.....The Communist Parliamentarian and Chairman of committee on agriculture in Lok Sabha Mr Acharya has called for immediate withdrawal of the circular. According to Acharya, the circular undermines the independence of PACS, weakens the institutional agri-credit system, threatens the federal structure of the country and smacks of arbitrariness and blatant refusal to consult with the stakeholders...........
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.
Thursday, September 12, 2013
India considers investing $4.3 b in World Bank bonds
............The Cabinet will tomorrow take up the proposal to allow the Reserve Bank of India to invest in bonds floated by the International Bank for Reconstruction and Development (IBRD), a lending arm of the World Bank. “The RBI will subscribe to the bonds of the IBRD...This is an investment proposal, which means they will get a return on it. So it is not equity or a grant,” a top finance ministry official told reporters here..............
Rupee turns tide under Rajan, becomes Asia's best performer
Before and after he took over as the 23rd governor of the Reserve Bank of India, Raghuram Rajan has been tirelessly saying that he doesn’t have a magic wand. But the market seems to be banking precisely on the opposite. The Rajan magic is indeed working, and how. Till a week back, the rupee had lost about 20% against the dollar in the financial year and for many, there was no end in sight as the currency touched record lows almost every other day.............
Offer investment tax credit to ease economic situation: IIM-A study
While the new Reserve Bank of India (RBI) governor Raghuram Rajan effect on rupee is visibly increasing, an IIM Ahmedabad (IIM-A) working paper suggests there is more to be done, especially in terms of increasing liquidity in the market, and improving the regime for private investment...
FIPB to consider Axis Bank, HCL Tech proposals next week
The proposals of Axis Bank and HCL Technologies to raise foreign shareholding limit will be taken up for consideration by the Foreign Investment Promotion Board (FIPB) next week. Axis Bank had approached the FIPB last month soon after the Reserve Bank of India (RBI) said the limit of investments through Global Depository Receipts (GDRs), American Depository Receipts (ADRs), FDI, NRI, FIIs in the bank had breached the overall limit of 49 per cent of its paid-up capital..............
Wednesday, September 11, 2013
RBI’s unanswered questions - A.Seshan
MASSIVE DHARNA BY ALL INDIA BANK PENSIONERS AND RETIREES CONFEDERAION (AIBPARC)
.....The issue of Pension Updation and Family Pension is also a very live issue concerning the RETIREES and more particularly the FUTURE RETIREES and hence AIBPARC is soliciting the support of all serving Employees and Officers organisations..........
Senior citizens seek better treatment at banks
Most banks in the country want to catch their customers young — a desirable objective, given India’s young demographic profile. But in the process of welcoming the young, banks are overlooking the needs of older customers. According to SBI’s annual report of last fiscal (2012-13), of its 286 lakh savings bank accounts, 34.7 lakh were pension accounts.Some bankers, especially at the senior level, are considerate and treat the aged with respect. But they are a vanishing tribe who would be retiring soon..........
Obituary
Dr. P. Laxminarayanan, from Nagpur Office,
passed away on Friday the 6th September, 2013. He was seriously ill and
was admitted in hospital, but was discharged few days before his death. His last rites were performed at Ambazari ghat in Nagpur on the same day. He is survived by his wife. Pray Almighty that his soul may rest in peace. MANY
OF OUR GROUP
MEMBERS might be knowing who worked in Nagpur Office or have met him in
Staff college our friend Dr. P. Laxminarayanan was a powerful personality with large frame and loud voice, once met cannot
forget him. When he spoke entire floor could hear him. Highly qualified
did his PhD in Economics, accepted Grade B promotion but soon opted for
reversion - was regular visiting professor for Nagpur University. He was very active in most of the organizations - we has his own values and views.
-K.S.Iyer
A lonely man
.... Relations between the boss of North Block and the head of the country’s Central bank and apex monetary authority have not always been smooth. But rarely have their differences of opinion been so out in the open. Duvvuri Subbarao was literally hand-picked for the post of finance secretary by Mr Chidambaram. But the two stopped seeing eye-to-eye after the former became governor of the Reserve Bank of India.............
CPI and inflation
In the forthcoming mid-quarter review of policy the Reserve Bank of India (RBI) should announce shifting its focus to consumer price index (CPI) from wholesale price index (WPI). It has already given up the inappropriate use of the concept of "core inflation" derived from WPI. ...........
Exchange risk
........In the proposed swap, the RBI is only subsidising the swap cost which actually is forward premium determined by market forces. The RBI would be earning only nominal return on its dollar funds - thus the effective cost to RBI is higher..........
Easing troubles in the long run
....Monetary policy in these economies will be at the mercy of the policies of central banks in the main centres of global finance. What emerging markets face is not so much the classical ‘trilemma’ posed by the ‘impossible trinity’ but a dilemma: to have an independent monetary policy or free capital flows. They cannot have both..........
A tale of two mistakes
It is a rarest of rare case when Reserve Bank of India (RBI) publicly acknowledges its mistake, even if committed inadvertently. Last Friday, a press statement from the central bank -- on the highly sensitive issue of new bank licences -- said, it has inadvertently left out an applicant's name from the list of companies that has applied for bank licence..................
Lazy banking targeted by Rajan helps lower yields
...The days of lazy banking are going to be over soon, Vishal Narnolia, Mumbai-based analyst at SMC Global Securities Ltd., said in an interview on 5 September. The central bank has made it clear that they will be looking at pushing loans and balance sheets have to be cleaned up. Although there could be pain in the short term, profitability at lenders will go up in the long term........
Thank You Governor, but What Do We Do With Our Police and Politicians?
Letter from a Banker
............As
a banker, what made me extremely pleased is the way you particularly
approached the bad loans issue. The banking industry is crippled because
of spiralling bad loans. I dare to write to you because I believe you
mean business. Sir, you said that promoters do not have a “divine
right” to continue if an enterprise flops and use the banking system to
recapitalise their failed ventures. And how right you are when you said
that we need to deal separately with wilful and genuine defaulters.
Banks act as a proxy to the economy and so when the economy isn’t doing
too well, we are bound to see some rise in NPAs...........
IS #RRR 007?
.........To his credit, the previous Governor D Subbarao, on more than one occasion, admitted that the RBI Governor is an unelected official, and he, therefore, needs to be subjected to accountability before he can make too many noises about autonomy. Rao wanted accountability before a select committee of Parliament; but having been a finance secretary in an earlier avatar, he never made a direct pitch to be treated outside the control of the finance minister. Having worked as a North Block mandarin for 12 months,#RRR, too, has hinted in the inaugural statement his role to serve an elected Government’s policies (the two question marks are mine):..........
In Love with Rajan, Re may Flirt with 60
..............The
local currency had its best four-day rally in four decades after
Reserve Bank of India Governor Raghuram Rajan moved to reverse sentiment
on policymaking, introducing several measures soon after taking over
last Wednesday.........
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