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| ...........Sustainable high growth sans financial inclusion is next to impossible. Equally important is productivity and efficiency where financial sector intermediation is essential in order to bring all sections of society under the financial inclusion net................. |
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.
Thursday, July 25, 2013
Financial Inclusion: A Must For Equitable Growth - K C Chakrabarty
New Banking Licences: Is Financial Inclusion At Hand?
 — Deepali Pant-Joshi, Executive Director,Reserve Bank of India |
| ..............“The 25 per cent rural presence is difficult to achieve as even the existing private sector banks are finding it hard to achieve it. That’s why we believe Indian banks must have business and delivery models to achieve financial inclusion. You simply can’t have India and Bharat when it comes to banking.”................. |
Indian Microfinance reputation still hurting from the Andhra Pradesh crisis
..........More systemically, banks pulled back from lending to any MFIs regardless of exposure to AP. The crisis had created the concern that the microfinance model was broken and that the default trend would spread. MFI liquidity dried up without new bank loans. The bubble had popped. The events spurred India’s central bank and banking regulator, the Reserve Bank of India (RBI), to address the lack of oversight in the microfinance sector. It released its Malegam Committee Report early in 2011 and adopted many of its recommendations later in the year. The regulations seemed aimed at restricting MFIs to a more narrowly focused area of the lending market. This may limit the risks inherent in pushing into new business opportunities, but it also leaves areas of the market underserved................
ASSOCHAM National Conference on Financial Frauds
Objectives of the Conference: The phenomenal economic growth the country witnessed in the recent times with increased reach and penetration requires fine tuning of legislative reforms on an ongoing basis, as to address the growing financial frauds as well as to accommodate growth. In the path to global integration and opening up of the economy, the architecture as well as reach of financial sector supervision needs to be strengthened to create a fire ball for minimizing financial frauds which of late seems to have become more prominent. The recent chit fund fraud has touched the hornet’s nest. The overlaps and well as gaps in the financial sector have tempted the tricksters to outsmart the system. Many fraud cases involve complicated financial transactions conducted by ‘white collar criminals’ such as business professionals with specialized knowledge and criminal intent.
Distinguished Dignitaries:
- Shri K. C. Chakrabarty, Deputy Governor, Reserve Bank of India
- Shri M. J. Joseph, Additional Secretary, Ministry of Corporate Affairs
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Subbarao's tenure 'worst era of performance by RBI governor', says economist Panagariya
The performance of present Reserve Bank of India (RBI) Governor D Subbarao in managing the monetary policy has been one of the worst in the history of the bank, according to Arvind Panagariya, professor of economics at Columbia University. "I am afraid...this is one of the worst eras of performance by the RBI governor," Panagariya said in an interview to The Indian Express Editor-in-Chief Shekhar Gupta for NDTV's Walk The Talk programme.............
Obituary
Stanislaus Emmanuel Aranha (78) (Ex-MD, Agricultural Finance Corporation, Ex-NABARD & Ex-RBI), passed away on Tuesday, July 23, 2013.............
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Jnana Jyothi FLCC on expansion mode across India
.............The trust was established on October 20, 2010 as per RBI guidelines. DT Pai, former chairman and managing director, Syndicate Bank and banking ombudsman, RBI is the managing trustee. The broad objective of financial literacy centres is to provide free financial literacy/education. These centres will disseminated information regarding financial products and services to various target groups, including, school and college going children. ........
3 NBFC operating in Meghalaya not guided by RBI norms
....The inquiry into the functioning of these companies was done by the Department of Non Banking Supervision at the RBI’s regional head office in Pan Bazaar, Guwahati which looks after the functioning of NBFC. Although it is not entirely correct that all NBFCs are bogus, as some are regulated by the RBI and others under the Registrar of Companies, but a vast majority of them flout norms and jump from different ventures, jumping from real estate to banking and speculative activities, which is risky..............
For note forgers think small is new mantra
...........A senior official of RBI said a few cases of fake currency notes of lower denominations had come to the notice of the apex bank, but the official failed to explain the magnitude of the problem. The value of circulated counterfeit currency notes in the category is negligible in the economy, according to the official. The paper used by RBI for printing currency notes is imported and is not available in the market, the official added..............
RBI directs banks to collect EMIs through electronic transfers
............The move is aimed at cutting usage of cheques and promoting electronic transfer. It will also save borrowers the efforts of going to branch for collection of cheque books. The notification also said that ECS also accords the same rights and remedies to the payee against dishonour of electronic funds transfer instructions under insufficiency of funds that are available under Section 138 of the Negotiable Instruments Act, 1881. “Considering the protection available, there is no need for banks to take additional cheques, if any, from customers in addition to ECS (Debit) mandates,” it said...............
FM meets bankers to review Rs 31,000-cr stalled projects
Finance minister P Chidambaram today met chiefs of select public sector banks and industrialists to review stalled projects worth Rs 31,000 crore. These include steel and power projects, road projects in the eastern states of West Bengal, Bihar, Jharkhand and Orissa...........
Their Common Threads
...........While hard-nosed politics has added a zing to the debate, experts say that in reality, it hasn’t generated widely divergent views. What seems to be emerging is a consensus—while growth is a necessity for generating resources to address poverty, the quality of growth is equally important to improve conditions of life. “Growth is not a substitute for targeted intervention, as many will not be able to benefit. At the same time, redistribution is not a substitute for growth as it cannot make up for opportunity lost as a result of slow growth,” says Subir Gokarn, director of research, Brookings India, and former Deputy Gvernor, RBI....................
Prime Minister's Office rejects Deepak Bagla for IIFCL top post
.......The official, however, said, that the PMO has asked the finance ministry to suggest another candidate for the post of IIFCL chairman, which fell vacant last month. "If the finance ministry wants to revisit the selection process or if there are serious complaints against Malla, then the process will start afresh," he said. The selection panel included Financial Services Secretary Rajiv Takru, Department of Economic Affairs Secretary Arvind Mayaram, RBI Deputy Governor Anand Sinha and HDFC Chairman Deepak Parekh............
Yellow fever
The tightening of the gold import policy by the Reserve Bank of India is a sign of its continuing concern over the large imports of the yellow metal into the country. The latest step seeks to ensure that at least 20 per cent of the gold imported from abroad is made available to the gems and jewellery exporters for export of gold products. Imports will be strictly monitored accordingly............
A wealth of opportunity
Sandwiched between China and Japan, Korea somehow has escaped the sweep of Indian businesses seeking to expand in East Asia. The ‘Look East’ policy seems to somehow overlook the most stable economy in the region. In the last fiscal, Indian direct investment in Korea, as tracked by the Reserve Bank of India, amounted to only $3.51 million. In comparison, investments in China were pegged at $66.68 million and in Japan at $19.21 million. In other words, the data on Indian ODI show that investments in Korea were.........
Foreign hand
..............What the RBI’s eighth survey suggests is that liberalisation has helped this effort to target the domestic market by opening up a host of new areas, including ones where technology intensity does not recommend foreign collaboration. Moreover, in pursuing the goal of profiting from India’s domestic market, foreign firms are far less willing to partner with domestic firms. This makes the foreign exchange cost of liberalisation high and its implications for India’s balance of payments adverse. Unfortunately, India’s policy establishment claims the opposite.
SBI warns RBI not to choke liquidity
State Bank of India Chairman Pratip Chaudhuri today asked RBI not to choke liquidity and instead raise interest rate, if needed, and called for transparency in managing rupee. "Whenever the central bank needs to defend the currency or prevent the inflation from going out of hand, please increase the interest rate, don't choke liquidity," ..........
The RBI’s Overnight Surgical Strike
..........To curb speculation on the dollar-rupee exchange rate, the RBI has undertaken a surgical strike. It has pushed up overnight interest rates—by clamping the cash it lends banks via its liquidity adjustment facility—in the domestic money market. Here, a quick buck could be made by borrowing rupees cheaply to buy dollars and rebuy rupees as the currency fell further. With a spike in overnight rates, this game gets harder to play..............
RBI move makes India Inc see red
..............“The latest move is contrary to the industry expectations and will adversely affect capacity creation and hurt economic growth. It seems growth can wait as far as the the central bank is concerned,” ..............
RBI's shock therapy: Expect more tightening if short-term rates ease
...........“The immediate impact of liquidity squeeze is more on private banks, as they are more dependent on bulk deposits, while the reliance of public sector banks on bulk deposits has significantly eased after the finance ministry directive last year,” .............
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