........Okay, so this is according to the review done by RBI, and good to see that banks are taking initiatives. But, there is still a good possibility that what the review says, is very different than what you experience. For instance, an absent caretaker at a sensitive ATM location. Or may be you still get torn, soiled notes from the ATM..............
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 30, 2013
Finance Ministry, State Bank of India rescue young couple in distress
.......The couple pleaded repeatedly with the manager of the bank to allow them to access the money, but to no avail. Desperate, they wrote to the department of financial services in the finance ministry and SBI’s head office seeking help, and got a response. “It was an unusual request and not something that we usually handle. It was taken up for action, and the rest was done by SBI,” a senior ministry official said. SBI chairman Pratip Chaudhuri declined to comment on the case.......
Filing tax return is important, but it is not the final step
........While completing the task of filing of ITR is an important milestone, however, the same is surely not the final one. The Tax Office would like to verify your ITR and ensure if all transactions, tax payable thereon have been reported therein and such taxes have been duly paid. Accordingly, it is important to understand the process deployed by the Tax Department, likely outcomes and challenges, if any, which could arise there from and be prepared for it..........
BHILWARA SANGAM UNIVERSITY BBA MBA STUDENTS ATTEND FINANCIAL LITERACY SESSION AT RBI JAIPUR
.......Dr. Sathyan David, Regional Director inaugurated the special session which was arranged for the Sangam students in the Lecture Hall of RBI Jaipur. Highlighting about history of money, evolution of central banking and the role of Central Bank in economies of countries, Dr Sathyan advised the students to read a variety of journals and books, so that they may keep themselves abreast with the latest developments around the world. Two short films on the History of RBI were also shown to the students..............
Read.........
Less grey out there
............Interestingly, while it is commonplace to say that just a fraction of India’s high-value transactions get reported to the taxman—that’s what the Cobrapost sting suggested—the taxman’s data is quite reassuring. Less than a fifth of all transactions captured are taking place without valid PAN details. Whether or not those making the transactions are paying the correct amount of tax is something the taxman has to investigate, but it is clear that it is not just the rich who are avoiding paying of taxes. .............
RBI steps in after rupee falls to 10-month low
The Reserve Bank of India stepped in to prop up the rupee after it fell to a 10-month low to the dollar on Wednesday, according to bank dealers. This, coupled with the strengthening of the euro after a report showed business confidence in Germany unexpectedly rose for the first time in three months in May, helped the rupee recoup 18 paise before closing 0.5% down from its previous close...........
False signs
.......Yes, news on the macroeconomic front — particularly inflation, as reflected in both wholesale and consumer price indices — has been a little heartening. It is also widely anticipated that the Reserve Bank of India could loosen monetary policy a little bit more, and interest rates could decline some more........
Amber light on gold
.............Seen against this backdrop, it is time the RBI reviewed its policy of placing curbs on gold lending and focussed instead on monitoring lenders more effectively to ensure that they adhere to norms on Know-Your-Customer besides following prudential lending norms. A comprehensive review of all regulations at one go, as the working group has suggested, instead of piecemeal announcements as now, may also ensure greater certainty for players operating in this business.
Rein in gold coin sale, banks told
............ “If people want to buy gold for savings, the route should be available for them but for genuine purpose. But if the LTV (loan-to-value) ratio is not restrained, there is a possible risk. Gold loans form a small part of the bank's business and there is the concern of instability of NBFCs,” ....................
RBI wants you buy gold from banks. You will lose twice!
Facing huge gold imports that is worsening India’s balance of payments, the government wants to curb gold buying. However, the RBI is pushing savers to buy gold from the banks. This is one of the worst options for everybody. While banks sell you gold at a premium the RBI does not permit banks to buy them back. You will have to sell them to jewellers and get a lower price!..........
Large NBFC-MFIs may get one more year to comply with 10% margin cap
.........The industry has been demanding that the transitioning time be extended so as to allow the large NBFC-MFIs enough time to comply with the regulation. “We have requested the RBI to give us more time to transition to a 10 per cent interest cap. We are hopeful but are yet to get a notification from the regulator,” Sadaf Sayeed, Chief Operating Officer – Micro Finance, Muthoot Fincorp said.........
Microfinance flows again as fund taps reopen
......“The Reserve Bank of India has now recognised MFIs as a special category NBFC and has issued a circular, giving clear-cut guidelines for the sector. And now with RBI regularly monitoring the sector, investors have got back their confidence. Banks have also funded MFIs as part of their priority sector lending during the last financial year. This in turn has helped in regaining confidence of PEs and VCs,”..........
RBI to hold first auction of inflation bonds on 4 June
......The bonds are being issued with an aim to “protect savings of poor and middle classes from inflation and incentivize household sector to save in financial instruments rather than buy gold,....
The interest rate illusion
..........What now remains to be seen is whether, with inflation well within what has famously come to be known as the RBI's tolerance level, growth will perk up. And, if it does, will infrastructure sectors, in general, and mining, in particular, improve their performance? ........
India poised for gradual economic recovery: OECD
........The organization, a grouping of developed economies, said the Reserve Bank of India (RBI) had the scope to cut policy rates further due to the expected drag from fiscal consolidation and as non-food, non-energy price inflation softens, even as headline inflation remains “stubbornly high”. OECD said the fiscal consolidation road map presented in October 2012 should help lower the general government deficit from 7.5% of GDP in 2012 to 6.5% in 2014.........
Bihar to study laws against chitfund companies in other states
.....The meeting decided to provide training to senior deputy collectors (banking) to keep an eye over functioning of non-banking companies. The training to make these officers aware of existing laws against such non-banking companies would be organised by Reserve Bank of India on June 5..........
Read - ET
Read - ET
Amway India chief likely to appear before ED tomorrow
.......... The Reserve Bank of India (RBI) too issued guidelines which clearly put the activities of Amway under the purview of banned activities like lottery and gambling. Foreign Exchange Management (Current Account) Rules 2000 issued by the RBI brings multi-level marketing techniques and methods under the schedule of banned activities. .........
Increase retirement age of government employees to 62
......Such ad hoc decisions are taken because of specific individuals. There is one particular individual whom government wishes to place in one particular position. Once he is placed there, government wishes him to benefit from increase in retirement age. But to ensure he is placed there, one needs to ensure those who are senior to him get out of the way first. After all, supersession is not desirable. Hence, announce the decision after some people have retired at 60 and exited. This is the way decisions are taken.................
Read - ET
Kisan credit cards: Sushil Kumar Modi asks rural banks to take steps for meeting loan target
...In a review meeting with regional rural banks,Deputy Chief Minister and state's Finance minister Sushil Kumar Modi expressed dissatisfaction over distribution of only 1.30 lakh kisan credit card against a target of 2.53 lakh in 2012-13 fiscal. Modi asked the three leading rural banks of the state--Central Bihar rural bank, Bihar Regional rural bank and North Bihar rural bank-- to take effective steps to achieve the target of distributing Rs 13260 crore loan in 2013-14. In addition to senior officials of the three banks, a representative from Reserve Bank of Indiawas also present at the review meeting, a release from Modi's office said.......
Wednesday, May 29, 2013
Dynamic executive no more...................
I am sorry to advise you of the sad demise, in Pune, on May 26, 2013, of Shri.W.S Tambe, former Executive Director of RBI. He was 86 years old. He was the Executive Director during the period 1979 to 1983 -- the I G Patel era. Though he was in charge of DBOD he had contributed to Staff welfare measures in a big way. A dynamic Senior Executive, Shri Tambe was highly respected, very intelligent and friendly to all. He joined the World Bank after his term in RBI was over.
May his soul rest in peace.
- P.P.Ramachandran (via e-mail)
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