...........Huge Government borrowings, lack of solid policies and growing demands of gold also contributed to the weakening of the Rupee. When asked whether RBI should intervene, Dr. Das said, "Yes of Course RBI should intervene. If it is not being done then it indicates that they want to support foreign investors in the short run. These foreign investors could be 'Indians' or people with close interest in India. A dollar flowing in gives you more money. Interested people may also want to know more about the ‘Promissory Notes' scheme of the GOI that allowed foreign funds to flow in easily.".............
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, July 1, 2013
Fall in GDP: The wages of sin - S.S.Tarapore
.....The current problems of high retail inflation, low growth, a large CAD and an overvalued exchange rate of the rupee are all symptomatic of macroeconomic instability and are the wages of sin. I do not tire of repeating that if hurting the poor is a sin, the creators of inflation are the sinners of society. If the government persists with its overbearing pressure on the RBI to keep reducing interest rates and making available easy accommodation from the RBI, there will be a further resurgence of domestic inflation, a fall in savings and a widening of the CAD. Needless to say, this could very quickly end up in a serious external sector crisis, which will ultimately further reduce the growth of the economy......
India Needs Top Dogs for its Financial Watchdogs
...........
India too will have a new RBI Governor this September — but the
government is yet to name Duvvuri Subbarao’s successor. Expectations are
that finance minister Palaniappan Chidambaram, known for his ability to
take quick decisions, will end the suspense soon. But that’s not good
enough. As the US and British examples show, searches for key regulators
need to begin early. Look at how much difference the predetermined time
schedules for release of macroeconomic indicators has made. There’s now
certainty, and analysts and markets know when to expect what. That’s
what is needed for key appointments as well. Of course, picking the
right person for a regulator’s job is even more crucial...........
Statistics Day celebrated all over India by the Ministry of Statistics and Programme Implementation
Data digitization to help banks
.....The issue is being pushed forward by the banks for over one and a half years as the Centre and Reserve Bank of India had been asking the banks to go for financial inclusion and improving their credit-debit ratio in the state. M R Nair, executive director of Allahabad Bank, during a meeting of the state level bankers committee in September 2012 had asked the government to ensure that the records are updated by the month-end as was promised by the then chief minister Arjun Munda...........
'There is need to make statistical system more effective': C. Rangarajan
........."The relevance and importance of collecting data relating to labour and employment cannot be over emphasized. These data are critical to understand how an economy functions. Ultimately, the objective of all governments is to create and sustain an environment in which everybody who is willing to work finds a job,"...........
Madhu's nostalgia @ 'Father' Joseph's retirement..............
 |
| File photo of Shri F.R.Joseph - being welcomed by Ms.Kamala Rajan, the then Principal, CAB at the CONFERENCE OF PRIVATE SECRETARIES (COPS 2010) |
Shri F.R.Joseph, Banking Ombudsman, Thiruvananthapuram retired from Bank's
service on 28th June 2013. M.N.Sawardekar, PS to Banking Ombudsman, Mumbai who had worked with him
pens down his memories.............
On my promotion from Class III to Officer, I was posted as Private Secretary to Shri F.R.Joseph, Chief General Manager, FED in 2004. I was very lucky to have him as my boss. I remember every time he was appreciating my work. That kept me motivated to do more and more work efficiently. I remember once, I had to leave office early for some reason, I went to him and told him, Sir, I want to leave office early for some urgent work. He gave me very surprising look and said that whenever you have to leave office, you don’t have to take my permission, simply give your charge to your assistant and leave. No boss will say like this. Because he had full faith in me. When Shri Joseph got transferred to Chennai as Regional Director, on his farewell party not only me but the entire department was touched by his emotional feeling towards us. I thoroughly enjoyed working with him and I will I remember, whatever good things he has taught to me. He is very down to earth person, very humble and very caring person. Very meticulous in his work and very sharp in remembering small small things of his subordinate staff. I wish him a very HAPPY, HEALTHY AND PEACEFUL RETIREMENT FROM RBI AND NEW JOURNEY TOWARDS SECOND INNING OF HIS LIFE.
External debt - A.Seshan
.......... Governor Venkitaramanan appointed a two-man group called "Policy Group on External Debt Statistics of India" in December 1991 to reconcile the data and formulate a scheme to put them on a reliable basis. It included Y Venugopal Reddy, then joint secretary in the finance ministry, and me as adviser (international finance) in the bank. The group was assisted by a task force of officers of the bank and the finance ministry who visited various institutions and undertook a detailed examination of the accounts. ...........
RBI's new debt recast norms - M.G.Warrier
..........In this context, the methodology for issue of guidelines being followed by RBI in the recent past, which elicits and accommodates the concerns and views of the stakeholders, simultaneously ensuring protection of country-specific and sector-specific regulatory and supervisory needs for which the central bank is responsible deserves appreciation. Perhaps, like the present day parents who are not able to cope with the speed and coverage of teaching in the best schools they send their kids, Finance Ministry and top managements of banks and financial institutions are finding it difficult to keep pace with the professional and democratic functioning of RBI..........
Canara Bank widens rural presence
Canara Bank has launched the Aaadhar Samruddi Card, an Aaadhar-enabled debit card that enables cash withdrawal at ATMs and also micro ATMs with business correspondent agents in the rural areas. At an event in Mysore, Reserve Bank of India Deputy Governor K C Chakrabarty explained the policy initiatives taken by the RBI in extending banking coverage/facilitation in rural areas and providing citizens access to credit facilities with the objective of bringing more people under financial inclusion..........
No comments, please
...........Remember that at Mint Road, where the headquarters of the Reserve Bank of India (RBI) is located, its governor rarely opens his mouth on such matters, despite knowing full well that he can actually make a difference to the exchange rate of the rupee through interventions. Nor does he allow his deputy governors to speak on the issue unless that is direly needed. In sharp contrast to Mint Road's reticence, North Block, headquarters of the finance ministry, goes the other extreme, often facing the charge of making statements a bit too frequently...........
More onus on bankers
..............In the case of banks, while RBI’s baseline case estimates expected losses to rise from 2% of advances right now to 2.1% by March 2014, the baseline case for unexpected losses is as high as 7% — while this is undoubtedly a tail risk, the RBI thought it important enough to say “therefore it would be prudent for the (banks) to increase their provisioning from the present levels”.............
'Unpredictable' Bank Negara
Bank Negara Malaysia again emerged as among the top central banks in Asia in terms of being the least predictable in its monetary policy, says Credit Suisse. Bank of Korea and the Reserve Bank of India topped the research house's non-Japan Asia list and Bank Negara came in second.........
Easing pressure on rupee is key: Rangarajan
If pressure on the rupee eases then it will give greater room for the Reserve Bank of India (to lower policy rates), C. Rangarajan, chairman of the Prime Minister’s Economic Advisory Council said on Saturday. He was speaking on the sidelines of the Statistics Day event to mark the birth anniversary of India’s statistical and development planning pioneer, P.C. Mahalanobis...........
INDIAN BANKS FACE REPUTATIONAL, OPERATIONAL RISK
....... This
is not the first time the Indian banking system has come under
regulatory scrutiny for violation of banking norms. Banks have been
fined for not conducting adequate due diligence in financing initial
public offerings, they have been sued by clients for misleading
them on the suitability of exotic derivatives, and banks have faced
criticism for using recovery agents to harass defaulters. The RBI has
been taking steps to check these malpractices. It has issued guidelines
on credit cards, compensation policies, and a fair practice code...............
RBI cancels CoR of two non-banking FIs
......The CoR's of the two companies were cancelled on May 9 and June 6, respectively, according to a public announcement by RBI. In exercise of powers conferred on it under sub-section (6) of section 45-IA of the Reserve Bank of India has cancelled the CoR of these companies, as these companies have voluntarily cease to be NBFIs, according to the announcement..........
SMS alerts set to cost Rs 60 per year to SBI customers
......... "With effect from quarter ending June 2013, SMS charges of Rs 15 inclusive of service tax per quarter will be recovered," SBI said in an announcement. The country's largest bank, which has about 18.5 crore customers, did not specify whether the charges are for special alerts only or even debit or credit card transaction alerts sent as per regulatory guidelines will also come under this............
Rupee recovery will help RBI cut lending rates, says Rangarajan
.......“On the last occasion, the decision took was largely influenced by external sector considerations. Wholesale Price Index (WPI) was showing downward sign and non-food manufacturing inflation was below three per cent,” Rangarajan said. “But the pressure on rupee prevented the RBI to go in that direction (of policy easing) and it took a pause. And therefore, if the pressure on the rupee eases, then it will give greater room for the Reserve Bank,” ...........
Kuwait, India discuss bilateral economic, trade relations
.........Ahluwalia is scheduled for three-day official visit to Kuwait, starting from Monday, along with an accompanying economic and trade delegation, during which he is to meet with prominent figures from the Kuwaiti leadership and government, Kuwait embassy said in a statement. His delegation includes senior officials from Ministry of Commerce and Industry of India, the Reserve Bank of India, Investment Management and the Finance Ministry, and state-owned companies..........
India’s Tryst with Destiny
.........The authors depict the historical evolution of Indian macro-economic policy framework ranging from Jawaharlal Nehru’s affection for socialistic ideas to the active implementation of nationalisation policies under Indira Gandhi regime to present post-liberalisation era to the future possibilities of enhancing the pace of economic progress with enhanced reform measures. They also delineate how these restrictive policies ended up in reduced growth rate to abysmal levels and increased the social inequality.................
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