The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Monday, July 9, 2012
RBI launches website to explain detection of fake currency
RBI pitches for cash-less carry
The day is not far when you pay your vegetable vendor, hair dresser and neighbourhood grocer with your credit card
The Reserve Bank of India (RBI) has prepared a road map to provide card swipe machines to more than one crore retail businesses in the next three years to promote electronic transactions for ushering in a less-cash society in the country.....
Scarcity of coins, notes of small denomination hits state economy
......At present Manipur is facing scarcity of coins and small denominations of Rs 5, Rs 2 and Rs 1.Besides, one finds it hard to see any new notes of Rs 10 in the state, thereby suggesting the possible scarcity of the same in the near future. While Manipur has been facing the problem for the last many years, there are plenty of such coins and small denomination currency notes in other states. In the absence of coins and small denomination currency notes, one is forced to buy matches, sweets or chewing gums at shops, even if they don't them since there is no change to return at the time of buy anything something whose price is below Rs 10 .....
RBI to release new Rs. 5 coin soon
To commemorate 150 years of the Comptroller and Auditor General of India, the Reserve Bank of India (RBI) has announced that it would shortly put into circulation a new series of coins of the Rs. 5 denomination with the new symbol for the Indian rupee inscribed on it............
Obituary
Cornelius D'Souza (Kenny), 65 years, retired RBI Officer, Bangalore passed away on July 7, 2012. Funeral cortege leaves residence A 101, Spartacus Apartments, 30th Cross, 4th T Block, Jayanagar, Bangalore 560 041 on Monday, 9th July 2012 at 2.30 p.m. to Christha Prabhalaya Church, Jayanagar. Funeral mass at 3 p.m. followed by burial at Hosur Road cemetery. Contact details : Dr. Simia Almeida - 09980560454.
RBI directive a setback for Islamic NBFCs
At a time when the National Commission for Minorities is pressing hard upon the Union Finance Ministry to explore ways to start interest-free banking in the country, the recent RBI directive has dampened its spirit..........
SBI MUSEUM: A peek into the evolution of Indian banking
....Spread over 7,500 sq feet, the museum chronicles the evolution of SBI from the days of the Bank of Calcutta in 1806. A treasure trove of interesting facts, the gallery details the evolution of India’s banking system which was initially driven by the shroffs (local moneylenders), to the emergence of commercial banks in the 18th century. Visitors can take a peek into the personal finances of legends Bengali Renaissance period legends such as Rabindranath Tagore; polymath and social reformer, Ishwar Chandra Vidyasagar and theosophist, Annie Besant. Believe it or not, the bank even returned a cheque issued by the then Governor-General, William Bentinck, for exceeding the credit limit by just four annas (25 paise).......
Kris Gopalakrishnan to head govt cloud computing panel
....While appreciating the benefits of cloud computing, the RBI Deputy Governor, Mr Anand Sinha, recently pointed out that it being a new technology, data integrity and confidentiality seem to be a major concern at this stage. “Further, if too many participants rely on a single service provider, it may lead to a risk of overconcentration inasmuch as the failure of the service provider will be catastrophic,” he said at Hyderabad.........
Disbursal of KCC loans: Private sector banks not included in RBI circular
.....The State Level Banker’s Committee (SLBC) keeps promising the State Government that the directives of the RBI and the Union Finance Ministry are being ‘strictly followed’ in Kerala while allotting shortterm, Kisan Credit Card (KCC) loans to farmers and the Service Area Approach (SAA) is integral to it. But a circular issued by the Union Finance Ministry to CEOs of all Public Sector Banks (PSBs) on May 30,2012, which is in the possession of Express, has not mentioned the SAA,which was withdrawn on December 8, 2004. Also,in the directive on the basis of a listed Reserve Bank of India circular, no mention is there on the inclusion of private sector banks for disbursal of KCC loans...........
High court directs status quo on bank's plea
....Bombay high court has issued notice to the Central government and directed a status quo to be maintained on a plea by Dhanashree Mahila Sahakari Bank at Miraj, Sangli district against the cancellation of its banking license by the Reserve Bank of India.......
Check banks
I completely agree with T N Ninan’s piece “Personal accountability” (Weekend Rumination, July 7). Banks are expected to concentrate on lending and borrowing, rather than focusing on third-party products. For the sake of meeting revenue targets, customers are being mis-sold and duped these days. The Securities and Exchange Board of India and the Reserve Bank of India (RBI) do nothing to prevent these unethical sales. RBI needs to seriously regulate banks’ non-banking activities like insurance, broking and mutual funds.
- Balaganesh, Chennai (BS)
Bankers to meet RBI's Gokarn, will urge RBI to cut rates
MUMBAI: CEOs of commercial bank will urge Reserve Bank of India (RBI) to cut rates to improve investment sentiments at the customary pre-policy credit policy meeting which is scheduled on Monday. The RBI will announce its first quarter review policy on July 31 amids slowdown in economic growth and concerns of rising inflation. In the last mid quarterly review held in June, t he RBI left interest rates and the cash reserve ratio for banks unchanged on fears of worsening inflation.............
Lazy banking or easy banking?
....In April, after RBI surprised the market with a half-a-percentage point cut in the policy rate, sending a strong signal to banks to cut loan and deposit rates, ICICI Bank Ltd, IDBI Bank Ltd and Punjab National Bank cut their base rates marginally; but most banks have been tweaking their loan rates for different business segments, leaving the base rate untouched. This makes the base rate irrelevant as this is the benchmark for all loan rates. RBI had forced banks to replace the erstwhile prime lending rate with the base rate as the prime rate became irrelevant with banks giving a bulk of the loans at below that rate. In some sense, the base rate is also going the same way.....
India Inc's deposits lose out amid better liquidity
....On the back of this improved liquidity, banks have stared refusing bulk deposits even at card rates — the interest rate offered to retail depositors. Some banks are not accepting bulk deposits of more than Rs 10 crore from one customer. Banks were paying around 9.5 per cent interest on three-month deposits until recently, but now that rate has come below nine per cent......
Tracking flux in forex assets
Fluctuation in the value of forex assets has a significant impact on India’s foreign exchange reserves. The country’s foreign exchange reserves fell by $10.4 billion to $294.3 billion during 2011-12, after rising by $25.8 billion in 2010-11 and $27.1 billion in 2009-10, according to RBI data. ........
Read - HBL
Read - HBL
Bank licences can be given on the basis of existing regulations, says C Rangarajan
....."I see that there is a scope for more banks to come in as they come with new ideas... I think if old regulations are inadequate, then they must be modified otherwise RBI can also consider using old regulations, on the basis of which it can give new licences,"......
RBI misled by inflationary expectations
.....As inflationary expectations are crucial in monetary policy formulation, it would serve the economy better if the RBI were to expand the scope of its expectation surveys to correctly ascertain the same. Till such time, it would be better if the central bank adopted the indirect method to ascertain inflationary expectations. In the upcoming policy review on July 31, the policy tilt should be to revive growth unless there is clear indication that easing would aggravate inflation.
RBI Governor Duvvuri Subbarao not to cut rates unless PM can contain fiscal deficit
....The stars may be appearing to align for Reserve Bank of India Governor Duvvuri Subbarao to cut interest rates by month-end, but it may not happen yet unless Manmohan Singh, who holds the finance portfolio, pulls a rabbit out of his hat by July 30 to contain fiscal deficit.......
Monetary policy and the growth syndrome
....It is to the credit of RBI Governor Subbarao that he successfully resisted these pressures to demonstrate that real life situations are for more complicated to be amenable to text- book solutions. Monetary policy making remains an art and not a science......
A plateful of memories
....Dr Basu spoke of his extremely comfortable relationship with Mr Pranab Mukherjee, a thoroughbred political person but one who also had a grasp of economics. He spoke of how he enjoyed the confidence of the Prime Minister. Did he know Dr Manmohan Singh from his Delhi School of Economics days? “No, I met him first when he was the Governor of RBI,” Dr Basu said.......
Clean the stables
...... He publicly chastised the Governor of the Reserve Bank of India, who was unsuccessfully trying to control inflation through monetary policy without the necessary fiscal measures by the government. Mukherjee expected the RBI to cut interest rates for stimulating growth. But he would do nothing to reduce the deficit. He appointed a super-committee with himself as its head to oversee the RBI, the securities and exchange board of India and the insurance regulatory and development authority, ostensibly to settle jurisdictional disputes between them.........
A robust system in turbulent times
....A closer monitoring of banks is also required because “distress dependencies” between banks has risen. RBI’s analysis of the branch network of Indian banks reveals that the systemic importance “of the most connected” banks has increased. The risk that the failure of a large bank could ripple through all parts of the financial system has increased because of growing inter-dependence of banks, insurance companies and mutual funds. The random failure of a bank, which has large borrowings from the insurance and mutual funds segments of the financial system, may have significant implications for the entire system,” says the report......
Till debt do us part
.....The simple point that now cuts across all lines is that excessive government borrowing sets into motion a chain of events that crowd out productive private investment directly in terms of fund availability or indirectly by pushing up the rate of interest. Indeed, in a rare sign of autonomy, RBI has virtually put reduction of fiscal deficit as a precondition for interest rate cuts.....
Student loans benefit 8673 in district
......Mayank Mehta, deputy general manager of Union Bank of India, K R Jayaprakash, lead district manager, K D Joseph, AGM, Reserve Bank of India, Venu S Menon, AGM, NABARD and officials from other banks attended the DLRC meeting.
Read........
Read........
Building on definition
....So, various arms of the government came up with their own lists of what constituted infra. These included the Reserve Bank of India, or RBI (lending), RBI (external commercial borrowings), Insurance Regulatory and Development Authority (Irda), income tax department, Securities and Exchange Board of India (Sebi), Department of Economic Affairs, National Statistical Commission, Central Statistical Organisation, Empowered Sub-Committee of Committee on Infra (read Planning Commission), Economic Survey and India Infrastructure Finance Company. By 2010, there were at least 14 official lists floating around.....
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