The Reserve Bank of India kept interest rates unchanged on Monday after cutting them in each of its previous three policy reviews, warning of upward risks to inflation posed by a falling rupee and increases in food prices.
Monetary and Liquidity Measures
On the basis of an assessment of the current macroeconomic situation, it has been decided to:
- keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4 per cent of their net demand and time liabilities; and...
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11:32 AM, Jun 17, 2013
Mumbai: The Reserve Bank of India kept interest rates unchanged on Monday after cutting them in each of its previous three policy reviews, warning of upward risks to inflation posed by a falling rupee and increases in food prices. The RBI also called for vigilance over global economic uncertainty, citing the risks of a reversal of capital flows from emerging markets. Such outflows, fueled by investor worries that the US...
11:04 AM, Jun 17, 2013
Mumbai: Softening headline inflation alone will no longer be enough to spur the Reserve Bank of India to cut interest rates at a time when it faces other pressing challenges such as a record low rupee and the risk of potentially destabilising capital outflows. The RBI is due to review monetary policy on Monday, facing the same strains erupting across much of Asia as financial markets are looking shaky even...
09:01 AM, Jun 17, 2013
Mumbai: Raing agency Fitch has revised India's rating from negative to stable. Fitch has said that fiscal deficit targets will be met, which will strengthen the rupee. The rupee on Wednesday gained 60 paise to close at 57.79 against the dollar after Fitch revised India's credit outlook. Also, heavy dollar selling by some big corporates and US dollar weakening against the euro overseas also aided the rupee, forex dealers said....
09:49 AM, Jun 12, 2013
Madrid: Malaga expressed outrage and cast themselves as "sacrificial lambs" after their appeal against a UEFA ban from continental competition over late payments to creditors was rejected on Tuesday. The decision by the Court of Arbitration for Sport (CAS) means Qatar-owned Malaga, who finished sixth in La Liga last season, cannot take up a place in the Europa League next term and eighth-placed Rayo Vallecano or ninth-placed Sevilla will compete...
10:41 PM, Jun 11, 2013
Mumbai: In a roller coaster ride, the rupee on Tuesday hit life-time low of 58.98 against dollar but erased a major part of losses to close at 58.39 after RBI intervened in the forex market to stem the slide in the local currency that caused much concern to government, markets and common man. The rupee still closed 24 paise lower at 58.39 compared to Monday's close, extending losses for fifth...
07:18 PM, Jun 11, 2013
Mumbai: Three private banks, caught in the Cobrapost sting operation, have been let off the hook with paltry penalties. The Reserve Bank of India on Monday imposed penalties on Axis, ICICI and HDFC banks after a sting operation by online magazine Cobrapost exposed many loopholes. RBI imposed a penalty of Rs 5 crore on Axis Bank, Rs 4.5 crore on HDFC Bank and Rs 1 crore on ICICI Bank. The...
06:41 PM, Jun 10, 2013
Mumbai: The rupee fell to a record low of 58 against the dollar on Monday, escalating worries about the current account deficit and complicating the task for policy makers looking to revive an economy that grew at its slowest in a decade in 2012/13. The Finance Ministry's chief economic adviser Raghuram Rajan said India would continue to take measures to curb the current account deficit, calling the rupee fall a...
03:53 PM, Jun 10, 2013
Jaipur: Pitching for cut in policy rates, country's largest bank SBI on Friday said the Reserve Bank should now focus on growth as inflation has eased. "In my opinion, this is the time to focus on growth because a lot of ... has been done for inflation control and the level of inflation is not that high now," State Bank of India Chairman Pratip Chaudhuri told reporters in Jaipur. RBI...
02:23 AM, Jun 08, 2013
Mumbai: Reserve Bank of India has extended the restriction on advance against gold on co-operative banks as well, a move aimed at curbing demand for gold. In a notification, the RBI said while granting advance against the security of specially minted gold coins sold by banks, state/central co-operative banks "should ensure that the weight of the coin(s) does not exceed 50 grams per customer'. Also the amount of loan to...
02:40 PM, Jun 07, 2013
Mumbai: The Reserve Bank of India has advised banks against selling gold coins to retail customers, Finance Minister P Chidambaram said on Thursday, a day after he raised gold import duty to try to ease pressure on India's bloated current account deficit. "I think the Reserve Bank has advised banks that they should not sell gold coins," said Chidambaram, while speaking at an event in Mumbai. He also urged banks...
05:10 PM, Jun 06, 2013
Mumbai: In the wake of ponzi schemes and chit fund scams, Reserve Bank Governor D Subbarao on Wednesday said there is a need to review the regulations governing these sectors and increase surveillance on such entities. "There is a need to review the regulatory oversight of this sector keeping in view the mandatory and relative comparative advantages of the financial sector regulators," Subbarao told a banking summit organised by the...
06:47 PM, Jun 05, 2013
New Delhi: The Reserve Bank, which issued clarifications on the new bank licence guidelines, is expected to grant new licenses by March 2014. on Tuesday, the central bank issued clarifications making it more stringent for getting new bank licence even as it allowed the aspirants to have the holding and capital structure of the bank-holding company in place within 18 months of getting the in-principle nod, instead of 12 months...
05:23 PM, Jun 04, 2013
Mumbai: The Reserve Bank of India on Tuesday extended the restrictions on gold import to other agencies in addition to banks, a moved aimed at curtailing demand for the precious metal for domestic use amid widening current account deficit. "It has now been decided to extend the provisions (of May 13 circular) to all nominated agencies/ premier/ star trading houses...accordingly, any import of gold on consignment basis by both nominated...
04:59 PM, Jun 04, 2013
Mumbai: India is likely to give new bank licences by March 31, 2014, Rajiv Takru, secretary of financial services, told a local news channel on Tuesday. On Monday, the Reserve Bank of India (RBI) said it had extended the validity of in-principle approval for new banks to 18 months from one year. More details are awaited. ...
11:32 AM, Jun 04, 2013
Mumbai: The central bank on Monday said the entities getting licences to open new banks will be given 18 months to open branches against 12 months prescribed earlier, and promoters would have to transfer their holdings to the non-operative financial holding company (NOFHC) in a stipulated period. "It has been decided to extend the validity period of the in-principle approval from one year to 18 months... to provide sufficient time...
01:21 AM, Jun 04, 2013
New Delhi: With rupee hitting 11-month lows against dollar, Reserve Bank Governor D Subbarao on Monday said it is not targeting any particular exchange rate or any band. "We do not target an exchange rate. We do not target an exchange rate band. And I believe that our actions or inactions have been consistent with our policy," he said in an interview in New Delhi. Continuing its free fall for...
09:44 PM, Jun 03, 2013
Mumbai: Making it tougher for aspirants, the Reserve Bank on Monday said it will look for very high quality applications to issue new bank permits and may not be possible to issue licences to all eligible applicants. "There is no predetermined number. RBI will be very selective while considering the applications for new bank licences. It will look for very high quality applications," the RBI said in a notification elaborating...
09:07 PM, Jun 03, 2013
Mumbai: The Reserve Bank on Monday said in-principle approval for setting up of new banks will now be valid for 18 months, up from earlier proposed one year. Issuing clarification to queries on new bank licences, the RBI said the companies which would be eligible to apply must have a public shareholding of at least 51 per cent. "..companies forming part of the Promoter Group whereof companies in which the...
08:31 PM, Jun 03, 2013
