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 19, 2013
Signals from RBI are now inflation-oriented: Subir Gokarn
Inclusion — don’t count on banks
..............None of the earlier committees came out with anything of a path-breaking nature. In other words, they did not upset the status quo — they assumed that building on the existing structure of financial intermediaries and exhorting them to work towards financial inclusion would do the trick. It has been a bank-led and dominated approach so far for attaining financial inclusion. While non-bank financial intermediaries have been grudgingly accepted to some extent on the credit creation side, the reliance is almost completely on the banking sector for mobilising the financial savings of the population..........
Financial inclusion can be better achieved through self-help groups: Nabard
............The FI drive, whereby financial services are sought to be extended to the hitherto large un-served population of the country, envisaged by the Government and the Reserve Bank of India entails banks engaging the services of BCs and BFs. According to a Nabard (National Bank for Agriculture and Rural Development) report, though the SHG-BLP (self-help group-bank linkage programme) is a step towards bringing the ‘unbanked’ poor into the mainstream banking channel, its formal acceptance as a financial inclusion channel by the central bank is still awaited...............
Author's approach on accountability deserves appreciation - Dr.T.V.Gopalakrishnan
My View on "Should the RBI be made more accountable?":
The article is very well written and has convincingly argued to fix accountability of RBI to the people of India for their fortunes and now the misfortunes. The RBI's core functions and additional functions are by and large carried out to the best of its professionalism and are presented before the Parliament and the Parliament Standing Committee on Finance. No doubt, RBI's functions often give rise to conflict of interest and this results perhaps in the necessity for fixing accountability for RBI.The reasons are not far to seek in making RBI working perhaps not in the interests of bringing in economic inequity. The RBI does not enjoy the autonomy as it deserves as a full fledged Central Bank. All its Directors are appointed by the Central government and they are not expected to dissent from the thinking of the Ministry of Finance or the Government. Unlike many Central Banks of the world, RBI has been entrusted with the responsibility of rural development by statute and other developmental functions apart from core Central Banking functions. Though NABARD has been set up exclusively for Agriculture and Rural Development, RBI has not been relieved of the development of agriculture and rural development. The Financial Inclusion cannot be the exclusive responsibility of RBI where the involvement of State, central and other agencies have an active role and responsibility taking into account the envisaged social and financial role of various financial institutions functioning both in rural and other areas. No doubt RBI has to be made accountable for its functions, but given the present circumstances,there are many aspects to be looked into taking into account the relationship between the RBI and the Government, the socio- economic conditions of the country and the general governance standards and accountability. The author's approach, however,deserves appreciation and a lot has to be done before the objective is set.
- Dr.T.V.Gopalakrishnan
Rajan’s baby: India may launch interest rate futures in 2 months
.......Although the plans are at an advanced stage, the sources said the Reserve Bank of India (RBI) has not yet finalised the structure of the interest rate futures product, which will allow investors to bet on the direction of rates. They declined to be identified publicly commenting on the closely-held discussions. “This product is Rajan’s baby so everyone is on their toes to make it a success. It will be launched in a month or two months at the most,” said one senior market participant who has been in discussions with the RBI, referring to new RBI Governor Raghuram Rajan...........
Bankers to deliberate stamp duty reduction for agri-loans
.........At a meeting of the Sub-Group on priority sector advances and Self Help Groups held on Thursday under the chairmanship of C.H. Gaushal, Assistant General Manager of State Bank of India (Lead Bank) and attended by P.P. Vetkar, AGM, Reserve Bank of India (RBI), the bankers have decided to take up with the State government a demand to bring down the stamp duty applicable to priority sector and agricultural loans up to Rs.2 lakh.........
ICICI Bank launches new branch
Sathyan David, Regional Director
(Rajasthan) of the Reserve Bank of India, inaugurated the branch while J.K.
Bagri, General Manager, Reserve Bank of India and Mohit Sahney, Zonal Head
(Rural & Inclusive Banking Group, Rajasthan), ICICI Bank were also present
on the occasion. The branch will remain open for customer transactions from
9:00 am to 6:00 pm on Monday to Friday and 9.00 am to 2.00 pm on Saturday......
A great company to miss...........
My View on "Touching tribute by Shri Donde":
Words fail me in describing the amount of grief I had on learning about the sad and untimely demise of our friend Shri Ramphal Sharma from Delhi. A noble soul indeed. As described by Shri Donde, Ramphal was a great company and we all will miss Shri Ramphal for times to come. May his soul RIP
- M.L.Mahajan
What’s RBI doing?
This refers to ‘Agent of change ridicule RBI, sell coins for 20 per cent cut’ (AM, Oct 16). This daring report with revealing pictures certify its authenticity and should force the authorities concerned to open their eyes and take action........
Have you ever seen a R 1000 coin?
Jaipur: Ask anyone if he or she has seen a Rs.1000 coin, and the answer will be invariably ‘No.’ Unknown of the fact that the Reserve Bank of India (RBI) had issued Rs. 1000 coins in January, it is surprising for the common man that such coins do exist...........
SBI makes U-turn, goes soft on trade unions
.......SBI’s management tendered an unconditional apology in Madras high court on 10 October for its action through an affidavit in a contempt of court case filed by trade unions after SBI discontinued the check-off facility on 25 September, days before former chairman Pratip Chaudhuri left office. SBI did so despite a stay from the court............
SBI's First Woman Boss will Attack Bad Loans
..............A thoroughbred State Banker, Bhattacharya has already made her intentions clear, saying that one of her major tasks would be to keep a close watch on non-performing assets (NPAs) at the bank...........
Should the Economics Nobel be done away with?: No | Charan Singh
..........The Nobel Prize has accorded economics a type of recognition, standardisation and professionalisation that helps the subject to attract the best talent in the world. And many a budding economists in graduate courses dream to excel in their profession to win a Nobel and immortalise their research. The purpose of any prize is to recognise a body of work, incentivise the recipient and encourage others to attain excellence in their areas of research......
Process of selecting new banking licenses should remain credible, says EAS Sarma
...........Considering the importance of the financial sector, in general, and the crucial role of the RBI (Reserve Bank of India) in particular, Mr EAS Sarma, former union government secretary believes that MoF (Ministry of Finance) and RBI should jointly address the issues raised by Mr Ramesh Arunachalam in his article in Moneylife to ensure that the process of selection of applicants for new banking licenses remains credible in public perception........
Birla: Not worried about FIR; no impact on bank licence
.......Birla also expressed hope that the investigations will not cast a shadow on the group's application for a bank permit. "I don't think CBI FIR will impact the banking licence," he said. Aditya Birla Nuvo Ltd is one of 25-odd applicants shortlisted by the RBI for a banking licence.
The permit will also depend on candidates fulfilling the RBI's "fit and proper" criteria that also include feedback from enforcement agencies like the CBI and Enforcement Directorate.
Cloud over banking licence to Birla
....According to the "Fit and Proper" criteria set by the Reserve Bank of India for new bank licences, the central bank will assess the eligibility of promoters and promoter groups on several aspects. One of the criteria is that promoters/promoter groups should have a record of sound credentials and the RBI may seek feedback on applicant croups on these or any other relevant aspects from other regulators and enforcement and investigative agencies like Income Tax, CBI and the Enforcement Directorate......
'CAG/RBI should audit educational loans interest subsidy'
The Comptroller and Auditor General (CAG) or the Reserve Bank of India (RBI) should audit the manner in which the banks operate the interest subsidy scheme for their education loans, says K.Srinivasan, convenor of Education Loan Task Force (ELTF). "Based on the complaints received by ELTF, many students have not been getting interest subsidy from many banks. There are bank managers who even fob off the borrowers denying any such interest subsidy scheme," ........
Should RBI prevent further rupee appreciation?
.......The RBI has to bring the marginal standing facility (MSF) rate down to 100 bps over repo. It needs to dismantle the limits placed on repo borrowing, so that the call rate is aligned with the repo rate. Then it has to slowly bring in the oil demand into the market. Only then can we consider whether the rupee has stabilized. Even then, it won’t be easy for RBI to start buying dollars to prevent rupee appreciation all that easily. Any such purchase can lead to an over reaction in the market leading to a sharp rupee fall and a vicious chain reaction.....
Sustainable gold solutions
.........Any long-term solution would lie in loosening up imports while simultaneously ensuring this gold doesn’t entirely end up as idle hoards with households. The estimated 20,000 tonnes of gold lying in Indian homes is a source worth tapping through more attractive interest-paying schemes. If such internally mobilised gold emerges as an alternative to........
A sadhu's dream of buried gold now reaches the Supreme Court
.......The Supreme Court has agreed to hear a petition that asks judges to monitor the exercise. The Public Interest Litigation (PIL) suggests that if the gold is found, it may go missing, and the court should therefore supervise the process............
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