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, December 3, 2012
Subbarao conducts poll on inflation, wins handsomely
The icing on the cake was the support extended by his predecessor, Yaga Venugopal Reddy
It’s not often that Reserve Bank of India Governor D Subbarao personally conducts a poll on the central bank’s stance on inflation. That’s precisely what he did at a conference in Mumbai today. Participating in a panel discussion, which was being moderated by him, Subbarao suddenly turned to the audience and asked them to raise their hands on whether they wanted RBI to give priority to growth. Only a few hands went up. The next poser was whether they supported the central bank’s anti-inflationary stance. An overwhelming majority of the audience, comprising economists and researchers at the Indira Gandhi Institute of Development Research voted in favour. The icing on the cake was the support extended by his predecessor, Yaga Venugopal Reddy, who also supported his monetary policy stance during the panel discussion...........
Subbarao in talks with former RBI bosses
A
t the recently held Indira Gandhi Institute of Development Research (IGIDR) annual conference, RBI governor D Subbarao held an engaging discussion with former RBI governors namely Bimal Jalan, YV Reddy and C Rangarajan, chairman, PMEAC.
Below is the edited excerpt from the panel discussion.........
Reducing deposit rates is difficult in view of inflation
.....Interest rates will have some softening bias. In the last six to nine months, inflation has not come down as expected. The RBI has given an inflation target of 7% for this financial year. From a bank’ s perspective, base rate is somewhere around 9.75-10.50%. Overheads are roughly around 2-2.50% for every bank. Cost of funds, that is deposit rates, are around 5-8%. So where is the scope for interest rate reduction? Banks will either have to reduce deposit rates or cut overheads. Reduction of overheads is not possible in one day. Banks can reduce lending rates, if they can.........
Dark clouds for India's public-sector banks
.......The RBI has repeatedly advised banks to strengthen their credit monitoring mechanisms. All the PSBs have thus put in place dedicated credit monitoring departments at the corporate as well as at the secondary and tertiary levels to monitor accounts at an early stage of showing stressed signals. Regardless of these efforts, cash recoveries together with upgradation to standard category have been overshadowed by a higher level of slippages. In the case of the top five to ten banks, the sharp rise in NPA levels is on account of a few big-ticket advances and because some restructured accounts have not turned at the pace anticipated...............
A cup of morning tea...........
Special Greetings to Shri Mangesh Tarambale for successfully completing two years of VITALINFO. Let there be many many more years of success. God Bless You.
- A U Shaikh, Ex-AGM, Premises Dept, Mumbai
Carry on Mangesh for years to come. May God bless you with all the energy & vitality required to keep the early morning cup of tea/coffee called "VITALINFO" ready for the EXRBITES Group by the time the members get up.
Regards
B.D.Mahajan, Ex-DGM,
Sir, Yes, very appreceative, yeoman service to the group, many thanks !
Onkar Nath, Ex-Manager, Jammu
Congratulations and greetings on the second anniversary. Every day, we share and enjoy the results of Mangesh's work, which he starts when most of us are sleeping. We are grateful. Many happy returns of the day to VITALINFO!
- M.G.Warrier, Ex-GM
Congratulations and greetings on the second anniversary. Every day, we share and enjoy the results of Mangesh's work, which he starts when most of us are sleeping. We are grateful. Many happy returns of the day to VITALINFO!
- M.G.Warrier, Ex-GM
Dear Shri Mangesh Tarambale, congratulations on successfully completing two years of Vitalinfo. I find that Vitalinfo is a very good source of information and is very useful to a retired banker like me. you are rendering a very good service. May God bless you with health, wealth and prosperity.
Yours truly,
Sarveswara M.V
Cybercrime in RBI chief's name
.....A forged letterhead of RBI showing its address as Shantipath in Chanakyapuri New Delhi is an attachment and the mail ends with "Yours in service D Subbarao RBI Governor". The letter reads "Reserve Bank of India Union Pay Settlement Committee and the ATM International Inc wishes to congratulate you on the successful emergence in our ongoing fund remittance promo to all ATM card users across the globe. The mail also asks the mail recipient to furnish personal details including name address contact number age and occupation and a fee of US $350. The mail claims that only after that an amount of $1.8 million will be transferred to their account. .......
Are you ready for the new cheque regime?
.....The CTS will do away with the need for physical movement of cheques from a bank branch to a clearing house before the amount is credited to the customer’s account. Instead, entrenched with standardised features such as watermarks and a pantograph, cheques will be cleared electronically through an encrypted and highly secure online gateway........
Accepting a new high
...... “I am not saying that we would definitely change the number, but we will certainly revisit our strategy.” Could this be a prelude to revisit the aggressive monetary policy position of the central bank in its quest for low inflation? If that is so, then there is danger that RBI’s stance will lose credibility........
Cash transfer—are banks ready?
........One way of meeting the challenge could be allowing new banks to open shops. The banking regulator is not willing to do so unless the law that governs banking regulation in India is amended and RBI is empowered to supersede the board of a rogue bank. It is insisting on this as a precondition to allowing industrial houses to open banks as it feels that without this power, it will be difficult to supervise smart corporations who can divert money to their own group companies and deny funds to competition. Incidentally, among the first set of banks that was allowed to set shops in 1994 there was at least one corporate house...........
IIP crawls, all eyes on RBI
......However, falling global oil prices and declining core inflation as well as growth offered the RBI room to adjust interest rates, RBI deputy governor Subir Gokarn said last week. While inflation remains iffy, largely due to food products, at 5.3%, GDP growth in the March quarter was the lowest in nine years. As Citigroup economist Rohini Malkani puts it, “While our base case is one more round of rate easing, subdued trends in growth coupled with lower core inflation could result in the RBI easing more than ours as well as market expectations.”......
NGOs told to introspect
.....Dr. Rao, who has been appointed member of the Economic Advisory Board of the Reserve Bank of India (RBI) recently, delivered the keynote address at the inaugural of a two-day national seminar on “Nation Building – Role of NGO s – Agriculture and Rural Development”, organised by the Department of Political Science of M.R. College (Autonomous) ......
Banks gain little of what gold NBFCs lost, local lenders real beneficieries
In the past two quarters after the Reserve Bank of India (RBI) capped the loan-to-value, gold loan non-banking financial companies (NBFCs) have de-grown their book sizes and just the two major players have lost a business of over Rs 9,000 crore. However, banks, which have been active in the gold loan space, do not seem to have benefitted much from this. Instead, the unorganised moneylenders and pawn brokers are the ones who would have gained more from the loss of gold loan NBFCs..........
Bright side to India’s gold fetish
......PAPER GOLD DOESN’T WORK
This has the Reserve Bank of India thinking up yet newer ways to curb gold purchases. Could banks offer some kind of ‘paper gold’ or derivative gold so that the country does not have to actually import gold in order to satisfy its masses? Well, the paper gold idea has been tried, but has not enjoyed great success.........
Read - HBL
Too many curbs on gold import will push up smuggling: PMEAC
........"If we ban gold imports, the smuggling will go up... there are already indications that smuggling of gold has gone up in the last three months,".........
Read......
Adding glitter to paper gold
.....Exchange-traded funds (ETFs) with gold as the underlying assets are mutual funds listed on the stock exchange. Many such ETFs have been launched recently, and are flourishing. Obviously, many more new products are necessary for a more complete integration that alone will make an impact on gold consumption. RBI Deputy Governor Gokarn made out a persuasive case recently for new gold-backed financial products such as modified gold deposits and gold accumulation plans besides gold-linked accounts and pension products. Many of these are popular in important financial centres such as Singapore. The average citizen in those places is better informed about the financial markets — exchange rates, gold prices and so on. That would make it easier for the authorities to popularise new innovative products, linking gold to the banking system......
The golden rule
What can a central bank do to control the demand for gold? Precious little, going by a conversation between two respected former governors of the Reserve Bank of India, C Rangarajan and Y V Reddy, at an event organised by the Indira Gandhi Institute of Development Research. Reddy joked that the prejudice against gold has a gender bias. He looked at Rangarajan and recalled that he once told him that his wife (Rangarajan’s) had this fondness for gold and kept buying it. Rangarajan tried to dissuade her, but in the end he agreed that she was right.
BS
Is gold boon or curse for India?
......"We are concerned about gold, lending against gold by non-bank finance companies (NBFCs) because of financial stability concerns and we have been concerned about gold from an external management perspective because of the pressure it puts on current account or capital account depending on your account for it," he explains. Subbarao was speaking at the Indira Gandhi Institute of Development Research (IGIDR) annual conference. However, he clarifies that RBI has not put any fresh restriction on gold but only barred banks from lending for purchase of gold...........
'Fake currency is a crime that knows no boundaries'
......What the world is concerned about is – among other things they are concerned about – grave crimes with grave ramifications like terrorism, human-trafficking, drug-trafficking, and smuggling. These are grave crimes, which know no borders. Fake currency is a crime, which knows no borders. These crimes are committed and those crimes are punishable under specific laws. But the proceeds of the crime continue to flow into the economy........
President invited for Uttar Pradesh assembly's 125-year celebrations
.....In a letter written to the president, the chief minister said it was the wish of the legislators and the people of the state that Mukherjee be the chief guest at the momentous function, scheduled between January 8 and 10, 2013. Akhilesh Yadav also wrote to Communications Minister Kapil Sibal for release of a special commemorative stamp and to union Finance Minister P. Chidambaram for release of a special coin by the Reserve Bank of India (RBI) for the anniversary......
PSU banks under lens for ‘fixing’ savings account rate
Competition Commission of India, the fair play watchdog, has decided to look into the common, 4% interest rate being paid by all public sector banks on savings bank deposits despite the Reserve Bank of India moving to an unregulated regime in October 2011. "They seem to be acting in tandem and it needs to be investigated. Because of this policy, small depositors are losing out and banks are also losing business," said a CCI official, who did not wish to be identified. The official also said that banks such as Kotak Mahindra and Yes Bank, which had started paying up to 7% on savings bank deposits, had seen a surge in inflows. .........
Few ATMs disabled-friendly
.....To a query to the RBI via an RTI application filed by Singh seeking the number of ATMs made accessible to disabled, the reply sent on October 31, 2012, states "this department has no infor -mation". To another query on action taken by the department of banking operations and development following the RBI's letter to the department of banking supervision in January 2012 to ensure compliance by banks, the reply stated deputy chief commissions, office of the chief commissioner for persons with disabilities and ministry of social justice, government of India, have been advised to look into the matter.......
Cheque signature mismatch may lead to criminal proceedings: SC
...." Just as dishonour of a cheque on the ground that the account has been closed is a dishonour falling in the first contingency referred to in Section 138 of Negotiable Instrument Act, so also dishonour on the ground that the ' signatures do not match' or that the ' image is not found', which too implies that the specimen signatures do not match the signatures on the cheque would constitute a dishonour within the meaning of Section 138 of the Act," the bench said......
Chidambaram asks banks to give more education loans
Around 24 lakh students took loans for education with banks having an outstanding amount of Rs 52,000 crore, Union Finance Minister P Chidambaram said today, as he asked banks to lend more money for this purpose.......
Thousands of depositors trapped in scam-hit coop bank
.....“The Board of Directors jointly and severally failed to exercise control and supervision over the sub-committees and overall control and manage the affairs of bank in the interests of shareholders, depositors and the public by violating various guidelines issued by RBI in various circulars,” said the re-audit report, prepared by Kirtane and Pandit. On a writ petition filed by the depositors, the Bombay High Court stayed sale of the bank’s immovable properties. It also issued orders not to cancel the bank’s licence without its prior permission, but the RBI on February 10, 2012 issued notice revoking the licence.......
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