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.
Wednesday, October 2, 2013
Infra bottlenecks will dilute potential benefits of weak rupee: Subir Gokarn
Implications of new bank licences - B Mahapatra
the Post Graduate Students’ Conclave on “Implications of new bank licences”, at the National Institute of Bank Management, Pune, 28 September 2013
....Finance is fuel for the economy. Banks being at the core of the financial system, provide this fuel. The progress of the real economy depends upon the growth of the banking and financial system. An efficient financial system transforms the savings into investments and channelizes the investments to productive sectors of the economy to spur growth. India is an emerging market economy and has the potential to grow faster. As the Indian economy refocuses on the expansion of manufacturing and infrastructure sectors, the credit needs of the real economy would be much higher compared to the services sector. Entry of new banks would, in a way, help in the economic development of the country..........
Creating an independent debt office
......The discussions between the budget division of the ministry of finance and RBI on cash management as RBI is the banker to the government should be associated with a requirement that RBI and the budget division will supply to the IDMA forecasts of the government’s net cash requirement and exchequer cash flows. This will help the IDMA to ensure the government does not have surplus cash on hand whilst it is borrowing unnecessarily on the capital markets and incurring debt servicing costs. An IDMA should be legally a part of the ministry of finance but operate at arm’s length from it as part of its brief of being an executive agency..........
TC Nair: Right Man, Right Place, Right Time!
.....Financial Technologies was hunting for former regulators and, while many had turned down the offer, this former whole-time director of SEBI and ex-managing director at Bharatiya Reserve Bank Note Mudran Ltd was happy to accept. While other directors of the FT-MCX group were probably worried about the onerous new liabilities and punitive provisions of the Companies Act 2013, Mr Nair is probably relying on his hitherto charmed existence.......
Financial Inclusion: Success Is in the Details
......Financial inclusion—access to formal savings, credit, transaction, and insurance accounts at affordable cost to three quarters of the world’s poor—is an ambitious undertaking and its success hinges on such details as easy, secure interoperability. Success so far in India, a country where almost half the 1.2 billion population remain without the formal banking services, has been mixed in the past six years. The money for these financial services has to start somewhere, so the Reserve Bank of India (RBI) chose G2P government disbursements via mandatory No Frills (NFA) savings accounts for low-income beneficiaries in rural areas as one of the initial drivers............
Dump the textbooks
We have an "out-of-the-box" problem on our hands and it needs an "out-of-the-box solution", not something out of an antiquated textbook
....... The markets chose to focus entirely on the hike and chose to ignore the cut. After the brief honeymoon in which he charmed hard-nosed bankers and reincarnated gossip columnists in equal measure, Raghuram Rajan, after his maiden policy, somewhat unintentionally emerged as a much less charming uber-hawk. One argument is that this biased reading of the market is partly the RBI's fault. Bankers might have understood the barrage of ad hoc measures like the hike in the...........
Rajan Then…And Now
......Since Y.V. Reddy, successive RBI chiefs with some of the deputies have vigorously defended their policy-making turf, much like Beckett as the archbishop of Canterbury. On several occasions, the defence has been ‘we, the prudent’ versus ‘they, the prurient’. This dichotomy, though occasionally useful, needs to make way for better dialogue between the RBI and the finance ministry. But I doubt it. Given these four forces, I wouldn’t bet on an accommodative or expansionary stance of the RBI in the next few quarters. India Inc. and North Block better look elsewhere for solace.
Rajan Panel report: It's a battle of the States
.........From who makes the best biryani, to who plays the best cricket, we disagree on a lot of things across state borders in India. So it's not surprising that we are rarely able to agree on which Indian states are more and less developed. Goa's richer but Kerala's more educated and Tamil Nadu does better on women's health but Gujarat on employment - so who does best all-round?............
Say NO..............
My View on "An appeal to the Hon'ble Members of the Central Bo...":
Government have been pressurising the RBI for the last 15 years to make the RBI Staff regulations statutory. On several occasions, the matter was considered by the Committee of the central Board and the Central Board and they have rejected the proposal. Hence, the proposal of the Government should not be agreed to and they would have to be told in categorical terms that the matter had been considered in the past on more than one occasion and the matter would have to be shelved by them for all time to come.
- A.Chandramouliswaran
e-BAAT programme held
Reserve Bank of India, Bhubaneswar in association with the State Bank of India, Berhampur zone organised an electronic banking awareness and training (e-BAAT) programme for customers. Customers were educated about electronic banking products like net banking, mobile payments, use of debit and credit cards, delivery channels and its security aspects......
Powers of chairman will be exercised with board approval: SBI
State Bank of India, in a notification to the BSE, said the financial and administrative powers of the chairman will be exercised with the approval of the board of directors/management committee of the bank, as the case may be, till such time a regular incumbent is appointed by the Government as chairman. This notification follows Pratip Chaudhuri, Chairman, SBI, demitting office on September 30 upon superannuation.........
Breather for Pratip Chaudhuri in contempt petition filed by SBI officers’ union
The Madras High Court has fixed October 10 for hearing a contempt of court petition against Pratip Chaudhuri, who retired as chairman of State Bank of India on Monday. Senior counsel for the bank stated that Chaudhuri could not be present in court as required ‘since he was retiring’ from the Mumbai office that very day...............
Tech, engineering graduates find bank jobs attractive: Survey
The fast pace of growth in the banking sector is proving to be a major draw for young graduates, especially from the engineering background, according to a recent study. A large number of banking career aspirants hold a B.Tech or Degree in an engineering stream, says a BankersChoice online survey by TalentSprint. Science graduates come next, it added. "About 78 per cent of respondents see banking as a dream job, more than half of them are engineers," it said...........
In banking, don’t ape the West
........The rationale for such an eagerness for fresh bank licences and the entry of business houses into financial intermediation --- at a juncture when all around the world banks appear troubled, when Indian corporate houses, the drivers of Indian growth are not doing well, for reasons other than the shortage of capital --- may appear intriguing. But this is India, where rationality and sense need not necessarily move hand in hand; un-torched by the financial crash of 2008 and its aftermath the Indian policymakers and middle class can afford to be sanguine about principles that were found to be severely wanting elsewhere.......
Stop Being Cry Babies Bankers. Prudential Norms are Good For You
......."Different measures of macro-prudential regulation exert differential impact on banks across ownership," says Saibal Ghosh of RBI's department of economic and policy research in a research paper. It is important for "policymakers to take a holistic view of all prudential measures and their potential impact on the banking system in order to avoid possible pitfalls"...........
RBI backs out from move to analyse temple gold stocks
The Reserve Bank of India (RBI) is learnt to have taken a U-turn on the controversial data collection on gold stocks in temples. The apex bank has informed the Travancore Devaswom Board which manages 1,200-odd temples, including the Sabarimala hill shrine, that its letter seeking details may be ignored.......
RBI begins move to core CPI
......RBI has done well in recent years to steer clear of the discredited global consensus that central banks should focus on just inflation control through the manipulation of short-term interest rates. Indian monetary policy has been more eclectic for good reason, focusing on other issues such as growth, financial stability and the exchange rate as well. But there have been times when this eclecticism has been overdone. Some of the more bitter critics of the Indian central bank also claim that it has essentially kept shifting the goal posts so as to evade responsibility for the failure to control inflation..............
Is CPI a better inflation indicator than WPI?
....Retail inflation is a superior indicator of the underlying demand situation in the economy, which determines the extent to which retailers can pass on a sustained rise in wholesale prices. While, in a strong demand environment, retailers can pass on the entire increase in wholesale prices or even more to their end-consumers, if demand remains weak, retailers could witness pressure on margins. While there is little doubt that RBI will soon begin to consider CPI as a primary measure of inflation, it might have to make some adjustments to the overall CPI. The monetary policy has limited efficacy to deal with the direct impact of food and fuel inflation. Currently, .........
Economy improving, RBI will take call on rate: finance ministry
......."The Q2 GDP growth should be better than first quarter... The Finance Minister has said we need to incentivise growth. "That continues to be the stand of the government. As far as the interest rate is concerned, it is completely the domain of RBI and Governor will take a call on that," Mayaram said. RBI is scheduled to announce its second quarter policy review on October 29.........
Golden touch: why the current account deficit is set to shrink
..........Over the past three months the government and the Reserve Bank of India (RBI) have launched a string of steps to attract foreign capital to arrest a sliding rupee and contain the CAD that hit a record high of 4.8% of GDP last year. Last week, it relaxed norms for domestic companies to trade shares on foreign bourses aimed at attracting dollar inflows. This followed a slew of other measures including.............
Poor are more trustworthy and bankable: Chidambaram
.........."The poor of India are bankable, the poor of India can be trusted, the poor of India are good borrowers, the poor of India are honest borrowers and the poor of India are much better borrowers than the rich because of their repayment," ........
FM heat on unregulated financial sector
....“It is my intention that we adopt the basic spirit of the framework provided by FSLRC in building a strong institutional foundation for our financial sector,” ............
Safe savings scheme may get delayed
KOLKATA: Awaiting a nod from the Reserve Bank of India, Bengal's safe savings scheme, which is aimed at countering the Ponzi menace and likely to be operational from October 5 and currently awaits a nod from the Reserve Bank of India (RBI) , may get delayed by a month..........
Banks want RBI’s 0% ruling to include NBFCs, captives
.. "We are expecting NBFC guidelines from the RBI in a couple of weeks. Right now, RBI's directive intends in spirit, if not in letter, that all financiers - banks, NBFCs, captives - show the subsidy on interest and subvention separately so the customer knows what the break-up is." Till the RBI guidelines come along, however,there are several 0% schemes still running in the market including those by captive financing arms of luxury car companies ..........
CBI probe sought into Amanath bank affairs
.......To write off all debts and dues to the bank from those who have borrowed funds, and to save their skin, members of the management pressed Canara Bank and the Reserve Bank of India for a merger of the bank with Canara Bank. Canara Bank has shown interest in the merger, which, however, will jeopardise Amanath Bank, the petitioner said..............
India opens negotiations with Iran on payments for import of crude oil
..........A team from India, consisting of officials from the Finance Ministry, Ministry of External Affairs, Petroleum Ministry and Reserve Bank of India (RBI), are likely to visit Tehran very soon to engage with their counterparts and resolve the impasse...........
Nandan Nilekani is part of every committee and group that is making Aadhaar mandatory
........The Supreme Court has ruled that the unique identification (UID) number or Aadhaar is not mandatory to avail essential services from the government. What is strange is all those ministries and departments that are making Aadhaar ‘mandatory’ are doing so on recommendations from a committee or group associated with Nandan Nilekani, the chief of Unique Identification Authority of India (UIDAI). This is pure conflict of interests..........
Muslims not getting loans commensurate with population
............Part of the problem, says Minority Affairs Minister K. Rehman Khan, is lack of awareness within the Muslim community of the programmes designed by the government for its uplift. This is compounded by the absence of NGOs in the community. Ever since the 15-point programme was unveiled in 2006, the RBI has been issuing periodic guidelines to all banks, flagging the need to ensure that 15 per cent of all priority sector lending goes to minorities. The irony is that the target was essentially the Muslim community, as the Sachar Committee Report on the Social, Economic and Educational Status of Muslims in India found Muslims had trouble opening bank accounts and accessing credit. There has been an improvement in the situation, but the problem persists.
Mumbai slips to 72nd rank in global financial centre list
Reflecting the worsening business conditions in India, Mumbai has slipped six places to 72nd rank, the bottom 10, on the Global Financial Centre Index ( GFCI), while London has retained its top slot. Mumbai is the only Indian city to find a place on this bi- annual list of 80 financial centres globally and was ranked 66th in its previous edition published in March this year..........
TRAI cracks the whip on banks against pesky calls, SMS
......"Keeping the larger public interest in view and to prevent public inconvenience, the Authority has decided to exercise temporary regulatory forbearance and has directed the banks to look into the specific cases of breach, initiate corrective action and report back to the Authority within a period of seven days, failing which the banks are liable to have all their telecom resources disconnected throughout the country."........
Life insurance policies: Turning a new leaf
.....Insurers will have to withdraw all existing products and come out with new ones. However, they will continue to renew old policies where the contract had already been made with the policyholders. At the time of renewal of group policy, the insurer will have to give the policyholder an option to switch to the modified version. And where the policyholder does not switch to the modified version, the insurer will have to take a specific written consent that he/she will continue with the old policy...........
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