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.
Tuesday, April 22, 2014
G. Gopalakrishna takes voluntary retirement from RBI
Off the radar, FinMin gets a key adviser
Even while the Bharatiya Janata Party has moved the Election Commission to stop the appointment of the Lokpal and the next Army Chief midway through the election, the Centre has made a key appointment in the Finance Ministry. Ila Patnaik, RBI Chair Professor at the National Institute of Public Finance and Policy and columnist, has been appointed Principal Economic Adviser, a post vacant since November 2013.............
Political over-reach by EC, RBI Governor
........I feel strongly that Governor, R.B.I. should immediately withdraw the permission so as not to create unnecessary lack of confidence and want of rapport between R.B.I. and the new government. Already there is a bias against public sector - this is clear from the fact none of major political parties though at each other's throat in their election offensive has even remotely praised public sector; rather all are promising to encourage private sector - ironically forgetting compulsion for socialism highlighted in the preamble to our Constitution............
Will NaMo And Raghuram Rajan Work Together?
......While other senior market analysts also predict a showdown between NaMo and Rajan once (if) the former comes to power, the BJP leader may also want to consider that the confidence of foreign investors in Indian markets has shown a huge upsurge since Rajan has taken charge. Removing the governor may cause an ill-timed turmoil for a BJP that want to stabilize itself at the center. While the RBI Act of 1934 certainly gives the government the ability to retain or remove Rajan – “The central government may remove from office the governor, a deputy governor or any other director” – it may also be considered that no government has removed an RBI governor in the 80 years since the central bank was instituted...........
Three-in-one tribute to a legend
My View on "Dr N A Mujumdar: In Memoriam : S.S.Tarapore":
This three-in-one tribute to a legend may not have had a parallel. The essay depicts the qualities of head and heart of the departed soul, gives an account of how he reached the commanding position where he stayed for decades and more important, gives an account of how Dr Mujumdar conducted himself in his personal and official life in some detail for those who may aspire to follow his (Dr N A Mujumdar's) path. The closeness of Tarapore to the person has made this elucidation possible. Society of economists, analysts, scholars and students will immensely benefit from this article.
- M G Warrier, Thiruvananthapuram
Fraudulent mails in RBI's name continue
.......The RBI has rubbished existence of such a committee, and its spokesperson Alpana Killawala confirmed to TOI that the mail was fraudulent and said the RBI has been issuing public notices communicating to people not to indulge in any communication or sharing of details to such mails. However, two months later, a new mail, seen as a continuation to the first one, has reached lakhs of people..........
Silence on Next Date of Wage Revision - Will UFBU Perish Like MMS Government ?
.... The next meeting should have happened by now (middle of April 2014 has already passed) but there are not even any hints for the same. However, bankers are as helpless under these leaders as common Indian was during last five years under Congress regime. At last, general public in India has started hoping that their will be fresh set of government - may he Modi or somebody else. They are sure that they will get............
'Pay revision' and 'Pension updation' two sides of one coin
Even if the RBI circular issued in the year 1992 promised periodical pension revision, the rules relating to such revision have to be on the lines of revision in Government for the simple reason that our main argument in support of pension updation is that this has been allowed by the recommendations of the Pay Commission and accepted by the Government and our Pension Scheme is on the lines of the Government Scheme. Benefits of pension updation given by the RBI (thanks to Dr Jalan) to those who had retired prior to 1997 have not been withdrawn as the circular of the Bank withdrawing it was initially stayed by the Bombay High Court and subsequently in its judgement, I believe, has also been struck down. (I hope I am correct on the facts). Many have been saying that 'Pay revision' and 'Pension updation' cannot be linked as these are two separate matters. I have argued in my earlier mails to the Newsletter that they cannot be delinked and the periodicity of both have to be the same which is presently 10 years since otherwise it would not be possible to ensure that all pensioners, who have retired in the same grade but at different points of time, draw the same quantum of pension. In spite of my specific appeal to the knowledgeable community of MT's Newsletter readers to let me know whether there is any flaw in my argument, no one, to the best of my information, has so far touched on this point.
- A.Chandramouliswaran
Not prudent to knock the doors of court
My View on PRR invokes RTI in 'public interest'
The views expressed by the "Anonymous" are his right and graceful vent for and on behalf of serving employees, majority of whom are working under stress and strain. A junior colleague of mine in 2000, now occupying a senior position tells me" Sir, you are lucky; retired, free from office tension, pressure of work - too much these days, no supporting staff . Nothing is secret about remuneration, perks etc. in the computer age and under the RTI. The salary has gone up four/five folds and the number of persons suffering from hyper tension has doubled. Expectations of higher ups are very high. We are not super humans. Can' t say, whether "I" can live a septuagenarian like you, Sir !" I tried to pacify him that the God grant him and members of his family health and happiness, May he jivet sharadh shatam. If the statistics are worthy of belief , see the data of (depleting) RBI staff strength , which the "Anonymous" laments about.
The views expressed by the "Anonymous" are his right and graceful vent for and on behalf of serving employees, majority of whom are working under stress and strain. A junior colleague of mine in 2000, now occupying a senior position tells me" Sir, you are lucky; retired, free from office tension, pressure of work - too much these days, no supporting staff . Nothing is secret about remuneration, perks etc. in the computer age and under the RTI. The salary has gone up four/five folds and the number of persons suffering from hyper tension has doubled. Expectations of higher ups are very high. We are not super humans. Can' t say, whether "I" can live a septuagenarian like you, Sir !" I tried to pacify him that the God grant him and members of his family health and happiness, May he jivet sharadh shatam. If the statistics are worthy of belief , see the data of (depleting) RBI staff strength , which the "Anonymous" laments about.
Year Class I Class III Class IV Total
1985 6358 19645 8674 = 34677
2013 8148 3588 5713 = 17449 *
The staff strength of has reduced -a 'geometrical' regression during last 28 - 30 years. There has been ' tremendous ' man power growth else where in the economy during the same period. The number of bank branches, both public and private banks, their staff strength has nearly doubled in the last two decades. The total staff strength of RBI as on 30-06-2013 was 17449 (* RBI Annual Report). The number of pensioners and family pensioners as on 30-06-2012 was 16250 and 4943 respectively, a total of 21193 (Shri L.R.Parab in the "Retirees' HITGUJ"). The figures by themselves undisputably disclose what the "Anonymous" intends (to)/say(s). Also, it is a fact to be acknowledged that there has been much change, reduction in some functions,(a few functions have vanished), nature of work, off site inspections, procedural aspects etc. necessitating reduction in staff strength. But, do not warrant ' depletion ' as alarming as has been seen/observed in RBI. It is upto you, the Anonymous to direct "XYZ' to initiate action to find a lasting solution for depleting staff strength. I am sure more than 90% of, if not all, the pensioners appreciate the apprehensions of the Anonymous. They are equally baffled /perturbed with the 'conditions' of GOI. RBI pensioners have been fighting for updation of pension for more than a decade .The Forum has been giving solid support to the pensioners' cause for last four/ five years. The Forum has been instrumental to (the idea) hold 'silent morchas' etc.at Board meets. The pensioners want that the issue of updation of their pension which is piercing into their life-span be settled amicably by negotiations/by dialogue. The issues involved, their pros and cons, need to be deliberated at length. Not necessarily by sacrificing wage revision once in 5 years as is hitherto vogue in the industry or perks etc. Who stops GOI to merge DA/DR with basic pay/pension once the percentage of DA/DR breaches 50% ? GOI DA/DR is 100% from 01-01-2014. It has breached 50% twice. GOI has already recommended merger of DA/DR to 7th CPC. The GOI employees and pensioners are hopeful of achieving the same within a month after formation of new Government at the Centre. The merger of DA/DR almost amounts pay /pension revision mid two CPCs excepting benefit of fitment weight-age. The merger has some other benefits too, no need to go into details. The petition filed by three retirees (Retired Employees Association) in Bombay High Court is pending _ may get a 'victory' but unlikely before another 6-7 years/ may be by 2020. LIC pensioners have been fighting for pension updation and 100% DA neutralisation for pre 1997, August pensioners for last 15 years. Despite the 2010 judgement of Rajasthan High Court in favour of pensioners, and the Supreme court and other courts petitions/SLPs flied have upheld the verdict of Rajasthan High court, the fight continues, without tangible finality in sight. (Sorry-I have been repeating the LIC etc.court cases ..) In sum, it may not be prudent to knock the doors of court at this crucial juncture.
- R.G.Nakhate
Dearness Allowance Controversy
.........I remind once again, D.A. for central government employees is paid on the aggregate of Basic Pay, Grade Pay and Transport Allowance. But, bank staff get their D.A. only on their Basic Pay. So................
Human Capital in Banks Emerging Challenges
........Banks need to have pool of qualified and potential work force especially at top level not only to lead the team at present but also to meet the future requirements of the organization. Although most PSBs identify succession planning is an important but little has been done in this regard. Banks have already started experiencing the gaps and likely to continue the situation in the ensuing years also. Of late, to tide over the problem, banks have adopted quick promotion system without exposure to leadership grooming, is really a challenge to PSBs. Hence, there is an imminent need to..........
Read.............
The flow of money
.......For example, when there is a situation of inflation, i.e, comparative price rise, the central bank may decide to tighten the supply of money by increasing the reserve requirements of the banks and the key interest rates. Tightening the supply of money because what happens during Inflation is that lot of money chases few goods. There is money but with a weak purchasing power. Now, banks will have to pay more towards the central bank which reduces the amount of money in circulation. Such a policy is called a Contractionary Monetary Policy........
Read - Greater Kashmir
Capitalist voice
My View on "Raghuram Rajan’s tandava spells death for economy":
Leaving aside the near personal comments against Dr Raghuram Rajan, resorted to, perhaps, to impress the reader about the author’s proximity to Dr Rajan’s earlier employer, let us look at the issues raised. The base rates announced by RBI takes time to make any impact on the deposit/lending rates of banks in India. Economic growth has always been a concern factored in Monetary Policy announcements. Interest rates in India are not comparable to those in developed countries like US where need to manage inflation is not much. RBI is dependent on GOI’s fiscal policy on getting the environment congenial for implementing a Monetary Policy which the central bank considers appropriate. Partly the lament in the article betrays the huge expectations from Dr Rajan about listening to the capitalist voice. Where one can dispute the growth rate in employment, Indian industry, viewed from any other growth parameter has not suffered. Last quarter major companies in India have posted better results. Indian companies, generally, have not been very keen in increasing the numbers on their pay rolls.
- M.G.Warrier
Intervention difficult when currency falls sharply, says RBI
......In a speech at a recent event at Cape Town, South Africa, Reserve Bank of India's Deputy Governor H R Khan had highlighted the importance of building foreign exchange reserves to deal with sudden outflows. "Intervention in the face of the sharp depreciation is a difficult choice for several reasons, including loss of reserves, particularly in a country like India where the external liabilities far exceed the official reserves," Khan said............
High Rates Will Tame Prices, RBI to Tell Next Govt
The Reserve Bank of India (RBI) will explain to the new government the need to keep inflation under control and why keeping interest rates relatively high may be unavoidable to achieve that, government officials familiar with RBI’s thinking said. Further, RBI, which is in the process of formulating new guidelines for bank licences, was unlikely to allow corporate houses to set up new banks in the near future, the officials said...........
Read - ET
Read - ET
Bank licence: Long wait for corporates likely
..........Though the idea of granting bank licences to corporate groups has not been ruled out, a cautious approach will continue to influence the decision making process in this area. The new government that is to be formed next month will also have to be consulted by the banking regulator before a final view on new bank licences for the corporate sector is taken...........
Finmin Favours Merger of Smaller PSU Banks
.......Mergers in state-run banks have been opposed on the grounds that there are cultural and technological differences in their functioning. In the past, the mergers have not only been opposed by the unions but also by chairmen and executive directors as it will also lead to lesser number of posts available. “The primary concern is the branding issue. There's fierce customer loyalty among smaller banks and if you merge them with a larger bank, then you have to look at what happens to the brand and how customers respond,“.............
'India not yet ready for differentiated banks'
............"The differential banking activity licences issued to RRBs and local area banks (LABs) could achieve limited success which prompted authorities to call for large size banks to go for rapid financial inclusion in a time bound manner." It would be very difficult for a differentiated bank to survive by selling only one or two products..........
RBI wary, not against, corp-backed banks: Sources
.......the big preoccupation of the RBI these days is: how to restructure the banking space? It is not at all looking at junking the Mor committee report. In fact, the Nachiket Mor report is the basis of their discussion. The RBI wants to look at various kinds of banks. All banks need not be universal banks,..............
Banking on the wife
...........The bank has been receiving several calls from men asking for loans for their wives and when the bank staff asks them what they will do with the money, the stock answer is, "She will do something, we have not decided yet. You give the loan first.".........
Foreign stake: HDFC Bank says law can’t apply retrospectively
Private sector lender HDFC Bank Ltd. on Monday said parent Housing Development Finance Corp. Ltd. (HDFC), which is majority-owned by foreign institutional investors (FIIs), shouldn’t be considered as foreign because changes in the law defining overseas stake in a firm cannot apply retrospectively. The remarks come in the backdrop of Reserve Bank of India (RBI) banning foreign investors from picking up more shares in HDFC Bank.............
Can't allow non-compete clause in pharma FDI: RBI
........."The extant FDI policy for pharmaceutical sector has since been reviewed and it has now been decided with immediate effect that the existing policy would continue with the condition that 'non-compete' clause would not be allowed except in special circumstances with the approval of the Foreign Investment Promotion Board (FIPB) of the Government of India," ...........
The safety pin
........The additional security measure is a part of global standards for inter-operation of integrated circuit cards at the point-of-sale terminals for authenticating credit card transactions. The microchip stores the information of the card holder and the PIN comes in an encrypted form known only to the card holder.............
HDFC Bank sets Guinness World Record
HDFC Bank has created a new Guiness World Record. The Annual Blood Donation Drive organised by the bank in December 2013 has been recognised as the largest effort of its kind across the globe. "The largest blood donation (multiple venues) involved 61,902 participants and was achieved by HDFC Bank Ltd. (India), with 1,115 blood donation camps held across 709 locations in India on December 6, 2013," states the official citation from Guiness World Record............
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