Soon the Reserve Bank of India (RBI) will be issuing Rs. 50 and Rs 100 denomination banknotes having numbering panels in Mahatam Gandhi Series-2005 bearing the signature of Dr. D Subbarao, governor.
The official pointed out only the inset letter has been changed and the rest of the design of these notes to be issued is similar in all respects to the banknotes in Mahatma Gandhi series 2005, along with additional/new security features issued on August 24, 2005.
It stated all banknotes in the denomination of Rs.50 in circulation, issued by the Reserve Bank will continue to be legal tender.
Thursday, August 13, 2009
Former RBI chief says: "Interest rates will harden by the end of year”
C Rangarajan former Reserve Bank Governor stated by the end of the year the interest rates are likely to increase and said the country economy will witness a growth of 6.5 to 6.7 per cent in 2009-10.
He stated, "Interest rates will harden by the end of year," and pointed out that in the second half of current fiscal Indian economy is definitely going to show strong improvement which in turn will lead to increase in demand for credit by industry.
Rangarajan, was giving a lecture on `International financial crisis and its impact on India' for MPs, in his speech in regard to the borrowing program of the centre, said, "as long as the private demand is not picking up, the government will be able to borrow at the same rate."
During the current fiscal the government had planned to borrow Rs 4 lakh crore from the market.
Currently Rangarajan is Rajya Sabha member. He said the effect of massive borrowing program of the government will be visible on the corporate world in the next fiscal and can lead to "crowding out" of capital.
Regarding the growth prospects for the current fiscal he said, economy is likely to grow by 6.5 to 6.7 per cent. He said during 2010-11 there are chances of economy to register a growth of up to 7-8 per cent and added "we would not be able to go back to 9 per cent GDP growth rate, unless the world economy recovers."
He stated, "Interest rates will harden by the end of year," and pointed out that in the second half of current fiscal Indian economy is definitely going to show strong improvement which in turn will lead to increase in demand for credit by industry.
Rangarajan, was giving a lecture on `International financial crisis and its impact on India' for MPs, in his speech in regard to the borrowing program of the centre, said, "as long as the private demand is not picking up, the government will be able to borrow at the same rate."
During the current fiscal the government had planned to borrow Rs 4 lakh crore from the market.
Currently Rangarajan is Rajya Sabha member. He said the effect of massive borrowing program of the government will be visible on the corporate world in the next fiscal and can lead to "crowding out" of capital.
Regarding the growth prospects for the current fiscal he said, economy is likely to grow by 6.5 to 6.7 per cent. He said during 2010-11 there are chances of economy to register a growth of up to 7-8 per cent and added "we would not be able to go back to 9 per cent GDP growth rate, unless the world economy recovers."
Thursday, August 6, 2009
RBI educated student how to identify counterfeit currency
The Reserve Bank of India (RBI) organizes financial literacy programs to educate people about banking services and upgrade their knowledge related to banking. Recently the RBI organized such program to upgrade the knowledge of students of Gulmohar Public school in which it educated the children that how they can identify counterfeit currency and about various functions of RBI as the central bank of the country.
B P S Gautam, assistant manger explained about the innumerable functions performed by RBI as country’s central bank and also informed about the Young Scholar Award and summer placement scheme being run exclusively for the students by the RBI.
After this Pyarelal, deputy treasurer, gave information about the security features of genuine currency notes to the students and teachers to make wiser in matters of currency transactions in future. The program was attended by more than 200 students and teachers.
At the end of the program the free publicity material like comic books Money Kumar, Raju & Money tree, Raju & skyladder along with pamphlets on security features of currency notes for their study and reference was given to the students.
B P S Gautam, assistant manger explained about the innumerable functions performed by RBI as country’s central bank and also informed about the Young Scholar Award and summer placement scheme being run exclusively for the students by the RBI.
After this Pyarelal, deputy treasurer, gave information about the security features of genuine currency notes to the students and teachers to make wiser in matters of currency transactions in future. The program was attended by more than 200 students and teachers.
At the end of the program the free publicity material like comic books Money Kumar, Raju & Money tree, Raju & skyladder along with pamphlets on security features of currency notes for their study and reference was given to the students.
Banks surprised over RBI decision of selectively easing provision norms
The banking industry officials are astonished on the decision taken by the Reserve Bank of India of relaxation of its floating provisioning norm that too selectively
Chairman of a large state-owned bank pointed out, "If RBI tightened the norms once, then how can they immediately relax it, that too selectively." For banks floating provisions are like profits which are kept aside for unseen emergency.
Earlier in March the RBI had said banks can not deduct floating provisions from gross NPAs. Instead the banks are required to add up to the floating provisions made to their Tier-II capital.
This norm was applicable for the quarter ended March, but on the banks’ pleas RBI postponed the decision to quarter ended June.
Following the new norm issued by the RBI most banks classified the floating provisions to Tier-II capital, but some banks asked for flexibility from the RBI. Around five banks requested the central bank to permit them to deduct the floating provisions made from their gross NPAs. Thus RBI permitted Punjab National Bank, Bank of Baroda, and Central Bank of India the flexibility but not gave the permission to the Union Bank of India and Indian Bank.
During the quarterly monetary policy review bankers discussed this matter with the governor D Subbarao. Banker told RBI has given them assurance that regarding this a comprehensive guideline will be issued.
Banks who following the new norms deducted floating provisions from their gross NPA witnessed growth in their net NPAs and fall in provision coverage ratio in the June quarter. On Wednesday Punjab National Bank had announced its results it took advantage of the special consideration by the RBI.
The bank has deducted Rs 1,080 crore floating provision from gross NPA to account net NPAs of 0.19% as on June 30 as against 0.63% of the same period in the previous year. On the other hand Union Bank of India who was not allowed netting off by the RBI had to deem the floating provisions of Rs 530 crore as part of its Tier-II capital which resulted in the rise of bank’s net NPA to 0.72% in the June quarter from 0.15% a year ago.
Chairman of a large state-owned bank pointed out, "If RBI tightened the norms once, then how can they immediately relax it, that too selectively." For banks floating provisions are like profits which are kept aside for unseen emergency.
Earlier in March the RBI had said banks can not deduct floating provisions from gross NPAs. Instead the banks are required to add up to the floating provisions made to their Tier-II capital.
This norm was applicable for the quarter ended March, but on the banks’ pleas RBI postponed the decision to quarter ended June.
Following the new norm issued by the RBI most banks classified the floating provisions to Tier-II capital, but some banks asked for flexibility from the RBI. Around five banks requested the central bank to permit them to deduct the floating provisions made from their gross NPAs. Thus RBI permitted Punjab National Bank, Bank of Baroda, and Central Bank of India the flexibility but not gave the permission to the Union Bank of India and Indian Bank.
During the quarterly monetary policy review bankers discussed this matter with the governor D Subbarao. Banker told RBI has given them assurance that regarding this a comprehensive guideline will be issued.
Banks who following the new norms deducted floating provisions from their gross NPA witnessed growth in their net NPAs and fall in provision coverage ratio in the June quarter. On Wednesday Punjab National Bank had announced its results it took advantage of the special consideration by the RBI.
The bank has deducted Rs 1,080 crore floating provision from gross NPA to account net NPAs of 0.19% as on June 30 as against 0.63% of the same period in the previous year. On the other hand Union Bank of India who was not allowed netting off by the RBI had to deem the floating provisions of Rs 530 crore as part of its Tier-II capital which resulted in the rise of bank’s net NPA to 0.72% in the June quarter from 0.15% a year ago.
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