India’s prediction for a below-average monsoon this year is fuelling concern that inflation will quicken, limiting room for Reserve Bank of India (RBI) governor Raghuram Rajan to cut interest rates to revive the economy............
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.
Monday, May 12, 2014
Open letter to the next PM: Banking sector faces a challenging task
.......Financial Sector Legislative Reforms Commission calls for a unified regulator for the financial services sector which will regulate insurance, capital market, pension funds and commodities derivatives market (the RBI should continue to exist outside the unified regulator although with modified functions of setting monetary policy, regulating banks and payment systems). Although a move to a single regulator may be premature in India's context, the new government within the present framework can improve coordination and clearly delineate responsibilities among existing regulatory agencies..............
Governor’s assurance to APCOB
Governor E.S.L. Narasimhan on Friday agreed to issue a letter of recommendation to NABARD ( National Bank for Agriculture and Rural Development) and the Reserve Bank of India to provide uninterrupted re-finance support to APCOB (AP Cooperative Bank Ltd) during the interregnum period of the State’s bifurcation process........
Kashmir business community flays nationalized banks for conservative lending
..Chairman, Kashmir Economic Alliance, Muhammad Yaseen Khan blamed the negligent approach of state government and RBI which according to him has given a “free hand to public sector banks in Kashmir to ensure flight of capital to outside places.” “It is a grave issue which needs to be dealt with strictly. Business community must wake up as these banks are taking the local people for a ride, by accumulating huge deposits in the state but adopting measly approach while lending,” Khan said. He adds that banks are a business houses which work by the principle of give and take. “But here banks like SBI and PNB are just taking the deposits of business community and when any young entrepreneurs or businessman approaches them for advances, they show rigid approach thus discouraging new start-ups,”.....
SC questions regulators' role in Saradha scam
........The Court order, which came on Friday, said: "Investigation conducted so far puts a question mark on the role of regulatory authorities like Sebi, Registrar of Companies and RBI, within whose respective jurisdictions and areas of operations the scam not only took birth but flourished unhindered."............
CBI to form special investigation team to probe Saradha scam
.....The CBI will form a Special Investigation Team (SIT) to probe the multi-crore Saradha chit fund scam in which investors in West Bengal, Odisha and Assam were allegedly duped of Rs 10,000 crore. The SIT will also examine the role of market regulators like SEBI and the RBI......
Regulators take stock of risks posed by subsidiaries of HDFC Group, ICICI Group and Kotak Group
.....The inter-regulatory forum (IRF) - which has representation from the banking sector regulator Reserve Bank of India (RBI), securities market regulator Sebi as well as regulators of insurance and pension sectors - is in dialogue with all stakeholders to come up with an acceptable assessment of risk being posed by the subsidiaries on the parent groups,
Friday, May 9, 2014
Stop gossiping about RBI Governor's future post 16th May verdict - M.G.Warrier
........Mainstream media, during the last few weeks, starving for controversies, has been generous in dishing out gossips about the continuance of Dr Raghuram Rajan as governor of Reserve Bank of India (RBI), if the dramatis personnae in New Delhi change post-16 May 2014. This writer is not interested in joining issues with those who argue the case on either side mixing politics and economics(or banking?). Still, as one who had defended in the media, the case for an extension of term by one year for Dr Rajan’s predecessor during the first half of 2013, some observations on the subject from this writer may be in order...............
Replacing RBI governor Raghuram Rajan may lead to a sovereign rating downgrade: HDFC Chairman Deepak Parekh
........."The government, whichever it is, if he (finance minister) changes the governor, he will get a bad name. There is a possibility of a downgrade if you change the governor... that you are politicising the position,"
RBI to issue guidelines for 'on-tap' banking licences in FY15: R Gandhi
The Reserve Bank of India is likely to issue guidelines for issuance of "on-tap" bank licences in 2014/15, RBI Deputy R Gandhi said on Thursday, a month after the central bank granted two preliminary licences to set up new banks..........
RBI: Losing licence bid no bar for stake buy in a bank
An entity's failed attempt at getting a bank licence will not have any bearing on its move to pick up a large share- holding in an existing bank, newly- appointed RBI Deputy Governor R Gandhi said. His comments come against the backdrop of reports that L& T Finance is eyeing a significant stake in private sector lender es Bank. " They might be rejected for bank licence, but as a share- holder if they are going to come, we will examine that. It won't be a bar just because its ( banking) licence has been rejected," .......
Pension updation and opening of fresh option - RBIOA
Pl find attached is the exact status of what transpired between the Bank and the
Associations on the issue of Pension...........
Closure of public counters in RBI
.......Unfortunately, in total disregard to that, Bank's offices, under promptings from the Central Office, are each and every day denying entry and refusing service to customers..........
Beware of Lottery spam scam on RBI's name
.......The Reserve Bank of India (RBI) Governor, Dr Raghuram Rajan has already cautioned people about lottery or beneficiary of fund kinkd of emails. This time, it is a 'Lottery Scheme ' email sent using his name in the so-called meeting of 'United Kingdom Lottery Promotion Council' with a 'Senate Tax Committee on Finance', except that both does not exists. Simlar emails used to be sent out in the name of former RBI governor Dr D Subbarao too..........
RBI conducts financial literacy programme for students
With the objective to create banking awareness among the students, the Reserve Bank of India (RBI) Rural Planning and Credit Department Guwahati conducted a one day literacy programme for students today at Bundrock Chapel Hall, Patkai Christian College .......
Obituary
I regret to Inform you that one of our ex colleague Mr. P.M.Hegde, retd. AGM from Bangalore office expired this morning 7.40 AM due to heart attack. Kindly pray for the departed soul.
- William Panakal
Prepayment penalty ban only for individual borrowers, says RBI
............The Reserve Bank of India (RBI) on Wednesday clarified that its directive regarding a ban on prepayment penalty on floating rate loans was applicable only for individual borrowers, indicating it wasn't for corporate clients. “It is advised that banks will not be permitted to charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect,” the banking regulator said on Wednesday.........
Pranab launches RuPay, India’s own card payment network
......The new payment network developed by the National Payments Corporation of India (NPCI), a not-for-profit company envisioned by the Reserve Bank of India (RBI) and created by the banking industry, covers all the automated teller machines (ATMs) and most of the retail and e-commerce platforms. RuPay is the coinage of two terms Rupee and Payment.........
Govt banks lure customers away from private lenders
The perception that customers prefer private lenders topublic sector banks (PSBs) for retail loans might not be prevalent any more, if a recent survey by Nielsen is to be believed...........
No external debt crisis, please
...........What could be worrying the RBI is the rush of money streaming into short term debt instruments — such as 91-day treasury bills issued by the government or commercial paper floated by companies. Such a deluge could be facilitated both by the interest rate differential between western markets and India, as well as the stronger rupee vis-Ã -vis the dollar........
Syndicate Bank moves to catch 'em young
.............“We have already started working on designing a new product for minors. This new guideline from the RBI will help us in achieving our goal of increasing our CASA levels which has dipped to 29.90 per cent in FY14. We will launch the product very soon,”...........
Parents Beware! Operating Bank A/c’s Now Child’s Play
Letting your minor daughter operate her savings bank account may be a great way to teach her about money matters, say financial experts. A day after the Reserve Bank of India (RBI) allowed children over 10 years to open and operate their bank accounts independently, experts feel that it could also make life easy for many parents, especially in big cities, where children get a tidy sum as monthly allowance and spend it both online and offline. .........
Read - ET
Read - ET
'Minor' Major step.........
My View on "RBI lets 10-year-olds sign cheques, do net-banking...":
The First Positive Step from RBI, in the real sense, to teach children practically about banking and financial literacy and promote financial inclusion and inclusive growth. A step to empower children and create a Responsible and Young India. Three years before, my minor daughters opened SB accounts in their individual names, with SBI, but SBI did not provide ATM Card or Cheque facilities. I hope, now they will provide.
- L M Ganesan, MOF, CAB, Pune
Savings accounts for minors to promote financial inclusion
............The central bank has said its latest step will promote financial inclusion and bring uniformity among banks in opening and operating minors' accounts. But should one worry about safety?.....
SBI to launch children's savings a/c in 3 months
...........“We do open accounts for children, but we have restrictions on overdrafts. This is because if there is overdraft, we won’t be able to realise it. However, there is no restriction on deposits. We are going to launch a special scheme for children in the next three months,” SBI Chairman Arundhati Bhattacharya told reporters.....
FinMin nixes India Post's plan to set up a bank
......As suggested by the Bimal Jalan-headed screening committee, the issue came up for discussion at a recent meeting of the finance ministry and RBI, a ministry official said. The ministry said India Post was not ready for a banking foray....
How mis-reporting by banks can hurt your credit rating
When a customer was refused home loan by a government bank due to a negative rating assigned by the Credit Information Bureau (India) Ltd (Cibil), little did he realise his callousness in ignoring a ‘free’ credit card he had never applied for nor used earned him a spot in the defaulter list. A good 30 days were spent in reversing the negative rating, but by then he had lost the opportunity of buying the apartment he and his family had set their eyes on............
RBI brings MSME stakeholders together
........Second of its kind held in the North East, ‘Town Hall meetings’ have been formulated by the RBI to bring all stakeholders of the MSME sector together to meet, listen to each other, understand problems and find solutions to them, explained Regional Director, RBI Guwahati, S.S. Barik in his keynote address. Nagaland has potential, he said, but the push needed for the industries/MSME sector to grow is missing. “That is why the RBI is emphasizing on MSME as it promotes distributive growth,” Barik informed..........
He Trumped Anil Ambani in India's Race to Change Banking
.........Bandhan slowly became India's largest microfinancier, focusing on the northeast and then expanding across the country. "I'm not an economist, I'm not a banker - I learn from my customers," he said. Mr Ghosh recruited poor people to run his branches, declaring only they "understood poverty" and could identify the needy. As Bandhan becomes a bank, Mr Ghosh said some staff will need training to deal with more sophisticated financial products. Just three-fifths of his employees reached the final grade in school.........
Wednesday, May 7, 2014
New Paradigms in RBI Thinking
Some things are said, some are implied. The RBI may not have hiked the repo rate in April, but there is now a clear and implicit shift in RBI thinking. Though such a shift is based on sound rationale, it does have the wherewithal to change the interest rate structure more frequently.
What is this perceived change in RBI thinking?........
Read - ET
What is this perceived change in RBI thinking?........
Read - ET
Attitudinal change on M&As need of the hour for RBI
When Reserve Bank of India Deputy Governor KC Chakrabarty said the central bank should end 'regulation by discretion', the plain-speaking banker was not letting out a state secret. He was stating what was common knowledge, but something that is hardly discussed. The Reserve Bank of India, though, remains probably the only vital institution in the country without taint, and the need for attitudinal change to regulation — especially to takeovers and amalgamations of companies in the financial...........
RBI has scotched speculation in the currency market but dangers lurk
........ Contributing to the recent phase of rupee stability in the last couple of months were measures which the Reserve Bank of India (RBI) had taken, particularly in terms of weeding out unnecessary speculative demand for the US dollar, thereby creating a buffer. In addition, a good amount of foreign portfolio flows were coming into India. Of course, an underlining factor playing an important role in the currency market is the hope of a stable government coming to power. While in equity markets this desire is being reflected in movement of indices, with a majority of players being physically demonstrative about it, this is not the case with currency market stakeholders. They are........
India's growth rate will pick up soon: RBI Governor Rajan
........Rajan also reiterated his view on the growth rate being inextricably linked with curbing inflation. "I have always stressed that stimulating growth and controlling inflation are not opposed to each other. Inflation is what is standing in the way of India's growth," he added. Rajan was addressing student members of the Oxford Union Society (OUS) on his way to Switzerland,........
Do not feel sad for regulators
My View on "RBI's soft approach - A Chandramouliswaran":
RBI does have muscle power those officers who have inspected the group will bear a testimony to this. We must say hats off to Supreme Court judges who had courage to take action against the group chairman for failure to comply. The group had even taken the Honorable Supreme court for ride for two years. The group have the backing of political class as also legal support from top lawyers of the country. The group had also tried to browbeat judges, We are proud of judiciary. Please do not feel sad for regulators as they do not have powers to act beyond a limit. The officers of SEBI should be complimented for courage to confront the group.
- Ravi Sharma
Raghuram Rajan signed Rs 1000 banknotes to come up shortly
........"The RBI will shortly issue Rs 1000 denomination Banknotes incorporating rupee symbol on the obverse and reverse, with inset letter 'L' in both the numbering panels, in the Mahatma Gandhi Series-2005 bearing the signature of Raghuram G Rajan, Governor,".........
No penalty if minimum balance not kept in dormant bank account
......“It is advised that henceforth banks are not permitted to levy penal charges for non—maintenance of minimum balances in any inoperative account,” RBI said in a notification. Several banks, including the State Bank of India, do not levy any charge if the minimum balance is not maintained in an inoperative savings account............
Interest earned on tax refund is taxable
............The interest amount that is paid back is considered “income from other sources”. So, while filing returns for the financial year (FY) in which the refund was given, the interest will be taxable as per the tax slab rate of the person. Say, in the financial year ending March 2013, excess tax was paid and the refund was made in the financial year ending March 2014. While filing returns for FY14, the person will have pay tax on the interest income.............
RBI lets 10-year-olds sign cheques, do net-banking
.........IF a 10-year-old signs a bank cheque for you, don’t doubt his bonafides. The Reserve Bank of India broke new ground on Tuesday, allowing minors above 10 years to open and operate savings bank accounts and recurring bank deposits and save in bank fixed deposits independently, without requiring a guardian, which was the practice till now. Such minor bank account holders will be entitled to most of the facilities, including use of ATM, cheque book and internet banking..........
Aadhaar-linked cards put on hold
In a move that will bring relief to banks and credit card issuing companies, the Reserve Bank of India has put on hold an order requiring all future credit card swipe machines and ATMs to be capable of biometric authentication. The central bank has instead decided to launch a pilot project where issuers of prepaid cards are allowed cash withdrawals on the basis of biometric authentication. The move comes on the wake of banks complaining that implementing biometric authentication across all point of sales terminals (credit card swipe machines) was proving to be a challenge.........
Read - TOI
Read - TOI
Heading to an ATM in Mahabaleshwar? Read this first
...........Pune: Did you spend one of your last few weekends at Mahabaleshwar, and made a quick dash to any of the ATMs in the market area for some money? Then here is something you should know. Investigating three cyber thefts, in the area, it has been revealed that all three involved ATMs over the weekend. Further investigations indicate something very shocking - the police suspect that cloning/ skimming devices have been used in these ATMs. ..........
Inspired debate
My View on "Don't malign RBI":
It is true that no body from BJP has asked for the removal of Shri Raghuram Rajan. He is best GUV in living memory. This debate is an inspired one and actively encouraged by IAS lobby as this prestigious post has been bagged by someone who does not belong to their circle. At present I am in Sydney and I have seen reports that Reserve Bank of Australia is mandated to keep inflation level between 2 to 3% which at present is running at 2.9%. The Australian Government is raising resources by other means like newly introduced Debt tax but not by increasing fiscal deficit or public borrowing. we require such independence.
- Sitendra Kumar
Any Takers for Chidambaram’s ‘Heavy Lifting’?
.........So, when a young, good looking, and articulate RBI governor, who is also a reputed economist, gets all the kudos for a stable rupee and dip in inflation, Mr Chidambaram could not resist reminding the world, even from far away Kazakhstan, of all his efforts that went in. Besides taming current account deficit, the currency has been propped up by a large inflow of dollar deposits from NRIs who were offered generous returns. Bankers claim it was not Governor Rajan’s idea, but they who convinced him in allowing the special NRI scheme. Rajan, with his enviable standing, is still in his honeymoon period: he would be praised if things go right, but would escape the blame if things backfire. For instance, any other RBI governor would have been panned for keeping interest rates unchanged when inflation was high and then raising it when inflation had softened. But there will be...........
FM to review banks performance on May 14
............“Besides the routine performance review, the issue of recapitalisation of banks will also be discussed during the quarterly meeting,” said a finance ministry official. The meeting with bankers will be held a day after the Financial Stability Development Council, chaired by Chidambaram, meets on May 13. The FSDC is likely to discuss the economic situation in the backdrop of the ongoing polls............
BANKING BUSINESS
This refers to the article “Don’t expect much from new banks” (May 5). Though the issue of new licences by the RBI may add to the number of banks, it cannot meet the objectives of licensing of more banks, which is to add to the competition and improve financial inclusion. As it is, the geographical spread and concentration of banking is sufficient to make financial inclusion a reality and generate constructive competition. While the PSBs are weak with deteriorating financials, the cooperative banks and regional rural banks are too weak to make their presence felt adequately. They have not been able to fill the gaps in banking needs in their areas of jurisdiction. The private sector banks perhaps are more into businesses other than banking, and they seem to be moving without any proper direction and long-term objectives. It is time the Government and the RBI strengthen the existing set-up before experimenting with new licences.
- TV Gopalakrishnan, Bangalore
Fourfold jump in badloans in public sector banks in 5 years
........Since RBI or the Government is not publishing the list of loan defaulters, AIBEA today is publishing the list containing the names of top 400 defaulters of Public Sector Banks. AIBEA today demanded that Banking system must be subject to the auditing of Comptroller and Auditor General of India. Banks must actually recover bad debts instead of artificially reducing the figures in the books of accounts through Corporate Debt Restructuring, selling of Non Performing Assets to Asset Reconstruction Companies at discounted rates, conversion of debt to equity capital investment by Banks...........
RBI cancels registration of 5 TN-based NBFCs
......The RBI said following cancellation of registration certificate, the companies cannot transact the business of non-banking financial institution. The Reserve Bank can cancel the registration certificate of a non-banking financial company under the powers conferred under the Reserve Bank of India Act, 1934.
RBI restricts functioning of CKP Co-op Bank
...Further, the Mumbai-based bank cannot disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI Directions issued on April 30......
ICICI launches two special accounts for NRIs
........"We serve 1.5 million NRIs across spanning over 150 countries and process over 5 million NRI transactions annually. This experience has given us insights into the lifestyle and aspirations of NRIs and our products are designed to meet their needs,".....
Miracle turnaround?
United Bank of India (UBI) has scripted what has to be the most stunning turnaround in recent times; from losses of R1,238 crore in Q3FY14 and R489 crore in Q2FY14, the Kolkata-headquartered bank has reported a profit of R469 crore in Q4FY14. On the face of it, the recovery seems too good to be true. How, for instance, has the bank reduced its gross NPAs by R2,592 crore and upgraded R1,488 crore of NPAs to standard assets in the span of just three months? And if it was that simple to.......
Carrot & stick approach behind UBI's strong NPA recovery
.......The lender appears to have adopted a carrot and stick approach to recover the money it lent. It offered incentives on repayment of dues and agreed on compromised settlements, but also unsettled defaulters with legal notices and placing them in 'wilful defaulters' list.........
Yes Bank Seeks Sebi’s View on Madhu Kapur’s Promoter Status
.......Yes Bank is seeking opinion from the market regulator on whether it should retain Madhu Kapur among the ‘promoter category’ in the shareholder filings since she was not the founder, though the legal heir of the co-founder Ashok Kapur. The move may be part of the bank’s view that Kapur though a substantial shareholder does not inherit the rights provided to her late husband when the bank was founded, said a person familiar with the development. “To ensure compliance with law, the bank is in the process of seeking regulatory clarifications on the matter from the authorities concerned,’’ said a Yes Bank spokesman.........
Tuesday, May 6, 2014
Shooting in the dark
........How critical this revamp is was best brought out by then RBI Governor D Subbarao when he said that the advance estimates of GDP for FY10 were initially 6.8%; this was later changed to 7.7% in the revised estimates in May 2010 and finally to 9.1% in the February 2011—a monetary policy that looked appropriate given the initial GDP would have looked loose given the final GDP numbers. Sadly, some of the biggest problems have been with the IIP, which is most critical for RBI. .........
Financial inclusion : Not a cake walk tour!!
.......Though financial inclusion basically means providing financial services to the vast sections of the population not yet covered by the formal financial system in, yet in the broader sense it means providing access to a bank account backed by deposits insurance, access to affordable credit and the payments system. It is a fact that this aspect of promoting broader access to financial services, despite the emphasis placed on this score, received less attention till recently. ..................
Financial Inclusion in India: An Appraisal
.......RBI has adopted a bank-led model for achieving financial inclusion and removed all regulatory bottlenecks in achieving greater financial inclusion in the country. Further, for achieving the targeted goals, RBI has created a conducive regulatory environment and provided institutional support for banks in accelerating their financial inclusion efforts.........
MILOON SARVJAN THANE RBItes
A group of RBItes in Thane (retired as well as serving staff) has been formed by Sarvashri Devidas Manduskar, Suresh Raykar and Jayant Patil. (It may be mentioned that Sri Patil is a member of Group, exrbites, The group has been named MILOON SARVJAN THANE RBItes. The meaning of the Marathi title MILOON SARVJAN is "All Together". The Group collected life certificates of retired employees in Thane and submitted to the Pension Cell, BKC, Mumbai in November last year.
On the auspicious day of "AKSHAY TRUTIYAA" the Group published a PARICHAY PUSTIKAA (Directory) of all its members in Thane, which furnishes the names, dates of birth, address, email ids and telephone numbers etc. A function was arranged yesterday i.e. on 4 may 2014 at 10.00 AM to distribute the copies of the PARICHAY PUSTIKAA. The response was fair. Around 130 members out of 500 were present. The PARICHAY PUSTIKAA was released by Shri D.G.Kale, General Manager, Customer Services Department. During his speech, Sri Kale suggested many alternatives for the retirees to get rid of old age disabilities like dementia, etc. The members were served snacks and cold drink together with a copy of the PARICHAY PUSTIKAA. The function was a grand success.
- Anil Karve
MT - young and enthusiastic about life
My View on "End of glorious innings - DEAPly shocked":
I was touched to read the above ...but she was that kind of person...so happy when I took her a copy of mint milestones and we talked of the books she was reading and she said it was mostly Tamil and she showed some of her Tamil writing as well . A wonderful lady who was perpetually young and enthusiastic about life and loved her books and good conversation . Along with CSR VM Sundar Raj , DG Borkar, she used to come to CPC when Raman was Advisor -- so that is where I used to meet her quite often . Later we came in close touch when we got her to write the RBSC History ...and we spent hours discussing the cover ....We love you Meenakshi .
- Usha
Does RBI say Yes to this?
...........Recently, senior RBI officials had stated that the central bank rejected applications of several leading business houses for banking licenses because they did not meet the “fit and proper” criteria. Outgoing Deputy Governor KC Chakrabarty was quoted as saying that banking reforms were necessary, as “corporate governance needs to improve.” He had said, “What’s good for public sector banks must be good for private sector banks.” While it is for the central bank to assess if activities of Yes Bank’s promoters fall within its “fit and proper” yardstick, industrialists whose applications were turned down recently are unlikely to be amused. ................
RBI's soft approach - A Chandramouliswaran
............In my opinion, the recollection of the events shows the Reserve Bank of India (RBI) in poor light. Here is the country's central bank pleading, cajoling, appealing, requesting - everything except "directing" as is expected from a regulator - the Sahara Group to agree to the decisions of the bank. The narration of the events in the extract also gives an unmistakable impression that the approach of the group of officers, which had engaged in marathon discussions with Sahara, had the approval of the top management of RBI. It is not clear from the extract as to why RBI had to be so meek and submissive in its approach..........
Don't malign RBI
My View on "Should the new government sack Rajan?":
To write such articles without any research on the outcome of poll results is an insult to the institution of RBI. In my opinion, Mr Modi is making all his speeches as though he is already the PM of the country. Perhaps, this overconfidence and rhetoric had cost BJP its elections 2004 when they claimed 'India Shining'. They never mention that NDA will form the govt. Instead Mr Modi goes on telling that BJP would form the govt. It only shows their short-sightedness and little respect for coalition partners. Even if they take about 150+ seats and Congress around 120+ seats, it is more likely that UPA would form the govt this time too. Mr Modi's PM type of speeches would end from 16 May 2014 So, let us not malign a great institution like RBI with such cheap political based articles. Media has responsibility to represent the correct views to the readers and listeners. This article is an exception to this.
- Santhanam
Raghuram Rajan must be respected by incoming govt: Chidambaram
Reserve Bank of India (RBI) governor Raghuram Rajan’s appointment must be respected by any administration that takes power after Indian elections ending 16 May, finance minister P. Chidambaram said. “The central bank governor was appointed based on his reputation,” Chidambaram said in an interview on the sidelines of an Asian Development Bank (ADB) meeting in Astana, Kazakhstan, on 3 May...........
Fiscal consolidation will be tough for new FM: Deutsche Bank
........"If the new finance minister chooses to expedite capital spending to orchestrate a cyclical turn in the investment cycle and boost long-term growth, the short-term casualty will be the debt/GDP ratio, which has improved massively in the recent years... "This will become more difficult, if RBI continues its quest to tame inflation by pursuing positive real rates, debt service will become substantially more onerous, leading to the risk of a conflict of interest between the government and RBI in the post-poll landscape," Deutsche Bank India Chief Economist Taimur Baig said.........
RBI Asked to Vet the Way Banks Raise Tier-II Funds
The government has asked the Reserve Bank (RBI) to set up a committee to look into the insurance regulator’s concerns that some of the instruments issued by banks to raise tier-II capital were perpetual and illiquid. The Insurance Regulatory & Development Authority (IRDA) has also said that some of these instruments are flouting its investment norms. The committee will look into issue of and subscription to tier-II instruments under the new Basel-III capitalisation guidelines, a finance ministry official said. “The insurance regulator has raised concerns over certain instruments. We have asked RBI to take up those issues,” the official said,........
Read - ET
Read - ET
Rangarajan calls for changes in examination system
..........The former RBI Governor also pointed out that the curriculum needs to be updated regularly so as to match up to the global institutes of excellence. “Knowledge expansion is very important and the curriculum needs to be updated fast. The students should be appraised by the teachers on the changes taking place. For instance, medical engineering course is catching up in the West. It was thought that experiments in social sciences were not possible but there is a course called experimental economics,” he explained........
RBI sub-office starts functioning at Srinagar
SRINAGAR: The upgraded sub-office of Reserve Bank of India started functioning at Srinagar for summer session from Monday. Besides, the Cell of Foreign Exchange Department already functional in Srinagar, the Cell of Rural Planning and Credit Department (RPCD) carved out of the Jammu Regional Office has become operational from existing premises at Rajbagh, Srinagar.......
Read.......
Read.......
Meet on Banking held at GM Hall
......Addressing the gathering, Anand Prakash, General Manager of Banking Ombudsman Reserve Bank of India, Guwahati stated that any bank customers who face inconvenience in financial transaction under Reserve Bank of India (RBI) can file complaint to RBI under the Banking Ombudsman Scheme, 2006 through writing or on internet and informed that there is already an office in Guwahati where people of northeastern States could file complaint.....
Read......
Seminar on 'Challenges Before Indian Banks' Held
The Basel-III norms which is to be implemented by banks by March 31, as per the guidelines issued by RBI, will be the major challenging task for the India banks, said Vairam Somasundaram, deputy general manager, Indian Overseas Bank. Inaugurating the seminar on ‘Challenges before Indian Banks’ organised by Bankers’ Club Greater Kochi here, he pointed out that the Indian banks will be required to raise `3 trillion in external capital in the next four year.............
Deutsche Bank sees conflict of interest between RBI, new government
......"When the new government takes over this summer, if the authorities choose to expedite capital spending to orchestrate a cyclical turn in the investment cycle and boost long-term growth, the short-term casualty will be the debt/GDP ratio," Deutsche Bank's Taimur Baig and Kaushik Das said in the report, warning the new government faces a huge fiscal challenge. "At the same time, if the RBI continues its quest to tame inflation by pursuing positive real rates, debt service will become.......
Good news! You can soon write one cheque to allot funds across MF schemes
......But imagine just writing one cheque that ensures your funds are allotted to the mutual funds schemes of your choice. That seems like "investing convenience" at its best. This convenience is not a distant dream, and will soon be a reality. Thanks to the Mutual Fund utility platform which is all set to launch next month. MF utility is a centralized mutual fund distribution platform..........
Robber blasts ATM, takes to heels
........The explosion left the ATM, owned by State Bank of Mysore, filled with thick smoke. Even as a couple of passersby and people residing near the ATM who heard the blast gathered at the spot, the robber escaped on a motorbike in the cover of the night. ...........
CAD likely to be around 2% of GDP on easing of gold imports: Rangarajan
India's Current Account Deficit (CAD) is likely to be around 2 percent of GDP in the coming few years due to slackening of gold imports, among other factors, Prime Minister's Economic Advisory Council Chairman C Rangarajan said today. "With inflation showing signs of decline and gold prices also not rising, the attraction of gold as an asset is coming down. And as we go ahead we should find the demand for gold falling. There are also other factors contributing to improvement in exports..........
FinMin team in Mumbai to take stock of election result day preparations
........Officials from banking sector regulator Reserve Bank of India (RBI), insurance regulator Insurance Regulatory and Development Authority (IRDA) and stock exchange officials are also likely to be present for the event, a source said. It is believed that the feedback from market participants will be placed before the Financial Stability and Development Council (FSDC), which is scheduled to meet next week to discuss the preparedness of the financial markets on the election result day.........
Human resources at risk
Apropos Subir Gokarn's column "Jobs-olescence" (Muddy Waters, May 5), it is stated everywhere that India will be the next superpower and its massive working-age population is one of the driving factors. The bitter component is the lack of ...........
Pvt banks see healthy low-cost deposit growth
At a time when many public sector banks are struggling to attract low-cost deposits — despite having large branch presence — their private sector counterparts saw a healthy growth, on the back of branch expansion and product innovation. Private-sector lenders attributed customer satisfaction as one of the reasons for the growth in current account and savings account deposits (Casa), known as low-cost deposits...............
NPAs render govt banks unfit for pvt PF deposits
...........Norms governing investments by provident funds bar these from depositing funds in a commercial bank in case the NPAs of that bank exceed two per cent of net advances. The Indian Banks’ Association (IBA) has urged the Union finance ministry to relax the norms relating to deposits by non-government provident funds and gratuity funds in scheduled commercial banks. Bankers said though the share of such deposits in banks’ total resource pool wasn’t substantial, a ban might lead to the impression that banks were incapable of servicing repayment obligations..................
Turning dreams into reality with their own savings
......Prospective women entrepreneurs often are ignorant of the Reserve Bank of India (RBI) guideline that no collateral is required for bank loans of up to Rs 1 crore in the micro and small enterprise sector. Nor do they know of the several schemes of assistance offered by the Central and state governments. Undeterred by these hurdles, many women with the passion to become entrepreneurs have succeeded in creating a niche for themselves. ......
EMI at point-of-sale through credit cards gaining momentum
........The Reserve Bank of India had banned EMI at PoS as some vendors offered zero per cent interest EMI schemes for their products as this could be misleading the customers and they would end up paying something which they were not able to afford. After this ban, to increase the credit card business, banks are tying up with establishments delivering high value services...............
UAE Bank Introduces Service for Speedy Money Transfer to India
UAE-based bank 'Emirates NBD' has launched 'DirectRemit' service which would, among other things, enable customers to speedily transfer money to other banks in India. A first-of-its-kind remittance service, it would also allow Non-Resident Indian (NRI) customers to remit money to any HDFC Bank account in India in just 60 seconds, says a report...........
Monday, May 5, 2014
Jobs-olescence - Dr.Subir Gokarn
..........Going by the record, the Indian economy is not up to the task. It has not been able to move people out of agriculture fast enough. While the share of agriculture in gross domestic product (GDP) is less than 15 per cent, the share of the labour force still primarily dependent on this sector for its livelihood is above 50 per cent. Even for those who have moved out, the urban job scenario is hardly reassuring...........
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