RBI

Stable exchange rate is important: RBI governor

D-SubbaraoChennai, August 1 : The Reserve Bank of India (RBI) will continue its cash-tightening measures till the volatility in the foreign exchange market is controlled, said its governor Thursday stressing the importance of a stable exchange rate.

"Having a stable exchange rate is important," D. Subbarao said here while delivering the R. Venkataraman endowment lecture at the Madras School of Economics on 'Dilemmas in Central Banking'.

He said the recent cash tightening measures will not impact growth though there might be short-term pain.

The banking regulator said it is important to bring down inflation.

Yes Bank first to hike rates after RBI move

Yes-BankMumbai, July 31 :  Yes Bank, the country's fourth largest private sector lender, Wednesday hiked lending and deposit rates, a day after the Reserve Bank of India (RBI) kept key policy rates unchanged and cut growth forecast.

Yes Bank has become the first lender to hike rates. Others may follow as the RBI move has tightened liquidity in the markets.

Yes Bank said it will hike its deposit rates by 0.25 percent to 0.5 percent in select tenors effective from Aug 1.

"This provides an opportunity for retail depositors to lock in higher rates on term deposits," the bank said in a statement.

Rupee slips below 60 after Subbarao cites various risks to economy

Rupee slips below 60 after Subbarao cites various risks to economyThe partially convertible rupee fell below the psychological mark of 60 against the US dollar in afternoon trade on Tuesday, after Reserve Bank of India (RBI) governor Duvvuri Subbarao said cited various risks that could hamper India's economic growth.

In Its first quarter monetary policy review, the RBI refused to make any change in its key policy rates, while cutting its forecast for economic growth for the financial year 20113-14 from 5.7 per cent to 5.5 per cent.

RBI likely to keep interest rates unchanged

Reserve-Bank-of-IndiaMumbai, July 29 : The Reserve Bank of India (RBI) is likely to keep key rates intact in its policy review Tuesday, with the weakness in the rupee adding to the central bank's growth-inflation dilemma, experts said.

"It is widely anticipated that the central bank would maintain status quo on the policy front," Federation of Indian Chambers of Commerce and Industry (FICCI) president Naina Lal Kidwai said.

The RBI is scheduled to announce first quarter review of the monetary policy for 2013-14 Tuesday.

Borrowing costs for leading companies soar to more than 10%

Borrowing costs for leading companies soar to more than 10%A tight funding environment engineered by the Reserve bank of India (RBI) to support weak rupee has pushed borrowing costs for big businesses to more than 10 per cent.

Anil Ambani-led Reliance Capital Ltd. recently sold three-month commercial paper at a rate of 10.35 per cent, which was significantly up from 8.95 per cent that the company paid for receiving one-year funds in June this year.

RBI announces more steps to curb rupee slide

RBIMumbai, July 23 : The Reserve Bank of India (RBI) Tuesday announced more steps to curb slide in the value of the rupee, that has lost almost 10 percent of its value in the past two months.

The RBI announced measures to further tighten liquidity in the banking system that will help stabilise the falling rupee.

"Over the last two months, the Reserve Bank of India has undertaken several measures to contain the volatility in the foreign exchange market. Among them, some measures intended to check excessive speculation adding to undue volatility in market conditions," the RBI said.

Kumar Mangalam Birla resigns from RBI board

Kumar-Mangalam-BirlaMumbai, July 23 : Aditya Birla Group chairman Kumar Mangalam Birla has resigned from the Reserve Bank of India (RBI) board to avoid any conflict of interest as one of his group firm is in the race for a new banking licence, a company spokesperson said Tuesday.

IANS had first reported the issue of possible conflict of interest earlier this month after group firm Adiya Birla Nuvo applied for a new banking licence.

Birla was a member of the RBI's central board, the apex policy making body of the country's central bank.

India's forex reserves up by $21 mn

India-forexMumbai, July 20 : India's foreign exchange (forex) reserves increased by $21.1 million to $280.188 billion for the week ended July 12, according to data released by the Reserve Bank of India.

The reserves had declined by $4.47 billion to $280.167 billion for the week ended July 5.

The foreign currency assets (FCA) - the biggest component of the forex reserves - grew by $33.5 million at $252.13 billion, the weekly statistical supplement of the central bank shows.

The FCA had plunged by $1.28 billion at $252.10 billion in the previous week.

RBI opens Rs.25,000 crore window for mutual fund industry

rbiMumbai, July 17 : The Reserve Bank Wednesday opened a three-day borrowing window of Rs. 25,000 crore to help mutual funds meet their financial needs.

The central bank said that "as a contingency measure", it had decided to conduct a special repo under which banks could raise funds totalling Rs. 25,000 crore at 10.25 percent interest.

RBI targets short-term liquidity to curb rupee volatility

RBI targets short-term liquidity to curb rupee volatilityIn a bid to curb drastic volatility in rupee, the Reserve Bank of India (RBI) on Monday targeted short-term rupee liquidity, saying cheap liquidity was one of the main causes for the rupee hitting record lows against the U. S. dollar.

The central bank said that it was providing banks with funds at 7.25 per cent (repo rate) from the liquidity adjustment facility (LAF). The central bank now restricted the amount that banks can borrow from the LAF window to 1 per cent of their deposits or net demand & time liabilities (NDTL).

Inflation data will be factored in RBI policy: Subbarao

D-SubbaraoNew Delhi, July 15 : The Reserve Bank of India (RBI) will take into account the recent increase in inflation while formulating the policy later this month, Governor D. Subbarao said Monday.

“Of course, we will take into account the inflation numbers,” Subbarao told reporters after meeting Finance Minister P. Chidambaram at his North Block office here.

According to data released by the commerce ministry here, wholesale price based inflation snapped fourth months of easing trend and increased to 4.86 percent in June as compared to 4.7 percent in the previous month.

RBI penalises 22 banks for KYC violation, money laundering

RBIMumbai, July 15  : The Reserve Bank of India (RBI) Monday said it has penalised 22 banks, including the State Bank of India and Punjab National Bank, for violation of know your customer (KYC) norms and money laundering.

The central bank said it had penalised the banks after carrying out scrutiny of books of accounts, internal control, compliance systems and processes of the banks.

The country's largest lender, State Bank of India, has been fined Rs. 3 crore. The penalty on Punjab National Bank is Rs. 2.5 crore.

RBI imposes restrictions on banks to curb rupee slide

RBIMumbai, July 9 : The Reserve Bank of India (RBI) Tuesday imposed restrictions on speculative trading in currency by banks, in a bid to control the slide of rupee, that has lost almost 10 percent of its value this year.

The central bank has put restrictions on banks for trading in currency futures and options with immediate effect.

“On a review of the evolving market conditions, it has been decided that authorised dealers category banks should not carry out any proprietary trading in the currency futures or exchange traded currency options markets,” the RBI said.

RBI has no exchange rate target for rupee: Subbarao

D-SubbaraoChennai, July 4 : The Reserve Bank of India (RBI) does not have any target for rupee level but will use all the instruments it has to reduce volatility, Governor D. Subbarao said Thursday.

He also said the bank's monetary policy transmission is not agile as the commercial banks are reluctant to pass on the benefit of interest rate reduction to borrowers and not all the applicants for a banking licence will get one.

Speaking to reporters here, Subbarao said the bank has no exchange rate target but would use all the instruments it has to reduce the Indian rupee's volatility.

UAE Exchange India plans bank in India

UAE-Exchange-IndiaMumbai, July 1 : Non-banking finance company UAE Exchange India has applied to the Reserve Bank of India for a banking licence, a top official said here Monday.

"We are present in India since 1999 and also have a strong presence in all the countries from where NRIs remit money to their families in India. Our rich infrastructure, technological prowess and wide reach across the nation are our strengths. If given the licence, we would start our banking operations within the stipulated 18 months," said UAE Exchange India Chairman B. R. Shetty.

Muthoot Finance applies for banking licence

Muthoot-FinanceKochi, July 1 : The promoters of Muthoot Finance Limited, India's largest gold loan company, Monday submitted an application to the Reserve Bank of India for a license to offer full-fledged banking services.

The application is in accordance with the recent guidelines issued by the RBI for licensing of new banks in the private sector, said the firm.

Managing director George Alexander Muthoot said the application for a banking license is indeed a major milestone for the Muthoot Group.

RBI relaxes ECB norms for affordable housing developers

RBI relaxes ECB norms for affordable housing developersThe Reserve Bank of India (RBI) on Monday relaxed external commercial borrowing (ECB) norms for raising foreign currency loans for low-cost affordable housing projects.

The central bank relaxed the minimum experience norm by two years. It means residential project developers with just three years of experience are now eligible to raise loans through the ECB route. Previously, they had to have a minimum five-year experience.

India's forex reserves up $982 million

India-forexMumbai, June 22 : India's foreign exchange (forex) reserves increased by $982.3 million to $290.65 billion for the week ended June 14, according to data released by the Reserve Bank of India.

The reserves had risen by $1.77 billion to $289.67 billion for the week ended June 7.

The foreign currency assets (FCA) - the biggest component of the forex reserves - grew by $962.5 million at $261.08 billion, the weekly statistical supplement of the central bank shows.

The FCA had increased by $1.61 billion at $260.12 billion in the previous week.

Conducive climate for private investment needed to spur growth: RBI

RBIMumbai, June 17 : The Reserve Bank of India Monday called for a conducive environment for private investment and faster clearance of projects to stimulate economic growth which slowed to a decade low of 5 percent in the last fiscal.

"Key to reinvigorating growth is accelerating investment by creating a conducive environment for private investment, improving project clearance and implementation and leveraging on the crowding-in role of public investment," the central bank said in the mid-quarter monetary policy review.

Voicing concern, it said all constituent categories of industry have slowed, with a persistent contraction in mining activity.

Higher food inflation upping overall inflation: RBI

food-inflationMumbai, June 17 : Higher prices of foodstuff such as cereals and vegetables continue to put pressure on India's overall inflation rate, the Reserve Bank of India (RBI) said Monday.

Elevated food inflation, particularly in respect of cereals and vegetables, "sustained upside pressures on overall inflation," the RBI said in its mid-quarter review of the monetary policy.




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