........What is significant is that this trend has begun ahead of the policy review by RBI Governor D. Subbarao on July 30 and at least one bank Chairman (State Bank of India CMD Pratip Chaudhuri) has openly expressed the view that it is better to hike interest rates rather than smother liquidity with a view to shore up the Indian rupee............
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Monday, July 29, 2013
A Little Certainty, Governor Subbarao
............
Nobody expects the RBI to cut policy rates: keeping current rates may be
the best way forward. The outlook is very clouded, but one thing is
clear: the RBI can legitimately hope that the current exchange rate
stabilises. But if the market drives the rupee down, don’t fight it —
that’s wrong, and unsustainable.
Read - ET
‘Dear money policy is not a great recipe for growth’
..........The RBI is trying to curb the steep fall in rupee by mopping up excess liquidity. The intent is to reduce the excess liquidity which banks seem to be using for taking speculative position in the exchange markets. However, a prolonged money tightening policy will hurt both banks and the industry. If these measures continue for more than three months, then banks will be forced to raise lending rates due to higher cost of funds. This will in turn lead to more stress in asset quality for the entire sector. Also, banks will witness significant treasury losses in the September quarter, on their marked-to-market portfolio of SLR (statutory liquidity ratio) investments.......................
Monetary policy: more than usual dilemma
.............But for observers, this might be the correct time to start looking at the whole of the monetary policy statement, not just to the section on monetary measures for understanding the extremely complex environment in which policy choices have to be made.
Too many risks, too small rewards call for caution
.........“At present RBI is supporting the rupee, but the measures to control rupee volatility have been negative for the market as the risks are very high,” Mathews said. “As risks have gone up, market participants are concentrating only on some of the large-cap stocks that are fundamentally sound,” Mathew said. “I am a bit cautious in taking risks and we are trading very cautiously, so much that all trades are ending on the same day,”.........
RBI has debased the rupee; no hope in next Guv too
It’s not that we necessarily need a foreigner, but just that nationality should not be a criterion for choosing Subbarao’s successor
............. After all, in all these years where the RBI has been continually debasing the rupee, they have expressed their support for a easy money policy either explicitly or through their silence. What we really need at the RBI is far-reaching reforms that in effect end the monopoly of the RBI in the issuance of money. We need alternate and private monies to circulate and let the RBI compete against the barbaric relics with its PhD economists and let the markets decide the winners. Let us provide a choice to consumers about the currencies they want to save in – this would force the hand of the RBI to behave more responsibly in the future and not just bow down to the wishes of their political masters.................
A rock and a hard place
........... While the ostensible purpose of these measures, stabilising the rupee, seems to have been achieved at least for now, there may be an adverse impact of these actions on the growth-inflation balance, on which monetary policy has been focused until now. In this regard, the latest readings on core inflation and industrial production do make the case for monetary stimulus...............
RBI's bitter medicine
The intent of this analysis is to decipher the rationale behind RBI’s recent regulation to stem the rupee volatility and to establish whether these measures could potentially open up a few positives (beyond a support for the rupee) for us in the near term. I believe that the benefits of steps taken by RBI will be visible in some time and that RBI could perhaps tweak some regulations to achieve its goal, at the same time balance expectation of the stakeholders............
In rupee-growth dilemma, RBI may go for status quo on rates
............“It will be a tightrope walk for the central bank. Growth was required to be supported, but the recent exchange-rate volatility has compelled it to tighten liquidity. Holding on to the liquidity control is essential at this point to keep the exchange rate under control. So, there is very little scope for RBI to take an action (for supporting growth),”................
Rupee will be the focus of RBI's monetary policy on July 30 instead of growth and inflation
MUMBAI: For the first time since the 1997 East Asian crisis, the Reserve Bank governor's prognosis for the Indian rupee will take centre stage at the quarterly monetary policy on July 30, instead of interest rates. In what could be the last quarterly monetary policy unveiled by Duvvuri Subbarao, the bureaucrat-economist will explain his recent actions that have left most investors flummoxed..............
Decking up the rupee
.............The RBI should, in its upcoming policy review on Tuesday, make it clear that the current monetary measures are only temporary and do not amount to a reversal of its gradual easing stance until recently. This is a time when the Indian economy can neither afford a further growth slowdown nor a slackening of fiscal and external stabilisation efforts.
Importing gold is impossible now
.....Owing to the RBI notice, the Ahmedabad bullion market witnessed zero deals among traders and retailers. “When we go to bank to buy gold, they show us the RBI notice which says that we have to keep 20 per cent of that aside for export. We are not exporters. We do not even have any export orders. So, not a single bullion trader or jeweller in Ahmedabad bought gold on Tuesday. This would lead to gold entering the country via illegal means,” said Zaveribhai Zaveri, president of the Gujarat chapter of All India Gems and Jewellery Trade Federation. ...........
Of gold bars and coins
................Due to this increase in CAD, the Government suspended the sale of gold bars and coins, a move that is likely to continue till the deficit is reduced to a significant extent. Small and large jewellers, and major jewellery retail chains have been requested to stop sales and taking orders of coins and gold bars. Besides this, the RBI too has put restrictions on banks on imports of gold. Import duty was hiked to 8 per cent...............
IRDA bancassurance norms may be delayed
The Insurance Regulatory and Development Authority (IRDA) guidelines for tie-ups of insurance companies with banks for distribution of products may be delayed as the feedback to the regulator reflects divergent views from various stakeholders, said industry experts. Some insurance companies that do not have tie-ups with banks have recommended to the Life Insurance Council that a bank should be allowed to strike deals with five insurance companies, at a limit of 25 per cent an insurer. However...................
All bank branches to have one ATM before March 2014: Chidambaram
Sivaganga: Public sector banks have been asked set up ATMs in all branches by March 2014 to enable customers in rural pockets to do banking round-the-clock, finance minister P. Chidambaram has said. Inaugurating the 5999th branch of Punjab National Bank (PNB) at nearby Tirupattur, he said orders had been issued to all nationalised banks in this regard and their CMDs had been asked to implement the same in the current financial year...............
‘Use Kannada in banking activities’
......... “It is the desire of our government to encourage the use of Kannada in day-to-day banking activities.” It was also necessary to ensure that employment opportunities were expanded for persons knowing Kannada........
M S University clears way for Rs 2.50L recovery from deputy registrar
VADODARA: M S University's (MAS) syndicate members have cleared way for recovering Rs 2.50lakh that the university's deputy registrar M MBeedkar had drawn as remuneration from the Reserve Bank of India's (RBI) Endowment Unit at the university. Over and above his own salary,Beedkar, earlier in-charge registrar, had drawn Rs10,000 per month from the unit that was lying defunct for years................
Gujjars file petition against two banks, allege discrimination
A petition was filed before National Commission for Schedule Tribes and Reserve Bank of India against two banks operating from Jammu and Kashmir accusing them of ignoring candidates of Gujjar and Bakerwal communities for the post of Relationship Executives..............
Aadhaar or Cards? A Costly Debate
Will
banks have to spend a fortune to give customers the choice of either
putting their finger prints or swiping plastic cards to withdraw money
from ATMs and pay for purchases? Not really, says the Unique
Identification Authority of India (UIDAI), the agency that issues the
12-digit Aadhaar numbers and is pushing for biometric authentication for
credit card and ATM transactions. But bankers disagree.................
Consumerism floats on credit cards
.........."Due to the larger global economy impact, there was a phase where issuers were exercising more caution on expansion plans but this has changed in the recent times. In the last 18 months, consumerism is back and there has been an increase in spends across some of key categories such as EMI transactions, utility payments, mobile bill payments, apparel and travel segments," ............
No credit to cards
Even as the Reserve Bank of India promotes the use of cards instead of cash, this correspondent learned the hard way how difficult it is to transact business using a debit card. A showroom in Dombivli suburban Mumbai demanded a service charge of two per cent for a washing machine that cost Rs 15,000 on an ICICI Bank debit card. The shop owner was candid: “We have an HDFC Bank point of sale machine and they deduct two per cent from our account even without us knowing. Only after we get the statement we come to know about the charges.” He refused to accept even a cheque. . Life will become simpler if banks start taking the RBI seriously.
HBL
Saturday, July 27, 2013
RBI can still tighten the screws - A,Seshan
........There is a view that the July 30 review will be a non-event due to the recent policy announcements. However, there is scope for some fine tuning. Thus the interest rate on Marginal Standing Facility that has not been utilised except for small amounts may be reduced by 100 basis points to make life easier for banks that are hit hard. Just as the July 15 measures tightened the policy without seeming so, now the central bank can appear to relax the measures though not in reality! RBI can also think of raising the SLR that would reduce the surplus securities in the system and the access to repos and provide price support to bonds..........
Fraud on banks, more by the rich, says RBI’s K. C. Chakrabarty
 |
| .............“When the times are good, the rich steal. When the times are bad, the poor people also steal. But this means rich people are stealing more,”............... |
"Debar fraudster from all banking transactions"
While addressing the ASSOCHAM conference on Financial Frauds: Risk & Prevention, here, Chakrabarty said, “establishment of a Fraud Registry on the lines of credit information bureau could be considered.” Sharing the information that the bulk of the frauds relate to high value transactions of advances (Rs. One crore and above), the RBI Deputy Governor said unfortunately detection of advance related cases mainly is after it is classified as the NPA (Non Performing Asset)..............
Swaraj school team wins city round of RBI quiz
KANPUR: The Reserve Bank of India on Friday organised the Kanpur round of All India Inter-School Quiz-2013 at Ragendra Swaroop Centre for Performing Arts. Former MP and educationist Sunil Shastri inaugurated the event in presence of regional director of RBI (UP and Uttarakhand) KR Das and IIT-K's Shri Prasad. Senior officers from RBI, commercial banks, financial institutions, local administration and educational institutions were also present...........
'Scalability holds key to financial inclusion'
A big challenge in implementing financial inclusion in the future will be the evolution of technology that is scalable enough to accommodate huge volume of transactions, according to the Chairman and Managing Director of Bangalore-based public sector lender Vijaya Bank, H S Upendra Kamath............
Why You Can Bank on India Post
...............Unlike what many believe, a Post Bank of India (PBI) will be a completely new entity with no legacies of a government department and very little to do with its parent, except using some of its network. It will have an independent board and just two members from the government, one from the finance ministry and another from the department of post. Geographically, the India Post network beats the entire banking system in the country. The ubiquitous mail carrier is present in more than 1,55,000 locations in India, 90 percent of them in villages. On an average...........
My View on "The ball is in RBI’s court - S.S.Tarapore".............
The observations (a) In the ensuing few months, political economy constraints would prevent the Government from taking strong rectification measures, (b) Hence, the Government should give the RBI a free hand to crush inflation with unequivocal monetary tightening, and (c) The Government must recognize that when there are political economy constraints, it is only monetary policy which can hold up the rear, could turn out to be prophetic in 2013-14. GOI has an option to allow the central bank follow the path of prudence and caution it has been following or to follow a pre-election-come-what-may approach. Weakening the RBI in any sense at this juncture will have disastrous consequences.
- M.G.Warrier
Policy review: RBI Governor, Chidambaram go into huddle
The policy review, scheduled to take place on July 30, could be the last one by Subbarao, unless he is given an extension after his five-year term ends on September 4. It is customary for the Governor to meet the Finance Minister before a new policy or a review of the existing policy to discuss the macroeconomic situation. However, Subbarao refused to comment on what transpired in today’s meeting. He also did not answer a question on whether the recent steps by RBI to tighten liquidity have had the desired impact. Despite all expectations, the RBI is unlikely to cut policy rates...............
Signals from Mint Road
D Subbarao, who completes his five-year term as RBI Governor on September 5, was recently criticised by Arvind Panagariya, professor at Columbia University and a noted economist, on the ground that the central bank did not build foreign exchange reserves when the rupee was appreciating in 2009-10. Business Standard takes a look at the performance of RBI Governors since 1990..............
RBI meet on July 30 holds no promise: CNBC-TV18 poll
..........Majority of bankers and economists polled by CNBC-TV18 believe that Subbarao will leave repo rate and cash reserve ratio unchanged. The vote is completely divided. About 60 percent believed that the repo will stand at 7.25 percent for the rest of the year. 10 percent think there will be a cut of 25 basis points, and 15 percent see a cut of 50 bps. Whereas, 15 percent of the sample expects a hike in repo rates. The market is also divided on..........
Why RBI may not hike rates next week
..........."Let's at least commend policy makers both at the central level and RBI for taking tough bold measures last week...and at least there are first signs that the currency has begun to stabilise. I think loose talk about it going to 63-65 has left the public space,"..............
Pulling out all the stops
On Tuesday, the Reserve Bank of India sought to reinforce last week’s package of measures curbing liquidity in order to check speculation in the currency markets. In beefing up an already rigorous package so soon, the RBI is sending the message that it will pull out all stops to defend the rupee from falling below Rs.60 a dollar, which, according to market consensus, is the target level.............
I share your concern about rates: PM to tell India Inc
..........Over the past two weeks, the RBI has deployed a variety of measures to block the slide of the rupee against the dollar and other currencies. All its measures have led to a rise in the interest rates for banks and consequently, for industry too. The PMO's position seems to be at variance with the RBI line............
Home coming for Sanjiv Mehta
.......Since his father, S.P. Mehta, worked in the accounts section of the RBI, Mehta decided to become a chartered accountant. He then went on to do an Advance Management Programme at the Harvard Business School..........
Anoop Singh to quit as IMF's Asia Pacific Director
WASHINGTON: International Monetary Fund (IMF) today said its Asia Pacific Director Anoop Singh has decided to quit in the coming months. An IMF veteran Singh had earlier served as special advisor to the Governor of the Reserve Bank of India (RBI). .........
10 tips for students heading abroad
......The RBI regulation states that 'for studies abroad the estimate received from the institution abroad or $100,000 per academic year, whichever is higher, may be availed of.' So you can freely remit an amount of up to $100,000 per annum from India towards the tuition fees. If your fees ...........
History shows India's growth worry will override Re defence
.........."Yes, exchange rate stability is the focus now in the short-term," said a RBI official, declining to be named as he was not authorised to speak to the media. "But that is because, in the long-term, we want to protect growth for which we have to focus on the exchange rate in the short-term." That view point was backed up by country's chief economic adviser, Raghuram Rajan, who told a television channel on Thursday that policy measures were geared to stabilising the currency with "minimal damage" to growth.
The poverty question
.........Even today economists have not been able to offer any solution to accurately identifying who is poor. C Rangarajan is the head of a commission that is yet to submit a report to redefine poverty or how to measure poverty or who should be called poor. We have the Abhijit Sen Committee which is yet to identify who should be entitled to the benefits meant for the poor..............
Friday, July 26, 2013
In Defence of D. Subbarao
 |
| Damned if you do, damned if you don't. That's the lesson RBI Governor Duvvuri Subbarao will take away when his five-year tenure comes to an end in September this year........... |
........... In recent times, inflation has reached double digits only in the early and mid 1990s. Since then it has remained a single-digit figure. One must give credit to Subbarao for bringing down inflation to 4.7 per cent in May this year. Also, Subbarao assumed office a month before the Lehman crisis broke. The world has seen worse since then. The crisis is still lingering.
Is Subbarao really one of the worst RBI Governors?
 |
| ..........So, calling Subbarao one of the worst RBI Governors may not be fair. After all, he was utilising the limited monetary policy tools in his kitty. Measures to bring about fiscal correction and to resolve supply-side issues are to be taken by the government........... |
No to another Guv from MoF - Sitendra Kumar
According
to Arvind Panagariya, professor of economics at
Columbia University, performance of D
Subbarao has been worst in RBI history. Allowing unlimited forex
borrowing, not building enough forex reserves when Re appreciated in
2009-10, increasing rates and not putting enough emphasis on growth are
some of his failures. How are we going to pay for this?
MORAL OF THIS ARTICLE
Never buy the horses from the same place. Don't bring another GUV from Min of Finance. The story will replicate like uncontrollable chain reaction.
- Sitendra Kumar
Subbarao's tenure - More transparency in Monetary Policy - M.G.Warrier
Let me pick up two observations made by the esteemed economist:
"In a way, this new policy started with the current RBI Governor. I am sorry to say, but the timing connects to his tenure. His public pronouncements suggest to me that he really stands behind this policy,"
My view:
Definitely, there has been a shift for the better. More transparency and an effort to force fiscal policy support for Monetary Policy initiatives moving out from an eagerness to comply with signals from North Block to mention two things that separated Dr Subbarao’s tenure so far from the earlier Governors.
Panagaria said,
"We finally provoked him... we said we will question you and you have to answer" instead of just pronouncing on ideas and positions. "Ten years ago. nobody questioned Amartya Sen. Not today. The whole debate has been unleashed," he said.
My view:
An open debate on all issues covered in the latest book ‘An Uncertain Glory’ co-authored by Amartya Sen will do good to India, if the purpose is not to prove X or Y wrong, but to enable Planning Commission and those in charge of development efforts in New Delhi understand the ground level position better and move forward.
- M.G.WarrierSubbarao's tenure - A journey of challenges - DR. T.V.GOPALAKRISHNAN
The present RBI Governor's period is some thing unique in the history of RBI. He took charge when there was global financial turmoil and he had to ensure that Indian Financial system and the economy escaped unhurt because of the crisis. Subsequently, he had the misfortune of fighting both inflation and growth without the support of the Govt and the fiscal policy measures. Not only he failed to get the support but also had to face the displeasure of the Govt in not yielding to its pressures to dance to its tunes. He had to face the humiliation when the Govt set up the FSDC and made the RBI as any other institution like SEBI and IRDA without having any supremacy which as a Central bank of the Country it is entitled to. Adding insult to injury, the Government started giving directions to banks directly bypassing RBI. This gave the banks an upper hand and they gave the impression that they cared for more the Govt than the RBI. The SBI the biggest commercial bank instead of giving full support to RBI to ensure success of its monetary policies opposed RBI's every move to curry favour from the Government.The banking system failed both RBI and the Govt leading to such a pathetic condition of the economy.The banks tried to undercut both and landed themselves in liquidity crisis bringing down deposits, adding to NPAs and creating unprecedented mismatch between assets and liabilities. SBI chief has been against RBI policies and has been some sort of indirect support to other banks in challenging RBI measures. The result is the Govt suffers, the economy suffers, the banking system suffers and RBI has to tackle everything together. But the Governor will prove to be right in his thinking and actions if the Govt and the banks dare to introspect as to what they have done to RBI during the last three years in particular and realise their follies. Governor can keep his head high for his boldness and the challenges he faced to maintain the Reserve Bank's importance and supremacy without yielding to the pressures of the Govt and without having the normal cooperation and support of the banking system. Subbarao's era will have some special place in RBI and Indian Economy's history for the challenges he faced both from the Govt and the banks. The economists will reailse the important role played by RBI during the most inactive performance of the Govt when they introspect in leisure.
- DR. T.V.GOPALAKRISHNAN
Our Indian Adventure – time to explore
Two weeks into our internship and our group have firmly got into the swing of working in India. The big economic news in India at the moment is the devaluation of the rupee and the RBI’s attempts to rectify this matter, which has made our perspective from within the bank particularly interesting, especially for Alex and Cameron who are focusing on Foreign Exchange for their project. No two days have been the same at the RBI, whilst working on our projects we frequently talk to members of staff about the Indian Economy, its future prospects and the cultural shift that is taking place within Indian society. Each pair has a mentor for their project, with mentors coming from a variety backgrounds ranging from Mr Mugunthan, a Harvard graduate, to Mr Murthi who spearheads projects introducing banking to India’s rural areas. Our projects cover a variety of topics; Phil and Jess are focusing on Microfinance and its effects on India’s banking sector, Jennifer and I are researching Poverty Alleviation and Harriet and Ben are studying the RBI’s schemes to improve Financial Inclusion......................
Read...........
(A team of students from Newcastle University are currently doing internship at the College of Agricultural Banking, Pune)
(A team of students from Newcastle University are currently doing internship at the College of Agricultural Banking, Pune)
Setting up of RBI office opposed
Imphal, July 25 2013: Muslim Council Manipur (MCM) has opposed the Government's move to set up a branch office of Reserve Bank of India (RBI) at Mantripukhri. The Council has urged the Government to look for another locality for the said purpose in view of the presence of mosques and temples at the area where the Government is planning to acquire land..............
Read..........
Read..........
Police break up protest by women in Imphal
The police fired teargas canisters to break up a protest by women on Wednesday against a government plan to acquire land for building a Reserve Bank of India complex at Mantri Pukhri here. The women, who had been protesting since Monday, torched a police jeep.................
RBI directs rural banks to become member of credit info companies
"..............it has come to our notice that a large number of RRBs are not members of any Credit Information Company as required under the Act. Therefore, immediate steps may be taken by RRBs to become members of at least any one CIC," RBI said in a notification. Credit Information Companies (Regulation) Act, 2005 became operationalised in 2006. As per the Act, every credit institution has to become member of at least one credit information company within a period of three months from commencement of the Act or any extended time allowed by the Reserve Bank on application......
Consumer protection – agenda for inclusive growth - Dr.Deepali Pant Joshi
Address by Dr Deepali Pant Joshi, Executive Director of the Reserve Bank of India, at the National Seminar on “Consumer protection – agenda for inclusive growth”, New Delhi, 24 July 2013
........Consumer empowerment is a central goal. Education of consumers through information disclosure or through consumer literacy is utilized as a means to even out asymmetries of bargaining power between consumers and financial services providers. In the area of consumer credit and financial literacy, investment empowerment relies on the consumers’ ability to understand complex financial products and their knowledge and experience of using such products and services..............
A Poverty Lens on Financial Inclusion – Report
The report looks at the poverty profile of microfinance clients in the state of Karnataka and finds that while microfinance providers in Karnataka are reaching out to the poor, there remains ample room to improve outreach to the poor and this improvement can come about if the practitioners, regulator and other stakeholder create an enabling environment for outreach to the poor. The report also discusses the factors that can influence outreach to the poor including regulations promulgated by the government and the RBI..........
The poverty question
.........The fact is this that India has a reservoir of economists who are experts at speaking English. I do not know what useful purpose is being served in discussing Bhagwati versus Sen. All the economists are respectable, well educated but have no idea of how to remove poverty................
My View on "Indian Microfinance reputation still hurting from the Andhra Pradesh crisis"
The article is at best a reflection of what has happened. First of all Andhra Pradesh is not part of Central India but of South India. Be that apart, the author started with 82% high indebtedness of farming sector but failed to relate the micro finance to the farm sector because microfinance did not reach the farm sector in reducing or enhancing that debt burden. Interest burden reaching usurious levels in the name of easy access axed affordability on one hand and extortion practices on the other. In fact, Banks like ICICI, Citi etc also resorted to worse extortionary practices prior to the AP stepping into the shoes of regulator. What one should realise is that in the case of AP the player has become a regulator creating conflicting interest up front. This was preserved by the RBI's acceptance of Malegam Committee recommendations and accentuated by categorising MFI lendings under the priority sector category. The MFIs are either NBFCs or Companies registered under the Companies Act and therefore they are actually corporate borrowers. Therefore, whatever due diligence is to be done by Banks in lending to the corporates should have been done by them. Instead in their anxiety to achieve priority sector lending through arm chair lending with this window of micro finance opportunity available they went in for competitive populistic lending. This has set the micro finance sector to go for a toss.
- Yerram Raju
India studying all options to fund current account gap: Rajan
........Rajan called for a clear distinction between the need to steady the rupee and the way forward for the Reserve Bank of India's monetary policy, in an interview to television channel CNBC-TV18....................
Circular reasoning
I was having tea with Reserve Bank of India Governor D Subbarao a couple of weeks ago and one of the points, among many, he made was that it was getting treacherous for him to comment even on what he had for breakfast. The media and know-it-all analysts, like me, dissect even such innocent comments to fathom his thoughts on (these days) the rupee.............
The ball is in RBI’s court - S.S.Tarapore
........In the ensuing few months, political economy constraints would prevent the Government from taking strong rectification measures. Hence, the Government should give the RBI a free hand to crush inflation with unequivocal monetary tightening. The Government must recognise that when there are political economy constraints, it is only monetary policy which can hold up the rear.
Constrained by the impossible trinity
.......As to independent monetary policy, the recent focus on stabilizing the currency and more generally on mitigating external vulnerability has diluted the debate on using interest rates (and liquidity) to primarily address the growth-inflation trade-off. This shift, seemingly endorses the view that it might be necessary to sacrifice some more growth (over what might be required to control inflationary expectations) in the interest of stabilizing the rupee..........
If something attached to the past is not very savory then don't be surprised: Takru
Banking aspirants with an inglorious past are unlikely to get a licence from the Reserve Bank of India for a foray into the sector. Past business record will be factored in for banking aspirants as scrutiny will be strict, financial services secretary Rajiv Takru told Business Standard. Internal scrutiny of RBI is underway and the next phase of external scrutiny is expected to begin soon. The statement from Takru comes at a time when the scrutiny is underway and this can give a major jolt to some of the aspirants who have applied for a licence...........
Pratip Chaudhuri ko gussa kyoon aata hai?
Incidentally, both Subbarao and Chaudhuri are set to leave their respective offices in September
.......Chaudhuri’s latest outburst against RBI also stems from his concerns about liquidity. He has said RBI should have hiked the interest rates to raise money market rates instead of tightening liquidity. By tightening liquidity, RBI has been non-transparent in its approach. Globally, central banks only raise interest rates if they want to jack up money market rates. He said this as SBI chairman and not on behalf of the banker’s lobby—the Indian Banks’ Association—of which he is the honorary secretary. RBI has many tools it can use to raise rates and the kind of transparency that Chaudhuri expects may not necessarily be a virtue for any central bank. I wonder why Chaudhuri gets so upset with RBI measures and why he is so openly critical of them. Should a commercial banker be so open about criticizing RBI? What will happen if all other bankers take a leaf out of Chauduri’s book and start screaming from the rooftops?.............
Rajan defends apex bank’s move to manage Re volatility
......Significantly, the chief economic adviser's comments come a day after State Bank of India chairman Pratip Chaudhuri had said the RBI should not choke liquidity but consider more transparent measures such as hiking interest rates in order to stabilise the domestic currency.............
Banks are hoping the RBI measures are temporary: Rajiv Takru
......One thing is clear. Banks will be able to lend only after taking into account the cost of finance. Every bank has to follow its own path. Some banks are lending banks, some are borrowing banks. That depends on their balance sheet position. Obviously this measure of RBI will tighten liquidity and to that extent make it a little more constrictive as far as the functioning of the financial institutions is concerned. It reduces the scope for banks to exercise too much discretion. The general impression I am getting from public sector banks, and we are not leaning on them at all in this matter... almost everybody thinks this is a temporary measure.............
Monetary Problem, Real Solutions
The
Reserve Bank of India (RBI) is trying to prop up a battered rupee by
curtailing the funds that banks can lend one another. The chairman of
India’s largest bank, the State Bank of India, Pratip Chaudhuri, feels
this is a roundabout way to choke liquidity: the RBI, he says, could
simply have hiked the repo rate, at which the central bank lends to
banks. He is correct................
Read - ET
Read - ET
RBI’s solution for every problem
...................In order to be successful in managing current account by attracting foreign inflows when the industrial sector is far from buoyant and capital markets are faltering, it requires high degree of dexterity in managing growth and risk perception of investors. Will RBI’s recent move coupled with the announcements to be made in the monetary policy strengthen foreign investors’ confidence in the economy is a key question.........
Manmohan Singh's 1991 Rupee brahma astra may boomerang to a junk rating
.....Manmohan Singh as a finance minister in the PV Narasimha Rao Cabinet depreciated the rupee by a quarter and set the stage for an economic recovery after a balance of payments crisis in 1991. But as the head of the state, he could hardly afford that now. Government policies and finances are caught in such a web that his brahma astra of 1991 may probably boomerang this time with a sovereign downgrade to junk...............
Small, medium diamantaires hope to get bank finance soon
......A state-level banking committee meeting was organised in the city in the presence of the leaders of diamond industry and the office-bearers of the Surat Diamond Association (SDA) to discuss the ways and means to increase credit flow in the small and medium enterprise (SME) sector in the diamond city on Wednesday...............
Inmacs’ banking drive shows a rural tint
Mumbai: Inmacs Management Services, the little-known banking aspirant, seems to be laying its groundwork for banking pretty seriously. In its application to the Reserve Bank of India (RBI) earlier this month, the consultancy firm has proposed to open half of the proposed Arihant Bank’s branches in rural areas, a senior company official told dna. A surprise entry, this Gurgaon-based company, headed by chartered account Vinod Jain, is up against the likes of the Tatas, the Birlas and the Ambanis, and there are 26 aspirants jostling for this once-a-decade lottery............
An enhanced banking experience for techies
A branch-less and staff-less technology-based Self Service Centre has come up at the Technopark here to provide techies round-the-clock access to banking without stepping out of the premises. Set up by Federal Bank, the modern hi-tech centre has been set up on a 200 sq ft area at the entry lobby of the Thejaswini building at the Technopark. With the new initiative, the techies can access all technology-enabled services of the bank without the physical presence of any staff. The centre, the first of its kind in the State, has become an instant hit, with the bank receiving 650 new accounts on the first day itself,..........
Treading up Himalayas to avail of bank facility
People in Himachal Pradesh still have to trudge around five km in rugged, cold and inhospitable Himalayan terrain before they can avail of banking facility. This fact came to light in a charter of demands submitted by Mandi MP Pratibha Singh to union Minister of State for Finance Namo Narain Meena in New Delhi............
Check your ‘26AS’ before filing tax returns this year!
Many taxpayers are receiving income tax notices asking them to pay tax in spite of the same being already paid, so please check your 26AS now and set your tax figures right before you file your tax returns..................
RBI's gold imports restrictions: Back to 'Once upon a time in Mumbai
..............Within a month of introducing curbs, RBI withdrew the circular banning consignment imports for domestic use and 100% cash margin.These measures were considered too harsh which led to a sharp drop in imports.Gold imports fell by 80% of their May imports after imposition of these measures. After virtually crippling the industry, government has removed these norms but introduced new ones.Though not as bad as the earlier one, new norms will create a new set of problem both for the industry and government. ............
Click & Save: Using Net Banking can Help You Avoid Many Fees
............When
you can make payments within minutes through the net banking channel;
spending time, effort and additional money to get a DD issued just does
not make sense. Similarly, online fund transfer can also help you save
on cheque leaves. Most banks levy a charge for issuing additional cheque
books.................
Thursday, July 25, 2013
Financial Inclusion: A Must For Equitable Growth - K C Chakrabarty
 |
| ...........Sustainable high growth sans financial inclusion is next to impossible. Equally important is productivity and efficiency where financial sector intermediation is essential in order to bring all sections of society under the financial inclusion net................. |
Subscribe to:
Posts (Atom)