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The newly-appointed Governor Raghuram Rajan said on Wednesday Reserve Bank of India will offer a window to banks to swap the fresh FCNR-B dollar funds, mobilised for a minimum tenor of three years and over, at a fixed rate of 3.5 per cent per annum. According to Bank of America Merrill Lynch, "the move should fetch $8-10 billion", adding that the move would help in shifting rupee risks away from NRIs at a time of extreme volatility.
India Inc on Wednesday said it looked forward to the new RBI Governor Raghuram Rajan initiating cut in interest rates and improving credit flow to crucial sectors like infrastructure to put economy back on high-growth path.
Rajan has a great track record abroad.
With crude and commodity prices ebbing and the twin deficits under check, the Reserve Bank should have cut the key policy rate to push investments and boost economic growth, India Inc said.
'The reform agenda is progressing in the right direction'.
It's crucial for Modi to make India an easier place to do business.
Second authentication for small value payments through credit cards can be reduced subject to conditions.
Companies are still struggling to recover from years of exuberance.
The government kept its nerve in the face of a massive shock. It chose not to resort to a massive fiscal stimulus. It focused instead on providing liquidity support and easing restrictions on movement in stages, observes T T Ram Mohan.
The repo rate or the short term lending rate was increased to 7.5 per cent from 7.25 per cent.
'The rate cut could have been higher in the current economic conditions which would have had a stronger impact on business sentiment and spurred investment in a big way.'
The RBI has targeted 6 per cent inflation by January and 4 per cent by March 2018.
It is unlikely that the RBI will drop rates until the inflation rate drops below five per cent.
There is evidence of asymmetric adjustment to monetary policy
Rajan, who has been warning against competitive monetary policy easing by central banks, however, said the situation is different in India where RBI still needs to bring down lending rates to spur investments.
January inflation may undershoot RBI's 6% target.
RBI will cut rates in its next policy announcement on June 2.
Recpaitalising banks through taxpayers' money will not solve the NPA problem.
RBI has pegged the GVA growth of 7.6 per cent for the current fiscal and 7.9 per cent the year after
Indian jewellers such as Gitanjali Gems, Malabar Gold and Kalyan Jewellers have opened stores abroad to limit the slump in sales.
RBI projects GDP growth in FY16 at 7.8 per cent, 30 bps higher than FY15. However, this comes with a downward bias.
RBI has also announced new guidelines to price loans from April 1.
Fitch said the full implications of Patel's resignation will only become clearer once there is some indication of the RBI's policy approach under his replacement, Shaktikanta Das
The Reserve Bank is likely to continue buying dollars from market to add to its reserves in the coming months, which has crossed $300 billion, says a report.
The mergers will not involve any cash but only share swaps
RBI Governor Raghuram Rajan will announce the monetary policy on April 1 and expectations of a status quo are rising ever since the official data on consumer price inflation for February pointed to a cool down to 8.1 per cent.
The RBI governor most famous oneliners -- 'I am Raghuram Rajan and I do what I do' -- that eventually summed up the year 2015 for the central bank
"Now I get credit for the idea which actually I neither invented nor actually believed in," he said.
With the setting of MPC, the interest rate setting powers would move from RBI Governor to the panel.
While Bibek Debroy echoed his view in Twitter, Pronob Sen questioned Kumar's conclusion
RBI policy surely cannot impact agflation, in any case.
The S&P BSE Sensex shed 119 points to close at 27,977 and the Nifty50 dropped 45 points to finish at 8,591.
Will the government now push to move away from what Mr Rajan has been doing in the last few years?
RBI Governor would like to wait till Budget before taking any action on rate front.
RBI wants periodic revision of the pensions for its retired employees.
Realty firms and consultants hoped however that this would be the last round of monetary tightening by the central bank.
While a pick-up in summer monsoon rains in recent weeks is expected to cool food inflation, most analysts don't anticipate another rate cut before a new governor is on the job
The recent revelations come six years after another round of tapes stole the limelight.
The British pound was down nearly 9 per cent in early morning trade.
The hectic buying by domestic institutions, as also by some top-shot brokers in their proprietary accounts, was in sharp contrast to heavy selling of stocks by foreign portfolio investors
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