..........The youngest Governor of the Reserve Bank of India (RBI) was branded as “misguided” by then US Treasury secretary Lawrence Summers when, in a paper titled Has Financial Development Made the World Riskier?, he was among a handful who dared to warn against a storm brewing in the financial services sector and questioned whether banks had sufficient liquidity to cope. Rajan was of course proved right when the US sub-prime crisis snowballed into a global economic slowdown.........
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, August 17, 2013
New RBI chief has a bumpy task ahead
....... Government may want to take some undesirable measures which the RBI may not want. So let someone else step in and face the music. If he fails they will smirk. If he does well then the song will be “we could have also done so.” Witness how non-babu SEBI Chairmen were hardly allowed to function. It will not be surprising if they make life miserable for the new incumbent...........
Likely Scenario of New Pay Scales After UFBU Has Agreed For Merger of 4440 Points
.........It is for the first time that since Xth BPS has become due, some serious discussions seems to have taken place and some firm commitments arrived at. However, it appears UFBU has once again failed to extract honourable commitment from IBA and bankers have already lost the initial battle. Now chances of major hike have receded. By agreeing that Xth BPS will be made applicable from the due date, IBA has not done any favour but merely agreed to do what was due to bankers............
Read.........
Read.........
CVC asks RBI for factual report about granting licence to High Mark
.............One of the independent directors of High Mark was Vepa Kamesam, a former Deputy Governor of the RBI. In December 2012, he resigned from the High Mark board. Mr Kamesam was one of the four directors who along with Dr Pandya received 70% of the employee stock ownership plan (ESOP). Mr Kamesam was allotted 1.63 lakh shares in thecredit bureau as ESOPs.
Former Deputy Governor appreciates VITALINFO....................
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
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| File photo taken on 26th January 2012 |
Not just in RBI, across sectors a reversal of reform
Finance Minister P Chidambaram's attempts to talk up the rupee today after it slid to a record low that forced the benchmark stock market indices down by about 4 per cent may not be enough to assuage investors' fears. For, their confidence has been undermined as much by the Reserve Bank of India's panic late on Wednesday to clamp down on how much Indian nationals and domestic companies can invest abroad as by the long list of administrative clampdown and policy inaction across sectors in this government........
Fight the flight
...........To try to limit the damage, India’s finance ministry and central bank need to make clear in public that they have no intention of tightening capital controls on foreign investors, as opposed to unlucky locals. Beyond that, they will try to find more tricks up their sleeve. They could raise an IMF loan to augment India’s $270 billion of foreign reserves and make clear it has ample firepower to cope with a freezing-up of markets. (India’s total financing needs are about $250 billion over the next year, measured by its current account deficit and the debt it needs to roll-over.) But that seems to be off the table......
RBI taking India back to the 80s: India Inc
.....“RBI’s step to contain the current account deficit by imposing a cap on outward investment acts against the Indian economy’s globalisation drive and detracts from the overall reforms process,” ..................
Keep option of going to IMF open: Jalan
Veteran policymaker and former RBI governor Bimal Jalan says there should be greater coordination between various authorities to tackle the difficult macroeconomic situation. Excerpt:
Read - TOI
Read - TOI
Rupee fall: Ben Bernanke can do what the FM & RBI failed to achieve
.............What can probably stop this flow depends on what the Fed Chairman, Ben Bernanke does. If he continues with the quantitative easing, liquidity flow can continue and there can be some hope of money coming to India. Otherwise,the only possible way of reviving the rupee would be via direct intervention by the RBI. This, in our Bollywood scenario would be akin to a mouth-to-mouth resuscitation.
RBI Steps Not Aimed at Capital Control: Govt
The
finance ministry has said it will take all measures to provide a stable
policy environment to stem the volatility of the rupee and clarified
that measures announced by the Reserve Bank of India (RBI) on Wednesday
should not be seen as capital controls. “There is no question of us
putting any restriction on outflows...There is no control of outflows of
dividends, profits, royalties, or on any kind of commercial outflows,
which happen in the normal course,” department of economic affairs
secretary Arvind Mayaram told reporters on Friday.......
Read - ET
Read - ET
IDBI Bank is working to shed legacy irritants
..........The bank’s transformation from that of a development financial institution has left it lacking an expansive retail branch system, which, in turn, has not allowed it to achieve the required 40 per cent priority sector lending. “We moved over from DFI (development financial institution) into the commercial banking segment and with it came some characteristics such as nearly 70 per cent of our loan book being oriented towards corporate,”..............
The PM must resign: Yashwant Sinha
.........The situation is grim. The markets are only reflecting the loss of mood in the India story. The government and the RBI took certain steps recently, but they are only treating the symptoms and not the disease. The fiscal deficit, current account deficit, state of the economy, rupee devaluation — everything is out of control..............
Right time for Islamic Banking
My View on "Participatory Banking instead of Islamic Banking":
Among various modes of financing, lease financing and hire purchase financing are two products which follow very strong Islamic Banking tenets. These products are very familiar to Indian Bankers and users of banking services in the country. So, Islamic Banking can fill a void in this segment of banking. But, I do not agree to the idea of bringing Islamic Banking under the name of Participatory Banking. One, there are no instances where Indians who use banking services in India have shown aversion to banks opened with names of any community. Catholic Syrian Bank, Karur Vysya Bank, South Indian Bank, Federal Bank, Tamilnadu Mercantile Bank and others are there for decades providing banking services to the people across the length and breadth of the country. Two, if Islamic Banking is allowed in India, it would rather attract huge flow of FDI in banking sector particularly from UAE countries and improve the economy of the country as our CAD is is dragging the economy to the new level. So, this is the right time to allow Islamic Banking in its true form.
- S.Santhanam, Pune
Islamic banking gets RBI approval
KOCHI: The Kerala government has got the go-ahead from the Reserve Bank of India (RBI) to launch a financial institution following the principles of Islamic finance. Cheraman Financial Services Limited (CFSL) will be floated by Kerala State Industrial Development Corporation to function as a non-banking finance company (NBFC)............
Will RBI allow banks to sell any insurance product?
............The finance ministry has been in favour of banks becoming insurance brokers. In his budget speech this year, Finance Minister P Chidambaram said banks would be so permitted to help insurance penetration. But will RBI oblige, especially since RBI’s Deputy Governor Dr KC Chakrabarty is personally against banks selling any kind of insurance?..............
'Mature' mis-selling
..........he approached LIC for the maturity value - only to be told he would get the money when he turned 80. Takru said he now needs to wait for 24 more years to get this amount.
Reserve Bank of India appreciated Odisha for adopting e-transaction model
Bhubaneswar: Reserve Bank of India (RBI) has appreciated the e-transaction model of Odisha. The Working Group constituted by the Reserve RBI has appreciated the e-transaction model of Odisha which has centralised automated receipt and payment system using payment platform of the RBI. It has advised all other States to customise the Odisha model of e-transaction as an effective tool of e-governance...........
2 get Rs. 1.3L debit-card shocker
Plastic money fraudsters have struck yet again. A total amount of Rs 1.30 lakh was fraudulently withdrawn at automated teller machines (ATMs) from bank accounts of two persons, allegedly by using cloned debit cards..............
Police want to have a say in setting up of ATMs in city
......Sources said the police will ask the RBI to direct banks to compulsorily install CCTVs and burglar alarms in ATM centres, and to ensure that the doors are small enough to prevent ATM machines from being carted away...........
JK Bank faces financial instability: Karra
.........Karra said that as Finance Minister, he had categorically refused to oblige the “diktats” of Reserve Bank of India. “When then Chairman Jammu and Kashmir Bank Dr Haseeb Drabu informed me that RBI had shot a letter to the Bank asking it that before sanctioning Over Draft to the State Government, the Bank should get permission from RBI and every month JKB should submit its accounts to Central Bank of India. I resisted.”
He added: “But the NC regime due to unknown reasons succumbed to the pressure of RBI.” Today Jammu and Kashmir Bank has lost the much coveted Rs 1 lakh crore business milestone it had achieved on 31st March 2013, in just three months............
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