The Reserve Bank might hike the Cash Reserve Ratio (statutory cash balances banks maintain with the apex bank) by 0.50% in its credit policy if inflation remains high, feel Indian bankers. The RBI is scheduled to announce annual credit policy for fiscal 2008-09 on April 29. RBI is likely to tighten money supply in its forthcoming annual credit policy to suck out excess liquidity from the system. Growth has moderated in recent months.
Nudging the RBI to cut interest rates to boost growth, Finance Minister Arun Jaitley on Sunday said he had already made his mind clear and hoped the central bank will take decision after taking into account various factors.
In order to introduce standardisation between online publishers and agencies, the Internet and Mobile Association of India has introduced a credit policy and accreditation process for all agencies dealing with online advertisements.
China's economy, which suffered 6.8 per cent slump in the first quarter due to the coronavirus pandemic -- the worst in 44 years -- bounced back posting 4.9 per cent growth between July and September buoyed by the government's sweeping efforts to stimulate demand and consumption.
Sebi has now said any default of payments of interest or principal on loans taken from financial institutions, including banks, will have to be disclosed if it continues beyond 30 days.
Bankers have said that lending rates could go up to 0.5 per cent after the Reserve Bank's annual credit policy, which is widely expected to take stringent monetary measures to contain price rise. Many expect the central bank to effect a hike in cash reserve ratio (CRR), the rate of amount all commercial banks need to keep with the Reserve Bank, in its annual credit policy on April 29. Many banks, including SBI, had revised their lending rates downwards early this year.
How will the Reserve Bank of India's credit policy affect your loans? Will banks now charge you less interest?
The association demanded that the interest rates for developers as well as home buyers should be brought down to boost realty sector, which is facing a slowdown in demand.
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RBI is scheduled to unveil its credit policy on June 3.
The central bank has hiked however reverse repo rate by 0.25 per cent.
Finance Minister P Chidamabaram on Thursday indicated that the increase in reverse repo announced in the Reserve Bank of India credit policy will not raise bank lending rates and allayed fears on inflation by promising steps to ensure
In an online chat with readers, Harshala Chandorkar of CIBIL answered their queries on education loans.
Reserve Bank of India is unlikely to revise bank rate but is likely to suggest measures for improving financial health of banks in the slack season Credit Policy to be announced on Tuesday, bankers said.
The broader markets gained with mid-caps and small-caps rising nearly 0.7% on the BSE.
Terming the 8.1 per cent growth in 2003-04 as "inflated", Congress on Tuesday said the Resrve Bank of India forecast of 6.5-7 per cent for the current year was "realistic".
The Reserve Bank of India has left the bank rate and repo rate unchanged at 6 per cent and 4.5 per cent, respectively.
Leading industry and export chambers like PHDCCI and Federation of Indian Export Organisation on Tuesday demanded 1.0 per cent cut in bank rate and cheaper export finance in Reserve Bank of India's' forthcoming busy season credit policy.
The main driver remains expectations of a big rate cut in the May 3 credit policy review, but stocks like Hind Unilever and ITC have also seen heavy buying.
The Reserve Bank of India has left bank rate and cash reserve ratio unchanged at 6 per cent and 4.5 per cent, respectively.
There has been a convergence between what the markets expected and what was announced in the Credit Policy.
Response to readers' queries on stocks they want to buy, sell or hold.
High inflation continues to be an obstacle in lowering policy rates as of now.
Analysts and economists say that it is too early to expect anything dramatic on the interest rate regime despite the recent reform measures.
Mukherjee said it was not necessary for the RBI governor to consult him before the mid-quarterly review of the credit policy.
Banks and bond dealers expect RBI to slash its bank rate by 0.50 per cent and reduce repo rate by 0.25-0.50 per cent in the forthcoming busy season credit policy, going by the excess liquidity and lower yield on government papers.
Considering the tight inflation scenario, RBI had little choice.
SBI Chairman Pratip Chaudhuri on Tuesday once again expressed his open disagreement with the RBI on cash reserve ratio (CRR) saying it is a "waste" for the economy and successive interest rate cuts by central bank have failed to contain inflation.
Within hours of RBI slashing the Cash Reserve Ratio (CRR) by 0.25 per cent, State Bank (SBI) on Tuesday hinted at a likely reduction in lending rates soon.
On economic growth rate, Subbarao said RBI's projection for the current fiscal (2012-2013) is 6.5 per cent.
The Reserve Bank of India, which slashed the repurchase rate (repo) and savings bank rate by half a percentage point each on February 28, is certain to cut the bank rate in April.
Market players said a big upmove by the market will depend on policy action by the government to revive economic growth and corporate earnings revival.
The RBI has already hiked interest rates 12 times since March, 2010, to control inflation, which is currently hovering near the double-digit mark.
Moderating economic growth and easing inflation may prompt the Reserve Bank to halt interest rate hike in the upcoming mid-quarterly credit policy review later this month, according to analysts.
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