RBI's tight monetary policy to continue: Dy Guv

A day after RBI Governor D Subbarao dashed hopes of a pause on hiking rates, his deputy K C Chakrabarty hinted at continuation of the tight monetary policy, despite the country showing a decline in economic growth parameters.All the same, Chakrabarty said monetary policy had its own limitations when it came to arresting high inflation in the long run, saying price pressures could only be brought down by addressing supply-side issues and reducing manufacturing cost. “If inflation remains high, interest rates will also be high,” he told reporters on Friday on the sidelines of a seminar organised by the Federation of Indian Chambers of Commerce and Industry in association with United Nations Development Programme, India.When asked if the Reserve Bank would further hike the policy rates, he said that the deputy governor said he could not answer the question based on just one figure (monthly inflation for September). The decisions in the policy review are taken after due research and analysis of many factors, he added. “There is something called minimum medicine that needs to be given,” he said when questioned on the series of policy rate hikes. Yesterday, the RBI governor had indicated that it might not soon give up on its tight monetary stance. “Had we not raised the rates, how much would have been the inflation,” asked Subbarao. “Despite so much tightening, inflation runs as high as 9.8 per cent as of August,” he said in Jaipur. RBI has raised policy rates 12 times since March last year, but inflation still remains over 9 per cent for months. The bank is now slated to come out with its monetary review on October 25. Chakrabarty, earlier addressing the participants from the banking sector and micro finance institutions, asserted that RBI has removed all the roadblocks in effectively carrying out financial inclusion. “The poor are more bankable than the rich. The only expectation that I have from you people is that I do not exploit the poor people,” he added. Chakrabarty also criticised banks and the MFIs for “poor financial inclusion”. MFIs are “themselves responsible” for their current state. “You cannot claim that you are doing financial inclusion by charging 80 per cent interest rates,” he said. Responding to a query on proof of address having become a hurdle for the poor to open a bank account, he said just a simple self-declaration was sufficient for the poor to open a basic account.

BS

Mumbai on alert

Mumbai: Mumbai has been put on alert after a huge cache of explosives was recovered from Ambala Railway Station yesterday. Other parts of Maharashtra including Pune, Nashik, and Nagpur are also on high alert. Security has been beefed up outside vital installations and sensitive points including the Chhatrapati Shivaji International Airport, BARC, Mantralaya and an RBI building.  The Mumbai police have also been asked to carry out surprise checks at hotels, motels and the lodges in the city. An alert has been sounded in the neighbouring state of Goa. On Wednesday, a large quantity of RDX was recovered from a car parked outside the Ambala railway station. According to reports 5 kg of RDX, 3 timers and 5 detonators were retrieved in the search operations.

Daily Bhaskar

What’s the rate beyond which inflation hurts growth?

RBI Working Papers:

Why Persistent High Inflation Impedes Growth? An Empirical Assessment of Threshold Level of Inflation for India by Sitikanta Pattanaik and G.V. Nadhanael. Inflation Threshold in India: An Empirical Investigation by Deepak Mohanty, A.B. Chakraborty, Abhiman Das and Joice John

The chief domestic concern for the economy is currently the high level of interest rates and inflation. Elevated interest rates have slowed down the economy and are impeding investment. Will the Reserve Bank of India (RBI) continue to raise its policy rates? How much growth is it willing to sacrifice to tame inflation? These questions are considered in two recent working papers from the RBI. Both these papers show that, above a certain level, inflation starts to hurt growth and there’s no trade-off between inflation and growth—the only objective, at these high levels, would then be to reduce inflation, without bothering about growth. That’s exactly what the RBI has done. The paper by Sitikantha Pattanaik and G.V. Nadhanael of the Department of Economic and Policy Research at the RBI gives a number of reasons why high inflation hurts growth. The authors say that inflation has an adverse impact on private investment, because price signals become distorted, leading to misallocation of resources. Higher inflation could make domestic firms less competitive relative to imports and could hurt exports. Input costs, including wages could go up and would hurt profits, thus restraining entrepreneurs from investing. Inflation could lead to lower demand, affecting growth. The researchers explain that the Philips curve, which shows the relationship between the inflation and unemployment rates, will start to bend backwards above a certain point, which means that higher inflation would lead to more unemployment. The authors quote deputy governor Subir Gokarn, “Below the threshold, workers and producers do not raise their wage and price demands very often because the impact of inflation is not too visible. By contrast, they respond very quickly above the threshold because they are worried that high inflation will rapidly erode their living standards or profitability. In short, when inflation is high, the behaviour of workers and producers increases the likelihood that it will increase further.” The authors cite three trends in India that show inflation is well above the threshold: first, inflationary expectations, seen from RBI surveys, are above the headline inflation rates; second, the pace of increase in wages has also been much more than inflation and third, corporate finance data suggest that growth in staff costs in recent quarters have been higher than the rate of growth in earnings. So what is the threshold level of inflation in India? The researchers use three methods to arrive at this cut-off point, which they put at a wholesale price inflation rate of 6%. A rate of WPI (Wholesale Price Index) inflation above 6%, therefore, hurts growth in India. The second paper also empirically estimates the threshold level of inflation for India. Its conclusion: “For WPI-inflation up to 5.5%, there is positive impact on growth, which is statistically significant. The relationship reverses when WPI-inflation is beyond 5.5% and inflation effect on growth turns negative.” The Reserve Bank has indicated that it expects the WPI inflation rate to be 7% by the end of March 2012. But that is much higher than the threshold rates worked out by both these papers. Does it mean then, contrary to market expectations, the central bank will continue to have a tight monetary policy beyond March 2012?

Mint

Informal meet on inflation today

As inflation has remained above nine per cent throughout this calendar year till September, Prime Minister Manmohan Singh has called an informal meeting tomorrow to take stock of the situation. An official termed the meeting as informal, in-house consultations. The meeting will be attended by Planning Commission deputy chairman Montek Singh Ahluwalia, Prime Minister’s Economic Advisory Council (PMEAC) chairman C Rangarajan and chief economic advisor Kaushik Basu. Wholesale price index (WPI)-based inflation stood at 9.72 per cent in September, even though it came down slightly from 9.78 per cent in the previous month. “The latest WPI inflation figure is not encouraging. The decline is very low... It (inflation) is still very high. The only encouraging point is it has not moved up,” finance minister Pranab Mukherjee said in Paris, the venue of the G20 finance ministers’ and central bankers’ meeting. Twelve rates hike by the Reserve Bank since March 2010 could not bring inflation down much. Many experts believe the RBI might not pause its tight monetary stance.

BS

No moderation in inflation for RBI to change policy : Rangarajan

NEW DELHI: Citing the near double-digit inflation, the Prime Minister's Economic Advisory Council (PMEAC) today said there is no sign of moderation in the rate of price rise to prompt the Reserve Bank to change its policy of monetary tightening. "It is not a very comfortable situation. For the monetary policy stance to change, inflation has to come down and show signs of definite decline. But that kind of an indication has not come...," PMEAC Chairman C Rangarajan told a private news channel. His comments followed the release of data which showed that the overall inflation remained close to the double-digit mark, at 9.72 per cent, in September on account of costlier food products, fuel and manufactured goods. Inflation, as measured by the Wholesale Price Index (WPI), stood at 9.78 per cent in August. For 10 months in a row, inflation has remained above the 9 per cent mark. According to experts, the elevated inflation level is likely to put pressure on RBI to continue with its policy of monetary tightening. The apex bank has hiked key policy rates 12 times since March 2010 to tame inflation. The bank's next monetary policy review is scheduled for October 25. During the central bank's meeting at Jaipur this week, RBI Governor D Subbarao said the rate hikes have affected industrial activities, but asserted that inflation continues to remain above the comfort level of around 5 per cent.  He also said that interest rates would come down only if inflation eased. Meanwhile, in its Economic Outlook for 2011-12, the PMEAC had said that inflation is likely to remain elevated till the third quarter of the fiscal because of high prices globally.

TOI

RBI hikes Paypal payments ceiling to USD 3,000 per transaction

New Delhi : Users of online payments gateway PayPal in the country can now receive up to USD 3,000 per export-related transaction in their accounts, with the RBI raising this limit from USD 500 per transaction earlier. The increase in the limit is with immediate effect, but merchants using Paypal accounts to receive funds would need to add their PAN (Permanent Account Number) and bank account details to comply with the RBI guidelines, PayPal said today. The step will help the Indian SMEs and consumers who use Paypal to receive their payments. In addition, the move will support PayPal and the budding India business of its parent company eBay, an online marketplace. "This is a huge step forward for PayPal and for Indian SMEs, who can grow their export business through e-commerce by tapping our 100 million active users in 190 markets across the globe, right from the US to the UK to Australia," PayPal India Country Manager Mayur Patel said in a statement. "We are thrilled about the increase in transaction limit and would like to thank the RBI for understanding and being supportive of the needs of SMEs who wish to expand their business through cross-border trade," Patel added. eBay, which claims to have an online community of 2.5 million in India, has about 12,800 registered merchants in the country, who consider selling through eBay either their primary or secondary source of income.

MSN News

India Inc chooses CPs over banks for short-term funds

A series of rate hikes by the Reserve Bank of India over the last 18 months has forced India Inc to rely more on commercial papers (CP) than banks for short term funds. In the first five months of 2011-12 (April to August), the volume of CP issuances has risen 83 per cent over that in the same period last year. CPs are unsecured debt instruments issued by companies to meet their short term fund requirement. Their maturity period is less than a year. According to the data sourced from credit rating agency CRISIL, CP issuances between April and August 2011 stood at Rs 2.31 lakh crore compared with Rs 1.26 lakh crore during the first five months of the previous year. The outstanding CP amount stood at Rs 1.49 lakh crore at the end of August 2011. Bankers said most large corporates were not approaching them for their short-term funding needs. “Almost all big corporates are raising funds through CPs since we can't lend them below the base rate,” said a senior banker with the State Bank of India, the country's largest bank.

IE

Stagflation ahead?

Not unexpectedly, WPI inflation at 9.72% was not much below August’s 9.78%. So, going by the statements by various RBI officials, we may see yet another rate hike by RBI later this month. Although RBI is of the view that the demand situation doesn’t show a suitable contraction, most indicators—whether the services or the manufacturing PMI and investment numbers—are screaming red. In which case, this is one of the most important decisions for the central bank—getting a rate hike decision right at this juncture will probably mean the difference between sustainable growth and stagflation. Much of the demand RBI is seeing at the moment is part of legacy momentum—like inflation—and will start slowing further as prospects of jobs keep declining. Not surprisingly, the Prime Minister has called for a meeting of his crack team of economists—C Rangarajan, Montek Singh Ahluwalia and Kaushik Basu—later today. A few points need reiteration, even if it is for the nth time. One, if food inflation is driven by sharp hikes in procurement prices, there is little monetary policy can do to control this—perhaps a large import plan should have been put in place months ago. Two, with the global crisis getting worse, it doesn’t seem likely that commodity prices will recover—so, despite the depreciation of the rupee, this will start impacting Indian inflation. Three, as many point out, not just our columnist Surjit Bhalla today, inflation has been falling for several months on a seasonally adjusted basis (see Goldman Sachs’ post-WPI data flash)—on a quarter-on-quarter basis, Sachs’ (saar) headline inflation has fallen from 11.3% in April to 6.4% in September, and non-food inflation from 11.3% to 4.8%. It is true that seasonally adjusted data differs from one analyst to another, depending on assumptions made, but the trend looks by and large the same—perhaps it would be a good idea if RBI started putting out its seasonally adjusted numbers since it does do this exercise on a regular basis. The other question RBI needs to ponder over is whether a wage-price spiral (based on its understanding that inflation’s back is not broken) is a more potent threat at this juncture or whether a slowdown-induced fiscal slippage-foreign-liquidity one is more of a danger. Right now, the latter seems more critical.

FE

Stubborn inflation: Here's why economists are getting edgy

September inflation came in at an ugly 9.7%. The only relief was that the number was not uglier than expected. Economists note that the prices of non-food manufactured products have risen more modestly that they did in previous months. Nevertheless a rate hike in the next RBI policy meeting on October 25 seems imminent. CNBC-TV18's Latha Venkatesh and Gopika Gopakumar report. The big push comes from food prices, which rose by 1.4% over their August levels; primary articles which rose by 1.3% month-on-month and fuel prices which rose by 0.84%. The positive was that manufactured products rose by only 0.2% over August, and excluding food products, the manufacturing index was up only 0.1%. Yet policy makers worry that the trajectory is still a rising one and the headline inflation is too high for too long. C Rangarajan, Chairman, PMEAC said, "The number is not very encouraging. The inflation rate more or less remains at the same level as the previous month and therefore, it is not a very comfortable situation. It's not an easy decision to make because there are no definite signs of decline from the inflation picture. So long as the headline inflation remains so high, well above 9%, I would think monetary policy has still a role to play in containing demand pressures." Economists also worry that given the rise in rail freights and electricity tariffs the inflation levels in October and November may also remain well above 9%. Gaurav Kapur Senior Economist, RBS said, “We are expecting headline inflation to hover over 9% for the next couple of months at least. In October-November, you would most likely see numbers hovering above 9%. December onwards, when the base effect comes into play and comes into play very significantly, you will see numbers coming off.”  There is a hope that with the harvest coming into the market in October, global commodity prices falling and Indian growth faltering we may see a fall in the momentum of inflation. But not every one is sure. Post October 25, the RBI may continued to be faced with the cruel dilemma of falling growth and high inflation.

Moneycontrol

Another Rate Hike?

The RBI, which will meet on Oct 25 to review policy, has raised interest rates a dozen times since mid-March 2010 to combat stubbornly high inflation and is expected to tighten them further one last time this year before a pause...............

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Inflation above comfort level industrial production concern too: RBI

“We have to weigh growth, inflation and factors affecting the economy of our country,” 

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Newsibition at Jaipur



Reserve Bank of India (RBI) Governor Dr D Subbarao inaugurates 'Newsibition' (news-cum-exhibition) at the Jawahar Kala Kendra, Jaipur on October 12, 2011

India Post's ATM plans hit RBI hurdle

India Post's plan to set up automated teller machines (ATMs) in its post offices may fail to impress the banking regulator. India Post is in talks with the Reserve Bank of India (RBI) to set up ATMs. However, since according to norms, only banks are allowed to set up ATMs, the central bank is not in favour of allowing India Post to set up ATMs. According to sources in the banking industry, if India Post set up ATMs, they should fall under the RBI's purview for regulation purposes. India Post has proposed to set up a subsidiary, Post Bank of India, for providing banking facilities. It has also identified nearly 1,000 post offices, out of its 1.5 lakh post offices, where the ATMs would be initially set up. The sources said though RBI is uncomfortable with the idea of India Post setting up ATMs, it is yet to formally communicate its apprehensions to the department of post. To increase efficiency and profitability, the department of post had planned to introduce banking solutions and set up ATMs and debit cards for its customers. It also plans to introduce core banking solution by 2012, and has initiated the process of modernising information technology (IT) during the current financial year. The cost of the IT modernisation project is estimated at around Rs 2,000 crore, which includes an integrated, modular software solution, covering postal operations, banking and insurance services. The department of post also has plans to tie up with banks to help its customers use their India Post debit cards at ATM machines. It has also submitted a plan to the finance ministry for approval. The department aims to offer banking services through India Post in unbanked rural areas that lack formal financing facilities. India Post already offers financial services, including post office savings schemes, postal life insurance, pension payments and money transfer services.

BS

Bill to help banks recover dues to be introduced in winter session

NEW DELHI: The government Thursday approved the introduction of a bill in the winter session of parliament, which will help banks improve their debt recovery process and enhance credit to both corporate and retail customers. The enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill 2011, will also reduce the cost of funds for banks and their customers and reduce the level of non-performing assets, said an official note. "The proposed amendments would enable banks to improve their operational efficiency, deploy more funds for credit disbursement to retail investors, home loan borrowers, etc. without fearing for recovery, thus bringing about equity," said the note. "Further, mandatory registration of subsisting security interest (equitable mortgages) would promote innovation in credit information," it added. According to the Indian arm of global ratings major Standard and Poor's, Crisil, slowing economic growth and increases in equated monthly installments because of subsequent rate hikes by the Reserve Bank of India (RBI) would increase banks' non- performing assets (NPAs). The RBI has asked banks to focus on recovery and follow a stringent credit appraisal procedure. Although laws exist to help banks recover dues from defaulters, banks and financial institutions have been facing numerous problems in recovery of loans because of delays in disposal of recovery proceedings. India had enforced a Banks and Financial Institutions act in 1993 and followed it up with the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest act in 2002 to help banks reduce NPAs.

ET

"New Rs 2, Rs 5 coins out to confuse you" (13/10/2011) - Eyeview

The metal content and design/s of coins rests entirely with the GOI. The RBI as a distribution agent for coins, however, stands exposed to public criticism for none of its fault.

Kishore Savkur, Ex-CGM, DCM / Ex-Managing Director BRBNMPL (via e-mail)

RBI taking steps to check counterfeit currency notes in Rajasthan

Jaipur: Chances of getting a counterfeit currency note while withdrawing money from ATM will get reduced soon. The Reserve Bank of India has been taking special steps to check the counterfeit notes being deposited in automatic teller machines (ATM) of Rajasthan. RBI governor D Subbarao has informed that the banks where more than Rs 50 lakh are being deposited on a daily basis will soon have the note sorting machine that will identify the fake notes and keep a check on it. There have been many cases in the state about customers getting fake currency notes while withdrawing cash from ATMs, the RBI Governor said. "Rajasthan, being a border state of the country, is very important that attention is paid on checking fake currency," and informed that thorough checking procedures are being implemented in the state to verify the currency note before they are being deposited into the ATMs by the banks. "We are taking special care for the upcoming festivals and every note that is being deposited by the bank into ATM has to pass the test of verification before it is deposited; we are sure by such measures we will be able to minimise the chances of fake currency in the state," said Subbarao. He informed that every citizen must intimate the bank if they, by any chance, get fake currency notes and said that banks are under obligation to inform the police about this. However many times due to work pressure, police are not able to take action on such cases. But now for working on such cases, special arrangements are being made, he added. "We have discussed the matter with the Union home minister about the need for nodal police stations that will work to put a check on fake currency in the state," said Subbarao, while giving details about the steps taken to check the menace of fake currency notes in Rajasthan. 

Daily Bhaskar

When currency note ceases to be legal tender, no money is refunded against it

Keep in mind that you do not have a right to recover the value of any note which is lost, stolen or mutilated.....

Read..... 

RBIspeak

Apropos Rajeev Malik’s article “Sudoku for RBI” (October 11), I do not agree with the author when he says “…when it comes to central banks, effective but less frequent communication is always better than more frequent but less effective communication.” The frequency and the text of policy approaches and interpretations of the central bank depend on the frequency of happenings in the economy and the audience addressed, respectively. Thus, in the context of the European crisis, we read almost every day the announcements of several central bank authorities in the euro area on the latest turn of events.

RBI’s communication policy has improved a lot over the years, avoiding jargon as far as possible. Only a small proportion of its statements in the form of press releases, the speeches of the executives and so on are of interest to the aam admi. He is concerned about inflation and the action taken by RBI to control it as also the credit policy. The rest of the material is technical and meant for experts, market men, bankers, government officials, et al. So far, I have seen in the editorials of the financial press only appreciation of the clarity in RBI statements. This is in contrast to Greenspanspeak that was noted for “constructive ambiguity”. Once Greenspan, the then chairman of the US Fed, told a Congressional Committee meeting: “I guess I should warn you, if I turn out to be particularly clear, you’ve probably misunderstood what I’ve said.”

A Seshan, Mumbai (BS)

IIFCL becomes non-banking finance firm

New Delhi  : The Reserve Bank of India (RBI) will now regulate India Infrastructure Finance Company Ltd (IIFCL). The Union Cabinet on Thursday approved a proposal in this regard. Announcing the decision, the Information and Broadcasting Minister, Ms Ambika Soni, said, “IIFCL will be brought under the regulatory oversight of RBI by registering it as an non-banking finance company — Infrastructure Finance Company ( NBFC-IFC).”  The decision will increase the authorised capital of IIFCL to Rs 5,000 crore from Rs 2,000 crore, with a proviso that it may be further increased to Rs 8,000 crore with the approval of the Finance Minister, she added. IIFCL, which started operating from April 2006, provides long-term debt for infrastructure projects. After reviewing its performance, the Economic Advisory Council to the Prime Minister had advised that it should be placed under the regulatory oversight of the RBI as a financial institution, such as Nabard, SIDBI, Exim Bank or National Housing Bank. According to a Government statement, bringing IIFCL under the regulatory oversight of RBI with clearly defined prudential norms would be financially prudent and would safeguard the long-term sustainability of the institution. The increase in authorised capital would enable IIFCL to expand its financial assistance to the infrastructure sector and meet the needs of increased capital adequacy ratio, it added.

HBL

RBI, JK Bank organise banking awareness programme

Srinagar, Oct 13: To make the students and teachers aware about banking, the Reserve Bank of India in collaboration with J&K Bank and Lead Bank Office Budgam organized an awareness programme at Sheikh-ul-Alam Hall Budgam today. Chief Education Officer Budgam Abdul Rashid Mir was the Chief Guest on the occasion. The programme was also attended by R.K. Meena, Assistant General Manager RBI, Viqar Nazki, District Manager J&K Bank Budgam, Muhammad Yaqoob, District Manager Lead Bank office Budgam along with other representatives of some banks and financial institutions. The programme saw presence of teachers and students of Commerce and Management streams from various institutions besides cluster heads of District Budgam. Meena dwelt at length on banking, fake note currency identification, ATM Operations, financial inclusion, fake lotteries, impact of recession, deficit finance, monetary and fiscal policies, role and functions of non Banking Finance companies (NBFC), Bank’s ombudsman etc. A quiz was also held and various participating students were given out gifts by RBI officials. Cluster head/ District manager J&K Bank Budgam on the occasion said that J&K Bank is committed to serve the society as it has done in the past.

Greater Kashmir

JK Bank, RBI conduct financial literacy programme

The Jammu and Kashmir Bank in association with the Reserve Bank of India (RBI) organized a Financial Literacy cum Awareness Programme for personnel of 79 BN of Central Reserve Police Force stationed at Doordarshan Kendra, Srinagar. The participants were informed about the role and responsibilities of RBI and its significance to the common citizen of the country. On the completion of the 75 years of RBI last year, it was decided to reach out to people in every nook and corner of the country to create awareness and literacy about banking system, roles and responsibilities of the banks, importance of the system and how it touches the lives of the common people. On the occasion, information about banking system, banking products, roles and responsibilities of banks, customer grievance redressal mechanism in the banks, technology based banking services and the government schemes implemented through banks was disseminated. The participants were also cautioned about the operations of some fly-by-night operators, cheap fund transfer schemes, fake lottery offers and unscrupulous elements who lure the people and dupe them of their hard earned money. Salient features of the genuine Currency Notes were also discussed on the occasion. On this occasion, a note exchange counter in collaboration with J&K Bank Nallamar B/U was arranged for the benefit of the participants. The programme was followed by an interactive session wherein the doubts raised by the personnel on various aspects of the banking activities were clarified by the officers from RBI.

http://www.kashmirdispatch.com/more-news/13106386-jk-bank-rbi-conduct-financial-literacy-programme.htm

RBI Central Board reviews economic scenario

Ahead of the monetary policy review later this month, the Central Board of Reserve Bank on Thursday met in Jaipur to discuss the key economic and financial developments. The meeting was chaired by RBI Governor D. Subbarao. The Central Board of Directors meets at least once every quarter. “The meeting reviewed key economic, monetary and financial developments,” RBI said in a statement. The governor and deputy governors also briefed the new Board members on the objective and functions of the various departments of the apex bank. Newly nominated Directors to the Board Y.H. Malegam, Anil Kakodkar, Kiran Karnik, Dipankar Gupta, G.M. Rao, Ela Bhatt and Indira Rajaraman were also present at the meeting. Against the backdrop of high inflation and sluggish industrial growth, the monetary policy review is keenly awaited. The Central Bank has been continuously hiking interest rates since March 2010 to tame high inflation. The quarterly review of the credit policy is due on October 25. On Wednesday, the RBI had indicated that it may not lower the key interest rates as inflation was still high. “...We need to bring inflation down in order to bring interest rates down,” Mr. Subbarao had said. The overall inflation was at a 13-month high of 9.8 per cent in August.

HBL

RBI Governor praises Raj Govt's performance

Reserve Bank of India (RBI) Governor D Subbarao today hailed Rajasthan Govt's performance in financial/economic sector. Addressing a news conference here this afternoon after the Bank's Central Board s meeting, Mr Subbarao said Rajasthan Government had done well. However, he added a note of caution saying that much more and much better was needed to be achieved. He also commended the performance of banks in the state for attaining a highest deposit credit ratio of 94 per cent, however, pointed out that three of the 33 district showed credit ratio as low and 40 to 50 per cent. Mr Subbarao also demonstrated sensitive approach in respect of the state government s demand of maintaining loan/fund flow for the power companies and said he has requested banks to consider the request swiftly but on merits. The RBI does not intervene in such matters, we have not intervened in any such matter nor would do so in this matter too , he said. However, he added that since the RBI was responsible to respond to the concern/demands raised by a state government, hence,banks were asked to be considerate to the loan proposals from the power companies provided the proposals were liquidity supported by the government and clear the viability test. The Governor also appreciated the state government s demand for ensuring adequate finances, under priority social sector funding, for people of minority communities. He said as many as 23 minorities dominated blocks were identified in different districts and credit counselling camps would be held in these block by the end of January next for ensuring bank loans to this stratum of society.

http://news.webindia123.com/news/Articles/India/20111013/1850196.html 

RBI Governor Duvvuri Subbarao says no rate hike pause for now and signals priority is to check price rise

JAIPUR: Reserve Bank of India Governor Duvvuri Subbarao has dashed hopes that he may pause from raising interest rates again on October 25 as he reiterated his commitment to tame prices even if it hurts growth. "Had we not raised the rates, how much would have been the inflation? Despite so much tightening, inflation runs as high as 9.8% as of August," Subbarao told reporters after RBI's board meet in the Pink City. "We have to weigh growth, inflation and external factors influencing the economy."  Indian corporates and some in the government have been lobbying for a pause in interest rate increases since higher cost of funds is hurting economic expansion. Some cite actions by other central banks in the region which cut rates due to rising international instability.   But policymakers at RBI believe that in the absence of sufficient action from the government to improve supplies, demand should be curbed by making money more expensive. To make matters worse, the government said it would borrow Rs 53,000 crore more than budgeted in February that may put pressure on rates. The RBI has raised the key policy rate - the repo rate, at which it lends to banks against securities, 12 times since March 2010 to tame stubborn price pressures but with little success as headline inflation has stayed above 9% for more than a year. The RBI's tolerance level is around 4-4.5% and aims to bring it down to 3% in the long term in line with international levels.  September inflation numbers will be released on Friday, which will be a key input for policy review on October 25. Though market consensus is for another 25 basis points increase in repo rate, economists at a recent pre-policy meeting with the RBI have called for a pause in rate hikes amid concerns over slowdown in the global economy and a possible spillover on the domestic front.  On Thursday, Subbarao admitted that the series of rate increases over a year-and-a-half has "decelerated growth" over the past three quarters. But he is focused on the poor. "In calibrating interest rates, the RBI takes into account the need of the industry, which wants interest rates low as well as the need of the poor, who want low inflation," Subbarao was quoted as saying by Bloomberg News. "We have had to raise rates to combat inflation."

ON RUPEE

Subbarao said the slide in the rupee in past months has pushed up import costs, expressing RBI's growing concern with the depreciation in the local currency. "There has been a dip in global prices of crude from July 1 to October 1, 2011. But due to depreciation, the net rupee price of oil has gone up by 3%," he said, without giving any indication of its RBI's interference in tackling the rupee fall. The rupee has declined 5.9% in September and is down more than 10.5% from its 2011 peak of 43.86 reached in late July.

ET

RBI's tough choice: High inflation or high growth?

Weekly inflation data released on Thursday showed a slight decline with primary article inflation easing to 10.6 per cent and food article inflation easing to 9.32 per cent. However on a week on week basis, inflation continues to rise and monthly inflation due out on Friday is also expected to be close to 9.7 per cent. In light of persistent inflationary pressures, the RBI governor on Thursday indicated that despite the deceleration in growth, interest rate hikes can’t be ruled out. The key question that the common man and even the RBI governor may have been thinking about is when will inflation come down and when will the burden of high interest rates start to ease. Mr Subbarao on Thursday again acknowledged that despite 12 successive rate hikes inflation remains above the RBI's comfort zone. But he added that the RBI is sensitive to the impact high interest rates are having on growth. "We are sensitive to growth but inflation remains above the RBI's comfort levels," he said. What's complicating matters for the RBI is the weakness in the India rupee. A weaker rupee makes imported goods specially imported more expensive adding to inflation pressures. The RBI estimates that the rupee weakness has led to an effect increase of 3 per cent in the cost of oil for India – a fact that will add to inflation pressures in the economy. High inflation, high interest rates and a slowing economy are also creating pressures for the banking sector with fears of a buildup in bad assets. While NPAs particularly in PSU banks are starting to rise, the RBI seems comfortable that there are no systemic risks yet. Nevertheless, the RBI says it will conduct a fresh round of stress tests for banks before the end of the year. "We are sensitive to growth but inflation remains above the RBI's comfort levels," the RBI Governor said. As the RBI team heads back to Mumbai the focus shifts to the mid quarter review of credit policy due on October 25. With inflation remaining high, economy slowing down and banks feeling the pressure, the decision on whether to hike rates or not will be tougher than ever before.

NDTV Profit

Rules vs discretion in central banking

Discretionary policies produce suboptimal results as they deny people the benefits of ‘policy commitments’...........

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IMF backs RBI's monetary tightening policy ahead of policy review

NEW DELHI: The International Monetary Fund has endorsed the current monetary tightening in India ahead of the policy review by the Reserve Bank of India on October 25, providing a counter to the rising chorus of demand for a pause in interest rate hikes......

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“Measures of Core Inflation in India – An Empirical Evaluation by Janak Raj and Sangita Misra”

The Reserve Bank of India today placed a Working Paper titled “Measures of Core Inflation in India – An Empirical Evaluation by Janak Raj and Sangita Misra” in the web site. The study is relevant in the Indian context as supply side shocks have led to large variations in relative prices and the generally accepted measure of inflation i.e. ‘headline inflation’ seems for policy purpose. The authors have discussed various techniques employed to measure core inflation. They have argued that the exclusion-based core inflation is the preferred choice of policymakers and hence accordingly measure core inflation for India. According to them non-food manufacturing, which the Reserve Bank uses as a measure of demand side pressures, is the best representative of a core measure of inflation. However, given that the weightage of non-food manufacturing components accounts for only 55 per cent as compared with a larger share of 80 per cent in most of the countries, inflation management is more challenging in India than in other countries. The Reserve Bank of India introduced in April this year, a ‘RBI Working Paper Series’ (RBI - WP) to provide a platform to the Reserve Bank Staff for presenting their research studies as well as to receive feedback from informed researchers. The views expressed in all the research publications of the Reserve Bank, including the RBI Working Papers Series, do not necessarily reflect the views of the Reserve Bank and as such should not be reported as representing the views of the Reserve Bank of India. Feedback, if any, on the papers could be addressed to the respective authors of the research studies.

RBI opposes $20 billion wealth fund from forex reserves

The Reserve Bank of India (RBI) has opposed the creation of a $20 billion sovereign wealth fund, for acquisition of energy assets overseas, out of foreign exchange reserves and wants the government to create the corpus for it from the Budget.......

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With govt and SBI doing its job, RBI can go easy on rate hikes

..........The Reserve Bank of India (RBI) does not have to tighten policy rates further in its quest to bring down inflationary expectations. The government and the State Bank of India (SBI) are helping bring them down on behalf of the central bank............

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IOB looking at opening second branch in Bangkok

Indian Overseas Bank plans to open a new branch in Bangkok, its Chairman and Managing Director, Mr M. Narendra, has said. “We have applied to the RBI for one more branch in Bangkok. They (Thailand authorities) have agreed to it. This will be the second branch for IOB in Thailand. We are the only Indian bank to have a branch presence in Bangkok,” Mr Narendra told Business Line.

HBL

Loans under Kisan Credit Cards to be treated as direct farm lending

Mumbai : Banks offering credit to farmers under the Kisan Credit Card would be treated as direct finance for agriculture under priority sector lending, the Reserve Bank of India clarified in a notification issued on Thursday. Credit under the KCC is primarily for agricultural purposes, the RBI said.  This will offer banks one more avenue to reach the target for direct lending to agriculture, which is 14.5 per cent of total advances. The total target for agri lending is 18 per cent of total advances. According to the RBI regulations, working capital and term loans for financing production and investment requirements for agriculture and allied activities are treated as direct finance to agriculture under priority sector.

HBL

Banks, financial institutions to get more teeth for loan recovery

Tough times are ahead for home loan and corporate defaulters. The Government has decided to introduce the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2001, during the Winter Session of Parliament............

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RBI’s choice in a time of confusion

Were it a simple matter of taming inflation, the central bank’s choice would be straight. With a sinking global economy and tepid growth, it isn’t.........

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Subbarao Hints at More Rate Hikes Till Inflation is Tamed




Inflation is hurting the poor, says RBI Governor Subbarao; A moderation in growth will help address inflation, says his deputy Gokarn



 The Reserve Bank of India has said the central bank needs to control inflation before it can lower interest rates, hinting that it may hesitate to pause on raising rates although industry and Indian lenders have pitched for a halt to monetary tightening. Inflation is hurting the poor, RBI governor D Subbarao said in Jaipur on Wednesday. “(We) need to tame inflation before bringing down rates,” he said. Subbarao said rising inflation was a concern and that controlling inflation was the main focus of the monetary policy. The central bank will review its monetary policy on October 25. Subbarao’s deputy Subir Gokarn too echoed similar views earlier in the day saying a further rate hike would hinge on the inflation scenario. “We raise rates not because it is an end in itself. To the extent, we see the problem persisting, then there is a basis to raise rates but if we see the problem is starting to ease off, then that would provide the basis for a change,” he told students in Jaipur. Headline inflation which was close to 10% in August is likely to come down by the end of this fiscal, Subbarao said.  The Reserve Bank of India has raised interest rates 12 times since March 2010 to tame inflation but with little success as it has remained over 9% for over a year. With factory output growth also slowing down, industry and bankers have made out a case to the central bank to put an end to rate tightening. On its part, the central bank wants the government to address supply-side issues to curb prices.  Subbarao said the Indian economy would expand between 7.5% and 8%. “Despite having some adverse impact of dismal global economic conditions, the economy of India is strong. The growth is likely to be between 7.5% and 8%,” he said at a meeting of the Rajasthan Chamber of Commerce in Jaipur.  There are already signs of a slowdown in growth. Factory output in August rose marginally to 4.1% YoY well below the consensus estimate of 4.7%. In sequential terms, industrial production contracted 0.3% monthon-month (seasonally adjusted) following the 1.1% month-on-month contraction in July. On a 3m/3m (seasonally adjusted) basis, growth declined 5.1% 3m/3m (annualised rates) against 5.9% in July.  The Reserve Bank of India expects that a moderation in growth could help address inflation. “Controlling inflation remains one of the most important items on the agenda of the central bank. While oil and food prices are putting pressure on inflation, a moderation in growth will help ease inflation,” said Gokarn.  Subbarao said RBI is conscious of the need to bring down interest rates to help the economy grow.

ET

RBI Governor Subbarao inaugurates newsibition in Jaipur

Jaipur: Reserve Bank of India (RBI) Governor Dr D Subbarao today inaugurated a newsibition (news-cum-exhibition) at the Jawahar Kala Kendra here with the motive to enlighten people about development of central banking in India and facilitate them to have a general understanding about the processes of economic development.  Mr Subbarao who arrived here last evening on a three-day visit, will preside over meeting of the Central Board of Directors of the bank here tomorrow. “The meeting which is to be held in the Pink City after a gap of seven years, would be attended by four Deputy Governors and 12 directors of the bank to provide general superintendence and direction to the affairs-policy of the bank”, a RBI Spokesman said here. “It was mandatory for the bank to hold six meetings of board of directors every year but out of the convention the bank holds seven meeting in a year”, the spokesman said. 

http://www.newkerala.com/news/2011/worldnews-85654.html 

New Rs 2, Rs 5 coins out to confuse you

THIRUVANANTHAPURAM: Be more conscious about your money. Chances are high that you give a Rs 2 or a Rs 5 coin instead of Re 1. The newly-released Rs 2 and Rs 5 coins will confuse not only the visually challenged, but also the general public. The size of the new Rs 2 is exactly similar to the existing Re 1 coin. The stainless steel coins have round edges. The new Rs 2 carries the rupee symbol and ‘2’. This is the only difference with the Re 1 coin. Those who see the other side would mistake Rs 2 for Re 1 and vice versa. The colour of Rs 5 will help, but the size would deceive the visually challenged. The new Rs 5 is a bit larger than a 50 paise coin and a bit smaller than the Re 1 coin. The size and round edges will show a resemblance to the Re 1 coin, but its golden colour will catch one’s attention. However, chances are high for the visually challenged to confuse it with a 50 paise or Re 1. Visually challenged people had protested in 2006 when a Rs 2 coin was introduced with striking resemblance to the Re 1 coin. With the introduction of more such coins, the RBI is likely to face the wrath of the visually challenged as well as the general public.

IBN Live

RBI serious on problem of fake currency & Banks: D Subbarao

The Governor of Reserve Bank of India D Subbarao said that RBI is serious about problem of fake currency and Banks and Police have been directed to take strict action in such cases and to ensure prevention of fake currency. Addressing a meeting of Rajasthan Chamber of Commerce in Jaipur today Mr Subbarao said that RBI has instructed banks to ensure clean notes also.He said that plastic currency will be introduced in the country and it will be started with 10 Rs note.

APN News

RBI allows UCBs to act as money changers

Mumbai: The Reserve Bank on Wednesday said the Urban Cooperative Banks (UCBs) would henceforth be eligible to act as full-fledged money changers. In a notification, the apex bank said that UCBs "would be considered for authorisation as Authorised Dealer Category-I/ Authorised Dealer Category-II" as they fulfil eligibility norms with regard to money changing. Authorised banks and Full Fledged Money Changers are allowed to provide facility for reconversion of Indian Rupees to the extent of Rs 50,000 to foreign tourists on receipt of valid passport and VISA, ticket confirmed for departure within 7 days and original ATM slip.

Zee News

RBI guv Subbarao stresses on financial inclusion in state

Jaipur: The Reserve Bank of India governor D Subbarao said banks in Rajasthan will ensure that all 3,883 identified villages with total population of more than 2,000 are meaningfully covered in the first phase of financial inclusion plan by March 2012. Attending a special State Level Bankers’ Committee (SLBC) meeting here on Wednesday, he said that banks will draw up specific strategies to improve the credit-deposit ratio in three districts, namely, Dungarpur, Rajsamand and Sirohi which have low CD ratio. Banks will set up at least one financial literacy and credit counselling centre in the minority blocks in the state by the end of January 2012, he added.  Earlier in the day he inaugurated a newsibition (newscum-exhibition) at the Jawahar Kala Kendra aimed at enlightening people about development of central banking in India. Today, he is scheduled to preside over meeting of the central board of directors of the apex bank here on Thursday. The meeting will be held in the Pink City after a gap of seven years.

TOI

RBI hints 2nd quarter review may not lower policy rates

Ahead of second quarter review of monetary policy on October 25, RBI indicated that it may not lower the key interest rates as inflation is still high. "...We need to bring inflation down in order to bring interest rates down," RBI Governor D Subbarao said here. He further said that the central bank is conscious of the need to bring down interest rates to boost economy, but it might take time. RBI is for a low interest-rate regime but that will take time, he said. The Governor expressed concern over the rising inflation, but said it could be controlled by the end of this year. The Reserve Bank of India (RBI) is scheduled to hold its quarterly review of credit policy on October 25. However, it is unlikely that the RBI will pause its rate hike strategy on account of the slowdown in industrial output growth. The RBI has already hiked rates 12 times since March, 2010, to control inflation, which stood at 9.8 per cent in August. During August, the Index of Industrial Production (IIP) declined to 4.1 per cent against 4.5% recorded in the same month a year ago. Factory output stood at 5.6% in the April-August period, as against 8.7% in the same period last year, according to official data released today. Addressing members of Rajasthan Chamber of Commerce, Subbarao said the economic growth will remain between 7.5% and 8%. Earlier during the day at special State Level Bankers' Committee (SLBC) meeting of Rajasthan, the Governor said financial inclusion needs to be meaningful. Banks in Rajasthan will ensure that all 3,883 identified villages with total population of more than 2,000 are meaningfully covered in the first phase of financial inclusion plan by March 2012, RBI said in a statement. It said banks will draw up specific strategies to improve the credit-deposit ratio in three districts of Rajasthan, namely, Dungarpur, Rajsamand and Sirohi which have low CD ratio. State government of Rajasthan will release its share of Rs 39 crore towards recapitalisation of five regional rural banks in Rajasthan, it said. The Governor and other senior officials of RBI are in Jaipur to attend a meeting of the Reserve Bank's Central Board of Directors being held in Jaipur tomorrow. 

Moneycontrol

RBI hints mood change on lower rates

Jaipur : The Reserve Bank of India (RBI) is conscious of the need to bring down interest rates to help the economy grow, said RBI governor D Subbarao at an industry event. Earlier in the day, deputy governor Subir Gokarn had said that the RBI will change its monetary policy stance only if inflation eases and further rate increases will depend on the price rise situation. “It (further rate hike) depends on the inflation situation,” said Gokarn. “We raise rates not because it is an end in itself. To the extent we see the problem persisting, then there is a basis to raise rates but if we see the problem is starting to ease off, then that would provide the basis for a change.” Gokarn also said that higher income levels were increasing the tolerance for higher inflation.

HT

RBI may change policy stance if inflation eases, says Gokarn

Jaipur: The Reserve Bank of India (RBI) will change its monetary policy stance only if inflation eases and further rate increases will depend on the price rise situation, Subir Gokarn, deputy governor at the central bank, said on Wednesday. “It (further rate hike) depends on the inflation situation,” Subir Gokarn said while addressing students in Jaipur. “We raise rates not because it is an end in itself. To the extent we see the problem persisting, then there is a basis to raise rates but if we see the problem is starting to ease off, then that would provide the basis for a change.” India’s food and fuel inflation accelerated in mid September, indicating persistently high inflationary pressures in the economy. Data for September, due around 12 noon on Friday, is likely to show the wholesale price index probably rose 9.70 percent a year earlier, easing slightly from 9.78 percent in August. However, inflation continues to stay at nearly twice that of the RBI’s comfort levels, raising the possibility of another rate increase by the Reserve Bank of India on 25 Oct, when it meets to review monetary policy. Gokarn also said higher income levels were increasing the tolerance for higher inflation. The benchmark 10-year bond yield rose following Gokarn’s comments on the policy stance, while weaker-than-expected factory output data, already factored in by the market, also lead to some selling. Industrial output in August rose a lower-than expected 4.1 percent from a year earlier, government data showed. The 10-year paper was trading at 8.73 percent, up 3 basis points from its previous close. The inflation data would now be crucial for helping cement views regarding the policy stance. Gokarn said robust domestic demand will help absorb the shock from the global slowdown. Indian manufacturing growth nearly stalled in September, turning in its weakest showing since March 2009 on slowing output and order growth as a year-and-a-half of interest rate increases and weakening global conditions take a toll on Asia’s third-largest economy. “Countries like China and India has large population and hence has robust demand which will help in absorbing the global shock.”

Firstpost

IIP sluggishness persists, but RBI may maintain tight stance

The fears of a slowdown are becoming more real with the factory output showing a lower-than-expected growth of 4.1 per cent in August, as the high cost of credit, rising prices and uncertain global environment continue to curtail demand and investment. This was only marginally better than the output growth in July at 3.8 per cent. It grew 4.5 per cent in August last year. Finance Minister said the IIP (index of industrial production) figures may impact India’s second (July-September) quarter GDP. “It is not encouraging. It is a bit disappointing and it may affect the GDP of second quarter,” he told reporters here. The Indian economy grew 8.5 per cent in 2010-11, but in the first quarter slowed down to 7.7 per cent, the lowest in six quarters.  Economists and analysts, however, said that the Reserve Bank of India that is scheduled to review its monetary policy on October 25, is unlikely to put a break in its hawkish stance given the high headline inflation, that stood at 9.8 per cent in August. Inflation, it seems, is a bigger concern for the central bank with deputy governor Subir Gokarn today saying that RBI’s decision on the direction of interest rate movement will depend on the inflationary situation.

IE

New norms for FCCBs on the cards

... India’s banking regulator plans to frame rules that will curb the enthusiasm of companies floating foreign currency convertible bonds (FCCBs) to raise money even as many Indian companies are grappling with the challenges of redeeming such bonds.....

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Press pause on rate hikes, chambers tell RBI

New Delhi : The Reserve Bank of India should pause its interest rate hikes as the deceleration in industrial growth is now clearly apparent, with both consumer and capital goods segments showing sluggish growth, Mr B. Muthuraman, President, Confederation of Indian Industry, said. He was reacting to the Index for Industrial Production numbers.  Industry performance in July-August 2011-12 is estimated at around four per cent compared with 7.2 per cent in the year-ago period. The RBI has hiked the key policy rate, repo rate, by 350 basis points since September 2009.  The Punjab, Haryana Chamber President, Mr Salil Bhandari, said there was need to ensure credit availability to industry at reasonable rates and moderation in input costs.  GDP growth in the second quarter of 2012 may fall below 7.5 per cent, he said in a release.  The Federation of Indian Chambers of Commerce called for reversal of some of the monetary tightening measures to stimulate domestic demand.  “The growth in consumer goods sector, especially consumer durables, is much below expectations, especially so in the festive season,” said Mr Harsh Mariwala, President, FICCI. He said “Investment demand has also been affected in the last few months as indicated in the negative growth of machinery which was -1.8 per cent in April-August 2011. “We expect the growth in industrial sector and investments to be low in coming months as the impact of rising cost of credit would continue.”

HBL

Is there a way out for India’s slowing economy?

...The next RBI policy meeting is on 25 October and perhaps another 25 basis point-hike (hopefully the last one) may be in store if the inflation number for September, out this week, shows no sign of calming.....

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BRIC currencies may snap losing streak

Rio de Janerio/ Beijing: All four BRIC currencies -- the Brazilian real, Russian rouble, Indian rupee and Chinese yuan -- will recoup at least some of their recent heavy losses over the next 12 months, a Reuters poll showed on Wednesday. The latest Reuters BRIC FX survey showed the real, rouble and rupee recovering slowly after diving more than 10 per cent against the dollar over the last three months, as low borrowing rates in sluggish developed economies force investors to seek yield in dynamic emerging markets. The rouble and rupee, will take the lead, expected to gain more than five per cent and six per cent, respectively, according to the median estimate of around 70 analysts, economists and strategists polled by Reuters.

FE

Move to make IFFCL infra finance firm gains steam

The Union Cabinet is likely to discuss a finance ministry proposal to convert India Infrastructure Finance Company Ltd (IIFCL) into an infrastructure finance company, a kind of NBFC, with a higher authorised capital. IIFCL currently does not fall under the regulatory oversight of the Reserve Bank of India (RBI) and is controlled by the finance ministry. The position will alter if the proposal fructifies. Last year, the RBI had created a new category of non-banking finance companies, called infrastructure finance companies. The other categories are asset finance companies, loan companies and investment companies. A Bill to alter the 2006-founded IIFCL is expected to be discussed at a meeting of the Cabinet likely to be held tomorrow, officials said. If the proposed changes are approved, IIFCL will be converted into a special category infrastructure finance company with a higher paid-up capital of around Rs 5,000 crore. Currently, the state-owned company has an authorised capital of Rs 2,000 crore and paid-up capital of Rs 2,000 crore. The Cabinet is also expected to discuss a proposal from the department of public enterprises that would empower all profitable central public sector enterprises to decide on overseas acquisition of raw natural assets without seeking approval from the government. The meeting is expected to also discuss a proposal to enable India join a global organisation of wine and vineyards.

BS

Wrong Number

Economists, policy planners and even RBI Governor D Subbarao have complained about the quality and veracity of data that the government’s statistics office puts out. Only the minister who is in a position to do something about it is conspicuously unconcerned. That’s because Shrikant Jena, who was handed the ministry of statistics and programme implementation portfolio in the last ministerial reshuffle, is deeply unhappy at being denied a cabinet berth. So much so that not only has this unglamorous ministry reverted to its old ways after enjoying a brief revival under Jena’s predecessor M S Gill, but Jena has not held even one press conference since taking charge. Officials say the minister is reluctant to meet even beat correspondents — not because there is no information to give but because he’s simply not interested in the ministry.

BS

Great ire stalls Greater Ranchi

The spectre of protests over land acquisition has reared its ugly head again, as around 50,000 settlers on land earmarked for Greater Ranchi project are united in their stand against even a topographical survey, going to the extent of taking two surveyors hostage on Tuesday for three hours as part of their sustained resistance strategy. According to the Greater Ranchi project, buildings such as secretariat, high court, marketing complexes, IT parks and others will come up, signifying Jharkhand’s entry into the “modern age”. The HEC areas will have high court building, Assembly, secretariat, residences of ministers and MLAs, the offices of the Reserve Bank of India, etc. The rest will come up at Sukurhutu on the outskirts of Ranchi where survey is yet to begin.

The Telegraph

Bangla duo held for string of burglaries

KOLKATA: Police on Wednesday arrested a Bangladeshi duo, suspected of being involved in at least five daylight burglaries. theft.They are suspected to be involved in crime within Ultadangaas RBI officersa quarters, Ayakar Niwas, Government Housing Society and South Eastern Railway officersa quarters. They had also cleaned an apartment in Nakeldangaas Eastern Railway officers' quarters.

TOI

Our books clean: Dhanlaxmi Bank

.... Amitabh Chaturvedi, MD & CEO, Dhanlaxmi Bank, said the bank has complied with all the rules laid down by the Reserve Bank of India(RBI). “We continue to interact with the RBI on a regular basis and there is no concern on compliance or the asset quality front,” he said......

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Retirement Expo comes to an end

Sudhir Gokarn, Deputy Governor, Reserve Bank of India and Dr Sheilu Sreenivasan, Founder President of Dignity Foundation at the concluding session of three- day Retirement Expo, organised by Dignity Foundation, for senior citizens in Mumbai. Gokarn, presided over the celebrations and emphasised the importance of retirement years by inducting its retiring employees into Dignity Foundation productive ageing schemes. Senior citizens, who thronged the venue were wooed by Banks, insurance companies, pharma, fitness centres, spas, senior citizens housing societies, assisted living device manufacturers, health professionals and multi- professional gurus of active living.

FPJ