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Sunday, July 8, 2012
Underprivileged customers
India’s Journey on the road to Financial Inclusion
The July 2012 issue of eGov, the world’s premier magazine on e-Governance (http://egov.eletsonline.com/)
India’s New Development Agenda - Book review by P.P.Ramachandran
.....The authors of the Report lack a sense of Indian economic history” — a stern indictment indeed. Incidentally, the Committee did not include a member from RBI. ‘ Monetary and Credit Policies’ form the subject matter of part three and has ten essays. There is a critical analysis of policies in the post- reforms period and a stirring call on the part of RBI to evolve a blueprint of area- specific plans to facilitate banks and financial institutions to promote inclusive growth in the real sector. A number of essays analyse credit and monetary policies during 2007- 2009........
SHGs in Konark criticize Canara Bank's delaying tactics to approve loan
Women Self Help Groups representative of Konark NAC area criticize Canara Bank officials' delaying tactics to approve loan. This resentment come into the public during the ‘Canara Grameen Utsav’ which was organized today at Yatriniwas, Konark. The exhibition showcases glorious growth story of Canara Bank . It was inaugurated by Sri S Raman ,Chairman & MD of Canara Bank . S Saha , GM Canara Bank, Bhubaneswar, Sri K K Gupta Chief General Manager NABARD & Shri V Ramachandra Rao, Regional Director RBI were present in this occasion................
God Help Us: We now have three finance ministers
......According to BusinessLine, Rangarajan’s days are packed, with Reserve Bank of India (RBI) Governor Duvvuri Subbarao, and LIC Chairman DK Malhotra set to meet him next week. As a former RBI Governor himself, it is quite clear that Rangarajan’s voice will be heard louder on Mint Street than even Pranab Mukherjee’s. As a known monetary conservative, Rangarajan is sure to back Subbarao’s hawkish stand on inflation, which has meant RBI holding rates high despite the economic slowdown. But Rangarajan’s role will extend beyond guiding monetary policy........
.......For the time being, India has two sort-of FMs – Rangarajan and Ahluwalia. One is there because he is non-controversial, and the other because he is close to Manmohan Singh. And of course, we have the PM-cum-FM. Is three too much of a crowd?
Union Bank to set up 100 'talking' ATMs
Union Bank of India would install 100 ‘talking’ automated teller machines (ATMs) this financial year to enable the visually challenged to carry out ATM transactions. On Saturday, the public sector lender inaugurated its second talking ATM in Thane. The first such ATM was set up on June 6 at the Blind People’s Association campus in Ahmedabad The bank would open 50 such ATMs at Passport Seva Kendras across country........
Tips for safe online and mobile banking
Access to the Internet is now ubiquitous and so its popularity as a medium to make financial transactions is beyond doubt. Such popularity also means the online banking system is constantly prone to attacks........
Textile debt recast meet on July 13
....In a letter to the Union Ministry of Finance last month, the Reserve Bank of India (RBI) said that it had no objection to proposals such for two-year moratorium on term loans and conversion of working capital into working capital term loan. However, the apex bank felt that the asset classification benefit on second restructuring was not justified.......
Little progress on affordable housing ECBs
The big-bang Budget announcement of allowing external commercial borrowings (ECBs) for affordable housing has hardly seen any follow-up action. Government officials and industry stakeholders close to the development indicate the move is unlikely to be implemented anytime soon, as issues like hedging of foreign exchange risks are yet to be resolved. The Ministry of Finance, along with the Reserve Bank of India (RBI), would have to finalise the guidelines and issue a notification on ECB norms............
India outpaces developing world in inflation rankings
..........For policymakers, the worrying bit about the current bout of inflation is that it continues to stay above the comfort zone despite the fact that the Reserve Bank of India (RBI) has been easily the most aggressive Asian central bank..............
Interest-ing times
........In India, similarly, while an RBI rate cut—our columnist Surjit Bhalla estimates a 100 bps cut results in a 0.44 ppt hike in GDP growth—will help, there is no substitute for policy action by the government..............
India Inc has to live with dollar at Rs 50: Kaushik Basu
..... although rupee was depreciating too much, India's apex bank, the Reserve Bank of India, could not resort to sale of too much dollars to prevent a sharper fall in rupee as there was a tendency to panic if foreign exchange reserves dipped.......
OMO to continue to be driven by liquidity judgement: Gokarn
......OMOs are being driven by judgments about liquidity conditions and they will continue to be driven by judgments over liquidity conditions. Whatever is causing liquidity stress whether it is foreign exchange markets or something else, we are focused on maintaining liquidity conditions within the comfort zone that we stated and that will continue to be the benchmark against which we decide whether to do OMOs or not,”........
Decision to raise FIIs investment limit in government debt appears surprising
Former RBI Governor Y V Reddy said recently that some global financial conglomerates are more powerful than even central banks. It is a moot point as to whether these financial bodies are as influential in India's markets, but they are going to benefit for sure from a quick fix and myopic policy to attract capital flows in the near term............
Sticky rupee path
.....“The next few months are difficult. We expect it to remain around 50 and we have to live with that,” he added. Although the rupee was fluctuating “too much”, he said it was not possible to sell dollars to prevent a sharper fall as there was a “tendency of panic” if foreign exchange reserves shrink......
Saturday, July 7, 2012
Dr. Subbarao inaugurates RBI gallery at the Indian Business Museum at the IIM-K
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| Peep into past Duvvuri Subbarao, RBI Governor, takes a look at the photos of his predecessors exhibited at the RBI gallery at the Indian Business Museum in the Indian Institute of Management, Kozhikode, on Friday |
Industry chiefs queue up to meet Rangarajan
If you think the Yojana Bhawan on Parliament Street in the national capital is hogging all the limelight after the Prime Minister took over the Finance portfolio, you are wrong........
......The RBI Governor, Dr D. Subbarao, and the Life Insurance Corporation Chairman, Mr D.K. Malhotra, are also likely to meet Dr Rangarajan soon......
Ban elevator economics
.....Though a policy statement is not expected to provide either a theoretical or empirical backing of its assertions, it nevertheless is expected to have some such support, albeit one lurking in the background. The RBI policy statement accepted that growth had slowed to exceptionally low levels, that headline inflation remained inflated, and concluded that a cut in interest rates would increase inflation without improving investment. So if symmetry holds, as it should, an increase in interest rates would not hurt investment (“relatively small” effect) but would have a disproportionately large effect in reducing inflation. Which is precisely what RBI has been doing for the last year and a half—with the result that both investment and growth have collapsed, and inflation has not moderated. So the RBI policy statement is not supported by either reality, or logic.......
Inflation v/s growth: RBI may not cut rates immediately
....However in India, the central bank is battling inflation versus growth. Inflation measured by the wholesale price index (WPI) for the month of May stood at 7.55%. With monsoon being below average for the month of June, inflation could rise further in the coming month. "Though the economic environment is conducive to a rate cut, high inflation and poor monsoon progress is a concern. Hence the central bank may maintain a status quo in the coming monetary policy," .......
Is RBI the one-eyed hawk in a world of blind bankers?
......Interestingly, since the world is giving away money for free, the pressure will be on the Reserve Bank of India (RBI) to follow suit and cut rates. With a repo rate at 8 percent, the RBI now has probably the highest rate in the world. The question is: is it just a obstinate hawk that refuses to see reason, or it is the one-eyed man in a world led by the blind?....
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