RBI Governor Raghuram Rajan on Tuesday said the Finance Ministry's decision to provide more capital to PSU banks will lower the borrowing cost and increase their capacity to lend, besides promoting investments.
Governor Raghuram Rajan has asked his colleagues to ensure that the central bank is not seen as mere "paper tiger" and even rich and powerful wrong-doers are not spared.
Rajan said that even though inflation has breached the 6 per cent mark as against the RBI target of getting it down to 5 per cent by March 2017, the price rise scenario will ebb in future
Global currency market sentiment is likely to be driven by the US deficit and debt ceiling negotiations, with markets likely to turn more risk averse closer to October 17, the date by which the US Congress must approve raising the country's borrowing limit.
21 banks have launched United Payments Interface application.
RBI chief Raghuram Rajan said Asia's third-largest economy is being hampered by a drop in public and private investments.
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Raghuram Rajan, who took over as RBI Governor on September 4, is scheduled to unveil on Friday mid-quarter monetary policy review, an event keenly awaited by industry and banks.
'The finance ministry and public sector banks have tried to keep the names of wilful defaulters secret.' 'Secrecy and concealing information are inbred among banks and even the RBI,' observes Debashis Basu, editor, www.moneylife.in.
A majority of economists predicted RBI Governor Raghuram Rajan would leave policy rates unchanged on Tuesday and expected a dovish commentary, as crude oil prices and inflation cool off.
Rajan's first few measures include swap window facility for banks to lure in NRI funds.
'My immediate objective is to start thinking about research once again. Start understanding the world we are in which has changed quite a bit.'
Raghuram Rajan said the passage of the GST Bill augurs well for the growing political consensus for economic reforms.
"We are willing to speak to any of their leaders," Jaitley was quoted as saying by Bloomberg News.
A reading above 50 means the sector is expanding, while a reading below 50 means contraction.
The discussion paper is released at a time when the central bank is sifting through 26 applications seeking an entry into the fray.
As per latest government data, retail inflation inched up to a 22-month high of 5.77 per cent in June.
Diesel likely to get cheaper in New Delhi
Rajan said that while there were talks about Jan Dhan, it was difficult to target transfers to people through this tool. Jan Dhan, he said, does not really work as advertised.
The Reserve Bank of India (RBI) kept its key policy repo rate unchanged at 8.0 percent on Tuesday, as widely expected, while expressing concerns about risks to its target to bring consumer inflation down to 6 percent by January 2016.
RBI ex-governor's book on 'those turbulent but exciting times' to be launched on Sept 5 in Chennai.
UK operations of several Indian companies might take a hit.
Head of central banks from various countries get into a 'Basel huddle' every second month at Basel at the headquarters of the Bank for International Settlement.
For the fortnight ended September 5, annual credit growth in the banking system fell to 9.68 per cent, data released by the Reserve Bank of India showed.
The move to make the appointment process more robust comes after last month's arrest of S K Jain, chairman and managing director of Syndicate Bank last month, over graft charges.
"I would hope that the government would very respectfully request him to continue for one term or my preference would be two terms," Narayana Murthy said.
The BJP MP said the guidelines for grant of licences were 'brazenly flouted'.
Twelve of the 21 economists polled doubted whether the government could roll out the tax before the next fiscal year begins in April.
Macroeconomic factors under control, says Rajan
Rajan has been facing continuous attacks by Bharatiya Janata Party MP Subramanian Swamy and some other sections, who have alleged that he has failed to lower interest rates and boost the economy
Factory output in June likely rose 5.4 per cent from a year earlier, faster than the 4.7 per cent growth in May, according to a poll of 27 economists.
In the forward market, the premium for dollar moved up on fresh paying pressure corporates.
The American brokerage firm said it expects the rate cut to happen only in December if the monsoons normalise to cool down inflation or early 2015 in case prices rise prolongs.
Governments that do not respect central banks' independence will sooner or later incur the wrath of the financial markets, ignite economic fires, and come to rue the day they undermined an important regulatory institution; their wiser counterparts who invest in central bank independence will enjoy lower costs of borrowing, the love of international investors, and longer life spans, said Acharya, who will return to the New York University's Stern Business School in August.
India's current limit of $25 billion for ownership of government bonds by FIIs is fully utilised, leading to calls for increasing it
Raghuram Rajan said a six-member monetary policy committee will decide on interest rates.
The rupee had revisited the near 2-month low of 60.55 per dollar earlier in the session.
Progress on the steps taken by Governor Shaktikanta Das' predecessor Urjit Patel to restore financial system integrity will be a key thing to assess any damage to the institution, Subramanian said.
RBI likely to cut rate early next year.
India imposes restrictions on how much money its citizens and companies can invest abroad
RBI wants the lending rates to be determined by the market.
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