An organisation fighting for victims of the 1984 anti-Sikh riots has demanded the revival of the scheme of extending bank loans to affected families at 1% rate of interest. The scheme had lapsed in 1998. "We have been pressing the union government to take up the matter with the Reserve Bank of India as there are many cases in which families did not get subsidy under the scheme,".........
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.
Tuesday, August 6, 2013
Monday, August 5, 2013
Millions of notes not printed in mints land in RBI vaults
..........Take the Rs 1,000 notes. The redesigned bill was introduced in October 2000. Ever since, the two authorized mints — Bharatiya Reserve Bank Note Mudran Private Limited, Bangalore, and Currency Note Press, Nashik — have printed a total of 4,452.3 million Rs 1,000 bills. But RBI records show that it has received 4,462 million notes, an excess of 9.7 million notes. That means the RBI has received Rs 970 crore more than what was actually printed...............
Changing the Industrial Geography in Asia
........The book under review is the final volume in a series on East Asia’s prospects that has been cosponsored by the Government of Japan and with the support of the World Bank. The focus of this volume is on China and India — the prime movers who will play a dominant role in the coming decade. The changes in industrial geography as also trade – patterns since the mid-1990s have been spectacular. The analysis in this volume is based on the thermodynamics of industrialization with special emphasis on trade, foreign direct investment and building up of technological capabilities..............
Read - FPJ - Book Review by P. P. RAMACHANDRAN
IN LIGHTER VEIN...............
My View on "RBI Governor resigns"
IN LIGHTER VEIN…As one who has been supporting an extension for Dr Subbarao as Governor beyond September 5, 2013, this is good news for me. As an insider, he would have been at best considered for a one year extension. Now that the ‘RBI employee tag’ is removed, he becomes eligible for being considered for a fresh tenure of minimum 5 years from September 5 as I heard he has already expressed his willingness to continue as ‘caretaker’ till that date. As the selectors are all above 65, getting over the age-hurdle will not be a problem. Meanwhile let us share one full pack of CHARMINAR, if (Statutory Warning: smoking charminar is injurious to health of those who do not smoke) it is still available in the market !
- M.G.Warrier
The impact of Subbarao's resignation on the banking sector should be considered by Central Board of Directors in its meeting to be held on August 8, 2013 over Hyderabadi Biryani. Will the signature dish from Andhra still be called Hyderabadi Biryani or renamed? What will the Biryani from Seemandhra or Rayalaseema be called? On the Charminar at Hyderabad, one Minar should exclusively belong to Seemandhra and Rayalseema each and two may be appropriated by Telangana as a memento. Hope Subbarao must have used his powers to unilaterally issue orders on PENSION UPDATION before tendering his resignation.
- Sitendra Kumar
The next RBI governor
..............In India, there is no debate on the candidates’ academic or policy credentials. The government wants it that way. It is not the actual framing and conduct of monetary policy that matters most: a potential Governor’s most important qualification today is........
Next RBI Governor - He K(h)an make it...........
My View on Next RBI Governor - Why not insider?
I wholeheartedly endorse the views expressed by Mr. Unny. At this time of crisis the need of the hour is an insider to guide the RBI on the path. The Govt. Has experimented with foreigners, ICS, IAS, Economists et al. Some fared extremely, some so so while some failed to make a mark. So why not give an insider a chance? Of the present DGs the name that comes to my mind is that of Mr. Khan. He has the necessary academic qualifications and rich experience the bank. He would be an blend of youth and experience as well as pragmatism. The above views are of course without disparagement to the three Deputy Governors.
- B. Kamath, Retd. CGM
Sign of winds of change.............
Now that DMD's post for NABARD has been advertised for which, inter alia, eligibility is as follows;
CGM of NABARD, SIDBI, IDBI = Joint Secretary of Govt of India = GM of nationalized banks. RBI is nowhere. Does It means CGMs of RPCD lack the requisite worth? A few days back Chairman's post of NABARD was advertised. Earlier,
CGM, HRDD, RBI used to be the Secretary of Search Committee for
selection of CMD of NABARD. Now what happened? RBI is completely out of
picture. When
Subbarao became GUV 5 years back, simultaneously, Chairman of IRDA
(Hariharan IAS), NABARD (Sarangi IAS), SEBI etc etc were appointed by
administrative fiat. All
regulators were brought under IAS domination. Now IRDA has been given to
Shri Vijayan, LIC man and NABARD is set to get a specialist. SEBI is
under a long back retired IAS. Even for RBI, non IAS are in race. Sign of winds of change clearly showing dissatisfaction with IAS.
- Sitendra Kumar
Janki Ballabh resigns from UTI
..........A source said Ballabh's move might be part of a restructuring exercise to fill the non-executive chairman's post. Earlier, Ballabh was chairman, State Bank of India. He had also held the posts of vigilance commissioner in the Central Vigilance Commission and chairman of the Reserve Bank of India's services board and its advisory board on banking, commercial and financial frauds..................
Should India float international bonds?
............The immediate need is to strengthen the reserves and arrest the depreciation of the rupee through the inflow of capital. There have been talks about floating a sovereign bond in international markets. If the purpose is to augment the reserves, whatever resources the country raises will be added to RBI's kitty. It will be invested in low-yielding treasuries of foreign governments and deposits of international institutions. The net outgo due to the difference between interest paid and investment income will be a drain on the forex resources. There are legal problems in floating bonds in the US limited to non-resident Indians (NRIs). And that is the country where there are a large number of high net-worth NRI professionals looking for good yields. At his post-policy meeting with the press, the RBI governor mentioned his reservations about floating a sovereign bond..............
Winning back credibility
..............All sorts of theories are going around as to why the markets tanked. The ‘dovish’ tone of the policy is interpreted as a sign of weakness, leading to a sell off. On the other side, there is disappointment that the RBI has done nothing to stimulate growth even though it lowered its growth forecast. The RBI should strive to regain credibility to win the battle for a stable rupee.
Tail wagging the dog
..............The Reserve Bank of India (RBI) fought the currency shock with an interest rate shock. While this textbook response may work when financial markets are efficient it is not the case in India today. As such there is a risk that the negative effect of RBI’s measures on financial market stability and economic growth may far outweigh the beneficial effects, if any, on currency stabilization. Indeed, the debt and money markets have already been thrust into the whirlpool...................
Wanted: United show by RBI, government on rupee
...........Both Subbarao and Chidambaram are saying the same thing but there is a nuanced difference between what they meant. While Subbarao said nobody has approached him to stay back (meaning, had he been approached, he might have said yes), Chidarmabarm said the governor did not want to be considered for another extension (meaning, had Subbarao wanted, the government could have given him). For the record, Subbarao—whose term ends on 4 September—had got a two-year extension in 2011....................
Diagnosing the depreciating rupee
..........Clearly, whatever channel of influence we look at, the overriding cause of rupee depreciation is sheer economic mismanagement. Unfortunately, the RBI is fighting a lone battle. As a result, it hasmoved away from managing the volatility of the rupee to targeting a specific level. While doing so, it is constrained by the impossible trinity (trilemma or impossible trinity says we cannot meet all the three objectives of free capital flow, fixed exchange rate and independent monetary policy). One is, therefore, not surprised by the zeal with which the RBI is targeting liquidity...................
Rupee problems cannot be solved overnight: Raghuram Rajan
CHENNAI, AUG. 3:
The depreciation of the rupee “is something that has been building over a period, and solutions cannot happen overnight,” observed Raghuram Rajan, Chief Economic Advisor to the Union Finance Ministry. The initiatives taken by the Government and the Reserve Bank of India to stem the fall of the rupee would yield results, but would take a while, he said, delivering the fourth Kuruvila Jacob Oration here on Saturday.......
Watch the dollar like a hawk
............Guesswork suggests RBI finds a band of approximately 59-60.25 acceptable. Foreign institutional investors (FIIs), which use highly sophisticated algorithms, would have a better idea of the exact levels. Anyhow, there seems a trigger point where RBI will intervene. If there is indeed such a pattern of RBI action and the FIIs have deciphered it, they could also start acting upon the 'RBI put'. FIIs have actually been net equity buyers in the past two sessions, albeit in small quantities..............
RBI curbs on gold import opposed
........Explaining the association’s views on the RBI order, its president B. Girirajan made it clear on Friday the main objection was to the RBI directive that 20 per cent of gold imported by banks and other recognised agencies should be kept in customs bonded warehouses and 75 per cent in bonded warehouses should be exported as gold jewellery............
Banks use social media to woo youth
...........New-age/Gen-Y customers are more inclined to trust the advice of friends and acquaintances on financial products and services for decision-making. And, they are embracing social networking, social bookmarking and social shopping more than ever as a medium to gather this information, share experiences and make decisions, according to study by the Institute for Development and Research in Banking Technology (IDRBT), an arm of Reserve Bank of India..............
Fake RBI officers dupe man of Rs 7.5 lakh
In another incident of online lottery fraud, a woman and her aides claiming to be officers from Reserve Bank of India (RBI) duped a man of Rs 7.5 lakh. Ankush Mahadev Borude (42) of Charholi in Haveli taluka, lodged filed a complaint at Vishrantwadi station after realising he had been cheated. Police booked one woman named Neha and her unidentified aides and charged them with cheating and forgery and under sections of the Information Technology Act.........
Greed lured even literate investors into emu scam: RBI
Most of the duped investors in the multi-crore emu contract farming scam in the district last year were literates and very knowledgeable and had been lured by 'greed', according to a survey by Reserve Bank of India. The investors had been lured by attractive schemes offered by the emu farms, RBI Chief General Manager V Vasanthan said here today............
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