Thursday, August 12, 2010

RBI outlines banking entry requirements for private sector Opening New Acount Afresh!
Posco problems will be solved in a month, says steel ministry !

Troubled Galaxy Destroyed Dreams- Chapter 541

Palash Biswas

Nearly six months after union finance minister Pranab Mukherjee pointed out the need for new regulations for the hybrid growth of the Indian banking sector and called for the entry of large industrial houses and eligible non-banking financial companies (NBFCs), the Reserve Bank of India yesterday released a discussion paper on 'Entry of new banks in the private sector' as a precursor to the actual policy framing process.Meanwhile,Posco problems will be solved in a month, says steel ministry !

The steel ministry is batting hard for Korean steel major Posco's Rs54,000-crore project in Orissa, which has been stalled for five years over environmental and land acquisition difficulties. At a press conference in New Delhi, top ministry officials said they would work to clear the latest environment ministry objections in a month's time.
The Reserve Bank of India (RBI) on Wednesday released its long awaited discussion paper on what basis it should issue new banking licences. The big surprise in the paper is a fairly open and positive discussion on allowing corporate houses into banking, something the RBI has been opposed to.
Terming it a good paper "technically", Ajay Shah, Senior Fellow at National Institute of Public Finance and Policy (NIPFP) said it is a step forward in the right direction. "It is a genuine discussion paper in the sense that it kicks off and interesting discussion," he added.

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Commenting on the need for more competition, Shah said, there is a desperate need of more banks in India. However, he is also concerned with the kind of malpractices that it may bring about. "The simple 'dharma' of the market economy is more competition, which is always good, but that's just not true in many places," he believed.
Below is a verbatim transcript of the interview. Also watch the video.
Q: Your first thoughts on the discussion paper itself, what are your key takeaways?
A: It's technically a good quality paper. RBI is being very neutral in the paper. They are not expressing their view points. It is a genuine discussion paper in the sense that it kicks off and interesting discussion. It's a step forward in an important debate.
Q: Let us take up first of the topics—how much of shareholding should one individual shareholder be given and how much should a promoter be allowed to hold—what are your thoughts on both those? At the moment it stands at 5%—one takes RBI approval and go to 10% or if you come in as a promoter with 40% you have to bring it down to 10% at some mutually agreed timetable. Would you go with those kinds—that widely held—nobody gets more than 5% or 10%?
A: We are doing well in moving in this direction but we have to constantly keep these two issues in mind. One is that India desperately needs more competition in banking. This is an oligopolistic sector and we very badly need more banks. We need foreign banks and we need local banks and so on. At the same time this is one place where we have to be very careful. The simple 'dharma' of the market economy is more competition is always good—but that's just not true in many places.
For example, in banking, you have these clear problems of conflict of interest where we have seen in the 60s that banks in India were basically just extended treasuries of industrial houses. We have seen all over East Asia that the industrial houses ran banks and that got us into a lot of trouble. But what's good about the discussion paper is it makes you think.
It made me think that while the focus on industrial houses is correct it's probably not the essence of it. The essence of it is malpractice; the essence of it is a bunch of crooks running a bank. This could happen even if they are not an industrial house.
http://www.moneycontrol.com/news/business/rbis-discussion-paper-technically-looks-good-nipfp_477544.html

About a week back, the union ministry of environment and forests (MoEF) had stopped the state government from providing 2,959 acres of forest land citing violation of environment protection laws. ''The issue issue would get resolved soon, may be in a month's time,'' steel secretary Atul Chaturvedi said on Wednesday.
''The environment ministry has raised some issues. They will be resolved soon. We hope to take it up with the concerned ministry,'' union minister for steel Virbhadra Singh added.
Last week, a panel set up by the MoEF, headed by National Advisory Council member N C Saxena, found that the project site for the Posco plant was inhabited by some 'other traditional forest dwellers'.
Though the Forest Rights Act requires all tribal peoples to be rehabilitated (with their consent) before acquiring land for the project, the Orissa government deliberately withheld information regarding opposition of the locals for the land being acquired by the company and gave a green signal to the project against its own rules, Saxena said.
Posco, the world's third-largest steelmaker by output, had signed a memorandum of understanding with Orissa in June 2005 for a 12-million tonnes a year steel plant to be built in three phases by 2016.

Posco project back on hold after environ ministry finds violations news
*
07 August 2010

The union ministry of environment and forests on Friday put the endlessly delayed Posco project on hold once more, pointing to violation of the Forest Rights Act and deliberate attempt by the Orissa administration to hide facts.
While not going as far as withdrawing permission given to the Korean company's Rs54,000 crore mega steel plant to use forest land, the ministry directed the Orissa government to stop all work at the project site, including land acquisition.
The ministry's step comes against the background of Orissa continuing to acquire land for the project and not responding to centre's demand for clarifications on whether the state government had complied with all provisions of Forest Rights Act. The decision was taken after the N C Saxena-Devendra Pandey committee appointed by the centre reported violations of the FRA at the Posco site.
''We have asked the state government to stop all works related to the project,'' environment minister Jairam Ramesh said. The ministry's order has cited the findings of a subgroup of the committee, comprising Arupjyoti Saikia, Ravi Rebbapragada and Ashish Kothari. The team's report concluded that the process of settlement of rights under the FRA has not been completed. To the contrary, the process has not ''proceeded beyond the initial stages''.
Earlier this week, in a letter to Ramesh, N C Saxena wrote, ''The team's conclusion is that any work related to the project in this area would be a violation of the FRA. This was informed by our team to the district administration on 24 July, and the state chief secretary on July 27, 2010.
However, we have been informed that the district administration is proceeding with land acquisition and demolition of the paan cultivation of people on forest land. Our clear view is that such work is in violation of the Forest Rights Act.''

Orissa kicks off land acquisition for Posco amidst protests news
*
27 July 2010

The Orissa government today kicked off land acquisition for South Korean steel major Posco's proposed Rs51,000 crore ($12 billion) steel project in Jagatsinghpur district of the state, despite local opposition and criticism over Forest Rights Act violation by the central team, which termed the acquisition "illegal."
The district administration initiated the acquisition process by acquiring government land in Gada Kujang panchayat area.
The authorities acquired land from two persons, Rohit Behera and Basant Behera of Bhuyanpal village, paying them cheques for Rs1.15 lakh each for their betel-vine farm land admeasuring over ten decimal area each.
The land used for betel-vine cultivation originally belonged to the government and the farmers removed the betel vines of their own, the officials claimed.
The Posco Pratirodha Sangram Samiti (PPSS) sphereheading agitation against the project, however, contested the acquisition saying they needed consent of the gram sabha (village council) for it.
It is illegal, the villagers are traditional forest dwellers as they depended on forest land for a living and the government is violating forest right Act, they said.

Posco India

Posco problems will be solved in a month, says steel ministry
12 August 2010

*

informachine tools

Posco project back on hold after environ ministry finds violations
07 August 2010

Panel to review Posco's land acquisition plans
30 July 2010

Orissa kicks off land acquisition for Posco amidst protests
27 July 2010

South Korea's Posco hikes stake in Australia's iron ore miner Murchison Metals
19 July 2010

*	*	Fresh setback for Posco: HC rules against prospecting licence 15 July 2010
*	*	Anti-Posco protestors accuse CM of backtracking 12 July 2010
*	*	Posco 'comfortable' about Paradip project after rehab package 09 July 2010

The discussion paper has invited comments on issues like permission to new banks (including local area banks), allowing industrial, business houses to promote banks and conversion of NBFCs into banks.
The main areas listed for discussion and debate are related to minimum capital requirements, contributions from promoters, limits on promoter shareholding and allowance of foreign equity in the sector and whether NBFCs be allowed to be converted into banks.
Regarding capital requirement, RBI has voiced its opinion that given the high level of minimum capital requirement only serious players be invited into the banking space.
It has also discussed the benefits and disadvantages of keeping minimum capital requirement at a low level of over 'Rs300 core, middle level of 'Rs500 crore and high level of 'Rs1,000 crore.
According to the discussion paper, while low level of minimum capital may lead to optimal ultilisation levels of resources from the the start, it may invite non-serious players entering the field.

BJP makes clear stance on N-liability bill news
Conceding that the country needed legislation on nuclear liability, the Bharatiya Janata Party (BJP) struck a compromise with the ruling UPA coalition's Congress Party agreeing to support passage of such legislation provided it was re-drafted to make it ''India-specific.''

All along the BJP has been arguing, with much force and credibility, that the dodgy n-liability draft, sought to be pushed through Parliament, was designed to bring in private players as nuclear plant operators and limit their liability. It argued that if such was not the case then really there was no need for the bill.
In its initial drafts the government had capped liability at the first level at Rs500 crore. Faced with an uproar over what was perceived to be a grossly understated cap, given the magnitude of a nuclear disaster, the redrafted bill may now include a provision for ''unlimited liability''.
The new draft may also provide for claims to be administered entirely through a Claims Commissioner, instead of splitting up liability at two different levels.
''If the bill is re-drafted and shown to us, if it is India-specific, we can agree to it. We are not opposing the bill for the sake of opposing it; we do need such a law,'' Swaraj said.
IRDA seeks to wash hands of cashless mediclaim imbroglio news

A day after the Delhi high court ordered the Insurance Regulatory and Development Authority to sort out the imbroglio over cashless mediclaim facilities, it is still unclear if the insurance companies will be made to restore the facilities at the premium or so-called 'five star' hospitals.
Four public sector general insurers withdrew the facility in top city hospitals on the grounds that they tend to pad up their bills for insured patients and are unwilling to accept rates offered by these insurance companies.
The Delhi High Court had come down on IRDA on Tuesday for its failure to sort out the dispute between insurance companies and city hospitals and directed IRDA to make arrangements to restore the facility.
''Now that the High Court has given direction, we will follow that,'' IRDA chairman J Hari Narayan told reporters on the sidelines of a FICCI event in New Delhi on Wednesday.
At the same time, he refused to mediate between major hospital chains and insurance companies on denying cashless treatment to policyholders, saying that there was nothing the insurance regulator could do about it. He maintained that IRDA would come into the picture only if there was a breach of contract between the company and the insurer.
He said that that more products with differential features and varying premiums would help all stakeholders, and hinted that premiums for treatment in five-star hospitals are likely to go up.

RBI sees policy impacting in 6-12 mths

Published on Thu, Aug 12, 2010 at 13:00 | Updated at Thu, Aug 12, 2010 at 13:13 | Source : Reuters

Monetary policy action taken by the Reserve Bank of India should start to show its impact on inflation over the next 6 to 12 months, a central bank deputy governor has said.

Following are comments from an article by Subir Gokarn, Reserve Bank of India (RBI) deputy governor which was published on the central bank's website on Thursday.

Reserve Bank of India

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Reserve Bank of India

*	*
Logo of RBI	The RBI headquarters in Mumbai

Headquarters

Mumbai, Maharashtra, India

Coordinates

*18°55′58″N 72°50′13″E / 18.93278°N 72.83694°E / 18.93278; 72.83694 Coordinates: 18°55′58″N 72°50′13″E / 18.93278°N 72.83694°E / 18.93278; 72.83694

Established

1 April 1935

Central bank of

Indian Rupee Symbol:

ISO 4217 Code

INR

Reserves

$287.37 billion(2009)

Base borrowing rate

5.2%

Base deposit rate

9.5%

Website

rbi.org.in

RBI is the apex banking body in India

The Reserve Bank of India (RBI, Hindi: भारतीय रिज़र्व बैंक) is the central banking system of India and controls the monetary policy of the rupee as well as US$287.37 billion (2009) of currency reserves. The institution was established on 1 April 1935 during the British-Raj in accordance with the provisions of the Reserve Bank of India Act, 1934 [1] and plays an important part in the development strategy of the government.

[hide]

1 History

2 Structure

3 Main Functions

[edit] History

[edit] 1935 - 1950

The central bank was founded in 1935 to respond to economic troubles after the first world war.[2] The Reserve Bank of India was set up on the recommendations of the Hilton Young Commission. The commission submitted its report in the year 1926, though the bank was not set up for another nine years. The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as to regulate the issue of bank notes, to keep reserves with a view to securing monetary stability in India and generally to operate the currency and credit system in the best interests of the country. The Central Office of the Reserve Bank was initially established in Kolkata, Bengal, but was permanently moved to Mumbai in 1937. The Reserve Bank continued to act as the central bank for Myanmar till Japanese occupation of Burma and later up to April 1947, though Burma seceded from the Indian Union in 1937. After partition, the Reserve Bank served as the central bank for Pakistan until June 1948 when the State Bank of Pakistan commenced operations. Though originally set up as a shareholders' bank, the RBI has been fully owned by the government of India since its nationalization in 1949.[3]

[edit] 1950 - 1960

Between 1950 and 1960, the Indian government developed a centrally planned economic policy and focused on the agricultural sector. The administration nationalized commercial banks[4] and established, based on the Banking Companies Act, 1949 (later called Banking Regulation Act) a central bank regulation as part of the RBI. Furthermore, the central bank was ordered to support the economic plan with loans.[5]

[edit] 1960 - 1969

As a result of bank crashes, the reserve bank was requested to establish and monitor a deposit insurance system. It should restore the trust in the national bank system and was initialized on 7 December 1961. The Indian government founded funds to promote the economy and used the slogan Developing Banking. The Gandhi administration and their successors restructured the national bank market and nationalized a lot of institutes.[6] As a result, the RBI had to play the central part of control and support of this public banking sector.[7]---rp

[edit] 1969–1985

Between 1969 and 1980 the Indian government nationalized 20 banks. The regulation of the economy and especially the financial sector was reinforced by the Gandhi administration and their successors in the 1970s and 1980s.[6] The central bank became the central player and increased its policies for a lot of tasks like interests, reserve ratio and visible deposits.[7] The measures aimed at better economic development and had a huge effect on the company policy of the institutes. The banks lent money in selected sectors, like agri-business and small trade companies.[8]

The branch was forced to establish two new offices in the country for every newly established office in a town.[9] The oil crises in 1973 resulted in increasing inflation, and the RBI restricted monetary policy to reduce the effects.[10]

[edit] 1985–1991

A lot of committees analysed the Indian economy between 1985 and 1991. Their results had an effect on the RBI. The Board for Industrial and Financial Reconstruction, the Indira Gandhi Institute of Development Research and the Security & Exchange Board of India investigated the national economy as a whole, and the security and exchange board proposed better methods for more effective markets and the protection of investor interests. The Indian financial market was a leading example for so-called "financial repression" (Mackinnon uand Shaw).[11] The Discount and Finance House of India began its operations on the monetary market in April 1988l; the National Housing Bank, founded in July 1988, was forced to invest in the propoerty market and a new financial law improved the versatility of direct deposit by more secirity measures and liberalisation.[12]

[edit] 1991–2000

The national economy came down in July 1991 and the Indian rupee was devalued.[13] The currency lost 18% relative to the US dollar, and the Narsimahmam Committee advised restructuring the financial sector by a temporal reduced reserve ratio as well as the statutory liquidity ratio. New guidelines were published in 1993 to establish a private banking sector. This turning point should reinforce the market and was often called neo-liberal [14] The central bank deregulated bank interests and some sectors of the financial market like the trust and property markets.[15] This first phase was a success and the central government forced a diversity liberalisation to diversify owner structures in 1998.[16]

The National Stock Exchange of India took the trade on in June 1994 and the RBI allowed nationalized banks in July to interact with the capital market to reinforce their capital base. The central bank founded a subsidiary company—the Bharatiya Reserve Bank Note Mudran Limited—in February 1995 to produce banknotes.[17]

[edit] since 2000

The Foreign Exchange Management Act from 1999 came into force in June 2000. It should improve the foreign exchange market, international investments in India and transactions. The RBI promoted the development of the financial market in the last years, allowed online banking in 2001 and established a new payment system in 2004 - 2005 (National Electronic Fund Transfer).[18] The Security Printing & Minting Corporation of India Ltd., a merger of nine institutions, was founded in 2006 and produces banknotes and coins.[19]

The national economy's growth rate came down to 5,8% in the last quarter of 2008 - 2009[20] and the central bank promotes the economic development.[21]

[edit] Structure

[edit] Central Board of Directors

The Central Board of Directors is the main committee of the central bank and has not more than 20 members. The government of the republic appoints the directors for a four year term.

Name	Position
Duvvuri Subbarao	Governor
Shyamala Gopinath	Deputy Governor
Usha Thorat	Deputy Governor
K. C. Chakrabarty	Deputy Governor
Subir Gokarn	Deputy Governor
Y. H. Malegam	Regional of the West
Suresh D. Tendulkar	Regional of the East
U. R. Rao	Regional of the North
Lakshmi Chand	Regional of the South
H. P. Ranina	Lawyer Supreme Court of India
Ashok S. Ganguly	Chairman Firstsource Solutions Limited
Azim Premji	Chairman WIPRO Limited
Kumar Mangalam Birla	Chairman Aditya Birla Group of Companies
Shashi Rajagopalan	Advisor
Suresh Neotia	former Chairman Ambuja Cement Co.
A. Vaidyanathan	Economist, Professor Madras Inst.
Man Mohan Sharma	Chemist, Professor Mumbai University
D. Jayavarthanavelu	Chairman Lakshmi Machine Works Limited
Sanjay Labroo	CEO Asahi India Glass Ltd.
Sunanda padmanabhan	Government representative
Ashok Chawla	Government representative

[edit] Governors

The central bank had 22 governors since 04.01.1935. The regular term of office is a four years period, appointed by the national administration.

[edit] Supportive bodies

The Reserve Bank of India has four regional represantations: North in New Delhi, South in Chennai, East in Kolkata and West in Mumbai. The representations are formed by five members, appointed for four years by the central government and serve - beside the advice of the Central Board of Directors - as forum for regional banks and to deal with delegated tasks from the central board.[22] The institution has 22 regional offices.

The Board of Financial Supervision (BFS), formed in November 1994, serves as a CCBD committee to control the financial institutions. It has four members, appointed for two years, and takes measures to strength the role of statutory auditors in the financial sector, external monitoring and internal controlling systems.

The Tarapore committee was setup by the Reserve Bank of India under the chairmanship of former RBI deputy governor S S Tarapore to "lay the road map" to capital account convertibility. The five-member committee recommended a three-year timeframe for complete convertibility by 1999-2000.

On 1 July 2006, in an attempt to enhance the quality of customer service and strengthen the grievance redressal mechanism, the Reserve Bank of India constituted a new department — Customer Service Department (CSD).

[edit] Offices and branches

The Reserve Bank of India has branch offices at most state capitals and at a few major cities in India - viz. Ahmedabad, Bangalore, Bhopal, Bhubaneswar, Chandigarh, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, Patna, and Thiruvananthapuram. Besides it has sub-offices at Dehradun, Gangtok, Kochi, Panaji, Raipur, Ranchi, Shimla and Srinagar.

The Bank has also two training colleges for its officers, viz. Reserve Bank Staff College at Chennai and College of Agricultural Banking at Pune. There are also four Zonal Training Centres at Belapur, Chennai, Kolkata and New Delhi.

[edit] Main Functions

Reserve Bank of India regional office, Delhi entrance with the Yakshini sculpture depicting "Prosperity through agriculture"[23].

The RBI Regional Office in Delhi.

The RBI Regional Office in Kolkata.

[edit] Monetary Authority

The Reserve Bank of India is the main monetary authority of the country and beside that the central bank acts as the bank of the national and state governments. It formulates, implements and monitors the monetary policy as well as it has to ensure an adequate flow of credit to productive sectors. Objectives are maintaining price stability and ensuring adequate flow of credit to productive sectors. The national economy depends on the public sector and the central bank promotes an expensive monetary policy to push the private sector since the financial market reforms of the 1990s.[24]

The institution is also the regulator and supervisor of the financial system and prescribes broad parameters of banking operations within which the country's banking and financial system functions. Objectives are to maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public. The Banking Ombudsman Scheme has been formulated by the Reserve Bank of India (RBI) for effective redressal of complaints by bank customers. The RBI controls the monetary supply, monitors economic indicators like the gross domestic product and has Sexto decide the design of the rupee banknotes as well as coins.[25]Aoustin

[edit] Manager of exchange control

The central bank manages to reach the goals of the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

[edit] Issuer of currency

The bank issues and exchanges or destroys currency and coins not fit for circulation.The Objectives are giving the public adequate supply of currency of good quality and to provide loans to commercial banks to maintain or improve the GDP. The basic objectives of RBI are to issue bank notes, to maintain the currency and credit system of the country to utilize it in its best advantage, and to maintain the reserves. RBI maintains the economic structure of the country so that it can achieve the objective of price stability as well as economic development, because both objectives are diverse in themselves.

[edit] Developmental role

The central bank has to perform a wide range of promotional functions to support national objectives and industries.[26] The RBI faces a lot of inter-sectoral and local inflation-related problems. Some of this problems are results of the dominant part of the public sector.[27]

[edit] Related functions

The RBI is also a banker to the Government and performs merchant banking function for the central and the state governments. It also acts as their banker. The National Housing Bank (NHB) was established in 1988 to promote private real estate acquisition.[28] The institution maintains banking accounts of all scheduled banks, too.

There is now an international consensus about the need to focus the tasks of a central bank upon central banking. RBI is far out of touch with such a principle, owing to the sprawling mandate described above. The recent financial turmoil world-over, has however, vindicated the Reserve Bank's role in maintaining financial stability in India.

[edit] Further reading

Cecil Kisch: Review "The Monetary Policy of the Reserve Bank of India" by K. N. Raj. In: The Economic Journal. Vol. 59, No. 235 (Sep., 1949), pp. 436–438.

Findlay G. Shirras: The Reserve Bank of India. In The Economic Journal. Vol. 44, No. 174 (Jun., 1934), pp. 258–274.

Narenda Jadhav, Partha Ray, Dhritidyuti Bose, Indranil Sen Gupta: THE RESERVE BANK OF INDIÀ`S BALANCE SHEET: ANALYTICS AND DYNAMICS OF EVOLUTION, November 2004.

[edit] External links

*	Wikimedia Commons has media related to: Reserve Bank of India

[edit] References

^ Reserve Bank of India Act
^ Cecil Kisch: Review "The Monetary Policy of the Reserve Bank of India" by K. N. Raj. In: The Economic Journal. Vol. 59, No. 235 (Sep., 1949), PP. 436-438, P. 436.
^ http://www.rbi.org.in/scripts/briefhistory.aspx
^ Beth Anne Wilson und Geoffrey N. Keim: India and the Global Economy in Business Economics, January 2006, S.29.
^ Narenda Jadhav, Partha Ray, Dhritidyuti Bose, Indranil Sen Gupta: THE RESERVE BANK OF INDIÀ`S BALANCE SHEET: ANALYTICS AND DYNAMICS OF EVOLUTION, November 2004, S. 16.
^ Ananya Mukherjee Reed: Corporate Governance Reforms in India in Journal of Business Ethics, Volume 37, Number 3 / May, 2002, p. 253.
^ Sunil Kumar, Rachita Gulati: Did efficiency of Indian public sector banks converge with banking reforms? in Int Rev Econ (2009) 56:47–84, p. 47-48.
^ Panicos O. Demetriades, Kul B. Luintel: Financial Development, Economic Growth and Banking Sector Controls: Evidence from India. in The Economic Journal. Vol. 106, No. 435 (March 1996), pp. 359-374, p. 360.
^ Alpana Killawala: "History of The Reserve Bank of India – Summary", Reserve Bank of India Press Release, 18.03.2006 (RBI), (.pdf)
^ Narenda Jadhav, Partha Ray, Dhritidyuti Bose, Indranil Sen Gupta: THE RESERVE BANK OF INDIÀ`S BALANCE SHEET: ANALYTICS AND DYNAMICS OF EVOLUTION, November 2004, S. 40.
^ Sunil Kumar, Rachita Gulati: Did efficiency of Indian public sector banks converge with banking reforms? in Int Rev Econ (2009) 56:47–84, p. 48.
^ Chronology of Events, Developing the Markets: Seeds of Liberalisation- 1985 to 1991 (RBI)
^ Amal Kanti Ray: India's Social Development in a Decade of Reforms: 1990–91/1999–2000 in Social Indicators Research, Volume 87, Number 3 / July, 2008, p. 410.
^ Ananya Mukherjee Reed: Corporate Governance Reforms in India in Journal of Business Ethics, Volume 37, Number 3 / May, 2002, p. 257.
^ Raghbendra Jha, Ibotombi S. Longjam: Structure of financial savings during Indian economic reforms in Empirical Economics (2006) 31:861–869, p.862.
^ Sunil Kumar, Rachita Gulati: Did efficiency of Indian public sector banks converge with banking reforms? in Int Rev Econ (2009) 56:47–84, p. 49,
^ Chronology of Events, Crisis and Reforms- 1991 to 2000 (RBI)
^ RBI History – Spanning 7 Decades of Public Service
^ Security Printing &Minting Corporation of India, About Us (SPMCIL)
^ Second Quarter Review of Monetary Policy for the Year 2009-10, Punkt 15., (RBI)
^ Macroeconomic and Monetary Developments - Second Quarter Review 2009-10, S.94, (RBI), (.pdf)
^ RBI: About us, Organisation and Functions
^ "History of Reserve Bank". http://www.rbi.org.in/Commonman/English/History/Scripts/anecdote3.aspx. Retrieved 2009-02-24.
^ Dipak Basu: Balance-of-Payments Policies and Structural Reforms: an Adaptive-Control Model for India in Journal of Economics, Volume 70 (1999), No. 3, pp. 261-280, S.275.
^ RBI, Frequently Asked Questions, Currency Matters (RBI)
^ Narenda Jadhav, Partha Ray, Dhritidyuti Bose, Indranil Sen Gupta: THE RESERVE BANK OF INDIÀ`S BALANCE SHEET: ANALYTICS AND DYNAMICS OF EVOLUTION, November 2004, S. 16.
^ Samarjit Das, Kaushik Bhattacharya: Price convergence across regions in India in Empirical Economics (2008) 34:299–313, S. 312.

^ Alpana Sivam, Sadasivam Karuppannan: Role of state and market in housing delivery for low-income groups in India in Journal of Housing and the Built Environment 17: 69–88, 2002, S.85.

[show]

v • d • e

Central banks

Global

Bank for International Settlements · Financial Stability Board · Basel Committee on Banking Supervision

[hide]

By continent

Africa	Central Bank of West African States · Bank of Central African States · Bank of Algeria · Central Bank of Angola · Bank of Botswana · Bank of the Republic of Burundi · Bank of Cape Verde · Central Bank of the Comoros · Central Bank of the Congo · Central Bank of Djibouti · Central Bank of Egypt · Bank of Eritrea · National Bank of Ethiopia · Central Bank of The Gambia · Bank of Ghana · Central Bank of the Republic of Guinea · Central Bank of Kenya · Central Bank of Lesotho · Central Bank of Liberia · Central Bank of Libya · Reserve Bank of Malawi · Bank of Mauritius · Bank Al-Maghrib (Morocco) · Bank of Namibia · Central Bank of Nigeria · South African Reserve Bank · Bank of Somaliland · Bank of Tanzania · Reserve Bank of Zimbabwe

Americas	Central Bank of Argentina · Central Bank of Barbados · Central Bank of Brazil · Bank of Canada · Central Bank of Chile · Eastern Caribbean Central Bank · Bank of Mexico · Bank of the Republic of Haiti · Central Bank of Honduras · Central Bank of Nicaragua · Bank of the Republic · Central Reserve Bank of Peru · Federal Reserve System (United States) · Central Bank of Venezuela · Central Bank of Trinidad and Tobago

Oceania	Reserve Bank of Australia · Reserve Bank of Fiji · Reserve Bank of New Zealand · Bank of Papua New Guinea · Central Bank of Samoa · Central Bank of Solomon Islands · National Reserve Bank of Tonga

Asia	Central Bank of Bahrain · Bangladesh Bank · Brunei Currency and Monetary Board · People's Bank of China · Reserve Bank of India · Central Bank of Iran · Central Bank of Iraq · Bank of Israel · Bank Indonesia · Bank of Japan · National Bank of Kazakhstan · National Bank of the Kyrgyz Republic · Bank of Korea · Central Bank of the Democratic People's Republic of Korea · Central Bank of Kuwait · Banque du Liban · Bank Negara Malaysia · Bank of Mongolia · Central Bank of Oman · State Bank of Pakistan · Central Bank of the Philippines · Qatar Central Bank · Monetary Authority of Singapore · Central Bank of Syria · Central Bank of the Republic of China (Taiwan) · Bank of Thailand · Central Bank of the United Arab Emirates · Central Bank of Uzbekistan · State Bank of Vietnam · Hong Kong Monetary Authority · Palestine Monetary Authority · Monetary Authority of Macao

Europe	European Central Bank (Eurozone) · National Bank of the Republic of Abkhazia · Bank of Albania · Central Bank of Armenia · Central Bank of Azerbaijan · National Bank of the Republic of Belarus · Central Bank of Bosnia and Herzegovina · Bulgarian National Bank · Croatian National Bank · Czech National Bank · Danmarks Nationalbank · Bank of England · Bank of Estonia · National Bank of Georgia · Hungarian National Bank · Central Bank of Iceland · Central Bank of Kosovo · National Bank of Latvia · Bank of Lithuania · National Bank of the Republic of Macedonia · National Bank of Moldova · Central Bank of Montenegro · Norges Bank · Polish National Bank · National Bank of Romania · Central Bank of Russia · National Bank of Serbia · Sveriges Riksbank · Swiss National Bank · Central Bank of the Republic of Turkey · National Bank of Ukraine

[show]

Policies and implementation

Policies	Expansionary monetary policy · Contractionary monetary policy · Capital requirement

Implementation	Open market operations · Capital control · Discount rate · Money creation · Interest rates · Sovereign wealth fund

[show]

Bretton Woods system

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List of central banks Names in italics indicate non-sovereign (dependent) territories, former countries, or partially recognised countries.

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The Reserve Bank of India (RBI, Hindi: भारतीय रिज़र्व बैंक) is the central banking system of India and controls the monetary policy of the ...
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RBI sees policy impacting in 6-12 mths‎ - 3 hours ago

Monetary policy action taken by the Reserve Bank of India should start to show its impact on inflation over the next 6 to 12 months, a central bank deputy ...

Moneycontrol.com - 138 related articles »

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RBI s discussion paper technically looks good NIPFP

Moneycontrol.com - ‎1 hour ago‎
The Reserve Bank of India (RBI) on Wednesday released its long awaited discussion paper on what basis it should issue new banking licences. ...

Is there risk in allowing big business houses into banking?

Moneycontrol.com - ‎1 hour ago‎
The Reserve Bank of India (RBI) has released its discussion paper on the parameters it will consider when issuing fresh banking licences. ...

RBI sees policy impacting in 6-12 mths

Moneycontrol.com - ‎3 hours ago‎
Monetary policy action taken by the Reserve Bank of India should start to show its impact on inflation over the next 6 to 12 months, a central bank deputy ...

Factory output eases in June; RBI action eyed

Moneycontrol.com - ‎3 hours ago‎
India's industrial output rose at its slowest pace in 13 months in June, but the Reserve Bank is still seen tightening monetary policy on inflationary ...

Policy action to show result in 6-12 months: RBI

Economic Times - ‎5 hours ago‎
MUMBAI: Monetary policy action taken by RBI should start to show its impact on inflation over the next 6 to 12 months, a central bank deputy governor has ...

RBI sets the ball rolling on new norms

Livemint - Anup Roy, Joel Rebello - ‎6 hours ago‎
The Reserve Bank of India (RBI) on Wednesday released a discussion paper on capital, ownership structure, foreign shareholding norms and the business model ...

New banking licence proposal: Experts decipher fineprint

Moneycontrol.com - ‎6 hours ago‎
The discussion paper was released by the Reserve Bank of India (RBI) on Wednesday on who should be allowed to start banks in India. ...

'Banking-correspondent is the only model to increase financial inclusion'

Economic Times - ‎12 hours ago‎
Usha Thorat , who recently took over the financial inclusion portfolio at the Reserve Bank of India, makes an emphatic case for the banking-correspondent ...

RBI proposals to issue new banking licences fire up NBFC stocks

Economic Times - ‎12 hours ago‎
MUMBAI: Shares of financial services firms rose in a weak market on Wednesday after the Reserve Bank of India (RBI), in a discussion paper, revealed plans ...

RBI may pick & choose cos for licence

Economic Times - ‎12 hours ago‎
MUMBAI: The Reserve Bank of India may use the wide range of eligibility criteria that it has set for corporates to pick and choose business houses that it ...
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Reserve Bank of India
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	Is there risk in allowing big business houses into banking? ‎1 hour ago‎ - Moneycontrol.com
	RBI's paper on bank licences a welcome change: E&Y ‎18 hours ago‎ - Moneycontrol.com
	RBI against securitisation for profit booking ‎Aug 10, 2010‎ - Economic Times

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Sensex closes flat, SBI soars on stellar earnings

NDTV.com - Varun Sinha - ‎26 minutes ago‎

The Indian markets did a spectacular turnaround to finish almost at Wednesday's levels despite global weakness. The markets were also boosted by SBI that ...

Sensex closes volatile day on a flat note

Sify - ‎39 minutes ago‎

A benchmark index for Indian equities ended a volatile day of trade on a dull note, even though banking heavyweight SBI top scored with a 7.16 percent gain. ...

Sensex ends flat; Sterlite, Wipro, ITC, down

Economic Times - ‎45 minutes ago‎

MUMBAI: Benchmarks ended choppy session on a flat note on Thrusday as weak global cues and disappointing IIP data were offset by State Bank of India's ...

Nifty hovers near 5400; SBI, Cairn, BPCL, PNB up

Economic Times - ‎1 hour ago‎

MUMBAI: Benchmarks were witnessing a choppy session with negative bias as European peers and disappointing IIP hurt sentiments. Meanwhile, the indices got ...

SBI shares surge 5% on robust Q1 earnings

Hindu Business Line - ‎1 hour ago‎

MUMBAI: Cheering its robust June quarter results, the shares of State Bank of India climbed 5 per cent, hitting a life-time high of Rs 2733.95 on BSE on ...

Sensex flat SBI ONGC HUL PNB Hindalco up

Moneycontrol.com - ‎1 hour ago‎

At 15.06 hrs IST, the Nifty was hovering around 5400 on weak global cues. It was a volatile session for the markets. IIP numbers for the month of June were ...

Sensex pares losses; SBI, ONGC, HUL, ICICI up

Economic Times - ‎2 hours ago‎

MUMBAI: Benchmarks pulled back in the green taking cues from the positive opening of European peers. The recovery was led by gains in banks, ...

SBI shares zoom on strong Q1 nos; hit all-time high on BSE

Economic Times - ‎2 hours ago‎

12 Aug 2010, 1424 hrs IST, PTI MUMBAI: Cheering its robust June quarter results, shares of State Bank of India today climbed 5 per cent, hitting a life-time ...

Sensex recovers as SBI zooms on earnings

NDTV.com - Varun Sinha - ‎2 hours ago‎

The markets have made a spectacular recovery tracking Asian indices that have pared losses and European indices that opened flat. ...

Nifty under pressure; Ambuja Cements, Wipro down

Economic Times - ‎2 hours ago‎

MUMBAI: Indian markets continued to witness profit booking on the back of weak global cues and disappointing Index of Industrial Production data for the ...

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Sensex ends flat; Sterlite, Wipro, ITC, down

Economic Times - ‎53 minutes ago‎

MUMBAI: Benchmarks ended choppy session on a flat note on Thrusday as weak global cues and disappointing IIP data were offset by State Bank of India's robust quarterly figures.

Markets stage a smart recovery; Sensex ends flat at 18073 Business Standard

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BAMCEF UNIFICATION CONFERENCE 7

Thursday, August 12, 2010

RBI sees policy impacting in 6-12 mths

Reserve Bank of India

Contents

[hide]

[edit] History

[edit] 1935 - 1950

[edit] 1950 - 1960

[edit] 1960 - 1969

[edit] 1969–1985

The branch was forced to establish two new offices in the country for every newly established office in a town.[9] The oil crises in 1973 resulted in increasing inflation, and the RBI restricted monetary policy to reduce the effects.[10]

[edit] 1985–1991

[edit] 1991–2000

[edit] since 2000

The national economy's growth rate came down to 5,8% in the last quarter of 2008 - 2009[20] and the central bank promotes the economic development.[21]

[edit] Structure

[edit] Central Board of Directors

The Central Board of Directors is the main committee of the central bank and has not more than 20 members. The government of the republic appoints the directors for a four year term.

Name

Position

Governor

Deputy Governor

Deputy Governor

Deputy Governor

Deputy Governor

Regional of the West

Regional of the East

Regional of the North

Regional of the South

Lawyer Supreme Court of India

Chairman Firstsource Solutions Limited

Chairman WIPRO Limited

Chairman Aditya Birla Group of Companies

Advisor

former Chairman Ambuja Cement Co.

Economist, Professor Madras Inst.

Chemist, Professor Mumbai University

Chairman Lakshmi Machine Works Limited

CEO Asahi India Glass Ltd.

Government representative

Government representative

[edit] Governors

The central bank had 22 governors since 04.01.1935. The regular term of office is a four years period, appointed by the national administration.

[edit] Supportive bodies

The Tarapore committee was setup by the Reserve Bank of India under the chairmanship of former RBI deputy governor S S Tarapore to "lay the road map" to capital account convertibility. The five-member committee recommended a three-year timeframe for complete convertibility by 1999-2000.

On 1 July 2006, in an attempt to enhance the quality of customer service and strengthen the grievance redressal mechanism, the Reserve Bank of India constituted a new department — Customer Service Department (CSD).

[edit] Offices and branches

The Bank has also two training colleges for its officers, viz. Reserve Bank Staff College at Chennai and College of Agricultural Banking at Pune. There are also four Zonal Training Centres at Belapur, Chennai, Kolkata and New Delhi.

[edit] Main Functions

Reserve Bank of India regional office, Delhi entrance with the Yakshini sculpture depicting "Prosperity through agriculture"[23].

The RBI Regional Office in Delhi.

The RBI Regional Office in Kolkata.

[edit] Monetary Authority

[edit] Manager of exchange control

The central bank manages to reach the goals of the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

[edit] Issuer of currency

[edit] Developmental role

The central bank has to perform a wide range of promotional functions to support national objectives and industries.[26] The RBI faces a lot of inter-sectoral and local inflation-related problems. Some of this problems are results of the dominant part of the public sector.[27]

[edit] Related functions

[edit] Further reading

[edit] External links

Wikimedia Commons has media related to: Reserve Bank of India

[edit] References

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Bank for International Settlements · Financial Stability Board · Basel Committee on Banking Supervision

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Asia

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[show]

Policies and implementation

Policies

Expansionary monetary policy · Contractionary monetary policy · Capital requirement