Dr Rajan has clearly sought to establish his credentials as an inflation fighter and the action should be seen as an indication of how monetary policy will operate during his term.
The Centre's fiscal consolidation resolve led to the cut in banks' mandatory SLR for the second time in a row, RBI Governor Raghuram Rajan said on Tuesday, hinting at more such liquidity enhancing steps in tandem with the government's action on fiscal deficit.
It would be beneficial for the economy to hold on to high interest rates till inflation numbers are under control.
Rajan's appointment will be perceived as a positive development.
Last August, RBI gave in-principle approval to 11 applicants.
The Reserve Bank of India had taken steps to tighten liquidity in a bid to curb volatility in the forex market after the rupee fell to a record low of 61.21 to the dollar on July 8.
The RBI guv said global economy is actually recovering, though slowly
Lauding the pro-reforms approach adopted by Reserve Bank of India Governor Raghuram Rajan, industry body Confederation of Indian Industry on Thursday expressed the hope that the central bank would shift towards an expansionary monetary policy by cutting interest rates to stimulate growth.
The rupee has also risen during the period and is now trading below the crucial Rs 60 against the dollar mark.
The RBI kept its key policy repo rate unchanged at 8.0 percent in its recent monetary policy.
All eyes are on new Reserve Bank Governor Raghuram Rajan who will come out with his maiden monetary policy review on Friday amid conflicting demands for rate cut and an urgent need to contain inflation which soared to 6-month high of 6.1 per cent in August.
Rajan, further said, the government was not contemplating more steps to curb gold import, and significant reduction was likely in June.
RBI governor Raghuram Rajan says, laws must be tightened for freeloaders.
Raghuram Rajan on Tuesday said the central bank cannot ask them to lower the rates.
On September 4, at a time when the rupee was the worst performer among Asian currencies, Raghuram Rajan took charge as RBI's governor.
Rajan, who will complete a month as the governor of Reserve Bank of India on Friday has already succeeded in restoring calm in the foreign exchange market.
Given their stability, the rupee and the renminbi (Chinese currency) -- when made convertible -- could well emerge as substitute currencies which countries will hold their reserves, stated Raghuram Rajan, Economic Advisor to the Prime Minister and Professor of Finance at the Chicago Graduate School of Business, on Wednesday.
RBI data show one-fifth of all the infrastructure loans are stressed and the share of such loans in overall stressed assets is nearly a third.
A red alert indicates heavy to extremely heavy rains of over 20 cm in 24 hours, while an orange alert means very heavy rains of 6 cm to 20 cm of rain.
Finance Minister Arun Jaitley said the Reserve Bank and the Finance Ministry have "very mature level of consultation" and it wasn't fair to comment on them.
Journalist Jigna Vora, arrested in the murder of senior crime reporter J Dey, invited the suspicion of investigators when she claimed she never spoke to gangster Chhota Rajan on phone, an assertion not backed by facts, police said on Monday.
An unexpected devaluation of yuan saw it plunge the most in 20 years.
The RBI Governor also reiterated his reservation against repeated loan waivers by various state governments, saying the move distorts credit pricing, thereby also disrupting the credit market.
DDCA will add two more practice pitches to the main square of the Feroz Shah Kotla besides replacing 15,000 old bucket seats for the ODI World Cup.
Rajan Committee has evoked divergent reactions from the states.
The RBI governor says, Mahatma Gandhi is the only dignitary which can be featured on rupee notes.
Bajaj hit out at banks for not passing the entire benefits to consumers.
The state police has also requested the government to deploy paramilitary forces around the jail premises for the underworld don's security.
Nikhalje was arrested under Maharashtra Control of Organised Crime Act in 2005 and spent two years behind bars
New Reserve Bank of India chief makes his first monetary policy statement on Friday with expectations he may scale back some of the emergency measures that have helped the rupee bounce from a record low.
Reserve Bank of India Governor Raghuram Rajan said, in an election year, it is better to be ready for any eventuality.
RBI Governor Raghuram Rajan on Tuesday said the government will decide on extension of his tenure.
If the RBI governor's logic holds, the rupee is far from being extremely overvalued.
Even those with no knowledge of the inner workings of the media and police, would find Scoop absorbing as a human drama and the story of the resilience of a woman, her family and true friends, applauds Deepa Gahlot.
The core inflation is down and there is a need to push growth.
RBI had previously cut repo rate by 0.25% each in January and March.
'I think the markets will move up given that there will be more money.'
Design of these notes to be issued now is similar in all respects to the Rs 1000 Banknotes in Mahatma Gandhi Series-2005 issued earlier, RBI said.
'We are by no means anywhere nearing having external financing difficulties or internal financing difficulties. The government's credit is solid, there is absolutely no difficulty for the government in borrowing and it is borrowing effectively from the public today in a fairly free public debt market,' the RBI governor tells a meeting in Washington, DC
He will presumably choose to remain true to the framework he has put in place.
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