..........“The key rationale for co-ordination and international monitoring is adverse policy spill-overs,” Rajan said. He was speaking at the 2014 BOJ-IMES Conference on Monetary Policy in a Post-Financial Crisis Era’, organized by the Institute of Monetary and Economic Studies, Bank of Japan, in Tokyo. Rajan, a former chief economist with the International Monetary Fund, warned that the current “non-system” in international monetary policy could be a source of substantial risk to sustainable growth and to the financial sector. “The international rules of the game need to be revisited as the world has changed,” Rajan said, adding that both advanced economies and emerging economies need to adapt...........
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.
Thursday, May 29, 2014
Kangra co-op bank opens new branch
Happy ReTYREment
Dear Mr Narayanan,
HAPPY RETIREMENT
While welcoming you to the Group I had observed that your retirement is due on coming 31st May. We all wish you a very happy retired life in advance. The retirement day is fixed on the day we joined the Bank. Only it is a matter of time. I am forwarding herewith a communication received from Sh M B Talekar in this regard and hope our members will impress upon their friends to join Assn, if they have not done it so far. Ours is only an informal group. For conveying any thing to the Management we always request our Retirees Assn, which is a recognised body by the Bank. I need not repeat that they are already doing quite a lot for us. In fact some of the activists, who are our members, go through group mail of their own and initiate follow up action. So to make our group stronger we have to have maximum number of members who are member/office bearers of local Retirees Assn also.
If it is possible for some of our members from different centres to send me a list of staff members with email address who have recently retired or are going to retire shortly, we can approach them to join Retirees Assn as well as our Group.
Wishing you all the best once again.
Regards
Madan Gauria (M-1)
Moderator EXRBITES Group
madan.gauria@yahoo.com
Forbes' most powerful women: SBI's Arundhati Bhattacharya, ICICI Bank's Chanda Kochhar in list
State Bank of India Chairperson Arundhati Bhattacharya and ICICI Bank Managing Director Chanda Kochhar are among the five women from India featured in Forbes' 100 most powerful women in the world, a list topped by German Chancellor Angela Merkel. Bhattacharya is ranked 36th on the power list, while Kochhar is 43rd. Biocon founder Kiran Mazumdar-Shaw is ranked 92nd on the list.............
Let the poor own our state-run banks!
.........Here’s an idea whose time has come! Let our poor part own our nationalised banks. How, pray? Its very simple. The Modi regime should transfer Rs 10,000 each into the account of each of the 400 million poor identified using the UID or other efforts, who are mostly farmers owning small land holdings. Make them invest this Rs 10,000, which aggregates to Rs 4 trillion in state-run banking stocks. The natural consequence will be that the government holding in these banks will come down from the present high holdings, which vary from ...........
Read - ET
PSBs and Naik Committee Report - Dr.T.V.Gopalakrishnan
...........The Government and the economy should be the beneficiaries out of such banks and not the other way round. Banks are not meant for unprofessional Board Members and bad borrowers. No doubt, the unions will have to be taken into confidence and their interest cannot be jettisoned. The need to have professional Boards,effective constructive regulation and supervision is paramount and hope the new Government would take this report seriously and .........
When ‘fake’ turned real
.....Following regular procedure, the police informed the RBI office in Kochi, which then forwarded the notes to RBI Thiruvananthapuram. After much time and money had been spent on bringing the Rs. 5 notes to the capital city, officials confirmed that the notes were indeed genuine. Officials said there may have been some error in printing and the security thread was missing as they were printed before 2005, when new features were added to the currency notes. As the notes had already been marked ‘counterfeit,’ the police had no other go but to get them exchanged at the RBI.........
Teacher files intervention petition in NDCCB case
........However, the money could not be withdrawn following RBI's rejection of banking licence application. Some of the teachers withdrew their salaries before the order was issued. The state government was aware of the likelihood of the banking licence application being turned down, but did not take up the issue with RBI, and deposited the salary in NDCCB as a matter of routine, says the plea. Tiwari's petition adds that she approached the bank and requested that her salary should be released, but was informed that it cannot be done in the light of the RBI order.......
Silent witness
My View on "FM Tune in Sync with Rajan Stand on Taming Inflati...":
It augurs well for both the RBI and the GoI to begin the new day with the meeting of the FM by the Governor, RBI. From the past experience of two FMs (PC and Pranab Mukherjee), a simple request to the present FM Mr Jaitley. Let him not flood his constituency (fortunately he has lost in the LS election from Haryana) with opening of new branches of PSBs as his predecessors did. In Sivaganga, they used to say that one day, there will be more bank branches than the population of the district. RBI was also a silent witness to these supposedly popular measures (which became totally unpopular with bank branches becoming unviable with very little scope for growth through new clients acquisition)when CMDs of PSBs bent backwards in opening branches of their banks without any assessment of their viability. Murshidabad is also not an exception to this during the tenure of Mr Pranab Mukherjee as the FM of this great country.
- Dr.Santhanam
Banking Codes are Here, Don't Let Banks Take You For a Ride
.........While the onus could shift to sellers or distributor banks, a customer should also be aware of her rights and the recourse available. Keep yourself updated of the measures taken by RBI and BCSBI to protect customer interests. Experts think that with the burden of guilt likely to shift to the seller, customers should make the most of the code of commitment, which can quickly redress their grievances, says Preeti Kulkarni According to BCSBI chairman AC Mahajan, awareness of the code of commitment to customers is low even among the compliance officers at many bank branches. The new BSCBI code of commitment has already incorporated.............
Read - ET
Emerging markets may hit back with own version of QE: RBI governor Raghuram Rajan
........."Countries could legitimately practice what they might call quantitative external easing or QEE, whereby they intervene to keep their exchange rate down and build huge reserves," Rajan said at the Institute of Monetary and Economic Studies-Bank of Japan meet.
No magic cure for an ailing economy
..........How big should the Government’s spending commitments (subsidies, deficits) be? What should be the Government’s tax and revenue policy? Do we have a national policy on tariffs/user costs for key infrastructure such as power, roads, water, transport fuels, gas? How do we plug the overall spending gaps in the national budget? What is the role of the RBI in that process? Does the RBI have an objective with respect to the macro-economy? If India does not answer these questions, we will have a repeat of what has happened in the past decade .........
How bank customers get short-changed
.........Addressing a gathering of bank officials and customers of various banks, D G Kale, General Manager (Customer Service Department), Reserve Bank of India, said the Code of Customer Rights aims to provide protection to customers and promote cordial banker-customer relationship. The customer meet was hosted by BCSBI (Banking Codes and Standards Board of India). RBI’s primary focus has been the common man and the guidelines therefore are aimed at common people, he said and asked the listeners if they were aware that the savings bank account earns interest on a daily basis; that a pensioner is entitled to a penal interest at bank rate plus 2 per cent if there is a delay in pension payment; that the pensioner’s life certificate can be given at any branch of the bank that disburses his/her pension, among other questions..............
RBI on inoperative foreign currency accounts
........According to RBI, if a foreign currency denominated deposit with a fixed maturity date remains inoperative for a period of three years from the date of maturity of the deposit, at the end of the third year, the bank shall convert the balances lying in the foreign currency denominated deposit into rupee keeping in mind the exchange rate prevailing as on that date...........
RBI asks urban co-operative banks not to lend to government entities
........RBI defined UCBS as needing to provide loans to lower and middle income groups, as well as agriculture and small businesses, instead of government-owned companies, which are called public sector undertakings (PSUs) in India. "Grant of high value loans to PSUs is not consistent with the co-operative principles and dilutes the cooperative character of UCBs," the RBI said.
Set up national asset management co to take over bank NPAs: Ficci
........"It is imperative that the Government and RBI should help establish NAMCO to address the challenge posed by stressed assets in the banking system. A pro-active and preventive approach is much desirable if we have to ensure speedy revival of the economy," Ficci President Sidharth Birla said............
Sticky inflation may slow down pace of dollar buying
......“Excessive dollar buying by RBI to curtail rupee gains may come at a cost to RBI. Though RBI hasn’t resorted to sterilisation of rupee liquidity that has so far been created, it may become inevitable for RBI to do so given that inflation continues to be sticky and the risks of inflation in an environment where growth is expected to pick-up cannot be ignored,”............
State Bank of Hyderabad to be SLBC convener for Telangana
......"It has been decided to assign the SLBC convenership of Telangana State to State Bank of Hyderabad. The SLBC responsibility for the State of Andhra Pradesh (after carving out Telangana) has been retained with Andhra Bank," RBI said in a notification. ...........
An open letter to the new Finance Minister
.....Cleaning the PSU banking system which is saddled with rising NPAs is the third point on our wish list. Bad assets have plagued the banking system and confidence to lend for longer duration projects is at an all-time low. As a result, there is a dearth of liquidity and growth is suffering. We expect some constructive steps in these regards..........
Want to set up an NBFC? – Think again
........While the RBI said in the notification that these directions would help them to ensure that the management of the NBFCs are of “fit and proper” character, but the with the nature of restriction brought in by the directions, only one question arises – Are those holding the NBFCs are more fit and more proper than those who wanting to acquire?.........
More glitter than gold
.......Thanks to the Modi wave, RBI restored imports through select trading houses and jewellery manufacturers on May 21, 2014. The import/export ratio of 80:20 still remains. Even this irritant may be lifted soon. With likely re-liberalisation in the near future and higher GDP growth, these three organisations are likely to push imports to R65,000-75,000 crore or more in FY15 from R25,000 crore in FY14, at nominal service charge of maximum 0.1% versus an operating cost of 0.5%-1%. This also amounts to subsidisation for bullion traders. The same may be the case for banks as well for service charges............
Too early to ease the leash
.......The Reserve Bank is now facing a happy problem of how to prevent rapid appreciation of the currency, as against the firefighting it had to do last July. The rupee to dollar rate had crashed from 54 in early May to 69 by late August, causing the RBI to resort to an almost panic reaction. The then government too had sharply increased curbs on gold imports in a bid to save the rupee. Almost ..........
Why G-Sec yields are stubbornly high?
....There are two factors keeping yields high. Until Rajan took over, market participants and analysts always looked at WPI inflation to predict RBI’s monetary policy move. Earlier, the comfort zone for the RBI was headline WPI inflation of 4-5 per cent. Markets are now adjusting themselves to the new target variable — CPI inflation — and this has led to the upward bias in rates. “It may be recalled that the former RBI Governor D Subbarao cut rates even when CPI inflation was close to 10.5 per cent. Now when CPI has come down by 150 basis points, we are hiking rates. This shift .........
Bankers expect status quo on rates
..........“We note that the RBI is unlikely to cut policy rates in FY 2015, given high CPI inflation through FY15,” a recent report by Kotak Institutional Securities said. However, in April, RBI had kept the rates on hold and indicated that RBI will keep rates steady in the near term if inflation eases towards its targeted level. “I do not expect change in rates from RBI as inflation is still not at its comfort level,”..........
Insurers in bind over mandatory customer bank account details
.........The new norms, prescribed by insurance sector regulator Irda, came into affect from April 1, 2014, and make it mandatory for insurers to seek bank details of customers buying new policies. Top officials at various insurers, including LIC, said they will make representations before Irda and the government for easing of these norms, or at least giving more time for compliance. Insurers also collect a significant amount of insurance premiums in cash in smaller towns where banking channels are either not widely available or used. “This is especially true for smaller-ticket businesses and rural locations as the cash economy is large in these places,” a senior LIC official said.......
Work of NBFCs termed transparent
......Referring to comments on interest rates, he said the RBI had given the freedom to the boards of NBFCs to fix the rates, considering the cost of funds and margin and risk premium. The business being market driven, there was no scope for charging high rates, especially as the NBFCs were functioning in a very competitive space, Mr. Muthoot said. NBFCs had certificates of registration obtained from the RBI and registered NBFCs do not accept blank cheques, stamp papers, signed white papers, and title deeds. RBI norms on Know Your Customer and corporate governance were being strictly adhered to. The apex bank’s guidelines on transferring 20 per cent of the net profit to the reserve fund were being complied with...........
Banks in Odisha fail to achieve annual credit target
......Credit to the education sector is dismal with only 23.03 per cent achievement of the target (Rs 829.88 crore) till March 2014. The data compiled by SLBC reveals that credit to agriculture and allied sector was 64.46 per cent of the target. Similarly, achievement in Micro and Small Enterprises (MSEs) sector was 101.90 per cent of the target and housing sector, 66.88 per cent of the target pegged at Rs 1,822.84 crore in 2013-14........
Nabard microfin arm in expansion mode nationally
.......Harsh Bhanwala, chairman, Nabard, said, “Nabfins would become an all-India organisation. It has identified areas in Odisha, Jharkhand, Rajasthan and Madhya Pradesh for starting operations”. Nabfins lends money to self-help groups and works on thin margins, with lending rates in the range of 15-16.75 per cent against the RBI cap of 26 per cent............
Nabard FY14 Net marginally up at Rs 1,860 crore
Nabard today reported a marginal 3 per cent growth in its annual net profit at Rs 1,860.25 crore in FY2013-14 ended March 31, even though its income rose 20 per cent to Rs 15,442.33 crore. Announcing the annual results, National Bank for Agriculture and Rural Development (Nabard) Chairman Harsh Kumar Bhanwala told reporters here the lender refinanced 21.7 per cent more projects in the reporting period at Rs 1,28,522 crore, which included crop loans and long-term loans........
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