.......Both the RBI and Govt also talk and express their concern on the staggering NPAs and loss to the exchequer, but what prevents them to introduce an inbuilt mechanism to bring under control the NPAs and discipline the recalcitrant borrowers is something strange. .............
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.
Tuesday, May 14, 2013
Financial matters made simple
Canara Bank has come out with a unique comic book to help improve financial literacy.
Available in six languages — Kannada, English, Hindi, Malayalam, Tamil and Telugu — the comic on ‘Money and savings’ was released recently by the bank’s executive director Ashok Kumar Gupta..........
Monetary levers big and small
.....Sadly, unlike a Rube Goldberg cartoon, where the ultimate purpose is something laughably trivial, like activating a napkin to wipe someone's mouth after each spoonful of food, the intent of monetary policy is the deadly serious business of stabilising the economic environment. In the cartoon, we get to observe what the napkin does. In the case of monetary policy, the official data as reported at present simply do not help to assess the speed and extent of transmission to borrowers from the banking system.........
Change in definition of control in FDI policy to be prospective: Sharma
.................The finance ministry and the Reserve Bank of India have sought clarity on the issue and want to align the definition of ‘control’ in the FDI policy with the proposed definition in the new Companies Bill to get more investments into the country. During his Budget speech, the finance minister had clarified he and his team would amend the definition of ‘FDI’ and ‘FII (foreign institutional investment)’ to remove ambiguity and to adhere to the international definition..........
Yellow metal sends red signal
New Delhi, May 13: India’s trade deficit widened alarmingly by more than 70 per cent in April over the previous month as imports of gold and silver jumped two-fold. The drop in gold prices have pushed up demand. The deficit, or the gap between what India exports and imports, ballooned to $17.8 billion from $10.31 billion in March...........
RBI's new headache: India's huge gold shopping spree
.......The Reserve Bank of India (RBI) brought into effect on Monday previously announced restrictions on banks importing gold. A trade ministry official said the April surge had revived discussion in the government of a further duty hike............
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RBI restricts gold import by banks to consignment
.....“To moderate the demand for gold for domestic use, it has been decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs of gold jewellery exporters. Bulk of the gold imported by nominated banks is on consignment basis, whereby, nominated banks do not have to fund these stocks,”.........
Banks might tighten loans to jewellery sector
.....Bankers and jewellery exporters expect the Reserve Bank of India (RBI) to increase the margins on gold holding, as well the amount of collateral against which the loan is taken. Rajiv Popley, director of jewellery retailer and exporter Popley Group, said banks would highlight gems and jewellery traders and seek more collateral. Earlier, too, banks were wary of lending to diamond traders; now, with RBI considering tightening the norms, it would become very difficult for these traders to avail of loans.......
Thirst for gold defies steps to curb import
.....The government and the RBI have initiated a raft of measures to check gold imports. The government is planning to stop imports from Thailand, from where the yellow metal is imported at concessional duties. At the same time, the RBI has decided that banks can import bullion only against specific orders from jewellery exporters........
RBI's direction for MSMEs welcomed
The Federation of Associations of Small Industries of India (FASII) has welcomed the new guidelines of the ministry of Micro Small and Medium Enterprises (MSME) and Reserve Bank of India (RBI) for disbursement of loan for MSMEs. Badish Jindal, president of FASII, said.........
RBI was net dollar buyer in March
.....“RBI has been active in the foreign exchange market though with smaller transactions,” said a forex trader with a domestic brokerage. The trader added, “Apparently, the RBI is keeping rupee from rising above `53.75 per dollar levels.” The RBI had net bought $275 million in April 2012. .......
RBI yet to order banks to clear dues of armed forces pensioners
.......According to a Right to Information (RTI) petition filed by Commodore Batra, the RBI had on April 22, 2013, issued a strong message to all banks for credit due amount to affected pre-2006 pensioners and family pensioners with eight percent compensation for the delayed period. But according to Commodore Batra, banks and the Ministry of Defence worked to delay payments............
Uproar in Tripura assembly over chit fund issue
...............Later, Nath and Burman alleged that there was a clandestine transaction of money between the ruling CPI-M and Rose Valley and added, the Agartala Municipal Corporation (AMC) also issued trade license to the company. "When RBI and SEBI did not give them license, why the AMC run by the ruling party issued license for them?", he questioned.
Are company FDs as attractive as they look?
..............Unlike bank FDs, company deposits are not secure. Though non-banking finance companies (NBFCs) are regulated by Reserve Bank of India and others by the Registrar of Companies, you still have the risk of losing your money. These deposits are unsecured, which means that if the company is unable to meet its commitment, you stand to lose your principal. However, in case of bank FDs..........
Fine Future scam: EOW to register complaints against 4 banks with RBI
COIMBATORE: Sleuths of Economic Offences Wing (EOW), Coimbatore unit, have decided to lodge complaints with the Reserve Bank of India against four private banks which allegedly helped Fine Future firm, an online multilevel marketing portal, cheat 1.72 lakh investors across the state to the tune of Rs 818crores..........
When Banks aren’t Safe
It is baffling that every year, government banks write off Rs 15,000 crore of bad debts. Public money is squandered in the advances made to persons or institutions lacking creditworthiness and trustworthiness in repayment of loans. Every rupee collected from taxpayers has to be accounted for properly. That is not being done. The continuing loss in public sector banks has been forcing the government to impose more and more taxes on the common man to plug the mounting losses. The government must wake up before the people’s confidence in public sector banks erodes. Banks must obtain sufficient collateral security while making advances to safeguard taxpayers’ money.
- KV SEETHARAMAIAH, Hassan (ET)
- KV SEETHARAMAIAH, Hassan (ET)
Ratnakar Bank forays into Tamil Nadu
............"As part our expansion strategy, we intend to grow our presence across many more centres in Tamil Nadu. Our first branch in Chennai is a state of art lounge branch, using tablets instead of desktops which help increase the mobility of the branch staff to address customer's banking needs in a relaxed environment and provide them with end-to-end service within the branch,".........
SHG products under one brand, logo in the offing
The Tamil Nadu government has lined up several initiatives to encourage more women entrepreneurs in the state, the most significant being increasing lending through co-operatives, launching a new, common brand name and logo for products made by self-help groups (SHGs), and reservation of 30 per cent of plots for women entrepreneurs in upcoming industrial estates...........
Monday, May 13, 2013
Monetary policy alone cannot revive growth
........Nevertheless, actions with regard to monetary policy alone cannot revive the growth. These have to be supplemented by efforts towards easing the supply factors and stepping up public investments along with continuing commitment of the government to fiscal consolidation. The Monetary authority- RBI, as such, is exercising its obligatory alertness against possibilities of resurgence of inflationary pressures. The RBI has undisputedly evolved itself into one of the most alert monetary pulse readers and acts real time. ............
Monetary policy: Highly subdued, devoid of any nudge
....The overall message one can infer from this policy is that RBI can think of easing monetary policy further only if inflation is brought under threshold level and other requirements which basically come under the domain of the Government to give a thrust to the growth of the economy are in place......
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