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| "I have sympathy with that view (that high interest rates was hurting growth). I am not saying that's an invalid criticism. But I just want to say that their voice is heard, but people who are hurt by inflation - the large majority of the poor - their voice is not heard." |
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.
Tuesday, February 12, 2013
People suffering due to high inflation forces RBI governor D Subbarao to hold rates
At 7.2 % inflation is still high, says RBI Governor
Ahead of the January inflation readings later this week, Reserve Bank Governor D Subbarao on Monday said the price rise index which slowed to a three-year low of 7.18 per cent in December, is “still high.” “If you take the macroeconomic context today, you find that growth has moderated, inflation has come off the peak, but even at 7 plus per cent, it is still high,” he said while addressing the convocation of the RBI-promoted Indira Gandhi Institute of Development Research here...............
Subbarao warns of record current account deficit
Reserve Bank Governor Duvvuri Subbarao on Monday cautioned the country was headed for the highest ever current account deficit this fiscal, after it rose to 5.3 per cent of GDP in the second quarter. “Last year, CAD was 4.2 per cent of GDP, but this year we expect it would be significantly higher than that. It’s going to be historically the highest CAD measured as a proportion of GDP,” the Governor said, though he refrained from giving any figure............
K.N. Raj’s services recalled
......Dr. Raj, who hailed from Thrissur, made a name for himself computing India’s balance of payments for the first time for the Reserve Bank of India (RBI) and being a co-author of and writing a foreword to the First Five Year Plan document. Dr. Raj played a major role in raising India’s rate of savings. He and his colleagues drew up a 20-year perspective of increasing the rate of savings from 5 per cent in 1950-51 to 20 per cent by 1970-71.............
Banning GDP
.......Take corporate taxes which have fallen, from 3.8% of GDP in FY08 to a budgeted 3.7% of GDP in FY13—the actuals could be even lower due the fall in India Inc’s profitability. Even more important is the likely impact on the current account deficit that the RBI Governor has said will be even higher in Q3 than it was in Q2 when it touched a record 5.4% of GDP...........
HC dismisses petitions against AP MFI Act, state unlikely to repeal Act
......"The challenge of the Act by MFIs has been dismissed. Therefore, the AP MFI Act stands," said Reddy Subrahmanyam, principal secretary with AP's rural development ministry, the man behind the controversial Act. He said the court has advised the state government to review its MFI Act in the light of the central MFI bill and the RBI circulars that may address the concerns of the AP government on protecting the borrowers' interests.........
Failure of Fixed Income Derivative Markets in India - Nachiket Mor
I was recently made aware of a fascinating speech on this topic given by Mr. V. K. Sharma (ED, RBI) in Mumbai on November 8th, 2012. In this speech he takes the example of three fixed income derivative contracts and examines why all three of them have failed to live up to their original expectations. He concludes his speech by making some important recommendations on what might be done to redress these failures...........
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Stir will cripple life: Dasgupta
.....Mr. Dasgupta said the general strike, called by all the 11 recognised central trade unions against the ‘anti-people economic policies’ of the Central government, would be the largest such agitation in the country. “It is for the first time that a 48-hour general strike is being called after Independence,” he said. It would cripple the functioning of all strategic industries, including telecommunications, posts, banks, insurance, and transportation, though the Railway unions were not joining the strike.........
Working class urged to unite to evolve pro-poor policies
.....Mr. Veeraiah who inaugurated the ninth conference of the All India NABARD Employees’ Association on Sunday attributed the present crisis facing the economy to the political-official-industry nexus. The Central government that doled out concessions to the rich and influential, amounting to Rs.5.22 lakh crore tax exemptions, was trying to do away with subsidies for poor and working class, he said......
Banking Penetration
The RBI governor D Subbarao, during his Guwahati visit on Wednesday was informed by the Assam Chief Minister Tarun Gogoi regarding the low credit–deposit (CD) ratio in North–East India vis–à–vis the rest of India. The CD ratio in Assam is indeed very dismal given the fact that the CD ratio, despite improvements being effected stand at 46.6 per cent in September 2012 as compared to the national average of 76.6 per cent. Gogoi urged the RBI governor to introduce a system of incentivizes and disincentives for the banks whose CD ratio fell below 40 per cent................
Banks yet to comply with norms on dormant accounts
...........As on December 31, 2011, a total amount exceeding Rs.2, 481 crore was lying as unclaimed deposits in 1.1 million accounts of various banks in the country, according to the RBI. On a modest estimate, at least Rs.100 crore could be remaining idle in banks operating in Kerala. RBI officials said the apex bank had not extended the deadline, but a circular was issued as a follow-up to all banks to review the position by September 30, 2012. Most banks have complied with the norms, an official said...........
Making banking a basic right
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| Bank unions have a crucial role to play in making banking a fundamental right. Unions are no longer adversaries of bank management, they are equal stake partners............ |
Read - The Hindu
Avoid arbitrary pricing of banking products & services, says RBI’s Chakrabarty
..........Banking services are now available in over two lakh villages, but about four lakh villages still have no access to the services. Banking services can be extended to un-banked centres in both rural and urban areas by leveraging on technology, he added. Arbitrary pricing of banking products and services must be avoided to bring these within the reach of the common man, he emphasised..............
Banking reforms leave cooperative banks in the lurch
The banking sector reforms in the country may gradually kill cooperative banks in Kerala, feel experts. Amendments to the banking law, coupled with the new bank licensing policy of the Reserve Bank of India (RBI), pose a serious threat to the mass banking concept in the country, and particularly the state...........
Despite concerns, India to let corporates into banking
............India will soon allow corporate houses to open banks despite misgivings within the Reserve Bank of India (RBI) as well as the International Monetary Fund that it could lead to risky loans if newcomers succumb to the temptation of lending to their related firms........
Entry of new banks will promote healthy competition, says PNB chief
.....The Reserve Bank of India might soon come out with its final guidelines on new bank licences, said Punjab National Bank Chairman and Managing Director K. R. Kamath.
The entry of new banks into the system would encourage healthy competition, thereby benefiting customers, he said......
A roundup of mobile banking apps for small businesses
......Today, mobile banking (m-banking) has become a credible mode to transact for a large number of small businesses. A number of private and government banks have introduced mobile banking applications, as they compete for small business customers who demand more user friendly and convenient services on their handheld devices. According to a recent report from the Reserve Bank of India (RBI), 13 million people used m-banking services in the fiscal 2012. 49 banks were involved in 25.6 million m-banking transactions that were valued at Rs.1,820 crores in the same period..............
Banks can open A/cs for Bangladeshi nationals sans RBI nod
....."...it has been decided that henceforth, banks would be permitted to open NRO account of individual/s of Bangladesh nationality without the approval of the Reserve Bank," it said in a notification. The permission is granted subject to the conditions the bank should satisfy itself that the individual holds a valid visa and valid residential permit.............
LuLu group chief Yusuffali MA seeks RBI nod to buy 4.99 pc stake in Catholic Syrian Bank
........The proposed transaction will help Chanrichawla to bring down his holding in CSB closer to the 10 per cent cap set by RBI, from 18 per cent he currently owns. "I'm not a banker and I have no intention to control the bank... But if RBI allows, I will consider buying another 3 per cent," Yusuffali told ET over telephone. As on March 31, 2012, the bank had an asset base of Rs 12,047 crore and recorded a net profit of Rs 25.9 crore. ...........
'12 lakh PAN holders haven't filed returns'
Concerned about meeting the tax targets, the finance ministry has once again trained its guns on tax defaulters. While urging taxpayers to disclose their true income, the income tax departments has warned that it will be taking stern action against over 12 lakh PAN holders who have not filed their returns.............
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