RBI

RBI may ease rates further: Chief Economic Advisor

RBIDavos: Lauding RBI's role in helping bring down inflation, Chief Economic Advisor Arvind Subramanian said the central bank may further ease the interest rates as improvement on price front has opened the space for monetary easing.

"The way I view is that RBI has a mandate to bring down inflation and keep it low and given the inflation has been coming down, that opened up the space for monetary policy easing and RBI has begun that," said Subramanian, who was here to attend the World Economic Forum Annual Meeting.

FIIs inflow reaches Rs 21,000 crore so far in January

New Delhi - Overseas investors have pumped in a staggering over Rs 21,000 crore in Indian capital markets since the beginning of the month owing to easing inflation and rate cut by Reserve Bank of India (RBI).

Foreign Institutional Investors (FIIs) have bought shares worth Rs 5,992 crore (USD 977 million) till January 23, while bought debt worth 15,336 crore (USD 2.5 billion) taking the total investment to Rs 21,328 crore (USD 3.45 billion), latest data with Central Depository Services Ltd (CDSL) showed.

RBI cuts interest rate by 0.25% to 7.75%

RBIMumbai: Encouraged by softening inflation, the RBI on Thursday decided to cut the benchmark interest rate by 0.25 percent to 7.75 percent with a view to boost growth.

The decision to reduce repo rate comes a fortnight ahead of the scheduled date of monetary policy announcement on February 3.

"It has been decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 8.0 percent to 7.75 percent with immediate effect," Reserve Bank said in a statement today.

The RBI has been keeping the benchmark interest rate at elevated level at 8 percent since January 2014.

RBI calls for protector for bankers to fast-track financial decision making

Raghuram RajanPune, Jan 5 : Reserve Bank of India (RBI) Governor Raghuram Rajan called for the government to afford greater protection to bankers, stating that such a step will be necessary in order to fast-track financial decision making.

"If officers are hauled up for [fast-track financial] decisions, it will lead to delay in good decisions because of avoidance of risk on the part of the banker," Rajan said while addressing a two-day bankers ' retreat here.

Rajan further called for the cleaning up of bad debts of banks and the restructuring of other possible non-performing assets (NPAs) within a year in order to put the economy back on track.

RBI directs payment firms to display company name in products

RBIMumbai: Reserve Bank has directed entities offering services such as e-wallets, smart cards and White Label ATMs to prominently display their company name in products to ensure transparency.

"All the information available to the public regarding the product, whether as advertisements, on website, application form, etc. Should prominently carry the name of the entity/company authorised by RBI," Reserve Bank said in a notification.

RBI said it came to its notice that many authorised entities using specific brand names for their products like e-wallets, smart cards, WLAs were not disclosing their own company name in the information available to the users.

RBI pitches for structural reforms; sees 6% inflation in 2015

RBIMumbai: Pitching for structural reforms to reinforce investor confidence, RBI on Monday said falling inflation and political stability have helped check the macroeconomic vulnerabilities, while retail inflation is expected to stabilise near 6 percent level in 2015.

The central bank, however, flagged lower revenue mobilisation this fiscal as a "major concern" and said that the asset quality remains a grey area in the banking sector.

It also sounded caution over the recent phenomenon of FIIs showing greater interest in the Indian debt markets, saying this trend can turn volatile in the wake of changes in global markets, especially in the US, the world's largest economy.

Gold imports fall sharply, fresh curbs unlikely

goldNew Delhi : The government is unlikely to put any fresh restrictions on gold imports, as the inward shipments have fallen sharply this month despite recent easing of some curbs by RBI.

In the first fortnight of December, the gold imports have fallen to about 25 tonnes, from 150 tonnes during entire November. In December 2013, gold imports stood at around 30 tonnes.

On November 28, RBI abolished the controversial '80:20' gold import scheme, which was put in place in August last year to curb high gold inflows as it was felt that rising imports of the precious metal were contributing significantly to the widening current account deficit.

RBI may cut policy rates by 0.25% in February: Bank of America

New Delhi - The Reserve Bank is likely to cut rates by 0.25 percent in February's monetary policy review as its target of six percent inflation by January 2016 is likely to be met, Bank of America Merrill Lynch has said.

"In our view, inflation is well set to achieve RBI's eight percent January 2015 and six percent January 2016 CPI inflation targets. We continue to expect Governor Raghuram Rajan to cut rates by 25 basis points on February 3," the investment banking major said in a note.

RBI extends deadline to exchange pre-2005 notes till June 30

RBI extends deadline to exchange pre-2005 notes till June 30Mumbai : The deadline for exchanging pre-2005 currency notes of various denominations, including Rs 500 and Rs 1,000, has been extended by another six months till June, 30, 2015.

"The Reserve Bank of India has stated that the public can do so till June 30, 2015. Earlier in March 2014, it had set the last date for public to exchange these notes was January 1, 2015," the RBI said in a statement.

The central bank clarified that all such notes will continue to remain a legal tender. These notes can be exchanged for their full value, it added.

'RBI to ease rates by 50 bps in 2015, first cut likely in Feb'

New Delhi - The RBI is expected to lower policy rates by 50 basis points in 2015 with the first rate cut likely as early as February next year on the back of slowing inflation, global brokerage firm Morgan Stanley said.

The report said the magnitude of rate cuts would depend on the trajectory of inflation, which is expected to reach 6 percent level on a sustained basis by March 2015.

"In our base case, we expect inflation to reach the 6 per cent level on a sustained basis by March 2015 (same as the RBI's expectation). We therefore assume 50 basis points policy rate cuts in 2015 in our base case," Morgan Stanley said in a research note.

RBI maintains status quo; indicates rate cut in early 2015

Mumbai - Disappointing industry and the government, RBI Tuesday chose not to go for a rate cut for fifth time in a row but held out a promise of a softening stand in the next review due in February.

While keeping the short term lending (repo) rate unchanged at 8 percent, RBI Governor Raghuram Rajan said that "a change in the monetary policy stance at the current juncture is premature".

"However, if the current inflation momentum and changes in inflationary expectations continue, and fiscal developments are encouraging, a change in the monetary policy stance is likely early next year, including outside the policy review cycle," he said.

Interest rates to remain unchanged, says RBI

RBIMumbai, Dec 2 : The Reserve Bank of India (RBI) on Tuesday decided to keep interest rates unchanged and to stay focussed on containing inflation.

The RBI kept the repo rate at 8 per cent at its policy review, and there was no reduction.

The reason for the interest rates being unchanged was because of the less than positive economic growth that was expected during Prime Minister Narendra Modi's first six months in power.

RBI Governor Dr. Raghuram Rajan has reportedly kept the rates same, as a slowdown in economic growth was not as bad as earlier feared.

RBI tightens norms for NBFCs; revokes registration suspension

RBI tightens norms for NBFCs; revokes registration suspensionMumbai: Tightening norms for non-banking financial companies (NBFCs), RBI Monday raised capital adequacy requirement and net owned fund limit, among others, with an objective to mitigate risks in the sector.

With a view to streamline the regulations for the sector, RBI also revoked temporary suspension on issuance of Certificate of Registration (CoR) to companies that want to conduct business of non-banking financial institution (NBFI).

As per the latest directives, RBI has raised the limit for NBFCs to maintain the Net Owned Fund (NOF) requirement to four times by 2017 to Rs 2 crore.

We have political will to undertake financial reform: Raghuram Rajan

Raghuram RajanNew York: Underscoring the need for financial sector reforms, Reserve Bank of India Governor Raghuram Rajan has stressed that the "time to deliver begins now" and there is political will to undertake reforms and improve India's economic growth.

"Financial reform is not difficult - we have the political will to improve," the Indian Consulate here tweeted the RBI governor as saying during an event on Wednesday.

RBI seen holding rates until Q2 2015, then ease

RBIBangalore - The Reserve Bank of India will probably wait until the second quarter of next year to loosen policy as it wants to cool inflation before trying to spur growth, a Reuters poll found ahead of a policy review meeting next week.

All but three of 46 economists surveyed over the past week said the bank would leave its key repo rate unchanged at 8.0 percent when it meets on Sept. 30.

The survey showed that the RBI is also unlikely to alter either the statutory liquidity ratio (SLR), setting banks` minimum bond holding requirements, or the cash reserve ratio (CRR) that sets the percentage of depositors` balances that banks must keep with the central bank.

Blackmoney: SIT empowers ED to check huge forex violations

Black_MoneyNew Delhi - To check large-scale foreign exchange violations and generation of slush funds, a Special Investigation Team (SIT) on black money has asked RBI and Enforcement Directorate (ED) to jointly take on cases of huge exports outstanding.

The SIT, for the first time, has authorised the ED to obtain regular information on export outstanding amount of more than Rs 100 crore, a data till now shared only by the banking regulator with investigative and enforcement agencies like DRI and Customs.

RBI asks banks to set timeline to process loans

RBI asks banks to set timeline to process loansMumbai: To expedite credit decision, the Reserve Bank Monday asked banks to set a timeline for disposal of loan proposals but did not ascribe a particular time frame for the same.

"Banks should clearly delineate the procedure for disposal of loan proposals, with appropriate timelines, and institute a suitable monitoring mechanism for reviewing applications pending beyond the specified period," RBI said in a notification.

Income tax dues can be paid at RBI offices, 29 banks

Income tax dues can be paid at RBI offices, 29 banksMumbai - Reserve Bank has asked the public to pay their income tax dues well in advance so as to avoid standing in long queues and stated that 29 agency banks are also authorised to accept such payments.

"Pay IT dues in advance at RBI or at authorised bank branches... These will obviate the inconvenience involved in standing in long queues at the Reserve Bank offices," RBI said in a notification Tuesday.

It said the assessees can use alternate channels like select branches of banks or the facility of online payment of taxes offered by these banks.

RBI sees no big impact of weak monsoon on growth, farm output

RBI sees no big impact of weak monsoon on growth, farm outputMumbai : The impact of weak monsoon so far this year on India's farm production and economy is likely to be limited, the central bank said today, as rainfall levels have improved considerably over the past one month.

In its annual report for 2013-14 released Thursday, the RBI said even if the rainfall is normal in rest of the monsoon season (June to September), some deficiency will stay but it will not have a debilitating impact on the economy.

RBI asks bankers to be innovative on home loans

RBIMumbai : Reserve Bank Deputy Governor R Gandhi Wednesday asked lenders to be more financially innovative in designing home loan products and suggested creation of a periodic deposit-linked facility.

"There is a need with respect to financial innovation, with respect to loan products. One such product would be savings-induced home loans or a home loan deposit," Gandhi told a gathering of realty players here.




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