RBI sets up supervisory colleges for SBI, ICICI

The RBI has for the first time established the ‘Supervisory College’ for cross border supervision of State Bank of India (SBI) and ICICI Bank. What is the role of “Supervisory College”? The main role of the supervisory college, comprising local and international regulators, is to keep lenders aware of the latest global regulations and to Read More…

No curb in Internet freedom: UN telecom head Hamadoun Toure

UN telecom body (International Telecommunication  Union, ITU) head Hamadoun Toure held that internet freedom will not be regulated or curbed. He clarified this in the recently held World Conference on International Telecommunications (WCIT-12) in Dubai. The objective behind WCIT-12 was to review telecom regulations reached in 1988.

India-Japan sign currency swap accord to enhance bilateral trade

Central banks of India and Japan (The Reserve Bank of India (RBI) and the Bank of Japan (BoJ) respectively) signed a 3-year Bilateral Swap Arrangement (BSA). How agreement will help? Help in addressing short-term liquidity problems Supplementing the existing international financial arrangements Strengthening bilateral trade b/w Japan and India Aid in ensuring financial market stability Read More…

RBI’s inflation comfort zone need not be changed: Rangarajan

Prime Minister’s Economic Advisory Council (PMEAC) C. Rangarajan pined not to alter the RBI’s inflation comfort level from 4-5%. In 1998, Rangarajan had considered inflation rate at 6% to 7% as “acceptable level”. At that time, inflation level was as high as 10% to 11%. High inflation caused problems on the exchange rate side, and Read More…

Government to pour in Rs 4,000-cr capital into SBI

In order to boost the strength of country’s largest bank, SBI, government is expected to infuse Rs 4,000 in the bank. This will enhance bank’s Capital Adequacy Ratio (CAR) to over 13%. What is CAR? CAR is a key indicator of a bank’s financial strength expressed as a ratio of capital to risk-weighted assets. What Read More…