'Wages have not risen. Rural wages have stagnated. The growth was 0.7 per cent last year. For casual and irregular labour, the wage growth is negative.'
The Reserve Bank of India (RBI) Governor Sanjay Malhotra is now confronting the classic growth-inflation tradeoff, a situation exacerbated by the West Asia war, which threatens to end the 'goldilocks period' of low inflation and robust growth.
Ahead of the first quarterly review of credit policy on Tuesday, RBI Governor D Subbarao on Friday met Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee to review the macro economic situation.
The Reserve Bank of India (RBI) is set to revise its directives for bank boards, aiming to alleviate operational burdens and enable them to concentrate on crucial policy and strategic decision-making, thereby enhancing corporate governance in the Indian banking sector.
RBI Governor D Subbarao explains the rationale for the moves announced in the second quarter review of the monetary policy in an interview with Sidhartha. Excerpts:
The primary objective of introduction of polymer notes was to increase its life and not to combat counterfeiting.
The Bharatiya Janata Party (BJP) on Tuesday welcomed the appointment of noted economist Raghuram Rajan as RBI governor but advised him not to compromise on the autonomy of the institution or get cowed down by the government.
A day after Chidambaram asked RBI to speed up the process of issuing new bank licences, Subbarao said last Friday that it would not be possible without fulfilling the enabling conditions for the same.
'You have to get private investment to somewhere between 35% to 36% of GDP. It is hovering about 30%-31%.'
Infosys co-founder Nandan Nilekani predicts that large corporations in India will lose jobs due to automation and AI, while millions of small businesses will drive future employment growth. He advocates for deregulation, simplified business interfaces, and digital platforms to support small entrepreneurs and a gig economy workforce.
Considering the economic downturn, the banking sector should help strengthen the cooperative sector to encourage small and medium industries and create jobs, Chavan said.
He will be the first bureaucrat to head the central bank in almost five years.
Shrugging off concerns over the depreciation of rupee, the RBI has cut interest rate by 25 basis points to 5.25 per cent in a bid to further bolster economic growth, which rose to a six-quarter high of 8.2 per cent in the second quarter of the current financial year.
The increasing use of models, algorithms, and code across the financial industry is reshaping how outcomes are generated. However, their limitations, such as explainability, embedded bias, and model drift may not be immediately apparent and may emerge only as these technologies gain scale, warns RBI deputy governor Shirish Chandra Murmu.
Indian stock market indices closed on a mixed note, with the Sensex gaining 374 points driven by buying in Reliance Industries and ICICI Bank, while the Nifty remained flat. This divergence is attributed to a new Closing Auction Session (CAS) mechanism introduced by stock exchanges, impacting market liquidity and price discovery.
Take the Rediff Biz Quiz and find out how much you know about the governors of the Reserve Bank of India.
After the e-mail was received, the RBI officials alerted the police.
The RBI seems to be acknowledging that all deposits are not equal -- a deposit with a lower run-off assumption is inherently more valuable than one that could disappear overnight, points out Tamal Bandyopadhyay.
Dr Raghuram Rajan's departure holds lessons for all, be it sections of the media, politicians or the people themselves. We need to learn how to value and retain talent. At the same time the talented must realise that talent alone does not ensure the top job, says Sanjeev Nayyar.
Keeping KYC information accurate and current should, therefore, be seen not merely as meeting a regulatory requirement, but as an important part of safeguarding one's own financial identity and safety, explains RBI Deputy Governor J Swaminathan.
'People who come from IMF-World Bank backgrounds have no dynamism at all,' Subramanian Swamy said.
India's retail inflation, measured by the Consumer Price Index (CPI), rose to 4.45 per cent in July, up from 4.38 per cent in June, primarily due to higher food prices, particularly onions and ginger. This marks the second consecutive month the inflation rate has remained above the Reserve Bank's median target.
MNS president Raj Thackeray questions the fuel consumption during recent election campaigns, asking if austerity measures are only meant for the common people.
Shaktikanta Das is a master of the finest balancing act who listens to all but takes his own decisions, discovers Tamal Bandyopadhyay.
The Indian government has extended the Reserve Bank of India's (RBI) mandate to maintain retail inflation at 4 per cent, with a tolerance band of 2 per cent on either side, for another five years until March 2031.
Tension between the government, specially the finance ministry, and RBI is as old as the central bank itself.
Making light of his critics, he also said there are people who send him 'anonymous thank you notes' even when he on a plane.
After a 25 basis point rate cut in December, the RBI on Friday decided to pause on the policy rate front amid geopolitical uncertainties.
The Reserve Bank of India (RBI) has introduced stricter timelines for banks to process inward cross-border remittances, aiming to reduce delays in crediting funds to beneficiaries by mandating immediate customer intimation and more frequent nostro account reconciliation.
Patel, 55, who took over as the 24th Governor of the central bank on September 5, 2016, had the shortest tenure since 1992.
The RBI Governor, however, added it was 'difficult to say when that will take place and in what shape it will roll out'.
The governor made it clear that the RBI is aware of what's happening and acts accordingly, but doesn't make a noise about that, points out Tamal Bandyopadhyay.
The RBI Governor received the email on February 23 in which the sender threatened to harm Patel and his family if he did not quit, a police official said.
'Once an artist, always an artist. That identity, I realised about myself only when I stopped working.'
Summer blockbusters spill on to June, as theatres line-up delayed releases at the box office. The month has a good mix of movies, and Joginder Tuteja lists your options.
Growth is coming from sectors which are interest rate-sensitive, says D Subbarao.
Hailing the announcement of Raghuram G Rajan as the new RBI Governor, India Inc on Tuesday said the appointment of the former IMF Chief Economist will help bring the economy back on growth path.
Vijay Mallya owes several banks thousands of crores of rupees which he had taken as loans for his businesses including the now defunct Kingfisher Airlines.
There's no point in having a brilliant RBI governor if politicians do not listen to him.
After Raghuram Rajan leaves, the world for the succeeding RBI governors will be distinctly different.
