......To make their money come to the financial markets, the government and regulators will have to do more. Like the rolling out of new KYC norms and incentivising mutual fund distributors for sales beyond top 15 cities or RBI's rural focus. That too has a limitation........
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, April 5, 2013
Where’s that elusive bottom?
......... Far from indicating a recovery, the credit data suggests that the economy may not have reached its much-coveted bottom yet.
Poll panel is watching every high-value bank withdrawal
....A senior official of a nationalised bank said banks usually inform the Reserve Bank of India about any transaction above Rs. 10 lakh. The official said banks would comply with the Election Commission’s new directive........
Rotten agents spoil the Kashmir apple barrel
.....The survey on “Marketing System and Price Spread of Apple in Kashmir”, according to sources, will be released here on April 17 by Chairman of NABARD Dr. Prakash Bakshi before its passage to the State Level Bankers Committee. The survey may compel Reserve Bank of India (RBI) to reframe its guidelines and directives to the financial institutions in Jammu and Kashmir as it has shown that the banks have been continuously “encouraging feudal system and usurious lending by commission agents” in violation of rules and regulations........
Sahara assets: RBI asks banks to comply with Sebi order
.....Since banks come under RBI's purview, a communication from the central bank has helped implement the Sebi decision. ......
High CAD is bad for you
.....But if one goes by experts, a high CAD is not just bad for global travel or education; it might even discourage the Reserve Bank of India (RBI) from cutting the repo rate aggressively. "The central bank cannot ease policy rates till CAD comes in control. Hence, existing borrowers will have to continue paying high rates and new borrowers may want to wait. Today, inflation is not the only criteria for lowering rates,".....
Should India see IMF doctor before it falls sick?
...It may seem like the kind of gratuitous advice of the sorts that are proffered by newspapers every day of the year. But on the strength of his insider’s account of the goings-on of 1990-91, Srinivasa-Raghavan wonders if there is more to it. The “influential business newspaper” (by which he means Business Standard) counts on its editorial board a former Chief Economic Adviser to the government (Shankar Acharya) and a former Deputy Governor of the RBI who demitted office just now (Subir Gokarn). When the advice to go in for a standby loan from the IMF comes from erstwhile insider with their ear to the ground perhaps there may be something afoot. “Is something along those lines being contemplated?” asks Srinivasa-Raghavan...........
Getting down to ‘ BRICS’ tacks
WHILE the latest summit of BRICS - Brazil, Russia, India, China and South Africa - was on at Durban, South Africa, last week, there seemed to be nothing unusual about the proceedings. It was business as usual. Since the main item on the agenda was the formation of a BRICS bank as the global South's answer to the World Bank and the IMF that are unashamedly pro- West and neglectful of the developing countries, there was broad support for it. However, refreshingly, there were thoughtful voices of caution: the objective was worthy, but BRICS must go about it slowly...........
Canara Bank - Appointment of Executive Director
............the Central Government after consultation with the Reserve Bank of India, has appointed Shri V. S. Krishnakumar, presently General Manager, Allahabad Bank as Executive Director of Canara Bank,........
Thursday, April 4, 2013
Two PMs & a countdown to financial crisis - T. C. A. SRINIVASA-RAGHAVAN
Who actually was responsible for the 1991 balance of payments crisis? Rajiv Gandhi or V.P. Singh? Therein lies a tale. In 2004, I was asked by the Reserve Bank of India (RBI) to edit and rewrite volume three of their history. During the process, we came up against significant blanks because the record was not fully complete in that many statements were unsupported — not as to what had happened but as to why they had happened in that particular way and not in some other way. In 2006, after work on volume three was over, I was able to persuade the RBI that it should allow an oral history to be recorded. All the main dramatis personae of the 1991 crisis — and several others — would be interviewed on audio and videotape. This would help future historians. A very senior officer of the RBI, Dr. T.K. Chakrabarty and I interviewed around 40 officers from the bank and the Finance Ministry. Those tapes are now in the RBI’s archives in Pune and can be accessed if the Governor grants permission. Another way, I imagine, is to use the RTI route because there is no security involved.............
Read - The HinduNBFCs to plead RBI to keep Thorat panel norms on hold
Non-banking financial companies (NBFCs) will request Reserve Bank of India not to implement draft guidelines based on Usha Thorat Committee report till the time loan growth revives and regulatory changes are made regarding loan recovery..........
Reserve Bank probe into alleged money laundering case delayed
....When contacted, the RBI spokesperson refused to comment on the investigation report.
However, a person in the know of the developments said, “After the completion of the ongoing probe, the RBI will make it public only when it announces any penalty after another round of show-cause notices and replies. It can take weeks or even months. Even if the RBI completes the probe tomorrow, it won’t reveal the findings.”..........
Youth wanted to loot RBI
MUMBAI: Padma Shekar Nair (27) who tried to sneaked into the Reserve Bank of India (RBI) headquarters in Fort on Wednesday, told police that he entered into the building with an intention to loot the RBI. Nair who police said is undergoing treatment for mental ill told police that he was told that there is huge money inside the RBI and that is why he brought a air gun and tried to enter in.............
RBI breach: 1k pellets found in Keralite’s room
Padmagirish Rajshekhar Nair, 27, who was caught while entering the RBI headquarters at Fort on Tuesday with an airgun, had claimed to possess a bomb and threatened to kill everyone there. Security guards at the headquarters said this is what Nair said to them during the altercation between them. Later in the day, the police found 10 packets containing 1,000 pellets in all and his identity documents from his hotel room. The police have also found some photographs of Nair with a group of people in different locations in South Mumbai during his last visit. The police are now probing whether he has links with any terrorist outfit.........
Teaching Indian sex workers to spot fake currency
In the eastern Indian city of Calcutta, a non-governmental organisation has started a programme to help sex workers recognise fake currency given to them by clients, reports the BBC's Rahul Tandon...........
RBI annual policy on May 3
....“D. Subbarao, Governor, Reserve Bank of India will announce the Monetary Policy Statement 2013-14 on May 3, 2013,” the RBI said in a statement.......
Monetary easing has had little impact so far
..... Will a government that relies on outside support for a parliamentary majority be able to take hard decisions to rein in expenditure? What is bothering the RBI is retail inflation, and especially food inflation, which has been in double digits over the past three months. "Concerns about inflation have not receded," says Rao. The RBI appears to have loosened policy to back the government's efforts to control fiscal deficit and move ahead with reforms. "The RBI has done its job even though inflation appears to be fairly high," says Madan Sabnavis, Chief Economist at Credit Analysis and Research Ltd.......
Don't expect any rate cut in May policy: Keki Mistry, HDFC
At least in the May policy it is unlikely that the RBI will cut rates because they have just done it a while ago. So, they will wait for a while and see what kind of monsoons we have. I would expect a rate cut to happen in the July policy, but let us wait and see.........
'Government has just no say in monetary policy panel'
......The panel has suggested setting up a Monetary Policy Committee (MPC), consisting of two members from the RBI – including its governor – and five members from the government, of whom two would be appointed in consultation with the central bank. But, contrary to the apprehensions, the new setup will ensure greater accountability and transparency, Professor Ajay Shah, who worked on the FSLRC report, told Parnika Sokhi in an interaction. Edited excerpts:..........
A one-stop regulator
......There is however a niggling doubt on whether the mandate of the single regulator is too large and unwieldy. The success of UFA will depend upon putting up an organisation structure that has departments dealing with each unique asset class manned by experts in the field. Employing adequate qualified personnel would be imperative to address a wide range of issues from a diverse customer set. There is also the possibility that some of the less important segments could be given less attention by the UFA.........
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