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.
Friday, March 15, 2013
Raghuram Rajan: From financial crisis prophet to next RBI chief?
Subir Gokarn first director for research of Brookings India
Subir Gokarn, the former Deputy Governor of the Reserve Bank of India (RBI), has been named the first director of research for Brookings India. He will also serve as a Brookings Senior Fellow..............
RBI organizes Outreach Program in Galak, Kathua
Obituary
Mr. T.N. Krishnan, Retd. ACO, RBI, Chennai passed away on 12.03.2013. Phone: 044-2431 4949
Hindu
RBI likely to vote for growth in its policy review: Mayaram
........."We believe that the RBI will do a comprehensive and nuanced analysis of the economy and take the right decision and we hope it will vote for growth. I am happy with what he (RBI Governor D Subbarao) has said,"...........
‘Recession an opportunity to introspect on internal processes’
A recession is an opportunity for the IT industry to introspect on their internal processes and organisation, operational efficiency and quality of their workforce. The situation demands that they optimise on all these fronts, B.L. Deekshatulu, Distinguished Fellow, Institute for Development and Research in Banking Technology, Reserve Bank of India, Hyderabad, said here recently..........
The reasons for a rate cut by RBI
....Economic growth hit a nadir in the December quarter and the latest data do not show much progress since then. RBI data show that bank credit to industry went up a mere 0.8% in January, compared to the preceding month. Bank credit to the services sector declined by 1.1% in January. That indicates economic activity remains extremely sluggish. In short, the signs point to a rate cut next week. Unfortunately, the rate cut in January and reduction in the cash reserve ratio hasn’t been transmitted to borrowers and some banks have instead increased deposit rates.........
‘Early to talk of a turnaround, but numbers point to it’
......The RBI will do what it thinks is appropriate. They have said repeatedly that they have multiple objectives and they will work on it. Inflation control has been the primary objective and growth is related but not a secondary objective.........
Read - IE
Bullying India’s Central Bank Won’t Help Its Economy
.........Chidambaram’s duel with the RBI is of a piece with global developments. Although countries caught up in the global slump of the last five years initially coordinated their monetary and fiscal survival strategies, the lingering crisis is testing that comity. Indeed, many governments are reconsidering the so-called independence of central banks. Whether this process will eventually lead to a complete rescinding of central bank independence is uncertain, but one thing is definite: The uneasy relationship between fiscal and monetary authorities will certainly get renegotiated......
India’s rich are the problem
Even as the Reserve Bank of India (RBI) frets over the high rate of inflation and wards off pressures to cut interest rates, it is faced with another challenge. Balance of payments data for the second quarter of 2012-13 show that the current account deficit continues to rise, and has touched a record 5.4 per cent of GDP. Both of these developments that would be considered signs of “overheating” occur at a time when growth is slowing...............
Centre to infuse Rs. 1,154 cr capital into Union Bank
Union Bank of India will see a capital infusion of Rs.1,154 crore by this month-end, said its Executive Director G. Subrahmanyam. An extraordinary general meeting (EGM) of the bank would be held on Saturday to approve the infusion.........
Panel to define FDI, FII formed
.....he Government has constituted a four-member committee headed by Economic Affairs Secretary Arvind Mayaram for giving clear definitions to Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII), with an aim to remove ambiguity over the two types of foreign investments. The DIPP Secretary, an RBI Deputy Governor and a SEBI Whole-time Member are the other members of the “high power committee.”.....
The postal department can deliver banking services to India's ignored hinterlands
.........This is a godsend for the government if exploited adequately. The low level of banking penetration has been a long-running problem, one that is unlikely to be solved by the entry of new banks. The capital costs of establishing banking networks in rural areas as well as the fear of an inadequate customer base are likely to serve as bottlenecks. The evolution of the postal department into a banking entity would neatly swerve around these bottlenecks. This has already worked in countries from Germany to South Africa...........
More woman power: SEWA bank looks beyond Gujarat
....."While I am happy that the new all-women national bank will further empower women but becoming a scheduled commercial bank was never our idea…we believe in expanding steadily and laterally then vertically,".....
Spice Global plans to approach RBI for bank licence
New Delhi: Spice Global is planning to apply to the Reserve Bank of India (RBI) for a bank licence for which guidelines were issued last month. Spice, a $2 billion diversified conglomerate, plans to offer full-fledged banking services; with a focus on smart banking which is showing a 227 per cent annual growth, to its customers, Spice Global on Thursday said in a statement............
Canara Bank files case against Deccan Chronicle with CB
Public sector lender Canara Bank has filed charges of fraud with the Central Bureau of Investigation (CBI) against Hyderabad-based media group Deccan Chronicle Holdings (DCHL) for siphoning off funds loaned to the company, a top official from the bank told FE. The official added that the bank is simultaneously informing the Reserve Bank of India (RBI) and approaching the Debt Recovery Tribunal (DRT) for recovery of dues through the liquidation of the company’s assets.....
Finance ministry swings into action on money laundering issue
Taking note of allegations of money laundering in three private banks, the government has begun the fact-finding work. Rajiv Takru, Secretary, Department of financial services, told Business Standard over phone that it is an important matter. "The truth has to be established. It will not be glossed over," Takru said. Reserve bank of India is already dealing with the development.........
RBI quizzes 3 private banks on laundering
The Reserve Bank of India on Thursday asked ICICI Bank, HDFC Bank and Axis Bank for information on allegations that they are helping customers convert black money into white as a standard service. Earlier in the day, investigative website Cobrapost, which made this sensational charge, said such illegal conversions, called money laundering, are being done with the full knowledge of the senior managements of the three banks. RBI Deputy Governor Urjit Patel said, “We have been in touch with the banks and have asked for information on the matter.”
The apex bank is expected to follow this up with a formal notice soon.........
PSU lenders blame it on 'incentive culture'
Officials in public sector banks blame the target-driven incentive culture in new generation private banks for the officials' willingness to be complicit in evading anti-money laundering laws. Although most of the suggestions by officials caught on camera are downright illegal, bankers are uncertain whether any offence has been committed as no cash deposits have taken place........
Private banks in fire-fighting mode after allegations of money laundering
....."Prima facie, we don't think that money has been laundered. Only promises were made but actual transactions did not happen. We are investigating the matter and asked our managers to explain their actions,".....
RBI May Tighten KYC and Fund Transfer Norms
...the RBI may take a closer look at the KYC guidelines for cooperative banks since the expose by cobrapost.com alleges
that it is easier to route money through coooperative banks to convert
it into white money. Cooperative banks come under the dual jurisdiction
of state governments and the RBI, making it difficult for the RBI to
effectively regulate them.
Banks, customers go slow in adopting new cheque book
.....While most of the banks had given public notices on the change, asking the customers to collect new cheque books, it has evoked only partial response from customers. Several banks that promised to send CTS-compliant cheque books to the account holders by post have not been able to make much headway.....
RBI relief for 35 account holders of Rupee Bank
PUNE: The Reserve Bank of India (RBI) has allowed 35 account holders of the Rupee Cooperative Bank Limited to withdraw amount up to Rs 1 lakh. Mahendra Doshi, general manager of the bank, said on Thursday that a
two-member administrative board of the bank identified these 35 people
as genuine cases like pensioners, education loan holders and patients
who are in desperate need of money........
2,500cr lying unclaimed in bank a/cs
....The largest stash of unclaimed money is in the savings accounts of nationalized banks, where Rs 425 crore lie in 8.7 million accounts. State Bank of India, not surprisingly, leads the pack. Agrawal was shocked that the RBI was not taking any action on dormant accounts. It can be assumed that all these accounts hold a small amount that people tend to forget or ignore...........
Canara Bank to focus on rural development, agriculture
.........As per the directions of the Reserve Bank of India (RBI) Canara Bank had taken steps to open micro branches in villages that have a population of less than 2,000. A few years ago customers were not satisfied with the service provided by the bank owing to shortage of staff. Now steps have been taken to recruit staff to provide better service, he added...........
Thursday, March 14, 2013
India growth story still credible, says RBI Governor
 |
| "If we do the right things, we can get back on a high growth trajectory. We can accelerate growth and improve welfare only if we effectively implement wide ranging economic and governance reforms. Slipping up on this will amount to a costly and potentially irreversible squandering away of opportunities." |
Banking On Inclusion
.........Deepak Singhal, Regional Director, Reserve Bank of India upholds that financial inclusion needs to be based on the core principles of affordability, availability, reliability and awareness. “Financial Inclusion is based upon both supply and demand. By opening an account you can create supply but there has to be demand as well and that can only happen by increasing awareness,” he says. Even as a brick and mortar presence is important for banks in rural areas, Singhal is of the opinion that the focus should be on creating demand for banking services in the existing rural bank branches present in 36,000 Indian villages. One of the major guidelines for new (private) players vying for a banking licence is their plan for financial inclusion, Singhal reinforces................
Read..........
Ensure interest subvention for genuine candidates: Collector
....Speaking at an awareness programme organised by the Banking Ombudsman Office, Chennai, in co-ordination with the Indian Overseas Bank, the lead bank of the district, he wondered how Rs. 700 crore could have been extended as agricultural crop loan whereas the cultivable area available in the district itself is only 80,000 hectares of land. “Even at the highest scale of finance, this does not match.”.....
Now, a phishing email in the name of RBI
 |
| ...........The email says RBI has launched a new security system, asking users to click on a link to open a page with list of banks in place. Once anyone chooses a particular bank, it asks for all net banking details, including card numbers and the secret three digit CVV number, among others........... |
Govt Finalises 20 Names for Top Posts in PSU Banks
MUMBAI: The government has finalised a list of over 20 bankers for appointment to senior positions in state-run banks for the next financial year, 2013-14. The appointments committee headed by Rajiv Takru, secretary.......
An open letter to RBI governor D Subbarao
Retired bank heads gear for new innings
Retired public sector bank chairmen are all set to begin their second innings thanks to the Reserve Bank of India (RBI). With the RBI coming out with new banking licence norms for private sector entities, companies are keen to have such experienced people on board. While firms are yet to finalise their plans on new banks, several of them have already initiated informal parleys with headhunters and senior executives of state-owned banks.......
New Banks For An Old Problem
..........“At the very general and abstract level, you cannot have financial inclusion in isolation from other reforms in other sectors. For someone who has to go to pick something in the forest every day for his food, where does the question of a bank come in?” says Y.V. Reddy, former Governor of RBI, who took away India Inc’s punch bowl during his tenure at Mint Road. “There is no evidence in the world to say modern private banks give emphasis to financial inclusion. That is not to say there is no need for more banks from the point of view of competition. But it is wrong to say that they will by themselves bring in more financial inclusion,” he says. ...........
Read............
The anatomy of regulatory independence
.....There was little change in RBI’s position from its creation in 1935 and 1991. After 1947, it was handmaiden of an economy in the pincer-grip of vicious planning. Independence was irrelevant as credit allocation, rates, bank ownership, and currency were controlled. And automatic monetization of fiscal deficits was pervasive. Government intervention was rampant, degenerating into banks being required to adhere to economic policies instead of prudential ones. Governor Rama Rau's resignation in 1958 after unceremonious treatment by the finance minister was symptomatic of the prevailing conditions. With the reforms of 1991, new banking licences in 1993-94 and elimination of ad hoc treasury bills in 1997, RBI’s autonomy turned a new leaf. This was bolstered by the FRBM Act relieving RBI of the task of underwriting federal borrowing. The debate on autonomy in India restarted in the mid-2000s, with the famed scuffles between the then RBI Governor Y.V.Reddy and the finance minister. But this was not just a clash between two personalities and had a structural element to it........
Subbarao Likely to Grant PC’s Wishes
Reserve Bank of India (RBI) Governor Duvvuri Subbarao on Wednesday sent the strongest ever signal that he would walk with Finance Minister P Chidambaram to revive economic growth by acknowledging the credibility of the fiscal consolidation plan presented in the Union Budget............
Read - ET
Read - ET
Currency wars a zero sum game: Duvvuri Subbarao, RBI
....."We all understand it is a zero sum game. Everyone can't devalue at the same time and benefit, everyone loses,"...........
India Post readies plan to start bank
......"This will benefit rural areas enormously. There are nearly 1.55 lakh post offices and no capital cost of building is required. We are connecting post offices. As it is, we are offering savings bank in post offices and this is a natural progression. The matter is under discussion with the finance ministry and RBI,".............
Inflation should be brought down to 4-6%: Subbarao
............"Inflation above 6 per cent would justify, indeed demand, tightening of the monetary policy stance. It is this understanding that has informed our monetary policy stance," Subbarao said while delivering the fifth IG Patel memorial lecture at the London School of Economics. "Monetary policy is inevitably the first line of defence to guard against inflation getting generalised through unhinged inflation expectations," the governor said, adding he wants inflation to ideally be in the 4-6 per cent range.......
Do not hustle RBI
.....Therefore, all pros and cons should be taken into account before the RBI announces its new monetary policy next Tuesday. It should not be influenced by the tall claims by the PM and others in the government that the economy would revert to the six or seven per cent growth rate next year. It would not. For, there is a lot that has dragged down growth below the five per cent mark.....
Shallow recovery
Consumer inflation, at 10.9% in February, doesn’t look like its easing in a hurry and a big oil bill and weak exports will leave the current account deficit (CAD) at around 5% of GDP in FY13, but RBI has no option but to bat for growth in its monetary policy review on Tuesday. There hasn't been any serious monetary transmission after the last repo rate cut of 25 bps in late January, but having trimmed the policy rate, the central bank would want to keep the momentum going. ............
Pro-growth Subbarao raises rate cut hopes
.."It is important to remember that the drivers of the India growth story - get-up-and-go entrepreneurism, the demographic dividend, a large and growing middle class, the opportunity for productivity catch-up, democracy and a decent legal system - are all intact," ........
PM sees return of growth; RBI governor says policy changes crucial
Prime Minister Manmohan Singh told lawmakers on Wednesday that robust growth will be restored in two-three years even as central bank governor D. Subbarao said in London that this would be possible only if the government is able to bring about structural changes, a view that could hold implications for the next monetary policy review on 19 March...........
Gold: The best possible liquid investment, finds RBI
........After a knee-jerk reaction to rising stock prices, assets and liabilities of nonbanking finance companies (NBFCs), the central bank's working group had concluded that gold could turn out to be the best collateral even for banks. Indeed, it went to the extent of making gold a vehicle for financial inclusion. "There is great scope for expanding financial inclusion in extending gold jewellery loans," said a recent report by the working group headed by KUB Rao. "If banks continue to increase their gold jewellery loans portfolio, the reliance of economically weaker sections of the society on money lenders and pawn brokers will come down considerably."..............
Pot of gold or mirage?
.............. Our public sector banks and other public financial institutions in insurance, unit trusts etc., he says, are encouraging a cosy politician-industrialist nexus to take a hold of the Indian economy, resulting in almost a Russian style klepto-market-capture model, rather than a properly regulated market economy, emerging in India. Wonder how many of the CEOs and promoters who are aspiring for a bank permit are listening to Mr Mistry’s warning.
Core banking must for co-op banks by Dec 31: RBI
........"The Government of India has also observed that UCBs without CBS do not integrate well with the banking system and hence there is the need to quickly adopt this model. CBS is a necessity in today's banking scenario. UCBs are, therefore, advised in their own interest, as also in the interest of their customers, to adopt CBS as soon as possible," RBI said.
Rupee bank officials to approach RBI
PUNE: The administrative board of the Rupee Co-operative Bank Ltd will meet Reserve Bank of India officials in Mumbai on March 14, to press for relaxation in the withdrawal amount by account holders, a senior official from the bank said on Monday..........
RBI questions district cooperative bank requests for banking licence
NAGPUR: The six beleaguered district cooperative banks (DCCBs) in the state, of which three are from Vidarbha, have been served a show cause notice by Reserve Bank of India (RBI). The apex bank has sought a reply within a fortnight as to why their applications to get a banking licence should not be rejected............
Read - TOI
NDCCB wants state to buy its building to bail it out from crisis
NAGPUR: The Nagpur District Central Cooperative Bank (NDCCB), which is struggling to garner funds to meet Reserve Bank of India's (RBI) parameters to secure a banking licence, has approached the state government to buy its building in Mahal.............
Depository banks approach Sebi
..........BNY Mellon, a global investment firm that acts as a depository (a holding entity for a security) for more than 2,700 American and global DR programmes, recently held meetings with the finance ministry, Securities and Exchange Board of India (Sebi), and the Reserve Bank of India (RBI) on the possibility of allowing such instruments, according to a statement from the company.............
Urban woman moving towards financial liberty
A survey by HDFC Life Insurance Co. Ltd and ValueNotes shows that the Indian urban woman is becoming financially independent and has a higher sense of financial liberty. She is actively planning for........
WBIDFC claims Rs 120 cr missing from UCO Bank a/c
West Bengal Infrastructure Development Finance Corp (WBIDFC) today claimed that around Rs 120 crore was missing from its fixed deposit accounts with UCO Bank. The infrastructure financing arm of the state government had parked the money with the Kolkata-based bank in two separate transactions..........
Karnataka Bank to open 20 more branches in as many days
..... “Our bank has won certificates of recognition from the Reserve Bank of India and the National Payments Corporation of India for efficiency in maintaining our ATMs,” .....
Dial ‘M’ To Swipe
..... “They had some apprehensions as ours was a non-linear device. What happens to card-holder data when it is travelling over a public network, was one issue. Since there are three parties in each transaction, there was no charge-back protection. And as these card associations are international, they have set protocols. Indian banks are very hidebound, unlike their US counterparts. So we had to get a waiver from the card association and also convince banks to start using our technology, which meant that while on paper we are two years old, in reality we have been operational for only a little over four months,”..........
Read...........
Wednesday, March 13, 2013
Economy Facing Stagflation: Rangarajan
.......“It
is pertinent to note that stagflationary tendencies have already reared
their head in emerging markets, like India, where financial
intermediation was never a problem,” Rangarajan says in a paper titled
Growth or Austerity: The Policy Dilemma’ co-authored with Alok Sheel.
The assessment brings to fore the monetary policy challenges for RBI,
which is facing demands for lower interest rates despite strong
inflationary expectations.............
Rangarajan’s declaration of Stagflation Is Red Flag
For a policy-maker to declare that `stagflation’ is
crippling economic performance is like a doctor telling relatives that
the patient in the intensive care unit `may die’ instead of the clichéd
`stable but critical.’ Neither of them does. But C. Rangarajan,
Chairman of the Prime Minister’s Economic Advisory Council, and a former
governor of the Reserve Bank of India just violated that and in the
process highlighted how vulnerable the Indian economy is..........
Moneylife Foundation demands scrapping of the move to penalise usage of cheques
Moneylife Foundation, as the voice of 21,500 savers, has sent a memorandum to the RBI, pointing out why this move is premature, ill-conceived, impractical and hugely detrimental to the interests of consumers.........
Read - Moneylife
Now, penalty for paying credit card dues by cheque!
..... The finance ministry's fatwa makes a mockery of the RBI's pretence that it is an independent regulator of banks, because the government has not even bothered to refer this issue to the central bank before issuing orders on what amounts to micro-management of bank charges. RBI Deputy Governor Dr K C Chakrabarty has repeatedly exhorted customers to vote with their feet and move to another bank if they dislike the high costs and charges of foreign and private banks. It now appears that the finance ministry will forcefully intervene to ensure that they do not have PSBs to turn to...........
Experts critical of gold bank proposal, say it won’t curb imports
A proposal by a Reserve Bank of India (RBI) panel to create an exclusive gold bank for tapping the idle stock of the precious metal has been received with scepticism by some economists and experts. The panel headed by K.U.B. Rao, an adviser to RBI’s Department of Economic and Policy Research, proposed on 6 February that the central bank set up the Bullion Corporation of India (BCI), which would undertake all wholesale gold transactions. The Indian central bank is examining the proposal and may take a call on this in the next few months, said a person familiar with the development on condition of anonymity............
Obituary
Mr. S. Ramanathan, Retd. Asst. Manager, RBI, Chennai passed away on 09.03.2013. Dasasthu on 18.03.2013 at Chennai. No.8, 1st Main Road, Chandrasekarapuram, Ambattur, Chennai – 53. Phone: 044-2657 4166.
Hindu
RBI and Retired Employees - Dr.T.V.Gopalakrishnan
......Today’s position is that the Retirees cannot openly disclose their pension to even their own relatives to maintain the prestige of the RBI. The moment one tells the amount they look down upon and have a contemptuous feeling........
This comment I gave in response to the write up My view - the age old problem by Mr Parab appeared in VITALINFO.
Read........
This comment I gave in response to the write up My view - the age old problem by Mr Parab appeared in VITALINFO.
Read........
Public sector banks open 11,887 branches,recruit over 1.72 lakh in last 3 FYs
....Public sector banks (PSBs) opened 3,719 branches in 2009-10; 3,506 branches in 2010-11; and 4,662 branches in 2011-12, Minister of State for Finance Namo Narain Meena said in a written reply to the Rajya Sabha today. The branches were opened in areas such as rural, urban, semi-urban and metropolitan areas. As many as 25 PSBs in new bank branches recruited 58,900 personnel in 2009-10, 57,758 persons in 2010-11 and 55,632 personnel were recruited in 2011-12, Meena said.........
RBI receives 27 complaints of financial fraud from Assam
NEW DELHI, March 12: As many as 27 complaints of alleged financial fraud were received from across Assam by the Reserve Bank of India (RBI) during the financial year 2012–13, Union Finance Minister P Chidambaram informed the Rajya Sabha on Tuesday.......
Two chit fund cos duping Assam investors
.......The RBI has reported that no non banking financial company registered with it has been observed to be flouting any guidelines of the RBI in Assam. However, Guwahati Regional Office of RBI has received complaints that certain entities are accepting money through various schemes such as booking of plots, booking of holiday packages, issuing non-convertible debentures and redeemable preference shares to the public alluring them with high returns, the Union Finance Minister said................
Govt to launch Rs 10 plastic notes in 5 cities
........“It has been decided by the government and the RBI (Reserve Bank of India) to introduce one billion pieces of Rs 10 notes in polymer/plastic on a field trial basis,” Minister of State for Finance Namo Narain Meena said in a written reply to the Rajya Sabha. The minister said the field trail will be conducted in five cities — Kochi, Mysore, Jaipur, Bhubhaneswar and Shimla with varied geographical locations and climatic conditions..........
Fake currency siezed in Assam
A Bangladeshi national was today nabbed by the BSF in Dhubri district and fake Indian currency with a face value of Rs 2.98 lakh was seized from his possession. During a special operation by the BSF,......
Maximum fake currency seized from Pakistan border: Govt
Maximum seizure of fake currency notes with a face value of over Rs 2.64 crore was made from the India-Pakistan frontier compared to other land borders between 2010 and February this year, the Lok Sabha was informed today...............
CorpBank evolves new business model for Kerala region
........He pointed out that the recent shift in gold loan business from NBFCs to public and private sector banks following RBI guidelines has thrown open more opportunities for banks in gold loans, especially in Kerala. The total disbursement of gold loan business throughout the country by the Corporation Bank was Rs 4,000 crore. Of this, it had disbursed Rs 636 crore in Kerala this year so far against Rs 365 crore in the previous year. In the retail loan segment, he said, the bank is expecting a growth rate of 30 per cent in the next fiscal with a focus on home loans, loans to doctors, traders etc...........
Rs 71 cr State package for co-op banks’ rehab
Mumbai : The State has sanctioned Rs 71 crore for the rehabilitation of two district co-operative banks which were stripped of their banking licences by the Reserve Bank of India (RBI) due to mismanagement. Jalna and Dhule-Nandurbar District Central Cooperative banks – both of these banks are controlled by NCP and this amount may help them to get the banking license.........
India's industrial revolution
.....This refers to Subir Gokarn's column "From bottleneck to bottleneck" (Muddy Waters, March 11). Although India has the intellectual capacity, strength and ability to fuel the next industrial revolution, it has miles to go to scale new heights on the industrial front.................
The New Microfinance Handbook
.......The objective of The New Microfinance Handbook is to provide a strategic guide to help assess the financial service needs of the poor and to determine how a diversified financial sector can address these needs. It takes a different approach from the original Microfinance Handbook. Rather than taking an 'institutional' perspective (supply driven), the book considers the clients and their needs (demand side) and how the market can better meet their needs first and foremost..........
Hype, hope and hubris
.....With the Budget out of the way and the Reserve Bank of India (RBI) policy meeting ahead of us, it is a good time to take stock of India's much-needed macro recalibration. It is also worth assessing to what extent the latest Budget acts as a catalyst for this adjustment. India's economy needs to make two transitions......
Sand in the wheels of the rate cycle
A fall in lending rates is still some time away. Yes, the consensus among pundits is that the Reserve Bank of India (RBI) will reduce interest rates when it reviews monetary policy next week. But that might not translate into lower market rates because the monetary transmission system is jammed............
On RBI’s Sense And Sensibilities
The Central bank’s norms on new lenders are mostly sensible. Let’s see who makes the cut
The much awaited document has arrived — a 19-page note from the Reserve Bank of India (RBI) dated 22 February 2013, setting out the guidelines for the licensing of new private sector banks. Having read it through most of the day, I must admit that it is well drafted. Let me outline its key elements and then raise some issues.......
Scope for easing monetary policy: FinMin
Finance Ministry today said that there is a scope for easing of monetary policy to boost growth in view of moderation in WPI-based inflation. "Inflation numbers have also come down so there is certainly a case for (giving) further impulses for growth," ............
Despite IIP surprise, RBI to cut rates on Tue: Foreign analysts
........"We doubt that either of today's data releases (IIP and retail inflation) will prevent the RBI from cutting the repo (and cash reserve ratio) by another 25 bps March 19, while we are also looking for a 25 bps reduction on May 3,".......
Banks unlikely to reduce deposit rates this month
......."Deposit rates may not fall at the same pace like the repo rate as there is a shortage of deposits in relation to the credit. We may see some softening in deposit rates. At the most, deposit rates will soften by a further 25 basis points if there are repo rate cuts of 50 basis points,".......
Street expects RBI to slash rate, despite higher CPI
...........The commitment displayed by the government towards fiscal consolidation in the Union Budget, along with further moderation in WPI and slight improvement in trade data, should provide RBI the window to continue to address growth risks, Shubhada Rao, chief economist, YES Bank, said..........
India is new focus for Societe Generale
.........Societe Generale has been present in India since 1978, through a representative office in Delhi. In 1985, it opened its first full-fledged branch in Mumbai. In 1993, it opened a branch in Delhi. For its third branch, the bank had zeroed in on Ahmedabad. However, it later chose Sanand, as Reserve Bank of India (RBI) guidelines mandate banks to open branches in the hinterland as well...........
Is the “New Normal Inflation” here to stay?
..................The RBI governor believes that the central bank is committed to bringing down inflation below the current levels and in the long run bring it down to 3%-4% levels. The speech of RBI governor minutely examines both arguments in favour of new normal inflation and the arguments formulated by RBI against it. Let us look at some of the factors that have caused inflation in India post 2009-10...............
India Inflation Fight Hampered as Debt Role Hinders RBI
.......“You can crib, you can cry,” former RBI head Y.V. Reddy said in December, when Subbarao asked in a panel discussion if fiscal policy dominates monetary policy. “It’s always been so.”........
Banking supervisors may seek to simplify Basel III
LONDON (Reuters) - Global banking regulators will examine whether their new rules forcing lenders to hold more capital to absorb any future losses should be simplified after criticism that they are too complex to be effective..........
‘Subversion of JPC began soon after its formation’
..........One meeting on February 3, 2011, includes Mr. Chandrashekhar “sensitising” RBI Governor Dr. Subbarao in his chamber, “before his deposition to the PAC”. In effect, not one, but two Parliamentary committees investigating the 2G scam, may have been compromised over the last two year — putting to waste crores of tax payers’ money in the hope that the JPC and PAC, which primarily depend upon witnesses’ testimonies and documents, would arrive at a fair and detailed report on the wrongdoings in the 2G scam..........
Zeroing in on the 'parallel economy'
.........It is, therefore, required first to change the basis of filing returns from “total income” to “gross total income” and, then, to mandate that everyone with “gross total income” of Rs 1 lakh or more must file the return. It may prove to be the most effective initiative to drive away the “parallel economy”. It will not only widen the tax base at the lower level but also at higher levels of income. Unrecorded transactions of existing taxpayers would get disclosed as recipients of such unrecorded money start filing returns.............
Demand for agricultural credit remains high: RBI
Demand for agricultural credit this year is sustained even if other sectors have shown lesser demand. According to the latest Reserve Bank of India (RBI) data for sectoral deployment of bank credit, agricultural loans showed a healthy growth rate of 19.8 per cent against 6.3 per cent last year. This is despite some parts of the country facing severe drought situation this year...............
Nabard bets on mechanisation for farm credit growth
...........A Nabard official said that with limitation in available labour and increasing wages, medium and large farmers are looking for labour saving devices to remain competitive. The policymakers and social scientists are looking for mechanisation to remove drudgery from farm operations so that the rural educated youth do not run to urban areas in pursuit of jobs, which are already in short supply. .............
Banks stop offering long-term bonds over Basel III uncertainty
.......However, under Basel III norms, a bank’s debenture holders must also bear part of the risk. And, in case a bank has to be rescued by tax payers, these bonds get converted into equity, which most likely means they would be worthless. This clause is known in the Basel III norms as the “loss absorption mechanism”. It ensures that the bank continues to function instead of being forced to pay bond holders, triggering a liquidation. For this reason, debenture investors are asking for a risk premium, which in turn pushes up their cost for the banks...............
Mandya co-op bank faces fraud suit
Mandya City Co-operative Bank Ltd (MCC), Mandya, which sought an assistance of Rs 62.40 lakh to “waive the debts sought by 292 agriculturists,” from the Reserve Bank of India (RBI), is set to face action. The Mandya district authorities are set to frame the charges shortly........
Subscribe to:
Posts (Atom)