Money Managers

With the Indian economy passing through the best and possibly the worst phases in the last decade, the role of the Reserve Bank of India has always been in the heart of all debates. The two Governors YV Reddy and D Subbarao have many things in common – both are from Andhra Pradesh and were bureaucrats in finance ministry before heading to Mint Street – but confronted different challenges during their stint.............

Read - FE

Prefer banks to chit fund agencies: Subbarao

...........Even though his Hindi is poor, the RBI Governor chose to deliver his address in Hindi so that people could understand him. To ensure that his caution over fraudulent people was communicated to the villagers, Subbarao asked district collector Aakash Tripathi to repeat the warning so that people remained cautious. “ Don’t fall prey to chit fund agencies as most of them are involved in frauds,” the collector said on behalf of Subbarao. Pressing for financial inclusion, the RBI governor said the central bank aimed to provide at least one bank account to every household and asked people to come forward and open account with the nearest bank branch.................

Read - FPJ

IDBI offers inflation-indexed bonds to retail investors

H.R.Khan, Deputy Governor, RBI with M.S.Raghavan, CMD, IDBI Bank at the launch of inflation-indexed bonds

.............At the launch event, H.R. Khan, Deputy Governor, Reserve Bank of India, said: “From the issuer (the Government’s) point of view, the inflation-indexed bond brings in a diversified investor base. Obviously, we have been liberalising the opening of our debt market to foreign investors. But predominantly it remains a domestic investor-driven market which, in a sense, provides resilience and strength to the market.” According to Khan, it makes eminent sense to get into government securities (G-Secs) from the investor point of view as well..............

Read - HBL

"Dignity and devotion personified" - The noble soul Venkit is.........

Yes, I heard of the demise . I spoke to Shantha who has accepted it with her usual cheer and courage. I was in touch with him a little earlier, when the nature of ailment was diagnosed. Venkit was a man with great integrity, professionalism, and devotion to duty, with admirable sense of right and wrong.  He carried himself with quiet dignity. He was, simply stated, an ideal human being. He was dedicated to RBI. We will all miss him. 

- Dr.Y.V.Reddy

I felt extremely sorry to hear about the sad demise of Venkitachalam whom many of us even now remember with fondness. I had some close contacts with him in Bhubaneswar and Mumbai and had always admired his sense of duty and devotion. He had knack of handling even very difficult bosses with his characteristic ease and efficiency. He always gave sane advice to all those who had interacted with him and also to his bosses when he felt that they were not on the right track. I join all the mournful colleagues and friends in praying to God for the noble soul that Ventitacham is ! 

- Harun R Khan 

Venkit was 'dignity personified' whether in talk, walk, attire or total personality as such. In Marathi we call, 'Manala chatka lavun janare vyaktimatva'. His memories will linger on with us.  A great loss.  May his soul rest in peace! 

- Surendra Khot

May Venkat’s soul rest in peace and those who were near and dear to him have the strength to bear the loss and live a life Venkat would have appreciated and watched with satisfaction, if he were still around. During the thirteen years(1986-99) I have spent on 13th Floor of NCOB (New Central Office Building, which became COB later), I had more opportunities to sit opposite to members of PS Fraternity on 17th and 18th Floor. I cannot forget the affectionate smile with which Venkat received me, whenever I had occasion to go to him. 

- M G Warrier 

When a student requested RBI Governor to print more notes..........

............Governor during his conversation tried to check General Knowledge of student and asked that What RBI do and he got the reply that it prints currency. Meanwhile one of student stood up and asked Governor, “Why don’t you print more notes so that Indian will also become rich country”. The question was innocent but the student got the answer...............

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Where are the loose change?

.............People of the state are so non-complaining that they do not mind losing some part of their money in return for things which they don’t actually need. Shopkeepers, on the other hand, also adds their own twist to the story as most often than not they do not return the change even when they have it in order to sell more of their goods. But as an RBI branch is coming up in the state in the near future, things may improve significantly. In the meantime, people of the state also need to learn to value money however small the denomination, and should demand the actual change, rather than being content in bringing home whatever item the shopkeeper hand over in lieu of the change.

Read - Manipur Times

RBI kiosk at Salarjung Museum

..........The LED TV will display ‘The story of Indian paper money, know your bank notes’. They are intended to educate the general public and school children on coins and currency of India, a press release said. The kiosk and an RBI Stall was inaugurated by A.S. Rao, Regional Director, RBI, in the presence of senior officers and officials of Salarjung Museum on Friday. A day-long interactive financial literacy campaign was held for the benefit of the public and visitors to the museum.............

Read - HBL

Dhanlaxmi Bank announces appointment of Manoranjan Dash

Dhanlaxmi Bank, a private sector lender, announced that Reserve Bank of India (RBI) has appointed Manoranjan Dash, General Manager, RBI, Hyderabad, as additional director of the bank.........

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Banks lack strong compliance culture: RBI

..........''We are not worried that there are certain deviations... but you must have a system to identify there is something wrong and rectify it immediately'' K C Chakrabarty, Deputy Governor, RBI said at an event here. ''That part (rectification system) is missing and I think that is one of the reasons why we don't have a strong compliance culture''.............

Read | Business Standard

RBI warns banks to strictly follow customer identification rules

....."It is reiterated that banks should meticulously follow the instructions in letter and spirit and ensure that violations of the above nature do not recur. Such violations would be viewed seriously by the Reserve Bank and would involve imposition of penalties," ............

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Some band aid

........If, by the measures the RBI and SEBI have taken, we are able to get a stronger rupee for a few days, it could do more harm than good in the long run. Indian companies that have recklessly borrowed in dollars, in disregard of the lack of a natural hedge as their revenues are in rupees, such as in infrastructure, would now think that if the rupee starts depreciating, the government will step in. This would ................

Read - IE

Indian Post Bank only deerves a bank license

.......The main requirement of the Reserve Bank that the new bank should intensify Financial inclusion and achieve the target as desired by the Reserve Bank can be easily complied with only by the India Post Bank. It is easy for the India Post Bank to ensure 100 % Financial inclusion a  reality than on paper as is done by other banks in the field...........

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RBI’s intelligence

This refers to the article “Sliding rupee, sloppy methods” (Business Line, July 11). The author should give credit to the collective intelligence of the RBI Governor and his team of officials who have a hands-on understanding of the ground realities, instead of making suggestions based on textbook knowledge or some research reports. 

- V. K. Khanna (HBL)

FinMin debunks talks of rupee falling to 70/$

........“We do not like exchange rate volatility. We do not like an excessively weak rupee. We are not trying to target an excessively weak rupee,” Rajan said at an Exim Bank event here on Friday. He said the Reserve Bank of India, SEBI and the Government were closely watching developments in all markets.............

Read - HBL

Rupee breaches 60/$ again

The rupee breached the Rs 60 per dollar mark again in intra-day trades on Friday due to heavy dollar demand by oil importers. However, during afternoon trades it recovered a tad and ended the day stronger by 5 paise at Rs 59.63 per dollar......

Read | Business Standard

No Reserve in printing money

........ In the jargon, we will say that the supply curve of the entire economy — or at least a number of key goods and services — is shifting upwards to the left. How should the aggregate demand curve of the economy react in this environment? Should it move further to the right – which will exacerbate the price level situation in the economy -- or should it move to the left or at least remain where it was? Confronting and answering these questions is the very essence of macro-economic policy formulation and management – at least of one key institution viz, the Reserve Bank of India. Indeed, it should be understood that the RBI can impact only the aggregate demand curve in the economy, for supply is dependent on so many factors beyond its control – for instance, climatic conditions in agriculture, the skill level of the labour force or indeed, the subterranean conditions related to gas exploration and production. (Given that, one wonders why “real sector” players make so much fuss about low, lower and lowest interest rates. They should just ask the RBI to produce a broadly stable and predictable demand environment signified by reasonably stable price levels – and set whatever interest rates are necessary just to achieve that. That can be the RBI’s most important contribution to real output growth)............

Read - HBL

RBI Deputy Governor to meet bank CEOs on bad loans on July 16

.............RBI Deputy Governor K C Chakrabarty will meet CEOs of large commercial banks from on July 16 to discuss what bankers say the 'corrective actions that can be taken by banks to curb rise in bad loans.' An account is classified as bad loan if the borrower fails to pay interest or principal or both within 90 days of due date. Sources from the banking industry said that the meeting would focus on large value bad loans and also practices followed by banks in dealing with borrowers in stress............

Read - ET

RBI targets India’s unhedged

...........RBI has suggested a methodology for estimating the potential losses. A bank would calculate net forex exposure of a corporate client and then assume the worst rupee fall versus the US dollar, based on data over the last 10 years. The bank would then state that loss as a percentage of the corporate client’s earnings before income tax and depreciation, and that figure would dictate the provision needed. The additional capital requirement may see a corporation’s borrowing cost increase 20 bp to 130 bp. RBI may well require banks to make the calculations every quarter, and even on a monthly basis in volatile times. The central bank rules, once implemented, may force corporations to hedge their exposure especially because the rupee is expected to remain relatively week for some time.............

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Time for a rate hike

....This does not mean the country’s severe growth contraction does not need to be addressed, just that the burden of that task, as always, rests on the government. RBI needs to focus on fighting inflation and getting the macroeconomic fundamentals right. An interest rate increase is the medicine for that malady.

Read - Mint

Sinha's confusion?

This refers to the report, "Situation now is same as the one in '91" (July 11). I am amused to read Yashwant Sinha's statement, "They [the Reserve Bank of India and the government] should not fight the markets...". Last year, Sinha, while talking a......

Read | Business Standard

RBI lead bank scheme for financial inclusion extended to metros

.........The shift in policy is to address the problem of financial exclusion among the poor and disadvantaged sections of the community in the major cities also. The RBI had indicated this at the time of its annual policy announcement in May this year...................

Read - HBL

Indian economy in grim situation

..........“Although Chidambaram has been the new finance minister for the last 10 months yet his initiatives do not seem to be working out well. While, on the domestic front nothing has much changed on the ground, globally too things have not improved for India.” ...........

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Shocker! Factory output declines, inflation rises; RBI hands tied

........“Economic policies are important but price stability is a dominant objective of the monetary policy. Exchange market is also important. All these factors will determine the monetary policy. The direction for the fiscal policy is clear. Fiscal deficit should remain under control,” .........

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The Good, The Bad And The Ugly

.......The rupee depreciation of over 11% since is going to make inflation look worse. What makes the task tougher for policymakers is that there is little scope to cut interest rates to perk up demand and investment. The three set of statistics were released at a time when key economic ministers – P Chidambaram and Anand Sharma – are in the US holding roadshows to attract investment..........

Read - TOI

IRDA may allow banks to be insurance brokers

...... Allowing banks to become brokers would require an overhaul of regulations for brokers because current norms require that broking activity cannot be done departmentally by a financial services firm and anyone wanting to get into this business will need to float a separate company for the purpose..............

Read - TOI

In joint a/c, liability is on person signing cheque: SC

......"We also hold that under section 138 of the NI Act, in case of issuance of cheque from joint accounts, a joint account holder cannot be prosecuted unless the cheque has been signed by each and every person who is a joint account holder," a bench of justices P Sathasivam and J S Kehar said. "This court reiterates that it is only the drawer of the cheque who can be made an accused in any proceeding under Section 138 of the Act," the bench further said............

Read - Business Today

Forex reserves drop for third week

India's foreign exchange reserves dropped sharply for the third consecutive week ending July 5, 2013. The forex reserves were down by $4.48 billion to $280.17 billion as the central bank continued to sell dollars to contain the volatility in the rupee..................

Read - HBL

NABARD celebrates foundation day

Jammu, July 12 : The National Bank for Agriculture and Rural Development (NABARD) celebrated its 32nd foundation day on Friday at its regional office in Jammu.

BG Mukhopadhyay, CGM Nabard, J and K Regional office, informed that the NABARD was set up as an apex development financial institution with a mandate for agriculture and rural development in the country on July 12, 1982. Over the years, NABARD has added numerous other functions viz, credit planning, financing and monitoring of rural infrastructure, refinance to banks, institution building, supervision, watershed and tribal development, consultancy and micro-finance (through its subsidiaries). NABARD is also playing an important role in the ‘Financial Inclusion’ agenda of the government, which is considered necessary to pave way for the electronic benefit transfer of subsidies and other incentives to vast majority of population in the country.

T Haq Director, council for social development, said the state was lagging behind in many important socio-economic parameters such as the NSDP per capita, employment rate, agriculture productivity, irrigation and roads. He established the need for inclusive growth under State’s GSDP was 21 per cent as against the all-India average of 14 per cent, thereby indicating the importance of the sectors to economy of the state. Asgar Hussain Samoon, Secretary and Commissioner, Agriculture Production Department, was the guest of honour on the occasion. He appreciated NABARD’s concern for promoting agriculture and allied sectors in the state and profusely thanked the chief guest for his valuable inputs, which would be to facilitate development of future strategies and actionable points for all stake holders. Other invitees included representatives from RBI, SBI, PNB, EDB, JKGB, Cooperative Bank and NGOs.

The Tribune, Chandigarh

Badal asks Nabard to dole cheaper loans

Punjab Chief Minister Parkash Singh Badal on Friday asked the National Bank for Agriculture and Rural Development (Nabard) to provide finance to the allied farming sector at interest on a par with agriculture. This would be to give impetus to agriculture diversification program. He also demanded a rate cut on refinance from 4.5 per cent to 2.5 per cent. On the 32nd foundation day of Nabard here, Badal said Nabard had been providing refinance at 2.5 per cent, now increased to 4.5 per cent.............

Read | Business Standard

Retirement Savings: How to grow and protect your nest egg

..... “Retirement planning is very complicated because there are too many unknowns, many of which need to be assumed.” The significant and most important factor that would influence how much you are able to accumulate is where you invest. Out of the various factors that one can control and which one cannot, controlling how much you can save and where you invest can significantly influence your corpus..........

Read - Moneylife

India Gold shortage: Hoax or a pending nightmare?

The campaign measures are laudable if they are being executed in the right spirit. But gold physical prices at lows due to the recent price declines, the sellers of bullion and coins may have been experiencing relative losses in sales, one may get sceptical. This factor may also be forcing them to initiate a campaign advocating crunch on sales..........

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Axis Bank launches its first overseas subsidiary

.......Axis Bank UK Ltd, which got a licence from the UK regulators on 19 April, has set up a branch in King Street in London, through which it will accept deposits and make advances and investments, the bank said in an emailed statement. “The bank would participate in corporate banking, retail banking and leverage business opportunities available in the UK and the rest of European Economic Area (EEA) through its London branch,”...........

Read - Mint

Srei Infra hopes to roll out ATMs on trial basis by Dec

.....Srei had received in-principal approvals from the apex bank for setting up such ATMs in December 2012. As a pre-requisite to getting the final nod, Srei had to receive clearance from the Foreign Investment Promotion Board (FIPB) as the company has foreign investments. The RBI had, in June 2012, permitted non-bank entities with net worth over Rs 100 crore to own and operate ATMs, particularly in Tier III-VI towns............

Read - HBL

Karur Vysya makes remittance easier

..... This offers the remitter the facility to instantly credit funds into the beneficiary’s account in any bank in India. Both the beneficiary and remitter receive free mobile and email alerts instantaneously.........

Read - HBL

Vijaya Bank launches Rupay branded Debit Cards

......Vijaya Bank has launched its Rupay branded Debit Cards which is an Indigenous payment and Settlement system developed by National Payments Corporation of India. Vijaya Bank’s CMD H S Upendra Kamath presided with A P Hota, CEO, NPCI, being the chief guest.

Read - FPJ

Yes Bank sees corporate rivalry behind family feud

.....Yes Bank management is reportedly considering two options right now. They may approach the Reserve Bank of India (RBI) trying to convince the central bank of a possible corporate hand. Alternatively, they would knock the door of competition commission of India (CCI).............

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