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.
Saturday, November 2, 2013
RBI: Monetising the Tale of Two Governors
......Subbarao too had hiked REPO rate several times to moderate inflationary pressures. However, the same action from two RBI governors received quite separate reception from Markets, Analysts, Industry and Columnists. Subbarao was faulted time and again for not paying required attention to the anaemic growth of the Indian economy; and for being unduly and narrowly fixated on inflationary pressures. Critics said that inflationary pressures were on account of supply side constraints -falling production, and not due to rising demand expectations. Partly this carried some weight in view of the negative growth posted by automobile industry and manufacturing sector. However, the sticky food and non-food inflation as measured by Consumer Price Index (CPI) worried Subbrao as it has Rajan. However, while Subbarao was skewered for his alleged hawkish anti-inflationary posture, Rajan received for same action a very indulgent reception............
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OBC inaugurates new branch in city
Oriental Bank of Commerce (OBC) has opened its 49th branch in the state at Cuttack-Puri Road, Bhubaneswar along with an ATM counter. P K Jena, Regional Director, Reserve Bank of India (RBI) inaugurated the branch in the presence of Gautam Sinha Ray, deputy general Manager, OBC.............
Women bank to be launched on Indira's birth anniversary
The government has drawn up plans to launch country's first all women bank - Bharatiya Mahila Bank - on November 19, the birth anniversary of former Prime Minister Indira Gandhi. “We have asked the Election Commission for permission. The bank might be as well inaugurated on November 19. All work has been completed. But......
New Chairman for National Payments Corp
Rural banks asked to promote Rupay cards
A team of NPCI, the Central organisation mandated by RBI and Indian Banks Association (IBA) to build central infrastructure for payment systems like ATM switching, mobile payments, 24x7 remittance and financial inclusion transactions, visited Nuapada district and advised Utkal Gramin Bank to issue RuPay cards to their customers on a priority basis..................
Usha Sangwan to be first woman MD at LIC
MUMBAI: Usha Sangwan will be the first woman managing director at the Life Insurance Corporation of India in its near six decades of existence. She may well be a trendsetter at LIC, like Kishori Udeshi at the RBI, who started a glorious tradition of women rising to higher positions that for decades have been male bastions.
ET
Bomb scare leads cops to 'dollar scam'
........When someone falls for their scam, the Nigerians give them the black papers, claiming that these are defaced US dollars which can be restored through the use of a special chemical. They charge the victim for cleaning the 'dollars'." Police inspector (crime) R Devare said that the suitcase also contained some foreign currency. "The currency and black paper bundles have been sent to RBI for analysis."
Jalan panel to finish vetting bank licence bids in 3 months
....The panel held its first meeting in New Delhi on Friday, to discuss the process. All the panel members — Jalan, Usha Thorat, former RBI Deputy Governor; C B Bhave, former chairman of the Securities and Exchange Board of India, and Nachiket Mor, board member of RBI, attended. RBI Deputy Governor Anand Sinha, who prepared the licence norms, also participated. “We discussed everything. The focus was on how to go about the processes and the parameters for the screening,” said a person privy to the discussion.............
Raghuram Rajan fuels best BRIC rally as Barclays bullish
Indian bonds were the best performers among the four largest emerging markets last month and Barclays Plc recommends buying as central bank governor Raghuram Rajan boosts cash supply and steps up his fight against inflation...........
Dr Rajan, will RBI look after consumer protection finally?
........To turn these stories into evidence, RBI needs to first stop being in denial. All attempts to alert RBI in the last seven years have run into the “it-is-not-my-problem” wall. It has been RBI’s considered view that mis-selling by bank staff is the problem of the product regulators and not of RBI. This is like a hospital blaming the pharma company for the medicine when it is the doctor who prescribed the wrong drug and harmed the patient. The medicine was not harmful, but was “unsuitable” for the disease the patient had. Much like an artist with irregular income wanting a fixed deposit for a lump sum she had, being sold a 15-year annual premium life policy by a bank that is always awake..............
The Udhna Citizen Co-operative Bank Ltd., Surat, (Gujarat) now under RBI Directions till May 1, 2014
The Reserve Bank of India has extended the period of directions imposed on The Udhna Citizen Co-operative Bank Ltd., Surat for further six months. The Bank will thus continue to be under directions from November 2, 2013 to May 1, 2014. The modified directive has been displayed on the bank premises for interested members of public to peruse............
Gold coins just a click away
......However, with the market practically running out of gold coins, residents have opted for a smarter, easier and a handier way of digging the gleaming yellow metal, by simply going online.
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Hedging interest risk
..............It is good that the RBI under its new Governor is convinced about allowing cash-settled IRF trading. A change in the underlying asset for these contracts, from notional to market-traded bonds, would equally help. The regulator should further permit this segment to function in the same manner as equity derivatives, without too many trading restrictions. It will enable efficient hedging and...............
All is not well with the Indian economy
.....India’s economic growth crashed to a four-year-low of 4.4% during April-June this year from 4.8% in the previous quarter, proving fears of a widespread slowdown as factories are producing less, companies are offering fewer jobs and prices continue to remain high. The estimates of India’s gross domestic product (GDP) — the broadest measure of value of all goods and services produced in the country — demonstrate a deeply hurt economy hit by a toxic mix of a free-falling rupee, dipping investment, high borrowing costs and rising prices. From a foreign investors’ darling to an economy characterised by policy flip-flops, the Indian economy’s turnabout has been as rapid as the heady 9%-plus growth it had once clocked during 2004-2008. Many analysts reckon it could get worse.............
Bittersweet news on interest rates
........Should it be considered as good news on lending rates? No, not yet. Borrowers will have to wait for the banks to size the situation — whether it is conducive to pass on the reduction. As of now the home loan rates have neither been increased nor decreased and remain at last month’s level. The festive offers continue, which should be a good opportunity for home loan seekers to enjoy the benefits such as lowered interest rates and reduction in processing fee. Since the RBI is concerned that deposit mobilisation is not happening aggressively banks will have to borrow from other sources to meet the credit demand...........
Step taken by RBI to help combat inflation: Chidambaram
.........He said that export figures have been good for the last few months and the recent steps taken by the Reserve Bank will help in combating inflation. Momentum in export growth will continue in remaining part of current fiscal, Chidambaram said............
Chidambaram defends Rajan’s rate hikes
........Rajan has hiked the repo rate twice by 25 basis points each since he took over as RBI Governor. But, unlike in the tenure of the previous Governor, D. Subbarao, this time neither the Finance Minister nor his Ministry reacted on the day the policy was revised. However on Friday, Chidambaram broke his silence and said that the monetary policy had to be understood in the context in which it had been presented..........
Supreme Court upholds U K Sinha's appointment as SEBI chief
The Supreme Court on Friday upheld the appointment of U K Sinha as SEBI chairman, saying it was done by the government fairly and in accordance with the procedure of the law. A bench of justices S S Nijjar and P C Ghose dismissed a PIL challenging the appointment of Sinha, observing that the petition was not maintainable on various grounds but it had decided to hear it as the appointment to a very senior position was challenged..........
Friday, November 1, 2013
Duvvuri Subbarao: On India, technology and the importance of authority
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