The RBI’s move to contain the Nation’s burgeoning current account deficit by imposing a cap on outward investment would act against the Indian economy’s globalisation drive and hamper the overall reforms process, according to Kris Gopalakrishnan, president of the Confederation of Indian Industry (CII).............
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.
Tuesday, August 20, 2013
Frauds - can't be eliminated, can be minimised..........
ATM Frauds are of varied nature.
1.Technology based eg. Men in the Middle(MiM) ie between the User and the Server of the issuer/acquirer and hack from the Network.
2.Men in the Browser (MiB) thru Malicious software with advanced features, 'sit' in the browser and divert or spoof or do Phishing without his presence being noticed by the user.
3.Manipulations by Depressed staff responsible for System Maintenance, ATM Oerating System (OS)Modification, Cash Replinishment of the ATM Stackers etc.
The first two methods enable the unauthorised person to phishout data from the magstripe card which is stored in the card , in 'TEXT FORM' and Travels in text from without being encrypted and hence easily readable by the Hacker and enables him to clone the card.The PIN entered by the USer gets collected by installing pinhole cameras that can capture the keys depressed at the time of user entering the PIN at ATM.
Answer for all this could be
to deploy Terminal Level Encrypter at the ATM Terminal level or Usage of Integrated Chips embedded cards (Smart Card ) with PIN which encrypts the CVV in the Magstripe before transferring the data to the Network , also supported by OTP(One Time Password) where necessary.
The authorisation at the Issuer end can be further verified by
a)asking multi layered Challenging questions from the user B4 authorisation ,
b)monitoring the variations in the Geo Locations of the devices from where the Issuer's Server is accessed, Changes in the Config of the Use's device, ITP TP address etc etc
The methods suggested are not exhaustive and do not cover instances of malfunctioning of the ATM. However, due care and vigilance on the part of the User concerned is of paramount importance.
While Frauds can't be eliminated, can be minimised with the introduction of adequate protective and security measures in the Card Network System.
- R.Muralidharan
Fraud companies: A tale of lofty promises and vanishing acts
...........“Multiple growth is not possible and any lucrative offer should be crosschecked properly. Investors should not put in their money in companies promising more than 12.5% profit since it is against the RBI guidelines.” He said the investors should also do a thorough background check on the companies’ investments. “Investors should go through offer documents before investing into such companies,” he added. Haider said regulatory authorities like RBI should carry out sensitisation drives more frequently to spread awareness about such schemes or else people would continue to fall in the trap........
Enhanced eKYC to increase efficiency of UIDAI
....Above all, the fully paperless, electronic, low-cost aspects of eKYC make it more inclusive, enabling financial inclusion. Both end-points of the data transfer are secured through the use of encryption and digital signature as per the Information Technology Act, 2000 making eKYC document legally equivalent to paper documents. .................
SBI suggests FM to ban short selling in markets
...........He also said RBI's move on Liquidity adjustment facility (LAF) rate to 10.25 is “extremely ill advised” because the long term bond rates move in the range between 50 basis point. Because LAF was at 7.2%, long term bond rates were between 7.25 and 7.75%, now they have increased to LAF rate or repo rate to 10.25%, I will be surprised if the bonds rates moves to that level”...............
Reforms move in cooperative credit system faces opposition
..............The farmers would be constrained to go to the district level CCBs for fulfilment of their credit needs if the three-tier system was replaced by the two-layered one”, he apprehended. T. Ganga Raju, member of the Andhra Pradesh PACS Employees Union said the move for ‘dilution’ of the PACS was very much in contravention of the RBI guidelines which envisage provision of a credit disbursement outlet in every habitation with a population not less than 2000 under its flagship programme of Financial Inclusion (FI).
IOB's core banking system caught in technical glitch
.............It may be noted that Reserve Bank of India (RBI) has asked the Indian Overseas Bank (IOB) and some other banks to shift from its existing Core Banking System (CBS) platform to an Oracle based platform as part of integrating data from various banks through an automated data flow system. Since most of the banks are on Oracle platform, the rest of the banks were asked to migrate, said an official from IOB..........
Where are we heading? - M.G.Warrier
Mint deserves a word of gratitude for exposing the casual approach of the government to succession plans for top posts in big organizations. The possibility of SBI Chairman’s post falling vacant was known long back. It is sad that Mr Takru, a new entrant to finance ministry is toying with the idea of inventing norms for selection of candidates for consideration to the post. It agonizing to find that even Mr Takru’s problem is ‘just ensuring compliance with a procedure for selection’ as the eligible candidate, at the moment is only one. Where are we heading?
- M.G.Warrier
PSU Banks Told to Review Credit Growth Targets
...In
a letter to chairmen and managing directors of all state-run banks last
week, the ministry said, “The credit growth projections submitted by
the banks do not appear to be in tune with the credit growth expected of
the economy.” The RBI has projected a credit growth of 15%, while most banks have projected a 16-20% growth. ............
Yes Bank expands footprint, opens 500th branch
Yes Bank, India’s fourth largest private sector bank, has further augmented its retail banking footprint by establishing its 500th branch. In accordance with its strategy to develop the inclusive financial and banking network across India, the bank also has significant presence of 240 branches in rural or semi urban areas with population of less than 1 lakh people............
All subsidiaries will be merged with SBI in next 10 years: Chairman
The State Bank of India has chalked out plans to merge all its subsidiaries with itself in the next 10 years. India’s largest bank will merge one subsidiary every two years. “It will take two years to digest a merger, as we have to work on branch rationalisation and various issues,” said Pratip Chaudhuri, Chairman, SBI..........
ISLAMIC BANKING – Shattering the concept of Commercial Banking
I have been hearing about Islamic Banking for
last over a decade but have been able to gather only some basic
information. Now in August 2013, after the proposal for appointment
of Raghuram Rajan has been cleared, it has come in fresh discussions as the new
RBI Governor is considered to be a strong advocate of this concept. The financial reforms commission headed by Rajan had even advocated
Islamic banking............
Monday, August 19, 2013
PM wants RBI to re-think monetary policy
...........“The Reserve Bank has served our country with great distinction. But, I venture to think that the best is yet to come,” the Prime Minister added. D.Subbarao has touched upon various facets of policy-making, the Prime Minister said adding, “I dare say, Raghuram Rajan will build on the experience of his predecessors to chart out a new course of action in very difficult circumstances that our economy is facing.” In his address, the outgoing RBI Governor Subbarao mounted a strong defence of the RBI’s policies, arguing that it was “oversimplification” to say that central banks went for price stability at the expense of growth.............WHIPLASH: Fresh advice from an octogenarian
............Where's the 'fresh thinking' on your end, Dr Singh, other than 'no loss' arguments, 'coalition dharma' and a Finance Minister insisting that the government can 'walk it alone' without the central bank? Incoming RBI governor Raghuram Rajan will be well placed to consider new approaches to monetary policy, but he would also do well to take learn from his predecessor and ignore the advice of those who fail to practice as they preach.
Time to Reverse Policies that Don’t Work
.........Inadvertently,
the RBI’s liquidity squeeze has further scared foreign equity investors
about an expected plunge in corporate earnings and debt investors on a
rise on bad loans and defaults. On the other hand, the hypothesis that
easy liquidity was fuelling rupee speculation was true only to a limited
extent. Today, the Indian economy is a lot more externalised than most policymakers perceive.............
Read - ET
A new monetary paradigm
..........Singh’s suggestion, coming as it does in response to the ongoing currency crisis, has been made at the wrong time. When currency and foreign exchange issues become a bigger concern than the slowdown in domestic economic growth, then surely structural constraints are a problem rather than some distortion and aberration in the foreign exchange market that can be alleviated by market intervention. This is all the more important because the foreign exchange constraint is now becoming a binding from the demand side. This is unlike in the pre-reform period, when foreign exchange shortage was a supply side issue..........
Economic history recurs because we don't learn from it: Subbarao
.........Releasing the volume, Prime Minister Manmohan Singh hoped that RBI governor-designate Raghuram Rajan would steer the country of the present challenging times. Subbarao said the challenge for Rajan is to make RBI a knowledge institution. "How you will use your formidable intellect, scholarship and global experience to shape the Reserve Bank as a knowledge institution that will set standards for how an emerging economy central bank should manage macroeconomic policy in a globalising world."................
Restoring confidence primary task before govt: PM
........The 30-minute long function had a galaxy of special invitees that included Raghuram G Rajan, who would succeed Duvvuri Subbarao as the next governor of the Reserve Bank of India next month, Planning Commission Deputy Chairman Montek S Ahluwalia, several former RBI Governors including, C Rangarajan (at present chairman of the PM’s Economic Advisory Council), Y Venugopal Reddy (at present chairman of the 14th Finance Commission), Bimal Jalan and A Ghosh, member of the 14th Finance Commission Sudipto Mundle, and former deputy governors of RBI, Rakesh Mohan and Subir Gokarn..........
RBI committed to inflation control as it cares for growth, says Subbarao
The differences between Finance Minister P Chidambaram and outgoing Reserve Bank of India (RBI) Governor D Subbarao over the central bank’s mandate refuse to die. Within days of Chidambaram seeking a Parliament message to the RBI Governor that price stability was not RBI’s sole aim — but part of the larger goal of boosting growth and generating employment — Subbarao on Saturday shot back, saying the monetary authority had not ignored economic growth in trying to rein in inflation...........
Crisis Of Credibility
Statements from different officials have conveyed the impression
that India’s central bank is not on the same page as the government. This has
spread confusion and undermined the efficacy of monetary policy. Signals from
monetary policy are most effectively transmitted when communication is clear.
Crosstalk doesn’t help.........
Read - TOI
Midnight’s bankers
Fielding questions from the media at a banking conference, RBI Deputy Governor K.C. Chakrabarty said the central bank would put up details of some recent measures taken by it on its Web site soon. A reporter suggested that this be done before 8 p.m., as if to hint that the RBI is known for putting out releases very late on its Web site. The deputy governor was unmoved. He said the nation wants its journalists to work hard and so the central bank may well put out its release at midnight.
Need for concerted policy reforms - DR. N. A. MUJUMDAR
That the relationship between the ministry of finance and the Reserve Bank of India is far from harmonious was clear last year itself, when the finance minister made the following statement: “Growth is as much a challenge as inflation. If the government has to walk alone to face the challenge of growth, then we will walk alone.” The minister’s open plea, made many times, to reduce interest rates, was not heeded by the RBI and hence the minister’s displeasure. The debate around the First Quarter Monetary Policy 2013- 14 statement, made by Governor Subbarao on July 30, provides ample evidence to demonstrate that this relationship has not improved and that the minister will have to walk alone to reach his goal..........is clear. Crosstalk doesn’t help.........
Throwback to 1991? Not really - A.Seshan
.........The measures introduced by the Reserve Bank and the Government in the recent period to deal with the problems on the external sector have raised a public debate. Some have feared that it marks a return to the pre-Gulf-Crisis days in the early 1990s, both in terms of economic conditions and policy measures. The Prime Minister and Finance Minister have reassured the nation that it is not so, and what we see now is only a temporary deviation from the liberal policies initiated in the 1990s. The truth is somewhere between the two extreme views.................
Rajan & Larry: A Central Difference
........Rajan’s presumed US counterpart, Lawrence Summers, hasn’t gotten the
official nod yet, although he has received a lot of presidential
blessing as the right man for the job. And yet I wonder. Sure, Summers
as an economist is as brilliant as Rajan. Both were star professors in
the US economics scene. But in complete contrast to Rajan, Summers has
excelled almost exclusively as a propeller and enabler of vested
interests. His speciality is not speaking truth to those in power, but
rather most agilely further empowering those in power...........
Read - ET
A wand for Raghuram Rajan
.... does Rajan “have enough domain knowledge” to comprehend India’s myriad monetary and public finance problems? Much of his approach to Western financial markets seems divorced from the reality of how India’s peculiar credit markets and monetary and banking system have evolved. Mathematical finance is a relatively new small specialized sub-field. Rajan’s academic path of engineering and management in India followed by a finance thesis in the management department of a US engineering school may have exposed him to relatively little textbook economic theory, monetary economics, public finance, international economics, economic development, etc., especially as these relate to Indian circumstances..........
Retirees Hitguj August 2013
Text of the circular dated 8th August 2013, issued by the United Forum, after the Massive Rally by RBI Staff and Retirees, prior to Central Board Meeting in Mumbai, is reproduced below for information of our members.......
Separatist slogans on banknotes in J&K
........According to their statement posted on social networking site Facebook, the group has stamped currency worth Rs 30 crores in the last four months. The group has also put a video on youtube about it. According to the Reserve Bank of India's clean note policy announced on May 10 this year, inscription or scribbling on any part of the banknote would render it to be classified as unfit for reissue. Accordingly, such banknotes get treated as soiled banknotes and cannot be re-circulated.......
Even RBI refusing to exchange torn currency notes
NAGPUR: Those banking on the Reserve Bank of India (RBI) as the last resort for exchanging a torn or mutilated note may be left disappointed. In a bid to implement a policy initiated almost a decade ago, which spelt out that RBI should eventually exit from public dealings, the bank's office here has abruptly cut the quota of such notes to be accepted at its counters. As against the norm of exchanging 25 notes from one person, the RBI office at Nagpur is now exchanging only three notes...............
Panchayat president, agent held for cheating in Thiruvalla
..........both the accused were taken into custody from Thiruvalla town on Saturday night when Vimalraj reportedly made an attempt to ran away with the three foreign currency notes. The police suspect that the duo were trying to convert the `currency’ notes with the help of an authorisation letter obtained by Mr. Punnose from the Reserve Bank of India on behalf of a private trust named Olivermala run by him.........
Unique ‘facial signature’ solution
Voice of Bigdata, a US-based analytics company, has launched a ‘facial signature’ solution that can create a unique digital signature for people’s faces. Using some 80 nodal points on the face, the solution generates an equivalent digital signature. “Barring 16, the remaining 64 nodal points on the face are unique to a person. Once we enter this in the database, we can easily identify them if they come again to a place,”............
Panagariya, Gopinath among top contenders for CEA job
Economists Gita Gopinath and Arvind Panagariya are the likely front runners for the post of the finance ministry's chief economic adviser (CEA). "It is too early to say but they are some of the top choices for the post. The economists will also have to be asked for their interest in the position," said a source close to the development.......
Retirement savings: Start early, despite the risk!
........You can moderate returns-compounding risk by continually reducing your equity investments after 45 and buying bonds that mature at retirement; returns-compounding on bonds is positive if held till maturity. This positive feature of bonds is useful as you can apply the rule of 72 (72 ÷ return is approximate years to double your investment) to achieve your objective, especially in the 10 years leading to your retirement. So, start your retirement savings early!.........
How good are our banks?
..........A Reserve Bank of India (RBI) calculation puts the depreciation figure for the public sector banks atRs.21,500 crore, based on their bond portfolio in June. Since then, yields have risen further. The gross NPAs of Indian banks in March 1994 were 19.07% and for the next seven years, till March 2001, they remained in double-digits. If the banks could survive that phase, they would definitely come out of the current crisis too. But at what cost? ...........
Banks and the F-word
.............The RBI’s Study Group on Large Value Bank Frauds defines fraud as “a deliberate act of omission or commission by any person, carried out in the course of a banking transaction or in the books of account maintained manually or under computer system in banks, resulting into wrongful gain to any person for a temporary period or otherwise, with or without any monetary loss to the bank”. A 2012 survey by consulting firm Deloitte Touche Tohmatsu India found that a high proportion of respondents identified retail banking (77 per cent), corporate banking (57 per cent) and private sector lending (33 per cent) to be the principal areas in which fraud occurs. The latter two are likely to be the areas where the big fraud cases lie, whereas retail banking has a large number of small instances of fraud that drive down the average size of frauds..........
Banking boom
At a time when there is a reduction in hiring and campus placements by the IT sector, banking is one of the few industries that is optimistic. As the Reserve Bank of India is planning to open up the banking sector with new players set to be given licences, a lot of jobs will be created over the next few years. Keeping this in mind, NIIT IFBI is offering diploma programmes for students to get them ready for the times ahead.........
All women bank to have 25 branches by fiscal-end
..........The proposed bank, to be headquartered at Delhi, is likely to be operational by November this year. Reserve Bank of India gave its in-principal approval for the Bharatiya Mahila Bank in June and the banking company is being set up, the official added. One of the key objective of the Bank is focus on the banking needs of women and promote economic empowerment.........
Crash lessons
....... On the contrary, these are now beginning to seriously unsettle foreign investors. The immediate trigger for the biggest single-day market fall in four years was the Reserve Bank of India’s curbs on outward foreign exchange remittances by domestic companies and residents. The markets interpreted this as a throwback to the era of capital controls and speculated about such clampdowns being extended to repatriation by foreign investors as well.........
Whose inflation?
......... it is a matter of exasperation for most corporates and bankers that the RBI has chosen to focus more on the CPI in managing liquidity and interest rates. Is it any surprise therefore that even good quality corporations are now turning into non-performing assets?
India’s financial crisis - Through the keyhole
ON SATURDAY morning August 17th India’s top policymakers gathered at a rather obscure event—the launch of an official history of the Reserve Bank of India (RBI), held in a room in the prime minister’s house in Delhi. Present were Manmohan Singh, the prime minister, and the past, present and future bosses of the central bank, among others. .........
There Is No Rollback of Reforms: Mayaram
...........There
is nothing in these measures to say we have imposed capital controls.
You need to instill some responsibility in people who spend
forex. We have not said you can’t spend overseas, which would have been
reverting to capital control. RBI has only changed the methodology by
putting it on the approval route to instill responsibility...........
Read - ET
The good, the bad and the risky
..........With the economy mired in a slowdown and the possibility of any decline in interest rates fading, the months ahead promise to be tough on companies which have taken on high levels of debt. The Reserve Bank of India’s recent measures to mop up excess liquidity from the system have had the effect of spiking the cost of short-term borrowings as well. As short-term borrowing costs for companies have gone up by almost 2 per cent in just a month, they will now have to shell out more to finance their working capital requirements. This may force companies facing a cash crunch to delay or even default on.............
Banks as brokers: Good for you?
........RBI in its Financial Stability Report (FSR) had said banks assuming the role of brokers might lead to conflict of interest. RBI said in some cases, it was observed banks did not have a clear segregation of duties of marketing personnel from other branch functions. Bank employees were directly receiving incentives from third parties such as insurance companies, mutual funds and other entities for selling their products. Experts feel the new regulations are advantageous for potential policyholders......
You can file your tax return even after the due date
..........So say you are a salaried employee who has not filed his or her return in time, however, the tax due from you has already been deducted at source in the usual course. In this case, the maximum downside even for a late filing would be the Rs. 5,000 penalty amount. Since the tax due from you has already been paid ( by way of the TDS), there would be no liability on account of interest. Remember, interest is levied only if you owe any tax to the government.......
Keralites get the better of online fraudsters
.........Over a period, the modus operandi changed. They nowadays target youths in search of jobs. The job aspirants get a mail inviting them for an interview at a reputed company. The youths do not hesitate to pay the caution deposit required to be paid before joining since they are being offered a very high salary. People do not even care to verify when they feel that lady luck had blessed them.............
RBI needs to stop trying to save the Indian rupee
There is a growing sentiment that the Reserve Bank of India’s (RBI) recent actions to stop the rupee’s weakening is like a doctor fighting the symptoms, and not the disease itself. That statement massively misses the point. India’s economy doesn’t need a couple of pills from the RBI, the country’s central bank. The ‘take a cut in interest rates and call me in the morning’ approach is appalling misplaced. The economy needs a surgeon, in this case the Indian Parliament, who can remove the blight of corruption and perform some major economic reforms. Anything less will only prolong the rupee’s descent. That the RBI’s efforts are ineffectual are largely self evident...........
Costly fight for a stable rupee
Policy-makers must have valid reasons for going all out to defend the rupee, but the time has come to assess the impact of recent policy measures in their totality. Does the end justify the means? The collateral damage that some of these measures inflict cannot be ignored for long.........
‘Swap 200 tonnes gold RBI bought for dollars’
.........“The Reserve Bank of India bought 200 tonnes of gold for $1,045 an ounce from the IMF four years ago. The Government can swap it for US dollars,” said Gornall, who is here for the India International Gold Convention 2013. According to RBI sources, the gold that India bought never came into the country as the transaction was only a book entry. The gold was purchased for $6.7 billion, in cash. Asked about this, Finance Ministry officials said the RBI will have to take a call on swapping the gold for dollars...........
Public sector banks pay for the rupee war
.....On manic Friday, the RBI had to set the yields on the most popular government paper the 10-year ones, at 8.74 per cent, which is 53 basis points more than the previous auction — yet 8 per cent of the papers went unsold. The choice for the public sector banks and their owner, the government, is now to make provision for these losses and book it to the public, the taxpayers......
RBI diktat to be no sweat for India Inc's big boys
........"As RBI and the government haven't explicitly banned large acquisitions, the deal structure will now become crucial in getting an official approval. Acquisitions will now be structured in a manner that minimises the dollar outflow from India and there is little recourse to the parent Indian company's balance sheet," .............
Moody blues
Given how asset quality at India’s PSU banks has been deteriorating, it is not surprising that Moody’s downgraded three of the country’s top state-owned lenders—Punjab National Bank, Bank of Baroda and Canara Bank—saying their financial strength was reduced and that the quality of the loan book was weakening. It’s hard to counter this: with the economy in a downturn and several sectors like telecom, steel and infrastructure in trouble, gross NPAs at PSU banks have moved up to 3.61% at the end of March. ...........
Present scenario offers avenues to get quality biz: Yes Bank
.........."These are challenging times but it also provides opportunities to originate good quality business... There are large opportunities, especially with diversity among the corporates,"..........
JK Bank lends little,charges 140 per cent more interest in JK
........ Pertinently, the corporate governance and supervisory controls of the J&K Bank recently received a big jolt when Reserve Bank of India fined it Rs 2.5 crore for violation of KYC guidelines. An ex-auditor of the bank on condition of anonymity said: “Usually such big loan cases are thrust upon the bank branches and branch advance heads reluctantly oblige out of fear of harsh postings and loss of promotions.”........
Finance ministry seeks relaxation in selection norms for SBI chief post
New Delhi: The finance ministry has sought relaxation in the eligibility norms for selection of State Bank of India (SBI) chairman so as to have more candidates to interview for the top post at the country’s largest bank. “To have suitable panel of candidates, we have requested appointments committee of the cabinet (ACC) for exemption in regulatory guidelines,” financial services secretary Rajiv Takru told PTI.............
Diabetics can't be denied jobs, says Madras HC
........" Diabetes usually has no impact on an individual's ability to do a particular job and in most cases the employer may not even know that his employee has diabetes. As the impact of diabetes and its management varies among individuals, there cannot be a blanket ban on giving public employment to persons with diabetes," a bench comprising Justice R Banumathi and Justice T S Sivagnanam held as it dismissed a petition filed by the Southern Railway challenging an order of the Central Administrative Tribunal........
Retirement age of state government employees hiked from 60 to 62 years
With an eye on the polls, chief minister Raman Singh, on the occasion of Independence Day, announced to increase the retirement age of state government employees from 60 to 62 years. The demand for extending the retirement age was pending since long...........
Saturday, August 17, 2013
Will US take new RBI governor seriously this time?
..........The youngest Governor of the Reserve Bank of India (RBI) was branded as “misguided” by then US Treasury secretary Lawrence Summers when, in a paper titled Has Financial Development Made the World Riskier?, he was among a handful who dared to warn against a storm brewing in the financial services sector and questioned whether banks had sufficient liquidity to cope. Rajan was of course proved right when the US sub-prime crisis snowballed into a global economic slowdown.........
New RBI chief has a bumpy task ahead
....... Government may want to take some undesirable measures which the RBI may not want. So let someone else step in and face the music. If he fails they will smirk. If he does well then the song will be “we could have also done so.” Witness how non-babu SEBI Chairmen were hardly allowed to function. It will not be surprising if they make life miserable for the new incumbent...........
Likely Scenario of New Pay Scales After UFBU Has Agreed For Merger of 4440 Points
.........It is for the first time that since Xth BPS has become due, some serious discussions seems to have taken place and some firm commitments arrived at. However, it appears UFBU has once again failed to extract honourable commitment from IBA and bankers have already lost the initial battle. Now chances of major hike have receded. By agreeing that Xth BPS will be made applicable from the due date, IBA has not done any favour but merely agreed to do what was due to bankers............
Read.........
Read.........
CVC asks RBI for factual report about granting licence to High Mark
.............One of the independent directors of High Mark was Vepa Kamesam, a former Deputy Governor of the RBI. In December 2012, he resigned from the High Mark board. Mr Kamesam was one of the four directors who along with Dr Pandya received 70% of the employee stock ownership plan (ESOP). Mr Kamesam was allotted 1.63 lakh shares in thecredit bureau as ESOPs.
Former Deputy Governor appreciates VITALINFO....................
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
 |
| File photo taken on 26th January 2012 |
Not just in RBI, across sectors a reversal of reform
Finance Minister P Chidambaram's attempts to talk up the rupee today after it slid to a record low that forced the benchmark stock market indices down by about 4 per cent may not be enough to assuage investors' fears. For, their confidence has been undermined as much by the Reserve Bank of India's panic late on Wednesday to clamp down on how much Indian nationals and domestic companies can invest abroad as by the long list of administrative clampdown and policy inaction across sectors in this government........
Fight the flight
...........To try to limit the damage, India’s finance ministry and central bank need to make clear in public that they have no intention of tightening capital controls on foreign investors, as opposed to unlucky locals. Beyond that, they will try to find more tricks up their sleeve. They could raise an IMF loan to augment India’s $270 billion of foreign reserves and make clear it has ample firepower to cope with a freezing-up of markets. (India’s total financing needs are about $250 billion over the next year, measured by its current account deficit and the debt it needs to roll-over.) But that seems to be off the table......
RBI taking India back to the 80s: India Inc
.....“RBI’s step to contain the current account deficit by imposing a cap on outward investment acts against the Indian economy’s globalisation drive and detracts from the overall reforms process,” ..................
Keep option of going to IMF open: Jalan
Veteran policymaker and former RBI governor Bimal Jalan says there should be greater coordination between various authorities to tackle the difficult macroeconomic situation. Excerpt:
Read - TOI
Read - TOI
Rupee fall: Ben Bernanke can do what the FM & RBI failed to achieve
.............What can probably stop this flow depends on what the Fed Chairman, Ben Bernanke does. If he continues with the quantitative easing, liquidity flow can continue and there can be some hope of money coming to India. Otherwise,the only possible way of reviving the rupee would be via direct intervention by the RBI. This, in our Bollywood scenario would be akin to a mouth-to-mouth resuscitation.
RBI Steps Not Aimed at Capital Control: Govt
The
finance ministry has said it will take all measures to provide a stable
policy environment to stem the volatility of the rupee and clarified
that measures announced by the Reserve Bank of India (RBI) on Wednesday
should not be seen as capital controls. “There is no question of us
putting any restriction on outflows...There is no control of outflows of
dividends, profits, royalties, or on any kind of commercial outflows,
which happen in the normal course,” department of economic affairs
secretary Arvind Mayaram told reporters on Friday.......
Read - ET
Read - ET
IDBI Bank is working to shed legacy irritants
..........The bank’s transformation from that of a development financial institution has left it lacking an expansive retail branch system, which, in turn, has not allowed it to achieve the required 40 per cent priority sector lending. “We moved over from DFI (development financial institution) into the commercial banking segment and with it came some characteristics such as nearly 70 per cent of our loan book being oriented towards corporate,”..............
The PM must resign: Yashwant Sinha
.........The situation is grim. The markets are only reflecting the loss of mood in the India story. The government and the RBI took certain steps recently, but they are only treating the symptoms and not the disease. The fiscal deficit, current account deficit, state of the economy, rupee devaluation — everything is out of control..............
Right time for Islamic Banking
My View on "Participatory Banking instead of Islamic Banking":
Among various modes of financing, lease financing and hire purchase financing are two products which follow very strong Islamic Banking tenets. These products are very familiar to Indian Bankers and users of banking services in the country. So, Islamic Banking can fill a void in this segment of banking. But, I do not agree to the idea of bringing Islamic Banking under the name of Participatory Banking. One, there are no instances where Indians who use banking services in India have shown aversion to banks opened with names of any community. Catholic Syrian Bank, Karur Vysya Bank, South Indian Bank, Federal Bank, Tamilnadu Mercantile Bank and others are there for decades providing banking services to the people across the length and breadth of the country. Two, if Islamic Banking is allowed in India, it would rather attract huge flow of FDI in banking sector particularly from UAE countries and improve the economy of the country as our CAD is is dragging the economy to the new level. So, this is the right time to allow Islamic Banking in its true form.
- S.Santhanam, Pune
Islamic banking gets RBI approval
KOCHI: The Kerala government has got the go-ahead from the Reserve Bank of India (RBI) to launch a financial institution following the principles of Islamic finance. Cheraman Financial Services Limited (CFSL) will be floated by Kerala State Industrial Development Corporation to function as a non-banking finance company (NBFC)............
Will RBI allow banks to sell any insurance product?
............The finance ministry has been in favour of banks becoming insurance brokers. In his budget speech this year, Finance Minister P Chidambaram said banks would be so permitted to help insurance penetration. But will RBI oblige, especially since RBI’s Deputy Governor Dr KC Chakrabarty is personally against banks selling any kind of insurance?..............
'Mature' mis-selling
..........he approached LIC for the maturity value - only to be told he would get the money when he turned 80. Takru said he now needs to wait for 24 more years to get this amount.
Reserve Bank of India appreciated Odisha for adopting e-transaction model
Bhubaneswar: Reserve Bank of India (RBI) has appreciated the e-transaction model of Odisha. The Working Group constituted by the Reserve RBI has appreciated the e-transaction model of Odisha which has centralised automated receipt and payment system using payment platform of the RBI. It has advised all other States to customise the Odisha model of e-transaction as an effective tool of e-governance...........
2 get Rs. 1.3L debit-card shocker
Plastic money fraudsters have struck yet again. A total amount of Rs 1.30 lakh was fraudulently withdrawn at automated teller machines (ATMs) from bank accounts of two persons, allegedly by using cloned debit cards..............
Police want to have a say in setting up of ATMs in city
......Sources said the police will ask the RBI to direct banks to compulsorily install CCTVs and burglar alarms in ATM centres, and to ensure that the doors are small enough to prevent ATM machines from being carted away...........
JK Bank faces financial instability: Karra
.........Karra said that as Finance Minister, he had categorically refused to oblige the “diktats” of Reserve Bank of India. “When then Chairman Jammu and Kashmir Bank Dr Haseeb Drabu informed me that RBI had shot a letter to the Bank asking it that before sanctioning Over Draft to the State Government, the Bank should get permission from RBI and every month JKB should submit its accounts to Central Bank of India. I resisted.”
He added: “But the NC regime due to unknown reasons succumbed to the pressure of RBI.” Today Jammu and Kashmir Bank has lost the much coveted Rs 1 lakh crore business milestone it had achieved on 31st March 2013, in just three months............
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