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| “A CAD which can be easily financed in one period can become difficult to manage in another. The exodus of capital can be very sudden and large when the international community loses confidence in India,” |
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, February 4, 2013
Keeping CAD under check
The true significance of the monetary policy review
.....Finally, it ought to be clear that the repo rate cut does not automatically lower the interest rates on loans. That will depend upon the decisions of individual banks. It is hoped that the banks would also heed the concerns of depositors, especially the pensioners and others solely dependent on interest income from bank deposits.......
RBI’s policy schizophrenia
..........The real issue is that by making the states share a part of the discom debt, the centre is converting a limited financial problem into a much wider sub-national fiscal issue. And RBI, despite expressing serious reservations, is supporting it. Strange, but then these days, this seems to be the defining characteristic of RBI’s policy initiatives.
RBI’s Policy & Macro Disconnect
......The
Reserve Bank of India’s (RBI) report on Macroeconomic and Monetary
Developments is like the Survey. It is presented a day before the
central bank’s Review of Monetary Policy and is a bare-bones assessment
of the state of the economy. The Policy Review that follows spells out
the central bank’s stance and is a more nuanced document. But
unlike the Survey and the Union Budget, the central bank’s report and
the policy are usually in sync. Not any more, it would appear!.........
Policy action needed to fill demand-supply gap: RBI
.........."In order to bring inflation down on an enduring basis and anchor inflation expectations there is a need for policy action on several fronts. "...it is important to aim for nutritional security not only to harness the demographic dividend stemming from our sizable young population but also to contain food prices. This will require addressing the supply-demand imbalance in the agricultural sector and modernising the supply chain," Reserve Bank Executive Director Deepak Mohanty said during an event recently...........
RBI pushes for growth
.....The RBI Governor is still not happy about the inflation levels, and feels this is not a comfortable time to announce key rate reductions. But the RBI hasn’t completely disappointed the market. It cut the CRR and Repo Rates that would ease the liquidity in the banking system.....
New monitoring system to check export data flaws:RBI
.......With a view to removing the bottlenecks in this exercise,RBI has now decided to implement a revamped procedure of data capturing, transfer and follow up through a new Export Data Processing and Monitoring System.
Read.......
Read.......
Finance Ministry forms data bank to check black money
In order to check black money and tax evasion, an online data bank is being setup by the Finance Ministry for effective coordination and dissemination of various inputs pertaining to illegal funds. The online system, which would act as data bank for financial intelligence sleuths, named ‘Virtual Office’ will help in monitoring of Suspicious Transaction Reports (STRs) generated by Financial Intelligence Unit-India, an agency tasked with receiving, analysing and disseminating information relating to suspect financial transactions to enforcement agencies and its foreign counterparts........
Foolproof fraud detection model soon, says Pilot
....The MCA has also decided to collaborate with the Ministry of Home Affairs, various intelligence agencies and financial intelligence units, regulatory bodies such as the SEBI and the RBI and cyber agencies, besides international bodies, to evolve a system wherein a financial fraud is detected at a nascent stage. Referring to the proposed Company Bill, Mr. Pilot said: “Once it is enacted into a law, it will usher in a new era of inter-agency coordination, which is actually the need of the hour for prevention of corporate fraud and other related crimes.”......
Why should we expect financial services sector to follow regulations?
...... The message is clear – banks can overcharge or blatantly violate the agreement terms with consumers as long as charges are reversed for consumers who take the trouble to complain, and perhaps pay a token fine. It is for the Reserve Bank of India, which regulates the banks, to ensure that corrections happen at a systemic level and relief is granted to all consumers who were overcharged, irrespective of whether they were aware of it or not.......
Telcos don’t connect with mobile banking plan
RBI-promoted National Payments Corporation of India (NPCI) and telecom companies have locked horns over the rollout of mobile banking on basic phones. The bone of contention is the charges telcos would receive from banks. NPCI, headed by former central banker A P Hota, is understood to have offered 10 paise per transaction, while telcos want more, considering the investment and uncertainty over volumes. The stalemate has delayed the introduction of USSD-based mobile payments. USSD stands for unstructured supplementary service data. This is the same technology through which mobile customers can communicate directly with the phone company’s servers and check their balance and subscribe to schemes. NPCI had planned to use this messaging system for mobile banking so that even the most basic phones can be used for secure payments. But telcos are not keen on USSD, also because they have their own plans for a payment system.
TOI
SC stays elections after RBI denies govt charges
..........The action was taken when the NABARD was holding hearing on financial matters and slow recovery. The court heard both petitioner and the government and sought report from the RBI on the charges and legal dispute. The RBI found that ” Most of the deficiencies pointed in the show cause- notice relate to systems and procedures and are general in nature which does not provide strong ground for supersession of the board of directors of Panna, DCCB.”.....
RBI may let realtors, brokers apply for banking licences
.........Realtors and brokerages, in their discussions with the regulator, protested such a move and demanded they should be considered since banks can dabble in broking and give loans to builders. The government too wants the central bank to change its stance. The government is of the view that it is improper to generalize that “all real estate firms are bad or all brokerages are good”, a government official said in Delhi. He did not want to be named. This has prompted RBI to lower its guard against brokerages and realtors. According to the two people quoted above—neither of whom was willing to be identified, considering the sensitivity of the issue—RBI will now let all corporate aspirants to claim stakes to float a bank, but be stricter in its approach to ring-fence the banking system from any possible intervention by the promoters in the banks’ running and misuse of public money...........
Banking sector will see changes after new licences are issued
........If you look at history and take a lesson from the nine banks that were
licensed, five remain. How have they changed the course of banking in
the country? One of them has been ranked as the most valuable bank in
country, so they did make a change. This has happened over a period of
18 years. Over a period of time, they will make a change and not all of
them will make a change. So, if you really go by history, for you to
become a formidable player, you need capital. Capital does not come
overnight. You need customers and all that will accrue over a period of
time...........
Centre planning to set up exclusive bank for women: AP CM
Hyderabad: The Centre is contemplating an exclusive bank for women on the lines of Nabard, and reducing interest on loans to them, Andhra Pradesh Chief Minister N Kiran Kumar Reddy said today. Addressing the State-Level Bankers' Committee meeting here, the Chief Minister said the Centre is considering a proposal to extend loans to women at 7 per cent interest, down from the current 14 per cent...........
RBI designing products offering similar returns as gold
.........The Reserve Bank of India (RBI) plans to mobilise the unused gold by lending it to importers and exporters of the yellow metal, in a move it hopes will bring down the demand for physical gold. It wants banks to encourage products linked to accepting physical gold as deposits and investing public money in gold related products, and extend loans against gold as collateral..........
RBI to quiz YES Bank on Monday over cyber-fraud
YES Bank will offer an explanation to the Reserve Bank of India (RBI) on Monday detailing the circumstances that led to a cyber-fraud in one of its customers' bank account, sources in the central bank said. Ankur Korane, a customer of YES Bank's Mulund branch, had claimed that Rs 1 crore was stolen from his bank account. The money was transferred from his account through real time gross settlement (RTGS) system..........
What is Cheque Truncation System
........Some banks also created awareness through various modes of communication like SMS alerts, letters, display boards in branches and ATMs, pop-up messages in internet banking and notification on website. All this is because we are moving from an old format to a new format of cheque clearance in India...........
SEBI plans colour-coded MF products
In a bid to caution people about the risks associated with a certain mutual fund product, SEBI is planning to introduce colour- coded mutual fund products to depict the level of risk involved with the instrument, according to a senior official of the capital market regulator.............
Saturday, February 2, 2013
RBI: Growth slowdown not commensurate with inflation control
............ “While monetary policy action addresses the risk of unhinging of inflation expectations, attending to the structural supply constraints becomes important to ensure that these do not become a binding constraint in the long-run, making the task of inflation management more difficult. By ensuring a low and stable inflation, RBI could best contribute to social welfare,”.................
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