.............While the RBI has, understandably, tried to avoid undue interest rate volatility at the financial year-end by providing liberal access to banks under the term repo facility, this has the unintended effect of actually encouraging window-dressing. Window-dressing is a counter-productive activity and while,...........
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, April 4, 2014
Government appoints R Gandhi as deputy governor of RBI for 3 years
............Significantly the appointment was notified a day after the central bank gave in- principle approval to two entities to start a bank. RBI had shortlisted three of its executive directors' to succeed Anand Sinha who retired in January this year including R Gandhi, P Vijaya Bhaskar and B Mahapatra...............
Read - ET
VITALINFO on behalf of all its readers extends Heartiest Congratulations and Birthday wishes to Shri R.Gandhi.
Pragmatism Wins the Day
..........In contrast, the average tenure of RBI governors has been less than five years. Manmohan Singh was governor for little over two years. Even so, six months is too brief a period to pass judgement on the performance of RBI governor, Raghuram Rajan. With that caveat in place, I dare say..............
Read - ET
RBI's welcome conservatism
.........Perhaps the RBI has a longer game plan. In its statement, it admitted that its approach was "conservative" and opened up the prospect of more licences being issued over time, particularly within the differentiated licence framework that was proposed last year. This implies that more specialised and bounded institutions with a focus on inclusion are likely to be issued licences soon. But, going beyond licensing issues, the fact is the future of Indian banking, including the goal of ............
Will New DG Live Upto Expectations and Give New Direction to RBI, PS Banks and Their Employees ?
........Although Chakbrabarty had headed two PS Banks, he never realised the pitiable condition of their employees. As and when he got a chance, he showed his outbursts against PS bank officers and blamed them for the rising NPAs and other ills. He also felt strongly that PS bank employees are over-paid and better paid than private sector banks. This has done the biggest damage to the credibility of PS Bank staff, who are still struggling with IBA for wage revision which is already over 17 months overdue. ........
Annual General Meeting of RBI Retired Employees Association Ahmedabad
Dear all
The AGM of RBI Retired Emp. Association was held at RBI Officers' Lounge RBI Main Building Ahmedabad on 30 March 2014. Shri T.G.Nair General Secretary of All India Retd. Emp. Association was also present. While addressing the members shri Nair struck an optimistic note about pension updation. He was confident about sorting out of various conditions put forth by Ministry of Finance through the good office of the governor. He called on the members to be ready to attend another Special General meeting to celebrate pension updation. Post meeting dinner was hosted by RD RBI Shri Sudarshan Sen for which a formal letter of invitation was also sent to all retirees by RBI. About 400 retirees attended the meeting with their spouse. The terrace of Officers' Lounge was jam packed. The Bank also greeted retirees with the gift of a pen and the spouse with a rose flower. It was very good gesture on the part of RD RBI Ahmedabad for which he was thanked by all. After conclusion of the meeting, Shri Sudarshan Sen RD and Shri V.S. Das former ED also joined the gathering. Both of them addressed the gathering. This was followed by a short musical evening in which old Hindi film melodies were rendered by S/Shri Sen, Das, Bhatt, Dhondiyal and a few others. Thanking RD, Shri Nair said that this is a very good beginning by Ahmedabad Office which may be replicated at other centers.
- M.L.Maheshwari
Obituary
Mr. P.V. Subramanian, Retd. RBI, Kolkata passed away on 30.03.2014 at Bangalore. Phone: 080-4953 0572.
Silent on the issue......
My View on "Bankers ask EC to bar defaulters from LS polls":
This request is being made prior to every elections but the Election Commission chose to remain silent on the issue. If the Financial institutions have to be cleaned up, this is very important. It is also important that the Directors who have track record of being defaulters should also be disqualified on the Boards of Banks and FIs, Insurance Companies and NBFCs.
- Yerram Raju
Well done RBI
....The present decision reflects RBI's maturity and the continuous future responsibilities it has, to have a very healthy banking to cater to the needs of equitable development of the economy. Well Done RBI, the only Institution which can be proud of for its integrity and Corruption free practices. The nation also can be really proud of for having such institutions ............
This we call as autonomy!!
My View on "Justice delayed is justice denied..............":
I opted to retire from the SBI when I was a Regional manager in 1994 when my basic was Rs.11550 but pension pegged at not half average pay but at Rs.4250 as applicable then. Now my pension is around Rs.15000 a month including the DA. All the appeals in various courts hang on indefinitely because these are not so important issues for them. For the SBI, the Chairman says the clearance from the Finance Ministry is required and they are sitting tight on this issue for decades. Those who retired between 1993-2000 are very few survivors - in just a couple of thousands and the liability from the pension fund would be minimal compared to the outgo for those who sought voluntary Retirement under a specific scheme and the regular retirees. What should be in the domain of Bank's decision has shifted to Government and this we call as autonomy!!
- Yerram Raju
Herculean task
My View on "RBI will act on data surprises that are durable: R...":
The observation “Banks’ compulsory bond holding now is 23% but they hold close to 29% and up to 24.5% holding, they do not need to trade.” and Dr Rajan’s response which read:
“We will look at both those issues. To the extent that the new government can provide an assurance that the fiscal situation is under control, we can move to bring SLR down, purely as a way of reducing distortions in the system. We can’t bring it down so far that we hit liquidity coverage ratio limits, but we will bring it down to the extent we need, consistently and prudentially. It is good for the economy if there is a credible, sensible fiscal consolidation path the new government lays out.” are loaded with much deeper apprehensions about the fiscal policy management. Both the temptation for banks to park more funds in SLR securities and the likely chaos that may emerge in ensuring ‘buyers’ for government securities if banks unload their holdings are issues to be tackled. Creating a real time market for such securities, which is a pre-requisite even for the Government’s pet project of transfering Public Debt Management from RBI to GOI, will call for confidence building of a much higher level, which for the present looks a herculean task.
- M G Warrier, Thiruvananthapuram
Why RBI’s decision on a Post Bank of India is a slap for Finance Ministry
.......While prior clearance of their parent company was necessary for the private players who had applied for a license, for the postal department, it was the clearance of the government of India, or more specifically, the finance ministry that was mandatory. Without such a clearance, the RBI could have rejected the application, which it didn't do.............
Retain PSU bank talent or face national calamity: RBI Rajan
...........Though Rajan did not confirm whether any market-based remuneration or lateral hiring for PSBs is on the cards, he did say discussions are on with the government on the matter. "We have to ensure that these banks have the capacity to compete and many of them recognize what needs to be done and have started on the path, but we should support them,"
Location, governance gave Bandhan edge over others
.........“I would think geographical location was a key factor. Bandhan is located in East India, most of which is financially excluded. While economic growth in certain eastern states like Bihar has picked up in recent years, there still are a lot of unbanked villages in this part of India. To my mind that could be one of the main reasons,”.............
Many more entities will get banking licence
.......Even if it is two the good thing is that we have made a beginning. Now the thinking at the government and the RBI level is that we should have a system where licences can be given on tap basis............
Read | Business Standard
Read | Business Standard
Housing finance firms approach NHB, say banks poaching customers
.............."We are serious about this issue. We are looking into the extent of the problem, categories in which the loans are being taken over and the impact of it. When this data is available, we will analyse the situation and look for solutions.".............
RBI comes to Kerala’s rescue
The Reserve Bank of India (RBI) has granted some respite to the State government by allowing it to issue bonds worth Rs.1,000 crore that might help it tide over the financial crisis for the present. Finance Department sources told The Hindu here on Thursday that funds mobilised by issuing bonds would have to be expended totally on paying salary and pensions............
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