...............RBI Governor Raghuram Rajan's initial brief to the committee was that it should take such recommendations into account in designing the framework. A second and persistent criticism of the RBI's approach has been its use of the wholesale price index (WPI) as the benchmark for inflation, when virtually all other central banks use .........
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.
Friday, January 3, 2014
2014 may not see interest rate reversal
.......... The divergence between core WPI and core CPI has increased so much that I do not think there will be any drastic action in interest rates. But if RBI wants to see the transmission to happen, then it will have to control liquidity. There may be CRR increase of 50 basis points this year to tighten the liquidity so that transmission will happen. RBI may go for........
The Missing Piece in Bancassurance
...True,
there is a vacuum in most banks following large-scale retirements, and
there are daunting issues of training many new recruits on banking
aspects. It is, therefore, unrealistic to expect the frontline staff to
become experts at suggesting insurance solutions for multiple insurers
in the near future. While our extensive banking network should aid
greater insurance penetration, this cannot be achieved by compelling all
PSBs to become insurance brokers overnight. It has to be a............
Read - ET
Reserve Bank plans to test-market plastic currency this year
You may be carrying plastic money in your wallet till now in the form of credit and debit cards but soon you will also have a `10 plastic note by your side. The Reserve Bank of India (RBI) is mulling over the introduction of plastic currency to resolve the issue of wear and tear of paper notes. Plastic notes will increase the life of a note. RBI is planning a pilot project of `10 notes and will print such notes worth `100 crore. It has completed the process of issuing tenders for this purpose. In an exclusive chat with Zee Business, RBI deputy governor, K C Chakrabarthy (pictured)said, “We are starting on trial with one ........
Fears over scribbled notes despite RBI clarification
.......... The RBI has clarified it has not issued any such instruction,” said the RBI, in a notification on New Year ’s Eve. However, many people complained that shopkeepers have stopped accepting notes with scribbles, stating that they were now out of circulation owing to an RBI directive. Kanchan Bisht, a Delhi resident, said: “While paying my electricity bill, the official refused to accept a scribbled note and said such notes are no more valid. Then I was told that the RBI has issued some instructions in this regard.”..........
Ease in getting student loan
.........The committee, headed Damodar Acharya, Director on RBI’s Central Board has asked the banks to create awareness among students and their parents regarding education loan by organizing several camps and guide them about loan recovery and sanction process. Further the committee recommended that..........
More points to pension this year
.....“A few years back, NPS wasn’t very popular. In fact, if you look at the number of subscribers you would still find it small. But this year (2013), we have seen the popularity surging. People are realizing the need to invest for retirement and are increasingly becoming aware of NPS’ benefits. From here on, we should see more people lining up for NPS,” ............
BCSBI’s code of banks’ commitment to MSMEs is a mere lip service
.............. This is not the only issue. Getting a loan application acknowledged is also a gigantic task. Looking at the issues faced by MSMEs inborrowing money from banks, one really wonders as to why this happens, when there is a code of banks’ commitment to micro and small enterprises. These codes are set by Banking Codes and Standards Board of India (BCSBI). Let us look at some of these codes to see how seriously these codes are followed by the banks:..........
National Payments Corporation of India convenes banks' meet on ATM charges
........Most public sector banks are against a hike in charges. This is because on a net basis they end up paying for their customers using ATMs of other banks. Such banks are referred to as net issuers as the cards they have issued exceed the number of ATMs required to service them.........
Banks free to charge 'reasonable ATM fees': RBI
: Amid growing clamour from banks to charge customers for transactions at ATMs to make them economically viable, RBI Deputy Governor K C Chakrabarty today said the regulator will have no objections if the lenders charge "reasonable fee" for such services. "If banks charge a reasonable fee on ATM transactions then the RBI will have no objections," Chakrabarty, in charge of banking services at RBI, told reporters on the sidelines of an event here this evening...........
Taxmen train eyes on Bitcoin community
.........The ‘visits’ by I-T department come a few days after the Enforcement Directorate (ED) raided India’s biggest Bitcoin trading platform and a week after the Reserve Bank of India (RBI) issued an advisory that warned the public of the risks involved with virtual currencies. A team of close to 15 tax officials `visited’ Tumkur-based Coin Monk Ventures, a Bitcoin mining start-up that creates the digital currency, on Wednesday.........
Do you have good banking habits? A checklist!
Banks are the safe haven for parking one’s money and debit cards are a boon to avoid carrying bulky purses and wallets while also ensuring increased saving. However, banks have strict regulations which have been put in place to protect their own interest as well as those of the customer. If the customer breaks any of the regulations they are levied a penalty which can be an expensive affair and eat into the profit you earn in the form of interest when you maintain a balance in the savings bank account. We discuss here the bad money practices that might invite additional bank fees.........
Why FinMin wants public sector lenders to rush into selling insurance
...........Why is the finance ministry asking banks to open broking shops? Bankers said, one of the reasons might be the non-performing asset (NPA) norms. In the draft guidelines, one of the eligibility criteria is that, the net non-performing assets of a bank should be less than three per cent for the previous financial year...........
IBA Protests RBI’s Diktat on Policy Sales
....Indeed,
chief executives of many PSU banks had expressed reservation over the
finance ministry ruling during a meeting in Mumbai last week. Also, IBA,
in a letter to the finance ministry, pointed out that since many banks
have exclusive tie-ups with insurance companies, it would be difficult
for banks to follow this mandate..........
SBI, AXIS, ICICI and UCO Bank are charging for IMPS transactions
.....The RBI policy of forbearance (allowing bankers to decide charges themselves) with regard to service charges leads to the frequent hikes in banking service charges. Banks are charging money for almost every small transaction or service they offer........
An Indian women's commission wants to restrict gold at weddings
...........the Kerala State Women's Commission is proposing a law that would restrict the amount of gold that can be used in a wedding – limiting what a bride and groom can each wear. C Rosakutty of the Commission said the measure "may reduce the affinity to wear the gold." The Reserve Bank of India sees gold as a major contributor to the country's current account deficit and has been implementing a series of measures aimed at reducing imports...............
Subscribe to:
Posts (Atom)