........But no references were made to UTI officials themselves, withdrawing their investments with the advantage of their insider knowledge. A few years earlier, a committee had recommended an enquiry into UTI buying the shares of Reliance Industries at a considerably higher than market price. There was no follow-up..............
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, March 11, 2013
Up to the government
This is regarding the report “Govt has done its bit, ball in RBI’s court:FM” (FE, Mar 9). The government cannot remain satisfied by giving it over to RBI. The downward trend of inflation and the upward trend of GDP growth are welcome. But instead of relying on or looking up to numbers, government will have to work in real terms. As pointed out, the MSP on paddy may be a decisive factor. We hope RBI will play its part well by cutting the rates so that there will be a revival in the industry. Also, attention should be paid to the increase in the growth of agriculture. “Centre seeks Parliament’s nod for additional spending of R49,000 cr” for subsidies contained in various forms just after presentation of Budget. That means not RBI, but the government has to be more vigilant on cutting expenses and increasing earnings.
- Jacob Sahayam, Thiruvananthapuram (FE)
Assumptions galore
.......Simple arithmetic suggests that economic growth during the last quarter (January-March, 2013) should be significantly higher to bring the year’s growth rate to something around the RBI’s forecast of 5.5 per cent. The pronounced dip in the growth rate has not dissuaded the policymakers from aiming high. While the Finance Minister hopes that the country has the potential to grow by 8 per cent, a rate which one should strive for, the XII Plan has been much more ambitious.............
Savers and senior citizens short- changed - S.S.Tarapore
......The KUB Rao Working Group of the RBI has come up with concrete suggestions for monetising domestic idle gold and has also suggested the setting up of a Gold Bank. The absence of any reference to these recommendations is glaring. Mere exhortations to refrain from buying gold is unlikely to yield any results, unless strong steps are taken to activate idle gold holdings. In the absence of measures the common person has innate common sense and would, and should, continue to invest in gold.......
Gambling for growth again
.....According to YV Reddy, former RBI Governor and chairman of the 14 Finance Commission, "the new approach does not replace the notions of output or income that contribute to well-being but is considered an antidote to the tendency of economists to focus exclusively on the material determinants of social welfare, such as the gross domestic product (GDP)". A consideration has to be made between "happiness and a longer term and broader goal of life satisfaction".........
Measures to make netbanking safe started
Nationalised banks have started taking precautionary measures to ensure that people don’t lose their money through netbanking fraud. The measures were taken after Rs1 crore was transferred from an account with a nationalised bank to various accounts in 45 minutes using National Electronic Funds Transfer (NEFT)........
Looking for scapegoats
.....But yes, it does show that the rush to ensure the loan waiver reached beneficiaries in time to extract political mileage inevitably resulted in lack of due diligence in checking credentials of those claiming eligibility as well as poor oversight by monitoring authorities. That includes the National Level Monitoring Committee consisting of two Secretaries to the Government of India, the Dy Governor, RBI, Chairman, Nabard, the chairmen of two public sector banks, two regional rural banks and the MDs of two state level co-operative banks..........
Read - ET
Is large government cash surplus creating liquidity shortfall in the banking system?
.....The government keeps its fiscal surplus with the RBI (out of the banking system), and when it runs a large balance, it stresses banking system liquidity. This factor may seem minor, since it is temporary in nature, as stress is released when the government spends the money. However, given the absolute increase in the size of the government in recent years, it can materially stress the banking system at certain times of the year.......
Software exports new silk route for black money
..Software exports have already come under the scanner of Reserve Bank of India with the central bank's data showing software exports worth Rs 1.51 lakh crore did not match with their bank transactions (i.e. remittances received against exports). .....
Errant Vidarbha banks to face farmers' 'music'
....."Not in this case where thousands of farmers have already died. We shall continue beating drums outside these errant banks till they comply with the RBI directives and reveal all the frauds that have taken place in this scheme,".......
Beware loan defaulters! Banks to publish photos in newspapers
..........Adopting a name and shame policy to make borrowers pay their dues, banks have decided to publish in newspapers photographs and details like names and addresses of wilful loan defaulters and market leader SBI has taken the lead in doing so.............
This urban credit cooperative society strikes gold in farm loans!
NAGPUR: If banks have to be pushed to meet their farm loan targets, this urban credit cooperative society has literally struck 'gold' in this business. The Buldhana Urban Credit Cooperative Society (BUCCS) has an exposure of Rs 700 crore from loans doled out to farmers. With this, it sits on as much as 1.5 tonnes of gold pledged by borrowers to get the sum. The cooperative has its headquarters in the drought hit district of Buldhana............
India’s mysterious love affair with gold
.........I asked a finance ministry official whether he suspected something else to explain the erratic trend in imports of gold. The official was, however, sanguine and dismissed theories that suggest that some of these imports may be money laundering or round tripping of money made through illegal means in India. To be sure, these are speculations and presumably the finance ministry official knows better............
Sanjiv Misra takes over non-executive Chairman of Axis Bank
Sanjiv Misra, former Secretary, Department of Expenditure, Ministry of Finance, today took over as the Non-Executive Chairman of AXIS Bank Ltd. This follows RBI approval of his appointment......
Sebi makeover set to be expedited
.............This is the first time that a regulator in India has opened itself to a performance review by an outside agency. As part of its mandate, the consultant is to develop various scenarios for the development of Indian securities markets, identify possible triggers for change, assess implications for market participants and envisage the role of Sebi in the Indian financial sector for a 5-10 year time horizon...............
YES BANK's innovation for Social Inclusion gets multiple recognitions
............. The YES Money program is a unique domestic remittance solution that enables rapid remittances across the country, without the customer ever having to visit their own Bank or the need to transact during banking hours. Additionally the program, has witnessed tremendous success, benefiting over 4 lac customers since launch and having received 9 national & international recognitions from reputed agencies.............
Saturday, March 9, 2013
e-plea for Pension updation
 |
| Dr. Indira Rajaraman, Director, Central Board of the Reserve Bank of India |
Respected Madam,
We are extremely thankful to you for raising forcefully the issue of updation of pension of hapless RBI pensioners in the RBI Board meeting, held at Kolkata in Dec.2012. In this regard we wish to place following genuine facts for your kind consideration.
+ The RBI Pension Regulations, 1990 were introduced with GOI approval in 1990.
+ The scheme of RBI Pension Regulations, 1990 is patterned on the Central Govt. Pension Scheme for GOI retirees.
+ The pension for GOI retirees is invariably revised on the basis of the Recommendations of successive Pay Commissions without making any amendments to relevant provisions of the CCS(Pension Rules).
+ RBI has also made a specific provision in original Rule 5 of its Pension Regulations, inter-alia, to have regards to the corresponding provisions of GOI Civil Service Regulations or the Liberalised Pension Rules or the Civil Pensions (commutation) Rules or the Family Pension Scheme for Central Government employees, as the case may be so far as they can be adapted to the service in the Bank subject to such exceptions and modifications as the Bank may, from time to time determine. This provision has been approved by GOI without any rider or fetters. The scope and intent of Regulation 5 were fully known to the Govt. while approving the Scheme. The memorandum submitted to the RBI Board in 1990, at formative stage, also specifically mentioned that “in government, the pension amount gets updated after every pay revision. We may, therefore, have to update pension after every future pay revision in the Bank”.
The Bank in its letter to the Govt, also made it clear that the Bank will go by GOI Rules in similar circumstances.
+ At the time of introduction of the Bank’s pension scheme in 1990 itself the Bank first time had notionally revised the pay of those who retired from 1-1-1986 to 31 Oct 1987 and then fixed their pension accordingly in 1990. The Bank had done this obviously to fall in line with recommendations of Fourth Central Pay Commission. This was the first updation of pension in RBI.
+ At the time of introduction of the pension scheme in 1990 the good chunk of employees had not opted for the pension. To attract them the Bank in its circular of March 1992 assured and highlighted, amongst others, that updation of pension is a special feature of the Bank’s Scheme .
+ Honouring its promise and by taking recourse to Rule 5, as also keeping in view updation of pension by the GOI in terms of Fifth Central Pay Commission, RBI for the second time, in 2003, revised the basic pension of those retired between 1986 and 1997.
+ The Ministry of Finance questioned the decision of RBI and exerted pressure on it to withdraw the second revision granted in 2003. This withdrawal, however, has been since stayed by Bombay High Court.
+ Considering the strong in-principle stand taken by the Central Board of the Bank about its authority to revise the pension, MoF advised RBI to forward to them the Central Board resolution on amendment to RBI Pension Regulations, amongst others, for effecting pension revision at periodical intervals.
+ RBI has since forwarded the Board resolution amending pension regulations to MoF vide its letter dated 11th October 2011.
+Despite the lapse of about one and half years, MoF has not responded yet though two successive MoF Secretaries, who are the decision makers in MoF and who being CENTRAL BOARD members, are fully aware of the case.
+The Supreme Court in Nakara case held that pension should be revised, fixed not dissimilar to the salaries granted to serving employees.
+ The Apex Court also held in the case of All India Reserve Retired Officers Association that "it is necessary to revise pension periodically to take care of ever rising prices of commodities and continuous fall in rupee value which necessitates adjustment in pension amount."
+ No direction has been issued by GOI under Sec. 7 of RBI Act nor could such direction be issued as per Bombay High Court.
We have ventured to place the above facts before you for such action as you may deem fit/necessary to meet ends of justice
Thanking you
Yours faithfully
M.B.Talekar
Gen.Secretary
Reserve Bank Retired Employees Association,Mumbai
07-03-2013
Mob.9323205016
Was Dr Reddy Right In Asking For Caps On Inflows?
Back in 2004, when India’s foreign
exchange reserves crossed the $100 billion mark, Planning Commission deputy
chairman Montek Singh Ahluwalia proposed using a part of what was then viewed
as excess reserves to finance infrastructure projects. The
proposal remained on paper and was abandoned many years later. Reserves,
however, continued to balloon........
Women banking with women, since 1974
.........The country’s first all-woman public-sector bank, announced in the Union budget, is due to come up in November. The SEWA bank has been running for decades, a cooperative set up under a trade union in 1974..........................
Empowered with a bank
Instead of having a women's bank, Mr FM, set up more branches and expand post office network to foster financial inclusion
....... I am reminded of nationalisation of banks here and whether the rural outreach could have been achieved even in limited way without the nationalized and public sector banks? Besides, the prerequisite of proving your identity to open a bank account will ensure that financial inclusion does not happen, not only for women but also for men who are not empowered enough to own a property to establish residency.........
Read | Business Standard
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