The idea is to boost household savings and turn more of them into growth capital. If the plan succeeds, sustained eight per cent-plus rates of gross domestic product growth should be within reach in a few years.
Progress on the steps taken by Governor Shaktikanta Das' predecessor Urjit Patel to restore financial system integrity will be a key thing to assess any damage to the institution, Subramanian said.
This gains importance in the backdrop of speculation on a second term for Raghuram Rajan.
Will Arundhati Bhattacharya be the RBI's first woman governor? Or will Urjit Patel succeed Raghuram Rajanas RBI governor when his term ends on September 4?
Experts have started giving comments on provisions that the govt must make in Budget 2016-17.
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.
This comes after the arrest of Syndicate Bank Chairman S K jain.
'We first need to acknowledge the truth.' 'We are trying to diminish the problem and say, everything is okay and green shoots are emerging.' 'Imagine you are a doctor and not getting accurate medical reports, how do you diagnose and treat the illness?' 'We are not dealing with a terminal illness here, we are dealing with BP and cholesterol, which are imminently curable.'
It's crucial for Modi to make India an easier place to do business.
Managing Brexit, inflation and banking reforms, along with the political environment, will be tough.
The size of the hole in today's banking crisis appears to be roughly 10 per cent of GDP.
Delivering the key mote address at the Citi's Investor Summit, Jaitley hoped that as a professional organisation the Reserve Bank will take 'the best decision'.
A senior official with Muthoot Finance said the group would also want to apply for a universal licence.
With a sole mandate of inflation targeting, RBI wears many hats.
Finance minister Arun Jaitley has delivered a Arun Jaitley delivered a bold, far sighted budget
Sahil Kapoor of Edelweiss Retail Capital Market Research says that setting up a monetary policy committee should have been the first step. And the central bank could have moved towards a formal inflation targeting mechanism after the processes and data sets are in place.
The lack of an informal communication channel is what should bother the government and the RBI, if they want to eliminate the undesirable outcomes of the current tension between the two, says A K Bhattacharya.
'The Reserve Bank's independence has remained a work in progress, an enduring challenge that the nation has been grappling with on an ongoing basis,' says RBI Deputy Governor Dr Viral Acharya.
The euphoria of Ab Ki Baar Modi Sarkar will fade quickly if the Modi government does not raise its game, and focus significant monetary resources and managerial skills on making India's infrastructure truly world-class, says Ram Kelkar.
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