MUMBAI: Reserve Bank of India Governor Duvvuri Subbarao will meet select bank chief executives on Thursday to discuss risk-based supervision in banks, with recent sting operations on some private banks providing the backdrop. The Governor will be joined by former Deputy Governor Usha Thorat in Mumbai for a half-day workshop that will explore methods by which banking supervision could be strengthened, said two people familiar with the agenda.......
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Monday, March 18, 2013
Remember Caesar's wife
.....As the banking supervisor, the Reserve Bank of India (RBI) needs to look at these claims from the perspective of supervisory efficiency. If, in fact, this was a regular practice by the banks concerned, should it not have come to the notice of the supervisory process? If it did, was this explicitly communicated to the banks that were found to be indulging in this activity? If it didn't, it suggests a lacuna in the supervisory framework......
Rangarajan Sees Elbow Room for RBI Governor
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| The former RBI governor’s statement is significant as he had backed the central bank when it refused to cut rates for most of last year, despite pressure from the government. |
Both hands now
........And since much of the RBI’s actions are predicated on the belief the government is serious about fiscal consolidation, the government’s commitment to a Food Security Bill continues to be worrying, more so given the level of provisioning the Budget has done for food subsidies. Which is why a 25 bps rate cut on Tuesday looks more likely than a 50 bps one.
RBI's Sinha to offer L&T top brass governance tips
MUMBAI: Reserve Bank of India (RBI) Deputy Governor Anand Sinha will address the top brass of engineering conglomerate Larsen & Toubro (L&T) on governance issues in banking, cementing the seriousness of the group's desire to own a bank. Sinha will address the executives on "governance in banks and other financial institutions", says the information posted on RBI's website.......
Read - ET
RBI conducts outreach programme in Nagaland
The Reserve Bank of India conducted a Financial Outreach Programme at Mhainamtsi Village in Peren District today. Addressing as the Chief Guest R. Gandhi, Executive Director, Reserve Bank of India said that during the past few years RBI has been consistently making responsibility to visit villages to spread awareness about the importance of financial inclusion and availability of financial services and products...........
RBI Recruitment 50 Posts of Meritorious Sports persons / Quota 2013
Reserve Bank of India Invites applications from interested Meritorious Sports persons for the following Posts :
RBI should cut interest rates: SBI chairman
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| "At present, the CRR is 4 per cent. It should be reduced to 3.5 per cent and the repo rate, which is at 7.75 per cent, should be reduced to 7.25 per cent. This would result in lowering of interest rates on all loans, which would boost the economy," |
Policy pointers
.....The Finance Minister has made it very clear that having budgeted for a reduction in the fiscal deficit, thus delivering on his promise to keep it within reasonable limits, he expects the RBI to ease monetary policy. There need not be a quid pro quo — after all monetary policy has to take note of inflation challenges, but such has been the impact of the budget messages, backed, as usual, by some strong lobbying that the RBI will have to reduce the policy rate by at least 0.25 percentage points.......
RBI credit policy: Will Mint Street and Dalal Street unite to sustain FII flows?
......The expectation is that the reduction in the fiscal deficit creates conditions for the RBI to cut interest rates and that this will revive private investment. However, as the RBI has pointed out repeatedly, high interest rates are not the principal deterrent to investment today. The real weighted average lending rate in 2011-12 of 3.8% was way below the average of 7% in the boom period 2004-08..........
RBI's largesse may spark rally
......If RBI doesn't cut at all, the market will crash. If RBI does cut by a minimum, the market will lose some ground or, may be, remain, unaffected. If RBI does gamble on kick-starting growth and makes a larger cut of 0.5 per cent, there will be a rally. If Subbarao believes a big cut makes sense, he will probably wait for the next policy review, in April, when there are more data. ......
RBI action: Toss-up between pause and 25 bps cut
........Clearly there is space for monetary policy easing, analysts said. Reasons: Fiscal adjustment is underway with significant reduction in deficit with credible measures and assumptions; also borrowing numbers are realistic. Although there is a case for 25 bps cut, analysts are not sure whether the RBI will cut the key repo rate. "We think that it will be a toss-up between a pause and a 25bps cut," said a note from Deutsche Bank...........
Finance Ministry plans 100% e-refunds
......A Permanent Account Number (PAN) linked with the bank account number, just like Aadhar, is integral to the Income Tax department's plans. It wants the central bank to facilitate this ceding so that the scope of the amount being transferred to a wrong account number is eliminated. However, RBI is not comfortable with the idea of making PAN linkage mandatory for electronic transfer of all income tax refunds. .....
Current account deficit solution lies with Reserve Bank of India
........A weaker rupee will not only help exports become competitive but also provide much needed protection to the domestic industries. It will also help shore up customs revenues. Containing inflation may become more difficult but that seems less difficult now than containing the current account deficit. Therefore, the Finance Minister should talk to the Reserve Bank Governor and find ways of tackling the problem of ballooning current account deficit through appropriate foreign exchange management policy rather than look to changes in Foreign Trade Policy.
CAD: The cad behind stunted growth?
.....In fact, we have to realize that compressing the dimensions of CAD is as imperative as financing the CAD. The CAD of 5 per cent of GDP for 2012- 13 stands as a monument to our mismanagement of macroeconomic policy. The credit of spelling out a more appropriate approach to tackle CAD should go to the Reserve Bank of India ( RBI). " With a lower growth, the sustainable level of CAD is now assessed at around 2.5 per cent of GDP. For minimizing the possibility of external shocks further disrupting India's growth sustainability over the next few years, it is important not only to focus on financing of the CAD, but also on compressing the CAD to lower, manageable levels. Otherwise, there are risks to the CAD from both domestic and external events. In the recent period, the CAD has been managed by improving debt inflows.....
My View on "RBI needs to strengthen its balancesheet: Report"
In the context of GOI expectations expressed through showing an expected receipt of Rs44,000 crore as share of profit/dividends from institutions including RBI(Budget 2013-14), this suggestion to take care of RBI's balance sheet strength gains importance. To ensure that temptations of government emanating from external compulsions do not dilute the strength of RBI’s balance sheet, GOI should take measures to augment the share capital of RBI after carrying out appropriate amendments to RBI Act. Till such time RBI should be allowed to retain surplus income by transfer to reserves. Considering the size of its balance sheet and the internal and external pressures on its income generating capabilities, as also the nature of shocks the Bank has to absorb from time to time, the central bank’s reserves need to be augmented on an ongoing basis.
- M.G.Warrier
Why UFBU and IBA Are Silent on Wage Revision ?
It is now almost two weeks since the scheduled meeting between IBA and UFBU to discuss 10th BPS issues, was postponed. It seems none of the parties are keen to fix even the next date for discussions........
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Debit card for cash, credit card for shopping
.....Such a high level of proportion of debit card-based cash withdrawals from ATMs suggests the cards industry is predominantly made up of bank accountholders taking cash out their savings and deposit accounts and then utilising it. It also indicates the level of savings-based cash coming into the economy from ATMs. Credit card-based ATM withdrawals, which would indicate borrowing-based cash coming out of ATMs, are, however, far smaller in value, compared with debit card withdrawals.......
Vijaya Bank gesture to women
BANGALORE, MAR 14:
Vijaya Bank has announced that it will start three all women branches in Delhi, Mumbai, Bangalore. Also for women entrepreneurs, the bank is offering 25 basis point interest concessions in the MSME advance and additionally, 25 per cent of CGTMSE fees in respect of women entrepreneurs will be borne by the bank............
Pvt banks may be brought under financial inclusion
...............RBI has urged the controlling heads of banks to bestow their personal attention for allocation of villages as well as provision of banking services in these villages. They have also been asked to ensure that fresh opening of adequate number of brick and mortar branches in these un-banked villages are factored in their annual branch expansion plan submitted by the bank's head office to RBI..................
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