According to Reserve Bank of India Deputy Governor,India’s foreign exchange reserves are borrowed reserves and not built out of export surplus.This means that exchange rate dynamics in India is driven by capital flows rather than current account balances. Current account includes export and import of goods and services while Capital account includes inflow and outflow… Continue reading Exchange rate driven by capital flows, says RBI
Tag: RBI
Economy shows further weakening, needs larger push: Shaktikanta Das at MPC meet
The RBI has released the minutes of the monetary policy committee (MPC) meeting. During the meeting,RBI governor said that RBI had to cut the repo rate by an unconventional 35 basis points to 5.4% in view of weakening of domestic growth and unstable global macroeconomic environment. Further,the governor said that the rate cut was given… Continue reading Economy shows further weakening, needs larger push: Shaktikanta Das at MPC meet
RBI plans to formalise linking of new loans to repo rate
The Reserve Bank of India(RBI) is considering asking banks to link loans to an external benchmark such as the repo rate to improve transmission of policy rates and foster economic growth. Repo stands for ‘Repurchasing Option’.It refers to the rate at which commercial banks borrow money from the RBI. Currently,bank loans are linked to marginal… Continue reading RBI plans to formalise linking of new loans to repo rate
RBI proposes easing of rules for sandbox model
The Reserve Bank of India(RBI) has issued the final framework for regulatory sandbox in order to enable innovations in the financial technology space. Regulatory sandbox(RS) is an infrastructure that helps financial technology (FinTech) players live test their products or solutions before getting the necessary regulatory approvals for a mass launch which saves start-up time and… Continue reading RBI proposes easing of rules for sandbox model
RBI takes over HFC regulation from NHB
The Reserve Bank of India(RBI) has approved a proposal to shift regulation of Housing finance companies(HFCs) from the National Housing Bank(NHB) to the RBI. Hence,HFCs will now be treated as one of the categories of non-banking financial companies(NBFCs) for regulatory purposes. Further,any housing finance institution which is a company desirous of making an application for… Continue reading RBI takes over HFC regulation from NHB
RBI task force against Indian banks dealing in offshore NDF rupee market
The Reserve Bank of India(RBI) had set up an eight member committee on offshore rupee market.The committee was headed by Usha Thorat.It has submitted its report to the RBI Governor. The committee was set up to examine offshore rupee markets in depth and recommend appropriate policy measures that also factor in the requirement of ensuring… Continue reading RBI task force against Indian banks dealing in offshore NDF rupee market
RBI to set up central registry for tracking frauds in payment systems
The Reserve Bank of India has announced the creation of a central payments fraud information registry.The registry would ensure a quick and systemic response in cases of financial frauds. At present,there is a mechanism in place for banks to report all banking frauds to the Central Fraud Monitoring Cell of the Reserve Bank. RBI has… Continue reading RBI to set up central registry for tracking frauds in payment systems
RBI lowers repo rate by 35 basis points to 5.40%
The Reserve Bank of India’s (RBI) monetary policy committee (MPC) has lowered its repo rate by 35 basis points to 5.4%.Repo stands for ‘Repurchasing Option’.It refers to the rate at which commercial banks borrow money from the RBI. RBI has also kept the door open for lowering rates further by retaining an accommodative policy stance.… Continue reading RBI lowers repo rate by 35 basis points to 5.40%
Explained: Why RBI’s monetary policy matters
The Monetary Policy Committee of the RBI has decided to cut the repo rate by 35 basis points to 5.4%. The monetary policy is important as any economic activity which is measured by GDP happens by (a) private individuals and households spend money on consumption (b)the government spends on its agenda (c)private sector investment and… Continue reading Explained: Why RBI’s monetary policy matters
RBI allows round-the-clock fund transfers under NEFT from December
The Reserve Bank of India(RBI) has announced that the National Electronic Funds Transfer(NEFT) systems would be available on a 24×7 basis from December 2019. At present,the NEFT payment system operated by the Reserve Bank of India is available to customers from 8am to 7pm on all working days with the exception of second and fourth… Continue reading RBI allows round-the-clock fund transfers under NEFT from December
