......Rajan who is currently acting as officer on special duty (OSD) in RBI, before he takes charge on September 5, have had several one-on-one meetings on Monday and Tuesday, before flying back to Delhi, with Deputy Governors and Executive Directors of RBI. In his interactions with department of banking development and operations (DBoB) which is headed by deputy governor Anand Sinha, Rajan indicated the process of new bank licence should have a definitive step before Sinha’s term comes get over in January 18, 2014.................
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.
Thursday, August 22, 2013
Rajan suggests mid-quarter review be rescheduled
Governor-designate and Officer on Special Duty at Reserve Bank of India, Raghuram Rajan, has started off in right earnest. On Tuesday, only his second day as OSD, Dr. Rajan is understood to have suggested that the central bank push back its mid-quarter policy review, scheduled for September 18, by a couple of days. The reason? The Federal Open Market Committee (FOMC) is meeting on September 17-18, and it is billed to be a critical event not just for India but for the global economy as a decision on tapering of stimulus is expected to be finalised..............
Subbarao - person of unimpeachable integrity and humility
Mr Subba Rao had served the RBI with great devotion and distinction. He had put in a lot of hard work. He was also a person of unimpeachable integrity and humility. At the time of his entry into the Bank in the year 2008, there was the Global crisis. Poor man, he could not take things easy even in the last two/three weeks of his tenure! Because of his straightforward nature, he could not gain sufficient influence with the Government to push through the Pension Updation issue of RBI retirees to a successful outcome.
- A.Chandramouliswaran
An honest and sincere Governor, Shri Subbarao is signing off in a few days' time. He had a challenging assignment through global crisis initially and when that was weathered rupee-crisis raised its head. Full credit to Shri Subbarao for withstanding the pressure from Government and other fields to yield on rates. RBI has always stood for principles and under the stewardship of Shri Subbarao the institution stood tall despite immense pressure allround. Only time will about RBI's measures in the face crisis both intra-nationally and internationally. But Shri Subbarao's tenure will always be remembered as a significant one.
- Srinivasan, Cochin
Subbarao’s RBI Report Card
India’s out-going Reserve Bank of India Gov. Duvvuri Subbarao earned plaudits for keeping inflation in check and asserting the central bank’s independence from the government. But the sharp slide in the value of the rupee on his watch could cast a shadow on his legacy. Mr. Subbarao has had a tough five years at the helm of the central bank...........
Dynamic officer no more...............
Shri.O.P.Taneja passed away in Mumbai on 21-08-2013. He was 83 years old. He joined the Bank in 1948 and retired in
1987. Shri. Taneja was hand-picked
by Governor Dr.Manmohan Singh for the post of Chief Officer of PPD in
1985. He had made significant contributions in three sectors — Pension, Medical
Assistance and Holiday Homes. Shri Taneja was a dynamic officer always
helpful and friendly to one and all.
– P.P.Ramachandran
It is really a very sad news. I have had the privilege to work under him
in the initial stages of my career at Nagpur office. He was very open minded
and helpful officer. He always stood by the staff under him and did not forget
his erstwhile office even when he rose to higher levels. May his soul rest in
peace.
- Sharad Fadnavis
O.P.Taneja - Indelible mark on every task.............
 |
File Photo - Shri R.N.Malhotra, Governor
presenting a gift to Shri Taneja
|
On his retirement, Shri Taneja was captured by Shri S.M.Khot in farewell address as under:-
Rarely - very rarely,
indeed - does one come across as fascinating and a many-splendored personality
as Shri O.P.Taneja,- till recently Chief Officer, PPD, who has carved out for
himself a special niche in the minds of the RBIites. Yes, in an institution as
big as RBI, retirement is a usual phenomenon but, what is remarkable about Shri
Taneja is that he belongs to that rare band of persons who leave their
indelible mark on every task performed, giving a feeling that their retirement
has come too soon and at a stage when they are still in their peak form. Joining RBI at an
adolescent age of hardly 18 years, Shri Taneja started his career way back in
1948 at the lowest rung of the hierarchical ladder as a Clerk in Kanpur office.
He simultaneously pursued higher studies and acquired B.com, M.Com. degrees
from Kanpur University. He was selected as a Probationary Assistant in 1959 and
posted initially to Calcutta Office and after three years transferred to Patna.
He was promoted to Gr.B in 1963 and posted to Nagpur Office where he worked for
over six years in several Capacities including as Personnel Officer where he
showed the glimpses of his abilities in handling staff matters. Shri Taneja's long
association with Central Office began with his posting to Bombay on elevation
to Gr.C in 1970. He worked as Assistant Manager in erstwhile DAP for about four
years before he took over as Secretary, Reserve Bank Services Board. His stint
as Secretary of the Board brought him into the Corporate limelight because of
the competent handling of the job, several recruitment, etc. procedures
introduced during his time have stood the test of times. I had the good fortune of
working under him and got the benefit of his matured advice and
guidance. He was really a leader of men and matters and got facilities
of a substantive nature for RBI staff. It was not easy to convince the
bosses to secure these benefits but he succeeded in doing so because of
his immense
administrative abilities, courage of conviction and commitment. On the
issue of Pension updation, he had written a letter to Dr.Manmohan Singh
in his own inimitable style.
– S.M.Khot
Interest rate defence: Start of an exit?
.....RBI regains a measure of monetary policy discretion with this retraction, which has cost it some loss of credibility. But it revives growth expectations, all but killed by a rupee-driven strategy. Both augur well for foreign investors in stock and bond markets, which will now decide the currency’s level along with US Fed’s tapering monetary stimulus.
Read - Mint
RBI went by majority opinion for status quo policy of July 30
................"On monetary policy measures, four of the seven members (Technical Advisory Committee on Monetary Policy) recommended maintenance of status quo in the policy repo rate," RBI said in a statement. "In their view, though growth and inflation are projected to move down, we still have to guard against high inflation expectations that can destabilise the momentum of the economy," it said..............
RBI should end its stop-go policies
..........The truth is that RBI is trying to do everything at the same time—ease monetary policy to push down yields, tighten monetary policy to curb the sell-off in the rupee, while at the same time trying to curb inflation by tightening monetary policy and easing monetary policy to spur growth. Confused? Not as much as the RBI… It is about time that somebody reminds the RBI about the Tinbergen Rule: For each and every policy target there must be at least one policy tool. If there are fewer tools than targets, then some policy goals will not be achieved. The only thing RBI fundamentally can do is to control the money base to hit one nominal target. Therefore, it is also about time that RBI comes clean on this.............
Losing credibility
.......The events of the past few weeks have hurt the credibility of both the finance ministry and the central bank, especially the latter. Credibility is important in the conduct of policy in a market economy, ..........
Money involved in bank frauds has increased: CBI chief
New Delhi: The money involved in bank frauds has increased substantially over the years despite a decline in the number of such cases, Central Bureau of Investigation (CBI) chief Ranjit Sinha said Wednesday. "While the number of bank frauds cases has shown a decline of 46.37 percent, the amount of money involved has quadrupled, showing an enormous increase of 324.27 percent," Sinha said while quoting a Reserve Bank of India analyses of the year 2009-10........
Loan Defaults Spark Ranga-Sinha Debate
......While
CBI Director Ranjit Sinha on Wednesday pitched for fixing criminal
accountability of public sector bank officials in case of loan defaults,
he was contradicted by veteran economist C Rangarajan, who pointed out
that the rise in non-performing assets of banks could also be on account
of the grim state of the economy rather than frauds. Rangarajan, a
former RBI Governor and chairman of the Prime Minister’s Economic
Advisory Council, was the chief guest at the 5th Annual Conference of
Central Vigilance Officers of government PSUs and officers from CBI on Wednesday.......
India’s consumption disease
Ten years ago, almost to the day, the late I.G. Patel opened his presentation to the Stanford University Conference with a quote from the Reserve Bank of India’s Report on Currency and Finance for the year 2003: “India is no longer an economy of scarcity and shortages: food stocks and foreign exchange shortages and rationing of essential goods and materials are memories of the past. In the macroeconomic and financial spheres inflation has been contained, external debt indicators have improved exchange rate is flexible and the country is free of financial repression…India has become much more integrated with the world economy.” The RBI’s tone is euphoric, it evokes a sense of freedom from chains, and the fruits of that heady liberation are evident in its laundry list of achievements.............
CM, RBI ask banks in state to better credit-deposit ratio
PATNA: The low credit-deposit (CD) ratio in the state at 38.2% was a cause of concern at the State Level Bankers Committee (SLBC) meeting held here on Wednesday with both CM Nitish Kumar and the Reserve Bank of India (RBI) asking the bankers to jack it up to an appreciable level through increased lending activities...........
At bank branches, makeover is the word
........... Data from the Indian Banks’ Association validate the point – new branch expansion is up 45% in the last 5 years. In other words, branch banking will remain a priority for Indian lenders, which will co-exist with alternative channels like Internet and mobile banking. The difference in banking requirements can’t be more conspicuous. While corporate customers and high net worth individuals need all premium banking facilities, rural branches have to be no-frills and low cost. Citibank recently opened a bank branch in an affluent part of Mumbai specifically aimed at high-end customers. The branch boasts of interactive televisions, iPads and swanky interiors.......
RBI to issue Rs. 100 currency notes
.......... A RBI release said that the notes will bear the signature of Dr. D. Subbarao, Governor, Reserve Bank of India, and the year of printing, 2013, on the reverse of the note. The design of notes will be similar in all respects to the Rs. 100 notes in the Mahatma Gandhi Series 2005.............
Banks responsible for fake notes in ATMs: RBI
Hyderabad, August 21:
Reserve Bank of India (RBI) Regional Director (Andhra Pradesh) K R Das on Wednesday advised people to approach the concerned bank if they find fake notes in the ATM. Stating that as per the new RBI guidelines, the banks are responsible for the fake currency notes coming out of their ATM machines and they should compensate the same amount to the customers........
Internet banking fraught with risks, says AP's Banking Ombudsman
........With mobile phones increasingly used for communications and obtaining one-time passwords for internet-based banking, the know your customer standards by mobile telecom operators, especially while issuing the duplicate SIM cards, is now emerging as an area of concern for the bankers. “Instances of fraudsters intercepting one-time passwords by obtaining duplicate SIM cards of bank customers have been reported,” State Banking Ombudsman N. Krishna Mohan said................
ATM cards to have more security features
ATM cards issued by the public sector banks are found to be highly susceptible to fraud as they are made of inferior technology, according to the banking ombudsman of Andhra Pradesh. "The cyber crime wing of the police department has been receiving 4-5 complaints every day involving impersonation and most of these cases pertain to the cards issued by the public sector banks," N Krishna Mohan, Banking Ombudsman and Chief General Manager of Reserve Bank of India, said on Wednesday.........
Aadhaar Card to be accepted as address proof
........Minister of State in the Ministry of Finance Namo Narain Meena, who gave this information in written reply to a question in the Lok Sabha, said, “RBI vide its circular dated 28.09.2011 has advised banks to accept the Aadhar letter issued by Unique Identification Authority of India (UIDAI) as an officially valid document for opening bank accounts without any limitations applicable to small accounts.”...........
Only swift action on CAD can soothe market: Gokarn
...........Gokarn, who is currently director of research at Brookings India, feels that government and RBI should not ignore rating downgrade risks. “We need to see a dramatic change in monetary policy stance. Only a swift action on CAD can soothe market,” he added.......
Crisis Brings RBI and Government Together
.......Whatever these measures achieve in the long-term, the response to the depreciating rupee has certainly given the immediate impression that the country’s economic and financial management system is working hand in glove after a long period of antagonism. The time of crisis may have brought the bank and government back together, but their underlying ideological divisions may eventually drive them apart again.
RBI saved banks from logging Rs 30,000 cr mark-to-market loss: ICRA
Ratings agency ICRA on Wednesday said the country's banks were staring at a loss of up to Rs 30,000 crore on mark-to-market (MTM) loss if not for the Reserve Bank of India's (RBI) relaxations yesterday. The losses will now get reduced to Rs 3,000-5,500 crore, it said in a statement released a day after the Reserve Bank got in the set of relaxations.............
RBI act to induce sanity; relief rally in banks: BlackRidge
...........There is something to cheer about on the basis of what RBI has done. Typically, RBI was in the past following a classic textbook approach of raising interest rates, bringing down growth, sucking away liquidity and then trying to manage the currency. I think the Indian version of the Operation Twist, what we have seen is expected to get some sanity in the market...........
Banking on RBI
...........Indeed, from RBI’s Wednesday’s announcements, it appears RBI itself was taken by surprise since the stated purpose behind its moves the past month has been to increase only yields at the very short end of the market. With the new dispensation and the promised open market operations—the exact duration and amounts have not been specified—aimed at bringing down longer yields, banks can heave a sigh of relief for now...............
RBI measures fall flat
..........“The worry is that the measures taken by the central bank are seen as incremental and reactive. These are times when people panic and there is a lack of confidence in the market, as well as the economy,” ............
When RBI appears lost...
..........“The market is confused. One group of pundits believes that the steps the RBI announced yesterday is an indication it will no longer take any fresh liquidity tightening measures. But this could exacerbate the pressure on the rupee. But there are others who believe the RBI will intervene whenever the forex market turns volatile. The market seems to be divided on whether or not the RBI will intervene,” .................
Why rupee should retire at 65, and Mr C should take a vacation
The Rupee met the Dollar for lunch yesterday. This was what we overheard…
Dollar: Hi there, Li’l Rupee. How’s life?
Rupee: Can you go easy on the “Li’l” part? I’m not in any mood for your cockiness…
Dollar: Sorry, didn’t mean to belittle you. Sorry, that slipped out unintentionally. But why are you in such a sorry state? What happened?.............
A Weaker Rupee is Not a Bad Thing
..........The
government should now focus on reining in inflation, part of the reason
for the rupee’s weakness and likely to go up because of that weakening.
The Reserve Bank of India has done what it could by keeping interest
rates fairly high, but a lot of inflation is related to administrative
lapses..........
Read - ET
Can rupee break 70/$? Yes, if these 4 conditions aren’t met
T
he rupee has already broken the 64 mark against the dollar. Market analysts fear that the Indian currency may touch 70 against the dollar in the near-term. According to Nizam Idris, head - EM FX Strategy of Macquarie, the rupee may break that psychological mark based on these four conditions........
My View on "ISLAMIC BANKING – Shattering the concept of Commercial Banking"
The terms 'Hire Purchase' and 'Lease financing' are familiar among those associated with financial institutions particularly, banking. In the case of higher purchase financing, we add the interest element and collect the amount in installments over a fixed period of time. In Islamic banking, instead of interest, a fee is loaded and the same is recovered from the user. Here, the ownership remains l with the lender until all the installments are paid by the borrower. The relationship between the lender and the borrower is something similar to that of a seller and buyer. Similarly, in the case of lease financing, lease rent is collected from the user and the asset would be transferred after a specific period of time either to the lessor or lessee depending upon the terms of the contract. These are just two examples which are very close to Islamic Banking. Islamic Banking is more transparent. It recognises partnership approach to banking and so better monitoring and follow up supervision is ensured as the banker is also keen in running of such enterprises supported by it in a profitable way.
Advantages for India:
In the present CAD crisis, allowing Islamic Banking in the country, would bring in huge flow of foreign investments from friendly countries such as UAE and others which would help in long term stability of foreign exchange. It is understood that even when the Indian currency is falling in value every day, none of the foreign investors in banks like HDFC, ICICI etc., have taken away any of their investments in these banks. So, allowing Islamic Banking will give long term stability to our economy. No going back to IMF as we were doing earlier. Now also such fears are looming large. Traditional banking will have good competition to meet with and so they will work more efficiently and it will improve customer services in terms of cost of providing various services.
Caution while allowing Islamic Banking:
There may be chances of funds from terrorists' groups to come to India through this banking system. Of course, a robust oversight system and suitable checks and balances would need to be in place which RBI is capable of taking care.
- S.Santhanam
India- RBI approval for Cheraman to boost inclusive growth
(MENAFN - Arab News) Indian and international Islamic banking experts have welcomed Reserve Bank of India's decision allowing operation of an interest-free non-banking financial company (NBFC) in Kerala, saying it would encourage the country's 200-million-strong Muslims to participate in the country's development projects. "It will have a big impact on the Indian economy and contribute to the expansion of Islamic banking and finance worldwide," said Mohammed Azmi Omar, director general of the Islamic Research & Training Institute, an affiliate of Islamic Development Bank.........
Read.........
Read.........
Madhu Kapur’s suit can’t be accepted under banking laws: Yes Bank
........“This court has no jurisdiction to entertain this suit because the respondent is a bank governed by Banking Regulation Act just like companies are governed by the Companies Act,” Kadam said, citing some instances when corporate cases were not heard in the civil court. “(I am sure) this civil court in its wisdom will not sit over the jurisdiction of this case,.............
SBI rejigs accounts to lower losses on farm lending
.......Insiders say this is the first time that the bank has undertaken such an exercise. SBI's farm loans stand at Rs 40,000 crore with 7-8% of bad debts. Experts TOI spoke to say that the exercise is nothing "but fudging of books". A spokesperson at RBI said, "We are aware of the issue and examining it." .........
Yellow metal price rise revives fortunes for gold loan NBFCs
......... “There’s no denying that when gold prices increase, there is a positive effect on the eligible loan amount (which automatically goes up). This being the case, when import duties are hiked or when other supply restrictions push up the price of gold, the gold loan industry actually stands to gain,” ...........
Nabard union cautions against recasting cooperative credit system
All-India Nabard Employees’ Association has said that basic features of cooperative credit structure should not be tinkered with until after an informed nationwide debate on the matter. The demand comes in the context of a Reserve Bank directive to the National Bank for Agriculture and Rural Development (Nabard) that it should pilot the reforms in the cooperative sector..............
RBI wants politicos away from co-operatives
In response to a directive from the RBI the Punjab govt. has decided to begin a process that would prevent politicians and their supporters from controlling central cooperative banks in the state. In a strange coincidence readers could recall that IFFCO Managing Director U S Awasthi had recently told Indian Cooperative that politicos should desist from joining cooperative affairs. Echoing his views RBI passed a similar direction in the wake of large-scale bungling in the affairs of the cooperative banks across states...........
Subscribe to:
Posts (Atom)