In yet another move to ease liquidity for banks, the Reserve Bank of India on Monday eased interest rate on borrowings under the marginal standing facility (MSF) by 50 basis points (bps) to 9 per cent.........
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, October 8, 2013
Interest rates are going to stay high for many more quarters to come
......To stem that ebb and ensure that the Indian debt paper remained attractive for FIIs, the Reserve Bank of India (RBI) raised short-term interest rates, drawing sharp criticism from industry. Somehow, an impression gained currency that the then RBI governor D Subbarao, a vocal critic of lower interest rates in times of mounting inflation, used the opportunity to pull up rates still higher on the pretext of stopping dollars from moving out in huge quantities. Yet, the fact is that the RBI then had few other options other than raising the rates to stabilise the rupee. It was difficult to tell whether ...........
RBI to relax norms for forex futures after rupee stabilises
Reserve Bank today said it will look at easing restrictions on the forex futures market once stability improves in the foreign exchange market. "Once the stability improves in forex market, we will look at the whole gamut of futures market," RBI Deputy Governor H R Khan said on the sidelines of an event here........
Know how to tackle changes in your bank FD & loan rates
In the aftermath of the credit policy announced by the new Reserve Bank of India (RBI) governor, few areas have started witnessing changes. Bank deposit rates have started getting impacted as the lenders have started revising the offered rates for various time maturities. Even the loan rates have started to rise. In this situation, individuals will have to take some steps to get their finances in order. Here is a look at the situation and how this can be achieved.............
J&K Bank looks beyond India for wider play, to apply for licence
Jammu & Kashmir Bank is seeking overseas expansion and will soon apply to the Reserve Bank of India (RBI) to secure a licence for the same..........
Monday, October 7, 2013
RBI paper on banking structure - Dr.S.S.Tarapore
........The present columnist has been an early advocate of allowing industrial houses to apply for bank licences. Memories of the pre-nationalisation period, when industrial houses dominated the banking scene, are no longer relevant, as there are concentration ratios and prohibition on connected lending, which would prevent earlier malpractices from re- emerging. In the upshot, it would appear that political economy considerations will prevail and the actual granting of licences will take place only after May 2014...........
Confusing signals from RBI
.......Is RBI really worried about growing inflationary pressures or is it concerned about propping up consumer demand in the festive season? Is it seeking to embrace a nominal anchor or will it be a willing participant in old-style directed credit programmes? Does it want money market conditions to be tight or will it lose nerve each time bond yields drift up? These are questions that puzzle us for two reasons. ...........
Slow burn - Subir Gokarn
.......The most dire judgement of the report is that, no matter what is done from now on, the cumulative impact of previous emissions will be the predominant driver of the late 21st century outcomes. In other words, there is nothing we can do to stop the burn; at best, we can keep it on simmer. Everything now seems to rest on adaptation and mitigation.
SBI Moreh branch
........Speaking at the inaugural function, RBI Guwahati Regional Director PK Jena said that the Chief Minister as well as the Chief Secretary earlier asked SBI to open a branch at Moreh as the UBI branch already functioning there was overflowing with customers. Jena stated that only banking infrastructure can provide foreign exchange facilities...........
Bankers wage revision 10th Bipartite Settlement next meeting
......In banking industry 11.10.2013 talk deemed the final talk and bank employees are hopeful of final negotiation. As indication received from govt sources govt is also willing to settle demands of bank employees with total increase of approx 30 percent with merger of 60% DA.........
Blame high inflation, not RBI, for killing growth: Chakrabarty
...............“You don’t blame the RBI for killing growth, you blame inflation for killing growth...our pursuing moderate or low inflation objective is to facilitate growth and not to kill growth,” he said, addressing students of a management school here. “The basic complaint against RBI is that it is killing growth by keeping interest rate high. But people forget that interest rate is high because inflation is high and inflation is high because people are not working. For inflation to come down, you have to produce more food grains at less prices,” he said............
'Bankers and RBI officials are not fools'
......The response came when he was asked about the risk of inflation going up if interest rates are lowered to boost consumption. “People who make these decisions, bankers and RBI officials, must have done their math, isn't it? Give some credit to them, they are not a bunch of fools.”...........
THE SECRET DIARY OF RBI GOVERNOR
.......... Life as the RBI Governor is hard. Everyone wants to see me, have a chat, give me advice. Nothing can move without my signature on forms which are presented in triplicate. Already, I detect signs of hostility. .......
Raghuram Rajan At IIM Raipur
Raghuram Rajan, Governor of RBI addressed the students at the Indian Institute of Management(IIM) Raipur, on the 4 October, 2013. He spoke about the challenges faced by Indian economy and need of sustainable growth in our country................
Crisis and complacency
A little over a month has passed by since the post of the chief economic advisor (CEA) in the finance ministry fell vacant. A few names have been doing the rounds as likely candidates to fill the vacancy caused by Raghuram Rajan's movement from North Block as CEA to Mumbai's Mint Road as the governor of the Reserve Bank of India (RBI). It is not clear who among the likely candidates will get the final nod of approval.........
Forex swaps - A.Seshan
In the daily statement on money market operations issued by the Reserve Bank of India (RBI), the swaps are now shown as ‘refinance under the forex swaps’. In fact, till a few days ago, it was called just ‘refinance’. I do not understand the appropriateness of the term ‘refinance’, which means an advance to a bank by way of supplementing resources when it issues a loan in a desired direction. Cannot the RBI just call it ‘forex swaps’ to avoid confusion? Secondly, the amount is indicated in rupees. It changes daily due to the variations in exchange rate. It would be helpful for analysts if the RBI indicates the dollar amount also along with the underlying exchange rate, which seems to be the Reference Rate announced by the bank.
- A.Seshan, Mumbai (HBL)
Booster dose..........
My View on "Star trio on panel for new banks":
About the appointment of Dr Rajan as Governor, I had observed in The Global ANALYST that “This time, the process has been more transparent and all have accepted that among the candidates considered, the most meritorious has been selected.” Appointments to this panel should be a confidence booster to those who have been believing in RBI’s work ethics and ability to rise to the occasion. Whatever be the recommendations of this panel on the new bank license applications it will be vetting, nation will benefit from their collective wisdom and views on the future structure of financial institutions including banks in India.
- M.G.Warrier
Hole in a Rs.10 coin
A Parry’s Corner-based businessman received a jolt when he found an ‘otta kalana’ a Rs. 10 coin in a bunch of coins that he got in exchange for rupee notes at the Reserve Bank of India recently. M. Syed Ibrahim runs a hotel in Parry’s Corner and regularly goes to the RBI for small change. On Monday, he went to the bank to exchange Rs. 500 for Rs. 10 coins. When he returned home with the pouch of coins, he counted them and then he found that he had a coin without the central part of the coin, indicating the denomination was missing........
How do we not flash the cash? Its Delhi!
Can we live without flashing our money in people's faces? Not really, even if the Reserve Bank of India politely asks us not to. Politeness doesn't stand a chance in front of all that's loud and flashy, and whether the RBI likes it or not, flaunting garlands of crisp notes is here to stay at shaadis, political rallies and the like.....................
Read - TOI
Read - TOI
ATMs may run dry on shortage of guards this festival season
..........The fall in armed security guards is because of various reasons including the fact that police in many states have raised objections on the issue, saying that private arm licence cannot be used for purpose other than defined by the law, said the association. This has lead to staff crunch with cash logistics firms, which don't get a formal licence to operate armed services for cash logistics..........
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