'Rather than experimenting with CBDCs, we must come up with a very simple and straight design.' 'Dematerialise your currency/cash and with that dematerialised rupee allow all the transactions digitally.'
Reserve Bank of India (RBI) deputy governor M Rajeshwar Rao on Wednesday defended the central bank's decision of not allowing industrial houses to float banks, and said more deliberations are needed before RBI changes its stance on this issue agreed back in 2001. An internal working group (IWG) of the RBI had recommended allowing industrial groups into banking, but late last month the RBI said it kept on hold the two recommendations of allowing industrial houses and large non-banks to float banks. However, RBI had accepted 21 of the 33 recommendations of the group that submitted its report a year ago.
Although such alerts are not compulsory for the banks, this may become the norm now if payments are missed even for a day.
Theoretically, the currency with the public should expand in sync with the nominal income, which again moves in relation to the nominal growth rate of the economy. But the correlation breaks easily when other factors come into play, says Anup Roy.
The future of cryptocurrencies in India appears uncertain but that has not deterred young Indians from embracing the so-called 'fourth industrial revolution' world, where interconnectivity and smart automation, much of it relying on blockchain technology, drive human civilisation. Reserve Bank of India (RBI) Governor Shaktikanta Das has repeatedly warned of macroeconomic instability and even "serious consequences" if cryptocurrencies turn mainstream. The country's monetary authority wants a China-like total ban on crypto, not even allowing these currencies to be treated as investments. Though Parliament's website had listed the Cryptocurrency and Regulation of Official Digital Currency Bill as one seeking a total ban of cryptocurrencies in the country, it was not presented in the Winter Session. India now has the highest number of cryptocurrency investors in the world.
But what do banks gain by opening their apps for all? The answer -- rival bank's customers under their fold.
Business activity contracted in Q2 FY20, the first contraction since 2013-14 and the second since the 2008 global financial crisis, report, Abhishek Waghmare and Anup Roy.
This comes against the backdrop of instances of indicative ratings given by agencies, for which there are no written agreements.
India imports 1.2 billion barrels of oil, and oil prices are falling, falling...
'But we are much better than what we all had expected and planned, and what all the prophets of doom had predicted.'
'I hope the trend is sustainable and that economic activity accelerates going forward.'
If Reliance has to pay about one percentage point more for short-term money, the bond market could be out of bounds for many lower-rated firms after some time.
For willful defaulters, change in ownership accompanied by punitive action against the defaulting management is the way to go.
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.
'We are very watchful about inflation and growth. But the main challenge is economic revival and growth.'
'India's sizeable foreign exchange reserves should serve as a buffer.'
Economists praise Das for his pragmatism and willingness to face challenges head on. And in doing so with the finesse of an able administrator.
A bunch of CEOs in their mid-30s and early 40s are trying to rectify the scenario where shady lending applications trap hapless borrowers with astronomically high interest rates and even bodily harm if the money was repaid. Anup Roy reports.
For development finance institution to succeed now, the government must stand like a rock behind it and be patient.
'A strong foreign exchange reserve is the best safety net against global spillovers.'
With banks staying out of the bond market, and foreign investors exhausting their investment limit, the question is: Who will buy the Rs 4.6 trillion bonds that will be issued from April.
The general nervousness because of the IL&FS default will prevail in the system for now.
'When the rupee was at 65 a dollar, we wanted to go to Thailand for a holiday.' 'Now at 72, we may find Goa much more attractive.' 'That's how correction happens.' 'If you don't let that correction happen, then it's a pressure cooker that bursts one day.'
'There is merit in keeping the central bank's balance sheet strong if the government's fiscal balance sheet is weak.'
Will the Financial Resolution and Deposit Insurance Bill endanger our bank deposits?
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.
'When there is unlocking, there is demand revival.' 'This is going to be the main growth engine in this kind of an economic scenario.'
'In my 20 years, I have never seen such high rates.'
Bankers have decided to fight back against 'arbitrary arrests' and 'harassment' by probe agencies.
'For the RBI, for a central bank, reputational risk is the worst risk.' 'Credibility is the worst risk,'
While RBI may cut rates by 25 basis points in the February policy review, global monetary policies hold the key to much of the financial assets flow in 2017
2018 has been a disappointing and highly volatile year for equity investors.
'Mostly, the relief, if needed, would be for housing loans where a person has lost a job and is unable to pay his EMI or there has been a temporary salary cut.'
Banks are clear that lending rates are not going to fall further, say Hamsini Karthik and Anup Roy.
Analysts, however, said the timing of the infusion was good.
As households age, they pile up debt, a peculiarity unique to Indians, a Financial Stability and Development Council report has found. Here are the key takeaways.
Indian bankers are fearful that going out of their way to save Jet could lead to subsequent harassment from investigative agencies.
'Indian non-bank lenders stand exposed to a deteriorating credit quality environment.' 'Such a deterioration could put at risk the value of NCDs purchased by the mutual funds and expose investors in bond and liquid funds to a risk of capital loss.'
There's a long way to go before human beings are replaced by machines -- in banks at least.
NBFCs are mainly dependent on funding their operation from their own cash flows.
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