...... Ben Bernanke’s, famous ‘savings glut’ hypothesis in 2005 also underlined the interconnection of financial markets and global integration. The impact of such integration on developing countries was perhaps best articulated in August 1999 by Bimal Jalan, who had successfully guided the Indian economy through the Asian crisis of 1997, and stressed that the new financial architecture is “too heavily weighted in favour of industrial countries”. Thus far, the India’s plea for.....
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, July 7, 2014
RBI to convene meet of finance firms
.............The press release said the RBI had instructed its regional office in Thiruvananthapuram to initiate strong action against private financial institutions that did not follow the banking code of fair practices. The Home Minister had met RBI Governor Raghuram Rajan and apprised him of the crackdown ‘Operation Kubera’ the State government had launched against...........
RBI: India Post needs to re-apply for licence
India Post will have to re-apply for a bank licence under the differential licence norms, if they are keen to function as a payment bank, R. Gandhi, deputy governor of the Reserve Bank of India told Cogencis. “That is government. That is up to them. If they want to apply as a payment bank, then it has to be a fresh application !” Gandhi said.......
Read - FPJ
Read - FPJ
For a competitive rupee
..........For the economic recovery, which seems to have begun now, to be robust and for sustained success in manufacturing, the RBI needs to aggressively intervene in the market and buy dollars to undo the appreciation that capital inflows are causing. This would be easier for the RBI if there is better appreciation and a broader national consensus on the necessity of a competitive exchange rate.
No equal treatment to good and bad borrowers: RBI
In a simple and clear message, Reserve Bank of India (RBI) Governor Raghuram Rajan has told officials of the Telangana government they would have to differentiate a good borrower from a bad even in the case of farm loan reschedulement to protect the banking sector...........
Four suggestions for the Budget
..............For the common man, the tax burden is represented by the average rather than the marginal tax. To simplify the system all exemptions, rebates and deductions should be eliminated. Such a system will be welcome to everyone except tax consultants ! Objections will be raised on the ground that tax incentives will not be available for promoting saving. It is time that the authorities realised that saving is a function of incomes and not of returns. The latter, by way of interest or yield, determines only the avenues of investment and not the total quantum of savings. Did not people save in the past, burying their money under their pillows, before the advent of institutions like banks?.......
Acche din can wait
.......... The RBI’s mandate is first and foremost to protect the value of money, which means maintaining price stability. That requires it to make an informed guess about what the public is thinking about price movement. For the past five years the survey consistently shows that households expect inflation to be above 12 per cent. This inflationary angst is considerably above what used to be the case between 2000 and 2007, when expectations were much lower. The actual inflation rate in early 2002 was barely 1 per cent. This five-year angst also partly explains why there was.............
Major changes in Income Tax Returns (FY 2013 - 14 or AY 2014-15)
...........All salaries taxpayers will now have to give now separate details of LTA (Leave Travel Allowance) and HRA (House Rent Allowance) and other allowances separately. This will help Govt. to track proper claim of such deductions, recent HRA and LTA fallacious claimed by some MPs and Govt. taxpayers may have forced for such changes..............
5 tips on mobile banking security
A recent survey by software security firm Trend Micro says India ranks third among countries most affected by mobile banking malware. Samarpan Dutta tells you how to secure your transactions...........
Read - ET
Read - ET
Shadowy world of money movers
.....As per RBI guidelines, Indian passenger, while going abroad, can carry foreign exchange without any limit provided it is procured from authorised money exchangers. But this is where unauthorised travel agents come in. These agents usually offer discounts on a ticket if a passenger agrees to carry a small consignment. The passenger is often unaware of what the packet contains. Sometimes a group of 10 to 12 people join together and the profit is shared. The currency may be used for payment of smuggled gold. The labour class is most vulnerable. It is often on the basis of doubt that these "carriers" are intercepted at the Mangalore airport.........
Going cashless whole hog
.....The tricity, or a percentage of the upper income group, is, I presume, familiar with newer models of transferring and using money through mobiles on platforms provided by telecom operators like Airtel and Vodafone. Besides cutting down on the use of cash, an avowed goal of the Reserve Bank of India and successive governments for some time now, it also promotes financial inclusion. The earnings for operators for providing the service might not be that lucrative at the moment, but the initiative is meant for the long haul, as it is expected to lead to a substantial cost reduction in the ease of doing business........
Muthoot Finance gets nod for housing loan business
.............After the Reserve Bank of India (RBI) had raised concerns about concentration risk, gold loan NBFCs have been trying to diversify their business. Muthoot Finance has plans to get into insurance and housing finance. While it is still scouting for foreign partners for its insurance business, the current focus is on housing finance as NHB, the agency that promotes housing finance institutions, has given approval...............
Cooperatives brace for a rough ride
..............Four recent decisions that will affect the equilibrium of the cooperative sector have initiated a churning process here ? I-T department's strict enforcement of 80(T) of the I-T Act to levy income tax from cooperative societies, amendment in Banking Regulation Act that bans primary cooperative societies from doing banking business, RBI's directive regarding statutory liquidity ratio (SLR) that may hit the state cooperative bank badly and the 97th amendment of the Constitution enacted in 2011 that has made forming a cooperative society a fundamental right of a person..........
Ramkumar given charge of ICICI Bank's CSR arm
ICICI Bank is set for a change at the senior level. From August, K Ramkumar, ED, will no longer be handling HR but will be responsible for ICICI Foundation -the platform for most of the group's CSR (corporate social responsibility) activities. He will remain a member of the bank's board and continue to be responsible for the other two business verticals customer service & oper ations, and service quality. HR head T Srirang will now report directly to Chanda Kochhar, the bank's MD. Kochhar told TOI that the change in Ram's profile underscores the bank's has always been led by a very commitment to its social initiatives and ICICI Foundation, which has always been led by a very senior person. Given Ram's passion for CSR and his contribution in rolling out the ICICI Academy for Skills, the bank's key CSR initiative last year, he was the person best suited for the role, Kochhar said.
SBI unveils its digital banking initiative
.....The digital stores will be bringing several unique and differentiated offerings to the new-age Indian customers. These include instant issuance of personalised debit cards created through an instant account opening kiosk, instant in-principle loan approval and an interactive dream wall to aid customers in conceptualising their journey towards realizing their financial dreams. "SBI is committed to offering best-in-class services to our increasingly tech-savvy customers and will continue to invest in digital stores to create a superior banking experience," Arundhati Bhattacharya, chairman, State Bank of India, said.............
ICICI Bank to open China, South Africa branches this fiscal: Chanda Kochhar
....................“Our focus is on Indian companies expanding into foreign markets, multinationals from outside coming into India and also the NRIs (non-resident Indians), when it comes to the international banking business.”........................
IFC to infuse Rs 160 cr into Bandhan
........"IFC will shortly infuse Rs 160 crore as Tier II capital in Bandhan", chairman of the MFI Chandra Sekhar Ghosh told PTI. Ghosh was recently at the IFC headquarters in Washington to hold discussions with the World Bank arm, which had shown interest in greater participation in the MFI's transition into a bank.........
Chansrichawla stake in Catholic Syrian Bank falls below 10%
...............The Reserve Bank of India does not want any single promoter to hold more than 10% stake in private banks, and has been pushing such promoters to reduce their stakes. The central bank is more comfortable with dispersed bank shareholding.............
Saturday, July 5, 2014
Former RBI governor: I would give Rajan A+ rating
'No need to set BPL for fin inclusion'
.........Rajan was speaking at a press conference to mark the visit of Queen Maxima of the Netherlands in her capacity as the United Nations secretary general's Special Advocate (UNSGSA) for inclusive finance for development. "There has been a lot of discussion in poverty and my answer is that it does not matter that we have a precise definition as there is so much demand for financial services," said Rajan. He added that what was needed was to create an environment where financial services could expand............
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