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 19, 2013
Karnataka Bank bags Assocham award
West Bengal to assist banks on loan recovery
Under pressure from the Reserve Bank of India (RBI), the West Bengal government has finally agreed to extend administrative assistance for recovery of bad loans or non- performing assets (NPAs) from defaulters............
Wednesday, September 18, 2013
Rajan meets PM, FM ahead of monetary review
RBI’s monetary policy: A delicate balancing act
Never has a Reserve Bank of India (RBI) review met with as much anticipation as the one on 20 September. The new RBI Governor Raghuram Rajan has boosted sentiment and excited markets with a slew of financial reforms on his first day in office. Now, markets eagerly await a glimpse into the monetary policy framework of the new RBI leadership team.............
Can’t take a benign view of inflation - A.Seshan
..............As I had suggested about 15 years ago, it is time for the Government to appoint a high-powered commission to formulate a new law to replace the existing RBI Act. It could lay down a preamble giving a clear definition of monetary stability, besides incorporating other objectives such as growth. (The US Fed has triple objectives.) The Financial Sector Legislative Reforms Commission (FSLRC) missed a chance to recommend such a legislation. Next year will see the completion of 80 years of the RBI Act, 1934. It should be the occasion to start preparations for the enactment of a new law, after the Government takes decisions on various recommendations of the FSRLC............
Headaches for RBI Governor - Dr T.V..Gopalakrishnan
Why only Inflation? All problems that the economy face today add to the head ache of the governor and there is no magic wand to set right things. He has to build up confidence in the economy through ..........
Read......
Read......
Highly objectionable - P.P.Ramachandran
Ms Shobaa De's
write-up on Dr.Raghuram Rajan the new RBI Governor is in utterly
poor taste and I believe that the Economic Times has not covered itself
with glory in publishing this smutty piece. It is not as
if one lacks a sense of humour in noticing the comic aspect of Ms De
article. It is crude and reeks of the low humour associated with the
Bollywood film world --which is dear to Ms.De. The Towel dropping
incident is the lowest level to which one can sink.
- P.P.Ramachandran
Compliments, Shobhaa De
This
refers to ‘Raghu, With You As Bedfellow…’ (ET, Sep 13). The world is
indeed keeping a watch on the new RBI Governor in an uncertain economic
climate, but Shobhaa De’s piece is out of the box. The Governor has come
up with fresh ideas to help revive the Indian economy. While the world
is busy speculating on more strategic decisions from him, the article
looks at the lighter side. Ms De should be complimented as she has
expressed her views so confidently.
- SANDHYA TANEJA, Bikaner (ET)
- SANDHYA TANEJA, Bikaner (ET)
Raghuram Rajan: RBI's new face is also its hottest
New Delhi: 'Y is every1 going ga ga abt RBI gov Raghuram Rajan? Me thinks he looks a bit wily! N I mean it in a sweeeet nice way! Wink wink :)' reads a post which was put up on Twitter today. The fact that people continue to take to Twitter to discuss RBI governor Raghuram Rajan, even almost a week after everybody spoke at length about his jawline, tailored suits and his classy looks, speaks volumes about the indelible impact he has left on the minds of his supporters.............
Read.........
Read.........
Reserve Bank of India: एक चमत्कारी पुरुष की चाहत
Read........
Raghuram Rajan heralds the next generation of policy mandarins
.............There was a deep spring of talent within the central bank even after the initial economists left; there were men like M. Narasimham and V.G. Pendharkar. But the next big thrust came after C. Rangarajan left his academic career to become a central banker. Rangarajan was instrumental in encouraging a new generation of economists, so that the rethink of the very basics of monetary policy in the 1980s took place in tandem with the rethink on the other components of economic policy. Some names are worth mentioning: S.S.Tarapore, Anoop Singh, A.Vasudevan, S.L.Shetty and Narendra Jadhav, for instance...........
Raghuram Rajan may not unveil any 'gamechanger' policy, says Stanchart
.................A complete reversal of liquidity-tightening measures on 20 September looks unlikely to us. While the Indian rupee's 7.6% appreciation from 3-16 September is encouraging, the RBI might prefer to wait longer for confirmation of sustained currency stability – a factor that has been emphasised as a key determinant of such a reversal............
Policy trilemma: is there a way out?
.........Subbarao also threw up several important questions, of which three are particularly germane in discussions of monetary policy—(i) Should RBI concern itself solely with inflation or worry about real sector issues too? (ii) The nature of RBI’s responsibility with regard to financial stability, and (iii) The issue of RBI’s role in preventing asset price bubbles. The three can be analysed within the context of this slipping transmission belt syndrome.............
Is the honeymoon over?
.............Just a few days into the new tenure one gets a sense of two mindsets at work; in New Delhi, impatience with regulation, a hurry to get to that halcyon phase of high growth, even if sounds like the route Iceland and Ireland took, oh! so long ago. Rajan’s has the weight of a tradition of caution and a memory of a warning delivered at Jackson Hole; and dismissed by the likes of Summers and Greenspan, not to mention the Fed and Washington. The world is still paying the price.
RBI governmor Raghuram Rajan, FinMin to stem rising bad loans
.....The series of measures are likely to be announced by Chidambaram over the next few days. "Discussed a gamut of issues with the finance minister," said Rajan after his meeting with the finance minister. The rise in wholesale inflation to a six-month high 6.1% in August has made it difficult to cut rates to stimulate growth that is projected to fall to 4% this year. Both Rajan and Chidambaram have favoured consolidation among the 26 state-run banks. "It was an informal meeting. A host of issues were discussed," said Takru, adding that the finance ministry will again hold discussions with RBI after the monetary policy is announced on August 20. "We are going to meet Indian Banking Association (IBA) later this month. More measures will be announced after the discussions," added Takru.........
Dr Rajan, your next crisis is coming up in banking
.........This results in what (former RBI Deputy Governor) Rakesh Mohan memorably called “lazy banking”. This is the tendency of the Indian banking system to just fund the government, rather than get on with the hard job of finding good companies and individuals to lend to. This system is doubly profitable for the banks because of their access to low-cost current and savings account deposits, and because of the oligopolistic cartelisation of the banking system.............
RBI asks banks to open more MSE branches
......“The RBI has advised banks to open more MSE focused branch offices at different MSE clusters which can also act as counseling centers for MSEs” said Deepali Pant Joshi, executive director, RBI adding, “Each lead bank of the district may adopt at least one cluster.”................
Rate cuts may be delayed with RBI focus on rupee: Barclays
....According to the global brokerage firm, the RBI is likely to remain focused on supporting the rupee, which has depreciated by more than 13 percent since May and crossed the psychological level of 62 against the dollar last week. "As such, while the focus is on the INR, we think monetary policy calibration will eventually be biased towards further easing, rather than tightening. However, we think further policy easing will likely be delayed," Barclays said in a research note.........
Bankers’ Club meet
RBI Deputy Governor K.C.Chakrabarty will address Bankers’ Club meeting at Mulki Sunder Ram Shetty Auditorium, Vijaya Bank, MG Road, Bangalore at 4 pm on September 23.
HBL
RBI cancels licence of Mahatma Fule Urban Co-op Bank
......This is in view of the fact that Mahatma Fule Urban Co-operative Bank has ceased to be solvent and the depositors were being inconvenienced by the continued uncertainty...............
RBI asks banks to allot different product code to dormant a/c
......State and central governments have expressed difficulties in crediting cheques/Direct Benefit Transfer/Electronic Benefit Transfer/scholarships for students, Zero Balance Accounts, into accounts opened for the beneficiaries under various central/state government schemes but had been classified as dormant/inoperative due to non-operation of the account for over two years, RBI said in a notification. "...Banks are advised that they may allot a different 'product code' in their CBS to all such accounts opened by banks so that the stipulation of inoperative/dormant account due to non-operation does not apply while crediting proceeds," it said.............
Hackers come up with new modus operandi for internet banking frauds
Delhi police have stumbled upon a new modus operandi of e-banking fraudsters in which they first hack the internet banking account of the target and then get mobile number blocked to prevent the bank customer from receiving SMS alerts about illegal transactions made by them...............
Inflation conundrum: Is govt fudging data to trick RBI?
........“This trend of WPI higher than CPI in respect of food items is intriguing and is a trend against normal price behavior and needs to be examined more carefully, as it may have some important policy ramifications,” the report quoted from an SBI research note. Why would the government do this? Because of the RBI. The central bank has many a time indicated that it is now more relying on CPI-based inflation than WPI. So, the government, desperate for a rate cut, may be hoping that a softer CPI food price will prompt the RBI to take a favourable decision sooner..............
‘India Needs to Free Up its Savings’
.........The
money that is pulled back in savings is being held in cash reserve
ratio (CRR) and statutory liquidity ratio (SLR). CRR is more effective
because it is taken away interest free. And with a 23% SLR, why do you
need CRR? Regulators prescribe CRR as a buffer in the event of a bank
default. You also have 23% unencumbered SLR. Why don’t you make SLR 27%?
And it’s not about earning interest. At least, it will work somewhere.........
Mushtaq to head JK Bank for 3 more years
Srinagar, Sep 17: Reserve Bank of India today granted approval for three-year extension in the term of Mushtaq Ahmad as Chairman and CEO of J&K Bank. The extended term will have effect from October 6, 2013. Mushtaq Ahmad took over as Chairman and CEO of the Bank on October 6, 2010. Under his leadership, the Bank witnessed phenomenal growth in all the operational areas.........
Read - Greater Kashmir
Read - Greater Kashmir
JKGB organizes credit-cum-awareness programme
....Representatives from RBI and NABARD, Dinesh Gupta and Nitin Hingole, respectively also spoke on the occasion and enlightened the gathering about the importance of Financial Inclusion for the benefit of rural masses............
Read............
Mahila Bank to have pay-per-use IT infra model
|
Read | Business Standard
Shylock ICICI Turns Samaritan
.........When
global markets collapsed because of the financial quake triggered by
the biggest ever bankruptcy — of Lehman — in September 2008, the tremors
were felt in Mumbai’s business district Bandra Kurla Complex. ICICI,
the most futuristic of Indian banks that spread its wings in the global
markets, held notes of Lehman worth $80 million. Although it was just
0.1% of its total assets of $112.6 billion then, it triggered a run.
Such was the panic that the Reserve Bank of India and finance minister P
Chidambaram had to step in to restore calm. When Wall Street giants
responsible for sinking the global economy are lobbying against tighter
regulation aimed at a safer world, ICICI voluntarily junked its past.
Kochhar, who succeeded KV Kamath after his 13-year tenure as chief
executive, tore up the very ICICI structure she grew up with, and laid a
new foundation..............
‘Capital Controls Needed to Insulate Economies from US’
......The
new Reserve Bank of India Governor, Raghuram Rajan, has earned market
endorsement with his free market principle on currency and by rolling
back the measures of his predecessor Duvvuri Subbarao that were dubbed
as “partial capital control”..............
My View on "FSLRC members handsomely “compensated” for their “..."
Transparent norms for compensation packages, where public funds are involved (Here no need to get confused about the meaning of public funds- Organisations dependent on funds from public, whether as tax or as share capital contribution or as deposits as in the case of financial institutions including banks are all handling public funds and have only ‘Trusteeship’ rights on the resources) need to be evolved. Thank you Moneylife for exposing the absence of any norm in this area.
- M.G.Warrier
What crisis! Babus ready for medical tourism
Currently, India is going through an acute fiscal and foreign exchange crisis, right? If you say ‘Yes’, consider this. According to a newspaper report, the Centre has decided to reimburse the actual cost of treatment abroad for up to two months as well as fund the return airfare for IAS, IPS and IFS officers, along with one accompanying attendant,..............
Forex trouble
......The RBI governor has indicated transparency and predictability as his watchwords. So, the RBI should announce the exchange rates used in the swaps, including the ones with oil marketing companies. It will have a salutary impact on the market rate. .................
Who pays the price for biometric scan ATMs?
....... This new directive will involve additional expenses which bank depositors will end up bearing under the guise of technology costs. So far, Aadhaar has made no mention of who will bear the cost of biometric POS (point of sale) readers (according to a senior banker, they will cost Rs8,000 each) and biometric ATMs (Rs 4 lakh for the machine plus installation, maintenance, electricity, etc). According to the news report, banks are expected to add around 200,000 POS machines and around 20,000 ATMs next year................
SEBI’s selective reaction
.........The Reserve Bank of India (RBI) is far more open, but has no formal mechanism to engage with consumers. Even the chambers of commerce, whose collective financial muscle ought to give them some clout, only lobby the interests of powerful office-bearers. ................
RBI Bans 80:20 Schemes: Correction On The Cards?
......Several viewpoints have been floated since the RBI announced this ban, largely speculating on a fall in real estate prices as a consequence. It has been opined that developers’ holding power will be significantly reduce, forcing them to reduce prices. This analysis of the situation is based on the currently high levels of inventory that developers are saddled with, especially in larger cities like Mumbai, Bangalore and Delhi...........
Close a/c using cards for online forex trading: RBI to banks
........As and when any bank comes across any prohibited transaction undertaken by its credit card or online banking customer, the bank will immediately close the card or account of the defaulting customer, the Reserve Bank said in a notification. If it is observed that the bank concerned has failed to carry out the measures as outlined above, RBI may proceed against the defaulting bank, it said...........
Standard method to determine value of gold accepted as collateral: RBI
Now, non-banking financial companies (NBFCs) offering loans against gold jewellery would have to follow a standard method to determine the value of gold accepted as collateral, the Reserve Bank of India (RBI) has said. On Tuesday, the central bank introduced new norms for lending against gold jewellery, following the recommendations of the K U B Rao committee, which studied the issues related to gold imports and gold-loan NBFCs in India. "Currently, there is no standard method for arriving at the value of gold accepted as collateral and the valuation is arbitrary and opaque," RBI said........
'Funding for lending' scheme in works to make home & auto loans cheaper
NEW DELHI: Waiting for the Reserve Bank of India (RBI) to cut interest rates before deciding on buying that home or a car? You may not need to! According to ET Now the RBI is planning a 'funding for lending' scheme, under which the central bank may lend money to banks at a 1-2% cheaper rate. This in turn will allow banks to lend to potential consumers at a lower rate................
Tuesday, September 17, 2013
Damodaran Committee slams panel interview-based selection of regulators
........The government adopts different mechanism for various watchdogs from time to time. For instance, banking regulator Raghuram Rajan's name was forwarded by Finance Minister P Chidambaram to Prime Minister Manmohan Singh who gave his nod, those in know of the development said. However, at the time of Damodaran's exit in 2008, an interview was called and C B Bhave was selected as the Sebi chairman. The committee said the practice of inviting applications from interested candidates and subjecting them to a process of interviews by a panel comprising persons with no familiarity with the regulatory organisation, is the surest way to cause loss of public confidence not only in the process but also in the organisation............
FSLRC members handsomely “compensated” for their “contribution”
...........The remuneration, fees and compensation is just one part of the expense paid to these members. We also found out that the FSLRC spent huge amounts of money on ferrying members to and forth, feeding and providing them with food/accommodation, reimbursement of office expenses and conveyance and “other assorted expenses” (whatever this means).............
RTI Judgement Series: Citizens have the right to know about irregularities in banks
.........The Central Information Commission (CIC), while allowing an appeal, directed the Central Public Information Officer (CPIO) and chief general manager (CGM) of National Bank for Agriculture and Rural Development (NABARD) to provide copies of inspection reports of apex co-operative banks. The CPIO had denied the information citing exemption under Section 8(1)(a) of the Right to Information (RTI) Act.............
Tax passbook
The income tax department is finally moving towards a system which could allow taxpayers to keep a tab on their tax payments, tax due and refunds online through tax e-passbooks. In simple terms, managing income tax liability would become as simple as managing individual bank accounts—the only difference would be that transactions would not be possible on this platform, but that, in any case, can be done through registered bank accounts........
A day is incomplete without VITALINFO................
A day is incomplete
without reading VITALINFO.
-
K.Kanagasabapathy
Mangesh
Heartiest congratulations! As one who has been open in defending RBI and Dr Subbarao in the media and as one who has himself received encouraging response from Dr Subbarao for expressing views on issues like Financial Inclusion, I am very happy to see these words of encouragement showered on VITALINFO and you, by a person who was leading RBI for 5 years with courage and conviction.
Heartiest congratulations! As one who has been open in defending RBI and Dr Subbarao in the media and as one who has himself received encouraging response from Dr Subbarao for expressing views on issues like Financial Inclusion, I am very happy to see these words of encouragement showered on VITALINFO and you, by a person who was leading RBI for 5 years with courage and conviction.
- M.G.Warrier
Heartiest
congratulations. It is indeed difficult to acknowledge your effort and got a
very deserving appreciation who will do anything from his heart.
– Yerram Raju
Dear Mangesh,
It is really
ultimate................ No words beyond this..................
- K.S.
WADHWA, Lucknow
Dear
Mangesh,
You have earned all
the accolades that possibly can be earned. The last one from 'Subba' is
the jewel in your richly studded crown. Congrats. Keep it up.
- B. K.
Kamath, Retd. CGM
Dear Mangesh ji,
It is certainly a richly deserved honour from the highest office. God
bless!
– V G Sekar, General Manager, RBI, Jaipur
You deserve it........great remark.
- Stacy M, Asst Manager, RBI Bangalore
Dear Mr. Tarambale,
Congrats. Very happy
to read the appreciation message of the Governor.
– P.Thangam, PS,
Mumbai
Never heard this type of appreciation before ! BRAVO !!! KUDOS !!!
– Vivek Maindargi, AGM (Rajbhasha), Pune
My heartiest Congratulations.
– Ashutosh Raravikar, AGM, Mumbai
You really deserve
this. I am very very happy. Have a wonderful day ahead.
– Sushama Dhawde,
PS, Mumbai
Dear Tarambale,
This is the highest reward which you truly deserve, all the very best
for your future endeavours.
- Rama Nabar, Manager, Pune
A very well earned valuable commendation Mangesh!
- Kamala Rajan, CGM, UBD, Mumbai
Changing role of women in India
......There is certainly a case for cheap and accessible credit to women by public sector banks. But this concept of a women- centric bank has sometimes been viewed as an extreme case of inclusion by exclusion. There has also been a greater awareness of the need for inculcating confidence among women, generating awareness about their rights and privileges and training them for economic activity and employment. The benefits of development must extend to women both qualitatively and quantitatively...............
An ideal person to be emulated...........
I felt deeply sad to know of the demise of Mr Kalyanakrishnan. He was
A.O., DAD in New Delhi when we were posted to that office as S.Os Gr 'A'
(DR) on probation. He was a gentleman to the core and very friendly.
Ever smiling, he always encouraged all of us and appreciated whatever
little we did for completion of the Department's work on time. I had not
heard him talk ill of anybody or lose temper with anybody. Truly an
ideal person to be emulated. RIP.
- C.S.Murthy
An important message to the Government from RBI History volume 4
.........This history volume in particular conveys the message that RBI Governors never go wrong in their policy judgement and it is for the Government in power to evaluate the message and act decisively to save the economy from all impending dangers. This is what Dr Subbarao also did but unfortunately his advice has been not only ignored but also has been openly challenged and condemned inviting all troubles to the economy...................
Appointment of Director, NIBM
.......The key requirements for the position are exceptional leadership and institution building skills and a commanding strategic vision; the ability and drive to further the Institute’s mandate and the ability to enthuse, inspire and motivate the staff and students. A seasoned banker or an accomplished academician-administrator will be the ideal candidate............
Building a cadre of young economists
...........What is the difference between a doer and an advisor? Take a look at Raghuram Rajan and you will know what precisely differentiates the two. In about a year that Rajan functioned as chief economic advisor or CEA in the finance ministry, he looked a man with good intentions, but showed little firepower to make a difference. However, Rajan looks a different man now after taking charge as Reserve Bank of India (RBI) Governor last Wednesday, taking actions where necessary without mincing words.............
A silver bullet
................In sum, the RBI putting its weight behind m-commerce is a welcome development, since this could indeed be a game-changer in many ways. The devil will be in the details of the technical delivery system and the regulatory overview. The structure must be designed to guarantee uptake by those in the most dire need for access to the formal financial system. ........
Rupee, inflation to weigh on RBI policy: Rangarajan
 |
| ........" All that I can say is that the RBI, I believe, will take into account the behaviour of inflation as well as what is happening in the foreign exchange market and take a decision,"......... |
Too early to lower guard
..........It is probably too early to expect growth-stimulating cyclical monetary policy, but without growth, it is often difficult to tackle India’s other macro vulnerabilities. The focus is therefore likely to be on policies to promote financial development (a road map for liberalizing the banking system and opening up the capital account), which will in turn stimulate growth. Market is looking forward to Rajan’s openness to change things and the September policy could be the curtain-raiser.
Focus on transparency
..........As the new RBI governor, Raghuram Rajan, prepares his first monetary policy review statement, he should keep this confusion in mind. It has always been Dr Rajan's stated belief - and the consensus in the macro-economic profession - that central banks should focus on one instrument to control monetary policy, and that good communication and transparency are crucial to achieving a central bank's ends. The RBI's recent actions have not been satisfactory when judged from that point of view. A plethora of confusing and contradictory instruments have been used, some of which have unknown consequences; and transparency has suffered alongside............
What Rajan had that Summers didn't
.....There’s another major difference: Summers was on the wrong side of one big question, while Rajan was on the right side – and that’s on whether the increasing financialisation of the US economy that began in the late 1990s posed a systemic risk. Rajan, famously, warned a gathering of central bankers in 2005 at the height of the Alan Greenspan era that modern finance had made the economy more vulnerable. In response, Summers snapped the way he would have in a seminar room – Rajan’s views where “slightly Luddite”, he said. Summers had, of course, led the drive towards deregulation in the Clinton Treasury. But he was wrong and Rajan was right..................
Advice for the guv'nor
..........If you can save the rupee AND keep some vapid starlet’s face off the front page by taking his/her place, you’re okay in my book. Which by the way is an economic tome called “The 7 Habits of Highly Effective eBay Discount Voucher Users.” I’ll be sure to send you a copy.
The Root of Stagnancy
..... Take the decision of the new RBI Governor, Raghuram Rajan, as a contrast. A brilliant visionary as he is, after assuming office he passed a decree that any bank could open a branch without RBI clearance — only the usual rules would be followed and the clearance issues would come up later on. This is a smart and neat way of doing things in the era of liberalization. .............
Forex policy: RBI's change in stance
..............“What if the Fed tapers more than $ 20 billion? This should trigger RBI FX intervention to prevent sharp depreciation, although the INR will likely still pierce Rs65/$ again,” Indranil Sengupta, India Economist at Bank of America Merrill Lynch said. If the tapering is deferred, then RBI is expected to withdraw the liquidity tightening measures that it had started since July 15.
Zero balance - Zero presence
Following pot nationalization reforms, banks were quick to close down the 'loss-making' rural branches and the RBI encouraged them to do so. In the fifth year of financial inclusion quite a few banks closed down the accounts with zero balances in rural areas and asked the BCs to chase them for viable business. Now, in this eighth year of financial inclusion, banks are expected to open 25% of the new branches in rural areas although such directive did not deliver results thus far. Banks that are keen to participate in the inclusive growth agenda would do well to simultaneously invest in social infrastructure - primary and middle schools to qualitatively upgrade and primary health clinics to up scale when the staff posted there in their youthful careers would find worthwhile to stay there and pursue the financial inclusion agenda wholeheartedly.
- Yerram Raju
RBI and Inflation
.... It is for the Government and not for the RBI to seriously ponder over the whole issue of inflation control at this critical juncture where the failure of the government is predominant. RBI's balance sheet expansion is also a direct reflection of Government"s poor finances.
Vegetable prices and inflation
.........If one carries Rs 500 note, one can have vegetables and one or two fruits for a day for a four member family is the ground reality. The economics practiced by the Government cannot be understood even by the economists is not an exaggeration. .................
Rising WPI inflation could tie RBI’s hands
.......In his inaugural address to the media, Rajan emphasised RBI’s role in ensuring monetary stability, suggesting that he would not adopt any softer stance on inflation in favour of growth. “Ultimately, this means low and stable expectations of inflation, whether that inflation stems from domestic sources or from changes in the value of the currency, from supply constraints or demand pressures,” he said............
Limited policy options
......But all this should not warrant any thought that the economy was back on the growth path. It is not. Fortunately, most economic players do not expect that Rajan has too many options to effect major changes in the monetary policy. A survey of economic pundits by a pink paper revealed that there is near unanimity that the time is not ripe for a reduction in the policy rate. Inflation, especially food inflation, continues to hover close to double- digits. Besides, the modest currency appreciation does not in any way suggest that the pressure on it is off..........
RBI may unwind some cash tightening steps: experts
India's headline inflation rose at the fastest pace for six months in August, driven by an 18% jump in food prices, a reminder of the economic pressure new Reserve Bank of India (RBI) governor Raghuram Rajan faces ahead of his first policy meeting this week............
The malaise that drove down the rupee
........The flurry of policy announcements in recent weeks is based on the diagnosis that the relentless slide of the rupee, attributed to the widening Current Account Deficit (CAD), can be arrested if and when capital inflows — as investments or borrowings — fill the gap. Reserve Bank of India governor Raghuram Rajan’s recent announcement allowing banks to borrow from global capital markets at a time when interest rates are rising because of the expected reversal of the United States Federal Reserve’s easy money policy is tailored to this logic.............
Forex counters in Duty Free Area
In order to provide money changing facility to non-resident Indians to convert unspent rupees with them, the Reserve Bank of India said Foreign Exchange Counters can be established in the Duty Free Area/Security Hold Area beyond the Immigration/ Customs desk in international airports in India by entities authorised to deal in foreign exchange........
Banks Yet to Take Up New Guv’s Offer on Easier Global Funding
It
is more than 10 days since RBI governor Raghuram Rajan eased overseas
fund-raising for banks, but hardly any bank has moved. Bankers are
worried about the reaction of regulators overseas and the use of funds
when there is not much demand for loans. There is also apprehension that
the cost of fund may be on the rise after the jump in the US treasury
yields to 3%...........
Read - ET
Read - ET
Temples now the only hope for gold industry?
.....“ If the temples release some of their gold, the country need not import this for another four- five months. It will be win- win situation for both the government and the temples. The government will save a lot of foreign exchange," he added. All this is predicated on building consensus between the temples on parting with some of their gold. There were reports that the RBI had sent a circular to some of India's prominent temples seeking details of their gold stocks.............
RBI tightens rules on lending against gold jewellery
............The new rules include strict documentation for high value loans against gold and prohibition of misleading advertisements by NBFCs such as offering availability of gold loans in a matter of 2-3 minutes.The guidelines are broadly based on the January recommendations of an expert panel set up by RBI, headed by K.U.B.Rao. The RBI, however, did not accept the recommendation of the panel for higher loan-to-value (LTV) ratio on gold loans. ...........
We pointed out our exclusion to RBI in 4-6 days: Prem Pal Gandhi
.............RBI said it 'inadvertently' missed out the company's name while releasing the applicants list on July 1. Did you pointed out to RBI about the exclusion? If so, when was the communication made? Why do you think RBI took close to three months to rectify the mistake?..............
First Leasing moves court against RBI order
CHENNAI, SEPT. 16:
The Chennai-based First Leasing Company of India has approached the Madras High Court following the Reserve Bank of India order stopping it from transacting any further business, according to Farouk Irani, Managing Director, First Leasing. The RBI directive on Saturday said the decision follows an inspection of the company’s books of accounts and related documents as of March 31, 2013. Irani said the company does not agree that even regular expenses should require RBI’s clearance, and “hence we have approached the court”...........
YES Bank becomes first lender to use new swap rules
YES Bank, the country's youngest private sector lender, has become the first bank to take advantage of the Reserve Bank of India (RBI)'s new swap rules. The bank has raised $255 million via a dual currency, multi-tenor syndicated loan facility. The move comes barely days after RBI allowed banks to raise money (above 50 per cent of their tier-I capital) from foreign markets with a minimum maturity of three years and swap the borrowings with it at a subsidised rate for one to three years............
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