........There have been a few other attempts at imposing rules on policymakers. The landmark Fiscal Responsibility and Budget Management Act of 2003 essentially meant that Parliament was using its powers to impose limits on government fiscal policy. Being part of the World Trade Organization automatically forces the Indian government to respect global trade policy rules. Another example: The terms of reference of the 14th Finance Commission headed by former Reserve Bank of India (RBI) Governor Y.V. Reddy has an interesting item: “The need for insulating the pricing of public utility services like drinking water, irrigation, power and public transport from policy fluctuations through statutory provisions.”.........
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, January 23, 2013
SBI pitches for cut in repo rate, CRR
Pitching for a cut in interest rates and cash reserve ratio by the Reserve Bank, SBI Chairman Pratip Chaudhuri today said the move will boost investment and growth...........
Case for teaser rate return
A panel appointed by the Reserve Bank of India (RBI) to assess the feasibility of more long-term fixed rate loans products today suggested that banks should consider relaunching teaser or dual-rate loans. The panel, headed by K.K. Vohra, chief general manager, internal debt management department of the RBI, however, recommended that a large portion of such loans should carry a fixed rate of interest. Earlier, a small portion of the dual-rate loan was fixed.............
Monetary policy-making under fiscal shocks
........... The need of the hour is to focus more on employment generation and growth, as the ad hoc nature of fiscal adjustments has compounded the problem of inflation uncertainty for India. We feel a reduction in the repo rate of 50 basis points might to some extent negate the disruptive effects of the painful fiscal adjustments.
Microfinance banking
This refers to Subir Roy’s column “The next step for Indian banking” (Value for money, January 16). Despite vigorous branch expansion, the present banking system – both private and public – has not been able to ensure that the vulnerable sections of the population utilise basic banking services. Against this background, it is worthwhile to note that several Asian and African countries have established microfinance banks that cater to basic banking requirements (both credit and savings) of low-income communities with relatively hassle-free procedures. Even a small country like Pakistan has 10 microfinance banks — the last one having been inaugurated last week in Karachi. Then, the Central Bank of Nigeria created a record of sorts by licensing 37 microfinance banks in Kano on a single day on January 13. Indian microfinance institutions could also be considered for conversion into microfinance banks under the New Branch Licensing Policy.
- B Vithal Rao Hyderabad (BS)
Do your worst, Mr C; India isn’t about to give up on gol
........This is really the crux and why finance ministers have been unsuccessful with all their gold schemes. Investing in gold is an indictment of the government’s fiscal and monetary policy. This is what P Chidambaram hates, and why he is making such a song-and-dance about gold imports. Raising duties and banning this or that is no solution to the problem of a repressive fiscal policy that debauches the value of the rupee. Indians’ attraction to gold will be inversely related to the trend in the purchasing power of the rupee at home and abroad......
RBI panel wants banks to go in for more long-tenor FD schemes
A Reserve Bank of India (RBI) panel has suggested that banks should popularise fixed deposit schemes with tenors of above five years as they are eligible for tax exemption. “This would, to some extent, meet the long-term funding requirement of banks,” the committee said. The RBI released the report of the committee which studied the feasibility of introducing more long-term fixed rate loan products by banks on Tuesday.............
Read - The Hindu
RBI for periodic interest reset on long-term fixed-rate loans
The central bank proposed banks be allowed to reset interest on fixed-rate long-term loan products instead of charging a fixed rate throughout the tenure as it will be costlier for a borrower than floating rate loans. Banks could reset interest rates after a period of 7-10 years, said a Reserve Bank of India panel's report on assessing feasibility of introducing more long-term fixed-rate loan products by banks on Tuesday..........
Corporates Getting Ready to Bank
New bank licences are a certainty after a wait of nearly a decade as the Reserve Bank of India prepares to release norms. ET’s Sangita Mehta lists some candidates who could come to own banks......
A SIM can empty your bank account
.........They intercept one time password by obtaining duplicate SIM cards,” says Rakshit Tandon, advisor cyber security. “This is called ‘Identity theft’. The modus operandi is that hackers generate a duplicate SIM. After the SIM gets activated, hackers have access to the account of the victim on the internet. They can easily use the user-id and password and transfer the money. The bank automatically generates a onetime-password (OTP) which is received through SMS on the duplicate SIM as well,” says Rakshit. The fact that the process of acquiring a duplicate SIM is so easy, highlights the laxity on part of the mobile operators, a fact pointed out by CGM, RBI and the banking ombudsman, M Sebastian: “Because of the certain vulnerability on the part of mobile operator, the fraudsters were impersonating and obtaining duplicate SIM cards. About 40-50 complaints were received during 2011-12.” He had then urged the banks to take up the issue with the mobile operators but it would appear little has happened in the matter............
Say Bye To Swipe, Pay With Android Phone Card Reader
Bangalore: Soon the credit card point of sales (POS) will do away with “zip zap” swipe machines, thanks to Android card reader. The RBI has given its nod for a card reader that in conjunction with an android phone, does everything that a POS terminal can do,............
Making payments on the go
........For the last few years, the Reserve Bank of India (RBI), the Mobile Payment Forum of India (MPFI), the National Payments Corporation of India (NPCI) and the Indian Institute of Technology Madras (IITM) have been working with all the stakeholders to construct interoperable and security standards for mobile financial payments and services. Today, over 50 banks and financial institutions have adopted the common standards and architectures which such a service requires.........
CCTVs not functioning in most ATMs
The audit report of the Cyber Defence Research Centre (CDRC) has exposed the inherent flaw in the management of Automated Teller Machine (ATMs) in many areas of Ranchi. The guideline of the RBI makes it mandatory for banks to not only install CCTV cameras in the ATM counter but ensure its functioning at the same time..........
Citibank launches paperless payment system for cardholders
..........“The secured paperless transaction not only does away with managing charge slips but also combines the many benefits enjoyed by Citibank card customers, including instant redemption of reward points, ability to opt for EMI payment option while using this new payment alternative," ..........
NABARD for better balance sheets of co-op banks
According to the Vision 2013 , the National Bank for Agriculture and Rural Development (Nabard) would strengthen and help the district cooperative banks overcome their difficulties and show better balance sheet so they could become part of the mainstream banking...........
Tuesday, January 22, 2013
Inflation remains a concern for India’s growth prospects
Lending rate cut a national priority
We expect the Reserve Bank of India (RBI) to continue to switch to reviving growth on January 29 after exclusively fighting inflation since 2010. After all, India is that rare economy in today’s world in which lending rates are ruling at their 2008 cyclical peak. While growth has bottomed, it is unlikely to bottom out until lending rates soften by another 75 to 100 basis points (bps). In our view, lending rate cuts should be a national priority............
Saving for survival
....The plight of those who retired in the 1990s and had anticipated a return of 12 per cent per annum on their retirement savings could be a case study for the present government that is pushing a New Pension System (NPS). Those retirees are faced with a one-third reduction in the real income and manifold increase in household expenditure and expenses on health care........
Speed up settlement of claims to deceased nominee: RBI to UCBs
........"We, therefore, advise all Urban Co-operative Banks to instruct all their branches to adhere the extant instructions on the subject to facilitate expeditious and hassle free settlement of claims on the death of a depositor,.........
Banks still in the woods
........ RBI Deputy Governor K.C.Chakrabarty has drawn attention to the fact that it is the larger companies that are the main beneficiaries—restructured standard advances for medium and large industries jumped 73% in FY12 and the trend this year too doesn’t seem to be any different. Such a trend is disconcerting at a time when the entry of big corporates into the banking sector is being discussed. Given the deputy governor’s concern over how banks favour larger corporates and the global history with corporates owning banks—that was behind the IMF and Nobel laureate Joseph Stiglitz’s warnings on this—the government and RBI would do well to keep this in mind.
De-registration of small NBFCs will hurt financial inclusion: Finmin
.................Simultaneously, the RBI should work on a stronger supervisory mechanism for the sector and put in place an elaborate system for capturing and analysing data from all the NBFCs, the sources said. The RBI should also look at bringing out size-wise uniform accounting norms and financials reporting rules for different categories of NBFCs, they added. The ministry is holding a meeting on Monday — on the issues arising out of the RBI’s new draft norms — with top industry representatives and the Finance Industry Development Council, which is a self-regulatory organisation formed by NBFCs registered with the RBI............
Reserve Bank allows hotels to prepay loans through ECBs
......"It has been decided to include Indian companies in the hotel sector with a total project cost of Rs.250 crore or more, irrespective of geographical location as eligible borrowers under this scheme,"............
Indian banks may reach 75% of homes
......The central bank’s regulatory power to order lenders to open rural branches, rising incomes and the nation’s push to pay subsidies directly to citizens will spur new accounts, Subbarao said. His estimate implies that about 86 million more households may be using banks by the end of 2017, swelling the pool of savings that can be invested in industry and infrastructure........
SBI - Cessation of Director
State Bank of India has informed BSE that Dr. Subir V. Gokarn, Director, nominated under section 19(f) of the SBI Act, ceased to be a Director on the Bank’s Central Board, as at the close of business on December 31, 2012.
My View on "Be cautious, no need to change stance on bank licence"
Going by the past record,RBI will not and cannot commit a blunder by issuing licenses to undeserving entities. Even the FM has shown his desirability to consider issue of licenses to real estate agents and brokers which by any stretch of imagination will not be considered by RBI as the risks involved in such cases are beyond RBI's regulatory stance. RBI being a very conservative and cautious regulator will do full justice in granting licenses to those who really deserve and be of in public service.
Dr.T.V.Gopalakrishnan
My View on "Bid to limit RBI role as debt handler"
So long the Government Securities continue to be a ‘neglected’ category in the debt market, perhaps because they have a captive market as banks have to compulsorily hold huge quantities of G-Sec just to comply with SLR (Statutory Liquidity Ratio) requirements, government would be asking for trouble by transferring debt management from RBI. Both the holding pattern of G-Sec and the ratio of G-Sec in SLR need to change. Government, in the present scenario should move to a situation where investment in G-Sec is attractive for retail investors as a more secure component in their savings. Banks also should be given other options to invest their SLR funds (May be the proposed Gold-backed financial instruments could be one such option). When all these are in a transition-phase, GOI and RBI should put off the idea of shifting management of public debt from RBI, at least for a decade. That is the minimum time a change of this magnitude ill take to stabilize and there is no heavens waiting to fall if RBI continues the work of Public Debt Management for which the central bank has developed expertise. A new government office in the present scenario will not be able to manage the show. GOI should learn at least this one lesson from the recent experiences in disinvestment of PSU equity.
- M G Warrier
Investments in Gold
This statement by the Dy Governor of RBI is just to confuse the masses. Investment in gold is both for speculation and hedging against inflation. Those who have abundant black money and are insensitive to inflationary pressures invest in Gold to speculate, but those whose earnings and savings potential are limited go in for investment in gold just to hedge against inflation as the real rate of interest is negative if they save in Banks or other savings instruments.This sement of population consists of people from middle middle class and upper middle class. Poor class people have no money either to eat or invest in gold. This category has been completely getting ignored by the authorities and this category gets worst hit by persisting inflation. Persons in authorities instead of taking measures to contain speculative investments are talking something different to hide their failures to contain inflation and trying to confuse the people.This is not desirable.
- Dr.T.V.Gopalakrishnan
( This comment is in response to the statement by the Dy Governor of RBI that investments in gold not hedge against inflation appeared in Business Line dated 21/1/13)
Indian Government Pushes Banks to Go Rural, But Will it Pay?
........New Delhi plans to directly transfer cash payments for subsidies into these accounts, a move aimed at tackling graft in India’s creaky, corruption-ridden public distribution system. If successful, the initiative could also bring modern banking to the doorstep of rural India, a goal towards which progress has so far been fitful despite mandatory targets set by the government and Reserve Bank of India.........
SC notice to Centre, states on pendency of cheque bounce cases
........The court gave the order while hearing a PIL filed by Indian Bank Association, which sought directions for speedy trial of cheque bounce cases alleging that there are around fifty lakh such cases pending in various courts...........
How to file a complaint against your bank
.......If your bank does not address your complaint within a month, you can approach the banking ombudsman. This is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in banking services, as per its scheme introduced in 1995. All scheduled commercial banks, regional rural banks and scheduled primary cooperative banks are covered under the scheme. So far, there are 15 ombudsmen, whose offices are located mostly in state capitals. Their addresses and contact details are available on the RBI website......
S.S. Mundra named Bank of Baroda chairman
S.S. Mundra has been named by the government as the chairman and managing director of Bank of Baroda, effective Monday. He used to be executive director of Mumbai-based Union Bank of India but has had a previous stint at Bank of Baroda,.........
Union Bank of India appoints K Subrahmanyam as executive director
......Mr Subrahmanyam, who has spent over three decades in IOB holding various positions, was posted as general manager in charge of IOB's MSME portfolio. The appointment comes amid one of UBI's executive directors being promoted as CMD of Bank of Baroda.........
Moody's: Banking outlook negative on higher NPAs
....The agency further said though the government is " likely to remain supportive", options for the Reserve Bank to slash lending rates are limited due to high inflation and the " modest fiscal capacity". RBI has not given into the growing pressures to ease its elevated interest rate, which is one of the highest in the world, citing high inflation and the government's inability to reign- in the fiscal deficit at desired levels....
Impact of chit funds in state huge: Calcutta Stock Exchange
.......The Reserve Bank of India (RBI) had earlier warned the West Bengal government as well as other state governments about the mushrooming of chit funds and also written to them to take appropriate actions against them for duping depositors.........
Citibank rolls out integrated mobile payment service
Citibank has launched its integrated mobile payment solution, which allows customers to pay through debit/credit cards and cash at the point of purchase without having to stand in the queue at retail outlets........
Frustrated, Mamata says has hit a wall on aid
......The bleak state of finances was highlighted by high non-development expenditure, combined with high debt. West Bengal has the second highest debt to GSDP ratio at around 39 per cent, according to the 2011-12 revised estimates (RE), said the RBI report. By the end of March 2013, West Bengal’s outstanding liabilities would be Rs 2.30 lakh crore, the third highest among all states............
Federal Bank launches `Federal Manipal School of Banking'
.......The Federal Manipal School of Banking will offer full-time programme for one year that includes nine months of campus training and three-month internship at a branch of Federal Bank, which will be coupled with grooming and soft skills training, the bank said in a statement......
Monday, January 21, 2013
Run, Mumbai, Run...
 |
| Reserve Bank of India Governor D.Subbarao was seen running during the Standard Chartered Mumbai Marathon 2013 Dream Run in Mumbai on Sunday |
Not only runners from India, but people from all over the world reached Mumbai to participate in 10th Standard Chartered Mumbai Marathon 2013 Dream Run today. Thousands of the city's residents too ran alongside athletes. Well-known personalities like RBI Governor D.Subbarao, Anil Dhirubhai Ambani Enterprises group Chairman Anil Ambani, BSE Chairman S. Ramadorai, JSW Steel Ltd Chairman & Managing Director Sajjan Jindal and many more were also seen running at the marathon. Binning Lyngkhoi was the best Indian finisher among men while Lalita Babar successfully defended her title in the women’s section in the marathon.
HBL
Bid to limit RBI role as debt handler
Regulation confusion
.........The second problem with the RBI has to do with conflicts of interest. The RBI regulates banks, so it has a bias in favour of keeping interest rates low in order to hide the problems in banking, which leads to high inflation. The RBI is investment banker to the government, so it has a bias in favour of keeping interest rates low in order to easily hawk government bonds (which, too, leads to high inflation). There are several other functions, all clashing with each other. The incoherence of policy and communication at the RBI is often attributed to staff quality. It may reflect, instead, the impossibility of achieving the array of objectives that are sought to be addressed. The RBI Act was drafted in 1934 as a temporary measure. The RBI is now nearly 80 years old. It may be time to rewrite the RBI Act...........
'Cash transfer more efficient than PDS' is efficient way for extending food subsidy'
.....Earlier, in his welcome remarks, Subba Rao said the central banks need to identify and monitor poverty to have a better understanding of the poor and to work on various welfare schemes. "For the last five years, the RBI has been working on financial inclusion on a priority basis. However, we must remember that financial inclusion is not the end in itself, but is a means to have household welfare schemes," he added. Subba Rao said, "The RBI's interest in poverty is mainly because of the inflation that impacts different segments of people differently. For instance, the lower segment of society is more concerned about the food inflation. All of us are working on poverty measurement for framing government policies."
The plight of the poor in India - Dr.T.V.Gopalakrishnan
Perhaps Dr Subba Rao GOVERNOR, RBI is the only official who has understood the magnitude of poverty and suffering of the masses in these days of Spiraling inflation..........
Need to improve understanding of poor and poverty: Subbarao
............Subbarao praised late economist Suresh Tendulkar's study of poverty and estimation of people below poverty line (BPL) which displayed his "sensitivity and empiricism" on the issue. Noted economist Abhijit Banerjee, currently Ford Foundation International Professor of Economics at the Massachusetts Institute of Technology, delivered the lecture on the topic, 'Identifying the Poor'.
RBI Governor D. Subbarao’s visit flags off the 26th edition of IIM Lucknow’s Manfest
...........Delivering his presentation in a hall packed with eager students, Dr. Subbarao joked about how he enjoyed speaking to students the most since “they are too innocent to ask difficult questions”. He spoke at length about policy dilemmas from the perspective of the Reserve Bank of India. He also shared key insights on various tactics for managing growth inflation dynamics, current monetary variables and their implication on Indian growth............
Obituary
Sushil Jayant Chitre, Ex Cashier - Reserve Bank Credit Co-op. Society, Mumbai passed away on 17th January 2013. Deeply Mourned by Anil Chitre, Chitre & Joshi Family
Nigerian held in Delhi for fake lottery racket
New Delhi, Jan 20 (IANS) A 36-year-old Nigerian was arrested here for duping a woman of lakhs of rupees after claiming that she had won a lottery “organised” by the Reserve Bank of India (RBI), said police Sunday...........
My View on "Govt has taken revenge on RBI, says CLSA"
CLSA is not alone in having the view that Gokarn was eased out by a ‘hurt’ finance ministry, as it could do no harm to RBI Governor directly. Business India(January 20, 2013) in its editorial ‘Muscling in’ has argued that it should be for the board of the Reserve Bank of India to pick its Governors and not the finance ministry. The recent teasing behavior by GOI is a shame on the eminent statesmen(each one of them being a leader in their field) who are on RBI’s Central Board. The institution and Governor Dr Subbarao look unperturbed. Urjit Patel, the new Deputy Governor is not going to unsettle the extant RBI policy evolved over time. Still, one wonders what make the central board members cling on despite continuing insults by a ministry with tacit approval from the highest level. The only way GOI can make amends now is by ensuring a further term of 2 to 3 years for Dr Subbarao by deviating from the tradition and making provisions where necessary
- M G Warrier
Be cautious, no need to change stance on bank licence
.............Do all these mean RBI should not give any importance to the IMF report? Definitely not. One way of ensuring good governance could be giving precedence to companies with a wide shareholder base over family-run firms in setting up banks. RBI has been a conservative regulator. Even in the first set of new banks given licence in 1994, one corporate entity entered the sector in the guise of a group of non-resident Indian investors belonging to a particular community, but a vigilant central bank did not allow the promoter to misuse it. It should take heart from this.
NPAs a tough ask
Bad loans or non-performing assets (NPAs) in the banking sector have been steadily increasing, and bankers are, understandably, not happy at being constantly questioned on the issue. Recently, on the sidelines of an event, an irate Union Bank of India Chairman and Managing Director D Sarkar said, “Do not blame the banker by saying they are increasing NPAs. We, too, are very much under stress. Except my family members, everyone else is asking me about NPAs.”
BS
Banking system shows signs of instability on rising NPAs: RBI
........"The movements in the banking stability indicator...that there are symptoms of a moderate rise in instability of the banking sector in recent periods perhaps due to the rise in the NPA," it said in a working paper on Banking Stability - A Precursor to Financial Stability.........
Finance Ministry wants RBI to allow realty, broking firms to set up banks
............In its comments to the RBI on new bank licences, the ministry has said that such entities can be allowed, but there should be a complete ban on taking exposure in the group companies or entities related to promoters, sources said.................
Amalgamation of RRBs: 25 merged into 10 in nine months
..............Consolidation of RRBs has been going on in a phased manner since 2005. The number of RRBs came down to 133 in 2006 from 196 at the end of March 2005. It further came down to 105 and subsequently to 82 at the end of March 2012. As on March 2012, of the total RRBs, 79 were profit- making while the remaining three had registered losses. In order to boost the capital base of RRBs, the government on the recommendation of a panel headed by RBI Deputy Governor K C Chakrabarty decided to recapitalise 40 selected RRBs in 21 states............
Gold cliff: Wisdom dawns on RBI
........Tarapore Committee on capital account convertibility also recommended in 1997 that it was essential to liberalise the import of gold. WTO did not ask us to liberalise the import of gold. Even the IMF, which was a strong advocate of full convertibility, chastened by empirical experience, started to soft- pedal the issue. But those were the heady days of market theology in India. Even when gold imports were modest, at about $ 5 billion, I had warned that liberalizing gold imports was a blunder and alas, the warning has proved to be prophetic. A poor country, which continues to be the abode of the largest number of underfed and undernourished persons in the world, cannot afford to definancialise and invest enormous unproductive asset like gold. At long last, wisdom has dawned on the RBI. If left unchecked, gold imports would play havoc with the economy, disrupting growth. Dr. K. U. B. Rao, chairman of the RBI Working Group, should be congratulated on assembling a mass of data on related issues and providing an excellent analysis of the issues involved. I am sure the report will remain as the standard reference work on gold for years to come........
Golden ideas for senior citizens
.....The connection between bank deposits on which most senior citizens depend exclusively for their livelihood and gold investments may seem far-fetched. After all, senior citizens can hardly be expected to hold or buy gold to hedge against inflation. Even the gold-backed deposit schemes, which are likely to be introduced, will hold no specific attraction to the pensioners and others solely dependent on interest from bank deposits. Yet, tackling this very basic need of senior citizens — to have schemes that are hassle free and protect them from inflation — is on a par with efforts to wean away gold demand. Unless a scheme is created that will effectively and consistently be able to beat inflation and equally importantly convince ordinary citizens that it will be able to do so over time, it has no chance of succeeding in the race against gold. The senior citizens as a class may not patronise gold but certainly have a stake in any policy measure that will give them an opportunity to keep their head above water...........
A Golden Moment
..........The Reserve Bank of India (RBI) is looking to allow banks to open basic gilt or demat accounts for limited transactions and a certain amount of holdings, with reduced charges for retail investors in G-Secs. It may even consider giving banks incentives for opening these accounts. There are three key reasons why the RBI thinks it’s a winning proposition: one, it allows investment across the yield curve, from 91-day Treasury Bills to G-Secs with a 30-year tenure; two, given the inverse relationship between bond prices and interest rates, one can ride on the prospect of capital gains when interest rates moderate; and three, from the government’s perspective, a diversified investor base ensures stable demand for G-Secs. Will it work? “On paper, it is a great idea, but............
Renting a bank locker isn't easy
...........According to RBI guidelines, demanding a deposit or levying insurance charges to rent out a locker is a restrictive trade practice. And new customers (only new ones) can complain to the apex bank and the head office of the bank where one applied for a locker. The regulator also says banks should maintain a wait list of applicants for lockers, give them a number and ensure complete transparency in the allotment of lockers. However, experts say while banks will try and squash the charges, RBI’s redressal system can be frustratingly slow.
The politics of good economics
.....The RBI will announce its quarterly monetary policy later this month but it will be interesting to note how it views the diesel price adjustment. Will it be seen as a step towards fiscal consolidation (and hence add to the argument for cutting rates) or will it be seen as an inflationary move (and hence work against a rate cut)?......
Poultry industry in State in deep crisis
....The AP Poultry Federation held meetings with Union Finance Minister P. Chidambaram, RBI Governor Duvvuri Subba Rao and Food and Agriculture Minister Sharad Pawar seeking their intervention in recovery of the sector and enhancing working capital limits as there was serious erosion in the amount employed. They also wanted the government to regulate exports and essential ingredients and freeze them at a certain limit.
Saturday, January 19, 2013
Suresh Tendulkar Memorial Oration
Govt has taken revenge on RBI, says CLSA
Brokerage firm believes denial of extension to Gokarn shows lack of freedom for RBI Governor
The controversy surrounding the Deputy Governor’s appointment in Reserve Bank of India (RBI) is refusing to die down. It's the turn of a global brokerage to accuse the government of being revengeful against the central bank by not allowing an extension to Subir Gokarn despite RBI Governor D Subbarao's recommendation. In a note to its clients, broking firm CLSA’s Christopher Woods said that the finance ministry’s recent decision of not extending Gokarn’s tenure is a reminder of the current lack of independence of the central bank. “The decision is probably partial revenge for the RBI’s habit last year of regularly stating in its official policy statements that further monetary easing was conditional on meaningful fiscal tightening by the government,” Woods wrote. The broking firm also thinks the RBI Governor will not enjoy freedom in the remaining days of his term in office.“The current governor has now been reduced to a virtual lame duck since his own second term in office ends in September,.........
Gold investment speculative, not inflation-hedge: Chakrabarty
RBI research shows banking stability linked to financial stability
.............The paper written Rabi N Mishra, S Majumdar and Dimple Bhandia. While Mishra is the Regional Director, Lucknow, Dimple Bhandia and S Majumdar are General Manager and Director in the Financial Stability Unit (FSU) of Reserve Bank of India (RBI), respectively. There are a number of major findings, for instance the paper establishes a link between banking stability and financial stability. According to their research when there was continued financial stability it improved banking stability.............
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