इंदौर, एजेंसी। भारतीय रिजर्व बैंक (आरबीआई) के गवर्नर डी. सुब्बाराव एक दिवसीय दौरे पर 11 जुलाई को इंदौर पहुंचेंगे। आरबीआई के एक अधिकारी ने मंगलवार को बताया कि सुब्बाराव नजदीकी गांव खुर्दा को आदर्श ग्राम घोषित करने के आरबीआई के आयोजित समारोह की अध्यक्षता करेंगे....................
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.
Thursday, July 11, 2013
Who will give India its next RBI Governor-Montek or Chidambaram?
Read - Business Standard
Venkit - the ever smiling persona no more..............
Shri S.K.Venkitachalam,
former Principal Private Secretary to the Governor passed away in the early morning hours on Monday
8th July 2013 in a hospital after a brief illness. A person with ever smiling face, Mr.Venkitachalam
was known for his soft spoken nature and had the quality of not hurting anyone. Earlier he was in ARC/ACD and then moved
on to Economic Department. On his promotion as Gr.A PS, he was posted to erstwhile
Credit Planning Cell (presently Monetary Policy Department) and then
transferred to Bhubaneswar. He came back to Central Office as Gr.B and
initially posted to Mr.S.n.Bagai, the then Managing Director of New Note Press
Project. Venkitachalam was then posted to Secretary’s Department to be the
Private Secretary to Dr.Y.V.Reddy when Dr.Reddy was holding the post of Deputy
Governor. He moved on to hold the post of PPS to Governor while Dr.Reddy took
over as Governor before he went along with Dr.Reddy to be his Private Secretary
at the IMF and he spent about 5 years. Mr.Venkitachalam
will be remembered forever for his humility and helping nature. He leaves behind
his wife, son, daughter in law and a grandson. RBI PS fraternity will miss
Mr.Venkitachalam and as a token of respect, we share the grief of his family
members equally and pray for the noble soul rest in peace!
- R.Sridharan
Currency cul-de-sac
The rupee’s continued beating has left Indian authorities, the government as well as the central bank without any clear-cut options for action. Apart from knee-jerk reactions—such as banning banks from proprietary trading in currency futures and ad hoc raising of duties on import of gold—there is little systematic action..........
Growth woes bigger than INR fall, RBI won't up rates:Gokarn
 |
| ........current account deficit is the main cause for rupee's depreciation. Fed's move to sqeeze liquidity has also added to the problem. The steps taken by RBI and Sebi will contain rupee movement, but are not a solution to contain CAD.......... |
CPI cites conflict of interest in K M Birla's presence on RBI board
The Communist Party of India (CPI) has vowed to take up the issue of the continuation of Kumar Mangalam Birla on the board of the Reserve Bank of India (RBI), in Parliament saying it was a "conflict of interest" as his group firm is in the race for a new banking licence, but Aditya Birla Nuovo MD Dr Rakesh Jain told Business Standard: "There is absolutely no conflict of interest."..........
Centre-state relations in the world of financial policy
.......Unrealistic? Not at all. With individual states getting involved even in foreign policy matters, which, strictly speaking, are outside their constitutional ambit, can finance be far behind? Or rather, should finance be far behind? The undercurrent of tension involving the yet-to-be-passed Microfinance Bill 2012 exemplifies this: the Bill is effectively set to make RBI the regulator for microfinance and weaken the states’ hold over the sector..........
A silver lining
..........India will also grow slower than what was earlier expected, by 20 basis points. But the real pressure points are South Africa, Russia and Brazil; their growth forecasts for 2013 have been lowered by 80, 90 and 50 basis points, respectively. The situation is still grim, but are these signs that the worst is over in India?
Drastic step or careless move?
.............Biswa Swarup Misra, an economist and banking expert, blames the stakeholders of RRB for its poor performance. In 2007, Misra presented a paper on the performance of RRBs to the Reserve Bank of India. ‘RRBs could have done better had sponsor banks played a proactive role in guiding them and state governments provided conducive banking environment,’ says Misra.............
Put economics before politics: Adi Godrej tells govt on arresting rupee fall
......Seeking greater cooperation between the government and the RBI, Mr. Godrej said that even though the RBI was an independent body, it was imperative that it joins hands with the government when it comes to economic growth. "I know the RBI is an independent agency and not under government control. If we do not have good growth, we will have more problems," Mr. Godrej said.............
Read........
Read........
PM backs opening up FDI to boost rupee
.........An uptick in the economy is vital to fund ambitious welfare programmes like food security and to create a feel good ahead of the 2014 elections where voter discontent on job losses and a faltering economy may prove politically costly. Chidambaram spent the better part of Sunday and Monday discussing ways to check the rupee depreciation with the PM, RBI Governor D Subbarao and Planning Commission deputy chairman Montek Singh Ahluwalia.
Necessary but insufficient
Recent measures by the Reserve Bank of India and the Securities and Exchange Board of India are being seen by observers as an attempt to reverse the inexorable decline of the rupee. Some of them see these measures as too little, too late. Others are more of the view that anything that can be done must be done; this is no time for squeamishness or purism. Admittedly, these moves - essentially attempts to impose limits on potentially speculative positions by banks and other market participants, which could reinforce the downward pressure - do appear to be rather skimpy................
4 Reasons to Let Rupee Be
..........In
recent days, we in India are seeing an array of authoritarian
responses. Sebi and RBI have clamped down on market activity on the
onshore exchange-traded currency derivatives. There are newspaper
reports that RBI is interfering with the freedom of speech of employees
of banks, trying to persuade participants to not take positions on the
rupee, and trying to interfere with onshore/ offshore arbitrage..................
Promoting non-payment
........Thanks to a special dispensation given by the Reserve Bank of India (RBI), approximately Rs 93,000 crore of loans, which should have become NPAs, have remained restructured assets. So, some Rs 18,000 crore of borrowings by Air India and close to Rs 70,000 crore of borrowings of a few state electricity boards (SEBs) have been recast a second time; in addition, RBI allowed banks to restructure around R5,000 crore of unsecured loans to microfinance institutions, not a common practice. Typically, if bankers recast loans a second time, it has to be called an NPA; clearly, if the company hasn’t been able to revive the business the first time, the chances of it being able to do so the next time are relatively slim...........
Ivory Coast (Africa) to cash for silver–coins for marketing in India
It refers to the African country’s Ivory Coast issuing pure silver–coins of 25 gms with picture of Lord Ganesha at the face–value of rupees 8001. Commemorative coins minted at a German mint are to be marketed in India from Ganesh Chaturthi this year. Earlier this year, a private company of India issued high–priced gold–coins with photo of cricket–icon Sachin Tendulkar embossed, priced at rupees 34000 for ten–gms pure–gold coin, at a time when gold–prices are zooming to around rupees 28000 per gms at that time. The Reserve bank of India (RBI) and the Union Finance Ministry should take immediate steps to stop the sale of such profit–making gold–coins. Sale of gold and silver coins marketed by banks, private firms and even government–agencies like MMTC increases tremendously during the festive season. Gold and silver coins issued during the British regime are available in plenty as duplicates because of their popularity as auspicious and gift items even though fabrication of fake gold and silver coins is a crime. The Union government should take steps to counter the menace. The Reserve Bank of India (RBI) can issue official 24–carrat gold in Rs 20000 denominations with weight of 5 gms. To minimise chances of duplication, these coins should be numbered. A guarantee–certificate bearing the number of the coin and security thread should be plastic–sealed with each coin mentioning weight and purity as attractive gift–items. The face value of coins can be increased after the value of gold in coin crosses seventy percent of the prevailing face value of the coin. Only the RBI should be authorised to issue round–shaped gold and silver coins to be easily available through all branches of public–sector banks and post–offices. Likewise pure silver coins of 10 gms can be issued in denomination of Rs 1000. The system will be net revenue earning for the Government because the suggested plastic–packed coins will never come in actual circulation. All these coins should be made conveniently available in plenty at all offices of the RBI and bank–branches throughout the country. These coins can also be issued to commemorate occasions. Once the RBI starts issuing gold and silver coins, sale of gold and silver by private establishments in form of coins can be banned. However, the sale of the metal may be allowed by banks and others in rectangular or square form.
- Madhu Agrawal (The Sentinel)
Ease norms to help SMEs, exports: Commerce Ministry to RBI
............In a letter to RBI Governor D Subbarao, Commerce Secretary S R Rao said, "We would ... request that RBI's special export credit refinance to support PCFC (packing credit in foreign currency) (and it) may be enhanced from 50 percent to 100 percent." The scheme, he said, should be liberalised "to the maximum extent possible through greater refinance margins. It should enhance the overall quantum of refinance available and bring in long term stability to this policy, so as to encourage better export finance planning by both the exporters and concerned banks."...............
RBI takes the wind out of NBFC’s sails: Imposes restrictions on private placement of debentures
............The guidelines seem to have startled the NBFCs. This is evident from the quantum of queries and clarifications raised by the industry resulting in issue of another notification clarifying some of the provisions of the guidelines by the RBI within five days of the issue of the guidelines..............
Panel to Help Banks Meet Basel Norms
The
government has formed a committee with representatives from India’s top
insurer and a few state-owned banks to suggest ways of raising long term
capital for local lenders to meet new international rules on capital
for banks. The mandate of the committee is to recommend steps to
raise perpetual or long-dated bonds which do not have any fixed
maturity, and will be issued by Indian banks in line with the new Basel
rules which kick in from 2014............
Read - ET
Read - ET
More banks opt for forensic audits
Mumbai: Once bitten, twice shy. That precisely explains why banks reeling under the weight of crushing bad loans are increasingly turning to forensic audit of company balance sheets. This is to check any misuse of the loaned amount as they are turning suspicious of the rising near-bankruptcy claims. EY, formerly known as Ernst & Young, said its fraud investigation team has received at least seven such requests from public sector banks in the last one year, much higher by any yardstick...........
IRDA bancassurance guidelines put on hold: Will the core issues be addressed?
.........RBI's financial stability report’s Chapter III - Financial Sector Regulation and Infrastructure raises several crucial questions on bancassurance model’s use of unfair and restrictive practices. Here are some important points raised in the report – ......
Irda chief doesn't favour banks acting as insurers' agents
...........His comments come in the backdrop of a recent demand by the Insurance Council that banks be allowed to sell the products of at least five insurance companies in place of the one company norm for each of the life and non-life segments. Banks sell insurance products acting as the agents of the respective insurance companies, which is called the bancassurance model............
Here’s why to have a healthy credit utilisation ratio
Today, having a credit card is not a question of luxury. It has somewhat seeped into our system and many a time comes handy in buying things, which are necessary, and in future turn necessary. Interestingly, the recent data presented by the Reserve Bank of India (RBI) provides credence to the increasing perception that the acceptance of credit cards has improved...........
Faith of Indian mutual funds still intact in debt and gold
.......Bonds have been under pressure as the weak rupee, the narrowing differential with U.S. Treasuries and a high current account deficit are seen preventing the RBI from easing further after cutting rates by 75 basis points this year. However, fund managers say equities in the second half will remain too volatile to perform better than debt, given expectations for weak corporate earnings in an economy that grew at 5 percent in the year ended in March, the lowest in a decade............
UBS India giving pink-slips post-banking exit, 50 to lose jobs
...........On June 21, UBS India had decided to surrender its banking licence to the RBI after sitting over it since 2008, as part of the group's "capital light strategy" and to reposition the balance sheet, with a view to sharpen its focus on the core businesses in equities and corporate client solutions. According to sources, UBS started distributing letters of termination last Friday and is said to be offering a compensation package of one-month's pay for every year of service completed, which is the practice amongst investment bankers in the country. UBS India has just one branch in the country, based in the megapolis.............
State-run banks asked to submit plans to raise $25 billion
Mumbai: India’s state-run banks must decide this month on ways to raise more than Rs.1.5 trillion ($25 billion) by March 2018 to bolster risk buffers and meet new Basel III capital standards. “Banks have to look at options other than capital infusion by the government to meet the new Basel rules,” Rajiv Takru, secretary, department of financial services, said in an interview on Tuesday in New Delhi..............
PSU banks vie for financial inclusion in West Bengal
Till recently, financial inclusion was nothing more than an onerous, target-driven corporate social responsibility for banks. But these days, the once-unbanked people are now spoilt for choice with multiple bank accounts, inclusive of zero balance and free debit card facilities, at least in two districts of West Bengal, namely Cooch Behar and Horwah. The direct cash transfer of subsidy has led banks into a slug-fest, for acquiring new rural customers. The stake, Rs 3 lakh crore— the annual subsidy bill of the government --is big enough for banks to set tall targets to tap the smallest clients of the banking industry..............
PSU Bank recap: Rising NPAs defeat the purpose
.................The sharp rise in NPAs is scaring banks from direct lending. No amount of recapitalization will change this scenario, unless the economic scenario improves, which is unlikely to happen soon. Government is only going through the motions of recapitalizing the banks since the guidelines have to be met.
Jewellery makers, exporters to get regular gold supply
SURAT: Despite Reserve Bank of India (RBI) imposing restrictions on banks for importing and supplying gold on consignment basis, the jewellery manufacturers and exporters in Gujarat will get their regular supply of gold. Metals and Mineral Trading Corporation of India (MMTC), an authorized central agency for import of gold, silver, platinum, palladium, rough diamonds and coloured stones, has decided to intervene on the issue of a regular supply of gold to exporters to boost the jewellery exports.................
Plastic money gains acceptance in rural India
...... "We aim to cover all the locations where we have branches. All our rural and semi-urban branches, barring a few that have started functioning recently, are offering credit cards to the bank's customers,"............
Bank hiring in 2014-15: No advantage for those who have cleared exams
......“Vacancies for 2014-15 are to be filled through subsequent rounds of common exams and interviews. Notification for POs/MTS-III has already been issued. The existing candidates, if qualified under PO-II or the clerical common written exams, will not be considered for recruitment for vacancies under 2014-15. They will have to write the exams again subject to eligibility,’’........
Maybank commences Mumbai operations
KUALA LUMPUR: Maybank’s overseas unit Bank Internasional Indonesia (BII) on Wednesday commenced its Mumbai branch operations in India to tap the Indian and Asen market. In a statement, Maybank said both the central banks of India and Indonesia namely Reserve Bank of India and Bank Indonesia have approved the operations of BII Mumbai..........
What Makes a Good Bank Board? Lessons from the YES Feud
............So what lessons does the YES Bank feud hold for the new aspirants? “The new players will need to ensure that the highest standards of corporate governance are established,” says Roy. “The separation of professional management from owners and rent-seekers is better envisaged than achieved. At the risk of oversimplification, I would say that the right set of motivations are required to influence people’s behavior so that they act with the best of intentions and participate in decisions objectively.”
J&K fails to get any help from PCI on recapitalization of Coop banks
......However, there was no positive response from the Planning Commission, sources said, adding “what to talk of giving any financial assistance the Planning Commission even didn’t give any assurance to help the State in clearing the liabilities”. Stating that State has been caught in a peculiar situation following denial of any relief by the Planning Commission, sources said, “now the Cooperative Department has been left with no other option but to place a proposal before the State Cabinet for sanctioning of at least Rs 100 crore in order to liquidate part of liabilities and meet the condition set by the Reserve Bank of India (RBI)”. Disclosing that RBI has set a deadline of July 15 for liquidation of Rs 100 crore liabilities by the three ailing Cooperative Banks, sources said, “if the Government meets this condition of RBI the latter will consider extension in the time-frame for obtaining license to work as banks”............
Consumer forum asks ICICI to pay Rs 28 lakh
The UT States Consumer Disputes Redressal Forum directed the ICICI Bank Ltd to refund to two residents an amount of 26 lakh along with a compensation of Rs 2 lakh for mental agony and physical harassment and cost of litigation to the tune of Rs 25,000...........
Subscribe to:
Posts (Atom)