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, July 9, 2014
RBI Ex-Dy Guv Sinha Joins Amarchand & Mangaldas
A fiscal watchdog for India
...........There is a deeper problem here. The credibility of Indian fiscal statements is generally weak. A careful analysis of budgets over the past 25 years by economists Deepa Vaidya and K. Kanagasabapathy of the EPW Research Foundation shows that finance ministers consistently overestimate revenues and underestimate expenditure when they present their budgets. The result is that the actual fiscal and revenue deficits are far higher than what has been promised in the initial budget estimates. This tendency is starker during interim budgets. They say that..................
Inflation targeting fiscal policy
..........It has been pointed out that the lack of clarity in the Reserve Bank of India (RBI) on the monetary policy framework over the years—which enunciates the goals, strategies and operational tactics for this framework—coupled with large fiscal deficits have contributed to the prevalence of high and persistent inflation in recent years. The RBI, in recent montths.......................
A Sense of déjà vu? Time to Set India's Forex House in Order
.........The current account deficit -the excess of spending overseas than savings -declined to less than 2% of GDP from about 4.7% a year ago, thanks to the government's move to curb gold imports by raising import duty on gold and RBI's prudential measures, along with measures to boost dollar inflows. Yet, India's external debt indicators continue to be vulnerable. In terms of percentage of GDP, external debt rose to 23.4%, from 22% last year. While the short-term share of external debt has improved recently , the current share at 20% is significantly higher than what used to be a decade ago. This share was only 4% in 2004. It started rising sharply since the global crisis of 2008. Other indicators, too, are far from satisfactory. Take, for instance, .................
UTI’s Fake 50 Year Celebration
........A coffee table book of UTI’s history was released that day in the presence of almost all but two of its most controversial ex-chairmen in nearly four decades. One was the late MJ Pherwani (who grew UTI into a mammoth fixed-returns giving trust and development finance institution rolled in one, but set it up for a future fall) and the other was the late PS Subramanyam, who presided over its collapse, after it had already been seriously weakened. Did the coffee table book document its ignominious fall and split? How did UTIMF justify its claim of 50 years of glorious existence?.......
T(rust) lost between U & I - M.G.Warrier
My View on UTI’s Fake 50 Year Celebration
Many things stated here are true. But, it is also a fact that absence of professionalism in management caused the slow and steady deterioration of the functioning of a public sector organisation. Wrong persons found their way to top positions in UTI with ease. The institution was ‘destroyed’ from within. Some financial management experts should do a case study of the rise and ‘fall’ of UTI. Even the Unit-64 Scheme is worth studying. That scheme was also ‘destroyed’ by not bringing in innovations necessitated by changes in the environment in which it was existing.
Many things stated here are true. But, it is also a fact that absence of professionalism in management caused the slow and steady deterioration of the functioning of a public sector organisation. Wrong persons found their way to top positions in UTI with ease. The institution was ‘destroyed’ from within. Some financial management experts should do a case study of the rise and ‘fall’ of UTI. Even the Unit-64 Scheme is worth studying. That scheme was also ‘destroyed’ by not bringing in innovations necessitated by changes in the environment in which it was existing.
- M.G.Warrier
ICICI Bank organised 36 Coin Exchange Melas across Mumbai, Navi Mumbai and Thane in June, 2014
ICICI Bank Ltd, India’s largest private sector bank, organised 36 Coin Exchange Melas at its various branches in Mumbai, Navi Mumbai and Thane during June 2014, under the guidance of the Reserve Bank of India. The Bank organises Coin Exchange Melas to offer free facility of exchanging acceptable soiled and mutilated currency notes with coins to the general public and is a much-awaited event that receives an overwhelming response from people from all walks of life. Anyone can avail of this facility free of cost.........
Useful study
My View on "A Study on Analyzing the Trend of NPA Level in Pri...":
The Study is useful for researchers. None of the tables contain the unit of measurement regarding the amount: whether it is in thousands, lakhs, crores, millions for RBI itself has adopted lakhs in some years and later migrated to millions and billions. Further references have not taken into account several articles and articulations on the subject - both official and private.
- Yerram Raju
Suicide case: Over 500 bankers hold protest Demand action against 2 officials named in suicide note
...........The protesting bank employees alleged that they had been working under adverse conditions and needed better infrastructure. “Strict action must be taken against the two officials who had been harassing Sehgal. We will continue our agitation. The future course of action will be decided tomorrow,” said Rajender Wali, a member of the PNB Officers Association.........
Forwarded by Madan Gauria
Govt eyes 200 mn new bank accounts in a year
.............The cost of the one-year plan is pegged at Rs 1,700 crore. Wages will take up Rs 1,200 crore. Promotion expenses, merchandising and infra will cost another Rs 500 crore. The National Bank for Agriculture and Rural Development is expected to chip in with Rs 1,000 crore and the rest will come from banks. Account holders completing a financial literacy programme will get instant overdrafts of Rs 5,000. Welfare benefits will flow into these accounts, reducing the chance of accounts turning dormant.........
No proposal to dilute govt ownership in PSBs below 50%: Govt
........"Major bank trade unions have protested against the implementation of the recommendations of the (P J Nayak) Committee including dilution of government ownership. There is no proposal with the government to dilute its ownership in PSBs below 50%," Minister of State for Finance Nirmala Sitharaman said in a written reply in the Rajya Sabha........
FinMin may bring back DFIs to fund infra needs
......."DFIs are the need of the day. A committee may be formed with some economists and a RBI representative to look into the issue. A call on setting up DFIs will be taken based on its recommendations," said a finance ministry official who did not wish to be identified. According to officials, RBI is opposed to the move as the Narasimham committee had already stated that with banks and DFIs moving close to each other in their scope of activities, DFIs were not required and they should be converted into banks or NBFCs. The finance ministry's view is that..........
Centre trying to weaken coop. sector: Pinarayi
...........Mr Vijayan alleged that certain quarters at the Centre wished to bring the co-operative sector under their control. The constitutional amendment and amendment of the Banking Act were made with this intention, he alleged.He alleged that the Centre was trying to control the co-operative banks with the help of RBI rules, sidelining the fact that the co-operative banks were formed through a legislation passed by the State Legislature........
RBI nod for rescheduling, waiving loans in AP
......................Addressing a press conference, the AP Finance Minister Yanamala Ramakrishnudu, Agriculture Minister P Pulla Rao and State Media Advisor Parakala Prabhakar, said that a formal communication on the loan reschedulement/ waiver is expected to be released by the RBI within the next couple of days. Earlier today, the State Chief minister, N Chandrababu Naidu, who spoke to the RBI Governor Raghuram Rajan, was assured by the latter that RBI would clear the proposal and details would be released through a communication, they said..............
Customers must ensure financial products are suitable for them
Banks are not willing to ensure that the products they sell to low-income customers are suitable for them, telling the apex bank instead that customers themselves must understand their own financial needs and bear responsibility for the choices they make. In January, a Reserve Bank of India (RBI) panel led by Nachiket Mor on financial services for small businesses and low-income households had suggested that banks move from the principle of caveat emptor (let the buyer beware) to caveat venditor (let the seller beware). It proposed a legally-protected right for low-income borrowers to get suitable financial services, suggesting banks can face legal action if found selling unsuitable products to them. However, when the central bank sought feedback ..............
Be selective in choice of bank, amount of FD to avoid shocks
.........However, customers of many other troubled co-operative banks are often not as lucky as they have to wait longer to get their money back. This is because the banking regulator merges a troubled bank with a sound one and depositors will have to wait for the process to be completed before they can get their money or stop worrying about its safety. The RBI orders a moratorium when a bank's financial stability is threatened. Depositors face some restrictions on withdrawing money from their ..
Subscribe to:
Posts (Atom)