..........Besides, the former Reserve Bank Governor Y V Reddy -- who took part in a panel discussion here -- hailed the recent decisions on economic reforms taken by the government. "I think the measures that have been announced in the recent past have added to good sentiments," Reddy told reporters on the sidelines of the event.
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Thursday, October 18, 2012
Rise of rupee leads to cash shortage in local banks
With the rupee appreciating, a cash shortage has once again hit banks, as seen in their overnight borrowings from the repurchase window of the Reserve Bank of India (RBI)............
Read.........
Banks’ 2012/13 loan growth may fall short of RBI projectio
.....Banks’ advances grew 2.2 percent to 48,093.84 billion rupees as of October 5 since the start of the fiscal in April, data from the Reserve Bank of India showed on Wednesday. In the year-ago period, loans grew 7.1 percent..........
Read........
Overheard: What Ben and Subbarao schmoozed about
.......RBI Governor D Subbarao would have had a tete-a-tete with Ben Bernanke. Two central bankers coming together have many things to talk about and it would have been a private conversation. Assuming one had overheard the conversation and reproduced a part of it it, it would have been as follows............
Read.......
India Inc wants RBI sentiment booster
Apart from rate cuts, the representatives of industry bodies and exporters' organisations that met the Reserve Bank top brass today sought various sector-specific measures in the monetary policy review. Governor D Subbarao would announce the second quarter monetary policy on October 30. While there is a growing optimism that he may go along with the government following the reforms rolled out in the past one month, the latest inflation numbers may act as spoilsport........
Read - Indian Express
RBI may not go for rate cut in view of inflation: Parekh
The Reserve Bank may find it difficult to cut interest rate in its second quarter monetary policy review later this month in view of high inflation, HDFC Chairman Deepak Parekh said today. "Inflation numbers have marginally tweaked up. It is very difficult for RBI to cut interest rates. I don't think this time interest rates will come down because (inflation) numbers don't justify reduction," he said.........
Wednesday, October 17, 2012
Aiming for growth without tears
........It is in the above global and local contexts that Growth With Financial Stability is refreshingly timely. The book, which is focused on India and offers extensive and detailed analyses, is written by Rakesh Mohan, perhaps best remembered as a former Deputy Governor of the Reserve Bank of India (RBI). Mr Mohan is not new to policy making, but it was the second (2005-2009) of two stints at the central bank when he seemed to come into his own.............
Prof Acharya nominated to RBI board
In exercise of the powers conferred by clause (c) of sub-section (1) of Section 8 of the Reserve Bank of India Act, 1934, the Central Government has nominated Prof. Damodar Acharya, as a Director on the Central Board of Directors of Reserve Bank of India for a period of four years with effect from October 12, 2012.
Read - Brief profile
DPS win RBI quiz
BHOPAL: Delhi Public School (DPS) Bhopal won the Bhopal leg of the inter-school quiz contest organised by the Reserve Bank of India(RBI) on Monday. Organised at Campion School Auditorium, Arera Colony, the quiz was a part of the bank's objective to spread financial literacy among school going children to understand the bank and banking system. The program was inaugurated by P R Ravi Mohan, Regional Director, RBI, Bhopal. Piyush Trivedi, vice chancellor, Rajiv Gandhi Proudyogiki Vishwavidyalaya (RGPV) Bhopal was the chief guest. The quiz was hosted by quiz master Ryan Shaw and his team.......
Follow the rules of the game
........ the Supreme Court has suggested to regularise the position by requesting the Reserve Bank of India (RBI) to amend the Foreign Exchange Management Act (Fema). This was all the apex court could do to salvage the situation for a government that is already in the dock. UPA-II’s fire-fighting team should take the message of the Supreme Court ruling, that is, to follow the rules of the game in what it wants to do. The court must have been sadly aware that it might be odd to ask RBI to amend regulations in the Fema to regularise an executive decision of the government — which should have been issued after consultation with RBI...........
RBI launches inquiry Into APSMFC scam
The Reserve Bank of India (RBI) officials on Monday started an inquiry into the bank accounts of the scam-hit Andhra Pradesh State Minorities Finance Corporation (APSMFC). The state minorities welfare department had written a letter to the RBI requesting them for recovery of money from Vijaya Bank, where APSMFC has its account. The department officials told Express that the inquiry would be completed in the next few days............
RBI to set aside funds for buying illiquid gilts
The Reserve Bank of India (RBI) is working with the government to set aside funds for buying illiquid gilts from the market. “Over a period of time we will have some budget where we will try to repair some of those securities in which volumes are low, and create volumes for those securities which have higher volumes,” said Harun Rashid Khan, Ddeputy Governor, RBI, on the sidelines of a banking summit organised by the Financial Times-YES Bank on Tuesday........
NBFCs, infra finance cos ask RBI to relax ECB norms
....Financial market players like NBFCs, the Finance Industry Development Council (FIDC), the Fixed Income Money Market and Derivatives Association (Fimmda), Foreign Exchange Dealers' Association (FEDAI), the Primary Dealers Association, among others, met the RBI top brass, including Governor D Subbarao, this evening at the customary pre-policy meeting. "We requested the Governor to look at relaxing the ECB (external commercial borrowings) norms for NBFCs and asset financing companies," FIDC Director General Mahesh Thakkar told reporters after the meeting........
Forex market intervention only on severe volatility: Khan
The Reserve Bank will intervene in the forex market in case of extreme volatility of the rupee as it has done in the past, RBI Deputy Governor H R Khan said here on Tuesday. “(When) there are extreme situations where there is extreme volatility...we have intervened in the past. If there are cases of extreme volatility, we will also intervene in the future,” Khan said on the FT—Yes Bank event......
Read - HBL
Government's fiscal policy, RBI steps have to be in tandem: HR Khan, RBI Deputy Governor
..............Despite government pressure on the RBI to ease monetary policy, most market participants expect the central bank to leave rates unchanged at its policy review on Oct. 30, due to concerns over inflation and the fiscal deficit. "As we have articulated time and again, it (monetary policy) has to be in tandem with the fiscal policy," HR Khan, a Deputy Governor of the RBI, said in answer to questions levelled during a banking conference. "It has to be a joint venture. It is not a solo play. Fiscal deficit is one major concern in the macroeconomic scenario so that has to be handled ... Supply-side response is also needed for inflation management." .........
Credit where due
......The RBI analysis is also candid about the fact that for the miniscule section of small enterprises that gets bank finance, prime lending rates start at 16 per cent. In other words, they have to generate returns of at least 20 per cent or more to service their loans. With such a high cost of capital, it is obvious the units regularly make the choice to either bleed their labour or their capital instead of attempting a fresh loan, even when they want one.........
Co-op. bank sets itself Rs. 300-crore deposit target
.......Addressing a media conference here, bank chairman and secretaries T. Ramanjaneyulu and C.V.S. Subrahmanyam respectively allayed the fears of customers following allegations against the bank in recent times. They also cited some of the reports in a section of media on the functioning of the bank. “Reserve Bank of India, which is the custodian of the depositor or customer, is safeguarding the interests of the public and we are abiding by the rules. We are working in accordance with the rules of the RBI and partly by the co-operative department,” said Mr. Subrahmanyam..........
Not considering merger or acquisition of any bank: ICICI
........With reference to the news item appearing in a leading financial daily titled "ICICI Bank looks to acquire Karnataka Bank", ICICI Bank Ltd has clarified that the Bank is currently not considering merger or acquisition of any bank........
Home loan interest rates: Games banks and financial institutions play
.....Now let us look at reasons that banks often point out for doing this and not adjusting rate of interest for all customers. Though banks do not have a very tangible answer for this they try to provide some answer which sounds logically flawed but hardly draws the attention of the regulator i.e. Reserve Bank of India (RBI) .The most unacceptable logic given is that since the cost of borrowing for banks for existing customers is high, they cannot pass on the benefit of reduced rate to existing customers. Hence they make the benefit available to new customers. This logic seems totally flawed.............
Bland analysis of sugar sector - A.Seshan
.....I am not happy with the analysis of cane arrears in the Report, having dealt with the matter during my days with the Reserve Bank of India (RBI). Referring to the issue, the Thorat group made the statement that the mills had several problems such as being unable to arrange for bank credit, though it did not provide any supporting evidence. Cane arrears persisted even in years when banks complained of a lack of credit demand and made excess investments in SLR securities........
First rate cut by RBI unlikely before Feb 2013: Sujan Hajra, Anand Rathi
........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...........
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.............
Subscribe to:
Posts (Atom)