News: RBI’s internal working group, set up in June 2020, had made 33 recommendations on the ownership and corporate structure of private sector banks. The RBI has accepted 21 of them, with minor modifications in some cases. The rest, are under examination. What are the key recommendations made by the RBI’s IWG? Entry of corporate… Continue reading The good and not so good of new bank ownership norms
Tag: RBI
What is RBI’s stand on the use of cryptocurrency
News: RBI governor has raised his concern over the cryptocurrency investment in India. Contents1 How the RBI has responded to the crypto business so far?2 How many Indians invest in cryptos and whether the amount is taxed?3 What are the concerns associated with cryptocurrency?4 Source: This post is based on the article “What is RBI’s stand… Continue reading What is RBI’s stand on the use of cryptocurrency
An RBI public interface that can recast banking
News: RBI has opened a retail window for bonds. Along with this, the launch of its digital rupee next could enable RBI to take over the bank depository function. Recently, RBI launched the Retail Direct scheme. Under this scheme, people can invest directly in government bonds. As these are virtually risk-free, people would be attracted… Continue reading An RBI public interface that can recast banking
The monetary policy of RBI has failed to walk its talk
Synopsis: A disconnect between the commentary and policy action of RBI’s repo rate-setting panel could cost us dear in time to come. Introduction According to RBI Governor, the Indian Economy is recovering from the impact of Covid. But still, there is a need to work on inflation, so that it will remain within the targets defined.… Continue reading The monetary policy of RBI has failed to walk its talk
Let central banks stay focused on their goals
Synopsis: Urjit Patel has suggested adding climate aims to the monetary agenda, however it has multiple risks associated to it. Hence, other tools should be used for our carbon crisis. Introduction Recently, former Reserve Bank of India (RBI) governor Urjit Patel laid out a strong argument in favour of the proposition of adding climate goals… Continue reading Let central banks stay focused on their goals
RBI permits card-tokenization services in a bid to make card transactions more safe
Source: This post is based on the article “RBI permits card tokenization services” published in AIR on 26th August, 2021. What is the News? The Reserve Bank of India has permitted authorised card networks to offer card tokenization services to any token requestor in a bid to make card transactions more safe, secure and convenient… Continue reading RBI permits card-tokenization services in a bid to make card transactions more safe
No taper tantrum (On US Fed reserve policies)
Source: Business Standard What is the news? The US Fed Reserve is considering reducing the pace of its asset purchase. As per Fed’s Chairman, the economy had evolved as expected, and it could be appropriate to start reducing asset purchase this year. But, it’s not clear at this stage as to when the Fed will… Continue reading No taper tantrum (On US Fed reserve policies)
E-tailers can’t store your card data, says RBI
Source: TOI What is the News? Reserve Bank of India is all set to implement its revised set of guidelines on the card data storage policy from January 2022. RBI’s Guidelines on Card Data Storage Policy: As per the guidelines, Payment Aggregators(PAs), Payment Gateways and online merchants shall not store card credentials of customers in… Continue reading E-tailers can’t store your card data, says RBI
Spreading disinflation over 2-3 years to reduce output loss, says RBI
Source: Business Standard Relevance: Addressing various issues ailing the financial sector of the Indian economy. Synopsis: RBI Governor Shaktikanta Das, other deputy governors took questions from the media and addressed the raging topics in the financial sector. Here is what he had to say regarding RBI’s view on various issues. On inflation Between 2016 and… Continue reading Spreading disinflation over 2-3 years to reduce output loss, says RBI
Avoid arbitrary regulation
Source : Business Standard Relevance : Issues with the latest decision of RBI on deferment of the guidelines Synopsis : The deferment of RBI’s guidelines on Overdrafts and current accounts, which were laid down in August last year, has been criticized as an arbitrary regulation. The deadline for implementation of the circular has been pushed… Continue reading Avoid arbitrary regulation
