The Reserve Bank has told the International Monetary Fund (IMF) that the objective of frequent interventions in the forex market is to curb excessive volatility, dismissing the Fund's rationale for reclassifying India's exchange rate regime. The IMF, following the Article IV consultation with the Indian authorities, reclassified the status of the exchange rate regime to "stabilised arrangement" from "floating" for period between December 2022 to October 2023. India's Executive Director at IMF K V Subramanian and Senior Advisors Sanjay Kumar Hansda and Anand Singh questioned the selection period adopted by the Fund for analysis and also reclassification of the country's exchange rate regime.
Encouraged by foreign exchange reserves touching record levels, the Reserve Bank on Tuesday doubled the annual overseas investment ceiling for individuals to $2,50,000.
According to D&B, food price levels might witness a rebound as foodgrain production is estimated to have declined during 2014-15.
Financials ended mixed despite the status-quo on key rates by the RBI. SBI, ICICI Bank and Axis Bank ended up 0.4-2.5% each.
The message from the Reserve Bank of India is clear; interest rates are headed up.
The RBI expects CPI inflation to fall from 5.8% in Jan '16 to 4.8% in Jan-Mar '17.
In a move that may put pressure on housing and other consumer loans, Reserve Bank of India on Tuesday hiked its short term lending and borrowing rates by 0.25 per cent.
In a move that may put pressure on housing and other consumer loans, Reserve Bank of India on Tuesday hiked its short term lending and borrowing rates by 0.25 per cent.
Banks normally park almost 27 per cent of their funds in government securitie.
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The RBI said lead indicators point to continuing sluggishness in domestic economic activity in the first quarter of 2014-15.
'Election years tend to see high government expenditure on unproductive schemes, though that money sloshing around can boost private consumption.' 'Again, it can mean higher inflation,' explains Devangshu Datta.
They have also called for giving cash to the poor, so that demand is generated in the economy.
In the June quarter of FY24, 51 per cent of consumers who took small-ticket personal loans already had more than four credit products at the time of accessing yet another new loan, compared with just 17 per cent in the June quarter of FY20, points out Tamal Bandyopadhyay.
SBI was the biggest loser in the Sensex pack, shedding 2.40 per cent, followed by Yes Bank, Bharti Airtel, L&T, Sun Pharma, M&M, ICICI Bank, ONGC, RIL, Asian Paints, Vedanta and HUL, which lost up to 2.37 per cent.
Inflation is expected to remain low in the near term, in part because of the further declines in energy prices.
Unless there is a sharp uptick in oil prices, Fed may push back rate hike
The move, which could come as a surprise to many investors, was a nod to better prospects for economy and labor market
Sharp swings likely in equity, forex and bond markets.
Nudging the RBI to cut interest rates to boost growth, Finance Minister Arun Jaitley on Sunday said he had already made his mind clear and hoped the central bank will take decision after taking into account various factors.
If this turns into reality, India's gross domestic product (GDP) growth will be the lowest since 2012-13, which could severely hit job creation and income growth in the near term.
The Delhi high court on Friday sought the Enforcement Directorate's stand on a plea by Aam Aadmi Party leader Sanjay Singh against his arrest in a money laundering case related to alleged irregularities in the now-scrapped Delhi excise policy.
The recent agreement between the RBI and the Centre marks a significant step forward toward financial inclusion.
'Banks are being encouraged to lend instead of parking their resources with the RBI and earn risk-free interest income,' points out Tamal Bandyopadhyay.
The Delhi high court on Friday refused to interfere with the 'malicious' arrest of Aam Aadmi Party leader Sanjay Singh by the Enforcement Directorate in a money laundering case related to the now-scrapped excise policy of the Delhi government, saying it cannot impute political motive to a 'premier' investigating agency in the absence of material on record. It also said Singh's was not a 'prima facie case of no evidence at all'.
RBI Governor Raghuram Rajan on Tuesday said the government will decide on extension of his tenure.
'There are occasions when the prices of individual items like food raise inflation; then supply-side measures must be taken.' 'But if there is continued inflation, it means liquidity is aggravating the situation.'
Interview with former Reserve Bank of India governor by Duvvuri Subbarao.
The RBI governor-designate may be economical with spoken words, but is known for his sharp and critical writings
A Delhi court on Friday dismissed the bail application of Aam Aadmi Party leader Sanjay Singh in a money laundering case related to the alleged Delhi excise policy scam.
For the first time in 21 years, the Reserve Bank of India (RBI) will revise norms for investment portfolios of commercial banks to reflect changes in global standards on valuation and measurement, and progress in the domestic market. This could pave the way for banks to transition to the new accounting standards (Ind-AS). The outstanding investment portfolio of commercial banks was at Rs 45.84 trillion as of November 19 this year.
Mortgage lender HDFC Ltd on Wednesday announced an increase in its benchmark lending rate by 5 basis points (bps), a move that will make loans dearer for both existing and new borrowers. This is the third hike effected by HDFC in the last one month. "HDFC increases its Retail Prime Lending Rate (RPLR) on housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from June 1, 2022," the housing finance company said in a statement.
SBI is the first major bank to cut its base lending rate this year.
The friction with the political class is not only about interest rates and monetary policy. While the government often spoke freely about its discomfiture, the RBI had to be careful even in its response to the government as any loose statement would affect the markets.
It has been decided to reduce home loan rate by 20 basis points.
This is the second high profile resignation in the past six months at the Reserve Bank of India.
Since January 1, the rupee value has fallen by 5.5 per cent against the US dollar and touched life-time low of 58.98 on Tuesday.
The dollar-rupee rate could move in the opposite direction if dollar policy rates rise and the FPIs sell in December, says Devangshu Datta.
For a long time, the Indian economy has been drifting without a credible monetary anchor.
There was no word on whether or when Patel would be talking to the media about his priorities and plan of action as head of Mint Street
In order to provide an impetus to digital funds movement, it has been decided to do away with the charges levied by the RBI for transactions processed in the RTGS and NEFT systems, RBI said.
