RBI's exercise will take into account standards of governance, the viability of the payment bank (PB) business model, and changes, if any, if needed.
The Financial Inclusion Advisory Committee under RBI Deputy Governor K C Chakrabarty is expected to suggest appropriate regulatory framework to ensure that financial inclusion and financial stability move in tandem, the RBI said in a statement.
A quarter of managers to retire in 3 years; new private banks also seen as threat.
Whistle-blowing website Cobrapost.com on Saturday slammed the clean chit given by the Reserve Bank of India to the money-laundering practices exposed by it in ICICI Bank, HDFC Bank and Axis Bank. The website had revealed how the top private banks in India helped encouraged money laundering by helping traders convert black money to white.
State Bank Chairman Pratip Chaudhuri's call last week for abolishing the mandatory cash reserve ratio had attracted a sharp reaction from RBI Deputy Governor K C Chakrabarty. CRR is the amount of deposits that banks park with the RBI as a prudential measure without earning interest on it.
Chakrabarty was asked whether the RBI is contemplating a change in the Know Your Customer norms in the wake of news portal Cobrapost in a sting operation allegedly showing readiness by some officials of ICICI Bank, HDFC Bank and Axis Bank to put unaccounted money into investment products.
Since taking over at RBI on September 4, Governor Raghuram Rajan has twice hiked the repo rate -- at which the central bank lends to banks -- to 7.75 per cent, seeking to tame inflation.
Deputy Governor K C Chakrabarty says monetary policy to ease once inflation comes down.
It feels there is enough liquidity to take care of the lending activities of the banking system.
Aviation companies, led by flamboyant Vijay Mallya-promoted Kingfisher Airlines, have been witnessing stress and it has also impacted their debt servicing, with some accounts turning non-performing assets.
Now SLR has come down to 23 per cent, CRR is 4.5 per cent.
In its quarterly monetary policy review, RBI had last month retained the CRR at 4.75 per cent and reduced the statutory liquidity ratio -- the amount of deposits banks park in government bonds -- by 1 per cent to 23 per cent, effective August 11.
These suggestions were made by Finance Minister Pranab Mukherjee in his address at a meeting with chief executives of the public sector banks, which among others, was also attended by RBI Deputy Governor K C Chakrabarty.
Discounting the argument that gold is a hedge against inflation, the senior-most Deputy Governor wondered how a hedge instrument can offer as high as 37 per cent return year after year.
RBI slams public sector banks for the strange phenomenon of profits dipping when a new chairman takes over.
He also said that unless inflation comes down interest rate cannot be reduced.
The wholesale price-based inflation had shot passed 10 per cent in May putting more pressure on the Central Bank to hike the policy rates.
In the first two quarters of 2012-13, banks referred a record number of 74 CDR cases, involving a total debt amount of Rs 40,000 crore.
The gross NPAs of some public sector banks had crossed 4 per cent of their total assets at the end of September.
"Absolutely not," RBI told reporters when asked to comment on reports suggesting that SBI has agreed to pump more money into the airline. RBI does not oppose "professional decision" of the bank.
Sustained dollar demand from importers and banks amid weakness in the equity market and the firming dollar overseas mainly affected the rupee value against the dollar, a forex dealer said.
ICICI Bank Chairman K V Kamath on Thursday disagreed with the suggestion of SBI chief Pratip Chaudhuri that RBI should scrap CRR, saying it is part of the monetary policy and no issue can be made of it.
A day after RBI deputy governor's comment, Chaudhuri says his idea on cash reserve ratio was meant to ignite public debate
Banks generally lend to potential customers, primarily corporate clients, at much lower rates below their benchmark prime lending rate, which is often termed as sub-PLR rates.
At a time when the Micro Finance Institutions (MFIs) have drawn flak due to steep interest rates charged by them, the Reserve Bank of India (RBI) Deputy Governor K C Chakrabarty has categorically stated that such institutions cannot play any role in financial inclusion.
The Reserve Bank and the government has contingency plans to deal with the situation if Greece exits the Eurozone, RBI Deputy Governor K C Chakrabarty said on Friday.
The Reserve Bank on Friday said the option of going for another round of rate hike at its next mid-quarterly policy review in September do exist as inflationary pressure continues in the economy.
Reserve Bank of India Deputy Governor K C Chakrabarty has said that there is plan to cover all the villages through mobile banks by 2015.
After having raised its key policy rates 10 times in a year-and-a-half to check inflation which remains stubborn, the Reserve Bank of India said on Friday it has no magic wand to bring down the rate of price rise.
Idea of 5.1 per cent fiscal deficit should not deprive credit needs of the society, said Chakrabarty.
Inflation may come down to RBIs projections, if it does not we will have to take steps, RBI deputy governor K C Chakrabarty said on the sidelines of an event organised by Confederation of Indian Industry and Suresh Neotia Centre of Excellence.
The Reserve Bank on Monday ruled out full rupee convertibility as of now and said the failure of Bharti-MTN deal cannot hasten it.
Reserve Bank of India Deputy Governor K C Chakrabarty has called for changes in the rating and reporting standards of banks, saying a bank should not be rated just on the basis of its net interest margin and net profit, but from a non-financial angle too.
Defending the rate hike announced on Friday, he said short-term growth could be scarified for long-term growth. "Absolutely, we will raise rates even before the policy dates if inflation goes up. The RBI governor is continuously watching the situation. Unproductive demand has to be curtailed. It is up to banks to increase the rates, but RBI is giving the signal that there is a need for rates to go up if you have to anchor inflationary expectations," Chakrabarty said after an
The RBI, which started exiting its easy money policy stance since October last, is widely expected to hike key short-term lending (repo) and borrowing rates (reverse repo) by 0.25 per cent at its quarterly policy review on July 27.
With inflation surging into double digits, the Reserve Bank of India on Tuesday said it may take monetary action to tame the rising prices ahead of the scheduled review of the policy on July 27.
The RBI's projection for WPI inflation for this fiscal is 5.5 per cent.
The wholesale price index-based inflation, which neared double-digit level in February, has probably peaked and was likely to decline as the country expected a good winter crop and drop in oil prices, RBI Deputy Governor K C Chakrabarty told reporters on the sidelines of a function in Bangalore on Monday.
The government in its budget for the current fiscal decided to borrow Rs 4.5 lakh crore (Rs 4.5 trillion) from the market, up from Rs 3.1 lakh crore (Rs 3.1 trillion) in the previous fiscal.
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