The Fed has prepared the world very well for a rate hike. In fact the market may have priced in a 25 basis points increase. So if the increase is 50 basis points, the reaction could be stunning, but a 25 basis points rise is not likely to have any great impact, says P V Subramanyam.
Finance Minister Pranab Mukherjee on Monday said the hike in prices of petroleum products will have some inflationary impact in the short-term but price pressures will moderate from the middle of July.
Both the RBI and the central government should see that the transmission of the rate reduction by the banks happens soon, otherwise the whole exercise is futile, says Subramanian MV.
Here is some background on the candidates seen as potential successors to Rajan at the RBI
The nomination would put Yellen on course to be the first woman to lead the institution.
Under the watchful eyes of five wise men, who know the industry well, banks will not find it easy to hoodwink the system, says Tamal Bandyopadhyay.
The IEMs could be those former officers of government and PSUs who have retired from top management positions and also eminent persons and executives from the private sector.
RBI on Tuesday raised its short-term lending and borrowing rates by 0.25 per cent and 0.50 per cent respectively to bring inflation down to six per cent by March 2011 from double digits now.
Inflation is down and there's every chance that crude prices will be subdued through the next year.
Banks have been told by the Reserve Bank of India (RBI) to be more transparent and levy reasonable penal charges.
Many PSBs are in the process of rationalisation of ATMs
The chairman of mortgage giant HDFC Ltd in his annual letter to shareholders, also suggested a one-time restructuring of real estate loans, easing of external commercial borrowing rules and immediate changes in regulations to allow end-to-end execution of housing loans online.
The race to get a New Umbrella Entity (NUE) licence for digital payments may get crowded. As many as six consortiums are said to be in the fray to apply for an NUE licence, which would create a for-profit National Payments Corporation of India (NPCI)-like body for retail payments. A consortium led by Financial Software and Systems (FSS), a leading provider of payment products and payment processor, is in talks and may file an application to the RBI for an NUE license, said sources aware of the development. The other constituents of this group include Indian Bank, Central Bank of India, India Post Payments Bank, National Bank for Agriculture and Rural Development (Nabard), and a few small finance banks.
The RBI fell short of pumping Rs 150 billion into the economy at the beginning of 2018-2019.
LIC, ICICI Bank, PNB to have nominees on board; firm asked to sell non-core assets.
'The no-rate cut policy and preference to wait for the Budget and clarity on the fiscal front demonstrate RBI Governor Shaktikanta Das is maturing in his new role,' notes Tamal Bandyopadhyay.
The post-crisis debate on capital account management focuses on matching instruments with vulnerabilities.
There will be different ways of returning the money, depending on the profile of the depositors and the amount, predicts Tamal Bandyopadhyay.
Much will depend on turnout, with younger Britons seen as more supportive of the European Union than their elders but less likely to vote.
Greek finance minister to hold talks with bankers on Sunday
'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.
The Reserve Bank on Tuesday increased a key statutory deposit ratio for banks to 25 per cent but the move is not expected to push interest rates up. RBI left other key policy rates and ratios unchanged. Due to this, it is unlikely that banks will banks hike their auto, home and education loan rates in the near term.
Mumbai teenager Aashi Hanspal is a rising star in motorsport.
It isn't Rajan ignoring money as much as it is Bernanke ignoring capital and exchange rates.
The country has a long way to go before it claims to have arrived, he said.
In an attempt to mitigate the problems faced by the beleaguered diamond industry in Gujarat, the Reserve Bank of India has decided to set up a task force comprising representatives of the state government, the State Level Banking Committee Convener and other bankers.The task force will submit its report by the month-end. Gujarat's diamond industry has been beset with problems, chief among them being lacklustre Christmas-season demand for finished diamonds.
A glance back at some important events that occurred in 2018.
Pakistan has appointed Saleem Raza, a former international banker, as central bank governor.
The Summit could look at the possibility of starting credit facility in local currency by the BRICS Bank.
In India we have to be careful not to copy any level of dependence on the financial sector and infatuation with the get-rich-quick syndrome, says Jaimini Bhagwati.
Say 30 days not enough to resolve stress; want higher provision norms deferred till economy picks up
In an effort to soothe nerves of the country's mutual funds and the non-banking finance companies, the bankers today assured that they would come forward to support these financial institutions' funding needs including liquidity to meet redemptions.
Markets have witnessed a gap down opening mirroring losses in the global equities with US markets taking a hit on worries about the health of Chinese economy.
BofA-ML said the liquidity deficit is running higher than the forecasts because the RBI has suspended its bond buybacks or open market operations.
The Reserve Bank is in touch with various banks to understand why lending rates are not coming down despite the central bank cutting policy rates, even as the bankers expressed inability to lower the rates when bond yields remain high.
Private banks may lower deposit rates. The Reserve Bank of India on Friday prodded banks to reduce interest rates after the monetary policy measures announced by it over the last five months have failed to result in lower cost of funds for the economy.
Surplus liquidity in the banking system and low demand for credit might prompt the Reserve Bank of India to maintain a status-quo in its key rates, bankers have said.
The recommendations of the 6th Pay Commission, if implemented by the Central government, could result in major negative impact for the fiscal position of the country, though it could be positive for consumption, according to a leading investment banker. The review said assuming the 6th Pay Commission's recommendations were implemented fully, "we judge the impact on the economy should not be as negative this time round". Impact of 5th pay commission was unambiguously negative.
