......In a speech at a recent event at Cape Town, South Africa, Reserve Bank of India's Deputy Governor H R Khan had highlighted the importance of building foreign exchange reserves to deal with sudden outflows. "Intervention in the face of the sharp depreciation is a difficult choice for several reasons, including loss of reserves, particularly in a country like India where the external liabilities far exceed the official reserves," Khan said............
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.
Tuesday, April 22, 2014
High Rates Will Tame Prices, RBI to Tell Next Govt
The Reserve Bank of India (RBI) will explain to the new government the need to keep inflation under control and why keeping interest rates relatively high may be unavoidable to achieve that, government officials familiar with RBI’s thinking said. Further, RBI, which is in the process of formulating new guidelines for bank licences, was unlikely to allow corporate houses to set up new banks in the near future, the officials said...........
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Bank licence: Long wait for corporates likely
..........Though the idea of granting bank licences to corporate groups has not been ruled out, a cautious approach will continue to influence the decision making process in this area. The new government that is to be formed next month will also have to be consulted by the banking regulator before a final view on new bank licences for the corporate sector is taken...........
Finmin Favours Merger of Smaller PSU Banks
.......Mergers in state-run banks have been opposed on the grounds that there are cultural and technological differences in their functioning. In the past, the mergers have not only been opposed by the unions but also by chairmen and executive directors as it will also lead to lesser number of posts available. “The primary concern is the branding issue. There's fierce customer loyalty among smaller banks and if you merge them with a larger bank, then you have to look at what happens to the brand and how customers respond,“.............
'India not yet ready for differentiated banks'
............"The differential banking activity licences issued to RRBs and local area banks (LABs) could achieve limited success which prompted authorities to call for large size banks to go for rapid financial inclusion in a time bound manner." It would be very difficult for a differentiated bank to survive by selling only one or two products..........
RBI wary, not against, corp-backed banks: Sources
.......the big preoccupation of the RBI these days is: how to restructure the banking space? It is not at all looking at junking the Mor committee report. In fact, the Nachiket Mor report is the basis of their discussion. The RBI wants to look at various kinds of banks. All banks need not be universal banks,..............
Banking on the wife
...........The bank has been receiving several calls from men asking for loans for their wives and when the bank staff asks them what they will do with the money, the stock answer is, "She will do something, we have not decided yet. You give the loan first.".........
Foreign stake: HDFC Bank says law can’t apply retrospectively
Private sector lender HDFC Bank Ltd. on Monday said parent Housing Development Finance Corp. Ltd. (HDFC), which is majority-owned by foreign institutional investors (FIIs), shouldn’t be considered as foreign because changes in the law defining overseas stake in a firm cannot apply retrospectively. The remarks come in the backdrop of Reserve Bank of India (RBI) banning foreign investors from picking up more shares in HDFC Bank.............
Can't allow non-compete clause in pharma FDI: RBI
........."The extant FDI policy for pharmaceutical sector has since been reviewed and it has now been decided with immediate effect that the existing policy would continue with the condition that 'non-compete' clause would not be allowed except in special circumstances with the approval of the Foreign Investment Promotion Board (FIPB) of the Government of India," ...........
The safety pin
........The additional security measure is a part of global standards for inter-operation of integrated circuit cards at the point-of-sale terminals for authenticating credit card transactions. The microchip stores the information of the card holder and the PIN comes in an encrypted form known only to the card holder.............
HDFC Bank sets Guinness World Record
HDFC Bank has created a new Guiness World Record. The Annual Blood Donation Drive organised by the bank in December 2013 has been recognised as the largest effort of its kind across the globe. "The largest blood donation (multiple venues) involved 61,902 participants and was achieved by HDFC Bank Ltd. (India), with 1,115 blood donation camps held across 709 locations in India on December 6, 2013," states the official citation from Guiness World Record............
Monday, April 21, 2014
Dr N A Mujumdar: In Memoriam : S.S.Tarapore
...........Governors M Narasimham, I G Patel and Manmohan Singh, all had great respect for his views. Dr Patel and Dr Manmohan Singh would, on occasions, refrain from taking certain measures in deference to the views of Dr Mujumdar, whom they called the ‘ High Priest of Policy.’ The 1981- 82 liquidity bind Commentators today freely talk of a liquidity crunch, the moment there is the slightest measure of monetary tightening. The 1981- 82 liquidity bind was unprecedented. Policy interest rates were raised sharply and stringent liquidity stipulations were prescribed. The money market was tight, rediscounting of bills by the RBI was discontinued and discretionary refinance was severely curtailed. In internal discussions, Dr Mujumdar argued that the monetary tightening could be milder. But once the policy was decided.......
Bandhan to start hiring in three months
....Ghosh, however, said it had not yet been finalised how many people would be needed at the senior management level. “It will depend on how many of our existing employees can be upgraded to the senior level for banking operations,” he pointed out. With employee strength of about 13,000, Bandhan is at present gearing up for capacity building down the line through intensive training. It already has eight training centres across the country.......
The NIF option - Dr.Subir Gokarn
.........From the perspective of the NIF, though, the strategic dimension provides a foundation for the other two aspects. Strategy could be internalised into the structure, thus making it into a National Infrastructure Commission, for instance. Or it could be an external mandate to a more narrowly focused mechanism, combining finance and governance.....
Call for 5-day week for state banks resurfaces
......... "A five-day week is already available in the international banking system. It is also available here - the Reserve Bank of India (RBI), central and state governments, and companies in the public sector work for (only) five days a week. We have been saying it should be introduced in the banking industry. The government had rejected the proposal but we have been pursuing it through UFBU,"...........
Mor panel's financial inclusion report may be put on back burner
.......The committee's suggestion that existing commercial banks be allowed to hold payment banks as subsidiaries is also seen as unviable by RBI and the finance ministry. The ministry believes this might not serve the purpose of financial inclusion, as NBFCs charge very high interest rates and might continue to do so even after being converted into banks. Besides, the ministry also feels.........
Understanding PM Manmohan Singh, a wary leader
......In the run up to this, Singh had faced severe resistance from the finance ministry headed by Pranab Mukherjee to suggestions that Subbarao be given a fresh term. Although rebuffed in the early rounds, Singh held on only to finally approve unilaterally a second term for the governor of India's central bank. A rare case in India's history when the appointment was announced from the PMO and not the finance ministry as it happened later when Raghuram Rajan was chosen to head the RBI............
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Prayer Meeting for Dr.Mujumdar
The location of the Prayer Meeting for Dr.Mujumdar was the Admar Mutt in Andheri. It was a very solemn occasion. We had an audience of 100 persons.The family had arranged for a pleasing,smiling photograph of Dr.Mujumdar, duly garlanded. The meeting began at 5 p.m with prayers by the younger brother of Dr.Mujumdar--who sang lustily Ganesh Vandana and several other moving religious verses. He spoke briefly. This was followed by two cute speeches by the two granddaughters of Dr.Mujumdar--which revealed what a loving Grandpa he was.He induced in them a love for books, instilled a sense of discipline. The kids used to go for morning walks with the Grandpa as the walk would end with fresh tender coconut water !.
Since Sudesh, the son could not attend his message was read out by his sister Mamata--a touching tribute. Mamata spoke after this but could barely control herself. She made a deeply moving speech. Then we had tributes from Tarapore,Philip Thomas, Vasudevan,Shetty, one lady and myself. Impressive accounts were given of the intellectual attainments and outstanding personal qualities of Dr.Mujumdar. I also spoke and my speech is given below. Finally Shri Tarapore released the latest book of Dr.Mujumdar and gave the first copy to Smt.Mujumdar. She spoke a few words praying to the God that in her future janmas too she should have Dr.Mujumdar as her husband. The meeting concluded at 7 p.m.
- P.P.Ramachandran
PPR's tribute to "Bhishma Pitamaha " of DEAP
It is with considerable trepidation that I stand before you to pay my humble Tribute to the "Bhishma Pitamaha " of DEAP. We have gathered in such large numbers to mourn the sad demise on April 6th of Dr.N.A.Mujumdar. He was 84 years old. He served in R B I for over three and a half decades . He was a distinguished economist whose Ph D thesis from Mumbai University was highly acclaimed and published as a book titled: Some Problems of Underemployment. He has wide interests in rural issues , monetary and fiscal policies and international issues. He taught at Mumbai University and had the distinction of being awarded the prestigious Nuffield Fellowship at Oxford. On his return to India, he joined the Reserve Bank of India in 1960 as Research Officer, and retired as Principal Adviser, Department of Economic Analysis and Policy in 1988. He also headed the Monetary Policy Unit--the Brains Trust of the RBI. His services were sought by the International Monetary Fund for secondment to the central banks of five different countries—Zambia, Mauritius, Tanzania, Belize and Cambodia. No single person has had assignments to such a large number of countries. That was Shri.Mujumdar.
Dr.Mujumdar was an authority on Agricultural Economics and was the Editor of the Indian Journal of Agricultural Economics and the Honorary Professor at the Society for Development Studies. He is author of a number of books including two volumes on Indian Agriculture. His last book, was " India’s New Development Agenda."--a book bursting with radical ideas and presenting an incisive analysis of our problems.
He belonged to an elite group of economists,like Shri.A.G.Chandavarkar, Deena Khatkhate, Dr.K.S.Krishnaswamy, M.Narasimhan, S.S.Tarapore,etc who wrote with authority seminal articles published in the legendary “ Economic and Political Weekly ".
One thing common to Dr.Mujumdar, S.S.Tarapore, A.Vasudevan, S.L.Shetty and myself is that all of us have the same publishers—Academic Foundation. I got a call from Shri.Rituraj Kapila, M .D of the Foundation that Dr.Mujumdar’s latest book was in the process of binding. Unfortunately he did not live to see it released. Dr.Mujumdar had a dialogue on his new book with Dr.Uma Kapila ,mother of Rituraj, only two days before his death.The posthumous book is “Reinventing Development Economics: Explorations from the Indian Experiment”. Rituraj has sent me a copy for review.The book is an attempt at exploring the new aspects of development philosophy. Divided into six broad sections, it addresses the issues of: growth and development, monetary policy, banking policy, fiscal policy, food security and global environment, with reference to the Indian economy. The underlying main theme of all the articles in the volume is promoting growth which is all-round and inclusive, equitable and above all growth which ultimately leads to the emergence of value-based compassionate society.
Dr.Mujumdar’s Philosophy of Life is available in this new book. “One of the ancient scriptures of India, Brahadaranyaka Upanishad enjoins that our life must be guided by the following three “Da -s”. Da-myata, that is control yourself; Da-tta that is give to others; and Da-yadhwam, that is be compassionate. Thus we must practice self-control, charity, and be compassionate. The Bhagawad Gita enjoins us to treat others as you treat yourself . What is good for you is good for others; what is bad for you is bad for others. Learn to rejoice in doing good to all creatures. Inculcating these qualities among individuals will go a long way towards eliminating society’s sicknesses like corruption, improving the quality of life and in general evolving a caring and compassionate society.”
Our sincere condolences to the family. Their grief is shared by Dr.Mujumdar's wide circle of colleagues, friends and students. We pray that his soul rests in peace.
- P.P.Ramachandran
'Vested interest' in 'Public interest'
My View on "PRR invokes RTI in 'public interest'":
There is no logic or rationale for linking pension revision-an issue which has been remaining undecided for decades- and regular wage revision. Having got messed up, let us have a look at both the issues.
Pension revision:
RBI has a funded pension scheme. RBI Pension Regulations when introduced, it was accompanied by an assurance about periodic revision vide RBI circular of March 13, 1992. Even if GOI wants to bring about any change in periodicity of revision of RBI Pension, it is appropriate to allow the present revision(The 1997 revision though under implementation is according to GOI still in dispute) which is overdue even if the periodicity is 10 years.
Wage revision:
Historically, RBI wage revision follows wage revision in banking industry. Current negotiation between IBA and bank unions has not reached any finality. In the present scenario, various components of remuneration package will have to be revised at different intervals. If periodicity of revision of basic pay is to be 10 years instead of the present 5 years, the rise will have to be 30 to 40 percent against the present offer of 10 to 15 per cent. In any case all these should form part of the negotiation of the next wage settlement to be made effective from November 1, 2012 as the earlier settlement expired on October 31, 2012.
Why we are discussing this:
Because, some vested interests in the bureaucracy have successfully confused the thought process of decision-makers. I believe, Dr Raghuram Rajan is capable of independent thinking.
- M.G.Warrier
Disadvantage of having stubborn 'specialists'
My View on "Payment banks: RBI governor, deputy differ":
This is one disadvantage of having stubborn 'specialists' at the top of any institution. The Indian financial system has space for several types of institutions to serve different types of needs. This recognition was there, till, perhaps, the beginning of imported reforms circa 1991. The multi-agency system comprising cooperatives, banks in cooperative, private and public sectors and even the traditional money lender besides chit funds and other players which co-existed then were serving divergent needs of urban and rural clientele at that point of time. With reforms the role expectations changed and the focus shifted to strengthening and supporting private sector banks. Private sector banks were interested in the ‘creamy layer’ of the business and that explains their share remaining low in the total banking business. Right approach would be to re-invent the multi-agency system allowing institutions of various categories to grow and function, maintaining the overall health of the financial system. Post Offices and ‘payment banks’ should be allowed to play their role with appropriate regulatory and financial support where necessary. Each unit of any system should not be expected to be independently viable.
- M.G.Warrier
Raghuram Rajan’s tandava spells death for economy
......When Subbarao was RBI Governor, and followed Yaga Reddy's policy of seeking to emulate Jawaharlal Nehru in destroying domestic industry in India, then Finance Minister Pranab Mukherjee sought to knock some sense into the Central banker. However, because of backing from Prime Minister Manmohan Singh, who has been as dismissive of the travails of domestic industry as he is solicitous of foreign commercial interests, Subbarao refused Pranab Babu's request. Raghuram Rajan too has the backing of the individual who chose him for his current job, Manmohan Singh, which is why he is on his present destructive course. For any rational mind, growth and employment are as important as inflation targeting, which is why it is inexplicable why three successive RBI Governors have focused only on inflation, that too by........
Postal bank test awaits new govt
The high profile spat between the Reserve Bank of India and the finance ministry over converting India’s loss-making 1.54 lakh post offices under India Post into a bank is likely to be one of the challenging issues that the next government will have to handle......
New bank licences: Why RBI chose only two banks
.........Former deputy governor Anand Sinha once said, “We are painfully aware of the pitfalls (of industrial houses owning banks), but we will make sure that regulations are not subverted,” and he stuck to his words. The regulator’s reluctance to give licences to corporations is well-known but the way it has managed to stick to its stance despite agreeing to open the doors to companies under pressure from the government is remarkable. The credit goes to former RBI governor D. Subbarao as well as current one,Raghuram Rajan—.......
The challenge: a bank account for everyone
.........Financial inclusion is certainly not a new dispensation that Indian policymakers are craving. The nationalisation of banks in 1969 and the thrust on branch building that followed were attempts at including the financially excluded. Even in the previous round of bank licensing (in 2003-04) new players were directed to open branches in rural and semi-urban geographies.........
Indian Banks Arming Themselves To Fight the Rise in Cyber Crime
..........Addressing the annual conference ‘ITS Enabling The Digital World’ in Pune recently, G Gopalakrishna, Executive Director, Reserve Bank of India (RBI) pointed out that banks are not doing enough to create awareness amongst customers. In an age of EMV pins and Aadhaar (biometric validation), a lot is at stake. He urged banks to form risk management committees on the board levels in order to identify and specialise in tackling possible frauds.............
आईसीआईसीआई बैंक शाखाओं में ही पकड़ गए थे जाली नोट
......आरबीआई की गाइड लाइन के मुताबिक नकली करेंसी पाए जाने पर उसी दिन आरबीआई को सूचना देनी होती है और चौबीस घंटे में संबंधित थाना में एफआईआर दर्ज करानी होती है। बैंक ने इस मामले में घोर लापरवाही बरती। शाखाओं में नकली नोट मिलते रहे और बैंक ने आरबीआई और पुलिस को सूचना तक नहीं दी। आईसीआईसीआई बैंक के अफसरों ने ऐसा क्यों किया? इसके पीछे कोई साजिश है या लापरवाही? पुलिस इन्हीं तथ्यों की पड़ताल कर रही है। ............
ICICI Bank scales up fully-automated Touch Banking branches to 100
............."We have observed that an individual spends around 10 hours a day at work. It leaves very little time to do routine works including day-to-day banking. So, we felt the need to offer our customers an option of banking at theirconvenience and at any time of the day," .......
Country’s largest lender goes stingy in Kashmir
Contrary to central bank instructions on credit-deposit ratio, country’s largest lender, State Bank of India, is stingy in lending in Jammu and Kashmir while it mops up heavy deposits from the state. As against RBI’s benchmark of minimum 40 per cent credit deposit ratio mandatory for banks in Jammu and Kashmir, SBI has just 27.7 per cent............
Saturday, April 19, 2014
Why not a ‘Post Bank of India’? Dr.S.S.Tarapore
............The new government should undertake a concerted drive to remove the conceptual cobwebs preventing the setting up of a Postal Bank, considering the great potential such a bank has for taking banking to the masses.
Payment banks aren't financially inclusive: Chakrabarty
Payment banks: RBI governor, deputy differ
Outgoing Reserve Bank of India deputy governor K C Chakrabarty has questioned the viability of payment banks and has said that they do not serve the purpose of financial inclusion. The statement comes at a time when RBI governor Raghuram Rajan has indicated that the central bank was in favour of issuing bank licences for limited purposes such as payments..................
Little big bank
..........“It would be a natural growth for NBFCs to turn into full-fledged banks. To make financial inclusion close to reality, one must experiment and there are a lot of aspects worth thinking about like — deposits, mobile banking, making use of existing technology, telecom, Aadhar and so on. It will be a narrow view if we look at financial inclusion only through bank accounts,” ........
Which way will the two new banks go?
The granting of banking licences to IDFC and Bandhan is interesting when looked at from the point of view of the character of the institutions that have been chosen by RBI. One is an MFI while the other is an infrastructure-finance company. If an NBFC was awarded this privilege, then the transition would have been relatively seamless. But once .........
RBI relaxes norms for its ED selection
With three executive directors' post will have to filled up at the Reserve Bank of India, the central bank has decided to relax the norms to accommodate more candidates. The residual service period criteria have been reduced to 2 years from 3 years..............
PRR invokes RTI in 'public interest'
April 16, 2014
The Central Public Information Officer,
Reserve Bank of India
Central Office
Mumbai
(Through RBI, Thiruvananthapuram)
Dear Sir,
Right to Information Act, 2005
According to a recent circular issued by the RBI Officers’ Association, the Bank is reported to have conveyed to it that the Government has given its(in principle ) nod for the Bank’s proposal for revision of pension to its pensioners provided certain conditions put forth by the former are agreed to. Almost all the conditions relate to the serving personnel. The Government is understood to have added that “such a course of action would be most appropriate and desirable in public interest”. (emphasis added ).
The present development has demolished conclusively the mythical conviction of the Bank’s Top Management which is on record having asserted, unequivocally, that the issue being a “simple” one is capable of early resolution, as “ the Government is not against updation, but only against illegal updation” -- yet another ill founded view of the Government.
The matter calls for special attention, also in view of the following:-
(1) The Government had, hitherto, taken the stand in different fora that it had not issued to the Bank any statutorily binding order. The invocation of the concept of “public interest” indicates a distinct deviation in its perceptions which has wider ramifications viewed in the context of the provision of section 7 of the Reserve Bank of India Act.
b) The several documents already accessed under the RTI Act do not reveal a single instance where the Government had invoked the concept of “public interest”. It is not known whether this was ever projected or attempted to be projected during any of its interactions with the Bank on the issue.
c) ‘Public interest’ in so far as it relates to “updation” of pension can only be in making improvements therein and certainly not in delaying or denying them by correlating the issue with wholly unrelated issues such as compensation package to the existing personnel.
d) On the whole, the attempt at invocation of the concept of “public interest” in this issue which had been remaining unresolved for an unduly long period of almost a decade appears to be preposterous, misconceived and, perhaps, motivated.
2) The Bank having conveyed, with no signs of reservation, the Government’s stand, portrays itself as being tacitly in agreement with the same including the concept of “public interest”.
3) In the light of the foregoing. I seek under section 6 of the Right to Information Act the following.
i) Copy of the in-house note/opinion based on which the Bank has found it appropriate to go with the Government’s stand involving the concept of ‘public interest’ in the issue pertaining to revision of pension of a numerically insignificant section of pensioners juxtaposed with the issue concerning wage structure etc of a relatively large number of serving personnel.
ii) Copies of records (e.g. notes, minutes, etc.), if any, or extracts thereof evidencing the Government’s stand invoking the concept of ‘public interest’ in relation to pension updation (This can, for the sake of convenience, pertain to the period from the close of 2011 when a formal request for clearance was sought from the Government).
4 The prescribed fee of Rs.10/- is enclosed.
Yours faithfully.
P. R. R. NAYAR , 4D, Wind brook Place, Vellayambalam, Trivandrum - 10, Tel: 2722602
Forwarded by Shri L.R.Parab
Forwarded by Shri L.R.Parab
OROP@2007 - Loud but logical : R.G.Nakhate
......A fundamental question does, however, crop up why pension updation from
01-11-2012, why not pension updation from 01-11-2007, 10 years after 01-11-1997
as the best ever pension accrued to GOI pensioners was from 01-01-1996 as
per recommendation of 5th CPC. This question also deserves some suitable
answer. May be I am thinking loud. But, surely all leaders would opt for
updation from 01-11-2007. The leaders too have been all along pleading for
pension updation retrospectively from 01-11-2002. Yes, if one rank one pension/
same rank same pension is granted in RBI from 01-11-2007?.......
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Bharatiya Mahila Bank ties up with CavinKare's Trend In Vogue
........CK Ranganathan, CMD, CavinKare, who said that the company is happy to associate with BMB in providing collateral free loans to prospective franchises across the country, especially women, said that the company would take the responsibility of finding right place for salon for its franchisees, negotiate with the land owner for rent, would bring in cost efficient service providers and suppliers, which would bring down the cost for the franchisee..............
A star abroad, RBI boss riles bond traders at home
Bernanke's message
..........The sum and substance of Bernanke's message is that the economy needs to be run with appropriate fiscal and monetary measures. Expecting the stronger economies and their central banks to adjust for weaker economies is neither desirable nor feasible.
RTI Judgement Series: Provide information on MTM position of banks
......"While banks may have given information to RBI in confidence or in trust, there does not appear to be any duty cast upon RBI to act in their benefit. RBI being a regulator of the banking sector obtains and maintains such information in regulatory or supervisory capacity. Therefore, there is no element of choice as such available to banks. There does not appear to be a creation of any fiduciary relationship between RBI and the banks."..........
Innovation in payment banking
..........The basic proposition as laid out by the governor using banks and non-banks for payments and remittances is crucial for the way forward for inclusion and follows well established international practices. For the non-banks currently in the payments space, operationalizing the governor’s statement under the current framework would mean:..............
Big Loan Defaulters to Face RBI Audit
.........The Board of Financial Supervision (BFS), chaired by RBI governor Raghuram Rajan, has, in fact, cleared a proposal that the central bank will conduct an independent forensic audit of corporates declared fraudulent by banks. Independent audits, however, will be restricted to corporates that have borrowed more than Rs 1,000 crore. The central bank will first try to get to the bottom of what went wrong........
Finmin widens monitoring of NPAs at public sector banks to top 50 accounts
...........The seriousness of the NPA problem was also captured by ratings agency Fitch. In a report released on Thursday, Fitch Ratings expressed concerns over stressed assets in India compared to other Asian emerging markets. Fitch said it “expects Indian banks' asset quality to weaken further, with stressed assets (NPAs and restructured loans) to rise from 10% (at mid-2013) to around 15% during FY15 (by March 2015).”.............
Turning of the credit cycle
...........The Reserve Bank of India (RBI) and the finance minister have fired their salvos by emphasising the importance of recognizing permanently impaired assets expeditiously and clearly differentiating them from assets which are temporarily challenged. This stance is very healthy for the banking system and the economy in the longer term as such assets lock up capital that can be put to much better use. It will also significantly free up lenders’ and bond investors’ bandwidth. Also welcome is RBI stressing on promoters making their share of sacrifice .........
NBFCs approach RBI, govt over new companies Act
Non-banking finance companies (NBFCs) have approached the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs to amend regulations under the new companies Act. These companies fear the stiff reserve requirements and norms on investment in government bonds will hit them hard..........
Amicus Curiae seeks audit of temple wealth
.......The audit, he said, should be undertaken by Mr. Rai and a team of auditors to be appointed by him. He should be assisted by a Deputy Governor of the Reserve Bank of India (RBI) who will be nominated by the RBI Governor in consultation with the Amicus Curiae. The audit should cover management of the temple, the Sree Padmanabha Swamy Temple Trust and allied institutions over the past 25 years. Mr. Rai should be empowered to take into custody and seal all documents of the trust properties forthwith, Mr. Subramaniam has suggested.............
Permit farmers to open bank a/c with Aadhar: Bombay HC
.....However, the petitioners argued that several farmers who do not have bank accounts are still in the lurch. It was then, that the court suggested that farmers should be allowed to open bank accounts easily and not be made to submit a range of documents to avail of government relief, during times of calamity. "Farmers should be allowed to open bank accounts with only Aadhar cards as identification. The whole point of issuing Aadhar cards was that no other document would be required," the court said......
Friday, April 18, 2014
Don't let penalties stop you from pre-paying loans
......."Enquire about the exact amount of outstanding balance for the actual date of closure. For example, if you enquire today and go for a closure after three days, the bank may have not factored these three days' interest. So, even after you pay, this amount could be treated as 'balance due', though you believe you have closed the loan,"
Thursday, April 17, 2014
RBI implements Bhaskar panel recommendations
............“To overcome the possible conflicts of interest in the benchmark setting process arising out of the current governance structure of the FIMMDA and FEDAI, an independent body, either separately or jointly, may be formed by FIMMDA and FEDAI for administration of the benchmarks,” ...........
There goes the rate cut
...............It remains unclear why the government doesn’t dump FCI’s bulging stocks in the market, given how cereal inflation is a stubborn 9-10%. Also, sooner rather than later, the government needs to address the issue of whether it is accepting the Urjit Patel committee’s recommendations—as long as RBI remains wedded to Patel’s 8% CPI inflation target by January 2015 and 6% by January 2016, it is not going to cut interest rates.
Mr Bernanke wants RBI to enjoy Autonomy - Dr.T.V.Gopalakrishnan's views
The RBI's autonomy is only on paper and it is only an institution physically separated from the Central Government. All its functions are carried out in terms of the RBI Act of 1934 but with the tacit approval of the Government. As long as Government nominees are there on the RBI Board and Government expects RBI to get a clearance from the Ministry of Finance before announcement of any policy,there cannot be any autonomy for RBI. Further...........
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Improve data collection
..............Former RBI Governor Subbarao had repeatedly mentioned the poor quality of data. It is unfortunate that it has not captured the attention it deserved of the powers that be. As a result, economic decisions and policy measures taken on their basis are topsy-turvy, reflecting poorly on the economic indicators and welfare of the people.........
Monetary sovereignty
.....What else should countries vulnerable to such shocks do? Dr Rajan's emphasis on more accessible multilateral financial safety nets is certainly acceptable in theory, but IMF governance reforms - which are necessary for this to happen - are effectively stuck; no country can afford to rely on this framework to the total exclusion of self-insurance. In effect,.............
The right inflation target
.........The RBI needs to seriously reconsider the idea of inflation targeting based on the CPI. The reason for it is food, which has an almost 50 per cent weight in the index. The inflation rates derived from this index would, hence, mainly reflect supply-side factors not amenable to control using interest rate tools. Those are more effective against.............
Why Modi & Raghuram Rajan complement & not contradict each other
.............Is not Rajan dreaming the same, along with his friend and former banker Nachiket Mor who suggested ways to achieve financial inclusion in a 247-page report? The target of basic financial services for all adults is now January 2016, why would Modi throw out someone who is on the same wavelength?.................
Why RBI’s Raghuram Rajan should stop complaining about Fed policies
.............Rajan is right in airing his views on unconventional monetary policies as it does open up debate on the efficacies and side effects of such policies. However, asking the Fed or ECB to weigh the consequences of their policies on other economies is like asking the Indian government to weigh its subsidy policy on the economy............
Mirror,Mirror on The Mind
SC slams Sebi, RBI for Saradha scam
The Supreme Court on Wednesday observed that the Saradha scam may not have occurred had monitoring agencies like the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) maintained adequate vigil. The bench of Justice T S Thakur and Justice C Nagappan was hearing a petition by Saradha depositors who prayed for a CBI inquiry...........
New cities drive ING Vysya’s mobile banking business
......An online survey conducted in association with ING International Survey, London showed that 43 per cent of the respondents own a smart phone. “Another stronger reason for us to introduce the solution is that 50 per cent of those in the age group of 18-34 years use their mobiles more than desktops to access their bank accounts,” Morgan said.......
NBFCs turn to retail deposits to raise capital
........The Reserve Bank of India made it expensive for banks to raise money from the central bank after it reduced the overnight borrowing limit and raised the longer-term borrowing (term repos) limits in the money policy unveiled on April 1. Term repos are more expensive than overnight borrowing...........
CAFRAL RBI Recruitment 2014 Research Associates
Centre for Advanced Financial Research and Learning (CAFRAL) promoted by Reserve Bank of India (RBI) invites applications for the post of Research Associates on Contract Basis (For Two Years). Interested candidates......
How to improve customer service at ATM kiosks?
........Apart from the problems enumerated in the aforesaid survey, there are a wide variety of other problems encountered by the public like swallowing of debit cards by the machines, not disbursing the full amount withdrawn and fraudulent withdrawals even after the loss of the ATM card is reported to the issuing bank. In fact, RBI gives instructions to banks at various times, but there is no single authority to monitor compliance of these instructions. A case in point is as under:......
And now, the ATMs strike back, the beetle style
........Attackers could soon be sprayed by a hot foam created by a cocktail of chemicals that come together when ATM surfaces covered with several layers of special plastic film are violently tampered with — ingeniously inspired by the natural weapon used by bombardier beetles by Swiss researchers. This certainly seems on the money. More so than most current defence mechanisms, in fact, which need electricity in order to work.
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