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.
Wednesday, April 10, 2013
Fencing in the RBI
Commission and omission
...........as argued by the dissent note of PJ Nayak, two decades of empowerment of financial regulators is sought to be reversed with this report. The hideous governmental regulation through the controller of capital issues caused untold misery in the capital markets. Substantial powers are sought to be taken from RBI and other regulators and given to the finance ministry. These include such important areas as crisis management and monitoring systematically important institutions. A task globally given to a central bank and a task the finance ministry would have no apparatus to deal with.................
Read - FE
RBI to clear the air on who controls an Indian entity
In a move that could enable implementation of the controversial foreign direct investment (FDI) policy of 2009, the Reserve Bank of India (RBI) is set to clear the ambiguity over who controls an Indian entity with foreign investment — the foreign or domestic partner. RBI has forwarded draft norms, to be issued under the Foreign Exchange Management Act (Fema), to the finance ministry, seeking to bring the definition of control in sync with that in the Companies Bill, 2012 (yet to become an Act, as the Rajya Sabha has yet to pass it).........
Drop plan on new banks, Finance panel tells RBI chief
......Questioning what they called the “subjective nature” of the RBI’s final guidelines, many members reportedly told the RBI Governor that the guidelines could open an avenue for corruption. Sources in the panel told Business Line, on conditions of anonymity, that the members feared the guidelines would result in corruption and urged the RBI to drop the move. Though some MPs supported the RBI’s plan, they argued that the final guidelines will not encourage any one to start a bank.......
RBI rejects suggestion of auctioning bank licenses: Sources
......In its new banking licenses norms, RBI had indicated that external committee would be in charge of examining the bank license applicants. However sources today said that there were doubts over these, as conflict of interest was feared in external committee and hence the task of vetting applications may be done internally by RBI.......
Money laundering case: RBI assures House panel of action
........"The committee has asked the RBI Governor to take stern action against banks and bank officials who indulged in money laundering and the RBI governor has assured strictest possible action against them,..........
Regulatory Issues Not that easy to Solve - Dr.T.V.Gopalakrishnan
..............The FSLRCS recommendations, however, need to be publicly and thoroughly debated as there are lot of conflicting regulatory interests which can precipitate and take advantage of regulatory gaps.The gaps can result in some catastrophe.
Updation on "Pension Updation............."
“… It is learnt from reliable sources that the Governor who is keen to find a solution to the issue had a one-to-one meeting with the Honourable Finance Minister, Shri Chidambaram recently and convinced him that the additional expenditure on account of pension updation in RBI would not have an impact on its income and would be met out of the pension funds lying with the Bank.........
My View on "Raje demands apology from RBI Governor on food inflation "
I don't see any wrong in RBI Governor's statement. He didn't blame the poor, but is saying people are getting out of poverty, and thus now able to get healthier food habits 'FOR BETTER'. It doesn't mean that all the poor in the country are doing something wrong by having access to better and enough food. Fuel and power costs are not the only reasons for inflation. and inflation in fuel and power is also linked by more demand. He has also maintained for long that government is not doing enough on policy front to increase production to cope up with rising demand. Please do not jump to conclusions just by half of the sentence, and get to understand the full story. when there are 100 people trying to buy 50 available breads than 70 people, price is bound to rise. Solution as he long maintained is to increase production, as the demand is rising. Media should be more responsible to not to give audience to such nonsense as uttered by Mrs Raje, whose only motive is to hunt anyone who points a finger to the system by twisting their statements. Subbarao has done great service to the nation by keeping inflation where it is despite of government pressure. Or else this would have been more than double what it is now.
- Alok - Firstpost
Beyond banking and insurance
........Anand
Sinha, Deputy Governor, Reserve Bank of India said, "Banking has thrown
up a large number of complex issues in the last four to five years. In
India, the financial system is dominated by banks we are trying to
develop the corporate bond market in particular in order to diversify
the funding channels. In the future, the banking system will
remain the predominant funding channel in India. The Indian economy is a
large and growing economy and the financial system is becoming
increasingly open.............
Read - ET
Condemned to repeat the past
......All of the above is relevant to India. The Reserve Bank of India (RBI) will deny it, but its effective rupee management underwent a sea change after the global financial crisis. Gone was the prior aggressive intervention in the currency market to check the pressure on the rupee to appreciate because of destabilising capital inflows. The new mantra was a hands-off policy. This had its merits given the constraint: tight monetary policy, to check inflation. But along the way Indian policy makers forgot whether or not the rupee was misaligned........
NBFCs say RBI likely to leave repo rate unchanged
........NBFCs have requested RBI to have stability in its policy, saying a lot of investors interested in the sector are looking towards a stable regulatory regime. "The RBI should have a stable policy regime for a minimum of one decade. Once that is in, they will invest in a big way. It will help the economy well and also help achieve financial inclusion,"...........
RBI asked to restore priority sector lending tag for bank loans to NBFCs
......The NBFCs have also requested the RBI to put on hold the Usha Thorat committee recommendations on issues and concerns in the NBFC sector, till the economy recovers. Among other things, the draft guidelines of the Committee suggest that NBFCs be brought on par with banks by reducing the period for classifying loans as non-performing from 180 days to 90 days.......
Bank FD investors may exit on falling rates
........bank fixed deposit rates continue to fall, investors might move their funds to dynamic bond funds and fixed deposits of high-rated corporates and non-banking finance companies (NBFCs), financial planners said. According to them, many investors in metros are having a slightly higher risk appetite and invest in these instruments.............
Investing in naïvety
....In 1987, the Supreme Court, in the Reserve Bank of India vs Peerless Co case, asked the government the action that it was taking against the "mushroom growth of finance and investment companies" offering staggeringly high rate of interest, like 30 per cent in six months. Analysing a scheme, the judges said the investor was always on the losing end - "perfect case of heads I win, tails you lose". ........
CPI inflation is key to India’s macro outlook
.....In the past, price levels as measured by WPI and CPI (Industrial Workers) usually tracked similar trends—but over the last three years a huge gap has opened up. To be sure, the Reserve Bank of India (RBI) has always maintained that it looks at all price statistics —including WPI, CPI and GDP deflator—in assessing inflation trends.......
Beware the bond lure
............Worse, if domestic macroeconomic conditions worsen, a "better safe than sorry" attitude on the part of investors can result in a surge of outflows, which will only compound the other problems. These may seem like low-probability outcomes, but the risks should not be underestimated, in terms of either likelihood or, more importantly, impact. Essentially, what the economy needs is not more time being bought through a bond issuance, but some quick and concrete measures to address the serious macroeconomic imbalances. .......
Amanath bank withdrawal cap continues, customers worried
.."It will take at least one more week to get the Reserve Bank of India (RBI) to withdraw its circular restricting the withdrawal to Rs 1000. The depositors have to wait till Monday to get clearance from RBI. Already, bank president Naseer Ahmed has met the Registrar of Co-operative Societies and held a meeting with RBI officials in the city," said a director, who wanted to remain anonymous. He added that the local RBI officials had told the bank authorities to approach RBI headquarters in Mumbai on the issue. ..........
2008 loan-waiver errors: Nabard report by April 20
National Bank for Agriculture and Rural Development's (Nabard) state regional office, which is looking into irregularities pointed out by Comptroller and Auditor General (CAG) in agricultural debt waiver and debt relief scheme in 2008 in the state, is likely to submit its report on April 20. Nabard Chief General Manager M V Ashok said that over 30 lakh bank accounts are being examined through which Rs 5,000 crore was disbursed towards farmers' debt waiver and debt relief scheme.......
An innovative technology platform to provide bank-like service to low-wage workers
What do you get when you put a friendly neighbourhood kirana store, a construction worker and a mobile phone together? As much as this may suggest 'mobile refills', the answer is low-cost banking and financial services that can be accessed in an instant via a mobile phone........
|
|---|
My View on "SBI wages war against willful defaulters"
Unless and until an inbuilt mechanism is introduced to discipline both borrowers and bankers, the problem of NPAs will continue to haunt the banking system.This is not an insurmountable issue, but authorities, banks and borrowers have an aversion to introduce a lasting solution to contain formation of NPAs.The borrowers and banks enjoy some known and unknown benefits by having NPAs in the books and the authorities keep a blind eye on the problem till it reaches the brink of collapse.The unfortunate part of this is that the depositors, good borrowers, shareholders and general tax paying public bear the brunt and hence defaulters have no concern.They become parasites and enjoy others money merrily.
- Dr.T.V.Gopalakrishnan
Bandhan Microfinance keen on banking foray; securitises Rs 355 cr loans
Micro-credit company Bandhan Microfinance is preparing to apply for banking licence as it meets all the criteria specified in the final guidelines released by the Reserve Bank, a top company official has said. “We are preparing to apply for bank licence as we aim to provide financial services in un-banked and rural areas,” Bandhan Financial Services Chairman and Managing Director Chandra Shekhar Ghosh told PTI here today, adding, the company has adequate capital to set up a bank...........
VCB achieves growth rate of 26.61 per cent, says chairman
Visakhapatnam Co-operative Bank (VCB) has not only retained its status as the biggest cooperative bank in Andhra Pradesh with regard to deposits and advances but also recorded an impressive growth rate of 26.61 per cent in mobilising deposits during just-concluded financial year.........
Markets bet on SBI arms merger plan with change at the top, Pratip Chaudhari's term to end in Sept
Market players are betting big on the merger play between the country's largest lender State Bank of India (SBI) an]d its subsidiaries. SBI chairman Pratip Chaudhari
had put the merger plans on the backburner but investors have started
building position in SBI subsidiaries as Chaudhari's term is coming to
an end in September, said experts............
Subscribe to:
Posts (Atom)