.......N. Nergiz Dincer and Barry Eichengreen have updated their ranking of global central banks in terms of transparency and independence. Their data shows that the Reserve Bank of India (RBI) is the least independent of the 89 central banks the two economists have studied. They say that the Indian central bank suffers because of the way governors are appointed, the lack of independence in policy formulation and the lack of an independent objective.............
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.
Thursday, September 12, 2013
RBI to get glimpses of Rajan's technical accumen, not earthshaking changes - Rajiv Takru
.....With Raghuram Rajan taking charge as the new RBI Governor, do you think differences between the North Block and Mint Road will come down?
When there are two thinking people they are bound to have different opinions. When two people think about the same thing they very frequently come out with interpretations and solutions which differ. I don’t think we should blow it out of proportion and call it differences. ...........
Why has the rupee recovered? - Renu Kohli
Over the past few days, the rupee has recovered some of the ground it lost to the dollar. Some ascribe this to a retreat from panic overshooting. Others believe it is optimism inspired by a new Reserve Bank of India (RBI) governor. Still others proffer explanations based on economic fundamentals.....
Don't shower bank notes on personalities, says RBI
......."Such actions deface the bank notes and shorten their life," the Reserve Bank stated and added that bank notes should be respected as they are a symbol of the Sovereign and public should not misuse them and help in increasing the life of bank notes. The Reserve Bank has also stated that it has been taking all measures to supply clean bank notes across the country and has urged the members of public to contribute their mite to its efforts in pursuing a ‘clean note policy’ for the country.................
Lack of support hits anti-terror drive
,,,,,,,,,Many banks have refused to share details of suspected bank accounts in which huge money was being sent from abroad with the police. The banks have asked the cops to contact Reserve Bank of India for assistance. DIG, range, A Satish Ganesh on Wednesday said "correspondence made with RBI in this regard has so far failed to yield any result."..........
ATMs, card terminals to scan UID biometrics
MUMBAI: All new credit card swipe machines and automated teller machines (ATMs) will be required to have a mechanism for Aadhaar authentication using biometrics. The Reserve Bank of India (RBI) is understood to be preparing such a directive to improve security and promote financial inclusion. The central bank had been debating between the international 'chip and PIN' and Aadhaar-based authentication to provide additional security for card transactions. Although RBI appears to have reconciled to a combination of 'chip and PIN' authentication for existing customers and biometric checks for hitherto unbanked cardholders, the challenge is in the acceptance devices........
Well written book review
Dear Mr. Ramachandran,
Thank you very much for sending me a copy of your Review of 4th Volume of the RBI History (published in the Free Press Journal on August 23, 2013 ). It has come out very well and I appreciate your taking the trouble of sending its copy to me.
With regards,
Bimal Jalan
RBI clarifies foreign banks can open zero balance account
The Reserve Bank of India (RBI) today clarified that foreign banks having branches in India can open zero balance account. The regulator has released a list of frequently asked questions, in which it has said that the Basic Savings Bank Deposit Account (BSBDA) guidelines are applicable to "all scheduled commercial banks in India, including foreign banks having branches in India"...........
A housing slump in India
................Bimal Jalan, a former chief economic adviser to the Indian government who was also the governor of the central bank from 2000 to 2004, said in a telephone interview from New Delhi that the broader Indian economy could escape serious harm even if real estate prices did decline. India has low rates of homeownership, so families are less likely to be worried about falling home prices and cut household spending............
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Economy will stay in L-shaped trajectory, making RBI governor task more challenging: CRISIL
......Crisil believes that the Indian economy will stay in L-shaped trajectory through this financial year, unlike the V-shaped recovery seen after the Lehman crisis in 2008. Ms Kudwa said, "we are right now at the tail of L-shaped trajectory, which will take some more time to get over." Despite all written and said about new RBI governor and expectations from him, CRISIL made it clear that rising inflation become the biggest hurdle and challenge for RBI governor Raghuram Rajan. "due to rising inflation, it would be difficult for RBI to cut interest rates way forward," Kudva said............
Videocon's flip-flop costs it a chance for banking foray
.....After sending its intention to apply for a bank licence, Videocon group subsidiary Value Industries sent a letter to the Reserve Bank of India (RBI) expressing its desire to withdraw the application. “However, thereafter the group sent a letter again withdrawing the withdrawal letter. The RBI considered all the three letters and announced that Videocon is withdrawing from the fray,”........
Basudev Acharya also against Nabard Circular
.....The Communist Parliamentarian and Chairman of committee on agriculture in Lok Sabha Mr Acharya has called for immediate withdrawal of the circular. According to Acharya, the circular undermines the independence of PACS, weakens the institutional agri-credit system, threatens the federal structure of the country and smacks of arbitrariness and blatant refusal to consult with the stakeholders...........
India considers investing $4.3 b in World Bank bonds
............The Cabinet will tomorrow take up the proposal to allow the Reserve Bank of India to invest in bonds floated by the International Bank for Reconstruction and Development (IBRD), a lending arm of the World Bank. “The RBI will subscribe to the bonds of the IBRD...This is an investment proposal, which means they will get a return on it. So it is not equity or a grant,” a top finance ministry official told reporters here..............
Rupee turns tide under Rajan, becomes Asia's best performer
Before and after he took over as the 23rd governor of the Reserve Bank of India, Raghuram Rajan has been tirelessly saying that he doesn’t have a magic wand. But the market seems to be banking precisely on the opposite. The Rajan magic is indeed working, and how. Till a week back, the rupee had lost about 20% against the dollar in the financial year and for many, there was no end in sight as the currency touched record lows almost every other day.............
Offer investment tax credit to ease economic situation: IIM-A study
While the new Reserve Bank of India (RBI) governor Raghuram Rajan effect on rupee is visibly increasing, an IIM Ahmedabad (IIM-A) working paper suggests there is more to be done, especially in terms of increasing liquidity in the market, and improving the regime for private investment...
FIPB to consider Axis Bank, HCL Tech proposals next week
The proposals of Axis Bank and HCL Technologies to raise foreign shareholding limit will be taken up for consideration by the Foreign Investment Promotion Board (FIPB) next week. Axis Bank had approached the FIPB last month soon after the Reserve Bank of India (RBI) said the limit of investments through Global Depository Receipts (GDRs), American Depository Receipts (ADRs), FDI, NRI, FIIs in the bank had breached the overall limit of 49 per cent of its paid-up capital..............
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