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Saturday, August 31, 2013
Five years of leading the Reserve Bank - Looking ahead by looking back: D Subbarao
Reading Subbarao right
...........But never so publicly! Or so bluntly! Though the RBI reports and policy statements are public documents, few care to read them. Most people, including many commentators content themselves with focusing on the interest rate and other policy changes. As a result when the governor raised issues of central bank autonomy, better co-ordination between fiscal and monetary policy and bemoaned the government’s failure to utilize the window of opportunity created by the period of abundant global liquidity, to mention just a few, it was seen as a frontal attack on the government...............
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3 pols x 3 wonks= ?
..................D Subbarao responded later to the criticisms about his record as central bank governor. He was man enough to admit that he may have got it wrong on monetary policy, but he also gave a parting shot to the government and specifically the finance minister. But surely, Dr Subbarao cannot pass the buck entirely; he has to bear some of the responsibility for allowing the rupee to stay too long at a level that priced out exports and caused the gaping current account deficit for which he blames the government.........
The slowdown far exceeded anything that could be attributed to a tight monetary policy: Subir Gokarn
Subbarao pushes case for Producer Price Index to gauge price momentum
...........“As far as inflation measures go, the problem in India is not of deficit, but of excess. Ours is a tale of many indices,” said Dr. Subbarao, while speaking on ‘RBI’s Policy Making Conceptual and Empirical Issues’, at the 7th Statistics Day conference of RBI here........
RBI says role of statistics has increased manifold
New CPI narrow for monetary policy decisions: Subbarao
........Posing the question if there is a case for shifting focus to the CPI, Dr. Subbarao said even in case of such an eventuality, the central bank will not abandon the wholesale price index (WPI) as a tool to monitor producer prices. “My own view is we will not, because analytically we need to develop a series of producer price indices that will help us gauge how price momentum builds up in the economy.”...........
Statistics in RBI’s Policy Making Conceptual and Empirical Issues
Inaugural address by Dr. Duvvuri Subbarao, Governor, Reserve Bank of India at the 7th Statistics Day Conference of RBI, Mumbai on August 30, 2013
...The second conceptual challenge I want to address relates to the measurement of two important macroeconomic variables in the context of monetary policy: potential output and threshold inflation. Understanding the divergence of actual output and inflation from potential output and threshold inflation respectively is critical for the formulation of monetary policy. Reliable estimates of these variables are necessary for formulating the central bank reaction function in the form of Taylor type rules for setting interest rates..........
RBI sees need to develop database for housing finance
Need efficient bankruptcy law in corporate bond market - R.Gandhi
How Canara Bank victimised borrower of an education loan
......This looks like a clear case of error on part of the Bank official/s that sanctioned the education loan or Rs15 lakh without knowing if there could be any ceiling limit. If Parag was told of this limit at the outset, he would have arranged for the shortfall from other sources. But as a result of this mistake, he was being penalised and forced to pay excess interest at the rate of 5% on outstanding amount of over Rs10 lakh. All this while, he was paying regularly his equated monthly instalments (EMIs) without any delays or disruption.............
A bid to improve the image
Nani Palkhiwala Memorial lecture will be remembered in Indian financial sector, not much for the highlights like the ‘joke’ on P Chidambaram about the FM’s monologue about ‘walking alone’, which were given wide coverage by the media, but for its content on the relevance of RBI in the present Indian context. This speech may put a lid on any chance of Dr Subbarao shifting to Delhi or getting nominated to International Organisations like some of his predecessors. But, the task which Dr Subbarao took upon himself, namely, putting forth a strong defence for whatever has been done by RBI during his tenure and setting an agenda for his successor, will improve the image of the central bank which has been made a whipping boy by self-styled analysts and certain hostile individuals in the Finance Ministry.
- M.G.Warrier
We feel neglected
My View on "Introspection on pension updation - P. R. R. NAYAR...":
P R R Nayar’s letter reflects the emotions of many retirees who feel neglected by the institution. The previous letter addressed to Governor on the subject had given the entire ..........
P R R Nayar’s letter reflects the emotions of many retirees who feel neglected by the institution. The previous letter addressed to Governor on the subject had given the entire ..........
RBI Governor opens his mind - Dr.T.V.Gopalakrishnan
......... Former CAG Mr Vinod Rai and the Governor Dr Subbarao have created a new history and shown to the world as to how the Public Institutions should be run and deliver the goods expected of them as per the laws of the land. This is the real strength of the economy.
PM opens race for SBI top job to four managing directors
.......Given the earlier requirement of at least two years of remaining service to be considered for chairman's post, only Arundhati Bhattacharya was eligible for the top job at the country's largest bank. To widen the field, the finance ministry sought an exemption for A Krishna Kumar, another SBI MD. The move comes at a time when the government has decided to give a fixed three-year term to the next SBI chairman, who will take over from Pratip Chaudhuri, who retires in a little over a month............
Chavan to meet RBI governor designate on Sept 6
Maharashtra Chief Minister Prithviraj Chavan will meet the Reserve Bank of India (RBI) Governor designate Raghuram Rajan on September 6 after he takes charge of the office. "I will discuss issues relating to rupee volatility with new Governor." Chavan announced his proposed meeting with Rajan during his interactive meeting with Ficci national executive committee members here today............
'15,653 complaints against pvt banks for excess levy of fees'
.......The Minister said that a number of steps have been taken by the government as well as the RBI to resolve the complaints of customers, expeditiously, including those on excess charges. "In order to improve customer service in banks, majority of recommendations of the Damodaran Committee have been implemented by the banks. A working group has also been constituted by the RBI to review and update the Banking Ombudsman scheme,"..........
RBI quiz competitions
The zonal finals of the inter-school quiz competitions organised by the Reserve Bank of India (RBI) will be held in Mumbai. Earlier, competitions for students of class 9, 10, 11 and 12 were held on August 27 at the Centre for Economic and Social Studies (CESS), Begumpet. .............
Central Bank of India Executive Director receives ` RBI Rajbhasha Shield’
Central Bank of India Executive Director Animesh Chouhan receiving RBI Rajbhasha Certificate from Reserve Bank of India Governor Dr D Subbarao, flanked by Dr Urjit R. Patel, Dy Governor of RBI, R Gandhi, ED of RBI, Narendra Singh, GM (Rajbhasha), Dr Usha Gupta, Asstt GM (Rajbhasha), B Subbarao, Asstt. GM, Mahesh Mishra, Senior Manager (Rajbhasha) and Hitendra Dhumal, Manager ( Rajbhasha). Central Bank of India had been awarded the second prize in linguistic region ‘ C’ and third prize in linguistic region ‘ A’ by RBI for the best implementation of Official Language Policy of Govt of India for 2011- 12 in Mumbai.
Don't donate to trusts where directors hold post: RBI to UCBs
..........."...UCBs are, with immediate effect, prohibited from giving donations to Trusts and Institutions, where directors, and/or their relatives hold position or are interested, even within the permissible ceiling of 1% of the published profits of the bank for the previous year," RBI said in a notification..................
Immunizing against exclusion
....There’s no doubt that Indian policy acknowledges the value of financial inclusion (FI). As early as 2005, the RBI mandated banks to offer a basic 'no frills' account (NFA) that would serve as a gateway for the excluded into the formal financial system. But the reality is that almost 90 percent of the NFAs opened till date is estimated to be dormant...........
Is Indian banking sector ready to take that leap?
As the rupee continues to hit new lows, economists and corporate honchos continue to predict deteriorating economic performance and politicians continue to fight over reforms like there is no tomorrow, the Reserve Bank of India (RBI) has recommended revamping the banking structure to further strengthen the backbone of our economy..................
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Reserve Bank of India revisits ‘Small and Local’
......Notwithstanding India’s past attempt with Local Area Banks and Urban Cooperative Banks, it refers to similar recommendations of the Committee on Financial Inclusion (Rangarajan Committee, 2008) as well as the Committee on Financial Sector Reforms (Raghuram Rajan Committee, 2009), and puts forward the idea that such small localised banks have a pivotal role to play in financial inclusion and that this must be revisited as an important policy imperative. While specific questions need to be tackled, such as .........
RBI allows premature encashment of 8% Savings (Taxable) Bonds
The Reserve Bank today permitted premature encashment of 8 percent Savings (Taxable) Bonds for individual investors who are 60 years and above. This facility is after a minimum lock-in period of three years from the date of issue, RBI said in a statement...........
Food programme ill-timed: Bimal Jalan
..........The current macroeconomic situation is very distressing as of now. India’s GDP growth is low, CPI s high, current account deficit (CAD) is high, fiscal deficit is high, and you are seeing there is no confidence in the market.” His comments come within days of the RBI in its annual report raising concerns about the viability of the Food Security law.
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Of dollars and dahi
.......On the day that marked the birth of Lord Krishna, the organizer of one of the several dahi handis in the city, where a pot of curd and cash hung atop buildings is broken by revellers forming a human pyramid, ensured that the prize money was in dollars rather than rupees. The festival is now heavily politicized, so the man was making a political point: people are losing faith in the Indian currency..................
Rupee-smart holidays
.......So how to choose an overseas holiday with the rupee in free-fall? It's raining discounts and deals as tour and travel companies are partnering with hotels and airlines to offer holidays that fit the budget. They are leveraging 'upswings' and stability in the rupee against currencies of specific countries to offer significant savings. "With stability seen in Australian and South African currencies vis-a-vis the Indian rupee for the past few months, a strong demand is seen for holidays to these two countries from India," ........
Govt plans to set up bullion bank to mobilise idle gold
................ a proposal is under active consideration of the government of india and the RBI to set up a Bullion Bank or the Bullion Corporation of India (BCI) through which buying and selling of gold as well as accepting gold as a deposit and lending it to jewellers could be undertaken, said the sources familiar with the development...............
It’s the interest rate, stupid
.............Potentially, there are two sources of grief for an economy—fiscal and monetary policy. Regarding fiscal policy, several or most observers (including the outgoing RBI governor, Dr Subbarao) agree that UPA-2 regime has been responsible for possibly the worst fiscal policy that India has endured, and I would hazard a guess that outside of Venezuela, possibly the worst fiscal policy of any modern economy. And the nightmare just does not end.........
Sinking equity, currency markets show a braking Indian economy
.............Partly, it is monetary policy that tripped Chidambaram's efforts over the past year. In much of his five-year term, RBI Governor D. Subbarao, due to retire on September 4, single mindedly waged a war against inflation. Questions are now being raised on the pace of interest rates hikes and whether his stance on inflation, widely seen more due to India's supply constraints and less a function of excess money sloshing around, was the optimal one..............
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