MPC likely to propose 0.25 percent rate cut

MPC likely to propose 0.25 percent rate cut

New Delhi [India], Dec 6 : The meeting of the six-member Monetary Policy Committee (MPC) will begin today amid widespread expectations of at least 0.25 percent rate cut in policy rates to cushion the impact of demonetisation.

This will be the second meeting of the MPC headed by RBI Governor Urjit Patel after October, where the central bank had announced a rate cut of 0.25 percent to 6.25 percent.

This will be the first monetary policy review after demonetisation of old Rs. 500 and Rs. 1,000 currency notes, following which banks witnessed surge in deposits.

According to the banking sector, it's difficult to predict what the monetary policy committee will now decide.

"There are chances of like 25-50-basis point cut by the RBI," said SBI Managing Director Rajnish Kumar.

RBI allows banks to deposit old currency notes in district chests

RBI allows banks to deposit old currency notes in district chests

Mumbai [India], Nov. 28 : The Reserve Bank of India (RBI) has allowed lenders to park old 500 and 1,000 rupee currency notes in currency chests at the district level in view of mounting deposits due to the ongoing domonetisation drive.

In a statement, the RBI said a currency chest operating at the point to be called Designated Chest -DC will be required to operate a separate vault -- to be named Chest Guarantee Vault CGV as an extended arm of it.

In its notification, the RBI said banks not having a currency chest will deposit such notes in sealed boxes and will get the value of the notes to the credit of their current account with the chest branch.

Counter exchange of old currency available at RBI counter

Counter exchange of old currency available at RBI counter

New Delhi [India], Nov. 25 : The Reserve Bank of India (RBI) on Friday announced that the exchange of Rs. 500 and Rs. 1000 currency notes will continue to be available at its counters up to current limits per person as hitherto.

However, such exchange facility will no longer be available at other banks' counters.

On Thursday, the Centre announced that there will be no counter exchange of old Rs. 500 and Rs. 1000 currency notes after November 24 midnight.

However, certain exemptions relating to cancellation of legal tender character of old currency notes has been extended up to December 15, including for the payment of current and arrears dues to utilities which will be limited to only water and electricity.

19 states raise Rs. 26,390 crore through bonds auction

19 states raise Rs. 26,390 crore through bonds auction

New Delhi [India], Nov 9 : While releasing the results of auctions of 4/5/6/10 years state development loans (SDLs) of the state governments, the Reserve Bank of India in its statement has announced that nineteen states including Andhra Pradesh, Assam and Gujarat will raise Rs. 26,390 crore through bond auction.

The notified amount for the auction by the 19 states was Rs. 25,190 crore, but Andhra Pradesh, Tamil Nadu and Uttar Pradesh retained an additional Rs. 300 crore, Rs. 500 crore and Rs. 400 crore, respectively.

In the non-competitive bid segment, 147 bids worth Rs. 1,034.45 crore were received and all were accepted.

The states which auctioned the bonds are Haryana, Himachal Pradesh, Jharkhand Karnataka and Kerala, among others.

Indian banks' loans rose 10.4 pct in two weeks to Sept. 30, says RBI

New Delhi [India], Oct 15 : The Reserve Bank of India (RBI) in its weekly statistical supplement released on Friday noted that Indian banks' loans rose 10.4 percent in two weeks to September 30 from a year earlier.

The report also stated that deposits rose 11.3 percent. Outstanding loans rose 2.11 trillion rupees (USD31.56 billion) to 75.21 trillion rupees in the two weeks to September 30.

Non-food credit rose 2.21 trillion rupees to 74.35 trillion rupees, while food credit fell 105.30 billion rupees to 854.60 billion rupees. Bank deposits rose 3.52 trillion rupees to 101.43 trillion rupees in the two weeks to September 30.

Reserve Bank cuts repo rate by 25 bps to 6.25 percent

New Delhi [India], Oct 4 : The Reserve Bank of India (RBI) on Tuesday announced a rate of by 25 basis points to 6.25 percent, as a newly set up panel felt that inflation levels were low enough to reduce loan rates.

The decision of the monetary policy committee (MPC), headed by new RBI governor Urjit Patel, will likely cheer business leaders and households as cheaper loans will aid investment and spending.

The six-member Monetary Policy Committee, which voted 6-0 in favour of a cut, noted that an improvement in sowing along with supply management measures will improve the food inflation outlook.

Retail inflation accelerates in January, but stays below RBI's target

Retail inflation

New Delhi, Feb. 13 - India's retail inflation accelerated in January after shifting to a new base year for calculating prices, but stayed well below the Reserve Bank of India's (RBI) target, bolstering prospects for further interest rate cuts.

Consumer prices rose an annual 5.11 percent compared with a 4.28 percent gain in December, the statistics department said after it changed the base year for measuring inflation to 2012 from 2010.

Under the old series, inflation was reported at five percent in December.

Forex kitty high, but may not cushion extreme volatility: RBI

Forex kitty high, but may not cushion extreme volatility: RBI

Mumbai: RBI Deputy Governor H R Khan on Tuesday said though the country's forex kitty was at an all time high of USD 330 billion, there should be no complacency as no amount of reserves may be enough to fight extreme volatility.

"Foreign currency reserves have improved. Right now we're at USD 330 billion, highest ever. But there is also a view that no amount of foreign exchange reserves can cushion when there is extreme volatility or external shocks," Khan said, days after weekly data showed an over USD 6 billion jump in forex to an all-time high.

"We are much better placed. In terms of fool proofing our balance sheet we have done quite a few things," Khan said, referring to the jump in reserves.

Vodafone India applies for payment bank licence

Vodafone IndiaNew Delhi: Vodafone India on Tuesday said it has applied for a payment bank licence and is exploring options for partnerships for the proposed banking venture.

"Vodafone has filed an application with Reserve Bank of India (RBI) for the Payments Bank licence. We are exploring options for partnerships," the company said in a statement.

Corporates, including RIL, Aditya Birla, Bharti Airtel and Future Group, are among at least a dozen entities that have also sought licence from RBI to set up payment or small finance banks, two niche banking models introduced to push financial inclusion and saving habits.

Indians can invest up to $2,50,000 annually overseas

RBIMumbai: Encouraged by foreign exchange reserves touching record levels, the Reserve Bank on Tuesday doubled the annual overseas investment ceiling for individuals to USD 2,50,000.

"On a review of the external sector outlook and as a further exercise in macro-prudential management, it has been decided to enhance the limit under the Liberalised Remittance Scheme (LRS) to USD 2,50,000 per person per year," the RBI said in its Bi-Monthly Monetary Policy Statement.

RBI may cut interest rate further in policy review this week

New Delhi/Mumbai - The RBI may cut its policy rate further by 0.25 percent this week to boost growth, as inflation remains under control and fiscal situation appears better following a record CIL disinvestment.

RBI, which last month announced a surprise rate cut of 25 basis points after maintaining a hawkish monetary stance for 20 months, is scheduled to undertake its sixth bi-monthly monetary policy review, 2014-15 on Tuesday, February 3.

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.

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