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Persistent conflict in West Asia and supply chain disruptions could pose challenges to the domestic economy in the form of higher energy costs, input cost pressures, disruption in trade flows and financial market spillovers, an RBI bulletin said on Thursday. The conflict in West Asia has intensified pressures on the global supply chains in March with some easing observed in the first half of April, said an article on 'State of the Economy' published in the Reserve Bank's April bulletin. Domestic economic activity displayed resilience in many segments, with a slowdown in a few others, it said. The intensity and duration of the conflict, as well as the resultant damage to energy and other infrastructure, add risk to the inflation and growth outlook, it added. "If the conflict persists and supply chains are not restored early, it may create challenges to the domestic economy in the form of higher energy costs, input cost pressures, disruption in trade flows and financial market ...
Short-term fluctuations, including net FDI outflows and exchange rate movements, are cyclical in nature and are being closely monitored, RBI Governor Sanjay Malhotra said. He was speaking at a round-table hosted by Consulate General of India in New York on Monday. A press release was issued the next day. Malhotra highlighted the ongoing reforms to simplify regulatory frameworks, enhance ease of doing business, expand market access for foreign investors, and further integrate onshore and offshore markets. The round-table was attended by over 100 representatives from financial institutions, investment firms and policy circles, including participants from banks, asset management firms, family offices, capital management firms, institutional investors, wealth managers, and other industry professionals. During the session, RBI Chief General Manager Dimple Bhandia gave a presentation, highlighting the country's strong macroeconomic fundamentals, resilient financial sector, and consistent
The RBI on Wednesday proposed several measures to develop a more conducive framework for the long-term growth of Prepaid Payment Instruments (PPIs), including enhanced transaction security and clearer rules on refunds and grievance redressal. PPI is a payment instrument in which money is loaded and which facilitates subsequent transactions utilising the fund. These instruments are categorised as general purpose PPI, gift PPI, transit PPI, PPI for NRIs, besides certain other specific purpose PPI. RBI said that as part of its continued efforts to develop a conducive framework for long-term growth of PPIs with enhanced security of transactions, a comprehensive review of the extant guidelines has been undertaken. Accordingly, a draft Master Direction on Prepaid Payment Instruments was issued, and comments were invited by May 22, 2026. A bank permitted by RBI to issue debit cards can issue PPIs, with prior intimation to the Department of Payment and Settlement Systems (DPSS), Central ..
Members of the Reserve Bank's rate-setting panel voted for the status quo on interest rates earlier this month, citing uncertainties posed by the West Asia crisis and its impact on inflation, according to minutes of the Monetary Policy Committee (MPC) released on Wednesday. RBI Governor Sanjay Malhotra opined that the West Asia conflict poses challenges to the Indian economy through a number of channels exports, supply of critical commodities, elevated energy and other commodity prices, remittances, uncertainty, and subdued global demand. Overall, geopolitical uncertainties have intensified with the conflict widening its spread over the last month, he said. As a result, supply chain disruptions, which may take longer to subside fully and restore the logistics network, pose downside risks to the growth and upside risks to inflation. "As for monetary policy, this represents a supply shock. The underlying inflation pressures, minus the shock, are contained. "If the conflict remains .
The Reserve Bank on Tuesday allowed card issuers to map existing e-mandates to reissued cards. In the consolidated directions on digital payments governing the e-mandate framework, the central bank directed issuers to provide details of the grievance redressal in a post-transaction notification to the customer. The changes in instructions on e-mandates were based on feedback from stakeholders, the RBI said. The notification also said no charges shall be levied on customers for availing of the e-mandate facility for recurring transactions, and an acquirer shall ensure compliance with directions by merchants onboarded by them. As per consolidated directions, the RBI said an appropriate dispute redressal system shall be put in place by the issuer to facilitate the customer to lodge grievances, and RBI instructions on limiting liability of customers for unauthorised transactions shall be applicable to recurring transactions under e-mandates as well. The central bank said recurring ...
The current crisis in West Asia significantly impacts India, as the region accounts for approximately one-sixth of the country's exports, half of its crude oil imports, and nearly two-fifths of the inward remittances, Reserve Bank of India (RBI) Governor Sanjay Malhotra said. During his address at Princeton University on April 18, 2026, the governor highlighted that the Indian economy has demonstrated resilient growth over the past decade, supported by robust policy frameworks, financial stability, and sound fiscal policies. He noted that, in response to the ongoing crisis, India is increasing its domestic production of oil and gas. "Sources of imports are being diversified. While there is no shortage of oil, given the reserves maintained by us, there is some rationing of gas for industrial purposes," he said. Malhotra emphasised that while oil marketing companies and the government have absorbed some of the price pressures in oil, a portion of the pressures on gas prices has been .
The rupee appreciated 13 paise to 92.78 against the US dollar in early trade on Monday, following a sharp drop in crude oil prices amid hopes of easing geopolitical tension and the impact of the Reserve Bank's measures. Forex traders, however, said the currency is likely to stay range-bound with the situation in West Asia remaining volatile after Iran closed the Strait of Hormuz for shipping. At the interbank foreign exchange market, the rupee opened at 92.73 and moved up to 92.70 level before trading at 92.78 against the greenback in early deals, up 13 paise from the previous closing level. The rupee strengthened 28 paise to settle at 92.91 against the US dollar on Friday, a day after gaining 19 paise in the preceding session on Thursday. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.22 per cent at 98.11. Brent crude, the global oil benchmark, was trading 5.34 per cent down at USD 95.21 per barrel in futures ...