........I don't think the IMF's assessment has been that different from what the Government of India has itself been saying, although it does give a somewhat smaller weight to global factors. There is clearly an impact of the global economic slowdown on almost every country. Coming back to India, we were able to counter the immediate impact ............
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, March 31, 2014
Inflation targeting - What's the hurry? - Charan Singh
.....Changes in monetary policy framework deserve focussed attention and a well chalked-out strategy to be successful. Illustratively, the foreign trained but domestically experienced duo of Montek Singh Ahluwalia and and C Rangarajan ensured that the reforms of 1990s were properly sequenced, well calibrated and widely consultative in nature. Only then ..........
Targeting Dr Chakrabarty
On 25th April, one of the most forthright and honest deputy governors (DG) of the RBI will retire—three months before his term ends. It is befitting that Dr KC Chakrabarty, who got the post and an extension without the customary lobbying, has chosen to quit before his term ends.................
Kamath leads race to succeed Chakrabarty as RBI DG
Raghuram Rajan headed search panel has zeroed in on a successor to RBI Deputy Governor K C Chakrabarty and PNB Chairman K R Kamath is believed to be top in the reckoning..................
How HSBC Was Made To Pay
.......Although RBI did not send a formal response, the case was examined at various levels. We were also convinced, at that time, that a complaint to the banking ombudsman would be of little use, since its scope is very limited. We requested Dr Chakrabarty to take up the issue of mis-selling of third-party financial products by banks............
Muggers attack, rob home-alone woman
.......The victim has been identified as N. Geeta, wife of Ravinder, a retired employee of Reserve Bank of India. The incident occurred when Geeta’s domestic help left after finishing her work and leaving the main door open. Mr. Ravinder had gone out for some work. The muggers barged into the house and .........
Tech-savvy Hyderabad youngsters take to bitcoins for investment
.........In India, its use is largely restricted, but that is beginning to change. "Barring a few techies, nobody was interested in bitcoins until the end of last year. However, after the RBI warned against the use of bitcoins last December and later changed its stance saying it would not regulate it, the interest levels began to climb," said M Kamlesh, who is all set to start a bitcoin exchange in the city on the lines of similar setups around the world. ............
Common Causes
............Tarapore is probably the first economist to write a column syndicated in multiple languages. Common Voice has been in print since 1997, and books have followed. Long regarded as a monetary hawk, Tarapore is convinced that high inflation is a cruel tax inflicted on..........
Reddy-ing for the elections: How Raghuram Rajan breaks from Subbarao legacy
............The RBI was at a loss when the rupee fell to record lows when the FIIs pulled out of the market after the US Fed hinted that it may unwind its accommodative policy sooner than expected. Clearly, Rajan does not want to commit this mistake, especially at a time when the US Fed has started tapering and also hinted at interest rate increases. So the RBI is now buying dollars to spruce up its reserves. But apart from this, there is one more reason...........
A sensible intervention
.......But, clearly, the Indian economy, while satisfying the first two criteria, is somewhat fragile on the third. Given that the RBI has apparently hardened its commitment to controlling inflation, it should hardly be expected to throw caution to the wind and risk aggravating the situation again. If it does, in fact, put a premium on.............
Capital challenge
................Former governor D. Subbarao had said in September 2012 that Indian banks would need Rs.5 trillion of new capital to meet global norms. Analysts had pointed out at the time that the government would need to put upRs.90,000 crore in the coming years to maintain its holding in public sector banks. The numbers will be far more...................
Neglected for decades
My View on "Paying RBI governor his due"
Thank you FE for giving space for airing an issue which has been neglected for decades. Some individuals including the previous RBI Governor Dr Subbarao had raised this issue in public and received 'feeble' support from some commentators including economists. If public sector organisations and statutory bodies have to make meaningful contribution to the Indian Growth Story they need to be strengthened by putting in place competent people at the helm-in boards and top level- and a thorough overhaul of HR is overdue at all levels. Market-related remuneration is an integral component of HR Management.
- M G Warrier (Camp: Wynad, Kerala)
RBI: Looking beyond the shock
.........RBI is creating incentives for the sale of stressed assets. However, what has not being adequately recognized is that there isn’t a developed market for stressed assets. Second, the fact of growth global secondary markets, falling asset prices and constrained liquidity will result in banks looking to trade distressed ............
Kadamakkudy panchayat gets its first bank, ATM
..........The declaration as a totally banked district was made by the RBI Governor on the basis of surveys and an intensive campaign undertaken by various banks under the district lead bank scheme. The tag ‘fully banked’ tag is given to those districts with a minimum of 90 per cent of the people having accounts with any bank, according to officials of the lead bank..........
Group Rights are as Important as Individual Rights: Nalsar VC
..........In fact, the collective rights are basic pre-conditions for according individual rights, Nalsar University of Law vice-chancellor Prof Faizan Mustafa has observed. He was delivering CD Deshmukh memorial lecture on ‘Minority rights under Indian Constitution: A trilogy of judicial errors’ here on Saturday. CD Deshmukh was the first Indian governor of the Reserve Bank of India and was known for his deft handling of division of assets and liabilities between India and Pakistan during Partition in 1947.........
Next-Gen Reforms to place Banks on a Sound Footing
...............Parallelly, the RBI is setting up a Central Repository of Information on Large Credits for disseminating credit data — including stress category of the borrower — on all large borrowers to lenders so that recalcitrant borrowers are not able to fleece banks. This signals the dawn of next-gen reforms. With PE firms and large NBFCs — with foreign investors riding on them — coming in as new players and RBI mandating that banks sell even.............
Read - ET
Credit cards back in vogue on payment flexibility
.......“Due to the larger global economy impact, there was a phase where issuers were exercising caution on expansion plans but in the last few months, consumerism has made a comeback. There has been an increase in spends across categories............
Pre-paid card issuers need minimum Rs 5 crore to operate in India
The Reserve Bank of India has raised the minimum capital requirement for pre-paid card issuers five times to Rs 5 crore and told them to maintain a minimum networth of Rs 1 crore.......
Friday, March 28, 2014
Paying RBI governor his due
........RBI should be fully autonomous in terms of pay scales so that there is commensurate reward to the staff as well as incentive for individuals to find the job attractive. Currently, given that the pay could be at 3-5 times in the private sector, it is certainly not attractive in monetary terms, though could be fulfilling otherwise. The institution does provide compensations in terms of generous housing, loans, education allowances, etc, but it does not provide a secure future beyond the public pension schemes. For a governor who has a tenure, unless there is a backup income from the past or in the future, the only motivation could be to steer the ship with limited attention to compensation.............
Core CPI rigidity an important issue: Gokarn
I think the broad thrust of exchange rate policy has not changed for sometime - that is if there is a perception that inflows are robust, are permanent then there would be less inclination to intervene to support - in a sense - to keep the rupee at the levels it is right now. But if there is a perception that this is a short-term windfall kind of a movement then there might be some inclination to shore up reserves in anticipation of the fact that this flow might reverse. So bottomline is................
Strengthening and revitalising rural cooperative credit delivery system - Deepali Pant Joshi
Speech by Dr Deepali Pant Joshi, Executive Director of the Reserve Bank of India, at the National Meet of CEOs of State Cooperative Banks, Mumbai, 21 March 2014
.........The Committee on Financial Sector Assessment set up by the Government of India in September 2006, under the Chairmanship of Dr. Rakesh Mohan, looked into the financial health of all the banks including the cooperative banks and made recommendations for improvement of financial health and systems for attaining and maintaining financial stability. A major recommendation of the Committee was to prohibit unlicensed banks from functioning beyond March 2012..................
Change in Mindset is the Key for Financial Inclusion - Dr.T.V.Gopalakrishnan
.........The bank officials right from top to bottom can do a lot to improve the living conditions of masses and have the satisfaction of serving them in letter and spirit and providing the support system to give a big boost to the economic growth provided they get fully absorbed and involve themselves with commitment in the discharge of their responsibilities. The mandate for this.............
Love for banks, but not bankers
..............Aptly I quote RBI governor Raghuram Rajan, “Our distaste for the banker must not be allowed to destroy the bank.” He wrote this in his column “Love the bank, hate the banker”.
Free health check up for retired MAFS members attached to Bangalore office
The R B I Bengaluru office is arranging for a free Health Check up from Marsh India (their initiative) - "ONLY FOR RETIRED MAFS MEMBERS ATTACHED TO BANGALORE OFFICE". Those retired staff who wish to avail of the above health check-up may get in touch with
Shri Jagadish K | Sr.Relationship Manager
Marsh India Insurance Brokers Private Ltd. | RMZ Millennia 4th Floor, Tower-C Land Wing, Murphy Road Ulsoor, Bangalore 560008
+91 80 41857814 | Fax +91 80 41857801 / 02 | Mobile +91 9739108883 | Email ID: jagadish.k@marsh.com<mailto:ja
As reported by Franklin Randolph frankmisquith@gmail.com
RBI may go for a smaller than 25 bps rate hike: SBI Report
.............However, since RBI has surprised the markets in past few policies, there is a possibility of rates going either side, but with a larger probability of a rate hike, the report said............
Read - ET...........
BJP reiterates stand on new bank licences
.............“We have said earlier and still maintain that it is an issue for the next government. We will closely scrutinise any move by RBI in this direction if it were to happen prior to formation of the 16th Lok Sabha,” ..........
RBI sought EC's nod on bank licence as matter of caution: Rajan
.........."I think (it) is to make sure that any such announcements are not tinged by uncertainty. That's why it is important to ask the Election Commission whether this meets with the code of conduct. "Think of it as caution, you might call the caution excessive but it's important to follow process,".................
RBI extends Basel III deadline to 31 March 2019
...............“Of late, industry-wide concerns have been expressed about the potential stresses on the asset quality and consequential impact on the performance/profitability of the banks. This may necessitate some lead time for banks to raise capital within the internationally agreed timeline for full implementation of the Basel III capital regulations,”..................
Can RBI’s policies alone tackle rising NPAs deftly?
...The Reserve Bank of India (RBI) along with the other regulators, has constantly been trying several policy reforms to deal with the rising NPAs with not much impact. Looking at the current market scenario and various steps taken by RBI, it would be interesting to see, how bad loans can be minimised...........
Should RBI target inflation?
The issue on whether the Reserve Bank of India should target a particular level of inflation in its monetary policy has many disagreeing, including some prominent names. Doing so was one of the key recommendations of the Urjit Patel committee report. It also suggested adopting..............
India needs more disinflationary medicine
..............To understand what RBI may do, one has to look back at the past two monetary policy appraisals in December and January and look at the factors that prompted a pause and a hike in these two instances respectively...................
How to Solve India’s Bad Debt Problem
........Back home, the government and the RBI should facilitate the formation of Namco, with banks as its major and initial shareholders with an equity base of around . 6,000 crore. Namco’s goal should be to resolve the NPA problem. Its main activities will include NPA acquisition, aggregation and resolution, including the sale of businesses, or assets, or management change. Then comes the rehabilitation, recapitalisation and refinancing. It will also be..............
Read - ET
Srei gets RBI nod for 9,000 white label ATMs
.........Srei said it would leverage its over 27,000 IT-enabled Common Service Centres (CSCs) which were already in operation by village level entrepreneurs (VLEs) through Sahaj e-Village Limited. ............
Thursday, March 27, 2014
Getting out of cash- what can banks do?
The mobile is of course just a channel, and adoption of this new way of making payments or even checking your account balance is easy, but only once people have learnt to trust and use the app. While trust will spread by word-of-mouth of satisfied customers, we still don't see massive ad campaigns on using the phone as a quick and easy way to do basic transactions. RBI tells us that 80 banks have been allowed to give mobile banking services, of which 64 have started, but not many banks have ad campaigns out...........
A BANKER YOU JUST COULD NOT IGNORE
Reserve Bank of India deputy governor KC Chakrabarty, who will quit in April, evoked love and hate in equal measure. He often took on the might of the establishment, but will be remembered for making banking more customer-friendly. He also passionately believed in financial inclusion, writes Sangita Mehta........
Read - TOI
Obiturary
Smt Sunanda Deole, wife of Shri Ratnakar Deole, Ex-CGM, Premises Department passed away early morning on 26th March 2014 in Singapore after a brief Illness. May her Soul rest in peace.
Shri Deole can be contacted on ratnakar_deole@hotmail.com
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