........While some of these measures could eventually get reversed once normalcy returns, it is important to impart structural stability to CAD with respect to gold imports. In this context, the policymakers can explore the possibility of setting up an apex body — The Gold Bank — which can procure and retain gold abroad through offshore foreign currency borrowing. Using this gold-backed backing, the scheduled commercial banks can offer a Gold Deposit Account to retail customers, which can represent notional units of gold and provide gold price return in weight terms. This will not only promote financialisation of incremental demand for gold, but also incentivise the deferment of the need for importing physical gold.........
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.
Saturday, October 12, 2013
Don’t give credit to govt, RBI for lowering CAD
......The government and the RBI know this but their concern on the weak INR overrode practical economics. The question is when will the restrictions on gold and silver imports be taken off? What will happen when the CAD shoots up on pent up demand for the commodities? Well, tomorrow is another day and we’ll take it as it comes, is the policy of the government and RBI. Hopefully, tomorrow will not come at the wrong time...........
Bankers, legislators abstain from DLRC meeting
The administration has decided to write to the Reserve Bank of India (RBI) about the absence of representatives of some banks from meetings being held in the district. Not only private sector banks but also public sector banks are reportedly taking these meetings for granted. Even legislators have not been attending the meeting............
‘Inconsistent’ monetary steps by RBI leaves Tirupur knitwear industrialists puzzled
..........“Really, we did not know what the apex bank is doing with this type of disordered decisions. It has been only a couple of days prior to this reduction, the same RBI raised the Repo rate by 25 basis points with the ‘opposite justification’ that the inflation is on a high and there is a need to suck out excess liquidity from the system. “While hiking the repo rate during September last week also the MSF has been brought down from 10.25 per cent to 9.5 per cent, which is paradoxical by its nature,” G. R. Senthilvel, secretary of Tirupur Exporters and Manufacturers Association, said.......
ICICI Bank organizes Coin Exchange Mela at Chandigarh
Chandigarh: ICICI Bank, India’s largest private sector bank, organised a Coin Exchange Mela on October 10, 2013 at its Sector 19C branch in Chandigarh, under the guidance of the Reserve Bank of India. ......
Indian Bank open new branches
.....Out of the 180 banking branches in Krishangiri district, 33 are from Indian Bank. The bank is leading in SHG lending and educational loans. Indian Bank’s share in SHG lending is 45 per cent and that of educational loan is 38 per cent. The new branches are being opened as part of the financial inclusion policy of the Reserve Bank of India.......
Why you should always check your bank balance statement
........So ensure you read your bank’s monthly account statement carefully and watch out for any discrepancies. If you don’t track your account regularly, there is a good possibility that any deductions or penalties could easily go unnoticed.......
Cyclone scare: Odisha seeks RBI help to ensure relief payments by banks
In view of the severe cyclonic storm 'Phailin' that is set to hit the coast of south Odisha by Saturday evening, the state government has sought the intervention of the Reserve Bank of India (RBI) to facilitate government payments towards relief expenditure. The state government has sounded a high alert in 21 districts that have been identified to be vulnerable to the impending storm........
SBT to expand footprint outside Kerala
.........By expanding in this region, “we will also meet the 18 per cent net banking credit extension to the agriculture sector laid down by the RBI,” said Sajeev Krishnan, managing director, SBT. The bank on Friday opened its regional office and retail assets central processing cell here. The facility will have 14 employees, to be headed by the respective AGMs. It will come under the Chennai zonal office. ........
Friday, October 11, 2013
Dr Subbarao And The Chakravyuha
RBI sending out contrarian signal
.........Meanwhile, the RBI has sent out a contrarian signal by ` persuading’ banks to offer cheap loans for buying consumer durables. A couple of public sector banks, already groaning under huge nonperforming assets, have felt obliged to cut the lending rate for buying scooters, television sets, etc. The last monetary policy review had seen the central bank tighten liquidity. In fact, a few days ago, it had clamped down on the zero- interest schemes that were offered by makers of consumer durables during the festival season. According to reports, the central bank was pressured by the finance ministry to try and neutralise the effect of that ban by persuading public sector banks to lower interests for borrowers intending to buy consumer goods this festival season. Otherwise, one cannot see the RBI squeezing liquidity..........
‘Two plus two must make twenty-two’
The long and short of it
.......The Governor was obviously referring to the increasing stress on account of non-performing loans in Indian banks’ balance-sheets — primarily on account of long-term loans made to the infrastructure sector, namely, in power, roads, aviation, telecom, metals and other sectors; and how banks could have well avoided all that stress if India’s domestic financial markets were developed enough to provide long-term finance. This would allow banks to focus more on providing short-term working-capital finance to industry and projects.........
Suddenly generous
The government is playing the politics of appeasement to woo Central government employees and pensioners by implementing the recommendations of the seventh pay commission prior to the Lok Sabha elections next year (“Pay populism”, Sept 27). Nothing else can explain its sudden generosity. But intelligent citizens are aware that a great degree of uncertainty is often associated with pre-election promises. One cannot say for sure if all these populist measures will ever see the light of day after the government is formed.
- Janga Bahadur Sunuwar, Bagrakote, Jalpaiguri (The Telegraph)
बीते दिन - ए. यू. शेख़
Remembering RBI days. We have seen all sorts of things during 30-40 years at various depts/centres.....
Grateful for his lessons.............
Shri E.P.VEERARAGHAVAN was my first Inspecting Officer. I was an understudy for Vriddachalam coop. Bank of ACD days. I am grateful for his lessons. May his soul rest in peace.
- Jayaram Nayar
Ownership rights................
My View on "RBI vs GoI":
Let us read the observation “While RBI is signalling a hike in interest rates, the finance ministry has said it is willing to give banks more capital provided they used this to lend more in certain areas and at lower interest rates. If the finance ministry gives banks Rs 100 of additional capital, banks can lend up to Rs 1,000 given the current capital adequacy norms.” in this edit again. GOI today is using its ‘ownership rights’ on public sector banks even beyond the level IMF used to do through conditionalities while extending ‘aid’ to poor nations decades ago. Traditional priority sector which has not lost relevance in the development context is being ignored and finance ministry is asking public sector banks to lend at lower interest rates for consumption and luxury. As regards capital adequacy norms and infusion of additional capital, perhaps a relook at SLR norms (which provide captive sources at lower than market rate funds to government), accumulation of bad loans because of GOI policies and need for a level playing field for PSBs may be necessary to assess costs and benefits for the institutions.
- M.G.Warrier
‘I’m independent’ - Raghuram Rajan
India's Rajan: 'Zero' Chance of Asking IMF for Money
...."One thing that I can say with confidence is that the chance of us going to the IMF for money is zero," Rajan said at an event on the sidelines of the annual IMF and World Bank meetings of finance minister and central bankers...........
RBI governor Raghuram Rajan's initiatives may see public banks close valuation gap with private peers
MUMBAI: Stock markets throw up many a paradox. But nothing is starker than the valuation gap between the public sector banks and private ones. Of course, there may be good reasons for that, but that may be changing soon if the Reserve Bank of India governor Raghuram Rajan has his way in transforming the banking system treats loans recast and defaulters.......
HC Stops SBI’s Move to Withdraw Check-off Facility
........SBI’s
move to discontinue the check-off facility, effected during the term of
its just-retired chairman Pratip Chaudhuri, was seen as a way to quell
trade union activities. The High Court verdict was closely watched as an
order supporting the axing of the facility could have made similar
trade union arrangements elsewhere vulnerable............
RBI cautions co-op banks against lump sum disbursal of loans to builders
Builders and real estate developers may no longer get large sums of money as loans at one go from the government. The Reserve Bank of India (RBI) has advised the state and Central urban cooperative banks to link the sanctioned individual housing loans to construction stages, interest/EMI etc before disbursing such loans to them. Known as "innovative housing loan schemes", banks generally disburse sanctioned individual housing loans to builders as a lump sum instead of linking it to the stages of construction...........
RBI reviews norms on urban co- op banks’ unsecured lending
The Reserve Bank of India on Thursday said unsecured loans worth up to Rs. 10,000 sanctioned by urban co- operative banks would be exempt from the aggregate ceiling on unsecured exposure of 10% of total assets as per audited balance sheet as on Mar 31 of the previous financial year. Earlier, the said limit was raised to 25% of the bank's total assets with the permission to grant unsecured loans of up to 20,000, with prior approval of the central bank, to individual accounts.........
RBI grants infrastructure NBFC status to IIFCL
New Delhi: The Reserve Bank of India (RBI) has granted the state-owned India Infrastructure Finance Co. Ltd (IIFCL) the status of an infrastructure non-banking finance company (NBFC), but with relaxed capital adequacy requirements—a move that will allow the company to lend more to infrastructure projects and also not require the government to recapitalize it to meet capital requirement norms prescribed for infrastructure NBFCs.......
24 months a bit too long?
Reserve Bank of India Deputy Governor K C Chakrabarty said on October 5 that new banks would take 24 months to be operational after getting licences. But a look at some of the key steps to be taken after securing bank licences shows the process should not take more than a year. ...........
New banks: More the merrier but will they be better?
......Therefore, having more banks is definitely a good idea as it will usher in more competition which will probably mean better services. In terms of spread of inclusive banking, one may not be too sure as the question is that if there were opportunities, the existing banks would have already been there. But quite surely the RBI will ensure that branches come up in these regions. Employment will increase and there will be better choice for the customers and..........
Kotak Bank plans to double branches in three years
....."The critical point has been RBI's decision to free up licencing of bank branches" said Kotak, referring to the RBI governor Raghuram Rajan's decision to allow banks open branches freely as long as they were within the parameters prescribed by RBI. Kotak said that the bank would add another 100 branches before the end of the current financial year. .........
RBI concerned as credit growth outstrips deposit mobilization
..."Our problem is that banks are giving too much loans compared to the deposits they mobilize. Their credit-deposit ratio is 78% and their incremental CD ratio is more than 80%. Our concern is that if banks are not able to mobilize deposits, so how will they be able to grow their loans," said KC Chakrabarty, Deputy Governor, Reserve Bank of India speaking at an event to launch a financial inclusion programme by Kotak Mahindra Bank to cover milk producers in Gujarat and West Bengal.........
Finance Ministry asks public sector banks to ramp up rural ATMs
The Finance Ministry today asked state-run banks to expedite installing automated teller machines (ATMs) in rural areas, which is falling short of the budget target. Against the target to install 34,668 by the end of March 2014, the public sector banks have put up only 5,726 ATMs by end of August, Snehalata Srivastava, the additional secretary in the Department of Financial Services, said.......
Do-it-yourself becomes new banking norm
...."Most online transactions are real-time and do not involve paper-based transactions , thus saving customer time. We are witnessing rapid customer adoption for net banking over and above their normal account related transactions. They are now viewing net banking as a single stop for all their banking requirements,"...........
Bigger, better, safer! RBI's new move to improve mobile banking
.......The committee shall examine the how practical it is to use encrypted SMS-based funds transfer. The operation is executed by using an application that can run on any handset. The committee set by RBI shall lay a road map for the implementation of the concluded solutions and other options for the mobile banking..........
Read.........
Six banks sign up for Aadhaar-based remittance
Customers of six banks will now be able to transfer money from one bank account to the other by keying in the receiver’s 12-digit Aadhaar number. The National Payments Corporation of India (NPCI) launched the Aadhaar-based remittance system in association with Unique Identification Authority of India (UIDAI) and six banks..........
Plan panel officials disagree with Rajan panel report on state funding
.........Planning Commission officials, who do not wish to be identified, spoke against replacing the Gadgil-Mukherjee formula; they say it is a time-tested one. Doing away with the existing classification of special category status to remote and hilly states, as recommended by the Rajan panel, needs approval from the National Development Council (NDC, comprising Centre and states), they contended. “Any move to alter the time-tested Gadgil-Mukherjee formula could open a can of worms,” a key Planning Commission official told Business Standard........
Rajan's growth report on states is flawed: Bibek Debroy
..........Assuming it was a criterion, the present exercise isn't particularly easy to understand. It smacks of arbitrariness and subjectivity. Having said this, is there any neat way to figure out why Gujarat does relatively badly in the Raghuram Rajan report? Not really, because the report doesn't give raw data. In sum, this entire report is rather cavalier in approach.
When policy interventions go wrong
When the Andhra Pradesh government sought to restrict microfinance institutions' (MFI) activities in December 2010, it was with good intentions. But the results were bizarre: "The average household expenditure dropped by 19 per cent, and the largest decrease was observed in expenditure on food," says The real cost of credit constraints: Evidence from micro-finance, a recent paper from the Indira Gandhi Institute of Development Research (IGIDR) written by Renuka Sane and Susan Thomas.............
Bank cap infusion likely to go up by Rs 5,000 crore
.....Last week, a meeting between Finance Minister P Chidambaram, RBI Governor Raghuram Rajan and Economic Affairs Secretary Arvind Mayaram had decided that there would be sufficient fund infusion in the banks to enable them to extend loans to select sectors. The Finance Ministry had said the step would revive consumer demand and in turn economic growth. But the measure was later criticised by RBI Deputy Governor K C Chakabarty as being imprudent. “It is not a very prudent measure to increase consumption by lowering interest rates. If the rate goes up it will become NPA,” Chakrabarty had said soon after the government decided to prop up consumer demand through lowering of rates......
Banking on festival cheer
.............This anxiety forced Finance Minister P. Chidambaram to announce that banks would offer cheaper loans to stimulate demand for two-wheelers, cars, and consumer durables. Significantly, Mr. Chidambaram’s hint to banks came after a meeting he had with the RBI Governor Raghuram Rajan. He also indicated that banks would be provided extra capital to execute his `pump-priming plan’...........
Taxpayers still face IT department’s computerization hurdles
........While taxpayers have so far been patient, looking at the long-term benefits that computerization would bring, how long can they be expected to put up with such new problems arising every year? While one understands that all bugs in a system cannot be completely eliminated, the tax department needs to be much more proactive and needs to take steps to ensure that taxpayers do not suffer because of the department’s shortcomings.
EC eyes black money flow, asks banks to scan deals
............As per the guidelines issued to the banks, any unusual transfer of money through RTGS ( Real Time Gross Settlement) system during the poll process without any precedent of such transfer will have to be reported. Further, any deposit of cash or withdrawal of cash exceeding Rs one lakh from back account of candidates or spouse or dependents as mentioned in the affidavit filed by candidates, which is available with the commission, should be reported.........
Axis Bank to pay Rs 66,000 for denying credit cards to cops
.The New Delhi District Consumer Disputes Redressal Forum observed that the bank had "deliberately declined" to grant credit card facilities to the officers, of SHO/Inspector rank, despite RBI guidelines and held the bank guilty of "unfair trade practice". "We have gone through opposite party's (bank) reply and evidence and noticed the bank had taken entire salary account of Delhi Police officials assuring all of them to provide credit facilities as per RBI guidelines. The opposite party deliberately declined complainants' credit card applications arbitrarily despite RBI guidelines. ..........
All about closing credit cards!
Enough can’t be said on the diligent care one must take when handling a credit card! Sometimes, you may feel that a particular card is not of much use to you, or you may realise that you are holding several credit cards and many of them are not getting used. So you may wish to cancel your credit card. However, you may sometimes realize that despite taking the initiative to cancel the card, you continue to receive statements from the bank declaring that you have unpaid dues in your account. What is the reason behind this?.....
Thursday, October 10, 2013
THE CURIOUS CASE OF RAGHURAM RAJAN
Read............
Ignore the IMF, Go with Rajan on Growth
On India’s growth prospects, RBI Governor Raghuram Rajan is more
correct than the International Monetary Fund (IMF). The Washington-based
multilateral lender, which released its World Economic Outlook on Tuesday, has
trimmed India’s growth forecast down from 5.6% to 3.8%, calculated at market
rates. This is the steepest fall in terms of.................
RBI vs GoI
........While RBI is signalling a hike in interest rates, the finance ministry has said it is willing to give banks more capital provided they used this to lend more in certain areas and at lower interest rates. If the finance ministry gives banks Rs 100 of additional capital, banks can lend up to Rs 1,000 given the current capital adequacy norms. And since banks will now have to raise less funds in the market, either through CASA or bulk deposits, their cost of funds will fall and can be passed on to consumers. ............
Rajan effect working well for currency
Raghuram Rajan seems to be a perfect talisman for the rupee. Ever since he's taken over as the governor of the Reserve Bank of India, the currency has appreciated by 8.76 per cent and is now stabilising between Rs 61-62 against the dollar. Not surprisingly then that Rajan has opted to cut the marginal standing facility (short-term rates) by another 50 basis points, barely weeks after he cut it by 75 basis points on September 20. Incidentally, his predecessor had opted to tighten short-term rates to bring more stability to the rupee, and Rajan's rollback indicates that the currency crisis is over for now.........
Bank Tarzan meets Jane(t)
Washington, Oct. 9: President Barack Obama nominated Janet L. Yellen as the US Federal Reserve chairwoman, one of the most important economic policy-making jobs in the world. The nomination will put Yellen, 67, on course to be the first woman to lead the world’s most influential central bank in its 100-year history. She will also be the first woman to head a central bank in any Group of Seven industrial nation. The elevation of Yellen, who has been the Fed’s vice-chairwoman since 2010, will provide some relief to global markets, including that in India, which will expect her to tread carefully in winding down the US economic stimulus........
Technical committee to look at ways to boost mobile banking
.......The committee will also look at any other solution that could expand the reach of mobile banking and, accordingly, draw up a roadmap to implement the solutions. B Sambamurthy, director, Institute for Development & Research in Banking Technology, will be the chairman of the committee and Vijay Chugh, chief general manager, RBI, the member-secretary. The committee members will comprise officials from State Bank of India, ICICI Bank, HDFC Bank and Axis Bank. It also includes Anthony Thomas, chief information officer, Vodafone India.......
Sound Move, Reserve Bank
With the
concrete measures now taken by the RBI, the rupee is beginning to settle at
around 60-61 against the dollar, much to the relief of exporters. Against this
backdrop, the RBI has preferred further easing of liquidity by cutting the
marginal standing facility rate. The ongoing festival season that is to stretch
up to March next year is expected to create a rise in demand, leading to credit expansion. The lending and deposit rates of banks to that extent might require some alignment. In a
nutshell, it is a welcome development by the RBI to make conditions more
conducive for banks to operate, which will contribute the growth of the
economy. The important thing is that Dr Rajan has successfully tried to restore
much needed confidence in the markets, which is a right beginning to take the
economy forward to high-growth terrain.
- SRINIVASAN
UMASHANKAR, Nagpur (ET)
Making the job easier...........
The Finance Minister could have named the group which should own these seven banks, making the Jalan commitee's job easier. He could then have the upper hand in dictating the future of the pending applications.
- T K E Das, Ex-General Manager
Priority for non bank finance companies in bank licenses: K C Chakrabarty
MUMBAI: Government will give non-banking financial companies (NBFCs) priority when awarding new commercial banking licenses as they already own an existing network of financial services in the country, central bank deputy governor K.C. Chakrabarty said on Wednesday..........
Ban has come at the right time: Chakrabarty
.....On the timing of last month’s directive to banks asking them to desist from offering zero per cent EMI schemes through credit cards, Chakrabarty said the timing is absolutely right. “During the festive season, mis-selling is at its peak, so wrong things should not happen when more people come (to buy). Whatever you (banks) are doing, convey it to the customers,,” he said. “There is no ban on giving loans on credit cards. What we are saying is don’t charge customers. Don’t charge more per cent by saying zero per cent,” he added.......
Credit card loans: RBI says has no issues if done transparently
....."There is no ban on giving loans on credit cards. Don't charge 12 per cent actually and claim that I am charging only zero per cent interest," RBI Deputy Governor K C Chakrabarty told reporters here. It could be noted that RBI had last month banned zero per cent interest schemes offered by various bank to credit card holders saying the scheme lacks transparency. The move is likely to dent banks festive season sales........
Obituary
E.P.VEERARAGHAVAN (81) Retired Officer, RBI, Chennai expired on 5-10-2013. Ph: 22604902.
Hindu
This week, withdraw from an ATM, get crisp new notes
.........Such complaints may now reduce, as the Reserve Bank of India, Chennai, has instructed various banks in the city to provide fresh notes to its customers, particularly through ATMs. Starting last week, RBI officials initiated the process and directed banks to feed new notes, particularly of those under the denomination of Rs. 100 and Rs. 500, into their ATMs................
Contentful questions.......
My View on "Growth, Low Inflation to be RBI’s Priority":
This interview gives in one place Dr Rajan’s perceptions on RBI’s role, RBI-GOI relationship and the need for skill development in RBI, among other issues. Team ET has asked right questions and where there was ambiguity in questions, the answers were elaborate to make things clear. It was a refreshing experience reading this, as, in some interviews in the recent past with heads of some organizations, published in the media, the questions had more ‘content’ than the answers.
- M.G.Warrier
Former Chief of Reserve Bank of India meets CBSL governor
Former Governor of the Reserve Bank of India, Dr. D. Subbarao has visited the Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal on Tuesday............
Unrealistic appeal
This refers to “Cheap loans: By how much can you cut rates, FinMin asks banks” (Business Line, October 9). Asking commercial banks to disclose information regarding the possibility of cut in lending rates, has been viewed from two angles can be seen asa stimulus measure to expand the demand for consumer durable goods in the short run. It also seems like a poll campaign in disguise. Whatever the motive, it will ultimately nullify the constructive measures taken by the RBI to contain inflation. How can a bank lend money to the extent of 10 times its deposits just to get one-tenth of it as additional capital from the Centre?
- S. Lakshminarayanan, Cuddalore (HBL)
Cash-ferrying companies flout rules on weapons
.......The Internal Security Division, in a September 10, 2013 letter, sought information about this matter from the Reserve Bank of India (RBI) but is yet to get a reply. Information has been sought on, among other things, carrying bulk cash, guidelines on type of vehicle (security levels) to be used for transportation and model copy of contract document between private security agencies and banks for cash in transit.
Seminar on banking
The College of Cooperation, Banking and Management of Kerala Agricultural University is hosting a two-day national seminar on ‘Contours of Indian Banking’ on October 23 and 24 at the University Central Auditorium on the main campus.........
Bitcoins: Exciting, anarchic and risky
...Bitcoins are an anonymous, decentralised digital currency. In contrast to electronic money, no company controls the bitcoin, nor ever could: all the rules about how it works are embedded in the very operation of trade, including the rate of inflation and how to verify transactions. For most users, the easiest way to get bitcoins is to buy them. But due to strict anti-money laundering controls, even that is tricky...........
Globalisation vs the rupee
.......Some economists say that we have not had enough ‘reforms’ to keep India attractive for foreign investments; others point to the enormous increase in our Current Accounts Deficit as the import bill has increased substantially; yet others blame the recent upswing of the American economy and other global factors. Caught in the crossfire of facts and opinions is the poor resident of the non-stock-market-investing Bharat, struggling to obtain even basic necessities like food and shelter. Do our decision-makers understand that this citizen is suffering not due to inadequate ‘development’, but because of an inappropriate model of economic growth? Faith in this model has privileged cold growth (GDP) statistics over meaningful indicators of human well-being, sharply increased inequities.......
Some more liquidity, please
By rolling back a steep increase in short-term rates, opening the floodgates on FCNR deposits, and infusing liquidity through bond purchases, the Reserve Bank of India has been signalling to banks and the bond markets that it isn’t entirely anti-growth. But for these measures to be really effective, the central bank needs to do much more..................
RBI couldn’t care less about corrupt UPA
.......It is indeed a relief to see Governor Raghuram Rajan at the RBI beginning to ease up on the liquidity. This is essential for growth, even as the IMF expects barely 3.8 per cent growth in GDP this year, down from its earlier estimate by a dramatic two per cent points, but going up to 5.1 per cent next year. Of course, even five per cent odd was a 10 year low when it happened last year, and therefore, the current dip estimated is all the more significant. It shows the Government’s economic policies are just not working...........
From anxiety to complacency in six weeks?
......The tide began to turn in early September with the new Reserve Bank of India (RBI) governor's confident and well-considered initial policy statement on September 4, including the announcement of swap facilities to banks for foreign currency non-resident (bank), or FCNR (B), deposits with maturity of three years and over at a rate of 3.5 per cent per year. This quasi-exchange rate guarantee soon triggered fresh inflows. Within days of this initiative, ..........
India Inc needs stronger bankruptcy legislation for efficient revival process
....If Reserve Bank of India Governor Raghuram Rajan's plans to expedite loan recast and speed up the resolution of unviable businesses come through, India's economic recovery from any slump in the future could be as quick as that of the US, unlike Japan, where companies linger on like in India..........
CAD, growth and the rule of law
The Second Quarter Monetary Policy Review is due end of this month. We are currently in a scenario of the higher Current Account Deficit at 4.9% of the GDP than both the previous quarters, as well as Q1 2012- 13. India would do well to use the breathing space that has been provided by the US deferment of tapering, to fix its Current Account Deficit ( CAD) and resuscitate growth. While it is the Current Account deficit and deficit in output growth rate which are garnering maximum attention, there is a third deficit - a Rule of Law deficit, equally important due to ......
Beyond the taper talk
....In India, though RBI has raised the repo rate and is increasingly been seen to be moving away from the Wholesale Price Index towards the Consumer Price Index as the key operating variable, this transition may not be easy as the interest rates will have to be increased by a fair amount in order to undertake this policy shift. However, raising interest at this point will affect sentiments and expectations around growth. Notably, RBI will also have to reassess its position on the exchange rate and capital flows, as focus in last few months has been on external sector management...........
Why you need to be careful when your bank changes your home loan rate
.....A simple online search on home loan complaints will throw various cases where banks have goofed up with customer’s home loan agreement. It is thus wise to figure out what can go wrong in advance, so that you can be cautious and avoid having to face an unpleasant situation...........
Public sector banks will score this festive season
Has the recent Reserve Bank of India dictate asking banks to stop zero per cent equated monthly instalment (EMI) schemes, as well as the rising prices of electronic gadgets, spoilt your Diwali shopping plans? If so, you may still have a chance of buying the iPhone 5 or the LED TV you have been eyeing!...........
Wednesday, October 9, 2013
Nachiket Mor : Return of the Finance Prodigy
..........Nachiket Mor, the man who ran the treasury,
corporate funding, and learnt how a retail customer behaves from his perch at
ICICI Bank, will wear the hat of a jury in two key panels constituted by
Raghuram Rajan, the man who told a partying Wall Street that the music had
stopped long ago. “He straddles many worlds,” says Rajan. “We could not pick up
a better and more capable person who has seen all aspects — the theoretical as
well as the practical — to give us a sense of the future of what we should be
doing.” ..........
Concern over impending takeover of DICGC
All India Reserve Bank Employees Association writes to Governor............
Also read this........
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