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| "I don't manage RBI. I just convey the views of the government. It is for RBI to take a call. Our stated position is that RBI must balance between the needs of stimulating growth and containing inflation," |
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.
Wednesday, January 23, 2013
RBI needs to stimulate growth as containing inflation: FM
Finance Ministry to move cabinet to create debt management office
Recent govt moves to pressurise RBI to ease rates: Ahya
......The government’s measure will probably create some pressure on RBI to act. So, we are expecting a 25 bps cut on January 29. However, if you look at some of the key macro indicators such as deposit growth, CPI inflation and trade deficit, we think ideally it would be better that RBI defers a rate hike to ensure that some of these critical macro stability indicators show some turnaround.......
Disaster resilience norms may become mandatory
.........The Reserve Bank of India (RBI) has directed all scheduled and commercial banks as well as other lending institutions to adopt the NDMA guidelines and insist on the loan applicant to comply with the disaster resistant features laid down by the authority before sanctioning a loan. According to a circular issued by the RBI, the authority has insisted on observing the guidelines on finding that there were certain critical gaps in the context of disaster resilience and hence the guidelines were issued for addressing the gaps before clearing loan applications.............
Creating an economic constitution for india
........There have been a few other attempts at imposing rules on policymakers. The landmark Fiscal Responsibility and Budget Management Act of 2003 essentially meant that Parliament was using its powers to impose limits on government fiscal policy. Being part of the World Trade Organization automatically forces the Indian government to respect global trade policy rules. Another example: The terms of reference of the 14th Finance Commission headed by former Reserve Bank of India (RBI) Governor Y.V. Reddy has an interesting item: “The need for insulating the pricing of public utility services like drinking water, irrigation, power and public transport from policy fluctuations through statutory provisions.”.........
SBI pitches for cut in repo rate, CRR
Pitching for a cut in interest rates and cash reserve ratio by the Reserve Bank, SBI Chairman Pratip Chaudhuri today said the move will boost investment and growth...........
Case for teaser rate return
A panel appointed by the Reserve Bank of India (RBI) to assess the feasibility of more long-term fixed rate loans products today suggested that banks should consider relaunching teaser or dual-rate loans. The panel, headed by K.K. Vohra, chief general manager, internal debt management department of the RBI, however, recommended that a large portion of such loans should carry a fixed rate of interest. Earlier, a small portion of the dual-rate loan was fixed.............
Monetary policy-making under fiscal shocks
........... The need of the hour is to focus more on employment generation and growth, as the ad hoc nature of fiscal adjustments has compounded the problem of inflation uncertainty for India. We feel a reduction in the repo rate of 50 basis points might to some extent negate the disruptive effects of the painful fiscal adjustments.
Microfinance banking
This refers to Subir Roy’s column “The next step for Indian banking” (Value for money, January 16). Despite vigorous branch expansion, the present banking system – both private and public – has not been able to ensure that the vulnerable sections of the population utilise basic banking services. Against this background, it is worthwhile to note that several Asian and African countries have established microfinance banks that cater to basic banking requirements (both credit and savings) of low-income communities with relatively hassle-free procedures. Even a small country like Pakistan has 10 microfinance banks — the last one having been inaugurated last week in Karachi. Then, the Central Bank of Nigeria created a record of sorts by licensing 37 microfinance banks in Kano on a single day on January 13. Indian microfinance institutions could also be considered for conversion into microfinance banks under the New Branch Licensing Policy.
- B Vithal Rao Hyderabad (BS)
Do your worst, Mr C; India isn’t about to give up on gol
........This is really the crux and why finance ministers have been unsuccessful with all their gold schemes. Investing in gold is an indictment of the government’s fiscal and monetary policy. This is what P Chidambaram hates, and why he is making such a song-and-dance about gold imports. Raising duties and banning this or that is no solution to the problem of a repressive fiscal policy that debauches the value of the rupee. Indians’ attraction to gold will be inversely related to the trend in the purchasing power of the rupee at home and abroad......
RBI panel wants banks to go in for more long-tenor FD schemes
A Reserve Bank of India (RBI) panel has suggested that banks should popularise fixed deposit schemes with tenors of above five years as they are eligible for tax exemption. “This would, to some extent, meet the long-term funding requirement of banks,” the committee said. The RBI released the report of the committee which studied the feasibility of introducing more long-term fixed rate loan products by banks on Tuesday.............
Read - The Hindu
RBI for periodic interest reset on long-term fixed-rate loans
The central bank proposed banks be allowed to reset interest on fixed-rate long-term loan products instead of charging a fixed rate throughout the tenure as it will be costlier for a borrower than floating rate loans. Banks could reset interest rates after a period of 7-10 years, said a Reserve Bank of India panel's report on assessing feasibility of introducing more long-term fixed-rate loan products by banks on Tuesday..........
Corporates Getting Ready to Bank
New bank licences are a certainty after a wait of nearly a decade as the Reserve Bank of India prepares to release norms. ET’s Sangita Mehta lists some candidates who could come to own banks......
A SIM can empty your bank account
.........They intercept one time password by obtaining duplicate SIM cards,” says Rakshit Tandon, advisor cyber security. “This is called ‘Identity theft’. The modus operandi is that hackers generate a duplicate SIM. After the SIM gets activated, hackers have access to the account of the victim on the internet. They can easily use the user-id and password and transfer the money. The bank automatically generates a onetime-password (OTP) which is received through SMS on the duplicate SIM as well,” says Rakshit. The fact that the process of acquiring a duplicate SIM is so easy, highlights the laxity on part of the mobile operators, a fact pointed out by CGM, RBI and the banking ombudsman, M Sebastian: “Because of the certain vulnerability on the part of mobile operator, the fraudsters were impersonating and obtaining duplicate SIM cards. About 40-50 complaints were received during 2011-12.” He had then urged the banks to take up the issue with the mobile operators but it would appear little has happened in the matter............
Say Bye To Swipe, Pay With Android Phone Card Reader
Bangalore: Soon the credit card point of sales (POS) will do away with “zip zap” swipe machines, thanks to Android card reader. The RBI has given its nod for a card reader that in conjunction with an android phone, does everything that a POS terminal can do,............
Making payments on the go
........For the last few years, the Reserve Bank of India (RBI), the Mobile Payment Forum of India (MPFI), the National Payments Corporation of India (NPCI) and the Indian Institute of Technology Madras (IITM) have been working with all the stakeholders to construct interoperable and security standards for mobile financial payments and services. Today, over 50 banks and financial institutions have adopted the common standards and architectures which such a service requires.........
CCTVs not functioning in most ATMs
The audit report of the Cyber Defence Research Centre (CDRC) has exposed the inherent flaw in the management of Automated Teller Machine (ATMs) in many areas of Ranchi. The guideline of the RBI makes it mandatory for banks to not only install CCTV cameras in the ATM counter but ensure its functioning at the same time..........
Citibank launches paperless payment system for cardholders
..........“The secured paperless transaction not only does away with managing charge slips but also combines the many benefits enjoyed by Citibank card customers, including instant redemption of reward points, ability to opt for EMI payment option while using this new payment alternative," ..........
NABARD for better balance sheets of co-op banks
According to the Vision 2013 , the National Bank for Agriculture and Rural Development (Nabard) would strengthen and help the district cooperative banks overcome their difficulties and show better balance sheet so they could become part of the mainstream banking...........
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