............ The Reserve Bank of India, which has its hands full trying to arrest the slump in the value of the rupee, will first seek to understand Bitcoins - which have attracted regulatory gaze in the United States -- before seeking to bring it under its purview. "As of now we are watching and learning about the developments in Bitcoins but are not regulating it," an RBI spokeswoman wrote in an e-mailed response. In a note published in June, the central bank acknowledged that virtual currencies "pose challenges in the form of regulatory, legal and operational risks." ...........
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, August 14, 2013
India’s exchange rate policy
......The central bank should then announce that it does not care where the exchange rate is within +/-15% of this rate. This is a level of deviation so large as to account for difficulties in calculating competitive exchange rates and wide enough to account for normal market volatility. At the same time, this band is sufficiently wide that on the very rare occasions that the central bank has to intervene to defend the boundaries, it will appear so appropriate that the market will run with and not against it.........
Takru’s tough talk: Banks must seek management change before recasting corporate loans
.........“We are seeing more and more cases of people who are taking advantage of the distress, trying to go to the debt recast cell, trying to go back on their obligations, not paying when they are supposed to, trying to negotiate deals with the banks for moratorium and better interest rates,” he said. The banking system has been “too” tolerant of such behaviour and this is not required, he said. Companies cannot sit back and expect that banks will continue to take hits on their behalf, he added.................
Saving Government Banks from the Government
.........If Rajan has his way, something, which has not been discussed before, may come to the fore - the emergence of many banks, instead of just a few big ones. The central bank has been reluctant to issue more than a few banking licences, saying it may not be in the best interests of the nation. RBI could also partly be looking to prevent debt-laden conglomerates from cornering licences. Rajan, who has seen US community banks flourish and perform a role in the real economic activity, may turn the argument on its head..........
Brick-and-mortar branches still main source of business: bankers
.........“Five years ago, people said the brick-and-mortar branch was doomed. Those people have now come back. For example, when we opened branches in areas like the North-East, Chhattisgarh, UP and Himachal, many people including myself questioned it saying there are no people there but the consumption story has made that move look far sighted,” .............
SBI displays photos to shame educational loan defaulters, faces flak
........."Would they ever be willing to portray the photograph of Mr Vijay Mallya for all the payments he has not paid back banks for years? This is a loss of dignity and human rights for the poor people. They should resort to legal recourse even in the worst case.".................
IIFCL Appointment Irks FM
..........The Search Committee, comprising two secretaries to the government of
India, the RBI Deputy Governor, and two prominent independent experts —
the IIM-Lucknow director and HDFC Chairman Deepak Parekh — was aware of
the fact that Bagla was the first choice for the same post during the
last selection process done in March 2010, when his candidature was not
considered by the then finance minister on account of conflict of
interest.........
ATM cards with photo will check frauds: Ombudsman
Bangalore, Aug 13 (IANS) Banking Ombudsman in Karnataka M. Palanisamy Tuesday advised banks to issue chip-based ATM cards with customer's photo to check frauds committed through debit or credit cards. "As complaints related to misuse of debit or credit cards have jumped to 1,279 till June from 732 year ago, I have directed state-run and private banks to issue only chip-based ATM cards with photo of an individual customer to check their fraudulent use," Palanisamy told reporters here at the annual conference of the Reserve Bank of India's (RBI) regional office..............
All about Savings Bank interest rates!
Every individual has a Savings Bank account, but pays little attention to the interest earned on the balance in this account. Some people may not even know that the balance they maintain in their savings bank accounts earn an interest. In the past,.......
SEBI to go in for a major overhaul
......The nine-member board of the capital markets regulator decided to implement a plan of action in this regard, following recommendations made by an independent consultant. Among others, it has been recommended that SEBI should impart a greater focus on mobilising household savings into capital market assets, strengthen its supervisory functions and its oversight of listed companies. Besides, it has been asked to work for a re-organisation of its functional departments, increase its manpower, improve its IT strategy for organisational efficiency and strengthen its training and performance management system.............
Tuesday, August 13, 2013
Stop playing to the gallery - Dr.S.S.Tarapore
Fighting without fighting - Dr.Subir Gokarn
Reserve Bank and the art of communication
..........A very specific communication exercise — and this what this article is really about — by the Reserve Bank of India — has all the ingredients for an excellent case study. On July 30, while reviewing its credit policy, it issued its guidance — its assessment of what the monetary stance would be in the future. Of particular interest to all was when the RBI will roll back its liquidity squeezing measures it had announced in instalments a few weeks ahead of the policy to curb volatility in the rupee..........
From lemma to pentilemma, via the Impossible Trinity
....In the beginning was presumably the lemma. It’s entirely possible that God said, “Let there be lemma”, and there was lemma. And the lemma shone in the darkness; and the darkness comprehended it not. Nor did I. So I looked up dictionary.com, which says a lemma is a subsidiary proposition introduced in proving another proposition; a helping theorem. Its only purpose lay in paving the way for something greater and grander, very probably monetary policy. The good thing about the lemma was that it was a proposition. Because to proposition is the first step in the long and convoluted road that leads to begetting. Thus it came to be, in the fullness of time, that the lemma begat the dilemma............
India’s ‘craze for foreign’ must end
It would take extreme effort for Raghuram Rajan to do a worse job of ensuring economic growth than his immediate predecessor Duvvuri Subbarao, who will leave behind a banking and industrial wasteland by the time his extended term concludes in a few weeks' time. Given that he has been a loyal chela of the economic adviser to the Prime Minister, C. Rangarajan, it would be understandable if he were to expect to be given the Padma Vibhushan at the next investiture ceremony. Odder choices have been known to occur, no doubt inspired by the Nobel Peace Prize awarded to Henry Kissinger or the European Union. More apt than simply a national award would be the gifting of a ministerial-level commission chairmanship to Subbarao................
INDIAN ORIGIN AMERICAN AS RESERVE BANK GOVERNOR - Vipin Malik
.........Second foreigner as Governor was: Sir James Braid Taylor July 1, 1937 to February 17, 1943 Dr. Urjit R. Patel was appointed Deputy Governor on 14.01.2013 of Indian origin with South African Passport. However, immediately after his Notification he obtained Indian Passport from Ministry of Home Affairs.There are four Deputy Governors under the Act and till date there have been fifty five Deputy Governors appointed by the Central Government.There is no debar under the RBI Act, 1934 on the qualification requirements of the RBI Governor as there is only disqualification of Directors and Members of the Boards. Governor is also one of the Directors...........
Note forgers, beware
Cash transaction at the bill collection centre of Tamil Nadu Generation and Distribution Corporation has become a lot easier for residents in the western parts of the city. The bill collection centres have been provided with counterfeit money detector machines to identify fake notes, thereby even reducing the transaction time to a great extent..........
Bank Employees Wage Revision on Right Track
........The delegation consisting of representatives from all the nine constituent of UFBU, United Forum of Bank Unions was led by Sh. Basudev Acharya, Member of Parliament. The Delegation submitted a memorandum to the Finance Minister with demands related to followings:............
Ring out the terminal, ring in the depot
...........S.Venugopalan, a resident of Vannandurai, says over the years MTC has discontinued a number of services on the stretch, citing that it was an elite neighborhood where many of its residents did not rely on bus services. “That was a wrong judgment as many from the fringes of Besant Nagar commute to north Chennai on work,” says the retired RBI officer, who has written many letters to MTC seeking more services on this route...........
Obituary
Mrs. K.Rama (64) Ex-RBI, wife of N. Kasthuri, Chrompet (Ex RBI) died on 09/08 attained Acharyan Thiruvadi on 09/08/13. Phone: 2265 2619
Mr. M.V.Sundaram, Retd. Reserve Bank of India, Chennai died on 10/08/13. Ph. 26575887
Mr. M.V.Sundaram, Retd. Reserve Bank of India, Chennai died on 10/08/13. Ph. 26575887
Hindu
Where is the "DOMINO EFFECT? - Sitendra Kumar
In interaction with the associations on pension issues, Shri Takru
has spoken about DOMINO EFFECT. What is this? It implies that if RBI personnel
are sanctioned PENSION UPDATION, it would have to be acceded to SBI and
thereafter to Canara Bank, Syndicate Bank, UCO Bank etc; i.e. to entire banking
sector. Now the question is;..........
Raghuram Rajan - ‘Young Economist’ : Will He Be Able To Put Economy Back on Track and Sustain Internal Politics at RBI and Political Pressures
....Now newspapers are full of praise for this so called Young Economist being at the helm of RBI affairs. I too do not have doubt about his capabilities. Question which arises in my mind is whether the ‘young age’ will become a virtue or a drag for his performance. I am raising this issue as most of the bankers are facing such a clash of personalities in the banking sector. In last five or six years, some CMDs have brazenly promoted junior officers by ignoring the performance of seniors. These banks have seen lot of personality clash as senior in service are being asked to serve under the junior people. Such brazen violation of seniority has led to slower growth of the banks and rise in NPAs. Rajan too is likely to face challenges from his Deputies, some of them are much older and experienced in the field of banking......
Race on for Rajan’s ‘lucky’ room
.....Paul moved to the Rashtrapati Bhawan as the President's high profile secretary. Rajan, who was the economic adviser to the Finance Minister, went on to become the RBI governor. So the room is considered to be lucky.
Why Chidu and Rajan may not be walking together just yet
.......The astute economist that Rajan is known to be, despite his stint in government he will have to weigh the pros and cons and opt for the option which most guarantees financial stability for now. Simply put, his first monetary policy statement, which will be articulated on 18 September, just days after he takes over, will likely be one which may once again not make finance ministry mandarins too happy. Experts see Rajan as continuing with RBI’s policy of independence in policymaking, particularly given the present situation...........
Low Rupee, Or High Rates; Can't Have Cake And Eat It Too
......Chidambaram and others have been blaming gold for the high CAD, but it is their low interest rate regime in a high inflation era, that pushed people to gold. Once you reward savings with higher interest rates, that will be the beginning of a new innings for the Indian economy. We need to make up our mind – whether we are acceptable to high interest rates for a while, or lower rupee. We can’t have the cake and eat it too.
PSU banks: time to adapt to social media
......... “A blend of physical and digital is the way forward. Banks can mine and harvest rich information from social media and it is a good building block for economic and customer research and trends”, the paper released recently by RBI Governor D. Subbarao said. The IDRBT acknowledges the challenges that confront the banking sector in this direction when it says existing organization structures and business processes are two main challenges that need to be overcome in view of a serious social media foray. Another barrier to adoption of social media is delay in process upgrades and updates. This was because of the fact that initiatives like centralised processing are not exploited enough.........
‘RBI officials to visit four districts’
Senior officials from the Reserve Bank of India will soon visit four districts in the State to study the grievances of the micro sector entrepreneurs, particularly regarding the non-implementation of RBI guidelines on providing loans up to Rs. 10 lakh without collateral security,...........
Police on the lookout for cooperative bank directors
...........Fearing arrest, the officials filed an application before the local court seeking anticipatory bail. However the First District Sessions Court rejected the application on Thursday. According to the police, the bank officials have remained ‘untraced’ ever since the complaint was filed. However Mr. Munavalli clarified the bank had remitted the amount to the Reserve Bank of India, and said the amount had been credited to ineligible beneficiaries due to the lack of proper guidelines...........
IRDA allows banks to act as insurance brokers. Will the RBI agree?
......Reserve Bank of India (RBI) has said that banks assuming the role of insurance brokers may also lead to conflict of interests. While the RBI approval is required for banks to become brokers, IRDA is of the opinion that in case of any dispute arising out of insurance transactions, its jurisdiction should prevail. It added that the laws applicable to insurance contracts shall be enforced and information in this regard shall be furnished to the RBI..........
Growth comes last
..........It is an open question how the government and the RBI will react to these figures, which show inflation high but steady, and the trade deficit declining, at the cost of a continued manufacturing slowdown. In the absence of an explicit policy shift to growth instead of stabilisation, this may well be the trend for the next few months.
Compounding fees to be refunded to applicant's a/c via NEFT
...............The directive came as the RBI had received a number of applications for compounding of contraventions of FEMA which were sent without proper approvals from the authorities concerned. If an application has to be returned for this or any other reason, the application fees is also returned, it said............
India's gold guzzling still high, spurs neighbours to act
......The RBI last moved on July 22, when it stipulated that 20 percent of gold brought into the country must head out again as jewellery - a move that has dried up supplies and stalled business as traders wait to find out how the rule will work. Demand in the country remains strong, however. Gold is still a must-have at weddings and festivals, which get into full swing in the next few months. There are signs now that Indians may be bringing in gold through neighbouring countries, pushing their imports sharply higher as well and prompting action by their governments. Pakistan has slapped a one-month ban on gold bought to make jewellery for export after its imports jumped 386 percent in the first half and topped $514 million in July alone - more than double what it bought in the first six months of 2012. "The difference in import duties seems to have provided the incentive for increased duty-free imports in Pakistan and smuggling to India," a statement on the finance ministry's website said...........
Ratnakar Bank to buy part of RBS' businesses in India
Kolhapur-based Ratnakar Bank on Friday said it had agreed to buy Royal Bank of Scotland’s (RBS’) business banking, credit cards and mortgage portfolios in India. The private lender did not disclose the price at which it will buy these businesses. The deal is subject to approvals from the Competition Commission of India (CCI)........
Karnataka Bank holds exporters’ meet in Panipat
.......A bank release said here on Monday that Bhat was speaking after inaugurating an exporters’ meet, jointly organised by Karnataka Bank, the Federation of Indian Export Organizations (FIEO) and Panipat Exporters’ Association, in Panipat recently. Bhat said the bank treats export credit as national priority, and it is committed to provide export credit to all the eligible exporters at a competitive interest rate..................
Banks swallow Vijay Mallya's pride
Banks took possession of the Kingfisher House, the head office of debt-laden Kingfisher Airline since 2005, on Sunday. The lenders are likely to sell the property situated on a 25,850 sq ft plot, which includes the office premises of over 17,072 sq ft, situated on the Western Express Highway near the domestic terminal in Mumbai...............
SBI to name subsidiary for merger by Sept-end
.........Chairman Pratip Chaudhuri said the preference will be to pick an associate bank that is weak on the deposits front. "We will look at a bank which is not very strong in retail deposits. SBI is cash surplus, it has more deposits than assets can absorb. We will look at a bank preferably which has more assets but does not have similar strength in deposits," ...........
SBI's Chaudhuri: Bright sparks amid bad numbers
..........It is difficult not to compare Chaudhuri with his predecessor because he spent much time undoing the past. Starting with provisioning of Rs 10,000 crore to mending ties with the regulator, the Reserve Bank of India (RBI), who had objected to teaser loans launched aggressively in the earlier years. Chaudhuri simply stopped the product. Bhatt chased growth and famously made ‘the elephant dance’ whereas Chaudhuri had to work hard to slow down the elephant. Bad economic conditions, both globally and India, warranted such a move. Slowing down did not mean that Chaudhuri didn’t a colourful tenure. In the past year or more, he has crossed swords with the regulator by.....
SBI’s rising bad loans reflects poor health of public banks
An increase in distressed loans, and the provisions to guard against them, are likely to eat into the profits of State Bank of India (SBI) this financial year and also hurt its smaller state-run rivals............
Monday, August 12, 2013
Former Deputy Governor no more.................
- P.P.Ramachandran.
RBI to set up expert panel to screen bank licence applications
......The High Level Advisory Committee (HLAC) will not have any members from the RBI but will comprise of eminent persons with experience in banking, financial sector and other relevant areas, sources said. It is expected that the member of this panel would be drawn from the other financial regulators like Irda, SEBI, PFRDA. Besides, some top official from the government may also be invited to join the committee..........
RBI has little Choice but to maintain status quo policy
.......The RBI is in a Catch-22 situation. It is compelled to maintain the internal and external value of the rupee at any cost, which is becoming difficult in the background of lack of growth, increasing deficits (fiscal as well as current account), declining investor confidence, and falling savings trend................
Homework Done
Senior BJP leader Murli Manohar Joshi has given a notice of calling attention in Parliament asking how a foreigner could be appointed RBI Governor. The new RBI Governor Raghuram Rajan completed his BTech from IIT Delhi followed by an MBA from IIM Ahmedabad before he went to MIT and has spent several years as a professional in the US. He, however, holds an Indian passport and is learnt to have provided a copy of the same to the government for submission to the Speaker's office. The evidence of Rajan's nationality in hard copy will be handed over to Joshi to put the matter to rest.
Raghuram Rajan's agenda: Damage control through independence
...This same quality of independence will be especially important in awarding bank licences. Central bankers gain credibility by taking tough decisions, and Mr Rajan's RBI is bound to be a beneficiary if bank licences are awarded through a transparent and accountable process. All of India is watching, and the RBI, which remains one of India's few respected public institutions, must be beyond reproach on this delicate issue.....
Raghuram Rajan at RBI: Ex-colleagues Luigi Zingales & Gary S Becker chart out his strengths
..I have a very high opinion of Raghu: he is a top-notch economist who has had great insights into the previous financial crisis (in a 2005 paper). In his new job as India's central banker (governor of the Reserve Bank of India) I expect him to do well though I understand that it is a difficult job...........
It’s Not All Depreciation
........While Subbarao followed several of the RBI’s traditional positions (including in dealings with the government), unlike his illustrious predecessors, Subbarao didn’t have the same kind of support within. For instance, Bimal Jalan had Y.V. Reddy with him; Reddy had Dr Rakesh Mohan but Subbarao did not have anybody of that stature with him to decide on the monetary policy trajectory. To top it, as Patnaik puts it, the RBI is not independent and has been under a lot of pressure. This could be one reason why some conflicting signals have been emanating from the central bank. But that does not dilute the stellar role played by Subbarao in steering India through a period of global crisis.
RBI steps will stop cloning: experts
Experts say the Reserve Bank of India (RBI) needs to take some major steps and card users should educate themselves if card-cloning has to be ended. While security guards and CCTV cameras can mitigate the risk of skimming, there will always be instances where a particular ATM does not have a camera installed, making it an open target for criminals, says a police officer speaking on the condition of anonymity...........
Role of trade, IT to decide future trend'
A three-day national level annual business conclave organised by the Xavier Institute of Management (XIMB), Bhubaneswar, where top speakers from the industry gathered, concluded recently........
....Bhubaneswar Stock Exchange CEO Debraj Biswal and Reserve Bank of India’s Chief General Manager and Regional Director PK Jena were also present at the event.
Hazaribag deputy commissioner miffed at banks for flouting RBI norms
........While reviewing the performance of the banks in the district on Friday, he was surprised to find that barring few banks, most of them were not following the guidelines issued by the Reserve Bank of India. Calling this an unfortunate incident, he said this will not be tolerated...........
Sarvodaya Sahakari Bank and Kokan Prant Sahakari Bank in dock
ast week the Reserve Bank of India imposed penalties on two urban cooperative banks namely Sarvodaya Sahakari Bank based in Surat (Gujarat) and Kokan Prant Sahakari Bank based in Mumbai. Sarvodaya Sahakari Bank was penalized for violation of RBI instructions by making donation in excess of prescribed ceiling.........
Chennai lifeline for urban cooperative bank
BHUBANESWAR: The jinxed Urban Cooperative Bank (UCB), Bhubaneswar, has got a new suitor. The Government Telecommunication Employees' Co-operative Society (GTCECS) of Chennai has evinced interest to take over the ailing bank. "We have received a proposal from GTCECS for acquisition of the bank," registrar of cooperative societies P K Pradhan told TOI. He said the state government has sought approval of the Reserve Bank of India (RBI) for going ahead with the proposal.............
AP Mahesh Bank to upgrade staff skills
HYDERABAD, AUG 11:
The AP Mahesh Cooperative Urban Bank Ltd has stepped up its focus on updating skills of it employees. “We have established our own staff training college to impart in-house training. The employees are also being deputed for advances training to the institutes of the Reserve Bank of India and other reputed banks,” Ramesh Kumar Bung, Chairman, Mahesh Bank, said while speaking at a function to mark the 36th foundation of the bank held here...............
Friday, August 9, 2013
Seniors at central bank uneasy with Rajan's OSD status
.......Another official said the RBI governor does not require any induction programme. “Was there any such induction programme when he went to the International Monetary Fund?,” he asked, referring to Rajan’s tenure at the multilateral agency as chief economist. Central bankers said such steps would be interpreted as the ministry’s “we-are- running-the-show” attitude and send a wrong signal to the market about the independence of the central bank.....
Tradition maintained by RBI
My View on "Governor's challenge":
The observation “RBI has traditionally fought for status quo. India is at a juncture when more of the same policy won't help” does not do justice to RBI’s history. India’s central bank has all along done justice to its mandated role and more often beyond that. The criticism emanates from comparisons with central banks of developed countries which have their role limited to certain aspects of monetary management. RBI since at least the dawn of independence, has taken on itself the responsibilities relating to institution building and credit deployment for various purposes depending on priorities of the governments of the day, in addition to the central bank’s core functions. The present focus on financial inclusion and taming inflation which are incidentally in tune with the vision expressed by the Governor-Designate Dr Rajan is consistent with the tradition maintained by RBI.
-M.G.Warrier
RBI Board meets in Mumbai
.....The Board reviewed the current economic situation, global and domestic challenges and policy responses, as also the Draft Annual Report (2012-13) on the working of the Reserve Bank of India..........
MASSIVE MUMBAI MORCHA
8/8 is an
important day for RBI Retirees. The United Forum of Reserve Bank Officers and
Employees had called for a silent morcha to highlight the problems of updation
of Pension and Pension Option for those who had not opted for it. Today was the
Central Board meeting –the last one with Dr.Subbarao as Governor.
To clear the logistics. Shahid Bhagat Singh Road divides
the old Central Office building and the new Central
Office building (Skyscraper). While Governor and Top Executives are
located in
New Central Office building the Central Board meetings continue to be
held in
old Central Office building. Area surrounding that building was declared
out of
bounds.
The morcha was thus held in the ground
floor of the skyscraper. A vast concourse had gathered by 9 a.m comprising retirees
and current employees. As and when Central Board members alighted they were
accosted by our leaders and their attention was drawn to the vast gathering of
protesters across the road. All directors were given a memorandum as also Shri.
Rajiv Takru, Financial Services Secretary. A memorandum was given to the new
Governor Designate, Raghuram Rajan.
There was continuous
rain from 8/30 to 10.15 a.m. but this
did not affect the enthusiasm of the retirees. A hand mike set was allowed and
all leaders spoke including Shri.Samir Ghosh, General Secretary, AIRBEA. They
told us they had talked with every member and were told that they appreciated
our problems. Takru was expected to make a statement at the meeting. Regarding
Governor—who had declared at the Srinagar Board meeting –“I will take the issue
to the logical end”-----leaders reported that he said he would try to get it
cleared even within the short period he had. The Governor Designate said he
would study the problem after he takes over.
After the
morcha was over all were treated to a sumptuous breakfast—in the Officers
Lounge in Amar Building--Sheera, Vada and Idli—though we did not get news of
updation of pension the tension of our stomachs was unambiguously removed ! Do await the Forum Circular.
- P.P.Ramachandran
Will the Centre back RBI’s Rajan?
....Rajan will need firm government action to tackle the ills crippling the economy as he tries to revive the rupee and tame inflation. Will he get it? That really is the trillion-dollar question, and that will decide his equation with the government. Incumbent RBI governor D. Subbarao, who he will replace, tried in vain to get the government to manage supply side constraints, but he only succeeded in inviting the finance ministry’s ire. Rajan may well fare better at managing the government, particularly as he has so much more at stake..........
Confident of overcoming challenging environment: Raghuram Rajan
....."I look forward to working with everybody at the Reserve Bank. It's a great institution and I am looking forward to it," said Rajan, who will join the central bank as an officer on special duty before taking over on September 5............
RBI transfers Rs 33,000 cr surplus profit to Govt
.........This amount represents transfer of surplus profit by the RBI to the Government of India for the year ended June 30, 2013. In the previous year ended June 30, 2012, the RBI had transferred Rs 16,010 crore..........
RBI slaps Rs 1 lakh fine on bank
The RBI has slapped Rs 1 lakh penalty on Baripada Urban Cooperative Bank Ltd, Baripada, for failing to publish and submit accounts and balance sheet within the stipulated date.............
Law ministry says e-KYC valid
In what may do away with the need for physical documents to avail of financial and government services, the law ministry has approved fulfillment of know-your-customer (KYC) norms electronically, through Aadhaar or the unique identification number. The finance ministry has written to the Reserve Bank of India (RBI), as well as other regulators such as the Securities and Exchange Board of India (Sebi), to issue directives for financial companies to start accepting e-KYC..............
FM to announce steps on rupee end of the week: Mayaram
......Mayaram was speaking to reporters in Mumbai, where he was attending a meeting of the central board of the Reserve Bank of India (RBI). The Indian rupee has been under pressure in recent months, which prompted the central bank to announce a slew of measures to tighten liquidity in the banking system. RBI capped banks’ borrowing from its overnight borrowing window and increased the daily cash reserve balance requirement for banks. The measures are yet to have the desired results on the currency......
Tata firm to set up 1,000 ATMs across Karnataka
The Tata group firm, first in the private sector to obtain a license from the Reserve Bank of India (RBI) to disperse cash through its white-label ATM network, launched its service at Chandrapada village in Maharashtra's Thane district June 27, keeping in view the central bank's vision to improve ATM penetration across the country.............
Thursday, August 8, 2013
Rajan to move to Mint Street three weeks ahead of Sept 5
............This move to appoint Rajan as an OSD in the RBI has come as a surprise to many in the banking circles. It is the first time ever that an RBI Governor-designate will serve as an OSD in the central bank ahead of assuming charge, say RBI watchers. Some RBI observers welcomed the move and said it could help in a smooth transition for Rajan....................
Journey to Mint Road
........... In his youthful looks, Raghuram Rajan, the RBI governor-designate, is comparable to C D Deshmukh, who was appointed the RBI governor in 1943 (under whom I had worked). Rajan will be the first engineer (holding a BTech degree) ever to be the Governor.............
Sakha Awards
 |
| Bhim R Garg, Ex-AGM, RBI, Chandigarh |
Sakha Awards 2013 were bestowed by Padmashree singer Shanti Hiranand to distinguished personalities for their respective contributions in various fields. The Function was organized jointly by The Socio-Cultural Societies PECOBA and Sakha in collaboration with Epicentre, Gurgaon. Those honoured with Sakha Awards included film music researcher Bhim Raj Garg of Chandigarh (whose encyclopedia of Punjabi Film songs is under print), Durga Shakti Nagpal (IAS), Dr DR Saini, Saraswati Music College, Delhi (originally established in 1924 in Lahore where singer Mohd Rafi and music director OP Nayyar were the students), music composers Mohinder Sarin and Chhote Lal, Satpal Narang (radio and TV programs producer), lead singer Simrat Chhabra and Mamta Vani.
- Madan Gauria, EXRBITES Group
No substitute for Mahatma image on currency notes: RBI Committee
Vital initiative
Dear Mangesh,
I am Dr. S. L. Shetty of the erstwhile DEAP. I have liked your initiative on Vital information on RBI-related issues. I have one suggestion which is that the RBI Newsletter and RBI Monetary and Credit Review do provide some information of general use. Please pick up some of them, if you think they are of general interest.
Many thanks and regards,
- S. L. Shetty
Subbarao faced hostile political environment: AK Bhattacharya
......... Reddy faced a different set of challenges, arising out of a strengthening rupee, growing economy and rising foreign exchange reserves. And he handled those challenges very competently. He also had to deal with a more favourable political environment. In contrast, Subbarao's challenges were more difficult as a result of the economic downturn, falling reserves and a depreciating rupee. You could say that Subbarao made a valiant attempt to minimise the damage, but he also faced a much more hostile political environment, I think..............
A silver lining - A.Seshan
............Now that a non-IAS gentleman is the governor-designate, the IAS lobby will start working to claim its share in the DG's posts. Neither the Bhagvad Gita nor the Bible stipulates that an IAS babu should have a finger in every pie. The RBI unions at all levels should be alert and do the needful sufficiently in advance before the interviews for the appointment of a DG. The list of interviewees should contain only the names of executive directors of the RBI.
Let autonomy of the RBI be guarded - A.Chandramouliswaran
I am happy that Dr Raghuram Rajan whom I desired to see as the Governor has been appointed to take over from Dr Subbarao when the latter's tenure ends on September 4, 2013. His academic achievements are incredible with a Gold medal both in IIT and IIM, Ahmedabad thus matching those of Dr Subba Rao. Dr Rajan has also got his PhD. from MIT, USA. It is said that that he had secured at a very young age tenure post of Professor of Finance in the Chicago University. He can be expected to be innovative and bold in regard to the financial sector in India and not be conditioned by the past thinking. It is a pity that the recommendations of the Committee on Financial sector reforms headed by him were completely ignored. One can expect that he would take up some of those recommendations. One also hopes that RBI sheds, under his initiative, some of the less important functions in regard to supervision of banks so that it can concentrate on more important matters. One also expects that he would totally disapprove of issue of directives by the Banking Division directly to the banks. He should send a clear signal to banks that it is to the RBI that they would have to look to for guidance. Shri Yeshwant Sinha, while wishing Dr.Raghuram Rajan all the best as the Governor, has expressed a hope that the latter would be willing to jealously guard the autonomy of the RBI. The support to the Governor from the leading opposition party should be helpful to him in preserving the autonomy of the Bank. We wish him all the best in his new assignment.
- A.Chandramouliswaran
RBI’s independence
This refers to the report “Rajan tasked to fix faultlines” (Business Line, August 07). RBI governors in the past have not been able to reduce the influence of the Finance Ministry over the role of the central bank. The independence of the RBI governor has been limited to monetary policy changes. The fact is that the Finance Minister is intelligent to project its disappointment over such changes as if it is helpless, and the media is quick to point out the overriding role of the central bank. To that extent, the media is also responsible for misleading readers about the independence of the central bank. The growth-inflation challenges have kept central bank governors busy in the past and the new governor is no exception to this.
- K.V.Rao, Bangalore (HBL)
For RBI Guv, it’s Kissa Kursi Ka
Kudos
to the new RBI Governor, Raghuram Rajan — one of the youngest. At his
age, most government officers would be joint secretaries. But I am
amused and curious to know how and why the babu lobby “lost” the race.
Of the 23 governors, 14 were babus. The reason why the babu lobby may
not have been so interested is the state of the economy and the fall in
the rupee. None of them are possibly capable, and even if so, not
willing to sit in the hot seat. The government may want to take some
undesirable measures that the RBI may not want. So, let someone else
step in and face the music. If he fails, they will smirk. If he does
well, then the song will be, “we could have also done so”. Witness how
non-babu Sebi chairmen were hardly allowed to function. It will not be
surprising if they make life miserable for the new incumbent. Some say
that he is an IMF plant. So, Mr Rajan, whatever you are, best of luck
and watch out for the plantain skins placed by the ministry of finance.
- T R RAMASWAMI , Mumbai (ET)
- T R RAMASWAMI , Mumbai (ET)
Islamic banking proposal may get a push under Rajan
New Delhi: With appointment of government's Chief Economic Adviser Raghuram Rajan as the next RBI Governor, Union Minority Affairs Minister K Rahman Khan Tuesday hoped that his ministry's plan to establish Islamic banking in India will get a boost. Khan said Rajan was positive when he met him recently to push the proposal..............
Govt and RBI: Good cop, bad cop
...........If you repeatedly say something at variance with the truth, that something sometimes becomes the truth itself. This “principle” — if we can call it that — as everybody knows, has been used repeatedly in the political sphere; not only in India, but globally for devious ends (Joseph Goebbels comes to one’s mind immediately). That principle now seems to be playing itself out in the economic sphere in India. The reference is to the so-called disconnect between the Government of India and the Reserve Bank of India as regards their goals and strategies. In the economic sphere, though, the supposed “disconnect” should actually become the truth for the overall common good!................
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