...........RBI adopted the uniform price method in June last year, when bond yields were volatile, with foreign institutional investors pulling out from the domestic markets amid a weakening currency. However, the macro fundamentals have improved since last September, with the rupee stabilising after recouping most of the losses. A new government at the Centre has renewed hope among foreign investors. It is expected to hasten the opening to foreign investment and control the fiscal deficit.........
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.
Tuesday, July 29, 2014
What’s Plan B, SBI plans to ask its borrowers
............... “These are the learnings from the last cycle and the due diligence will be greater in future,” she said, pointing out that some of the models that were put in place had not worked. The SBI chairman feels, however, that the early warning system put in place by the regulator would help alert banks about potential non-performing assets. Bhattacharya said that banks have asked the government to ensure that..........
Finmin rejects proposal to set up SAARC bank
The finance ministry has rejected a proposal by the commerce ministry to set up a development bank for South Asian Association for Regional Cooperation on the lines of the proposed BRICS bank, a finance ministry official said. The ministry rejected the proposal as there is already an institutional mechanism-- South Asian Development Fund-- to take care of the development needs of the region, the official said.......
ICICI likely to place infra bonds up to Rs 3,000 cr with LIC
............ICICI Bank is the sole arranger of the issue. The bank declined to comment on the matter. LIC officials were not reachable. Following the Reserve Bank of India (RBI)’s move to exempt the cash reserve ratio and statutory liquidity ratio rules on funds raised via long-term infra bonds, ICICI Bank will be the first lender to issue these...........
Monday, July 28, 2014
Jaitley to address RBI board on Aug 9
Finance Minister, Arun Jaitley, will address the Reserve Bank of India board here on August 9 amid expectations that the central bank will complement government actions by reducing the rates to boost growth. “The meeting has been scheduled for August 9 where he would be addressing the board members and talk about announcements made in the Budget to perk up growth,” a source said. Jaitley, who presented his maiden Budget, is likely to inform the RBI board about the steps taken to contain the fiscal deficit and may underline the need to reduce the interest rates to promote growth. It has been a custom that the Finance Minister addresses RBI board, consisting of RBI Governor and existing three deputy governors, after the Budget..............
Fiscal correction not to be trifled with - Dr.S.S.Tarapore
...............A seminal idea is the setting up of an Expenditure Management Commission (EMC) which will give an interim report in the current financial year and a final report later. It would be preferable if the Commission were to give a series of reports on specific expenditures using the 80/20 rule by concentrating on select areas (say, 20 per cent of all areas) which have a potential for substantial savings (say, 80 per cent of all savings). Further, the Commission should look into..........
Explaining expectations - Dr.Subir Gokarn
..............Not very much, if one were to go by the Reserve Bank of India's quarterly household inflation expectations survey. The median expectation for the rate of inflation one year ahead is depicted in the graph. Expectations clearly dipped sharply during the 2008 financial crisis, but this was a period of strong monetary stimulus. They rose steeply as the crisis appeared to abate and then remained..............
Is it Finacial Inclusion or Exclusion? - Dr.T.V.Gopalakrishnan
..........All households can also be forced to ensure that from whom soever they take some service should be having bank account. The banks should be given separate timing and a separate set off staff with a social bent of mind to open the accounts. The people should be attracted to banks and banks should be willing to receive them heartily and happily. I think the approach.........
Monetary policy and its formulation may undergo a sea change
..................Much to the chagrin of the Reserve Bank of India and its authorities, the central government has started the process to rework the monetary policy formulation in line with the Indian Financial Code as suggested by the Financial Sector Legislative Reforms Commission. The objective is to come up with modern monetary policy framework with clearly set targets, accountability in decision making and actions open to judicial review.............
The Poverty of Economics - T C A Srinivasa-Raghavan
...............The question that needs asking now is this: how well equipped is modern economics to handle the new problems arising from this global plenitude of labour and capital? After all, it developed as a discipline based on the analysis of scarcity. All its tools are designed to deal with scarcities, not surpluses. My economist friends say economics has been concerned with scarcities in .........
Policy triggers and wild cards
................ If the monsoon doesn't misbehave from now on, the "glide path for inflation", as Raghuram Rajan calls it, will be along the lines the RBI chief is hoping for. Despite the lower inflation numbers for June, most observers think the RBI will maintain status quo in the next policy review in August. The dangers of higher food inflation, and also of a possible spike in global crude, could mean the RBI adopts a wait-and-watch policy. Some ..........
RBI School Quiz at GITAM
.......The quiz consists of questions pertaining to the RBI, Indian banking history and its achievements over the last 79 years, banking, accounting, finance, India’s economy, trade and commerce apart from general knowledge. The winning teams from each centre will join the other winners from across South India. The zonal round is scheduled for November 7 in Chennai. Pradeep Atmaram from Bangalore will host the show as quiz master, while RBI governor Raghuram Rajan is expected to distribute prizes to the winners...........
College conducts panel discussion on union budget
Sri Sairam Institute of Management Studies conducted a panel discussion on ‘Critcal Union Budget Analysis -2014’ recently. It was presented by three eminent speakers, Dr. R. Kannan, economist, former principal advisor, RBI and former member, IRDA;........
Two bank officials booked for transferring Rs 3 lakh ‘by mistake’
.......The banker instead of transferring the money to the company’s account credited the money to wrong account number. “According to the Reserve Bank of India (RBI) rules, my amount should be credited back if the bank officials mistakenly mentioned wrong account number,” SK Gupta, complainant, said. Gupta said: “When I contacted Amit Aggarwal, in whose account the money was transferred, he denied returning money. The officials of the bank also denied providing me any help.”..........
Banks hounded following panic over fake currency
.............In a recent example, a chief manager of a nationalised bank in the city, had to tender alternative note of Rs 50 denomination, when a vegetable vendor sought for an exchange. According to the bank official, traders strongly believe that, currency note in the denomination of Rs 50, with the picture of bunch of flowers on the top right edge, is fake. It’s not just the vendors. Even at malls, government offices and buses, this note is inspected by the receiver who will hold it against the sun, before rejecting it. There have been many instances when people have had to produce another note to replace the one with the flower.............
‘या चिल्लर काढूया’
व्यवहारात चलनी नाण्यांची सातत्याने जाणवत असलेली टंचाई व्यापारी व ग्राहकांच्या पुढाकाराशिवाय संपणे शक्य नाही हे ओळखून जळगावमधील एकता रिटेल किराणा मर्चंटस पतसंस्थेने 'या चिल्लर काढूया' अभियान आयोजित केले आहे. ..............
A house by the Thames
........."Most Indians began investing in the London property market after the crash in global property prices in 2009," says Sunil Mishra, CEO of Karvy Private Wealth. This was helped by the Reserve Bank of India's liberalised remittance scheme that allowed an individual to invest up to $200,000 in a financial year in various instruments, including real estate, abroad. "There was an increase in the last three to four years in the number of high-net-worth individuals who came to us with real estate queries for London," says Mishra. Last year, the Reserve Bank of India reduced the limit under the scheme to $125,000. But this is still enough to get you started. It means that a family of four can cumulatively invest up to $500,000 per year.......
PRATHYASA - A bulletin of Reserve Bank Retired Employees Association, Kochi
PRATHYASA - A bulletin of Reserve Bank Retired Employees Association, Kochi - July 2014 issue.....
The Vijay Mallya Story
........The book under review is a vivid account of the colourful life and troublesome times of Vijay Mallya — a liquor baron who developed wings and soared into the airlines business and crashlanded causing untold agony to himself and his employees..........
Read - FPJ : Book Review by P.P.Ramachandran
RBI says banks not allowed to trade in bonds for infra lending
Banks will not be allowed to trade bonds issued by other lenders for infrastructure lending that would be exempted from mandatory reserve requirements under the guidelines issued last week, said Reserve Bank of India (RBI) deputy governor R. Gandhi. The RBI last week allowed lenders to issue bonds for infrastructure lending, but barred the banks from holding each other’s bonds................
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