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Friday, July 11, 2014
RBI's Central Board met at Chennai to take stock of current economic situation & other issues
Raghuram Rajan says ‘determined’ to bring down consumer inflation
Nudges and pushes - Dr.Subir Gokarn
........I, for one, did expect the speech to begin with an overarching strategic statement, laying out an economic road map for the five-year term. Though there were some initial hints of this, in the event, Mr Jaitley dived straight into details. If there was, indeed, a big picture behind all these details, it had to be discerned. As the speech unfolded, outlines of a big picture did emerge from all the little details. Here are a few of its aspects..........
Tribute to Guru CVN by Shishya
I regret to read about the sad demise of Shri C.V.Nair. I did not work under him. I came across Shri Nair at New Delhi, when I attended in the year 1972 the All India Conference of Officers Association (representing the of Kanpur unit) conducted to go into the recommendations of the Cadres Review Committee, appointed by RBI and to offer the views of the Officers' Association to the Bank. The way he conducted the proceedings was excellent, having full clarity on all the issues affecting the Officers. He was one of the officers involved in furnishing lot of data on various issues affecting the Officers, before the CRC. He was also involved in the process of the Reserve Bank ameliorating the service conditions of Officers in various aspects - ensuring to a great extent that the transfers were not made at a time that would affect the academic year of the children, to bring inter-mobility of officers between the general side departments and specialised departments and in many other areas. I Pray to God to rest his soul in peace and tranquility.
- Mohana Rao
I knew and had high regards and respect for Mr CV Nair. I attended several General Council Meetings which he presided over. In one of GC meetings, when I vehemently opposed CAIIB as a condition for confirmation of DR officers, he called me aside after the meeting and told me that had I spent half of the energy in trying to pass CAIIB instead of fighting against the Bank's policy, I would have achieved my goal. I also worked under him when he was the Manager (RD) in Calcutta (Kolkatta). I had fought with him as the Secreatry of the Calcutta unit. But I always admired him. He, perhaps, was the only person who addressed the then Governors by their names while attending JCC meetings. He used to say that in the JCC meetings the President of the Officers Association is no way less than the Governor in status. Very bold, lucid and logical and firm in his arguments with the Bank. I always remained his 'shishya' (student) though on several occasions I had differed with him openly as General Council Member earlier and as the Secretary of RBIOA of Calcutta unit later. My sautes to the great CV Nair.
- P.Arvindan
With profound grief I share the sad demise of C.Vijayan Nair with all those who know him as CV Nair. He has been an expert in agricultural finance and a master orator besides a great writer. As a stenographer when I was attached to him, it was a pleasure to take down his dictation which helped me in improving my language and such was his flow of language and with words he will knit a garland. Precise with points, he used to face any deliberations - as I had opportunities to take down the proceedings of several meetings in which he participated and with authentic information he will put forth his views. At the same time he is very jovial and used to take everything light and a great analyzing personality. I had a small incident to quote here about the jovial quality of CVN. When I was assisting Mr.V.V.Mahadevan in his capacity as the Private Secretary to late B.N.Srivastava, who was then ED in charge of administration, CVN was then holding the charge of Chief Manager, DAPM. He used to come to meet for discussion of official cases with BNS and in one of the discussions, BNS was in a signing spree of cases in the presence of CVN and when I happened to enter the cabin of BNS, CVN called me “Sridharan, please bring all the pending cases now itself as BNS is in an initialing mood and this is the time to clear off all cases” BNS looked at CVN and laughed and when I was about to ask as to its seriousness, CVN said it was a joke that he cracked and it should not be taken seriously and I should not bring all the cases at that point of time. CVN is known for his critical analysis and at the same time a person with cool, calm and above all a very good humane displaying his simplicity in every approach.In his demise, we have lost a very simple but brilliant officer who also led the Officers community through his great leadership quality both in the official field as also in the Officers’ Association’s activities. Let me join all to pray - may his soul rest in peace!
- R.Sridharan
Former Principal Private Secretary to Governor
Meru Cabs asks RBI to extend recurring payment rules to foreign players like Uber
......Meru says foreign players like Uber are able to circumvent the mandated two-stage credit card authentication by routing their transactions through foreign payment gateways, on which RBI has no jurisdiction. This allows them to store credit card details and use them for recurring transactions without the RBI’s mandated 2-factor authentication. The report also points out that Uber can also charge consumer’s credit card directly in case of taxi cancellations, which is currently not available for any other Indian taxi players..........
Notice to RBI on Unilever petition
Unilever has filed a petition in the Bombay High Court against the Reserve Bank of India's directive asking it to file a revised application for preferential allotment of shares in Hindustan Lever Ltd (HLL). A notice to this effect was served on RBI on Friday. Bank officials confirmed this today. The application follows the move by............
Govt to sell stakes in PSBs instead of recapitalisation
The government stake in most public sector banks (PSBs) will fall as and when they access capital markets to fund their growth and meet the Basel III requirement. But, the government will continue to hold majority stake in all the banks. The annual recapitalisation exercise for banks is likely to be replaced by selling stake to retail investors. As a part of the stake selling exercise, the public sector banks will have a special offering for retail investors to give them a direct ownership. The government ........
RBI will work with govt on monetary framework: Raghuram Rajan
.........“Hopefully, by the end of the year, we think the economy is on course to come down to a consumer price index (CPI) inflation rate of about 8% and by the end of next year, to a level of 6%, and we will be in discussion with the government on monetary framework made in the budget announcemt..................
Budget 2014: Ground set for turf war between RBI and government
A battle for regulatory turf seems to be in the offing between Reserve Bank of India and the government with the finance minister pushing proposals by the Financial Sector Legislative Reforms Commission which was roundly criticized by RBI governor Raghuram Rajan...........
FM in tune with Rajan plans on monetary policy, new banks
..............The government also said norms of on-tap bank licences as well as niche banks will be announced during the course of the year – an initiative which RBI is perusing actively. “After making suitable changes to current framework, a structure will be put in place for continuous authorization of universal banks in the private sector in the current financial year. RBI will create a framework for licensing small banks and other differentiated banks,” Jaitley said.................
Union Budget 2014-15: Govt, RBI to devise modern monetary policy framework
.........The tone for inflation targeting was set by Finance Minister Arun Jaitley in his budget speech when he stressed on a modern monetary policy framework to meet challenges of an increasingly complex economy. RBI Governor Raghuram Rajan was in agreement with Jaitley when he said the central bank would develop the framework in consultation with the government during the year. Retail inflation rose to 8.28 per cent in May on account of rising food prices. Through the new mechanism, the government and the Reserve Bank of India (RBI) may look to bring down consumer inflation to 8 per cent by this year-end...........
Forward looking but not a dream budget for SMEs
..........One of the proposals that makes sense is the government proposing to set up a committee to examine the flow of funds to SMEs. The proposed committee will have representatives from Reserve Bank of India, Finance Ministry and the Ministry of Small and Medium Enterprises. This was very much needed. Although it is common knowledge that SMEs in India face severe challenges in terms of access to capital at different stages of running an enterprise and also grapple with high interest rates, government records on the problem are dismal. A centrally monitored ............
Budget 2014 displays intent towards financial inclusion
............... "After making suitable changes to current framework, a structure will be put in place for continuous authorisation of universal banks in the private sector in the current financial year. RBI (Reserve Bank of India) will create a framework for licensing small banks and other differentiated banks. Differentiated banks serving niche interests, local area banks, payment banks, etc., are contemplated to meet credit and remittance needs of small businesses, unorganised sector, low income households, farmers and migrant workforce."..........
Liberal infrastructure funding regime for banks
..........Put simply, these funds will not attract norms like Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR) and those on priority sector lending. While the finer details are awaited, banks will have more to lend for funding long-term infra projects. At present, for every Rs 100 crore raised through deposits, banks have to keep Rs 4 crore with Reserve Bank India as CRR (which earns zero interest income) and invest Rs 22.5 crore in government bonds to meet SLR norms. Beside, Rs 40 crore has to be lent to priority sectors. ........
Too early to declare victory over non-performing assets battle: RBI Governor Raghuram Rajan
............."I think, the most immediate problem we have to confront is that of rising level of stressed assets in the banking system. Fortunately in the last quarter those levels of stressed assets tapered off or flattened out. But, it is too early to declare victory," ................
AAP slams Naidu over farm loan waiver
Chief Minister N. Chandrababu Naidu may have heaved a sigh of relief after the Reserve Bank of India gave its nod for rescheduling of the farm loans, but the TDP supremo has drawn flak for ‘inviting’ the loan waiver trouble upon a new fledgling government. “Mr. Naidu used the loan-waiver promise as bait to garner votes in the elections and landed on a sticky wicket in the aftermath of polls. He should have done his home work properly on the feasibility of the proposal,”...........
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