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| Reserve Bank Governor Raghuram Rajan voted at a booth near his official residence off Peddar Road in south Mumbai |
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 25, 2014
Raghuram Rajan votes
Granting licences to corporate sector tricky affair: KC Chakrabarty
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| Deputy Governor’s job is less challenging than the CMD of a bank |
............ Distribution of currency/coins is a big issue. This is because we have left it to the RBI and banks. The RBI focuses more on distribution, as a result they are unable to monitor whether banks are doing it or not. The view of the government- constituted high level committee on currency management, which I chaired, is that, we must use the private parties (franchise model) for distribution. We have already done it for foreign exchange which has worked well................
‘RBI should be accountable to Parliament’ - Dr.K.C.Chakrabarty
.......Ultimately, the central bank is created by the government … by Parliament. How can I say we will be a separate country? We are not talking about independence, it is about autonomy and I don’t think that is a big issue. Today, we have more autonomy and we have less accountability. Ideally, the central bank should be accountable to Parliament. .............
Read - TOI
If NPAs are high, everybody is responsible: K.C. Chakrabarty
.....f you are bringing somebody from commercial banking, what should be his appropriate role? In fact, somebody must find out why a commercial banker was brought to RBI. When the Board for Financial Supervision (BFS) was created, at that time there was a parliamentary committee which had gone into the securities scam. You read the recommendations of the committee and see what reply RBI gave.* If Reserve Bank does not stick to its own commitment to Parliament, what can I say? Personally for me, it has been a great learning experience. RBI has been very fair to me; it may not be fair to the banking system................
My contrarian views have been vindicated: Chakrabarty
......"Being open and transparent is the hallmark of democracy. As a supervisor, my job is to communicate and shout, create the awareness. (Sooner) you do that, you will get a better result and more you delay, to that extent will be the damage. That is why I am happy about my stint in RBI," ...........
Rollout of ₹10 plastic notes hits technical hurdle: RBI’s Chakrabarty
.............To improve last mile connectivity, the RBI has decided to involve private entrepreneurs in the distribution function. The cash-in-transit companies/ business correspondents have been allowed to process coins and banknotes, including packaging, sorting and delivery to banks’ customers and for retrieval. Banks, including urban co-operative banks and regional rural banks, are also being involved to ensure that last mile delivery of cash-related services penetrates throughout the country. Chakrabarty said the RBI has also initiated a pilot exercise under..........
Inclusion indecisiveness
.........It is somewhat surprising, then, that a road map for implementing the key recommendations of the Mor committee is yet to be outlined. Although hesitancy over this causing the delay has been denied, the fact that the last monetary policy announcement on April 1 did not specifically mention any plans to implement the recommendations lends some credence to the concern. Considering the importance that Governor Raghuram Rajan attaches to the agenda, one of the five pillars on which he is building his financial stability and development strategy, there were expectations of a big push based on the report. However, what seems to have come in the way are reservations..........
BJP will eliminate discretion: Arun Jaitley
..........Asked to comment on speculation that there might be a change of guard at the Reserve Bank of India, Jaitley said, "We are not getting into issues relating to persons. I don't think we have reached that stage at all."......
Start saving in banks: RBI to students
SHILLONG, April 23: Reserve Bank of India (RBI) Deputy General Manager T. Lhundim has stressed on the necessity of inculcating the habit of saving in the banks among the students community of the country. “Students are the future generation of our country so it is very important that we educate them about the importance of developing good financial habit,” Lhundim said. He was addressing the gathering at the Financial Literacy Campaign programme organized by RBI at Tpep-pale Secondary School, Jowai, on Wednesday.
Worth trying scrap gold
My View on "RBI restrictions hit gold flow to Bangalore":
The issues raised here are very relevant. The inherent fear to touch or talk about the huge domestic stock of gold in India is behind the artificial scarcity of the yellow metal and all concomitant problems like smuggling, unrealistic pricing and so on. The fear of gold was captured by K U B Rao in his report on Gold Management released in January, 2013 in the following words:
“Indians’ obsession for large investment in physical gold is the outcome of the confluence of numerous and divergent factors. Given the complexities involved in the lure for gold in India, a holistic strategy that deploys a combination of demand reduction measures, supply management measures and measures to increase monetisation of idle gold stocks needs to be put in place. Creation of an alternative asset class that may provide returns comparable to return on investment in physical gold with similar flexibility is important. A necessary pre-condition for reducing the excessive demand for the precious metal is to ensure benign inflationary environment along with achieving and maintaining macroeconomic stability.”
If there is a will, there should be some way, to exploit productively at least a small portion of the domestic stock of gold which will minimise the need for gold import. There is no escape from standardising a major portion of non-jewellery surface gold and making it available for productive purposes. When every other asset can be accounted, government cannot be apologetic only about gold. Establishment of the Bullion Corporation of India proposed by the Working Group can play a major role in recycling and pooling of domestic scrap gold. In this context, the Committee’s following observation is relevant:
“Temples in India holds large quantities of gold jewellery offered by devotees to the deities. There is also significant amount of scrap gold in the country. Some estimates say that scrap gold that comes into the system is nearly 300 tonnes per annum. It would be worth trying to channel the existing supplies of scrap gold in the country into the financial system, so that the unproductive nature of the gold asset is turned into a financially-productive medium.”
- M G WARRIER, Thiruvananthapuram
Pension updation?? Its Divide & Rule........
Dear Mangesh,
I am writing this out of deep anguish and acute frustration. When the British left India in 1947, the Indian politicians inherited their most lethal weapon, i.e. the divide and rule policy. We thought that our decade long wait for justice by way of pension upgradation finally ended when the GOI allegedly conveyed its "in principle" approval. But, alas it was not to be. By putting conditions such as revision once in ten years, excluding certain allowances from purview of pension and rationalisation of perks, GOI has driven a wedge between the serving and retired officers. Like the Kashmir issue and river water sharing disputes between two neighbouring states, the cleavage of interests between aforesaid classes defies any imminent solution.The result is that those of us who are on the wrong side of seventies will soon end up as items in the Obituary Columns of VITALINFO and/or Without Reserve and oblivion without realising our dream of drawing a decent pension that we deserve.
- B. Kamath, Retd. CGM
RBI v/s GOI pay comaprision
"Discrimination amongst retirees neither just
nor equitable"
In continuation of my comments
posted in VITALINFO on 23-04-2014 :
The position of pay inclusive of all allowances at the minimum (appxly) and at the maximum (appxly) in respect of Grade B and above in RBI vis a vis in GOI (not exact-but-comparable ) is furnished below ................. - R.G.Nakhate |
Ill conceived Government direction
My View on "Need to move an Interlocutory Application":
Points raised by Shri Batki and Shri Parab are Valued points. The pension to RBI Pensioners is to be paid from the pension fund raised from the contribution of the RBI Employees and NOT from the Consolidated Fund of India. As such, imposing of any conditionals by Finance Ministry are not reasonable on any ground and also do not provide natural justice to Pensioners. The Writ Petitioners may like to approach and raise their objections in Bombay High Court stating that the Speaking Order of The Government and the current Guide lines (conditionals) to RBI are contrary and need to be quashed.The pension Updation is to be allowed in the light of recent Supreme Court Judgments and RBI / Govt. to be directed not to make a different category within the pensioners contrary to law. An early hearing by High Court is necessary as many senior citizen are affected by this ill conceived Government direction to RBI by linking to pay revisions / modernization of the allowances of RBI Officers though these allowances are not paid to the pensioners.
- Capt. C B Gupta
NPS doors opened for people above 60 taking up govt jobs
........“Keeping in view the difficulties being faced by subscribers, the authority has now decided to enrol all eligible government employees into NPS, irrespective of the age at the time of entry, subject to the condition that the total period of contribution to the NPS account shall not be more than 42 years,” .........
A new economic agenda
........The Indian financial system also suffers from a hangover of cronyism and corruption which has left government budgets on the verge of bankruptcy. This too needs fixing. It cannot be rectified by a Reserve Bank of India vitiating the investment climate with an obsession to contain inflationary pressure. It is like killing a patient to lower his body temperature..........
IFC, partners focus on e-payment systems for India’s low-income households
........Addressing the workshop on future challenges, Vijay Chugh, Chief General Manager in the Department of Payment and Settlement Systems, said, “There is an urgent need for all stakeholders to collaborate to enable access to an efficient payment system for the unbanked and under-banked population at an affordable cost. This is envisaged in the Reserve Bank's vision statement.”........
Bandhan to appoint consultants for banking foray soon
....."We are talking to various consultancy firms like KPMG, BCG, McKinsey and Ernst & Young, among others, for appointing a consultant. We will shortly give a mandate to one of them," ........
Forensic audit no solution to unearth the facts
...........The RBI mandates a failsafe warning mechanism to effectively monitor bad loans by putting in place appropriate flagging indicators. Already in place are a plethora of checks and balances from bottom to top for reporting on shortfalls in securities, exceeding drawing powers, day-to-day on-line reporting requirements, ratification requests...............
Gujarat HC Restores RBI's Power to Decide NPA Period
........"Section 2(1)(o) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act is held unconstitutional," the bench of Chief Justice Bhaskar Bhattachrya and Justice J B Pardiwala said. The High Court also observed that the Parliament was wrong in taking the power to decide NPA guidelines away from RBI. Before the amendment in 2004 to the Act, RBI was the regulator for the banking, non-banking institutions and securitization agencies for deciding the period after which the loans can be treated as NPA. Till 2004, RBI had set the NPA period for banks at 90 days, and at 180 days for NBFCs.........
Minus JKB and HDFC, banks miser at lending in JK
Srinagar, Apr 24: Not only the nationalized banks operating in J&K are conservative in lending but performance of most private sector banks in providing loans in the State is even worse.
A cursory look at the performance of banks reveals that these banks are accumulating huge deposits in the state while their contribution to the credit portfolio in the state is negligible........
Read - Greater Kashmir
A cursory look at the performance of banks reveals that these banks are accumulating huge deposits in the state while their contribution to the credit portfolio in the state is negligible........
Read - Greater Kashmir
IndusInd Bank to foray into asset reconstruction
........."I think our new initiative, which is going to launch in the next two months, is about asset reconstruction. We will do asset reconstruction within the bank but in tie-ups with ARCs. The business plan is ready. We believe a huge stock of assets is coming into the ARCs as a business area that we need to look at and we will exploit," ........
Markets await revamped IIBs from Reserve Bank
.......“The poor appetite is mainly because it is not transferable, that is, it cannot be traded in the secondary market and premature redemption is allowed only after three years with a penalty,” Mr. Khurana added. It will be difficult to quantify the exact demand for the product, but with the gross borrowing programme at Rs.6 lakh crore (approximately), “this could catch the interest of investors provided there is sizable liquidity created through continuous issuances”.............
Yes Bank appoints two new directors amid legal case
.......The new directors have been appointed “in accordance with extant Reserve Bank of India (RBI) regulations and the New Companies Act 2013”, the bank said in a statement. It also announced the formation of two new committees, IT strategy and CSR (corporate social responsibility), as mandated by the new companies law. Yes Bank is one of the respondents in a case filed in the Bombay high court by Madhu Kapur, wife of late co-founder Ashok Kapur, demanding the right to nominate directors to the bank’s board..........
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