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, July 9, 2012
RBI launches website to explain detection of fake currency
RBI pitches for cash-less carry
The day is not far when you pay your vegetable vendor, hair dresser and neighbourhood grocer with your credit card
The Reserve Bank of India (RBI) has prepared a road map to provide card swipe machines to more than one crore retail businesses in the next three years to promote electronic transactions for ushering in a less-cash society in the country.....
Scarcity of coins, notes of small denomination hits state economy
......At present Manipur is facing scarcity of coins and small denominations of Rs 5, Rs 2 and Rs 1.Besides, one finds it hard to see any new notes of Rs 10 in the state, thereby suggesting the possible scarcity of the same in the near future. While Manipur has been facing the problem for the last many years, there are plenty of such coins and small denomination currency notes in other states. In the absence of coins and small denomination currency notes, one is forced to buy matches, sweets or chewing gums at shops, even if they don't them since there is no change to return at the time of buy anything something whose price is below Rs 10 .....
RBI to release new Rs. 5 coin soon
To commemorate 150 years of the Comptroller and Auditor General of India, the Reserve Bank of India (RBI) has announced that it would shortly put into circulation a new series of coins of the Rs. 5 denomination with the new symbol for the Indian rupee inscribed on it............
Obituary
Cornelius D'Souza (Kenny), 65 years, retired RBI Officer, Bangalore passed away on July 7, 2012. Funeral cortege leaves residence A 101, Spartacus Apartments, 30th Cross, 4th T Block, Jayanagar, Bangalore 560 041 on Monday, 9th July 2012 at 2.30 p.m. to Christha Prabhalaya Church, Jayanagar. Funeral mass at 3 p.m. followed by burial at Hosur Road cemetery. Contact details : Dr. Simia Almeida - 09980560454.
RBI directive a setback for Islamic NBFCs
At a time when the National Commission for Minorities is pressing hard upon the Union Finance Ministry to explore ways to start interest-free banking in the country, the recent RBI directive has dampened its spirit..........
SBI MUSEUM: A peek into the evolution of Indian banking
....Spread over 7,500 sq feet, the museum chronicles the evolution of SBI from the days of the Bank of Calcutta in 1806. A treasure trove of interesting facts, the gallery details the evolution of India’s banking system which was initially driven by the shroffs (local moneylenders), to the emergence of commercial banks in the 18th century. Visitors can take a peek into the personal finances of legends Bengali Renaissance period legends such as Rabindranath Tagore; polymath and social reformer, Ishwar Chandra Vidyasagar and theosophist, Annie Besant. Believe it or not, the bank even returned a cheque issued by the then Governor-General, William Bentinck, for exceeding the credit limit by just four annas (25 paise).......
Kris Gopalakrishnan to head govt cloud computing panel
....While appreciating the benefits of cloud computing, the RBI Deputy Governor, Mr Anand Sinha, recently pointed out that it being a new technology, data integrity and confidentiality seem to be a major concern at this stage. “Further, if too many participants rely on a single service provider, it may lead to a risk of overconcentration inasmuch as the failure of the service provider will be catastrophic,” he said at Hyderabad.........
Disbursal of KCC loans: Private sector banks not included in RBI circular
.....The State Level Banker’s Committee (SLBC) keeps promising the State Government that the directives of the RBI and the Union Finance Ministry are being ‘strictly followed’ in Kerala while allotting shortterm, Kisan Credit Card (KCC) loans to farmers and the Service Area Approach (SAA) is integral to it. But a circular issued by the Union Finance Ministry to CEOs of all Public Sector Banks (PSBs) on May 30,2012, which is in the possession of Express, has not mentioned the SAA,which was withdrawn on December 8, 2004. Also,in the directive on the basis of a listed Reserve Bank of India circular, no mention is there on the inclusion of private sector banks for disbursal of KCC loans...........
High court directs status quo on bank's plea
....Bombay high court has issued notice to the Central government and directed a status quo to be maintained on a plea by Dhanashree Mahila Sahakari Bank at Miraj, Sangli district against the cancellation of its banking license by the Reserve Bank of India.......
Check banks
I completely agree with T N Ninan’s piece “Personal accountability” (Weekend Rumination, July 7). Banks are expected to concentrate on lending and borrowing, rather than focusing on third-party products. For the sake of meeting revenue targets, customers are being mis-sold and duped these days. The Securities and Exchange Board of India and the Reserve Bank of India (RBI) do nothing to prevent these unethical sales. RBI needs to seriously regulate banks’ non-banking activities like insurance, broking and mutual funds.
- Balaganesh, Chennai (BS)
Bankers to meet RBI's Gokarn, will urge RBI to cut rates
MUMBAI: CEOs of commercial bank will urge Reserve Bank of India (RBI) to cut rates to improve investment sentiments at the customary pre-policy credit policy meeting which is scheduled on Monday. The RBI will announce its first quarter review policy on July 31 amids slowdown in economic growth and concerns of rising inflation. In the last mid quarterly review held in June, t he RBI left interest rates and the cash reserve ratio for banks unchanged on fears of worsening inflation.............
Lazy banking or easy banking?
....In April, after RBI surprised the market with a half-a-percentage point cut in the policy rate, sending a strong signal to banks to cut loan and deposit rates, ICICI Bank Ltd, IDBI Bank Ltd and Punjab National Bank cut their base rates marginally; but most banks have been tweaking their loan rates for different business segments, leaving the base rate untouched. This makes the base rate irrelevant as this is the benchmark for all loan rates. RBI had forced banks to replace the erstwhile prime lending rate with the base rate as the prime rate became irrelevant with banks giving a bulk of the loans at below that rate. In some sense, the base rate is also going the same way.....
India Inc's deposits lose out amid better liquidity
....On the back of this improved liquidity, banks have stared refusing bulk deposits even at card rates — the interest rate offered to retail depositors. Some banks are not accepting bulk deposits of more than Rs 10 crore from one customer. Banks were paying around 9.5 per cent interest on three-month deposits until recently, but now that rate has come below nine per cent......
Tracking flux in forex assets
Fluctuation in the value of forex assets has a significant impact on India’s foreign exchange reserves. The country’s foreign exchange reserves fell by $10.4 billion to $294.3 billion during 2011-12, after rising by $25.8 billion in 2010-11 and $27.1 billion in 2009-10, according to RBI data. ........
Read - HBL
Read - HBL
Bank licences can be given on the basis of existing regulations, says C Rangarajan
....."I see that there is a scope for more banks to come in as they come with new ideas... I think if old regulations are inadequate, then they must be modified otherwise RBI can also consider using old regulations, on the basis of which it can give new licences,"......
RBI misled by inflationary expectations
.....As inflationary expectations are crucial in monetary policy formulation, it would serve the economy better if the RBI were to expand the scope of its expectation surveys to correctly ascertain the same. Till such time, it would be better if the central bank adopted the indirect method to ascertain inflationary expectations. In the upcoming policy review on July 31, the policy tilt should be to revive growth unless there is clear indication that easing would aggravate inflation.
RBI Governor Duvvuri Subbarao not to cut rates unless PM can contain fiscal deficit
....The stars may be appearing to align for Reserve Bank of India Governor Duvvuri Subbarao to cut interest rates by month-end, but it may not happen yet unless Manmohan Singh, who holds the finance portfolio, pulls a rabbit out of his hat by July 30 to contain fiscal deficit.......
Monetary policy and the growth syndrome
....It is to the credit of RBI Governor Subbarao that he successfully resisted these pressures to demonstrate that real life situations are for more complicated to be amenable to text- book solutions. Monetary policy making remains an art and not a science......
A plateful of memories
....Dr Basu spoke of his extremely comfortable relationship with Mr Pranab Mukherjee, a thoroughbred political person but one who also had a grasp of economics. He spoke of how he enjoyed the confidence of the Prime Minister. Did he know Dr Manmohan Singh from his Delhi School of Economics days? “No, I met him first when he was the Governor of RBI,” Dr Basu said.......
Clean the stables
...... He publicly chastised the Governor of the Reserve Bank of India, who was unsuccessfully trying to control inflation through monetary policy without the necessary fiscal measures by the government. Mukherjee expected the RBI to cut interest rates for stimulating growth. But he would do nothing to reduce the deficit. He appointed a super-committee with himself as its head to oversee the RBI, the securities and exchange board of India and the insurance regulatory and development authority, ostensibly to settle jurisdictional disputes between them.........
A robust system in turbulent times
....A closer monitoring of banks is also required because “distress dependencies” between banks has risen. RBI’s analysis of the branch network of Indian banks reveals that the systemic importance “of the most connected” banks has increased. The risk that the failure of a large bank could ripple through all parts of the financial system has increased because of growing inter-dependence of banks, insurance companies and mutual funds. The random failure of a bank, which has large borrowings from the insurance and mutual funds segments of the financial system, may have significant implications for the entire system,” says the report......
Till debt do us part
.....The simple point that now cuts across all lines is that excessive government borrowing sets into motion a chain of events that crowd out productive private investment directly in terms of fund availability or indirectly by pushing up the rate of interest. Indeed, in a rare sign of autonomy, RBI has virtually put reduction of fiscal deficit as a precondition for interest rate cuts.....
Student loans benefit 8673 in district
......Mayank Mehta, deputy general manager of Union Bank of India, K R Jayaprakash, lead district manager, K D Joseph, AGM, Reserve Bank of India, Venu S Menon, AGM, NABARD and officials from other banks attended the DLRC meeting.
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Building on definition
....So, various arms of the government came up with their own lists of what constituted infra. These included the Reserve Bank of India, or RBI (lending), RBI (external commercial borrowings), Insurance Regulatory and Development Authority (Irda), income tax department, Securities and Exchange Board of India (Sebi), Department of Economic Affairs, National Statistical Commission, Central Statistical Organisation, Empowered Sub-Committee of Committee on Infra (read Planning Commission), Economic Survey and India Infrastructure Finance Company. By 2010, there were at least 14 official lists floating around.....
Sunday, July 8, 2012
Underprivileged customers
India’s Journey on the road to Financial Inclusion
The July 2012 issue of eGov, the world’s premier magazine on e-Governance (http://egov.eletsonline.com/)
India’s New Development Agenda - Book review by P.P.Ramachandran
.....The authors of the Report lack a sense of Indian economic history” — a stern indictment indeed. Incidentally, the Committee did not include a member from RBI. ‘ Monetary and Credit Policies’ form the subject matter of part three and has ten essays. There is a critical analysis of policies in the post- reforms period and a stirring call on the part of RBI to evolve a blueprint of area- specific plans to facilitate banks and financial institutions to promote inclusive growth in the real sector. A number of essays analyse credit and monetary policies during 2007- 2009........
SHGs in Konark criticize Canara Bank's delaying tactics to approve loan
Women Self Help Groups representative of Konark NAC area criticize Canara Bank officials' delaying tactics to approve loan. This resentment come into the public during the ‘Canara Grameen Utsav’ which was organized today at Yatriniwas, Konark. The exhibition showcases glorious growth story of Canara Bank . It was inaugurated by Sri S Raman ,Chairman & MD of Canara Bank . S Saha , GM Canara Bank, Bhubaneswar, Sri K K Gupta Chief General Manager NABARD & Shri V Ramachandra Rao, Regional Director RBI were present in this occasion................
God Help Us: We now have three finance ministers
......According to BusinessLine, Rangarajan’s days are packed, with Reserve Bank of India (RBI) Governor Duvvuri Subbarao, and LIC Chairman DK Malhotra set to meet him next week. As a former RBI Governor himself, it is quite clear that Rangarajan’s voice will be heard louder on Mint Street than even Pranab Mukherjee’s. As a known monetary conservative, Rangarajan is sure to back Subbarao’s hawkish stand on inflation, which has meant RBI holding rates high despite the economic slowdown. But Rangarajan’s role will extend beyond guiding monetary policy........
.......For the time being, India has two sort-of FMs – Rangarajan and Ahluwalia. One is there because he is non-controversial, and the other because he is close to Manmohan Singh. And of course, we have the PM-cum-FM. Is three too much of a crowd?
Union Bank to set up 100 'talking' ATMs
Union Bank of India would install 100 ‘talking’ automated teller machines (ATMs) this financial year to enable the visually challenged to carry out ATM transactions. On Saturday, the public sector lender inaugurated its second talking ATM in Thane. The first such ATM was set up on June 6 at the Blind People’s Association campus in Ahmedabad The bank would open 50 such ATMs at Passport Seva Kendras across country........
Tips for safe online and mobile banking
Access to the Internet is now ubiquitous and so its popularity as a medium to make financial transactions is beyond doubt. Such popularity also means the online banking system is constantly prone to attacks........
Textile debt recast meet on July 13
....In a letter to the Union Ministry of Finance last month, the Reserve Bank of India (RBI) said that it had no objection to proposals such for two-year moratorium on term loans and conversion of working capital into working capital term loan. However, the apex bank felt that the asset classification benefit on second restructuring was not justified.......
Little progress on affordable housing ECBs
The big-bang Budget announcement of allowing external commercial borrowings (ECBs) for affordable housing has hardly seen any follow-up action. Government officials and industry stakeholders close to the development indicate the move is unlikely to be implemented anytime soon, as issues like hedging of foreign exchange risks are yet to be resolved. The Ministry of Finance, along with the Reserve Bank of India (RBI), would have to finalise the guidelines and issue a notification on ECB norms............
India outpaces developing world in inflation rankings
..........For policymakers, the worrying bit about the current bout of inflation is that it continues to stay above the comfort zone despite the fact that the Reserve Bank of India (RBI) has been easily the most aggressive Asian central bank..............
Interest-ing times
........In India, similarly, while an RBI rate cut—our columnist Surjit Bhalla estimates a 100 bps cut results in a 0.44 ppt hike in GDP growth—will help, there is no substitute for policy action by the government..............
India Inc has to live with dollar at Rs 50: Kaushik Basu
..... although rupee was depreciating too much, India's apex bank, the Reserve Bank of India, could not resort to sale of too much dollars to prevent a sharper fall in rupee as there was a tendency to panic if foreign exchange reserves dipped.......
OMO to continue to be driven by liquidity judgement: Gokarn
......OMOs are being driven by judgments about liquidity conditions and they will continue to be driven by judgments over liquidity conditions. Whatever is causing liquidity stress whether it is foreign exchange markets or something else, we are focused on maintaining liquidity conditions within the comfort zone that we stated and that will continue to be the benchmark against which we decide whether to do OMOs or not,”........
Decision to raise FIIs investment limit in government debt appears surprising
Former RBI Governor Y V Reddy said recently that some global financial conglomerates are more powerful than even central banks. It is a moot point as to whether these financial bodies are as influential in India's markets, but they are going to benefit for sure from a quick fix and myopic policy to attract capital flows in the near term............
Sticky rupee path
.....“The next few months are difficult. We expect it to remain around 50 and we have to live with that,” he added. Although the rupee was fluctuating “too much”, he said it was not possible to sell dollars to prevent a sharper fall as there was a “tendency of panic” if foreign exchange reserves shrink......
Saturday, July 7, 2012
Dr. Subbarao inaugurates RBI gallery at the Indian Business Museum at the IIM-K
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| Peep into past Duvvuri Subbarao, RBI Governor, takes a look at the photos of his predecessors exhibited at the RBI gallery at the Indian Business Museum in the Indian Institute of Management, Kozhikode, on Friday |
Industry chiefs queue up to meet Rangarajan
If you think the Yojana Bhawan on Parliament Street in the national capital is hogging all the limelight after the Prime Minister took over the Finance portfolio, you are wrong........
......The RBI Governor, Dr D. Subbarao, and the Life Insurance Corporation Chairman, Mr D.K. Malhotra, are also likely to meet Dr Rangarajan soon......
Ban elevator economics
.....Though a policy statement is not expected to provide either a theoretical or empirical backing of its assertions, it nevertheless is expected to have some such support, albeit one lurking in the background. The RBI policy statement accepted that growth had slowed to exceptionally low levels, that headline inflation remained inflated, and concluded that a cut in interest rates would increase inflation without improving investment. So if symmetry holds, as it should, an increase in interest rates would not hurt investment (“relatively small” effect) but would have a disproportionately large effect in reducing inflation. Which is precisely what RBI has been doing for the last year and a half—with the result that both investment and growth have collapsed, and inflation has not moderated. So the RBI policy statement is not supported by either reality, or logic.......
Inflation v/s growth: RBI may not cut rates immediately
....However in India, the central bank is battling inflation versus growth. Inflation measured by the wholesale price index (WPI) for the month of May stood at 7.55%. With monsoon being below average for the month of June, inflation could rise further in the coming month. "Though the economic environment is conducive to a rate cut, high inflation and poor monsoon progress is a concern. Hence the central bank may maintain a status quo in the coming monetary policy," .......
Is RBI the one-eyed hawk in a world of blind bankers?
......Interestingly, since the world is giving away money for free, the pressure will be on the Reserve Bank of India (RBI) to follow suit and cut rates. With a repo rate at 8 percent, the RBI now has probably the highest rate in the world. The question is: is it just a obstinate hawk that refuses to see reason, or it is the one-eyed man in a world led by the blind?....
RBI to pursue wait and watch strategy on rate cut, may not follow global peers
......The presidential polls are currently a hurdle for any strong reforms from the government to tame the burgeoning fiscal deficit. The deficit is a repetitive concern which RBI has been highlighting as one of the reasons behind its inability to cut interest rates as a strategy to boost growth. Reacting to the triple booster from its global peers, RBI Governor D. Subbarao told reporters, in Chennai, that central bank is sensitive to inflation and committed to bring it under control. "We will continue to make all efforts," he said. Leaving interest rates untouched is one such effort. But some promising steps from the government could propel RBI to take a rate-cut decision in its ensuing policy review on July 31. Until then, India is not likely to be part of the global orchestra........
Greed and fraud: Lessons for India
....The fraud has two major lessons for countries like India that are nascent players in the world of advanced financial instruments. On November 10, 1998, the Mumbai inter-bank offer rate (Mibor) was set up on the lines of Libor as a benchmark rate for all interest rate swaps, forward rate agreements, floating rate debentures and term deposits. The Reserve Bank of India (RBI) may have to monitor Mibor more closely now with adequate checks and balances to ensure that banks and financial institutions do not report suppressed rates to paint a rosy picture of their financial standing. Though unlike in the western world, most key rates in India are determined or benchmarked by RBI, scrutinising Mibor by the banking regulator would go a long way to prevent a Barclays kind of scandal in the Indian market.......
RBI revises criteria for declaring dividend by UCBs
The Reserve Bank of India (RBI) said urban cooperative banks (UCBs) which have less than 5% of non-performing assets (NPAs) and comply with capital to risk-weighted assets ratio norms may declare dividends without its prior permission..........
Fin Min asks RBI to ready final norms for bank licences
Prime Minister Manmohan Singh is keen to finalise the guidelines for new bank licences. Bloomberg UTV has learnt that the finance ministry, headed by the Prime Minister, has asked the Reserve Bank of India to ready the final norms for bank licences...............
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RBI releases database to locate bank branch, related information
....."Users of this database can search for bank branches /offices on the basis of the name of the centre, some key words in the address and combinations of state/district/bank. "The information in this branch locator will be updated on a daily basis. The information is downloadable in excel format from this branch locator," RBI said in a notification.......
Banking frauds: State run banks to adopt innovative mechanisms and global practices
.....From the regulator's perspective, Vijaya Bhaskar, ED of RBI explained that fraud is an area of concern as it undermines the trust, which is the foundation stone of the banking business. He emphasized that the three lines of defense against Fraud - the employees, the systems and controls and the external agencies like the regulator and law enforcement agencies- should be strengthened.........
FinMin asks banks to pare cheque-based transactions
The Finance Ministry has asked public sector banks and regional rural banks to bring down cheque-based transactions by popularising electronic payments. It has directed these banks to pare cheque-based transactions by at least 20 per cent in the current financial year in the top 20 per cent branches in terms of business volumes. Further, banks’ board of directors have to set targets for shifting customer transactions to the electronic mode and monitor them on a quarterly basis..........
Solar ATMs for rural India
Vortex, a young Chennai-based company, could be adding new energy to India’s rural economic growth with its award-winning solar-powered automatic teller machines (ATMs). Called “Gramateller Indi” (“graamam” means “village” in Tamil), the low-power consumption machines operate at one-tenth the cost of conventional ATMs. State Bank of India, the country’s leading banking chain, has already ordered 300 Gramatellers; 19 other banks are using these sun-powered cash venders in villages and small towns. The immediate demand for the solar ATMs reflects and empowers India’s quietly surging rural economy, estimated to be worth about US$450 billion. Rural India, considered the backbone of the national economy, is expected to overtake the urban market in size by 2017................
New ATMs for differently-abled will make transactions easier
......The Union Bank of India (UBI) will launch a fully accessible, speech-enabled, bilingual ATM in Thane’s Passport office on Saturday for differently-abled people. It will be the first such ATM in the city. “UBI is the first bank in the country to deploy fully-accessible ATMs to help the differently-abled make transactions independently,” .......
Sacrificing growth necessary to rein in price rise: Subbarao
....Subbarao informed that a 15-year old girl from Andhra Pradesh had written a letter to him saying that she had seen newspaper reports about RBI's plans to start plastic currency as a pilot project. She had expressed her doubts over the environmental friendliness of plastic currency, he added. The RBI governor said he then asked officials to conduct detailed environmental studies. The Centre for Environment Studies, Nagpur had conducted vigorous studies and informed the RBI that carbon footprint of plastic currency is lower than paper currency, he added. Pointing out that countries including Singapore and Australia have plastic currency, Subbarao said, "Plastic currency is suitable to India as it can withstand our weather conditions." .......
Reserve Bank of India to introduce plastic money on pilot basis
KOZHIKODE: The Reserve Bank of India (RBI) is planning to introduce plastic currency on a pilot basis as it has been proven to be economical and environment-friendly when compared to paper currency, said RBI governor D Subbarao here on Friday................
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ICT based financial inclusion - carving a new path through innovation - K C Chakrabarty
Address by Dr K C Chakrabarty, Deputy Governor of the Reserve Bank of India, at the
Inaugural Plenary session of the 7th BANKing TECH Summit 2012, Mumbai, 28 June 2012
.......Recently, I came across the report submitted by Consultative Group to Assist the Poor (CGAP) and ACCESS based on the “Retreat on the Business Correspondent (BC) model” which was jointly organized by the College of Agricultural Banking (C.A.B.), Reserve Bank of India and ACCESS. The report spells out the challenges faced by both banks and BCs in extending facilities to the recently financially included and to the financially excluded. The findings indicate that the banks have to ensure that the BC model finds space in the business strategies of the banks and not in the footnotes of their annual reports and that the banks should make client acquisition under this model a business proposition; and not treat it as a CSR activity. An important observation indeed!...........
No-frills accounts aren’t a nuisance: D Subbarao
...."By and large banks have outsourced the 'last mile' to intermediaries such as microfinance institutions and self-help groups. This is a model that has worked, and one that we should pursue, and refine. Nevertheless, the question is, 'is there a business case for banks to do some of the last mile themselves? Can banks rely entirely on outsourcing? Isn't there a valuable experience to be gained by banks by dirtying their hands more and reoccupying the last mile?" .........
Central Bank of India scraps levy on NEFT transactions up to Rs 1 lakh
Central Bank of India has made all National Electronic Funds Transfer transactions up to Rs 1 lakh free from levy of any charges with effect from July 1, 2012...........
RBI nixes textile sector’s plea for debt revamp
The RBI has rejected a debt restructuring proposal from the textile industry. The industry was hoping for a Rs 35,000-crore package. However, the Reserve Bank of India said it had no objection to a two-year moratorium on term loans and conversion of working capital into working capital term loan (WCTL) within a timeframe of three-five years.............
Making gold work
This refers to the article ‘‘Managing gold, a policy challenge’’ (Business Line, July 6). This is a timely alert to the Government and the RBI to manage India’s domestic stock of gold to the country’s advantage. Instead of handling the issue piecemeal, the Government and the central bank should evolve a gold policy which should factor in:
The imbalance between import and export of gold and gold-based products;
Mapping the domestic stock of gold and jewellery;
Gradually converting the official gold stock with government and banks into standard gold, acceptable internationally;
Charging inspection fee (there should be arrangements for inspection) and an annual charge payable to government on gold beyond a stipulated limit retained with private individuals/institutions.
This will partly finance the security costs borne by the government.
- M. G. Warrier Mumbai (HBL)
Gold investor? Restrictions on coins can curtail your options
Rupee depreciation and higher outflows of dollar in the form of imports have been concerns of the government for some time now. While the government has been taking measures to curb import of gold into the country by hiking duties and taxes, Reserve Bank of India (RBI) too, has started doing its bit. The central bank has already asked banks to go slow on gold coin sales, and a proposal to ban them from the sales is also doing rounds. Financial Chronicle evaluates the likely impact of such a measure on banks, investors and other investment avenues in gold........
RBI working to resolve issues facing microfinance industry: Governor Subbarao
....The Reserve Bank of India (RBI) is working to resolve the issues facing the microfinance industry, including compliance to capital and provisioning norms, to bring the ailing sector back on track, Governor D Subbarao said, as per media reports from Chennai.......
Whammy after whammy for India’s Muslims
....Now, with India back on the slow trail, the world’s second largest Muslim population awaits darker days. Through five straight years of over 8 per cent growth in 2007, economists were projecting an annual expansion rate of 11 per cent from 2011 on. But in the last week of June, the Governor of Reserve Bank of India, D Subbarao, admitted for the first time that the “potential” for India’s economic growth has “come down”. Mr Subbarao was not exaggerating. In the post-2008 era, India’s economy experienced rapid deceleration.......
Jain Irrigation gets RBI nod to launch agri NBFC
Jain Irrigation Systems has obtained regulatory approval from Reserve Bank of India to launch a new non-banking finance company (NBFC), which will focus on farm sector and operate in rural and semi-urban areas. The NBFC, to be named Sustainable Agro-commercial Finance Ltd (SAFL), will commence as a joint venture with Jain Irrigation, promoter entities and IFC, a member of the World Bank Group, as equity shareholders. Some banks and financial institutions will join the equity shareholding at a later stage, the micro irrigation company said...........
SKS soars on buzz that RBI may ease norms for non-banking finance companies
....The latest spurt in the SKS scrip comes on the back of Reserve Bank of India Governor D Subbarao's comments that the apex bank was mulling relaxing norms on provisioning, net worth and capital adequacy for NBFC MFIs. "In particular, Andhra Pradesh-based MFIs, saddled with huge losses, large NPAs (non-performing assets) and eroded capital, are facing an especially acute problem in complying with the capital and provisioning norms. RBI is working on resolving these issues, so that MFI operations can get back on track," Subbarao is quoted as having said......
Friday, July 6, 2012
RBI asks banks to innovate cost effective village branch model
Chennai: The Reserve Bank has asked banks to develop cost effective village branch model in order to promote financial inclusion. "Indeed, I think there is a strong case for a much larger effort on innovating a cost effective village branch model," RBI Governor D Subbarao said .........‘RBI outreach programme yet to make an impact at the grassroots’
The outreach programme of the Reserve Bank of India is yet to make any big impact on the target audience. The RBI Governor, Mr D. Subbarao, in his oration at IOB’s Platinum Jubilee function, said, “The actual benefits of the programme, aimed at financial inclusion, have not reached the backward communities in villages, which were the real target,” he said...........
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Pension - updation - tension - RED SALUTE 2 RBI CHENNAI COMRADES !
July 5th 2012 witnessed a big crowd at the entrance of RBI CHENNAI buildings demanding PENSION UPDATION mainly among other issues. On behalf of all the members of both RBICF and EXR I thank the moderators S/S CHANDRIAH AND MADAN GAURIA for the efforts they took in organising the members of the demostrations. At 8-30A.M many retired and serving comrades gathered at the entrance. I will failing in my duty if I do not mention Shri Nair who was very much ahead of time and virtually the reception committee at the gate. The number swelled and we could see a float of many white and white cars stremaing in and many of top executives in full suit came into attend the Board Meeting. S/S Sameer Mahadik and AG came and the members were excited to see the leaders. At 9.30 A.M our Governor Dr.D. Subbarao called in all the representatives and assured them of positive outcome in the near future. The leaders addressed the gathering.Com Sameer made an excellent speech and COM AG thanked all those who present so early on a scorching Thursday in Chennai. Chenani leads the way once again. RED SALUTE 2 RBI CHENNAI COMRADES !
- S.Venugopalan, 7-A, Prashanthi Apts.
T.M.Maistry St.Vannandurai, Chennai - 600 041
Ph: +91 44 42151321
RBI board meets to review economic scenario
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| RBI Governor D Subbarao (C) chairs the RBI Board meeting in Chennai |
Chennai : The Central Board of the Reserve Bank of India met here today to review the key economic, monetary and financial developments. RBI Governor D Subbarao chaired the meeting held at the Reserve Bank's Regional headquarters.....
Need to revolutionise banks’ HR management
....While we are facing a crunch of manpower – can we use our retired people in some way – we are paying them pension and reasonable medical benefits already – can some contracts not be worked out for them? Again, can we not provide some empowerment to them to leverage on their inherent loyalty? They could be useful in brand building efforts, or perhaps, in our financial inclusion initiatives. It is, definitely, an avenue that could be explored.........
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Managing gold, a policy challenge - K Kanagasabapathy
The RBI can learn a trick or two from Turkey in order to absorb gold into the financial system, thereby turning it into a productive asset
Rajendra Prasad's bank a/c kept alive after 50 yrs
.....Prasad's account is perhaps the only bank account in the country which is not only open and functional but also seen interest income being added to it . Usually after the death of a bank account holder, the money in there is passed on to the legal heirs on completion of certain formalities. Gupta said no one has come till date to claim for the money........
RBI for customer-friendly savings bank deposit rate policies
....“The big banks have yet to respond to this...Reserve Bank looks forward to more active play in the Saving Bank segment with banks coming out with some customer friendly innovations especially aimed at attracting low income households, presently outside the banking sector,” ........
RBI vision document on payments: An evaluation
.....it is commendable that RBI has released a payments vision document. Such a document gives an opportunity for us to understand the mind of a government agency, and discuss and debate its priorities and actions. But writing a vision statement is a chance to step away from the familiarity of set ways and ask the big questions. RBI should not squander this opportunity.
Is There a Problem with RBI’s Communication?
Twice bitten, now shy: RBI keeps close watch on inflation
Even after entering a rate reversal cycle, the Reserve Bank of India (RBI) is refusing to give up on its fight against inflation. Caught off-guard on inflation projections in the past two years, it is maintaining a hawkish stance. Yesterday, RBI Governor D Subbarao said the central bank was "deeply sensitive" to the problem. "We are committed to bringing inflation under control. It has been our effort over the last two years and will continue to be our effort," he said.......
Improving the domestic payment system
The Royal Monetary Authority (RMA) will tie-up with the Reserve Bank of India sometime between the third or fourth quarter of this year, on the cross border connectivity to enable the shared payment network. This plan falls under the Bhutan Financial Switch (BFS) project, which is being done in collaboration with all the commercial banks and the RMA.........
India has scope to cut government borrowing: R Gopalan
India still has some scope to reduce government borrowing, Economic Affairs Secretary R Gopalan said on Thursday on the sidelines of the Reserve Bank of India's board meeting........
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All eyes on RBI as China, Britain and Europe central banks cut rates
Central banks in China, Britain and Europe have wielded monetary levers to stimulate their economies, raising hopes the Reserve Bank of India (RBI) could do the same at home soon. But experts said Governor D Subbarao would wait to see inflation cool before obliging with a rate cut........
Rate-fixing scam forces NSE, dealers to find ways to improve rate calculation method
.... Last year, the Reserve Bank of India (RBI) came out with a cryptic communique, the implications of which were lost beyond the money markets of Nariman Point and Bandra. But it unsettled the game plan for many punters in the currency market and forced some to change tack. The innocuous circular was a simple announcement on how the central bank was changing the way it calculates the daily 'reference rate' for some of the major foreign exchange rates. The RBI had done this for the first time and there was a reason for it......
Micro finance institutions: RBI concerned on monitoring deficiences
........"The central government is bringing out a law to govern the MFI and has proposed RBI as the regulator. The concern is whether we have the set up to oversee small MFIs without affecting the quality of supervision.".............
Financial inclusion: Are 63,000 more ATMs enough?
....At present, the country has more than 90,000 ATMs, according to the Reserve Bank of India. In a bid to encourage ATM transactions, the central bank had recently allowed non-bank entities to set up, own and operate ATMs, labelled white label ATMs. According to the RBI, ATM adoption by customers has modified personal banking in India and banks have played a major role in this.......
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