These sectors are seeing a marked slowdown, as consumers are postponing purchase decisions amid uncertainty and severe cash crunch, report Ram Prasad Sahu, Sheetal Agarwal & Ujjval Jauhari from Mumbai.
RBI said the outlook for economic growth for 2016-17 has turned uncertain after the unexpected loss of momentum by 50 basis points in Q2 and the effects of the withdrawal of banned notes
Unless RBI temporarily relaxes the norms on recognising of bad loans, the pressure on this front could rise in the December quarter.
The theory that all banned notes will come back into the system may not be true. Anup Roy finds out.
The huge pressure on the currency market largely went unnoticed because of the demonetisation exercise.
Jio's100-million subscribers target appears an uphill task in the next one month, believe analysts. Also, the existing subscribers are already witnessing slowdown in data speed thanks to the high traffic.
RBI on Monday conducted an unprecedented level of liquidity infusion to the tune of Rs 3.3 lakh crore, in which banks bid for as much as Rs 4.5 lakh crore. The central bank said it would conduct a liquidity infusion auction of Rs 1 lakh crore on Tuesday as well, to help banks tide over the liquidity crisis.
People depositing money with banks in legal tender are allowed to withdraw the equivalent amount without any restriction.
When banks deposit their money with RBI, the central bank offers government securities of equal value. But now, it could be running out of enough securities to offer banks against the overnight deposits.
After demonetisation, sharp fall in PE valuation offers an attractive entry point into some quality names and these 3 FMCG companies are expected to see the fastest growth in earnings with at least 15 per cent upside potential
'There has to be an 18-month transition.' 'But if the government had some prior knowledge that the high value notes were being used for an imminent terrorist activity in the country, then we have to accept the step.'
FY17 GDP growth faces cash crunch heat
With about 2,000 qualified engineers to service ATMs across the country, it is an uphill task to modify 220,000 machines.
The first tranche was raised a few weeks ago and the company was looking to raise more if needed.
Will demonetisation lead to a rate cut, leading to higher quantum of lending?
A government can't just take away public money, and the RBI can't extinguish its liability. 'The RBI has to honour the value any time a person with legal and taxed money lays claim on the value.'
The move to ban Rs 500 and 1000 notes may not curb the root cause of black money.
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.
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