The industry leaders in India have welcomed the decision by the Reserve Bank of India (RBI) to reduce its key interest rate in order to boost slowing economic growth.

RBI) has reduced its key interest rates for the first time in three years in order to boost the slowing economic growth on Tuesday. Experts said that the interest rate might soon fall in housing, automobile and commercial loans.

Kolkata, Sep 20 : Economists have started to question the hawkish stance of India's central bank that has seen as many as 12 rate hikes in the past 20 months, and some feel the steps have hampered the growth of sectors that have not contributed to inflation.

But others see no long-term link between inflation and growth and back the rate hikes.

Mumbai, Aug 23 : The posts of chairman and chief executive officer (CEO) of public sector banks should be bifurcated to ensure effective checks and balances, Reserve Bank of India Governor D. Subbarao said Tuesday.

"We will discuss this issue with the government," Subbarao said while addressing a conference organised here jointly by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Bank's Association.

New Delhi, Aug 9 : Even as policymakers, including those at the Reserve Bank of India (RBI), sought to downplay the impact of US debt ratings downgrade on domestic economy, experts differ on what's in store due to the crises in the world's largest economy.

Take the case of crude oil. One set of experts say fuel prices could go up if investors move out of US treasury markets to commodities, but others feel the prices may actually fall, since a further slowdown in the global economy can temper demand.

New Delhi, Aug 9 : The government Tuesday approved the extension of Reserve Bank of India Governor D. Subbarao's tenure by two years, which officials said could be because of the need to maintain stability at the central bank amid global economic turmoil.

"The Prime Minister has approved the extension of the term of Dr. D. Subbarao as Governor of the Reserve Bank of India for a further period of two years with effect from Sep 5, 2011 up to Sep 4, 2013," said a statement from the Prime Minister's Office.

Mumbai, Aug 8 : The Reserve Bank of India (RBI) Monday said the crisis emanating from downgrading of the US sovereign debt rating would have only limited impact on India and highlighted the Indian economy's resilience amid the global financial crisis.

Mumbai, Aug 5: Hundreds of depositors in Maharashtra Friday demanded their money back from a bank taken over by the Reserve Bank of India (RBI).

The depositors gathered outside the Veershaiva Co-operative Bank's branch in suburban Andheri in north Mumbai.

The bank collapsed due to various reasons, including overtrading and non-performing assets, sources said.

People demanded that the bank return their money but bank officials said that the accounts were frozen.

To verify the mounting turbulence in Andhra Pradesh subsequent to the reports of the microfinance organization’s purportedly coercive performances, the state government has permitted a unique decree to manage the rates of interest charged by these lenders.

Microfinance institutions widen miniature loans to rustic poor. The purpose of the decree is to compress down on unfettered lending. The state government has expressed that it will declare a complete financial enclosure package that shall facilitate renovation of advanced interest rates on loans to an inferior rate.

The Reserve Bank of India (RBI) has revealed via its last-week-released statistics that the productivity of the employees of Indian banks has seen a notable increase during the last five-year period.

Specifically speaking, the RBI report, titled ‘A profile of banks 2008-09,’ states that the average business and profits per employee for Indian banks has witnessed a more than twofold increase in 2008-09 vis-à-vis the 2004-05 figures.

The Reserve Bank of India (RBI) has increased its foreign exposure in overseas securities by investing more amounts in overseas bonds during last half year. The move was taken despite declining foreign exchange reserve during the period. The country's forex reserve stood at $277.3 billion at the end of September 2008, while amount in overseas securities was recorded at $111.2 billion.

The apex bank invested $134.8 billion in securities out of the total foreign currency assets of $241.4 billion, according to Half Yearly Report on Foreign Exchange Reserves, released by the bank.