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| "If we do the right things, we can get back on a high growth trajectory. We can accelerate growth and improve welfare only if we effectively implement wide ranging economic and governance reforms. Slipping up on this will amount to a costly and potentially irreversible squandering away of opportunities." |
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, March 14, 2013
India growth story still credible, says RBI Governor
Banking On Inclusion
.........Deepak Singhal, Regional Director, Reserve Bank of India upholds that financial inclusion needs to be based on the core principles of affordability, availability, reliability and awareness. “Financial Inclusion is based upon both supply and demand. By opening an account you can create supply but there has to be demand as well and that can only happen by increasing awareness,” he says. Even as a brick and mortar presence is important for banks in rural areas, Singhal is of the opinion that the focus should be on creating demand for banking services in the existing rural bank branches present in 36,000 Indian villages. One of the major guidelines for new (private) players vying for a banking licence is their plan for financial inclusion, Singhal reinforces................
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Ensure interest subvention for genuine candidates: Collector
....Speaking at an awareness programme organised by the Banking Ombudsman Office, Chennai, in co-ordination with the Indian Overseas Bank, the lead bank of the district, he wondered how Rs. 700 crore could have been extended as agricultural crop loan whereas the cultivable area available in the district itself is only 80,000 hectares of land. “Even at the highest scale of finance, this does not match.”.....
Now, a phishing email in the name of RBI
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| ...........The email says RBI has launched a new security system, asking users to click on a link to open a page with list of banks in place. Once anyone chooses a particular bank, it asks for all net banking details, including card numbers and the secret three digit CVV number, among others........... |
Govt Finalises 20 Names for Top Posts in PSU Banks
MUMBAI: The government has finalised a list of over 20 bankers for appointment to senior positions in state-run banks for the next financial year, 2013-14. The appointments committee headed by Rajiv Takru, secretary.......
An open letter to RBI governor D Subbarao
Retired bank heads gear for new innings
Retired public sector bank chairmen are all set to begin their second innings thanks to the Reserve Bank of India (RBI). With the RBI coming out with new banking licence norms for private sector entities, companies are keen to have such experienced people on board. While firms are yet to finalise their plans on new banks, several of them have already initiated informal parleys with headhunters and senior executives of state-owned banks.......
New Banks For An Old Problem
..........“At the very general and abstract level, you cannot have financial inclusion in isolation from other reforms in other sectors. For someone who has to go to pick something in the forest every day for his food, where does the question of a bank come in?” says Y.V. Reddy, former Governor of RBI, who took away India Inc’s punch bowl during his tenure at Mint Road. “There is no evidence in the world to say modern private banks give emphasis to financial inclusion. That is not to say there is no need for more banks from the point of view of competition. But it is wrong to say that they will by themselves bring in more financial inclusion,” he says. ...........
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The anatomy of regulatory independence
.....There was little change in RBI’s position from its creation in 1935 and 1991. After 1947, it was handmaiden of an economy in the pincer-grip of vicious planning. Independence was irrelevant as credit allocation, rates, bank ownership, and currency were controlled. And automatic monetization of fiscal deficits was pervasive. Government intervention was rampant, degenerating into banks being required to adhere to economic policies instead of prudential ones. Governor Rama Rau's resignation in 1958 after unceremonious treatment by the finance minister was symptomatic of the prevailing conditions. With the reforms of 1991, new banking licences in 1993-94 and elimination of ad hoc treasury bills in 1997, RBI’s autonomy turned a new leaf. This was bolstered by the FRBM Act relieving RBI of the task of underwriting federal borrowing. The debate on autonomy in India restarted in the mid-2000s, with the famed scuffles between the then RBI Governor Y.V.Reddy and the finance minister. But this was not just a clash between two personalities and had a structural element to it........
Subbarao Likely to Grant PC’s Wishes
Reserve Bank of India (RBI) Governor Duvvuri Subbarao on Wednesday sent the strongest ever signal that he would walk with Finance Minister P Chidambaram to revive economic growth by acknowledging the credibility of the fiscal consolidation plan presented in the Union Budget............
Read - ET
Read - ET
Currency wars a zero sum game: Duvvuri Subbarao, RBI
....."We all understand it is a zero sum game. Everyone can't devalue at the same time and benefit, everyone loses,"...........
India Post readies plan to start bank
......"This will benefit rural areas enormously. There are nearly 1.55 lakh post offices and no capital cost of building is required. We are connecting post offices. As it is, we are offering savings bank in post offices and this is a natural progression. The matter is under discussion with the finance ministry and RBI,".............
Inflation should be brought down to 4-6%: Subbarao
............"Inflation above 6 per cent would justify, indeed demand, tightening of the monetary policy stance. It is this understanding that has informed our monetary policy stance," Subbarao said while delivering the fifth IG Patel memorial lecture at the London School of Economics. "Monetary policy is inevitably the first line of defence to guard against inflation getting generalised through unhinged inflation expectations," the governor said, adding he wants inflation to ideally be in the 4-6 per cent range.......
Do not hustle RBI
.....Therefore, all pros and cons should be taken into account before the RBI announces its new monetary policy next Tuesday. It should not be influenced by the tall claims by the PM and others in the government that the economy would revert to the six or seven per cent growth rate next year. It would not. For, there is a lot that has dragged down growth below the five per cent mark.....
Shallow recovery
Consumer inflation, at 10.9% in February, doesn’t look like its easing in a hurry and a big oil bill and weak exports will leave the current account deficit (CAD) at around 5% of GDP in FY13, but RBI has no option but to bat for growth in its monetary policy review on Tuesday. There hasn't been any serious monetary transmission after the last repo rate cut of 25 bps in late January, but having trimmed the policy rate, the central bank would want to keep the momentum going. ............
Pro-growth Subbarao raises rate cut hopes
.."It is important to remember that the drivers of the India growth story - get-up-and-go entrepreneurism, the demographic dividend, a large and growing middle class, the opportunity for productivity catch-up, democracy and a decent legal system - are all intact," ........
PM sees return of growth; RBI governor says policy changes crucial
Prime Minister Manmohan Singh told lawmakers on Wednesday that robust growth will be restored in two-three years even as central bank governor D. Subbarao said in London that this would be possible only if the government is able to bring about structural changes, a view that could hold implications for the next monetary policy review on 19 March...........
Gold: The best possible liquid investment, finds RBI
........After a knee-jerk reaction to rising stock prices, assets and liabilities of nonbanking finance companies (NBFCs), the central bank's working group had concluded that gold could turn out to be the best collateral even for banks. Indeed, it went to the extent of making gold a vehicle for financial inclusion. "There is great scope for expanding financial inclusion in extending gold jewellery loans," said a recent report by the working group headed by KUB Rao. "If banks continue to increase their gold jewellery loans portfolio, the reliance of economically weaker sections of the society on money lenders and pawn brokers will come down considerably."..............
Pot of gold or mirage?
.............. Our public sector banks and other public financial institutions in insurance, unit trusts etc., he says, are encouraging a cosy politician-industrialist nexus to take a hold of the Indian economy, resulting in almost a Russian style klepto-market-capture model, rather than a properly regulated market economy, emerging in India. Wonder how many of the CEOs and promoters who are aspiring for a bank permit are listening to Mr Mistry’s warning.
Core banking must for co-op banks by Dec 31: RBI
........"The Government of India has also observed that UCBs without CBS do not integrate well with the banking system and hence there is the need to quickly adopt this model. CBS is a necessity in today's banking scenario. UCBs are, therefore, advised in their own interest, as also in the interest of their customers, to adopt CBS as soon as possible," RBI said.
Rupee bank officials to approach RBI
PUNE: The administrative board of the Rupee Co-operative Bank Ltd will meet Reserve Bank of India officials in Mumbai on March 14, to press for relaxation in the withdrawal amount by account holders, a senior official from the bank said on Monday..........
RBI questions district cooperative bank requests for banking licence
NAGPUR: The six beleaguered district cooperative banks (DCCBs) in the state, of which three are from Vidarbha, have been served a show cause notice by Reserve Bank of India (RBI). The apex bank has sought a reply within a fortnight as to why their applications to get a banking licence should not be rejected............
Read - TOI
NDCCB wants state to buy its building to bail it out from crisis
NAGPUR: The Nagpur District Central Cooperative Bank (NDCCB), which is struggling to garner funds to meet Reserve Bank of India's (RBI) parameters to secure a banking licence, has approached the state government to buy its building in Mahal.............
Depository banks approach Sebi
..........BNY Mellon, a global investment firm that acts as a depository (a holding entity for a security) for more than 2,700 American and global DR programmes, recently held meetings with the finance ministry, Securities and Exchange Board of India (Sebi), and the Reserve Bank of India (RBI) on the possibility of allowing such instruments, according to a statement from the company.............
Urban woman moving towards financial liberty
A survey by HDFC Life Insurance Co. Ltd and ValueNotes shows that the Indian urban woman is becoming financially independent and has a higher sense of financial liberty. She is actively planning for........
WBIDFC claims Rs 120 cr missing from UCO Bank a/c
West Bengal Infrastructure Development Finance Corp (WBIDFC) today claimed that around Rs 120 crore was missing from its fixed deposit accounts with UCO Bank. The infrastructure financing arm of the state government had parked the money with the Kolkata-based bank in two separate transactions..........
Karnataka Bank to open 20 more branches in as many days
..... “Our bank has won certificates of recognition from the Reserve Bank of India and the National Payments Corporation of India for efficiency in maintaining our ATMs,” .....
Dial ‘M’ To Swipe
..... “They had some apprehensions as ours was a non-linear device. What happens to card-holder data when it is travelling over a public network, was one issue. Since there are three parties in each transaction, there was no charge-back protection. And as these card associations are international, they have set protocols. Indian banks are very hidebound, unlike their US counterparts. So we had to get a waiver from the card association and also convince banks to start using our technology, which meant that while on paper we are two years old, in reality we have been operational for only a little over four months,”..........
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