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.
Thursday, February 14, 2013
Kudos to Mr Subbarao
India’s inflation puzzle
...........A couple of weeks ago, Deepak Mohanty, and Executive Director of RBI, gave a speech in which he tackled India’s inflation puzzle. I will outline what he said, and then assess the arguments. Mr Mohanty first pointed out that India’s recent inflation surge and its persistence did not line up well with either its own history or what has been happening contemporaneously in the rest of the world.............
RBI sets up panel to study exporters’ concerns
Committee will be chaired by RBI Executive Director G. Padmanabhan
The Reserve Bank of India (RBI) on Wednesday set up a technical committee to study issues related to difficulties being faced by exporters with regard to the availability of credit and transaction costs, among other areas..........
Long bankers' queue for Lakshmi Vilas Bank CEO
.......The applicants include senior executives from the State Bank of India, a former official of the Reserve Bank of India, and business heads of ICICI Bank, HDFC Bank, Axis Bank, Citibank and Hongkong and Shanghai Banking Corp. The CEO’s post in the Tamil Nadu-based private bank has been vacant after P R Somasundaram resigned from the position late November last year. He had left the bank due to “personal reasons”.......
Islamic Banking – Participatory, Equality & Indian law
.....Had RBI as financial engineer studied financial products used under Islamic banking system, might have developed new secular financial products with equally attractive and acceptable to Indian Muslims as well. But the internal working group of RBI constituted for this purpose sensed mysticism in Islamic banking with inextricable influence of religious doctrines, and delineated the principles and entire gamut of financial products used in Islamic banking for better understanding. So the report presented by that working groups mostly dealt about legal hurdles disallowing Islamic theology in present banking system; and did not focus on evaluating the scope of alternative financial products potential for financial inclusion.........
Banks pump back counterfeit notes to skirt trouble
......A police officer said certain banks were indirectly aiding counterfeiters by pumping the fake notes they catch into ATMs. “They have nothing to gain by alerting the police about the counterfeits. We have information that at least some banks put fake notes into their ATMs. From there some unsuspecting man on the street gets it,” ............
Tortoise treatment
Co-operative banks account for a minuscule proportion of the country’s total banking business and nothing reflects this more than the slower-than-tortoise pace at which the Reserve Bank of India (RBI) sends them orders............
The RBI tightens up
.............. In the short run, the end of regulatory forbearance may lead to an even larger gap between the valuations of private sector banks and those of PSBs. But it is the only road to a healthy recapitalisation of the banking sector.
India Inc and the Big Bank theories
The Reserve Bank of India (RBI) appeared un-consulted when Pranab Mukherjee, the then finance minister, invited new players to set up banks in his Budget speech in February 2010. It surprised many in the central bank because consolidation in the banking sector was the most debated topic in those days. Now, three years on, it is more or less certain that a new set...........
Financial markets can expand only if we tackle financial inclusion first
....."Though Financial Inclusion has remained a national agenda for a fairly long time, as reflected in initiatives such as the co-operative movement, bank nationalization, lead bank scheme, setting up of RRBs, etc., the progress has been nothing to write home about. Why has this been the state of affairs in our country where banking, in some formal way, has been in existence for more than 200 years; where we have several banks which have been in existence for more than 100 years,".........
This chart shows how FM stole his own thunder before Budget
.............“Focus will now be on Stability, Credibility on fiscal consolidation and Reform intent in order to reposition India as an attractive investment destination,” the report says. But as the RBI’s recent monetary policy shows, the real challenges lie ahead. The current account deficit is likely to get worse in the third quarter, and if the fourth quarter does not show significant improvement, the RBI will again have to be cautious on rate cuts............
PSU banks likely to get Rs 20,000 cr fund infusion in next fiscal
.....The RBI has extended the rollout date for Basel III by three months to April, 1, 2013. During the current fiscal, the centre has approved infusion of Rs 12,517 crore in around 10 state- owned banks. It had infused about Rs 20,117 crore in public sector banks during 2010- 11, and Rs 12,000 crore in 2011- 12..........
Small rate cuts do not help you save much
..But how much of a difference would this make to equated monthly instalment (EMI) or the total interest payout for the entire tenor? Numbers show that it doesn’t make a huge difference if the loan amount is less. For higher loan amounts, the saving is a little higher.........
Banking Taken a Hit? Yes. Is It Cause for Alarm? No
.....Today, it is a classic scenario where you have declining industrial production, you have declining top line inflation, you have declining core inflation, you have high consumer inflation no doubt, which is a supply side issue, and you have some shortage of money supply. In this situation, dynamic growth seems to get a little heavier. And that is what we are saying, our recommendation is a tough one, it is for the Reserve Bank to decide but we would like to see maybe a 50 basis point cut in the repo rate and a 75 to 100 basis point cut in cash reserve ratio. It would not only change the sentiment, it will bring down interest rates, and will give a fillip to consumer demand. ........
Lot for the financial sector happening on the sidelines of RBI guidelines
Lot for the financial sector has been happening on the sidelines in the form of the RBI guidelines that keep on coming from time to time whether it is for the NBFCs, for microfinance and gold loan companies.....
Fake notes via Bengal 'the best'
.....Experts are worried because producers of the fake notes routed through Bengal have managed to replicate all 12 "overt" security features of genuine notes with a scary degree of accuracy. "The paper and ink used are of a very high quality too, making it tough even for experts to detect the fakes," an RBI official who did not want to be named said on Wednesday........
‘Pakistan Security Press ink used for fake notes’
The High Court was informed on Tuesday that ink from Pakistan Security Press is being used for printing fake currency notes in the state. State Public Prosecutor S Dorairaj submitted before Justice K N Keshavanarayana that Sampangiramanagar police recovered fake currency notes to the tune of `30 lakh and.....
Overseas exchanges a fertile ground for fake note circulation
......Though the Reserve Bank of India insists that the currency notes of denomination of 100 and above, circulated by banks, must go through mandatory sorting by machine, the guideline is not adhered to by several banks. RBI has devised a system whereby the currency notes could be checked at the branches or at the currency chest, a regional currency management set-up, operated at a particular office where currency notes are received from various branches. Even if one branch fails to identify fake currency, the machine at the currency chest can detect it.......
Curbing gold imports won’thelp trim trade gap: Sharma
Increasing the import duty on gold alone will not help bridge the trade deficit, Commerce Minister Anand Sharma said on Wednesday, even as the Finance Ministry and the Reserve Bank of India have been taking steps to discourage imports of the precious metal..........
घर की तिजोरी में रखे ‘सोने’ पर RBI की पैनी नजर
........इसके तहत घरों मे बिना इस्तेमाल के पडे सोने को आय के स्रोत मे बदलने के लिए एक स्वर्ण बैंक के गठन की योजना भी बनायी जा रही है। उसने सरकार को भेजे सुझाव में बैंको को उनके द्वारा बेचे गए सोने के सिक्कों की वापस खरीद का अधिकार दिए जाने की बात भी कही है। आरबीआई ने सोने से जुडे चार प्रकार के उत्पादो को बाजार मे लाने का सुझाव दिया है। इनमे गोल्ड डिपाजिट स्कीम, गोल्ड लिंक्ड एकाउंट, गोल्ड एक्यूमलेशन प्लान और गोल्ड पेशन प्लान शामिल है। हालांकि ऐसी किसी भी योजना मे निवेशको को बैकों में रखे जाने वाला उनका सोना वापिस नहीं मिलने वाला है। ...........
Is my credit card safe?
.........On 8 February, Reserve Bank of India (RBI) Deputy Governor Anand Sinha told news agency Press Trust of India in Mumbai that instances of credit card fraud being reported were “of high magnitude”. “We have to be alert,” he added. Various explanations have been proffered for the increase in instances of card fraud, including the fact that most overseas websites do not insist on either CVV or the additional “Secure” layer. “In India, while all domestic transactions are authenticated through the Secure protocol, as per an RBI mandate, many international merchants do not use the Secure protocol for ‘card not present’ transactions,” said an HSBC spokesperson. None of these explanations is entirely satisfactory and experts say the current situation reflects the inability of card issuers, banks, the regulator, and merchants to deal with card fraud. No one is safe...............
Planning for retirement through pension plans?
Among a myriad of financial goals that a person has, retirement perhaps is the most important and long term in nature. No wonder, insurance companies come up with advertisements that harp on how pension plans help create a good retirement kitty. But, even if you start early, pension plans may not give the best returns................
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