................The FSLRC proposal has certain drawbacks. While the RBI would be accountable for its actions, the majority of the members of the MPC would be non-executives. This goes against the fundamental principles of executive responsibility and accountability. Again, one is all too familiar with how executives and external advisers can be overawed by the presence of a top Finance Ministry official — the Big Brother’s watching syndrome!.............
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, May 30, 2014
Raghuram Rajan's welcome party for new FM Arun Jaitley with robust forex chest
Reserve Bank of India Governor Raghuram Rajan has made out a welcome party for new finance minister Arun Jaitley in the money market. The minister can borrow more from the market and still keep his fiscal house in order. This has happened because of the robust foreign exchange mop up operations the RBI has begun in earnest since March this year...........
Delhi's Naraina industrialists ask for five M's at RBI town hall meeting
........The Reserve Bank (Delhi region) with the support of FISME (Federation of Indian Micro and Small & Medium Enterprises) held its second round of Town Hall meeting here yesterday with the Naraina Industrial Association. The meeting was chaired by the General Manager, Rural Planning and Credit Department, RBI, Sonali Sengupta. The meeting was convened to reach out to micro, small and medium enterprises (MSMEs) so as to create awareness of banking facilities and the advantages of linking them with banking system. The main objective of the meeting was to discuss the grievances and feedback that small entrepreneurs face with the public as well as private sector banks. “I request all of you to take advantage of this town hall meeting by clarifying various issues affecting MSME credit from banks in the district,” said RBI Rural Planning and Credit Department Assistant General Manager Vandana Maheshwari inaugurating the programme..........
RBI organises Forex Exhibition and Interface Programme
........ The welcome address was delivered by the Hon’ble Vice Chancellor of National Law University, Delhi, Prof. (Dr.) Ranbir Singh. He welcomed all the dignitaries from RBI, New Delhi and Central Office, Bombay and the participant banks as well, which included Axis Bank and State Bank of India. Shri Deepak Singhal, Regional Director, RBI delivered his precise inaugural address on FERA, 1973 and FEMA, 1999. He also pointed out the importance of the FEMA in day to day life. An interactive and knowledgeable presentation was given by Shri Himashu Mohanty (General Manager, Foreign Exchange Department, RBI, Bombay), an expert on FEMA. .......
Read..........
Empower PSU banks
........The country’s changing demographics could see private banks capturing a larger share of deposits in future—lenders such as Kotak Mahindra Bank are already able to win customers by offering a higher interest rate on savings accounts. Since PSU banks will be short on capital—they need an estimated R6 lakh crore in four years—unless the government decides it will dilute its stake in them, they will be in trouble. ........
HDFC Bank debit card users to lose benefits for not transacting online
.........On the reasons for the move, HDFC Bank said, “Debit card is a convenience product and we want to influence the usage habit of customers to make them use their cards for daily purchases, instead of using cash. Regulators had reduced merchant fees on debit cards to drive electronification of payment and move away from a cash economy. This feature will help complement that.”.............
Verify authenticity of company before investing, says RBI
... Hundreds of people are still being lured by them, as they continue their practice of ensnaring agents, offering them high commission rates. The agents in turn get the gullible public to invest in bogus schemes which go bust after paying a few rounds of high rates of interest. The RBI has said that the returns too are regulated (at 12.5 per cent). Recently, the RBI barred at least four such city-based companies from raising money from the public. One of them was not even registered with the RBI and has already begun defaulting on its payments raising the spectre of the Saradha-like scam...........
RBI might wait and watch
.......That’s probably a fair prediction. There is hardly a case for RBI to relax its stance at this point on grounds of inflation, even as it is anxious about growth. Besides the resurgent consumer price inflation last month, the central bank is confronted with a number of unknowns at this point. These factors suggest a deferment of any monetary action two months hence...............
RBI's fresh norms on new bank licences in next 4 months
..."Hopefully, in next few months RBI will start inviting applications... RBI will take 4-5 months for preparing the new set of guidelines for on-tap and for differentiated banks," Financial Services Secretary G S Sandhu told reporters .......
RBI to shortly issue Rs 1000 banknotes without inset letter
......"The RBI will shortly issue Rs 1000 denomination Banknotes incorporating rupee symbol, without inset letter, in the Mahatma Gandhi Series-2005 bearing the signature of Raghuram G Rajan, Governor, Reserve Bank of India, and the year of printing 2014 printed on the reverse of the banknote," a release from the RBI said.........
Positive signals
Given the context, the meeting between RBI Governor Raghuram Rajan and the new Finance Minister, Arun Jaitley, was expected to be significant. In the event, the meeting, which was among the first between a senior government officer and a senior Minister of the new government, has been noteworthy for several reasons. Most importantly, Mr. Jaitley appears to be on the same wavelength as the RBI, acknowledging the challenges the government faces in restoring the pace of growth, contain inflation and concentrate on fiscal consolidation, all important policy objectives whose pursuit involves “a tough balancing act”. Those words will resonate well with the RBI,.........
New bank licence: Will Jaitley take a view contrary to Yashwant Sinha’s
.....In fact, RBI Governor Raghuram Rajan had later observed that the ones who did not make it were probably more suited to be a different kind of bank. In January this year, the RBI-appointed Nachiket Mor committee had recommended giving out licences to entities that could focus either on payments or on collecting deposits, in an effort to widen the delivery of financial services. The drive to issue more licences to open banks was set in motion first by the then finance minister Pranab Mukherjee. This was also done with the intent of furthering the agenda of financial inclusion in a country where more than half the population have no access to banking services. The Narendra Modi-led Government will now be in a spot on whether to hand out more banking licences, especially to corporates.......
Fin Min differs with RBI view on governance issues in PSBs
.........The central bank, in a detailed note to the ministry, highlighted the governance issues in public sector banks which have also led to rise in non-performing assets. RBI has also pointed out that government ownership creates constraint in efficient operations of the bank. In its reply to the central bank, the finance ministry said rise in NPA is mainly due to slowing economic activity.............
Growth but not at the cost of macrostability
......For all these reasons, the space for monetary easing just does not exist and I expect the Reserve Bank of India (RBI) will stay on hold next week and reiterate that its primary objective is to bring down inflation to the 8% and 6% levels that it has publicly committed to. We live in a T20 era that thrives on instant gratification. But there are no quick or easy answers here. And markets have to accept some hard truths...............
Big-bang capital market reforms on the cards
........To sell the Indian reform story to foreign investors, Finance Minister Arun Jaitley is planning to go to London, Tokyo, Hong Kong, Singapore and New York for road shows. "We are looking at a three-month timeframe to roll out many of these measures. Some that require legislative amendment might come in the Union Budget. The restrictions imposed by RBI in July last year will also be lifted,........
A New Govt Sets Course - Insurance, pension tax sops on cards
......In a presentation to finance minister Arun Jaitley on Thursday , the department of financial services (DFS) has also proposed developing new instruments in the pension sector to attract longterm funds besides tax-free bonds for the infrastructure sector to help fund power, road and port projects. Sources present in the meeting told TOI that the proposal is being sent to the RBI, which is expected to issue guidelines on the issue. The suggestion for the tax-free instru ments and the tax sops come ahead of the Budget, which is expected to be presented in the first week of July ............
Read - TOI
FM to target Rs 2 lakh crore bank NPAs
Non-performing assets (NPAs) of banks estimated at over Rs 2 lakh crore seem to be top on finance minister Arun Jaitley’s agenda. Jaitley is weighing various options such as shifting the bank NPAs to asset reconstruction companies on a wider scale, and sweeping changes in the Debt Recovery Tribunal’s (DRT) legislation, making the dispensation of cases time-bound..........
Read - DNA
Read - DNA
Recruitment of Assistants in Clerical Cadre in State Bank of India
Recruitment of Assistants in Clerical Cadre in State Bank of India (2014-15)
Advertisement No. CRPD/CR/2014-15/02
On-line registration of application : 26.05.2014 TO 14.06.2014
Payment of fee : On-line 26.05.2014 TO 14.06.2014
Off line 28.05.2014 TO 17.06.2014
SBH notified as convenor bank for Telangana
State Bank of Hyderabad (SBH) has been notified as convenor bank of the new state of Telangana. RBI Regional Director S K Das informed today that his office received the communication yesterday..........
Nabard seeks govt nod for Rs 5,000-cr tax-free bond issue
............“We have requested the government, that if it is still keeping the tax-free bond window open, then we would like to raise funds under Nabard Infrastructure Development Assistance (NIDA),” said Harsh Kumar Bhanwala, chairman, Nabard. The bonds will help raise money to fund rural infrastructure projects, Bhanwala added. NIDA is designed to fund state-owned institutions/corporations — both on-budget as well as off-budget — for creation of rural infrastructure outside the ambit of the rural infrastructure development fund (RIDF) borrowing...
Nabard Seeks Review of Rural Infrastructure Projects
With a large number of rural infrastructure projects not taking off despite receiving sanction from the National Bank for Agriculture and Rural Development (Nabard), the Odisha Government has been caught on the wrong foot. As on March 31, as many as 189 projects sanctioned under Nabard’s Rural Infrastructure Development Fund (RIDF) and having an estimated cost of `380 crore were yet to take off............
Go easy on taxes
......The deduction under Section 80C of the Income-tax Act has not been revised for a long time. Further, with too many investment/ expenditures (such as contribution to Provident Fund, repayment of the housing loan, life insurance premium, fixed deposit) forming part of the existing overall limit of ₹1 lakh, individuals are not incentivised to make investments beyond the specified limit. Hence, the specified limit must be increased............
SIT on black money to hold first meeting on June 4
.....The meeting, the sources said, is expected to discuss the policy matters on combating the menace of black money and the status of ongoing probes and available inputs with all the departments in this regard. The officers who would form part of the SIT include Secretary of the Department of Revenue under the Ministry of Finance, a Deputy Governor of RBI, Intelligence Bureau Director, Director of Enforcement Directorate, Director CBI, CBDT Chairman and Director General Narcotics Control Bureau........
Rs. 3,384 crore for agriculture activities
....A major thrust has been given equally to all sectors and employment generation by way of investment in income generation activities in services and industries sectors. As per a directive of Reserve Bank of India, every village with a population of 2,000 and above will be provided banking services so as to liberate the rural masses from the clutches of moneylenders.........
I-T Dept. asked to share wealth details of defaulters with banks
....According to available data, NPAs of state-owned banks rose by 28.5 per cent to Rs.2.36 lakh crore in September last from Rs.1.83 lakh crore in March, 2013. It is expected to have grown further. Reserve Bank of India Governor Raghuram Rajan had recently expressed concerns over the bad loans in banks. The directions were issued in view of reluctance of the Income Tax Department, which comes under the Central Board of Direct Taxes (CBDT), to share information provided in wealth tax returns with banks despite repeated requests. However, the Finance Ministry said banks would be allowed to recover their dues from sale of assets of defaulters only after settlement of the claims of the tax department........
Make yourself at home
High inflation has been troubling the economy for more than a year, which has forced Reserve Bank of India (RBI) to keep interest rates high to suck extra liquidity and control inflation. Considering the circumstances, a rate cut in coming months seems unlikely. Persistently high rates have made home loan borrowers work out plans to get a respite from the increase in their equated monthly installments ......
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