........I don't think the IMF's assessment has been that different from what the Government of India has itself been saying, although it does give a somewhat smaller weight to global factors. There is clearly an impact of the global economic slowdown on almost every country. Coming back to India, we were able to counter the immediate impact ............
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.
Monday, March 31, 2014
Inflation targeting - What's the hurry? - Charan Singh
.....Changes in monetary policy framework deserve focussed attention and a well chalked-out strategy to be successful. Illustratively, the foreign trained but domestically experienced duo of Montek Singh Ahluwalia and and C Rangarajan ensured that the reforms of 1990s were properly sequenced, well calibrated and widely consultative in nature. Only then ..........
Targeting Dr Chakrabarty
On 25th April, one of the most forthright and honest deputy governors (DG) of the RBI will retire—three months before his term ends. It is befitting that Dr KC Chakrabarty, who got the post and an extension without the customary lobbying, has chosen to quit before his term ends.................
Kamath leads race to succeed Chakrabarty as RBI DG
Raghuram Rajan headed search panel has zeroed in on a successor to RBI Deputy Governor K C Chakrabarty and PNB Chairman K R Kamath is believed to be top in the reckoning..................
How HSBC Was Made To Pay
.......Although RBI did not send a formal response, the case was examined at various levels. We were also convinced, at that time, that a complaint to the banking ombudsman would be of little use, since its scope is very limited. We requested Dr Chakrabarty to take up the issue of mis-selling of third-party financial products by banks............
Muggers attack, rob home-alone woman
.......The victim has been identified as N. Geeta, wife of Ravinder, a retired employee of Reserve Bank of India. The incident occurred when Geeta’s domestic help left after finishing her work and leaving the main door open. Mr. Ravinder had gone out for some work. The muggers barged into the house and .........
Tech-savvy Hyderabad youngsters take to bitcoins for investment
.........In India, its use is largely restricted, but that is beginning to change. "Barring a few techies, nobody was interested in bitcoins until the end of last year. However, after the RBI warned against the use of bitcoins last December and later changed its stance saying it would not regulate it, the interest levels began to climb," said M Kamlesh, who is all set to start a bitcoin exchange in the city on the lines of similar setups around the world. ............
Common Causes
............Tarapore is probably the first economist to write a column syndicated in multiple languages. Common Voice has been in print since 1997, and books have followed. Long regarded as a monetary hawk, Tarapore is convinced that high inflation is a cruel tax inflicted on..........
Reddy-ing for the elections: How Raghuram Rajan breaks from Subbarao legacy
............The RBI was at a loss when the rupee fell to record lows when the FIIs pulled out of the market after the US Fed hinted that it may unwind its accommodative policy sooner than expected. Clearly, Rajan does not want to commit this mistake, especially at a time when the US Fed has started tapering and also hinted at interest rate increases. So the RBI is now buying dollars to spruce up its reserves. But apart from this, there is one more reason...........
A sensible intervention
.......But, clearly, the Indian economy, while satisfying the first two criteria, is somewhat fragile on the third. Given that the RBI has apparently hardened its commitment to controlling inflation, it should hardly be expected to throw caution to the wind and risk aggravating the situation again. If it does, in fact, put a premium on.............
Capital challenge
................Former governor D. Subbarao had said in September 2012 that Indian banks would need Rs.5 trillion of new capital to meet global norms. Analysts had pointed out at the time that the government would need to put upRs.90,000 crore in the coming years to maintain its holding in public sector banks. The numbers will be far more...................
Neglected for decades
My View on "Paying RBI governor his due"
Thank you FE for giving space for airing an issue which has been neglected for decades. Some individuals including the previous RBI Governor Dr Subbarao had raised this issue in public and received 'feeble' support from some commentators including economists. If public sector organisations and statutory bodies have to make meaningful contribution to the Indian Growth Story they need to be strengthened by putting in place competent people at the helm-in boards and top level- and a thorough overhaul of HR is overdue at all levels. Market-related remuneration is an integral component of HR Management.
- M G Warrier (Camp: Wynad, Kerala)
RBI: Looking beyond the shock
.........RBI is creating incentives for the sale of stressed assets. However, what has not being adequately recognized is that there isn’t a developed market for stressed assets. Second, the fact of growth global secondary markets, falling asset prices and constrained liquidity will result in banks looking to trade distressed ............
Kadamakkudy panchayat gets its first bank, ATM
..........The declaration as a totally banked district was made by the RBI Governor on the basis of surveys and an intensive campaign undertaken by various banks under the district lead bank scheme. The tag ‘fully banked’ tag is given to those districts with a minimum of 90 per cent of the people having accounts with any bank, according to officials of the lead bank..........
Group Rights are as Important as Individual Rights: Nalsar VC
..........In fact, the collective rights are basic pre-conditions for according individual rights, Nalsar University of Law vice-chancellor Prof Faizan Mustafa has observed. He was delivering CD Deshmukh memorial lecture on ‘Minority rights under Indian Constitution: A trilogy of judicial errors’ here on Saturday. CD Deshmukh was the first Indian governor of the Reserve Bank of India and was known for his deft handling of division of assets and liabilities between India and Pakistan during Partition in 1947.........
Next-Gen Reforms to place Banks on a Sound Footing
...............Parallelly, the RBI is setting up a Central Repository of Information on Large Credits for disseminating credit data — including stress category of the borrower — on all large borrowers to lenders so that recalcitrant borrowers are not able to fleece banks. This signals the dawn of next-gen reforms. With PE firms and large NBFCs — with foreign investors riding on them — coming in as new players and RBI mandating that banks sell even.............
Read - ET
Credit cards back in vogue on payment flexibility
.......“Due to the larger global economy impact, there was a phase where issuers were exercising caution on expansion plans but in the last few months, consumerism has made a comeback. There has been an increase in spends across categories............
Pre-paid card issuers need minimum Rs 5 crore to operate in India
The Reserve Bank of India has raised the minimum capital requirement for pre-paid card issuers five times to Rs 5 crore and told them to maintain a minimum networth of Rs 1 crore.......
Friday, March 28, 2014
Paying RBI governor his due
........RBI should be fully autonomous in terms of pay scales so that there is commensurate reward to the staff as well as incentive for individuals to find the job attractive. Currently, given that the pay could be at 3-5 times in the private sector, it is certainly not attractive in monetary terms, though could be fulfilling otherwise. The institution does provide compensations in terms of generous housing, loans, education allowances, etc, but it does not provide a secure future beyond the public pension schemes. For a governor who has a tenure, unless there is a backup income from the past or in the future, the only motivation could be to steer the ship with limited attention to compensation.............
Core CPI rigidity an important issue: Gokarn
I think the broad thrust of exchange rate policy has not changed for sometime - that is if there is a perception that inflows are robust, are permanent then there would be less inclination to intervene to support - in a sense - to keep the rupee at the levels it is right now. But if there is a perception that this is a short-term windfall kind of a movement then there might be some inclination to shore up reserves in anticipation of the fact that this flow might reverse. So bottomline is................
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