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Tuesday, August 13, 2013
Stop playing to the gallery - Dr.S.S.Tarapore
Fighting without fighting - Dr.Subir Gokarn
Reserve Bank and the art of communication
..........A very specific communication exercise — and this what this article is really about — by the Reserve Bank of India — has all the ingredients for an excellent case study. On July 30, while reviewing its credit policy, it issued its guidance — its assessment of what the monetary stance would be in the future. Of particular interest to all was when the RBI will roll back its liquidity squeezing measures it had announced in instalments a few weeks ahead of the policy to curb volatility in the rupee..........
From lemma to pentilemma, via the Impossible Trinity
....In the beginning was presumably the lemma. It’s entirely possible that God said, “Let there be lemma”, and there was lemma. And the lemma shone in the darkness; and the darkness comprehended it not. Nor did I. So I looked up dictionary.com, which says a lemma is a subsidiary proposition introduced in proving another proposition; a helping theorem. Its only purpose lay in paving the way for something greater and grander, very probably monetary policy. The good thing about the lemma was that it was a proposition. Because to proposition is the first step in the long and convoluted road that leads to begetting. Thus it came to be, in the fullness of time, that the lemma begat the dilemma............
India’s ‘craze for foreign’ must end
It would take extreme effort for Raghuram Rajan to do a worse job of ensuring economic growth than his immediate predecessor Duvvuri Subbarao, who will leave behind a banking and industrial wasteland by the time his extended term concludes in a few weeks' time. Given that he has been a loyal chela of the economic adviser to the Prime Minister, C. Rangarajan, it would be understandable if he were to expect to be given the Padma Vibhushan at the next investiture ceremony. Odder choices have been known to occur, no doubt inspired by the Nobel Peace Prize awarded to Henry Kissinger or the European Union. More apt than simply a national award would be the gifting of a ministerial-level commission chairmanship to Subbarao................
INDIAN ORIGIN AMERICAN AS RESERVE BANK GOVERNOR - Vipin Malik
.........Second foreigner as Governor was: Sir James Braid Taylor July 1, 1937 to February 17, 1943 Dr. Urjit R. Patel was appointed Deputy Governor on 14.01.2013 of Indian origin with South African Passport. However, immediately after his Notification he obtained Indian Passport from Ministry of Home Affairs.There are four Deputy Governors under the Act and till date there have been fifty five Deputy Governors appointed by the Central Government.There is no debar under the RBI Act, 1934 on the qualification requirements of the RBI Governor as there is only disqualification of Directors and Members of the Boards. Governor is also one of the Directors...........
Note forgers, beware
Cash transaction at the bill collection centre of Tamil Nadu Generation and Distribution Corporation has become a lot easier for residents in the western parts of the city. The bill collection centres have been provided with counterfeit money detector machines to identify fake notes, thereby even reducing the transaction time to a great extent..........
Bank Employees Wage Revision on Right Track
........The delegation consisting of representatives from all the nine constituent of UFBU, United Forum of Bank Unions was led by Sh. Basudev Acharya, Member of Parliament. The Delegation submitted a memorandum to the Finance Minister with demands related to followings:............
Ring out the terminal, ring in the depot
...........S.Venugopalan, a resident of Vannandurai, says over the years MTC has discontinued a number of services on the stretch, citing that it was an elite neighborhood where many of its residents did not rely on bus services. “That was a wrong judgment as many from the fringes of Besant Nagar commute to north Chennai on work,” says the retired RBI officer, who has written many letters to MTC seeking more services on this route...........
Obituary
Mrs. K.Rama (64) Ex-RBI, wife of N. Kasthuri, Chrompet (Ex RBI) died on 09/08 attained Acharyan Thiruvadi on 09/08/13. Phone: 2265 2619
Mr. M.V.Sundaram, Retd. Reserve Bank of India, Chennai died on 10/08/13. Ph. 26575887
Mr. M.V.Sundaram, Retd. Reserve Bank of India, Chennai died on 10/08/13. Ph. 26575887
Hindu
Where is the "DOMINO EFFECT? - Sitendra Kumar
In interaction with the associations on pension issues, Shri Takru
has spoken about DOMINO EFFECT. What is this? It implies that if RBI personnel
are sanctioned PENSION UPDATION, it would have to be acceded to SBI and
thereafter to Canara Bank, Syndicate Bank, UCO Bank etc; i.e. to entire banking
sector. Now the question is;..........
Raghuram Rajan - ‘Young Economist’ : Will He Be Able To Put Economy Back on Track and Sustain Internal Politics at RBI and Political Pressures
....Now newspapers are full of praise for this so called Young Economist being at the helm of RBI affairs. I too do not have doubt about his capabilities. Question which arises in my mind is whether the ‘young age’ will become a virtue or a drag for his performance. I am raising this issue as most of the bankers are facing such a clash of personalities in the banking sector. In last five or six years, some CMDs have brazenly promoted junior officers by ignoring the performance of seniors. These banks have seen lot of personality clash as senior in service are being asked to serve under the junior people. Such brazen violation of seniority has led to slower growth of the banks and rise in NPAs. Rajan too is likely to face challenges from his Deputies, some of them are much older and experienced in the field of banking......
Race on for Rajan’s ‘lucky’ room
.....Paul moved to the Rashtrapati Bhawan as the President's high profile secretary. Rajan, who was the economic adviser to the Finance Minister, went on to become the RBI governor. So the room is considered to be lucky.
Why Chidu and Rajan may not be walking together just yet
.......The astute economist that Rajan is known to be, despite his stint in government he will have to weigh the pros and cons and opt for the option which most guarantees financial stability for now. Simply put, his first monetary policy statement, which will be articulated on 18 September, just days after he takes over, will likely be one which may once again not make finance ministry mandarins too happy. Experts see Rajan as continuing with RBI’s policy of independence in policymaking, particularly given the present situation...........
Low Rupee, Or High Rates; Can't Have Cake And Eat It Too
......Chidambaram and others have been blaming gold for the high CAD, but it is their low interest rate regime in a high inflation era, that pushed people to gold. Once you reward savings with higher interest rates, that will be the beginning of a new innings for the Indian economy. We need to make up our mind – whether we are acceptable to high interest rates for a while, or lower rupee. We can’t have the cake and eat it too.
PSU banks: time to adapt to social media
......... “A blend of physical and digital is the way forward. Banks can mine and harvest rich information from social media and it is a good building block for economic and customer research and trends”, the paper released recently by RBI Governor D. Subbarao said. The IDRBT acknowledges the challenges that confront the banking sector in this direction when it says existing organization structures and business processes are two main challenges that need to be overcome in view of a serious social media foray. Another barrier to adoption of social media is delay in process upgrades and updates. This was because of the fact that initiatives like centralised processing are not exploited enough.........
‘RBI officials to visit four districts’
Senior officials from the Reserve Bank of India will soon visit four districts in the State to study the grievances of the micro sector entrepreneurs, particularly regarding the non-implementation of RBI guidelines on providing loans up to Rs. 10 lakh without collateral security,...........
Police on the lookout for cooperative bank directors
...........Fearing arrest, the officials filed an application before the local court seeking anticipatory bail. However the First District Sessions Court rejected the application on Thursday. According to the police, the bank officials have remained ‘untraced’ ever since the complaint was filed. However Mr. Munavalli clarified the bank had remitted the amount to the Reserve Bank of India, and said the amount had been credited to ineligible beneficiaries due to the lack of proper guidelines...........
IRDA allows banks to act as insurance brokers. Will the RBI agree?
......Reserve Bank of India (RBI) has said that banks assuming the role of insurance brokers may also lead to conflict of interests. While the RBI approval is required for banks to become brokers, IRDA is of the opinion that in case of any dispute arising out of insurance transactions, its jurisdiction should prevail. It added that the laws applicable to insurance contracts shall be enforced and information in this regard shall be furnished to the RBI..........
Growth comes last
..........It is an open question how the government and the RBI will react to these figures, which show inflation high but steady, and the trade deficit declining, at the cost of a continued manufacturing slowdown. In the absence of an explicit policy shift to growth instead of stabilisation, this may well be the trend for the next few months.
Compounding fees to be refunded to applicant's a/c via NEFT
...............The directive came as the RBI had received a number of applications for compounding of contraventions of FEMA which were sent without proper approvals from the authorities concerned. If an application has to be returned for this or any other reason, the application fees is also returned, it said............
India's gold guzzling still high, spurs neighbours to act
......The RBI last moved on July 22, when it stipulated that 20 percent of gold brought into the country must head out again as jewellery - a move that has dried up supplies and stalled business as traders wait to find out how the rule will work. Demand in the country remains strong, however. Gold is still a must-have at weddings and festivals, which get into full swing in the next few months. There are signs now that Indians may be bringing in gold through neighbouring countries, pushing their imports sharply higher as well and prompting action by their governments. Pakistan has slapped a one-month ban on gold bought to make jewellery for export after its imports jumped 386 percent in the first half and topped $514 million in July alone - more than double what it bought in the first six months of 2012. "The difference in import duties seems to have provided the incentive for increased duty-free imports in Pakistan and smuggling to India," a statement on the finance ministry's website said...........
Ratnakar Bank to buy part of RBS' businesses in India
Kolhapur-based Ratnakar Bank on Friday said it had agreed to buy Royal Bank of Scotland’s (RBS’) business banking, credit cards and mortgage portfolios in India. The private lender did not disclose the price at which it will buy these businesses. The deal is subject to approvals from the Competition Commission of India (CCI)........
Karnataka Bank holds exporters’ meet in Panipat
.......A bank release said here on Monday that Bhat was speaking after inaugurating an exporters’ meet, jointly organised by Karnataka Bank, the Federation of Indian Export Organizations (FIEO) and Panipat Exporters’ Association, in Panipat recently. Bhat said the bank treats export credit as national priority, and it is committed to provide export credit to all the eligible exporters at a competitive interest rate..................
Banks swallow Vijay Mallya's pride
Banks took possession of the Kingfisher House, the head office of debt-laden Kingfisher Airline since 2005, on Sunday. The lenders are likely to sell the property situated on a 25,850 sq ft plot, which includes the office premises of over 17,072 sq ft, situated on the Western Express Highway near the domestic terminal in Mumbai...............
SBI to name subsidiary for merger by Sept-end
.........Chairman Pratip Chaudhuri said the preference will be to pick an associate bank that is weak on the deposits front. "We will look at a bank which is not very strong in retail deposits. SBI is cash surplus, it has more deposits than assets can absorb. We will look at a bank preferably which has more assets but does not have similar strength in deposits," ...........
SBI's Chaudhuri: Bright sparks amid bad numbers
..........It is difficult not to compare Chaudhuri with his predecessor because he spent much time undoing the past. Starting with provisioning of Rs 10,000 crore to mending ties with the regulator, the Reserve Bank of India (RBI), who had objected to teaser loans launched aggressively in the earlier years. Chaudhuri simply stopped the product. Bhatt chased growth and famously made ‘the elephant dance’ whereas Chaudhuri had to work hard to slow down the elephant. Bad economic conditions, both globally and India, warranted such a move. Slowing down did not mean that Chaudhuri didn’t a colourful tenure. In the past year or more, he has crossed swords with the regulator by.....
SBI’s rising bad loans reflects poor health of public banks
An increase in distressed loans, and the provisions to guard against them, are likely to eat into the profits of State Bank of India (SBI) this financial year and also hurt its smaller state-run rivals............
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