Page 291 - Latest Updates on Reserve Bank of India
RBI bars People's Co-operative Bank from granting loans, accepting deposits
The central bank has also barred the co-operative bank from selling, transferring or disposing any of its properties or assets for next 6 months
 "RBI bars People's Co-operative Bank from granting loans, accepting deposits")
Govt to convert Rs 27,000 cr of short term bonds into longer tenure
In May, RBI tried to switch Rs 30,000 crore worth of securities into longer tenure one, but could manage to do less than a third of that
 "Govt to convert Rs 27,000 cr of short term bonds into longer tenure")
India's forex reserves near $500 bn, but RBI won't let rupee rise: Experts
Analysts say the central bank is enhancing reserves to guard against a likely downgrade in India's credit rating or to ensure a bigger transfer of surplus to the revenue-starved government
 "India's forex reserves near $500 bn, but RBI won't let rupee rise: Experts")
The maths of moratorium
At a cost of 0.1-0.15% of GDP, the government can give confidence to both banks and MSMEs
All kinds of loans cannot be put under moratorium, Sebi tells SC
SEBI filed an affidavit in this regard in the apex court which had sought its stand on a plea
 "All kinds of loans cannot be put under moratorium, Sebi tells SC")
Household savings may rise in Q1, then moderate, say RBI officials
May moderate in subsequent quarters, they say
 "Household savings may rise in Q1, then moderate, say RBI officials")
RBI staff studies on NBFCs call for more policy help to avoid systemic risk
While the RBI has done a number of liquidity enhancing measures, and the government has also come up with credit guarantee schemes, the issue in hand is clearly that of solvency
 "RBI staff studies on NBFCs call for more policy help to avoid systemic risk")
Moratorium could be a costly affair, use these strategies to reduce burden
By how much your interest cost rises depends on a few factors, the first being loan tenure
 "Moratorium could be a costly affair, use these strategies to reduce burden")
A deferred free lunch for good conduct
RBI could ask banks to reward customers who do not default by giving a discount at the end of the loan's tenure
GDP: Growth vs levels
India's GDP is unlikely to recover to its 2019-20 level until the second half of 2021-22
 "GDP: Growth vs levels")
GDP: The devil is in the revisions
Six iterations of annual data over a three-year period raise serious questions about the reliability of national income data as a basis for sound policymaking
 "GDP: The devil is in the revisions")
Which economic stimulus works?
Much of the money that households and businesses receive in the form of stimulus checks will probably sit idle in their bank accounts
Covid-19: Securitisation volumes to shrink 30-40% this fiscal, says Icra
According to ICRA, the total volumes are expected to be Rs 1.2-1.4 trillion in FY21, as against Rs 2 trillion in the last fiscal year
 "Covid-19: Securitisation volumes to shrink 30-40% this fiscal, says Icra")
Clarity for FDI
Govt must follow up on its restrictions on investment from China
 "Clarity for FDI")
Getting the growth back?
It would be a major miracle if the economy does not contract this year
BS READS: Zerodha's run to top is made of more than just 'free' brokerage
The company's tight-aggressive business model has done well so far, but with other players, both traditional and new, smelling an opportunity, there could be a very fascinating game ahead
 "BS READS: Zerodha's run to top is made of more than just 'free' brokerage")
Planning to take home loan? This is good time to explore fixed-rate option
Interest rates on home loans are at historic lows currently
 "Planning to take home loan? This is good time to explore fixed-rate option")
Varying beneficial ownership caps muddy waters for FDI investments
Ambiguity on whether investment falls under automatic route or requires govt approval
 "Varying beneficial ownership caps muddy waters for FDI investments")
Economics and welfare
There is merit in RBI's position on loan moratorium
 "Economics and welfare")
RBI's Rs 500-crore fund to promote digital payments in small towns
RBI invests Rs 250 crore, the remaining will come from the card-issuing banks and card networks
 "RBI's Rs 500-crore fund to promote digital payments in small towns")