......"We Indians treat our economy very much the way we treat our cricket," Rajan said at a think tank event on Thursday, his first after taking over as RBI Governor. When the cricket team is doing well, the players can do no wrong. They are elevated to the level of God -- "disregarding the weaknesses that actually exist". When they do badly people throw rocks at their doors and castigate them for the same weaknesses, which were overlooked earlier, and which now look serious........
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.
Saturday, October 12, 2013
India won’t seek IMF funds in 5 years: Rajan
.."There's no way we are close to being a country in financial or economic crisis... There is not a chance we will go to the IMF for money in the next five years," he said at CNN's Debate on the Global Economy. The RBI has taken a series of measures to strengthen rupee and promote growth.........
RBI to launch new RTGS system on Oct 19
.......The RTGS system would process transactions such as inter-institutional/inter-bank transactions — the transfer of funds between two members/participants —RBI said in a statement. It would also deal with customer transactions — funds transfer/receipt on behalf of the customer of an RTGS participant member...........
Balancing act
.....Mr. Rajan needs more than a spanner to fix the problems being faced by the economy and in his first monetary policy announcement, after succeeding Mr. Subbarao, he has been tactical in his approach to address the situation with a long-term view rather than from a short-term perspective........
Why should RBI immediately disband newly appointed Committee on Financial Inclusion?
.......Let us look this with regard to the financial sector in the United States, which provides very useful learning with regard to conflicts of interest and their relationship to crisis situations. They hold very important lessons for the RBI which seems to be embarking on a very dangerous journey in its effort to turbo charge financial inclusion as well as give out banking licenses in a tearing hurry!..........
Remedies may be costlier
My View on "THE CURIOUS CASE OF RAGHURAM RAJAN":
Monetary easing and encouraging consumption to pep up the credit markets do not seem to gel well with the current risk environment. Further, aping the west in a conservative and cautious financial market is likely to put the risk appetite in wrong direction. The realization may come late and remedies may be costlier. The author is right in raising doubts about Dr Rajan's approach at the current juncture.
- Yerram Raju
Expression of views.........
My View on "Priority for non bank finance companies in bank li...":
While Dr Chakravarty’s freedom to express views need be defended, RBI Deputy Governor’s endorsement of NBFCs for banking licences quoting Kotak Bank’s success is likely to be interpreted in different ways. He could have followed Governor Dr Raghuram Rajan who said the number of new bank licences could be zero to 26. May be Dr Chakravarty remembers the subsequently corrected version of FM’s remark about seven new banks doing seven ‘different’ things.
- M.G.Warrier
Don’t worry about CAD
........While some of these measures could eventually get reversed once normalcy returns, it is important to impart structural stability to CAD with respect to gold imports. In this context, the policymakers can explore the possibility of setting up an apex body — The Gold Bank — which can procure and retain gold abroad through offshore foreign currency borrowing. Using this gold-backed backing, the scheduled commercial banks can offer a Gold Deposit Account to retail customers, which can represent notional units of gold and provide gold price return in weight terms. This will not only promote financialisation of incremental demand for gold, but also incentivise the deferment of the need for importing physical gold.........
Don’t give credit to govt, RBI for lowering CAD
......The government and the RBI know this but their concern on the weak INR overrode practical economics. The question is when will the restrictions on gold and silver imports be taken off? What will happen when the CAD shoots up on pent up demand for the commodities? Well, tomorrow is another day and we’ll take it as it comes, is the policy of the government and RBI. Hopefully, tomorrow will not come at the wrong time...........
Bankers, legislators abstain from DLRC meeting
The administration has decided to write to the Reserve Bank of India (RBI) about the absence of representatives of some banks from meetings being held in the district. Not only private sector banks but also public sector banks are reportedly taking these meetings for granted. Even legislators have not been attending the meeting............
‘Inconsistent’ monetary steps by RBI leaves Tirupur knitwear industrialists puzzled
..........“Really, we did not know what the apex bank is doing with this type of disordered decisions. It has been only a couple of days prior to this reduction, the same RBI raised the Repo rate by 25 basis points with the ‘opposite justification’ that the inflation is on a high and there is a need to suck out excess liquidity from the system. “While hiking the repo rate during September last week also the MSF has been brought down from 10.25 per cent to 9.5 per cent, which is paradoxical by its nature,” G. R. Senthilvel, secretary of Tirupur Exporters and Manufacturers Association, said.......
ICICI Bank organizes Coin Exchange Mela at Chandigarh
Chandigarh: ICICI Bank, India’s largest private sector bank, organised a Coin Exchange Mela on October 10, 2013 at its Sector 19C branch in Chandigarh, under the guidance of the Reserve Bank of India. ......
Indian Bank open new branches
.....Out of the 180 banking branches in Krishangiri district, 33 are from Indian Bank. The bank is leading in SHG lending and educational loans. Indian Bank’s share in SHG lending is 45 per cent and that of educational loan is 38 per cent. The new branches are being opened as part of the financial inclusion policy of the Reserve Bank of India.......
Why you should always check your bank balance statement
........So ensure you read your bank’s monthly account statement carefully and watch out for any discrepancies. If you don’t track your account regularly, there is a good possibility that any deductions or penalties could easily go unnoticed.......
Cyclone scare: Odisha seeks RBI help to ensure relief payments by banks
In view of the severe cyclonic storm 'Phailin' that is set to hit the coast of south Odisha by Saturday evening, the state government has sought the intervention of the Reserve Bank of India (RBI) to facilitate government payments towards relief expenditure. The state government has sounded a high alert in 21 districts that have been identified to be vulnerable to the impending storm........
SBT to expand footprint outside Kerala
.........By expanding in this region, “we will also meet the 18 per cent net banking credit extension to the agriculture sector laid down by the RBI,” said Sajeev Krishnan, managing director, SBT. The bank on Friday opened its regional office and retail assets central processing cell here. The facility will have 14 employees, to be headed by the respective AGMs. It will come under the Chennai zonal office. ........
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