Read - Mint
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Monday, May 12, 2014
Governor’s freedom
Read - Mint
I am the boss, fire me if you want: Raghuram Rajan
......“I determine the monetary policy. I say what it is. The government can fire me, but the government doesn’t set the monetary policy. So, in that sense, am I independent! Well, I am happy to talk to the government. I am happy to listen to the government but ultimately the interest rate that is set is set by me,” ........
Raghuram Rajan stresses independence from govt
...........“The key question is what kind of equation do you have with the government? I determine monetary policy, I say what it is,” ............
Why a Raghuram Rajan-Modi team can be good news for India
One is amused and yet troubled by the recent media discussion on the non-issue of whether Raghuram Rajan will continue as RBI Governor in case a Narendra Modi government takes over. This is a non-issue because whether we look at the matter from Modi's point of view or Rajan's. Their staying together is such an obvious win-win outcome that it is a no-brainer. Indeed,the two are made for each other and the country badly needs both of them.
Read more at: Read......
A Modi Victory may Not be Music to Rajan’s Ears
....Surging inflows could create twin problems for Rajan – appreciation of the Indian rupee which could erode the country’s competitiveness in international markets and a slowing down of exports. If he buys up the dollar flows, he would release rupees into the system and that could aggravate an already elevated inflation. So, damned if he does, and damned if he doesn’t. However, some experts said this wouldn’t be a problem but an opportunity.......
Rajan has failed, will have to go, says Swamy
...... “If Rajan gets one more term you can safely say bye to all investment and therefore high growth in this country … he’s from [University of] Chicago so he is not fit for this country … there they believe that more free market the better but in India market failures take place and you’ve got to correct for that.” “We need to immediately drop interest rates … doesn’t mean that we do it in one go … there can be a road map but businesses must know that cost of capital will come down.”.......
Filing tax returns? Give more details this year
.....Many employees get house rent allowance (HRA), leave travel assistance (LTA) and travel allowance as part of their salaries. These allowances are exempt if certain conditions are met. Till now, the taxman had no issues if you mentioned a consolidated figure in your return, but now he wants to know how much you received under different heads. “You will have to separately mention the figures for, say, HRA and LTA,”......
Read - ET
Currencies, Counterfeits and Confidence
..........By that norm India is still far from facing problems. The RBI’s currency department, through the bank’s spokesperson, says firmly: “The security features in genuine Indian banknotes have not been breached.” A directive to withdraw by March 2014 (later extended to January 2015) all pre-2005 notes stirred rumours it was meant to tackle counterfeiting, but the RBI says it was simply a regular process: “Earlier we withdrew older series banknotes in a passive manner where the banks were instructed not to re-issue such notes and send back those notes to RBI for disposal,” says the spokesperson. In the past few years banks were told to do this for all notes of 100 and above printed prior to 2005. “In the current withdrawal plan we have involved the public also,” says the spokesperson. ...........
Read - ET
Know a forgery to catch one
.......Fake notes have no value. When you give them to the bank, they get impounded and you get nothing in return. So before accepting notes, especially high value ones, verify their genuineness by checking at least three or four features. The website www.paisaboltahai.rbi.org.in has all the details about identifying fake notes of various denominations............
The rupee, the dollar and election results
.....Its precipitous fall at one stage, in September, amidst mounting current account deficit (CAD) threatened macro-economic stability. As is well known, the deft measures undertaken by the government and the Reserve Bank of India (RBI) helped in stabilising the rupee. The regaining of overseas investors’ confidence is material to any discussion on the financial markets. More visible than any other financial market, the stock market has been reflecting the overseas investors’ confidence......
NPA also refers to non performing administration: K C Chakrabarty
........“The issue of NPAs is due to Non Performing Administration. Discipline is required for everybody, even bankers and borrowers also. If we don’t resolve the issue of NPA quickly then it will be a big problem. Action should be taken against borrowers who do not cooperate”.........
QNB Group: India’s economy is on the mend
.......The centerpiece of policy actions was the tightening of monetary policy since last July, with the Reserve Bank of India (RBI) draining liquidity from the banking system, limiting access to borrowing from its discount windows and hiking short-term interest rates. In addition, limits on foreign investments and external commercial borrowing in foreign currency were eased in order to allow more capital inflows. Moreover,..............
Banking Law and Practice in India
.........he Reserve Bank’s efforts to trigger the country’s growth has necessitated rewriting, enlarging, amending, substituting several new facts and chapters to update the original book to keep pace with the needs of the emerging economy. Electronic Banking, Cyber crimes have led to amendments in the Indian Evidence Act and Srinivasan has added a new Chapter on “ Bankers’ Book Evidence Act.” The new Sarfaesi Act, the Recovery of Debts to Banks and Financial Institutions Act, 1993 have been dealt with at considerable length and the readers provided with up- to- date case- laws and interpretations furnished of these dynamic subjects.........
Read - Book Review by P.P.Ramachandran
Banks feel RBI's move won't boost business
......."We don't have the culture, the environment that RBI wants to inculcate in children. Parents nowhere will want to relinquish the control they have over their child's expenses. The current joint account products more than suffice this requirement. Moreover, the situation in developed countries, where children leave home at a very young age and need their own account, isn't the same here as most minors stay with their parents till at least they're 18," ........
RBI directive makes street kids happy
........Thirteen-year-old Raghav said: “Opening a bank account will help me save around Rs.100 daily. I earn Rs.300 by picking bottles and rags at stations, but I am forced to spend the money every day since there is no place to keep it safe. My money often gets snatched by my peers or the police.”...........
Eleven held for Internet banking fraud
...........Investigations were taken up after two complaints were received in May. The first complaint was filed by a Reserve Bank of India manager who alleged that the central banking institution’s name was being used in fake e-mails and phone calls. ..........
It's never too early to learn about money management
.... "Today, it is important to expose children to banking because we have moved towards non-currency-based monetary transaction and electronic currency." It could be for this very reason the Reserve Bank of India (RBI) has said children above 10 years can open and operate savings bank accounts independently.......
FinMin for tightening banks' exposure limits
.....According to the Reserve Bank of India (RBI)'s current prudential credit norms, a bank can't give loans in excess of 15 per cent of capital funds to a single borrower. The cap is 40 per cent for the borrower group. The government is discussing with RBI and public sector banks (PSBs) on whether to lower the cap for small banks, as well as others not performing well due to high levels of stressed assets......
Bharatiya Mahila Bank says no need to raise capital at present
...Finance Minister P Chidambaram had recently said the government would offer all financial assistance to the bank if required. "The year has just started and as of now we don't need (funds). As we grow, we will certainly raise funds," the bank's chairperson and managing director Usha Ananthasubramanian said.......
Yes Bank-L&T Finance deal: is it for real?
....Even though Gandhi has said RBI would have no objection if an unsuccessful banking applicant wants to buy a substantial stake in a bank, a question remains. How would an entity which was not considered fit and proper to set up a bank be allowed to acquire a bank? Besides, RBI has strong reservations about a non-banking finance company (NBFC) taking over a bank. There have been cases though where banks and financial institutions have taken over NBFCs. .............
Raghuram Rajan seen hamstrung by inflation on weak monsoon
India’s prediction for a below-average monsoon this year is fuelling concern that inflation will quicken, limiting room for Reserve Bank of India (RBI) governor Raghuram Rajan to cut interest rates to revive the economy............
Open letter to the next PM: Banking sector faces a challenging task
.......Financial Sector Legislative Reforms Commission calls for a unified regulator for the financial services sector which will regulate insurance, capital market, pension funds and commodities derivatives market (the RBI should continue to exist outside the unified regulator although with modified functions of setting monetary policy, regulating banks and payment systems). Although a move to a single regulator may be premature in India's context, the new government within the present framework can improve coordination and clearly delineate responsibilities among existing regulatory agencies..............
Governor’s assurance to APCOB
Governor E.S.L. Narasimhan on Friday agreed to issue a letter of recommendation to NABARD ( National Bank for Agriculture and Rural Development) and the Reserve Bank of India to provide uninterrupted re-finance support to APCOB (AP Cooperative Bank Ltd) during the interregnum period of the State’s bifurcation process........
Kashmir business community flays nationalized banks for conservative lending
..Chairman, Kashmir Economic Alliance, Muhammad Yaseen Khan blamed the negligent approach of state government and RBI which according to him has given a “free hand to public sector banks in Kashmir to ensure flight of capital to outside places.” “It is a grave issue which needs to be dealt with strictly. Business community must wake up as these banks are taking the local people for a ride, by accumulating huge deposits in the state but adopting measly approach while lending,” Khan said. He adds that banks are a business houses which work by the principle of give and take. “But here banks like SBI and PNB are just taking the deposits of business community and when any young entrepreneurs or businessman approaches them for advances, they show rigid approach thus discouraging new start-ups,”.....
SC questions regulators' role in Saradha scam
........The Court order, which came on Friday, said: "Investigation conducted so far puts a question mark on the role of regulatory authorities like Sebi, Registrar of Companies and RBI, within whose respective jurisdictions and areas of operations the scam not only took birth but flourished unhindered."............
CBI to form special investigation team to probe Saradha scam
.....The CBI will form a Special Investigation Team (SIT) to probe the multi-crore Saradha chit fund scam in which investors in West Bengal, Odisha and Assam were allegedly duped of Rs 10,000 crore. The SIT will also examine the role of market regulators like SEBI and the RBI......
Regulators take stock of risks posed by subsidiaries of HDFC Group, ICICI Group and Kotak Group
.....The inter-regulatory forum (IRF) - which has representation from the banking sector regulator Reserve Bank of India (RBI), securities market regulator Sebi as well as regulators of insurance and pension sectors - is in dialogue with all stakeholders to come up with an acceptable assessment of risk being posed by the subsidiaries on the parent groups,
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