Forgive them, O Lord, for they know not what they do
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.
Friday, October 4, 2013
A takeover best avoided - Dr.S.S.Tarapore
Banking has truly become 24x7 locally and globally: RBI
......since technology
speeds up ease of access of customers to service providers, enables easier
communication and possibly also speeds up operations. However, there is an
interesting and contrasting evidence that I choose to draw from one of the
examples adduced by Shri G Padmanabhan, Executive Director in the Reserve Bank
of India, who made a telling comment on the number of mobile banking accounts
that had been opened in India. While the number seemed staggering and really
impressive, a comparison with the number of bank accounts opened in India
revealed that the former was but a relatively insignificant proportion of the
latter........
Read........
Urgent need for RBI to focus on quality and impact of financial inclusion efforts
........When we say (or imply) that financial inclusion would lead to inclusive growth and therefore, the RBI must enhance its thrust on financial inclusion, I would like to transparently understand from Dr Rajan and the RBI as to what is the relationship between financial inclusion and inclusive growth? Put differently, I am yet to understand ‘how access to a savings account or credit bureau or even a loan or some form insurance would facilitate inclusive growth’? ...........
Banks not inclusive enough
.........Are commercial banking (as it is currently practiced in India) and attainment of financial inclusion mutually exclusive? It would appear so if the Reserve Bank of India’s parallel (and somewhat expeditious) movement on two separate tracks — one on the issue of new bank licences in the private sector and another on the development of a policy/institutional framework for attaining financial inclusion/financial deepening in India — is any indication...........
Young f(A)ces..............
My View on "RBI Board May Get Young Faces":
The RBI Board will go places,
If around the table it has a sprinkling of young faces,
For they have up their sleeves many aces,
And are also the one's who can bend & tighten their shoe laces,
The older faces,
Seem tied to their seats with braces.
- F R Misquith
Gandhi Jayanti thoughts: Time for Ambedkar-series currency notes?
.....Imprinting Ambedkar’s image on currency notes also has a symbolic significance. Ambedkar, as of now, is identified mostly as a Dalit hero. No doubt, he is. But Ambedkar was a multifaceted personality. His career as an economist is yet to be recognised and studied. One reason for this could be that the political developments after Ambedkar’s return to India did not allow him devote much time to economics. He was preoccupied with the Dalit empowerment and fighting the caste pernicious caste system. Printing his image on currency notes will go a long way in bringing his contributions to economics back into the reckoning. It will give Ambedkar the position he deserves in the economic history of India............
Banking Mints the Most Women CEOs in India
....“Women
tend to be more conservative, more structured, more careful about
money, good leaders and better team players,” she says. Adds Arun
Duggal, chairman of Shriram Capital and a veteran international banker:
“Banking requires sound instinct and intellectual capability to analyse
businesses. I feel women are better at it than men.”........
Read - ET
India’s Inflation Puzzle
.........In
its latest monetary policy announcement, the RBI has surprised markets
by increasing the repo rate on concerns over inflation. Many experts and
business groups have criticised the RBI as they assert that inflation
is related to supply-side factors — especially in the food sector — and,
therefore, tighter monetary policy will have little effect on it.
Tighter monetary policy will only hurt growth without helping control
inflation. A complicating factor peculiar to India is the multiplicity of inflation rates...........
Classification criteria revised for urban co-op banks
The Reserve Bank of India has revised the criteria for classification of urban co-operative banks (UCBs) as Financially Sound and Well Managed. Among others, the new criteria, which require maintenance of a minimum capital to risk weighted assets ratio (CRAR) of 10 per cent on a continuous basis, would henceforth be considered for processing applications received from UCBs for branch authorisation.........
Biz houses and banks — misplaced worries
Given the sharply divergent views on the issue of permitting industrial and business houses to promote banks, the concerns raised by most of those opposed to the entry of industrial houses in the banking space appear to be misplaced on several counts. This includes the issues raised by Parliamentary Standing Committee on Finance.........
RBI, NABARD decision draws flak
Criticising the decision of the Reserve Bank of India and the National Bank for Agriculture and Rural Development to convert primary agricultural cooperative societies into business correspondents of district-level central cooperative banks, the Tamil Nadu Cooperative Bank Employees’ Association has appealed to Chief Minister Jayalalithaa to intervene in the matter.........
Reject Raghuram Rajan panel report : Chandy
......Expressing his reservations, he said, if the Raghuram Rajan committee report was accepted this would be reduced to just 0.38 per cent. If the Center allocates Rs 1,000 crore to states, Kerala’s share would be just Rs 3.8 crore only. This will hit Kerala’s initiatives on the development front, he added................
14th Finance Commission to visit state from today
A delegation of the 14th Finance Commission (FFC) will arrive Nagaland Friday on a two-day meeting for making recommendations regarding fund requirements of the state for the period 2015- 2020 effective from April 1, 2015. According to a finance department communiqué, the commission members would review state’s finances, deficit and debt levels keeping in view, the fiscal consolidation road map recommended by the 13th Finance Commission. Dr. Yaga Venugopal Reddy is the chairman of the FFC and also a former governor, Reserve Bank of India and was board member of International Monetary Fund (IMF). Dr. Reddy was appointed as the chairman of the commission on January 2, 2013.........
RBI chief Raghuram Rajan meets Finance Minister P Chidambaram; discusses economic situation
....The Central Board of Reserve Bank will meet in Raipur tomorrow to discuss key economic and financial developments. The RBI board meets at least once every quarter. The meeting would be chaired by Rajan. The four deputy governors are the official directors on the board, while Mayaram and Financial Services Secretary Rajiv Takru are the government nominees. There are also 11 non-official directors on RBI board. .....
India to enhance capital infusion into PSU banks
The government Thursday decided to substantially enhance capital infusion into public sector banks to enable them provide cheap loans for two-wheelers and consumer durables to stimulate demand. The decision was taken at a meeting of the top economic policymakers that included Finance Minister P. Chidambaram, Reserve Bank of India Governor Raghuram Rajan and Economic Affairs Secretary Arvind Mayaram............
Taking interest in transparency
..........The RBI guidelines are welcome and, in many cases especially relating to credit card usage, overdue. Transparency in lending is a welcome trait and the authorities should encourage banks to move towards complete disclosure. The directive could, however, deal a deadly blow to consumer durable sales, which generally peak during the festival season, just round the corner. Yet, from an overall perspective, consumer protection is probably more important than a short-term dip in sales of consumer durables,.........
FM, Rajan get behind the wheel to drive festive sales
..........The decision was taken in principle at a meeting between Finance Minister P Chidambaram and RBI Governor Raghuram Rajan. Economic Affairs Secretary Arvind Mayaram was also present. Pawan Goenka of Mahindra & Mahindra met Revenue Secretary Sumit Bose to push for lower tax on sports utility vehicles and lower interest rates on auto loans. Chidambaram will soon meet heads of public sector banks to impress upon them the need to lower interest rates in select sectors........
RBI's welcome departure from convention
...... If this was not a welcome surprise for those waiting for the RBI to prioritise growth, here comes another surprise that definitely would be welcomed with both hands.......
The curious case of the Indian stock market
...........Much to government’s relief, there has been a 77% drop in gold imports in value terms and 28% in volume terms during the quarter ended September 2013 on the back of several initiatives taken by the Reserve Bank of India (RBI). On the other hand, the fiscal situation is nothing to cheer about. The first five months alone have seen the government reach 74.6% of the fiscal deficit target for the entire year’s Budget Estimate (BE)..............
Shashank Manohar brings BCCI war out in the open, blames Srinivasan for flouting RBI norms
.........Surprisingly, past president Shashank Manohar is blaming N. Srinivasan for flouting RBI norms. In an interview given to leading newspaper, Manohar said, "Despite a working committee decision, Srinivasan did not take the RBI's permission and entered into an agreement with CSA whereby they transferred money directly to CSA."..........
Can markets ride out Red October? All eyes on America, Raghuram
......Given that RBI chief Raghuram Rajan has already cleared his stance on inflation, analysts and economists expect further tightening from the central bank. Economists are now split over whether the new RBI chief will hike rates again at the central bank's next policy review on October 29. "Nearly half of economists surveyed, 16 of 31, expect Rajan to leave rates on hold at the meeting, while 15 expect a further 25 basis point (bps) increase, which would bring the policy rate to 7.75 per cent," said a Reuters Poll..........
Gold: villain or saviour?
.........The RBI study, therefore, sensibly advises increased monetisation of gold — to make unaccounted gold generate accounted money. It suggests setting up a bullion corporation for lending against and refinancing gold, and pool and trade in gold stocks. The study commends encouraging gold loans by banks and non-banking institutions. This is what traditional pawnbrokers have been doing for ages. The State began curbing, instead of registering and disciplining, private moneylenders. The hope that banks would replace them has been belied.........
Banks see rise in stress in gold loan portfolio on volatile prices
......."There were serious issues with LTV ratio in the first quarter when gold prices fell. The LTV ratio for many banks went beyond 90%. The current situation is not as bad as prices have recovered in the past few months. But there is no guarantee that prices will continue to remain firm. We are monitoring our portfolio on a regular basis,"........
Loan recast hits roadblock as promoters fail to contribute
.......After companies and banks started taking undue advantage of the debt restructuring process, the Reserve Bank of India (RBI) made the norms concerned stringent by prescribing high contribution from promoters. As on June 30, 549 cases had been referred to the corporate debt restructuring cell. Of these, 92, worth about Rs 40,000 crore, were closed or rejected, against 87 cases worth Rs 37,000 crore in March. The data for September are still been finalised; bankers expect the numbers to rise............
Password hacked, 1.27L stolen from bizman’s a/c
Pune:
In the fifth net banking fraud case in less than a month, a
businessman’s password was hacked and Rs 1.27 lakh siphoned off from his
account. The businessman lodged a police complaint on Wednesday
night, almost a fortnight after he lost the money, on the insistence of
the bank............
Read - TOI
Read - TOI
HDFC bank to double its branches in Chhattisgarh
.........The HDFC Bank sees Chhattisgarh as a potential state. “The state is a key market for the bank as it is shinning state as far as the development and growth are concerned,” Kumar said, adding that the bank is growing at 30 to 40% on year-on-year basis that would continue........
FIR against HDFC Bank, others for cheating retired bureaucrat
Delhi Police has informed a court here that, as per its orders, an FIR has been lodged against HDFC Bank along with unknown persons for allegedly cheating a retired bureaucrat of over Rs 13.6 lakh by making withdrawals from his bank account and also forging his wife's signatures............
Thursday, October 3, 2013
RBI Board May Get Young Faces
...........While
it’s the prerogative of the government to make appointments , the
practice in general is that the finance ministry takes the views of the
RBI Governor into consideration to ensure smooth functioning. Besides,
in the spirit of the newfound detente between the finance ministry and
RBI, Rajan’s word on any nominee will carry extra weight with finance
minister P Chidambaram. Ties between the two sides had become frosty during the latter part of former governor D Subbarao’s term...........
Appointments and disappointments: Towards accountable selection for top public positions
...........Now that the immediate news value of Rajan’s appointment and Rao’s rather peevish exit are behind us, it is time to deconstruct the events and examine if there are any policy lessons for the appointment making process. In making top appointments, we examine the recent quarrel, the past record, and future prospects for establishing a clearer process, especially for posts expected to impact public good. Specifically, the three questions explored here are:...........
Read........
RBI governor to give tips on Indian economy at IIM-Raipur
RAIPUR: Reserve Bank of India Governor Dr Raghuram Govinda Rajan, will address students of Indian Institute of Management, Raipur, (IIM-Raipur) on October 4, on the institute premises. He will talk about 'Indian Economy: The Road Ahead'........
Transformation of DFIs into commercial banks – the case of the IDBI and the role of employee unions
Special address by Dr K C Chakrabarty, Deputy Governor of the Reserve Bank of India, at a Seminar on "IDBI's role as Development Financial Institution" organised by the United Forum of IDBI Officers & Employees, Kolkata, 27 September 2013
........ Let me now return to the problems faced by the DFIs in India. The DFI concept in the Indian context suffered from some inherent structural infirmities. As the DFIs were set up as public sector enterprises, the market perceived the borrowings made by them as having implicit government guarantee. This induced a sense of profligacy in the behaviour of the DFIs while borrowing. Further, in the absence of a competitive environment for project lending, the entities became quite complacent and disregarded the viability of the projects financed, while pricing. The crossholding of shares amongst the DFIs also led to a contagion effect in creating NPAs...............
Payment systems in India – reflecting on some recent trends and future challenges - H.R.Khan
Inaugural address by Mr H R Khan, Deputy Governor of the Reserve Bank of India, at the
International Seminar on “Adoption of ISO 20O22 in RTGS”, held at the College of
Agricultural Banking, Pune, 30 September 2013
..... Reserve Bank remains committed towards providing a safe, efficient, accessible, inclusive, interoperable and authorised payment and settlement systems for the country. Today, our payment systems are driven by demands of convenience and ease of use & access. This necessitates convergence of e-payment products by leveraging on innovation, capabilities and integration of various systems through unified solution architecture and technology. Payment System Vision Document 2012–15 of the Reserve Bank of India articulates the orientation of overall regulatory policy stance towards promoting a less cash/less paper society, the “green” initiative which is also echoed by the Reserve Bank’s IT Vision document 2011–17..........
VITALINFO - Keep the flag flying high! - S Ganesh Kumar, Chief General Manager, DGBA
My View on VITALINFO made it possible - Prakash Bakshi, Chairman, Nabard
Well earned and well deserved encomia and kudos !
Wish you and VITALINFO God speed !!
– V.K.Sharma, Former Executive Director
Congrats for getting
appreciation from Chairman NABARD. Wish you all the best to continue the
VITALINFO with same zeal.
- R R
Kulkarni, Ex-General Manager, NABARD
Very happy to read the appreciating
words to VITALINFO from Chairman NABARD. Congratulations and best wishes !
- Rajappan Nair, Kochi
Sabhi ne apki itani tariff
ki hai ki ab hamare pas shabda hi nahi bache. You are unanimously unique person
to be appreciated for this work.
We are fortunate and happy that we know you closely.
- S S Hendre,
Assistant Manager, Pune
This is great !!
- Gunjeet Kaur, Director, DEPR
Pl keep going!!!!
– Meena Hemchandra, Principal, CAB
Dear Mangesh,
Kudos from my side too on
the fine work being done by you. I am sure that you will continue to keep the
flag flying high! Best regards.
- S Ganesh Kumar,
Chief General Manager, DGBA
Very
interesting and condensed presentation Very useful for quick updation. Keep it
up.
- K.Ramasubramanian
Dear
Mangesh, you are doing wonderful service to your readers. We are all benefitted
by the knowledge shared by you. As
Chairman, NABARD has rightly appreciated, now a days, we rely more on your
articles for the latest happening in the economic world and more particularly
in RBI. You are doing wonderful service to your readers.
– B.Govindan
Taramble Sahab, Keep up the
good work.
– Yashpal, P
& SO
Thank you very much for including my name for VITALINFO
on Mr Tarapore’s reference. I am really enjoying reading it and it does keeps
us connected with RBI too.
- Sarojini Venkatachalam
Dear Mangesh Tarambale,
Kindly include our retired CGM, DCM,
Shri Muralidharan in your mailing list. With warm regards
- A. Sreekumaran
What
better way to start one's day,
VITALINFO
from dear Mangesh,
comes
our way like a
delectable platter of sandesh!
- Frank R.Misquith
7th Pay Commission Constituted - What should UFBU Do Now?
.......Now question arises who is to be blamed for the delay in submission of Charter of Demands. Can we blame GoI or IBA for this lapse. Now GoI has announced constitution of 7th PC more than two years from the due date. This means during this time, the Commission will go through the full process of consultations, and all employees organizations will get sufficient time to put up their demands and revise them after internal and external discussions. Who stopped UFBU to start the process of completion of Charter of Demands at least one year from the due date?............
MASSIVE INCREASE OF 50 SLABS IN DA LIKELY
......There has been high increase in CPI in the month of July 2013 followed by increase in August 2013. The inflation trends of recent times indicate that in September 2013 too the inflation figures will be high. Assuming that there will be increase again of similar nature, the revised DA is likely to be around 96.45%, (increase of massive 50 slabs) for the months of November 2013 to January, 2014 (i.e. increase of 50 slabs). [The present DA is 88.95% for the months of August, September and October, 2013]. The PROJECTED DA is as follows:........
Subscribe to:
Posts (Atom)