......."Enquire about the exact amount of outstanding balance for the actual date of closure. For example, if you enquire today and go for a closure after three days, the bank may have not factored these three days' interest. So, even after you pay, this amount could be treated as 'balance due', though you believe you have closed the loan,"
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 18, 2014
Thursday, April 17, 2014
RBI implements Bhaskar panel recommendations
............“To overcome the possible conflicts of interest in the benchmark setting process arising out of the current governance structure of the FIMMDA and FEDAI, an independent body, either separately or jointly, may be formed by FIMMDA and FEDAI for administration of the benchmarks,” ...........
There goes the rate cut
...............It remains unclear why the government doesn’t dump FCI’s bulging stocks in the market, given how cereal inflation is a stubborn 9-10%. Also, sooner rather than later, the government needs to address the issue of whether it is accepting the Urjit Patel committee’s recommendations—as long as RBI remains wedded to Patel’s 8% CPI inflation target by January 2015 and 6% by January 2016, it is not going to cut interest rates.
Mr Bernanke wants RBI to enjoy Autonomy - Dr.T.V.Gopalakrishnan's views
The RBI's autonomy is only on paper and it is only an institution physically separated from the Central Government. All its functions are carried out in terms of the RBI Act of 1934 but with the tacit approval of the Government. As long as Government nominees are there on the RBI Board and Government expects RBI to get a clearance from the Ministry of Finance before announcement of any policy,there cannot be any autonomy for RBI. Further...........
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Improve data collection
..............Former RBI Governor Subbarao had repeatedly mentioned the poor quality of data. It is unfortunate that it has not captured the attention it deserved of the powers that be. As a result, economic decisions and policy measures taken on their basis are topsy-turvy, reflecting poorly on the economic indicators and welfare of the people.........
Monetary sovereignty
.....What else should countries vulnerable to such shocks do? Dr Rajan's emphasis on more accessible multilateral financial safety nets is certainly acceptable in theory, but IMF governance reforms - which are necessary for this to happen - are effectively stuck; no country can afford to rely on this framework to the total exclusion of self-insurance. In effect,.............
The right inflation target
.........The RBI needs to seriously reconsider the idea of inflation targeting based on the CPI. The reason for it is food, which has an almost 50 per cent weight in the index. The inflation rates derived from this index would, hence, mainly reflect supply-side factors not amenable to control using interest rate tools. Those are more effective against.............
Why Modi & Raghuram Rajan complement & not contradict each other
.............Is not Rajan dreaming the same, along with his friend and former banker Nachiket Mor who suggested ways to achieve financial inclusion in a 247-page report? The target of basic financial services for all adults is now January 2016, why would Modi throw out someone who is on the same wavelength?.................
Why RBI’s Raghuram Rajan should stop complaining about Fed policies
.............Rajan is right in airing his views on unconventional monetary policies as it does open up debate on the efficacies and side effects of such policies. However, asking the Fed or ECB to weigh the consequences of their policies on other economies is like asking the Indian government to weigh its subsidy policy on the economy............
Mirror,Mirror on The Mind
SC slams Sebi, RBI for Saradha scam
The Supreme Court on Wednesday observed that the Saradha scam may not have occurred had monitoring agencies like the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) maintained adequate vigil. The bench of Justice T S Thakur and Justice C Nagappan was hearing a petition by Saradha depositors who prayed for a CBI inquiry...........
New cities drive ING Vysya’s mobile banking business
......An online survey conducted in association with ING International Survey, London showed that 43 per cent of the respondents own a smart phone. “Another stronger reason for us to introduce the solution is that 50 per cent of those in the age group of 18-34 years use their mobiles more than desktops to access their bank accounts,” Morgan said.......
NBFCs turn to retail deposits to raise capital
........The Reserve Bank of India made it expensive for banks to raise money from the central bank after it reduced the overnight borrowing limit and raised the longer-term borrowing (term repos) limits in the money policy unveiled on April 1. Term repos are more expensive than overnight borrowing...........
CAFRAL RBI Recruitment 2014 Research Associates
Centre for Advanced Financial Research and Learning (CAFRAL) promoted by Reserve Bank of India (RBI) invites applications for the post of Research Associates on Contract Basis (For Two Years). Interested candidates......
How to improve customer service at ATM kiosks?
........Apart from the problems enumerated in the aforesaid survey, there are a wide variety of other problems encountered by the public like swallowing of debit cards by the machines, not disbursing the full amount withdrawn and fraudulent withdrawals even after the loss of the ATM card is reported to the issuing bank. In fact, RBI gives instructions to banks at various times, but there is no single authority to monitor compliance of these instructions. A case in point is as under:......
And now, the ATMs strike back, the beetle style
........Attackers could soon be sprayed by a hot foam created by a cocktail of chemicals that come together when ATM surfaces covered with several layers of special plastic film are violently tampered with — ingeniously inspired by the natural weapon used by bombardier beetles by Swiss researchers. This certainly seems on the money. More so than most current defence mechanisms, in fact, which need electricity in order to work.
Wednesday, April 16, 2014
Bernanke's message to new govt: Ensure RBI's autonomy
..............Independence of the central bank is something clearly close to his heart. Asked for his advice to the next government about its relations with the Reserve Bank of India, Bernanke said he didn't know much about India's political dynamics, but what was critical for any country was that its central bank's independence be guarded. He was speaking at the second Kotak Presidium, a forum for global leaders to share ideas that shape the future. "You have an excellent central bank governor in Raghuram Rajan, who has been my long-time colleague as an academician in the US. As the Indian economy matures, an independent and responsible central bank is really central to its success," .........
Targeting inflation key for central bank, says Ben Bernanke
...........“Monetary policy benefits from clarity and transparency,” Bernanke said. “In a country where inflation is high, it is important that the market knows what you are doing.” To be sure, even with a single mandate, a central bank has to pay attention to growth to some extent, he said. Bernanke’s statement will boost the Reserve Bank of India’s efforts to target inflation in a more dedicated manner. A central bank panel headed by RBI deputy governor Urjit Patel had recommended that the bank should make inflation-targeting its central purpose. RBI is yet to accept the recommendations fully..............
Ben rejects Rajan’s charge on QE impact
..........Bernanke made it clear that there were academic’ differences between him and Rajan over the issue of quantitative easing. “Raghu Rajan and I go back a long way. I have for a long time admired his work as an academic. He has made predictions of financial stress before the crisis and was very good during the crisis in promoting capital injections by the government. We discussed the spillover from monetary policy and we have somewhat different views. Basically, I am more optimistic that quantitative easing and similar policies can and have been effective. That is two people differing on academic issues,” said Bernanke...........
Read - TOI
Mor(e) questions than answers
My View on "Mor Committee Recommendations – An analysis - Dr S...":
The author deserves congratulations in the first place for the succinct analysis of the Report. After the Supreme Court indicted AADHAR instrumentality for deliverance of benefits from any institution Mor Report that relied wholesale on this instrument at once loses its relevance.
Second, the Committee failed to recognize the existing institutions in rural areas and the measures to make them effective in delivering intended benefits to the rural poor.
Third, it has not analysed the ills plaguing the BC instrument and the Banks that engaged them have issues; BCs have issues with the Banks; clients of BCs have issues: all these have not been dealt with in detail.
ATMs – white or color, no matter – are poorly fed even in urban areas. Several ATMs have labeled that they are fed with only Rs.500 and others with Rs.1000 and others with both. Rarely you get Rs.100s out of them. How many of the poor have such denominations and how many can in fact afford them. How can financial inclusion objectives be served with such instruments.
Technology should be a servant and not the master. As the critique put it reliance on lowly populated nations’ experiences and using them as instruments of convenience without examining the risks attached in detail is fraught with danger. Mobile technologies for payments and settlements have serious embedded risks right from passwords to web-enablement and in the context of increasing cyber crimes, how does Mor Committee ensure that the interests of the poor are protected with such introduction?
There are more questions than answers in Mor Committee Recommendations. RBI would actually do well to set aside the recommendations and use for academic purposes.
- Dr.Yerram Raju
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