CII puts pressure on RBI to cut rates, says it needs to work along with government

The Confederations of Indian Industries (CII) said that the Reserve Bank of India should work in tandem with the government to revive the economy. CII president and Infosys executive vice-chairman Kris Gopalakrishnan said that RBI should ease rates by at least 100 bps in this year..............

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RBI Guv’s Last Hurrah: Listen to FM, Slash Rates - Charan Singh

Good way to go out......

..........Therefore, it would be prudent to lower interest rates so that investment and growth can get a shot in the arm. India has recorded the lowest growth rate in more than a decade in 2012-13 and investment rates are low, too. Higher inflation was mainly due to supply side issues, so now, interest rates can be cut. Sharp rate cuts were done in December 2008 and January 2009. But the RBI could give a forward guidance. And that could be a last hurrah of Governor Duvuuri Subbarao. It’s a good way to go out.

(The author is RBI Chair Professor at IIM-Bangalore)

Read - ET Mumbai Edition page 14

 

RBI backs Chidambaram's call to banks to cut lending rates

......When the Reserve Bank calibrates its short term policy interest rate, the expectation is the monetary transmission will takes place and the banks should respond by calibrating the lending rates.........

Read - TOI

RBI not targeting any exchange rate: Subbarao

Chennai: As rupee fluctuated in the market, Reserve Bank on Thursday said it is not targeting any specific exchange rate and will use all instruments to manage the volatility. "We do not have an exchange rate target ... We try to manage volatility in the currency movement ...," RBI Governor D Subbarao told reporters..........

Read | The Asian Age

Subbarao prods banks to hasten monetary policy transmission

.....“Banks should respond and it is true that some have and some have not. There are several reasons why monetary transmission is as not agile as it should be, but we [the RBI] are conscious of the need for monetary transmission,” Dr. Subbarao said, while addressing reporters after the central bank’s board meeting here. “Nevertheless, we are very conscious of the need to be supportive of economic growth. When we calibrate the short-term policy interest rate…banks should respond by calibrating lending rates,”...........

Board meeting

Read - The Hindu

RBI Governor D Subbarao Live From Chennai

Action against some more banks on the anvil: D Subbarao, RBI Chief

CHENNAI: Reserve Bank today said it will take action against some more banks for alleged violation of regulatory norms following an expose by a news portal.  "Well, we have taken action against specific banks. Action against some more specific banks is in process. We will take a final view on that," RBI Governor D Subbarao told reporters after the board meeting here.............

Read - ET

Police to get training to deal with ponzi schemes

CHENNAI, JULY 4:  

The RBI Staff College would train senior police officials to deal with cases associated with fraudulent money collection schemes, said D. Subbarao, RBI Governor. Chairing a special Sate-Level Bankers’ Committee meeting here on Thursday, he said banks in Tamil Nadu should speed up opening of branches and bank accounts in remote areas of the State as infrastructure in Tamil Nadu was relatively better. According to a press release from the Press Information Bureau, in the next two months, the State Government will identify 10 districts of where business correspondents can be trained, with the help of banks, in actual banking activities so as to facilitate financial inclusion.............

Read - HBL

My View on "VITALINFO - Philosophically speaking............"

Mangeshji, you deserve all the praises and greetings from the members of the group. Your effort to keep retired people connected to the world - the banking and finance where they lived for over four to five decades. Hearty congratulations. Wish you all the strength and spirit to continue your task untiringly with all energy. 

- Aarupathi Mani (K S Iyer)

The death that was not.............

I died yesterday. Quite a few of you may jump in your seats. I also jumped in my seat when my eyes fell to the news item appeared in local paper; Sharad Fadnavis is no more. I panicked and pinched myself to ensure that I was not in heaven, or more appropriately, in hell. I reread the obituary and it dawned on me that it related to my namesake,lot of details matching to a great extent. There was a photograph also but some of my friends whom I have not met since ages may very well believe it to be my own taken in my younger days. I braced myself to receive telephone calls and condolences, but to my great surprise, none was received. Intrigued by this, I again went through the news and then  realized the reason for my unpopularity. The deceased Mr. Fadnavis was a water conservation specialist (may God bless his soul) and my nearest and dearest relative, including my better half would also never believe that I could be a specialist in any field, let alone water conservation. 

- Sharad Fadnavis, EXRBITES Group

Bankable innovations

..........The Union Government has shown a strong commitment to boosting credit to this sector and has instructed public sector banks to play a pivotal role in providing critical assistance.  The Government wants to double the credit flow to this sector in the next five years. To back this, Reserve Bank of India (RBI) has mandated all scheduled commercial banks to achieve 20 per cent year-on-year credit growth to the sector............

Read - HBL

Chidambaram rushes to do what Subbarao couldn’t

What Reserve Bank of India (RBI) Governor D. Subbarao could not do through a series of rate cuts, India’s finance minister P. Chidambaram now wants to achieve through a gentle nudge..............

Read - Mint

New banks to increase inclusion, create new jobs: Survey

The Reserve Bank's decision to allow new players in the banking sector would result into improvement in efficiency, increase in capital base to meet the credit needs of the economy and generate huge employment opportunities, says a survey by industry chamber Ficci.................... 

Read - ET

Open more banks, but not at depositors' cost

..........The RBI must now scrutinise all the new applicants thoroughly as failure of public deposit-taking banks has wider and far-reaching implications than in case of other industries. These concerns are more valid in the post-2008 global financial crisis era than they were when the government had decided to open banking for the private sector in early 1990s............

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Bank licences for corporates in national interest: RBI

......"We debated extensively on the matter and the decision to allow corporates to apply for bank licences was done in the national interest," Subbarao said. "As Indian banks go out and open branches abroad and foreign banks come and set up operations inside the country, there is no way we cannot implement Basel III,"...........

Read - TOI

RBI to consult govt on Aditya Birla Nuvo’s banking licence application

Chennai: The Reserve Bank of India (RBI) intends to consult the government about any possible conflict of interest in Aditya Birla Nuvo Ltd seeking a banking licence and Aditya Birla Group chairman Kumar Mangalam Birla being on the board of the central bank, RBI governor D. Subbarao said on Thursday...........

Read - Mint

Will look into possible conflict of interest in Birla's bank licence plea: RBI

Chennai: RBI Thursday said it will look at whether there is any conflict of interest arising out of a bank licence application filed by Aditya Birla Nuvo, whose group Chairman Kumar Mangalam Birla happens to be on the board of the central bank. "We have to take a view on that. This is a very recent development," Reserve Bank Governor D Subbarao told reporters after a meeting here of the central board.........

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'Industry approves RBI conditions on new banks'

.........A big majority (88 per cent) gave a thumbs-up to RBI's condition that applicants be prepared to set up at least 25 per cent of branches in hitherto unbanked rural centres. Currently, only 35 per cent of the population has a formal bank account, as compared to an average of 41 per cent in other developing economies............

Read | Business Standard

India Central Bank to Take 3-4 Months to Examine Bank Applications

CHENNAI—India's central bank will take three to four months to examine the 26 applications it received for an unspecified number of bank licenses it plans to issue, Governor Duvvuri Subbarao said Thursday. The applications will then be vetted by an independent panel of experts before the Reserve Bank of India makes its final choice........

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New bank licences: Tough obstacle ahead, says Fitch

.......According to the agency, the new banks won't increase competition in the medium term because of additional profitability pressure from their expansion plans and the financial inclusion conditions. " New entrants may bring some much-needed innovation to a sector where only around 50 per cent of households have access to banking services" Fitch said..............

Read | Business Standard