..........."Let's at least commend policy makers both at the central level and RBI for taking tough bold measures last week...and at least there are first signs that the currency has begun to stabilise. I think loose talk about it going to 63-65 has left the public space,"..............
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 27, 2013
Pulling out all the stops
On Tuesday, the Reserve Bank of India sought to reinforce last week’s package of measures curbing liquidity in order to check speculation in the currency markets. In beefing up an already rigorous package so soon, the RBI is sending the message that it will pull out all stops to defend the rupee from falling below Rs.60 a dollar, which, according to market consensus, is the target level.............
I share your concern about rates: PM to tell India Inc
..........Over the past two weeks, the RBI has deployed a variety of measures to block the slide of the rupee against the dollar and other currencies. All its measures have led to a rise in the interest rates for banks and consequently, for industry too. The PMO's position seems to be at variance with the RBI line............
Home coming for Sanjiv Mehta
.......Since his father, S.P. Mehta, worked in the accounts section of the RBI, Mehta decided to become a chartered accountant. He then went on to do an Advance Management Programme at the Harvard Business School..........
Anoop Singh to quit as IMF's Asia Pacific Director
WASHINGTON: International Monetary Fund (IMF) today said its Asia Pacific Director Anoop Singh has decided to quit in the coming months. An IMF veteran Singh had earlier served as special advisor to the Governor of the Reserve Bank of India (RBI). .........
10 tips for students heading abroad
......The RBI regulation states that 'for studies abroad the estimate received from the institution abroad or $100,000 per academic year, whichever is higher, may be availed of.' So you can freely remit an amount of up to $100,000 per annum from India towards the tuition fees. If your fees ...........
History shows India's growth worry will override Re defence
.........."Yes, exchange rate stability is the focus now in the short-term," said a RBI official, declining to be named as he was not authorised to speak to the media. "But that is because, in the long-term, we want to protect growth for which we have to focus on the exchange rate in the short-term." That view point was backed up by country's chief economic adviser, Raghuram Rajan, who told a television channel on Thursday that policy measures were geared to stabilising the currency with "minimal damage" to growth.
The poverty question
.........Even today economists have not been able to offer any solution to accurately identifying who is poor. C Rangarajan is the head of a commission that is yet to submit a report to redefine poverty or how to measure poverty or who should be called poor. We have the Abhijit Sen Committee which is yet to identify who should be entitled to the benefits meant for the poor..............
Friday, July 26, 2013
In Defence of D. Subbarao
 |
| Damned if you do, damned if you don't. That's the lesson RBI Governor Duvvuri Subbarao will take away when his five-year tenure comes to an end in September this year........... |
........... In recent times, inflation has reached double digits only in the early and mid 1990s. Since then it has remained a single-digit figure. One must give credit to Subbarao for bringing down inflation to 4.7 per cent in May this year. Also, Subbarao assumed office a month before the Lehman crisis broke. The world has seen worse since then. The crisis is still lingering.
Is Subbarao really one of the worst RBI Governors?
 |
| ..........So, calling Subbarao one of the worst RBI Governors may not be fair. After all, he was utilising the limited monetary policy tools in his kitty. Measures to bring about fiscal correction and to resolve supply-side issues are to be taken by the government........... |
No to another Guv from MoF - Sitendra Kumar
According
to Arvind Panagariya, professor of economics at
Columbia University, performance of D
Subbarao has been worst in RBI history. Allowing unlimited forex
borrowing, not building enough forex reserves when Re appreciated in
2009-10, increasing rates and not putting enough emphasis on growth are
some of his failures. How are we going to pay for this?
MORAL OF THIS ARTICLE
Never buy the horses from the same place. Don't bring another GUV from Min of Finance. The story will replicate like uncontrollable chain reaction.
- Sitendra Kumar
Subbarao's tenure - More transparency in Monetary Policy - M.G.Warrier
Let me pick up two observations made by the esteemed economist:
"In a way, this new policy started with the current RBI Governor. I am sorry to say, but the timing connects to his tenure. His public pronouncements suggest to me that he really stands behind this policy,"
My view:
Definitely, there has been a shift for the better. More transparency and an effort to force fiscal policy support for Monetary Policy initiatives moving out from an eagerness to comply with signals from North Block to mention two things that separated Dr Subbarao’s tenure so far from the earlier Governors.
Panagaria said,
"We finally provoked him... we said we will question you and you have to answer" instead of just pronouncing on ideas and positions. "Ten years ago. nobody questioned Amartya Sen. Not today. The whole debate has been unleashed," he said.
My view:
An open debate on all issues covered in the latest book ‘An Uncertain Glory’ co-authored by Amartya Sen will do good to India, if the purpose is not to prove X or Y wrong, but to enable Planning Commission and those in charge of development efforts in New Delhi understand the ground level position better and move forward.
- M.G.WarrierSubbarao's tenure - A journey of challenges - DR. T.V.GOPALAKRISHNAN
The present RBI Governor's period is some thing unique in the history of RBI. He took charge when there was global financial turmoil and he had to ensure that Indian Financial system and the economy escaped unhurt because of the crisis. Subsequently, he had the misfortune of fighting both inflation and growth without the support of the Govt and the fiscal policy measures. Not only he failed to get the support but also had to face the displeasure of the Govt in not yielding to its pressures to dance to its tunes. He had to face the humiliation when the Govt set up the FSDC and made the RBI as any other institution like SEBI and IRDA without having any supremacy which as a Central bank of the Country it is entitled to. Adding insult to injury, the Government started giving directions to banks directly bypassing RBI. This gave the banks an upper hand and they gave the impression that they cared for more the Govt than the RBI. The SBI the biggest commercial bank instead of giving full support to RBI to ensure success of its monetary policies opposed RBI's every move to curry favour from the Government.The banking system failed both RBI and the Govt leading to such a pathetic condition of the economy.The banks tried to undercut both and landed themselves in liquidity crisis bringing down deposits, adding to NPAs and creating unprecedented mismatch between assets and liabilities. SBI chief has been against RBI policies and has been some sort of indirect support to other banks in challenging RBI measures. The result is the Govt suffers, the economy suffers, the banking system suffers and RBI has to tackle everything together. But the Governor will prove to be right in his thinking and actions if the Govt and the banks dare to introspect as to what they have done to RBI during the last three years in particular and realise their follies. Governor can keep his head high for his boldness and the challenges he faced to maintain the Reserve Bank's importance and supremacy without yielding to the pressures of the Govt and without having the normal cooperation and support of the banking system. Subbarao's era will have some special place in RBI and Indian Economy's history for the challenges he faced both from the Govt and the banks. The economists will reailse the important role played by RBI during the most inactive performance of the Govt when they introspect in leisure.
- DR. T.V.GOPALAKRISHNAN
Our Indian Adventure – time to explore
Two weeks into our internship and our group have firmly got into the swing of working in India. The big economic news in India at the moment is the devaluation of the rupee and the RBI’s attempts to rectify this matter, which has made our perspective from within the bank particularly interesting, especially for Alex and Cameron who are focusing on Foreign Exchange for their project. No two days have been the same at the RBI, whilst working on our projects we frequently talk to members of staff about the Indian Economy, its future prospects and the cultural shift that is taking place within Indian society. Each pair has a mentor for their project, with mentors coming from a variety backgrounds ranging from Mr Mugunthan, a Harvard graduate, to Mr Murthi who spearheads projects introducing banking to India’s rural areas. Our projects cover a variety of topics; Phil and Jess are focusing on Microfinance and its effects on India’s banking sector, Jennifer and I are researching Poverty Alleviation and Harriet and Ben are studying the RBI’s schemes to improve Financial Inclusion......................
Read...........
(A team of students from Newcastle University are currently doing internship at the College of Agricultural Banking, Pune)
(A team of students from Newcastle University are currently doing internship at the College of Agricultural Banking, Pune)
Setting up of RBI office opposed
Imphal, July 25 2013: Muslim Council Manipur (MCM) has opposed the Government's move to set up a branch office of Reserve Bank of India (RBI) at Mantripukhri. The Council has urged the Government to look for another locality for the said purpose in view of the presence of mosques and temples at the area where the Government is planning to acquire land..............
Read..........
Read..........
Police break up protest by women in Imphal
The police fired teargas canisters to break up a protest by women on Wednesday against a government plan to acquire land for building a Reserve Bank of India complex at Mantri Pukhri here. The women, who had been protesting since Monday, torched a police jeep.................
RBI directs rural banks to become member of credit info companies
"..............it has come to our notice that a large number of RRBs are not members of any Credit Information Company as required under the Act. Therefore, immediate steps may be taken by RRBs to become members of at least any one CIC," RBI said in a notification. Credit Information Companies (Regulation) Act, 2005 became operationalised in 2006. As per the Act, every credit institution has to become member of at least one credit information company within a period of three months from commencement of the Act or any extended time allowed by the Reserve Bank on application......
Consumer protection – agenda for inclusive growth - Dr.Deepali Pant Joshi
Address by Dr Deepali Pant Joshi, Executive Director of the Reserve Bank of India, at the National Seminar on “Consumer protection – agenda for inclusive growth”, New Delhi, 24 July 2013
........Consumer empowerment is a central goal. Education of consumers through information disclosure or through consumer literacy is utilized as a means to even out asymmetries of bargaining power between consumers and financial services providers. In the area of consumer credit and financial literacy, investment empowerment relies on the consumers’ ability to understand complex financial products and their knowledge and experience of using such products and services..............
A Poverty Lens on Financial Inclusion – Report
The report looks at the poverty profile of microfinance clients in the state of Karnataka and finds that while microfinance providers in Karnataka are reaching out to the poor, there remains ample room to improve outreach to the poor and this improvement can come about if the practitioners, regulator and other stakeholder create an enabling environment for outreach to the poor. The report also discusses the factors that can influence outreach to the poor including regulations promulgated by the government and the RBI..........
The poverty question
.........The fact is this that India has a reservoir of economists who are experts at speaking English. I do not know what useful purpose is being served in discussing Bhagwati versus Sen. All the economists are respectable, well educated but have no idea of how to remove poverty................
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