...........While
it’s the prerogative of the government to make appointments , the
practice in general is that the finance ministry takes the views of the
RBI Governor into consideration to ensure smooth functioning. Besides,
in the spirit of the newfound detente between the finance ministry and
RBI, Rajan’s word on any nominee will carry extra weight with finance
minister P Chidambaram. Ties between the two sides had become frosty during the latter part of former governor D Subbarao’s term...........
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, October 3, 2013
Appointments and disappointments: Towards accountable selection for top public positions
...........Now that the immediate news value of Rajan’s appointment and Rao’s rather peevish exit are behind us, it is time to deconstruct the events and examine if there are any policy lessons for the appointment making process. In making top appointments, we examine the recent quarrel, the past record, and future prospects for establishing a clearer process, especially for posts expected to impact public good. Specifically, the three questions explored here are:...........
Read........
RBI governor to give tips on Indian economy at IIM-Raipur
RAIPUR: Reserve Bank of India Governor Dr Raghuram Govinda Rajan, will address students of Indian Institute of Management, Raipur, (IIM-Raipur) on October 4, on the institute premises. He will talk about 'Indian Economy: The Road Ahead'........
Transformation of DFIs into commercial banks – the case of the IDBI and the role of employee unions
Special address by Dr K C Chakrabarty, Deputy Governor of the Reserve Bank of India, at a Seminar on "IDBI's role as Development Financial Institution" organised by the United Forum of IDBI Officers & Employees, Kolkata, 27 September 2013
........ Let me now return to the problems faced by the DFIs in India. The DFI concept in the Indian context suffered from some inherent structural infirmities. As the DFIs were set up as public sector enterprises, the market perceived the borrowings made by them as having implicit government guarantee. This induced a sense of profligacy in the behaviour of the DFIs while borrowing. Further, in the absence of a competitive environment for project lending, the entities became quite complacent and disregarded the viability of the projects financed, while pricing. The crossholding of shares amongst the DFIs also led to a contagion effect in creating NPAs...............
Payment systems in India – reflecting on some recent trends and future challenges - H.R.Khan
Inaugural address by Mr H R Khan, Deputy Governor of the Reserve Bank of India, at the
International Seminar on “Adoption of ISO 20O22 in RTGS”, held at the College of
Agricultural Banking, Pune, 30 September 2013
..... Reserve Bank remains committed towards providing a safe, efficient, accessible, inclusive, interoperable and authorised payment and settlement systems for the country. Today, our payment systems are driven by demands of convenience and ease of use & access. This necessitates convergence of e-payment products by leveraging on innovation, capabilities and integration of various systems through unified solution architecture and technology. Payment System Vision Document 2012–15 of the Reserve Bank of India articulates the orientation of overall regulatory policy stance towards promoting a less cash/less paper society, the “green” initiative which is also echoed by the Reserve Bank’s IT Vision document 2011–17..........
VITALINFO - Keep the flag flying high! - S Ganesh Kumar, Chief General Manager, DGBA
My View on VITALINFO made it possible - Prakash Bakshi, Chairman, Nabard
Well earned and well deserved encomia and kudos !
Wish you and VITALINFO God speed !!
– V.K.Sharma, Former Executive Director
Congrats for getting
appreciation from Chairman NABARD. Wish you all the best to continue the
VITALINFO with same zeal.
- R R
Kulkarni, Ex-General Manager, NABARD
Very happy to read the appreciating
words to VITALINFO from Chairman NABARD. Congratulations and best wishes !
- Rajappan Nair, Kochi
Sabhi ne apki itani tariff
ki hai ki ab hamare pas shabda hi nahi bache. You are unanimously unique person
to be appreciated for this work.
We are fortunate and happy that we know you closely.
- S S Hendre,
Assistant Manager, Pune
This is great !!
- Gunjeet Kaur, Director, DEPR
Pl keep going!!!!
– Meena Hemchandra, Principal, CAB
Dear Mangesh,
Kudos from my side too on
the fine work being done by you. I am sure that you will continue to keep the
flag flying high! Best regards.
- S Ganesh Kumar,
Chief General Manager, DGBA
Very
interesting and condensed presentation Very useful for quick updation. Keep it
up.
- K.Ramasubramanian
Dear
Mangesh, you are doing wonderful service to your readers. We are all benefitted
by the knowledge shared by you. As
Chairman, NABARD has rightly appreciated, now a days, we rely more on your
articles for the latest happening in the economic world and more particularly
in RBI. You are doing wonderful service to your readers.
– B.Govindan
Taramble Sahab, Keep up the
good work.
– Yashpal, P
& SO
Thank you very much for including my name for VITALINFO
on Mr Tarapore’s reference. I am really enjoying reading it and it does keeps
us connected with RBI too.
- Sarojini Venkatachalam
Dear Mangesh Tarambale,
Kindly include our retired CGM, DCM,
Shri Muralidharan in your mailing list. With warm regards
- A. Sreekumaran
What
better way to start one's day,
VITALINFO
from dear Mangesh,
comes
our way like a
delectable platter of sandesh!
- Frank R.Misquith
7th Pay Commission Constituted - What should UFBU Do Now?
.......Now question arises who is to be blamed for the delay in submission of Charter of Demands. Can we blame GoI or IBA for this lapse. Now GoI has announced constitution of 7th PC more than two years from the due date. This means during this time, the Commission will go through the full process of consultations, and all employees organizations will get sufficient time to put up their demands and revise them after internal and external discussions. Who stopped UFBU to start the process of completion of Charter of Demands at least one year from the due date?............
MASSIVE INCREASE OF 50 SLABS IN DA LIKELY
......There has been high increase in CPI in the month of July 2013 followed by increase in August 2013. The inflation trends of recent times indicate that in September 2013 too the inflation figures will be high. Assuming that there will be increase again of similar nature, the revised DA is likely to be around 96.45%, (increase of massive 50 slabs) for the months of November 2013 to January, 2014 (i.e. increase of 50 slabs). [The present DA is 88.95% for the months of August, September and October, 2013]. The PROJECTED DA is as follows:........
City cries: Change we need
......RBI’s annual report released a couple of weeks ago acknowledges the problem. “There has been a spate of complaints about non-availability or short supply of coins in recent times,” it said. The Government had also asked the RBI to take appropriate action with regard to adequate distribution of coins. Now it is also examining the recommendations of a high-level panel headed by deputy Governor KC Chakrabarty on the measures to be taken to increase the supply of coins. The matter is being discussed with the Security Printing and Minting Corporation of India Ltd...............
Finance Ministry should do it........
My View on "An appeal to the Hon'ble Members of the Central Bo...":
The relevant provisions for notification came into being much later than RBI (Staff) Regulations, 1948 and if the Regulations were to be notified it should have been done simultaneously with introduction of the provision in the statute (if this position is wrong, someone who has information may please enlighten). By discussing this issue at this stage, some officials who plead ignorance about past and depend on hearsay are diverting attention from more important issues. If at all the Regulations are to be notified, it is for Finance Ministry to do it in consultation with RBI and the notification should be of the Regulations as they stand today (i.e.without fresh amendments or additions to accommodate afterthoughts).
- M.G.Warrier
Here’s how banks can goof up with your education loan
....... “Depriving a customer of loan against bank’s own administrative instructions was deficiency in service and accordingly the bank was directed to disburse the loan immediately to the complainant without insisting on margin money. The bank was also directed to pay Rs 10,000 to compensate the complainant towards expenses incurred for arranging loan from the alternate source and also for pursuing the case with the bank and OBO,” the RBI document said.......
Challenge for corporates
The RBI’s stringent and binding guidelines for granting new licences will surely go a long way in addressing the apprehensions and reservations voiced by the lawmakers. It should serve as an eye opener to our MPs who are opposing the grant of new bank licences to industrial houses. The country certainly needs more banks and more players with substantial resources. Let us not forget that a good number of corporates in the country run their ventures with commendable business acumen and unimpeachable integrity. The entry of some of them into the banking sector will bring about a paradigm shift and usher in some welcome moves. The resultant competition will also invigorate the existing players to rise up to the challenge. All in all, bank customers stand to gain. Let them get their due.
- C. G. Kuriakose, Kothamangalam, Kerala HBL
Rural Banking
This refers to the editorial “Bank on facts” (Business Line, October 1). It is obvious that the present strength of banking financial institutions is insufficient to expand banking services to the masses. Also, it is learnt that the Government — with its limited resources — finds it hard to reach out and cater to the masses; that aptly gives room for the private firms to fill the vacuum. There is no harm in industrial houses applying for bank licences and the same being granting to them, provided there are a host of stringent conditions to be followed by the licence-holders. In the absence of organised financial institutions in rural areas to cater to the financial needs of the people, they (people) are forced to rely on the local unorganised entities/ individuals/landlords; they usually ask for properties in lieu of the money they lend and charge a higher rate of interest. This is because of the low penetration of the banking institutions in rural areas. The standard of living can be improved by letting the private firms start the banking operations in rural areas. To address these concerns, the RBI should perform the role of a ‘watchdog’ .
- S. Lakshminarayanan, Cuddalore HBL
4 PSU bank GMs elevated as Executive Directors
The Centre has elevated four General Managers in various public sector banks to the post of executive directors.............
आईएएस स्नेहलता श्रीवास्तव को नाबार्ड सीएमडी का अतिरिक्त चार्ज
मध्य प्रदेश काडर की वरिष्ठ आईएएस अधिकारी स्नेहलता श्रीवास्तव को सरकार ने एक आदेश जारी कर राष्ट्रीय कृषि और ग्रामीण विकास बैंक (नाबार्ड) के सीएमडी पद का अतिरिक्त कार्यभार सौंप दिया है। इस पद पर अब तक प्रकाश बक्शी सेवाएं दे रहे थे, जो सोमवार को सेवानिवृत्त हो गए हैं।..........
NABARD now offers loans to corporate sector
..... G.R. Chintala, Chief General Manager (CGM), Regional Office, Bangalore, said it was for the first time that NABARD would be financing storage infrastructure projects of private companies and private entrepreneurs. The lending rate of interest is 9 to 10 per cent to private firms and 8 per cent to State-owned boards and corporations with government guarantee.........
Now, whistle blowing mechanism for public deposit taking companies
.....However, individuals coming up with frivolous complaints through this mechanism would be liable to face action, including reprimand. The whistle blowing mechanism, popular in many developed nations, would provide an opportunity for employees to report any misdoings within their company........
Forward-looking plans
.........The competition to be backward should end. Instead, the competition to be forward has to take over. Fund allocation could be based on projects and their implementation. Though the panel report came when Raghuram Rajan was an economic advisor to Government, will he reconsider and revise it as Reserve Bank Of India Governor?
Raghuram Rajan panel report 'thinly disguised attempt' to help potential ally, Jayalalithaa tells PM
CHENNAI: Rejecting the Raghuram Rajan Committee report for "skewed" allocation formula, Tamil Nadu chief minister JJayalalithaa has said it was a "thinly disguised attempt to provide an intellectual justification to deliver resources to a potential political ally." .........
RBI needs $50-100 bn for bullet-proof balance sheet: BofA-ML
....It added the recent measures like the concessional swap facility for fresh NRI dollar deposits will not be enough to recoup the reserves, which have gone down to $277 billion from a peak of over $324 billion. However, contrary to fears of a depreciation in the local currency if the RBI starts buying, the report said RBI’s entry into the market will boost the confidence of investors and actually lead to an appreciation of the rupee..............
From ‘taper’ to ‘shutdown’
.......The lesson is simple: we must keep our own house in order. The global economic environment will continue to be uncertain, irrespective of whether or not there is a Fed tapering or a federal default. The countries most vulnerable to capital outflows in such situations are the ones with macroeconomic imbalances on their external and fiscal fronts. While the Government and the Reserve Bank of India have taken some steps in bringing down the current account deficit to more manageable levels, these clearly aren’t enough........
Dipping value of bonds may hurt private banks
MUMBAI: Private banks, which have weathered the economic slowdown in the past few quarters, may also face earnings pressure in the September quarter as a slump in bond prices dents profits. The surge in yields during the quarter after the Reserve Bank of India raised shortterm interest rates to defend the currency, may hit some lenders such as.........
Vat's up
The going has not been good for property developers across the country for some time now. While the continued economic gloom and the high interest rate regime has been impacting their cash flows, restrictions brought in by the Reserve Bank of India (RBI), from time to time, are also crippling their borrowing ability. They have been hit both ways — neither can they sell their existing built-up stocks, nor can they launch new projects to kindle interest in the market................
Aadhaar: The number that makes a nation ‘Niradhaar’
Is UIDAI’s Aadhaar, the same thing that it claims to be? Here is a simple analysis of the UID project from Dr Anupam Saraph, who designed and implemented identity schemes for government and private organisations......
'Hiring in banking sector likely to go up by 30% this year'
......The Reserve Bank of India has announced giving licences to new banks to operate by the end of FY 2013-14, PSU Banks adding more than 8,000 branches in current fiscal and private sector banks, rural banks and foreign banks expanding their own branch network are factors that will huge job opportunity in the sector, he said. To cope up with this kind of hiring and to include every geographies of the country in the process, the number of examination centres this year will increase to 210 from 45 last year, he said...........
UB-Diageo deal helped J&K Bank recover 90% of Kingfisher loan
Big banks such as State Bank of India are still struggling to recover their loan from the grounded Kingfisher Airlines, but one small bank has made a smart move and got back most of its loan. The J&K Bank took advantage of the United Breweries-Diageo deal and has managed to recover Rs 90 crore out of the Rs 100-crore loan exposure to the airline........
Sharia-compliant Kerala firm may be violating rules
The Kerala government-promoted NBFI Cheraman Financial Services (CFSL) appears to be functioning in violation of RBI directives, which prohibit it from claiming to be a Sharia-compliant fund. The website of the NBFI mentions that the company operates in a Sharia-compliant manner and intends to become a one-stop shop for all financial products based on the Sharia concept. The RBI has strictly prohibited use of terms like interest-free finance, participatory finance, profit-sharing and Islamic banking, either explicitly or implied.........
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