.................It is in this context that RBI said that it was up to commercial banks to ensure their clients were hedging their positions. SBI chairman Pratip Chaudhuri’s position that this is the central bank’s responsibility misses the point. While Chaudhuri says RBI should ask companies to put in place proper hedges when it sanctions foreign currency borrowings, it is the commercial banks who monitor the corporates on a daily basis and who are, therefore, in the best position to ensure the hedges are in place. In any case, if the companies don’t hedge their positions, it is the commercial bank loans that are in danger of going bad. Indeed, it is surprising that RBI needed to even make this statement and ask bankers not to give additional limits to firms if forex hedges were not place...............
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, June 15, 2013
Bank of Maharashtra union calls strike over victimisation of whistleblower
..........The issue of victimisation of a whistleblower by the management of Bank of Maharashtra (BoM) is far from being resolved. After the unsuccessful talks between the union and management on Thursday, the union has declared one-day strike across all the branches of BoM on June 17 and has given a call of agitation to all unions from other banks across the country on the same day.............
SJM to have 3 new galleries
....... coins gallery is planned and it is expected to be ready in next two months. It will have more than 1,500 coins right from the Satavahana period to the Nizam’s era. The Reserve Bank of India, Mumbai, has agreed to put up two kiosks in the gallery. One will enlighten visitors with the history of money while in the other kiosk with a video will explain the method of detecting fake notes............
A Hardcore Banker's Assessment On the Likely Outcome of the Impending 10th BPS
..........Going by the expectations and the present mood of the ordinary members, we can very well say, anything below 20% will not be acceptable and hence may be rejected outright by a majority of them. If the Trade Union leaders settle for anything less, they face the prospect of being overthrown by their own fraternity. Hope, they are aware of this danger. Already there is a wide disparity between central government employees and us, after the implementation of 6th Pay Commission recommendations. From 01-01-2016, the 7th Pay Commission recommendations may be a reality, to the extent they are accepted by the Union government. In all likelihood, whether bankers’ wages are revised or not, before the next Parliamentary elections in May, 2014, the 7th Pay Commission may be constituted. In a way, that will fuel bankers’ movement further and make their stand firmer and stronger.................
Read.........
Read.........
Rate transmission likely to be RBI's key focus
......“With market expectations of a repo rate cut on June 17 now tempered due to the falling rupee, a CRR cut may act as a key signalling tool for foreign institutional investors and equity investors, as visibility over continued monetary loosening has emerged as a key catalyst for Indian equity markets,”..............
Chidu vs Subbu: Even with easing inflation, RBI may not cut rates
..........The broader picture is this: once again, New Delhi’s line of thinking may turn out to be at variance with that of Mint Road. With Subbarao’s term as governor ending in September this year, he may be of the view that RBI has done all it could to push growth and curb inflation. As he has articulated often, structural constraints will now need to be addressed and there’s only that much monetary policy can achieve. What another rate cut can do under the circumstances is, therefore, in doubt..............
Easing inflation fails to bolster India rate cut hopes as Asian markets roil
............That is bound to make traditionally cautious RBI even more reluctant to cut the repo rate again after easing in each of its three previous reviews. "They (the RBI) have their eyes set on multiple goalposts," said Radhika Rao, economist with DBS Bank in Singapore, while citing other factors such as the government's fiscal deficits. "The combination of these factors lower the odds for a rate cut on Monday.".........
Govt offices record low attendance
HYDERABAD: Thanks to the unprecedented security deployment and traffic restrictions in view of 'Chalo Assembly', central and state government offices recorded very thin attendance on Friday. While Secretariat, the power centre, saw less than 10% attendance, important head offices including Reserve Bank of India, Accountant General's office, Telephone Bhavan, BRK Bhavan that accommodates 40 government offices, Shakar Bhavan, Ayakar Bhavan, Samachara Bhavan and Parishram Bhavan which are located around the Assembly, witnessed less than 15% attendance................
Fed impact on gold demand is the key
...............All of this continues to demonstrate that the Indian government is determined to reduce gold imports into India. Clearly, they’d like to stimulate the local market and get people mobilising reserves within India as opposed to importing them. The government also worries that large amounts of savings locked up in gold curtail liquidity and it, therefore, reduces investment in infrastructure and other sectors of the economy which promote growth...............
Moral hazard lives on in India
WHETHER OR NOT United Bank of India succeeds in launching India’s first Basel III-compliant Tier 2 bond, the communications made to the market on this subject by Indian ratings agency Crisil are somewhat bemusing. In a ratings note explaining why a bond that may write down to zero deserves a AA+ rating, Crisil’s analysts wrote: “A robust regulatory and supervisory framework and systemic importance of the banking sector is expected to ensure adequate and timely intervention by RBI [Reserve Bank of India] to avoid a situation wherein [sic] a bank becomes non-viable.”.............
Kapoor vs Kapur
............The crucial factor here is the fit and proper guidelines that banks need to follow while appointing a director on the board. A circular issued by the Reserve Bank of India (RBI) on June 20, 2002, defined these as formal qualification, experience, track record, integrity et cetera. It said the candidate should be a graduate, between 35 and 65 years of age, and not a Member of Parliament, Legislative Assembly or Legislative Council. On June 25, 2004, RBI issued another circular which said that banks should undertake a process of due diligence to determine the suitability of the person for appointment as a director on the board based upon qualification, expertise,.....................
City cops conned by ATM hackers
..........Fifteen cops were robbed of their salaries, right outside the state police headquarters, and there is no trace of the robbers. This is not the latest computer game but an ATM fraud. The 15 policemen, all working in the state police headquarters at Regal, are among 37 Axis Bank account holders who collectively lost Rs 15.48 lakh on June 11 and 12...........
PSBs not to centralize PoS swipe machines
The finance ministry has reversed an earlier decision to ask public sector banks to centralize installation of point of sales (PoS) terminals—credit card swipe machines with merchants—and has now asked banks to draw independent plans. Last year, during the tenure of former finance secretary D K Mittal, the ministry had asked banks to identify service providers who will install and manage swipe machines for public sector banks so that there is no duplication of efforts in installing what was essentially general payment infrastructure. The banks were expected to install at least two million credit card swipe machines across the country in the next two years...........
Read = TOI
Read = TOI
EMV migration imperative for secure banking
.....EMV is a proven global standard. Europe is already benefitting from its implementation with a vast reduction in frauds and Asia is witnessing its accelerated adoption. In India too, the RBI already recognizes that EMV’s importance and benefits clearly outnumber the challenges it may pose for banks. ...........
Subscribe to:
Posts (Atom)