3 RBI officials among four killed in accident

Ambala, Jun 17 (PTI) Three RBI officials were among four killed when a car collided with a truck near Ambala city. The RBI officials from Chandigarh were returning from Jind in Haryana after attending a meeting when their car met with the accident last night at Model Town Crossing, police said. The car driver also died on the spot while another occupant sustained serious injuries and was referred to Medical College at Chandigarh.

http://www.ptinews.com/news/2713727_3-RBI-officials-among-four-killed-in-accident

The 3 names of the officers have since been confirmed from the PS to RD, RBI, Chandigarh as follows:-

1. Mrs. Kiran Sethi, AM

2. Mr.   Balvinder Sandhu, AM

3. Mr.   Balbir Singh, AM 

'It is hard to believe' - Times of India 


 

RBI Governor Subbarao still has 15 months to go

.....The Reserve Bank of India (RBI)  Governor, poor man, is not half as lucky. Subbarao has another 15 months to go before his term comes to an end in September 2013. So, he will have to soldier on even as problems on the economic front become more intractable and the government, in the run up to the next general elections, becomes more irresponsible on the fiscal front. Unlike Pranab da who only has to bide his time, 'apres moi, le deluge' (after me, the deluge), the  Governor will have to face the consequences of whatever he does today..........

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Y.V. Reddy for FM

With the nomination of the Finance Minister, Mr Pranab Mukherjee, as the UPA's Presidential candidate, his elevation is almost a certainty. Even before he relinquishes his post as Finance Minister, speculation is rife on the probable successors, with names such as Dr C. Rangarajan, Mr Montek Singh Ahluwalia, Mr P Chidambaram, Mr Jairam Ramesh, Mr Anand Sharma, Mr Sushil Kumar Shinde and Mr Veerappa Moily doing the rounds.  P.V. Narasimha Rao, while appointing Dr Manmohan Singh as Finance Minister in 1991, gave him full freedom to implement economic reforms, even when the country was not ready to accept the same. We now need a finance minister with such inglemindedness of purpose. He should not be cowed down, or dictated to, by self-serving groups. The one person most suitable for this post is none other than former Governor of the RBI, Dr Y .V. Reddy. He steered our country away from the global financial meltdown and took pre-emptive policy action. This was despite widespread criticism from all quarters, particularly from the vested interests, as he foresaw the domino effects of the sub-prime crisis in our country. So, in the fitness of things and the ongoing Euro debt crisis, Dr Reddy would be the best choice as the next Finance Minister to succeed Mr Mukherjee.

- K.Vittal Shetty Bangalore (The Hindu)

What Subbarao says is as important as what he does

One hears that this time around Mr Subbarao and his team have read and reread the policy draft many more times than they usually do, tweaking the language endlessly before giving the final go. Often attacked for doing the right thing at the wrong time, they don't want the world to misinterpret them. Indeed, his choice of words is as crucial as the measures he takes (or doesn't take)..................

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Reserve Bank of India Governor Duvvuri Subbarao has a tough decision to make

....Reserve Bank of India Governor Duvvuri Subbarao has a tough decision to make. The rate policy expected today comes as the RBI’s twin responsibilities, growth and inflation, spiral out of control.......

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Situations vacant

This refers to the report “Chakrabarty gets three-month extension as RBI Dy Governor” (June 14). K C Chakrabarty is the latest victim or beneficiary – depending on how you look at it – of the United Progressive Alliance’s impaired decision-making apparatus. In the recent past, we have been observing government delays in filling top jobs. Often, procedures are rushed through and aspirants who are kept on tenterhooks till the eleventh hour become functionally ineffective at least for the initial few months. In Chakrabarty’s case, giving a straight extension of two years or leaving the post vacant till a final decision on the incumbent is taken could have avoided the speculations that are bound to follow now. The Centre should think of putting a system in place that will take care of filling up of top positions and smooth transition from one incumbent to the other. Appointing younger people at the top, making the tenures longer and allowing inter-mobility from the position of enforcement directors and upwards following transparent norms are some areas that could be considered to improve the functioning of government and public sector organisations.

- M G Warrier, Mumbai (BS)

Monetary policy: The depositors ’ viewpoint - S.S.Tarapore

.....The topmost priority for the RBI should be to control inflation and to ensure that the depositor gets a reasonable real rate of interest ( i. e. the deposit rate minus the inflation rate should be positive). Thus, from the depositors' viewpoint the least that needs to be done is that the RBI should not succumb to governmental pressures; this is easier said than done. The All India Bank Depositors' Association should proactively articulate the need to reward depositors fairly.........

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Ensure one a/c per family, Fin Min to banks

....."During the meeting between Finance Minister (Pranab Mukherjee) and heads of public sector banks on June 12 it was decided to ensure that there is a bank account in every family in the next six months," .....

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How much more you have to shell out for banking services

After petrol, the price hike bug has bitten the banks too, with several of them raising their charges in the recent past. Banks have also introduced fees for services which were available for free till now...........

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Critical risk and issues in regulating bank business correspondents

.....I do however believe that the BC model can perhaps effectively serve the cause of financial inclusion if it is structured appropriately. That said, in my opinion, there are many risks and serious regulatory and supervisory issues that need to be addressed by the RBI for this to become a reality. The key ones are briefly highlighted hereafter.............


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FDI from Pak: RBI to issue notification by month-end

....“Within the next seven to eight days the notification is expected to come. Everybody from the finance ministry to RBI and DIPP has given its in -principle approval. Subsequently, the DIPP will incorporate the changes in the FDI policy,”.....

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Bankers indifferent to mild RBI rate cut

......“If the RBI is serious about supporting growth, then policy rates will have to be cut much more for the same level of policy transmission to occur,”.......

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All Eyes on RBI Guv as Rate Cut Expectations Rise

RBI Governor D. Subbarao is expected to go slow on his over two-year-old anti-inflationary posture and go with the common mood by unveiling a softer interest rate regime on Monday, as more and more dark clouds gather over the economy, though the price index still remains above RBI's comfort zone..............

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Interest(ing) action ahead

.....Quite obviously, the Reserve Bank of India, while reviewing the credit policy — the mid-quarter review is scheduled for later on June 18 — would take note of the recent developments affecting the economy. As it happened last week, there were not only planned releases of important statistical data, but some quite strong, unanticipated criticism of the government’s economic management — by global rating agency Standard and Poor’s (S&P). .....

Read - The Hindu

FinMin wants banks to cut rates in sync with RBI's policy action

....According to bankers, the ministry has now said banks should pass on the benefit “entirely” to customers if RBI reduces rates tomorrow. Market participants expect the central bank to cut its key lending rate by 25 bps to boost economic growth. India’s gross domestic product growth rate slowed to a nine-year low of 5.3 per cent in the March quarter. “In the event RBI cuts the CRR (cash reserve ratio, or the portion of cash banks are required to keep with RBI) and the repo rate by 25-50 bps, the finance ministry wants banks to bring down the lending and deposit rates by the same margins,” said a senior public sector bank official on condition of anonymity. He said what had not gone down well with the ministry was the pace of monetary transmission mechanism following RBI’s rate action. Banks were reluctant to cut rates as they say the cost of deposits would not come down in a hurry......

  

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Retail credit boom could hit savings rate: RBI panel

 The retail credit boom carries the potential to derail the country's steady savings rate despite a higher economic growth, a high-powered working group, led by RBI Deputy Governor Subir Gokarn, has said.
The group cautioned there will be the downside risk of a stagnant or even lower savings rate due to rising retail credit penetration, which makes consumers to spend in anticipation of future income........

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Subbarao hemmed in, markets have tailwind

.....However, my sense is the doves will have the last laugh. While the Reserve Bank of India (RBI) governor will not fully abandon a ‘dear money policy’, the tone, guidance and the announcements will be a leap forward to embrace growth.......

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Monetary policy: doing nothing is a greater risk

.....Banks’ credit-deposit ratio continues to be high, affecting their ability to lower interest rates. Exports have been falling. The situation in the euro zone remains uncertain. Job losses have started. Given the circumstances, for RBI to do nothing will be a greater risk for the economy than easing policy. The RBI governor has said that some amount of growth must be sacrificed to bring down inflation. The question is, how much growth? If the trend rate of growth is higher than what the latest GDP and IIP figures suggest—and RBI has said it is—then it’s time for monetary stimulus. And since rate cuts won’t work unless there’s adequate liquidity, it’s time to cut CRR.

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Will RBI go for a rate cut or will it shock investors with a pause?

....Subbarao's comment last week sums up his predicament. "While Dr Reddy had problems of success, like excess flow of liquidity into the country, I have a problem of problems," he said. YV Reddy, his predecessor, contemplated curbs on dollar inflows while Subbarao is faced with the prospect of luring US dollars into the country. When he announces the mid-quarter macroeconomic review on Monday, the RBI governor will be factoring in a view that was just a murmur a few months ago but is getting louder now - stagflation, a state of low growth and rising prices. India may be the first major economy that may face such a state, economists dread.......

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Drastic remedy

This is with reference to the news item “RBI may cut repo rate by 25 bps, keep CRR intact”(Business Line, June 16).The present situation calls for drastic steps by the RBI on June 18. While inflation is on the rise, industry needs some incentive to revive production. It appears that in addition to the repo rate cut, there should also be some cut in the CRR.

- T.R. Anandan Coimbatore (HBL)

Target currency movements, not interest rate, to control inflation: CII

....“India has entered a vicious cycle in which low growth is affecting investor confidence and leading to capital outflows and currency depreciation. This is adding to inflationary pressure forcing the RBI to hold on to higher interest rates than is appropriate for the economy,” ..........

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Gold loan firms setting up SRO as RBI tightens screws

............"We feel that RBI has not been comfortable with fast growth of our industry, which led the regulator to tighten norms on banks' exposure to this industry in April and also bring down loan-to-value ratio," Muthoot said. "We want to send out a message to the regulator that we are complying with all its regulations. We are giving them (RBI) time to understand our business model," he said...........

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