......At first glance, it is hard to quarrel with this policy configuration. After all, the external financial shock hit so badly precisely because of imbalances caused by past monetary-fiscal laxities; adjustment means tightening these. There’s little to squabble about fiscal belt-tightening; this was long overdue, so seeing it firmly in the saddle now vis-à-vis budgeted targets is a positive development. The problem is with inflation and monetary policy: Which inflation? How much must interest rates rise to contain food price-triggered inflation expectations and bring back savers from gold?..........
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 31, 2013
Financial inclusion is not a new dispensation - Dr.Deepali Pant Joshi
Speech by Dr Deepali Pant Joshi, Executive Director of the Reserve Bank of India, at the Vth Dun & Bradstreet Conclave on Financial Inclusion, Kolkatta, 28 October 2013
.....Access to finance for those who are getting crowded out of the credit markets is an equally important element. Therefore, the Reserve Bank has reinforced its efforts to improve financial access, especially for small businesses and individual households. The RBI has set up a Committee on Comprehensive Financial Services for Small Businesses and Low Income Households under the Chairmanship of Dr. Nachiket Mor a Director on the RBI Central Board of Directors. The mandate of the Mor Committee is to frame a clear and detailed vision of financial Inclusion and Financial Deepening in India and to lay down a set of design principles that will guide the development of institutional frameworks and regulation for ensuring these outcomes..........
Why India should steer clear of sovereign wealth funds - Charan Singh
The Government of India, according to press reports, is considering approaching sovereign wealth funds (SWFs) to invest in India. This is an interesting idea that needs to be examined closely. In the recent financial crisis, SWFs are known to have played a stabilising role but that has not been their historical image. In fact, the threats posed by the SWFs and their intentions were characterised by the ........
Successful inning coming to an end...........
 |
| File photo |
- C.B. Paunikar, PS to Regional Director
Rejuvenating VITALINFO............
Dear
Mangesh
Viewing
each edition of your VITALINFO is an eye opener, refreshner and rejuvenating. We are all proud of you and bit jealous of
your CONVICTION, COMMITMENT AND PERSEVERANCE IN KEEPING ALL UPDATES AVAILABLE IN
YOUR SITE. I am shortly coming to Pune and will try my best to meet you in
person to congratulate you. Regards.
- P N Nandakumar
Secretary, Reserve Bank Retired Employees Assn Kochi
HDFC Bank launches rural financial literacy initiative in Chhattisgarh
HDFC Bank Ltd had launched its rural Financial Literacy Initiative in Chhattisgarh under the aegis of the Reserve Bank of India (RBI) at the village of Jamgaon near here. Through this initiative, the bank will conduct a series of two literacy camps in each of its rural branches in Chhattisgarh. This is the first programme to be organised by the bank in the state in the presence of Nirmal Chand, General Manager of the RBI and other senior officials of the bank............
It's raining new notes, coins
.............According to sources, this initiative by RBI is to break the monopoly of money-changers in parts of the city including Manek Chowk, who offer new notes and currencies at a cost. "Many times these money-changers exploit traders and extract unnecessary amounts of new notes", said an official..............
Clarification should end speculation
My View on "I have never applied for citizenship of another co...":
This issue was first raised in ‘public’ by a politician and the ‘gossip’ was enjoyed by some idle mailers. Hopefully, this clarification coming from Rajan will end the speculation. We are forgetting that such uninformed allegations will affect the prestige of Indians as a community. World citizens like Dr Rajan may take it in their stride and take time to explain the real position. But this has an impact on the Indians whom we call ‘NRIs’ who are holding high positions abroad to the mason or tailor from Kerala or Bihar who has just landed in UAE for employment.
- M.G.Warrier
Instant rapport
..................At the Reserve Bank of India too, women have been in leading roles—Shyamala Gopinath, K.J. Udeshi and Usha Thorat have been Deputy Governors. But what makes Arundhati Bhattacharya’s appointment unique is the fact that she heads a 206-year-old institution which is on the cusp of a major overhauling as banking practices are churning not only in India, but globally. As the head of the country’s largest banking organisation—SBI along with its subsidiaries controls more than one fifth of all banking assets in India—she has to strike a balance between the government’s larger vision for the economy and the bank’s vision for its own growth, simultaneously ensuring that the employees remain happy and contented and become a partner in the growth process...............
For bogus charge of fake currency, 2 ITBP men slap Rs. 30-lakh defamation case on top UT officials
..........The branch manager found 91 currency notes of 1,000 each to be fake, and called the police who arrested the two men. The police even procured four-day remand for further interrogation, but when the notes were got checked by the Reserve Bank of India two days later, it was found that "all the suspected forged notes.. [are] genuine". Based on the report, judicial magistrate Aashish Saldi, on May 20, discharged both personnel. They have now said the UT police did nothing to investigate. They said that the truth had come out only after intervention of ITBP officials, who sought the help of the RBI.
Urban cooperative banks misused for money laundering
.............The matter of misuse of UCBs, over which there is dual control by central or state governments through multi-state cooperative societies or state cooperative societies, was discussed during a a recent meeting of Economic Intelligence Council (EIC), chaired by Finance Minister P Chidambaram. The meeting, which was attended by senior officials of Central Economic Intelligence Bureau (CEIB), Reserve Bank of India (RBI) and Finance Ministry, stressed for devising ways to check money laundering through these banks.............
Hapless depositors of urban co-operative banks
..........First, and foremost, there is an urgent need to force the liquidators to do their primary job of submitting the claim to DICGC, get the amount due and disburse the same to the depositors of failed banks without any further delay. If the liquidators are not amenable to the directions they should be replaced without any fear or favour and steps should be taken to appoint liquidators who comply with the orders of the authorities concerned. The DICGC should not only pay the amount of insured deposits against such a claim, but also pay interest at the bank rate on these deposits over and above the insured deposit amount, as the delay is only due to the failure of the government appointed liquidators.........
Bank licence: RBI may miss deadline
...........“I hope to announce the licences within, or soon after, the term of Deputy Governor Anand Sinha, who has been shepherding the process. His term expires in January 2014,” Rajan had said on September 4, the day he took charge of the central bank. The applications have come from a wide range, from conglomerates to micro lenders. RBI has deployed additional hands to screen these. Apart from officials of its department of banking operations and development, which drafted the licence norms, around 20 others are learnt to be involved..............
Foreign banks wait for norms on fully-owned subsidiaries
...........“There was nothing new said yesterday (Tuesday). Earlier, RBI had already clarified subsidiarisation wouldn’t be made mandatory. The promise of near-national treatment has also been made in the past. We will need to see the final guidelines to decide if subsidiarisation makes sense,” .............
Sleep was hard to come by when rupee was plummeting: Raghuram Rajan to NDTV
Reserve Bank of India (RBI) Governor Raghuram Rajan has said that tough measures like raising rates are needed to tackle inflation in India. In an exclusive interview to NDTV's Prannoy Roy, Dr Rajan's message to India Inc is: Bear with us. If we don't fix inflation now, the problem will get worse..........
Rajan may ask govt to help with infra exposure of PSBs
..........RBI has reason to be worried as the government plans to hold at least two major auctions within this fiscal for telecom spectrum and coal blocks. But a clutch of leading public sector banks have informed the RBI they will not be able to lend to companies for these auctions since their infra lending has peaked............
For now RBI is done with rate hike: Rajan
.......A better way of describing what the RBI is doing on interest rates is that " when there is lot of uncertainty you may move a little less than what everybody thinks may be necessary... and also because there are forces that you can't quite estimate which may come in and help or hinder your effort," Rajan said..............
RBI’s heady cocktail
.......... In this way, the RBI expects to address inflation as well as back growth. While growth may be supported by credit-financed personal expenditures, it is unclear why the demand this generates would not add to inflationary pressures just because the repo rate is being hiked. Reading between the lines the argument seems to be that this would result in the higher repo rate “anchoring inflation expectations”, whatever that nebulous phrase may imply.
A mass of jumbled signals
...........If growth were indeed slowing, so would salary and wage increases, leading to tapering of disposable income; and concerns of potential job loss leading to reduction in discretionary spending and propensity to spend, which is at odds with observed segmental inflation. If households were spending more on food, fuel and transport, given a presumed lack of income growth, should not discretionary spends, and hence pricing power, come down? So, the obvious question is: has growth really slowed as the data seems to suggest? Or is there some other source of income which is not getting captured in the data? For RBI, this quandary must be clear and present.............
RBI policy does not help industry: BCIC
............While appreciating that RBI has limited room to manoeuvre given persistently high inflation, BCIC pointed out that GDP will be significantly lower if industrial and service sectors continued to languish at current levels.............
We are in a better position to face tapering: Rajan
......Rajan said the RBI and the government have spent a fair amount of time trying to narrow the Current Account Deficit (CAD). As far as CAD is concerned, he believed, India will be in a comfortable position. “As of yesterday the Foreign Currency Non-Resident Account (Banks) deposits plus capital raising by the banks has reached $ 12 billion.......
RBI Governor Rajan: India isn't in danger of crisis
............Quite unusually for a central banker, Mr Rajan also revealed that although he tries not to comment on the appropriate level of the rupee as he "knows when it has gone too far". In his opinion, 68 rupees per US dollar that was hit at the end of August was "too weak", while 50 is probably "too strong" relative to the fundamentals of the economy. In terms of getting the balance right between fighting inflation and supporting economic growth, Mr Rajan describes the process as "muddling through"...........
RBI rate hike: When Mauni baba takes onus for economy woes
........“Yes, the three Rs were so humble and docile while they were in Delhi,” said Chidu. “Wonder what happened to them as soon as they landed in Mumbai.” “Next time we will appoint my man Monty to the post,” said Mauni baba. “At least he will listen to me and stay silent.” “Yes sir. That sounds like a great idea,” remarked Chidu. “Madam will also like it.” “Also, we should move the Reserve Bank to Delhi, then it will be easier to keep the governors under control.”..........
Back to the government
.........The RBI knows that monetary policy cannot affect food inflation directly, but argues it can influence the consequent build-up of inflationary expectations. This mechanism is much debated among economists, but given the fact that the RBI has now come down clearly on one side of the argument, the government must accept that the ball is in its court; everything depends on its ability to control food inflation...........
Back to a business-as-usual mode: Sunil Kaushal
........The fact that the market reaction to the monetary policy was 'according to expectations' was a compliment to the way RBI managed expectations. However, the governor would have his hands full with the challenges on inflation and,.....
Now NBFCs 'name and shame' guarantors for loan defaulters
Joining banks in naming and shaming wilful loan defaulters, non-banking finance companies (NBFCs) have also begun publishing photographs of such borrowers and their guarantors in newspapers. Tata Capital Financial Services Ltd, an NBFC entity from salt-to-software conglomerate Tata group, today published pictures of two persons in connection with default in repayment schedule of Rs 15 crore loan granted to Jalandhar- based Sameet Motors Private Ltd......
SBI board approval for Rs 2k cr capital infusion
.......The SBI board at its meeting held on Wednesday decided to go ahead with the funds infusion, which will be done by way of preferential allotment of equity shares in favour of the government, SBI informed BSE on Wednesday.........
Syndicate Bank to pay interest on monthly basis
HYDERABAD, OCT. 30:
Syndicate Bank has decided to exercise the option of paying interest on a monthly basis from next month, a change from the existing system of quarterly basis. Reserve Bank of India, in its monetary policy on Tuesday, had decided to give banks the option to paying interest on savings deposits and term deposits at intervals shorter than the existing quarterly intervals, since all banks are on core banking platforms..............
TCPSL plans to rollout value-added products
......Last year, Reserve Bank of India had allowed corporates to set up white label ATMs to increase the penetration of ATMs in several areas of the country. TCPSL, among others, had bagged a licence for the same. "By December, we expect the number of indicash branded white label ATMs to touch 1500 and then we hope to begin rolling out value-added services from these ATMs or its sites," .....
Subscribe to:
Posts (Atom)