........Nevertheless, actions with regard to monetary policy alone cannot revive the growth. These have to be supplemented by efforts towards easing the supply factors and stepping up public investments along with continuing commitment of the government to fiscal consolidation. The Monetary authority- RBI, as such, is exercising its obligatory alertness against possibilities of resurgence of inflationary pressures. The RBI has undisputedly evolved itself into one of the most alert monetary pulse readers and acts real time. ............
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.
Monday, May 13, 2013
Monetary policy: Highly subdued, devoid of any nudge
....The overall message one can infer from this policy is that RBI can think of easing monetary policy further only if inflation is brought under threshold level and other requirements which basically come under the domain of the Government to give a thrust to the growth of the economy are in place......
NABARD shifts blame for corporate warehousing scheme to FinMin, RBI
In the eye of the storm for funding corporate warehousing projects on terms far softer than those offered to poor farmers, the National Bank for Agriculture and Rural Development (NABARD) is now blaming the Ministry of Finance (MoF) and the Reserve Bank of India (RBI) for the transgressions.........
RBI’s misplaced agenda in J&K
......The reason for RBI seeking its application is rather simple and borders on being innocent: the inapplicability of SARFAESI hampers lending by commercial banks in the state. Ergo, the credit deposit ratio (CDR) is abysmally low. This is at best a partial truth. SARFAESI is neither a necessary nor a sufficient condition for bank lending. At worst, inapplicability of SARFAESI should increase the risk of lending in J&K which, in turn, should have an impact on the pricing of loans and not the volume of lending. Be that as it may, Subbarao will do well to look at RBI’s own annual publication............
'Collectors' rush to make hay as coins become rare in Bangalore
Will the real inflation rate stand up please?
......The RBI often says it looks at all inflation measures. But by announcing a formal forecast only for WPI inflation, it pretty much confirms that it cares less about retail inflation. This preference for the WPI is also responsible for the weak fight against retail inflation. The central bank's approach has resulted in a perverse outcome of two perceptions of inflation.......
Growth forecasts: fanciful or realistic
...........These developments were fairly obvious even to the uninitiated. Maybe, an expert body like the EAC was constrained in not having a forum to update its forecasts. Its reports are published twice a year. The RBI has eight policy statements which it can use to revise its projections. Explanations apart the EAC and some other institutions, notably the Planning Commission, should disabuse the notion that they are being deliberately optimistic and puff up projections............
A fraud prevention body?
.....Specific bodies (such as RBI and Sebi) either individually or together require to be assigned the responsibility of identifying and preventing such Ponzi schemes. The regulators would have to be adequately equipped with human and other resources for such regulation as well as being suitably empowered in legal terms........
RBI’s rate cut benefits new borrowers only
.......This anomaly is mainly because when RBI cuts its policy rates to provide cheaper liquidity to banks, they instead of cutting their benchmark rate, which is called base rate, lower the margin that they charge over and above the base rate...........
Tilak Memorial blanks RBI
Tilak Memorial blanked Reserve Bank of India 4-0, while Jupiter edged past Southern Blues by an odd goal in five, on the opening day of the BDFA ‘B’ division football league here on Friday......
Read - The Hindu
Read - The Hindu
Sale of Top Jobs in Railways Nailed - Is Banking Sector Not Equally Guilty for Sale of Top Jobs ?
........This transparency is necessary to expose the nexus between Members of the Boards of banks and politicians / bureaucrats in the light of Bansal episode. If RBI fails to do so, let such relations be exposed at social websites like Face Book from where these will be picked up by media persons and hopefully bring greater transparency. I wish some honest people in RBI and CBI will listen to our feeble voice.
Smart phones take banking to a new high
.....“Branch banking serves customers from the old generations even today. The dependence on branch banking was reduced by 75% with the introduction of Automatic Teller Machines. Then came internet banking, which further reduced the number of customers visiting bank branches. But in the past one year or so, following the revolution of mobile internet protocol, the number of users has registered a growth of eight times,” ..........
Prepaid debit cards: A weak link in bank security
A brazen gang of cyber criminals, who stole $45 million from bank ATMs in 27 countries, exposes an Achilles heel in the global financial industry: prepaid debit cards. Cyber security experts and industry analysts say the burgeoning use of prepaid debit cards for everything from gift certificates to disaster relief handouts is making it easier for hackers to withdraw large amounts of money before detection.............
Regulation for financial consumer protection – present status and future directions
Opening remarks by Dr K C Chakrabarty, Deputy Governor of the Reserve Bank of India, at the Conference of Principal Code Compliance Officers – 2013, organized by the Banking Codes and Standards Board of India (BCSBI), College of Agricultural Banking, Pune, 29 April 2013
.......I believe that an important cause for deficient customer service is the inability of banks to understand the specific expectations of diverse customer groups and to devise product, pricing and delivery strategies that are best suited to meet these expectations. Many banks would not be aware of the number of customers they have or the number of products they offer. While a plethora of products might be available on paper, many of them might not be actively offered to customers. Hence, understanding their customers and understanding their own product offerings needs to be the starting point of any customer service framework......
RIL's Rs 83,000 crore cash pile: A hint of impending big-bang acquisitions?
...A perusal of the annual report for fiscal year 2013 shows there has been some big shifting of cash in the RIL treasury. Around Rs 15,720 crore held as certificate of deposits (CDs) with banks has been liquidated. The move was forced in a way as the Reserve Bank of India (RBI) frowned upon the practice of banks creating these CDs with high interest rates towards the end of a financial year to spruce up the balance sheet. The RBI asked banks not to create such CDs and as a result this chunk of money had to be shifted. Most of this money (Rs 12,000 crore) seems to have moved to a category of unquoted mutual funds............
‘Use Ombudsman scheme for loans’
Students facing difficulties in obtaining educational loans from banks to pursue higher studies can make use of the Banking Ombudsman Scheme under the aegis of the Reserve Bank of India, Collector P Sankar said.......
Return of the moneylender
The indebted farmer has not only provided raw material for great literature but has also been a burning public policy challenge in India. A working paper released by the Reserve Bank of India last week is a timely reminder of the challenges that still lie ahead...........
Blocking investments
.............But the Reserve Bank of India (RBI) under Governor D Subbarao is already making enough effort to make this a steep climb, independent of the political shenanigans. The problem is the way the know your customer (KYC) guidelines are being deployed as a shield to block than unleash the flow of money..............
2 Rose Valley executives in 3-day police custody
......Moreover, neither Reserve Bank of India (RBI) nor Securities and Exchange Board of India ( SEBI) allowed them to collect funds under different market investment schemes in Tripura. But Rose Valley had been doing the same over the years.........
Chit funds, the south side story
..........In India, where banking penetration is still very low (40 per cent of the households still remain unbanked), chit funds have been one of the major means of multiplying money, especially in the rural parts of the country. The number of households participating in chit funds stands at 5-10 per cent of the total household population in each state (except in Delhi, the figures for which are not available). According to a study by the Institute for Financial Management and Research, Chennai, money circulated through chit funds is an average of around Rs 50,000 per household (except Kerala).............
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