........We have consistently maintained that the RBI will maintain monetary easing stance, but this will play out more through the liquidity channel rather than through the interest rate channel. Obviously there are some expectations particularly because of the sound bytes coming from New Delhi that there could be a rate cut. Obviously a rate cut cannot be ruled out, but our sense is that...........
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.
Wednesday, October 17, 2012
Interest rates need to be reduced: SBI
........."We want that interest rates should be brought down by RBI (in its upcoming policy) so that business and industrial activity could get uplift which is facing stress at the moment," SBI Manging Director S Viswanathan told reporters in Ludhiana. He further said if RBI faces technical problem in bringing down interest rates then it can reduce cash reserve ratio so that banks could get more funds for disbursement............
Tuesday, October 16, 2012
RBI school quiz city edition held
GUWAHATI, Oct 15 – The Guwahati edition of Reserve Bank of India’s all-India RBI Inter-school Quiz was conducted today at the District Library auditorium. Maharishi Vidya Mandir, Rajgarh, Guwahati was declared as the winner of the quarterfinal. Barry O’Brien conducted the quiz. P.K.Jena, Regional Director for North Eastern States, RBI, Guwahati, inaugurated the event in the presence of a large gathering consisting of students, parents, and teachers of various schools of the city. A total of 33 schools participated in the event. There were two rounds – the first being the pre-quarterfinal which was a written test, where teams were required to answer the questions by writing in the answer sheets provided to them. Six teams qualified to participate in the quarterfinal round, which was an audio-visual round. The selected team will now participate in the zonal final to be held in November. The Regional Director, RBI, and the Director, Indian Institute of Bank Management, handed over the prizes to all the winners. All the participants were given attractive mementos, RBI’s special brochures and participation certificates. After the elimination round in all the 33 cities, one team from each of these places will be selected to represent in the zonal finals which would be conducted in mid-November and the national final will be held in Mumbai in December.
The Assam Tribune
RBI cautions public against mischievous mails
......"It has come to the notice of the Reserve Bank of India that an email has been sent in its name from mail id: Reserve Bank Of India and signed by RBI, Security Team offering a 'new online security protection' called 'Netsecured' to "reduce fraud and theft in various banking system (and) to enable all customer's online banking in all Indian Banks to get protected and Secured," an RBI release said.......
Coin exhibition attracts investors
KANPUR: Mudra Mahotsava, a coin and currency exhibition, organized by UP Numismatic Society, attracted a large number of investors. An online auction was held on the last day of the exhibition on Sunday. Numismatics, which earlier used to be a hobby of schoolchildren, had been recreated as an alternative insurance avenue designed to endure economic crisis. People are keen interest in such exhibitions. .......
New RBI fellowship opens today, here’s more about it
The Reserve Bank of India (RBI) today announced a National Fellowship Scheme, in the name of Prof. K N Raj, a noted economist. RBI, on its website said: ‘The objective of this scheme is to encourage distinguished research scholars in India or abroad to work in academic institutions in India for a short period and to facilitate interaction between the scholar and other faculties of the institution in which the scholar would work.’..........
Read.......
MSMEs see no light at the end of the loan tunnel
The present spell of power crisis in most parts of the State has forced micro, small and medium enterprises (MSMEs) to approach the Reserve Bank of India (RBI) with an interesting request: suspend the application of non-performing asset (NPA) norms till March 2013. Last week, associations representing MSMEs met RBI Regional Director N.S. Viswanathan in Chennai to press their case.......
India’s reforms: don’t stop now
......RBI may find this idea too radical. Besides, supervision of different types of banks is not easy. But one thing is for sure that banking licence should be on tap and the “fit and proper” entities should be continuously allowed to set up banks. We need many of them.........
ICICI Bank looks to acquire Karnataka Bank
The country’s largest private sector bank, ICICI Bank, is learnt to have submitted a formal proposal to the Reserve Bank of India (RBI) to acquire Karnataka Bank, an old and listed private sector bank with a nationwide presence and over 500 branches. In May 2010, ICICI Bank had acquired Bank of Rajasthan, another old bank. According to sources close to the development, Kotak Bank, one of the new private sector banks, too had evinced interest in the 88-year old Karnataka Bank, but it is not clear if it has approached the banking regulator with a formal proposal. A possible acquisition of the bank has, in fact, been talked about for almost two years now. RBI did not respond to a detailed questionnaire mailed to it earlier in the day........
IDI AND NOT FDI
Internal direct investment, rather than the foreign direct investment is needed in a developing country like India to mobilise the capital for investment and establishment of both SSIs and large scale industries to provide employment on a large-scale. When the Indian banks are in a position to infuse Rs. 17,000 crore for monetary liquidity because of reduction of CRR by 25 base points in September, as stated by the RBI Governor, there is no need for FDI.
- Rajram Palluru, Visakhapatnam (The Hindu)
PSL norms for foreign banks: K C Chakrabarty dismisses criticism
.......Dismissing criticism of RBI's stance of treating foreign banks at par with domestic peers with regard to priority sector lending, RBI Deputy Governor K C Chakrabarty today said overseas lenders who have been in India for over a hundred years should not complain about this issue..........
Govt, RBI mull ways to introduce Islamic banking
...........Supporters of Islamic banking say its implementation will lead to money coming in from organizations that can only make Shariah-compliant investments. Critics say it will destabilize the secular nature of the country’s banking system by imposing the laws of one religion, besides facilitating terror funding. D.K. Mittal, financial services secretary, declined to say whether the government was considering any change in laws to facilitate Islamic banking, saying it’s a “larger issue”. An email to RBI asking about the steps being taken to study the proposal was unanswered...........
More innovation needed in priority sector lending: RBI
Foreign banks will bring more innovation in priority sector lending space and fill the void left by the “inefficiency” of public sector banks, K. C. Chakrabarty, Deputy Governor, Reserve Bank of India, said. “We think they will bring new products, new services and innovation. More innovation is required in agriculture and small and medium scale enterprises (SMEs) rather than in the derivatives markets,” he said at the 2nd FT-YES Bank International Banking Summit.........
Basel's impact on GDP temporary: Anand Sinha
Citing a study by the Basel Committee, Reserve Bank of India (RBI) Deputy Governor Anand Sinha said that the growth in gross domestic product (GDP) would dip by 0.22 per cent if Basel III was fully phased in 35 quarters. He was, however, quick to add that the course of GDP growth would shift back to the original path after 35 quarters.
Basel is the international regulatory framework for banks.....
Basel III's impact on GDP seen as a temporary phenomena
If Basel III is fully phased in 35 quarters the Gross Domestic Product (GDP) growth will dip by 0.22% over 35 quarters, said Reserve Bank of India (RBI) Deputy Governor Anand Sinha mentioning about at a study done by Basel Committee. However, according to Sinha after this period is over the growth path will shift back to the original trend path. Speaking at the the Financial Times-Yes Bank organised banking summit Sinha said the pursuit of financial stability has costs in terms of growth. “The concern that is often voiced is that the capital buffer on the back of much higher level of equity required in the capital structure as per Basel III would leave banks with substantially lower return on equity and it would become difficult to retain investor's interest rendering capital raising difficult,” said Sinha........
Banks may find it tough to step up infra lending: RBI Dy Governor
......Capital augmentation for banks in future could be a challenge and this could constrain them from increasing their lending to infrastructure, cautioned a top Reserve Bank of India official. According to H.R. Khan, Deputy Governor, "There are two factors limiting the ability of the banks (to lend to infrastructure sector)..........
SC refuses to stay FDI in retail, gives RBI 2 weeks to amend FEMA rules
.....The apex court on October 5 had sought the assistance of top law officers in hearing the PIL filed by Sharma against opening the multi-brand retail sector to FDI, saying there was a need for clarification since some link is missing pertaining to RBI regulation on the issue. The bench said RBI should have amended the FEMA regulations before the implementation of FDI policy and asked the banking regulator to take steps to remove the lacunae in the way of giving a final shape to the policy. "At least it can be said that it is an irregularity that is curable and as soon as amendment is brought, it would be cured," the bench said........
Read - Business Today
Why RBI may have lifted cap on loans against NRI deposits?
......Now, the RBI has lifted the cap again and allowed either the account holder or a third party to extend the balance in account. “Probably, the purpose of the limiting loan has been achieved now. It may have to do with liquidity in the system,'' he said. These loans are availed of by NRIs when they want to make investments in India but do not want to break their deposits, as it would attract penalty for premature withdrawal...........
Inflation inches up, hope of rate cut fades
.....Bank of Baroda chief economist, Rupa Rege Nitsure said, “The situation is not good and inflation is bound to remain high. It is possible that RBI will take the middle path of only lowering cash reserve ratio (CRR).” CRR is a zero interest balance that banks maintain with RBI against their deposits.......
There is a case for a cut in CRR by a further 25 basis points: Ananth Narayan
Ananth Narayan, co-head of wholesale banking, South Asia, at Standard Chartered Bank, is of the view that the Reserve Bank of India (RBI) may either cut the cash reserve ratio (CRR) or indicate further open-market operations (OMOs) in the second quarter review of the monetary policy later this month........
RBI October policy review: Relief for borrowers unlikely
A Rate cut by the Reserve Bank of India now seems more unlikely when Governor D Subbarao releases the half-yearly monetary policy review on October 30. His tough stance on inflation is likely to prevent him from cutting the repo rate, when headline inflation is at a 10-month high. Subbarao has harped on “the containment of inflation and anchoring of inflation expectations” as his primary objective.......
Hope RBI will be more benevolent with monetary policy: Arvind Mayaram
NEW DELHI: Exuding confidence that inflation would moderate by March, Department of Economic Affairs Secretary Arvind Mayaram has suggested that RBI be more "benevolent" in its monetary policy stance in wake of recent steps to help the economic growth. "We estimate that inflation will begin to moderate sometime in January and by March we will see full impact of moderation in inflation with the steps are being taken," he told Bloomberg Television in Tokyo......
The EMI club
.....In this face-off between the government and RBI, what is overlooked is the plight of those who have incurred equated monthly instalments (EMI) to either fund higher education, the acquisition of a house, or a means of transport..........
Read - Mint
STFC to foray into gold loan busines
Truck finance company Shriram Transport Finance Company (STFC) plans to enter the gold loan business from November. But the company will not compete with established players such as Muthoot Finance and Manappuram Finance, as the new service will be limited to existing customers. “We are doing this entirely for the benefit of our existing customer, so he doesn’t need to go out for a gold loan if he needs it,” said Umesh Revankar, managing director and CEO..........
Why robert vadras win
...........Instead of launching an inquiry, Deputy Governor of the Reserve Bank of India (RBI),KC Chakrabarty assures us that Kingfisher Airlines “does not pose any systemic risk tothebanking system.” Does this mean that RBI will wait until the system is at risk and then organise a bailout at taxpayers’ expense? Is it practical for the mango-people to approach the courts to ask why the watchdog failed even to bark, far from biting? .............
Read - Moneylife
Monday, October 15, 2012
RBI most known regulator among Indians: Survey
The empire strikes back
.......It is true unconventional problems call for 'unconventional policies', as RBI governor D Subbarao put it in his speech on the occasion of the US Fed governor Ben Bernanke's visit last week. The problem is, unconventional policies could lead us deeper into the woods. Most newspapers interpreted Dr Subbarao's reference to Bernanke's policies as 'praise'. But a closer reading of his speech shows the governor was much more guarded, saying, "We will not know for many years whether the policy mix followed to manage the crisis is right." .......
Time for a national financial literacy policy
.....Investments by households have been more into either bank fixed deposits, riskfree government- backed securities and low- yielding instruments, or in non- financial assets. A majority of our households do not use modern financial markets. As per an RBI report, only 1.4% of household savings was invested in equity, mutual funds and debentures in 2003- 04. Though this went up to about 4% in 2005- 06, it is still very small. Unless the common person becomes a wiser investor and is protected from wrong doings, wealth creation for the investor and the economy will remain a distant dream. We need to convert a country of savers into a nation of investors.......
Micro credit and the financial system
.....The ordinance of Andhra Government is quite explicit. " Where as these SHGs are being exploited by private Micro Finance Institutions ( MFIs) through usurious interest rates and coercive means of recovery resulting in their impoverishment and in some cases leading to suicides…." The engagement of MFIs with borrower was shallow based on " touch and move on" business models, shorn of any development content. The small loan size and short duration of the loan do not enable most borrowers to do much except to ease liquidity problems. That is why Dr.Y V. Reddy, former Governor, RBI stated that Microfinance is India's subprime. " Ultimately, it is something like subprime lending": In fact there is evidence to show that profit- making MFIs were encouraging what were called " NINJA" loans - no income, no job and no assets - in the American financial crisis of 2008.......
Read - FPJ
Panel to study role of cooperative banks
.jpg)
Bank union seeks fund for agriculture infrastructure
.....In a memorandum to Prakash Bakshi, Chairman of the National Bank for Agriculture and Rural Development (NABARD), who has been nominated as the Chairman for the Expert Committee on Short-term Cooperative Credit Structure, P.Balakrishnan, general secretary of the federation pointed out that in India the yield per acre is the lowest in the world. “Our farmers are not able to raise more than three tonnes per acre on an average either wheat or paddy, whereas in most of the Asian countries and the US, it is seven to 11 tonnes. Our farmers can grow more crops only if there is uninterrupted flow of water, and supply of good manure and good seeds, for which the Government should allocate substantially to ensure improvements in agriculture infrastructure”.......
Benchmarks may see further correction
....Already there are clamours for a rate cut from India Inc Even Finance Minister P. Chidambaram said the RBI and the Government must work in tandem to bring down interest rates. On its part, the RBI has so far been saying that targeting inflation would be its first priority. Recently, RBI Deputy Governor Subir Gokarn said the Government’s reform initiatives on growth and inflation would be considered while formulating Monetary Policy......
Let’s have banking licence on tap
............As a principle, the Indian banking regulator was not in favour of opening up the sector till February 2010, when former finance minister Pranab Mukherjee announced that a new set of private firms would be allowed to set up banks. RBI was, in fact, in favour of consolidation in the sector. After the budget announcement, the central bank got into action, but with reluctance. Which is why it took so long to prepare the draft licensing norms and, more than a year after the release of the draft norms, there is no sight of the final licensing norms. The reason behind this is well known. RBI wants the power to supersede the board of a rogue bank and this can be done by amending the Banking Regulation Act of 1949. Unless Parliament gives its nod to the amendment, RBI is unwilling to bet on a new set of banks run by industrial houses............
Firms speed up preparations for new licences, say analysts
The government’s intention to hasten issuing new bank licences has enthused some banking aspirants and analysts but many are still circumspect about the final outcome. The finance ministry is exploring ways to empower the Reserve Bank of India (RBI) to supersede the boards of banks that aren’t run properly, instead of waiting for the amendment to the Banking Regulation Act that can take a while, given the current political climate.........
New private banks
Apropos of the news story “RBI to allow four new banks” (FE, October 5), the decision should be first analysed against the performance of the existing new private sector banks that have been started over the last decade. It must be kept in mind that two banks—The Times Bank and The Global Trust Bank—were merged with other banks for different reasons. Unless the regulator, RBI, is given enhanced powers, giving licences to corporate groups, whether big or small, might not be good for our financial stability.
- Sudhir K Bhave, Mumbai (FE)
Financial advisers will need good credit score for licences
......the draft regulations required the entities seeking to get registered as investment advisers to submit details of their data processing capacity. Instead, they would now be required to submit details of their in-house and other research capabilities, the official said. The other changes to the draft regulations include the provision for appointing or authorising an ombudsman to resolve any dispute between the investment advisers and his/her clients, in addition to a dispute resolution mechanism through arbitration......
Mayaram Sees India Rate-Cut Room From Rupee Gain, Fiscal Steps
......“If the RBI is fully convinced that the steps that are being taken are credible and will result in something like that, then we hope that the RBI will be more benevolent with its policy,” Mayaram said. “It is not necessary for them to wait until March,” he said, adding they should signal before then that they will cut rates........
Read..................
Sahara judgment and beyond
......Regulation can be painful. When the Reserve Bank of India (RBI) asked non-banking finance companies (NBFCs) to get an investment grade rating in the late 1990s, there was a shake-out. Barring the soundest, many NBFCs had serious adjustment problems with the new regulatory regime. Again, when the government came down heavily on unincorporated entities — partnerships, sole traders — offering sky-high interest rates on deposits, it brought to a halt not only some unscrupulous deposit takers but even some businesses that have been in existence for long and served a useful purpose. There can be many.....
Banks also responsible for frauds through ATM
........Now an order of the Banking Ombudsman should bring cheer to consumers - it not only upholds the rights of consumers who are victim to such ATM frauds, but also rightly recognises the importance of CCTV footage in all such cases. Here, following a series of complaints alleging unauthorised debits through ATM transactions, the Ombudsman asked the banks to show the camera recording and found that in all the cases, a suspicious looking person with his face covered and having multiple cards was withdrawing money, till he cleaned out the account or the accounts were blocked by the customer or the bank...........
Sunday, October 14, 2012
Ex-RBI guv Bimal Jalan against forming of super regulator
In an interview to CNBC-TV18 Dr. Bimal Jalan, former governor Reserve Bank of India shared his views on the recommendations made by the financial sector legislative reforms commission (FSLRC) to revamp the financial sector. Dr Jalan has been named by an eminent jury and the CNBC-TV18 Editorial Board for his life-time contribution to the financial sector. The jury referred to his extraordinarily handling of the 1997 Asian currency crisis and the fact that he left the RBI with a sharp increase in reserves despite the fact that the rupee saw a near 25 percent depreciation in the five eventful years when he was at RBI...........
Revamping financial sector: Time for super regulator?
......The commission's approach paper also states that while it will ensure laws are rewritten to make regulators independent from the executives. Meanwhile, the new laws will also ensure strict accountability of the regulators by giving them measurable and non conflicting goals, for example, RBI to ensure inflation control..............
आपके सामने ये रहा अगला सवाल
आरबीआई ने महात्मा गांधी सिरीज वाले बैंक नोट कब जारी किए थे? इस सवाल के पूछे जाने के बाद पूरे हॉल में सन्नाटा सा छा गया था. दोनों टीमों के कंटेस्टेंट्स डिस्कसन में लगे थे. सवाल इसलिए भी बहुत इंपॉर्टेंट था क्योंकि इसका जवाब ही विनर्स का नाम तय करता. रिजर्व बैंक ऑफ इंडिया की ओर से ऑर्गनाइज क्विज का ये टाई ब्रेकर राउंड था. खैर कुछ देर बाद आंसर आया और इस तरह तय हुआ विनर का नाम..............
Read..........
Read..........
Inter-school RBI quiz organised in city
........Bazil Shaikh, CGM, RBI Central Office inaugurated the event along with K.R. Das,Regional Director, RBI, and UP & Uttarakhanad. In the quarter final, Boys' High School & College was declared the winner, while the team from Air Force school, Bamrauli was runner up............
RBI censures Nabard for violating RIDF norms
The Reserve Bank has taken ‘serious’ note of violations in financing of warehousing infrastructure under the Rural Infrastructure Development Fund (RIDF) scheme. The regulator made its displeasure known in a communication addressed to the chairman of National Bank for Agriculture and Rural Development (Nabard)..........
Read - HBLRBI to introduce inflation-indexed bonds soon
......H.R. Khan, Deputy Governor, RBI, explained that the capital (principal) will be adjusted (to inflation) and investors will earn interest on the enhanced capital based on the reference rate. “This (IIBs) is being discussed between the joint group of the RBI and the Government. It will be notified soon,” said Khan at a capital markets summit organised by FICCI.......
RBI to issue Rs 50 notes with rupee symbol
.....“The RBI will shortly issue Rs 50 denomination banknotes incorporating rupee symbol, with inset letter ‘R’, in the Mahatma Gandhi Series—2005 with improved security features, bearing the signature of D Subbarao, Governor RBI,” the bank said in a statement.........
Good news at last, but will RBI blink?
In what is a serving of good news, industrial growth showed a marginal pickup while retail inflation dropped below double-digit levels. India’s factory output, led by manufacturing, grew 2.7% in August, while retail inflation dropped to 9.73% in September. But the big question is whether it is sufficient to convince the Reserve Bank of India (RBI) to cut key rates at its policy review due later this month..........
Priority lending for off-grid solar products will boost solar industry growth: Ashden founder
CHENNAI, OCTOBER 13:
The recent decision of the Reserve Bank of India to include loans given by banks to individuals for purchasing off-grid solar products will be a major growth driver for the solar industry, says Sarah Butler-Sloss, Founder-Director of Ashden. Ashden is a London-based not-for-profit organisation that seeks to promote universal access to sustainable energy. Sarah Butler-Sloss, a philanthropist and an internationally recognised authority in the field of green energy, was in India to take part in the International Seminar on Energy Access that was held in New Delhi a few days back. In July the RBI included “loans sanctioned by banks directly to individuals for setting up off-grid solar and other off-grid renewable energy solutions for households” under ‘priority sector’ loans........
Read - HBL
Next budget to focus on investment, cutting expenses: Chidambaram
Tokyo: After announcing a slew of reform measures to revive growth, India's Finance Minister P Chidambaram has indicated that the Budget for 2013-14 would focus on cutting wasteful expenses and promoting investments. "We must have a budget that emphasizes fiscal consolidation and incentivizes savings, promotes investment and cuts out wasteful expenditure," he told a TV channel in Tokyo yesterday. However, he added the government's key social welfare programmes will be fully protected. Chidambaram and Reserve Bank of India Governor D Subbarao are here for the IMF-World Bank meeting.
Mix risk with safety for retirement
.............The RBI targets an inflation rate of 5 per cent based on the Wholesale Price Index (WPI). If the RBI consistently achieves its target, the purchasing power of the rupee will halve in 14-15 years. That is, you will need Rs 200 in 2026 to buy the same goods and services that Rs 100 can buy today. In practice, the RBI has never achieved its targets consistently. Inflation has run at 7-8 per cent through the 21st century. Hence, the value of the rupee tends to halve roughly every 9-10 years. Let’s assume that this rate of 7-8 per cent will remain the long-term trend............
IRDA gives banks options in bancassurance
The Insurance Regulatory and Development Authority (IRDA) has come put with a revised set of draft regulations on bancassurance tie-ups under which banks can sell insurance products either as a corporate agent or a broker for insurance companies.............
Recent reform measures a good beginning: Kochhar
TOKYO, OCT 13:
The Government’s recent measures are a good beginning to improve the investment climate, ICICI Bank’s Managing Director and CEO Chanda Kochhar said here today. ”...some of the measures that have been announced by the government (of India) in the recent past is a good beginning to start improving the investment climate,” she said at a seminar on ‘The Role of Asia in a Changing World’ on the sidelines of IMF-World Bank meet here........
Chidambaram calls for 'calibrated risks' from RBI
........."Decision making in life is about taking risks. That's my view," Chidambaram said. "But I'm not the governor.".............
FM tells RBI to cut rates, again, almost
This time, it’s more straightforward. Finance minister Palaniappan Chidambaram said interest rates “must come down”. If that sounds like an order, it is. The usage of ‘must’ as a verb is unlikely to be lost on Duvvuri Subbarao........
Swap rates curve suggests RBI may ease interest rates
.....The RBI holds its next quarterly policy review on Oct. 30, and many economists believe it will keep its policy repo rate unchanged at 8.0 percent, due to concerns over an inflation rate that is the highest among major Asian economies...........
Read - FE
The interest in growth
...... Other reforms steps have been initiated even if Parliament may not pass all of them. And the moves on GAAR, on retrospective taxation, on retail-FDI among others have excited investors—the National Investment Board is another such, but has to demonstrate its effectiveness. In which case, RBI can’t take refuge in the old argument that the government wasn’t doing its fair share of the heavy lifting.......
Read - FE Editorial
Goa chamber of commerce and industry wants RBI to draw up package
PANAJI: The Goa chamber of commerce and industry (Ghas urged the Reserve bank of India to draw up a package for rehabilitation of people adversely affected by the stoppage of mining in Goa.........
Aphro Trust MD, aide arrested in Bangalore
...CCB police had issued a lookout circular against Yesudoss for violation of RBI guidelines and collecting money after offering people bank loans. All airports were alerted to prevent Yesudoss from leaving the country. Investigators earlier froze 14 accounts operated by Yesudoss and other trust members in three private banks............
Friday, October 12, 2012
Gopalkrishna, Gandhi in race for RBI Dy Governor Feb 2013
RBI to open branches in Union Territories soon
.....While Puducherry is governed by Regional Office in Chennai, Lakshaweep is controlled from Thiruvanandapuram. Similarly, The Regional Offices at Mumbai and Ahmedabad control the Union Territory of Goa and Daman & Diu and Dadra and Nagar Haveli respectively. The new proposal is expected to bring the functioning of banking sector in Union Territories under the effective monitoring of the RBI.........
Read - The Hindu
Panel set up to speed up financial inclusion
Amid slow progress in bringing the entire population under banking network, the RBI today announced setting up of a high level committee to “spearhead” efforts to ensure accessible financial services in the country. The Financial Inclusion Advisory Committee (FIAC) under RBI Deputy Governor K C Chakrabarty is expected to suggest appropriate regulatory framework to ensure that financial inclusion and financial stability move in tandem, the RBI said in a statement............
RBI Chief Hails Fed Chairman
.....Subbarao welcomed Bernanke's "unconventional policies" and demonstration of the "enormous range, depth and power of the central bank policy arsenal" to deal with the worst US downturn since the Great Depression in the 1930s. "As a central bank, we empathise with the Fed's concerns. The (economic) crisis has pushed central bank policy-making into uncharted territory," Subbarao said in a speech released on the RBI website............
RBI assigns lead bank role for Chhattisgarh's 9 new districts
The Reserve Bank of India on Wednesday said that it has assigned separate lead bank responsibilities to SBI, Dena Bank and Central Bank for nine newly carved districts in Chhattisgarh this year..........
CRR debate
Apropos ‘Banks should learn to live with CRR’ (Business Line, October 10), there is certainly some substance to a few bankers asking for either complete abolition of CRR, or as an alternative, payment of interest on CRR deposits. Money held as CRR is dead money. Our Finance Minister has gone on record saying that the RBI should pay interest on CRR up to 7 per cent. Australia, Canada and Sweden do not have any CRR. In the US, it is applicable only on transaction deposits and not on time deposits. Maybe, RBI can think of different CRR rates for different banks, depending upon their lending character.
- V Sasthamani (HBL)
'Majority change mind on fin products post online research'
........"While the final purchase of the product or service is still done offline – internet research influenced 2 out of 3 applications - with 24 per cent users buying/applying online, 70 per cent applying offline and 38 per cent buying offline influenced by online," the report said........
Read - Express India
Bounced cheques: SC ruling makes prosecution easier
......It has been observed lately that the trend of reversing important judicial decisions has been on a rise i.e. a decision is reversed due to a difference in the opinion of the different benches presiding over matters pertaining to the same question of law and sharing the same background as to the facts of the case. Such a practise is being adopted more often by the Supreme Court, which being the highest court of law is regarded as the epitome for all legal issues......
Fake notes, higher quantity and better quality
......Reports from the RBI show many seizures have been from banks and sometimes from the RBI itself. Of the total seizure in the first half of this year, the RBI accounts for Rs 10.47 crore more than police and other agencies do. It is a measure of the high quality of the notes that they have been penetrating banking channels.......
Currency note
.....RBI's instruction to deliver currency notes to hill districts by-road instead of helicopter was deliberated during the meeting which was also attended by RBI officials......
Coming soon: Automated cash deposit machines
Soon, you may be able to deposit cash in specially designed ATMs and get an instant alert on your cell phone confirming immediate credit to your account. Banks are exploring options for automated cash deposit machines, after tasting success in allowing cash withdrawals through ATMs. At least, two public sector banks – State Bank of India and Punjab National Bank - are testing such facilities here, inform sources in the know..........
Lucknow presents 2,000 years of numismatic history
..........“We are India's largest numismatic firm and first numismatic auction house. This is our 66 th auction in India,” he claimed. One of the earliest and rarest banknotes in Indian monetary history will also be put up for auction...........
S&P ratings
This refers to the report “Again, S&P warns of lowering India’s rating” (Business Line, October 11). The Indian media should have understood the game agencies like this play. The release of this report, about which Standard & Poor’s later clarified to media that “….we did not issue or announce anything on India sovereign rating today. We simply published our regular Asia-Pacific sovereign report card, which does not have any new information on India’s rating”, coincided with the visit of Fed chief and US Treasury Secretary to India. Despite the clarification, the release dampened the mood of India Inc. and the bourses in India.Dwelling on the politics and economics of UPA II, the rating agency laments about matters which an external agency should not be worrying about.
- M.G.Warrier (HBL)
As NPAs rise, stress on bank assets to stay for 12 months
......Data released by the Reserve Bank of India (RBI) earlier this month showed that NPAs in the banking system were the highest in the past five years. Net NPAs rose sharply to 1.28 per cent in 2011-12 from 0.97 per cent a year ago. However, there are a few bankers who are of the view that the incremental NPAs will be lower. “I am not saying that NPAs will come down. But the incremental NPA formation in the quarters going forward will be.............
Ease ECB norms for 2G auction: DoT to RBI
............The department of telecommunications (DoT) had asked the finance ministry to ease the ECB guidelines to enable for financing for telecom companies for the upcoming 2G auction that is scheduled to begin from November 12. Now the finance ministry has in turn written to the Reserve Bank of India (RBI) requesting for a one-year window for refinancing rupee debt via ECBs by telecom companies for the upfront payment..................
Forget Chidu, RBI and Sebi must probe DLF and Vadra
......The question is whether Sebi and RBI are going to get into the act, given that they are independent regulators and have no need to follow the finance ministry’s diktat on Vadra’s private status. Neither RBI nor Sebi can abdicate in this case.
Deposit growth is not at all satisfactory & that is a challenge: D Sarkar
What is your outlook on lending rates and deposit rates?
We had reduced our base rate in May. We are looking at inflation numbers and also waiting for RBI to announce the further course of action. In the course of time, there are chances of reduction in the cost of deposits, as well as lending............
Freebie boost for new home loans
.......RBI had earlier cautioned banks saying that a higher-than-expected hike in interest rates could have an adverse impact on their asset quality. "We have asked banks to ease lending to the sector as it is critical for the revival of the economy, they have started the process and in the next few months things are set to become better," said a senior finance ministry official who refused to be identified.
Subscribe to:
Posts (Atom)