........There is a view that the July 30 review will be a non-event due to the recent policy announcements. However, there is scope for some fine tuning. Thus the interest rate on Marginal Standing Facility that has not been utilised except for small amounts may be reduced by 100 basis points to make life easier for banks that are hit hard. Just as the July 15 measures tightened the policy without seeming so, now the central bank can appear to relax the measures though not in reality! RBI can also think of raising the SLR that would reduce the surplus securities in the system and the access to repos and provide price support to bonds..........
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, July 27, 2013
Fraud on banks, more by the rich, says RBI’s K. C. Chakrabarty
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| .............“When the times are good, the rich steal. When the times are bad, the poor people also steal. But this means rich people are stealing more,”............... |
"Debar fraudster from all banking transactions"
While addressing the ASSOCHAM conference on Financial Frauds: Risk & Prevention, here, Chakrabarty said, “establishment of a Fraud Registry on the lines of credit information bureau could be considered.” Sharing the information that the bulk of the frauds relate to high value transactions of advances (Rs. One crore and above), the RBI Deputy Governor said unfortunately detection of advance related cases mainly is after it is classified as the NPA (Non Performing Asset)..............
Swaraj school team wins city round of RBI quiz
KANPUR: The Reserve Bank of India on Friday organised the Kanpur round of All India Inter-School Quiz-2013 at Ragendra Swaroop Centre for Performing Arts. Former MP and educationist Sunil Shastri inaugurated the event in presence of regional director of RBI (UP and Uttarakhand) KR Das and IIT-K's Shri Prasad. Senior officers from RBI, commercial banks, financial institutions, local administration and educational institutions were also present...........
'Scalability holds key to financial inclusion'
A big challenge in implementing financial inclusion in the future will be the evolution of technology that is scalable enough to accommodate huge volume of transactions, according to the Chairman and Managing Director of Bangalore-based public sector lender Vijaya Bank, H S Upendra Kamath............
Why You Can Bank on India Post
...............Unlike what many believe, a Post Bank of India (PBI) will be a completely new entity with no legacies of a government department and very little to do with its parent, except using some of its network. It will have an independent board and just two members from the government, one from the finance ministry and another from the department of post. Geographically, the India Post network beats the entire banking system in the country. The ubiquitous mail carrier is present in more than 1,55,000 locations in India, 90 percent of them in villages. On an average...........
My View on "The ball is in RBI’s court - S.S.Tarapore".............
The observations (a) In the ensuing few months, political economy constraints would prevent the Government from taking strong rectification measures, (b) Hence, the Government should give the RBI a free hand to crush inflation with unequivocal monetary tightening, and (c) The Government must recognize that when there are political economy constraints, it is only monetary policy which can hold up the rear, could turn out to be prophetic in 2013-14. GOI has an option to allow the central bank follow the path of prudence and caution it has been following or to follow a pre-election-come-what-may approach. Weakening the RBI in any sense at this juncture will have disastrous consequences.
- M.G.Warrier
Policy review: RBI Governor, Chidambaram go into huddle
The policy review, scheduled to take place on July 30, could be the last one by Subbarao, unless he is given an extension after his five-year term ends on September 4. It is customary for the Governor to meet the Finance Minister before a new policy or a review of the existing policy to discuss the macroeconomic situation. However, Subbarao refused to comment on what transpired in today’s meeting. He also did not answer a question on whether the recent steps by RBI to tighten liquidity have had the desired impact. Despite all expectations, the RBI is unlikely to cut policy rates...............
Signals from Mint Road
D Subbarao, who completes his five-year term as RBI Governor on September 5, was recently criticised by Arvind Panagariya, professor at Columbia University and a noted economist, on the ground that the central bank did not build foreign exchange reserves when the rupee was appreciating in 2009-10. Business Standard takes a look at the performance of RBI Governors since 1990..............
RBI meet on July 30 holds no promise: CNBC-TV18 poll
..........Majority of bankers and economists polled by CNBC-TV18 believe that Subbarao will leave repo rate and cash reserve ratio unchanged. The vote is completely divided. About 60 percent believed that the repo will stand at 7.25 percent for the rest of the year. 10 percent think there will be a cut of 25 basis points, and 15 percent see a cut of 50 bps. Whereas, 15 percent of the sample expects a hike in repo rates. The market is also divided on..........
Why RBI may not hike rates next week
..........."Let's at least commend policy makers both at the central level and RBI for taking tough bold measures last week...and at least there are first signs that the currency has begun to stabilise. I think loose talk about it going to 63-65 has left the public space,"..............
Pulling out all the stops
On Tuesday, the Reserve Bank of India sought to reinforce last week’s package of measures curbing liquidity in order to check speculation in the currency markets. In beefing up an already rigorous package so soon, the RBI is sending the message that it will pull out all stops to defend the rupee from falling below Rs.60 a dollar, which, according to market consensus, is the target level.............
I share your concern about rates: PM to tell India Inc
..........Over the past two weeks, the RBI has deployed a variety of measures to block the slide of the rupee against the dollar and other currencies. All its measures have led to a rise in the interest rates for banks and consequently, for industry too. The PMO's position seems to be at variance with the RBI line............
Home coming for Sanjiv Mehta
.......Since his father, S.P. Mehta, worked in the accounts section of the RBI, Mehta decided to become a chartered accountant. He then went on to do an Advance Management Programme at the Harvard Business School..........
Anoop Singh to quit as IMF's Asia Pacific Director
WASHINGTON: International Monetary Fund (IMF) today said its Asia Pacific Director Anoop Singh has decided to quit in the coming months. An IMF veteran Singh had earlier served as special advisor to the Governor of the Reserve Bank of India (RBI). .........
10 tips for students heading abroad
......The RBI regulation states that 'for studies abroad the estimate received from the institution abroad or $100,000 per academic year, whichever is higher, may be availed of.' So you can freely remit an amount of up to $100,000 per annum from India towards the tuition fees. If your fees ...........
History shows India's growth worry will override Re defence
.........."Yes, exchange rate stability is the focus now in the short-term," said a RBI official, declining to be named as he was not authorised to speak to the media. "But that is because, in the long-term, we want to protect growth for which we have to focus on the exchange rate in the short-term." That view point was backed up by country's chief economic adviser, Raghuram Rajan, who told a television channel on Thursday that policy measures were geared to stabilising the currency with "minimal damage" to growth.
The poverty question
.........Even today economists have not been able to offer any solution to accurately identifying who is poor. C Rangarajan is the head of a commission that is yet to submit a report to redefine poverty or how to measure poverty or who should be called poor. We have the Abhijit Sen Committee which is yet to identify who should be entitled to the benefits meant for the poor..............
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