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: Ahead of the mid-quarter review of monetary policy on Monday, the State Bank of India has said if the apex bank cannot reduce CRR rate, which is a must for lending rate cuts by banks, they should pay interest on cash reserves that banks park with the monetary authority. Incidentally, most analysts expect the RBI to hold rates during its mid-quarter monetary policy review. "If a CRR cut cannot...
02:48 AM, Jun 17, 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
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
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: 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
New Delhi: To make all-women bank a reality by October, the Finance Ministry has approached the Reserve Bank for clearance to set up the country's first such bank. "The committee set up to prepare the blueprint for all-women bank has submitted its report to the Finance Minister. We have sought in-principle approval from RBI for all women bank," Financial Services Secretary Rajiv Takru said. The first all-women bank wholly-owned by...
12:24 PM, Jun 02, 2013
Mumbai: Amid rising incidents of fraudulent investment schemes hitting investors, the Reserve Bank on Friday asked the public to carefully evaluate their decisions before depositing money with financial entities including NBFCs. The exhaustive advisory of dos and don'ts comes against the backdrop of investment schemes such as the multi-crore Saradha scam, which defrauded thousands of gullible investors in West Bengal. "The advisory is part of the Frequently Asked Questions (FAQs)...
10:37 PM, May 31, 2013
Mumbai: The rupee is at 56.47/48 versus its close of 56.38/39 on Thursday after falling to as low as 56.60 in opening deals, its weakest since June 29, 2012. Dealers say the Reserve Bank of India governor's comment on Thursday that inflation still remained high and it will take into account the current account deficit for policy decisions, weighs, as it dampens rate-cut hopes in June policy review. Domestic shares...
10:19 AM, May 31, 2013
Ahmedabad: The Reserve Bank of India's Governor Duvvuri Subbarao said on Thursday that retail inflation in India is still high. India's annual consumer price inflation slowed for the second straight month in April to 9.39 per cent, but is still higher than April's headline inflation of 4.89 per cent. ...
06:20 PM, May 30, 2013
Mumbai: The Reserve Bank of India will take into account macro economic factors and "more importantly" the current account deficit for policy decisions, Governor Duvvuri Subbarao said on Thursday. He also said high current account deficit is leading to the rupee weakening. India's current account deficit widened to a record high 6.7 per cent of GDP in the December quarter, driven by heavy oil and gold imports and muted exports,...
06:15 PM, May 30, 2013
Mumbai: India's banking system is not as strong as expected. An RBI report shows that over 30 banks have failed to follow or enforce various prescribed rules and guidelines. CNBC-TV18 has accessed the report of the audits instigated by the RBI after the Cobrapost expose, which shows that 30 banks, whether from the Public Sector, the private sector, or Foreign, have not followed the prescribed rules. It doesn't matter whether...
11:54 AM, May 30, 2013
Mumbai: The Reserve Bank on Tuesday asked lenders to disclose structure of capital instruments issued at least on a half-yearly basis along with financial earnings report. "This disclosure requirement is intended to meet the Basel III requirement to provide a description of the main features of capital instruments," said the RBI's guidelines on Composition of Capital Disclosure Requirements. These guidelines will become effective from July 1 and therefore, the first...
03:26 AM, May 29, 2013
