Read - IE
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Friday, April 5, 2013
Govt shouldn’t dictate delivery of mandate, says Subbarao
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Need to prevent round-tripping, says D Subbarao
The Reserve Bank of India Governor D Subbarao
has said that there is a need to prevent round-tripping to prevent
abuse of treaties, raising the pitch for tighter control on inflow of
funds from dubious sources. Round-tripping is a form of barter that
involves a company selling unused assets to another and agreeing to buy
back the same or similar assets at about the same price..........
The economy needs shock therapy - S.S.Tarapore
......This will require the RBI to sharply raise policy interest rates and reserve requirements and reduce RBI accommodation. Interest rates on deposits, credit and government securities will rise. Second, to prevent forex reserves from being dissipated, the RBI should buy when there are capital inflows, to prevent an appreciation of the rupee, and refrain from selling when there are outflows. The upshot is that the rupee would depreciate, as it indeed should. At the margin, it is preferable to have an undervalued rupee rather than an overvalued rupee. The RBI would come under severe public criticism but it has the resilience to face up to such pressures, provided the Ministry of Finance and the Planning Commission stop their sabre-rattling, foisting inappropriate, soft policies on the RBI.......
Price stability necessary for long-term economic growth: RBI chief Subbarao
........."I would say the price stability is a necessary condition for growth. It would be futile to believe that you can have growth in a time of rapid inflation."...........
Banks are governed by a code to dealwith customers
Last week, Reserve Bank of India (RBI) Deputy Governor K.C. Chakravarty said that the central bank is mulling to include financial inclusion in the Code of Bank’s Commitments to Customers. This voluntary code is governed by the Banking Codes and Standards Board of India, an autonomous and independent banking watchdog........
Cobrapost impact: ICICI Bank, HDFC Bank, Axis Bank fall on penalty woes
NEW DELHI: Private sector banks such as ICICI Bank, HDFC Bank and Axis Bank plunged 1-2 per cent in opening trade on Thursday, after reports said that while the banks may not have compromised KYC norms, they could still face a regulatory penalty for lax internal governance standards........
RBI trespasser wrote to mom he would return millionaire
Padma Shekhar Nair (28), who was arrested Monday for allegedly trying to force his way into Reserve Bank of India (RBI) with an air gun, had sent a registered letter to his mother two days before the incident saying he would return home a millionaire. Padma stays with mother and sister in Cochin, where he used to work as an accountant at a lottery centre. His father started staying separately around 15 years ago........
Read - IE
Read - IE
My View on "RBI breach: 1k pellets found in Keralite’s room"
Kudos to our dedicated security personnel for preventing the intruder. The top management support and vision to build layers of security starting from the iron grilled barrier to porta cabin, separate entry for staff and visitors and so on has helped to deter, detect and delay any perpetrator from venturing into RBI.
- Maj. P.E. Thomas Panicker
Bankers demand CRR cut in policy review from RBI
.....“We have been seeking for some relief in CRR” S S Mundra, chairman and managing director, Bank of Baroda told reporters after pre policy meeting with RBI. Some of the bankers have also made a case for further reduction in the repo rate, which is 7.5% now. RBI had reduced the repo rate in two successive policies—in January and March—by 25 bps each. Apart from Mundra, chief executives of State Bank of India, Bank of India, ICICI Bank, IndusInd Bank were also present. RBI Governor D Subbarao, along with four deputy governors and other central bankers were also there.......
‘Mindless chase for top line led to NPAs’
Read - TOI
RBI to release discussion paper to clear ambiguity over FDI, FI
..........“RBI will circulate the paper within the next 15-20 days,” he said. Other members of the committee include DIPP Secretary, Chief Economic Advisor in DEA, RBI Deputy Governor H R Khan and SEBI Member S Raman. Mayaram had earlier said that there is a lot of confusion in the mind of foreign investors because of distinction between FDI and FII..........
Beware, skimmers could clean out your bank balance
.....This note of caution comes from none other than the office of the Banking Ombudsman. “The number of such cases brought to the notice of the Ombudsman was just [maybe] one case a week or even a month about three or four years ago,” Ombudsman M. Palanisamy, told The Hindu. “Cards are being skimmed here and used on foreign soil. Bank customers have to be extremely careful while using the cards as well as net banking facility.”........
Traders face shortage of loose change
.....However, officials of RBI say it is a ‘perceived shortage’ as people expect merchants to provide exact change every time. On an average, coins worth Rs. 1 lakh are supplied through the four coin-vending machines at the RBI office on Rajaji Salai. “We allow a person to avail coins worth Rs. 500 only in a single day to ensure that everyone gets enough coins,” an official says.........
Making money concepts fun for children
.....I think it is a very good idea. I know youngsters who think money comes out of an ATM (automated teller machine). Children need to be introduced to and sensitized about banking transactions, interest rates and other such things,”.......
Three with fake notes held in Tripura
Police seized a huge stock of fake Indian currency from three people in south Tripura on Thursday. They suspected the detainees to be part of a cross-border racket engaged in circulation of fake currency.......
Banks ‘distrust’ Aadhar for cash transfer scheme rollout
NEW DELHI: In what could hobble the government's plans to give Aadhar
a key role in banking and a central pin of the direct cash transfer
scheme, several state-run banks have refused to bear any liability for
transactions done with customers that were authenticated through the
unique identity (UID) mechanism. Banks and the Reserve
Bank of India (RBI) had been convinced by the finance ministry to use
Aadhar to fulfill the know-your-customer (KYC) norms - authentication of
identity and address while opening bank accounts. This had been
necessitated by the need to not only give Aadhar a fillip, but also to
ensure enrollment of millions of poor into the banking system before the
cash transfer scheme is fully rolled out.........
First bank finds its way to Kadamakudy
The Union Bank of India (UBI) will soon open a branch in Kadamakudy panchayat, the only panchayat in Ernakulam district without a bank branch. The UBI is the district lead bank under the Lead Bank Scheme of the Reserve Bank of India (RBI). The branch will be opened in a few months, a top official of the bank has said.......
Who is to be blamed for money not coming into financial markets?
......To make their money come to the financial markets, the government and regulators will have to do more. Like the rolling out of new KYC norms and incentivising mutual fund distributors for sales beyond top 15 cities or RBI's rural focus. That too has a limitation........
Where’s that elusive bottom?
......... Far from indicating a recovery, the credit data suggests that the economy may not have reached its much-coveted bottom yet.
Poll panel is watching every high-value bank withdrawal
....A senior official of a nationalised bank said banks usually inform the Reserve Bank of India about any transaction above Rs. 10 lakh. The official said banks would comply with the Election Commission’s new directive........
Rotten agents spoil the Kashmir apple barrel
.....The survey on “Marketing System and Price Spread of Apple in Kashmir”, according to sources, will be released here on April 17 by Chairman of NABARD Dr. Prakash Bakshi before its passage to the State Level Bankers Committee. The survey may compel Reserve Bank of India (RBI) to reframe its guidelines and directives to the financial institutions in Jammu and Kashmir as it has shown that the banks have been continuously “encouraging feudal system and usurious lending by commission agents” in violation of rules and regulations........
Sahara assets: RBI asks banks to comply with Sebi order
.....Since banks come under RBI's purview, a communication from the central bank has helped implement the Sebi decision. ......
High CAD is bad for you
.....But if one goes by experts, a high CAD is not just bad for global travel or education; it might even discourage the Reserve Bank of India (RBI) from cutting the repo rate aggressively. "The central bank cannot ease policy rates till CAD comes in control. Hence, existing borrowers will have to continue paying high rates and new borrowers may want to wait. Today, inflation is not the only criteria for lowering rates,".....
Should India see IMF doctor before it falls sick?
...It may seem like the kind of gratuitous advice of the sorts that are proffered by newspapers every day of the year. But on the strength of his insider’s account of the goings-on of 1990-91, Srinivasa-Raghavan wonders if there is more to it. The “influential business newspaper” (by which he means Business Standard) counts on its editorial board a former Chief Economic Adviser to the government (Shankar Acharya) and a former Deputy Governor of the RBI who demitted office just now (Subir Gokarn). When the advice to go in for a standby loan from the IMF comes from erstwhile insider with their ear to the ground perhaps there may be something afoot. “Is something along those lines being contemplated?” asks Srinivasa-Raghavan...........
Getting down to ‘ BRICS’ tacks
WHILE the latest summit of BRICS - Brazil, Russia, India, China and South Africa - was on at Durban, South Africa, last week, there seemed to be nothing unusual about the proceedings. It was business as usual. Since the main item on the agenda was the formation of a BRICS bank as the global South's answer to the World Bank and the IMF that are unashamedly pro- West and neglectful of the developing countries, there was broad support for it. However, refreshingly, there were thoughtful voices of caution: the objective was worthy, but BRICS must go about it slowly...........
Canara Bank - Appointment of Executive Director
............the Central Government after consultation with the Reserve Bank of India, has appointed Shri V. S. Krishnakumar, presently General Manager, Allahabad Bank as Executive Director of Canara Bank,........
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