RBI to increase liquidity for housing sectors

Financial crises had no exception to real estate. Global meltdown melted the housing sector also. Apex bank of India has decided to uplift this sector which is adversely affected. Reserve bank of India has announced that it has planned to give more liquidity to Housing Finance Companies (HFC) which took a big blow.

RBI has planned to provide a refinance facility up to 4000 crores with which these HFC can come out of its recession which was caused due to global meltdown. This amount will be available for a period of 90 days by the time the banks can draw and repay says the central bank.

This refinance facility will be available up to 31st march 2010. Utilization of the facility will be governed by the policy approved by NHB (national housing bank). This decision was taken on Thursday on a board meeting held on kolkata. This meeting also discussed the various steps taken since mid September 2008 to preserve financial stability.

The meeting also reviewed the various causes of global meltdown. It also had a look over the steps taken by various economies to stop this melt down. RBI has also planned to fund the Indian export companies through EXIM bank.

Amazing information is that inflation has come down to 8% from its old position of 11.25% in last 8 months. This growth shows some signs of improvement in Indian economy.

RBI has taken several steps to control inflation unfortunately nothing was successful as it was expected to be. At least this step must give some improvement so that economy comes under control and we stop thinking about lay off.

1:55 PM | 0 comments | Read More

RBI relaxes...

RESERVE BANK OF INDIA FINDS ITS NEW WAY TO IMPROVE BANKING IN INDIA

Reserve Bank of India the controller of the banks in India is now thinking to relax its restriction on the other commercial banks. This seems to be a good and healthy sign of the development of banking sector in India and hope to get more foreign exchange investments in banking sector.

Banks in India(including foreign banks)need not wait for Apex bank of the nation to approve its new branch opening nor wait for its license to open a new ATM.This is the on going discussion in the minds of central bank of India.



A larger part of the finance department is with the view that both Indian banks and foreign banks must be treated equally. so that its easy the for sub continent to meet its unmet ends in the field of banking.


We should give equal rights to foreign banks and instead of waiting for other nations to do the same.so that we easy attract more investors so that purpose of banking to attract investments and to lend loans happens very easily.

Same time, I hope RBI will vest its power to control the commercial banks so that it can easily control the banks if RBI finds commercial banks to be out of their way. Most attractive feature of this is it can easily liquidate money so that it will help RBI to handle the financial crunch.

RBI circle says that liberalization of banks is has been suggested by various panels including the very resent RAGHURAM RANJAN panel. RBI also speaks that, this is not a way to address the present financial crunch.

Another information form the side RBI is that, this is a way to have healthy growth and good competition. RBI can have the right to impose restriction for some reasons and this must be an exception and not a norm.

This relaxations may find an improvement in banking sector. Like those banks which have a lot of branches in south can concentrate its improvement the other part of the nation.

A notable point is that this relaxations may not have much impact now because most of the banks now are facing a major financial problem. This will have a great use after the time of recession, it will also prevent banks form falling into deep recession, as we saw that those banks which have a lot of branches didn't fall in the trouble of recession as compared to those branches which had less number of branches.

This is one way to have a good banking facility in rural areas. This relaxation has paved many ways of development and seems to have a good sign in banking sector. Might be its one good step taking by the central bank improve banking and also to have investments and to make the basic purpose banking easy. I feel this step will take banking facility as well as banking sector to have a good growth.

12:22 PM | 0 comments | Read More

A Global Economic MELTDOWN

A global economic meltdown-IT's biggest problem

A global economic meltdown has taken its way in the sectors of Information Technology and Banking. With the Pink slip being given to all the employees the IT is in great trouble. With the great fall in IT all the it has a cascading effect in all sectors.

With this rumors of Pink slip should an employee get out and find a new job are wait till he gets a layoff? This is the biggest doubt in the minds of employees in IT sector. Every one is now listening to the stories of layoff and forced resignation

One IT company has sacked 1000 of its employees during its annual appraisal.some one say more than 400 jobs have been lost in the past two months.A fine morning if am employee enters his office he is not sure completing his working hours.Two options which the company gives now a days is get out are we will send you out.

Even some of the employees are going early to the office to show as if they are working hard for the company so that he can prevent his job.Its more wise to marry some one in another profession than marrying a techie.Money which earned may be there but the jobs they feel.Every small time they get, they talk about lay off are forced resignation.

Its no more a cakewalk for the students of IT.The lucky once who get into the best institutions in the country dose not seam to have a big problems, but those who are in second are third rated institutions are now a days in a hectic trouble. "The companies are still coming for campus interviews", is just to maintain their brand image and nothing else. The number of candidates being selected has gone down.

Banking sector which were giving fun trips has stopped their credits.Even the companies have stopped their foreign trips are holding them back." Those who were spending Rs.200,000 for holiday is now spending not even Rs.50,000" says shrimathy of the World Travel Club.

Most of the IT employees are a part of equal monthly installments. The problem here is weather they will be in a position to pay their monthly installments if they wont what will be their condition??? Those who were spending a lot,have cut down their expense to a greater level.

Since the global economic meltdown has started, both IT and banking is suffering a lot. With this level of recession in economy,will take much time to recover as it already existed.The worse part of it, is for the students who had taken the course of computer science in second and third rated institutions and universities.Being knowledgeable person does not fetch any job,because of
the cascading effect of "GLOBAL ECONOMIC MELTDOWN..."

12:13 PM | 0 comments | Read More