..........Almost everyone has welcomed the easing. After all, something is better than nothing. However, much less appreciated is that in its policy statement the RBI has been consistent in being inconsistent. There seems to be a pattern of inconsistency in the RBI’s actions and the related analysis/guidance. Thus, for example, when it wants to communicate a hawkish tone, it’ll often hide behind the uncomfortably high Consumer Price Index (CPI) inflation. In contrast, when it wants to ease or sound dovish, it barely even bothers to extract any message from the CPI 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.
Friday, February 1, 2013
Using cheques to settle transactions may be a thing of past; RBI wants to disincentivise cheque usage
.......In an attempt to discourage paper based transactions and promote electronic settlements, the Reserve Bank of India has made sweeping suggestions in a discussion paper placed on its website on Friday. These include a charge on cheque books and even a fee for settling certain kinds of transactions..........
RBI's new policy to give fillip to development with customer as focus
Nashik, Jan 30 : Reserve Bank of India (RBI) new economic policy has created a positive flutter in the market and will give boost to economic development, stated RBI economic consultant Dr Ashutosh Raravikar. He was speaking after inauguration of Nashik Industries Manufacturers'Association (NIMA) bank summit 2013 in Nashik today...............
RBI comes up with comprehensive financial literacy guide
To create financial awareness, educate common people on management of money
In order to cater to the need of financial literacy the Reserve Bank of India (RBI) has prepared a comprehensive financial literacy guide. This guide contains operational guidelines which clearly spell out the manner in which financial literacy camps should be conducted so as to synchronise it with providing financial access and thus linking the financially excluded section with the banking system...........
RBI confident of infrastructure investment target
London: India is on course to meet its infrastructure investment needs of an estimated USD 1 trillion over the next five years, according to Reserve Bank of India (RBI) Executive Director G Padmanabhan. "The funding process is working in a seamless manner and things have taken off in a very exciting way," he said at a conference here on Wednesday.............
FinMin: Cut FD rates for senior citizens
The finance ministry has asked government banks to reduce the fixed deposit (FD) rate offered to senior citizens to reduce cost of funds. At present, most public sector banks offer 50 basis points more to senior citizens than what they offer to others. Some private sector banks, like ICICI Bank, offer 75 basis points more to seniors. The finance ministry has demanded an action-taken report from banks on how they have progressed on this front..............
RBI conducts awareness prog in Dimapur
......David Kire, Chief Manager (Lead Bank), SBI while acknowledging RBI Guwahati for organising the programme, added ‘today the banks are highly quipped with technology like ATM, credit card, debit card, internet banking but along with it, the crooks are trying to take advantage of technology for which awareness is needed.’ Arpita P. Biswas, DGM DNBS (RBI) Guwahati said in her speech that RBI could give license to banks and non-banking financial company. In Northeast 118 non-banking finance company are registered in RBI and three from the state of Nagaland. Dr Dilip Singh, AGM ID RBI Guwahati, Pathagata Basu, GM, DNBS (RBI) and PN Murthy AGM DNBS made presentations...........
Siddhu - The perfect gentleman.......
 |
| At the centre of the helm n looking straight at you Siddhu - V.K.Siddham |
- Ashok Jangam, Private Secretary, RPCD, Mumbai
Photo courtsey - Girish Satam, AM/ Asmita Kale, PS
Photo courtsey - Girish Satam, AM/ Asmita Kale, PS
Ever smiling but hard working Kuldeep ..........
My friend, philosopher and guide Shri
Kuldeep Singh Wadhwa, a senior Private Secretary of our PS Fraternity
retired on January 31, 2013 after putting in 40 years of meritorious service.
He was attached to the Regional Director, Lucknow. His personality has touched
me a lot. Always smiling, Kuldeep guided me as my elder brother when he was
posted at New Delhi office in Governor's Secretariat. I enjoyed working with
him and his support always brought cheers for me. His dedication towards office
was superb which inculcated a sense of hard work amongst other colleagues. He
brought laurels to the office and took his office to new heights during his
stay at New Delhi. I wish him a very peaceful, happy and healthy retired life.
- Pawan Kumar
PS to Chief General Manager & BO, New
Delhi
Gentle, Gregarious, Kind........
I was head of the Urban
Banks Department in Trivandrum in the late eighties. One day I got a message
that Kum I.T.Vaz, the Head of the Urban Banks Department in Central
Office, Bombay was paying a visit to our office and I should receive her
at the airport and make necessary arrangements. I went the next morning to
the airport with an Ambassador car and was waiting. The Bombay plane landed and
a little later passengers started flowing out. I could spot my boss from
a distance and waved my arm. Kum Vaz came near the vehicle and after entering
she said, “Mr. Ramachandran, I was wondering whether you would be able to
recognize me—since we have never met !.” I said with a smile, “You are
unforgettable, Madam !”. Kum Vaz blushed and was astonished to hear this and
asked promptly, “How?”. Coolly I replied, “Madam, because of you, I walked
in the hot sun from RBI Main Building to the Governor’s residence off Peddar Road
— eight miles away. Because of you I
lost one day’s wages. Because of you my increment is postponed by one
day!”. She exploded into laughter and said, “This is the first time someone has
told this to my face. All utter it behind my back. I am sure we will get along
well!”. She made three more trips to Trivandrum. There was an Association
sponsored agitation against her promotion.
In Trivandrum Miss Vaz was
keen to meet the wife of K.Madhav Das--the famous malayalam poet Madhavikutty. I
took her to the poet's house and they chatted happily for an hour like
college girls ! Officially we visited the Nedumangad Urban Co-operative Bank.
She asked the Chairman what was his profession? I translated her question
into Malayalam. Without batting an eye-lid he said--" Rashtriyam ".
Translated into English it was "Politics". Miss Vaz expressed
shock--but I assured her most of the co-operative banks are off-shoots of
politicians. I reminded her of the sugar barons of Maharashtra with their
strong urban banks.
Miss Vaz was one gentle,
gregarious, kind person. It was a privilege to work with her.
- P.P.Ramachandran
Best tribute........ Vaz was
Shri Khot's tribute to Ms. Vaz (VITALINFO 31/1/2013) is excellent and the best as I could not find either substance or warmth in the tributes paid by others. I am not surprised at all as Shri Khot's thoroughness of disposals and drafting were found by me to be of a high standard even when he was at the bottom of the hierarchy in the RBI. He should have risen to a much higher position in the RBI than he actually did. This has become a tribute to Shri Khot! This is okay as I have got an opportunity to write about him!
- A. Chandramouliswaran
RBI is doing too much too soon: Latha Venkatesh
Q. RBI Governors both YV Reddy and Mr Subba Rao have held the economy together despite immense pressure to be populistic. Your views on this pls Asked by: eega
A. I agree with you. (I would add Jalan and Rangarajan to this list. Before them, I was not following the RBI) Our country has been lucky to get RBI governors who are honest men. Men of integrity.
Q. Why is Subba Rao so adamant about cutting the interest rates? Asked by: Priya
A. You mean he is cutting rates too soon. I agree, he needn't have cut repo and CRR. Only repo would have done. I too think he is too dovish. He probably believes growth will solve a lot of problems. But the easy money policy is bringing more inflation not more growth..............
Chiranjeevi welcomes RBI's decision to allow hotels to repay loans through ECBs
Union Tourism Minister Chiranjeevi has welcomed the decision of the Reserve Bank of India (RBI) to allow Indian companies in the hotel sector to avail benefits under the External Commercial Borrowings (ECB) scheme to repay their outstanding rupee loans and or to finance fresh capital expenditures.........
RBI does its bit, will govt step in too?
Nine months after it last cut the repo rate, or the rate at which it lends money to banks, the inflation-fighting Reserve Bank of India (RBI) has announced a 25 basis points (bps) cut in the key policy rate to 7.75%. The RBI seems to have lessened the gap between promoting growth and containing inflation with this move. With the ball now in government’s court, will it work towards developing better policies and improve basic infrastructural needs. Speak Up finds out.........
Read - DNA
Read - DNA
FM meets financial sector regulators ahead of Budget
NEW DELHI: Finance Minister P Chidambaram today discussed the issues concerning regulatory environment and deliberated on steps which could be taken in the Budget in a meeting with financial sector regulators. "We gave suggestions for Budget from our respective point of view," RBI Governor Duvvuri Subbarao told reporters after the meeting here. .......
Open Up Banking
...........The main argument against
bank licenses to corporate groups is the apparent conflict of interest
and diversion of funds to promoter-owned or related companies. Such
arguments are deceptive as the draft licensing guidelines lay stress
on credentials and track records of promoters, ensure more independent
directors and also ring fence banking from other group activities. In
fact the clash of interest argument is more applicable to public sector banks that are victims of political pressures.....
Transforming Lives of Informal Sector workers
After conducting the workshop on Community Consultation on Financial Inclusion for Urban poor on 7th December, 2012, Nidan staff went to many public sector banks and briefed them about the RBI circular and thereafter the opening of bank accounts have become very easy as the bank officials are now willing to open bank accounts of the unorganized sector without any restraint, this has helped in bringing the marginalized workers of the unorganized sectors into the mainstream, where they can now have accesses to various financial services. As suggested by RBI Deputy Governor Dr. K.C. Chakrabarty regarding opening of bank accounts in “Camp Mode”, the first camp in Delhi, was organized at Shahdara, Delhi.Total 70 bank accounts were opened on 23rd January 2013. Another camp was organized on 24th January ...........
RBI raises bar for banks on corporate debt recast
.....“It has now been decided to increase the provision to 5 per cent in respect of new restructured standard accounts (flow) with effect from April 1, and in a phased manner for the stock of restructured standard accounts as on March 31,”......
Resistance is natural when you change: DK Mittal
......."Occasionally, there are concerns over the government exercising its
ownership rights not through the established channel, which is the board
mechanism, but outside of the board," RBI Governor
D Subbarao once said, without citing any specific case but making it
clear that he was referring to directives from finance ministry to the
banks. Most bankers, however, said there was much to appreciate
in the work done by Mittal. "He has done a really good job. Perhaps the
instances of micromanagement could have been avoided,".........
Takru to meet PSB chiefs on Feb 5
........In his first interaction with bankers, Takru would also review the progress of banks’ financial inclusion plans. Earlier, banks had been asked to prepare financial inclusion plans duly approved by their boards. Under the financial inclusion programme, the Reserve Bank of India has mandated banks to extend financial services through branches or business correspondents to 73,000 villages with ...........
Inflation Index Bonds: Issues and challenges
....Issuance of inflation indexed bonds in India is full of challenges for RBI. The first and the most important challenge come from the fact that we have two indices which are used for calculation of inflation. One is Wholesale Price Index (WPI) and the second is Consumer Price Index (CPI). Which one should RBI use for benchmarking inflation indexed bonds? This is a dilemma which many governments internationally have faced......
Tamil Nadu banks set to get 1,000 cr after RBI cut
....The cuts will infuse an additional Rs 18,000 crore into the banking system. Of this, Tamil Nadu's share is expected to be slightly over Rs 1,000 crore. City-headquartered Indian Overseas Bank (IOB) is expected to get Rs 475 crore. "This infusion will help us generate an income of Rs 48 crore over one year," M Narendra, chairman and managing director, IOB, said......
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