..............On Rajan's recent statements about major reforms being in the offing that would allow foreign banks to enter India in a big way and even take over domestic lenders, he said while 80 percent of banking activities were carried out by state-run banks, "foreign banks have never contributed to the development of the Indian economy." "Some of these banks have also been responsible for serious unethical practices," he said and also criticised the government for earlier allowing private sector to open banks.......................
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, November 1, 2013
India: Rajan steadies the ship
.........The government has been spending too much, and been too slow to deregulate the economy to encourage investment. Rajan has steadied the ship, but the government must get its act together if the recovery is to last.
Industry is obsessed with interest rates: C Rangarajan
NEW DELHI: Prime Minister Manmohan Singh's economic advisor C Rangarajan hit out at Indian business for its criticism of the central bank's latest monetary policy, saying that industry was obsessed with interest rates and backing governor Raghuram Rajan's push to rein in inflation. He also said that India's growth this year would be...........
Rajan shows no innovation
.....However, governor Rajan’s two policies are in fact too cautious. These do not reflect any proactive approaches that were expected from a person with global exposure and financial elan. Maybe, the fault lies more in expectation than in the execution of a policy in the current situation. But surely this is not the kind of approach that will bring a spring back into the economy.
FOMC meet outcome: Bernake takes over from where Rajan left off
.......However, party for the Indian stock markets, which have already been on an upward spiral since the Reserve Bank of India (RBI) governor Raghuram Rajan reviewed the Monetary Policy on Tuesday, could continue for some more time as a result US Fed’s stance as this would keep the FII flows coming into emerging markets (EMs) like India. For the markets, Ben Bernake has taken over from where Rajan left off..............
Muthoot Finance aims to become financial supermarket
Kerala-based Muthoot Finance, which has applied for banking licence, is aiming for an image makeover to transform itself from being just a gold loan company to a financial supermarket. "Muthoot is the only company from Kerala which has applied for banking licence," Chairman M G George Muthoot told reporters here................
Bank washes hands of Mamata's savings scheme
......... State-run Allahabad Bank, one of the four 'collecting banks' for the scheme, on Thursday dissociated itself from it saying that the bank was included without consent. While the scheme has already generated a 'lot of interest among people', the bank has declined to be a part of it saying that it needed further clarification from the Reserve Bank of India (RBI).......
Is New RBI Bond as Good as Gold?
.........On Tuesday, the Reserve Bank of India said it will issue the instruments, which will have a ten-year tenure, starting November or December. The rate of interest on the bonds will be a fixed rate plus inflation. Although world over such bonds have been used as a way to attract small investor savings, India is only now issuing them. Mr. Rajan’s Diwali gift is more than a kind gesture. It is squarely aimed at weaning Indian investors from buying gold, which is traditionally viewed as a safe hedge against inflation........
His dream a joke, sadhu now says give me 10 hrs, I will give you gold
.........Speaking at his ashram in Buxar, Sarkar said he knew the "exact location" of the gold. Demanding that the Army be roped in for the excavation, Sarkar said he could deliver the treasure within 10 hours. However, he said, the government would have to accept his terms — deposit 80 per cent of the gold in the Reserve Bank of India and use the remaining 20 per cent for the development of the region...........
Thursday, October 31, 2013
Now growth must walk alone - Renu Kohli
......At first glance, it is hard to quarrel with this policy configuration. After all, the external financial shock hit so badly precisely because of imbalances caused by past monetary-fiscal laxities; adjustment means tightening these. There’s little to squabble about fiscal belt-tightening; this was long overdue, so seeing it firmly in the saddle now vis-à-vis budgeted targets is a positive development. The problem is with inflation and monetary policy: Which inflation? How much must interest rates rise to contain food price-triggered inflation expectations and bring back savers from gold?..........
Financial inclusion is not a new dispensation - Dr.Deepali Pant Joshi
Speech by Dr Deepali Pant Joshi, Executive Director of the Reserve Bank of India, at the Vth Dun & Bradstreet Conclave on Financial Inclusion, Kolkatta, 28 October 2013
.....Access to finance for those who are getting crowded out of the credit markets is an equally important element. Therefore, the Reserve Bank has reinforced its efforts to improve financial access, especially for small businesses and individual households. The RBI has set up a Committee on Comprehensive Financial Services for Small Businesses and Low Income Households under the Chairmanship of Dr. Nachiket Mor a Director on the RBI Central Board of Directors. The mandate of the Mor Committee is to frame a clear and detailed vision of financial Inclusion and Financial Deepening in India and to lay down a set of design principles that will guide the development of institutional frameworks and regulation for ensuring these outcomes..........
Why India should steer clear of sovereign wealth funds - Charan Singh
The Government of India, according to press reports, is considering approaching sovereign wealth funds (SWFs) to invest in India. This is an interesting idea that needs to be examined closely. In the recent financial crisis, SWFs are known to have played a stabilising role but that has not been their historical image. In fact, the threats posed by the SWFs and their intentions were characterised by the ........
Successful inning coming to an end...........
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| File photo |
- C.B. Paunikar, PS to Regional Director
Rejuvenating VITALINFO............
Dear
Mangesh
Viewing
each edition of your VITALINFO is an eye opener, refreshner and rejuvenating. We are all proud of you and bit jealous of
your CONVICTION, COMMITMENT AND PERSEVERANCE IN KEEPING ALL UPDATES AVAILABLE IN
YOUR SITE. I am shortly coming to Pune and will try my best to meet you in
person to congratulate you. Regards.
- P N Nandakumar
Secretary, Reserve Bank Retired Employees Assn Kochi
HDFC Bank launches rural financial literacy initiative in Chhattisgarh
HDFC Bank Ltd had launched its rural Financial Literacy Initiative in Chhattisgarh under the aegis of the Reserve Bank of India (RBI) at the village of Jamgaon near here. Through this initiative, the bank will conduct a series of two literacy camps in each of its rural branches in Chhattisgarh. This is the first programme to be organised by the bank in the state in the presence of Nirmal Chand, General Manager of the RBI and other senior officials of the bank............
It's raining new notes, coins
.............According to sources, this initiative by RBI is to break the monopoly of money-changers in parts of the city including Manek Chowk, who offer new notes and currencies at a cost. "Many times these money-changers exploit traders and extract unnecessary amounts of new notes", said an official..............
Clarification should end speculation
My View on "I have never applied for citizenship of another co...":
This issue was first raised in ‘public’ by a politician and the ‘gossip’ was enjoyed by some idle mailers. Hopefully, this clarification coming from Rajan will end the speculation. We are forgetting that such uninformed allegations will affect the prestige of Indians as a community. World citizens like Dr Rajan may take it in their stride and take time to explain the real position. But this has an impact on the Indians whom we call ‘NRIs’ who are holding high positions abroad to the mason or tailor from Kerala or Bihar who has just landed in UAE for employment.
- M.G.Warrier
Instant rapport
..................At the Reserve Bank of India too, women have been in leading roles—Shyamala Gopinath, K.J. Udeshi and Usha Thorat have been Deputy Governors. But what makes Arundhati Bhattacharya’s appointment unique is the fact that she heads a 206-year-old institution which is on the cusp of a major overhauling as banking practices are churning not only in India, but globally. As the head of the country’s largest banking organisation—SBI along with its subsidiaries controls more than one fifth of all banking assets in India—she has to strike a balance between the government’s larger vision for the economy and the bank’s vision for its own growth, simultaneously ensuring that the employees remain happy and contented and become a partner in the growth process...............
For bogus charge of fake currency, 2 ITBP men slap Rs. 30-lakh defamation case on top UT officials
..........The branch manager found 91 currency notes of 1,000 each to be fake, and called the police who arrested the two men. The police even procured four-day remand for further interrogation, but when the notes were got checked by the Reserve Bank of India two days later, it was found that "all the suspected forged notes.. [are] genuine". Based on the report, judicial magistrate Aashish Saldi, on May 20, discharged both personnel. They have now said the UT police did nothing to investigate. They said that the truth had come out only after intervention of ITBP officials, who sought the help of the RBI.
Urban cooperative banks misused for money laundering
.............The matter of misuse of UCBs, over which there is dual control by central or state governments through multi-state cooperative societies or state cooperative societies, was discussed during a a recent meeting of Economic Intelligence Council (EIC), chaired by Finance Minister P Chidambaram. The meeting, which was attended by senior officials of Central Economic Intelligence Bureau (CEIB), Reserve Bank of India (RBI) and Finance Ministry, stressed for devising ways to check money laundering through these banks.............
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