........If this is the case, then, between the mid-quarter review of September 20, in which the RBI announced a tightening of the monetary policy stance, and last week, its position appears to have changed. If not, it needs to provide some explanation for how stimulating demand for even some products is consistent with its anti-inflationary stance. Or, is this just another instance of monetary policy being hijacked by a finance ministry seeking to smooth over ruffled feathers in the business community?......
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.
Tuesday, October 8, 2013
* The Governator *
Reserve Bank of India Governor Raghuram Rajan may not have an official twitter account but someone has set up a parody account on the microblogging site under the handle The Governator that has a modest following of 3,000-odd and some mildly amusing tweets....................
A Separate Debt Management Office - Charan Singh
......A separate debt management office also ensures that there are alternative views of the economic situation of the markets and the economy, and not just that special view which has been formed by the central bank through its trading desk and market intelligence. The debt manager has to carefully understand the pulse of the market and the economy through constant interaction, as debt manager has to regularly operate in the financial markets. Through proper coordination between the central bank and debt manager, a better view of the financial markets and the economy can be formed...........
JJ Irani addresses students at JRE School of Management
........Speaking at the event, Mr. Deepak Singhal, Regional Director, RBI, said, “The banking sector needs fresh talent more than ever before today. The country has 25 private banks, 40 foreign banks and 26-27 public banks with around 11 lakh employees. From a once healthy contribution of 30 per cent to the GDP, the banking sector is now contributing a meager 2 per cent. We need young and passionate bankers to take this figure back to where it was or maybe higher.”..............Lady at State Bank helm
Another glass ceiling has been broken. This time it is at the State Bank of India, the 207-year-old institution that ranks as the country’s largest commercial bank. Arundhati Bhattacharya has been appointed as the first woman chairperson of the bank, which traces it origins to the Bank of Calcutta that the British set up in 1806. Bhattacharya (57) succeeds Pratip Chaudhuri, who retired on September 30. She will have a three-year tenure — the first time that any SBI chairperson is getting such a fixed term............
RBI GUV, DENA BANK CMD TAKE STOCK OF SHGS’ WORK
........On the occasion, the RBI Governor also distributed scholarships to two meritorious students under Dena Bank’s ‘Vidya Laxmi Shiksha Yojana’, a press release issued by the bank stated here on Monday.
Due slips: CEIB writes to Kolkata police, RBI
.........Meanwhile, a private bus operator had filed an application last week in the high court seeking to be added as a party in the case. In the application, Chanchal Sarkar, a private bus operator, claimed that they had informed the state government and the RBI before introducing the coupons, due slips and plastic coins.
14th Finance Commission team arrives
What does Raghuram Rajan think of Ben Bernanke’s quantitative easing programme?
.......“The dilemma for central bankers is particularly acute when the immediate prospect of a terrible economic crisis is necessary for politicians to obtain the room to do the unpleasant but right thing,” quips Dr Rajan. This is particularly relevant in the Indian context. He says, “For the receiving country, it is unclear whether monetary policy should tighten and attract more inflows, or be accommodative and fuel the credit boom. ..........
Sticking To His Knitting
......Fast forward two months and we are at the Raja Aederi-designed Mahindra Tower in Worli, Mumbai, for a meeting with Mahindra Finance managing director, Ramesh Iyer. The Federer episode is especially fresh in our minds because the country’s biggest non-banking finance company (NBFC) by market capitalisation was one of the forerunners to get a banking licence — the defending champion, you could say — but it didn’t proceed with the application. And in spite of what is happening around, Iyer seems as surprisingly light-hearted as Federer was after his unexpected exit..........
Sahoo Panel initiates dialogue on FCCB, depository receipts
MUMBAI, OCT. 7:
The M.S. Sahoo Committee, set up to review the Global Depository Receipts, Foreign Currency Convertible Bonds and overseas issuances by unlisted Indian companies met in Mumbai on Monday. The Committee consists of G. Padmanabhan, Executive Director, RBI; S, Ravindran, Executive Director, SEBI; Ajay Shah of NIPFP; P.R. Suresh, Consultant, PMEAC; Pratik Gupta, Deutsche Equities and Somasekhar Sundaresan, Partner, J. Sagar Associates...........
DCBs enrolling individuals
On the directive of the RBI and at the insistence of Nabard, the District Cooperative Banks (DCBs) in the state have started enrolling individuals as members. So far, DCBs had been admitting only affiliated societies like Primary Agriculture Credit Societies (PACS) as members. Nabard had earlier issued a circular asking the PACS to entrust their assets and liabilities with the DCBs and function as DCB agencies............
Sarcasm and humor not in good taste.........
My View on "THE SECRET DIARY OF RBI GOVERNOR":
Why the author wants to write some rubbish out of his imagination. He could have written some positive sides of the Governor and his responsibilities of improving the economy with all its present challenges. The present Governor is only in his fifties and has a strong academic background with international exposure and experience in understanding the nuances of finance and how it plays havoc in destabilizing even a strong economy like US. Dr Raghuram Rajan has got a unique opportunity to understand the role of dirty politics preventing implementation of good economics and play his game of balancing politics and economics for the welfare of the masses and economic growth with currency stability, price stability, political stability and social development. The author's sarcasm and humor should have been on the positives of being a Governor of a Prestigious institution having challenges of unpredictable nature from domestic and international arena. That would have been more appreciable.
- Dr.T.V.Gopalakrishnan
What, why and how of retail banking: Issues & challenges - Dr.K.C.Chakrabarty
 |
| Inaugural address by Dr. KC Chakrabarty, Deputy Governor, Reserve Bank of India at the Bank CEOs Roundtable organised by CAFRAL in Udaipur on October 2, 2013 |
......Before we broach the subject of retail banking, let me begin by elucidating what is banking. You must be wondering why I am getting down to the basics. Believe me this has a purpose. We all understand ‘traditional’ banking as the process of financial intermediation wherein the bank acts as an intermediary between the savers and the borrowers. It accepts deposits for the purpose of making loans to the borrowers as also facilitates payments as part of the country’s payment and settlement systems. The banking industry has, however, undergone a lot of transformation over the last three decades. The banks have become a virtual marketplace offering...........
Cash holding confusion - A.Seshan
......One does not understand the rationale for keeping the cash holdings camouflaged in the balance sheet, making it difficult for analysts and every stakeholder in the market to understand trends in the economy. This runs counter to what the governor said in his first statement that he would follow the tradition of transparency and predictability.
Collective wisdom will prevail...........
My View on "Star trio on panel for new banks":
About the appointment of Dr Rajan as Governor, I had observed in The Global ANALYST that “This time, the process has been more transparent and all have accepted that among the candidates considered, the most meritorious has been selected.” Appointments to this panel should be a confidence booster to those who have been beleiving in RBI’s work ethics and ability to rise to the occasion. Whatever be the recommendations of this panel on the new bank license applications it will be vetting, nation will benefit from their collective wisdom and views on the future structure of financial institutions including banks in India.
- M.G.Warrier
My View on "7 new bank licences coming, says FM" - M.G.Warrier
.....Much earlier, by declaring the take off of All Women’s Bank in public sector, FM has already shown how deadlines can be fixed and institutional structure can be defined, if there is a will. Now, it is for the Jalan Committee to express their views on the future institutional framework in the banking sector, based on the Committee’s perceptions on the material on 26 applicants furnished to it and for RBI to select the 7 from those eligible candidates which conform to the FM’s prescriptions. Even if RBI is willing to go half way together, the clear indication from the FM is that the walk is going to be on parallel paths............
Does the RBI know how much conflicts of interest it has created?
..............Two questions sprang to my mind. Why has there been a rush by the RBI to form a committee to grant banking licenses when the Parliamentary Standing Committee on Finance (PSCF) is looking at the same subject? Why not wait for the report to be submitted to the Speaker and then have the Parliament debate the same, before deciding on the new bank licenses? ............
RBI considering making bank licensing process more frequent
.......“We propose to carry forward these ideas and come up with a detailed road map of necessary reform and regulations for free entry and making the licensing process more frequent after we get comments from the stakeholders,” RBI Deputy Governor K. C. Chakrabarty said here..............
Policy Watch: Post offices can fit into inclusive banking template, and here's how
....It would expose post offices to the discipline demanded by banks, and allow them to scale up towards financial discipline far more rigorously than is currently the case. And it would allow the Indian banking sector to increase its presence in rural India at lower costs..............
'RBI must give bank licences to corporates with proven record'
The Reserve Bank must issue new bank licenses to corporate houses with proven track records in order to achieve financial inclusion as public sector banks alone will not be able to spread banking services to the entire country, PHD Chamber of Commmerce said today. "Private banks' entry has only made banking sector more competitive ever since their operations came into being," PHD Chamber President Suman Jyoti Khaitan said.......
Now, Aadhaar-linked accounts to be basis for mobile payments
The Supreme Court’s recent observation might have left the future of the Aadhaar-linked Direct Benefits Transfer (DBT) project hanging in the balance. But that does not seem to dim the government’s focus on the platform. It is now set to enable an ecosystem where mobile-to-mobile payments could be singularly effected through the Unique Identity (UID) number........
FM promises cheaper consumer loans but where’s the money to fund banks?
..........Now only if economics worked in such a linear sequence, even I could be the RBI governor. The first question is where is the government going to get this ‘extra’ money from? As Deputy Governor of the Reserve Bank of India KC Chakrabarty put it on Saturday “How much (will the government put in)? If the government has so much money, then no problem.”........
Moneylife IMPACT: I-T dept asks officials to use official email IDs
.....The Income-Tax (I-T) department has directed all of its officials to use official email IDs for all official communication. Moneylife had raised the issue of I-T officials sending mails to taxpayers using IDs from free email service providers like Gmail and Yahoo!.
Gold loan companies protest to RBI
......“RBI’s latest move partially contrasts with the Rao committee’s recommendations. While the committee suggested growth measures for gold loan NBFCs, RBI has for the last 18 months taken several hard measures to cap their growth. In addition to lower LTV (loan to value), stringent norms of KYC (know your customer) and on cheque payment over Rs 100,000 restrict the growth of gold loan companies,” ..........
Foreign students don’t need address proof for bank accounts
......RBI has advised banks to provide convenience to foreign students while opening bank accounts. Hence, RBI has allowed banks that are authorized to open or maintain non-resident external (NRE) accounts or non-resident ordinary (NRO) accounts to open an NRO bank account for a foreign student on the basis of her passport. The passport should have appropriate visa and immigration endorsement. The passport will be used as the proof of identity and address of her home country. Along with this, the foreign student should also submit a photograph and an offer letter of admission from the educational institute she studies at.........
To boost liquidity, RBI cuts MSF rate by 50 bps
In yet another move to ease liquidity for banks, the Reserve Bank of India on Monday eased interest rate on borrowings under the marginal standing facility (MSF) by 50 basis points (bps) to 9 per cent.........
Interest rates are going to stay high for many more quarters to come
......To stem that ebb and ensure that the Indian debt paper remained attractive for FIIs, the Reserve Bank of India (RBI) raised short-term interest rates, drawing sharp criticism from industry. Somehow, an impression gained currency that the then RBI governor D Subbarao, a vocal critic of lower interest rates in times of mounting inflation, used the opportunity to pull up rates still higher on the pretext of stopping dollars from moving out in huge quantities. Yet, the fact is that the RBI then had few other options other than raising the rates to stabilise the rupee. It was difficult to tell whether ...........
RBI to relax norms for forex futures after rupee stabilises
Reserve Bank today said it will look at easing restrictions on the forex futures market once stability improves in the foreign exchange market. "Once the stability improves in forex market, we will look at the whole gamut of futures market," RBI Deputy Governor H R Khan said on the sidelines of an event here........
Know how to tackle changes in your bank FD & loan rates
In the aftermath of the credit policy announced by the new Reserve Bank of India (RBI) governor, few areas have started witnessing changes. Bank deposit rates have started getting impacted as the lenders have started revising the offered rates for various time maturities. Even the loan rates have started to rise. In this situation, individuals will have to take some steps to get their finances in order. Here is a look at the situation and how this can be achieved.............
J&K Bank looks beyond India for wider play, to apply for licence
Jammu & Kashmir Bank is seeking overseas expansion and will soon apply to the Reserve Bank of India (RBI) to secure a licence for the same..........
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