.........The RBI’s policy agenda is amply clear. After two successive rate hikes in less than two months since Rajan took over as Governor, he has signalled his hawkish intent to beat down inflation even if it means sacrificing growth. The bad news for the government is that Rajan’s hammer (interest rates) will only have a limited impact on inflation..............
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.
Wednesday, October 30, 2013
Rajan Needs Help From Delhi in Inflation Fight
......If India wants to get out of this rut New Delhi and the
Mumbai-based RBI have to work together. New Delhi needs to open its
economy more and lower government spending which is pushing up interest rates
and demand, economists said. The central government also needs to help
encourage investment in the country’s overburdened supply chains, roads, ports
and power plants which exacerbate inflation by adding to costs of delivery and
production...
Increase in term repo rate is a positive step: Pratip Chaudhuri, SBI
......So having increased the term repo rate is a positive which takes the country into the money market more towards the term market. But the RBI has been cautious because they are not complacent on the exchange part because ......
Tuesday, October 29, 2013
RBI and transparency in policies - Charan Singh
Superman or not, Raghuram Rajan has indeed made a difference
Read..........
Is it time for members of Dr Chakrabarty Financial Inclusion Committee to resign en masse?
........So, I feel that the time is now ripe for the Dr KC Chakrabarty headed financial inclusion committee (appointed in 11 October 2012) to resign en masse so that the Dr Nachiket Mor chaired concurrent financial inclusion committee (appointed on 23 September 2013) gets a free reign to pursue its mandate in a comprehensive manner. I am sure that the respected governor of the RBI, the deputy governors’ and independent board members of the RBI will agree on the need to save scare resources (at a time of economic crisis such as this) and not have two high powered committees on the financial inclusion working concurrently at the RBI!.......
PRATHYASA
Veterans like Shri P.P.R.Nayar, Shri Sitendra Kumar, Shri L.R.Parab,
Shri G. Mohandas (Chennai) have also written strongly on the issue of pension
updation.......
Read............ - A bulletin of Reserve Bank Retired Employees Association, Kochi
FinMin relaxes norms for top jobs in govt banks
...........The selection committee is headed by Reserve Bank of India (RBI) governor Raghuram Rajan and includes officials from finance ministry and academic world. According to banking industry sources, the new RBI governor is likely to break the tradition of sending his nominee (which is a deputy governor) and would be himself present during the interviews and conduct them. The interviews will be conducted at State Bank of India head office in Mumbai, and not in New Delhi as earlier practiced.........
All-women bank gets branch in iconic Mumbai tower
The iconic Air India building at Nariman Point overlooking the Arabian Sea would house India’s first state-owned women-only Bharatiya Mahila Bank. The ground floor of the sprawling building is already being renovated to house the bank’s Mumbai branch, which is all set to start operations next month. Women employees from other public sector banks have been invited to join the mahila bank on deputation or resign from their current positions to join the bank without interruption of service.........
Next, please?
........Rumours are also doing the rounds that financial services secretary Rajiv Takru might be moved into North Block as expenditure secretary and Das could go to the banking division in his place.
Finance Minister Sachin?
Tea Leaves
......Were RBI to read the tea leaves right, despite there being ‘upside risk’ to inflation rising, producers have virtually no pricing power—indeed, given the rupee stabilising, some part of the inflation potential has been taken care of. Indeed, with the median FY14 forecast of GDP growth being cut from 5.7% in the last survey to 4.8% now and from 6.5% to 5.8% for FY15, it is clear the economy needs a growth shot.........
Banks to recast crop loan in flood-hit areas
......Behera urged the commercial banks, regional rural banks and cooperative banks to restructure existing loans at affected areas as per Reserve Bank of India’s (RBI) guidelines. Banks should also stress on sanctioning fresh loans for the affected farmers to help resume normal business, he added. Besides, he advised the banks to focus on crop finance for the Rabi season and meet the annual credit target for the agriculture and allied sectors in 2013-14...........
Four PSU banks face scrutiny for fall in agriculture credit
Four public sector banks may come under the finance ministry's scrutiny for reporting a fall in credit to agriculture, designated as a priority sector for lending by the Reserve Bank of India. .......
RBI shields bank-defaulters
.............Making names public will save private parties from giving loans to defaulters thus also resulting in checking large number court-cases filed for loan-recoveries by individuals and private parties. Central Information Commission (CIC) in larger public-interest should decide petition against RBI in this regard on propriety basis.
Depositors’ body seeks inflation-linked saving scheme
.........“In substance, the depositors have experienced a negative rate of return (adjusted to the double digit annualised consumer price index-based inflation). This has not only eroded the value of depositors’ savings, but has also shaken their confidence in being able to earn a steady real interest income on their savings with banks.”.........
Walking a tightrope between depositors and deposits
Learning its lessons from the collapse of several collective investment schemes in recent times run by fly-by-night “companies,” the government has proposed stringent rules under the new Companies Act 2013 to protect depositors. Notified last week, these rules propose that companies (other than non-banking finance companies) should henceforth insure the deposits that they take from the public............
Political uncertainties impacting capital markets: RBI
Political developments on account of the forthcoming elections, in addition to other domestic and global factors, are impacting the capital markets, the Reserve Bank of India (RBI) said today..........
An overdue warning
The Reserve Bank of India has done well to communicate a stern message. It has said in its new report on the economy that India could face what it calls “a lasting growth collapse” unless macroeconomic stability is secured...........
Liquidity key to restoring relevance of repo rate
....And, he showed intent — the central bank reduced the marginal standing facility (MSF) rate further in October (after cutting it in the September review) and opened another liquidity window. Now, it is widely expected RBI would restore the 100-basis-point corridor between the repo and the MSF rates in Tuesday’s second quarter review of monetary policy...........
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