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Tuesday, September 2, 2014
RBI Aapkee Hain Kaun? - Surendra Khot
Now for the hard part
............A hypothetical question, though one relevant from the perspective of central banking, is, would Dr Rajan - the top-notch academic who has often warned about the shortcomings of an excessive reliance by developed economies on central banks and monetary policy to fix their problems, and not enough on structural reforms - have recommended such swap windows if he were not a central-bank governor? In other words, did Governor Rajan, the practitioner, lower the bar for policy options, from doing what is primarily right but painful in the short-term to doing what should be a no-no even if it is effective in the near term? The above is not a new dilemma for central bankers..............
RBI Guv Rajan completes a year in office: Report card
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| Duvvuri Subbarao, former Governor, RBI |
India needs RaRa
My View on "Raghuram Rajan is the best hope for UPA":
247Reserve Bank of India has never been following text books. Once inside, Dr Rajan also has been following RBI's practice of allowing monetary policy to evolve based on the need of the day. Those who are finding fault with his approach are those who have gravely misjudged both RBI and Dr Rajan. Dr Rajan's actions so far have not proved that he is improving his CV for his next job. India needs him for a much much longer period than the present term of 3 years and in all probability, his career in RBI may last longer than the majority of earlier Governors. In India, people respect some of the Ex-Governors of RBI much more than IMF Chiefs who generally work for their constituency and bosses.
- M.G.Warrier
RBI quietly drops MP Rajeev Gowda from Central Board
........According to RBI’s communications head, Alpana Killawala, "Shri Rajeev Gowda ceased to be a member of our Central Board effective June 12, 2014." Interestingly, the RBI did not issue a press release announcing Dr Gowda’s exit. There is no mention of him in theannual report page, which mentions the directors of the central and regional board, although he was certainly a director for a part of the period of the annual report. Dr Gowda’s website mentions that he is a “former” director on RBI’s central board.........
Meeting with Sh R L Das CGM-in Charge HRMD
Sarvashri S S Didolkar,Advisor,R P Donde,President,T G Nair,A P Kale,T P Kunhiraman,L R Parab,Vice Presidents, M B Talekar,General Secretary,Sambhaji More,Sedretary and M N Patil,Treasurer representatives of our Association met Sh R L Das,CGM-in-Carge HRMD on 22-08-2014 after the post renewal meeting of Group Mediclaim Policy in the morning.Sh Das informed the rorted outepresentatives that the matter relating to revision of pension is moving at faster speed and response of GOI is expected at any moment and in any case before Dipavali as all issues have been sorted out with the Government.He further informed that the Governor himself is seriously pursuing the matter at the highest level and FM Sh Arun Jetley On our requesting,the CGM-in Charge on expediting enhancement in ex-gratia to pre 1986 retirees,he stated that pension revision,opening of pension option and enhancement in ex-gratia to pre 1986 retirees will be resolved at one go.We thanked Sh Das for the update.
- Mohan Talekar
(forwarded by L.R.Parab)
No text book
My View on "Raghuram Rajan is the best hope for UPA":
Reserve Bank of India has never been following text books. Once inside, Dr Rajan also has been following RBI's practice of allowing monetary policy to evolve based on the need of the day. Those who are finding fault with his approach are those who have gravely misjudged both RBI and Dr Rajan. Dr Rajan's actions so far have not proved that he is improving his CV for his next job. India needs him for a much much longer period than the present term of 3 years and in all probability, his career in RBI may last longer than the majority of earlier Governors. In India, people respect some of the Ex-Governors of RBI much more than IMF Chiefs who generally work for their constituency and bosses.
- M.G.Warrier
From RBI Governor Raghuram Rajan to Goa CM Manohar Parrikar: 10 famous IITians who didn't end up as engineers in India
It is a dream for every Indian school child studying science in India to get into the prestigious IITs. The Indian Institute of Technology is a name that tops the list when you ask an engineering enthusiast about their future plans. The coveted engineering institute has produced some of the most famous Indians who hold responsible positions in Indian government. ........
RBI's Consumer Charter undermined by ATM usage diktat
................Now, consider how this plays out in connection with RBI’s diktat to restrict free usage of ATMs. Currently, banks have the freedom to decide their charges and interest rates without reference to RBI. So, if some banks found it prudent to curb usage or disallow third-party transactions, they could have gone ahead and done it without RBI’s intervention. So why the RBI directive? To make a anti-consumer action look like a regulatory diktat? The Indian Banks Association (IBA) used its influence on the central bank to ensure that angry customers do not vote with their feet and switch banks. Getting RBI to issue a directive removes the problem. ...........
RBI rule handicaps India's infrastructure hopes
A RBI ban on banks buying new issues of infrastructure bonds has handicapped Prime Minister Narendra Modi's chances of gathering billions of dollars needed for mega-projects through the bond market.......
Bank Accounts Not Inoperative if Dividend Cheque Credited in 2 Years: RBI
..............."Since dividend on shares is credited to Savings Bank accounts as per the mandate of the customer, the same should be treated as a customer induced transaction," the Reserve Bank said in a notification..................
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Why Regulators Fail To Tame ‘Shadowy’ Banking Players
........Despite consistent efforts by Reserve Bank of India (RBI) and financial markets regulator Securities and Exchange Board of India (SEBI) to bring operations of shadow banking players under the ambit of financial scrutiny, these firms have continued to thrive, while triggering insurmountable risks that are typically associated with unregulated financial products. The reason is:........
Current account deficit narrows
....... “Notably,” said the RBI, “non-gold imports recorded a modest rise of 1.3 per cent as against a decline of 0.6 per cent in the corresponding quarter of last year reflecting some revival in economic activity.”...................
RBI amends Basel III guidelines for banks
.........The RBI said banks can now issue additional Tier 1 capital to retail investors subject to board approval. The RBI also said call options on the additional Tier 1 debt will now be permissible at 5 years versus 10 years earlier............
Set timelines to process loans proposals: RBI tells banks
....."Banks should clearly delineate the procedure for disposal of loan proposals, with appropriate timelines, and institute a suitable monitoring mechanism for reviewing applications pending beyond the specified period," RBI said in a notification. The central bank also asked banks to make suitable disclosures about timelines by conveying credit decisions through their websites, notice boards and product literature, among others. However, it said that banks should not compromise on due diligence requirements...........
Using Digital Handwriting to SECURE MOBILE BANKING
.....Apple plans to turn its next iPhone into a mobile wallet through a partnership with major payment networks, banks and retailers. The agreement includes Visa, MasterCard and American Express and will be unveiled on September 9 along with the next iPhone. The new iPhone will make mobile payment easier by including a near-field communication chip. That advancement along with Touch ID, a fingerprint recognition reader, will allow consumers to securely pay for items in a store with the touch of a finger. ...........
Read - ET
A big bang reform that may be spot on
...........Bank nationalisation saw a huge expansion in branches into the hinterland. The expansion of the branch network, in turn, caused money kept under the mattress to be swept into the banking system. Cash under the mattress may be savings for an individual but these do not translate into “saving” for the economy. “Saving,” in economic terms, is whatever is available for lending or investment, that is, savings that come into the financial system. Bank nationalisation caused the saving rate.......
Banks keep festive offers low-key as RBI frowns
............This is because the Reserve Bank of India (RBI) is not comfortable with the idea of loan rate discounts for new customers, depriving older ones.“RBI has been questioning banks about these special offers in the festival season. If the cost of funding hasn’t suddenly become favourable, how can banks introduce a cheaper rate of interest this time of the year?.......
BAD LOANS - Willful Defaulter Alert!
........Thankfully , there are other forces at play . The regulator has become more alert since the fiasco at United Bank.While no director of the bank was pulled up and no regulatory official was made accountable, there are frequent meetings between banks and the RBI these days for early detection of sticky loans. A surge in the stock market will help leveraged companies with excess capacity to cut debts.Bankers are asking questions they should have asked long ago, like the source of equity money organised by a promoter who floats a special purpose vehicle to borrow and fund a project........
Read - ET
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