The Bank of Maharashtra's lead bank cell in Nashik and the District Industries Centre have jointly called a 'town hall meet' in Malegaon on Saturday, to address the issues facing industrialists - especially those under the micro, small and medium enterprises (MSMEs) category. The meeting, which is part of an initiative of the Reserve Bank of India (RBI) to reach out to different clusters in the country, will be chaired by RBI Regional Director J B Bhoria, P K Das (General Manager, RBI Mumbai), ............
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.
Saturday, March 23, 2013
FinMin note to Cabinet on debt office
..........The government is in the process of setting up of a DMO, aimed at separating RBI’s role as the decider of interest rate in the market and at the same time being the banker to the government. In 2011-12 budget, the then Finance Minister Pranab Mukherjee had said that he proposed to introduce the Public Debt Management Agency of India Bill in the next financial year. Earlier, the government had set up a Middle Office in the Finance Ministry on debt management, but had never taken away those responsibilities from the RBI........
Super cop idea spares RBI
..............The proposal for a super regulator for financial services has been hugely contentious with the RBI — the country’s oldest regulator having been established in 1935 — baulking at the idea of losing its independence and having to kowtow to a super boss. The committee appears to have suggested a way out of the impasse by leaving the RBI out of the ambit of the Unified Financial Agency, which will subsume the functions of key agencies such as Sebi, IRDA, PFRDA and the Forward Markets Commission. Banking operations, monetary policy and payment system will continue to be regulated by the RBI............
No more tinkering
.......The Financial Sector Legislative Reforms Commission (FSLRC), which submitted its report to the finance minister on Friday, undertook a very different exercise in drafting law. Instead of whipping up a hurried response to a crisis situation, as has been the dominant style in the UPA's tenure, this was a considered, two-year-long effort at financial sector regulatory reform. The FSLRC takes a rare fresh look at the law. Instead of tinkering with the text of the 60-odd laws that make up the Indian financial system, the commission has written a brand new law, the Indian Financial Code............
Read - IE
Banks not attracting best talent, says RBI governor
Bangalore: The Indian banking industry is not attracting the best talent as bankers are not able to sell banking as a bright and promising career with long-term benefits, Reserve Bank of India (RBI) Governor D. Subba Rao said here Friday. "Today's youths have many careers to choose from and great opportunities to pursue their dreams. Unless we sell banking as an equally bright and promising career with long-term benefits, including remuneration, it will be a challenge to attract the best talent,".........
Cyprus banking crisis is about trust: Subbarao
......the ‘fundamental issue’ in the crisis was the issue of banks safeguarding the interests of depositors, especially small depositors. “When a bank fails to honour its obligation, it loses trust,”.......
Banking sector poised for exciting times: D Subbarao
......I will say that Indian banking is going to be exciting, adventurous and fulfilling. This is because there are five challenges to the Indian banking system – financial inclusion, infrastructure financing, risk management, efficiency improvement and customer service.” ............
Obituary
Shri.N.Rajagopalan passed away. He was 91 years old. He was in RBI for over 35 years and retired as Adviser in the Economic Department. He had assignments in the Central Bank of Zambia. Many of us -- my age group -- had a chance to work with him. He was a soft-spoken officer with a large circle of friends.
Let us pray that his soul rests in peace.
- P.P.Ramachandran
RBI nod for UB Spirits share sale to Diageo
......Appearing for UBHL, senior counsel Uday Holla submitted that the Competition Commission of India and Securities and Exchange Board of India (SEBI) had already given their consent, and with the RBI’s recent approval, the company would be able to get the fund flow from the sale of UB Spirits share.
Indian Entrepreneurs Are Not Sustaining The Country's Growth
Former RBI governor Bimal Jalan has said that it is a paradox that India could not sustain the high growth rate the country experienced in the 2004-09 period, with the same people and the same entrepreneurs, at a talk hosted at New Delhi recently.......
Notification on Basel-III norms soon: Subbarao
.......In his close to an hour-long address on ‘Indian Banking – Looking beyond the crisis’, Subbarao said one concern of Basel-III is that as it requires a higher level of capital; bank credit will be more expensive. “That is a problem for us because our economy is at the stage where requirement for credit will go up. The credit to GDP ratio will go up for several reasons. We are a structurally transforming economy.”...........
RBI tells banks to follow priority sector lending rules strictly
Reserve Bank of India told banks that contingencies liabilities and off-balance sheet items can not be considered as priority sector lending. The central bank said some banks are violating the priority sector lending rules to achieve the annual target. It has now told these banks to declassify the contingent liabilities and off-balance sheet items as priority sector loans with retrospective effect..........
10 postal ATMs in City to encash your PO savings
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| The snail mail’s long-awaited techno revolution is just about to begin, right here in Bangalore. The Department of Posts will launch its first automated teller machine (ATM) for the Karnataka Circle at the General Post Office (GPO) here in two months........... |
Does online payment system need more push from RBI by truncating cheques?
....“Various payment methods are like the engine oil of the monetary system. We all know very well what happens to our car when the engine oil is of bad quality or has dried up. Therefore, the message is loud and clear—please do not mess up with these systems. It is giving good results ‘on its own merits’. When we observe that the online payment transactions are growing a robust 30% on year to year basis over the past 10 years, let it continue on its own growth chart on its own strength.”.....
Five Ways to Stimulate Electronic Payments
....Instead of solely contemplating measures to ban cheques for multifarious transactions and levy a charge for permitting their use in the others, I wish RBI and the banking industry in India focused their efforts on finding ways to directly stimulate the use of electronic payments. With that approach, I'm sure that they'd accomplish the desired shift from cheque to electronic payments a lot faster and in a manner that is more agreeable with payers and payees, who are the two most important stakeholders in a payment...........
Off-balance-sheet exposure not part of priority sector lending: RBI
........“We clarify that this is not in conformity with priority sector lending guidelines. Therefore, banks are advised to declassify such accounts with retrospective effect, where a contingent liability/off-balance-sheet item is treated as a part of priority sector target achievement,” ...........
Monetary Transmission: Lenders may not reduce deposit rate
.........A research note by Nomura says that the transmission from policy rates to lending/deposit rates has never been one-to-one. "At a time when transmission is partially clogged, this suggests that lending rates are unlikely to fall much," .........
Read - IE
RBI's baby steps to easing; to cut rates in June by 0.2%: BofA
New Delhi: The Reserve Bank of India is expected to take "baby steps to easing" and is likely to cut key policy rates by 0.25 percent in its mid-June policy review to revive growth, says a Bank of America Merrill Lynch report...............
9,00,00,00,00,000 extra burden on govt due to Basel III
The Reserve Bank of India (RBI) has estimated that the government will have to infuse Rs 70,000 crore to Rs 90,000 crore capital into government-owned banks to comply with the prudential guidelines under Basel III. KC Chakrabarty, Deputy Governor of RBI, said: “The government has an annual budget of Rs 15 lakh crore and recapitalisation of banks to the extent of Rs 20,000 crore a year is not a tall order. It can be done. The only problem arises if there is a big demand for credit in the economy.”............
RBI Governor for corrective steps to prevent money laundering
......“I believe systems largely safe. However, there is a need for some corrective action and based on the findings of the investigation, we will take corrective action” he said on the sidelines of an event here. “I cannot at this time say or make broad, sweeping statement that there are no transactions taking place at all,” he said. Yesterday, the RBI Deputy Governor K C Chakrabarty had downplayed the money laundering allegations and said the country has a “perfect” system to prevent such offences and that not a single such transaction took place in the sting operation......
IRDA probes insurance CEOs after sting
....."In response to the reports of sting operation conducted by Cobrapost.com alleging money laundering, IRDA has immediately taken up the matter with the CEOs of HDFC Life Insurance, ICICI Prudential Life Insurance and Max Life Insurance," ..............
Why is RBI rushing to defend banks exposed by Cobrapost?
..........RBI’s Financial Statement Reports highlight serious concerns over bank branches selling gold coins, mutual fund instruments, and insurance. RBI has undertaken a thematic (whatever this means?) studies of banks that are active in selling gold coins and wealth management products… We cannot take action on allegations. We go by evidence.” Come on Mr deputy governor, what more hard evidence do you want other than the unedited footage of video tapes?............
Chakrabarty Behaves Like Our Politicians - Exonerates ICICI, HDFC and Axis Banks Even Before Investigation Starts
........I think this statement from RBI top brass will go a long way in damaging the cause of cleaning the Indian banking system of its maladies. Corrupt bankers will now be emboldened and honest bankers will be cornered. I feel pity for this sad day in the Indian banking industry and wonder about the silence of Governor of RBI. Will Mr Subbarao make his position clear? Does he too holds similar views ? .....
How RBI has damaged its credibility in Cobra's sting
....... The Reserve Bank of India (RBI), whose job it is to police the banking system, has gone to the other extreme and pronounced the banks "not guilty" even before it gets to know the results of its own probe into the matter. RBI Deputy Governor KC Chakrabarty, not known for verbal discretion at the best of times, said "there is no scam (that) has happened…as no transaction has taken place." The Business Line quotes him as going further and giving the entire system a clean chit: "Let us not unnecessarily downgrade ourself. Our system to prevent money laundering is perfect, absolutely nothing (wrong with it)." It must be perfect, if a cobra's poison fails to damage its health. Chakrabarty’s observations are dangerous for they assume that..........
Banking sector's asset woes to continue in FY14
.......Rate cuts, therefore, will not have any major impact on asset quality issues, as it won't ease pain for the seriously stressed. At present, bad and restructured loans account for a little more than 10 per cent of total system advances, believe analysts. This will impact the earnings of banks over the next 24 months, say experts. Higher provisioning and strict norms on recognition of bad loans will also impact profitability..........
Carriers can now expand fleet without further delay
......Henceforth, only the initial NOC to launch scheduled or non-scheduled air transport services and in-principle approval for acquisition of aircraft would be required from the ministry as part of the requirements under the Aircraft Rules and Reserve Bank of India guidelines, the spokesperson further said.............
Tamils issue: Protesters in TN target US, Lanka over 'weak' resolution
............Advocates affiliated to the Madras High Court Advocates Association (MHAA) and Women Lawyers Association (WLA) took out a protest march at the Reserve Bank of India (RBI) here. They were, however, stopped by the police near the RBI subway on beach road...........
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