Srinagar: Dismissing the criticism that RBI's steps to check inflation have hurt growth, Reserve Bank Governor D Subbarao on Wednesday said the monetary authority has the responsibility to listen to "silent voices" of millions of people impacted by rising prices..........
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, May 9, 2013
Former Delhi state football player Swaraj Kumar Jolly passes away
........He got associated with various clubs here and promoted players also. He was the sports coordinator of Reserve Bank of India for many years and was the man behind the recruitment of numerous football players for the first time in Delhi branch of Reserve Bank of India.............
Versatile person no more................
Shri K.V. Vaidyalingam, retired Assistant General Manager from RPCD-CO expired suddenly on May 7, 2013 at around 2.30 am in Bangalore, where he had settled after his retirement. Shri Vaidyalingam joined the Bank in 1973 and had worked in Calcutta and Chennai Office. In Mumbai, he was attached to DEIO and RPCD-CO. He retired in September 2010 from RPCD-CO. He was 62. Shri Vaidyalingam is survived by his wife, a son and a daughter who are married and settled in USA. Shri Vaidyalingam was a versatile person and was extremely popular amongst his friends.We have lost a great and noble soul in him. May God give his wife and other family members the strength to withstand the unbearable loss. May his soul rest in peace.
- Kumaresan Rajasekharan, EXRBITES Group (via e-mail)
I am deeply shocked to know of the sad demise of Mr.Vaidyalingam. He
worked with me in RPCD., C.O. when I was CGM-in-C of the Department. He
was a conscientious and friendly officer. He was active even on Face
Book. May his soul rest in eternal peace.
- C.S.Murthy, EXRBITES Group (via e-mail)
- C.S.Murthy, EXRBITES Group (via e-mail)
Shri
K.V.Vaidyalingam was promoted on the same day with me and we were
together in Dover lane Quarters, Kolkata for about 7 years and
subsequently we were together at Chennai Office for a few years before
he was transferred to Mumbai. He was a bold and jovial person. It was
indeed very shocking to hear the news about his death. I pray god to
give courage to his family members to bear his loss.
- G.Mohan, EXRBITES Group (via e-mail)
- G.Mohan, EXRBITES Group (via e-mail)
We, all
the members of Exrbites, pray to God to grant peace to the soul of Sh K V
Vaidyalingam and give courage to the family to bear this loss. He
joined our Group on 1st June, 2011 (M-129) and today we have lost one of
our versatile member. He was only 62. I remember in between for some
time after his retirement he had shifted to a place "Molur Meadows", a
colony specially constructed for senior citizens, near coimbatore. He
had sent even photos of his apartment to the Group. We will miss him for
ever.
- Madan Gauria, EXRBITES Group (via e-mail)
- Madan Gauria, EXRBITES Group (via e-mail)
Perfect toy bunker........................
A poignant poem written by Gopi Krishnan Kottoor along with a famous
photograph (see attached) which had shaken the entire world a few days ago. The
poem was published in The Hindu on May 5, 2013 (Sunday).
Who is this Kottoor ?? Gopi
Krishnan Kottoor is none other than Shri R G Nair, DGM (OBO),
Reserve Bank of India, Thiruvananthapuram. Many people in RBI do not know that Shri R
G Nair, who writes under the pen name of Gopi Kottoor, is an
award-winning internationally acclaimed poet and one of the foremost
contemporary Indian poets writing in English. His immortal poem “Father,
Wake Us in Passing” is a path-breaking effort in Indian English literature.
|
Dr Tapan
Kumar Pradhan
Assistant General
Manager (ABC Cell)
Reserve Bank of
India
Thiruvananthpuram
90% habitation in India without banking: RBI Governor
.........“There are 6 lakh habitations in country and out of which only 10 per cent have been included with banking system. 90 per cent of the habitations have no bank branches,” he said.”RBI is trying to go for financial inclusion. We not only want people to have bank accounts but also want them to know how to use it for their benefit.”...........
Islamic banking impossible in Indian regulatory set-up: D Subbarao
RBI Governor D Subbarao on Wednesday said implementing Islamic banking model in India would be impossible because it is inconsistent with the banking regulatory set-up where interest is charged and given. However, he said he has suggested the government that the decision being political, it must debate and............
Omar asks banks to increase CDR
......The Chief Minister stressed the need for the banks in fulfilling the target of Kissan Credit Cards and increasing advances in agriculture and allied sectors falling under priority zone. Omar said the State Government would shortly come up with SARFAESI Act. Governor, RBI, Dr. Subbarao who conducted the meeting fixed a target of 40 per cent for CD ratio across the State for the Banks during the current financial. ...........
Monetary policy transmission to markets assymetrical: RBI
........"The transmission of monetary policy works well in the call money rate, as it is impacted immediately with robustness. As regards other financial market variables, except for the stock market, the study could find evidence of transmission from the monetary policy shocks,"........
RBI to launch plastic currency notes with longer shelf-life
........ "We are trying to introduce plastic currency...We hope to introduce it on trial basis and if that succeeds it will be replicated in the entire country,"..........
Increase loan payback period to 20 yrs: JKHC urges RBI
.....“J&K Banks and other banks have at many occasions used force to recover loans from defaulters which RBI Governor should take serious note of. The businessman is never willful defaulters but occasional turbulence in valley makes him a defaulter. The banks have raided houses of the businessmen in the past which is regretful. It has damaged the reputation of the businessman,” .......
IMG on curbing fraudulent investment schemes to meet on May 16
.....The high level panel, headed by Department of Financial Services' Additional Secretary, will have representatives from Corporate Affairs Ministry, RBI and SEBI. "The first meeting of the Inter-Ministerial Group is scheduled for May 16, 2013," the Finance Ministry said. The IMG has been set up to ensure "proper enforcement of regulatory framework for multi-level marketing companies, non-banking finance companies and companies running collective investment schemes"........
Is extra tax to compensate Saradha victims fair? asks RBI
.........“If you go back to the West Bengal Saradha scheme, the Chief Minister said ‘I will levy additional taxes on cigarettes and some other things to compensate the people who have lost money’ ... Is it fair?,” Subbarao said while delivering a lecture to economics students here to mark the Platinum Jubilee celebrations of Jammu & Kashmir Bank................
BRICS Development Bank - Prospects and challenges : M.G.Warrier
.......BRICS can also count on the experience of India’s central bank (Reserve Bank of India) which has acquired professional expertise and experience in handling issues like financial inclusion, priority sector lending, institution-building for meeting diverse needs of financial sector, forex reserves management and public debt management, besides the core central banking functions which the Reserve Bank of India has managed well during the last 78 years of its existence...........
Responsibility to check money laundering rests with govt:RBI
Amid allegations of money laundering against banks and insurance companies by an online portal, Reserve Bank Governor D Subbarao today said it was the responsibility of the government and tax authorities to check such activities. "RBI is not directly involved... Even banks are not directly responsible. They are not expected to inquire about the source of income. It is for government and tax authorities to check money laundering," he said while addressing students and academicians as part of the Platinum Jubilee celebrations of Jammu & Kashmir Bank..............
RBI stays away from Saradha row
......Calling the Saradha Group an "investment company", the RBI's affidavit states: "This (Saradha) is not a chit fund. RBI has no authority to regulate investment firms. RBI has served notices to 57 chit fund firms in Bengal. All of them have closed down." The court will take up the matter for hearing on May 14...........
Read - TOI
RBI’s report on services for exporters evokes mixed response
Suggestions in the Reserve Bank of India -appointed G. Padmanabhan Committee’s report for improving financial flow to the exporters, extension of financial support from alternative sources, rationalisation of transaction costs and risk mitigation, among others, are seen with optimism by the knitwear exporters in Tirupur cluster for improvement of business............
Gold coins to flood market
......RBI move will have people offloading gold coins with jewellers and by this they will not have to buy gold from the banks. Most gold coins are expected to come into the open market. By this the import bill of gold is expected to come down. Yet another advantage is that the gold coins coming to the market will be converted into jewellery and provide jobs to 35 lakh goldsmiths.........
Read......
Watching the financial watchdogs
.........Next come the three Financial Regulators - RBI for the banking sector, SEBI for the capital markets both are Mumbai-based and the Hyderabad-based IRDA for the insurance sector. Each of them have their own file pushing babus duplicating investigations by stepping on each other’s toes, resulting in harming genuine consumer interests. Each of them jealously guards their turfs. Typically, it happened during investigations into the Satyam investigation where the local police station despite not knowing the ABC of the fraud wanted a piece of the action!...........
Levy cheque return fee only if customers at fault: RBI to banks
"...Recently, instances have been brought to our notice where banks are levying cheque return charges even in cases where customers have not been at fault in the return and delaying the re-presentation of the cheques which had been returned by the paying banks under technical reasons," RBI said in a notification. It said that both of the issues were resulting into "unsatisfactory customer service" and it was considered necessary to streamline the procedure followed by all banks in this regard....................
Inflation-fighting RBI has no target on CPI
Given the importance it attaches to retail inflation, one would expect the Reserve Bank of India (RBI) to give some guidance on the consumer price index (CPI). But the central bank has neither set a target for the index nor indicated a level it would be comfortable with. “We have no CPI target,” RBI governor D Subbarao said in the post-policy interaction with analysts and researchers earlier this week. The central bank looks at all three CPI indices – for industrial workers, agricultural labourers and rural labourers – as well as the composite CPI, he said...............
Can Punters Outwit RBI This Time?
Hundred
years ago punters in Bombay made and lost fortunes by betting on cotton
futures traded on exchanges in Liverpool, New York and Alexandria.
Information flowed with a lag, orders were posted through telegrams and
those with access to ticker tapes tracked the price movements that
swung, as they do even today, with the hint of a war or crop failure. A
decade ago, when the Reserve Bank of India opened the doors to overseas
bourses, allowing individuals to freely invest money across the border,
it was like the return of a lost era........
Read - ET
Read - ET
Securitisation to turn costlier for banks with new distribution tax
.......A senior official with a leading NBFC said the securitisation route may turn more costly for them as banks would try to pass on the burden. "The issuers and investors can avoid the additional burden through bilateral deals. But in case of direct buyout of loan portfolios, banks will have to bear the credit risk fully as RBI does not allow credit enhancement under bilateral arrangements," he said. RBI said it will issue the final guidelines on reset of credit enhancement in securitisation by end-June 2013......
Bank broking arm to be independent accounting unit: Irda panel
.........The report said that banks acting as brokers will not only enable the banks to utilize their entire network of branches but also increase the insurance penetration and pose an effective competition in rendering services to the policyholders. "Since the banks are regulated separately by the Reserve Bank of India (RBI), it shall be a measure to enhance the efficiency in the conduct of procurement of insurance business and also accountability to the policyholder as compared to the agency channel," it said...........
Maharashtra Govt move to enthuse fresh life into NDCCB struggling for existence
The Maharashtra Government, in an effort to enthuse fresh life into Nagpur District Central Cooperative Bank (NDCCB), has formed a Committee under the Chairmanship of Maharashtra Agriculture Minister Radhakrishna Vikhe Patil to sell-off the Bank’s newly built building in Mahal area of Nagpur and the minister has been the responsibility to deal with issue...........
Early exit from economic stress?
.........Will economic growth recover fairly soon as the finance ministry and PMEAC project? Or more slowly as forecast by the RBI? What will bring about the growth revival? Can the record high external imbalance (CAD) be halved within three years? What is the outlook for inflation? The search for answers must begin with a better understanding of what brought about the extraordinary deceleration of India's growth in the last two years.......
Disguising NPAs
Amid growing concerns about the deteriorating quality of bank loans, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Sarfaesi), was enacted to aid in debt recovery, especially from wilful defaulters. Since the 2006 Supreme Court judgment allowing banks to simultaneously initiate multiple proceedings against the defaulters, the use of Sarfaesi by banks has significantly increased........
PSU banks make defaulters' names public to recover dues
...............Until now, banks were only going after the small promoters. The newfound aggression is probably triggered by a recent statement of the finance minister that banks must act against rich promoters of poor companies. Whatever the trigger, it is clear that corporate bigwigs better watch out. If you default, be prepared for some tough times including public name calling.......
Wednesday, May 8, 2013
Ground reality
..........Most critics of central bank policy say that the RBI has given up promoting growth at the expense of inflation control, and what the country needs more of is growth. The truth is that growth depends on much more than just interest-rate cuts or accommodative monetary policy. So, what is the likely focus of monetary policy action in the coming months? ..........
My wish list for Dr. D Subbarao
.........On pattern of RBI Jammu office, the summer capital (Srinagar) of J&K too deserves an office to avoid any biases. RBI can think of setting a training institute over here which most of its officers would love to come here for their trainings.............
Need of centralised infra for bill payments: RBI panel
........In a report released on Tuesday, the committee chaired by executive director G Padmanabhan said IBPS would be the centralised infrastructure connecting the billers through the aggregators and the customers through the customer service points, for management of all bill payments in the country. The committee said there is a need for developing an electronic bill payment system based on a GIRO model for payment of dues of essential services, insurance premium, utility payments, taxes, etc.......
Is our banking system flawed?
......Although the sting operation has tended to sensationalize things, it could lead to a purge in the entire system. Indeed the Reserve Bank of India (RBI), which doesn’t like to talk too much about the probe that it set in motion after the allegations were first made, has initiated steps to streamline wealth management offerings by banks, apart from the sale of mutual fund and insurance products along with the incentives associated with these. One very critical step is the proposal to segregate marketing and transactional banking. The noise on the sting operations should also encourage the banking system to do some soul searching and change some of the old practices, beyond branch banking and the sale of financial products............
Indian Rural Banking Sector: Big Challenges and the Road Ahead
Speech delivered by Dr Deepali Pant Joshi, Executive Director, Reserve Bank of India at MITE Mangalore on May 04, 2013
......Reserve Bank has been furthering financial inclusion in a mission mode through a combination of strategies ranging from relaxation of regulatory guidelines, provision of new products and other supportive measures to achieve sustainable and scalable Financial Inclusion. A structured and planned approach was followed under financial inclusion wherein all banks were advised in January 2010 to prepare Board approved Financial Inclusion Plans (FIPs) congruent with their business strategies and comparative advantage for three year period extending up to 2013. The implementation of these plans was closely monitored by the Reserve Bank through quantitative & qualitative reporting formats and through review meetings held with CMDs/CEOs and other senior officials of banks..........
Read.........
Financial inclusion is the key to a robust Indian economy
.....The pace of growth of financial inclusion is painfully slow. Private sector banks are loath to open branches in rural areas where costs are much higher than profits. Public sector banks move too slowly to make a significant impact. Prominent para-banking institutions, chit-funds, daily collection schemes have tried to bridge the gap but have more often than not duped the depositors. The RBI and finance ministry must place this as their top priority. Bringing millions more into the formal banking sector may not benefit the banks in the short term but will add a big boost to the economy........
Life could get easier for bank customers
Your borrowing cost might not come down in a hurry. But the Reserve Bank of India (RBI) has set a strong agenda in the next few months to make life easier for bank customers. In its Annual Monetary Policy, the apex bank has asked the Indian Banks’ Association to ensure the Damodaran committee report is implemented. There are several good proposals made by this committee, such as .........
‘Self-study’ mantra worked for a tailor’s daughter Parul as she tops Rajasthan Class 12 board exams
Jaipur: Ashok Gahlot, who is a tailor by profession, must be very proud of his daughter Parul Gahlot. Parul topped the Rajasthan Board Class 12 (Commerce) with 94.6% marks. She aspires to become the RBI Governor........
Read...........
Read...........
Decoding Subbarao’s signals
RBI opens new window
....The RBI understands this as most policymakers would. But New Delhi must give the impression of acting and the only way it can do that is to get others to act — and pass the buck. For its part, the RBI sticks to its knitting and behaves accordingly. The statement it issued last week reminds us of the mandate it has: To consider, above all, inflation and, by implication, its deleterious impact on the entire economy.......
WPI-CPI divergence confounds RBI
.....What puzzles is the guidance: the balance of risks arising from this inflation growth dynamic leave “little space” for further easing; indeed, the dark picture of inflation and current account deficit risks presented in its macroeconomic assessment the previous day persuaded many in the market to believe that there may be “no space” for easing the next day itself! It was little surprise that stocks fell and yields rose at the inflation-speak, notwithstanding the quarter per cent interest rate cut.......
Lack of govt spending hits liquidity
.....“Banks instead of borrowing from the LAF window, will be getting these securities through some other window. Overall it will not change the liquidity situation, it will change the costs to the government. We will come to a decision when we conclude our discussions with the government,”...........
Cobrapost: 15 bank staff suspended
A day after online media firm Cobrapost made money-laundering allegations against the employees of banks and insurance companies, public sector banks mentioned in the sting operation suspended 15 employees and took action against 16 others...........
The mess of Sahara’s account books: Consumer Forum asks its to pay Rs 50,000
..............The District Consumer Forum, however, said, the said passbook-cum-certificate bears endorsement to the effect that a sum of Rs81,287. "The endorsement bears the official seal of the opposite party along with the signature of the Branch Manager, nor have they averred that the endorsement is a forged one. In the aforesaid circumstances, it can safely be concluded that the endorsement of the pass book has been made by the then Branch Manager of the opposite parties (OPs-Sahara) after the receipt of the loan amount along with the interest........
Cobrapost sting: Only gun was pointed. Nobody got shot
...........This government and regulators have the right attitude. They’ve given the investigation of Cobrapost season two to an industry association of banks. An industry lobby group is just the right authority to do this work. Why, it is the same body that lobbied to keep effective interest rates on savings deposits at 0% for decades........
How much longer can the FM, RBI ignore HSBC in India?
..............The allegation being made about HSBC in India are demanding money with menace, make threats to register people with credit bureaus (for e.g. CIBIL), direct sales agents (DSAs) falsely telling customers the credit card was free for life, customer’s being threatened, intimidated and blackmailed by staff. Some customers being asked to sign blank letters of instructions (LOIs), credit card statements not appearing for years, falsely registering with CIBIL, failing to comply with the rules and regulations. Violating people’s rights and violating the Indian Penal Code (IPC)................
RBI clarifications on new bank licences shortly
.........The Minister said RBI has reported about several emails, phone calls and requests for appointments, seeking clarifications on the guidelines. "As the clarifications on those queries would be an extension of the guidelines and would be of larger interest, RBI has considered that every clarification should be publicly disseminated which would avoid repetitive queries and also ensure a level playing field," .........
CPM gives 'mysterious foursome' twist to scam
........Explaining the need for a joint inquiry by the CBIand central agencies such as RBI into the Ponzi scam, Deb gave a new twist to the controversy hinting at a "mysterious meeting of four" in Delhi's Hotel Samrat before the scam came to the surface. Deb held that investigation by central agencies might throw light into this grey area.......
IMG set up to suggest ways to tackle ponzi scheme menace
Amid rising instances of people being defrauded by ponzi schemes, the government has set up an inter-ministerial group to suggest ways to tackle fraudulent money pooling activities and protect the interest of investors. Representatives from the Finance and Corporate Affairs Ministries, Reserve Bank of India (RBI) and Securities and Exchange Board of India (Sebi) will be members of the inter- ministerial group (IMG).........
RBI needs to crack regulatory whip on banking frauds
...........While the banking regulator is seen to have performed its duty rather conservatively in the past, officials said it has to get its act together to be effective to deal with the challenges posed by "the new wave of white-collar financial crime". "The dinosaur-like approach may not work anymore. It is a fact that they have performed their role well in the past but now it is time to be more proactive," said a senior government official who did not wish to be identified.......
RBI Curbs on Offshore Rupee-Dollar Trades Leave MCX, Fin Tech in a Fix
.........A
central bank communiqué dated April 25 categorically spells out that any
Indian entity taking direct or indirect equity participation in an
overseas outfit that facilitates trading of financial products linked to
the rupee will need specific approval from the regulator. “The Indian
rupee is not fully convertible and such products could have implications for the exchange rate management of the country,” said RBI.........
Fake gold mortgaged for 13cr bank loan
..........."It is an unfortunate incident. Since the amount of fraud exceeds more than Rs 10 lakh, we have lodged a case with the CBI as per our guideline," general manager of the bank's vigilance wing S K Mishra told TOI on Monday. "Prior to approaching CBI, we informed RBI and NABARD," Mishra said............
5 non-banking financial companies in Chaibasa have no RBI approval
.....According to sources, out of the dozen odd NBFCs operating in the mineral-rich district five have been found working without requisite approval from the Reserve Bank of India (RBI)..........
Bilcare debt recast gets complicated
........... All public sector banks (PSBs) have been asked to frame a board-approved recovery policy and to constitute a board-level committee for monitoring of recovery. The top 300 NPA accounts are to be reviewed by the management committee of the board. The Reserve Bank of India (RBI) has also, several times, questioned why PSBs carry a disproportionate burden of debt recast as compared to their private sector counterparts...............
Tuesday, May 7, 2013
Anti-RBI measures
This refers to “A plot to destroy RBI” (Business Line, May 3). As pointed out, the Financial Sector Legislative Reforms Commission’s recommendations would effectively dismember the RBI, a strong monitory body. Crisis such as high inflation, mounting current account deficit and inability to achieve fiscal consolidation can be solved only through a united effort of the Government and the RBI. Reforms should not be an instrument for a political party’s whims.
- N. R. Nagarajan (HBL)
It is only KYC norm violation, says RBI
Reserve Bank of India (RBI) Deputy Governor K.C. Chakrabarty, on Monday, refuted money laundering charges levelled against various banks, and said that all exposures by Cobrapost.com were connected to know-your-customer (KYC) norms. “We are seeing how the banks are following up on the KYC norms. There are certain differences in the manner of reporting of KYC norms in each bank…Need to strengthen KYC guidelines,” he said..........
Not hopeful of RBI action on money laundering: Cobrapost
............."Although the RBI has announced action, both at the systemic level and at the individual bank level, one can only hope they are not cosmetic, and the latest expose would spur both the RBI and the IRDA to address the malaise, for all times to come," says the Cobrapost release..............''
Who's accountable?
Apropos Debashis Basu's column "The price of regulators' ignorance" (Irrational Choice, May 6), the author has firmly placed accountability where it should belong. The Securities and Exchange Board of India (Sebi) and the Reserve Bank of India are lax in their responses to anything that does not concern a big corporate house or a significant macroeconomic issue. Ponzi schemes are run so openly and...........
Cobrapost: Bankers and insurers in damage-control mode
.....Banks and insurance companies have gone on a firefighting mode after allegations by online portal Cobrapost that they violated money laundering norms. Though all of them denied the allegations, they, however, said if any instance of money laundering comes to their notice in the investigation, action would be taken against erring employees........
Money laundering charge: FinMin asks banks, LIC to act tough
.....The Finance Ministry, on Monday, asked public sector banks and the Life Insurance Corporation of India (LIC) to take immediate action against employees ‘appear to be advising’ customers on ways of violating KYC (know-your-customer) and other regulatory norms...........
New expose puts more banks in spotlight
.....“In its continuing undercover operation, spanning several months, Cobrapost finds dozens and dozens of major public sector banks, and many more private banks, across the country are blatantly involved in money laundering, as are major insurers. In all, 23 banks and insurance companies have been exposed,” the portal said in a release......
Cobrapost Expose 2: Banks, LIC face FinMin heat
..............Cobrapost has captured on video-tape how employees of banks and life insurers are helping customers launder unaccounted cash, bypassing KYC (know-your-customer) norms. They offer to invest unaccounted cash in products that form part of the regular financial system and help launder the unaccounted money, it alleged. The laws violated include the Prevention of Money Laundering Act, the Income Tax Act and the Indian Penal Code, it said..........
India Asks Banks, Insurer to Probe Website's Claims
..............The order comes after a local news website, Cobrapost.com, released dozens of videos earlier in the day purportedly showing employees of some banks and insurance companies advising its reporter posing as a customer on how to hide money from tax authorities. The reporter used a hidden camera to record conversations with these employees.................
Cobrapost fails to sting bank stocks
..........."If everyone is in the wrong, then who is doing the right thing? We will need to wait and see what the Reserve Bank of India (RBI) will do," .......................
Cobrapost II finds all hands in till: Black money is India story
..........The fact that the sting confronted three of the best-run private banks was a big point of interest, since we all know that profit incentives are huge in these banks. But today’s sting, which bared a similar state of affairs in the big public sector banks as well as the smaller private sector ones, actually will come as a relief to the targets of the first sting. This is because it shows that the handling and laundering of black money – or rather money which the taxman is unaware of – is part of the current banking system. It actually lets the Big Three of private banking breathe easier..............
Cobrapost expose: Aniruddha Bahal on the rot in our financial system
............ I have no idea what the government of India contemplates to do to make the financial sector hawala free and black money free. No one (government authorities ) contacted us – the RBI, ED, CBI didn’t contact us. Only the Income Tax department contacted us and we gave them the Cds.............
My View on "Why RBI should give up govt debt management"
There is sense in the argument “ The only way to make the government pay the real price for its borrowing is setting up a separate debt management office.” But at this juncture if the central bank stop supporting GOI’s finance (read debt) management, there will be chaos in the Indian financial market. FSLRC does not seem to have gone deep into the country-specific issues or the evolution of the responsibilities of RBI. ‘Cut and paste’ approach to institution-building in financial sector will be disastrous.
- M.G.Warrier
RBI says will deploy all options to tackle cash crunch
The Reserve Bank of India (RBI) said on Monday that it will consider all the options available to it to tackle tight liquidity in the market including adjusting banks' cash reserve ratio, and not just confine itself to bond purchases...............
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Justification for rate cut, a myth
..........In fact, one would perhaps find the RBI as being too cautious on growth projections. If the monsoon turns out to be normal, and also temporally and spatially well spread, and the Government’s current efforts help to at least marginally invigorate the investment climate, it is possible for growth to end up somewhat higher at six per cent or so..........
RBI panel favours differential tax regime for exporters
......The Reserve Bank had constituted a Technical Committee on Services/Facilities for the Exporters under the Chairmanship of RBI Executive Director G Padmanabhan to suggests ways for improving financial support from alternative sources. Among others, the Committee has made recommendations relating to review of Gold Card Scheme for extension of export credit to exporters, appropriate inclusion of export finance under the priority sector lending and raising of foreign currency loans on pool basis for extension of export credit to exporters......
Norms for bonds linked to inflation in a month
GREATER NOIDA, MAY 4:
The final guidelines for inflation-indexed bonds are likely to be ready in a month’s time, RBI Deputy Governor H. R. Khan has said. This means there has been a further delay to the earlier indicated timeline of mid-May for announcement of the features for the proposed bonds. “We are at an advanced stage of discussion with the Finance Ministry. It will be finalised in a month”, Khan told reporters on the sidelines of a Confederation of Indian Industry event on Indian Financial Markets here on Saturday. This meeting was held as part of the ongoing 46th Annual Meeting of the Board of Governors of the Asian Development Bank..........
Cell banking adherents rise
.............India has more than 86 crore mobile subscribers, and there are rising concerns that the banking sector is not fully exploiting the potential in mobile banking. In September, H.R. Khan, deputy governor of the RBI, said that only 52 banks were offering this service and among them, only a few have achieved sufficient mass. Sabharwal, however, said ICICI saw a huge potential in mobile banking, and it expected an exponential increase in the number of users.............
Tripura to expand banking net
............The minister said besides taking up the issue with the RBI, the government had also taken it up with the state-level banking co-ordination committee. “We had persuaded the SLBCC and the RBI to launch 52 branches in the last two financial years, 2011-12 and 2012-13. Forty seven of them have become operational and we hope the remaining branches will be set up within a short span of time.”..................
Why RBI’s fresh attack on gold is also doomed to fail
...................However, at a time when gold prices are falling, the RBI action seems more like vengeful action. What lies behind this? The unstated reason why governments and central banks dislike gold is simple: gold is money, and they don’t like anyone else creating money even when they won’t restrain their own excessive printing and debauching of paper money.............
Malabar Hill couple lose Rs 60,000 as credit cards get swiped in US
....."After confirming the fraud, the bank blocked my primary card, which I have been using since 1992," D'Souza told TOI. "The bank should not have cleared the transaction on the add-on card since that too was carried out in the US in similar circumstances.........
RBI remains a Cassandra, and the rate cut won’t help
........................Will this rate cut help? The answer is a shoulder shrug. In the past, whenever the repo rate was cut, banks did not respond with alacrity to such changes in lending rates though deposit rates were lowered faster. One must remember that the repo rate is only a signalling mechanism and even if the average repo borrowing is, say, Rs 1 lakh crore a day on a regular basis for a year, the higher cost on account of the repo not being cut by, say, 1 percent is just Rs 1,000 crore...........
'Less scope for further monetary policy actions'
............."On the issue of credit growth, the important thing to remember is we are predicting credit growth slightly above last year and you find that to be difficult to understand. But we are also predicting output growth to be a little larger than the last year. Therefore, I do not see much of a disconnect," said Urjit Patel, deputy governor of RBI. He added that in this financial year, the deposit growth may be better because, as inflation comes down, the real rate of return from financial products would rise...........
Read | Business Standard
Read | Business Standard
Justification for rate cut, a myth
..............Reducing policy rates because of the focus on growth is justified; but to base it on the premise of moderation in price rise pressures seems unfounded...............
Subbarao blazes a trail
...........Subbarao’s term is ending later this year. If he is not reappointed, his last hurrah will be remembered for quite some time. One must hope that his successor trails the same independent path of Subbarao and his several predecessors.
Why is RBI chief Subbarao so cynical?
............RBI Governor Duvvuri Subbarao has himself spelled out the risks. “Upside risks are still significant in view of sectoral demand supply imbalances, the ongoing correction in administered prices and pressures stemming from increases in minimum support prices,” he said. Is Subbarao’s risk assessment genuine or has it been exaggerated to put the government under pressure?..........
Liquidity situation will improve in a few months: Subbarao
The liquidity situation should get less uncomfortable in a few months from now, according to RBI Governor D. Subbarao. The RBI will consider all the options available with it to tackle tight liquidity conditions, including adjusting banks’ cash reserve ratio (CRR) or any other mechanism, and not just limit itself to bond purchases by conducting open market operations (OMO). “The assumption that OMO will be the preferred tool is wrong, don’t go with that assumption,” Subbarao said at a post-policy conference call with analysts........
Mismatch between intent and action?
........Over the years, RBI has received accolades the world over for being among the best central banks. As such, while it would be a simplistic view to be critical of RBI, this perhaps also underlines the complex challenges facing RBI in balancing the dynamics of growth versus inflation. This also highlights the cross-currents of the potential of the Indian economy on the one hand and on the other the headwinds that it faces due to external factors such as weak global economy and quantitative easing-induced commodity prices flare ups and internal factors such as infrastructural bottlenecks and policy logjam.........
Securitisation tax to hit NBFCs?
........If securitisation option becomes difficult, it is a serious issue for the banks. However, it is almost an existential issue for transport finance companies. To a very large extent, the growth of NBFCs in India has piggy-backed on the priority sector norms, through the securitisation route. One single transport finance company supplied more than one-third of the total securitisation volume in 2012-13. If securitisation becomes difficult or costly, the costs are obviously passed on to the originators. And this has a direct impact on the profits and growth of NBFCs.........
Banks not shying away from lending: Pratip Chaudhuri, SBI
.....Banks generally hold a little excess SLR. You cannot always calibrate your cash balances very accurately. So you need to have some surplus cash. For example, in our case instead of 23 SLR, we hold 27% or 26%, that excess SLR. If we need we pledge with RBI or we do a repo with RBI and get ourselves funded.......
SBI Chairman says not looking at group consolidation for now
........But the issue has not gone off its radar and may well be taken up for consideration after July, Pratip Chaudhuri, SBI Chairman, told Business Line here. He was in the Capital to attend the board meeting of State Bank of Bikaner & Jaipur (SBBJ)............
Commercial banks may create BITCOIN rivals
Commercial banks are looking to create alternative currencies to BITCOIN, the digital money whose popularity continues to soar..........
Monday, May 6, 2013
Biz correspondents help extend banking service to over 2 lakh villages: RBI
MOODBIDRI (DAKSHINA KANNADA):
More than 2.11 lakh villages which did not have banking facilities three years back, are now being served by 1.52 lakh business correspondents. Inaugurating a seminar on ‘Indian banking sector: Big challenges and the road ahead’, organised by the Mangalore Institute of Technology and Engineering at Moodbidri in Dakshina Kannada district, Deepali Pant Joshi, Executive Director, Reserve Bank of India, said that the financial inclusion plan (FIP) 2010-13, which was introduced by various banks in April 2010, has so far provided banking services to 2.11 lakh villages......
Read - HBL
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