.....The high level panel, headed by Department of Financial Services' Additional Secretary, will have representatives from Corporate Affairs Ministry, RBI and SEBI. "The first meeting of the Inter-Ministerial Group is scheduled for May 16, 2013," the Finance Ministry said. The IMG has been set up to ensure "proper enforcement of regulatory framework for multi-level marketing companies, non-banking finance companies and companies running collective investment schemes"........
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, May 9, 2013
Is extra tax to compensate Saradha victims fair? asks RBI
.........“If you go back to the West Bengal Saradha scheme, the Chief Minister said ‘I will levy additional taxes on cigarettes and some other things to compensate the people who have lost money’ ... Is it fair?,” Subbarao said while delivering a lecture to economics students here to mark the Platinum Jubilee celebrations of Jammu & Kashmir Bank................
BRICS Development Bank - Prospects and challenges : M.G.Warrier
.......BRICS can also count on the experience of India’s central bank (Reserve Bank of India) which has acquired professional expertise and experience in handling issues like financial inclusion, priority sector lending, institution-building for meeting diverse needs of financial sector, forex reserves management and public debt management, besides the core central banking functions which the Reserve Bank of India has managed well during the last 78 years of its existence...........
Responsibility to check money laundering rests with govt:RBI
Amid allegations of money laundering against banks and insurance companies by an online portal, Reserve Bank Governor D Subbarao today said it was the responsibility of the government and tax authorities to check such activities. "RBI is not directly involved... Even banks are not directly responsible. They are not expected to inquire about the source of income. It is for government and tax authorities to check money laundering," he said while addressing students and academicians as part of the Platinum Jubilee celebrations of Jammu & Kashmir Bank..............
RBI stays away from Saradha row
......Calling the Saradha Group an "investment company", the RBI's affidavit states: "This (Saradha) is not a chit fund. RBI has no authority to regulate investment firms. RBI has served notices to 57 chit fund firms in Bengal. All of them have closed down." The court will take up the matter for hearing on May 14...........
Read - TOI
RBI’s report on services for exporters evokes mixed response
Suggestions in the Reserve Bank of India -appointed G. Padmanabhan Committee’s report for improving financial flow to the exporters, extension of financial support from alternative sources, rationalisation of transaction costs and risk mitigation, among others, are seen with optimism by the knitwear exporters in Tirupur cluster for improvement of business............
Gold coins to flood market
......RBI move will have people offloading gold coins with jewellers and by this they will not have to buy gold from the banks. Most gold coins are expected to come into the open market. By this the import bill of gold is expected to come down. Yet another advantage is that the gold coins coming to the market will be converted into jewellery and provide jobs to 35 lakh goldsmiths.........
Read......
Watching the financial watchdogs
.........Next come the three Financial Regulators - RBI for the banking sector, SEBI for the capital markets both are Mumbai-based and the Hyderabad-based IRDA for the insurance sector. Each of them have their own file pushing babus duplicating investigations by stepping on each other’s toes, resulting in harming genuine consumer interests. Each of them jealously guards their turfs. Typically, it happened during investigations into the Satyam investigation where the local police station despite not knowing the ABC of the fraud wanted a piece of the action!...........
Levy cheque return fee only if customers at fault: RBI to banks
"...Recently, instances have been brought to our notice where banks are levying cheque return charges even in cases where customers have not been at fault in the return and delaying the re-presentation of the cheques which had been returned by the paying banks under technical reasons," RBI said in a notification. It said that both of the issues were resulting into "unsatisfactory customer service" and it was considered necessary to streamline the procedure followed by all banks in this regard....................
Inflation-fighting RBI has no target on CPI
Given the importance it attaches to retail inflation, one would expect the Reserve Bank of India (RBI) to give some guidance on the consumer price index (CPI). But the central bank has neither set a target for the index nor indicated a level it would be comfortable with. “We have no CPI target,” RBI governor D Subbarao said in the post-policy interaction with analysts and researchers earlier this week. The central bank looks at all three CPI indices – for industrial workers, agricultural labourers and rural labourers – as well as the composite CPI, he said...............
Can Punters Outwit RBI This Time?
Hundred
years ago punters in Bombay made and lost fortunes by betting on cotton
futures traded on exchanges in Liverpool, New York and Alexandria.
Information flowed with a lag, orders were posted through telegrams and
those with access to ticker tapes tracked the price movements that
swung, as they do even today, with the hint of a war or crop failure. A
decade ago, when the Reserve Bank of India opened the doors to overseas
bourses, allowing individuals to freely invest money across the border,
it was like the return of a lost era........
Read - ET
Read - ET
Securitisation to turn costlier for banks with new distribution tax
.......A senior official with a leading NBFC said the securitisation route may turn more costly for them as banks would try to pass on the burden. "The issuers and investors can avoid the additional burden through bilateral deals. But in case of direct buyout of loan portfolios, banks will have to bear the credit risk fully as RBI does not allow credit enhancement under bilateral arrangements," he said. RBI said it will issue the final guidelines on reset of credit enhancement in securitisation by end-June 2013......
Bank broking arm to be independent accounting unit: Irda panel
.........The report said that banks acting as brokers will not only enable the banks to utilize their entire network of branches but also increase the insurance penetration and pose an effective competition in rendering services to the policyholders. "Since the banks are regulated separately by the Reserve Bank of India (RBI), it shall be a measure to enhance the efficiency in the conduct of procurement of insurance business and also accountability to the policyholder as compared to the agency channel," it said...........
Maharashtra Govt move to enthuse fresh life into NDCCB struggling for existence
The Maharashtra Government, in an effort to enthuse fresh life into Nagpur District Central Cooperative Bank (NDCCB), has formed a Committee under the Chairmanship of Maharashtra Agriculture Minister Radhakrishna Vikhe Patil to sell-off the Bank’s newly built building in Mahal area of Nagpur and the minister has been the responsibility to deal with issue...........
Early exit from economic stress?
.........Will economic growth recover fairly soon as the finance ministry and PMEAC project? Or more slowly as forecast by the RBI? What will bring about the growth revival? Can the record high external imbalance (CAD) be halved within three years? What is the outlook for inflation? The search for answers must begin with a better understanding of what brought about the extraordinary deceleration of India's growth in the last two years.......
Disguising NPAs
Amid growing concerns about the deteriorating quality of bank loans, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Sarfaesi), was enacted to aid in debt recovery, especially from wilful defaulters. Since the 2006 Supreme Court judgment allowing banks to simultaneously initiate multiple proceedings against the defaulters, the use of Sarfaesi by banks has significantly increased........
PSU banks make defaulters' names public to recover dues
...............Until now, banks were only going after the small promoters. The newfound aggression is probably triggered by a recent statement of the finance minister that banks must act against rich promoters of poor companies. Whatever the trigger, it is clear that corporate bigwigs better watch out. If you default, be prepared for some tough times including public name calling.......
Wednesday, May 8, 2013
Ground reality
..........Most critics of central bank policy say that the RBI has given up promoting growth at the expense of inflation control, and what the country needs more of is growth. The truth is that growth depends on much more than just interest-rate cuts or accommodative monetary policy. So, what is the likely focus of monetary policy action in the coming months? ..........
My wish list for Dr. D Subbarao
.........On pattern of RBI Jammu office, the summer capital (Srinagar) of J&K too deserves an office to avoid any biases. RBI can think of setting a training institute over here which most of its officers would love to come here for their trainings.............
Need of centralised infra for bill payments: RBI panel
........In a report released on Tuesday, the committee chaired by executive director G Padmanabhan said IBPS would be the centralised infrastructure connecting the billers through the aggregators and the customers through the customer service points, for management of all bill payments in the country. The committee said there is a need for developing an electronic bill payment system based on a GIRO model for payment of dues of essential services, insurance premium, utility payments, taxes, etc.......
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