Reserve Bank Governor D Subbarao today met Finance Minister P Chidambaram and discussed the macro-economic situation. This was Subbarao's second meeting with Chidambaram, following his taking over the charge of the Finance Ministry this month......
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Saturday, August 18, 2012
RBI Deputy Governor Chakrabarty's term extended until June 2014
Jasbir Singh is RBI ED
.......While Singh, given the charge of Deposit Insurance and Credit Guarantee Corporation, succeeds G Goplakrishna who will now look after Department of Banking Supervision of RBI. Goplakrishna, one of the seniormost EDs in RBI, is likely to be a strong contender for the deputy governor’s post when Anand Sinha retires in February.
Everybody’s favourite whipping boy!
Public sector banks are a hapless lot. They are at the receiving end from both the finance ministry and the Reserve Bank of India (RBI). They cannot expect much from bureaucrats who have no practical knowledge of banking, perhaps, but surely they deserve better from the RBI, which as the banking sector regulator, should be a little more au fait with reality? All the more reason why Deputy Governor KC Chakrabarti’s statement (jibe?) that ‘public sector banks have not been as judicious in the use of restructuring as a credit management tool as the private sector and foreign banks’ is particularly below-the-belt.......
RBI has only itself to blame
.....Possibly, this is something that the vocal RBI Deputy Governor KC Chakrabarty should turn his attention to instead of railing at these banks, for the misdemeanours of the broader system. Because more than how these banks behave, the broader issue is how RBI approaches institutional issues in the banking sector, chasing will-o’-the-wisps. It is these aberrations that possibly encourage banks to pick up shortcuts.......
Should Infosys ‘guide’ RBI?
There is apparently nothing common between Infosys, India’s pioneering company in IT domain and the Reserve Bank of India (RBI), the nation’s central bank. But a closer look shows that of late both have shown remarkable capability in missing targets forecast by them though with contrasting results...........
Gentleman Economist
.....Rajan is known to be a consensus builder, humble to the point of being almost self-effacing. But don't be taken in by that. He can hold his own in any debate on economic policy; hardly surprising for a man who was awarded the inaugural Fischer Black Prize, given by the American Finance Association every two years to a financial economist under 40 who has made the most significant contribution to the theory and practice of finance..........
No estimate regarding increase in FICN in circulation: Govt
...."The Reserve Bank of India (RBI) has informed that they have no estimate regarding increase in counterfeit currency notes in circulation," Minister of State for Finance Namo Narain Meena told Rajya Sabha in a written reply yesterday. To address the multi-dimensional aspects of the FICN menace, several agencies such as the RBI, Ministry of Finance, Ministry of Home Affairs, Security and Intelligence agencies of the Centre and States, Central Bureau of Investigation (CBI) etc, are working in tandem to thwart the illegal activities related to Fake Indian Currency Notes (FICN), he said.........
RBI doesn’t determine the true interest rate in economy
......The fact that the repo rate does not determine the true rates in the economy does not mean that the RBI can afford to be lax on it. The RBI is the only voice that can bring a sense of responsibility to the economy as the government and the corporate sector will always push for cheap rates since it can help fund fiscal profligacy and profits. However, when factors are pointing to a sharp slowdown in economic activity, the RBI has to be proactive with its policy rate........
Inflation pain will not go away soon even if govt, RBI act together to reduce it
On the morning of July 31, when Reserve Bank of India Governor D. Subbarao presented the first-quarter monetary policy review, the message was clear: RBI could not fight inflation alone. It also revised the inflation forecast from 6.5 to seven per cent in March 2013. That evening, it was announced that P. Chidambaram would take over as Finance Minister. About a week into his new job, he declared that fiscal policy would work in tandem with monetary policy. He said a committee would draw up a fiscal consolidation plan. But the government's ability to take hard decisions may have been compromised by a long period of inaction.......
RBI examines different benchmarks in corporate bond market
..........The Reserve Bank of India is concerned that the use of different benchmarks for investors and issuers in the corporate bond market is making trading less transparent and creating opportunities for manipulation. The investigation is the direct result of the Libor scandal that has rocked the world's largest lenders and made regulators everywhere more vigilant of how rates are set............
Indian panel lowers GDP forecast to 6.7%
.....The estimates are pretty much in line with Reserve Bank of India’s projections, but the growth number seems to be on the optimistic side on the assumption that agriculture growth won’t be as slow as (the) market expects,” ........
Read - Pakistan Daily Times
Read - Pakistan Daily Times
Government needs to accelerate growth and investment: Dr Bimal Jalan
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| ET Now caught up with Dr Bimal Jalan, former RBI Governor, for his take on the GDP forecast for FY13 and the road ahead. Excerpts: |
Of 9% economic growth and Manmohan’s pipedreams
........So, to get economic growth back on track, India has to control inflation. The Reserve Bank of India (RBI) has been trying to control inflation by keeping the repo rate, or the rate at which it lends to banks, at a high level. One school of thought is that once the RBI starts cutting the repo rate, interest rates will fall and economic growth will bounce back. That is specious argument at best. Interest rates are not high because the RBI has been keeping the repo rate high. The repo rate at best acts as an indicator. Even if the RBI were to cut the repo rate the question is will it translate into interest rates on loans being cut by banks? I don’t see that happening unless the government clamps down on its borrowing. And that will only happen if it’s able to control the subsidies........
Bond yields inch up on PM advisor comments
.........Bond yields are still down 1 bp on the day, as it comes on the heels of inflation warnings from RBI Governor Duvvuri Subbarao on Monday and RBI Deputy Gov. Subir Gokarn on Thursday.....
HDFC to pay 1 lakh for damages
The HDFC Bank has been asked by a district consumer forum here to pay "exemplary damages" of Rs one lakh to one of its credit card holders for harassing him by raising an "illegal" demand of Rs 46,490 for a purchase that was never made.............
Friday, August 17, 2012
Give growth a chance - K Kanagasabapathy
How to keep your debit and credit card secure
....But just how do you stop such frauds? Well, there are various layers to card security and many ways that banks use to protect you from fraud. The more effective ones are in place for online transactions, such as the 3D Secure PINs and passcodes, which were recently mandated by the RBI.......
RBI faces a "No, minister" moment
....when it comes to asserting the independence of the Mumbai-based Reserve Bank of India from political masters in New Delhi, D. Subbarao, governor of the central bank, has large shoes to fill. His predecessor Y.V. Reddy had been an RBI Deputy Governor for six years and was at the International Monetary Fund in Washington before he returned to run the central bank. Distance from New Delhi allowed Reddy to chalk out a course that was often seen as adversarial by the finance ministry. The relationship between Reddy and Chidambaram, who was also the finance minister between 2004 and 2008, was sometimes stormy. By contrast, the current governor was the top finance ministry bureaucrat when Chidambaram picked him to run the central bank. Saying no to a benefactor is hard. But Subbarao would do well to convince Chidambaram that untimely monetary easing could threaten stability. His case is strong......
Hold your nose
India’s public-sector banks are sitting on something unpleasant
....The Reserve Bank of India (RBI) is on the warpath. K.C. Chakrabarty, a Deputy Governor, says: “It’s a concern. The banking system will not collapse because of this tomorrow. The system hasn’t become unstable. But if this continues for one or two years, it will become unstable.” The RBI plans to tighten the rules on restructured loans again, having loosened them in 2008 to protect India from the global crunch and given special treatment to infrastructure loans, deemed a national priority, in 2010.......
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