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.
The RBI wants to enforce more transparency in public sector banks. Manojit Saha The Apex bank wants the government t oreduce stakes in PSUs.
'If the RBI reduces the rate of interest, housing demand can pick up, investment can pick up, automobile demand can pick up...'
India's central bank kept its key repo lending rate unchanged at 6.75 percent on Tuesday.
There is a strong case for 25 basis points cut in interest rates.
Move to shift powers from RBI without discussions baffles many
The rally followed the govt's plan to bolster state-owned lenders.
From a national point of view, inflation is the biggest threat posed by finance ministers.
'The temptation of governments, to have a finger in the RBI pie will be just too great to resist, unless extensive amendments are carried out in the RBI Act treating it almost as the fourth branch of the government.'
Over the past week, the BSE Sensex ended on a muted note, showing a marginal gain of 2.25 points at 28,114.56.
Loans to wilful defaults are said to be a little over Rs 1 lakh crore.
The Reserve Bank of India has formulated strategic polices to enhance growth in banking sector.
A few market and economic indicators have begun looking up, thanks to what many term the 'Rajan effect'.
The Finance Minsiter says country requires 'a larger opening out in more sectors, stability of policy and tax regime'
Raghuram Rajan's three-year term is the shortest of any G20 country and the recent governors have been given second terms as much as seven months in advance.
Moody's earlier this week lowered its growth forecast to 7 per cent, from 7.5 per cent.
The S&P BSE Sensex shed 286 points to close at 24,539 and the Nifty50 lost 100 points to end at 7,456.
Analysts have started talking about at least a 25 bps cut immediately.
RBI has already come out with a discussion paper on banking sector in India, on which the regulator has invited comments from stakeholders.
India too will advocate the IMF quote reforms at the two-day meeting of G20 Finance Ministers and Central Bank Governors beginning Saturday.
'If there is an RBI majority in the committee, there is no question of a veto.'
RBI will cut rates in its next policy announcement on June 2.
Chief Economic Advisor V Anantha Nageswaran on Thursday expressed hope that the economy will maintain the trend growth rate of 6.5 per cent and above for the rest of the years in the current decade. The economy will close the current fiscal logging in a growth of 6.5-7 per cent, he said, citing the projections of private sector analysts, Reserve Bank of India (RBI) and international agencies like OECD and the IMF. "This appears to be reasonable at this point in time although we will get the data on the fiscal second quarter in a few days, which will give more clarity on these numbers.
RBI expects the growth in the next fiscal to strengthen gradually, notwithstanding the significant headwinds.
'Normally, the system is geared towards counting notes -- it is equipped to do x amount of work and one day you are asking them to do 20 x.' 'The processes involved are very complex.'
The Reserve Bank of India is not a free agent. It never has been, nor should it ever be.
"I am an academic and I have always made it clear that my ultimate home is in the realm of ideas," Rajan said in a letter to staff.
Tuesday's policy announcement had a regulatory and development component.
The Reserve Bank on Tuesday cautioned that continued uncertainty over monsoon could stoke food inflation, but expressed the hope that government policies will improve supplies in the coming months.
Hindenburg Research has alleged that Adani Group was "engaged in a brazen stock manipulation and accounting fraud", a charge the conglomerate described as malicious, unsubstantiated, one-sided, and having done with malafide intention to ruin its share-sale.
RBI Governor Raghuram Rajan wanted to improve training for staff, through initiatives such as sending them to other central banks for short stints.
Shaktikanta Das said in Washington, DC, that there was nothing sacrosanct about the 25 bps rate cut and that monetary policy could be well served by calibrating the size of the policy rate to the dynamics of the situation, and the size of the change itself could convey the stance of policy.
As the clean-up has taken hold, loan growth slipped to 10.7 per cent in the last fiscal
Real estate biggies unhappy with status quo on RBI rate cut.
Raghuram Rajan, whose current three-year tenure ends on September 4, has already said no to a second term.
With a sole mandate of inflation targeting, RBI wears many hats.
Nowadays, our politics is habituated to sitting on a high pedestal, hobnobbing with world leaders, generating impressions of a superpower and returning to earth for the purpose of winning elections. In contrast, the yatra never left earth, observes Shyam G Menon.
After Raghuram Rajan leaves, the world for the succeeding RBI governors will be distinctly different.
The RBI announced its monetary policy on Tuesday.
Only one 25 basis points rate cut is likely this calendar year, between April and June, the poll says
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