Not the next RBI Governor

............ Chidambaram made it clear current Governor D Subbarao was not in the race as he wanted to "move on". Asked about the names of other likely candidate, Chidambaram joked, "I can tell you (Namo Narain) Meena, (Jesudasu) Seelam and I are not eligible.".............

Read | Business Standard

Who should be the next RBI Governor? Vote !

................After Finance Minister Palaniappan Chidambaram made it clear that Subbarao is not keen on an extension, the search intensified to fill the post of India’s most competent banker.................

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High CPI due to cyclical, distributional problems: Subbarao

.......Talking on the subject 'Dilemmas in Central Banking', Subbarao said treading the growth-inflation balance, managing the impossible trinity and communication whether when, what and how are the three major dilemmas of the Banking Regulator. On the key dilemma, which is growth-inflation balance, Subbarao said, the three objectives of the Monetary policy are to contain inflation, stimulate growth and to ensure financial stability. In our context, the RBI tries to get the right balance............

Read | Business Standard

Reserve Bank too erred in forex scam

............But the RBI in its affidavit to the Supreme Court in FIMMDA appeal had pleaded that this CBI suggestion should not be accepted. “This was strange since RBI’s own circulars have prescribed that such frauds should be referred to the CBI”, said a seasoned chartered accountant of Coimbatore.....................

Read - Deccan Chronicle

PCBs to be stripped of banking powers

............The circular has been issued on the basis of the recommendations of the Prakash Bakshi committee constituted by the Reserve Bank of India (RBI) to streamline the functioning of credit cooperatives. The circular says the PCBs will function as business correspondents of the district and State cooperative banks. The share capital mobilised by them by way of share-linked capital of the loans will get transferred to the books of the district and State Cooperative banks. They will function as independent entities out of their own fund and earn income or service charges for rendering the services listed out by NABARD........

Read - The Hindu

Plan panel objects to govt funds for Post Banks

........Officials said the Commission is of the view that the Rs 500 crore needed as initial paid up capital for launching Post Banks might not be feasible at the moment because of overall tight fiscal conditions. "Though in-principle the Commission does support the proposal, but current weak financial condition is acting as a hindrance," a senior official said..................

Read | Business Standard

Stable exchange rate is important to attract investments: Subbarao

................Though some say the RBI has failed in taming the inflation but managed to pull down growth, the reality is that the headline inflation, measured by the wholesale price index, came down from double-digit levels to around 5 per cent. But consumer price inflation is still ruling high, which is mainly due to certain distributional issues. “I do not agree with the contention that RBI is obsessed with inflationary pressure. We have to keep in mind inflation, financial stability, and, at the same time, growth. We are concerned about all the three,” he said. But, in the current context, containing inflation is the prime agenda for the bank,..............

Read - HBL

SBI chief, Pratip Chaudhuri, blames government for rising NPAs

 Pratip Chaudhuri, chairman of the country's largest lender State Bank of India, blamed the government's tardiness in clearing projects and supply of coal - or the lack of it - as the reasons behind rising sticky loans in the banking sector. Speaking at a closed-door meeting between bank chiefs and senior Reserve Bank of India officials, Chaudhuri stoutly defended the banks, arguing they alone cannot be blamed for the spike in bad loans, which have hurt their balance sheets...............

Read - ET

A tale of two economies

............This collection of essays comes at a time when the roles of India and China in the global economic order and the state of their domestic economies are being widely debated. These essays will provide significant pointers to policymakers, governments and academics alike about the various dimensions of economic reforms, industrialisation and inclusive development in India and China. This collection is a timely intervention as it questions several conventional assumptions in policy circles in India about the paradigm of development that is best suited for the country................

Read | Frontline

Avoid borrowed resources from international markets

Raising funds from overseas may be easier but at what cost? Can the economy bear such losses? The cost will certainly outweigh the benefits. Instead, the FM would do well to raise domestic savings and improve the investment climate to attract inflows................

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A sense of purpose

After RBI Governor D Subbarao contributed to the falling rupee on Tuesday by saying he thought this was the wrong time for a sovereign bond and that India didn’t need to go to the IMF for a line of credit, finance minister P Chidambaram did well to say the government has plans to get PSUs to raise funds abroad as well as to target NRIs and various sovereign wealth funds (SWF) to bolster India’s forex reserves................

Read - FE

NRI bonds fraught with legal challenges, says SBI chief

To bolster India's foreign exchange reserves and curb the sharp slide in the rupee, issuing long-term bonds to non-resident Indians in international currency is being considered. However, State Bank of India (SBI) Chairman Pratip Chaudhuri says this is an option fraught with legal and regulatory challenges......................

Read | Business Standard

Why Chidu’s quasi-sovereign bond issue is a stupid idea

........A case in point is the issue of whether the country should issue a sovereign bond abroad to shore up foreign exchange reserves. In the alternative, given the Reserve Bank of India’s (RBI’s) opposition to the idea, the finance minister said, we could consider a quasi-sovereign bond issue (or issues) by state entities such as banks or cash-rich public sector companies. “All options are on the table”.............

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Here's how Telangana bifurcation impacted RBI bond auction

The proposed bifurcation of Telangana from the state of Andhra Pradesh (AP) impacted the auction pricing of the latter's development loans at the Reserve Bank of India (RBI) on Wednesday. Investors got a higher premium on the cut-off yield at 9.84 percent for tenure of ten years............

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RBI's monetary activism may take a toll on equities too

.......The outlook has turned bearish as there are few places to hide at the moment. Defensives are back in focus as staples and technology continue to report double digit growth, even as others are reporting muted performance. Financials have been downgraded by most analysts as they believe “monetary activism” will hinder the sector's growth and profitability. What’s worse is that few in the market believe that RBI will roll back its tightening measures in a calibrated way...............

Read | Business Standard

Shielding the Rupee from Alien Threats

......Clearly, given the level of the Indian economy’s global engagement, it is futile for India’s central bank to try and manipulate the exchange rate in any particular direction. What it can and should try to do is to allow the market to price in as much information as possible, so that ...............

Read - ET

Display cash non-availability at ATM before transaction: RBI

....."The message regarding non-availability of cash in ATMs should be displayed before the transaction is initiated by the customer," the RBI said in a notification. Such notices may be displayed on the screen or in some other way. Banks should also highlight the ATM ID within the premises so that customers can quote it while making complaints or suggestions, according to the notification. The RBI said despite a number of instructions to banks to enhance customer service and handling of complaints, certain operational issues continue to persist. ...........

Read - ET

ING Vysya Bank launches premium debit card

....."The ING MasterCard Premium Debit cards with their superior benefits and innovative reward points system are a wonderful example of this commitment. We look forward to a long and fruitful partnership with ING and to many other such innovative products in the future." The card will be available in three variants -- Titanium, My World and World Exclusive -- and customers can choose the look and feel of the card from a selection of 50 images covering segments like sports, entertainment, lifestyle the company said............

Read - ET

Kotak Mahindra Bank to open 100 new branches in FY 2014

......."Expanding branch network is expected to boost premium banking business. There is untapped potential for premium banking business in smaller cities," ...........

Read - ET

Inauguration of Lead District Managers' office

........The office of lead District Managers’ was inaugurated by Dr Deepali Pant Joshi, Executive Director of Reserve Bank of India in presence of V R Iyer, Chairperson and Managing Director of Bank of India on July 31. The function was held at Zonal Office of Bank of India at Fort, Mumbai for inauguration of LDM’s office of Mumbai city and via video conferencing for the Mumbai suburb district in presence of senior functionaries of RBI, NABARD, BOI and the District Collector...........

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