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, May 31, 2014
K C Chakrabarty - The accidental banker
Sustainable prosperity - V.K.Sharma
Love in Tokyo: Rajan Says RBI, MoF One on Inflation
RBI Governor Raghuram Rajan sought to dispel any lingering doubts that he may be at odds with Finance Minister Arun Jaitley and the new Narendra Modi government for the second time in a week, saying the administration's priority of taming inflation is a prudent one. Rajan said the central bank will work with the government to curb inflation, which has wrecked the economy, giving a clue to the governor's thinking ahead of the June 3 monetary policy announcement. “The government and the central bank have both stressed the need to bring down inflation while respecting the fact that growth is very weak............
RBI's '007' Raghuram Rajan faces pro-growth boss in Modi
Hailed as a troubleshooting "James Bond" of central bankers amid India's currency crisis last year, Raghuram Rajan was given a licence to kill inflation with higher interest rates and drive a programme of monetary policy reforms. Now, the governor of the Reserve Bank of India (RBI) may need all the suave charm of the fictional British spy to sell that same hard-nosed agenda to a powerful new Prime Minister who is determined to revive economic growth and create jobs..........
Hope to work with Modi govt to battle inflation, RBI chief Raghuram Rajan says
TOKYO: Reserve Bank of India Governor Raghuram Rajan said on Friday he expected to join hands with the country's new government to bring down high inflation. Rajan, speaking at a seminar in Tokyo, said the new government's plan to curb food inflation seems sensible and that he expected the public's inflation expectations to fall in the future. ............
Make the PS Banks Performing assets of the economy - Dr.T.V.Gopalakrishnan
The PSU banks are becoming non professional and non aggrssive in their business approach is a fact which cannot be ignored both by the Government as owner of the banks and the RBI as Regulator. The reasons are not far to seek for such a situation in PSBs. The technology in use, the attitude of employees, thewrong age profile of human resources in banks and the incentives they get , the unprofessional guidance they get from top managemnt etc add to the non performance of banks, Added to this the Government interference in many ways acts as a moral hazard not to perform is also not a secret. Borrwoers take full advantage of this and they also do not perform. Time a very serious view is taken to make the banks performing assets of the economy.
The Robbing Hoods - T C A Srinivasa-Raghavan
.......What the "good" people don't seem to understand is that a tax on income has always been a device to attain political ends rather than a device to attain economic ones. If you study the history of income tax in detail, you will find that when it was not being imposed to finance wars, it was imposed in order to meet some political agenda................
Reposition the NABARD
My View on "Nabard FY14 Net marginally up at Rs 1,860 crore":
IDFC the infrastructure development organisation has become a commercial bank. Result is that funding support for infrastructure projects would need to be provided by commercial banks which will be costlier for the such projects. With the result, NABARD is the only agency with strong hand in funding infrastructure development projects, of course confined to rural areas. NABARD is also a fully owned GOI enterprise. So, it is in the best interest of the country's infrastructure development, NABARD may be repositioned as NABARD infrastructure development Bank with area of operations expanding to urban areas also. This would meet two objectives:
1. Infrastructure development would continue to receive the funding support without any problem.
2. NABARD with its performance going flat in 2013-14, it will give a great opportunity to grow in an area where its expertise lies.
- Dr.Santhanam
Pros and Cons of Keeping the Farm Loan Waiver Promise - B. Yerram Raju
...Interest subvention will not be available once the waiver is announced by the state government and therefore, to that extent the state government will have to bear this additional burden as well. It will be hazardous for the Centre to provide for loan waiver of AP as other states would not hesitate for raising similar demand. Farmers continue to be in distress not because of just the burden of institutional loans against which the waiver is now promised but on account of huge private debt at usurious rates of interest with no credible documentation. What is now promised is..........
Deepak Parekh honoured with Germany's prestigious Order of Merit award
........Germany's Consul General Michael Siebert who bestowed the award, said, "Deepak Parekh, one of the most respected personalities in the Indian finance sector for his outstanding entrepreneurial success and his integrity, has played a pioneering role in fostering Indo-German economic co-operation."......
Take it in right spirit
My View on "Too lax an approach to fighting inflation - Dr.S.S...":
Setting out the purport of policy as ‘alleviating the suffering of the masses and generating a climate of confidence which would boost savings and investments’(see conclusion) and systematically analysing the context in which Dr Raghuram Rajan will be presenting the second monetary policy review of 2014-15, the article doubles up as a background note for RBI and a guide for those who will be talking about expectations and fulfilment, post-announcement of monetary policy. One only hopes, the views, ‘In this context the autonomy of the Reserve bank of India’s monetary policy function and its accountability comes to the forefront’, ‘…The RBI should then have instrument independence’, ‘…presence of a top Finance Ministry official-the Big Brother’s watching syndrome!’ and ‘Hurrying through fundamental financial legislative changes is clearly not desirable’ coming from the veteran economist who had opportunity to be at the highest level in monetary policy formulation during challenging times, are taken in right spirit, by those in charge of fiscal and monetary policy formulation today.
- M.G.Warrier
Hostage to Questionable Priors
.....The committee which had one representative from a PSB (a retired official) and one from the Securities and Exchange Board of India was dominated by financial market participants and specialists. It is, therefore, no wonder that its report oozes with the sentiment of financial market fundamentalism. Surprisingly, there was no representative from the Ministry of Finance, banking trade unions and investor groups. Furthermore, it is intriguing that an RBI committee report can begin with the sentence, “The financial position of public sector banks is fragile, partly masked by regulatory forbearance.” Such a statement from a RBI-appointed committee is extremely irresponsible. Since most of the PSBs are also listed in the stock market, this statement is enough to cause ...............
Don’t mess with the banking sector
........The world over, economies have faced banking crises over the past several decades. Banks failed, they were nationalised or bailed out, then turned over to the private sector. This is the phenomenon of socialisation of losses and privatisation of profits that has come to attract public outrage. India’s experience has been refreshingly different. The Indian approach has been to have the public sector dominate banking while exposing it to competition. In the process, efficiency has improved without jeopardising stability. Experience has shown that it is possible to retain the public sector as the sheet anchor of the banking system without compromising on efficiency. Addressing the issues of governance at PSBs requires focus on the part of the finance ministry...........
Banks to offer loans to victims of blade mafia
.......... The beneficiary would be required only to produce photocopies of documents and a certificate from a government official regarding their debts and sources of income. The bank would directly pay the moneylender from the proceeds of the loan. The loan would be repayable in five years and would carry only the base rate of interest.............
Inquiry MSC Bank finds Ajit Pawar, 43 others guilty of errors of “commission and omission”
...“Explanations offered by the bank, regarding the losses were found to be inadequate, therefore department has concluded that, banks’ board was responsible for the losses. And as there is a need to fix responsibility regarding these losses, I am ordering further probe for fixing responsibility regarding these losses with concern directors and officers of the bank,” ................
Banks yet to promote GPCC scheme
............The Reserve Bank of India had drawn up the General Purpose Credit Card, similar to the Kisan Card, as this segment does not have a credit card facility for purchases and other purposes. The apex bank had specified that the borrowers would be eligible for availing themselves of credit facilities provided under the card as per their needs without any insistence on security and the purpose or end-use of the credit. Banks were given the freedom to charge appropriate and reasonable interest rates. They also have the flexibility to fix the limit based on the income and cash flow of the entire............
An MP village tells you why financial inclusion isn't a tough ask
......But more than the technology aspect, Tyagi is worried about the service-area approach of banks, as mandated by the Reserve Bank of India (RBI). “RBI’s guideline to first cover the uncovered areas is a limitation because we may not necessarily have CSCs in those areas,” he says. “Banks started with catering to villages with a population below 5,000, then moved on to villages with fewer than 2,000 people, and so on. But we did not set up the CSC network in that format. So there is always a mismatch in some locations where banks want a CSC and we cannot provide one, so things get delayed further.”..............
HC stays RBI order on DCCBs
.......The stay may allow teachers and farmers to withdraw the amount lying in their accounts, which could not be touched earlier due to the RBI action, which called for liquidation of the banks. The next hearing will be on June 20. The state government is ready to infuse Rs319 crore cumulatively in the three banks as share capital to revive these institutions. Even as teachers may heave a sigh of relief they may not be able to immediately shift their accounts to Union Bank, though they have been pressing for it given the crisis in NDCCB.........
Stable rupee may prod RBI to liberalise rules
....“The liquidity (restriction) measures might not be withdrawn by RBI. But maybe it will allow people travelling abroad to (again) spend $200,000 there in a year, as against the present limit of $75,000 (fixed last August). That might be announced anytime,” ..............
Rana Kapoor’s board appointment subject to final order: Bombay high court
.....Justice S.C. Gupte’s comments came in the course of a hearing on an ad interim petition by Madhu Kapur, widow of Yes Bank co-founder Ashok Kapur. Ad interim is a Latin phrase that means temporary. Gupte said that Kapoor’s appointment is also subject to the court’s final ruling.......
Banks' international liability rise 36 per cent on dollar deposit flows
........The rise in banks' international liabilities also contributed by their foreign currency borrowings, RBI said. The central bank allowed banks to borrow up to 100 per cent of their Tier-I capital from overseas markets and swap the dollar with it at a lower rate to attract dollar inflows and arrest the rupee to slip beyond 68.80 a dollar............
PDP ASKS GOVERNMENT TO EXPLAIN JK BANK BUNGLING
..... it was ironical that a government that served a severe blow to state's financial autonomy by shifting to RBI for overdrafts had claimed that the move would improve transparency in the bank. That spurious argument has been turned on its head as exposed in the GK report and now it is clear that the changeover was only another installment of the price that NC has historically been paying at the cost of state's resources and institutions,........
Read.........
Friday, May 30, 2014
Too lax an approach to fighting inflation - Dr.S.S.Tarapore
................The FSLRC proposal has certain drawbacks. While the RBI would be accountable for its actions, the majority of the members of the MPC would be non-executives. This goes against the fundamental principles of executive responsibility and accountability. Again, one is all too familiar with how executives and external advisers can be overawed by the presence of a top Finance Ministry official — the Big Brother’s watching syndrome!.............
Raghuram Rajan's welcome party for new FM Arun Jaitley with robust forex chest
Reserve Bank of India Governor Raghuram Rajan has made out a welcome party for new finance minister Arun Jaitley in the money market. The minister can borrow more from the market and still keep his fiscal house in order. This has happened because of the robust foreign exchange mop up operations the RBI has begun in earnest since March this year...........
Delhi's Naraina industrialists ask for five M's at RBI town hall meeting
........The Reserve Bank (Delhi region) with the support of FISME (Federation of Indian Micro and Small & Medium Enterprises) held its second round of Town Hall meeting here yesterday with the Naraina Industrial Association. The meeting was chaired by the General Manager, Rural Planning and Credit Department, RBI, Sonali Sengupta. The meeting was convened to reach out to micro, small and medium enterprises (MSMEs) so as to create awareness of banking facilities and the advantages of linking them with banking system. The main objective of the meeting was to discuss the grievances and feedback that small entrepreneurs face with the public as well as private sector banks. “I request all of you to take advantage of this town hall meeting by clarifying various issues affecting MSME credit from banks in the district,” said RBI Rural Planning and Credit Department Assistant General Manager Vandana Maheshwari inaugurating the programme..........
RBI organises Forex Exhibition and Interface Programme
........ The welcome address was delivered by the Hon’ble Vice Chancellor of National Law University, Delhi, Prof. (Dr.) Ranbir Singh. He welcomed all the dignitaries from RBI, New Delhi and Central Office, Bombay and the participant banks as well, which included Axis Bank and State Bank of India. Shri Deepak Singhal, Regional Director, RBI delivered his precise inaugural address on FERA, 1973 and FEMA, 1999. He also pointed out the importance of the FEMA in day to day life. An interactive and knowledgeable presentation was given by Shri Himashu Mohanty (General Manager, Foreign Exchange Department, RBI, Bombay), an expert on FEMA. .......
Read..........
Empower PSU banks
........The country’s changing demographics could see private banks capturing a larger share of deposits in future—lenders such as Kotak Mahindra Bank are already able to win customers by offering a higher interest rate on savings accounts. Since PSU banks will be short on capital—they need an estimated R6 lakh crore in four years—unless the government decides it will dilute its stake in them, they will be in trouble. ........
HDFC Bank debit card users to lose benefits for not transacting online
.........On the reasons for the move, HDFC Bank said, “Debit card is a convenience product and we want to influence the usage habit of customers to make them use their cards for daily purchases, instead of using cash. Regulators had reduced merchant fees on debit cards to drive electronification of payment and move away from a cash economy. This feature will help complement that.”.............
Verify authenticity of company before investing, says RBI
... Hundreds of people are still being lured by them, as they continue their practice of ensnaring agents, offering them high commission rates. The agents in turn get the gullible public to invest in bogus schemes which go bust after paying a few rounds of high rates of interest. The RBI has said that the returns too are regulated (at 12.5 per cent). Recently, the RBI barred at least four such city-based companies from raising money from the public. One of them was not even registered with the RBI and has already begun defaulting on its payments raising the spectre of the Saradha-like scam...........
RBI might wait and watch
.......That’s probably a fair prediction. There is hardly a case for RBI to relax its stance at this point on grounds of inflation, even as it is anxious about growth. Besides the resurgent consumer price inflation last month, the central bank is confronted with a number of unknowns at this point. These factors suggest a deferment of any monetary action two months hence...............
RBI's fresh norms on new bank licences in next 4 months
..."Hopefully, in next few months RBI will start inviting applications... RBI will take 4-5 months for preparing the new set of guidelines for on-tap and for differentiated banks," Financial Services Secretary G S Sandhu told reporters .......
RBI to shortly issue Rs 1000 banknotes without inset letter
......"The RBI will shortly issue Rs 1000 denomination Banknotes incorporating rupee symbol, without inset letter, in the Mahatma Gandhi Series-2005 bearing the signature of Raghuram G Rajan, Governor, Reserve Bank of India, and the year of printing 2014 printed on the reverse of the banknote," a release from the RBI said.........
Positive signals
Given the context, the meeting between RBI Governor Raghuram Rajan and the new Finance Minister, Arun Jaitley, was expected to be significant. In the event, the meeting, which was among the first between a senior government officer and a senior Minister of the new government, has been noteworthy for several reasons. Most importantly, Mr. Jaitley appears to be on the same wavelength as the RBI, acknowledging the challenges the government faces in restoring the pace of growth, contain inflation and concentrate on fiscal consolidation, all important policy objectives whose pursuit involves “a tough balancing act”. Those words will resonate well with the RBI,.........
New bank licence: Will Jaitley take a view contrary to Yashwant Sinha’s
.....In fact, RBI Governor Raghuram Rajan had later observed that the ones who did not make it were probably more suited to be a different kind of bank. In January this year, the RBI-appointed Nachiket Mor committee had recommended giving out licences to entities that could focus either on payments or on collecting deposits, in an effort to widen the delivery of financial services. The drive to issue more licences to open banks was set in motion first by the then finance minister Pranab Mukherjee. This was also done with the intent of furthering the agenda of financial inclusion in a country where more than half the population have no access to banking services. The Narendra Modi-led Government will now be in a spot on whether to hand out more banking licences, especially to corporates.......
Fin Min differs with RBI view on governance issues in PSBs
.........The central bank, in a detailed note to the ministry, highlighted the governance issues in public sector banks which have also led to rise in non-performing assets. RBI has also pointed out that government ownership creates constraint in efficient operations of the bank. In its reply to the central bank, the finance ministry said rise in NPA is mainly due to slowing economic activity.............
Growth but not at the cost of macrostability
......For all these reasons, the space for monetary easing just does not exist and I expect the Reserve Bank of India (RBI) will stay on hold next week and reiterate that its primary objective is to bring down inflation to the 8% and 6% levels that it has publicly committed to. We live in a T20 era that thrives on instant gratification. But there are no quick or easy answers here. And markets have to accept some hard truths...............
Big-bang capital market reforms on the cards
........To sell the Indian reform story to foreign investors, Finance Minister Arun Jaitley is planning to go to London, Tokyo, Hong Kong, Singapore and New York for road shows. "We are looking at a three-month timeframe to roll out many of these measures. Some that require legislative amendment might come in the Union Budget. The restrictions imposed by RBI in July last year will also be lifted,........
A New Govt Sets Course - Insurance, pension tax sops on cards
......In a presentation to finance minister Arun Jaitley on Thursday , the department of financial services (DFS) has also proposed developing new instruments in the pension sector to attract longterm funds besides tax-free bonds for the infrastructure sector to help fund power, road and port projects. Sources present in the meeting told TOI that the proposal is being sent to the RBI, which is expected to issue guidelines on the issue. The suggestion for the tax-free instru ments and the tax sops come ahead of the Budget, which is expected to be presented in the first week of July ............
Read - TOI
FM to target Rs 2 lakh crore bank NPAs
Non-performing assets (NPAs) of banks estimated at over Rs 2 lakh crore seem to be top on finance minister Arun Jaitley’s agenda. Jaitley is weighing various options such as shifting the bank NPAs to asset reconstruction companies on a wider scale, and sweeping changes in the Debt Recovery Tribunal’s (DRT) legislation, making the dispensation of cases time-bound..........
Read - DNA
Read - DNA
Recruitment of Assistants in Clerical Cadre in State Bank of India
Recruitment of Assistants in Clerical Cadre in State Bank of India (2014-15)
Advertisement No. CRPD/CR/2014-15/02
On-line registration of application : 26.05.2014 TO 14.06.2014
Payment of fee : On-line 26.05.2014 TO 14.06.2014
Off line 28.05.2014 TO 17.06.2014
SBH notified as convenor bank for Telangana
State Bank of Hyderabad (SBH) has been notified as convenor bank of the new state of Telangana. RBI Regional Director S K Das informed today that his office received the communication yesterday..........
Nabard seeks govt nod for Rs 5,000-cr tax-free bond issue
............“We have requested the government, that if it is still keeping the tax-free bond window open, then we would like to raise funds under Nabard Infrastructure Development Assistance (NIDA),” said Harsh Kumar Bhanwala, chairman, Nabard. The bonds will help raise money to fund rural infrastructure projects, Bhanwala added. NIDA is designed to fund state-owned institutions/corporations — both on-budget as well as off-budget — for creation of rural infrastructure outside the ambit of the rural infrastructure development fund (RIDF) borrowing...
Nabard Seeks Review of Rural Infrastructure Projects
With a large number of rural infrastructure projects not taking off despite receiving sanction from the National Bank for Agriculture and Rural Development (Nabard), the Odisha Government has been caught on the wrong foot. As on March 31, as many as 189 projects sanctioned under Nabard’s Rural Infrastructure Development Fund (RIDF) and having an estimated cost of `380 crore were yet to take off............
Go easy on taxes
......The deduction under Section 80C of the Income-tax Act has not been revised for a long time. Further, with too many investment/ expenditures (such as contribution to Provident Fund, repayment of the housing loan, life insurance premium, fixed deposit) forming part of the existing overall limit of ₹1 lakh, individuals are not incentivised to make investments beyond the specified limit. Hence, the specified limit must be increased............
SIT on black money to hold first meeting on June 4
.....The meeting, the sources said, is expected to discuss the policy matters on combating the menace of black money and the status of ongoing probes and available inputs with all the departments in this regard. The officers who would form part of the SIT include Secretary of the Department of Revenue under the Ministry of Finance, a Deputy Governor of RBI, Intelligence Bureau Director, Director of Enforcement Directorate, Director CBI, CBDT Chairman and Director General Narcotics Control Bureau........
Rs. 3,384 crore for agriculture activities
....A major thrust has been given equally to all sectors and employment generation by way of investment in income generation activities in services and industries sectors. As per a directive of Reserve Bank of India, every village with a population of 2,000 and above will be provided banking services so as to liberate the rural masses from the clutches of moneylenders.........
I-T Dept. asked to share wealth details of defaulters with banks
....According to available data, NPAs of state-owned banks rose by 28.5 per cent to Rs.2.36 lakh crore in September last from Rs.1.83 lakh crore in March, 2013. It is expected to have grown further. Reserve Bank of India Governor Raghuram Rajan had recently expressed concerns over the bad loans in banks. The directions were issued in view of reluctance of the Income Tax Department, which comes under the Central Board of Direct Taxes (CBDT), to share information provided in wealth tax returns with banks despite repeated requests. However, the Finance Ministry said banks would be allowed to recover their dues from sale of assets of defaulters only after settlement of the claims of the tax department........
Make yourself at home
High inflation has been troubling the economy for more than a year, which has forced Reserve Bank of India (RBI) to keep interest rates high to suck extra liquidity and control inflation. Considering the circumstances, a rate cut in coming months seems unlikely. Persistently high rates have made home loan borrowers work out plans to get a respite from the increase in their equated monthly installments ......
Thursday, May 29, 2014
Raghuram Rajan again calls for global monetary coordination
..........“The key rationale for co-ordination and international monitoring is adverse policy spill-overs,” Rajan said. He was speaking at the 2014 BOJ-IMES Conference on Monetary Policy in a Post-Financial Crisis Era’, organized by the Institute of Monetary and Economic Studies, Bank of Japan, in Tokyo. Rajan, a former chief economist with the International Monetary Fund, warned that the current “non-system” in international monetary policy could be a source of substantial risk to sustainable growth and to the financial sector. “The international rules of the game need to be revisited as the world has changed,” Rajan said, adding that both advanced economies and emerging economies need to adapt...........
Kangra co-op bank opens new branch
Happy ReTYREment
Dear Mr Narayanan,
HAPPY RETIREMENT
While welcoming you to the Group I had observed that your retirement is due on coming 31st May. We all wish you a very happy retired life in advance. The retirement day is fixed on the day we joined the Bank. Only it is a matter of time. I am forwarding herewith a communication received from Sh M B Talekar in this regard and hope our members will impress upon their friends to join Assn, if they have not done it so far. Ours is only an informal group. For conveying any thing to the Management we always request our Retirees Assn, which is a recognised body by the Bank. I need not repeat that they are already doing quite a lot for us. In fact some of the activists, who are our members, go through group mail of their own and initiate follow up action. So to make our group stronger we have to have maximum number of members who are member/office bearers of local Retirees Assn also.
If it is possible for some of our members from different centres to send me a list of staff members with email address who have recently retired or are going to retire shortly, we can approach them to join Retirees Assn as well as our Group.
Wishing you all the best once again.
Regards
Madan Gauria (M-1)
Moderator EXRBITES Group
madan.gauria@yahoo.com
Forbes' most powerful women: SBI's Arundhati Bhattacharya, ICICI Bank's Chanda Kochhar in list
State Bank of India Chairperson Arundhati Bhattacharya and ICICI Bank Managing Director Chanda Kochhar are among the five women from India featured in Forbes' 100 most powerful women in the world, a list topped by German Chancellor Angela Merkel. Bhattacharya is ranked 36th on the power list, while Kochhar is 43rd. Biocon founder Kiran Mazumdar-Shaw is ranked 92nd on the list.............
Let the poor own our state-run banks!
.........Here’s an idea whose time has come! Let our poor part own our nationalised banks. How, pray? Its very simple. The Modi regime should transfer Rs 10,000 each into the account of each of the 400 million poor identified using the UID or other efforts, who are mostly farmers owning small land holdings. Make them invest this Rs 10,000, which aggregates to Rs 4 trillion in state-run banking stocks. The natural consequence will be that the government holding in these banks will come down from the present high holdings, which vary from ...........
Read - ET
PSBs and Naik Committee Report - Dr.T.V.Gopalakrishnan
...........The Government and the economy should be the beneficiaries out of such banks and not the other way round. Banks are not meant for unprofessional Board Members and bad borrowers. No doubt, the unions will have to be taken into confidence and their interest cannot be jettisoned. The need to have professional Boards,effective constructive regulation and supervision is paramount and hope the new Government would take this report seriously and .........
When ‘fake’ turned real
.....Following regular procedure, the police informed the RBI office in Kochi, which then forwarded the notes to RBI Thiruvananthapuram. After much time and money had been spent on bringing the Rs. 5 notes to the capital city, officials confirmed that the notes were indeed genuine. Officials said there may have been some error in printing and the security thread was missing as they were printed before 2005, when new features were added to the currency notes. As the notes had already been marked ‘counterfeit,’ the police had no other go but to get them exchanged at the RBI.........
Teacher files intervention petition in NDCCB case
........However, the money could not be withdrawn following RBI's rejection of banking licence application. Some of the teachers withdrew their salaries before the order was issued. The state government was aware of the likelihood of the banking licence application being turned down, but did not take up the issue with RBI, and deposited the salary in NDCCB as a matter of routine, says the plea. Tiwari's petition adds that she approached the bank and requested that her salary should be released, but was informed that it cannot be done in the light of the RBI order.......
Silent witness
My View on "FM Tune in Sync with Rajan Stand on Taming Inflati...":
It augurs well for both the RBI and the GoI to begin the new day with the meeting of the FM by the Governor, RBI. From the past experience of two FMs (PC and Pranab Mukherjee), a simple request to the present FM Mr Jaitley. Let him not flood his constituency (fortunately he has lost in the LS election from Haryana) with opening of new branches of PSBs as his predecessors did. In Sivaganga, they used to say that one day, there will be more bank branches than the population of the district. RBI was also a silent witness to these supposedly popular measures (which became totally unpopular with bank branches becoming unviable with very little scope for growth through new clients acquisition)when CMDs of PSBs bent backwards in opening branches of their banks without any assessment of their viability. Murshidabad is also not an exception to this during the tenure of Mr Pranab Mukherjee as the FM of this great country.
- Dr.Santhanam
Banking Codes are Here, Don't Let Banks Take You For a Ride
.........While the onus could shift to sellers or distributor banks, a customer should also be aware of her rights and the recourse available. Keep yourself updated of the measures taken by RBI and BCSBI to protect customer interests. Experts think that with the burden of guilt likely to shift to the seller, customers should make the most of the code of commitment, which can quickly redress their grievances, says Preeti Kulkarni According to BCSBI chairman AC Mahajan, awareness of the code of commitment to customers is low even among the compliance officers at many bank branches. The new BSCBI code of commitment has already incorporated.............
Read - ET
Emerging markets may hit back with own version of QE: RBI governor Raghuram Rajan
........."Countries could legitimately practice what they might call quantitative external easing or QEE, whereby they intervene to keep their exchange rate down and build huge reserves," Rajan said at the Institute of Monetary and Economic Studies-Bank of Japan meet.
No magic cure for an ailing economy
..........How big should the Government’s spending commitments (subsidies, deficits) be? What should be the Government’s tax and revenue policy? Do we have a national policy on tariffs/user costs for key infrastructure such as power, roads, water, transport fuels, gas? How do we plug the overall spending gaps in the national budget? What is the role of the RBI in that process? Does the RBI have an objective with respect to the macro-economy? If India does not answer these questions, we will have a repeat of what has happened in the past decade .........
How bank customers get short-changed
.........Addressing a gathering of bank officials and customers of various banks, D G Kale, General Manager (Customer Service Department), Reserve Bank of India, said the Code of Customer Rights aims to provide protection to customers and promote cordial banker-customer relationship. The customer meet was hosted by BCSBI (Banking Codes and Standards Board of India). RBI’s primary focus has been the common man and the guidelines therefore are aimed at common people, he said and asked the listeners if they were aware that the savings bank account earns interest on a daily basis; that a pensioner is entitled to a penal interest at bank rate plus 2 per cent if there is a delay in pension payment; that the pensioner’s life certificate can be given at any branch of the bank that disburses his/her pension, among other questions..............
RBI on inoperative foreign currency accounts
........According to RBI, if a foreign currency denominated deposit with a fixed maturity date remains inoperative for a period of three years from the date of maturity of the deposit, at the end of the third year, the bank shall convert the balances lying in the foreign currency denominated deposit into rupee keeping in mind the exchange rate prevailing as on that date...........
RBI asks urban co-operative banks not to lend to government entities
........RBI defined UCBS as needing to provide loans to lower and middle income groups, as well as agriculture and small businesses, instead of government-owned companies, which are called public sector undertakings (PSUs) in India. "Grant of high value loans to PSUs is not consistent with the co-operative principles and dilutes the cooperative character of UCBs," the RBI said.
Set up national asset management co to take over bank NPAs: Ficci
........"It is imperative that the Government and RBI should help establish NAMCO to address the challenge posed by stressed assets in the banking system. A pro-active and preventive approach is much desirable if we have to ensure speedy revival of the economy," Ficci President Sidharth Birla said............
Sticky inflation may slow down pace of dollar buying
......“Excessive dollar buying by RBI to curtail rupee gains may come at a cost to RBI. Though RBI hasn’t resorted to sterilisation of rupee liquidity that has so far been created, it may become inevitable for RBI to do so given that inflation continues to be sticky and the risks of inflation in an environment where growth is expected to pick-up cannot be ignored,”............
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