RBI Governor D Subbarao can prove his critics wrong in next policy review

......As he pads up for his last innings at RBI, Subbarao may even come across as a man with greater conviction — like some of his predecessors who reminded you of cricket umpiring legend Dickie Bird, having perfected the art of masking occasional mistakes with confidence and class. He has certainly become wiser: the exit of his imposing deputy — who had to wait till the last moment for a ministry green signal, which never came — was a veiled reminder that someone has to take the blame for failing to heed a blunt message.......

Read - ET

Raghuram Rajan: From financial crisis prophet to next RBI chief?

NEW DELHI: The man widely expected to be next RBI favours clipping the autocratic power of the role and giving more say to a monetary policy committee. Raghuram Rajan, who in 2005 predicted the global financial crisis, also believes that inflation of around 5 percent is "reasonable" in a developing economy, rejecting the notion of a "new normal" for India of 7-8 percent. That's a view shared by the central bank, which has struggled for years to curb inflation and a sign that Rajan would not radically alter the thrust of monetary policy...........

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Subir Gokarn first director for research of Brookings India

Subir Gokarn, the former Deputy Governor of the Reserve Bank of India (RBI), has been named the first director of research for Brookings India. He will also serve as a Brookings Senior Fellow..............

Read | Business Standard

RBI organizes Outreach Program in Galak, Kathua

Reserve Bank of India, Jammu conducted an Outreach Programme today at Galak village in Kathua district as part of its financial inclusion and awareness drive. Jasbir Singh, Executive Director, RBI, Central Office, Mumbai presided over the function and Ms. Zahida Khan, District Development Commissioner, Kathua was the chief guest. Shri A.K. Jain, Deputy General Manager, State Bank of India, Nayeem-Ullah, President, J&K Bank, Vikas Gupta, SDM, Billawar, other senior government officials and bankers attended the programme. A large number of villagers including women, senior citizens, farmers, teachers and students were also present. The Outreach Programme was inaugurated by the Executive Director in presence of a large gathering. In his welcome address, Regional Director, RBI, Jammu K K Saraf highlighted the objective of holding the financial literacy programme in the village. He also explained the Banking Correspondent model through which banking facilities could be availed by the rural masses........

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Obituary

Mr. T.N. Krishnan, Retd. ACO, RBI, Chennai passed away on 12.03.2013. Phone: 044-2431 4949

Hindu

RBI likely to vote for growth in its policy review: Mayaram

........."We believe that the RBI will do a comprehensive and nuanced analysis of the economy and take the right decision and we hope it will vote for growth. I am happy with what he (RBI Governor D Subbarao) has said,"...........

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‘Recession an opportunity to introspect on internal processes’

A recession is an opportunity for the IT industry to introspect on their internal processes and organisation, operational efficiency and quality of their workforce. The situation demands that they optimise on all these fronts, B.L. Deekshatulu, Distinguished Fellow, Institute for Development and Research in Banking Technology, Reserve Bank of India, Hyderabad, said here recently..........

Read - The Hindu

The reasons for a rate cut by RBI

....Economic growth hit a nadir in the December quarter and the latest data do not show much progress since then. RBI data show that bank credit to industry went up a mere 0.8% in January, compared to the preceding month. Bank credit to the services sector declined by 1.1% in January. That indicates economic activity remains extremely sluggish. In short, the signs point to a rate cut next week. Unfortunately, the rate cut in January and reduction in the cash reserve ratio hasn’t been transmitted to borrowers and some banks have instead increased deposit rates.........

Read - Mint

‘Early to talk of a turnaround, but numbers point to it’

......The RBI will do what it thinks is appropriate. They have said repeatedly that they have multiple objectives and they will work on it. Inflation control has been the primary objective and growth is related but not a secondary objective.........

Read - IE

Bullying India’s Central Bank Won’t Help Its Economy

.........Chidambaram’s duel with the RBI is of a piece with global developments. Although countries caught up in the global slump of the last five years initially coordinated their monetary and fiscal survival strategies, the lingering crisis is testing that comity. Indeed, many governments are reconsidering the so-called independence of central banks. Whether this process will eventually lead to a complete rescinding of central bank independence is uncertain, but one thing is definite: The uneasy relationship between fiscal and monetary authorities will certainly get renegotiated......

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India’s rich are the problem

Even as the Reserve Bank of India (RBI) frets over the high rate of inflation and wards off pressures to cut interest rates, it is faced with another challenge. Balance of payments data for the second quarter of 2012-13 show that the current account deficit continues to rise, and has touched a record 5.4 per cent of GDP. Both of these developments that would be considered signs of “overheating” occur at a time when growth is slowing...............

Read - The Hindu

Centre to infuse Rs. 1,154 cr capital into Union Bank

Union Bank of India will see a capital infusion of Rs.1,154 crore by this month-end, said its Executive Director G. Subrahmanyam. An extraordinary general meeting (EGM) of the bank would be held on Saturday to approve the infusion.........

Read - The Hindu

Panel to define FDI, FII formed

.....he Government has constituted a four-member committee headed by Economic Affairs Secretary Arvind Mayaram for giving clear definitions to Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII), with an aim to remove ambiguity over the two types of foreign investments. The DIPP Secretary, an RBI Deputy Governor and a SEBI Whole-time Member are the other members of the “high power committee.”.....

Read - The Hindu

The postal department can deliver banking services to India's ignored hinterlands

.........This is a godsend for the government if exploited adequately. The low level of banking penetration has been a long-running problem, one that is unlikely to be solved by the entry of new banks. The capital costs of establishing banking networks in rural areas as well as the fear of an inadequate customer base are likely to serve as bottlenecks. The evolution of the postal department into a banking entity would neatly swerve around these bottlenecks. This has already worked in countries from Germany to South Africa...........

Read - TOI

More woman power: SEWA bank looks beyond Gujarat

....."While I am happy that the new all-women national bank will further empower women but becoming a scheduled commercial bank was never our idea…we believe in expanding steadily and laterally then vertically,".....

Read - Hindustan Times

Spice Global plans to approach RBI for bank licence

New Delhi: Spice Global is planning to apply to the Reserve Bank of India (RBI) for a bank licence for which guidelines were issued last month. Spice, a $2 billion diversified conglomerate, plans to offer full-fledged banking services; with a focus on smart banking which is showing a 227 per cent annual growth, to its customers, Spice Global on Thursday said in a statement............

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Canara Bank files case against Deccan Chronicle with CB

Public sector lender Canara Bank has filed charges of fraud with the Central Bureau of Investigation (CBI) against Hyderabad-based media group Deccan Chronicle Holdings (DCHL) for siphoning off funds loaned to the company, a top official from the bank told FE. The official added that the bank is simultaneously informing the Reserve Bank of India (RBI) and approaching the Debt Recovery Tribunal (DRT) for recovery of dues through the liquidation of the company’s assets.....

Read - FE

Finance ministry swings into action on money laundering issue

Taking note of allegations of money laundering in three private banks, the government has begun the fact-finding work. Rajiv Takru, Secretary, Department of financial services, told Business Standard over phone that it is an important matter. "The truth has to be established. It will not be glossed over," Takru said. Reserve bank of India is already dealing with the development.........

Read | Business Standard

RBI quizzes 3 private banks on laundering

The Reserve Bank of India on Thursday asked ICICI Bank, HDFC Bank and Axis Bank for information on allegations that they are helping customers convert black money into white as a standard service. Earlier in the day, investigative website Cobrapost, which made this sensational charge, said such illegal conversions, called money laundering, are being done with the full knowledge of the senior managements of the three banks. RBI Deputy Governor Urjit Patel said, “We have been in touch with the banks and have asked for information on the matter.”

The apex bank is expected to follow this up with a formal notice soon.........

Read - Hindustan Times

PSU lenders blame it on 'incentive culture'

 Officials in public sector banks blame the target-driven incentive culture in new generation private banks for the officials' willingness to be complicit in evading anti-money laundering laws. Although most of the suggestions by officials caught on camera are downright illegal, bankers are uncertain whether any offence has been committed as no cash deposits have taken place........

Read - TOI