....In a slowing economy, it is natural to assume that NPAs will increase. But in November 2013, K C Chakrabarty, then RBI deputy governor, had observed that the primary cause of rising NPAs was not the global slowdown but deficiencies in the credit and recovery mechanism. In fact, there could still be another factor: the procedure followed in extending and monitoring credit, for which there are significant differences in the approach of PSBs and private sector banks. This difference in approach can be easily identified if .........
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, May 20, 2014
'Inflation to Veer Towards RBI's Comfort Zone'
.......“We now feel more confident that India will emerge from the stagflation type of environment over the next few quarters,” Morgan Stanley said in a research note. It, however, added that inflation is expected to head towards 6 per cent. “The GDP growth is to accelerate by 210 bps over the next 8 quarters to 6.8 per cent. Inflation will finally head towards RBI’s comfort zone of 6 per cent over the next two year,”........
Bhagwati advises Modi to retain Rajan as RBI governor
......Replying to PTI questions, the economist put his weight behind Reserve Bank Governor Rajan, advocating that he should remain at the helm. "I also believe that he (Modi) ought to keep Raghuram Rajan. He is a major economist who commands international respect as well," said Bhagwati, Professor at Columbia University.......
No need to make RBI guv's office political - Jalan
Former RBI governor Bimal Jalan is optimistic about the government's ability to control prices. In an interview to TOI, he said the RBI governor's office should not be dependent on which party comes to power. Excerpts:.........
Read - TOI
Read - TOI
Bank unions issue strike call on May 23 against Nayak report
Giving a strike call on May 23 against recommendations of the P J Nayak Committee on corporate governance in public sector banks, various bank employees' associations said today they would oppose any attempt to privatise state-run banks. Last week, an RBI working committee headed by former Axis Bank chairman P J Nayak had suggested the government to cut its holding in public sector banks to below 50 per cent...........
SMALLER CURRENCY NOTE
An altogether new series of currency notes in different denominations should be issued, but in small sizes, to save heavy cost on printing of currency. Sizes of currency notes were last time reduced about half a century ago when notes of Rs.1, 2 and 5 were quite common in circulation. With coins in the denomination of Rs.10 already introduced, the Reserve Bank of India should now discontinue printing notes of these denominations like it has been done in the case of notes of Rs. 1, 2 and 5. Since the life of lower-denomination notes is quite low, it is senseless to waste public money on printing lower-denomination notes of up to Rs 10. Notes in a new denomination of Rs. 200 can also be introduced.
- Madhu Agrawal, Dariba, Delhi
(Pro)long(ed) Pause
My View on "RBI’s early warning signal suggests Rs 66,000 cr N...":
While the RBI is putting in place systems to bring in some sense of sanity in banking in India, the reality seems to be otherwise. Recently, if newspaper report is to be believed, that a team of CBI officials went to SBI to enquire about King Fisher Airlines NPAs etc. The team returned without any bit of information as SBI reportedly refused to share any information with the CBI. There is no clarificatory response from SBI about this press news. Why should SBI protect a known defaulter and has not classified it as a wilful defaulter? Why should there be such a long pause before every small action taken by banks against KFA? To see Mr Vijay Mallaya enjoying the IPL matches everyday in the cricket stadium while 1000s of KFA employees have not received their salaries and the SBI not prepared to take severe action against the company is something every sensible citizen in the country is entitled to know. Another case in point is the Sahara case. While SEBI claims that 20000+ letters to the investors returned undelivered as addresses were incorrect, RBI is silent without taking any action on the failure of KYC by Sahara group financial companies. Earlier RBI take action in these cases better for the banking system and the public at large.
- Dr.Santhanam
RBI action on NDCCB jolts teachers, farmers
NAGPUR: Many among the 15,000 school teachers in government aided schools in the district may be left high and dry this summer. They went through without salaries from January to March and are facing the same crisis again. Getting salary for May is likely to be tough affair, thanks to the RBI this time.......
HCBL Bank denies Sahara link
.......The Lucknow-based Bank maintained it was an "autonomous banking institution" functioning under dual regulation of Reserve Bank of India (RBI) and Uttar Pradesh Cooperative department. "Sahara Group is only our corporate client like any other customer," HCBL Cooperative Bank CEO Pawan Kapoor said .....
The NaMo factor in the digital economy
On a warm Thursday morning in New Delhi, Prime Minister-nominee Narendra Modi made a bold pitch for IT becoming the face of India, and, in the process, coined the Twitter-friendly phrase ‘India Talent (IT)’ + ‘Information Technology (IT)’ is equal to ‘India Tomorrow (IT)’..........
Narendra Modi is said to favour Arun Jaitley as next finance minister
.........Jaitley’s chances of getting the finance portfolio haven’t been diminished because of his election loss and incoming leader Modi is keen to nominate him, according to the leaders, who asked not to be identified because the discussions are private. Other candidates under consideration include former Cabinet member Arun Shourie and ex-central bank governor Bimal Jalan, they said..........
Banks urged to issue only CTS cheques
.....With the CTS cheques, the electronic image of the cheque is transmitted to the drawee bank by the clearing house. It speeds up the cheque clearance process. Though banks are supposed to issue only CTS instruments, some continue to issue non-CTS drafts and it takes a longer time for clearance. This can be considered as deficiency of service and taken up in a consumer court as it affects the public........
Tirupur exporters urge RBI Governor to arrest rupee gain
.......In a letter to the RBI Governor Raguram Rajan, Tirupur Exporters Association (TEA's) President A Sakthivel said that after the Lok Sabha results, the Rupee has been gaining against Dollar on a daily basis and on Monday morning it touched Rs 58.57 per dollar and is widely expected that the Rupee gain will continue in the coming days also, which may not overall augur well for the knitwear exporters of Tirupur....
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