..........The idea of a postal bank is not new. It was first mooted by S Venkitaramanan, the then finance secretary, and again in 1992, when he was Governor, Reserve Bank of India ( RBI). Over the years, the post office system did undertake limited banking activity. Post Office Savings Bank Deposit Accounts are widespread and did provide for checking facility. Also there is an array of term deposit and other savings schemes, such as Public Provident Fund, the Senior Citizens’ Monthly Pension Scheme etc. An important difference from banks is that India Post does not manage the funds it garners. All collections are credited to the government account and all payments are made from the government account. Since the outstandings increase over time, the government invariably ends up with a net surplus of inflow of funds. This cosy arrangement suited the government and hence, any proposal to enable India Post to evolve into a full- fledged bank, has been aborted by the Ministry of Finance............
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 15, 2013
The assignment problem - Dr. Subir Gokarn
........... in monetary policy, the instruments are either the quantity of money or its price (the interest rate). Theory and widespread evidence suggest that the macroeconomic outcome that these are most closely linked to is the inflation rate. Therefore, the assignment rule would suggest that inflation control should be the dominant objective of monetary policy. If other objectives are being pursued, other appropriate instruments must be created. So is a zone approach to policy completely ruled out? ...........
RBI To Organize All India Inter-School Quiz At Srinagar
......According to the official statement, the quiz is aimed to build a connect between RBI and the young student community enrolled in schools across the country and achieve extensive dissemination of financial literacy. It will also be an opportunity for recognizing and encouraging bright young students on a national platform............
Students shine at RBI quiz
...........Saurav Sinha, General Manager and Officer-in-charge of RBI, Ranchi, said: “This quiz was organised for the second consecutive year to generate interest among the students. We tested their knowledge in economics, current affairs, personalities and events that have contributed to the growth and progress of India over the years. The contest also aims to make the youngsters aware of the role of RBI in banking and finance sectors.”................
Venkitji - A true Karmayogi..................
I have felt very saddened by the going away of Venkitji. I could not see him before his leaving. I did not even know that he was seriously ill. I have since spoken to his family and expressed my deeply felt condolences. I think that it was my great good fortune that I had a person like Venkatji working with me. He was a true KARMAYOGI. He was super efficient in his work and was amazingly trustworthy and faithful. I know that he had health issues in his family but he never gave up on the serenity of his deportment and continued excellence in his work. He was a total Punyatma. I will miss him dearly as a very precious colleague.
- S n Bagai
The flip side of innovation - Book Review by A.Seshan
The volume is a collection of the transcripts of lectures and writings of eminent economists and financial experts. It narrates the story of India's financial sector reforms in the last two decades. It then focuses on the manner in which those reforms were implemented, the difficulties experienced in doing so and what remains ahead. There are 19 chapters, along with a good introduction by the editor......................
Who do you think you’re Kidding? - Book Review by P.P.Ramachandran
..................The 21st Century child is wired to technology and we have access to information as never before. The Internet has brought the world to our doorsteps. A typical urban child today has a Laptop, a phone, an i- Pod / i- Pad. His eyes are glued to the screen, his ears are plugged in with music and his mind geared to the game he is playing. Ashar has skilfully interwoven in her book extracts from books and reports on child development normally not available to us. Mark Twain famously said, “ I was born intelligent. Education ruined me”. This book offers sound advice on how to fulfill the needs of a Conceptual Age — out- of- box thinking, encouraging learners to follow their own intuition and instinct. She stresses on instilling creativity, imagination, ingenuity in young minds..............
Voice of growth- lobby is only heard: Subbarao
Indore: At a function organised at Indian Institute of Management, Indore, Reserve Bank of India Governor Dr D Subbarao has said voice of the growth- lobby is only heard in the country. While addressing students and faculty of IIM- Indore on Thursday, he said: “ Poor people’s voice does not get heard and it’s only voice of growth lobby that gets heard.” During his visit to the City, the RBI Governor also visited the elite B school to attend a function. During his one- hour long speech on “ RBI making a difference in everyday life” at the IIM- I, Dr Subbarao explained the multiple roles played by the RBI in monetary policy formulation, printing and distributing currency, regulation and supervision, external sector gate keeping, foreign exchange reserve management etc.............
Subbarao may get another extension
............“The government is pinning a lot of hopes on Subbarao’s economic acumen as he knows the pulse of the Indian economy. Despite being under pressure from the government and industry for reducing interest rates, he chose to cut rates in a very calibrated manner. Any change at the top may not augur well for the government and the economy at this stage,”..................
Race to succeed D Subbarao: Meet the contenders for RBI Governor’s post
The next RBI Governor
..............The first IAS officer to take charge of the RBI was R N Malhotra in 1985, followed by S Venkitaramanan. C Rangarajan and Bimal Jalan gave a short break of about 10 years when the RBI went under economists once again. The IAS returned with Y V Reddy and Subbarao, although it could be argued that Reddy had joined the RBI having discarded his IAS tag a few years ago. So, what does the past tell us about the chances of Chaudhuri, Mayaram and Rajan?.............
RBI Assistant Exam 2013 call letters uploaded
July 13 (TruthDive): The Reserve Bank of India has uploaded RBI Assistant Exam 2013 call letters. Candidates who had applied for the post in Reserve Bank of India can now download their call letter/admit card. Candidates can download call letters by entering registration no and date of birth at http://ibpsreg.sifyitest.com/rbijul13/login.php?appid=asdqnieidwe134ascalq
Fake currency from China worries intel agencies
Days after a consignment of fake Indian currency notes (FICN) worth Rs
37 lakh coming from China was apprehended in Delhi, another consignment
of comparable value from the same country has now been seized on the
Indo-Nepal border. This is the first time evidence of FICN being
routed from China has been found and the development has caused much
concern in the security establishment as China was not used as a fake
currency channel till now........
Read - TOI
Read - TOI
My View on "Indian economy in grim situation"
It is time to put in policies that will engender 'austerity for growth' model voiced by the Governor. Post liberalization, we moved to consumption led growth. While we moved a long way unwinding may be difficult but not impossible as the culture of India still rests on austerity. We have to re-set our priorities. State must get back to making available education and health within the easy reach of common man. Today they can be accessed only by the rich. It is the rich that capture media stories. We need to capture those stories where austerity in families led to greater elevation in them both in richness and diversity. Due to policy distortions intellect migrated to west but are now forced to return only to find that there would be disharmony in their living if they somehow do not acquire riches of the size they enjoyed thus far abroad. This is leading the youth into unwelcoming ways. Regulations have become relaxed when it came to outfits like the pubs and bars etc. Now there should be serious thinking on resetting priorities and the routes to growth.
- Yerram Raju
RBI raises concerns on India's large current account deficit
.........“India has generally been a current account deficit country. In view of the large current account deficit, the exchange rate of the rupee is susceptible to the influence of large capital movements, especially during crisis periods,” said G Padmanabhan, Executive Director, RBI in Singapore on Friday. According to Padmanabhan, this does not mean that the country does not aspire to see the rupee as an international currency, particularly as we increase global integration through trade and investment channels.................
PM calls industry after receiving SOS from Sharma
The much-awaited meet on July 29 to be presided by Prime Minister Manmohan Singh, it is learnt, is an outcome of an SOS sent by Commerce and Industry Minister Anand Sharma, who was apparently, cudgelled by captains of industry for the present condition of the Indian economy. On June 28, prior to holding his series of meetings with business chambers and export promotion councils, Sharma called for a closed-door meeting with a selected few at the capital's Taj Mahal Hotel to gather critical inputs. The invitees were former deputy governor of Reserve Bank of India (RBI) Subir Gokarn, former secretary of the department of biotechnology M K Bhan, former commerce secretary.............
No need to round off cheque amount, says RBI
...........The RBI circular was issued by Chief General Manager, P Vijaya Bhaskar. It referred to a high court ruling of February 2007 in which Justice RS Garg had said: "The RBI is hereby directed to issue fresh notifications/notices to all the banks, who have issued internal circulars, not to receive such cheques, etc. and see that stern action is taken against the persons who refuse to receive the cheques/drafts which are in fragments."............
'Certified Banking Compliance Professional Course’ launched by ICSI and IIBF
The ‘ Certified Banking Compliance Professional Course’ by The Institute of Company Secretaries of India ( ICSI) and Indian Institute of Banking and Finance ( IIBF) was launched in Mumbai last week by Dr K C Chakrabarty, Deputy Governor, Reserve Bank of India. This Course which will be offered as a joint certificate by ICSI and IIBF to members of the ICSI and IIBF members with a view to develop compliance professionals who can work in banks and consists of two parts namely an online examination followed by classroom learning for candidates who have passed the online examination..................
Shield yourself from errant bankers
............The Reserve Bank of India (RBI) has recognised this problem and recently issued guidelines to address this problem. These propose to differentiate between normal banking business and third-party investment-related products. The RBI has been voicing apprehension on the way banks have been selling third-party investment products or even handling their clients' money to invest on their behalf..............
Nitish Kumar orders action against fraud non-banking finance companies
PATNA: Chief minister Nitish Kumar has ordered harsh action against the non-banking finance companies (NBFCs) which have no affiliation with either the RBI or the SEBI. He said suchNBFCs are active in different districts andbefooling the public in the name returning their money with high profits...........
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