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, July 24, 2014
Dr Subbarao a real hero and a role model - Dr.T.V.Gopalakrishnan
Serv(ic)e to 'Re'serve - M.G.Warrier
My View on "Here's Why Subbarao Will Not Take Up a Finance or ...":
This piece has a message much beyond the written words. This should not be taken just as an appreciation of a position on post-retirement life taken by one individual. I, for one, have been pleading for considering candidates in the age group of 45-55 for top level appointments, giving them a tenure of 5 to 15 years at the top-most position/s and the organisation/government taking care of their financial needs to continue a lifestyle commensurate with the positions they held before retirement so that they need not use their ‘service’ before retirement to reserve job opportunities post-retirement.
- M.G.Warrier
Size does matter: Why RBI, govt are looking to re-design Re 1, Rs 2 coins
.....“In terms of the Coinage Act, 2011 the design of coins is a subject matter within the purview of the Central Government. This issue has come to our notice and we have taken it up with the Central Government. Both RBI and Central Government are looking into the matter,” RBI said in an email response to a question on the matter......
St. Patrick students enter RBI quiz zonal finals
Kickstarting the country-wide Reserve Bank of India quiz competition, students from Puducherry schools battled it out for a place in the zonal finals of RBIQ on Tuesday. St. Patrick Matriculation Higher Secondary School won the Puducherry round and will now compete in the zonal finals of RBIQ to be held in Chennai on November 7. Defending team, Petit Seminaire Higher Secondary School, was the runners-up. Six teams from a total of 93 reached the quarter final stage, according to a release from the institution. V. Vasanthan, Chief General Manager, RBI, Chennai, said the quiz was aimed at building a connect between the institution and the students . Lloyd Saldhana from Greycaps was the quiz master.
The Hindu
RBI school quiz
Pune : The Reserve Bank of India (RBI) will conduct an all-India inter-school quiz to create awareness and interest about the history and role of the central bank, other banking institutions, economics and current affairs. The Pune edition of the quiz will be held on August 11 between 9 am and 12.30 pm at the MES auditorium of the Maharashtra Education Society. It will be conducted by Lloyd Saldanha. Students from class IX to XII are eligible to participate and can register at http://www.cab.org.in
TOI
TOI
Need to review banking structure
My View on "Tweaking guidelines won’t do; RBI needs to re-thin...":
A well argued article. When the 'experiments' of RRBs and LABs happened, life was not this fast and 'globalisation' was yet to happen. Need of the hour is a review of the entire institutional structure in banking keeping in view the interests of all stakeholders. Only RBI can do this. Vested interests are diverting central bank's attention to less important aspects of banking. RBI has a history of institution building to meet needs of the time. SBI, UTI, IDBI, SIDBI, NABARD, Exim Bank, RRBs and the failed LABs are some examples to recall. Now, the role and structure of existing institutions need to be redefined and new institutions introduced to meet the needs of changing times. There are no 'business models' to copy. FSLRC which should have had a look at the position strayed away into unexpected pastures.
I am sure this article will explore possibilities of an overhaul of the institutional structure providing financial services in India (including banks) when it appears in ET.
- M G Warrier, Mumbai
Money or no Money, Modi's SAARC bank is good idea
.........Sure, a poor SAARC bank cannot compete with the World Bank, the new BRICS initiative or even the Asian Development Bank. But the thought behind the process seems to be refreshing: to have a multilateral lending agency for the region, which will not impose conditions or seek structural changes in governance to create business opportunities for donor nations. The SAARC bank will not work if it is modelled on existing behemoths that feed huge bureaucracies in world capitals. Also, New Delhi shouldn't try to play the big brother and curtail voting rights or choices of the smaller stakeholders. Anyway, the SAARC bank cannot be a runaway success as.......
Can India Achieve Financial Inclusion within the Next Few Years?
........The Finance Minister also put his weight behind the recent financial sector reform design of the Reserve Bank of India (RBI). Connecting every Indian family with the formal financial system within a year is a steep aspiration. And while it might take it little longer, a recent visit to India convinced me that over the past few months, the pieces have come together for India to make huge progress...............
Big Daddy banks will need to bulk up capital
...........A holistic consideration of all the criteria would throw up, as likely candidates for the systemically important tag, the following: State Bank of India, Punjab National Bank, Bank of Baroda, ICICI Bank and HDFC Bank. Foreign banks may not meet the size criterion but the RBI is likely to consider a few of them as systemically important, given their exposure to the derivatives market and specialised services. Citibank and Standard Chartered Bank may fit the bill here. These likely ‘too-big-to-fail’ banks will be required to set aside more capital........
Shield for big banks on way
..........The RBI will follow a two-step process to identify such banks. In the first step, the sample of banks to be assessed for their systemic importance will be decided. This will be followed by a detailed study to fix their scores and rank. Though smaller banks are likely to be excluded, the central bank has said that it will consider a few large foreign banks despite their relatively smaller balance sheet size..........
RBI working on bankruptcy exit system
........“We have a tendency in India that we do not like failures. We think everybody should pass and have distinction. We do not have a culture to accept failures. How to create that? There is a thinking in Reserve Bank, we have been thinking how to create a system so that people should voluntarily withdraw from an unattractive business,” RBI Executive Director B. Mahapatra said in his address on “Managing Stressed Assets” organised by Assocham..........
Fear of gold
.............What’s also worth keeping in mind is that while household physical savings rose from 10.8% of GDP in FY08 to 14.8% in FY13, this was exceeded by the 6.1 percentage point fall in government and corporate savings. In other words, blaming just households is unfair. Equally important, as long as global gold prices were rising, to a peak of $1,744 per troy ounce in the December 2012 quarter, imports kept surging even though import duties were hiked. It is when the global growth picture started improving that gold prices began falling........
Playing His Master’s Voice does not work with Modi
...........However, drawing a similarity between Narendra Modi and Sonia Gandhi on the issue of their ‘common passion’ for gold was possibly the most stupid thing, which both the Reserve Bank Governor Raghuram Rajan and Commerce Secretary Rajeev Kher learnt within weeks after Modi became the PM. Of the two bureaucrats, Rajan was cleverer. On May 20, RBI issued a new guideline for gold import that allowed few select trading houses, in addition to already permitted banks, to procure the precious metal to ‘boost exports.’ RBI’s export-linkage clause, the biggest irritant before gold merchants outside the higher import duty, remained untouched. While Modi was probably happy with Rajan’s half-action that gave an impression of easing import norms in keeping with the new PM’s wishes to please the country’s largest bullion trading and jewelry export community,...........
HPSCB launches RuPay KCC Debit Card
Chief Minister Virbhadra Singh today launched the ATM RuPay KCC Debit Card of Himachal Pradesh State Co-operative Bank (HPSCB) for its customers and the Bank has become the first Co-operative Bank in the country to do so. After launching the ATM card the Chief Minister said that the customers of the State have confidence and faith in the bank and more such branches require to be opened in the far-flung and remote areas of the State to benefit the people living therein........
RBI cancels registration certificate of Dectsche Securities
............."RBI cancels Certificate of Registration of Deutsche Securities India Pvt Ltd (DSIPL)," RBI said in a release. RBI said it cancelled the certificate of registration of the non-banking financial company (NBFCs) for carrying on the business of non-banking financial institution. "Following cancellation of registration certificate, the company cannot transact the business of non-banking financial institution," it added.
YES Bank wanted to remove Kapur as promoter: Counsel
........The counsel said RBI, in a reply to Rana Kapoor, managing director and chief executive officer of YES Bank, in January 2013, had said the regulator would agree to change Kapur's promoter status if two conditions were met. The first condition was that Kapur's shareholding should be brought down to less than five per cent before March 31, 2014; and Kapoor should also bring down his shareholding to less than 10 per cent in the same time period. However...........
Private banks gear up to issue infra bonds
............"In accordance with the recent RBI guidelines on issue of long-term bonds by banks - financing of infrastructure and affordable housing - the board of YES Bank has approved raising Rs 3,000 crore of long-term bonds, and the bank now intends to seek shareholder approval for the same,"............
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