..........Most critics of central bank policy say that the RBI has given up promoting growth at the expense of inflation control, and what the country needs more of is growth. The truth is that growth depends on much more than just interest-rate cuts or accommodative monetary policy. So, what is the likely focus of monetary policy action in the coming months? ..........
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Wednesday, May 8, 2013
My wish list for Dr. D Subbarao
.........On pattern of RBI Jammu office, the summer capital (Srinagar) of J&K too deserves an office to avoid any biases. RBI can think of setting a training institute over here which most of its officers would love to come here for their trainings.............
Need of centralised infra for bill payments: RBI panel
........In a report released on Tuesday, the committee chaired by executive director G Padmanabhan said IBPS would be the centralised infrastructure connecting the billers through the aggregators and the customers through the customer service points, for management of all bill payments in the country. The committee said there is a need for developing an electronic bill payment system based on a GIRO model for payment of dues of essential services, insurance premium, utility payments, taxes, etc.......
Is our banking system flawed?
......Although the sting operation has tended to sensationalize things, it could lead to a purge in the entire system. Indeed the Reserve Bank of India (RBI), which doesn’t like to talk too much about the probe that it set in motion after the allegations were first made, has initiated steps to streamline wealth management offerings by banks, apart from the sale of mutual fund and insurance products along with the incentives associated with these. One very critical step is the proposal to segregate marketing and transactional banking. The noise on the sting operations should also encourage the banking system to do some soul searching and change some of the old practices, beyond branch banking and the sale of financial products............
Indian Rural Banking Sector: Big Challenges and the Road Ahead
Speech delivered by Dr Deepali Pant Joshi, Executive Director, Reserve Bank of India at MITE Mangalore on May 04, 2013
......Reserve Bank has been furthering financial inclusion in a mission mode through a combination of strategies ranging from relaxation of regulatory guidelines, provision of new products and other supportive measures to achieve sustainable and scalable Financial Inclusion. A structured and planned approach was followed under financial inclusion wherein all banks were advised in January 2010 to prepare Board approved Financial Inclusion Plans (FIPs) congruent with their business strategies and comparative advantage for three year period extending up to 2013. The implementation of these plans was closely monitored by the Reserve Bank through quantitative & qualitative reporting formats and through review meetings held with CMDs/CEOs and other senior officials of banks..........
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Financial inclusion is the key to a robust Indian economy
.....The pace of growth of financial inclusion is painfully slow. Private sector banks are loath to open branches in rural areas where costs are much higher than profits. Public sector banks move too slowly to make a significant impact. Prominent para-banking institutions, chit-funds, daily collection schemes have tried to bridge the gap but have more often than not duped the depositors. The RBI and finance ministry must place this as their top priority. Bringing millions more into the formal banking sector may not benefit the banks in the short term but will add a big boost to the economy........
Life could get easier for bank customers
Your borrowing cost might not come down in a hurry. But the Reserve Bank of India (RBI) has set a strong agenda in the next few months to make life easier for bank customers. In its Annual Monetary Policy, the apex bank has asked the Indian Banks’ Association to ensure the Damodaran committee report is implemented. There are several good proposals made by this committee, such as .........
‘Self-study’ mantra worked for a tailor’s daughter Parul as she tops Rajasthan Class 12 board exams
Jaipur: Ashok Gahlot, who is a tailor by profession, must be very proud of his daughter Parul Gahlot. Parul topped the Rajasthan Board Class 12 (Commerce) with 94.6% marks. She aspires to become the RBI Governor........
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Decoding Subbarao’s signals
RBI opens new window
....The RBI understands this as most policymakers would. But New Delhi must give the impression of acting and the only way it can do that is to get others to act — and pass the buck. For its part, the RBI sticks to its knitting and behaves accordingly. The statement it issued last week reminds us of the mandate it has: To consider, above all, inflation and, by implication, its deleterious impact on the entire economy.......
WPI-CPI divergence confounds RBI
.....What puzzles is the guidance: the balance of risks arising from this inflation growth dynamic leave “little space” for further easing; indeed, the dark picture of inflation and current account deficit risks presented in its macroeconomic assessment the previous day persuaded many in the market to believe that there may be “no space” for easing the next day itself! It was little surprise that stocks fell and yields rose at the inflation-speak, notwithstanding the quarter per cent interest rate cut.......
Lack of govt spending hits liquidity
.....“Banks instead of borrowing from the LAF window, will be getting these securities through some other window. Overall it will not change the liquidity situation, it will change the costs to the government. We will come to a decision when we conclude our discussions with the government,”...........
Cobrapost: 15 bank staff suspended
A day after online media firm Cobrapost made money-laundering allegations against the employees of banks and insurance companies, public sector banks mentioned in the sting operation suspended 15 employees and took action against 16 others...........
The mess of Sahara’s account books: Consumer Forum asks its to pay Rs 50,000
..............The District Consumer Forum, however, said, the said passbook-cum-certificate bears endorsement to the effect that a sum of Rs81,287. "The endorsement bears the official seal of the opposite party along with the signature of the Branch Manager, nor have they averred that the endorsement is a forged one. In the aforesaid circumstances, it can safely be concluded that the endorsement of the pass book has been made by the then Branch Manager of the opposite parties (OPs-Sahara) after the receipt of the loan amount along with the interest........
Cobrapost sting: Only gun was pointed. Nobody got shot
...........This government and regulators have the right attitude. They’ve given the investigation of Cobrapost season two to an industry association of banks. An industry lobby group is just the right authority to do this work. Why, it is the same body that lobbied to keep effective interest rates on savings deposits at 0% for decades........
How much longer can the FM, RBI ignore HSBC in India?
..............The allegation being made about HSBC in India are demanding money with menace, make threats to register people with credit bureaus (for e.g. CIBIL), direct sales agents (DSAs) falsely telling customers the credit card was free for life, customer’s being threatened, intimidated and blackmailed by staff. Some customers being asked to sign blank letters of instructions (LOIs), credit card statements not appearing for years, falsely registering with CIBIL, failing to comply with the rules and regulations. Violating people’s rights and violating the Indian Penal Code (IPC)................
RBI clarifications on new bank licences shortly
.........The Minister said RBI has reported about several emails, phone calls and requests for appointments, seeking clarifications on the guidelines. "As the clarifications on those queries would be an extension of the guidelines and would be of larger interest, RBI has considered that every clarification should be publicly disseminated which would avoid repetitive queries and also ensure a level playing field," .........
CPM gives 'mysterious foursome' twist to scam
........Explaining the need for a joint inquiry by the CBIand central agencies such as RBI into the Ponzi scam, Deb gave a new twist to the controversy hinting at a "mysterious meeting of four" in Delhi's Hotel Samrat before the scam came to the surface. Deb held that investigation by central agencies might throw light into this grey area.......
IMG set up to suggest ways to tackle ponzi scheme menace
Amid rising instances of people being defrauded by ponzi schemes, the government has set up an inter-ministerial group to suggest ways to tackle fraudulent money pooling activities and protect the interest of investors. Representatives from the Finance and Corporate Affairs Ministries, Reserve Bank of India (RBI) and Securities and Exchange Board of India (Sebi) will be members of the inter- ministerial group (IMG).........
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