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.
Saturday, May 31, 2014
K C Chakrabarty - The accidental banker
Sustainable prosperity - V.K.Sharma
Love in Tokyo: Rajan Says RBI, MoF One on Inflation
RBI Governor Raghuram Rajan sought to dispel any lingering doubts that he may be at odds with Finance Minister Arun Jaitley and the new Narendra Modi government for the second time in a week, saying the administration's priority of taming inflation is a prudent one. Rajan said the central bank will work with the government to curb inflation, which has wrecked the economy, giving a clue to the governor's thinking ahead of the June 3 monetary policy announcement. “The government and the central bank have both stressed the need to bring down inflation while respecting the fact that growth is very weak............
RBI's '007' Raghuram Rajan faces pro-growth boss in Modi
Hailed as a troubleshooting "James Bond" of central bankers amid India's currency crisis last year, Raghuram Rajan was given a licence to kill inflation with higher interest rates and drive a programme of monetary policy reforms. Now, the governor of the Reserve Bank of India (RBI) may need all the suave charm of the fictional British spy to sell that same hard-nosed agenda to a powerful new Prime Minister who is determined to revive economic growth and create jobs..........
Hope to work with Modi govt to battle inflation, RBI chief Raghuram Rajan says
TOKYO: Reserve Bank of India Governor Raghuram Rajan said on Friday he expected to join hands with the country's new government to bring down high inflation. Rajan, speaking at a seminar in Tokyo, said the new government's plan to curb food inflation seems sensible and that he expected the public's inflation expectations to fall in the future. ............
Make the PS Banks Performing assets of the economy - Dr.T.V.Gopalakrishnan
The PSU banks are becoming non professional and non aggrssive in their business approach is a fact which cannot be ignored both by the Government as owner of the banks and the RBI as Regulator. The reasons are not far to seek for such a situation in PSBs. The technology in use, the attitude of employees, thewrong age profile of human resources in banks and the incentives they get , the unprofessional guidance they get from top managemnt etc add to the non performance of banks, Added to this the Government interference in many ways acts as a moral hazard not to perform is also not a secret. Borrwoers take full advantage of this and they also do not perform. Time a very serious view is taken to make the banks performing assets of the economy.
The Robbing Hoods - T C A Srinivasa-Raghavan
.......What the "good" people don't seem to understand is that a tax on income has always been a device to attain political ends rather than a device to attain economic ones. If you study the history of income tax in detail, you will find that when it was not being imposed to finance wars, it was imposed in order to meet some political agenda................
Reposition the NABARD
My View on "Nabard FY14 Net marginally up at Rs 1,860 crore":
IDFC the infrastructure development organisation has become a commercial bank. Result is that funding support for infrastructure projects would need to be provided by commercial banks which will be costlier for the such projects. With the result, NABARD is the only agency with strong hand in funding infrastructure development projects, of course confined to rural areas. NABARD is also a fully owned GOI enterprise. So, it is in the best interest of the country's infrastructure development, NABARD may be repositioned as NABARD infrastructure development Bank with area of operations expanding to urban areas also. This would meet two objectives:
1. Infrastructure development would continue to receive the funding support without any problem.
2. NABARD with its performance going flat in 2013-14, it will give a great opportunity to grow in an area where its expertise lies.
- Dr.Santhanam
Pros and Cons of Keeping the Farm Loan Waiver Promise - B. Yerram Raju
...Interest subvention will not be available once the waiver is announced by the state government and therefore, to that extent the state government will have to bear this additional burden as well. It will be hazardous for the Centre to provide for loan waiver of AP as other states would not hesitate for raising similar demand. Farmers continue to be in distress not because of just the burden of institutional loans against which the waiver is now promised but on account of huge private debt at usurious rates of interest with no credible documentation. What is now promised is..........
Deepak Parekh honoured with Germany's prestigious Order of Merit award
........Germany's Consul General Michael Siebert who bestowed the award, said, "Deepak Parekh, one of the most respected personalities in the Indian finance sector for his outstanding entrepreneurial success and his integrity, has played a pioneering role in fostering Indo-German economic co-operation."......
Take it in right spirit
My View on "Too lax an approach to fighting inflation - Dr.S.S...":
Setting out the purport of policy as ‘alleviating the suffering of the masses and generating a climate of confidence which would boost savings and investments’(see conclusion) and systematically analysing the context in which Dr Raghuram Rajan will be presenting the second monetary policy review of 2014-15, the article doubles up as a background note for RBI and a guide for those who will be talking about expectations and fulfilment, post-announcement of monetary policy. One only hopes, the views, ‘In this context the autonomy of the Reserve bank of India’s monetary policy function and its accountability comes to the forefront’, ‘…The RBI should then have instrument independence’, ‘…presence of a top Finance Ministry official-the Big Brother’s watching syndrome!’ and ‘Hurrying through fundamental financial legislative changes is clearly not desirable’ coming from the veteran economist who had opportunity to be at the highest level in monetary policy formulation during challenging times, are taken in right spirit, by those in charge of fiscal and monetary policy formulation today.
- M.G.Warrier
Hostage to Questionable Priors
.....The committee which had one representative from a PSB (a retired official) and one from the Securities and Exchange Board of India was dominated by financial market participants and specialists. It is, therefore, no wonder that its report oozes with the sentiment of financial market fundamentalism. Surprisingly, there was no representative from the Ministry of Finance, banking trade unions and investor groups. Furthermore, it is intriguing that an RBI committee report can begin with the sentence, “The financial position of public sector banks is fragile, partly masked by regulatory forbearance.” Such a statement from a RBI-appointed committee is extremely irresponsible. Since most of the PSBs are also listed in the stock market, this statement is enough to cause ...............
Don’t mess with the banking sector
........The world over, economies have faced banking crises over the past several decades. Banks failed, they were nationalised or bailed out, then turned over to the private sector. This is the phenomenon of socialisation of losses and privatisation of profits that has come to attract public outrage. India’s experience has been refreshingly different. The Indian approach has been to have the public sector dominate banking while exposing it to competition. In the process, efficiency has improved without jeopardising stability. Experience has shown that it is possible to retain the public sector as the sheet anchor of the banking system without compromising on efficiency. Addressing the issues of governance at PSBs requires focus on the part of the finance ministry...........
Banks to offer loans to victims of blade mafia
.......... The beneficiary would be required only to produce photocopies of documents and a certificate from a government official regarding their debts and sources of income. The bank would directly pay the moneylender from the proceeds of the loan. The loan would be repayable in five years and would carry only the base rate of interest.............
Inquiry MSC Bank finds Ajit Pawar, 43 others guilty of errors of “commission and omission”
...“Explanations offered by the bank, regarding the losses were found to be inadequate, therefore department has concluded that, banks’ board was responsible for the losses. And as there is a need to fix responsibility regarding these losses, I am ordering further probe for fixing responsibility regarding these losses with concern directors and officers of the bank,” ................
Banks yet to promote GPCC scheme
............The Reserve Bank of India had drawn up the General Purpose Credit Card, similar to the Kisan Card, as this segment does not have a credit card facility for purchases and other purposes. The apex bank had specified that the borrowers would be eligible for availing themselves of credit facilities provided under the card as per their needs without any insistence on security and the purpose or end-use of the credit. Banks were given the freedom to charge appropriate and reasonable interest rates. They also have the flexibility to fix the limit based on the income and cash flow of the entire............
An MP village tells you why financial inclusion isn't a tough ask
......But more than the technology aspect, Tyagi is worried about the service-area approach of banks, as mandated by the Reserve Bank of India (RBI). “RBI’s guideline to first cover the uncovered areas is a limitation because we may not necessarily have CSCs in those areas,” he says. “Banks started with catering to villages with a population below 5,000, then moved on to villages with fewer than 2,000 people, and so on. But we did not set up the CSC network in that format. So there is always a mismatch in some locations where banks want a CSC and we cannot provide one, so things get delayed further.”..............
HC stays RBI order on DCCBs
.......The stay may allow teachers and farmers to withdraw the amount lying in their accounts, which could not be touched earlier due to the RBI action, which called for liquidation of the banks. The next hearing will be on June 20. The state government is ready to infuse Rs319 crore cumulatively in the three banks as share capital to revive these institutions. Even as teachers may heave a sigh of relief they may not be able to immediately shift their accounts to Union Bank, though they have been pressing for it given the crisis in NDCCB.........
Stable rupee may prod RBI to liberalise rules
....“The liquidity (restriction) measures might not be withdrawn by RBI. But maybe it will allow people travelling abroad to (again) spend $200,000 there in a year, as against the present limit of $75,000 (fixed last August). That might be announced anytime,” ..............
Rana Kapoor’s board appointment subject to final order: Bombay high court
.....Justice S.C. Gupte’s comments came in the course of a hearing on an ad interim petition by Madhu Kapur, widow of Yes Bank co-founder Ashok Kapur. Ad interim is a Latin phrase that means temporary. Gupte said that Kapoor’s appointment is also subject to the court’s final ruling.......
Banks' international liability rise 36 per cent on dollar deposit flows
........The rise in banks' international liabilities also contributed by their foreign currency borrowings, RBI said. The central bank allowed banks to borrow up to 100 per cent of their Tier-I capital from overseas markets and swap the dollar with it at a lower rate to attract dollar inflows and arrest the rupee to slip beyond 68.80 a dollar............
PDP ASKS GOVERNMENT TO EXPLAIN JK BANK BUNGLING
..... it was ironical that a government that served a severe blow to state's financial autonomy by shifting to RBI for overdrafts had claimed that the move would improve transparency in the bank. That spurious argument has been turned on its head as exposed in the GK report and now it is clear that the changeover was only another installment of the price that NC has historically been paying at the cost of state's resources and institutions,........
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