.........And when the current account deficit (CAD) was looking problematic, Subbarao even gave a speech at the London School of Economics’ IG Patel lecture in March arguing that those advocating interest rate hikes to fix the CAD were wrong since lower interest rates would actually encourage equity investors even while dissuading investors in debt. That is clearly a view the Governor jettisoned very soon. It is never possible to answer a debate in the absence of counterfactuals—would lower interest rates have spurred investments while various government clearances continued to dog them?................
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.
Tuesday, July 30, 2013
RBI’s Russian Roulette
...........So, what has RBI achieved? At best a temporary reprieve for the besieged rupee? Engineering a liquidity crunch is hardly the advisable remedy to break out of this siege. The costs can be just too high in terms of lost growth, severe dampening of investment sentiments, killing off the animal spirits and making our exports less competitive.............
Bankers, officials hail financial inclusion work in Madhya Pradesh
.........“Madhya Pradesh is the only State in the country where there is perfect coordination between the Reserve Bank of India, the State Government and other agencies concerned,”..................
RTI Judgement Series: Bank PIO fined Rs 17,000 for not complying with CIC order
...........Since no reasonable cause has been offered for the delay of 68 days in providing the information to the Appellant as per the order of the CIC, the Bench is imposing the penalty on Mrs Mugdha Satarkar, PIO & AGM (Vig) under Section 20(1) of the RTI Act at the rate of Rs250 per day of delay of 68 days that comes to Rs17,000," ..............
Check before you express
RE: WHITHER R B I 'S CULTURE ?
| Subramaniam, Uma |
| Sent: | Monday, July 29, 2013 5:30 PM |
| To: |
Ramachandran P.P
[pprchandru@gmail.com]
|
Dear
Sir
The
College is dismayed by your remarks on the blog. We wish you had checked the
facts with us before sending them into the blogging space. It is not correct to
state that the College did not issue an invite to Ms Thyagarajan. Not only was
the invitation mailed to her, one of our Jubilee co-ordinators Shri M
Subramaniam who is also Member of Faculty rang her up a day before the event for
making the necessary logistical arrangements for car pick up etc. which was
politely declined by her on health grounds. Further, she
was personally delivered a copy of the Souvenir at residence. We trust our
clarification will also be published in the blog.
Regards
Uma
Subramaniam
Chief General Manager and Principal
Chief General Manager and Principal
RBSC, Chennai
This is the factual feedback received from the Principal, RBSC in response to info item given by P.P.Ramachandran, DGM (Retired) titled 'Tired' on appraoch towards 'Retired'...............
An insider’s view of reforms
.........The RBI Governor Subbarao (chapter 10) raises what he terms “policy challenges from the New Trilemma.” He has often emphasised the need for the RBI and the government to share responsibility, especially in relation to the impact of fiscal deficits and to ensure fiscal stability. He feels that unless the respective roles are defined, these could impact adversely the independence and accountability of the RBI. The situation could get worse if debt market operations are shifted from the RBI to the Finance Ministry. It is a retrograde step and puts the clock back.................
Obituary
Shri P.A.SIVALINGAM, former Personal Secretary to RD, RBI, Chennai passed away at 3.00 a.m. on 29-7-2013. He was one
of the members who were honoured by the Forum of Retd. Employees of RBI last Saturday
on their attaining the age of 70 years. We pray for his soul to be rest in
peace and convey our heartfelt condolences to the bereaved family.
-
SMALL COINS DISTRIBUTED
Officials of the State Bank of India, main branch, distributed small coins to the tune of Rs. 2 lakh to about 300 people at Poorna Market on Sunday. Following RBI guidelines to help the common customer overcome shortage of small coins the bank had taken up such activity on a regular basis,...........
RBI eases curbs on payment gateways
........The rationale for its initial strict regulations, according to the RBI, was that several service providers had allowed exporters to retain the export proceeds abroad without repatriation, resulting in violation of the provisions of the Foreign Exchange Management Act (FEMA) 1999. “Online payment gateway service providers have been finding it easier over the last few years, with the RBI easing up on some of its earlier regulations. If all goes well, PayPal may soon be allowed to resume its Indian operations as well,”...........
RBI warns NBFC on unsolicited calls
............This is the second time that a notice has been issued to the NBFCs by the RBI on the same subject. The entities were advised to employ only those sales agencies or call centres which have been registered as telemarketers with the department of telecommunication (DoT), as per the regulations of the telecom regulatory authority of India (TRAI) issued 2007 for the job of soliciting or promoting any commercial transactions.............
Card volume expands in India despite significant unbanked population
.........“As India continues to expand and upgrade its telecommunications infrastructure to rural areas, more Indian consumers will have access to secure and reliable electronic payments and financial services via a mobile phone– a critical step in the migration from cash to more convenient, secure forms of payment,” ............
UIDAI, banks disagree on use of biometric authentication at ATMs
..........It's learnt that the UIDAI nominee on the panel is likely to issue a dissent note on the estimates the agency believes is significantly higher than what banks' migration to Aadhaar would cost. About a fortnight ago, the findings of the report were shared by Pulak Kumar Sinha, the SBI general manager who heads the panel, at a luncheon meeting with RBI Deputy Governor H R Khan. Other members of the working group were also present at the meeting..........
Will chip-based credit cards really work?
.....Banks will have to convert all credit card customers on the new system. The best part is that since the regulator has made it mandatory for banks to issue chip-based cards, most banks will not charge you a fee for the same. Since chip-based cards are more expensive than the magnetic strip-based cards, some banks may pass a nominal fee to the customers............
Graduation day
...........The financial inclusion trend from the Reserve Bank of India and the present decade witnessing superannuation in banking sector have given rise to six lakh vacancies in banking sector from now till 2020, Mr. Sundara Rajan added................
Unruly rally disrupts road traffic
............s per permission granted by city police's special branch, Swabhimani Republican Party was allowed to take the rally from Janata Chowk to RBI Square at 12 noon. However, sources in city's traffic police said the police had expected about 500 people in the rally but over 5,000 turned up. Things became worse when the rally lost order and its participants spread to both sides of the road from Janata Chowk to RBI square..............
The Taylor Rule and interest rates in India
In the run up to 30 July monetary policy review by the Reserve Bank of India (RBI), opinions regarding the stance of the central bank have tended to focus on benchmarks based on the Taylor Rule—an interest rate feedback rule of how central banks should set short-term interest rates as economic conditions change to meet the goals of economic stability together with desired inflation rate. The rule states that............
SBI chief predicts RBI would raise repo rate
.........Chaudhuri's views contradicts 31 of 32 analysts in a Bloomberg News survey who predicted no change to the benchmark rate, while 29 of 30 expects the CRR to remain unchanged at four per cent. The decision is due at 11 am on Tuesday..............
Not My Baby, Says the RBI; It is Right
The
Reserve Bank of India (RBI) has given clear indication that monetary
policy has to remain cautious in the face of financial risk, unbridled
consumer price inflation and a still-high current account deficit (CAD).
While the RBI might stoop to administer emergency CPR to the economy
gasping for breath, it would prefer to leave treatment for sustained
recovery to the government. In its review of macroeconomic and monetary
developments, the RBI makes it very clear that structural reforms to
contain the CAD and fiscal adjustment to prune subsidies and step up
investment are what the economy requires, and these depend on government
action.................
Read - ET
Read - ET
Recent liquidity steps 'at best' breathing time: RBI
The Reserve Bank of India (RBI) has sounded a hawkish note on the eve of the monetary policy review by saying the recent currency depreciation has posed upside risked to both wholesale and consumer price inflation. In the Macroeconomic and Monetary Development report released today the central bank said it will actively manage liquidity to reinforce monetary transmission that is consistent with growth-inflation balance.....................
RBI's emergency medicine: What does history tell us?
There are differences between now and 1997-98, but sufficient similarities too for us to draw lessons from the past, about the recent RBI’s policies to strengthen the rupee. RBI's goal could be to reduce volatility, and not set a level for the rupee; it would provide the time needed for the economy to adjust to the weaker rupee,...........
Subbarao's win against inflation is growth's loss
.............Subbarao will surely say achieving any result from a monetary policy in an integrated global world today is easier said than done..................
Chidambaram says price stability cannot be the only mandate of RBI
............."All over the world thinking in changing. The mandate of a central bank must not only be price stability. The mandate of central bank must be seen as part of larger mandate which includes price stability, growth and maximising employment,"............
Measures to stabilise rupee must not hit growth: Rajan
Hours after the Reserve Bank of India said that stabilising the battered rupee is its priority, Chief Economic Adviser to Finance Ministry Raghuram Rajan said the RBI’s action in this regard must not hurt growth too much....................
Ab tak 56 & return of decoupling
...........This bolstered the minister's vocal push for a hand of support for growth from the Reserve Bank of India (RBI) by cutting rates. Though RBI resisted initially, it finally had to give way. The minister also took steps to attack speculative investments in gold and real estate, often targets of the Street for its own woes. Empowering Sebi to attack ponzis was another key move............
Right about the rupee
......What the RBI needs to understand is that without correcting the unprecedented galloping inflation, it cannot successfully correct depreciation of the rupee.................
Focus On Re, Growth A Liability
.........."The priority for monetary policy now is to restore stability in the currency market so that macro-financial conditions remain supportive of growth. (However) this strategy will succeed only if reinforced by structural reforms to reduce the CAD and step up savings and investment,"..............
Only Reforms Can Put Economy on Track: RBI
The
effect of the Reserve Bank’s recent interest rate increase and
liquidity tightening to bolster the rupee will fizzle out if the
government does not move to reduce external trade imbalances, a central
bank policy review says. It will be a hard road to economic recovery
as business confidence is low, and rising global interest rates may
throw the financial markets out of gear, says the June quarter
Macroeconomic and Monetary Developments review by RBI...........
Central Bank Can’t Afford to Frighten Equity Investors
......Those
were also the days when the government could privately place bonds with
RBI and keep its borrowing cost well below market rates. Not any more;
today, the market will demand a competitive rate from the government
similar to what it would charge any other borrower..........
Read - ET
Silver linings amid economic gloom: JP Morgan’s Morparia
....... In an interview on Thursday, she said the recent reforms initiated by the government will continue till the elections because policymakers have shown a rare resolve to address growth and investments. Morparia also touched on issues ranging from the Reserve Bank of India’s recent policy measures to support the rupee, to J.P. Morgan’s plans for India. Edited excerpts:................
Empowering SEBI the right way
..........The Centre’s expectation is that a suitably empowered regulator would nip such financial misadventures in the bud. That might still be a tall order given that most recent scams have thrived by exploiting differences in the regulatory jurisdictions of SEBI and the RBI. The Indian financial code which has been drafted to address inter-regulatory issues has not found universal acceptance and will take time before it is adopted...........
Burden of gold
In recent times, especially in the light of a widening current account deficit, Indians' obsession for gold has come under fire from various quarters. The government and the Reserve Bank of India have taken measures to clamp on this. A look at the frustration of earlier policy makers in this regard:............
Rana Kapoor wants rates unchanged
It could well be one of the most critical monetary review policies by the Reserve Bank of India (RBI) on Tuesday as companies and industry bodies wait anxiously for the apex bank’s directives. Rana Kapoor, managing director and chief executive officer Yes Bank and president of Assocham, said a status quo on policy rates would be a positive message by the RBI indicating that lending rates would ease in the near future and the recent measures undertaken by it were only aimed at the currency market.............
YES Bank can’t be family business: Rana Kapoor
YES Bank chairman and co-founder Rana Kapoor recently saw the denial of board seat to his niece snowball into a controversy. But Kapoor, who has donned the hat of industry chamber Assocham’s president, tells TOI that the bank he cofounded with his brother-in-law Ashok Kapur can’t be run as a family business and his children will stay away. Excerpts: ........
Read - TOI
Read - TOI
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