Eurozone crisis may be over by Sept: Subbarao

........The RBI Governor, a 1972 batch IAS officer, said, "I was appointed Governor on September 5, 2008 and two weeks later the Lehman Brothers collapsed ... So there was an association with Subbarao becoming the Governor and the world economic crisis." Subbarao further said, "So my term was initially for three years. So people thought when my term will be over, the crisis will be over because there was a co-relation between Subbarao and financial crisis." And then in August 2011, he said the government renewed his term for two more years. "And two days after that Eurozone crisis happened. So again it established a co-relation. So, that is why eurozone crisis and the global crisis will be over when my term comes to an end," he said..........

Read | Business Standard

5-6 pc growth not sufficient: RBI Governor

........"If we do the right things, we can get back on the track of the double digit growth,"...........

Read - ET

Market sees RBI cutting rates 50 bps by Sep

The governments seriousness about narrowing its fiscal deficit, coupled with the weak gross domestic product (GDP) numbers, might prompt the Reserve Bank of India (RBI) to cut interest rate later this month, market participants said. With GDP growth slowing to 4.5 per cent in the third quarter and Finance Minister P Chidambaram pegging fiscal deficit at 4.8 per cent of GDP in 2013-14, after 5.2 per cent this year, the Street expects RBI to cut repo rate 50 bps, in two tranches, before the end of the first half of 2013-14 the first, of 25 bps, on March 19...........

Read | Business Standard

Workshop on foreign exchange issues on Mar 4

BHOPAL: Reserve Bank of India (RBI), Bhopal will organize a workshop on Foreign Exchange Management Act, (FEMA) on March 4, at Samanvay Bhawan in Apex bank premises. RBI Deputy Governor, HR Khan will chair the interactive sessions, an RBI release said on Saturday..........

Read - TOI

Luncheon meet with Dr.Sandip

'Farewell' to 'Welfare' persona

It is now known to all that Dr.Sandip Ghose, CGM-I-C, HRMD will be saying goodbye to RBI this month end.  On a Re-Tyring mode, he will take over as Director, National Institute of Securities Market - NISM (An educational initiative by SEBI).  Normally, farewell is given on or after retirement.  

But, always on its toes, RBI PS Fraternity thought it fit to jump ahead and be the first to get him for the 'Farewell'. A true Friend, Philosopher and Guide to the PS Fraternity, Dr Sandip accepted the invitation of a Luncheon Meet, which was organised on Sunday, the 3rd March 2013 at Kharghar Quarters Community Hall, Navi Mumbai.  

A sporting woman supporting the successful Sandip - Smt. Jayanti's presence at the Meet was notable. S/Shri Shekhar Bhatnagar, Officer-in-Charge, Belapur - Navi Mumbai Office and Bazil Shaikh, Chief General Manager & Secretary, Secretary's Department joined the Meet. Speaking on the occasion, they praised Sandip.  

Among others who attended the Meet, Re-Tyred colleagues S/Shri R.Sridharan, Raghu Gujar and Smt Rita Fernandes were also seen.  Shri Pawan Kumar took a flight from Delhi not to miss the   'farewell bus'. R.Sridharan and Mangesh Tarambale spoke on the occasion. Smt Jayashree Ramnath expressed herself by singing a hindi song. Dr. Sandip delivered a very thought provoking speech but became emotional while interacting with the PSs. He was given a memento by the PS Fraternity.

Shri Surendrababu Pillai compered the programme in a professional way. S/Shri Anand Amin, Kiran Mahadik, Narendra Keni, Vilas Sawant and Arun Raut had taken all the pains for the "Meeting Point" and "Eating Joint". Amar Pahujani captured' the golden moments.

The "Brand Sandip" will always be close to the heart of the PS Fraternity !!!

- Mangesh Tarambale

(Photo courtsey : Amar Pahujani)

RBI dy guvs extension

The recent notification of Anand Sinhas extension of appointment clearly states: Shri Anand Sinha... appointed as deputy governor, Reserve Bank of India... for a period up to 28.02.2013, is hereby continued as deputy governor, Reserve Bank of India until 18.01.2014 when he completes the tenure of three years from the date on which he assumed office, i.e. 19.01.2011. This makes it clear that the extension of Sinhas appointment is consistent with government guidelines, and there was no special dispensation.

Alpana Killawala

Chief General Manager

Department of Communication

Reserve Bank of India, Mumbai

Read | Business Standard

How the govt chooses PSU bank CEOs

How does the government of India, majority owner of public sector banks that roughly account for 70% of the banking industry and a key growth driver in the world’s 10th largest economy, choose the chief executives of such banks? A peek into the board room at the Reserve Bank of India’s (RBI) regional office on Delhi’s Parliament Street on 11 February would have given you an idea..........

Read - Mint

The philosophy of financial inclusion and rural credit - DR. N. A. MUJUMDAR

.....It has now been realised that physical reach is only the beginning of the process of financial inclusion, which cannot be reduced to mere tokenism. The focus should now be on multiplying the number and volume of transactions in these accounts. The Reserve Bank of India ( RBI) has now addressed the issue of giving a qualitative content to the concept of financial inclusion. Banks have been advised to offer a minimum of four basic products to these customers: a basic savings bank deposit account with emergency credit facility like overdraft; a remittance product for electronic benefit transfer, a savings product like a recurring deposit and a facility for entrepreneurial credit, like general credit or ' Kisan Card.' We are thus taking the process of financial inclusion a step further......

Read - FPJ

A quiet focus on financial sector

......In the present Indian context, supervision of financial conglomerates is a big issue. The latest guidelines issued by the Reserve Bank of India (RBI) for licensing new banks have drawn attention to it in a big way. Since India is fast integrating with the rest of the world, it is necessary to keep an informed watch on the competitiveness of Indian financial sector.......

Read - The Hindu

Bank jobs are now in big demand

.....According to Jyothi Ghosh, Chief General Manager, State Bank of Hyderabad, a candidate from Harvard attended the interview but was not selected because the bank felt he was ‘overqualified’ and would definitely leave at the first good offer. This could point to two trends.....

Read - HBL

RBI puts Surat bank under directions

......Surat Nagrik Sahkari Bank managing director Samir Patchigar told TOI, "We are shocked with the RBI's decision. We got a one-page letter saying the bank was under directions and no reasons were given by the RBI." Patchigar said the bank was awaiting approval from RBI headquarters in Mumbai for its merger with Mehsana Urban Cooperative Bank. RBI Ahmedabad had already cleared the merger proposal............

Read - TOI

Five changes you need to know about your credit/debit cards

.......In fact, the day the country’s Finance Minister gave his budget speech, the RBI silently put in place its guidelines for banks for risk mitigation for electronic payments, which includes cards as well as net banking transactions. Here’s a quick list of what to expect, and the change you should know about the same............

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Dont just pay tax; file return as well

With March 31 approaching, its time to check whether you have fulfilled all the tax-filing commitments. The important deadlines to remember are March 15 (the last date for paying advance tax), March 31 (for investing in tax-saving instruments), and July 31 (for filing tax returns). In case you miss the date, you can file the return before March 31, 2014. But you will be charged a penalty of 1 per cent of the taxable amount, for every month of delay...................

Read | Business Standard

Senior citizens feel the pinch as banks reduce extra interest on fixed deposits

.....Public sector banks have started cutting the additional interest (or premium) they pay on fixed deposits of these citizens. The move may have been prompted by the Finance Minister’s observation at a meeting with public sector bank chiefs in November that the additional interest for senior citizens may be reasonable but not excessive, say bankers........

Read - HBL

Banks in Delhi flout RBI rules, demand both ID, address proof

Despite the clear directions of Reserve Bank of India (RBI) to accept one document for both identity and address proof if it bears address of the applicant and accept only self declaration to transfer account from one branch to another, the banks in Delhi and NCR insist on separate documents for identity and address proof. Further, self declaration of address frowned upon by the banks.......

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Ministers sore with bankers on loans to private dairies

.....Upset with officials from public sector banks and the National Bank for Agriculture and Rural Development in the district encouraging private dairies at the cost of the state government's “Jeevan Kranti” scheme, Municipal Administration Minister M Mahidhar Reddy suggested to the chair to adopt a resolution. Ongole MP M.Srinivasulu Reddy said he would take up the matter with Union Finance Minister P.Chidambaram and also RBI officials......

Read - The Hindu

Banks in race to woo depositors

.....Many public sector banks have already launched their tax saving deposit schemes targeting these investors. State Bank of India has advertised its deposits scheme with a 5-year tenor offering 16.64 per cent effective annual yield in general and as much as 17.39 per cent for senior citizens. It has calculated these returns for investors in the higher tax bracket of 30 per cent and the rate of interest at 8.50 per cent for general investors and 9 per cent  for senior citizens......

Read - The Hindu

IndiGo seeks RBI nod for $849 mn aircraft acquisition loan

...........Indicating a change of strategy,  IndiGo has made an application to RBI to raise funds through external commercial borrowing route. Information on the RBI website reveals that the loan will be used for "import of capital goods'' and will be for term of 14 years. IndiGo did not respond to an email on the issue. Analysts see the airline's move to approach RBI as prudent............

Read | Business Standard

New bank aspirants roping in former top brass as independent directors

Former public sector bank chiefs and executive directors may find themselves in the thick of things as the Reserve Bank of India (RBI) wants private sector banks which will be set up in the future to have majority of independent directors on their board. In view of this, veteran bankers who have helmed public sector banks are seen as being pre-eminently placed to take up the responsibility, say analysts......

Read - HBL

New bank licences: the meaning of inclusion

.................The second phase in which two banks were licensed did not change fundamentals. RBI’s policy guidelines indicate that the learning from the earlier experiences informs them, but they don’t contain game-changing conditionalities. What is the strategy of RBI on regional, sectoral and aggregation disparity? Will any of the new players come out with a business plan that will appeal to RBI on this count? Is there a game-changer applicant lurking out there? It will be interesting to watch this space.

Read - Mint