.....The government continues to think that the way out of the logjam is to lower interest rates. On the contrary, there is a pressing need to increase interest rates. Given the political economy realities it would indeed be heroic if RBI Governor D Subbarao is able to withstand pressures to reduce interest rates........
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, June 17, 2013
A long haul - Dr.Subir Gokarn
.....To sum up, we need to come to terms with the fact that a small current account deficit is not an entitlement. It is the outcome of a dynamic combination of facilitating conditions, which need to be created and sustained. A return to the comfort zone of the pre-crisis period requires a structural approach. It will be a long haul, but there is no alternative; and it will be worth it.
Is there need for CAG audit of RBI accounts? - T. V. GOPALAKRISHNAN
.....In these circumstances, it is surprising that there is a vehement call to bring the RBI under CAG audit. That the RBI is corruption-free is a well-acknowledged. Therefore, CAG audit without any strong and justifiable reason will only add to the expenditure of the exchequer. The RBI is perhaps the only institution which is self-disciplined and self-audited, giving no scope for CAG audit in terms of coverage, content and scope and having all possible checks and balances on ‘income and expenditure’. Moreover, the accounts are extensively screened by the statutory auditors appointed in terms of RBI Act 1934, and are made available to the Government for presentation in Parliament......
Good response to coin mela
.............."The idea of conducting a coin mela hit me when I saw people struggling to get small change (coins) when they are travelling in a bus or go to a hotel for tea. Not only are people struggling due to the shortage, even shopkeepers, hoteliers, general stores, stationery shops, bakeries and pan shops owners are feeling the pinch. So we have requested the Reserve Bank of India (RBI) to give coins of the denominations of Rs 1, 2, 5 and 10 worth Rs 4 lakh," .............
RBI ORGANISES CONCLAVE FOR RSETI DIRECTORS
Reserve Bank of India (RBI) Bhopal organised a day-long conclave for Directors of Rural Self Employment Training Institute (RSETIs) here in Bhopal.The Conclave was organised to sensitise the RSETI Directors’ about their roles and responsibilities in providing skill development training for self employment/entrepreneurship development of rural unemployed youth..................
Read......
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Govt May Ban NBFCs From Deposit Schemes
.......The
inter-ministerial group, set up after the Saradha Group scam, has
representation from the revenue and economic affairs department in
finance ministry, ministry of corporate affairs, banking sector
regulator RBI and Sebi. To strengthen the existing mechanism, the RBI
will also look at resetting the criteria for registration of NBFCs............
Swimming towards financial inclusion
..........We need to bring banks and other institutions closer to the customer, either via micro branches or banking correspondents, and increase the use of technology. Access to financial institutions is certainly rising. According to the Reserve Bank of India, all unbanked villages with a population of over 2,000 persons, numbering around 74,000, were connected with banking facilities between March 2010 and June 2012. During the same period, more than 70 million basic banking accounts were opened to take the total number of such accounts to 147 million................
Rupee Bank staff may get leaves encashed
Bank Karmachari Sangh (BKS) general secretary and administrator on the Rupee Cooperative Bank Limited Vidyadhar Anaskar said that he would approach cooperatives’ commissioner for encashment of leaves of Rupee Bank staff, who want to resign. ............
Supersession of elected committees
.....The joint registrar of cooperative societies superseded the board after issuing a show cause notice containing 19 charges. The directors challenged the supersession as it was done without consulting Reserve Bank of India. The court directed reinstatement of the board of directors for the full term...........
As business grows, banks allowed to create more GM posts
Due to robust increase in business in the last two years, the Finance Ministry has allowed 15 of the 19 nationalised banks to create up to three additional positions in the rank of general manager. The ministry has also relaxed the guidelines for promotion of officers, who do not have sufficient work experience in rural/semi-urban areas, and specialist officers, who do not have sufficient experience in field operations. Overall, the number of GM positions in the 19 nationalised banks has been increased from 420 to 442. A GM usually heads a business vertical at the head-office or heads a circle office.........
Mis-selling or fraud?
.....From Doctor's experience, one thing is clear: while financial regulators such as the Reserve Bank of India, Securities and Exchange Board of India and the Insurance and Regulatory Development Authority might be taking some corrective steps, the malaise of financial fraud has become deep-rooted.......
A refreshing contrarian
.....It is reassuring that the Governor of the RBI has been lobbying the case for the poor man. He has pointed out more than once the regressive nature of price rise as a tax on the aam aadmi as the raison d’etre for his monetary stance. The nation is grateful to him for his lonely walk on the path of disinflation. He is doing to India what Paul Volcker did to the US in the 1970s and 1980s.......
Penalty passed on...........
Axis bank has already started to recover the RBI 'penalty' from existing customers by informing them new charges for a/c holders by asking them certain charges which were free otherwise and unless you write to them deduction will start from 15 june.If RBI keeps imposing penalties Very soon one can expect 'personal' interaction charges if you wan't to talk to a human being in the Bank.
- Arun Mehta
Shriram Group eyes banking licence
.......Shriram Group’s group director, G S Sundararajan, had earlier told Business Standard that the group’s preference would be getting a separate licence under Shriram Capital, the holding company, and keep the two NBFCs separate from this. “We are definitely going to apply for a banking licence, as it is good for our customers and all stakeholders in the long run,” Sundararajan had told.......
Investors renew faith with bank deposits
.......In an indication that this trend is not restricted only to one particular bank, the Reserve Bank of India too has reported a 13.4 per cent rise in deposit growth at Rs 62,000 crore year on year on 31, which is largely in line with its 14 per cent growth target in the segment for the whole fiscal...........
If RBI can't cut CRR, let them pay us interest on it: SBI
............."If a CRR cut cannot be done due to inflation worries, let the RBI pay us interest on CRR. We will then do the transmission for sure. If the RBI pays me Rs 500 crore on interest on my CRR, I promise to transmit the entire Rs 500 crore to borrowers by reducing my base rate,".............
SBI & conflict of interest
....... Managers in charge at SBI Caps must be evaluated on the outcome of the projects they got the bank to finance and not just on fees earned or league table standing. This is a matter of serious conflict of interest that needs to be addressed.
SBI credit card firm asked to pay Rs 12K for deficient service
A consumer forum has directed SBI Card and Payment Services Ltd to pay Rs 12,000 as compensation to a customer for putting her name in CIBIL's defaulters list despite an assurance that the annual fees of her credit card would be free for lifetime...........
KYC laxity at private banks has put us to loss: SBI
In the wake of the Cobrapost expose on violation of know your customer (KYC) norms by almost all banks, State Bank of India chairman Pratip Chaudhuri has said his bank has been “put to a loss” by the non-compliance of guidelines by private sector peers. “Our bank has been put to a loss because of the relatively lax implementation of the KYC norms, particularly in private banks,”..........
New banks to herald next growth phase for existing ones: Kotak
..............Talking about the potential entry of new banks, Kotak said in his annual letter to the shareholders that the Indian financial space was likely to see new banks in the next two years. "How will they affect us (Kotak Mahindra Bank)? They will increase the pace of competition for talent and customers," he said. He added: "However, going by our experience of the last 10 years, banking, particularly on the retail side, is much more long-haul than we expected when we began our journey...........
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