........With a flurry of measures announced in the last few days, the July monetary policy statement may not have too many new announcements, but markets will be looking for some clarity on the RBI’s overall approach to attaining currency stability. There are several open questions: How far will the RBI let interest rates rise in a slowing economy? If these tightening measures are temporary, then under what conditions will they be reversed? How robust is the relationship among liquidity, interest rates and the currency in the Indian context?...........
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Wednesday, July 24, 2013
Why even the bravest of the brave can’t predict RBI’s next move
The Reserve Bank of India’s 30 July 2013 policy review has gained significance on the back of its actions in the last few days. The central bank has sent confusing signals to the market by first announcing liquidity tightening measures and then taking steps to prevent bond yields from rising...........
Subbarao Tightens Fist, Rate Hike All but Given Next Week
...........“These measures
have had a restraining effect on volatility with a concomitant
stabilising effect on the exchange rate,” RBI said. “Based on a review
of the measures, and an assessment of the liquidity and overall market
conditions, it has been decided to modify the liquidity tightening
measures.” But the measures will also impact the government’s borrowing
costs and strain the already stretched fiscal further. The interest rate
increases this time are not like in 1998 when Governor Bimal Jalan
shocked raising repo, bank rate and CRR..............
Falling rupee: It’s the Government, stupid
The stance that the RBI should take in its July 30 Monetary Policy Review Statement is being hotly debated. Popular opinion seems to be that with the rupee is refusing to be coaxed or coerced into behaving itself, the RBI is left with little option but resort to a tight monetary policy. However, it appears to be a case of missing the woods for the trees. Two specific issues come to mind. First, a the myopic concentration on global factors to the exclusion of the role of the Government. Second, a misplaced focus of relying on on a single instrument — short-term interest rates — to achieve multiple (and mutually conflicting) objectives, namely, growth, price stability and exchange rates. As long as these twin issues remain unresolved, the RBI may well continue with its ‘costly gamble’..........
ANOTHER RE GAMBIT
.......The RBI said its measures over the past two months have had a restraining effect on volatility with a concomitant stabilising effect on the exchange rate. “ Based on a review of the measures, and an assessment of the liquidity and overall market conditions going forward, it has been decided to modify the liquidity tightening measures,” the central bank said in a circular.........
Need to re-define poverty: C Rangarajan
Though Tendulkar methodology is being criticized now, it drew kudos when proportion of the people below poverty line rose to 37.2% for 2004-05 against 27.5%, calculated on the basis of earlier methodology. Can we expect similar raise of poverty numbers after your recommendations come?............
Father of poverty line takes estimates with a pinch of salt
The Planning Commission has issued poverty estimates based on the Suresh Tendulkar methodology, while admitting it was not taking this seriously. Which is also what quite a few statisticians feel about these estimates, including the man regarded as the father of India’s first official poverty line estimate in recent times, Yoginder Alagh..........
China to join hands with India to bust fake Indian currency notes network
NEW DELHI: In what could be the beginning of cooperation between India and China on the security front vis-a-vis threats from Pakistan, Beijing has expressed concern about their country becoming a route for smuggling of fake Indian currency notes (FICN) and have agreed to crackdown on the network. Chinese financial intelligence agencies have established communication with India's Directorate of Revenue Intelligence (DRI) seeking details of a recent seizure of an FICN consignment smuggled via China. ..........
Saraswat Co-operative looking to acquire Pune-based bank
RBI relaxes KYC norms for updating bank data
Mumbai: Banks will now be required to update know your customers (KYC) data only once in two years for high risk entities, and just once in 10 years for low-risk clients, the Reserve Bank of India (RBI) said on Tuesday. "The issue has been reviewed in the light of practical difficulties/constraints expressed by bankers/customers in obtaining/submitting fresh KYC documents at frequent intervals as the relative documents submitted earlier specially by low-risk customers have remained unchanged in most of the accounts," the apex bank said in a notification.................
Karnataka govt turns down BJP demand for CBI probe into bank scam
.......Cooperation Minister H S Mahadava Prasad said as per RBI report, the irregularities were to the tune of Rs 102 crore in the bank and investigation has been conducted into three cases. “Criminal cases have been filed,” the Minister said, without elaborating. He said the government would take further action once the ongoing process is completed.........
Where are the gold prices headed?
..........“The main aim of RBI, through this recent measure, is to restrict import, limit all gold coin and other transactions through jewellery shops only and prevent banks and non-banking financial companies from entering this arena. The move is likely to generate more interest in refining from scrap gold, which is available in a huge quantity in India,” said C P Krishnan, whole-time director, Geojit Comtrade..................
Credit card payments: Use your face
No more swiping credit cards to make payments! A new technology that allows customers to use their face (facial features) instead of swiping a credit card to purchase goods has been developed by a Finnish company. The technology provided by Uniqul, works by recognising the customer's face and then linking it to the individual's bank account............
The need to contain gold imports and make best use of the domestic gold resources
...............The practical approach to have credibility among stockists of gold who include households, businessmen etc is to have a Gold Bank established by the Government and the Reserve Bank jointly and mobilise the gold against creation of deposits at some rates determined based on market trend.The Gold being used as a medium of exchange should be declared as a criminal offence and Government should be able to track these transactions as is done in the case of Cash Transactions over Rs 10 lakhs as Suspicious transactions...................
Tata goes innovative with non-bank owned ATMs
Studies conducted by the Reserve Bank of India show that on a per capita basis, ATM penetration in India has been low compared to other nations, like the USA, Canada and the like. That is why, one of their primary objectives has been to advance growth and increase ATM access across the country. Keeping in line with RBI’s vision of doing so, Tata Communications Payment Solutions Ltd (TCPSL), a wholly owned subsidiary of Tata Communications Ltd, launched Indicash at Koregaon Park and Magarpatta City, in Pune on Tuesday.............
Andhra Pradesh State Coop Bank gets CCTV surveillance
...........The installation of the surveillance system as per the RBI directive, will help the bank provide protection to customers and cause to have strict observation in the premises of the bank, a press release said. The head office premises has been brought under complete surveillance. In the case of the 37 branches, each will have surveillance with 5-6 cameras..................
Ponzi probe panel to summon Trinamool MP
....The official pointed out that though Ghosh would be summoned, none of the 18.5 lakh complainants have made any allegations against him. The commission will probe the role of the RBI and send summons to Sebi and ROC officials and probe how Ponzi firms could operate despite the presence of such regulatory bodies. It also plans to ascertain the role of the economic offences wing of the finance department that was set up to keep tabs on Ponzi firms.............
Banks turn to correspondents to recover loans
.............Last-mile banking agents, known as business correspondents, on behalf of banks take basic banking facilities to the remotest of areas. They are usually in-charge of collecting deposits and withdrawal. Bankers are also hopeful that handing more lucrative assignments to business correspondents could change the game for them by way of tackling a high rate of attrition. Banks are also asking them to identify potential depositors and collect and process loan applications, thus giving a boost to RBI’s financial inclusion mandate............
Tuesday, July 23, 2013
Spare a thought for the RBI Governor
Obituary
We deeply regret to inform that founder Chairman of NABARD and former Deputy Governor of RBI Shri M Ramakrishnayya (93) expired on 22 July 2013 at 06.30 Hrs after a brief illness at his residence at Hyderabad. Team NABARD visited his residence and conveyed condolence on behalf of NABARD to the bereaved family. May the Departed Soul rest in peace.
- Ramakant Kulkarni, Ex-GM, NABARD
Sober and soft hearted E.U.Khan..............
Let
us pray to Almighty to grant eternal peace to the departed soul. I had
an opportunity to work with him for few months in Premises Deptt when he
was GM and found him to be very soft speaking, cool headed and always
ready to listen to you patiently. Such souls come very rarely in this
world. May God give strength to the family to bear this loss.
- Madan Gauria
I
know Mr E.U.Khan personally and very well. We have been mutual
admirers. I feel very sad to know that he is no more. I pray to the
Almighty to bless his soul and give peace to the bereaved family.
- P.Aravind
 |
| Shri Khan receiving a bouquet from Shri Biswas while Smt Udeshi looks on. Retirement farewell function on 31st July 2003 (File photo) |
- Staff Members Premises Department
My View on "Next Gov by choice??"...........
Ms Kamala Rajan has suggested that the next Governor should be decided by a Committee of former Governors. She thinks that these persons would be able to arrive at an unanimous choice ! In my opinion, this is wishful thinking. Just as they did not share the same views on economic and financial matters, they would not also be able to arrive at the name of a common candidate. In any case, appointments to these posts are the prerogative of the 'Cabinet Committee on Appointments' consisting of the concerned minister, Home Minister and the Prime Minister and this practice has been well established. The views of the dynamic and brilliant present Finance Minister are likely to be given a lot of weightage by the Prime Minister.
The view that the next Governor should be one who has a sympathetic view on pension for retirees is too narrow a view and cannot be taken seriously. Furthermore, so long as the RBI acts as the subordinate of the Ministry, it does not matter as to who is at the helm of the Bank for the pension issue.
- A. Chandramouliswaran
My View on "Tackling crisis of confidence in economy ".........
Energy and economic growth are interrelated. What monetarist can do has limitation. Acute power shortage makes cold storages non-functional or mal-functional in all the states where vegetable production peaks. Therefore, cold storages are victims of NPAs in several banks. Energy sector is the villain of the piece. Oil imports are touching unsustainable levels and the current account deficit is mainly on account of oil imports. Remove the component of oil imports the current account deficit is in the most comfortable region. Investors are shy of India in the energy sector as the 'resource and reserves' in oil, gas - natural, coal do not lend confidence. In a dollar-dependent economy, gold reserves and controls do not have much relevance. What we should now target is a good fiscal policy and the government in election mood wants to throw good money after the bad - through ill balanced and misdirected subsidies is putting the cart before the horse.
- Yerram Raju
RBI on a sticky wicket
Unambiguous communication from RBI vital: Shubhada M Rao
..........The recent set of RBI's money market measures was largely unanticipated and, therefore, it resulted in extreme volatility in the rates market; so far, its impact on the currency has remained modest. Additionally, the smoke and mirrors created by other policymakers' multi-speak has thrown markets into confusion. It is ironical that the Fed's tapering of quantitative easing has led to quantitative tightening by RBI. While a revival in economic conditions .............
There is no method to RBI’s madness
Utter confusion and chaos have gripped the Indian money market over the past one week. There could be two explanations for this. One, the Reserve Bank of India (RBI) does not know what it wants and, two, it’s well aware of what it wants but the government does not want the central bank to have its way...........
Shooting the messenger
Given how each measure the government is taking to bring down volatility of the rupee doesn’t seem to have too much of a life-span—within a week of RBI’s actions, the rupee is almost back to where it was at 59.9 to the dollar last week Monday—there seems to be a palpable sense of unease. And while one wing of the government says that everything including sovereign bonds is on the table, another rules out such bonds; .........
Time to get used to a weak rupee
.........And so on. All because of poor governance. Foreign investment does not need an invitation. It pours into economies that are dynamic and progressive. We are far from that. No wonder the rupee stayed put at 59-60 to the dollar and did not respond either to the RBI or to the government. That is the new saddle point we have to get used to.Govt to call on NRIs to defend rupee
New Delhi: The government aims to call on millions of non-resident Indians (NRIs) to help reverse a record slide in the rupee, dismissing for now the idea of a global sovereign bond, senior government officials said on Monday. Acknowledging the country faced a dilemma, the officials said India was running out of options and time to revive the currency and fund a record current account deficit (CAD) but equally it was wary of sending any distress signals to international markets.............
RBI expresses inability to regulate all NBFCs
......“The central bank has sent its comments. They have pointed out that they regulate only those entities that are registered with it. Only those entities where financial assets are more than 50% of their total assets and derive at least 50% of its gross income from such assets are registered with the central bank as an NBFC,” said one of the officials. “They have also said that given the manpower available with them, it is difficult for them to regulate all such entities. The IMG will discuss their comments, but if the central bank does not regulate such entities, then who will?” the official said. The RBI spokesperson declined to comment for the story........
RBI starts scrutiny of nearly 3,000 private finance companies
.....Sources said RBI has started scrutiny of about 3,000 companies that are engaged as non-banking financial company (NBFCs) without being registered with it. The apex bank has sought details from them about their financials, including balance sheets, for the last three years, among others, sources added. Information has been sought from companies that are registered with the Registrar of Companies (RoC) in different parts of the country.............
K'taka Bank exceeds MSME lending target
Public sector Karnataka Bank Ltd has lent an amount of Rs 1,498 crore to the MSME sector, posting growth of 24 per cent against the stipulated 20 per cent growth target of RBI, senior bank officials said on Monday. This was revealed at the 18th MSME Customers' meet conducted by the bank last week in Bangalore.....
Any rate hike by RBI will be a body blow to industry: Kidwai
As the weak rupee raises pressure on RBI to hike interest rates, HSBC country head Naina Lal Kidwai said any increase would be a ‘body blow’ to industry and growth. “I hope that it stays stable because interest rate going up will be a body blow to industry and industrial growth, which is very important, at a very fragile position right now,” Kidwai, who is also the president of industry body FICCI, said in an interview........
RBI may maintain status quo on repo rate, CRR in policy review
..........The predominant view emerging from the poll of 10 bankers, economist and rating agencies indicated that along with inflation and growth, the rupee volatility has also become an important factor for RBI. The central bank will like to monitor the impact of the steps it took last week (July 15). Repo rate is the rate at which RBI lends short-term money to banks, while CRR is a portion of deposits that lenders keep with the RBI which does not attract any interest...........
Finance ministry queries Bank of Maharashtra over 34% increase in lending
............."No rules were changed or loans sanctioned. Our results speak for themselves and we are sure the ministry will be convinced," the bank executive said. Bank of Maharashtra reported a whopping 255% growth in its net profit for the fourth quarter of 2012-13 at 258.99 crore, against 72.83 crore in the year-ago period. The net profit has shown a 76.29% year-on-year growth. A finance ministry official, however, said the government has sought data to analyse whether the bank has followed all due diligence. The official said the bank had been cautioned by the Reserve Bank of India around the second quarter of last fiscal, as it had breached some sectoral norms..............
Government allots Rs 1,300cr to Post Bank
......To meet RBI norms, the postal department proposes to set up a new entity - Post Bank of India - that will have an independent board and separate operations. Apart from independent directors, the board will have representatives from the finance ministry and the postal department. Separate recruitment has been planned to have specialist bankers. While converting the entire postal network would have meant a capital requirement of over Rs 60,000 crore, by setting up a special entity, the fund requirement has been reduced. This, officers said, will also help create a more focused strategy............
The Big Bank Rush
.........A banking licence will allow the group to tap its existing customer base of SMEs and truck operators. “We can give them a working capital facility, and they pay interest only on the amount they draw. Today, we necessarily have to give them term loans, which they draw in full and end up paying interest,” says an official..........
Open to setting up a bank, says Bajaj Finance
......"As per RBI guidelines, we will have 18 months time for such conversion. We have enough the required wherewithal to do the business of banking. Through our current NBFC set-up, we are primarily serving affluent customers. However, we are trying to expand our product kitty to include more customers. We have just entered the rural markets," ...........
RBI puts more curbs on gold imports
........"It shall be incumbent on all nominated banks/nominated agencies to ensure that at least one fifth of every lot of import of gold (in any form/purity including import of gold coins/dore) is exclusively made available for the purpose of export," RBI said in a notification..........
Gold and the CAD
............Gold essentially plays the role of a pre-paid credit card. In the long term, this role of gold can only be curbed if insurance companies develop an effective outreach business model, whereby event insurance is obtainable as easily as at an NBFC window. Even so, the role of gold as a friction reducer in the financial system may persist for a long time. At the end of the day, there is only one solution to the gold problem, and that is by offering financial instruments in exchange for the surrender of gold, from which the incremental demand for gold can be met............
Is curbing gold imports an effective measure?
........Consequently, RBI has been taking steps to curb gold imports, such as hiking the import duty and imposing regulatory restrictions. While this step may be desirable, it may not be necessarily effective. Alternatives for curtailing CAD (a consumption-aided disaster) such as reducing government expenditure exist and might be better. The crucial question is why the government remains hesitant to adopt these measures...............
We will review our options after formal NSE order: Mehul Choksi
.........At 23 per cent, foreign institutional investors’ (FIIs) holding (in Gitanjali) is the largest in any jewellery company in India. FIIs perceived RBI’s gold import restrictions to impact our company, because it’s a global player. However, in fact, our business in the US market has improved in the past few months, thanks to the revival in the overall US economy..........
Will chip-based cards succeed in reducing credit card fraud?
.......The embedded chip is capable of storing and transacting data in an encrypted, tamper-proof format, protecting the cardholder from sundry security threats. The advanced technology apart, the RBI has mandated banks to introduce an additional layer of security at POS terminals as well. Cardholders will be required to enter a unique PIN to complete any transaction.........
Just Retired? Look For Inflation-Beating Returns
The
prospect of retirement often brings some people face to face with the
hard reality that in some months they will not be working anymore. For
many, retirement also means that from then on they have to be careful
about having enough funds that will outlast them. With the rate of
inflation going up at high single digits or, at times, in low double
digits, this could be a daunting task for many as they fail to take judicious steps just at the time of retirement or may be a few months before that happens. Here we will discuss some of the issues that just-retired people or who are on the verge of retirement face and how they should address them................
Read - TOI
Read - TOI
10 financial steps you must take before you retire
Do not put off today what you can not afford to do tomorrow. In spite of the world wide pension crisis and a growing acceptance that we must plan and save for our retirement, the harsh reality is we are actually not saving enough. Research reports reveal that only 15 per cent of the individuals are saving sufficiently for their retired life. Here are a few tips on things to do before you retire so that your retired life is more comfortable and enjoyable..................
Income tax returns: 6 new sections where you can save
Income tax filing due date is getting closer. However, quite a lot of tax filers are still not aware of all the deductions that could be availed of. It is always good to be updated on the latest tax deductions. It helps one in maximizing the tax deductions, hence minimizing the tax to be paid. Let us now look at some of the latest sections available for tax deduction from FY 2012-13 onwards....................
‘Wilful Blind Eyes’ are a threat to banks and financial institutions
.........These wilfully blind eyes operate hands-in-glove with the shoddy characters. They deliberately ignore the obvious and allow them to do their job freely. These wrongdoings could be money laundering, terror financing, insider trading, fraudulent activities and many other such similar criminal acts. If these wilfully blind eyes happen to be employees of a bank or a financial institution, they will be subjecting their organisation to embarrassingly huge compliance, legal and reputation risks and also cause its demise. Institutions can also be wilful blind eyes.............
What is Microcredit?
...The annual interest cap for extending microcredit is pegged at 10-12% that is over and above the cost of borrowing of lenders of microcredit. The limit for extending unsecured loans by RBI is further pegged at INR 50,000. The guidelines also suggests microcredit lenders not to provide loans to individuals who have already availed loan facility from elsewhere. leaving most charging 23-27%...........
Read..........
‘Few Ahmedabad citizens keep emergency funds’
.....The survey’s findings substantiates the Reserve Bank of India’s (RBI)’s recently released annual report, which suggested that the financial savings of Indian households, as a proportion of the gross domestic product (GDP), plummeted to a 20-year low of just about eight per cent in 2011-12. About 90 respondents in Ahmedabad said they have not set up any fund to deal with emergencies such as sudden loss of job, death or a medical emergency in family, natural calamities, delay in income, sudden relocation and other such unpredictable factors..........
Mystery of the missing bank scam accused
The prime accused of the Indira Priyadarshini Mahila Nagarik Cooperative Bank, Umesh Sinha had gone "missing" after creating a political turmoil in Chhattisgarh. Sinha, the then bank manager, had come into the limelight when Congress leaders released a CD on Saturday revealing the transcript of his narco-analysis test conducted in Bangaluru in 2007. The bank manager had reportedly named Chhattisgarh Chief Minister Raman Singh and four of his ministers for receiving huge pay-off after the scam hit..........
Bank exams: eligibility criteria relaxed
.......The relaxations include removing the 60% limit on marks received at graduation, scrapping the computer literacy requirement and raising the maximum age to 30 from 28, the finance ministry said in a release on Monday. All graduates can apply, irrespective of the marks they get............
Monday, July 22, 2013
Food Security law would trigger inflation in non-carbohydrate food: Subir Gokarn
........Post his "intense" stint at the central bank "where there was never any let-up", Gokarn now steers the research agenda at the Indian arm of one of the world's most respected think-tanks — Brookings Institution. Brookings India's founders include the who's who of India Inc, including Reliance Industries' Mukesh Ambani, the Birlas and the Tata Group. Edited excerpts:--
Corporate lending rates: Sterile debate - DR. N. A. MUJUMDAR
......Reverting to substantive issues, is there any empirical evidence to support the thesis that financial engineering can by itself, generate real growth? RBI Governor D Subbarao, has given a convincing answer to this question in his foreword to the RBI’s Financial Stability Report ( No. 7 issued in June 2013): “ In the years before the global financial crisis of 2008, the financial sector took on a life of its own with a growing belief that real growth can be generated by sheer financial engineering. That myth is now demolished. We now know that the financial sector has no standing of its own: it matters only to the extent that it aids the growth of the real sector. It is this wisdom that must guide the ongoing global effort at financial sector reforms: it is this wisdom that must inform the Reserve Bank’s policies and actions.” The financial system can aid but not generate real growth.............
Tackling crisis of confidence in economy - Dr. T. V. GOPALAKRISHNAN
...The foremost thing is to bring down the inflation and any cost incurred by the Government and the economy. The RBI has been doing its best for the past few years but it was not given the attention it deserved by the Government. The RBI’s efforts have kept inflation under check and below the double digit. Raising resources from both domestic and external sectors are the major hurdle and herein lies the solution to give strength to the economy..............
Demise of a humble persona.............
Very sorry to inform about the sad demise of Mr. E.U.KHAN (70), Retd. Chief General Manager, Premises Dept. CO. Mumbai on Sunday, 21 July 2013 at about 8 pm in Saifee Hospital, Mumbai. We pray for the departed soul to rest in peace. Funeral on Monday, 22 July at 1.30 pm at Mira Road, Mumbai. Residence: Asmita Vintage A204, Asmita Heritage compound, Near N. H. School, Mira Road East.
Son's Mobile phone number:
- Irfan 9867145533
- Akram 8828449190
- A.U.Shaikh, Mumbai
Remembering K.S. Krishnaswamy: Essential Mysorean and Sensitive Economist
.........Many years later, as I was building a small centre for women’s studies, and he was the Deputy Governor in the RBI, I went to see him and made him more or less swear that when he retires to Bangalore, he shall not join the councils of the famous centres of economic research in Bangalore, like the ISEC or IIM or any other, but will join and advise our little centre called the Institute of Social Studies Trust—which he did! ............
Read............
Question of change or continuity hovers over Indian central bank
The identity of India's next central bank chief remains a matter of speculation even as Reserve Bank of India Governor Duvvuri Subbarao scrambles to support an embattled rupee with less than seven weeks to go before he is due to leave office. An extension of Subbarao's tenure, once unlikely, has become a possibility as the rupee reels from a selldown of emerging markets that has hit India especially hard because of its high current account deficit...............
RBI chief Subbarao not offered job extension so far
 |
| .................."No offer has been made so far, so there is no question of accepting so far. It is a hypothetical question. As I said before, I must move on,"................. |
Rajan, Mayaram in race for RBI Governor’s post
.......While India negotiated that crisis relatively unharmed, the latter part of Subbarao's tenure spawned a stark dilemma as fiscal and monetary measures to tame inflation, while failing to hit the target, cast side effects on growth. He has presided over decisions to repeatedly raise lending rates to cool prices. In the last few weeks, the sharp decline in the rupee has added to the array of problems for the RBI Governor who has, so far, withstood pressure from all quarters to slash lending rates. He has also ushered in key reform measures including savings bank rate deregulation and a plan to issue new bank licences.
Next Gov by choice??
In
my view the choice of the next Governor of the RBI should be identified by a
Committee of ex Governors of RBI as they know best what are the demands and
expectations of the job and the country and they have been in the high echelons
long enough to know the potential of the candidates available.
- Kamala Rajan, CGM, UBD
Through the VITALINFO I wish to share my thought on behalf of ALL THE RETIREES that next GUV should be one who can think of the plight of retirees if Pension Updation is not finalised at the earliest. We are not going to be affected whether a person is close to PM or FM or someone else. Our only concern is that PENSION UPDATION SHOULD BE TAKEN UP ON PRIORITY BASIS. Otherwise koyee aye koyee jaye......mainoo kee.......
- K.S.Wadhwa, Retd. PS
Anonymous view on VITALINFO........
As rightly said, one can express frank views in VITALINFO and Re-Tyred Express without reserve and without fear of hierarchy or APAR. However, let us acknowledge that VITALINFO/ Re-Tyred Express is not a platform for score/avenge. All writers may kindly ensure that their contributions are free from admonition of x or reflective of idiosyncrasy. In sum, let the views expressed in VITALINFO/Re-Tyred Express necessarily be those of the authors /contributors.
- Anonymous
My View on "Time to cleanse banking in India"
This is a timely caution to government and regulators in the financial sector. Perhaps, confused with the shifting and dodging of responsibility by various authorities including finance ministry in the financial sector, FSLRC went to another extreme of suggesting a single regulator for financial sector. In the Indian context, such an institutional change may not happen that soon. But, regulators and GOI as also state governments should take cognizance of the blatant violations of established law by several agencies and take remedial action by following a coordinated approach. Coming to the limited issue of money laundering, finance ministry should take immediate supportive measures to follow up the symbolic action taken by RBI using its powers categorizing the goings on as a ‘KYC’ issue.
- M.G.Warrier
My View on "RBI to open financial literacy centres"
It is comforting to find that RBI is taking forward the initiative to promote financial literacy vigorously .While such efforts will yield results in states like Kerala where literacy level is high, across the country the position is pathetic. There were 11 states with literacy rate below the national average of 74 per cent in 2011. These states together accounted for 55.76 per cent of the population (121 crore-Provisional). Kerala, Lakshadweep and Mizoram had literacy rate above 90 per cent. Himachal Pradesh, Chandigarh, Delhi, Sikkim, Nagaland, Tripura, Daman & Diu, Maharashtra, Tamil Nadu, Pondicherry and Andaman & Nicobar Islands had literacy rate between 80 per cent and 90 per cent. Literacy rate in the remaining 9 states/UTs was above national average, but below 80 per cent. States and Union Territories with below national average (74%) literacy rate. One wishes, GOI joins hands with RBI and guides states to improve literacy at primary and secondary school levels.
- M.G.Warrier
Mind elsewhere!
It is customary for speakers, especially the chief guest, to make platitudinous remarks about what an honour or pleasure it is for them to be in any conference. In a rare and candid admission at a recent conference on financing strategies for urban infrastructure conducted by the Centre for Advanced Financial Research and Learning (CAFRAL), RBI Deputy Governor H. R. Khan, said, “It is a pleasure being here, but my mind is elsewhere!” He was alluding to the anxiety in the RBI and among market players following the series of steps taken to curb liquidity. Luckily for him, nothing untoward happened.
Mayaram meets RBI brass
Mumbai, Jul 19 (PTI) With the troubles on the macro-economic front continuing, Economic Affairs Secretary Arvind Mayaram met the Reserve Bank brass, including Deputy Governor H R Khan, here this afternoon. Coming out of the hurriedly convened meeting, which lasted for two hours, Khan described it as a "routine meeting", but refused to divulge any details. Apart from Khan, who looks after the internal debt management, the meeting, held at the central bank''s office in sub-urban Bandra Kurla Complex, was also attended by RBI Executive Director G Padmanabhan, who oversees the Foreign Exchange Department..........
RBI to conduct inter-school quiz on August 8
The Reserve Bank of India (RBI) will conduct RBIQ, an all-India RBI Inter-School Quiz at Carmel Girls Higher Secondary School, Vazhuthacaud, here, on August 8, from 9.30 am to 12.30 pm. The event is being organised with a view to create awareness and interest about the history and role of RBI, about banking and finance, other banking institutions, economics, current affairs, personalities and events that have contributed to the growth and progress of India over the years..........
Now, currency exchange cell at various banks
KANPUR: Exchanging damaged currency notes with fresh ones has been made easier by the authorities of Reserve Bank of India (RBI) by setting-up currency exchange cell at various banks in the city. Even the mutilated currency notes, with essential features intact, can be exchanged at designated branches of the banks, RBI said in its issued press release.The exchange facility is available at 38 branches of government banks while eight private banks will also offer this facility to the citizens. RBI has also asked the all bank branches to accept coins and currency notes for transactions or exchange.The designated branches have also been asked to display prominently a notice saying, 'Mutilated notes are accepted and exchanged here' for the convenience of the customers.
Programme on ICAAP and SREP by CAFRAL
The objective of the programme is to have a thorough discussion on the issues related to Internal Capital Adequacy Assessment Process (ICAAP) and Supervisory Review and Evaluation Process ( SREP). It has been specifically designed and targeted at the senior officers of banks who are responsible for implementation and validation of the ICAAP document as well as Inspectors in the Banking Supervision departments of RBI who would undertake SREP..........
RBI online exam postponed
Srinagar, July 20: Reserve Bank of India postponed the online examination for the post of Assistant which was scheduled to be held at Srinagar and Baramulla on July 20 and 21. “The examination has been postponed due to the prevailing situation in these places,” RBI said on its website. The revised dates of the examination at these centres shall be intimated to the candidates, it said.
Greater Kashmir
Stung into action
.............The question that arises, therefore, is: Why has the RBI seemingly woken up only now and gone on to impose fines on 22 banks (in addition to three others in June)? Has all this come about only because of a ‘sting operation’ by an online news portal, apparently showing officials from three banks willing to accept large amounts of unaccounted cash and deploy these in suitable investment schemes? The fact that the RBI scrutiny happened just a month after the news portal’s expose does indicate so. Given the compulsions that banking staff face to keep deposits flowing, it would be a folly on the part of the RBI to count on their good behaviour alone as the basis for compliance with KYC norms........................
Misuse of funds: probe begins against cooperative bank
.........The chairman said under the scheme, Rs. 5.30 crore was credited to the bank in 2009 and subsequently the amount was credited to 1,390 beneficiaries. “Since then, three audits have been conducted and no one has objected. When the CAG reported loans had been given to ineligible beneficiaries, we remitted an amount of Rs. 1.05 crore in June and Rs. 3.7 crore on July 15 to the Reserve Bank of India. When we have remitted the amount, the question of misuse does not arise,”...............
'Politicians should be barred from running district cooperative banks'
............ At a time when the DCCBs, are in news for wrong reasons, Kailashchandra Agrawal, a veteran of cooperative banking, feels it is time to bring about a fundamental change. "Cooperatives should be out of political influence and more entities should come under the Reserve Bank of India's (RBI) ambit," he says. The director of Maharashtra Urban Cooperative Bank's Federation, Agrawal is also a member of Task Force on Cooperative Urban Banks (TAFCUB), a committee under Reserve Bank of India, for monitoring the banks' performance.
Excerpts from an interview............
INDIAN BANKS FACE REPUTATIONAL, OPERATIONAL RISK
.... All
banks are in overdrive to improve their operational risk management
which includes evaluating all processes and systems. Banks are now
insisting on multiple documents to verify a customer’s identity instead
of just one. But the job of bankers will become difficult in a country
where everything from fake passports, to fake stamp paper are freely
available...............
Why Seniority Based Promotion IS Comparatively Better?
........I therefore always plead for seniority based promotions and punishment to those who do not perform in the view of assessment committee manned by ten senior officers. Though management of banks have been advocating and pretending to put in action merit based promotion for last two to three decades , the assets of banks is moving from bad to worse despite all so-called reformatory steps taken by RBI and Ministry of Finance from time to time..........
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