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Monday, March 25, 2013
Capital flow conundrums - Dr.Subir Gokarn
Blood donation camp
Imphal, Mar 23 : 27 Assam Rifles of 28 Sector under HQ IGAR (South) participated in a Blood Donation Camp organised by Blood Bank RIMS Imphal and RBI Guwahati on 23 Mar 2013 at Charang Pat Makhlang in Thoubal District. Blood donation is one of the noblest gestures of humanity which promotes fraternity, unity and brotherhood and also serves to ensure peace, prosperity & progress of the nation.........
RBI Outreach Programme held
.....As part of the village outreach programme of RBI, Executive Director Gopalakrishna and Regional Director Jena interacted with school students. As a part of the RBI's initiative of financial awareness programmes, UBI organized a free health check-up camp at the village and SBI extended note/coin exchange facility to the public as an effort to be in line with RBI's clean note policy.........
RBI top official backs one account per family
..........."The RBI wants every family of the country to have at least one account in any bank. If they are very poor, provisions have been made so that accounts can be opened with zero balance,"...............
All women bank branch inaugurated at Muzaffarpur
.........The branch is 100th of the North Bihar Grameen Bank in the state, bank sources said. Regional Director of Reserve Bank of India P K Jena, NABARD Chief General Manager D B Despandey and other senior bank employees were present on the occasion.
Protest against directive on banks
The State unit of All-India Bank Officers Confederation (AIBOC) has protested against the directive to keep bank offices open on Good Friday and Easter Sunday. Abraham Shaji John, secretary of the State unit of AIBOC, said here that the directive infringed upon the religious rights of Christian bank officers and employees. The directive is learnt to have been issued by the Ministry of Finance through the Reserve Bank of India...............
Getting regulation right
...........To the extent the idea is to prevent cases from falling between the cracks, it is a good one—the HLCC mechanism that preceded the FSDC didn’t really work and FSDC hasn’t had to deal with any crisis. While there are issues over an RBI sans a DMO—who will ensure banks buy government paper and if the DMO is part of the finance ministry, this creates moral hazard—the real challenge will be in staffing the UFA. If the idea is just to staff it with Sebi/Irda/Pfrda/FMC personnel, it’s not clear how it will work—indeed, over-centralisation could be a new problem.........
Former regulators cold to super-regulator plan
The proposal of the Financial Sector Legislative Reforms Commission (FSLRC) to have a unified regulator for the financial sector has not gone down well with former regulators of various financial sectors. Former regulators and industry experts are of the view that a super-regulator would not be able to do justice in addressing the varied problems that each of the financial sector faces........
Search for structure
................ Of course, for the potential benefits to be realised, legislation is only part of the story. Organisational structure, human capital and performance incentives are all issues that have dogged regulators in the old model; they will probably pose an even more significant challenge in this more complex scenario. As always, the battle can be won or lost in translating good intentions into workable solutions.
Why High Finance Needs Just One Regulator
............The
next question: should the RBI be kept out of the unified agency, making
it a half-way house? Ideally, the RBI should be allowed to oversee
banking and payments at least for the next five years for the simple
reason that it has been able to manage monetary policy better when it
supervises banks, manages forex reserves and also government debt............
The angry optimist
............."There is no policy maker in the world who has targeted monetary policy on the basis of the current account deficit. Name one." He expounds on that, and says he's working on some research that examines, using the Taylor Rule, which central banks have done well and which done poorly in meeting their goals. His conclusion? "By far the worst central bank in the world in 2011 was the RBI.".........
We are taking steps to improve the overall investment climate: C Rangarajan
..............The term used is 'stagflationary tendencies' in developing economies as a whole, including India, to describe a situation where growth below trend and high inflation co-exist. The paper does not use the word 'stagflation', which has a very specific connotation in economic literature. We are still growing at around five per cent (yearly) and I expect the growth rate to pick up further in the next financial year...............
District co-op banks told to introduce core banking
.........“Initially,
all DCC banks will have to implement the core banking system, wherein
information of all accounts will be available on the bank’s intranet, so
that basic transactions can be carried out at any branch. This
technology is successfully used in all private and public sector banks
in the country. Some urban cooperative banks have also implemented this
technology.”........
Read - TOI
Race hots up for IDBI top post
The
post of chairman is set to fall vacant at IDBI Bank around mid-2013
when incumbent R M Malla retires. According to sources, Balkrishna
Batra, deputy MD, has been shortlisted for the top post. Batra, an IDBI
veteran, has been looking after the corporate banking function. Also in
the reckoning is Sushil Munhot, chief executive of SIDBI and an IDBI
Bank veteran of 28 years. Although Munhot has not been interviewed for
the position, insiders say that his appointment is possible since he is
already a chief executive and this would be a lateral movement.
TOI
TOI
Sharp business practices of banks need to be curbed
Central bankers, as a breed, are known for their reticence and taciturn countenance. Markets and the media alike scramble to read between the lines when central bankers speak. Not so with Reserve Bank of India’s Deputy Governor, K.C. Chakrabarty, who is an atypical central banker. He speaks his mind, and when he does so, he is an absolute delight for the media................
RBI trying to mask regulatory mechanism failure: Cobrapost
......Criticising RBI Deputy Governor K.C. Chakrabarty’s statement in which he had said that there was no scam behind the alleged Cobrapost expose, the online portal’s Editor, Aniruddha Bahal, said it was a “brazen attempt” by the senior RBI official to give a clean chit to these banks – ICICI Bank, HDFC Bank and Axis Bank – even before probe into the matter was over. “The manner in which the RBI Deputy Governor has rushed to issue the statement, even before the Central Bank could complete the inquest it has initiated into money laundering practices by the three banks, even before these banks could complete their own investigations into the alleged misdemeanour of their officials, and even before the Income Tax Department could come up with its own finding, is tantamount to be self-serving and is a brazen attempt on the part of the Deputy Governor to not only give these banks a clean chit but also mask the miserable failure of the banking regulatory mechanism of the RBI,”......
Single ID across banks can deter money laundering: Experts
..........An implementation of unique customer identity across banks and insurance companies, strong Know Your Customer Practices, and exemplary penalties or punishment for staff to ensure compliance are some of the solutions that can help to prevent money laundering and the black money racket, which are damaging the country like woodboring beetles.............
‘Banking sector has bright future’
Role of bankers in facilitating development and implementing social initiatives of the government, including direct benefit transfer, is significant, according to K.P. Muralidharan, general manager, Syndicate Bank........
Populism in Indian banking
.................The Reserve Bank of India (RBI), for instance, obligates both public and private banks to allocate about 40% of their total loan advances towards supporting the so-called priority sectors such as agriculture, small-scale industries, housing and education, apart from specific branch requirements. It is obvious that neither RBI nor the government can know if borrowers in priority sectors are creditworthy, or if it is economically viable for banks to open branches in rural areas. The huge pile of non-performing assets (NPAs) in the balance sheets of banks points to the adverse effects of such institutional fiddling with banks...............
Signalling key issues
......The CRR remains at an all time low of 4 per cent. Many bankers, led by SBI Chairman, feel that the CRR needs to be done away with. The reasoning is that the bank funds kept impounded with the RBI earn little or no interest. Its use as a policy instrument is questionable in a vastly changed environment.....
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