All stories by Anup Roy
Govt to discontinue 7.75% taxable savings bonds schemeRediff.com1 days ago
The bonds were available for seven years. Since these were not traded in the secondary market, redemption took place at maturity.
Borrowing limit raised, but states remain cautiousRediff.com19 May 2020
Going by the strict criteria set, only Maharashtra, Tamil Nadu, Gujarat, Karnataka, Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, and Haryana qualify for such extra borrowing, as of now.
COVID-19 hangs over the future like a spectre: RBIRediff.com10 Apr 2020
While efforts are being mounted on a war footing to arrest its spread, COVID-19 will impact economic activity in India directly through domestic lockdown. The second-round effects, it said, would operate through a severe slowdown in global trade and growth.
Rs 1 trillion relief for corporate bonds, courtesy RBIRediff.com28 Mar 2020
The RBI on Friday said it will give banks Rs 1 trillion through targeted long-term repo operations (TLTROs), of up to three-year maturity, to deploy in "investment-grade corporate bonds, commercial paper, and non-convertible debentures over and above the outstanding level of their investments in these bonds as of March 27, 2020."
Bond market freezes amid coronavirus scareRediff.com25 Mar 2020
The volume in the anonymous trading platform, NDS-OM, was Rs 7,210 crore - less than half the normal volume, but not as bad as the start of the day indicated.
RBI crack team in secret location keeps financial system goingRediff.com21 Mar 2020
The idea is to keep the RBI's information technology (IT) infrastructure in top shape to run the payments and settlement system uninterrupted 24x7, and run the full gamut of RBI functions from the secured data centres, as nearly 14,000 RBI staffers, except the senior-most management, work from home.
Why RBI paused on rate cutsRediff.com21 Feb 2020
Minutes of the MPC meeting show Das felt economy needs more monetary stimulus as inflation outlook remains uncertain.
RBI's Shaktikanta Das is Asia Pacific central banker of the yearRediff.com4 Feb 2020
Nominating Das, the Banker magazine, which announced the award, said India's banks have faced a series of challenges, from non-performing loans to issues around fraud. Faced with these challenges, Shaktikanta Das has taken steps to bring banking in India up to standard via a restrained approach to governance.
In a first, RBI releases minutes of its October central board meetingRediff.com21 Jan 2020
Such minutes will be available within two weeks from the date of its confirmation in the next meeting of the central board and on being signed by the chairman in the same meeting, the RBI said in a statement on its website.
Monetary policy specialist Patra is new RBI dy guvRediff.com15 Jan 2020
Patra, as executive director of the central bank, was the principal advisor to the Monetary Policy Department since July 2012.
RBI concerned about favourable ratings shoppingRediff.com12 Jan 2020
This comes against the backdrop of instances of indicative ratings given by agencies, for which there are no written agreements.
Despite high NPAs, Indian banks have become more resilient: RBIRediff.com28 Dec 2019
Thanks to the recapitalisation by the government and measures taken by the central bank, collapse of any large housing finance company won't pose as big a risk as it had six months ago.
Soon, RTGS facility may be available 24X7Rediff.com18 Dec 2019
RTGS is used to transfer large sums, the minimum amount being Rs 2 lakh. This mode is used primarily to facilitate trade and market transactions. The primary beneficiary would be the capital markets.
Why MPC members are a worried lot todayRediff.com21 Oct 2019
'Overall, domestic demand has moderated significantly. 'The weakening of private consumption, which for long has been the bedrock of aggregate demand, in particular, is a matter of concern,' RBI Governor Shaktikanta Das said in the MPC meetings, in October.
RBI seeks tougher norms for ecommerce payment getawaysRediff.com25 Sep 2019
Payment aggregators should have a minimum net worth of Rs 100 crore and if they don't manage to arrange that money within one year of putting out final guidelines, they should stop doing their business, says central bank's draft paper.
Why banks may find it difficult to pass on rate cutsRediff.com12 Sep 2019
The rise in bond yields would make it difficult for banks to pass on rate cuts as except for retail loans, most of their legacy portfolio are linked to marginal cost based lending rate, which takes into consideration bond yields.
RBI worried about dwindling bond supplyRediff.com6 Sep 2019
Non-banking financial companies, that used to comprise at least 70 per cent of the issuance in the corporate bond market, are witnessing a credit freeze as investors shun bond issued by lower-rated firms.
RBI may drop dividend next yearRediff.com5 Sep 2019
The Malegam committee on the RBI's capital adequacy had suggested that the RBI must move away from its methodology to calculate the foreign exchange gains to a weighted average cost-based valuation method. Central bank may done away with provisioning requirements, to enable higher transfer of surplus in the 2017-18 fiscal, analysts say.
RBI mandates banks to link fresh retail loans to external benchmarkRediff.com5 Sep 2019
All public sector banks have moved to such a regime voluntarily, while private banks are yet to. The state-run banks have introduced repo-linked products for floating-rate home and auto loans, but the RBI said loans to micro, small and medium enterprises (MSMEs) should also be linked to an external benchmark.
Jan-Dhan Yojana: Most customers have no clue what to do with itRediff.com26 Aug 2019
The Jan-Dhan accounts are zero balance accounts, comes with a life cover of Rs 30,000 per person, and an accidental cover of Rs 100,000. An active user of the account can also get overdraft facility of Rs 5,000 from banks.
Experts pitch for 25 to 50bps rate cut by RBI on Aug 7Rediff.com4 Aug 2019
By no means do economists see the Reserve Bank of India stop at just a 25-bp cut. Some of the economists such as Soumyakanti Ghosh of State Bank of India are of the firm view that rates have room to fall by a total of 75 bps in the current financial year, starting with 25 bps in the August 7 policy.
Domestic banks can sell NPAs abroad: What does this RBI move mean?Rediff.com31 Jul 2019
Apart from easing the NPA pressure on domestic banks, the RBI's move can allow companies to raise cheap, long-term loans easily now.
Voda's payments bank becomes first to shut shopRediff.com22 Jul 2019
Vodafone Idea, the promoter of Aditya Bira Idea Payments Bank, said in a notification to the exchanges late on Friday that the board of the bank approved winding up the business, subject to approval from the Reserve Bank of India.
Budget 2019: In a first, India to issue sovereign bonds in global marketRediff.com6 Jul 2019
The government planned to borrow 10-15 per cent of the total borrowing offshore. That works out to at least Rs 71,000 crore, or about $10.4 billion at Friday's exchange rate.
Any idea where interest rates are headed?Rediff.com4 Jul 2019
While the bond market is relatively conservative about their interest rate expectations, the currency market seems to be projecting that interest rates should be much sharper
Viral Acharya wants better disclosures by corporatesRediff.com2 Jul 2019
A lack of adequate disclosures raises the financing costs of corporate firms, especially sub-investment grade ones, and keeps the capital markets small, believes RBI deputy governor Viral Acharya.
Current account deficit dips in Q4 to 0.7% of GDPRediff.com29 Jun 2019
In absolute terms, the CAD stood at $4.6 billion in the current fourth quarter, compared with $13 billion in the year-ago quarter and $17.7 billion in the third quarter of fiscal year 2018-19.
Bond yields rally in May on rate cut hopesRediff.com30 May 2019
The bond market expects at least 25 basis points cut in the June 6 policy.
'There's real interest in India right now'Rediff.com27 May 2019
People are interested in the strength of India's economy, the country's stability, and the opportunities, says Stuart Tait, regional head of commercial banking, Asia-Pacific at HSBC.
RBI asks NBFCs to boost high quality liquid assetsRediff.com25 May 2019
An NBFC must actively manage its collateral positions, differentiating between encumbered and unencumbered assets, and monitor such assets so that they can be mobilised in a timely manner, central bank says in circular.
Post elections, RBI to update RTI disclosure normsRediff.com9 May 2019
The Supreme Court had observed that issues of national economic interest; disclosure of information regarding currency or exchange rates/interest rates/ taxes; regulation or supervision of banking, insurance and other financial institutions; proposals for expenditure or borrowing, and foreign investments, could all, in some cases, harm the national economy, especially if released prematurely.
RBI paints a bleak picture of India's economyRediff.com19 Apr 2019
RBI governor Das flags growth slowdown, deputy raises alarm on inflation
RBI guv draws new line in sand, seeks flexible rate cutsRediff.com14 Apr 2019
Shaktikanta Das said in Washington, DC, that there was nothing sacrosanct about the 25 bps rate cut and that monetary policy could be well served by calibrating the size of the policy rate to the dynamics of the situation, and the size of the change itself could convey the stance of policy.
RBI to go for $5-bn dollar-rupee swap auction on April 23Rediff.com2 Apr 2019
The minimum size of each bid would be $10 million and in multiples of $1 million thereafter.
All eyes on RBI as rate cut looms largeRediff.com1 Apr 2019
According to Soumya Kanti Ghosh, chief economic advisor of the State Bank of India group, a 50 bps rate cut is a possibility, but 25 bps is more likely.
Dollar spike and its impactRediff.com1 Apr 2019
'In my 20 years, I have never seen such high rates.'
How RBI plans to make CEOs accountable for their bank's performanceRediff.com5 Mar 2019
RBI proposed that at least half of the compensation of a CEO should be variable. It also said that stock options should be part of the variable pay, against the extant practice of keeping it beyond and above the scope of the official compensation package.
Will there be another rate cut in April?Rediff.com5 Mar 2019
Chances of a rate cut in April improve if core inflation continues to ease, growth falling below the projected 7.2% for FY19 and if the global trade slowdown exacerbates.
As govt borrowing balloons, focus turns to bond marketRediff.com11 Feb 2019
The continued rise in interest is a pressure on fiscal, but it is not an easy way out unless the government cuts back on populist measures and sticks to fiscal prudence as laid out in the FRBM, which the government missed for the second consecutive year.
Former governor slams govt for meddling in RBI affairsRediff.com9 Feb 2019
'There is merit in keeping the central bank's balance sheet strong if the government's fiscal balance sheet is weak.'