Cases of getting fake currency notes are coming from across the country. This is an alarming situation for the banking system. Getting counterfeit currency notes from ATMs shows the strong flow of fake notes in the economy. This surge finally incurs loss to the common man who brings out money from ATMs. Banks do not take the responsibility of such fake currency dispenses through ATM until concrete evidence is available. Since, it’s very difficult to prove the source of fake notes, so, at last the person gets nothing even after a complaint..................
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.
Wednesday, June 12, 2013
RBI's hidden hand brings Indian rupee off record low
.............."Finally the central bank stepped in. The selling was not huge but enough to cause a rebound in the rupee," said a senior dealer with a state-run bank, who declined to be identified given the sensitivity of the matter.............
A long view of the rupee
.......there appears to have been some reluctance on the part of the Reserve Bank of India (RBI) to retrench a part of its foreign exchange reserves to stall the rupee’s depreciation. Left to itself the economic situation seemed to warrant depreciation of the rupee, and even moderately good capital inflows did not help to stall that decline. Thus, a fundamental weakness in India’s balance of payments seems more important than inflows and outflows of foreign capital in influencing the course of the rupee............
In Young India, Re Now Almost a Senior Citizen
All
the king’s men stepped out on Tuesday to prop up a battered rupee and
deal a blow to currency speculators. As the rupee plunged to a new low,
the government’s Chief Economic Advisor, Raghuram Rajan, said India is
planning to float either sovereign or non-resident bonds as well as
liberalise rules on foreign direct and portfolio investments..............
Read - ET
Read - ET
Government to take 'warranted' steps to stop rupee fall: Raghuram Rajan
...."We will continue to implement measures to ensure that portfolio investor inflows are enabled and encouraged and some of these measures will be announced very shortly. "In the coming weeks, we will recommend to the Cabinet policies to enhance FDI limits on number of areas all this will help not just in short-term objective of financing the CAD safely but also in the longer term objective of ensuring sustainable growth,"........
Arrest That Fall
.............But
the RBI must desist from intervening to prop up the rupee. The falling
rupee is emblematic of our economy’s troubles where dollar payments
exceed dollar inflows, growth has slowed and inflation grown. Further
depreciation may lie ahead. First, this could work in India’s favour,
helping correct trade imbalances by making.............
Sinking rupee, failing economy
..........Also, the RBI would find it hard to reduce the policy rate when it announces its mid- quarter review next week. Currency depreciation has made it hard for it to cut rates because it would make capital inflows further unattractive and would further add to inflationary pressures. The government is trapped in a cul- de- sac. It cannot clamp down on imports for fear of further slowing down the economy and violating multilateral trade agreements. It cannot absorb the higher costs of..........
Dare we think capital controls to save the rupee?
.........So rather than wait for the rupee to fall even more precipitously or even gyrate like the Japanese yen, the government must step in and do something no government would like to do: impose capital controls.............
The rupee responses Why?
......The Govt has failed to take appropriate and timely measures to contain the import bill by containing the demand for gold when it was reaching the peak, improving the supply of coal by augmenting the production of quality coal domestically, creating an atmosphere to attract flow of funds from abroad by its taxation and ease of doing business through better administration and governance,..............
Read the views expressed by Dr.T.V.Gopalakrishnan
Read the views expressed by Dr.T.V.Gopalakrishnan
Does RBI lack firepower to defend Indian Rupee
......A few billion Dollars in sustained intervention is warranted if RBI's efforts have to bear fruit in a meaningful sense. A few billion! But given the current state of affairs, RBI could only shell out only some $500 million. This cannot sway the markets beyond a point to the advantage of Rupee. In other words, RBI lacks the firepower to intervene in FX markets as of now..........
Rupee reaches record low, but here’s why govt is not worried
......The ministry’s chief economic adviser, Raghuram Rajan, said authorities, including the RBI, the SEBI and government, were ready to act if needed to stop a runaway currency market. Rajan argued that the extent of the rupee’s slide had taken it into undervalued territory. On a trade-weighted basis, however, the rupee is fairly valued to slightly over-valued. In real effective exchange rate (REER) terms, the rupee was at 105.74 in May against six of its key trading partners, above the 100 that denotes fair value.........
'EVM cards are more secure than magnetic strip cards'
.........Credit/ debit card skimming is financial industry's one of the major concerns and often results in forms of identity theft, credit card fraud or bank fraud. The magnetic stripe credit and debit cards store user's financial data in static format. This data is vulnerable to be copied during offline transactions by skimming devices, which can be used to create a clone card and make unauthorized offline transactions...................
Bank problems? You can file an online complaint now
..........How does the complaint mechanism work? Any individual, whether a customer of that particular bank or not, can lodge grievances against a bank using the SPGRS. Under this system, bank websites are to have an ‘SPGRS’ icon leading to an online form where grievances can be filed. Physical complaints received through complaint registers at branches are to be entered into the SPGRS immediately. The advantages of the SPGRS are numerous...........
Card issuers in a fix over Aadhaar
Credit
card issuing banks are in a fix over Reserve Bank of India’s move to
consider Aadhaar as an additional factor for authentication of credit
card transactions in shops. The reason — a huge investment in upgrading
credit card swipe machines and prospects of losing customers in states
where Aadhaar enrolment has been slow. RBI had constituted a
working group headed by Pulak Kumar Sinha, general manager, State Bank
of India, to study the feasibility of Aadhaar as an additional factor
for authentication of card-swiped transactions and the panel is set to
submit its report by the month-end............
Read - TOI
Read - TOI
Fewer customers revolving their credit card dues
.......It is estimated Indian customers who revolve their credit card payments account for 26 per cent of the total customer base. In terms of the amount, credit card dues were estimated at 52 per cent, with the rest being carried forward, said an industry official..........
HDFC Bank pitches toxic product to NRIs
Dr KC Chakrabarty, Deputy Governor RBI, tells customers to be wary of higher returns offered by banks. The global consultant who received this was certainly sceptical and checked with a fund manager who, in turn, sent it to Moneylife with this comment: “Is this real or is HDFC Bank pulling a 3-card trick?” A simple reading of the email suggests it is pitching a fixed deposit with a 5-year lock-in. We asked the Bank if the email was genuine...........
Axis Bank, HDFC Bank and ICICI Bank in focus after RBI penalty
Private sector banks Axis Bank, HDFC Bank and ICICI Bank will be in focus after the Reserve Bank of India (RBI) on Monday, 10 June 2013, said it has imposed a monetary penalty on these three private sector banks for violating Reserve Bank of India instructions. A penalty of Rs 5 crore has been imposed on Axis Bank, Rs 4.5 crore on HDFC Bank and Rs 1 crore on ICICI Bank............
Read | Business Standard
CAREER IN PUBLIC SECTOR BANKS
............In the last two decades Public Sector Banks in India have witnessed a transition from traditional banking to modern technology driven banking. Exposure to competition has made these banks re-engineer and re-structure their processes, systems and product line. After economic liberalization these banks have been given enough freedom to do so. However, for various matters these are required to follow guidelines issued by Ministry of Finance, Reserve Bank of India and Indian Banks Association. Post nationalisation, the Banks were asked to open more branches in rural areas. Large number of people were recruited to man these newly opened branches. Expanded network gave a new identity to these banks and millions of new customers came to the fold of Banking. The business of Banking moved from class banking to mass banking............
Are you FIT enough to be a bank director?
......“There is an urgent need for making the Boards of banks more contemporarily professional by inducting technical and specially qualified personnel. Efforts should be aimed at bringing about a blend of 'historical skills' set, i.e. regulation based representation of sectors like agriculture, SSI, cooperation etc. and the 'new skills' set, i.e. need based representation of skills such as, marketing, technology and systems, risk management, strategic planning, treasury operations, credit recovery etc.”.........
Tuesday, June 11, 2013
Distinguished intellectual former Deputy Governor no more...................
- P.P.Ramachandran (via e-mail)
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