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Wednesday, September 4, 2013
Not his master’s voice
End of a turbulent tenure
D. Subbarao: The govt insider who turned rebel
..........Unlike Reddy, who was also a civil servant, Subbarao’s passage to Mint Road from the finance ministry in 2008 was direct. He was given preference over Reddy’s deputy Rakesh Mohan for the top job. In that sense, he was seen as a Trojan horse, so his fights with the ministry have been baffling.............
One cheer, and two boos for Subbarao as he bows out
....It’s not usual for me to criticise public officials who are already down and out – as is the case with Duvvuri Subbarao, outgoing Governor of the Reserve Bank of India (RBI) today. But then, much of the criticism, perversely, is for exactly the wrong reasons: that he tightened monetary policy prematurely and too fast. And despite signs of some mea culpa in his farewell speech, Subbarao has left plenty of ammunition for me to expand upon..........
Life and times of RBI governor D Subbarao
......Within RBI, Subbarao will be remembered for his goodness. He definitely gives a personal touch to everything that he does. But what set governor Subbarao apart from his predecessors was his penchant for clarity of communication. He simplified RBI's policy reports, made them readable. He also reached out to millions in villages across the country and even conducted townhalls with students. He also increased communication with the market by organising calls with analysts and fund managers, a first in RBI's history.............
The lighter side of Subba
.....“I am deeply touched by whatever has been said about me. Whenever someone says such nice things about me…I am reminded of my parents.” “My parents have passed away. Had they been alive…my father would have been very proud to hear such good things about me and my mother would have actually believed it,”............
Banker's reaction on Subbarao's tenure
.........Known to be firm on his decisions, Subbarao said in his last speech that it was the RBI’s responsibility to make that extra effort to listen to the silent ‘voice of the poor’. Here’s what some top bankers had to say on Subbarao, who demits office on September 4:
H. R. Khan, RBI Deputy Governor: I think in what I have seen so far in my experience, he has been the only central bank Governor of any country who has travelled to villages and taken us also along. Also, he has tried to demystify the RBI...........
Lessons from a departing chief
..........In response to criticism that RBI’s policy measures had been confusing and betrayed a lack of resolve to curb exchange rate volatility, he reiterated RBI’s total and unequivocal commitment on the latter. Such a strong articulation by the outgoing chief might make it somewhat difficult for the incoming governor, Raghuram Rajan, to make a quick departure from the established policy, although the latter’s merits are open to question...............
Meet Raghuram Rajan: The former Chief Economic Advisor taking over as RBI Governor
............‘We have enough ideas. It is not just the currency, it is financial inclusion, it is growth. I think there is a lot to do. There are challenges in the economy... These things are not going to be overcome overnight. There is no magic wand. But there are undoubtedly solutions to many of the problems that the RBI can tackle and the job is to go ahead and do it... We will do it one step at a time, make sure that it progresses everyday’,.................
New RBI governor Raghuram Rajan to step into eye of rupee storm
.........The big question is whether the former chief economist of the International Monetary Fund (IMF), who famously predicted the 2008 global financial crisis, will take the helm of the Reserve Bank of India with a whisper or a bang. In other words, will he take his time or come out with fresh policy announcements like Bank of Japan Governor Haruhiko Kuroda, who launched a massive stimulus package within weeks of taking office earlier this year.
............
No Honeymoon for India's New Central Bank Chief
.....Local economists warn that Mr. Rajan, who has spent most of his professional life abroad, needs to prepare for the idiosyncrasies of Indian policy making. "Textbook policies don't always work in India because the economy has a lot of structural issues," said Ashima Goyal, an economist who advises the RBI on monetary policy. India's financial system includes a wide variety of formal and informal sources of credit such as commercial banks, cooperative banks, nonbank lenders and deposit companies, as well as private money lenders. The formal banking sector is dominated by state-run banks. The Reserve Bank has met considerable criticism for recent policy moves, especially its decision to impose limits in August on the amount of money Indian individuals and companies can send abroad...........
Rajan gets a pat on the back
C Rangarajan, chairman of the Prime Minister's Economic Advisory Council (PMEAC), said on Tuesday the Reserve Bank of India governor-designate, Raghuram Rajan, knew his role pretty well, as he had been involved in policy making for the past year.............
‘Raghu’s Forte Is Connecting the Dots’
........Raghuram
Rajan is first and foremost a sharp observer of economies. Raghu’s
interests and understanding of global finance extend beyond his
immediate research focus, which is on banking and corporate finance. In
particular, Raghu has always been interested in the growth of economies
and the institutional and political features governing law and
policymaking that lead to or preclude such growth. What is perhaps
Raghu’s forte is connecting dots in a manner that reflects unusual depth
and common sense..............
Read - ET
Playful Rajan Excels No Matter What the Pitch
Raghuram
Rajan’s demeanour has invariably been unflappable when faced with
questions about what the government intends to do about the inexorable
slide in the rupee or an economy that shows little sign of revival. But
then he seems to come from a family that doesn’t believe in being overly
demonstrative............
My View on " Richly deserved praise from S.S.Tarapore"
Congrats.
I also join all RBIites in appreciating your wonderful and hard work you
put in. Thanks.
G.Gopalakrishna, Executive Director
प्रिय तारांबले
सुबह चाय की चुस्की के साथ मिल जाता है, आर्थिक नीतियों का राज भी ।
समाचार पत्रों की छान बीन करने की न जरूरत होती, घट जाता काज भी ।
रिज़र्व बैंक से संबन्धित ताजातरीन खबरें, हों भारत के किसी कोने की भी ।
समेट लाता छोटी–बड़ी, एकमुश्त दर्शाता “वाइटलइन्फो” खुश होते हम सभी ।
लगे रहो मुन्ना भाई ।
पी.
श्यामसुंदर
मुख्य महाप्रबंधक एवं प्रभारी अधिकारी,
भारतीय रिजर्व बैंक, शिलोंग - 793003
Dear Mangesh,
You
have thus far received well-deserved appreciation from many quarters but the
present one coming from venerable former Deputy Governor Shri S.S.Tarapore is
the ultimate compliment of which you should feel proud of and this should
motivate you to embark on the future with renewed vigour and vitality. All
the very best wishes and Regards.
S.M.Khot,
Ex-GM
Dear Mangesh,
I am so much impressed with the quality of your
work, your lightning speed and the large canvas you are covering. So, when I visited
Pune last week I did make it a point to meet you in person and offer my
congratulations. You are a one-man army dispensing accurate info on all banking
matters. May you grow from strength to strength.
P.P.Ramachandran, Ex-DGM
Dear Mangesh,
It is a great honour
to be complimented by a famous Economist and the former Deputy Governor of RBI.
Kudos to you and your VITALINFO.
Vasudevan
Nair, CAFRAL
RBI and memories of the 2008-09 central bankers panic
.....This should be a lesson for the Reserve Bank of India. It should forget about trying to prop up the rupee and allow it to float completely freely. Instead the RBI needs to focus on a clear and well-defined nominal target. I would prefer a nominal gross domestic product (NGDP) target, but even a strict inflation target or a price level target would be preferable to the RBI’s present stop-go policies..............
Commerce ministry pushes RBI for priority sector lending to exports
..........Apparently, commerce secretary S R Rao had taken up matter “personally” with Raghuram Rajan, who will take over as the RBI governor on Wednesday, last month, urging him to notify the rules based on recommendations by a committee headed by G. Padmanabhan, Executive Director, RBI.............
India needs strong framework for financial conglomerates: IMF
The IMF has asked Indian regulators such as Sebi and RBI to put in place a strong coordination framework to deal with possible failure of the country's financial conglomerates, an issue that has been a key concern in the US and other large economies. In its financial sector assessment report on the Indian securities market, the International Monetary Fund (IMF) said that "regulators should seek to develop a basic framework for coordination to deal with the failure of entities" belonging to large financial conglomerates..........
Institute of Actuaries of India expels R Kannan, slaps Rs 5 lakh fine
.......... This is the first time that the institute has taken such a stringent action against such a high profile person. The decision had created a storm in actuarial circles when the news was leaked after the meeting. Kannan, besides being a member (actuary) of IRDA, was earlier a principal advisor in the Reserve Bank of India and also the head of Department of Economic Analysis and Policy.............
BANKING ON TRIED & TESTED TALENT
........Not
only do these bankers bring strong retail experience, they have
corporate relationships that can come handy when the banks are being set
up. While none of the former bankers are in executive roles, they will
play a critical role in guiding the management in the right direction. Among
other ex-bureaucrats and bankers who have recently joined the boards of
some of these companies are Arun Ramnathan, former finance secretary,
now at Religare Enterprises; AK Khound, earlier with RBI, who has been
roped in by Aditya Birla Group; AC Mahajan, former chairman and managing
director of Canara Bank, now at Religare Enterprises;............
Home loans: Central bank bars upfront payments to developers
.......“Such housing loan products are likely to expose the banks as well as their home loan borrowers to additional risks,” an RBI notification said. Since the loan is in the name of the buyer of the house, any delayed payment of interest by the builder harms the credit score of the buyer instead of the developer, RBI said. These schemes have been popular in recent times as the liquidity-strapped developers use it for propelling sales..........
Swapping current troubles for future ones - A.Seshan
........... Ideally, the RBI should not go by the market rate of exchange since it would then be only validating it. It should be at a level that it considers reasonable. The objection will be that it will give an idea of the Bank's view on the normal exchange rate beyond which it will intervene, something that it has denied all along. So what? It is good if it brings down the rate from today's stratospheric levels. After all, that is the objective of the swap arrangement................
BoP crisis is due to micro factors also: Gokarn
NSEL crisis: Sub-groups to submit reports to DEA by Sept 12
The two working groups, set up to look into violations by NSEL in the payment crisis on the commodity exchange, are likely to submit their reports to the Department of Economic Affairs by September 12. "The two groups will submit their reports by September 12," DEA Secretary Arvind Mayaram told reporters here after a meeting that was held to discuss the crisis. The meeting was also attended by RBI Deputy Governor K C Chakrabarty, Revenue Secretary Sumit Bose as well as officials from Enforcement Directorate (ED), Consumers Affairs Ministry and Corporate Affairs Ministry..........
Now’s the Time To Act On Foreign Bank Subsidiaries
.......RBI’s
August 27 discussion paper on the structure of banking in India brings
back the focus on foreign banks functioning in India which it has been
looking to streamline since 2005. It favours entities such as Deutsche
Bank, Citigroup and the Hong Kong and Shanghai Banking Corp to form a
company in India, called subsidiarisation, instead of functioning as
branches of their overseas parent companies. “The experience of the
recent global financial crisis suggests that complex structures, too big
to fail and too connected to fail, could exacerbate the crisis,” says
RBI’s discussion paper. ..........
Adopt simple method for claim settlement of deceased a/c: RBI
......."We have been receiving feedback from public that banks are not following the simplified procedure as advised...Banks are therefore, advised once again that they should strictly comply with the instructions for hassle-free settlement of claims on the death of a depositor," RBI said in a statement. Further, it asked banks to provide claim form for settlement of claims of the deceased accounts, to any person or who is approaching the bank and branches for such forms so as to settle the claims on time. ......
Careful with ATM Cards - Dr. N Krishna Mohan
ATM cards issued by the public sector banks are highly susceptible to fraud as they are made with inferior technology, according to the banking ombudsman of Andhra Pradesh. “The cyber crime wing of the police department has been receiving 4-5 complaints every day involving impersonation and most of these cases pertain to the cards issued by the public sector banks,” N Krishna Mohan, banking ombudsman and Chief General Manager (CGM) of RBI, said...........
RBI says P&L a/c should exclude failed ATM transaction amounts
The Reserve Bank of India Tuesday said failed ATM transaction amounts represent unclaimed balances and directed banks not to include them in their profit and loss accounts. The RBI said it was brought to its notice that some banks were transferring credit balances pending reconciliation due to failed cash retraction, sensor failure and technical or hardware errors to their profit and loss accounts..............
Banks deposit fake notes at Parliament St police station
..................."Parliament Street police station has been made the nodal police station by RBI to register cases of Fake Currency Indian Notes (FICN), so various banks from time to time deposit such counterfeit currency with us. It is not possible to give an exact figure but the amount is in crores," ................
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