... "The current non-system in international monetary policy is, in my view, a source of substantial risk, both to sustainable growth as well as to the financial sector. It is not an industrial country problem, nor an emerging market problem; it is a problem of collective action. We are being ...........
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.
Friday, April 11, 2014
Raghuram Rajan: International monetary policy a source of substantial risk
.........“It is not an industrial country problem, nor an emerging market problem, it is a problem of collective action... A first step to prescribing the right medicine is to recognize the cause of the sickness. Extreme monetary easing, in my view, is more cause than medicine. The sooner we recognize that, the more sustainable world growth we will have,” .........
Talent deficit at the top: Some areas of concern in banking - M.G.Warrier
....At the same time, the news about the delay in filling up of vacancies at the top in various public sector organisations including Reserve Bank of India (RBI) and a tendency to make compromise on selection of candidates for narrow considerations has opened up a debate in the media. The government and the organisations should take cognizance of this healthy debate and grab the opportunity to overhaul the top level human resources (HR) management to meet challenges posed by the changes caused by opening up of the economy and consequent play of market forces......
Can't have cake and eat it too....
My View on "Pension updation and opening of fresh option - RBI...":
Before I proceed to offer my unsolicited comments (views have been asked for only from the regional units of the RBIOA), let me at the outset make one point clear. I cannot claim much expertise and detailed knowledge in the area since my experience is limited acquired while serving as CGM,HRDD for 11 months(!!) and having been entrusted with the 1992 Pay revision negotiations with all the Associations. (HRDD Chief ought not to have been entrusted with this work.). Nevertheless, I believe that my views on the aspects on which I am offering my comments are sound.
2. Pension Updation even in the Central Government has been introduced only in the last two Pay Commissions and was non-existent prior to that date. If we in the RBI demand pension updation, as in the Central Government, on the ground that the Bank's scheme of pension is on the lines of the GOI, then it is only logical that the rules relating to Pension updation( whether it is the definition of 'pay', manner of fixation of revised pension etc) in the RBI cannot be different and have to follow the rules in the GOI as decided by the Pay Commission. We cannot have the best of both the worlds( RBI's rules relating to determination of pension and rules of the Pay Commission in the matter) and to demand it betrays lack of realism. Hence, if we wish to have the benefit of updation of pension, we have to accept the conditionality of the GOI.
Secondly, the rationale of pension updation is that pensioners who had retired from a particular grade should be eligible to draw the same amount regardless of their date of retirement. If this is so, it would appear that 'Pay revision' and 'Updation of pension' would have to follow the same periodicity (10 years as at present) and one cannot be delinked from the other. Otherwise, it would not be possible to ensure the drawal of same quantum of pension by all pensioners who had retired from the same grade but at different points of time. I would be happy to know whether there is any flaw in my argument and if there is I am willing to stand corrected.
3. In view of the above, it would be good if RBIOA find it possible to consent to the proposal with in the next 10 days as the issue has taken many years to get resolved.
4. As regards the condition relating to "rationalisation of perks" of serving employees, this is totally irrelevant to the issue and one cannot see any connection between this aspect and pension updation and pension option. Governor should with all his authority, backed up by his standing, reputation and skills in argument, take up this point with the GOI and most of us have confidence that he can and would do it. SBI officers have enjoyed better perks than the officers of the RBI for several decades( when perks were practically non-existent in the RBI) and I am sure that they would be enjoying excellent perks even now.
- A.Chandramouliswaran, E.D (Retired)
The Finance Ministry current direction to RBI on wage and pension updation at the span of every 10 years on the lines of 6th CPC and also that of future CPCs need to be rejected by RBI management to keep itself autonomous as per it's charter in real sense.Whether, the Top Management can do it or not due to obvious reasons will make the success and fall of the United Forums's efforts in the matter until forceful voice is raised in the matter. It appears that the bank's agreeing to RBI Staff Regulation statutorization in principle is giving space to government in amending staff matters by them. In case, United Forum is unable to keep the existing A+ Position vis a viz IAS Officers in Pay and perks matters, then they should ensure time bound promotion in RBI at IAS pattern at the minimum. pay rise on length of service of 30+ years at par with Secretary to GOI to all RBI Officers is to be insured and assured. I am sure when you talk boldly on this line only to Bank and GOI will be able to succeed and handle the bureaucrats suitably. Kindly think on this line also along for getting the leverage.
regards.
- Capt. C B Gupta
My personal view on the current debate on pension updation:
1. Pension was introduced in RBI effective January 1, 1986. A regular revision of pension has not happened so far. The revision once done(effective November 1, 1997) was dragged to court due to some irrational stand taken by Finance Ministry.
2. The position at 1 explains the urgency for pension revision. Conceding such urgency, during Governor Dr Subbarao’s period, Family Pension was revised. As there was a doubling of Family Pension from 15% of Pay to 30% of Pay the unacceptable and wrong method of arriving at revised family pension amount went unnoticed. Bank has so far been able to protect the interests of family pensioners post-revision, though the revision came very late. My view is that RBI should go ahead with revision of pension and find methods to protect the interests of the employees/pensioners. RBI can do this and delay in implementing the revision is not in the institution’s interest.
3. The conditionalities reportedly proposed by Finance Ministry are reminiscent of conditionalities totally unrelated to the projects usually imposed by IMF/World Bank for project loans given to ‘poor’ countries. The wage structure for workmen is based on negotiated settlement/s and last such settlement expired on October 31, 2012. Stealthily getting nods for change in service conditions without negotiation on major service conditions, besides being illegal, is denial of natural justice.
- M G Warrier, Thiruvananthapuram
Time Taken for Revision of Salaries of Bankers vs Parliamentarians
....UFBU has miserably failed to take the advantage of the pre-election period to extract an honourable settlement for the bankers. After the new government is installed, bankers will be more at the mercy of the new government, who will be in no way in hurry to settle the issues. ....
RBI issues fresh norms to curb customer discrimination
...To study credit pricing, RBI had formed a working group headed by Anand Sinha, former deputy governor of the central bank. The panel’s report, made public on Thursday, has suggested stringent norms to make loan pricing more transparent. “The working group recommends the spread charged to an existing customer cannot be increased except on account of deterioration in the customer’s credit risk profile,” RBI said........
Banks must lay down policy for sale, buying of property abroad
...The RBI also said banks should ensure that all future transactions relating to purchase or sale of real estate as well as acquiring or letting out property on lease or rental basis at overseas centres must be undertaken in accordance with the Board approved policy. " It has come to our notice that some Indian banks have committed certain lapses in purchase/ sale of real estate as well as in acquiring/ letting out property on lease/ rental basis at some places in foreign countries," the RBI said....
NPA situation unlikely to improve this fiscal: A&M
....The World Bank in a report released yesterday had said in India the problem is the banking sector's growing exposure to company debt. The fear is that this could ultimately affect the government's finances through its ownership of state banks and the need to prop up distressed but systemically important banks. The Reserve Bank of India (RBI) recently had issued guidelines to banks for early detection and curbing of non-performing assets (NPAs). .....
Bandhan Financial eyes deposits from existing client base in bank avatar
.......“Our customers do have cash surpluses from time to time, especially after they have repaid a loan. Now, they keep this money at home, but once we’re a bank, we can access it. Nearly 100% of our customers are women and they feel the need to save. Besides, there are two earning members in every family, so there is scope to raise deposits,” .........
To bank or not to bank: that is the question
........Given the record of the private sector banks, the RBI should have exercised caution. Who will take care of financial losses of these banks? Compared with public sector banks, their business size will be small, and they can focus only at the micro level. We need banks that can cater at the national level,” ...
Poor customer service at ATMs flayed
....The Reserve Bank of India (RBI), in a survey of ATMs, has found several deficiencies in services. These relate to messages showing insufficient cash and non-availability of contact details for lodging complaints at the ATM centres......
Cloning cards – the latest online menace
........This incident has also brought to light that cloning of credit/debit cards is the new growing industry in India and the reasons, cyber experts believe, are many. One of them is that cloning a card these days is as easy as photocopying a document with the innumerable softwares available online. A person just needs to go online, type cloning software and hundreds of them will come up...
Virtual credit cards: Future of money
.....In India, several banks and credit card issuers including SBI Cards — a joint venture between State Bank of India and GE, ICICI Bank, Citibank, Axis Bank and HDFC have already launched virtual credit cards to facilitate e-commerce, which is a major force driving the surge of virtual credit cards. Virtual credit cards are not issued physically. Credit card holders can use their cards by accessing their Internet banking facilities and providing their card details. The bank generates a........
Gubbi gets White Label ATM
BTI Payments Pvt. Ltd., one among the companies approved by the Reserve Bank of India (RBI) to establish 9,000 White Label Automated Teller Machines (ATMs) across the country, has set up the first facility at Gubbi in Tumkur district...........
Thursday, April 10, 2014
RBI's Deputy Governor R Gandhi: A 'simple man' well-qualified for new job
RBI appointment referred to EC for approval
The Election Commission will have a say in deciding a replacement for incumbent RBI Deputy Governor KC Chakrabarty, who had sought early retirement from the central bank. Although a search panel headed by RBI Governor Raghuram Rajan had zeroed in on a banker to take charge of this prestigious position, the Central Government, it is understood, wants to play it safe...........
RBI - fighting a lone battle
My View on "The RBI gets it right":
While I disagree with many of the words used in the conclusion which reads “The mandarins who run the Union finance ministry come from the top of the civil service examination merit list; those who run the postal department come from far below. How can a Brahmin find so much merit in an OBC?”, it is tough to find reasons to contest the grounds for making such an observation. Last few years have seen the central bank (Reserve Bank of India) as an institution fighting a lone battle to perform its mandated role as efficiently as it would have enjoyed doing. Most of the Governors and Deputy Governors who were in position during the last decade and a half, did understand the role expectations from RBI once they started operating from Mint Street. But the hostility of lower rung finance ministry officials for extraneous reasons made their life difficult. This resulted in the evolution of three power centres, namely RBI, its Governor and the finance ministry taking different positions on important policy issues. It is comforting to find that Dr Raghuram Rajan has been able to assert leadership and coordinate among these three divergent pulls and pushes. His willingness to unlearn what is not relevant to the Indian context and to prepare RBI to meet the new challenges by making the priorities clear to his deputies inside RBI and giving expression to his expectations from GOI in no uncertain words gives one hope about RBI getting back on the right track quickly.
- M G Warrier, Thiruvananthapuram
Changing perceptions
The rupee’s recent appreciation to below 60 a dollar — it is hovering around those levels — is a significant development and not just because of its breaching a psychologically important mark. At one level, its recent strength would appear to mirror the changing perceptions of investors, especially from............
Suitable choice
My View on "GS Sandhu - Making a propitious start":
It is a good development that a person with mild manners and belief in taking people along has been appointed in this position. Equally important is the aspect that he holds a doctorate in banking and hence should be a suitable choice for the post. In the past, some persons who have no background even in Finance not to speak of banking were appointed to this Ministry. IAS officers who were working, say, in the Water resources Ministry and with out much background in Finance are appointed to this Ministry as they are supposed to be all knowing!!It is also good that at present no IAS officer is a part of the top management( Governor/Dy Governors)of the RBI and I wish this position continues. In fact, I had expressed a view long ago in an article in the 'Business Standard' that there should be no quota for appointment to the post of Dy.Governor, i.e one/two from the RBI, one from the Banking Industry and one either from the IAS/an Economist. Highly competent persons should be appointed and in the process, if some section is not represented, it should not matter.
- A.Chandramouliswaran
Dr.N.A. Mujumdar - Prayer meet
Dr. Narasinh Annaji Mujumdar (former Principal Adviser, Reserve Bank of India) passed away on April 6, 2014. He was a selfless, caring, loving person, and a source of inspiration to many. His strong spirit will always remain with us. Fondly remembered by his wife, Shashikala Mujumdar his son, Sudesh Mujumdar; his daughter, Mamata Patwardhan and her husband, Shailesh Patwardhan; his grandchildren, Sharvari, Medha, and Jayant, the entire Patwardhan & Mujumdar families; and his Friends and Colleagues.
Prayer meet on Friday 18th April from 5pm to 7pm at Sri Admar Mutt Temple, 115 H, Near Fire Station, S V Road, Andheri West, Mumbai - 58.
Thank you for your condolences & support magmata@hotmail.com
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