....."Though Financial Inclusion has remained a national agenda for a fairly long time, as reflected in initiatives such as the co-operative movement, bank nationalization, lead bank scheme, setting up of RRBs, etc., the progress has been nothing to write home about. Why has this been the state of affairs in our country where banking, in some formal way, has been in existence for more than 200 years; where we have several banks which have been in existence for more than 100 years,".........
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.
Thursday, February 14, 2013
This chart shows how FM stole his own thunder before Budget
.............“Focus will now be on Stability, Credibility on fiscal consolidation and Reform intent in order to reposition India as an attractive investment destination,” the report says. But as the RBI’s recent monetary policy shows, the real challenges lie ahead. The current account deficit is likely to get worse in the third quarter, and if the fourth quarter does not show significant improvement, the RBI will again have to be cautious on rate cuts............
PSU banks likely to get Rs 20,000 cr fund infusion in next fiscal
.....The RBI has extended the rollout date for Basel III by three months to April, 1, 2013. During the current fiscal, the centre has approved infusion of Rs 12,517 crore in around 10 state- owned banks. It had infused about Rs 20,117 crore in public sector banks during 2010- 11, and Rs 12,000 crore in 2011- 12..........
Small rate cuts do not help you save much
..But how much of a difference would this make to equated monthly instalment (EMI) or the total interest payout for the entire tenor? Numbers show that it doesn’t make a huge difference if the loan amount is less. For higher loan amounts, the saving is a little higher.........
Banking Taken a Hit? Yes. Is It Cause for Alarm? No
.....Today, it is a classic scenario where you have declining industrial production, you have declining top line inflation, you have declining core inflation, you have high consumer inflation no doubt, which is a supply side issue, and you have some shortage of money supply. In this situation, dynamic growth seems to get a little heavier. And that is what we are saying, our recommendation is a tough one, it is for the Reserve Bank to decide but we would like to see maybe a 50 basis point cut in the repo rate and a 75 to 100 basis point cut in cash reserve ratio. It would not only change the sentiment, it will bring down interest rates, and will give a fillip to consumer demand. ........
Lot for the financial sector happening on the sidelines of RBI guidelines
Lot for the financial sector has been happening on the sidelines in the form of the RBI guidelines that keep on coming from time to time whether it is for the NBFCs, for microfinance and gold loan companies.....
Fake notes via Bengal 'the best'
.....Experts are worried because producers of the fake notes routed through Bengal have managed to replicate all 12 "overt" security features of genuine notes with a scary degree of accuracy. "The paper and ink used are of a very high quality too, making it tough even for experts to detect the fakes," an RBI official who did not want to be named said on Wednesday........
‘Pakistan Security Press ink used for fake notes’
The High Court was informed on Tuesday that ink from Pakistan Security Press is being used for printing fake currency notes in the state. State Public Prosecutor S Dorairaj submitted before Justice K N Keshavanarayana that Sampangiramanagar police recovered fake currency notes to the tune of `30 lakh and.....
Overseas exchanges a fertile ground for fake note circulation
......Though the Reserve Bank of India insists that the currency notes of denomination of 100 and above, circulated by banks, must go through mandatory sorting by machine, the guideline is not adhered to by several banks. RBI has devised a system whereby the currency notes could be checked at the branches or at the currency chest, a regional currency management set-up, operated at a particular office where currency notes are received from various branches. Even if one branch fails to identify fake currency, the machine at the currency chest can detect it.......
Curbing gold imports won’thelp trim trade gap: Sharma
Increasing the import duty on gold alone will not help bridge the trade deficit, Commerce Minister Anand Sharma said on Wednesday, even as the Finance Ministry and the Reserve Bank of India have been taking steps to discourage imports of the precious metal..........
घर की तिजोरी में रखे ‘सोने’ पर RBI की पैनी नजर
........इसके तहत घरों मे बिना इस्तेमाल के पडे सोने को आय के स्रोत मे बदलने के लिए एक स्वर्ण बैंक के गठन की योजना भी बनायी जा रही है। उसने सरकार को भेजे सुझाव में बैंको को उनके द्वारा बेचे गए सोने के सिक्कों की वापस खरीद का अधिकार दिए जाने की बात भी कही है। आरबीआई ने सोने से जुडे चार प्रकार के उत्पादो को बाजार मे लाने का सुझाव दिया है। इनमे गोल्ड डिपाजिट स्कीम, गोल्ड लिंक्ड एकाउंट, गोल्ड एक्यूमलेशन प्लान और गोल्ड पेशन प्लान शामिल है। हालांकि ऐसी किसी भी योजना मे निवेशको को बैकों में रखे जाने वाला उनका सोना वापिस नहीं मिलने वाला है। ...........
Is my credit card safe?
.........On 8 February, Reserve Bank of India (RBI) Deputy Governor Anand Sinha told news agency Press Trust of India in Mumbai that instances of credit card fraud being reported were “of high magnitude”. “We have to be alert,” he added. Various explanations have been proffered for the increase in instances of card fraud, including the fact that most overseas websites do not insist on either CVV or the additional “Secure” layer. “In India, while all domestic transactions are authenticated through the Secure protocol, as per an RBI mandate, many international merchants do not use the Secure protocol for ‘card not present’ transactions,” said an HSBC spokesperson. None of these explanations is entirely satisfactory and experts say the current situation reflects the inability of card issuers, banks, the regulator, and merchants to deal with card fraud. No one is safe...............
Planning for retirement through pension plans?
Among a myriad of financial goals that a person has, retirement perhaps is the most important and long term in nature. No wonder, insurance companies come up with advertisements that harp on how pension plans help create a good retirement kitty. But, even if you start early, pension plans may not give the best returns................
Wednesday, February 13, 2013
Toothless tigers, wounded elephants
......Yet the similes abound. Three months after the Wall Street crisis, The Economist of London was calling India “An Elephant, not a Tiger”. In 2011, hoping to resurrect India in the eyes of investors, RBI Governor D. Subbarao in 2011 spoke of “Rejigging the elephant dance.” Mixing metaphors merrily, the Governor reminded the audience: “But the elephant dance got interrupted by the ‘zoo party’ of the global financial crisis and to get it back on course, we need to rejig the dance.” We now have RBI Deputy Governor K.C. Chakrabarty titling his speech: “Transit Path for Indian Economy: Six Steps for Transforming an Elephant into a Tiger.”........
Bank credit not fundamental right, says RBI deputy guv
 |
| “You may open bank accounts, you may provide some remittance facilities, you may also provide some emergency overdraft or consumption credit. But, bank credit per se cannot be a fundamental right,” |
Banking as a fundamental right of the people ! - K C Chakrabarty
..............Having said that, I would admit that I have come here with a vested interest. Vested interest in the sense that the subject you have selected for this seminar is very close to my heart; to the hearts of the senior management in the Reserve Bank of India. Also, being in-charge of the administration and human resource in the Reserve Bank of India, which is the regulator of the entire banking system in India, we want a responsible and strong trade union system in the banks because we feel that strong trade unions are a pre-condition for strong managements in the banks. I will come back to this issue a little later. It is, indeed, very heartening to note that the AIBEA has organized this conference on the theme “Meeting the Challenges of the Decade”. In fact, this could very well have been titled “Meeting the Challenges of the Century”. The banking system is unlikely to face the kind of challenges that it has been facing for the last 4–5 years..............
Inclusion drive taking baby steps
........The department of financial services and the Reserve Bank of India count a wider financial reach as one of their top priorities. They have been pushing banks to open more branches in rural India. Other than this, banks have on their hands UPA’s another pet theme – the direct cash transfer project. “All banks have 24 hours in a day and there is some expectation that the RBI has of them, something that the finance ministry has of them, something the cash transfers or Aadhar has of them. They are trying to cope up,”......
Faux Pas in RBI Calendar, 2013
The Bank in its 2013
calendar had wrongly stated that “The Kolkata Town Hall” was built in 1913. The
history of construction of this heritage building dates back to 1813 A.D. Printouts/publications by RBI or on behalf of RBI have high value in the
society and no effort should be spared to make these items error free.
- Kishore Chakraborty, President, All India RBI OERS Pensioners' Forum
What to do when someone palms off a torn note to you
...............The Reserve Bank of India has proper guidelines, namely note refund rules. Banks refund your torn note according to those rules. But, before you show your fist to the banker, keep in mind that getting a refund is not your right. From the RBI’s part, it is just a gracious gesture...............
Cutting bank interest for senior citizens: Can the FM cut the extra 1% given to bank employees?
Senior citizens, who have no voice, are the soft target for the government. However, the government is not bold enough to withdraw the extra interest of 1% given by banks to their present and past employees, as they have the capacity to shut the doors of banks through agitation and strikes........
.................This is the third time in the last six months that the finance ministry has stepped on the toes of the RBI by giving directives to PSBs on issues that is mainly the prerogative of the RBI. While RBI is keeping a steady silence, what is not desirable is dual control of banks, as this will only weaken the powers of the RBI and serve neither the interest of banks nor of the economy..........
Read - Moneylife
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