RBI governor Shaktikanta Das addressed the seventh SBI Banking and Economics Conclave on Saturday amid the ongoing Covid-19 crisis. The governor also spoke about on the health as well as an economic crisis which have impacted jobs badly. Covid-19 pandemic perhaps represents so far the biggest test of robustness and resilience of our economic and … Continue reading RBI governor addresses SBI Conclave: Key points

Reserve Bank of India governor Shaktikanta Das has made a case for a resolution corporation that will revive stressed banks and finance companies as an alternative to the traditional practice of merging failed institutions with stronger ones.

The Reserve Bank of India (RBI) may unveil more relief measures for some of the stressed sectors of the economy, especially in the services segment, as efforts are stepped up to help them emerge from the bruising impact of the lockdown.

Concerned over the practices adopted by some of the digital lending platforms, the Reserve Bank of India (RBI) has cracked down on them and imposed several conditions for banks and non-banking finance companies (NBFCs) that lend through them.

The government on Wednesday said all cooperative banks and multi-state co-operative banks will come under the supervision of the Reserve Bank of India, a development aimed at providing comfort to depositors of these banks. There are about 1,482 crore urban cooperative banks and 58 multi-state co-operative banks with a depositors base of about 8.6 crore.

The country’s foreign exchange reserves crossed the half-a-trillion mark for the first time after it surged by massive $8.22 billion in the week ended June 5, according to the latest data from the RBI. The reserves rose to $501.70 billion in the reporting week helped by a whopping rise in foreign currency assets.

The RBI on Friday proposed to review the guidelines on ownership, governance and corporate structure of private sector banks in the backdrop of key developments in the space in the recent years. The five-member internal working group to review the guidelines will be headed by RBI Central Board Director P K Mohanty, the central bank … Continue reading RBI to review ownership, governance of pvt banks

The Reserve Bank of India (RBI) has created a Payments Infrastructure Development Fund (PIDF) with a Rs 250-crore investment to subsidise setting up of card and e-payment infrastructure in small towns and Northeast India. The fund will have an initial size of Rs 500 crore, with the balance amount coming from card- issuing banks and … Continue reading RBI sets up Rs 500 crore fund to push e-pay

Arguing for a rate cut, RBI governor Shaktikanta Das in the meeting said there was a rising probability of a sharper loss of growth momentum in the near term. Deputy governor Michael Patra said the damage is “so deep and extensive that India’s potential output has been pushed down, and it will take years to … Continue reading At rate cut meet, RBI bosses bearish on economy

The Centre is likely to look at the option of the Reserve Bank of India (RBI) monetising the deficit in the second half of the financial year, a senior government official has said, asserting that the Centre is seriously examining the issue.

Assuming economic activity gets restored in a phased manner, especially in second half of this year, and taking into consideration favourable base effects, it is expected that the combination of fiscal, monetary and administrative measures being currently undertaken would create conditions for a gradual revival in activity in second half of 2020-21.”

Congress leader P Chidambaram on Saturday asked RBI governor Shaktikanta Das to “bluntly” tell the government to do its duty and take fiscal measures if he feels that the demand has collapsed and the GDP growth is heading towards negative territory. He also asked if the PM or the finance minister will laud themselves for … Continue reading ‘Tell govt to …’: Chidambaram’s advice to RBI

A day after the RBI projected economic contraction in 2020-21, finance minister Nirmala Sitharaman said future fiscal policy actions to stimulate the economy will depend on how Covid-19 pandemic pans out. The govt has already announced a Rs 20.97 lakh crore economic package, which includes Reserve Bank’s Rs 8.01 lakh crore worth of liquidity measures … Continue reading Covid situation to dictate future actions to revive economy: FM

Reserve Bank of India (RBI) governor Shaktikanta Das on Friday addressed the media as the government extended the nationwide lockdown to curb the spread of the deadly coronavirus. This is the third briefing by the RBI governor in context of coronavirus related measures in the last two months.

Interest rates on loans are set to fall further as the RBI slashed its key policy rates for the second time in two months to counter the economic fallout of the coronavirus outbreak. RBI governor Shaktikanta Das unveiled a 40 basis points cut in the benchmark repurchase rate to 4%. Consequently, the reverse repo rate … Continue reading Loan EMIs set to fall as RBI cuts key policy rates

The country’s industrial output contracted by a record 16.7% in March, dragged down by a sharp slide in the manufacturing sector as the initial impact of the Covid-19 virus dealt a devastating blow, prompting economists to say that the RBI will have to cut rates to help revive the sector.

Union minister Nitin Gadkari said he expects the Centre to unveil a financial package in 2-3 days, observing that the situation “was very bad” despite the 3-month moratorium on loan repayments announced by the RBI. He said it stands with the industry but it also needs to understand the govt’s limitations. “We are trying our … Continue reading Expect financial package in 2-3 days: Gadkari

Many have argued that while India’s lockdown has been the harshest, its stimulus package is one of the smallest — so far. To fund bigger public spending programme, the govt can either ask the RBI to print more money or raise money through borrowing. Former RBI governor Raghuram Rajan has explained how the two paths … Continue reading Rajan clears the air on how to fund stimulus

RBI governor Shaktikanta Das on Saturday held meetings with the managing directors and chief executives of major public and private sector banks through video conference. The meeting took stock of implementation of several steps by the RBI, including moderation in interest rate and its transmission, as well as liquidity infusion measures to support the industry.

India needs to be cleverer in lifting the lockdown and open up its economy in a “measured way” soon as it does not have the capacity to support people across the spectrum for too long, former RBI governor Raghuram Rajan said on Thursday. He was deliberating on the economic impact of the COVID-19 in a … Continue reading Economy needs to open in a measured way: Rajan