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.
Monday, December 17, 2012
Bank cartelisation: Customers’ response - S.S.Tarapore
‘Adopt camp-based model for opening of accounts by SHGs’
Reserve Bank of India Deputy Governor K.C. Chakrabarty has favoured a camp-based model for achieving the ambitious goal of bringing all the self help group members and SHG federations into the ambit of banking services. The model, he said, should be adopted in view of the existing complaints about difficulties faced by members in opening their bank accounts. Conduct of camps will ensure that members gathered at a single venue enabling completion of required formalities under the supervision of the officials of the Government and banks...........
‘Banking being brought closer to masses’
Deputy Governor of the Reserve Bank of India H.R. Khan, while formally launching financial inclusion and literacy programme at Nomula village in Nakrekal mandal said that efforts were being made to bring banking closer to the masses, as 30 per cent of the population did not have access to such facilities. The bank has adopted the village. Mr. Khan said as part of the efforts, business correspondents were being appointed to take banking to the doorstep of people, as opening an account was like ‘passports for financial development’. He conducted an awareness programme for the students of the local ZP High School on identification of fake currency notes........
Public private non-partnership
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| “I am the least qualified person to talk on capital markets because I am a fixed deposit person and not a fixed income person,” |
Growth: Lost between RBI and North Block
There is life beyond the RBI
............The Fed said it would allow inflation to run a little faster than its 2% target as long as unemployment remains too high. This is a reversal of nearly 100 years of Fed policy that had accorded paramount importance to price stability at the expense of concerns about shortfalls in employment and growth. Now, the Fed has said that it will give equal time to inflation and growth. Is Mr Subbarao listening or he will continue to go after inflation and capsize the economy boat? But Subbarao may surprise the core inflation gives the Governor some excuse to cut...........
Life exchanged...........
N.R.Iyer, Aged 68 years Retired Assistant Manager, Foreign Exchange Department, RBI passed away on 11-12-2012 after brief illness Will be fondly missed by Shuba, Sudu, Gayatri, Anand, Arjun And Varun.
TOI
Super regulator
.....Instances of the finance ministry’s attempt to act as a super regulator over all regulatory bodies in the financial sector are becoming increasingly common. This will destabilise the equilibrium deftly built by eminent individuals who headed the finance ministry and the Reserve Bank of India (RBI) in the formative years of financial regulation in India (there were few regulators in the financial sector, almost till the reform days), and consciously maintained by their successors till the recent past........
Candid confessions
.... the Reserve Bank (RBI) just won’t let West Bengal develop. “Everything we earn, RBI takes away. What is this RBI? I have empty vessels. What can empty vessels do?” .......
PSB should learn to say ‘no’: RBI
....."Knowingly you give money to some unviable projects. That is a governance issue...In many cases, our public sector bankers have forgotten to say 'no', except to small borrowers. A banker's first characteristic should be to say no," ........
Read..........
Read..........
RBI's new regime for NBFCs will discipline markets: Purwar
......The new rules by Usha Thorat have put in many onerous capital conditions, the NPL recognition from the current 180 days to 90 days like any bank, whole host of disclosures, not just credit rating, the usual disclosures which banks have to make but also disclosure on credit rating, any penalties by any regulator at any point in time. If an NBFC is over Rs 1,000 crore they must also disclose provision coverage, liquidity ratio, extent of financing of parent company products, off-balance sheet exposures, structured products, that all lot of money. Will NBFCs become weaker or stronger after these rules?.....
‘MFIs not mainstream channels for achieving financial inclusion’
HYDERABAD, DEC 15: Microfinance Institutions are not mainstream channels for achieving financial inclusion, said K.C. Chakrabarty, Deputy Governor, Reserve Bank of India. Speaking to newspersons here on Saturday on the sidelines of a conference on community based approaches for inclusive growth, he said the requirements for financial inclusion were very huge......
My View on "RBI received large number of credit card complaints against SBI, ICICI Bank in FY12: Government"
Customer Service Department in the Central office of RBI should ask banks against whom large number of complaints were received, as to the systemic improvements made, where called for, by the banks to avoid such a large number of complaints including action taken against the concerned staff whose negligence had resulted in the complaints.This is necessary as a large number of customers silently suffer and do not write to the Banking Ombudsman in the RBI and action on the lines suggested would take care of the suffering silent majority. Customer Service Department in the Central office should ask for special reports either quarterly or half yearly from the Ombudsmen in the regional offices to help them take action.
- A.Chandramouliswaran
Nagpur Municipal Corporation finally removes 25 pandals
NAGPUR: Acting on the high court's directives to the civic authorities, the anti-encroachment squad of the Nagpur Municipal Corporation and state public works department (PWD) removed pandals erected at RBI Quarters Square in Civil Lines on Saturday. The 25 organizations that were staging demonstrations for their various demands at these pandals were caught unawares by this swift action............
RBI rejects govt cheque over sign mismatch
MUMBAI: A cheque issued by the state government through the Reserve Bank of India (RBI) to a Bombay high court judge recently ended up being dishonoured.
That government bungling does not spare even a HC judge was evident
when the highest bank didn't honour the cheque, issued for an amount
less than Rs 3,000. The reason RBI cited for not clearing it was
signature mismatch........
BJP to oppose Banking Law (Amendment) Bill
....BJP is demanding that the government either drop the 'contentious' provision from the bill, or refer it back to the standing committee on finance, which had examined the bill. However, the government would like to take forward its long-pending financial sector reform agenda. Chidambaram had conveyed to BJP leaders — Sushma Swaraj and Arun Jaitley — last week the urgency for the passage of the banking law (amendment) bill, which will allow RBI to issue new banking licenses............
Oil cos told to consult RBI before buying dollars
...At a meeting with oil companies earlier this month, ministry officials told a team of senior officials from private and state-owned oil companies to keep the central bank in the loop when they buy dollar. RBI officials were also present in the meeting. "This could be in the form of an advance notice to RBI which, if necessary and depending on the flow, can sell dollar in the market to even out swings....This, perhaps, is the best possible option because the RBI has made it abundantly clear that it will not offer a separate window to help oil companies carry out off market dollar purchase," said a person who attended the meetings. ......
RBI policy, US fiscal cliff talks to dictate market trend: Experts
....."Uncertainty will remain on cards initially over RBI's policy and then over the US fiscal cliff," Vikas Jain, MD, Aditya Trading Solutions said. "We should see some correction this week, after breakthrough rally of past few weeks, as the central bank does not seem ready yet to cut rates on Tuesday," ........
A cautiously happy ending to 2012
..Apart from broad considerations of monetary policy, RBI also needs to review bank balance sheets with Basel-III implementation on the cards from January. The sector is under stress, with public sector banks facing serious pressure owing to rising non-performing assets (NPAs) and restructuring requests. Banks will need to raise huge sums over the next five years........
No-action policy ahead of January rate cut?
......If RBI refrains from a CRR cut and chooses to make it a no-action policy on Tuesday, the statement may sound relatively dovish and the central bank can aim at a deeper, half-percentage-point rate cut in January. There could be a CRR cut, too, then.........
Subbarao may have to Keep Rates Unchanged
.......Although the government has said it will lower subsidies through cash
transfers, there are doubts about the scale of its operations. Yet
another factor that will weigh on Subbarao's decision on Tuesday will be
the Federal Reserve launching QE3+, or quantitative easing, ie, printing of more US dollars to buy government bonds. If this stokes commodity prices, including crude oil, it may delay cuts
in India. But those worried about economic growth slipping to a decade
low of about 5% this year, from 9% a few years ago, believe that it may
be too late if the governor postpones a rate cut........
Chidu offers ‘bitter medicine’ but he should try some himself
..............When inflation is still high, the government should curtail its deficits, but Chidambaram has been pressuring the Reserve Bank to cut rates to revive growth. Instead of taking the bitter medicine of cutting non-productive expenditures which will create space for a rate cut, he has been pressuring the RBI to cut rates anyway. Who wants difficult decisions, when easy ones are at hand? Rate cuts are just sugary placebos, and Chidambaram is happy to have that instead of the bitter pill he has been tomtomming.......
PM says inflation at unacceptably high level
Ahead of the Reserve Bank of India’s (RBI’s) monetary policy review next week, Prime Minister Manmohan Singh on Saturday said inflation has risen to “unacceptably” high levels in the past two years, and it needs to be brought down to five-six per cent from over 7.24 per cent in November. However, bankers, including the largest lender State Bank of India (SBI), made a case for a cut in the repo rate................
Premature optimism?
...... All in all, look to tomorrow’s policy statement for what it says on the macro-economy and its global linkages. As for specific monetary action, the betting is on a CRR cut and that too mainly to mollify those arguing vigorously for a rate cut. By January next, the RBI has hinted that it might begin to ease interest rates. Hopefully, it will have clearer economic data to support its action.
RBI will likely wait again
.....Even at the time of half-yearly review of monetary policy in October, RBI Governor D. Subbarao, had mentioned that he did not expect inflation to start easing till the fourth quarter of the fiscal. He had kept his options of acting on the rate front in January if there were other helpful factors. There is some expectation that the RBI will once again tweak the cash reserve ratio to cater to the concerns on tightening liquidity. The CRR was reduced by 25 basis points from 4.5 per cent to 4.25 per cent with effect from November 3. At that time, the RBI had made it clear that the reduction was being done to pre-empt a prospective tightening of liquidity conditions........
Choice is between 25 bps cut in CRR or policy rates
.......RBI may need to shift its bias from inflation to growth this time but may find it tough to defend rate cut delivery against its firm stance of caution against elevated inflation and low real interest rates. While it will be easy and straight-forward for RBI to deliver 25 bps CRR cut to cover advance tax outflows and maintain dovish stance on the way forward, RBI may also consider the other option of delivering 25 bps rate cut with caution on inflation. There are four options before RBI:..........
‘RBI must Cut Rates by 50 bps. A Slump is Easier to Usher in, Tough to Get Out of’
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| I would recommend RBI to cut CRR and repo rate by 50 bps each. A slowdown is easier to usher in but more difficult to get away from. The best way to bring down prices is to increase supply. |
RBI nod for IFC Code to Kangra cooperative bank
Dharamsala: Kangra Central Cooperative Bank (KCCB) has become the third cooperative bank in the country and the first in North India, to have its own Indian Financial System Code (IFSC). KCCB has been allotted IFS code by Reserve Bank of India, Sandeep Kumar MD of the bank stated. Other two cooperative banks having IFSC standing are are Maharashtra State Co-Op Bank and Bombay Central Co-Op Bank.......
Naina Lal Kidwai is first woman president of Ficci
Senior, mid-level executives face high stress
Majority of executives in banking, marketing and media sectors, surveyed by industry body Assocham, have said they face high stress levels, leading to mental and physical fatigue, especially in big cities........
High bad debts temporary: SBI
..........SBI's NPAs rose to 5.15 per cent in the second quarter ended September, from 4.19 per cent over the year-ago period because of deteriorating asset quality. He said the bank has made adequate provisioning norms. "We have been providing in excess of the prudential provisions. Whatever Reserve Bank asked us to provide, we have been providing that, plus a little more." Gupta said..........
PSU bank employees’ strike on Dec 20
Employees of public sector banks will observe one-day country-wide strike on December 20 in protest against the government’s move to place the Banking Law Amendments bill in the current session of Parliament..........
In a first, SBI takes its officers' body to court
......The SBI brass has been in talks with officers’ representatives on service conditions, including working hours. SBI officials maintain an agreement signed in 2003 provides flexibility for changing the banking hours. “Seven-day banking does not mean the bank would ask employees to work on all seven days,” an official said. The SBI chairman and top officials held negotiations with the office-bearer of the association on October 4 but the talks did not yield fruit. After officers in some circles held demonstrations on November 30, the management moved court for action. An office-bearer said the move for seven-day banking was at odds with unions fighting for introducing a five-day week for bank employees. Meanwhile, SBI has sought an explanation from the association for allegedly instigating officers to protest against the management. It also issued chargesheets and showcause notices to some leaders.....
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