.....“The
police say it’s the bank’s job, and the bank says it’s your job to file
an FIR. Even the cyber cell did not entertain us at the BKC office.
They said your local chowky has to file FIR first. One month has passed,
and so far there has been no FIR and no cooperation from either the
bank or the police,” ..........
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Thursday, September 5, 2013
RBI validates e-KYC through Aadhaar
...........In a notification on Monday, the central bank said an e-KYC was acceptable under the Prevention of Money Laundering (Maintenance of Records) Rules, 2005. Banks may open a new account by taking a person's Aadhaar number and biometrics. Once matched, the demographic data, including identity and address proof stored with the UID's central registry, can be accessed by the bank concerned to complete the verification. A bank will need to take "explicit consent" of the person concerned to "release her or his identity/address through biometric authentication to the bank branches/business correspondents," RBI said.............
RBI mulls low-cost swap lines to lure deposits from overseas Indians
.........At a Monday meeting that included RBI Deputy Governor H R Khan and executives from foreign banks in India, a proposal was discussed under which the central bank would look into buying back the dollars by providing a forward swap line at a discount for three to five years, they said. That would reduce the hedging cost for banks to raise dollars overseas and convert them into rupees in India...............
Wednesday, September 4, 2013
Not his master’s voice
End of a turbulent tenure
D. Subbarao: The govt insider who turned rebel
..........Unlike Reddy, who was also a civil servant, Subbarao’s passage to Mint Road from the finance ministry in 2008 was direct. He was given preference over Reddy’s deputy Rakesh Mohan for the top job. In that sense, he was seen as a Trojan horse, so his fights with the ministry have been baffling.............
One cheer, and two boos for Subbarao as he bows out
....It’s not usual for me to criticise public officials who are already down and out – as is the case with Duvvuri Subbarao, outgoing Governor of the Reserve Bank of India (RBI) today. But then, much of the criticism, perversely, is for exactly the wrong reasons: that he tightened monetary policy prematurely and too fast. And despite signs of some mea culpa in his farewell speech, Subbarao has left plenty of ammunition for me to expand upon..........
Life and times of RBI governor D Subbarao
......Within RBI, Subbarao will be remembered for his goodness. He definitely gives a personal touch to everything that he does. But what set governor Subbarao apart from his predecessors was his penchant for clarity of communication. He simplified RBI's policy reports, made them readable. He also reached out to millions in villages across the country and even conducted townhalls with students. He also increased communication with the market by organising calls with analysts and fund managers, a first in RBI's history.............
The lighter side of Subba
.....“I am deeply touched by whatever has been said about me. Whenever someone says such nice things about me…I am reminded of my parents.” “My parents have passed away. Had they been alive…my father would have been very proud to hear such good things about me and my mother would have actually believed it,”............
Banker's reaction on Subbarao's tenure
.........Known to be firm on his decisions, Subbarao said in his last speech that it was the RBI’s responsibility to make that extra effort to listen to the silent ‘voice of the poor’. Here’s what some top bankers had to say on Subbarao, who demits office on September 4:
H. R. Khan, RBI Deputy Governor: I think in what I have seen so far in my experience, he has been the only central bank Governor of any country who has travelled to villages and taken us also along. Also, he has tried to demystify the RBI...........
Lessons from a departing chief
..........In response to criticism that RBI’s policy measures had been confusing and betrayed a lack of resolve to curb exchange rate volatility, he reiterated RBI’s total and unequivocal commitment on the latter. Such a strong articulation by the outgoing chief might make it somewhat difficult for the incoming governor, Raghuram Rajan, to make a quick departure from the established policy, although the latter’s merits are open to question...............
Meet Raghuram Rajan: The former Chief Economic Advisor taking over as RBI Governor
............‘We have enough ideas. It is not just the currency, it is financial inclusion, it is growth. I think there is a lot to do. There are challenges in the economy... These things are not going to be overcome overnight. There is no magic wand. But there are undoubtedly solutions to many of the problems that the RBI can tackle and the job is to go ahead and do it... We will do it one step at a time, make sure that it progresses everyday’,.................
New RBI governor Raghuram Rajan to step into eye of rupee storm
.........The big question is whether the former chief economist of the International Monetary Fund (IMF), who famously predicted the 2008 global financial crisis, will take the helm of the Reserve Bank of India with a whisper or a bang. In other words, will he take his time or come out with fresh policy announcements like Bank of Japan Governor Haruhiko Kuroda, who launched a massive stimulus package within weeks of taking office earlier this year.
............
No Honeymoon for India's New Central Bank Chief
.....Local economists warn that Mr. Rajan, who has spent most of his professional life abroad, needs to prepare for the idiosyncrasies of Indian policy making. "Textbook policies don't always work in India because the economy has a lot of structural issues," said Ashima Goyal, an economist who advises the RBI on monetary policy. India's financial system includes a wide variety of formal and informal sources of credit such as commercial banks, cooperative banks, nonbank lenders and deposit companies, as well as private money lenders. The formal banking sector is dominated by state-run banks. The Reserve Bank has met considerable criticism for recent policy moves, especially its decision to impose limits in August on the amount of money Indian individuals and companies can send abroad...........
Rajan gets a pat on the back
C Rangarajan, chairman of the Prime Minister's Economic Advisory Council (PMEAC), said on Tuesday the Reserve Bank of India governor-designate, Raghuram Rajan, knew his role pretty well, as he had been involved in policy making for the past year.............
‘Raghu’s Forte Is Connecting the Dots’
........Raghuram
Rajan is first and foremost a sharp observer of economies. Raghu’s
interests and understanding of global finance extend beyond his
immediate research focus, which is on banking and corporate finance. In
particular, Raghu has always been interested in the growth of economies
and the institutional and political features governing law and
policymaking that lead to or preclude such growth. What is perhaps
Raghu’s forte is connecting dots in a manner that reflects unusual depth
and common sense..............
Read - ET
Playful Rajan Excels No Matter What the Pitch
Raghuram
Rajan’s demeanour has invariably been unflappable when faced with
questions about what the government intends to do about the inexorable
slide in the rupee or an economy that shows little sign of revival. But
then he seems to come from a family that doesn’t believe in being overly
demonstrative............
My View on " Richly deserved praise from S.S.Tarapore"
Congrats.
I also join all RBIites in appreciating your wonderful and hard work you
put in. Thanks.
G.Gopalakrishna, Executive Director
प्रिय तारांबले
सुबह चाय की चुस्की के साथ मिल जाता है, आर्थिक नीतियों का राज भी ।
समाचार पत्रों की छान बीन करने की न जरूरत होती, घट जाता काज भी ।
रिज़र्व बैंक से संबन्धित ताजातरीन खबरें, हों भारत के किसी कोने की भी ।
समेट लाता छोटी–बड़ी, एकमुश्त दर्शाता “वाइटलइन्फो” खुश होते हम सभी ।
लगे रहो मुन्ना भाई ।
पी.
श्यामसुंदर
मुख्य महाप्रबंधक एवं प्रभारी अधिकारी,
भारतीय रिजर्व बैंक, शिलोंग - 793003
Dear Mangesh,
You
have thus far received well-deserved appreciation from many quarters but the
present one coming from venerable former Deputy Governor Shri S.S.Tarapore is
the ultimate compliment of which you should feel proud of and this should
motivate you to embark on the future with renewed vigour and vitality. All
the very best wishes and Regards.
S.M.Khot,
Ex-GM
Dear Mangesh,
I am so much impressed with the quality of your
work, your lightning speed and the large canvas you are covering. So, when I visited
Pune last week I did make it a point to meet you in person and offer my
congratulations. You are a one-man army dispensing accurate info on all banking
matters. May you grow from strength to strength.
P.P.Ramachandran, Ex-DGM
Dear Mangesh,
It is a great honour
to be complimented by a famous Economist and the former Deputy Governor of RBI.
Kudos to you and your VITALINFO.
Vasudevan
Nair, CAFRAL
RBI and memories of the 2008-09 central bankers panic
.....This should be a lesson for the Reserve Bank of India. It should forget about trying to prop up the rupee and allow it to float completely freely. Instead the RBI needs to focus on a clear and well-defined nominal target. I would prefer a nominal gross domestic product (NGDP) target, but even a strict inflation target or a price level target would be preferable to the RBI’s present stop-go policies..............
Commerce ministry pushes RBI for priority sector lending to exports
..........Apparently, commerce secretary S R Rao had taken up matter “personally” with Raghuram Rajan, who will take over as the RBI governor on Wednesday, last month, urging him to notify the rules based on recommendations by a committee headed by G. Padmanabhan, Executive Director, RBI.............
India needs strong framework for financial conglomerates: IMF
The IMF has asked Indian regulators such as Sebi and RBI to put in place a strong coordination framework to deal with possible failure of the country's financial conglomerates, an issue that has been a key concern in the US and other large economies. In its financial sector assessment report on the Indian securities market, the International Monetary Fund (IMF) said that "regulators should seek to develop a basic framework for coordination to deal with the failure of entities" belonging to large financial conglomerates..........
Institute of Actuaries of India expels R Kannan, slaps Rs 5 lakh fine
.......... This is the first time that the institute has taken such a stringent action against such a high profile person. The decision had created a storm in actuarial circles when the news was leaked after the meeting. Kannan, besides being a member (actuary) of IRDA, was earlier a principal advisor in the Reserve Bank of India and also the head of Department of Economic Analysis and Policy.............
BANKING ON TRIED & TESTED TALENT
........Not
only do these bankers bring strong retail experience, they have
corporate relationships that can come handy when the banks are being set
up. While none of the former bankers are in executive roles, they will
play a critical role in guiding the management in the right direction. Among
other ex-bureaucrats and bankers who have recently joined the boards of
some of these companies are Arun Ramnathan, former finance secretary,
now at Religare Enterprises; AK Khound, earlier with RBI, who has been
roped in by Aditya Birla Group; AC Mahajan, former chairman and managing
director of Canara Bank, now at Religare Enterprises;............
Home loans: Central bank bars upfront payments to developers
.......“Such housing loan products are likely to expose the banks as well as their home loan borrowers to additional risks,” an RBI notification said. Since the loan is in the name of the buyer of the house, any delayed payment of interest by the builder harms the credit score of the buyer instead of the developer, RBI said. These schemes have been popular in recent times as the liquidity-strapped developers use it for propelling sales..........
Swapping current troubles for future ones - A.Seshan
........... Ideally, the RBI should not go by the market rate of exchange since it would then be only validating it. It should be at a level that it considers reasonable. The objection will be that it will give an idea of the Bank's view on the normal exchange rate beyond which it will intervene, something that it has denied all along. So what? It is good if it brings down the rate from today's stratospheric levels. After all, that is the objective of the swap arrangement................
BoP crisis is due to micro factors also: Gokarn
NSEL crisis: Sub-groups to submit reports to DEA by Sept 12
The two working groups, set up to look into violations by NSEL in the payment crisis on the commodity exchange, are likely to submit their reports to the Department of Economic Affairs by September 12. "The two groups will submit their reports by September 12," DEA Secretary Arvind Mayaram told reporters here after a meeting that was held to discuss the crisis. The meeting was also attended by RBI Deputy Governor K C Chakrabarty, Revenue Secretary Sumit Bose as well as officials from Enforcement Directorate (ED), Consumers Affairs Ministry and Corporate Affairs Ministry..........
Now’s the Time To Act On Foreign Bank Subsidiaries
.......RBI’s
August 27 discussion paper on the structure of banking in India brings
back the focus on foreign banks functioning in India which it has been
looking to streamline since 2005. It favours entities such as Deutsche
Bank, Citigroup and the Hong Kong and Shanghai Banking Corp to form a
company in India, called subsidiarisation, instead of functioning as
branches of their overseas parent companies. “The experience of the
recent global financial crisis suggests that complex structures, too big
to fail and too connected to fail, could exacerbate the crisis,” says
RBI’s discussion paper. ..........
Adopt simple method for claim settlement of deceased a/c: RBI
......."We have been receiving feedback from public that banks are not following the simplified procedure as advised...Banks are therefore, advised once again that they should strictly comply with the instructions for hassle-free settlement of claims on the death of a depositor," RBI said in a statement. Further, it asked banks to provide claim form for settlement of claims of the deceased accounts, to any person or who is approaching the bank and branches for such forms so as to settle the claims on time. ......
Careful with ATM Cards - Dr. N Krishna Mohan
ATM cards issued by the public sector banks are highly susceptible to fraud as they are made with inferior technology, according to the banking ombudsman of Andhra Pradesh. “The cyber crime wing of the police department has been receiving 4-5 complaints every day involving impersonation and most of these cases pertain to the cards issued by the public sector banks,” N Krishna Mohan, banking ombudsman and Chief General Manager (CGM) of RBI, said...........
RBI says P&L a/c should exclude failed ATM transaction amounts
The Reserve Bank of India Tuesday said failed ATM transaction amounts represent unclaimed balances and directed banks not to include them in their profit and loss accounts. The RBI said it was brought to its notice that some banks were transferring credit balances pending reconciliation due to failed cash retraction, sensor failure and technical or hardware errors to their profit and loss accounts..............
Banks deposit fake notes at Parliament St police station
..................."Parliament Street police station has been made the nodal police station by RBI to register cases of Fake Currency Indian Notes (FICN), so various banks from time to time deposit such counterfeit currency with us. It is not possible to give an exact figure but the amount is in crores," ................
Tuesday, September 3, 2013
Need to tweak the law to ensure RBI autonomy: IMF
............In its financial sector assessment programme for the country, the Fund pointed out that the independence of the RBI is not enshrined in the law and there are some legal provisions that could seriously undermine its independence from the Government. “Legal provisions in the Banking Regulation Law and the Reserve Bank of India Act allow the Central Government to give directions to the RBI, to require it to perform inspections, to overrule decisions and to supersede the RBI Board. Although these provisions have never been used in practice, it would be beneficial to remove them from the law so as to provide greater legal certainty,” the Fund said...............
Subbarao's 5 years: Managing crisis to managing conflict
Top bankers hail work of outgoing RBI chief Subbarao
......"I think the Governor's (five year) term has been in one of the most difficult environments globally and domestically. If you look at the world and our country today, there is so much change that you have to be at your feet and I can't imagine anybody else doing a better job (than Subbarao)," ...................
Two lectures
......Duvvuri Subbarao may or may not have had Mr Chidambaram’s lecture in mind when he wrote his; but it not only embodies an answer to the finance minister’s self-serving arguments, but also reflects the frustrations of having to live and work with him for a long five years. He asserted that an apolitical central bank had to act as a counterpoise to a government driven by the rituals of democracy. But he was also painfully aware that in a crisis, the government and the central bank were likely to be more effective if they acted together..................
Richly deserved praise from S.S.Tarapore
Dear Mangesh,
A richly deserved praise from S.S.Tarapore is
great since he is a person who reads a lot and if he finds the coverage to be
excellent, you can congratulate yourself and be proud of your work. Regards and best wishes,
- A.Chandramouliswaran, Former Executive Director
Wonderful !
- V.K.Sharma, Former Executive Director
Congrats!! This appreciation is well deserved
for your hard work. Keep it up. The information in your archives is a gold mine
and I am sure RBI itself will require this when it takes up the
History Volume V drafting. Even otherwise many are benefited from your
blog and it keeps the learning process continued with the retirees in
particular. With regards,
- Dr.T.V.Gopalakrishnan
My compliments to you, once again, Mangesh for the
appreciation of your work by Dr S.S.Tarapore for bringing out VITALINFO almost
every day in the morning - Jai Ho !!
- M O Sebastian,GM (Retd)
Dear Mangesh,
I am really happy to see people appreciating your
efforts in helping them get all financial news online so early in the morning.
I feel so happy to see the words of appreciation for you, a good friend of
mine, with whom I have worked for 6 long years. Through VITALINFO you are
helping the society untiringly without any selfish motive, which, I feel, is
great social work. With best wishes,
- R.L.Sharma, Officer-in-charge, Dehradun
Dear Taramabale ji
It is really a well deserved comment.
- R K Sood, RBI Chandigarh
Bank Employees anti Reform and against Merger Strike on 25.09.2013
.............Bank employees are presently facing low salary issues since four years and now their salary revision 10 th Bipartite Settlement is due from November 2012. Bank employee’s demand is central govt employees at par salary from earning of banks itself, but govt is ignoring since 2010. Their demands seem to be genuine that from banks earning they are demanding salary and their salary is not increased from their own efforts earnings. Since decade no bank is in loss and earning goes to Govt.............
Financial inclusion must be available to every citizen, say experts
......Former Regional Director of RBI, DPS Rathore said that financial inclusion came into focus after the UN resolution to end poverty from the globe and it is a resource which should be available to everyone. ..........
Pragathi Krishna Gramin Bank organises training programme
A training programme on Advanced Leadership for Executives was organised by the amalgamated RRB-Pragathi Krishna Gramin Bank in Bangalore. The valedictory function organised was graced by Meena Hemchandra, CGM & Principal, RBI, CAB, Pune.
FPJ
The new Rajan
.........The unprecedented scrutiny, at least in the non-pink papers and social media chatterati, has as much to do with his intellectual prowess as with his rather photogenic appeal. (Really, when was the last time the country's senior most financial regulator elicited such mainstream curiosity-anyone remember S. Venkitaramanan, RBI Governor at the height of an even graver financial crisis in 1991?). But as the trim 50-year-old settles down in his 18th floor office at the RBI headquarters at Ballard Estate, Raghuram Rajan and his wife Radhika Puri, whom he met while studying at IIM, Ahmedabad, will also be looking to create a new life in Mumbai over the next three years...............
No magic wand to wave away economic woes: Rajan
............“We have enough ideas,” said Rajan. “It is not just the currency, it is financial inclusion, it is growth. I think there is a lot to do. There are challenges in the economy.... These things are not going to be overcome overnight. There is no magic wand. But there are undoubtedly solutions to many of the problems that the RBI can tackle and the job is to go ahead and do it,”...........
What will keep Raghuram Rajan busy in RBI hot seat, what will he axe? Take a look
..........There has been speculation that Raghuram Rajan is not in favour of mid-quarter reviews and could dispense with the practice, although the scheduled mid-quarter review due later in the month would be brought out..................
RBI suggests 5 members for panel to screen new bank aspirants
......Sources said the names are that of market regulator Sebi Chairman U K Sinha, insurance regulator Irda Chairman T S Vijayan, pension regulator PFRDA Chairman Yogesh Agarwal, Financial Services Secretary Rajiv Takru and financial sector expert Y H Malegam. Takru and Malegam are also board members of RBI. Malegam, an independent director on many boards, is also an external member of Technical Advisory Committee of RBI on monetary policy...........
RBI sets new KYC norms for foreign students to open bank a/c
......However within 30 days of opening of account, foreign students should submit a rent agreement as address proof of local residence. Banks should insist on visit by landlords to branch to verify rent documents. Instead, banks should adopt alternative mechanisms to verify the local address, RBI said............
Top private banks pip state-run rivals in opening new branches
............Financial inclusion agenda coupled with growing business opportunities in non-metro centres have persuaded private lenders in increasing their branch count aggressively across the country. The introduction of low-cost branches has also encouraged network expansion..........
RBI nod must to review base rate methodology after 5 years
The Reserve Bank of India (RBI) on Monday said banks that sought to review their base rate methodologies after five years of finalisation would need the central bank's approval for such exercises. Base rate is the minimum rate at which a bank can lend. Banking executives said the implication of the revision in base rate norms was a bank would be able to consider a revision in methodology after 2015, subject to RBI's approval..........
HDFC Bank launches rural financial literacy initiative in Gujarat
.....Through this initiative, the bank will conduct a series of three literacy camps in every village, and each rural branch will hold this programme in two neighbouring villages over the next year. These camps will give participants a conceptual understanding of financial products and services using material provided by the RBI. HDFC Bank will use the financial literacy guide and posters as standard curriculum at these camps..........
PM on fiscal situation
....... Since most investment in gold is made out of black money, sincere steps should be taken to transform currency-circulation in banking transactions so that surplus currency may be ordinary ‘paper’ for all practical purposes. India should follow sensible advanced countries by discontinuing circulation of higher-denomination notes of rupees five hundred and above because such currency is used as black money to buy gold..............
JK CM opens J&K Bank National Business Centre in Mumbai
..........The Chief Minister expressed the hope that J&K Bank would grow further and further and emerge as one of the leading business companies in the Country. The Chief Minister was speaking at a function after inaugurating J&K Bank’s National Business Center at Bandra Kurla Complex, Mumbai in presence of Deputy Governor RBI, H R Khan and Chairman and CEO J&K Bank, Mushtaq Ahmad...........
Omar calls for early decision on J&K bank chief's extension
Alleging that a "propaganda war" is being played because of indecision, Chief Minister Omar Abdullah today asked the Reserve Bank to expedite the proposal to extend the term of the Chairman of government-promoted J&K Bank, Mushtaq Ahmed, at the earliest. "Uncertainty for any institution is not a good thing... people take advantage of that (uncertainty). A request has been put in to RBI and this has to be approved by RBI," Abdullah said at a bank event here, which also had RBI Deputy Governor H R Khan in attendance. ......
Differentiated Licensing Talk Gives Banking Aspirants Hope
The
Reserve Bank of India’s talk of differentiated licensing for banks on
the lines of the US and Singapore has raised hopes of many aspirants
such as India Infoline and Muthoot who believe when it becomes a reality
they could escape some tough regulations applied on full-scale banks. A
differentiated licensing could enable specialists such as
infrastructure lender IDFC, and gold loan company Muthoot Finance get a
regulatory treatment different to what it is for those banks such as
State Bank of India and ICICI Bank....
Read - ET
Banks will generate 7.5 lakh jobs in 5 years
.............By 2018, the banking industry is expected to generate around 7.5 lakh jobs. A report by management consultancy Boston Consulting Group notes the banking industry will need to hire a massive 9-11 lakh employees over the next five years with more than 80% vacancies taking place in public sector banks (PSBs). The situation could worsen as the hiring process in PSBs typically takes around 14 months...............
Worsening balance sheets have escaped attention
..........Worse, if the impairment to balance sheets is bad enough, taxpayer money will have to be used to bolster their capital. Remember, investment portfolios — and, hence, profits have already taken a beating thanks to the sharp increase in bond yields. So what can Rajan do? Regulatory forbearance, allowing banks to pretend aal izz well when it is anything but, is the standard refuge of supervisory authorities. It has been tried and tested in the past, and more recently with restructured assets that have been euphemistically named restructured “standard” assets. This simple expedient allows banks to get away with much lower provision for bad debts than warranted.............
HDFC Bank takes 15 days, two visits and 15 calls to credit eight paisa!
....This was violation banking double entry accounting mechanism and provisions. The Bank and its Kothrud, Pune branch and branch manager took 15 days and two personal visits by me and 15 phone calls to their centre of excellence and state of the art customer (harassment) call centre and equally harassing grievance resolution nodal officers and appellate authority to credit the eight paisa in my account.............
The looming banking crisis
With the collapse of the rupee and the stock market capturing attention, and corporate and media anger directed at the Food Security and Land Acquisition Bills, attention is diverted from much else that is wrong with the Indian economy. Except for occasional and startling reminders. One such came from Credit Suisse that pointed to the debt overload among leading Indian corporates. Another came from Reserve Bank of India Deputy Governor K.C. Chakrabarty on the losses building up in India’s infrastructural sector, including in its privately operated component. These are problems in themselves...........
Bengal cooperative banks come under RBI scanner
..........According to sources in the RBI, since most independent directors are political appointees, they often resort to undue influence on the bank authorities to release donations to organisations or exhibitions, where either they or their close relatives are involved. The RBI has already cautioned such banks and asked them to refrain from releasing donations to any charitable organisation or exhibition where either the directors of the banks or their relatives are involved, even within the permissible ceiling of 1% of the published profits of the bank concerned for the previous financial year..........
No national level merger of RRBs: Syndicate Bank chairman
Sudhirkumar Jain, chairman and managing director of Syndicate Bank, has ruled out the possibility of merging all regional rural banks sponsored by the Syndicate Bank at the national level. Putting an end to speculations that all of them would be merged, Jain said on Monday that as per the directions of the Finance Ministry, the sponsoring banks alone can merge the RRBs at the state level..........
Govt nod to I-T dept for tax refunds
The income tax department has resumed “normal refund payments” for 2011-12 after an informal goslow advisory was reversed. At
the same time, the offices have been asked to expedite refunds of up to
Rs 50,000 for the last financial year although the bulk of tax returns
were received by August 5. The move is aimed at ensuring that individual
taxpayers are not adversely affected by any delays in refunds. Sources
said the green light for all refunds has come from the highest level
with field offices instructed to clear pending dues..............
Monday, September 2, 2013
D Subbarao to say goodbye to Mint Street after 5 stormy years
| ......................"May you live in interesting times. I can hardly complain on that count. I had come into the Reserve Bank five years ago as the ‘Great Recession’ was setting in, and I am finishing now as the ‘Great Exit’ is taking shape, with not a week of respite from the crisis over the five years."...................... |
A swansong with a few sober thoughts: Modern finance calls for unified regulation
The RBI should be as zealous about rendering accountability as it is about guarding its autonomy, said RBI Governor D Subbarao in his swansong. He is wholly correct. Greater accountability without undermining its independence will bring transparency in the functioning of RBI and make regulation more effective. Subbarao's suggestion to have an institutional mechanism wherein the governor presents a report on the RBI's policies and outcomes before the Parliament Standing Committee on Finance twice a year and also answers questions from the members of the committee makes eminent sense...........
Raghuram Rajan takes over RBI amid crisis
India’s new central bank chief Raghuram Rajan takes over the helm this week as the nation grapples with its worst financial crisis in decades, sparked by a plunging rupee, a record trade gap and a sharp economic slowdown. Rajan, a high-profile former International Monetary Fund (IMF) chief economist renowned for predicting the 2008 global financial collapse, moves into the Reserve Bank of India’s office on Thursday, replacing his retiring predecessor Duvvuri Subbarao..........
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