....It further said the banks would not be required to obtain prior approval of RBI for introducing the scheme. However, they would be required to inform the details of the scheme, including name of branches operating the scheme, to the central bank.......
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, February 15, 2013
Will rise in 2013: World Gold Council
......On the report by the committee appointed by RBI to check gold consumption, Mr. Grubb said, “The report is a sober assessment of the Indian gold market. It has recognized gold as an essential asset in the Indian context and the issue is of how to mobilize idle reserves and put it to use. There have been three hikes in import duty and I do not foresee any more action.”.....
RBI tweaks gold deposit scheme provisions
....According to the estimates of K U B Rao Committee, about 20,000 tonnes of gold is lying idle with people. The central bank wants to channelise the idle gold for productive purposes and also check unbridled gold imports. From now on, banks will not need to obtain prior approval from RBI to introduce the scheme. However, they would be required to inform the central bank of details such as the names of the branches that operate the scheme......
RBI cancels licence of Abhinav Sahakari Bank
The Reserve Bank of India (RBI) in an order dated February 1, 2013 has cancelled the licence of Abhinav Sahakari Bank Ltd in Rahuri, Ahmednagar, Maharashtra .................
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Finmin clamps down on Irda
.....Even the Reserve Bank of India had expressed concerns about banks’ role in distributing insurance products under the proposed framework. “The new person who assumes office will have to be responsible for the newly implemented norms and it is fair enough to allow him to review the impact on all stakeholders,” said an industry source. It’s also believed that the post of member actuary at Irda will be filled after the new chairman assumes office. Currently, Purnima Gupta (Appointed actuary at Reliance Life) and Meena Kumari (deputy director – actuarial, Irda) are in the reckoning for the actuary job.........
A higher exemption limit is the need of the hour
......With a constant decline in the percentage of individual savings, it’s expected that there would be an increase in the exemption limit available under section 80C to `3 lakh from the current limit of `1 lakh, to boost savings. This can be done by introducing a separate limit of `2 lakh for specified long-term investments such as life insurance and annuity, investments in Rajiv Gandhi Equity Savings Scheme and employee contribution to New Pension Scheme, within the ambit of section 80C.......
CM seeks banks help for state glagship projects
......Although the ratio of priority sector advances to total advances in Mizoram as of March 2012 was well above the stipulated 40 percent, percentage of agriculture advances was much below the RBI mandated target of 18 percent, the CM pointed out. He requested the banks to take proactive steps in devising ingenious ways and adopting innovative strategies to step up the credit flow to priority sector, especially to agriculture sector in the state. The focus of this year's state credit seminar was on "development of rural infrastructure for accelerating inclusive growth." .......
SBI opens e-corners in Kolkata
State Bank of India, Kolkata Circle on Thursday opened five e-corners in various parts of the city. The e-corners will have various facilities including ATM, cash deposit machines, self service kiosk (for passbook printing, fund transfer, NEFT, account statement, cheque book request, bill payments etc) and coin vending machine, said a bank statement..........
Thursday, February 14, 2013
Kudos to Mr Subbarao
India’s inflation puzzle
...........A couple of weeks ago, Deepak Mohanty, and Executive Director of RBI, gave a speech in which he tackled India’s inflation puzzle. I will outline what he said, and then assess the arguments. Mr Mohanty first pointed out that India’s recent inflation surge and its persistence did not line up well with either its own history or what has been happening contemporaneously in the rest of the world.............
RBI sets up panel to study exporters’ concerns
Committee will be chaired by RBI Executive Director G. Padmanabhan
The Reserve Bank of India (RBI) on Wednesday set up a technical committee to study issues related to difficulties being faced by exporters with regard to the availability of credit and transaction costs, among other areas..........
Long bankers' queue for Lakshmi Vilas Bank CEO
.......The applicants include senior executives from the State Bank of India, a former official of the Reserve Bank of India, and business heads of ICICI Bank, HDFC Bank, Axis Bank, Citibank and Hongkong and Shanghai Banking Corp. The CEO’s post in the Tamil Nadu-based private bank has been vacant after P R Somasundaram resigned from the position late November last year. He had left the bank due to “personal reasons”.......
Islamic Banking – Participatory, Equality & Indian law
.....Had RBI as financial engineer studied financial products used under Islamic banking system, might have developed new secular financial products with equally attractive and acceptable to Indian Muslims as well. But the internal working group of RBI constituted for this purpose sensed mysticism in Islamic banking with inextricable influence of religious doctrines, and delineated the principles and entire gamut of financial products used in Islamic banking for better understanding. So the report presented by that working groups mostly dealt about legal hurdles disallowing Islamic theology in present banking system; and did not focus on evaluating the scope of alternative financial products potential for financial inclusion.........
Banks pump back counterfeit notes to skirt trouble
......A police officer said certain banks were indirectly aiding counterfeiters by pumping the fake notes they catch into ATMs. “They have nothing to gain by alerting the police about the counterfeits. We have information that at least some banks put fake notes into their ATMs. From there some unsuspecting man on the street gets it,” ............
Tortoise treatment
Co-operative banks account for a minuscule proportion of the country’s total banking business and nothing reflects this more than the slower-than-tortoise pace at which the Reserve Bank of India (RBI) sends them orders............
The RBI tightens up
.............. In the short run, the end of regulatory forbearance may lead to an even larger gap between the valuations of private sector banks and those of PSBs. But it is the only road to a healthy recapitalisation of the banking sector.
India Inc and the Big Bank theories
The Reserve Bank of India (RBI) appeared un-consulted when Pranab Mukherjee, the then finance minister, invited new players to set up banks in his Budget speech in February 2010. It surprised many in the central bank because consolidation in the banking sector was the most debated topic in those days. Now, three years on, it is more or less certain that a new set...........
Financial markets can expand only if we tackle financial inclusion first
....."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,".........
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............
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