It is hardly surprising that the Reserve Bank of India's decision to revive a plan, first mooted in 2007, to introduce credit default swaps (CDSs) in India has met with considerable apprehension.
In its draft guidelines issued on Wednesday, the Reserve Bank of India has allowed banks and primary dealers to act as market makers of credit default swaps.
Manic Monday, Tragic Tuesday, Black Friday. We are not short of monikers to describe the current financial market meltdown that has dragged the world into recession. But everyone is suffering from a short-to-medium term memory loss and a failure to learn from past mistakes.
The Insurance Regulatory and Development Authority of India's (Irdai's) decision to allow insurers to hedge risks through equity derivatives will help them manage market volatility and protect policyholder returns. However, this move is unlikely to alter their investment strategies.
India ranks as the 22nd riskiest sovereign country, seen as most likely to default on debt and unable to honour its debt obligations.
European Commission charges follow a two-year investigation.
Reserve Bank of India said on Thursday that banks would be allowed to use credit derivatives to manage risks relating to lending, including buying protection on loans and investments, to reduce risk.
The decision to allow a product or not, should depend on its economic value addition and not on its mere availability and wide usage in the "sophisticated" markets.
India allows foreign investors to buy upto $81 bn
Finance Minister Nirmala Sitharaman on Friday announced a slew of measures to boost economic growth and address distress in various sectors
In the Union Budget for Financial Year 2023-24 (FY24), Finance Minister Nirmala Sitharaman had held forth on the need for better governance and investor protection in the banking sector. She had proposed certain amendments to the Reserve Bank of India Act (RBI Act), 1934; the Banking Regulation Act (BR Act), 1949; and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.
The Reserve Bank of India (RBI) has increased its gold purchases, as part of its foreign exchange (forex) reserves. In the first half (H1) of calendar year 2021 (CY21), the addition of gold to India's forex reserves has been the highest - on a half-yearly basis -at 29 tonnes. Now, the RBI's gold holding - as a proportion of its forex reserves - has for the first time crossed 700 tonnes.
The new hire, Gangadhar Darbha, joined as a consultant
Global private equity major KKR has ranked India second among the emerging markets on external risks, citing the high fiscal and current account deficits.
There's a long way to go before human beings are replaced by machines -- in banks at least.
The government planned to borrow 10-15 per cent of the total borrowing offshore. That works out to at least Rs 71,000 crore, or about $10.4 billion at Friday's exchange rate.
'What's sad today is that there are so many people who cannot find work, not because the country is devoid of that opportunity, but because we are not doing enough in the country.'
India plans to launch trading of government bond futures within the next two months as part of efforts to deepen its financial markets, according to several sources involved in the discussions with the central bank.
Although there are serious risks facing the US economy in the coming year, there is also a good chance that growth will be substantially stronger than it has been since before the recession began.
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The rupee tumbled past 63.00 to the dollar, down about 2 per cent on the day and breaching the previous low of 62.03 hit on Friday despite a spate of measures in recent weeks by the central bank and government to defend it.
'If such inflows materialise, what will be the effect on the rupee's value -- and therefore on exports growth, the only sustainable path to recovery?', asks Mihir S Sharma.
NBFCs are mainly dependent on funding their operation from their own cash flows.
India recorded 50,035 cases of cyber crime in 2020, an 11.8 per cent surge in such offences over the previous year, according to the National Crime Records Bureau (NCRB) data. The Reserve Bank of India (RBI) last week once again cautioned bank customers of fraud, including those in Know-Your-Customer (KYC) cases. In fact, certain frauds have become more prevalent than others, and being aware of them is the first step towards protect yourself. Mayur Joshi, chief executive officer, Indiaforensic.com, a company engaged in the prevention, detection, and investigation of frauds says, "It is necessary to learn, to read about these scams."
LVB had faced some serious flak in terms of bad loans, earnings and credit rating downgrades, since 2016.
'The 'Off-with-Rajan's-head' brigade bases its arguments on mistaken beliefs, erroneous causalities, and even downright prejudice.'
The Bill provides comprehensive legislation to prohibit unregulated deposits, with punishment for those promoting such schemes or defaulting on repayment.
'Rate cut should reiterate RBI's commitment in providing confidence to consumers and small business.'
As the clean-up has taken hold, loan growth slipped to 10.7 per cent in the last fiscal
Bad debt rules are steps in right direction.
If net forex outflows turn out to be relatively high in the next few years, the rupee could depreciate beyond Rs 80 to a dollar by 2022. The causal reasons could, for example, include unmet expectations of FPI and FDI investors about the performance of the Indian economy, sharp rise in prices of imported oil and decrease in FX remittances. The RBI has to ask itself whether guaranteeing future rupee-dollar exchange rates on FX forward contracts is a reasonable way to use its risk-bearing capacity, says Jaimini Bhagwati.
Markets could slide again owing to conditions in Europe and the US.
The recent agreement between the RBI and the Centre marks a significant step forward toward financial inclusion.
While, on the surface, it seems revolutionarily new, Toyota has essentially plugged in gaps in the Fortuner's package. Tushar Kamath/CarDekho.com drives a Toyota Fortuner 2.8 4x4 AT to find all about it.
