........This projection of CAD for 2013-14 is optimistic compared to that of the International Monetary Fund, which pegged it at 4.9 per cent. In its Review of the Economy 2012-13, the council asked the government to contain gold, oil and coal imports to rein in the rising CAD. According to the latest Reserve Bank of India data, the CAD rose to a record 5.4 per cent of GDP in the first nine months of 2012-13, against 4.1 per cent in the corresponding period of 2011-12........
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, April 25, 2013
US may soon get a leash on Indian financial institutions
.....While the Reserve Bank of India (RBI) was earlier asked to prepare the draft IGA, Sebi has now sought feedback from market participants on the key changes required to be made in the draft. These suggestions will be forwarded to the Centre for incorporation in IGA.............
IMD forecast not reliable: Vikhe-Patil
.........The state government recently held a meeting in Mumbai with the officials of Bank of Maharashtra, the convenor of the state level bankers' committee. The government has decided to set up a branch of public sector banks in every village having minimum population of 5,000. Such villages are mostly in Marathwada and Vidarbha regions where currently no branch of a public or private sector bank is functioning. "Many district central cooperative banks are not functioning, so these banks can be helpful. The initiative has received in-principal approval from the Reserve Bank of India. The public sector bank will disburse close to 40% of the total credit flow in the state,"......
Wednesday, April 24, 2013
Distinguished economist of "Brains Trust" no more...................
Dr. Punyadeo D. Ojha, M.A. Ph.D. served as a Deputy Governor of Reserve Bank of India from 29.04.1985 to 28.04.1990. He had experience of over 33 years in the field of Banking. He was Professor and Head of Economics Department in Bombay Colleges and also taught post-graduate students, Bombay University.
He had contributed several articles in various learned journals both national and international. Among others, his articles on 'Pattern of Income Distribution and Concept of Absolute Level of Poverty' have been acclaimed as 'pioneer' by noted economists and professionals (including Gunnar Myrdal). His article on 'Poverty' has helped clarification of the concept of 'persons below poverty line' - it has now assumed an integral part of economic policy discussions and formulation. He was considered one of the "Brains Trust" of the Economic Department.
May his soul rest in peace.
- P.P.Ramachandran
Sikkim’s Anil Kumar is World’s third most ‘academic people
Why RBI is still dragging its feet over polymer currency notes?
.....It is imperative that RBI must make a clear-cut statement on the progress made so far in the trial that was carried out in selected cities. The central bank must clarify whether we have secured the necessary technology and equipment to mint these polymer notes within the country and categorically announce the time-frame within which India will launch this into the financial system........
Case of oversight
.............. The Saradha incident also provides ammunition for policymakers to lean on the State governments to tweak their chit fund laws, to grant SEBI or RBI powers to seek information and inspect the books of chit funds. Financial institutions, as a class, are prone to the risk of ‘contagion’. Not only can the operational failure of an entity be transmitted to others, bad reputation too can fasten on just as well to other entities, to the detriment of the industry as a whole..........
Will the Dog stop barking in India? - Renu Kohli
...........If global inflation unfolds differently than before in response to changes in the economic cycle, there is a strong case for RBI to take another look at the inflation dynamics and its inferences for monetary policy. IMF’s findings provide it with food for thought in this regard..............
3-6-3 banking costs the poor money
.........Often protected by local politicians, these MLM schemes have perfected the art of staying in the grey area between the turfs of the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi). The first is supposed to regulate deposit-taking companies and the second is supposed to regulate collective investment schemes. These blowouts cause not just economic hardship leading to suicides and push people below the poverty threshold, but in a wider sense put further pressure on the already beleaguered citizen, who has one more reason to get pushed to the brink of anarchy...........
Focus on intermediaries
..... it is time for the Reserve Bank of India to step in. Bank relationship managers, for quite some time now, have been mis-selling insurance and mutual funds. They even bundle loans with insurance products, something that is not allowed by the regulator, by making customers sign a no-objection certificate. Similarly, for auto loans, there are default documents which a customer is made to sign even before he has defaulted. As Cobrapost investigation has shown, bank managers were proposing to use lapsed policies and others’ bank accounts to launder money. Though the apex bank keeps on insisting that there isn’t any systematic failure, what more evidence does it need?........
RBI deputy governor chides 'elite' private banks on low education loans base
............The problem is not that of technique or skill, it is a problem of attitude ... it is a problem of the corporate philosophy, which needs to be changed, and this has to be addressed at the Board level, at the enterprise level," he said, speaking at a seminar on sustainability here...............
Will Tweak KYC Norms if Required: RBI Dy Guv
.....RBI Deputy Governor K C Chakrabarty today said the central bank may introduce some corrective measures in KYC norms as an when necessary to check any "transaction-level aberrations" in the functioning of banks. "System is good, there is no problem. There are... (at the) transactional level, some aberration will always take place and there is a need to look into those issues and as and when it is necessary, banks will take the corrective measures. And if necessary, from the Reserve Bank, regulator side, we will issue the corrective measures," he said..........
No evidence of money laundering by ICICI, Axis, HDFC Bank: RBI
..........The Reserve Bank of India has clarified that there is no transactional evidence of money laundering found in the top three private sector banks (ICICI Bank, HDFC Bank and Axis bank) involved in the Cobrapost expose. "In none of their branches there was a case of money laundering... No transaction has taken place," said K.C. Chakrabarty, Deputy Governor, RBI.........
HDFC Bank yet to find transactions violating anti-money laundering law
........."The issue is being reviewed and investigated from multiple quarters. Clearly, all the investigations have shown that there have been no instances of transactions actually taking place. Our belief is that the existing processes seem to have worked in not allowing these transactions to happen," ..........
RBI asks banks to pay 8% interest for delay in crediting pensions
......The Reserve Bank of India (RBI) has asked all agency banks to compensate all pensioners, including non-state resident pensioners at a fixed rate of 8% for delay in credit of their pension, revised pension or arrears for the delayed period beyond due date. Replying to a complaint filed by Commodore Lokesh Batra, the central bank issued these instructions to agency banks. Commodore Batra has complained about the delay in receiving revised pension of pre-2005 to defence commissioned officers and family pensioners..............
Who’ll watch finance watchdogs?
.....Clearly, the RBI has seriously fallen short of attaining amorphous objectives such as “operating the credit system to the country’s advantage”. As for monetary stability, the less said the better. The RBI’s serious under-performance in generating and preserving monetary stability — which is the same as preserving the purchasing power of the paper currency — is there for all to see. The inflation experience testifies to that. The case for clearly defined and measurable economic objectives for a policy-maker and regulator such as the RBI is very strong. And that is precisely what the FSLRC has recommended......
HC orders notice to district administration
.........He gave a representation to the Chief General Manager and the General Manager of the Reserve Bank of India, Madurai District Collector and the tahsildar of Melur, he said. No action was taken on his representation and hence, he moved the court,............
No application yet to RBI for setting up new private banks: Govt
............RBI had invited applications two months ago and the last date is July 1, 2013. "RBI has informed that as on date no applications for licence under the guidelines have been received and no licence has been granted under these new guidelines," Minister of State for Finance Namo Narain Meena said in a written reply in the Rajya Sabha............
Cyber squatters bank on domain names to profit from new licences
..........Domain names of banking aspirants are on auction for as low as Rs 7 lakh, but the irony is that the natural owners are not sure whether they would commence a bank with the same name. ltbank.com is available on auction for RS 7 lakh. Websites such as shrirambank.com, tatabank.com, and mahindrabank-. com are all in place, but they are not owned by those seeking to run a bank........
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