Hyderabad, Jul 31 : Reserve Bank of India Governor D Subbarao will launch the Centre for Information Assurance and Management (CIAM), a pilot project on cloud computing, at the Institute for Development and Research in Banking Technology here on August 2. Dr Subbarao will also release the cloud security framework and present the prestigious IDRBT Banking Technology Excellence Awards for the Year 2012 - 13 on the occasion, IDRBT said in a statement..........
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.
Friday, August 2, 2013
Duvvuri Subbarao responds to P Chidambaram, says inflation hurts poor
...."You can't bring it down without some sacrifice in growth... Inflation is a very regressive tax. It hurts poor people more than relatively better off people. The voice of hundreds of millions of poor people is not heard through the media,"................RBI likely to bring urban banks under Ombudsman's ambit
A proposal has been mooted to bring in co-operative urban banks under the purview of Banking Ombudsman in view of their key role in banking activity in many states. The proposal had been mooted by an internal committee of RBI and a final decision would be taken after eliciting views of the state governments, A Madasamy, Banking Ombudsman for Kerala and Lakshadweep, told reporters here today. Madasamy said though there was a strong opinion in favour of the proposal state governments' views were important in the matter since co-operatives come under them....................
Read | Business Standard
Number of bank fraud cases down but amount involved zooms 324%
.........According to Dr K C Chakrabarty, Deputy Governor of Reserve Bank of India (RBI), during the past few years, banking and financial service industry was most commonly victimized by fraud, which arose with sweeping changes in scope and magnitude of banking transactions, the emergence of hybrid financial products, increasing trend of overseas transactions, and dynamics of real-time fund movement and transformation. He was speaking at the National Conference on Financial Frauds organized by ASSOCHAM in New Delhi last week..............
HDFC Bank on rural Fin literacy drive in Goa
...........HDFC Bank will use the Financial Literacy Guide, provided by the RBI as the standard curriculum while conducting these camps. This material is currently available in Hindi and English. HDFC Bank has gone a step further in Goa and is the first bank to translate the guide into Konkani, which is the local language. This has been done in consultation with the RBI and will greatly increase the impact and efficacy of these camps in Goa. The Financial Literacy Guide is a comprehensive document that contains a note for trainers, guidelines for banks on how to conduct the camps, and financial literacy material. It also contains as well as a Financial Diary to track expenditure and a set of 16 posters. The purpose of this guide is to...............
Bus operators introduce plastic tokens flouting RBI norms
............."We know it is illegal and a violation of RBI guidelines, but we have no option. We approached the RBI several times to supply us with token in denominations of Rs 5, Rs 2 and Re 1 but we received no response. This forced us to resort to the illegal use plastic token,”..................
Demonstrations in front of Central Office Building on 8th August
Forum shall be holding massive silent demonstrations on the issues of pension updation and opening of pension option on..........
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Cash fraud in the name of NABARD in W Midnapore
While the dust of the Saradha storm is yet to settle, a fresh bid to defraud gullible depositors is in the works in West Midnapore. In a clear throwback to the chit fund menace, which drew scores to park their hard-earned deposits in sham schemes, a gang of fraudsters have been going around several villages of the district, making collections in the name of the National Bank for Agriculture and Rural Development (NABARD),...................
Next RBI Governor - Succession planning desirable
It is surprising that GOI even at this late hour does not think of pragmatic succession plans for filing top positions like that of RBI Governor. Reserve Bank of India is one statutory body in the country which has been able to withstand the pangs of succession issues at the top for more than 7 decades of its existence, thanks to the maturity shown by those in charge of governance in Delhi. Recent developments brings to the fore the need to recall this and get a reassurance that whims and fancies of individuals destined to take decisions will not change this image. In 2011, the timely decision by Centre to give a two-year extension to RBI Governor Dr Subbarao stood apart as a decisive vote for stability at the Central Bank. This ensured continuity of policy perspective at a time when it was needed most and strengthened the RBI to pursue the right course it was following in different areas of its responsibility. A change of guard at that time would have resulted in slowing down of the processes of change in areas like fighting inflation, forex reserves management, financial inclusion and outreach and transparency in policy prescriptions where Dr Subbarao has made perceptible progress. Recent developments which saw easing out of a Deputy Governor (Subir Gokarn) for no fault of his and compulsions to retain another Deputy Governor for another year calls for a review of the selection and placement procedure at that level. Perhaps the pool from which selection is made and the age profile (raising the upper age limit by 3 to 5 years from the present ‘normal’ at 62 years) need a review. In the circumstances, it would be most appropriate to extend the tenure of Governor Dr Subbarao who is to retire within months, initially by another year at this juncture.
Formulating and implementing succession plans for top government/public sector jobs with professionalism and efficiency in a graceful manner is imperative for allowing the institutions to function with reasonable functional autonomy within the legislative mandates.
- M.G.Warrier
Next RBI Governor - Due diligence in selection required
It is not only the question of RBI GUV being from outside the political ambit which troubles the politicians, but the vested interest of bureaucracy as well. Remember when Montek Singh was appointed Finance Secretary, there were loud protests from the IAS as they considered this post to be their prerogative. Dr Manmohan Singh as Finance Minister cooly gave the reply "Find me a person from IAS who is as intelligent as Montek Singh, I will appoint him". The IAS lobby had no reply.The media wrote that Dr Manmohan Singh backed Montek Singh to the hilt which was published on the first page of the news papers. The sole claim of IAS to be RBI GUV is that IAS man will be able to coordinate with various ministries on economic matters and system will run smoothly. Initially, Dr Subbarao was subservient to MoF and kept fiscal policy aspects predominantly in mind, but after one and a half year, he became a confirmed monetarist. As Fin Secretary, his view was that public debt matters should be in Government domain, he did not find anything wrong with subsidies, 5% Fiscal Deficit, 4-5% Current Account Deficit, micro management of banks (Shri Mittal was Secretary Financial Services with Subbarao as Finance Secretary), conservative FDI/FII policy etc; but became more open and assertive as RBI GUV i.e. what was right as Fin Secretary appeared to be wrong as RBI GUV.The central idea is anybody who comes from IAS struggles a lot to be independent, much energy is wasted squabbles with MoF, he faces resistance and in the process becomes reactive. As IAS, he is supposed to be subservient to the political masters but as RBI GUV one is supposed to have spine. Therefore a perfect due diligence is required for selection of GUV. Invite
all from Academia, Indians in world class institutions, bureaucrats,
Chief Executives of private/public sector/DGs of RBI etc and let the
best man be selected.
- Sitendra Kumar
Not the next RBI Governor
............ Chidambaram made it clear current Governor D Subbarao was not in the race as he wanted to "move on". Asked about the names of other likely candidate, Chidambaram joked, "I can tell you (Namo Narain) Meena, (Jesudasu) Seelam and I are not eligible.".............
Read | Business Standard
Who should be the next RBI Governor? Vote !
................After Finance Minister Palaniappan Chidambaram made it clear that Subbarao is not keen on an extension, the search intensified to fill the post of India’s most competent banker.................
High CPI due to cyclical, distributional problems: Subbarao
.......Talking on the subject 'Dilemmas in Central Banking', Subbarao said treading the growth-inflation balance, managing the impossible trinity and communication whether when, what and how are the three major dilemmas of the Banking Regulator. On the key dilemma, which is growth-inflation balance, Subbarao said, the three objectives of the Monetary policy are to contain inflation, stimulate growth and to ensure financial stability. In our context, the RBI tries to get the right balance............
Reserve Bank too erred in forex scam
............But the RBI in its affidavit to the Supreme Court in FIMMDA appeal had pleaded that this CBI suggestion should not be accepted. “This was strange since RBI’s own circulars have prescribed that such frauds should be referred to the CBI”, said a seasoned chartered accountant of Coimbatore.....................
PCBs to be stripped of banking powers
............The circular has been issued on the basis of the recommendations of the Prakash Bakshi committee constituted by the Reserve Bank of India (RBI) to streamline the functioning of credit cooperatives. The circular says the PCBs will function as business correspondents of the district and State cooperative banks. The share capital mobilised by them by way of share-linked capital of the loans will get transferred to the books of the district and State Cooperative banks. They will function as independent entities out of their own fund and earn income or service charges for rendering the services listed out by NABARD........
Plan panel objects to govt funds for Post Banks
........Officials said the Commission is of the view that the Rs 500 crore needed as initial paid up capital for launching Post Banks might not be feasible at the moment because of overall tight fiscal conditions. "Though in-principle the Commission does support the proposal, but current weak financial condition is acting as a hindrance," a senior official said..................
Stable exchange rate is important to attract investments: Subbarao
................Though some say the RBI has failed in taming the inflation but managed to pull down growth, the reality is that the headline inflation, measured by the wholesale price index, came down from double-digit levels to around 5 per cent. But consumer price inflation is still ruling high, which is mainly due to certain distributional issues. “I do not agree with the contention that RBI is obsessed with inflationary pressure. We have to keep in mind inflation, financial stability, and, at the same time, growth. We are concerned about all the three,” he said. But, in the current context, containing inflation is the prime agenda for the bank,..............
SBI chief, Pratip Chaudhuri, blames government for rising NPAs
Pratip Chaudhuri, chairman of the country's largest lender State Bank of India, blamed the government's tardiness in clearing projects and supply of coal - or the lack of it - as the reasons behind rising sticky loans in the banking sector. Speaking at a closed-door meeting between bank chiefs and senior Reserve Bank of India officials, Chaudhuri stoutly defended the banks, arguing they alone cannot be blamed for the spike in bad loans, which have hurt their balance sheets...............
A tale of two economies
............This collection of essays comes at a time when the roles of India and China in the global economic order and the state of their domestic economies are being widely debated. These essays will provide significant pointers to policymakers, governments and academics alike about the various dimensions of economic reforms, industrialisation and inclusive development in India and China. This collection is a timely intervention as it questions several conventional assumptions in policy circles in India about the paradigm of development that is best suited for the country................
Avoid borrowed resources from international markets
Raising funds from overseas may be easier but at what cost? Can the economy bear such losses? The cost will certainly outweigh the benefits. Instead, the FM would do well to raise domestic savings and improve the investment climate to attract inflows................
Read...........
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A sense of purpose
After RBI Governor D Subbarao contributed to the falling rupee on Tuesday by saying he thought this was the wrong time for a sovereign bond and that India didn’t need to go to the IMF for a line of credit, finance minister P Chidambaram did well to say the government has plans to get PSUs to raise funds abroad as well as to target NRIs and various sovereign wealth funds (SWF) to bolster India’s forex reserves................
NRI bonds fraught with legal challenges, says SBI chief
To bolster India's foreign exchange reserves and curb the sharp slide in the rupee, issuing long-term bonds to non-resident Indians in international currency is being considered. However, State Bank of India (SBI) Chairman Pratip Chaudhuri says this is an option fraught with legal and regulatory challenges......................
Why Chidu’s quasi-sovereign bond issue is a stupid idea
........A case in point is the issue of whether the country should issue a sovereign bond abroad to shore up foreign exchange reserves. In the alternative, given the Reserve Bank of India’s (RBI’s) opposition to the idea, the finance minister said, we could consider a quasi-sovereign bond issue (or issues) by state entities such as banks or cash-rich public sector companies. “All options are on the table”.............
Here's how Telangana bifurcation impacted RBI bond auction
The proposed bifurcation of Telangana from the state of Andhra Pradesh (AP) impacted the auction pricing of the latter's development loans at the Reserve Bank of India (RBI) on Wednesday. Investors got a higher premium on the cut-off yield at 9.84 percent for tenure of ten years............
RBI's monetary activism may take a toll on equities too
.......The outlook has turned bearish as there are few places to hide at the moment. Defensives are back in focus as staples and technology continue to report double digit growth, even as others are reporting muted performance. Financials have been downgraded by most analysts as they believe “monetary activism” will hinder the sector's growth and profitability. What’s worse is that few in the market believe that RBI will roll back its tightening measures in a calibrated way...............
Shielding the Rupee from Alien Threats
......Clearly,
given the level of the Indian economy’s global engagement, it is futile
for India’s central bank to try and manipulate the exchange rate in any
particular direction. What it can and should try to do is to allow the
market to price in as much information as possible, so that ...............
Display cash non-availability at ATM before transaction: RBI
....."The message regarding non-availability of cash in ATMs should be displayed before the transaction is initiated by the customer," the RBI said in a notification. Such notices may be displayed on the screen or in some other way. Banks should also highlight the ATM ID within the premises so that customers can quote it while making complaints or suggestions, according to the notification. The RBI said despite a number of instructions to banks to enhance customer service and handling of complaints, certain operational issues continue to persist. ...........
ING Vysya Bank launches premium debit card
....."The ING MasterCard Premium Debit cards with their superior benefits and innovative reward points system are a wonderful example of this commitment. We look forward to a long and fruitful partnership with ING and to many other such innovative products in the future." The card will be available in three variants -- Titanium, My World and World Exclusive -- and customers can choose the look and feel of the card from a selection of 50 images covering segments like sports, entertainment, lifestyle the company said............
Kotak Mahindra Bank to open 100 new branches in FY 2014
......."Expanding branch network is expected to boost premium banking business. There is untapped potential for premium banking business in smaller cities," ...........
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