The Reserve bank today expressed concern over the government "occasionally exercising" its ownership rights in banks and financial institutions through channels outside of their boards, and asked it to show exemplary corporate governance.................
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Friday, July 13, 2012
RBI asks ministry not to micromanage banks
| TURF WAR |
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The ministry’s diktats
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Babus should guide banks via boards: RBI Governor Duvvuri Subbarao
MUMBAI: The Reserve Bank of India Governor Duvvuri Subbarao signalled to bureaucrats in the finance ministry that they would serve banks better by pushing their decisions through the board of directors than other means, alluding to secretary (financial affairs) DK Mittal's frequent letters to bank chairmen on administrative issues..........
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RBI to give one lakh coins
BAGALKOT: Following a report in The Times of India dated Juy 7 (Token ends coin shortage in Bagalkot town), the Reserve Bank of India will supply coins to Mahalingapur town in the district ...........
Counterfeit notes of Rs 2L seized in 2011
Chandigarh : .......... senior RBI official told TOI, "It is very difficult to ascertain who deposit the fake currency with the bank because money was received from different parts of India, especially from the different branches situated throughout northern India." The RBI official maintained, "We can't destroy the seized fake currency notes without informing area police and we also sought help from cops to detect the source of these notes.".........
RBI panel looking into alternative to gold imports
RBI may hold on policy stance amid high inflation: Experts
Reserve Bank is unlikely to soften its monetary stance in its policy review later this month due to high inflation even though sluggishness in industrial output growth for May calls for cut in policy rates, say experts............
RBI won't do anything dramatic in July policy: Pronab Sen
..... “The headline inflation will continue to be driven by food prices, probably in 7-7.5% range somewhere, so at the moment I don’t expect to see RBI doing anything dramatic,” ........
Stable for now
The RBI’s latest Financial Stability Report (FSR), like its four predecessors, attempts to share the results of the central bank’s macro prudential surveillance with the markets. The objective is not only to bridge the knowledge gap in a crucial area but to encourage debate and create awareness of the vulnerabilities of the financial system..................
Creative financing paves the way out of poverty for India's poor
.......Amid extensive media coverage, the Indian government began to closely monitor the sector. Last year, the Reserve Bank of India (RBI), the central banking institution of the country, capped the interest rate to 26 per cent for micro loans up to 50,000 rupees. Previously, some MFIs would charge as much as 36 per cent. A bill on empowering RBI to fully monitor and regulate the sector is now being debated in parliament.......
Raghuram Rajan, Ajay Chibber in race to become the next chief economic advisor
....A three-member search committee headed by Prime Minister Manmohan Singh's key economic aide C Rangarajan, a former RBI Governor, is understood to have chosen Chibber and Rajan after considering the claims of 18 applicants........
RBI asks banks to follow guidelines for MSME sector
.....RBI Deputy Governor Anand Sinha today said the central bank had issued instructions to all banks for ensuring timely flow of credit to the MSME sector, particularly the more employment-intensive units. "We urged banks and other institutions to implement the guidelines in letter and spirit," Sinha said .....
Banks need not to submit NRI deposits data in physical form
"........ it has now been decided that the banks, dealing in foreign exchange (excluding regional rural banks and cooperative banks) can stop sending hard copies to Department of Statistics and Information Management (DSIM) henceforth," RBI said in a circular today. "Cooperative banks and regional rural banks (RRBs) may, however, continue submission of both hard and soft copies ... to the regional offices of the Foreign Exchange Department," RBI said........
ATMs a costly affair for banks
.........."However, a reduction in interchange does not mean profitability for third party providers will go down. The introduction of the white label scheme by the RBI will ensure there are more machines in the market, ensuring profitability,”.........
East Delhi civic body to rent out space
.....“The EDMC has a number of buildings and premises which are strategically in residential or institutional or commercial areas. Many of these are suitable for installation of ATM machines by various recognised banks and other agencies recognised by RBI on payment of monthly rent,”......
Thursday, July 12, 2012
Former RBI Official Slams Rupee Policy
........In a rare instance of a former Reserve Bank of India official criticizing the bank, Rakesh Mohan said in an interview Wednesday that the lack of RBI intervention until the rupee's recent plunge are at the root of the country's current exchange-rate problems and, until recently, an acute shortage of cash in the domestic banking system. "We have had a policy of a managed float but without an exchange rate target" in the past, he said. "The rupee should reflect fundamentals and not the vagaries of capital flows.".....
Role Model RBI officer no more.........
Shri M. Subramaniam, former Chief Officer, Department of Currency Management, left for his heavenly abode on Saturday i.e. on 7th July, 2012.
Shri V.K.Sharma, Executive Director when contacted overphone, described Shri Subramaniam as a role model officer of RBI. Down memory lane, Shri Sharma said:-
“Mr. M. Subramaniam was, in every sense, truly a genius and a role model RBI officer – a peerless epitome and paragon of unmatched and unremitting calibre, intellect, professionalism, courage and conviction! He was the last word in the Indian foreign exchange knowledge and regulations space and strode it like a colossus!!”
Axiomatic Monetary Credibility
....The gold standard example is particularly illuminating because it shows how credible policies in certain areas lead to "incredible" policies in others. Because the gold peg was credibly sustained, price stability could not be credible. Shocks to the price level could not be controlled because there was no longer a specific mechanism to control prices. By similar logic, India's attempts to stop the devaluation of the rupee are not credible because there's no infinite forex intervention that can stop the rupee's slide without also contracting monetary policy. Given that the Reserve Bank of India has shown no signs it wishes to tighten monetary policy, the forex intervention is not credible because the mechanism is not infinite......
RBI instructs banks to check notes
Jaipur : ....The RBI has issued instructions to ensure that there is no re-circulation of forged currency notes received by them. At the instance of RBI, banks have designated a nodal officer in every district who would be responsible for filing the FIR and advising the details to the RBI and other relevant agencies. It has also become mandatory for the banks to install note-counting machines and mechanised processing capability for the branches having a daily receipt of Rs 50 lakh and above. To remain one step ahead of the fraudsters, RBI is improving its coordination with the police, CBI, RAW and taking proactive steps to address the menace in the state. There are periodical enhancements in the security features of Indian bank notes........
Big fish of fake currency racket slip through police net, small fry held
.......“I did not know that the money we were depositing had fake notes. My family and I suffered a lot because of the case. I obtained anticipatory bail and spent about Rs 2 lakh in the legal battle that went on for about a year. The judgment was, however, in my favour,” Shinde told The Indian Express. “High quality FICN are being circulated. It is difficult for the common man to identify these notes,” said advocate Sushil Mancharkar. Banks have stopped complaining against genuine customers, and inform the police only about suspicious persons. They now either destroy fake notes or cancel and return them to customers.
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