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Tuesday, July 23, 2013
Spare a thought for the RBI Governor
Obituary
We deeply regret to inform that founder Chairman of NABARD and former Deputy Governor of RBI Shri M Ramakrishnayya (93) expired on 22 July 2013 at 06.30 Hrs after a brief illness at his residence at Hyderabad. Team NABARD visited his residence and conveyed condolence on behalf of NABARD to the bereaved family. May the Departed Soul rest in peace.
- Ramakant Kulkarni, Ex-GM, NABARD
Sober and soft hearted E.U.Khan..............
Let
us pray to Almighty to grant eternal peace to the departed soul. I had
an opportunity to work with him for few months in Premises Deptt when he
was GM and found him to be very soft speaking, cool headed and always
ready to listen to you patiently. Such souls come very rarely in this
world. May God give strength to the family to bear this loss.
- Madan Gauria
I
know Mr E.U.Khan personally and very well. We have been mutual
admirers. I feel very sad to know that he is no more. I pray to the
Almighty to bless his soul and give peace to the bereaved family.
- P.Aravind
 |
| Shri Khan receiving a bouquet from Shri Biswas while Smt Udeshi looks on. Retirement farewell function on 31st July 2003 (File photo) |
- Staff Members Premises Department
My View on "Next Gov by choice??"...........
Ms Kamala Rajan has suggested that the next Governor should be decided by a Committee of former Governors. She thinks that these persons would be able to arrive at an unanimous choice ! In my opinion, this is wishful thinking. Just as they did not share the same views on economic and financial matters, they would not also be able to arrive at the name of a common candidate. In any case, appointments to these posts are the prerogative of the 'Cabinet Committee on Appointments' consisting of the concerned minister, Home Minister and the Prime Minister and this practice has been well established. The views of the dynamic and brilliant present Finance Minister are likely to be given a lot of weightage by the Prime Minister.
The view that the next Governor should be one who has a sympathetic view on pension for retirees is too narrow a view and cannot be taken seriously. Furthermore, so long as the RBI acts as the subordinate of the Ministry, it does not matter as to who is at the helm of the Bank for the pension issue.
- A. Chandramouliswaran
My View on "Tackling crisis of confidence in economy ".........
Energy and economic growth are interrelated. What monetarist can do has limitation. Acute power shortage makes cold storages non-functional or mal-functional in all the states where vegetable production peaks. Therefore, cold storages are victims of NPAs in several banks. Energy sector is the villain of the piece. Oil imports are touching unsustainable levels and the current account deficit is mainly on account of oil imports. Remove the component of oil imports the current account deficit is in the most comfortable region. Investors are shy of India in the energy sector as the 'resource and reserves' in oil, gas - natural, coal do not lend confidence. In a dollar-dependent economy, gold reserves and controls do not have much relevance. What we should now target is a good fiscal policy and the government in election mood wants to throw good money after the bad - through ill balanced and misdirected subsidies is putting the cart before the horse.
- Yerram Raju
RBI on a sticky wicket
Unambiguous communication from RBI vital: Shubhada M Rao
..........The recent set of RBI's money market measures was largely unanticipated and, therefore, it resulted in extreme volatility in the rates market; so far, its impact on the currency has remained modest. Additionally, the smoke and mirrors created by other policymakers' multi-speak has thrown markets into confusion. It is ironical that the Fed's tapering of quantitative easing has led to quantitative tightening by RBI. While a revival in economic conditions .............
There is no method to RBI’s madness
Utter confusion and chaos have gripped the Indian money market over the past one week. There could be two explanations for this. One, the Reserve Bank of India (RBI) does not know what it wants and, two, it’s well aware of what it wants but the government does not want the central bank to have its way...........
Shooting the messenger
Given how each measure the government is taking to bring down volatility of the rupee doesn’t seem to have too much of a life-span—within a week of RBI’s actions, the rupee is almost back to where it was at 59.9 to the dollar last week Monday—there seems to be a palpable sense of unease. And while one wing of the government says that everything including sovereign bonds is on the table, another rules out such bonds; .........
Time to get used to a weak rupee
.........And so on. All because of poor governance. Foreign investment does not need an invitation. It pours into economies that are dynamic and progressive. We are far from that. No wonder the rupee stayed put at 59-60 to the dollar and did not respond either to the RBI or to the government. That is the new saddle point we have to get used to.Govt to call on NRIs to defend rupee
New Delhi: The government aims to call on millions of non-resident Indians (NRIs) to help reverse a record slide in the rupee, dismissing for now the idea of a global sovereign bond, senior government officials said on Monday. Acknowledging the country faced a dilemma, the officials said India was running out of options and time to revive the currency and fund a record current account deficit (CAD) but equally it was wary of sending any distress signals to international markets.............
RBI expresses inability to regulate all NBFCs
......“The central bank has sent its comments. They have pointed out that they regulate only those entities that are registered with it. Only those entities where financial assets are more than 50% of their total assets and derive at least 50% of its gross income from such assets are registered with the central bank as an NBFC,” said one of the officials. “They have also said that given the manpower available with them, it is difficult for them to regulate all such entities. The IMG will discuss their comments, but if the central bank does not regulate such entities, then who will?” the official said. The RBI spokesperson declined to comment for the story........
RBI starts scrutiny of nearly 3,000 private finance companies
.....Sources said RBI has started scrutiny of about 3,000 companies that are engaged as non-banking financial company (NBFCs) without being registered with it. The apex bank has sought details from them about their financials, including balance sheets, for the last three years, among others, sources added. Information has been sought from companies that are registered with the Registrar of Companies (RoC) in different parts of the country.............
K'taka Bank exceeds MSME lending target
Public sector Karnataka Bank Ltd has lent an amount of Rs 1,498 crore to the MSME sector, posting growth of 24 per cent against the stipulated 20 per cent growth target of RBI, senior bank officials said on Monday. This was revealed at the 18th MSME Customers' meet conducted by the bank last week in Bangalore.....
Any rate hike by RBI will be a body blow to industry: Kidwai
As the weak rupee raises pressure on RBI to hike interest rates, HSBC country head Naina Lal Kidwai said any increase would be a ‘body blow’ to industry and growth. “I hope that it stays stable because interest rate going up will be a body blow to industry and industrial growth, which is very important, at a very fragile position right now,” Kidwai, who is also the president of industry body FICCI, said in an interview........
RBI may maintain status quo on repo rate, CRR in policy review
..........The predominant view emerging from the poll of 10 bankers, economist and rating agencies indicated that along with inflation and growth, the rupee volatility has also become an important factor for RBI. The central bank will like to monitor the impact of the steps it took last week (July 15). Repo rate is the rate at which RBI lends short-term money to banks, while CRR is a portion of deposits that lenders keep with the RBI which does not attract any interest...........
Finance ministry queries Bank of Maharashtra over 34% increase in lending
............."No rules were changed or loans sanctioned. Our results speak for themselves and we are sure the ministry will be convinced," the bank executive said. Bank of Maharashtra reported a whopping 255% growth in its net profit for the fourth quarter of 2012-13 at 258.99 crore, against 72.83 crore in the year-ago period. The net profit has shown a 76.29% year-on-year growth. A finance ministry official, however, said the government has sought data to analyse whether the bank has followed all due diligence. The official said the bank had been cautioned by the Reserve Bank of India around the second quarter of last fiscal, as it had breached some sectoral norms..............
Government allots Rs 1,300cr to Post Bank
......To meet RBI norms, the postal department proposes to set up a new entity - Post Bank of India - that will have an independent board and separate operations. Apart from independent directors, the board will have representatives from the finance ministry and the postal department. Separate recruitment has been planned to have specialist bankers. While converting the entire postal network would have meant a capital requirement of over Rs 60,000 crore, by setting up a special entity, the fund requirement has been reduced. This, officers said, will also help create a more focused strategy............
The Big Bank Rush
.........A banking licence will allow the group to tap its existing customer base of SMEs and truck operators. “We can give them a working capital facility, and they pay interest only on the amount they draw. Today, we necessarily have to give them term loans, which they draw in full and end up paying interest,” says an official..........
Open to setting up a bank, says Bajaj Finance
......"As per RBI guidelines, we will have 18 months time for such conversion. We have enough the required wherewithal to do the business of banking. Through our current NBFC set-up, we are primarily serving affluent customers. However, we are trying to expand our product kitty to include more customers. We have just entered the rural markets," ...........
RBI puts more curbs on gold imports
........"It shall be incumbent on all nominated banks/nominated agencies to ensure that at least one fifth of every lot of import of gold (in any form/purity including import of gold coins/dore) is exclusively made available for the purpose of export," RBI said in a notification..........
Gold and the CAD
............Gold essentially plays the role of a pre-paid credit card. In the long term, this role of gold can only be curbed if insurance companies develop an effective outreach business model, whereby event insurance is obtainable as easily as at an NBFC window. Even so, the role of gold as a friction reducer in the financial system may persist for a long time. At the end of the day, there is only one solution to the gold problem, and that is by offering financial instruments in exchange for the surrender of gold, from which the incremental demand for gold can be met............
Is curbing gold imports an effective measure?
........Consequently, RBI has been taking steps to curb gold imports, such as hiking the import duty and imposing regulatory restrictions. While this step may be desirable, it may not be necessarily effective. Alternatives for curtailing CAD (a consumption-aided disaster) such as reducing government expenditure exist and might be better. The crucial question is why the government remains hesitant to adopt these measures...............
We will review our options after formal NSE order: Mehul Choksi
.........At 23 per cent, foreign institutional investors’ (FIIs) holding (in Gitanjali) is the largest in any jewellery company in India. FIIs perceived RBI’s gold import restrictions to impact our company, because it’s a global player. However, in fact, our business in the US market has improved in the past few months, thanks to the revival in the overall US economy..........
Will chip-based cards succeed in reducing credit card fraud?
.......The embedded chip is capable of storing and transacting data in an encrypted, tamper-proof format, protecting the cardholder from sundry security threats. The advanced technology apart, the RBI has mandated banks to introduce an additional layer of security at POS terminals as well. Cardholders will be required to enter a unique PIN to complete any transaction.........
Just Retired? Look For Inflation-Beating Returns
The
prospect of retirement often brings some people face to face with the
hard reality that in some months they will not be working anymore. For
many, retirement also means that from then on they have to be careful
about having enough funds that will outlast them. With the rate of
inflation going up at high single digits or, at times, in low double
digits, this could be a daunting task for many as they fail to take judicious steps just at the time of retirement or may be a few months before that happens. Here we will discuss some of the issues that just-retired people or who are on the verge of retirement face and how they should address them................
Read - TOI
Read - TOI
10 financial steps you must take before you retire
Do not put off today what you can not afford to do tomorrow. In spite of the world wide pension crisis and a growing acceptance that we must plan and save for our retirement, the harsh reality is we are actually not saving enough. Research reports reveal that only 15 per cent of the individuals are saving sufficiently for their retired life. Here are a few tips on things to do before you retire so that your retired life is more comfortable and enjoyable..................
Income tax returns: 6 new sections where you can save
Income tax filing due date is getting closer. However, quite a lot of tax filers are still not aware of all the deductions that could be availed of. It is always good to be updated on the latest tax deductions. It helps one in maximizing the tax deductions, hence minimizing the tax to be paid. Let us now look at some of the latest sections available for tax deduction from FY 2012-13 onwards....................
‘Wilful Blind Eyes’ are a threat to banks and financial institutions
.........These wilfully blind eyes operate hands-in-glove with the shoddy characters. They deliberately ignore the obvious and allow them to do their job freely. These wrongdoings could be money laundering, terror financing, insider trading, fraudulent activities and many other such similar criminal acts. If these wilfully blind eyes happen to be employees of a bank or a financial institution, they will be subjecting their organisation to embarrassingly huge compliance, legal and reputation risks and also cause its demise. Institutions can also be wilful blind eyes.............
What is Microcredit?
...The annual interest cap for extending microcredit is pegged at 10-12% that is over and above the cost of borrowing of lenders of microcredit. The limit for extending unsecured loans by RBI is further pegged at INR 50,000. The guidelines also suggests microcredit lenders not to provide loans to individuals who have already availed loan facility from elsewhere. leaving most charging 23-27%...........
Read..........
‘Few Ahmedabad citizens keep emergency funds’
.....The survey’s findings substantiates the Reserve Bank of India’s (RBI)’s recently released annual report, which suggested that the financial savings of Indian households, as a proportion of the gross domestic product (GDP), plummeted to a 20-year low of just about eight per cent in 2011-12. About 90 respondents in Ahmedabad said they have not set up any fund to deal with emergencies such as sudden loss of job, death or a medical emergency in family, natural calamities, delay in income, sudden relocation and other such unpredictable factors..........
Mystery of the missing bank scam accused
The prime accused of the Indira Priyadarshini Mahila Nagarik Cooperative Bank, Umesh Sinha had gone "missing" after creating a political turmoil in Chhattisgarh. Sinha, the then bank manager, had come into the limelight when Congress leaders released a CD on Saturday revealing the transcript of his narco-analysis test conducted in Bangaluru in 2007. The bank manager had reportedly named Chhattisgarh Chief Minister Raman Singh and four of his ministers for receiving huge pay-off after the scam hit..........
Bank exams: eligibility criteria relaxed
.......The relaxations include removing the 60% limit on marks received at graduation, scrapping the computer literacy requirement and raising the maximum age to 30 from 28, the finance ministry said in a release on Monday. All graduates can apply, irrespective of the marks they get............
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