If RBI has to replace the entire stock of Rs 1,000 and Rs 500 notes with Rs 100 ones, the cost would be more than Rs 10,000 crore.
Even if RBI partially replaces the stock of the high value notes, RBI will have to incur thousands of crores of rupees in cost, say economists.
Arundhati Bhattacharya, chairman of country's largest lender State Bank of India said demonetisation of high value notes won't be a problem as the bank has done it before.
Analysts say the sell-off in risky assets will be temporary and could be a buying opportunity for long-term investors.
Lower inflation, FCNR(B) outflows likely to influence central bank decision
Going by the real effective exchange rate, the rupee is overvalued
There's surplus liquidity and RBI, with plentiful forex reserves, is ready to pump whatever extra is needed
Rajan, as expected, furthered his predecessors' agenda and continued with the same resolution to make India's financial system safer, and direct the economy towards further liberalisation
Raghuram Rajan said the head of the central bank should have a fixed tenure of more than three years as the current term was too short.
Between Friday's and Monday's close: Yields on 10-year bonds up 6 basis points, rupee slides 13 paise against dollar, Sensex ends flat
The RBI governor-designate may be economical with spoken words, but is known for his sharp and critical writings
The customer will be liable in a limited manner if the negligence is on the part of the customer, such as where she has shared payment credentials
.jpg)
Banking as we know it will stand on its head in the next 10 years.
The increase was led almost entirely by foreign currency assets
Price rise in services sector after the goods and services tax (GST) gets implemented and the pay hike of central government employees will make inflation control a tough job for the central bank
RBI is expected to discuss about the impact of GST in its monetary policy.
A senior official with Muthoot Finance said the group would also want to apply for a universal licence.
Interview with former Reserve Bank of India governor by Duvvuri Subbarao.
Analysts, however, said the timing of the infusion was good.
A strong currency helps in fighting some of the import-led inflation.
© 2025 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances