A two-year extension at the helm of the RBI still looks a real possibility
RBI Governor flayed easy monetary policy of central banks in advanced economies saying it is "more cause than medicine".
'The RBI is something like a seat belt. As a driver, the driver being the government, it has the possibility of not putting on a seat belt but of course if you do not put on your seat belt you get into an accident and the accident can be quite severe,' Raghuram Rajan told CNBC TV18. 'The aim of the board is to be Rahul Dravid -- sensible, thoughtful and not, with due respect, Navjot Sidhu,' he added.
The former Union minister alleged that the government is "intolerant to the slightest criticism".
The Indian economy recovered from the Covid-induced downturn during 2022 and is poised for further improvement in the coming quarters though downside risks emanating from geopolitical tensions, strengthening dollar and elevated inflation will continue. The positive trajectory in the growth trend and improved fundamentals will help the nation in neutralising the impact of global headwinds which are expected to have a bearing on the country's exports in the months to come. The challenges before the government and the Reserve Bank in the new year would be to arrest inflation, check declining value of rupee against US dollar and promote private investment and growth, with a view to ensure that the country remains one the fastest growing major economies of the world.
RBI Governor Raghuram Rajan on Friday pitched for incentivisation of domestic savings to boost investments in the country.
The stress in the banking sector, which mirrors the stress in the corporate sector, has to be dealt with in order to revive credit growth.
Here is some background on the candidates seen as potential successors to Rajan at the RBI
Rajan said expecting the government to provide all solutions wasn't right.
The RBI is working to nudge large foreign banks with 30 or more branches in India to get incorporated locally.
Reserve Bank of India (RBI) governor Raghuram Rajan says global markets are at risk of a "crash" should investors start bailing out of risky assets created by the loose monetary policies of developed economies.
"We did not abuse RBI governors," says Chidambaram.
Of the eight RBI governors who have held office since the 1991 economic liberalisation, Bimal Jalan had the longest stint and S Venkitaramanan, the shortest. Current Governor Shaktikanta Das will overtake Bimal Jalan before completing his second term in December, points out Tamal Bandyopadhyay.
The discussion paper is released at a time when the central bank is sifting through 26 applications seeking an entry into the fray.
Financial services firm AnandRathi analysed the key points of the policy soon after it was announced.
Worries over Greece sparked a sell-off in emerging markets on Monday
For 2015-16, IMF pegged India's growth rate at 7.5 per cent.
The report further noted that inflation is expected to fall to 4.5 per cent by quarter ended March 2017.
'Rajan's exit will have a great impact on the economy.'
Reserve Bank of India (RBI) Governor Raghuram Rajan has set himself a target of lowering consumer inflation and is even ready to raise rates to achieve it, risking friction with the new government, if he is seen as overstepping.
Rajan said whatever answer he gives on Modi will be 'problematic'
Rajan's total 'monthly emoluments' stands at Rs 198,700
Rajan's exit will neither affect the RBI's de facto independence nor its working.
With the economy growing at its slowest rate in a decade, India's banking system is facing rising levels of stressed loans, with $100 billion, or about 10 percent of the total, categorised as bad or restructured.
Infrastructure bonds were launched by the RBI last year in a bid to help the government fulfill its plan to provide affordable housing to all by 2022
It has been decided to reduce home loan rate by 20 basis points.
As deputy governor, Patel headed the RBI panel to draft the monetary policy report, which became the basis of the ongoing reforms at the apex bank
If companies get into trouble, the loan becomes a non-performing asset and "we very much want these assets to be back on track," Raghuram Rajan said.
On the controversy surrounding the GDP numbers based on new calculations, he said statisticians have done as good a job as they can and economic growth is significantly high as costs have come down
In response the BRICS - Brazil, Russia, India, China and South Africa - have taken steps to strengthen cooperation such as setting up a joint development bank
The rupee has also risen during the period and is now trading below the crucial Rs 60 against the dollar mark.
RBI Governor Raghuram Rajan in his maiden policy review, however, eased liquidity though a reduction in the marginal standing facility rate, at which banks borrow from the central bank, by 0.75 per cent to 9.5 per cent.
Rajan, Swamy alleged, is a member of US dominated Group of 30.
The industry also emphasised on supply-side interventions by the government to tackle persistently high food inflation.
The report said that "we believe, institutions are more important than individuals" and ultimately what is important is the credibility and the independence of any institution and nothing else.
India needs to move towards full capital account convertibility to become a leading global economy.
IT exporters were the top gainers amid a weak rupee along with select index heavyweights.
The post of chairman and managing director has been split and the government has appointed managing directors and chief executive officers in four banks -- Indian Overseas Bank, United Bank of India, Oriental Bank of Commerce and Vijaya Bank.
Brokerage firm Bank of America Merrill Lynch (BofA-ML) on Monday said the ongoing US government shutdown is positive for the country, as it gives additional time to recoup the forex reserves.
The declining inflation and a negative industrial outlook have strengthened the case for RBI.
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