When N R Pillai, a retired Assistant General Manager of the Reserve Bank of India, was accompanying His Holiness Swami Sankaracharya Onkaranand Saraswathi, the head of the Prayag Peeth, on a visit to the Lord Krishna temple in Guruvayur, he received a call on his mobile. Dr Mohammed Syed, a trustee of the Cheraman Mosque, asked whether Swami Saraswathi would drop in at the mosque on the way back to Kochi. The Swamiji readily agreed.............
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.
Saturday, May 18, 2013
Friday, May 17, 2013
Monetary policy in a cauldron - S.S.Tarapore
......A reduction in the cash reserve ratio requirements for banks would have been more damaging. Again, the RBI needs to be parsimonious in undertaking open market purchases of securities. The next Mid-Quarter Monetary Policy Review on June 17 and the First Quarterly Review on July 30 should be strategically used by the RBI to resist pressures for easing monetary policy.........
Getting RBI communication right - CHARAN SINGH
............In India, in the context of global market integration and increasing demand from media, there has been a significant progress in removing the mystique surrounding monetary policy as reasoned by YV Reddy (2008). RBI ensures a high degree of transparency about its objectives, policy formulation, and decision making as it helps to increase the effectiveness of monetary policy by promoting more informed decision making by economic agents. RBI’s communication policy involves regular publications, monetary policy documents, research studies and special speeches. In all cases, RBI’s communication has been improving over the years, especially in terms of number of speeches delivered by the top management across the world, mainly in India...............
Market and media’s Mahabharata syndrome
........The next paragraph of the report quoted Subbarao, saying at an event in Frankfurt the previous day, “We certainly will take note of the softening of inflation and the external payments situation in the next mid-quarter policy statement on 17 June.” A Bloomberg report too highlighted the inflation part in the beginning and later said he would take note of both while forming the policy in June. In other words, Subbarao made a general statement that he would take into consideration both the fall in inflation as well as trade but the media—both newspapers and websites—as well as the market chose to listen to only one part of his statement..........
Reforms’ unintended fallout
A mint-fresh working paper by the Reserve Bank of India once again trains the spotlight on a problem that, for five decades, every policy-maker has planned to snuff out, failed to, and then wished it would go away if ignored. But financial exclusion simply hasn’t, and we now have the central bank applying its forensic skills to an examination of its magnitude. The title of Working Paper Series 5/20/13 is almost admonitory: “Persistence of Informal Credit in Rural India: Regulatory Policies Need to Recognise Changing Landscape.” Authored by Narayan Chandra Pradhan, the paper is an updation of sorts; it puts together all extant surveys on indebtedness, the formal and informal channels of rural credit recorded from 1971-72 to 2002-03 by various agencies.............
VITALCATION..................
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| VITALINFO on vacation mode............... Will resume on 27th May 2013. Till then bye................. |
Obituary
I am sorry to advise you of the sad demise of Shri Madhav.D.Shinde, in Mumbai on May 13, 2013. He was 86 years old and had served in DESACS for a number of years as Assistant General Manager. He eventually joined NABARD, from where he retired. May his soul rest in peace.
- P.P.Ramachandran (via e-mail)
Mom and me contest
The results are in for The Hindu MetroPlus ‘Mom and Me’ photo contest, held to celebrate Mother’s Day. Readers were invited to send in their favourite photos of themselves with their mothers.............
ROSHAN KRISHNA AND RAJI GOWRISHANKAR
F-48, RBI Officers Quarters, Belhaven Gardens, Kowdiar, Thiruvananthapuram-695003. The best five entries have won gift coupons for..........
Read - The Hindu
RBI’s proposal a boon to SMEs
Recommendation of Reserve Bank of India’s technical committee to include export credit under the priority sector lending portfolio of all commercial banks is a boon for the predominant Small and Medium Enterprises (SMEs) in export hubs like Tirupur as the move will increase flow of finance...........
HC has wide powers to issue writs against cooperative banks
........The full bench comprising Chief Justice A M Khanwilkar, Justice R B Misra and Justice D D Sud on a question as to whether the Kangra Central Co-operative Bank and other cooperative banks are within the meaning of Article 12 of the Constitution of India, observed that in exercise of powers under Article 226 of the Constitution of India, writs or orders can be issued even against any person or authority, if facts and situation of the case so warrant..............
Banks are not providing collateral free loans to MSME sector’
.........Speaking at the 124th State Level Bankers Committee (Haryana) meeting, MSME-DI Director Vijay Kumar said, "Banks in Haryana are violating the RBI guidelines by not providing collateral free loans to MSME in the state...it is very discouraging." As per RBI guidelines, loans up to Rs 10 lakh to MSME units must be disbursed collateral free. It was pointed out in the meeting that 66 per cent of new MSME units were disbursed loans up to Rs 10 lakh while rest of them were denied loan.............
Financial exclusion
“Reforms’ unintended fallout” (Business Line, May 15) is inspiring enough to make one surf through the RBI working paper referred to by the writer. Financial exclusion is a fallout of liberalisation policies pursued for more than two decades by our original reformers......
Read - HBLFinancial Inclusion: Obligation or Opportunity
................The ultimate aim of financial inclusion shall be complete only when underprivileged are converted into micro-entrepreneurs across the country. Financial Inclusion shall always remain a journey and never a destination. RBI aspires to achieve 100% financial inclusion in India. But the duty lies not only with the government and regulators but also with the service providers and end-customers by exploring the paradigms of opportunities.
Why growth has stalled – and it’s not what the FM is telling u
........The solution is to create a separate body to develop a robust non-banking financial sector and free it from the RBI as well as the bureaucratic clutches of state governments. The RBI’s hands are full and so there is no point in complaining that it is not alert about the crores coming from non-bank sources – leading to dubious use and abuse. The developmental authority for the non-bank sector should primarily focus on helping partnership and proprietorship firms in the economy through appropriate credit mechanisms and non-strangulating regulations............
In 6 years, PM has become 8 years older
.........In his affidavit filed along with nomination papers as a Rajya Sabha candidate from Assam on Wednesday, the Prime Minister has stated that he is aged 82. However, in his affidavit as a Rajya Sabha candidate filed in 2007, Dr. Singh mentioned his age to be 74...........
The autonomy politics
........Last week, RBI governor D Subbarao, visited Kashmir. He made an important statement at Srinagar. D Subbarao said that Omar Abdullah has assured him that state government will enact SARFAESI Act in the assembly or extend it through an ordinance shortly. The act if extended or enforced, according to experts will have serious impact on state’s autonomy as it will dilute Article 370.............
Read..........
Axis Bank MD & CEO gets salary hike
.......her salary will stand revised from Rs 1.78 crore per annum to Rs 1.96 crore, while HRA will go up from Rs 59.52 lakh per annum to Rs 65.47 lakh. Leave fare concession will increase from Rs 11.15 lakh per annum to Rs 12.26 lakh. Utility bills entitlement will be Rs 3.30 lakh per annum...............
Salaried gets relief for now
...........The other point is that there has been a hue and cry over the salary class being penalised with higher taxes or increased compliance, which is probably why that has led to the salaried class being left out, feel tax experts. An easier way would have been probably to attach an annexure and ask to declare all assets all taxpayers have, opine experts...........
Swiss bank ATM in parliament compound! No wonder they are happy
In a move that practically guarantees civility in parliament and an unprecedented cooperation between the government and the opposition in the last year of the UPA II, a high level committee chaired by the finance minister has given clearance for the setting up of a Swiss bank ATM inside the parliament compound exclusively for the legislators of the lower and the upper houses. In a hush-hush ceremony, the prime minister inaugurated the single ATM and dedicated it to the nation........
PMC Bank Deploys Array's Application Delivery Controller
........."Array Networks solution has enabled our customers with high speed connectivity for internet and mobile banking transactions. The performance of the internet banking servers was noticeable. Array has helped us to enhance the business continuity for Internet & Mobile banking applications and we are able to meet the RBI compliance because of the Array Networks ADC solution.".........
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