.....While the Basel III guidelines improve the ability of banks to withstand financial duress by implementing more stringent capital requirements, raising the capital to fulfil the Basel III requirement is a major challenge for Indian banks. Basel III released in December 2010 is the third in the series of guidelines written by the Basel Committee on Banking Supervision (BCBS) whose mandate is to set the reform agenda for global banking sector. Basel I and Basel II are earlier versions and were less stringent. Named after Basel in Switzerland , which is the headquarter of Bureau of International Settlement (BIS), the Basel norms focus on risks to banks..........
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.
Monday, October 22, 2012
Student falls prey to impostors
......Scamsters said the payments will be routed through Reserve Bank of India and put up a fake website resembling the central bank's original website. Further, the email is sent by fraudster with complete address and contact details as RBI employee. The cyber crime cell of UP police has traced the gang to Delhi........
Read - TOI
'1L ATMs to be opened in next 4 yrs'
.......The study titled 'The Indian ATM Industry: Gearing Up for the Next Phase of Growth' said, several forces are driving the heightened importance of ATMs in India. The biggest push has come from the Reserve Bank of India. RBI, in conjunction with the government of India, has been focusing on the issue of financial inclusion for some time now, it noted......
Soon, open a bank account with the swipe of a finger
.............The Unique Identification Authority of India ( UIDAI) is ready with electronic know-your-customer authentication (eKYC) service which will pave the way to provide identity and address proof by just providing your fingerprints for biometric identification. Officials said the facility of a one-touch eKYC could start as early as next month after government and other agencies, such as Reserve Bank of India (RBI), notify the new norms that explicitly provide for Aadhaar as a valid identity proof.............
Over 50 conned by cyber thugs in 60 days
Cyber fraudsters have duped more that 50 people through the duplicate Reserve Bank of India (RBI) web page in the past two months. The fact came to light during the investigation of Devendra Singh con case, where...
Read - Hindustan Times
Code of Bank’s commitment to Customers: Long on promise but short on performance !
Despite core banking and full scale computerization, the quality of service in banks has generally deteriorated and the Code of Bank’s Commitment to Customers has done precious little to improve it. It is only by making the minimum of level of quality of service mandatory that public can hope to get trouble-free, stress free and tension free banking, which they rightly deserve. Banking Codes and Standards Board of India (“the Board”) has issued an advertisement in newspapers recently, inviting suggestions for improving the Code of Bank’s Commitment to Customers (“the Code”) introduced by the Board in August 2009 for compliance by banks and which is now due for review..........
Read - Moneylife
More credit to farm sector urged
.....the credit deposit ratio in the State stood at 115.53 per cent on June 30 as against the prescribed minimum of 60 per cent by the RBI and emphasised the need for resource mobilisation, especially in untapped rural, semi-urban areas. Minister for Cooperation Kasu Krishna Reddy, Minister for Handlooms Prasad Kumar, RBI’s Regional Director A,.S. Rao and Chief secretary Minnie Mathew also spoke.
Axis Bank forms new unit for i-banking
......The deal, first announced in November 2010, went through many changes because the Reserve Bank of India (RBI) refused approval, most notably because Enam’s founder chairman Vallabh Bhansali was offered an Axis bank board seat in the initial deal.............
RBI policy must prioritise price stability: Rangarajan
.........C Rangarajan, Former RBI Governor said the objectives of monetary policy have been growth and price stability amongst others, but the latter should be given priority. He further clarifies, though the RBI is saying that inflation is at an uncomfortable level, there has to be an idea about the comfortable level. Essentially, that would force monetary authority towards targeting a single number and that according to Rangarajan, can be reached through an ideal price stability..............
Read.........
Promise belied
.......The Reserve Bank of India has just released its regular survey of the finances of select public limited companies for the year 2010-11, covering a sample of 3,485 companies, and providing information on their aggregate foreign exchange expenditure and earnings.......
Too soon for central bank rewards
............The RBI gave the government an undeserved present when it unexpectedly reduced its interest rate by half a percentage point in April — the first cut in almost three years, and one that didn’t do its credibility to fight inflation much good. It’s too early for the government to expect another reward.
Universal slowdown, common dilemma
........The RBI, among others, feels handicapped in implementing monetary policy because of the absence of support from the fiscal authorities. Inflation is up on the ascendance. The RBI will continue to face its own dilemma-whether to focus on controlling inflation or encourage the flagging growth through possibly lower interest rates.
Relationship manager or salesman?
.......The more complicated part is the redressal mechanism. A bank is regulated by the Reserve Bank of India, but its insurance arm is under the Insurance Regulatory and Development Authority and the brokerage arm under the Securities and Exchange Board of India. Under these circumstances, you may have been sweet-talked into buying an insurance product by a bank employee, but the redressal may often lie with some other regulator...........
Caught in the gold trap
......Till restrictions were lifted on gold import and a few commercial banks were allowed to import gold and sell the yellow metal to jewellers and exporters in 1997, the spread between the London and Mumbai market prices was huge but that has shrunk dramatically. There is no incentive for gold smuggling any more but with the bank and post office branches selling gold coins to retail customer, we are facing a different problem—wider current account deficit. Historically, the government and the Reserve Bank of India have tried hard to wean away people from gold and bring the yellow metal out of the household closets for productive purpose without any success...........
Needed, a level-playing field for public sector banks
......Financial inclusion can never be complete without financial literacy. This can be achieved only by making the rural folk aware of all the banking products and how they can benefit by them. Much more needs to be done in the area of inculcating financial literacy if the purpose of financial inclusion is to be served...........
Central Bank adopts new management solution to speed up process, cut costs
Central Bank of India has implemented a human resource management solution (HRMS) package to improve the productivity of its 36,000 odd employees, ensure skill development and chart out succession planning. After automating all customer-centric functions through the core banking platform, the bank has done the same for its internal customers (employees), said Executive Director V.R. Iyer. The HRMS package, which has been implemented by IBM, has automated 30 human resource (HR) processes, including pay roll, leave application, reimbursement of hospitalisation, newspaper, and leave travel concession, and booking of holiday homes..........
FDI in retail: Much ado about nothing
........ Relying on the Foreign Exchange Management Act (FEMA), notably Annexure “A” of which contains prohibition of FDI in retail trading (except single brand which was partially opened up in 2008) the petitioner has alleged that the DIPP notifications have been issued in bad faith to over-reach the RBI, or more specifically the provisions of FEMA. Fortunately, the Hon’ble Court did not stay the FDI policy. However, the Attorney General (AG) who appeared for the Union of India was directed to ensure that RBI amends the FEMA regulation. This led to considerable media speculation on the oral observations ostensibly made by the Hon’ble Judges............
PMEAC member lambasts Centre, India Inc
........These reforms only have a symbolic value than real value. They did of course help in bringing in foreign institutional investors (FIIs) that stabilized the rupee and enabled to keep a check on inflation,” said M Govinda Rao, at a seminar on “Economic Reforms: Challenges and Opportunities for India Inc.” organized by the Bangalore Chamber of Industry & Commerce on Friday. Govinda Rao is also Director of the National Institute of Public Finance and Policy, New Delhi.........
Friday, October 19, 2012
RBI, Govt must move in sync - S.S.Tarapore
 |
| The meaning and significance of RBI marching together with the government is that the former takes charge of two flanks — inflation control and a sustainable exchange rate |
'80% bank grievances owing to lack of proper communication'
RANCHI: Reserve Bank of India (RBI), the Banking Ombudsman for Jharkhand and Bihar, on Thursday disclosed that over 80 per cent banking grievances from customers are due to lack of proper communication either on the part of the customers themselves or the bankers. The ombudsman also suggested that customers should be careful enough while signing papers during transactions with the bank, especially when taking loans. The customers were also warned of replying to any email or SMS which tell them about cash prizes that they have won.......
Army School wins RBI quiz
SHILLONG: The Army Public School of Shillong won the Shillong edition of Reserve Bank of India’s all-India RBI Inter-school Quiz on Wednesday. The boys’ team led by Ankur Das and Sachit Krishnan outsmarted other six finalists in the contest. There were 42 teams in the elimination round held at St. Edmund’s College Auditorium. Urban Affairs Minister, Ampareen Lyngdoh, gave away the prizes to the winner. The team also entered the semifinals for East Zone. Barry O’Brian conducted the event. Sanjiv Bokil, DGM, SBI, Shillong gave away cash prizes of Rs 5,000 to winner and Rs 4000 each to two runners-up teams.
The Shillong Times
14th Finance Commission: Union Cabinet nod for setting up panel
NEW DELHI: The Union Cabinet on Thursday gave its nod to setting up of the 14th Finance Commission and also finalised its terms of reference. Former RBI Governor Y V Reddy is tipped to be the chairman of the Finance Commission, a Constitutional body. The Commission, set up after every five years, decides the formula for sharing of central revenue between states and centre...........
Who wants an expensive hedge?
....RBI’s role is thus to ensure a non-volatile rupee, educate borrowers about risk management, wean them away from the ephemeral benefits of unhedged exposure and urge banks to use more caution. RBI in its mid year credit policy of October 2011 had warned banks about this corporate tendency to remain exposed. It urged banks to recognise the credit risk in lending to corporates who had unhedged foreign loans on their books. Unfortunately, if domestic lenders shy away, the foreign and offshore dollar lenders will show up on the doorstep of such borrowers.....
Read - FE
RBI still cautious; govt likely to be kept waiting for rate cut
.......The RBI, however, is not yet satisfied with the government’s fiscal consolidation measures and awaits more steps to reduce the deficit before it pulls the trigger on rates, officials close to policymaking said. “There will always be pressure from the ministry, but we have to be clear in explaining to them the problems on inflation,” said one RBI official, who declined to be identified due to the sensitivity of the matter.............
New banking licences: Clear the dead wood first !
........It may be recalled that a little more than two years ago, the then finance minister Pranab Mukherjee announced that licences will be given to private companies to set up commercial banks. It has taken quite some time to prepare the draft licensing norms but the final version may take some more time since the Reserve Bank of India (RBI) wants to have adequate powers to directly intervene in the newly-established (and licensed) banks should they act out of step with its direction and or act in an unacceptable manner.......
Banks may need more capital than RBI’s estimates: Rangarajan
.....Financial innovation, the periodic entry of new banks and better planning by banks are the need of the hour to keep pace with the growing needs of the economy, C. Rangarajan, Chairman of the Prime Minister’s Economic Advisory Council, said. Addressing a gathering at an award function to felicitate the top performing financial institutions in the country, the former Reserve Bank of India Governor said the Indian banking system is in a good shape. However, there is a need to be watchful and plan well in advance to match the requirements of a growing economy, he added......
RBI seeks sops for remitting profits
NEW DELHI: The Reserve Bank of India (RBI) has asked the finance ministry to provide incentives to Indian companies that have invested abroad to repatriate a part of their profits to India, in a bid to increase the quantum of stable foreign inflows compared with borrowed funds that have become the mainstay of India's capital flows. .....
Read - ET
Upto Rs 2 cr in agri loans to qualify for priority sector status
The Reserve Bank of India (RBI) has revised lending norms under which loans up to Rs 2 crore to agricultural companies will qualify for PSL (priority sector lending) status. Under the revised norms, any lending, with an aggregate limit of Rs 2 crore, by banks to corporates including producer companies of individual farmers, partnership firms and co-operatives of farmers in agriculture and allied activities like dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture, would qualify for priority sector lending.........
Are you ready for prepaid cards?
........Using prepaid cards instead of cash is much convenient for carrying, management and tracking. Besides you tend to remain within your budget and spend the calculated amount. With wide acceptance, prepaid cards are easy to use.Aadhar-enabled micro-ATM delivers money to villagers
......Unique ID Authority of India in collaboration with United Bank of India and Tripura Grameen Bank today undertook field trial of Aadhaar-enabled payment system with online authentication of biometric of the beneficiaries in Mandwi Block. "Our endeavour was successful today," Dinesh Mushahary, Chairman of Gramin Bank Tripura, who was present during cash transfer, said......
Read - FE
The RBI and its inflation dilemma
..............Although the clamour for a rate cut is high and it has a direct impact on sentiment, a comfortable liquidity situation this year has resulted in a significant fall in market interest rates and the cost of funds for banks. So even if the RBI is unable to cut the repo rate on Oct. 30, we still expect market interest rates and funding costs to remain benign as the RBI would infuse further liquidity into the system through CRR cuts or open market operations......
Inflation vs growth: Stiglitz is wandering in the wrong continen
...........For instance, in response to a question on whether the Reserve Bank of India (RBI) should continue or abandon its tight monetary policy which, intended to tame inflation, has seemingly stifled growth, Stiglitz say:
“In my view, (the) adverse effects of inflation are a bit exaggerated. 8% inflation is normal in a developing country whereas growth has the ability to keep millions (fed), creating jobs and opportunities. Raising interest rates is unlikely to make a ‘big’ dent on inflation. In a trade-off between growth and moderate inflation, I would plump for growth.”.........
RBI must cut rates to prop up growth, say bankers
............All eyes are on RBI Governor D Subbarao who is to unveil the second quarter monetary policy on October 30. While there is growing optimism that he may walk with the government following the rash of reform measures in the past one month, the latest inflation numbers have poured cold water on any such hopes.........
Rethinking RBI recommendations for microfin institutions
.........We conclude by acknowledging RBI’s intention to effectively protect the microfinance clients, while providing them the benefits of access to credit and other financial services. However, much debate surrounds on how to achieve this goal and what trade-offs be made between expansion of services, customer protection, and institutional requirements.
Functioning of SAT sans presiding officer challenged
....The procedure for appointment of a ‘member’ of SAT requires the presiding officer to be a part of the Selection Committee. The remaining two members of the Selection Committee are the Governor of RBI or his nominee, and the Secretary/Finance Secretary, Department of Economic Affairs..........
No probe ordered into Wal-Mart: Govt
...The Financial Times said the Commerce Ministry last week asked the Reserve Bank of India (RBI) to investigate allegations that the world's largest retailer had "clandestinely and illegally" invested in supermarkets in the country. The accusations were made by a Communist Party member of parliament in a letter to the prime minister. An Ministry of Commerce and Industry official, who declined to be identified, said the ministry had forwarded the complaint on October 10 to the RBI for examination, but said the ministry had not asked for a formal probe into the matter.......
Banks to become EC's eyes and ears during polls
.........In a communication to the Indian Banks’ Association, the poll body said it was empowering district election officers (DEOs) to ask for this information, to maintain purity in the election process. Earlier, the ECI had brought the income tax (I-T) department into the web of information sharing on money transactions relating to polls. Banks would also have to furnish information on unusual transfer of amounts through the Real Time Gross Settlement System (RTGS), an electronic payment channel. They’ve been told to watch movement of funds from one account to several others in a district or constituency without any precedent for such transfer. Any cash deposit or withdrawal exceeding Rs 1 lakh from a bank account of a candidate or spouse or dependents mentioned in the poll affidavit filed by candidates also comes under the ambit...........
Lokayukta registers FIR against Manda Thete
........Notwithstanding the fact that a case was already registered against her, five officials of the bank entered into an understating with her and settled the issue in return of Rs 53 lakh. According to the SPE officials, the legal advisors submitted a false legal opinion to the bank that paved the way for clearing obstacles in the settlement. "Reserve Bank of India ( RBI) and state government rules forbid any such settlement on defaulted loans, that too when a criminal case has already been registered," said the SPE officer.
Thursday, October 18, 2012
Rangarajan Bats for New Banks
The Reserve Bank should come up with entry norms for issuing new banking licences, the chairman of Prime Minister's Economic Advisory Council C Rangarajan said here today. "If the domestic banking system is to remain competitive over time, there should be periodic entry of new banks. A closed system can only become oligopolistic. "Such a threat should now be eliminated and the central bank should lay down entry norms and also decide on who satisfies the criterion," Rangarajan said at banking award function organised by commodity bourse MCX.....Cabinet to take up formation of 14th Finance Commission
Tomorrow, the Cabinet is likely to discuss the constitution of the 14th Finance Commission and the National Automotive Board. The 14th Finance Commission would advise on the devolution of the Centre’s taxes between Centre and states, besides other aspects of the Indian economy, for the 2015-20 period. Former Reserve Bank of India Governor Y V Reddy has emerged as the front runner for the post of the commission’s chairman. Officials said former advisor to the finance minister Parthasarathi Shome and former finance secretary Sushma Nath might also be appointed to the commission. At tomorrow’s meeting, though the Cabinet is expected to clear the terms of reference of the commission, it is unlikely to name the chairman...........
Bonds yields fall; RBI Deputy Governor comments aid
MUMBAI: Bond yields fell on Tuesday after a central bank deputy governor's comments about the need for fiscal and monetary policy to work in tandem slightly raised hopes for rate cuts at the upcoming policy review. Reserve Bank of India Deputy Governor H.R. Khan said both the central bank and the government need to work together to bring down the fiscal deficit and control inflation.........
Read - ET
Seal it, lock it, forget it? Bank lockers aren’t entirely risk-free
What does the RBI say about the locker policies?
The RBI policy states: “The bank will, in no way, be responsible / liable for the contents kept in the locker by the hirer. In case of theft, burglary or similar unforeseen events, action will be initiated as per law.” The central bank has also said even if banks do not have an idea about contents of the locker, they should take necessary steps to protect the same. There were also a few cases in the past where the victim has received compensation on loss or damage of locker contents......
Read - DNA
Read - DNA
Look beyond 'Gang of 4' to promote women SHGs: Jairam Ramesh to banks
.....Addressing a function "NABARD award for rural innovations 2012", the Minister said the Rural Development Ministry is working very closely with NABARD, an apex development bank with a mandate for facilitating credit flow for promotion and development of rural agriculture and village industries, for increasing the self-help groups in northern and eastern Indian states. "I am hopeful that very soon the type of success we witness in south India will be visible in states like Bihar, Orissa, Madhya Pradesh,".....
Read - FE
With its glory years behind it, microfinance adapts
.......The MFIs are hoping that once the central government passes the MFI Bill, the Andhra Pradesh state law will stand nullified, and they will be able to collect their dues. “It is crucial that the MFI Bill is fast-tracked and heard in Parliament at the earliest. This will provide clarity and will help in the recovery of the sector,” said Alok Prasad, CEO, MFIN. Cleary, the struggle for survival is not yet over for MFIs, but a silver lining in the clouds is just about visible.
Amendment to Cooperative Societies Act declared unconstitutional
The Calcutta High Court on Wednesday declared as unconstitutional an amendment brought by the West Bengal government to a section of the West Bengal Cooperative Societies Act, 2010......
SBT to hire specialist cadre officers
State Bank of Travancore (SBT) has invited applications for appointment of 37 vacancies under specialist cadre officers. Listed vacancies are those of deputy managers and assistant managers in systems, civil engineering, electrical engineering, official languages, law and security......
Xpress Money plans to offer more cash transfer channels
......According to Sudhesh Giriyan, head of Xpress Money Business, as per RBI’s Money Transfer Service Scheme (MTSS), the company is currently permitted to operate only in the cash-to-cash segment. “We are in talks with the RBI. Once it gives us a go-ahead, we will launch these services,” he said.......
Build up forex reserves now - A.Seshan
......Taking advantage of the appreciation of the currency, RBI should start building up its reserves by buying forex in small amounts, say, $100-200 million, on a more or less daily basis. It will not upset the ..............
RBI changes rules on priority sector lending
Mumbai: The Reserve Bank of India (RBI) on Wednesday amended its guidelines on so-called priority sector lending to encourage commercial banks to undertake more direct lending to farmers. RBI has included loans to corporations including farmers’ producer companies of individual farmers and cooperatives of farmers directly engaged in agriculture and allied activities under direct lending............
RBI has not done its homework on rules for lending against gold: Rahul Bhasin
............ RBI says if you lend against gold, you keep 12.5% capital adequacy---this applies only for these private companies and not for the banks. If you see everything, RBI has done is to ruin these folks, but they are still surviving. Why? Because there’s a huge unmet need. The distribution they have created are larger than ICICI Bank and Axis Bank today..........
ECB norms for NHB, HFCs likely soon
MUMBAI, OCT 17:
The Reserve Bank of India (RBI) is likely to come out soon with guidelines pertaining to external commercial borrowings (ECBs) for National Housing Bank (NHB) and housing finance companies (HFCs) for affordable home loans. “The government has already allowed NHB and some HFCs (to raise money through the ECB route) for affordable housing. The guidelines are being finalised by the RBI and they are going to notify them soon,” R V Verma, Chairman and Managing Director, NHB said on the sidelines of a summit here.........
Security system for Padmanabha Swami temple cleared
...An expert committee looking into the security had suggested in the Supreme court on March 29 that a high security vault be built on the line of RBI, immediate release of funds by government for security measures and hiring an international agency with sufficient expertise to ensure fool-proof measures with particular emphasis on maintaining the traditions, culture and confidentiality of the assets.
OECD on India's economic growth
..........Besides, the former Reserve Bank Governor Y V Reddy -- who took part in a panel discussion here -- hailed the recent decisions on economic reforms taken by the government. "I think the measures that have been announced in the recent past have added to good sentiments," Reddy told reporters on the sidelines of the event.
Rise of rupee leads to cash shortage in local banks
With the rupee appreciating, a cash shortage has once again hit banks, as seen in their overnight borrowings from the repurchase window of the Reserve Bank of India (RBI)............
Read.........
Banks’ 2012/13 loan growth may fall short of RBI projectio
.....Banks’ advances grew 2.2 percent to 48,093.84 billion rupees as of October 5 since the start of the fiscal in April, data from the Reserve Bank of India showed on Wednesday. In the year-ago period, loans grew 7.1 percent..........
Read........
Overheard: What Ben and Subbarao schmoozed about
.......RBI Governor D Subbarao would have had a tete-a-tete with Ben Bernanke. Two central bankers coming together have many things to talk about and it would have been a private conversation. Assuming one had overheard the conversation and reproduced a part of it it, it would have been as follows............
Read.......
India Inc wants RBI sentiment booster
Apart from rate cuts, the representatives of industry bodies and exporters' organisations that met the Reserve Bank top brass today sought various sector-specific measures in the monetary policy review. Governor D Subbarao would announce the second quarter monetary policy on October 30. While there is a growing optimism that he may go along with the government following the reforms rolled out in the past one month, the latest inflation numbers may act as spoilsport........
Read - Indian Express
RBI may not go for rate cut in view of inflation: Parekh
The Reserve Bank may find it difficult to cut interest rate in its second quarter monetary policy review later this month in view of high inflation, HDFC Chairman Deepak Parekh said today. "Inflation numbers have marginally tweaked up. It is very difficult for RBI to cut interest rates. I don't think this time interest rates will come down because (inflation) numbers don't justify reduction," he said.........
Wednesday, October 17, 2012
Aiming for growth without tears
........It is in the above global and local contexts that Growth With Financial Stability is refreshingly timely. The book, which is focused on India and offers extensive and detailed analyses, is written by Rakesh Mohan, perhaps best remembered as a former Deputy Governor of the Reserve Bank of India (RBI). Mr Mohan is not new to policy making, but it was the second (2005-2009) of two stints at the central bank when he seemed to come into his own.............
Prof Acharya nominated to RBI board
In exercise of the powers conferred by clause (c) of sub-section (1) of Section 8 of the Reserve Bank of India Act, 1934, the Central Government has nominated Prof. Damodar Acharya, as a Director on the Central Board of Directors of Reserve Bank of India for a period of four years with effect from October 12, 2012.
Read - Brief profile
DPS win RBI quiz
BHOPAL: Delhi Public School (DPS) Bhopal won the Bhopal leg of the inter-school quiz contest organised by the Reserve Bank of India(RBI) on Monday. Organised at Campion School Auditorium, Arera Colony, the quiz was a part of the bank's objective to spread financial literacy among school going children to understand the bank and banking system. The program was inaugurated by P R Ravi Mohan, Regional Director, RBI, Bhopal. Piyush Trivedi, vice chancellor, Rajiv Gandhi Proudyogiki Vishwavidyalaya (RGPV) Bhopal was the chief guest. The quiz was hosted by quiz master Ryan Shaw and his team.......
Follow the rules of the game
........ the Supreme Court has suggested to regularise the position by requesting the Reserve Bank of India (RBI) to amend the Foreign Exchange Management Act (Fema). This was all the apex court could do to salvage the situation for a government that is already in the dock. UPA-II’s fire-fighting team should take the message of the Supreme Court ruling, that is, to follow the rules of the game in what it wants to do. The court must have been sadly aware that it might be odd to ask RBI to amend regulations in the Fema to regularise an executive decision of the government — which should have been issued after consultation with RBI...........
RBI launches inquiry Into APSMFC scam
The Reserve Bank of India (RBI) officials on Monday started an inquiry into the bank accounts of the scam-hit Andhra Pradesh State Minorities Finance Corporation (APSMFC). The state minorities welfare department had written a letter to the RBI requesting them for recovery of money from Vijaya Bank, where APSMFC has its account. The department officials told Express that the inquiry would be completed in the next few days............
RBI to set aside funds for buying illiquid gilts
The Reserve Bank of India (RBI) is working with the government to set aside funds for buying illiquid gilts from the market. “Over a period of time we will have some budget where we will try to repair some of those securities in which volumes are low, and create volumes for those securities which have higher volumes,” said Harun Rashid Khan, Ddeputy Governor, RBI, on the sidelines of a banking summit organised by the Financial Times-YES Bank on Tuesday........
NBFCs, infra finance cos ask RBI to relax ECB norms
....Financial market players like NBFCs, the Finance Industry Development Council (FIDC), the Fixed Income Money Market and Derivatives Association (Fimmda), Foreign Exchange Dealers' Association (FEDAI), the Primary Dealers Association, among others, met the RBI top brass, including Governor D Subbarao, this evening at the customary pre-policy meeting. "We requested the Governor to look at relaxing the ECB (external commercial borrowings) norms for NBFCs and asset financing companies," FIDC Director General Mahesh Thakkar told reporters after the meeting........
Forex market intervention only on severe volatility: Khan
The Reserve Bank will intervene in the forex market in case of extreme volatility of the rupee as it has done in the past, RBI Deputy Governor H R Khan said here on Tuesday. “(When) there are extreme situations where there is extreme volatility...we have intervened in the past. If there are cases of extreme volatility, we will also intervene in the future,” Khan said on the FT—Yes Bank event......
Read - HBL
Government's fiscal policy, RBI steps have to be in tandem: HR Khan, RBI Deputy Governor
..............Despite government pressure on the RBI to ease monetary policy, most market participants expect the central bank to leave rates unchanged at its policy review on Oct. 30, due to concerns over inflation and the fiscal deficit. "As we have articulated time and again, it (monetary policy) has to be in tandem with the fiscal policy," HR Khan, a Deputy Governor of the RBI, said in answer to questions levelled during a banking conference. "It has to be a joint venture. It is not a solo play. Fiscal deficit is one major concern in the macroeconomic scenario so that has to be handled ... Supply-side response is also needed for inflation management." .........
Credit where due
......The RBI analysis is also candid about the fact that for the miniscule section of small enterprises that gets bank finance, prime lending rates start at 16 per cent. In other words, they have to generate returns of at least 20 per cent or more to service their loans. With such a high cost of capital, it is obvious the units regularly make the choice to either bleed their labour or their capital instead of attempting a fresh loan, even when they want one.........
Co-op. bank sets itself Rs. 300-crore deposit target
.......Addressing a media conference here, bank chairman and secretaries T. Ramanjaneyulu and C.V.S. Subrahmanyam respectively allayed the fears of customers following allegations against the bank in recent times. They also cited some of the reports in a section of media on the functioning of the bank. “Reserve Bank of India, which is the custodian of the depositor or customer, is safeguarding the interests of the public and we are abiding by the rules. We are working in accordance with the rules of the RBI and partly by the co-operative department,” said Mr. Subrahmanyam..........
Not considering merger or acquisition of any bank: ICICI
........With reference to the news item appearing in a leading financial daily titled "ICICI Bank looks to acquire Karnataka Bank", ICICI Bank Ltd has clarified that the Bank is currently not considering merger or acquisition of any bank........
Home loan interest rates: Games banks and financial institutions play
.....Now let us look at reasons that banks often point out for doing this and not adjusting rate of interest for all customers. Though banks do not have a very tangible answer for this they try to provide some answer which sounds logically flawed but hardly draws the attention of the regulator i.e. Reserve Bank of India (RBI) .The most unacceptable logic given is that since the cost of borrowing for banks for existing customers is high, they cannot pass on the benefit of reduced rate to existing customers. Hence they make the benefit available to new customers. This logic seems totally flawed.............
Bland analysis of sugar sector - A.Seshan
.....I am not happy with the analysis of cane arrears in the Report, having dealt with the matter during my days with the Reserve Bank of India (RBI). Referring to the issue, the Thorat group made the statement that the mills had several problems such as being unable to arrange for bank credit, though it did not provide any supporting evidence. Cane arrears persisted even in years when banks complained of a lack of credit demand and made excess investments in SLR securities........
First rate cut by RBI unlikely before Feb 2013: Sujan Hajra, Anand Rathi
........We have consistently maintained that the RBI will maintain monetary easing stance, but this will play out more through the liquidity channel rather than through the interest rate channel. Obviously there are some expectations particularly because of the sound bytes coming from New Delhi that there could be a rate cut. Obviously a rate cut cannot be ruled out, but our sense is that...........
Interest rates need to be reduced: SBI
........."We want that interest rates should be brought down by RBI (in its upcoming policy) so that business and industrial activity could get uplift which is facing stress at the moment," SBI Manging Director S Viswanathan told reporters in Ludhiana. He further said if RBI faces technical problem in bringing down interest rates then it can reduce cash reserve ratio so that banks could get more funds for disbursement............
Tuesday, October 16, 2012
RBI school quiz city edition held
GUWAHATI, Oct 15 – The Guwahati edition of Reserve Bank of India’s all-India RBI Inter-school Quiz was conducted today at the District Library auditorium. Maharishi Vidya Mandir, Rajgarh, Guwahati was declared as the winner of the quarterfinal. Barry O’Brien conducted the quiz. P.K.Jena, Regional Director for North Eastern States, RBI, Guwahati, inaugurated the event in the presence of a large gathering consisting of students, parents, and teachers of various schools of the city. A total of 33 schools participated in the event. There were two rounds – the first being the pre-quarterfinal which was a written test, where teams were required to answer the questions by writing in the answer sheets provided to them. Six teams qualified to participate in the quarterfinal round, which was an audio-visual round. The selected team will now participate in the zonal final to be held in November. The Regional Director, RBI, and the Director, Indian Institute of Bank Management, handed over the prizes to all the winners. All the participants were given attractive mementos, RBI’s special brochures and participation certificates. After the elimination round in all the 33 cities, one team from each of these places will be selected to represent in the zonal finals which would be conducted in mid-November and the national final will be held in Mumbai in December.
The Assam Tribune
Subscribe to:
Posts (Atom)