Economist and public finance expert Urjit R Patel is set to be named as the Reserve Bank of India’s deputy governor in charge of monetary policy, replacing Subir Gokarn who left office on December 31 after a three-year term and a one-month extension. Sources said finance minister P Chidambaram has approved Patel’s name for the crucial post as recommended by a panel comprising governor D Subbarao and department of financial services secretary DK Mittal. A formal announcement is expected shortly. Patel — now a consultant with Boston Consulting Group — is credited with over a decade’s experience in the Indian financial sector with a focus on funding private infrastructure projects. For Patel, a PhD in economics from Yale University and an MPhil in economics from Oxford University, the assignment is a homecoming of sorts, as he had an earlier stint with the central bank as advisor. He also worked with the finance ministry for a while, making him the ideal choice for deputy governor who has to do a fine balancing act in monetary policy formulation. Patel’s task in assisting the governor in monetary policy-making is, however, not going to be easy, with the government and the RBI not exactly on the same page on whether the time has come to cut interest rates........
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Wednesday, January 2, 2013
Economist Urjit Patel to be new RBI Deputy Governor
Economist and public finance expert Urjit R Patel is set to be named as the Reserve Bank of India’s deputy governor in charge of monetary policy, replacing Subir Gokarn who left office on December 31 after a three-year term and a one-month extension. Sources said finance minister P Chidambaram has approved Patel’s name for the crucial post as recommended by a panel comprising governor D Subbarao and department of financial services secretary DK Mittal. A formal announcement is expected shortly. Patel — now a consultant with Boston Consulting Group — is credited with over a decade’s experience in the Indian financial sector with a focus on funding private infrastructure projects. For Patel, a PhD in economics from Yale University and an MPhil in economics from Oxford University, the assignment is a homecoming of sorts, as he had an earlier stint with the central bank as advisor. He also worked with the finance ministry for a while, making him the ideal choice for deputy governor who has to do a fine balancing act in monetary policy formulation. Patel’s task in assisting the governor in monetary policy-making is, however, not going to be easy, with the government and the RBI not exactly on the same page on whether the time has come to cut interest rates........
Subbarao to handle monetary policy dept
Reserve Bank of India's Governor D Subbarao has taken charge of the monetary policy department following completion of Subir Gokarn’s term as Deputy Governor. The government is yet to announce Gokarn’s successor. Gokarn’ term, who was looking after departments like monetary policy, financial markets and economic research and policy, among others, as Deputy Governor came to an end on Monday..............
My View on "'Grace'ful boss I ever had.............."
I worked with Grace for a brief time and that gave me an opportunity to see her personally and officially at close quarters. My experience brings to mind what Mr.S.A.Hussain used to say about her -- "Grace full of grace !" Very meticulous, diligent and hardworking, she never lost her equanimity no matter what the stress of the moment might be. Best of all, I enjoyed her sense of humour! Her masterly understatements and dry humour often kept me in stitches. I wish her a very fulfilling and happy post superannuation as I don't think she will be leading a retired life.
- Kamala Rajan, Chief General Manager, UBD
Yes, Ms Grace is a person full of love and grace. I have always enjoyed prefacing my conversation with her by saying "with the grace of Grace"!! My wife, Chitra and I wish her a lovely retired life.
- A.Chandramouliswaran, Former Executive Director
VITALINFO - True to its name.........
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With regards,
- Dr T.V.Gopalakrishnan (via e-mail)
Microfinance institutions drift from traditional Grameen lending model
Faced with the challenge of bank funding and stringent regulatory norms, many microfinance institutions (MFIs) are drifting from the traditional Grameen model of lending. The idea is to reduce operational cost, while maintaining low default rates. Many MFIs, especially those in the southern states, are experimenting with a monthly repayment system, rather than weekly repayment, to reduce costs.......
Discussion Session - NBFC Sector
Discussion Session on RBI’s Draft Guidelines based on Usha Thorat Committee Report on Issues and Concerns in the NBFC Sector..........
Read...........
Cash at your fingerprints
....Visa has tied up with the Unique Identification Authority of India (UIDAI) to develop a payments ecosystem atop the Aadhaar platform that will facilitate financial inclusion and boost the electronic payments culture in India...........
RBI may seek heavy duty on gold imports
........“RBI wants a clampdown on gold imports,” said an official, on the condition of anonymity. “It has intimated the government that the duty amount should be significant and the government should make gold imports difficult.”...........
Small biz loans in poor growth, RBI moves to aid
....Taking cognizance of this fact and also taking into account finance minister P Chidambaram’s emphasis on increasing priority sector lending, the standing advisory committee of the Reserve Bank of India (RBI) has recommended for setting up of centralised credit processing (CPC) cells. While instructing the banks to set up CPC cells for MSMEs, the deputy governor RBI, KC Chakrabarty said that these cells would act as a single-point appraisal, sanction, documentation, renewal and enhancement of loan mechanism.......
Our profit margin will come down in FY14 & FY15: Shriram MD
Q. In line with banking standards, Usha Thorat committee has proposed a lot of regulatory changes. If implemented, how would those impact your company?
A. We may be impacted due to higher provisioning norms against bad loans. The committee proposed to lower the period from 180 days to 90 days. Provisions will go up due to this. Consequently, profit margin will come down. In FY14, it proposes to adhere to 120 days and then by FY 2015 it will come down to 90 days. They want it to do this in a staggered format...........
Small pvt banks in wait mode
Small and mid-size private banks are not in a hurry to pare their lending rates, even as HDFC Bank, the second largest private sector lender, said it was reducing its minimum lending rate, the Base Rate (BR). While most bankers agree lending rate cuts are imminent, they prefer to wait for a signal from the Reserve Bank of India (RBI) on the direction. Small private banks will also watch the action of bigger rivals such as State Bank of India (SBI) and ICICI Bank before any revising...........
Post Bank of India set to get shape
.......According to a report by the standing committee on information technology, the proposed Post Bank of India will be a profit-making entity that would essentially help the department of posts in reducing its deficit. The Standing Committee, in its report, has also suggested that the Post bank of India should also provide ATM services in remote areas, besides taking core-banking facilities to the rural areas...........
We have not made up our mind on banking: Rashesh Shah
...........We have to wait for the final guidelines from the Reserve Bank of India (RBI). The board has decided that we must wait for the final guidelines before taking a decision. We do believe that India needs many more banks. We have given our feedback to RBI (on draft norms), asking them to ensure a level-playing field. But we have not made up our mind.........
India's jobless growth story
There appears to be some optimism at least within our small community of financial market economists that growth seems to have bottomed out. The next financial year, 2013-14, is likely to post somewhat better numbers for GDP growth than the median forecast of 5.5 per cent for the current fiscal year. This optimism seems to be based on a number of things: the government finally shaking off its policy funk, which could both improve overall business sentiment and get public sector projects going; the likelihood of the Reserve Bank of India lowering interest rates in response to a moderation in inflation; a marginally better external environment and so on. I have a similar view and see no reason to take a contrarian stance. However................
India’s fiscal cliff: Why Chidu may be praying for inflation
............Chidambaram has been shouting from the rooftops about the need to bring down rates. If the RBI finally succumbs to this pressure, Chidambaram will end up fanning the same fires that he has to douse—a rising CAD, and rising inflation spurred by cheaper money. If higher growth spurs a further rise in CAD, the rupee will take a toss, and accelerate inflation..........
Direct cash transfer scheme fails to take off
.....Officials said that the glitch in linking bank accounts with the Aadhaar number is the failure to bring some key banks like Andhra Bank and the State Bank of Hyderabad under the Aadhar-based platform. Most beneficiaries have their accounts in these banks. They were brought under the Aadhaar platform only recently on the directions of the Finance Ministry and the RBI and necessary technical adjustments were being made.....
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