...........RBI has suggested a methodology for estimating the potential losses. A bank would calculate net forex exposure of a corporate client and then assume the worst rupee fall versus the US dollar, based on data over the last 10 years. The bank would then state that loss as a percentage of the corporate client’s earnings before income tax and depreciation, and that figure would dictate the provision needed. The additional capital requirement may see a corporation’s borrowing cost increase 20 bp to 130 bp. RBI may well require banks to make the calculations every quarter, and even on a monthly basis in volatile times. The central bank rules, once implemented, may force corporations to hedge their exposure especially because the rupee is expected to remain relatively week for some time.............
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.
Saturday, July 13, 2013
Time for a rate hike
....This does not mean the country’s severe growth contraction does not need to be addressed, just that the burden of that task, as always, rests on the government. RBI needs to focus on fighting inflation and getting the macroeconomic fundamentals right. An interest rate increase is the medicine for that malady.
Sinha's confusion?
This refers to the report, "Situation now is same as the one in '91" (July 11). I am amused to read Yashwant Sinha's statement, "They [the Reserve Bank of India and the government] should not fight the markets...". Last year, Sinha, while talking a......
RBI lead bank scheme for financial inclusion extended to metros
.........The shift in policy is to address the problem of financial exclusion among the poor and disadvantaged sections of the community in the major cities also. The RBI had indicated this at the time of its annual policy announcement in May this year...................
Indian economy in grim situation
..........“Although Chidambaram has been the new finance minister for the last 10 months yet his initiatives do not seem to be working out well. While, on the domestic front nothing has much changed on the ground, globally too things have not improved for India.” ...........
Shocker! Factory output declines, inflation rises; RBI hands tied
........“Economic policies are important but price stability is a dominant objective of the monetary policy. Exchange market is also important. All these factors will determine the monetary policy. The direction for the fiscal policy is clear. Fiscal deficit should remain under control,” .........
The Good, The Bad And The Ugly
.......The
rupee depreciation of over 11% since is going to make inflation look
worse. What makes the task tougher for policymakers is that there is
little scope to cut interest rates to perk up demand and investment. The
three set of statistics were released at a time when key economic
ministers – P Chidambaram and Anand Sharma – are in the US holding
roadshows to attract investment..........
IRDA may allow banks to be insurance brokers
...... Allowing
banks to become brokers would require an overhaul of regulations for
brokers because current norms require that broking activity cannot be
done departmentally by a financial services firm and anyone wanting to
get into this business will need to float a separate company for the
purpose..............
Read - TOI
In joint a/c, liability is on person signing cheque: SC
......"We also hold that under section 138 of the NI Act, in case of issuance of cheque from joint accounts, a joint account holder cannot be prosecuted unless the cheque has been signed by each and every person who is a joint account holder," a bench of justices P Sathasivam and J S Kehar said. "This court reiterates that it is only the drawer of the cheque who can be made an accused in any proceeding under Section 138 of the Act," the bench further said............
Read - Business Today
Forex reserves drop for third week
India's foreign exchange reserves dropped sharply for the third consecutive week ending July 5, 2013. The forex reserves were down by $4.48 billion to $280.17 billion as the central bank continued to sell dollars to contain the volatility in the rupee..................
NABARD celebrates foundation day
Jammu, July 12 : The National Bank for Agriculture and Rural Development (NABARD) celebrated its 32nd foundation day on Friday at its regional office in Jammu.
BG Mukhopadhyay, CGM Nabard, J and K Regional office, informed that the NABARD was set up as an apex development financial institution with a mandate for agriculture and rural development in the country on July 12, 1982. Over the years, NABARD has added numerous other functions viz, credit planning, financing and monitoring of rural infrastructure, refinance to banks, institution building, supervision, watershed and tribal development, consultancy and micro-finance (through its subsidiaries). NABARD is also playing an important role in the ‘Financial Inclusion’ agenda of the government, which is considered necessary to pave way for the electronic benefit transfer of subsidies and other incentives to vast majority of population in the country.
T Haq Director, council for social development, said the state was lagging behind in many important socio-economic parameters such as the NSDP per capita, employment rate, agriculture productivity, irrigation and roads. He established the need for inclusive growth under State’s GSDP was 21 per cent as against the all-India average of 14 per cent, thereby indicating the importance of the sectors to economy of the state. Asgar Hussain Samoon, Secretary and Commissioner, Agriculture Production Department, was the guest of honour on the occasion. He appreciated NABARD’s concern for promoting agriculture and allied sectors in the state and profusely thanked the chief guest for his valuable inputs, which would be to facilitate development of future strategies and actionable points for all stake holders. Other invitees included representatives from RBI, SBI, PNB, EDB, JKGB, Cooperative Bank and NGOs.
The Tribune, Chandigarh
Badal asks Nabard to dole cheaper loans
Punjab Chief Minister Parkash Singh Badal on Friday asked the National Bank for Agriculture and Rural Development (Nabard) to provide finance to the allied farming sector at interest on a par with agriculture. This would be to give impetus to agriculture diversification program. He also demanded a rate cut on refinance from 4.5 per cent to 2.5 per cent. On the 32nd foundation day of Nabard here, Badal said Nabard had been providing refinance at 2.5 per cent, now increased to 4.5 per cent.............
Retirement Savings: How to grow and protect your nest egg
..... “Retirement planning is very complicated because there are too many unknowns, many of which need to be assumed.” The significant and most important factor that would influence how much you are able to accumulate is where you invest. Out of the various factors that one can control and which one cannot, controlling how much you can save and where you invest can significantly influence your corpus..........
India Gold shortage: Hoax or a pending nightmare?
The campaign measures are laudable if they are being executed in the right spirit. But gold physical prices at lows due to the recent price declines, the sellers of bullion and coins may have been experiencing relative losses in sales, one may get sceptical. This factor may also be forcing them to initiate a campaign advocating crunch on sales..........
Axis Bank launches its first overseas subsidiary
.......Axis Bank UK Ltd, which got a licence from the UK regulators on 19 April, has set up a branch in King Street in London, through which it will accept deposits and make advances and investments, the bank said in an emailed statement. “The bank would participate in corporate banking, retail banking and leverage business opportunities available in the UK and the rest of European Economic Area (EEA) through its London branch,”...........
Srei Infra hopes to roll out ATMs on trial basis by Dec
.....Srei had received in-principal approvals from the apex bank for setting up such ATMs in December 2012. As a pre-requisite to getting the final nod, Srei had to receive clearance from the Foreign Investment Promotion Board (FIPB) as the company has foreign investments. The RBI had, in June 2012, permitted non-bank entities with net worth over Rs 100 crore to own and operate ATMs, particularly in Tier III-VI towns............
Karur Vysya makes remittance easier
..... This offers the remitter the facility to instantly credit funds into the beneficiary’s account in any bank in India. Both the beneficiary and remitter receive free mobile and email alerts instantaneously.........
Vijaya Bank launches Rupay branded Debit Cards
......Vijaya Bank has launched its Rupay branded Debit Cards which is an Indigenous payment and Settlement system developed by National Payments Corporation of India. Vijaya Bank’s CMD H S Upendra Kamath presided with A P Hota, CEO, NPCI, being the chief guest.
Yes Bank sees corporate rivalry behind family feud
.....Yes Bank management is reportedly considering two options right now. They may approach the Reserve Bank of India (RBI) trying to convince the central bank of a possible corporate hand. Alternatively, they would knock the door of competition commission of India (CCI).............
Friday, July 12, 2013
RBI cautions public against investing in illegal schemes
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| Villagers perform a dance while welcoming RBI Governor in Khurda village |
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