RBI governor does not want to move in haste for achieving financial inclusion.
The RBI working group's proposal to allow corporate houses to set up banks is a 'good-looking' step in a 'bad direction' and may lead to crony capitalism and eventual financial instability, former chief economist of World Bank Kaushik Basu said on Thursday. Basu further said that there is a good reason why all successful economies have a clear dividing line between industries and corporations on the one hand, and banks and lending organisations on the other.
IMF chief said the G20 leaders need to respond to the calls for creating jobs.
Jaitley slams Rajan for MSME banking crisis statement, says postmortem is easier than action
In 2013, India suffered its worst currency crisis in more than two decades but has regained the confidence of foreign investors in part after its current account deficit has narrowed sharply and its foreign exchange reserves hit a record high
Jaitley was reacting to a question by CNBC TV18 on Rajan's remarks last week.
India's consumer inflation should ease in the next two months, and will fall to 8 per cent by the end of the year, says RBI Governor Raghuram Rajan.
Congress leader Rahul Gandhi alleged on Friday that China was preparing for war and the Indian government is sleeping over it and trying to ignore the threat.
RBI unsure whether to cut rates or not in its next monetary policy.
RBI's previous monetary policy was announced on September 29.
Rajan said the government focussed more on fulfilling its political and social agenda rather than paying attention to the economic growth.
Experts applaud RBI governor RAghuram Rajan for his good work.
Rajan said an interest rate cut won't by itself lead to higher economic growth
Rajesh Vardhan, managing director, Vardhman Group, will chat on home loans on Wednesday, September 25, at 3 pm.
RBI to ensure loans rate fall
However, some experts, including RBI Governor Raghuram Rajan, have favoured doing away with curbs on gold imports because they lead to smuggling.
RBI Governor Raghuram Rajan expressed anguish at the banks' reluctance to pass on benefits of the earlier rate cuts.
However, some analysts say RBI Governor Raghuram Rajan may delay the rate cuts amid mounting concerns over the government's fiscal health.
The policy will be presented in the backdrop of rising inflation.
The inflation target of the RBI would be reviewed once every five years.
"We did not abuse RBI governors," says Chidambaram.
India's captains of industry said they were disappointed at the exit of Reserve Bank of India Governor Raghuram Rajan.
Most central banks across the world have around 5-7 years of tenure for the governor and deputy governors.
Given the stability of the rupee over the last 10 months, many companies have been tempted not to hedge their foreign currency risk.
RBI Governor Raghuram Rajan on Tuesday said the government will decide on extension of his tenure.
RBI governor advises students to not take advantage of economic freedom
Centre to take a call only in August, just a month before his three-year term ends.
In response the BRICS - Brazil, Russia, India, China and South Africa - have taken steps to strengthen cooperation such as setting up a joint development bank
'The concern that the bad bank may create a moral hazard for the system is extremely valid.'
Few proposals included in the Finance Bill would not help ease liquidity concerns in the economy, say RBI officials.
It has been decided to reduce home loan rate by 20 basis points.
The Indian economy has "some bright spots and a number of very dark stains" and the government should target its spending "carefully" so that there are no huge deficits, noted economist and former RBI Governor Raghuram Rajan said on Sunday. Known for his frank views, Rajan also said the government needs to do more to prevent a K-shaped recovery of the economy hit by the coronavirus pandemic. Generally, a K-shaped recovery will reflect a situation where technology and large capital firms recover at a far faster rate than small businesses and industries that have been significantly impacted by the pandemic.
If we persist in talk and little action, I think we will slip. I fear the consequences of sustained slow growth. We need strong, sustained, clever action today, Rajan said.
Monetary transmission has been an issue for the Indian banking sector.
Head of state-run Indian Bank T M Bhasin had called for a CRR cut.
Governor Raghuram Rajan lowered the benchmark repurchase rate to 7.75 per cent from 8 per cent, the first reduction since May 2013.
To a question related to RBI's policy rate, Rajan said no amount of interest rate cut is going to help if credit growth is weak.
"Finance Ministry and RBI keep talking all the time," Rajan said.
India is gearing up to introduce a six-member monetary policy committee that would vote on interest rates.
"The world is in general equilibrium. A small change in one parameter effects changes in all variables. So Krishna advised: Sukh Dukhe...," Subramanian Swamy tweeted.
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