........The RBI has been very aggressively creating awareness through its advertisements, poster, radio announcements and what not, regarding such fake emails. In fact, the apex bank runs a ticker on its website, urging the public in general to be aware of fictitious offers. Read the RBI notification here. We suggest when you get an email like this, you should simply ignore it.................
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.
Friday, July 19, 2013
RBI ask banks to collect counterfeit notes and give credit to customers
...............According to RBI, reporting and detection of counterfeit notes has not improved on its expected lines. RBI said although 90% of the currency chests are with the public sector banks, they account for reporting of a mere 10% of counterfeit notes, while private sector banks with less than 10% of currency chests are reporting 90% of such cases. The central bank also warned that it would penalize banks that do not report counterfeit notes in its branch or currency chest. Banks would be penalized if found holding counterfeit notes in its branch or currency chest without reporting it to RBI or Police, during an inspection by the RBI. “It will be construed as willful involvement of the bank concerned in circulating counterfeit notes, and appropriate penalty strict regulatory measures against the bank including stringent disciplinary action will be imposed by RBI,” the circular said..............
SBI, Xpress Money launch dual-use remittance card
...........The State Bank Xpress Money Card, which will initially be available in Kerala and eventually cover other states, is a product of partnership between Xpress Money, State Bank of India and UAE Exchange and Financial Services Ltd. The card is a prepaid product which combines features of both debit and remit as it allows users to receive remittances from abroad and can also be used at ATMs and for e-commerce transactions..............
Ezetap takes on peers with low-cost payment device
Bangalore-based Ezetap has launched a new mobile point-of-sale device that will cost a lot less than similar products in the market, while meeting global security standards and RBI guidelines...........
Chidambaram leaving for Moscow to attend G20 ministerial
.....The G20 meeting of the finance ministers and central bank governors beginning July 19 will also be attended by RBI Governor D Subbarao and Deputy Governor Urjit Patel. The finance ministers of BRICS member countries are also scheduled to meet on the sidelines of the G20 ministerial meeting as a follow up of the Durban Summit earlier in March,............
Central bank turns cautious on monetary tightening
..........After some liquidity-tightening measures aimed at increasing borrowing costs, the Reserve Bank of India has turned cautious. Market experts said the central bank did not want interest rate to rise sharply as that could create more problems for the economy...............
RBI strikes fresh blow to worst bond sales in six years
Mumbai: Rupee-denominated bond sales were already having their slowest start to a month in almost six years before India wrecked prospects of a revival by unexpectedly raising interest rates..........
Dalal Street fears CRR hike as RBI manages to sell just Rs 2,500 crore worth of bonds
The Reserve Bank of India's attempt to squeeze liquidity in the system to shore up the battered currency suffered a setback on Thursday. It managed to suck out just a fifth of what it had planned, raising the spectre of harsher measures. If the central bank still believes that excess liquidity is leading to speculation that the rupee will weaken more, it may raise the cash reserve ratio (CRR), the portion of deposits banks keep with RBI.............
RBI measures losing steam
..........The most significant factor, they cite, is foreign investors’ faith in the currency and the efficacy of recent measures taken to attract foreign investment. The equity market has suffered due to massive flight of the foreign capital. The brokerages point out the RBI and the government cannot overlook the fact that foreign institutional investors' equity portfolio is at $250 billion which is many-fold larger that $35 billion parked in debt bonds.
How Humble Post Offices Can Save the Rupee - Charan Singh
............One
such avenue could be inflation-indexed small saving instruments (IISSI)
to be sold through the network of more than 1,55,000 post offices, and
bank branches. These IISSI could be an extension of existing instruments
like small savings accounts, recurring deposits or public provident
funds with a regular interest reset clause, as envisaged in the ‘Report
on System of Administered Interest Rates’ (Chairman: YV Reddy, 2001).
Existing national savings certificates (NSC) could have an
inflation-indexed option or even introduction of inflation indexed
special bearer bonds. And more importantly.................
RBI move bad for industry, hopes quick reversal: Naina Lal Kidwai
......."The other side of it is that it makes liquidity tight which means access to funds becomes harder which is RBI's intention. Hence, it is de-facto interest rate rise without being an interest rate rise," she said. "So, to that extent its not good for the industry. So, I hope it does not stay forever," she said, adding, the steps are temporary in nature.......
Story Difficult choice, doubtful outcome
......The central bank has generally followed a ‘hands-off’ approach in the currency market since the bout of rupee depreciation started in May. The extent of currency intervention and other measures has been small, and policymakers tried to explain that the down-move in the rupee is part of a broader emerging-market currency-depreciation story. However, the recent RBI measures present a very different approach to the issue..............
RBI’s Failure to Defend Rupee Calls for a Bazooka
.........Indeed, the spike in interest rates militates against Subbarao’s theory
of ‘Indian exceptionalism’ which essentially is that unlike text book
cases, foreign
flows from equity funds into India rise when interest rates fall
because it would boost economic growth and corporate earnings. “The
recent RBI moves do not ensure an effective curbing in pressures on the
rupee since they can potentially lead to FII outflows, especially in the
current backdrop of a prolonged phase of weak growth,”.............
A govt can neglect growth at its own peril: Naina Lal Kidwai
..........It is a very big fear right now that rates could actually go up. That would be horrible for industry and growth because industry has long been asking (for) interest rates to come down. RBI began bringing down the rates, but unfortunately banks did not drop the rates because of various reasons. RBI’s recent step fell short, fortunately, of putting interest rates up. The effect it has is reducing liquidity in the market, which will bring its own pain. But we have to hope that government and RBI don’t believe putting interest rates up is the only way to stop the falling rupee.............
Gold loan NBFCs plan public offer of nonconvertible dentures
.........At a time when gold loan business is showing a tepid growth with a fall in gold prices, NBFCs have no option but to go for public offer of non-convertible debentures and to list them on stock exchanges to raise money. They have to begin the process of converting their unlisted debentures to listed ones as they mature. .......
Plugging regulatory gaps
..........So now that Sebi has been empowered to act, it needs to be staffed with people with the appropriate level of expertise in different aspects of the law and accounting. It is this that needs to be done to rid India of financial sector scams and not, as the FSLRC report recommended, merging all non-RBI regulators into one.
SC issues notice to Centre, WB, CBI, RBI on Saradha chit fund scam
.......On the chit fund business run in illegal manner in other states, the petitioner said, "Millions of people have been cheated by the chit fund companies. There is no one to regulate their activities in the absence of coordination among central authorities like SEBI and RBI." It requested the court to examine the necessity of banning chit fund business...........
Bank of Maharashtra asked to pay for mediclaim loss
.........., “It is important to note that the cheque, which was issued by Kothari was not for commercial transaction, but for securing his life. Hence the objection raised by BoM cannot be accepted. The case shows the bank’s inefficiency. Kothari is a consumer and is entitled for compensation.”
SBI associate bank unions vow to intensify protests over merger
.........In fact, officers of the five banks under the umbrella of the Associate Bank Officers' Association (ABOA) have their reservations on the issue. General Secretary of ABOA (SBH unit) Harshavardhan Madabhushi said, “When a big bank takes over a small bank, there are natural concerns of step-motherly treatment being meted out to the merged entity's employees.” He reiterated fears of bank employee unions that there will be rationalisation of branches post-merger, possibly leading to job losses..............
C M Vasudev re-appointed as HDFC Bank non-executive chairman
.......Vasudev, who joined the Indian Administrative Service in 1966, has worked as an Executive Director of World Bank, representing India, Bangladesh, Sri Lanka and Bhutan. He served the Ministry of Finance for eight years in various capacities, and was also made the government nominee director on the boards of State Bank of India, IDBI, ICICI, IDFC, NABARD, National Housing Bank and as well as on the Central Board of the Reserve Bank of India......
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