Aiming for growth without tears

........It is in the above global and local contexts that Growth With Financial Stability is refreshingly timely. The book, which is focused on India and offers extensive and detailed analyses, is written by Rakesh Mohan, perhaps best remembered as a former Deputy Governor of the Reserve Bank of India (RBI). Mr Mohan is not new to policy making, but it was the second (2005-2009) of two stints at the central bank when he seemed to come into his own.............

Read - BS

Prof Acharya nominated to RBI board

In exercise of the powers conferred by clause (c) of sub-section (1) of Section 8 of the Reserve Bank of India Act, 1934, the Central Government has nominated Prof. Damodar Acharya, as a Director on the Central Board of Directors of Reserve Bank of India for a period of four years with effect from October 12, 2012. 

Read - Brief profile

DPS win RBI quiz

BHOPAL: Delhi Public School (DPS) Bhopal won the Bhopal leg of the inter-school quiz contest organised by the Reserve Bank of India(RBI) on Monday. Organised at Campion School Auditorium, Arera Colony, the quiz was a part of the bank's objective to spread financial literacy among school going children to understand the bank and banking system. The program was inaugurated by P R Ravi Mohan, Regional Director, RBI, Bhopal. Piyush Trivedi, vice chancellor, Rajiv Gandhi Proudyogiki Vishwavidyalaya (RGPV) Bhopal was the chief guest. The quiz was hosted by quiz master Ryan Shaw and his team.......

Read - TOI

Follow the rules of the game

........ the Supreme Court has suggested to regularise the position by requesting the Reserve Bank of India (RBI) to amend the Foreign Exchange Management Act (Fema). This was all the apex court could do to salvage the situation for a government that is already in the dock. UPA-II’s fire-fighting team should take the message of the Supreme Court ruling, that is, to follow the rules of the game in what it wants to do. The court must have been sadly aware that it might be odd to ask RBI to amend regulations in the Fema to regularise an executive decision of the government — which should have been issued after consultation with RBI...........

Read - BS

RBI launches inquiry Into APSMFC scam

The Reserve Bank of India (RBI) officials on Monday started an inquiry into the bank accounts of the scam-hit Andhra Pradesh State Minorities Finance Corporation (APSMFC). The state minorities welfare department had written a letter to the RBI requesting them for recovery of money from Vijaya Bank, where APSMFC has its account. The department officials told Express that the inquiry would be completed in the next few days............

Read.....

RBI to set aside funds for buying illiquid gilts

The Reserve Bank of India (RBI) is working with the government to set aside funds for buying illiquid gilts from the market. “Over a period of time we will have some budget where we will try to repair some of those securities in which volumes are low, and create volumes for those securities which have higher volumes,” said Harun Rashid Khan, Ddeputy Governor, RBI, on the sidelines of a banking summit organised by the Financial Times-YES Bank on Tuesday........

Read - BS

NBFCs, infra finance cos ask RBI to relax ECB norms

....Financial market players like NBFCs, the Finance Industry Development Council (FIDC), the Fixed Income Money Market and Derivatives Association (Fimmda), Foreign Exchange Dealers' Association (FEDAI), the Primary Dealers Association, among others, met the RBI top brass, including Governor D Subbarao, this evening at the customary pre-policy meeting. "We requested the Governor to look at relaxing the ECB (external commercial borrowings) norms for NBFCs and asset financing companies," FIDC Director General Mahesh Thakkar told reporters after the meeting........

Read - ET

Forex market intervention only on severe volatility: Khan

The Reserve Bank will intervene in the forex market in case of extreme volatility of the rupee as it has done in the past, RBI Deputy Governor H R Khan said here on Tuesday. “(When) there are extreme situations where there is extreme volatility...we have intervened in the past. If there are cases of extreme volatility, we will also intervene in the future,” Khan said on the FT—Yes Bank event......

Read - HBL

NMIMS launches 'BANKAGE'

Government's fiscal policy, RBI steps have to be in tandem: HR Khan, RBI Deputy Governor

..............Despite government pressure on the RBI to ease monetary policy, most market participants expect the central bank to leave rates unchanged at its policy review on Oct. 30, due to concerns over inflation and the fiscal deficit. "As we have articulated time and again, it (monetary policy) has to be in tandem with the fiscal policy," HR Khan, a Deputy Governor of the RBI, said in answer to questions levelled during a banking conference. "It has to be a joint venture. It is not a solo play. Fiscal deficit is one major concern in the macroeconomic scenario so that has to be handled ... Supply-side response is also needed for inflation management." .........

Read - ET

Credit where due

......The RBI analysis is also candid about the fact that for the miniscule section of small enterprises that gets bank finance, prime lending rates start at 16 per cent. In other words, they have to generate returns of at least 20 per cent or more to service their loans. With such a high cost of capital, it is obvious the units regularly make the choice to either bleed their labour or their capital instead of attempting a fresh loan, even when they want one.........

Read - Indian Express

Co-op. bank sets itself Rs. 300-crore deposit target

.......Addressing a media conference here, bank chairman and secretaries T. Ramanjaneyulu and C.V.S. Subrahmanyam respectively allayed the fears of customers following allegations against the bank in recent times. They also cited some of the reports in a section of media on the functioning of the bank. “Reserve Bank of India, which is the custodian of the depositor or customer, is safeguarding the interests of the public and we are abiding by the rules. We are working in accordance with the rules of the RBI and partly by the co-operative department,” said Mr. Subrahmanyam..........

Read - The Hindu

Not considering merger or acquisition of any bank: ICICI

........With reference to the news item appearing in a leading financial daily titled "ICICI Bank looks to acquire Karnataka Bank", ICICI Bank Ltd has clarified that the Bank is currently not considering merger or acquisition of any bank........

Read.........

Karnataka Bank scoffs at acquisition rumours -

Read - HT

Home loan interest rates: Games banks and financial institutions play

.....Now let us look at reasons that banks often point out for doing this and not adjusting rate of interest for all customers. Though banks do not have a very tangible answer for this they try to provide some answer which sounds logically flawed but hardly draws the attention of the regulator i.e. Reserve Bank of India (RBI) .The most unacceptable logic given is that since the cost of borrowing for banks for existing customers is high, they cannot pass on the benefit of reduced rate to existing customers. Hence they make the benefit available to new customers. This logic seems totally flawed.............

Read........

Bland analysis of sugar sector - A.Seshan

.....I am not happy with the analysis of cane arrears in the Report, having dealt with the matter during my days with the Reserve Bank of India (RBI). Referring to the issue, the Thorat group made the statement that the mills had several problems such as being unable to arrange for bank credit, though it did not provide any supporting evidence. Cane arrears persisted even in years when banks complained of a lack of credit demand and made excess investments in SLR securities........

Read - HBL

First rate cut by RBI unlikely before Feb 2013: Sujan Hajra, Anand Rathi

........We have consistently maintained that the RBI will maintain monetary easing stance, but this will play out more through the liquidity channel rather than through the interest rate channel. Obviously there are some expectations particularly because of the sound bytes coming from New Delhi that there could be a rate cut. Obviously a rate cut cannot be ruled out, but our sense is that...........

Read - ET

Interest rates need to be reduced: SBI

........."We want that interest rates should be brought down by RBI (in its upcoming policy) so that business and industrial activity could get uplift which is facing stress at the moment," SBI Manging Director S Viswanathan told reporters in Ludhiana. He further said if RBI faces technical problem in bringing down interest rates then it can reduce cash reserve ratio so that banks could get more funds for disbursement............

Read - ET