...........Any signal today by the RBI of monetary easing could trigger an outflow by foreign investors from the debt market. Hence, it is hoped that Governor Rajan would not reduce policy interest rates or reserve requirements (including the 99 per cent daily requirement for the cash reserve ratio) and not expand refinance facilities. If the RBI eases monetary policy today and the Fed tightens its policy at the next review, the RBI would find the imperatives that much more difficult to tighten monetary policy a few weeks later.................
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.
Friday, September 20, 2013
Will leave bank in much better shape than what I inherited: Pratip Chaudhuri
..............I’ve cooling period of one year. I’ll be settling in Delhi and for some personal things I need two three months time. Once that is over, I would definitely like to do some social work in government schools. These schools teach maximum number of our people. If we are able to improve the conditions (physical and quality of education), it would be a very important building block......................State Bank of Patiala opens all women branch in Chandigarh
.......The State Bank of Patiala has converted its branch in Sector 35-D of Chandigarh into an all women branch. RBI Regional Director, M.K.Singh inaugurated the all women branch in the presence of Managing Director of State Bank of Patiala, Achal Kumar Gupta.........
Oriental Bank opens branch at Rasulgarh
Bhubaneswar: The Oriental Bank of Commerce (OBC) opened its 48th branch at Rasulgarh here on Monday. The branch was inaugurated by Regional Director, Reserve Bank of India PK Jena in the presence of OBC DGM. This is 2050th branch of the bank in the country. Sinha Ray informed that three more branches and for ultra small branches in unbanked villages would be opened in the State this financial year.
The Pioneer
Here’s how banks can goof up with your post dated cheques
...This is no imaginary situation. The above example comes from the Reserve Bank of India’s banking ombudsman office. In this case, the aggrieved customer finally approached the banking ombudsman, which held both the banks at fault. The presenting bank was at fault for presenting the post dated cheque before the due date and the second bank for not scrutinising the date of the instrument before processing............
Air India, SBI Cards launch co-branded credit card
Air India has tied up with SBI Cards to launch a co-branded travel credit card that seeks to add value to the travel experience of Indian customers. The offering from this tie-up comprises Platinum as well as a Signature card. Given the value proposition offered by the new Air India SBI Credit Card, it is going to wipe out all other credit cards in the market and achieve a significant market share in the next few months, said Rohit Nandan, Chairman and Managing Director, Air India.............
RBI की ऑल इंडिया इंटर स्कूल क्विज में खेलेंगे 90 स्कूल
उदयपुर. भारतीय रिजर्व बैंक की ओर से शहर के विद्यार्थियों के लिए 20 सितंबर से ऑल इंडिया इंटर स्कूल आरबीआई क्विज का आयोजन सुखाडिय़ा विश्वविद्यालय के ऑडिटोरियम में सुबह 9.30 बजे से किया जा रहा है। आरबीआई के अधिकारियों के अनुसार राष्ट्रीय स्तर की क्विज के प्री क्वार्टर और क्वार्टर फाइनल राउंड के लिए शहर के 90 स्कूलों के विद्यार्थी भाग लेंगे और अपने दिमागी घौड़े दौड़ाएंगे।........
Read..........
Read..........
Fake Lottery Email from RBI
.....The Reserve Bank of India (RBI) Governor, Raghuram Rajan and Ban Ki-moon Secretary-General of the United Nations met with the Senate Tax Committee on Finance RBI Mumbai/Delhi branch. Regarding unclaimed funds which have been due for a long run, at the end of the meeting (RBI) Governor, Raghuram Rajan mandate all unclaimed funds to be release back to the beneficiary ...............
Three Circulars of SYNDICATE BANK PENSIONERS & RETIREES ASSOCIATION
All the three circulars are important as these deal with some of the important issues of retired bankers. We reproduce relevant extracts from all three circulars for the benefit of our retired bankers:...........
Thanks, Bernanke! But, no thanks!
.........But the cost of the tapering talk has been huge. The RBI has depleted its foreign-exchange reserves in trying to fight the flight of precious dollars from Indian shores. Indian stock- and bond-market investors lost heavily. Financial-planning models went for a toss as investors tried to salvage their losses and re-work plans. Nobody denies that the tapering has to come to an end. But everybody was forecasting that there would be slower bond purchases, reading into the statements of the US Fed chairman. Markets had started to factor in such slower bond purchases.............
Band, Baaja, Bernanke!
Ben
Bernanke blinked and markets across the world surged. Having plummeted
more than most when the US Federal Reserve warned about unwinding its
stimulus programme, Indian stocks soared and the rupee staged yet
another strong revival, reflecting the stunning turnaround in outlook
for foreign inflows into the country after the Fed’s surprise decision
not to call time on a yearlong monetary easing programme. Bank stocks
catapulted to new highs led by ICICI Bank and State Bank of India and
foreign investors streamed back into the market, buying equities worth
more than Rs. 3,500 crore on Thursday, one of the biggest single-day shopping sprees so far this year..............
Read - ET
Fed gives RBI handle to start unwinding July measures
Don’t be surprised if Reserve Bank of India (RBI) Governor Raghuram Rajan kicks off the process of unwinding of some of the July measures on Friday at the central bank’s mid-quarter review of monetary policy. The US Federal Reserve deciding to hold off tapering of the stimulus for the time being gives him the leeway to do that..............
Fed makes room for RBI
........ The more immediate impact of the Fed’s decision, however, is to give RBI more room to ease policy rates, certainly to start dismantling the ‘interest-rate defence’ wall put up on July 15 which boosted interest rates 300bps immediately—the wall comprised not just the hike in MSF rates but also changes in CRR balances and LAF limits among others. Many argue lowering rates is bad idea since the rupee hasn’t quite stabilised and inflationary expectations also need anchoring. Since the Fed’s action means the dollar will weaken, the rupee gets an automatic stabilizer; also..........
A big fat Fed surprise
In a development that stunned not just the U.S. markets, the U.S. Federal Reserve sprang a big surprise by keeping its $85 billion a month asset purchase programme intact for at least a few more months. The ultrasoft monetary policy, designed to keep interest rates in the U.S. abnormally low to aid recovery in the post-recession period, would continue most probably at least until the end of the year........
Suspense after sweet surprise
.....“He could bring down the spread over the repo rate by 100 basis points to 200 basis points,” said a senior official with a nationalised bank. The official added that the RBI could also do away with some of the higher CRR requirements and bring it down to below 90 per cent, a measure that would give some liquidity comfort to banks. Bankers, however, do not expect the RBI to make any changes with regard to banks’ access to the LAF........
We have Only Breathing Room, Not an Elixir
....So
what does all this mean for the RBI? It is tempting to believe that a
dovish Fed will induce a dovish RBI response, and the central bank could
dismantle the entire interest rate defence. But one thinks the RBI will
not be lulled into knee-jerk overreaction..........
Ahead of RBI policy review, SBI raises lending, deposit rates
Just a day ahead of the Reserve Bank of India’s second-quarter monetary policy review, State Bank of India raised deposit and lending rates. Competition to garner resources prompted India’s largest bank to increase retail term-deposit rates (below Rs 1 crore) by 25-100 basis points. One percentage point equals 100 basis points......
Finance ministry plays it cool but relief shows in North Block
......Former Reserve Bank of India (RBI) governor Bimal Jalan said the Fed decision had brought India time. "I am glad. It was a surprise. He (Fed chief Ben Bernanke) has done it. You can't keep on pumping money. No country can. Tapering will happen. But it gives us time to do what we want to do," Jalan, also an ex-chief economic advisor, told reporters after meeting some ministry officials in North Block. The economy would be better prepared for tapering, he said. "Now we are not dependent on what the Fed does, we are only dependent on what RBI does.".........
Lucky Rajan gets a breather, but it’s still about fundamentals, stupid
Lady luck has smiled at the ‘handsome’ Raghuram Rajan on the eve of his first monetary policy statement as RBI Governor. So what does it matter, if she happens to be in the guise of the bearded chairman of the US Federal Reserve, Ben Bernanke. America’s central bank surprised markets on September 18 by choosing to retain its huge monetary stimulus in the world’s largest economy contrary to its earlier hint in May that it would in fact begin to withdraw it soon...........
Conflicting demands ahead of Rajan's first monetary policy review
All eyes are on new Reserve Bank of India governor Raghuram Rajan, who will come out with his maiden monetary policy review on Friday amid conflicting demands for rate cut and an urgent need to contain inflation which soared to 6-month high of 6.1% in August........
Ideal Boy rides yet again
The enthusiasm with which markets reacted to the new Reserve Bank of India (RBI) governor's enthusiastic first day at the office made me realise that the Indian economy is entering a new phase - Raghuram Rajya, to coin a cute term. Wikipedia and my kids explained to me that the historic/mythological term, Ram Rajya, far from connoting any Hindu ascendancy (as has been often pushed recently), was, to quote Mahatma Gandhi, "undoubtedly one of true democracy … [that] ensures equal rights alike of prince and pauper"...............
A little less lazy pragmatism, please
.......How will Rajan set monetary policy? Going by his reaction to the Fed’s quantitative easing (see his book “Fault Lines” or his speech at the BIS this February), he remains concerned about the harmful and often irreparable effects easy monetary policy has on inflationary expectations. Thus, one should brace for a hawkish policy stance. But in any event the next policy review will not be decided by India’s inflation trajectory. Rather by what happens to the rupee. In contrast to Governor Subbarao, Rajan believes that the rupee has been oversold so an easier monetary stance will have to await the currency stabilising at an appreciated level.........
And Rajan may Just Press the Pedal Today
...........There
is a feeling within some sections of policymakers that capital
controls, such as reducing the automatic limit on corporate investments
oversees as well as the annual forex remittances by individuals, were
knee-jerk responses to the falling rupee. They now want to use the
breather provided by the Fed to reverse these decisions and take steps to bolster the rupee against the impact of a possible taper of the bond-buying.......
Clash of economic traditions
........But in this divide between the bank-led and market-led financial thought and practices, where does the Indian financial model stand? Indian policy makers Manmohan Singh, Montek Ahluwalia, P. Chidambaram and Raghuram Rajan are all admirers of, or trained in, the Anglo-Saxon economic theories and practices. In his study along with Zingales (2001) Raghuram Rajan faulted bank-based models and celebrated market-led models. It needs no seer to say that the Indian establishment’s economic thinking is undoubtedly Anglo-Saxon. But are the Indian economic players — the savers, the entrepreneurs and the rest — Anglo Saxon in their outlook?...............
Use rupee rally to build forex reserves, say experts
."In the past few years we have only seen negative movement of forex reserves, so Reserve Bank of India should rather target depreciation than appreciation," Sabnavis said. Rajiv Kumar said he had suggested building forex reserves to the RBI Governor YV Reddy in 2004-05 as well. "The rupee has overshot on the other side with the natural rate being about Rs 64-65," he said.........
After initial euphoria, eyes on Rajan’s debut test!
In my view, the need of the hour is to make changes that will give Indian industry the confidence to invest in big projects. Monetary stability will be only a small part of this issue, in which the Reserve Bank of India (RBI) may have to intervene from time-to-time to make sure that institutional investors stay put in India and don’t make a beeline to exit at the drop of a hat...........
Banks free to open branches in tier-1 centers: RBI
...........“Total number of branches in tier -1 center’s can’t exceed the number of branches opened in tier-2 to tier-6 centers during a year”, RBI said in a circular to the banks. As a incentive to open rural branches, the banks would be permitted to open equal number of branches in tier – 1 centers which they open in under-banked districts of under-banked states excluding the mandatory 25% branches. .............
China opens first direct bank
......A new mode that has proven popular in the European and U.S. markets, direct banking does not rely on entity outlets, instead offering financial products and services mainly via the Internet, telephones and ATMs, state-run Xinhua news agency reported.......
Capital Infusion to cover up NPAs of PSBs
......This approach of financing banks when the banks themselves finance the capital of corporates started by unscrupulous borrowers cannot be considered as good economics . The culprits should be penalized and discipline should be introduced among the borrowers and banks.
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