.......................Moreover, many leading policy makers in India, notably among them C. Rangarajan, have discussed the implications for the poor and have strongly advocated ‘inflation control’ as an effective anti-poverty policy. The recent slowdown in inflation is encouraging but the time may not be ripe to press the growth accelerator. Surely, the RBI without any pressure from North Block and the industry lobby will do a better job.
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, February 18, 2013
Reserve Bank of India sees inflation risks, limited room to ease policy
........"At this moment there is room for monetary easing, but that room is limited ans we have to make a careful judgement on how to use that limited room," Subbarao said on the fringes of a meeting of Group of 20 finance ministers and central bankers. India's high fiscal and current account deficits, in addition to inflation risks, are deterrents for further monetary easing, which is seen necessary to support sagging GDP growth.........
RBI has a positive approach towards Islamic banking: Minister
The Reserve Bank of India has taken a positive approach to the suggestion of an alternative banking system for Muslims, subject to certain laws being amended first, K. Rahman Khan, Minister for Minority Affairs, said here recently. “I have written to the RBI Governor, invoking Section 25 of the Constitution, saying that it was the duty of the State to facilitate every citizen to practice and follow his/her religion,.........
Banks are duty bound to stop flow of fake notes
....... In other words, the banks are duty bound to ensure that no counterfeit note comes out of an ATM. Yet, you find banks violating this directive and the consumer suffers because invariably banks refuse to take responsibility for their negligence, in clear violation of the RBI directive. In fact, they refuse to accept that the fake note came out of their ATMs and express their ‘inability’ to replace the fake with a genuine note.........
Bank unions to join general strike
.....The call for a countrywide strike has been given by the United Forum of Bank Unions (UFBU), comprising nine national level unions including the AIBEA, the NCBE, the BEFI, the NBEF, the NOBW and the AIBOC. Even though bank managements have decided to stock adequate cash in ATMs, normal banking operations are likely to be affected. A number of banks have already informed customers of the fallout of the proposed strike.....
Post Libor scam: Financial markets to move away from 'polled' to 'traded' rates, may fix Mibor
......The Reserve Bank of India (RBI) and commercial banks have arrived at some consensus to gradually move away from 'polled' rates that may be prone to manipulation, to 'traded' rates in calculating the daily benchmarks in the currency and money markets. "At a meeting with the Reserve Bank a week ago, banks were told to give their views. The general preference was that the two most liquid benchmarks,Mibor and RBI reference rates, should be based on dealt rates," said the treasurer of a large bank. "The regulator is favourably inclined towards the change... it will happen over time.".......
'Rate cut likely in March if budget addresses fiscal issues'
The RBI is likely to cut interest rate in its next policy meet on March 19 provided government delivers a "credible budget" addressing fiscal consolidation and continues with the reform push, an HSBC report says. "The RBI is likely to take some comfort from the decline in WPI inflation. In turn, this has increased the odds of another rate cut in March, if Delhi continues to deliver its bit," HSBC said in a research note.............
$1-bn India Venture Opportunities Fund remains non-starter
.....Bankers said the fund had received just about Rs 500 crore. Of this, Rs 340 crore has been invested. This includes Rs 140 crore investment in subordinated debt of companies. The fund faces the challenge of asset-liability mismatch and reservations from the Reserve Bank of India (RBI) about using depositors’ money for risk capital (investments in equity), said an executive with a public sector bank.......
How credit card frauds take place
.....So, does this mean you should stop using your card? No. Come July, cards with an embedded chip and a compulsory pin (like that used for ATM transactions) will be made mandatory in India. This would make your credit card transactions more secure. Till then, here are a few things to keep in mind........
Bank charges you may not know about
.........It’s a laundry list which you will be better off reading and knowing about, saving you the surprise of unexpected costs. But in the meanwhile, here’s a heads-up on some of the more unusual bank charges on regular bank accounts.........................
Sebi seeks greater powers
Market regulator Sebi has sought major overhaul of the securities laws, including greater authority to nail manipulators by way of powers to conduct ‘’search and seizure’’ operations and to demand information from any person in relation to its probes. It has also proposed the recovery of monetary penalties through income-tax arrears mechanism, setting up of special courts to deal with criminal prosecution for violation of securities laws and recognition of Sebi’s counsels as public prosecutors..........
Banks will Hire over 56,000 Jobs in 6 Mths
Public
sector banks, from State Bank of India to Allahabad Bank, will hire as
many as 56,500 people in the next six months in the highest ever
recruitment by the industry in more than a decade as business grows and
the threat of new banks looms with the Reserve Bank of India planning to
issue new licences soon. The recruitments by more than a dozen banks
will be 30% higher than last year’s numbers as hopes of business cycle
turning for the better grow, bankers said............
Read - ET
Read - ET
Saturday, February 16, 2013
Principles for financial market infrastructure and innovations in retail payment systems – some perspectives
 |
Inaugural address delivered by Mr H R Khan, Deputy Governor of the Reserve Bank of India, at the International Seminar on Principles for Financial Market Infrastructures and Innovations in Retail Payment Systems organised by the Reserve Bank of India, New Delhi, 14 February 2013 |
..............Although the urge for replicating the successful payment systems of other countries in one’s own country is very high, it is necessary to customize the processes and products as per the suitability to the country keeping in view particularly the socio-economic and cultural distinctiveness and the regulatory and institutional aspects Regulators need to assess effectiveness of different payment products in their jurisdictions by the authorized entities to ensure that they suit the needs of the common people, the complexities are understood by them and they have inbuilt provision for consumer protection.........
RBI to train police in NE states in fight against fake inst
GUWAHATI: The Reserve Bank has drawn up a comprehensive programme to train local law enforcement agencies, especially the police force, in the North Eastern states to take on fake institutions and fly-by-night operators. "We are in talk with the Chief Secretaries (of North eastern states). This is one of the action points which our Governor has pointed out...
"... that in consultation with chief secretaries chalk out a training programme for police personnel who do not know the nitty gritties of the legal implications," RBI Regional Director P K Jena told reporters here today. ......
Fraud-proof Credit Cards may Cost More
With
the Reserve Bank of India asking banks to issue chipbased credit cards
to new customers to prevent possible fraud, the annual fee for using
them is set to rise in the coming days. The central bank, which is
drafting new guidelines for issuing cards and wants additional security
features thrown in, could even tell banks to give the customer the
option to choose from a “valid only in India’’ credit and debit card..............
Read - ET
Read - ET
Clarification
I am surprised to see my article entitled " RBI, backdoor financier?" included in today's edition of your news circular. It is a reproduction of an old article published in Business Standard on November 5,2011, as indicated therein. However, the Business Standard masthead carrying the date as February 15, 2013 is likely to confuse the reader into thinking that it is a new write-up by me. The RBI policy review mentioned in the first para may be misconstrued as referring to the latest one. I shall be thankful if you issue a correction in tomorrow's edition. I am anxious that the very useful Vitalinfo should not suffer from any infirmities and should remain authentic in carrying the latest news.
Thanking you and with best regards,
Sincerely
Seshan
VITALINFO sincerely regrets for uploading the old article. As rightly pointed out by you, it happened due to the newspaper masthead carrying the current date. The work of searching, reading, shortlisting the info items, cross-checking the references, looking for photographs, if not included in the original articles/news, processing, uploading is all done daily from 4 a.m. and expeditiously completed before 7.30 a.m. While utmost care is taken, such type of error may occur. Thanks for the clarification and sincere apologies for inconvenience caused to you.
RBI opens extra counters for I-T deposition
........Income tax can also be deposited at three branches of private banks. The names of private banks will be displayed at RBI with other information about tax deposition. Deputy General Manager, Banking, Rajeev Dwivedi said that the depositors can take advantage of these arrangements.
Interest rate cut by RBI on March 19 likely: BofA-ML
With inflation easing to a three year low and growth taking a hit, the Reserve Bank (RBI) is likely to reduce policy rates by 0.25 per cent on March 19 when it will carry out the mid-quarter review, says a report by Bank of America-Merrill Lynch. Bank of America-Merrill Lynch (BofA-ML) today said with possibility of GDP numbers coming down to below 5 per cent for the December quarter, the Central bank may shift its stance to supporting growth from containing inflation.........
Cooperative banks set to go for computerization
RANCHI: Cooperative banks in the state are gearing up for a major overhaul with the decision of the government to go for computerization of all the bank offices and linking them to core banking solutions (CBS). Having completed the computerization of 96 out of 120 bank branches of the eight central cooperative banks, managing director of the Jharkhand state cooperative bank K K Soan, has requested the government to take up the matter of pending dues with Bihar government so that further modernization is not crippled owning to fund crunch............
Lokayukta to probe irregularities in recruitment to Co-op Bank
............Balakrishna pointed out that several candidates who had scored poorly in the written examination held for the recruitment process had received the appointment letters. On the other hand, a candidate who had secured first place in the written examination had failed to make it to the final list. “There are gross irregularities in the entire process. Injustice has been done to hundreds of merit candidates,” .................
SBI official sees ‘magical effect’ after repo rate cut
State Bank of India Deputy General Manager Hannah Rachael Mani on Friday observed that the RBI’s cut in its key policy rates in the last week of January has started showing some ‘magical effect’ on the economic activity in different spheres. Addressing a media conference here, she said the volumes of car and home loans registered a three-fold increase in the.........
SBI board approves capital infusion
...The government’s latest capital infusion, which was proposed on 19 January, will take SBI’s tier-I capital, or core capital, to 10%, SBI chairman Pratip Chaudhuri told reporters in a conference to discuss the bank’s third-quarter results on Thursday......
Friday, February 15, 2013
Need for uniform security standards to check card fraud: H R Khan
Incentivise usage of electronic payment systems before dis-incentivising usage of cheques
......A discussion paper on “Dis-incentivising Issuance and Usage of Cheques” (available for comments up to 28 February 2013), put up by the Reserve Bank of India (RBI) on its website, is a classic example of putting the cart before the horse. Because there are problems galore in the electronic payment system, and even before stabilising this, the RBI wants to dispense with the cheque system. If the same objective of reducing usage of cheques can be achieved by incentivising the usage of electronic payments, why not try this positive method, which has more acceptability and receptivity, instead of going in a negative way for achieving the same results?.........
RBI: Retail payment innovations a challenge
.......“The retail payment systems today are dominated by continuous innovations, aided by breakthroughs in technology. This has brought immense benefits, in terms of new products and delivery channels. At the same time, this has engendered concerns for regulators across the globe,” ..........
My View on "Islamic Banking – Participatory, Equality & Indian law"
Thanks for posting a very impressive and unbiased article on the subject of Islamic Banking. I hope you would be providing more of such material in future.As I have been a PG Diploma holder in Islamic Banking and Finance from an Institute at Hyderabad, I find this article very interesting
- A F Nqaqvi, Banking Obudsman (MP & CG)
RBI, backdoor financier? - A.Seshan
.....For a long time, the Centre had unlimited access to the spigot of money creation by RBI. Its excess borrowings from the central bank were automatically transformed into treasury bills owned by the latter. This arrangement was supposed to be terminated after an agreement between RBI and the Centre under which the Ways and Means Advances System (WAMA) was devised with penalties and .......
Gentle soul no more.........
- Arthur J. Lewis. Secretary,
RBI EMP. LAXMAN CHS.
LTD.
I.C. COLONY, LINK ROAD,
BORIVILI (WEST), MUMBAI-400
103
'Decline in inflation is encouraging'
.....“Inflation is still above the RBI’s comfort level, and it should come down further. The figures reflect that inflation is coming down. This is definitely encouraging,” said Montek Singh Ahluwalia, Planning Commission Deputy Chairman, here on Thursday. Worryingly high inflation has been a cause for the Reserve Bank of India’s reluctance to cut interest rates in order to stimulate investment and spending........
Inflation falls. That’s bad news
......................To be sure, one can expect the RBI Governor Duvvuri Subbarao to cut rates to revive the economy when he reviews monetary policy in mid-March. He may even surprise with a pre-policy cut. “But,” said said an economist with a foreign bank who did not wish to be named, “for rate cuts to have a meaningful impact on the economy, it takes a huge lag of 6 months or more.” It’s not a very comforting picture, in the interim.
RBI allows Apollo Tyres to raise FII investment limit to 40 per cent
......RBI today notified that Apollo Tyres has passed resolutions at the board of director's level and a special resolution by the shareholders, to enhance the limit for purchase of its equity shares and convertible debentures by FII through primary market and stock exchanges, under the Portfolio Investment Scheme up to 40 per cent of paid up capital," the bank said in a release...........
Time to act
....This brings down the curtains on the two illegal companies that raised huge amounts of public deposits without regulatory nod. Sahara was once pulled up in 2008 when the Reserve Bank of India (RBI) ordered it to wind up Sahara India Financial Corporation (SIFC), another company from the Sahara stable. The group subsequently claimed that the RBI killed their financial inclusion-based residual non-banking finance company (RNBFC) activities and gave them seven years to repay depositors, which, according to Sahara, was cleared in four. Interestingly, in June 2011, Sebi ordered its two other companies — SIREC and SHIC — to repay the money raised from fraudulently issued optionally fully convertible debentures. ............
Banks are skating on thin ice
.....Rising NPAs, along with the other systemic deteriorations, will bring down the capital adequacy, exacerbate the need for capital and impair the capacity and confidence to lend. As capital adequacy of banks declines, capital requirements will be higher, in addition to the need for regulatory compliance. This will impair lending growth causing a further weakening of an already anemic macro growth. RBI may like to hide all this under the garb of an adequate overall sector-wide capital adequacy ratio of 14%. This is neither correct nor sustainable. The average figure is very misleading here. Indeed, it has no meaning because......
Subbarao will keep a sharp eye on Chidambaram's budget
Reserve Bank of India (RBI) Governor Duvvuri Subbarao has all along talked about the need for a sustained decline in inflation and a faster and more credible road-map for fiscal consolidation, especially of the fiscal and current account deficits. That was the prerequisite to slash interest rates. ....................................
Infuse more capital, allow inflation-linked bonds
....Suggestions made by an RBI group on gold-backed financial products, which could include allowing banks to offer gold deposits in demat form and developing the gold loan market, could be the way forward. Introduction of inflation-linked bonds can also help in curtailing the gold demand. Considering that the investment needs of the economy are large in comparison to the existing financing capacity of the banking and non-banking sectors, combined with greater capital requirements for banks under Basel III norms, there is a need for more capital into the banking system. ......
Libor fallout: RBI takes a re-look at Mibor
..............The issue was also discussed at a seminar organised by the Fixed Income Money Market and Derivatives Association of India (Fimmda) and the Primary Dealers Association of India in the first week of February in Sri Lankan capital of Colombo. RBI should probably take up a role in fixing the Mibor so that a Libor fixing scandal like situation can be avoided with the Mibor,”..........
Financial inclusion stumbles on 'last-mile' gap
......Initially, the BC model was rolled out bilaterally, with banks appointing their BCs all over the country, under contractual terms. The BCs made all point-of-service investments, in kiosks and human interfaces, and had autonomy in selecting the technology platforms. Over time, this resulted in a diversity of captive networks, which remained largely non-interoperable and disconnected, thus preventing any benefits of pooling and scale. A fundamental challenge of the BC model has been the watered-down service menu: no passbook facilities, no provisions for joint account opening, minimum age for account holders, which created the impression of a discounted second-grade service compared to the real bank interface. BC staffers also tend to be paid less than bank employees, which results in low quality and high staff turnover........
Why the rupee remains a concern
....This exchange rate policy is advisable in ideal conditions, but the present conditions are a lot different from those that find mention in the textbooks. The exchange rate policy, therefore, needs a critical examination. Writing in The Hindu Business Line on 24 January, former Deputy Governor of RBI S.S.Tarapore noted: “With the inflation rate persistently above that in major industrial countries, the rupee is clearly overvalued. Adjusting for inflation rate differentials the present nominal dollar-rupee rate............
My View on "Chidu-nomics - the threat within":
Those who are in charge of policy formulation for financial sector will do well to keep in the back of their mind the following observation made by Sukhmoy Chakravarty in 1986: “In a mixed developing economy, there is considerable scope for direct controls for matters which pertain to basic necessities of life. But equally clearly there are major areas of economic life where a variety of indirect methods of regulation may be usefully deployed. I believe that monetary policy is only one amongst these methods of regulations. It is somewhat simple minded and may therefore be misleading to expect a solution to India’s most pressing problems of growth and poverty from any monetary policy, howsoever judiciously devised. But it is even more dangerous to indulge in the feeling that ‘easy credit, low interest rate’ policy contains the major answer to India’s pressing problems of growth, poverty and self-reliance.”(Excerpted from Sir Purushotamdas Thakurdas Memorial Lecture,1986) Sixteen years have not in any way reduced the relevance of the above statement.
- M.G.Warrier
Budget 2013: UPA's fiscal mismanagement has weakened India's economy
.....The political difficulty in rolling back what was meant to be temporary spending to boost a troubled economy made it a long-term challenge to manage the deficit. Former RBI governor Y.V. Reddy highlights the distinction between the structural and cyclical aspects of the fiscal deficit. In his book Economic Policies and India's Reform Agenda, he suggests the stimulus package has become a structural problem. "There is, perhaps, a structural deterioration in the fiscal situation," he writes. "The nature of stimulus has been such that the consumption expenditure and the committed expenditure have increased." In a recent interview with Business Today, he emphasised that a stimulus was something that would be withdrawn. He said: "You have to make a distinction between stimulus [and structural issues] - something you can do now and remove in normal circumstances.".....
Call to approve microfinance institutions bill at the earliest
.......The RBI has left it to the discretion of bankers to fix interest rates, but was keen to ensure that customers' interests were not compromised, said R Sandeep, DGM (rural planning & credit), RBI. Women, who availed loans from micro finance institutions, shared their success stories during the convention.
RBI makes gold deposit scheme more attractive
....It further said the banks would not be required to obtain prior approval of RBI for introducing the scheme. However, they would be required to inform the details of the scheme, including name of branches operating the scheme, to the central bank.......
Will rise in 2013: World Gold Council
......On the report by the committee appointed by RBI to check gold consumption, Mr. Grubb said, “The report is a sober assessment of the Indian gold market. It has recognized gold as an essential asset in the Indian context and the issue is of how to mobilize idle reserves and put it to use. There have been three hikes in import duty and I do not foresee any more action.”.....
RBI tweaks gold deposit scheme provisions
....According to the estimates of K U B Rao Committee, about 20,000 tonnes of gold is lying idle with people. The central bank wants to channelise the idle gold for productive purposes and also check unbridled gold imports. From now on, banks will not need to obtain prior approval from RBI to introduce the scheme. However, they would be required to inform the central bank of details such as the names of the branches that operate the scheme......
RBI cancels licence of Abhinav Sahakari Bank
The Reserve Bank of India (RBI) in an order dated February 1, 2013 has cancelled the licence of Abhinav Sahakari Bank Ltd in Rahuri, Ahmednagar, Maharashtra .................
Read........
Read........
Finmin clamps down on Irda
.....Even the Reserve Bank of India had expressed concerns about banks’ role in distributing insurance products under the proposed framework. “The new person who assumes office will have to be responsible for the newly implemented norms and it is fair enough to allow him to review the impact on all stakeholders,” said an industry source. It’s also believed that the post of member actuary at Irda will be filled after the new chairman assumes office. Currently, Purnima Gupta (Appointed actuary at Reliance Life) and Meena Kumari (deputy director – actuarial, Irda) are in the reckoning for the actuary job.........
A higher exemption limit is the need of the hour
......With a constant decline in the percentage of individual savings, it’s expected that there would be an increase in the exemption limit available under section 80C to `3 lakh from the current limit of `1 lakh, to boost savings. This can be done by introducing a separate limit of `2 lakh for specified long-term investments such as life insurance and annuity, investments in Rajiv Gandhi Equity Savings Scheme and employee contribution to New Pension Scheme, within the ambit of section 80C.......
CM seeks banks help for state glagship projects
......Although the ratio of priority sector advances to total advances in Mizoram as of March 2012 was well above the stipulated 40 percent, percentage of agriculture advances was much below the RBI mandated target of 18 percent, the CM pointed out. He requested the banks to take proactive steps in devising ingenious ways and adopting innovative strategies to step up the credit flow to priority sector, especially to agriculture sector in the state. The focus of this year's state credit seminar was on "development of rural infrastructure for accelerating inclusive growth." .......
SBI opens e-corners in Kolkata
State Bank of India, Kolkata Circle on Thursday opened five e-corners in various parts of the city. The e-corners will have various facilities including ATM, cash deposit machines, self service kiosk (for passbook printing, fund transfer, NEFT, account statement, cheque book request, bill payments etc) and coin vending machine, said a bank statement..........
Thursday, February 14, 2013
Kudos to Mr Subbarao
India’s inflation puzzle
...........A couple of weeks ago, Deepak Mohanty, and Executive Director of RBI, gave a speech in which he tackled India’s inflation puzzle. I will outline what he said, and then assess the arguments. Mr Mohanty first pointed out that India’s recent inflation surge and its persistence did not line up well with either its own history or what has been happening contemporaneously in the rest of the world.............
RBI sets up panel to study exporters’ concerns
Committee will be chaired by RBI Executive Director G. Padmanabhan
The Reserve Bank of India (RBI) on Wednesday set up a technical committee to study issues related to difficulties being faced by exporters with regard to the availability of credit and transaction costs, among other areas..........
Long bankers' queue for Lakshmi Vilas Bank CEO
.......The applicants include senior executives from the State Bank of India, a former official of the Reserve Bank of India, and business heads of ICICI Bank, HDFC Bank, Axis Bank, Citibank and Hongkong and Shanghai Banking Corp. The CEO’s post in the Tamil Nadu-based private bank has been vacant after P R Somasundaram resigned from the position late November last year. He had left the bank due to “personal reasons”.......
Islamic Banking – Participatory, Equality & Indian law
.....Had RBI as financial engineer studied financial products used under Islamic banking system, might have developed new secular financial products with equally attractive and acceptable to Indian Muslims as well. But the internal working group of RBI constituted for this purpose sensed mysticism in Islamic banking with inextricable influence of religious doctrines, and delineated the principles and entire gamut of financial products used in Islamic banking for better understanding. So the report presented by that working groups mostly dealt about legal hurdles disallowing Islamic theology in present banking system; and did not focus on evaluating the scope of alternative financial products potential for financial inclusion.........
Banks pump back counterfeit notes to skirt trouble
......A police officer said certain banks were indirectly aiding counterfeiters by pumping the fake notes they catch into ATMs. “They have nothing to gain by alerting the police about the counterfeits. We have information that at least some banks put fake notes into their ATMs. From there some unsuspecting man on the street gets it,” ............
Tortoise treatment
Co-operative banks account for a minuscule proportion of the country’s total banking business and nothing reflects this more than the slower-than-tortoise pace at which the Reserve Bank of India (RBI) sends them orders............
The RBI tightens up
.............. In the short run, the end of regulatory forbearance may lead to an even larger gap between the valuations of private sector banks and those of PSBs. But it is the only road to a healthy recapitalisation of the banking sector.
India Inc and the Big Bank theories
The Reserve Bank of India (RBI) appeared un-consulted when Pranab Mukherjee, the then finance minister, invited new players to set up banks in his Budget speech in February 2010. It surprised many in the central bank because consolidation in the banking sector was the most debated topic in those days. Now, three years on, it is more or less certain that a new set...........
Financial markets can expand only if we tackle financial inclusion first
....."Though Financial Inclusion has remained a national agenda for a fairly long time, as reflected in initiatives such as the co-operative movement, bank nationalization, lead bank scheme, setting up of RRBs, etc., the progress has been nothing to write home about. Why has this been the state of affairs in our country where banking, in some formal way, has been in existence for more than 200 years; where we have several banks which have been in existence for more than 100 years,".........
This chart shows how FM stole his own thunder before Budget
.............“Focus will now be on Stability, Credibility on fiscal consolidation and Reform intent in order to reposition India as an attractive investment destination,” the report says. But as the RBI’s recent monetary policy shows, the real challenges lie ahead. The current account deficit is likely to get worse in the third quarter, and if the fourth quarter does not show significant improvement, the RBI will again have to be cautious on rate cuts............
PSU banks likely to get Rs 20,000 cr fund infusion in next fiscal
.....The RBI has extended the rollout date for Basel III by three months to April, 1, 2013. During the current fiscal, the centre has approved infusion of Rs 12,517 crore in around 10 state- owned banks. It had infused about Rs 20,117 crore in public sector banks during 2010- 11, and Rs 12,000 crore in 2011- 12..........
Small rate cuts do not help you save much
..But how much of a difference would this make to equated monthly instalment (EMI) or the total interest payout for the entire tenor? Numbers show that it doesn’t make a huge difference if the loan amount is less. For higher loan amounts, the saving is a little higher.........
Banking Taken a Hit? Yes. Is It Cause for Alarm? No
.....Today, it is a classic scenario where you have declining industrial production, you have declining top line inflation, you have declining core inflation, you have high consumer inflation no doubt, which is a supply side issue, and you have some shortage of money supply. In this situation, dynamic growth seems to get a little heavier. And that is what we are saying, our recommendation is a tough one, it is for the Reserve Bank to decide but we would like to see maybe a 50 basis point cut in the repo rate and a 75 to 100 basis point cut in cash reserve ratio. It would not only change the sentiment, it will bring down interest rates, and will give a fillip to consumer demand. ........
Lot for the financial sector happening on the sidelines of RBI guidelines
Lot for the financial sector has been happening on the sidelines in the form of the RBI guidelines that keep on coming from time to time whether it is for the NBFCs, for microfinance and gold loan companies.....
Fake notes via Bengal 'the best'
.....Experts are worried because producers of the fake notes routed through Bengal have managed to replicate all 12 "overt" security features of genuine notes with a scary degree of accuracy. "The paper and ink used are of a very high quality too, making it tough even for experts to detect the fakes," an RBI official who did not want to be named said on Wednesday........
‘Pakistan Security Press ink used for fake notes’
The High Court was informed on Tuesday that ink from Pakistan Security Press is being used for printing fake currency notes in the state. State Public Prosecutor S Dorairaj submitted before Justice K N Keshavanarayana that Sampangiramanagar police recovered fake currency notes to the tune of `30 lakh and.....
Overseas exchanges a fertile ground for fake note circulation
......Though the Reserve Bank of India insists that the currency notes of denomination of 100 and above, circulated by banks, must go through mandatory sorting by machine, the guideline is not adhered to by several banks. RBI has devised a system whereby the currency notes could be checked at the branches or at the currency chest, a regional currency management set-up, operated at a particular office where currency notes are received from various branches. Even if one branch fails to identify fake currency, the machine at the currency chest can detect it.......
Curbing gold imports won’thelp trim trade gap: Sharma
Increasing the import duty on gold alone will not help bridge the trade deficit, Commerce Minister Anand Sharma said on Wednesday, even as the Finance Ministry and the Reserve Bank of India have been taking steps to discourage imports of the precious metal..........
घर की तिजोरी में रखे ‘सोने’ पर RBI की पैनी नजर
........इसके तहत घरों मे बिना इस्तेमाल के पडे सोने को आय के स्रोत मे बदलने के लिए एक स्वर्ण बैंक के गठन की योजना भी बनायी जा रही है। उसने सरकार को भेजे सुझाव में बैंको को उनके द्वारा बेचे गए सोने के सिक्कों की वापस खरीद का अधिकार दिए जाने की बात भी कही है। आरबीआई ने सोने से जुडे चार प्रकार के उत्पादो को बाजार मे लाने का सुझाव दिया है। इनमे गोल्ड डिपाजिट स्कीम, गोल्ड लिंक्ड एकाउंट, गोल्ड एक्यूमलेशन प्लान और गोल्ड पेशन प्लान शामिल है। हालांकि ऐसी किसी भी योजना मे निवेशको को बैकों में रखे जाने वाला उनका सोना वापिस नहीं मिलने वाला है। ...........
Is my credit card safe?
.........On 8 February, Reserve Bank of India (RBI) Deputy Governor Anand Sinha told news agency Press Trust of India in Mumbai that instances of credit card fraud being reported were “of high magnitude”. “We have to be alert,” he added. Various explanations have been proffered for the increase in instances of card fraud, including the fact that most overseas websites do not insist on either CVV or the additional “Secure” layer. “In India, while all domestic transactions are authenticated through the Secure protocol, as per an RBI mandate, many international merchants do not use the Secure protocol for ‘card not present’ transactions,” said an HSBC spokesperson. None of these explanations is entirely satisfactory and experts say the current situation reflects the inability of card issuers, banks, the regulator, and merchants to deal with card fraud. No one is safe...............
Planning for retirement through pension plans?
Among a myriad of financial goals that a person has, retirement perhaps is the most important and long term in nature. No wonder, insurance companies come up with advertisements that harp on how pension plans help create a good retirement kitty. But, even if you start early, pension plans may not give the best returns................
Wednesday, February 13, 2013
Toothless tigers, wounded elephants
......Yet the similes abound. Three months after the Wall Street crisis, The Economist of London was calling India “An Elephant, not a Tiger”. In 2011, hoping to resurrect India in the eyes of investors, RBI Governor D. Subbarao in 2011 spoke of “Rejigging the elephant dance.” Mixing metaphors merrily, the Governor reminded the audience: “But the elephant dance got interrupted by the ‘zoo party’ of the global financial crisis and to get it back on course, we need to rejig the dance.” We now have RBI Deputy Governor K.C. Chakrabarty titling his speech: “Transit Path for Indian Economy: Six Steps for Transforming an Elephant into a Tiger.”........
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