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, January 19, 2013
Suresh Tendulkar Memorial Oration
Govt has taken revenge on RBI, says CLSA
Brokerage firm believes denial of extension to Gokarn shows lack of freedom for RBI Governor
The controversy surrounding the Deputy Governor’s appointment in Reserve Bank of India (RBI) is refusing to die down. It's the turn of a global brokerage to accuse the government of being revengeful against the central bank by not allowing an extension to Subir Gokarn despite RBI Governor D Subbarao's recommendation. In a note to its clients, broking firm CLSA’s Christopher Woods said that the finance ministry’s recent decision of not extending Gokarn’s tenure is a reminder of the current lack of independence of the central bank. “The decision is probably partial revenge for the RBI’s habit last year of regularly stating in its official policy statements that further monetary easing was conditional on meaningful fiscal tightening by the government,” Woods wrote. The broking firm also thinks the RBI Governor will not enjoy freedom in the remaining days of his term in office.“The current governor has now been reduced to a virtual lame duck since his own second term in office ends in September,.........
Gold investment speculative, not inflation-hedge: Chakrabarty
RBI research shows banking stability linked to financial stability
.............The paper written Rabi N Mishra, S Majumdar and Dimple Bhandia. While Mishra is the Regional Director, Lucknow, Dimple Bhandia and S Majumdar are General Manager and Director in the Financial Stability Unit (FSU) of Reserve Bank of India (RBI), respectively. There are a number of major findings, for instance the paper establishes a link between banking stability and financial stability. According to their research when there was continued financial stability it improved banking stability.............
TAFCUB meet held
Jammu: Jan 18: State Level Task Force on Co-operative Urban Banks (TAFCUB) today held its 11th meeting at RBI Jammu under the chairmanship of K K Saraf, Regional Director for J&K and Sudershan Sharma, Registrar, Co-Chairman.............
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RBI seen cutting interest rate by 25 bps as inflation slows: Poll
.........."The reason why the RBI can now cut rates is we are seeing some moderation in inflation, and it is likely to continue throughout 2013," ........
Banking on integrity
......In the mid-1970s, deposit interest rates offered by banks were kept low by the RBI and most deposits flowed into public sector banks due to their ownership by Government. Some foreign banks were keen to get the deposits and started offering higher “interest rates” by a scheme called “portfolio management”: the money was reportedly invested in high yielding Government securities and the customer got higher interest. The scheme was a sheer fraud. No specific securities were identified and the customer was paid the full principal even if the value of Government securities fell at the time of repayment. The RBI also turned a blind eye to the repeated protests of PSU banks against the wrong practices of foreign banks.............
Sick economy, clueless doctors
.......Here’s a thought. Assume the RBI did, against its better wisdom, bow to the clamour for cheaper money, and forget about inflation for some quarters. Assume the North Block did get its way and Governor D. Subbarao did the needful. Would growth revive? Would the patient sit up in bed and start jogging around the block?..........
Why is IIFL against RBI cutting rates?
Holding a contrarian view, IIFL is against the Reserve Bank of India (RBI) cutting rate cut any further. Explaining the stance, Prabodh Agarwal, Head of Institutional Research says that further cut would discourage savings and encourage consumption.............
Allow us to raise ECBs, asset financing NBFCs tell RBI
Asset financing non-banking finance companies (AFCs) have urged the RBI to permit them to raise external commercial borrowings. Allowing these companies to raise ECBs would help them diversify their source of borrowings and raise funds at cheaper rates, they have submitted. Also, such long-term borrowings would lend stability to the asset-liability profile of the AFCs, the Finance Industry Development Council (FIDC) has said. This suggestion forms part of the representation made by the FIDC to the RBI on the draft guidelines of the Usha Thorat Committee report on issues and concerns of NBFC sector.......
‘Greater inflows into mutual funds without intermediaries not possible’
.....If a fund house decides to have a branch at least two employees are required. The cost works out to a minimum of Rs 4 lakh per month per office. And at a cost structure of two per cent of AUM, an AUM of Rs 8 crore is a must for each of the 44 fund houses (a total of Rs 352 crore) to set shop. How many other than the top 15 cities are capable of such numbers? Sixteen of the 28 branches we have are outside of the top 15 cities. It would be great if the lead bank concept of RBI is used to good effect and penetration is achieved in the 600-odd districts............
Sebi creates separate debt segment on stock exchanges
...."I personally feel that it's a very positive decision and what RBI (the Reserve Bank of India) has done and today we are in Sebi trying to implement. We are implementing what RBI has done,".........
The CEO salary debate
Are India Inc’s CEOs overpaid? The prime minister raised the issue a couple of years ago; the Companies Act has sought to cap it; the regulators (the Reserve Bank of India and, more recently, the Securities and Exchange Board of India, or Sebi) have voiced their concerns; and proxy advisory firms have been opposing it with unfailing regularity at shareholders’ meetings (since September 2011, Institutional Investor Advisory Services has recommended voting against 39 compensation-related proposals from various companies)...........
Cite reasons for denial of ATM service to board: RBI tells banks
.......In this regard, the central bank has given an indicative list of 33 reasons that banks need to mention, including invalid transaction, invalid PIN, exceeded withdrawal limit, exceeded number of tries, lost or stolen card, and time-out.
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