........"How can the finance ministry get more powers? There will be more autonomy for the RBI. Today, it depends on the personality of the Governor. Some Governors may be pliable, while some may be tough. The appointment of Governor also needs to be streamlined. The FM can't say you do this and the RBI can't say 'I got a call from the FM, so I'm doing it. Everything has to be in public domain." "The RBI is very much under the control of the government of India. The Centre can issue a policy directive, a policy directive is what the Centre says it is... All that won't be possible now as everything has to be put in the public domain as per our proposal. How have we designed it?.........
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, April 6, 2013
RBI finds KYC violation in Cobra expose: Sources
The Reserve Bank of India (RBI) found violation of KYC (Know Your Customer) norms by HDFC Bank , ICICI Bank and Axis Bank allegedly involved in a money laundering expose done by Cobrapost.com, CNBC TV18 reported quoting sources................
How banks and funds are gaming money markets in India
Banks and mutual funds in India are earning abnormally high returns in money markets by breaching central bank rules forbidding forward trades, multiple people involved in the practice said, undermining the effectiveness of monetary policy in the process. The widespread practice, known as “river crossing”, involves three-way trades in certificates of deposit (CDs) between banks and mutual funds and typically takes place at the end of every financial year in March when cash conditions in the banking system are tight........
Cobrapost releases new videos of bank officials aiding money laundering
.............Questioning RBI Deputy Governor KC Chakrabarty’s clean chit to the banks, Bahal also accused the Reserve Bank of India of turning a blind eye to the issue of money laundering and said the delay in investigations will only allow the banks to “clean up their act.” “The ways the RBI officials have gone overboard in brushing aside the Cobrapost expose raises certain pertinent issues with regard to the functioning of the RBI itself,” ...........
Probing money laundering: RBI noose tightens
.....While the market was abuzz with talks about banks being found guilty in the RBI probe, HT could not verify the rumours. The regulator declined to share details about the probe. “The investigation of banks is a supervisory matter and is always dealt with bilaterally with concerned banks by the RBI. We do not share it with media,” said the RBI.......
Coin shortage - The need for coin collecting machines - Dr.T.V.Gopalakrishnan
The problem of change for free exchange in transactions is perennial and despite best of efforts from the RBI, no solution is found.One way of solving this issue perhaps is to consider having coin taking/ buying machines in all malls and major hotels where people frequently gather and...............
How to swat the NPA bug - R.Kannan, former Principal Advisor, RBI
.....In order to put the banking system on a sound footing, containing the NPAs in general and administering write-offs activity carefully assumes more importance. Hence, the following suggestions are made from the viewpoint of transparency and effective administration........
Multi-pronged approach needed to address the CAD issue directly
 |
| The historically high current account deficit is threatening India’s macroeconomic stability. The former RBI deputy governor feels the import bill needs to be trimmed on a more urgent basis as finding new export markets is going to be a tough job in a short-term. One key step would be to exploit the price elasticity of demand for petroleum products....... |
Read..............
Widening CAD is becoming cancerous, and no one seems to have a sure-fire answer
..............Is zero per cent CAD possible, as Y V Reddy, the 14th finance commission chairman and former RBI governor, suggested the country should target? Many economists think it’s not practical. They argue that if the rest of the world is willing to give India more money, why not take it, invest and grow faster....................
The Terror Of Numbers
Management guru Stephen Covey talked about three constants in life: change, choice and principles. You could well apply those to the Reserve Bank of India (RBI). In the mid-quarter review of monetary policy in March, the RBI changed its position on policy interest rates and cut the repo rate by 25 basis points. Choice for the central bank is about trade-offs. In this case, it’s the trade-off between it’s priorities of controlling inflation and managing the current account, and pushing economic growth. In his policy statement, RBI governor Duvvuri Subbarao put it best: low interest rates are a necessary but not sufficient condition for reviving economic growth. There is considerable pressure (and will continue to be) on the RBI to take stronger action to promote growth, now that the government has done its bit. But here is where principles count: giving up inflation control as a priority would be a violation of the RBI’s principles. Here, Subbarao has shown the courage to stand by them.
— Srikanth Srinivas (Business World)
Why now?
RBI must force banks to clean up their balancesheet now, not seek postponement
........We believe that shortsightedness on part of some bankers may have led to a situation where they are averse to lower lending rates despite comfortable liquidity in the system. In that case, RBI must ask these banks how far did they lower rates when CRR was reduced on the last two occasions. Back of the envelope calculations suggest that not even 50 per cent of the banks lowered lending rates significantly — a 10 basis point cut in select categories is no reduction. As for deferment of tough provisioning norms, RBI would do well to give the royal ignore to such a demand. ........
Campus Recruitment by PS Banks Now Unconstitutional
..............Bank management of almost all public sector banks has resorted to campus hiring, not only in scale I but in scale II and scale III too. During last ten years top ranked officers of almost all banks have functioned in an arbitrary manner, recruited persons of their choice, giving favours to kith and kins of high profile persons and denying the talented unemployed youth. Recruitment of persons for some personal gain or to give favour to sons and daughters of known dignitaries has damaged work culture in banks and adversely affected the asset quality of almost all banks................
RBI to give nod for new bank licenses in Q1CY14: Sources
...........The central bank is expecting about 30 applications for bank licenses. There has been a lot of speculation as to how many licenses the RBI will issue. From discussions between RBI and the Finance Ministry, if a reasonable number of applications come, then the RBI could give the in-principle proposal by the first quarter of CY2014........
RBI gives 17 licences for White ATMs, Tatas to open soon
The Reserve Bank of India (RBI) has identified 17 non-bank entities out of 19 which applied for setting up White Label ATMs. Two of them including a Tata group company are expected to be operational in next few months. "We had already issued five licences and recently we have given seven more," Vijay Chugh - Chief General Manager (Department of Payment & Settlement Systems), RBI; told reporters speaking on the sidelines of a conference here in Mumbai...........
Desi card RuPay gets global access
.....According to A P Hota, MD
& CEO of NPCI, issuance of RuPay International cards would begin
from July 2013 with two banks. NPCI started its services providing
cheaper access to third-party ATMs by setting up a network with very low
transaction charges with strong support from the Reserve Bank of India. The next stage was to issue RuPay debit cards which would be accepted
at merchant establishments across the country. The payments company has
already enrolled around 85,000 point of sales terminals where Rupay
cards can be accepted.......
Foreign tourists can use credit cards to get rupees
.....The Reserve Bank of India has decided to let authorised money changers (AMCs) to sell Indian rupees to foreign tourists / visitors against international credit/debit cards. This follows an RBI review of the memorandum of instructions governing money changing activities.....
SOIL appoints Dr. Subhajyoti Ray as Dean
.....Dr. Subhajyoti Ray completed his master's degree from the Indian Statistical Institute and went on to join Reserve Bank of India. He has been associated with RBI, managing data analysis, data warehousing and research. In 2009, He entered the doctoral program at Indian Institute of Management (IIM), Ahmedabad, focusing his studies on electronic governance.......
Cosmos Bank: Goyal and Kale elected as Chairman and Vice-chairman
Krishnakumar Goyal and Milind Kale were unanimously elected as Chairman and Vice Chairman of Cosmos Bank respectively, in the Board Meeting held on 2nd April 2013. The tenure of the newly appointed Chairman and Vice Chairman will be upto 31st December 2014..........
My health records? Sure, put it on FB and the cloud
.........As technology providers like Cisco see it, basic healthcare could be delivered via kiosks-like ATMs. Practically speaking, it is doable. After all, the banking and financial services sector in this country has seen tremendous growth because of such innovation. But the catch is there is no single body like, say, the RBI, Sebi, or Irda, which transformed financial services, in healthcare to bring sweeping changes.........
Nabard to transform 700 primary co-op societies into multiservice centres
.....The multiservice centre concept involves PACS taking up farm-related businesses like selling fertilisers to supplement their interest income and become financially viable in the process. KR Nair, chief general manager, Nabard -AP regional office, said they had already converted 140 PACs into MSCs in the state.......
For every Rs 10 lent by banks, more than a rupee debt recast
For every Rs 10 lent by the banks in 2012-13, more than a rupee of debt was recast. Between April 2012 and March 2013, loans worth a staggering Rs 76,479 crore were recast by the corporate debt restructuring (CDR) cell, a banker close to the development said. According to the fortnightly data published by Reserve Bank of India (RBI), banks have lent Rs 6,35, 866 crore worth of incremental non-food credit, during the year, up to March 22........
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