...............The Reserve Bank of India (RBI) which, for a very short period in the latter half of the 1990s, revealed the CAD-CR ratio, has quietly buried this figure in its mass of balance of payments data. The RBI should highlight the trends in the CAD-CR ratio in its forthcoming Annual Report. As Y.V. Reddy has perceptively commented recently, one cannot have a single CAD-GDP ratio which is appropriate over the cycle. If the CAD-GDP ratio is 5 per cent at a low point of growth how much higher would it be when growth gets back to a trend line of, say, 8 per cent?............
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 22, 2013
A real currency war
.......Coming back home, the rupee volatility has been declining despite the thin market imposed by the Reserve Bank of India. However, any upsurge in global volatility would certainly upset this tentative calm and make risk management even more difficult — be very careful.
UK govt bows to public pressure—rejects abolition of cheque system. Will RBI follow suit?
....It is surprising that while the decision of a tiny country like Ireland to abolish the cheque system is fairly brought out in the discussion paper of the RBI in support of the proposal, the decision of the developed country, the Mecca of banking like Great Britain to completely shelve the idea has not even found a casual mention in the discussion paper, though the decision in UK to scrap the project was taken as early as in July 2011—much before this proposal was thought of by the RBI.......
In hoax we feel happy..........
-------- Original Message --------
Subject: PAYMENT NOTICE OF 7,50,000GBP FROM RESERVE BANK OF INDIA!
From: Reserve Bank of India <info@rbi.org.in>
Date: Wed, February 20, 2013 9:22 am
To: undisclosed-recipients:;
OPEN THE ATTACHED FILE AND REPLY WITH YOUR COMPLETE DETAILS TO THE
TRANSFER DEPARTMENT OF RESERVE BANK OF INDIA
<PAYMENT NOTIFICATION OF YOUR FUNDS..docx>
Pl. see the above mail received by my daughter. Such frauds are increasing day by day. Even RBI is not spared. This must be circulated to all RBI'ts.
- C.P.Sonak, Ex-DGM
I am thinking of sending a hoax mail to all retired people that their
PENSION UPDATION case has been cleared at the highest level.The real
mail we do not get, at least the hoax makes us feel on par with Ambanis
and Mittals.
- Sitendra Kumar, Ex-GM
Wage Revision Remains in Cold Storage - 2 Day Strike by Bank Staff - UFBU needs to draw its strategy
...... I think at this time, the top most agenda item which every banker wants to discuss is the 10th BPS, which has become due from 1st November, 2012 i.e. almost now it is 4 months overdue. For certain sections of retired bankers the core issues to be resolved are - 2nd pension option to resignees etc, 100% DA neutralisation to pre-01/11/2002 retirees, and updation of pension. I think, there will be hardly any bankers who will disagree with me on this issue except some hardcore UFBU leaders. If this is true, then question arises why UFBU decided to waste its energies on political issues which are not likely to bring any results for the bankers or the country............
Indians prefer to put their retirement savings into cash deposits: HSBC
..........."When the economic downturn first hit and many people reduced or stopped saving, everyone expected the storm would eventually pass; but today's shifting economic and social trends require people to think differently about their planning and prepare for the unexpected,"..........
A Budget for savings?
......The Reserve Bank of India also has to balance the interests of domestic industry (calling for quick and substantial cuts in rates) and those of savers. A move to aggressively cut rates may further push savers out of financial assets. Even today, bankers are reluctant to cut deposit rates, since deposits are only growing at 13 per cent. A substantial reduction in lending rates looks tough, unless deposits start growing again. Unless the pool of financial savings can be significantly enhanced, deep rate cuts by lenders are just not possible.........
A budget in the shadow of record current account deficit
..... Well, the Reserve Bank of India (RBI) believes the country’s sustainable current account deficit is 2.5% of GDP. It’s far above that level now, and the massive gap has to be financed through capital inflows, which makes the Indian economy completely dependent on the kindness of foreigners. Any loss of confidence in India’s growth prospects, any lessening of global risk appetite, and fund flows to the country’s markets could start drying up, dragging down the rupee and leading to a stampede for the exits.......
Pvt Banks Take Country Roads to Keep Competition at Bay
A few
private sector lenders have started strengthening their rural presence
as they prepare to take on competition from new players who are being
granted licence as part of the government’s financial inclusion plan.
While HDFC Bank is reaching out to the rural community on its own, Axis
Bank and Yes Bank are working through business correspondents, or local
representatives, and tie-ups. The push into these regions, though not very lucrative, is also in part due to the saturation in the urban areas........
A walk on the wild side
.........Pressures to spend will always exist, says Subir Gokarn, an economist and former bigwig at the RBI. In areas such as education and infrastructure, that is only right. So revenues need to rise. A new report by the IMF compares India with other countries, adjusting for their wealth. It implies that India’s government revenues should be 25% of GDP. At present they are just 18%..........
Growth versus Inflation
........The Reserve Bank of India (RBI) may take pride in claiming, even if in jest, that it has prevented a “big bang collapse” and that in pursuing higher growth and lower inflation, it has reduced the repo rate and cash reserve ratio (CRR) by 0.25 percentage point each in its latest policy statement of 29 January 2013 (RBI Post-Policy Conference Call for the Media). However, it is not surprising that the domestic financial markets have uniformly reacted adversely to the measures on the ground that the RBI policy correction was too meager and that it has come a long time after the economy had slipped into a morass of depressed business conditions..........
RBI officials fear budget choices give less room for rate cuts
.......Yet, officials in the Reserve Bank of India fear that cutting capital spending on projects with strong multiplier effects like building roads and bridges, won't help revive growth, which is seen as a priority if the economy is to avoid a downward spiral. And they also worry that maintaining populist spending on subsidies for food, fuel, fertiliser and cooking gas will push up prices......
Realtors, brokers to get RBI lifeline
The Reserve Bank of India (RBI) has softened its stance on allowing real estate firms and brokerages to apply for banking licences. Sources familiar with the developments said the final guidelines, to be announced by the end of the month, would set aside its earlier reservations about these entities............
RBI works comes standstill due to staff strike
JAMMU, Feb 21: The local units of RBI Workers Union and Reserve Bank Employees Association observed two days’ strike on February 20 and 21 on the call of All India Central Trade Unions. They were protesting against the failure of the government to control price rise, worsening economic conditions, outsourcing of work, exploitative and anti-labour policies of the government. The work in Reserve Bank of India came to a standstill due to the strike. The protesting employees held massive demonstration at the gate of the RBI building at Jammu under the aegis of Jammu Chapter of United Forum of Reserve Bank Employees and Workers. Later the leaders of the constituents of the United Forum including BS Kirola, Secretary, Reserve Bank Employees Association, Supen Kumar, Chief Secretary, Reserve Bank Workers’ Union, Raj Kumar, President, Reserve Bank Workers’ Union, among others. The speakers highlighted the importance of the issues being agitated by the trade unions all over the country.
Kashmir Times
Over 4 million cheques worth Rs. 250bn remain unprocessed
.........“About 4 million cheques worth about Rs. 250 billion could not be processed on Wednesday in various clearing houses of National Payment Corporation, RBI and SBI. Clearing operations were totally affected in all the district and town centres also.”............
ATMs act as saviour for citizens
Outsourcing of work to fill cash in the automated teller machines (ATM) acted as a respite for ATM users in the two-day period of bandh. Despite banking services getting disrupted, the ATMs did not dry up on February 20 and 21...........
Rs. 2,000 cr transaction blocked in banks
Terming the two-day nationwide bandh call opposing the anti-labour policies a success, joint secretary of National Organisation of Bank Workers (NOBW) Prakash Deshpande said that transaction of Rs2,000 crore was blocked in banks...........
Inflation- fired bandh
....Among the slew of demands, the most appealing to large sections of the people was the one about taming runaway inflation. The poor and the middle- income groups are hit the hardest by the doubledigit price- rise. The failure of the government to rein in fiscal deficit lies at the heart of the inflation problem. In real terms, incomes of salaried classes and of the vast numbers in the unorganized sectors have shrunk in recent years.......
Banking, transport sector hit on day two of nationwide strike
.....“A majority of ATMs have dried up while (bank) branches are shut. Additionally, there has not been any cheque clearing as personnel from RBI too joined the strike. It will take at least 2-3 working days to clear the backlog for banks”, said All India Bank Employees Association Vice President Vishwas Utagi.....
Banks, industry must work together: Anand Sharma
Union minister for commerce Anand Sharma on Wednesday said industrialists and banks should engage in meaningful dialogue to facilitate investment and growth and address challenges facing the economy. The minister also asked banks to lend to small entrepreneurs, artisans and weavers at affordable costs. “Economic activity is not an option but a priority and a national imperative,” Sharma said while speaking at the FE Best Banks Awards..........
Indian banks need to raise Rs.2.7 trn by March 2018
Indian banks need to raise Rs.2.7 trillion by March 2018 to meet the capital requirements mandated by Basel III international standards, Crisil Ltd, the local arm of global rating agency Standard and Poor’s, said on Thursday. The Reserve Bank of India has already issued capital regulations that domestic banks have to start complying with in phases from April. Of the Rs.2.7 trillion Indian banks need to raise, a minimum of Rs.1.3 trillion should be raised as equity capital and up to Rs.1.4 trillion as non-equity funds, Crisil said in a statement........
Mounting NPAs offer little respite to public sector banks in third qt
The October-December quarter brought little cheer for public sector banks that are still struggling to manage their asset quality and keep net interest margins (NIMs) from falling. Bankers say restructured loans remain an overhang, especially in sectors like.........
NBFCs likely to get tax treatment parity with banks
.......Like other lenders, NBFCs too follow the Reserve Bank of India's (RBI's) prudential norms and defer income regarding their NPAs and make provisions for the same. However, income tax authorities do not recognise these norms and tax NBFCs on such deferment of income on accrual basis resulting in tax on unrealised income. Sources in the department of financial services said the government is "positively inclined" to offer tax parity to NBFCs and the other lenders describing it a "reasonable demand" and hinted that the Budget could announce this change...........
Former LIC chief takes charge as Irda chairman
It’s a comeback any professional would dream of. Less than two years after he was demoted to managing director of Life Insurance Corporation (LIC) following charges of financial irregularities, something that eventually prompted him to take voluntary retirement in November 2012, T S Vijayan was appointed chairman of the Insurance Regulatory and Development Authority (Irda), the country’s insurance regulator. An Irda statement said Vijayan had taken charge with immediate effect...........
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