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 29, 2013
RBI and transparency in policies - Charan Singh
Superman or not, Raghuram Rajan has indeed made a difference
Read..........
Is it time for members of Dr Chakrabarty Financial Inclusion Committee to resign en masse?
........So, I feel that the time is now ripe for the Dr KC Chakrabarty headed financial inclusion committee (appointed in 11 October 2012) to resign en masse so that the Dr Nachiket Mor chaired concurrent financial inclusion committee (appointed on 23 September 2013) gets a free reign to pursue its mandate in a comprehensive manner. I am sure that the respected governor of the RBI, the deputy governors’ and independent board members of the RBI will agree on the need to save scare resources (at a time of economic crisis such as this) and not have two high powered committees on the financial inclusion working concurrently at the RBI!.......
PRATHYASA
Veterans like Shri P.P.R.Nayar, Shri Sitendra Kumar, Shri L.R.Parab,
Shri G. Mohandas (Chennai) have also written strongly on the issue of pension
updation.......
Read............ - A bulletin of Reserve Bank Retired Employees Association, Kochi
FinMin relaxes norms for top jobs in govt banks
...........The selection committee is headed by Reserve Bank of India (RBI) governor Raghuram Rajan and includes officials from finance ministry and academic world. According to banking industry sources, the new RBI governor is likely to break the tradition of sending his nominee (which is a deputy governor) and would be himself present during the interviews and conduct them. The interviews will be conducted at State Bank of India head office in Mumbai, and not in New Delhi as earlier practiced.........
All-women bank gets branch in iconic Mumbai tower
The iconic Air India building at Nariman Point overlooking the Arabian Sea would house India’s first state-owned women-only Bharatiya Mahila Bank. The ground floor of the sprawling building is already being renovated to house the bank’s Mumbai branch, which is all set to start operations next month. Women employees from other public sector banks have been invited to join the mahila bank on deputation or resign from their current positions to join the bank without interruption of service.........
Next, please?
........Rumours are also doing the rounds that financial services secretary Rajiv Takru might be moved into North Block as expenditure secretary and Das could go to the banking division in his place.
Finance Minister Sachin?
Tea Leaves
......Were RBI to read the tea leaves right, despite there being ‘upside risk’ to inflation rising, producers have virtually no pricing power—indeed, given the rupee stabilising, some part of the inflation potential has been taken care of. Indeed, with the median FY14 forecast of GDP growth being cut from 5.7% in the last survey to 4.8% now and from 6.5% to 5.8% for FY15, it is clear the economy needs a growth shot.........
Banks to recast crop loan in flood-hit areas
......Behera urged the commercial banks, regional rural banks and cooperative banks to restructure existing loans at affected areas as per Reserve Bank of India’s (RBI) guidelines. Banks should also stress on sanctioning fresh loans for the affected farmers to help resume normal business, he added. Besides, he advised the banks to focus on crop finance for the Rabi season and meet the annual credit target for the agriculture and allied sectors in 2013-14...........
Four PSU banks face scrutiny for fall in agriculture credit
Four public sector banks may come under the finance ministry's scrutiny for reporting a fall in credit to agriculture, designated as a priority sector for lending by the Reserve Bank of India. .......
RBI shields bank-defaulters
.............Making names public will save private parties from giving loans to defaulters thus also resulting in checking large number court-cases filed for loan-recoveries by individuals and private parties. Central Information Commission (CIC) in larger public-interest should decide petition against RBI in this regard on propriety basis.
Depositors’ body seeks inflation-linked saving scheme
.........“In substance, the depositors have experienced a negative rate of return (adjusted to the double digit annualised consumer price index-based inflation). This has not only eroded the value of depositors’ savings, but has also shaken their confidence in being able to earn a steady real interest income on their savings with banks.”.........
Walking a tightrope between depositors and deposits
Learning its lessons from the collapse of several collective investment schemes in recent times run by fly-by-night “companies,” the government has proposed stringent rules under the new Companies Act 2013 to protect depositors. Notified last week, these rules propose that companies (other than non-banking finance companies) should henceforth insure the deposits that they take from the public............
Political uncertainties impacting capital markets: RBI
Political developments on account of the forthcoming elections, in addition to other domestic and global factors, are impacting the capital markets, the Reserve Bank of India (RBI) said today..........
An overdue warning
The Reserve Bank of India has done well to communicate a stern message. It has said in its new report on the economy that India could face what it calls “a lasting growth collapse” unless macroeconomic stability is secured...........
Liquidity key to restoring relevance of repo rate
....And, he showed intent — the central bank reduced the marginal standing facility (MSF) rate further in October (after cutting it in the September review) and opened another liquidity window. Now, it is widely expected RBI would restore the 100-basis-point corridor between the repo and the MSF rates in Tuesday’s second quarter review of monetary policy...........
RBI policy review: Inflation focus may herald rate hike
.....According to the RBI report, such high inflation “eroded real consumption, lowered savings, caused financial disintermediation, widened the current account gap and placed additional pressures for subsidized safety nets for the vulnerable population”. “Against this backdrop, monetary policy will have to tread a carefully charted course to support reasonable real interest rates and avert financial repression,” the RBI report said.....
RBI's long history as an inflation fighter: Raghuram Rajan likely to uphold tradition
........On the issue of coordination between fiscal and monetary policy, Rajan was a bit more circumspect. But he has an excellent precedent to help him along. It’s there in the RBI Annual Report, 1984-85 , under the signature of Manmohan Singh, “While careful supply management could help, aggregate demand is a critical factor in the short-run management of prices . In view of the direct bearing that fiscal deficit has on reserve money and on money supply, coordination between fiscal and monetary policies is imperative if money supply is to be kept within limits and price stability is ensured with a view to facilitating growth with equity.” ........
Read - ET
The potential for a surprise from RBI is high due to multiple policy levers: Nomura
...... If the RBI decides to make repo rate the operative rate immediately, then Nomura believes it would be accompanied by a 50bp repo rate hike. RBI has its monetry policy review meeting tomorrow (29 October 2013). Nomura expects the RBI to downgrade its FY14 (year ending March 2014) GDP growth forecast to 5% year-on-year from 5.5% and raise its WPI inflation forecast to 6.5% by March 2014 from 5%..........
Rates obsession
......One-third of all NPAs of PSBs were contributed bythe top 30 NPA accounts in each bank. Deregulation of savings bank interest rates did not add to the interest income of real SB account holders. The net interest margins enjoyed by banks in India are among the highest in the world............
RBI Governor Rajan to set the stage for normal monetary policy operations
Reserve Bank of India (RBI) Governor Raghuram Rajan is widely expected to make a return to normal monetary policy operations on Tuesday when he announces the second-quarter policy review. Rajan, in his second policy review since taking over as the RBI chief, is likely to make the repo rate the effective policy rate that decides lending rates in the economy. Here's how he will likely do it...........
Prices of food products to increase further: RBI’s inflation survey
his was revealed in a survey conducted by the Reserve Bank of India to gauge inflation expectations. The survey, among other things, is an important feedback that the RBI takes into account while framing its monetary policy. The RBI defines anchoring inflationary expectations as one of its key functions. Therefore, it can be interpreted that the expectations of people that prices will only go up might put the RBI ill at ease when it meets to decide the monetary policy today.......
Rajan prepares ground for rate hike on stubborn inflation
Reserve Bank of India governor Raghuram Rajan has prepared the ground for increasing the repo rate– the second successive rate hike in two months – as inflation continues to remain above the central bank’s comfort level. The central bank also sees modest improvement in growth in the second half of current financial year..........
Are consumption pattern change and vegetable inflation linked?
.....One theory that was put forward by senior officials at the Reserve Bank of India (RBI) was that the inflation problem has its roots in a sharp increase in demand for certain food items that people eat more frequently as incomes rise...........
‘NSEL crisis exposes regulatory gaps’
............The Union Government has taken several policy initiatives to plug regulatory deficiencies. It has transferred the administrative control of FMC to the Ministry of Finance and constituted two committees, one under RBI Deputy Governor K.C. Chakrabarty and the other under the Secretary, Department of Economic Affairs, Arvind Mayaram, to look into various aspects relating to this crisis. These committees have since submitted their reports to the Centre, the RBI said..........
Stringent gold import norms may be relaxed
.........“Some discussions are going on to relax the rule. The government is considering a proposal whether importers can be allowed to make the declaration less frequently, say on an annual basis,”.........
Your private data may be online, courtesy govt
To push the government's agenda of greater transparency and accountability, several states and central departments might be, unwittingly, following a bare-it-all approach in posting citizen data online. And, even sensitive and personal information, such as bank account numbers and income status, is not being spared........
Hacking attacks up, bounty for Indian IT companies
Technology companies are expecting a boom in anti-money laundering software sales as Indian financial services firms look to upgrade their technology systems in the wake of scandals and stricter policies from the Reserve Bank of India. Indian banks have been using anti-money laundering software but the last major implementations happened four or five years ago and those systems merely reported abnormal transactions. Banks now want to leverage modern tools such as using analysing real-time data to predict possible frauds or illegal............
Subscribe to:
Posts (Atom)