...........While the nature of ties between North Block and Mint Road have tended to fluctuate, the statements by Jaitley and Rajan signal a relationship that may be cordial rather than frosty as had been speculated...............
Read - ET
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.
Wednesday, May 28, 2014
Rajan meets Jaitley; discusses inflation, economy
.....The meeting, which comes just days before the next bi-monthly monetary policy review on June 3, lasted for about 50 minutes. “It (curbing inflation) is absolutely a task that the government and the RBI are engaged with,” Mr. Rajan told reporters after the meeting.........
RBI’s goal is to balance growth, inflation: Rajan
.............“It’s absolutely a task that the government and the RBI are engaged with,” Rajan said when asked if curbing inflation was going to be one of the biggest tasks for the government and the RBI. But Rajan also added: “RBI has always maintained the balance between growth and inflation.”.............
Arun Jaitley's job: Unleash animal spirits
...He has consistently raised doubts about the health of the economy during his stint in the opposition. A shrewd lawyer, he is at home with numbers as well as the policy maze. "He is a first-rate choice. The challenges are multiple. In a country like India, the finance minister's job has several challenges. Preparatory work for the next Budget will be a difficult task," said former RBI governor Bimal Jalan.........
Workshop on Audit of Urban Cooperative Banks
Technical Session I-9:45 a.m. to 11:15 a.m
What RBI expects from Auditors/CAs of UCBs in their Audits?
By: Mr.A.K. Bera, Principal CGM, UBD-RBI
CHANGE IS POSSIBLE…
My View on "India needs Many More Raghuram Rajans":
We need to follow ‘WE THE PEOPLE’ Ref: Preamble of India’s CONSTITUTION) AND BE PRACTICAL AND PRAGMATIC. We should, as a beginning has been made in this article, think beyond sectoral and ‘political’ interests. Let us understand the INCLUSIVE SECTOR comprising public sector, privat sector and the one billion Indians who were given denominations and classifications so far. Modi, Raghuram Rajan, Kejriwal, Medha Patkar, APJ Abdul Kalam, Bimal Jalan, Nehru, Gandhi, Lal Bahadur Shastri, Bajpayee, Sreedharan…the list can go on and on…all have/had dreams about INDIA…The recent awakening has shown that CHANGE IS POSSIBLE…
- M.G.Warrier
N(on)R(esident)I(nterest).....
My View on "Why bank depositors deserve tax-free interest":
A sound well analysed commentary on the wrong policy of GOI. While an ordinary Resident Indian is taxed on his hard earned savings post tax on his gross income minus rebates allowed, a Non Resident Indian is enjoying tax free interest of 9% and plus! The NRE deposits have more than trebled since the NRE deposits started earning tax free interest at or more than domestic rate of interest. What an irony of fate of not being an NRI! All investments in bank deposits, stock market etc. should get the same equal treatment in regard to taxation. The article deserves due consideration by the new Government by the new FM, the MOF while presenting this year's budget proposals.The middle class and the lower middle class Resident Indians would always like to put their money in banks as majority lost money invested in the market or MFs during last 4-5 years.
- R.G.Nakhate
Sketching the Genetic Code of A Good Bank Is Tough
..... All this can originate from a robust “genetic structure“
based on the strands of DNA that combine together. The most recent
guidelines on bank licences did touch upon this. So, can we sketch the
genetic code of a “good bank“ ?
The genome of a commercial bank should start with the lineage. We are
talking here of lineage of ideas. Ideas flow from experience,
environment and understanding of the changing face of consumer..............
Expect CAD to be in control in FY15 as well: C Rangarajan
............The next key cue for the market would be Reserve Bank of India (RBI) bi-monthly monetary policy review on June 3. In an interview to CNBC-TV18, Rangarajan said that interest rate actions will largely depend on inflation trajectory. “Only when inflation cools down, monetary authorties take a call on rates,”
Run up to monetary policy: Hawkish stance to weaken rupee
...Today RBI governor Raghuram Rajan said in New Delhi that fighting inflation would continue to be a top priority for the central bank. However, he is also added RBI will aim to strike a balance between growth and inflation......
Reserve Bank of India asks banks to remit unclaimed deposits to DEAF by June 30
.............Banks should calculate the cumulative balances in all such accounts with unclaimed deposits, along with interest accrued till May 23, 2014, and transfer them to the newly created fund, the Reserve Bank of India (RBI) said in a communication to bank chiefs. After the first transfer of amounts, banks should transfer amounts becoming due in each calendar month on the last working day of the subsequent month.
A new deal for public sector banks?
.....It is difficult to guess just how the new government will receive the Nayak recommendations on how PSBs and private banks should be run. The committee finds considerable faults and weaknesses in bank board governance -- faults and constraints that impede the functioning of banks in an era of fierce competition, premium on profitability and high risk. The starting point for the committee is to identify those constraints on public sector banks which their private counterparts don’t have. “These constraints encompass dual regulation (by the finance ministry, and by the RBI, which goes substantially beyond the discharge of a principal shareholder function)…”
Open ‘small accounts’ sans required documents, RBI tells banks
............In a bid to increase access to banking services, the RBI has advised banks to open ‘small accounts’ even without asking for the mandatory documents. RBI Deputy Governor R Gandhi said recently that a small account can be opened by merely filling up a form, signing it before a bank officer, and submitting a self-attested photograph certified by the bank officer. At present, over 50 per cent of Indians have no access to formal banking channels...............
When Minting Rs 1 Coins Was Cheaper
..........RBI deputy governor RK Seshadri took up the matter with the government,
and later governor S Jagannathan followed it up with finance minister YB
Chavan and advocated a change-over from one-rupee notes to one-rupee
coins. RBI had decided to do this shift in a phased manner because of two reasons. One,
RBI was not too sure how the general public would take the change and,
second, it was worried about the cost of destroying the spoiled notes.
At a result,...........
Fake currency racket linkman arrested
...."The seizures also showed that currently the highest number of counterfeit notes was found in Rs 100 notes, followed by Rs 500. According to RBI norms, if 15 fake currency notes are found in every 10 lakh notes of of Rs 100 denomination, the situation is alarming," ........
P J Nayak report implementation can improve ratings of public sector banks, says Fitch Ratings
....."Should the (PJ Nayak report) recommendation lead to a greater separation between the state and bank, it could necessitate a reassessment of our current assumptions on the propensity for extraordinary support for these banks. This has been an important factor underpinning the capitalisation of many PSUs, as this reassessment could have a potential impact on their issuer default ratings," Fitch said in a note.
RBI cancels registration certificate of 3 Kolkata based NBFCs
The Reserve Bank of India has cancelled certificate of registration of three Kolkata based non-banking financial companies (NBFCs) as they were carrying on business of non-banking financial institution (NBFIs)..............
Read more at: ET
Rate cut: RBI may not oblige
........ the support of the Reserve Bank of India (RBI) will be sought to complement its growth agenda by relaxing the tight policy stance. The central bank is unlikely to oblige. We expect RBI will keep the benchmark repo rate unchanged at 8% at the early-June review. Not for nothing will RBI Governor Raghuram Rajan stand his ground and assert institutional independence............
SIT to go after black money
...........“The SIT will have high-profile government officials like Revenue Secretary, Deputy Governor of Reserve Bank of India, Director of Intelligence Bureau, Director of Enforcement Directorate, Director, Central Bureau of Investigation, Research and Analysis Wing chief, Director-General of Revenue Intelligence, Chairman of the Central Board of Direct Taxes and Director of Financial Intelligence.” He said the constitution of the SIT indicated the commitment of the government to pursue the issue of black money in right earnest.............
Banks, ATMs Yet to be Disabled Friendly despite RBI Direction
...Total 70 ATMs and cash deposit machines and kiosks of 18 commercial banks are functioning in the district. While the ‘normal’ customers take benefit of the services, the customers with physical disabilities continue to suffer.........
Debit card transactions recover after brief slump
............But transactions recovered to Rs 3,835 crore in January 2014 and Rs 7,435 crore in February. But this was still below the November 2013 figure. The data of March and April is yet to come out. Bankers say there are indications that it would have surely grown beyond the November level. Many say the bigger issue is of increasing usage of debit card at the ATMs where the transactions are negligible at merchant outlets. Today, the value of debit card transactions at merchant outlets is less than five per cent of the total transactions that takes place every year. People use debit card more often for cash withdrwal through ATMs................
Smaller private banks to opt for white-label ATM to reduce cost
.....Despite the fact that the Reserve Bank of India had given an in-principle approval to WLAs in mid-2013, the roll out of these ATMs have been in the slow lane so far. Bankers explain that even though it brings down the cost of setting up the ATM, the banks haven’t taken up the option as ATMs are also a vehicle to rebrand and increase visibility which gets lost with these independent ATMs......
FIMBank plans to infuse $100 mn in India Factoring
...... "Now, there is much more we can think of doing in India, such as pre-export finance and financing for commodities. Being in trade finance, we will look at a specialised banking licence in India. The Reserve Bank of India has spoken about a differentiated licensing regime in India," Emmenegger said. For FIMBank, a specialised banking license (for trade) would be viable, as it would allow acceptance of deposits, make funding attractive and offer cheaper rates to small and medium enterprises (SMEs), she added. If all went according to plan, IFFSL will need $100 million of equity in the next five years, she said.......
Now, get your money rounded off to the nearest rupee
....."In order to obviate unnecessary discomfort to the public and also to align with the prevalent practice as applicable to banks, NBFCs are advised that all transactions, including payment of interest on deposits/ charging of interest on advances, should be rounded off to the nearest rupee," RBI said in a notification................
SEBI finds large-scale violations of norms in some MF schemes
........SEBI found that many schemes have been repeatedly breaching these norms, especially during the course of a quarter. Some investors put large amount of money in a scheme and withdraw the same at a later stage to meet quarter-end norms, while many schemes were non-compliant on full quarter basis as well. ..........
Read - Deccan Chronicle
RBI asks Kotak Bank to reduce promoter stake to 40% by Sept
....“The bank has received a communication from the RBI to bring down its promoter shareholding to 40% by September 30, 2014 as per estimates provided by the Bank. The next estimate is 30% by December 31, 2016,” the bank said. At present, promoter shareholding is 43.58%.......
Exports should be an engine to create jobs: Exim Bank
.....Institutions such as Exim Bank, National Housing Bank, SIDBI and Nabard are DFIs. So, they have to be dealt with in a way that they deliver on developmental banking. Without accessing the financial markets they cannot operate. The policy must be aligned suitably for DFIs to raise capital. Currently, we are able to raise 10-11 times of our net owned funds. If we need to deliver on a larger mandate, then the Government and the RBI should make suitable adjustments either in our leverage ratio or in equity infusions. If there is suitable relaxation in the leverage ratio, then we can support more project exports from the country...........
RBI Okays Rana Kapoor's Reappointment at Yes Bank
.......“The members of the bank take on record the approval accorded by the Reserve Bank of India, and approve the appointment of Mr Rana Kapoor as the managing director and chief executive officer of the bank for a period of up to August 31, 2015,“ said a resolution sent in a letter to the shareholders for the tenth annual general meeting. For Kapoor and the bank, it must be a relief that the regulator has approved the proposal despite Madhu Kapur, the second largest promoter of the bank, requesting the regulator not to okay such a plan............
Read - ET
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