Efforts to revive growth have to come from the govt, as modest attempts like this one by RBI remain insufficient............
Read - Mint
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Wednesday, January 30, 2013
It’s not govt vs RBI, but a difference of opinion: Reddy
Risks are real, benefits not certain: Y V Reddy
...............It isn’t bad news if successive governors think alike. In fact, (C) Rangarajan, (Bimal) Jalan, me and Subbarao all think alike and it is good for the country. For 20 years, governors of the central bank, by and large, have thought the same way. So, we will have good financial stability and a good financial sector. You should be happy. You should always have a mutual admiration among successors and predecessors and not a mutual hate society............
RBI cuts interest rates for first time in 9 months
Shedding its 9-month long hawkish monetary policy stance, the Reserve Bank of India on Tuesday slashed its key interest rates by 0.25 per cent and released Rs 18,000 crore additional liquidity into the system to perk up growth through reduced cost of borrowing. RBI Governor D. Subbarao in the third quarter monetary policy review surprised the market by cutting repo rate by 0.25 per cent to 7.75 per cent and cash reserve ratio (CRR) by similar margin to 4 per cent.........
Vaz was................
In
the golden light'ning
Of
the sunken sun,
O'er
which clouds are bright'ning,
Thou
dost float and run,
Like
an unbodied joy whose race is just begun.
Goodbye
Blithe Spirit
- Sanjeev Sharma
She
was once to Patna office in 1993 if I recollect fine. On her way to the Patna
airport she wanted if we have packed a lot of food and beverages as she
expected the flight will be delayed. She turned around the other ED (Kumari
Vishwanathan and said she does not need any eatable for she had never seen her
eating anything. That is I T Vaz. Great character she was.
- Manas Mohanty
I am very
much grieved to learn about the sad demise of Miss Vaz. I knew her since my BTC
days i.e. mid-sixties, when I was a tutor there and she used to visit as a
guest speaker. My real association with her can be said to be since
1992, when we used to work as E Ds and occupy the same 17th floor cabins. She
was intelligent, no doubt, but had the guts to put across boldly what exactly
she failed on issues. This is a sign of intellectual honesty. After retirement,
whenever she visited Pune, she used to call on me and I used to at least ring
her up during my short visits to Mumbai. Every Diwali, she used to send
me greetings unfailingly, which I used to reciprocate at X’mas. Last time I
wrote to her was in December 2012. I did not however get any reply and was
indeed worried. The worst has come true. I have lost a good colleague. May God
rest her soul in Peace.
- P.B.Kulkarni
[Pune]
“May
her soul rest in peace” won’t be acceptable to Madam I T Vaz ! She never
tolerated injustice… But she found injustice around, above and below. I am
sure, she will continue her fight and that trust will help those who knew her
to carry on the fight!
- M.G.Warrier
Sad to learn about Ms Vaz's
death. May her soul rest in peace. In 1968 she was my ACO in ACD where Iwas
posted as JO Gr II as part of my training. Thereafter in 1995 she was my ED
when I was CGM in-charge of Financial Institutions Cell. I
found her to be clear headed and bold in her work. I remember once I had gone
to discuss some matter with her in her room on the 17th Floor. She had just
returned from DG (D.R.Mehta)'s room and was furious after having a tiff with
DG. She said that what did he think about himself that he is an IAS and
can get rough shod over ED. Such was her demeanour.
- Man mohan
Singh Rekhrao
Extremely
sad to know about her sad demise. I had seen her several times in Garment House
where ACD was located. She was ED during the tenure of Dr I.G. Patel. Graduated
from Sydenhem College, interviewed for the post of Economic Asst, she was
offered the post of Officer because of her brilliant knowledge. She was an
epitome of grace and etiquette.
- Sitendra
Kumar
Obituary
Mr. P. Arumugam, Retd. Gr. ‘B’ Officer, RBI, Chennai passed away on 15.01.2013. Mobile: 91768-96036
Missed u so much............
 |
| VITALINFO could not be updated for 5 days since I was on family vacation. I received several calls, e-mails and sms asking reasons for the missing VITAINFO. I am short of words to thank all the avid readers of VITALINFO................... |
‘Central Banks’ Autonomy is an Overrated Fiction’
....I
believe the autonomy of central banks is a fiction. I also believe it is
much overrated. The question in the political economy of central
banking is “independent of whom?” central banks are deeply political
institutions and it is disingenuous to pretend otherwise. The struggle
to determine how they should allocate credit and to whom is very
emotion-charged and important to examine closely. Should central banks
be independent of humans in the name of some abstract notion called
price stability? If so then what is the value of price stability in
bettering the lives of the citizens? .......
RBI wants to issue new licences as soon as possible: Subbarao
......It’s in the final stage. We had consulted the government. They have made certain points to which we have responded, and I don’t know how many reiterations it might go through; but now we are awaiting the government’s response to that. Both the government and RBI will want to launch this as soon as possible.
RBI: Urgent need for new investments
.......Subbaro has clearly passed the buck to the government to create an environment which encourages investment, both from within the country and from outside. Government’s focus currently is more on attracting global capital rather than improving domestic sentiment. Here the governor points out to the precarious Current Account Deficit (CAD) scenario which has touched an all-time high and is unlikely to come down soon. In fact he has warned that ability to attract foreign exchange will be hit if the economy slows down further..........
RBI pushes for inflation-linked bonds, buyback of gold by banks
..... “We had a discussion with banks today on introducing inflation-indexed bonds. We had introduced these bonds some years ago, but this time we would be redesigning them. We consulted banks if these would be successful. Banks asked us to which inflation index the bonds would be linked, say consumer price index or wholesale price index or any other index, and what interest rate will be offered. They asked us if these bonds would attract retail investors or bulk investors.”......
RBI wants banks to raise lending to exporters; sets up panel
Worried over the low share of export credit in the books of banks, Reserve Bank Governor D Subbarao today constituted a technical advisory group to look for solutions to help the sector. The announcement of the committee, to be headed by RBI Executive Director G Padmanabhan, comes on the same day when Subbarao declared the burgeoning current account deficit as "biggest risk for inflation and macroeconomic management"..................
CRR cut to perk up investments, affect interest rates: Montek Singh Ahluwalia
 |
| "The Cash Reserve Ratio (CRR) cut will be welcomed by the markets because it will essentially create more resources for the banks to lend. I think this is the right thing to do at this point given that we feel that economy is beginning to bottom out,"......... |
RBI rate cut to stimulate growth: C Rangarajan
 |
| "RBI has taken a very balanced view. This will ensure that stimulus is provided to growth while continuing efforts to contain inflation. The RBI will cut rates if inflation behaves as per its projection,"........ |
New director on SBH board
Hyderabad: The Government has nominated social activist Syed Mazher Hussain as Director on the Board of Directors of State Bank of Hyderabad. He would be on the board for a period of three years with effect from January 16, according to a release.
Financial literacy including populating Electronic Payment Products – visit to Mumbai Marathon and staff colonies
Mumbai Regional Office of
Reserve Bank of India took the opportunity of spreading awareness on electronic
payment products during the event of 10th Mumbai Marathon on January
20, 2013, which witnessed participation of more than 35,000 persons of about 165
companies. The awareness was done through distribution of leaflets related to
electronic products (NEFT/RTGS) in various languages to the participants of
marathon and general public. This was well appreciated by Hon’ble Governor of
RBI and Regional Director for Maharashtra and Goa of RBI. Mumbai Regional
Office of RBI also took the awareness campaign at the resident colonies of RBI
employees at Mahim and Malad, on 64th Republic Day by distributing
leaflets in regional language on NEFT/RTGS. The residents were also explained the
benefits of using electronic methods of payments in terms of ease, low cost, fast
and security
Over to government now
With RBI doing its bit by cutting repo rate 25 bps, indeed more if you keep in mind no one expected the 25 bps CRR cut, the focus is once again back to the government and what it plans to do to fix India’s growth prospects. RBI’s rate cuts, needless to say, were along expected lines given the slowing in core inflation and in economic growth............
Subba’s Big Bang Theory
I thought the world will end on December 21, 2012 as the Mayans had said - and as the physicists say we go into a Big Bang collapse - and RBI will disappear with a high inflation record. That did not happen so we are in a relentless pursuit of higher growth and lower inflation.................
Central bank’s risky bet
..............RBI underscored this concern both in its macroeconomic review and policy statement. With such a large external vulnerability weighing on the economy, making it cheaper for exporters, importers, and companies with foreign exchange obligations to short the currency isn’t what any central bank would prescribe, regardless of the growth-inflation dynamics. But RBI chose to do so. And in doing so it added to the very risks that it exhorted us to guard against.
Timing it right
At the customary press conference after the monetary policy announcement, RBI Governor Duvvuri Subbarao was asked whether he cut the policy rate this time around because he might have missed the bus with inflation expected to head up again next fiscal. “I may have missed many buses,” Subbarao said laughing, and much to the amusement of those present.
FE
Inflation still an issue, so’s CAD: D Subbarao
... By far, the biggest risk for inflation and macroeconomic management is current account deficit (CAD) – not just high CAD, but high CAD amidst slowing growth and high fiscal deficit. If inflation eases more than we expect it to and if CAD moderates further, there will be more room for monetary policy easing. However, if inflation rate and CAD move along currently expected lines, then the scope for further easing will be limited. We expect CAD to be lower in the fourth quarter – it has to be significantly lower..............
Challenge for banks to pass on RBI rate cut: Indian Overseas Bank Chief
................Stating that RBI has "guardedly" cut policy rates, public sector Indian Overseas Bank today said it would be a challenge for banks to pass on the benefit of the rate cut to push growth.............
The dilemma remains
......Monetary policy’s traditional dilemma of supporting growth versus countering inflation can perhaps never be fully reconciled but the compact and lucid third quarter review has done a very good job of articulating an inherently complex stance.
RBI delivers twin cuts, stays cautious
Shedding its nine- month long hawkish monetary policy stance, the Reserve Bank of India ( RBI) reduced its key interest rate by 0.25 per cent and decided to inject Rs 18,000 crore liquidity into the system to perk up sagging growth.....
RBI could have cut rates a bit more
A symbolic rate cut
.........Now, nobody in his right mind would dislike higher growth, but, again, no one in his right mind would like to trade higher inflation with higher growth. It is this balance between growth and inflation that the RBI has been mandated to strike while formulating its monetary policy............
Cash injection
I t is wrong to believe that the Reserve Bank of India’s (RBI) decision to cut its benchmark interest rates by 0.25 percentage points has been a result of succumbing to pressures from the Finance Ministry or India Inc. The reduction was inevitable even from a technical standpoint...............
Wrong diagnosis, wrong prescription - A.Seshan
The announcement by the Reserve Bank of India (RBI) of the relaxation in policy rates and the Cash Reserve Ratio by 25 basis points each is the result of the wrong diagnosis of the current situation that is no different materially from what it was on the occasion of the last review. The basic causes are the wrong benchmarks used for measuring inflation and liquidity.........
A well-calibrated monetary policy: S S Mundra
....At this juncture, the major worry for the Reserve Bank of India (RBI) is the stresses on balance of payments and their implications for the currency and overall macroeconomic stability. Hence, in its economic review, it has said even if inflation recedes further, the wide current account deficit may slow the pace of monetary policy easing. RBI has also sensitised the public about the inflationary risks originating from suppressed inflation, pressure on food prices and high inflation expectations getting entrenched into the wage-price spiral.............
India Inc happy about RBI rate cuts
Reeling under slowdown, India Inc. today hailed the Reserve Bank of India’s move to reduce repo rate and CRR by a quarter per cent, saying it will spur growth and ease the prevailing tight liquidity condition..........
Canara Bank to open 2,000 ATMs by March 2014
.....“In order to increase our delivery channel, we will be opening 2,000 ATMs by March 2014,” Canara Bank’s executive director AK Gupta said while inaugurating the first e-lounge of the bank in the capital.......
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