RBI Governor Raghuram Rajan asked banks to follow suit and pass on the rate cuts.
After making a larger-than-expected cut of 50 basis points on September 29, Rajan urged the federal government to do its bit to accelerate growth through structural reforms.
A vibrant financial system could can help finance those who wanted to create jobs.
However, some analysts say RBI Governor Raghuram Rajan may delay the rate cuts amid mounting concerns over the government's fiscal health.
Governor also says two-stage verification for card transactions might go; RBI in process of setting up IT arm
RBI has already come out with a discussion paper on banking sector in India, on which the regulator has invited comments from stakeholders.
It's time the regulator did some introspection.
This remark is in consonance with RBI Governor Raghuram Rajan's comment.
India's crony capitalists will have had their day in the sun.
The RBI announced its monetary policy on Tuesday.
RBI may hold rates in Apr; to go for 25 bps cut by June: DBS
Retail inflation measured by the consumer price index has risen sharply across food and non-food constituents, including services, keeping inflation expectations high, the Reserve Bank of India said in its Second Quarter Review of Monetary Policy 2013-14.
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Currently, the cash reserve ratio is pegged at a low of 4 per cent, while statutory liquidity ratio that includes securities such as government bonds, stands at 23 per cent, down from 25 per cent in 2010.
The rupee closed at 59.90 in Wednesday's trade, gaining just one paisa from its previous close.
India's foreign exchange reserves are at an all-time high.
The move to make the appointment process more robust comes after last month's arrest of S K Jain, chairman and managing director of Syndicate Bank last month, over graft charges.
Many officials had been talking of taking the baton of global growth.
The three years at the Reserve Bank have mostly been a string of success stories for Rajan, gaining him common man's adulation even as the free-thinker in him made a few foes who matter more in the corridors of power
If they are made accountable, bad loan cases will shrink dramatically, recoveries will rise, and the NCLT process will be more manageable, asserts Debashis Basu.
He has had a productive first year at the RBI -- one which saw, also, India's economic imbalances improve and the unexpectedly strong general election outcome.
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The newly-appointed Governor Raghuram Rajan said on Wednesday Reserve Bank of India will offer a window to banks to swap the fresh FCNR-B dollar funds, mobilised for a minimum tenor of three years and over, at a fixed rate of 3.5 per cent per annum. According to Bank of America Merrill Lynch, "the move should fetch $8-10 billion", adding that the move would help in shifting rupee risks away from NRIs at a time of extreme volatility.
As inflation rate is near the upper limit of the comfort zone, experts rule out rate cuts anytime soon
Experts said a future rate cut would depend on the inflation.
The message to bankers from Raghuram Rajan was clear.
As Indians scrambled to exchange the banned notes for new currency, Paytm, Sharma's digital payments startup, went on a promotional spree, inviting Indians to start using Paytm's digital wallet to pay for everyday goods and services.
The RBI, which has been keeping rates at an elevated level citing the high inflation, wants to bring it down to 6 per cent by January 2016.
Rajan's exit will neither affect the RBI's de facto independence nor its working.
India builds up record FX after Fed hints rate hike in future.
Prices are likely to rise further as demand grows in coming months due to festivals
The finance minister has said that United Bank has managed to reduce its non-performing assets.
The proposed four per cent inflation target is onerous, considering India is currently battling near-double-digit increases in prices.
With crude and commodity prices ebbing and the twin deficits under check, the Reserve Bank should have cut the key policy rate to push investments and boost economic growth, India Inc said.
The Indian government will present the annual budget for 2016-17 on February 29.
Traders suspect The Reserve Bank of India (RBI) bought bonds and actively intervened in the rupee to support sentiment.
The rupee had ended five paise lower at 61.92 on Tuesday.
The country's merchandise deficit narrowed to $9.2 billion in November, but exports growth eased to 5.9 percent from 13.5 percent in October, government data showed.
Pulses cropping has jumped to 39.4 per cent above 2015 levels.
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A rule change may make Nachiket Mor, among others, eligible to replace Chakrabarty.
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The rate cut, the industry chambers argued, could have given a positive signal to the manufacturing sector, which is undergoing difficult times.
Better supply management and check on hoarding should be able to prevent food price spikes
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