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.
Sunday, December 22, 2013
Headhunt begins for RBI Deputy Guv Sinha's replacement
“Why even an NDF Dog cannot wag the on-shore tail, much less an NDF tail wagging the on- shore Dog !” - V.K.Sharma
RBI's job is to make sure growth doesn't suffer: Gopinath
.........Yes. I think this is partly the reason behind Rajan’s first policy move - to raise interest rates. That was partly reflection of the fact that we already know that inflation is a problem for the country. If you wanted to kill inflation, it can be done through monetary policy. If you raised rates high enough, you will bring inflation down and there is hardly a country in the world – I cannot think of a single country in the world that has been able to bring down inflation without some pain.........
VITALINFO - Part of life : P.Aravind, Former Regional Director
Dear Mr Tarambale
VITALINFO has become part of my life and the first thing I do when I
open my email is to read what you have published in VITALINFO. I have even
stopped subscribing to Economic Times which I was reading for the past 25
years.
-
P.Aravind, Former Regional Director
PS fraternity is the base that you found to create a blog as VITALINFO
which is earning a name to you and indirectly the PS fraternity is proud of
you! Keep it up!!
- R.Sridharan,
Former Principal Private Secretary to Governor
Sir
I have started reading VITALINFO since recently. I feel I missed the
info for such a long time. You are great, I wish you all the best and send my
new year greetings. Looking forward to your info with great interest. Regards
-
B V Krishnamurthy
Dear Sir,
You are requested to add Smt. Kim Guite, DGM, Secretary’s Department in
the list of recipients for ‘VITALINFO’. With best regards,
- Manisha Thosar, PS to CGM, Risk
Monitoring Department
Dear
Mangesh, Nobody can repay your debt. May God bless you.
– Rang Pal Gupta, Ex Deputy General Manager
A surprise indeed
...........Inflation has been the key concern for managing the interest rates, which if increased curtails the growth and if decreased fuels inflation; balancing both is truly a tight rope walk for the RBI governor and his team who continue to surprise the market by addressing key policy issues that has been plaguing for a long time. Nevertheless, as against the market expectations that the central bank would increase both the interest rates and the Cash Reserve Ratio (CRR) Mr. Rajan maintained status quo........
Remedy worse than disease
My View on "PINching the so called safety measure - P.Aravind":
The ‘PIN’ stipulation at sales outlets is yet another case of remedy being worse than the disease. This helps only sale of more card-swiping machines of the new generation. Soon, once this system is introduced country-wide, I will not be surprised if the cards are ‘linked to AADHAAR identity’. Again, new cards, new machines. What more we can expect from policy makers who claim that import duty increase is the ‘reason’ for rise in smuggling of gold? Improving security features in the card and cautioning clients against allowing ‘third party use’ of debit/credit cards are options that should be considered. Aravind has explained the extant practices in use of cards and in the given situation, maintaining secrecy of PIN numbers will be next to impossible.
- M G Warrier, Thiruvananthapuram
Obituary
Mr. K. Ramachandran (Baby), Retd. Treasurer, RBI, Chennai passed away on 17.12.2013. Mobile: 98410-32030 / 97400-6006
HinduBook review: Sahara -The Untold Story
......Assuming that each of Sahara's 30 million investors - that's equal to the population of Malaysia - had just one A4 size document each to account for their investments in Sahara's debentures, the papers stacked up in a pile would be 3,800 metres tall, or 52 times the height of the Qutub Minar. The documents are stored at the office of Stock Holding Corp. of India Ltd (SHCIL) House, at Mahape, Navi Mumbai. It's one massive building spread across five acres - one kilometre away from the Thane creek hazardous waste disposal facility. The vast storage space at SHCIL was built to store share certificates..........
Agricultural Banking - Book Review by P.P.Ramachandran
.......An ideal system of agricultural credit would balance policy objectives with farming needs. Dr. Raju has a post script on the Food Security Act. its implication on the future. He believes the Act makes good politics and bad economics in one stroke. It fixes no accountability for failure to implement provisions of the Act. This book is a thoroughly scientific analysis of India’s Achilles Heel. The author has provided insights into how the policies for agricultural banking has evolved over the years and how they are shaping up today
MORE RBI VIGIL OVER BANKS - This day that age - December 21, 1963 - The Hindu
The Lok Sabha on December 20 passed the Banking Laws (miscellaneous provisions) Bill to give the Reserve Bank enhanced powers for stricter supervision over commercial banks, and for ensuring more effective supervision and management of the monetary and credit system. Several Government amendments and a few moved by Mr. R.R. Morarka (Cong.) were incorporated in the Bill before it was approved. Explaining his amendments to clause five, Mr. Morarka said they sought to make the intentions of the Government “clear and precise”.
The Hindu
Muslim MPs write letter to Chidambaram on interest free banking
...........The signatory MPs, ten in total, in the letter have demanded to take necessary action to implement ‘Interest Free Finance’ as recommended by Dr. Raghuram Rajan committee “to meet the inclusive financial policy of the Government.” “We request you to arrange a consultation with the concerned authorities including the Governor of RBI for sorting out Legal and Technical apprehensions to implement the Recommendations on the subject. We will extend necessary Subject expertise,” demands the letter.............
‘RETURN SOILED CURRENCY NOTES, GET NEW ONES FROM BANKS’
Mysore, Dec. 21- In view of the Reserve Bank of India (RBI) prohibiting the circulation of soiled, defaced and mutilated currency notes from Jan. 1, 2014, members of the KMPK Charitable Trust launched an awareness campaign at the Agrahara Circle on Dec.19 and distributed pamphlets among the public, directing them to get their soiled currency notes exchanged for new ones at the banks..........
Confusion follows RBI circular on scribbled notes
..........“We have tried to get information regarding such directive of RBI. However, we have not been able to find any such official circular of RBI. The circular which are available on RBI website on soiled currency note directs commercial banks for non-issuance of currency noted either in stapled format or the currency notes which are soiled or scribbled,” the National Secretary General of CAIT, Praveen Khandelwal said in a written letter to the RBI Governor, Raghuram Rajan. CAIT further requested the RBI Governor to issue a notification or advisory for non-acceptance of Indian currency notes having anything written or scribbled to commercial banks for non-acceptance from January 1, 2014............
RBI proposal on corporate debt Restructuring
.........The RBI will set up a Central Repository of Information on Large Credits (CRILC) – an entity to keep track of “large credits”. The RBI’s definition of “large credits” is not really large, as accounts with a fund and non-fund exposure of Rs5 crore, and current accounts with an outstanding balance of Rs1 crore will be covered by the CRILC system. Where an account reaches SMA-2 status, banks and larger NBFCs (systematically important NBFCs) will report the account to CRILC.........
NBFCs under central bank scanner in Chhattisgarh
........The issue figured top in the agenda of state-level coordination committee meeting of the Reserve Bank of India—country’s central bank. The meeting was chaired by RBI Bhopal Region Director P R Ravi Mohan. “The meeting stressed for taking up extensive campaign to aware people about the risk associated with investing in the NBFCs,” a state government spokesperson said.......
Misuse of bank guarantees, letters of credit on the rise
........The reason for the devolvement of LC usually is that the buyer (or importer) refuses to pay the bank at the end of the credit period even though the imported consignment has been disposed of and profit pocketed. A senior Union Bank of India official pointed out that if the RBI allows sanction of non-fund based facilities by banks to non-customers it could trigger predatory practices.............
Credit card dues for 90 days are NPAs: RBI
....“The gap between two statements should not be more than a month,” the RBI said while adding that banks are currently following ‘divergent’ practices with regard to asset classification status of credit card accounts. “While some banks reckon the due date specified in the statement for payment of minimum amount due to determine the over-due status, some banks reckon the subsequent billing date to determine the over-due status of the minimum amount due,” the RBI said in a notification........
Worried over ranking, IIT-Delhi to hold first-ever alumni meet
......... “These include many successful entrepreneurs, corporate czars and senior decision-makers in the government. The illustrious list includes the RBI Governor, Dr. Raghuram Rajan,” he said, while explaining that more than 2,000 alumni were expected to participate in the event............
Manager duped of Rs1.51 L
.......“As per the RBI guidelines, the person who is exchanging currency should check documents like passport, visa, identity card of the person with whom he is transacting. Also currency exchange should happen only in offices. Gaikwad had himself gone to the hospital and exchanged the currency.”..............
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