Bank employees' wage revision talks in process and announcement of 7th Pay Commission for Central Govt. employees is positive indication for final negotiation......
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, September 27, 2013
I-T dept clarification on co-ops
THIRUVANANTHAPURAM, SEPT. 26:
The income tax department has said that limits for calling for information on deposits has been enhanced to Rs 5 lakh from Rs 2 lakh for cooperative banks and societies. Small depositors will not be inconvenienced, an official spokesman said here. This comes in the light of a call by the Kerala Primary Societies and Kerala Cooperative Employees Union for conducting protests and sit-in in front of income-tax offices on Friday against the taxman’s drive in the State......
RBI’s New Financial Inclusion Committee: Bypassing the Parliament?
There is a Microfinance Bill promoting financial inclusion pending in the Parliament. There is also a financial inclusion committee of the RBI currently live, under Dr KC Chakrabarty. So, how appropriate was it for the new RBI Governor to announce another committee on financial inclusion?........
Banking Service Charges: Our online survey results
.......We found that customers of private banks and nationalised banks were more aware of costs and charges, while a majority of customers in the two extremes—foreign banks and cooperative banks—responded with a ‘don’t know’ on most cost-related queries. Clearly, account-holders in foreign banks do not bother to check, while those of co-operative banks probably don’t avail of many of these services. Our own research shows that ................
RBI's welcome move - M.G.Warrier
This is a welcome move which was long overdue. Deregulation and liberalisation in India has been variously misunderstood as freedom to do whatever you want, so long as you are able to remain within the contours of established law, or, if you are willing to pay penalties when caught. RBI’s present guidance should be taken as indicative of the regulator’s concern to protect public interest. Government (at Centre and states) and corporates should review the tax and pricing policy to bring transparency and simplicity. The review should cover tax exemptions, subsidies and various ‘offers’ including discounts and prizes.
- M G WARRIER, Mumbai
Raghuram Rajan panel report
......The committee, headed by the then Chief Economic Advisor Raghuram Rajan (now RBI governor) which was set up by the government amid demand for "special category" status by Bihar, suggested a new methodology for devolving funds on states based on a 'Multi Dimensional Index (MDI)'.........
Raghuram Rajan panel report will help Bihar get more funds: Nitish Kumar
Read...........
Shocker for Modi: FinMin's index does not find Gujarat a developed State
Turning rate positive at last
You may not have realised it, but the "safe" returns you were getting from your fixed deposits were eating into your savings and were actually making you poorer. Or, at best, they could have been protecting your capital without really giving you the returns you thought you were getting. Here's how:.......
Rajan questions merit of low interest rates
Reserve Bank of India governor Raghuram Rajan is questioning whether current ultra-low interest rates are the right way to return to growth after the financial crisis. Central banks warded off a collapse of the global financial system through bank bailouts and rate cuts, and central bankers became "heroes".........
RBI focus still on currency stability
......Both Dr. Rajan’s detractors and admirers may be wrong in their reading of the monetary policy statement. It appears more plausible that Dr. Rajan’s policy stance is aimed at shoring up the rupee ahead of a change in the U.S. Fed’s policy about three months from now. The RBI may find it prudent not to say so for fear of adding to nervousness in the currency markets. It may choose to couch its stance in anti-inflationary terms. But currency stability seems to weigh more heavily on the RBI than its statement would suggest. Sustaining growth also appears to be a consideration...............
Rajan Seen Switching Main RBI Price Gauge in Sign of Rate Rises
Reserve Bank of India Governor Raghuram Rajan is set to use consumer-price inflation as the main guide for monetary policy for the first time, a shift that signals further increases in the benchmark interest rate. Rajan, 50, will add to last week’s surprise repurchase-rate boost after specifying a pace of consumer-price gains as the key target, seven of 10 analysts said in a Bloomberg News survey. A panel he set up after becoming governor on Sept. 4 is due to report by December on revising the monetary-policy framework.........
Is Raghuram Rajan an inflation hawk?
.....That lends further support to the view that RBI is now looking at consumer price inflation, rather than wholesale price inflation, when deciding upon policy. During an interaction with analysts after the monetary policy statement on 20 September, Deputy Governor Urjit Patel said the central bank looked at multiple indicators, including WPI, CPI and CPI-IW, before arriving at a decision to hike the repo rate. But there are several reasons why CPI is likely to be the new governor’s favoured measure..........
RBI governor says forex reserves comfortable
..........The central bank has been cautious in using its forex to stem the depreciation of the rupee, which has weakened by 14.4 per cent against the dollar this financial year. Under Rajan, who took charge on September 4, the currency has been able to halt its fall, which has appreciated 5.5 per cent this month.................
RBI’s liquidity assurance: Is Raghuram Rajan nervous?
......RBI has promised to take appropriate actions, including open market operations (OMOs), to ensure that adequate liquidity is available to support the flow of credit to productive sectors of the economy. Indeed, OMOs will be the key to liquidity management. RBI has been generating primary liquidity through OMOs since fiscal 2009. Till then, RBI’s dollar buying was creating rupee liquidity as for every dollar it bought, an equivalent amount of rupee flowed into the system..............
Now, home loan cashback on RBI's radar
After directing banks not to offer zero per cent finance for purchase of consumer goods, the Reserve Bank of India (RBI) might also crack the whip on home loan products offering cashback facility or EMI (equated monthly instalment) waiver, people familiar with the development told Business Standard. The banking regulator is likely to review these products so see if pricing was done in a transparent manner..........
Let zero schemes finance growth, RBI
..........It is not the case that consumers are unaware that these financing schemes entail real costs on account of interest and documentation. They are aware that credit card-issuing banks charge a financing cost that product companies bear, to tempt consumers with "zero" offers. But this is not their concern. Nor should it be the RBI's. If the RBI is worried about the rates banks offer, it is welcome to examine the banks' books and ascertain if any rule is being violated............
Will RBI ban hit Deepavali sales?
.......The directive has come as a surprise to not just consumers like Mr. Jayaram but to various stakeholders. Banks, consumer finance firms and retail chains have adopted a cautious approach even as they get ready to evolve an alternative to attract customers during the ensuing festive season. Nearly one-third of total sales are driven by such hassle-free consumer finance schemes, said retailers, who fear the RBI directive will only add to woes related to rising prices. The prices of many consumer durables are likely to be revised next month...................
Are regulator penalties just?
With recent reports on levy of deterrent penalties by the Reserve Bank of India (RBI) on banks and by the Insurance Regulatory and Development Authority (Irda) on insurance companies, it is time to understand the basics of monetary penalty action processes that the three financial services regulators—Securities and Exchange Board of India (Sebi), RBI and Irda—undertake..........
Merry-go-round shifts axis of bling
Exporters of gold jewellery involved in round-tripping before the Reserve Bank’s (RBI) curbs on import of gold, which began in May, seem to have shifted focus to round-tripping of diamond-studded gold jewellery. Round-tripping is exporting of goods without much value addition, to avail cheaper export finance from banks and show a higher export performance to get the benefits of a star trading/export house..........
Social media travails
...... Well, the page handler might choose to ignore the news, but it is certainly difficult for the company management to ignore the RBI diktat.
IRDA slaps fine on Punjab & Sind Bank
.........In an order, the regulator said that the bank has received payments from Aviva Life Insurance Company Ltd as its corporate agent over and above the permissible level of commission in the form of rent for infrastructure and advertisement and publicity expenses, among others...........
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