for the moment. The news comes close on the heels of the State Government committee, which was tasked with the job of collecting information of aggrieved truckers itself admitted that most of the trucks were either owned by mining companies or illegally owned by government servants, policemen, politicians with less than one-fourth of them being genuine sufferers. The Regional Director of the Reserve Bank of India did not visit the state as scheduled indicating that the RBI had withdrawn its gracious hand........
Problems in opening bank accounts are being addressed: FinMin
NEW DELHI, NOV 16:
In the backdrop of complaints from states that people are facing difficulties in opening bank accounts using Aadhaar card, the Finance Ministry on Friday said the issue is being addressed through organising mass camps for the purpose. “States’ concerns were very valid that account opening is difficult, which we admit that there is difficultly. So the idea would be to admit the problem and then find a solution. We are going ahead with that,” Financial Services Secretary D K Mittal said here...........
A deluge of offers
Almost everyday we wake up to the news that RBI has begun easing liquidity in the financial system. Over the last few weeks, it has reduced the CRR by 50 basis points or 0.50 per cent, thereby infusing liquidity to the tune of Rs.35,000 crores into the banking system. As we all know, CRR is Cash Reserve Ratio, a percentage of amount that all banks will have to deposit with RBI as per the rates prescribed by the central bank from time to time.........
India Inc wakes up to Indian Ink
....Sectoral regulators such as Sebi, Reserve Bank of India, oil and gas regulator Directorate general of Hydrocarbons and telecom regulator TRAI, pharma regulator etc are covered by the Act and have designated chief public information officers to address RTI queries. Many of these regulators including RBI and Sebi are putting in constant efforts to put up a significant portion of their dealings in public domain through their respective websites......
A tax formula to beat inflation
.....If the RBI Governor D. Subbarao had studied engineering and not physics in the IITs, he would have known that engineers often use a three-term control system — the first to control the function, the second to control the integral of the function and the third to control the differential of the function. In economics, that would have been taxing incomes, wealth and change in incomes. For some reason or other, economists are interested only in taxing incomes and wealth and not changes in income. That is a pity because inflation is directly related to increases in (money) incomes. Theoretically, if changes in incomes are taxed, inflation should tend to become zero........
FDI in banking
It is evident that the RBI, which is the regulator of the banking sector, had a strong case for issuing elaborate guidelines on bank ownership to ensure diversification. Those reasons retain their relevance even today. So there is no case for altering them, especially if the evidence suggests that accessing foreign equity, if needed, to enhance the capital of banks is possible within the current regulatory framework..........
Subscribe to:
Posts (Atom)