Page 58 - Rbi

Moderation in inflation creates policy space for RBI to cut rates: NCAER

Moderation in inflation to five-month low of 4.3 per cent in January has provided RBI more space to cut interest rate in policy meet, according to the monthly economic review by the National Council of Applied Economic Research (NCAER). Earlier this month, RBI slashed policy repo rate by 25 basis points to 6.25 per cent. The next monetary policy committee meeting is to be held in April. Even in the face of global headwinds, some of the high-frequency indicators of the Indian economy have turned more benign and the nascent turnaround is evident in indicators like Purchasing Managers' Index for manufacturing, GST collections and non-EV and EV sales, it said. PMI for manufacturing increased to 57.7 in January, signalling expansion, while PMI for services remained at an elevated level of 56.5. The economic think tank added that GST collections, gross and net, achieved robust double-digit growth of 12.3 per cent and 10.9 per cent, respectively in January 2025, as compared to subdued a .

House price index rises 3.1% in third quarter of FY25, shows RBI data

All-India House Price Index (HPI) increased 3.1 per cent in the third quarter of 2024-25 as compared to 4.3 per cent growth in the preceding three months and 3.8 per cent growth in the year-ago period, according to data released by the Reserve Bank of India (RBI). The RBI released its quarterly house price index for the December quarter of 2024-25 on Thursday, based on transaction-level data received from the registration authorities in 10 major cities. The cities are Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow, and Mumbai. The RBI said the annual HPI growth varied widely across the cities - ranging from a high growth of 8.1 per cent (Kolkata) to 0.1 per cent (Kanpur). On a sequential (q-o-q) basis, all-India HPI increased by 0.4 per cent in Q3:2024-25. Mumbai, Bengaluru, Ahmedabad, Lucknow, Kolkata, Chennai, Jaipur and Kochi recorded a sequential rise in house prices during the latest quarter.

RBI's risk weights seen as macro prudential step to support economic growth

This move will free up Rs 40,000 crore capital for banks translating into Rs 4 trillion additional loanable funds

Higher capital spending is good, but fiscal prudence is essential

An increase in capital outlay results in an expansion in overall investment, leading to better growth outcomes over time

Religare seeks RBI nod for new directors; moves to remove Saluja, Asthaana

The board also recommended the removal of directors Rashmi Saluja and Rakesh Asthaana from the boards of subsidiary companies and committees

Cracks in co-ops? Irregularities persist in UCBs despite RBI interventions

RBI's initiatives to promote sound governance practices in UCBs include introducing a four-tiered regulatory framework, direct engagement with directors on UCB boards

RBI partly dials back strict loan rules for micro credit, non-bank lenders

The reversal of rules follows the central bank's decision to defer proposals to increase the capital that banks set aside for new project loans and liquidity they hold for digital deposits

RBI draft norms on foreclosure charges to hit lenders' profits: Analysts

The hit on non-banking financial companies (NBFCs) would be larger compared to banks, they said

Datanomics: Urban areas record higher consumption expenditure disparity

Monthly consumption expenditure by Scheduled Tribe (ST) households is 17.2 per cent less in rural areas and 13.5 per cent less in urban areas compared to the national average in FY24 (July-June)

Pvt corporate sector posts 8% on-year sales growth in Q3, margins rise: RBI

Manufacturing companies' expenses on raw materials rose by 6.3 per cent (y-o-y) in line with their sales growth, whereas their staff costs increased by a higher 9.5 per cent

RBI allows Rs 25,000 withdrawal for New India Cooperative Bank depositors

50 per cent of depositors can withdraw their entire money

Banks' deposit insurance hike may be on the anvil amid periodic review

Should deposit insurance revisits be episodic? Like after the collapse of Bank of Karad in 1992 and the Punjab and Maharashtra Cooperative Bank fiasco in 2019

Tough time ahead for banking sector as low-cost funds shrink, margins drop

Given the sharp correction in equities and a drop in the flow of money to mutual funds, some banks have started seeing a return of depositors

Former RBI guv Shaktikanta Das appointed as 2nd principal secretary to PM

The appointment will be co-terminus with the term of the Prime Minister or until further orders, whichever is earlier, according to the appointment committee of the cabinet

Former RBI Guv Shaktikanta Das appointed Principal Secretary-2 to the PM

Former RBI Governor Shaktikanta Das has been appointed as Principal Secretary-2 to Prime Minister Narendra Modi. His tenure will be co-terminus with the prime minister's term or until further orders

MPC minutes: Repo rate was cut as inflation aligning with target, says Guv

Members said it was MPC's turn to do its bit after Budget booster

Reserve Bank of India for foreclosure of biz loans to MSEs, individuals

The RBI has invited comments and feedback from stakeholders and the public on the draft circular by March 21

RBI likely to hold fresh talks on project financing in three months

Last year in May 2024, RBI released a draft direction outlining the prudential framework for project loan financing

RBI to conduct $10 billion buy/sell swap to infuse durable liquidity

The RBI has injected over Rs. 3.6 trillion of durable liquidity into the banking system so far through a combination of OMO purchases, FX swaps, and longer-duration variable rate repo auctions

Flexible part of inflation targeting worked well: MPC's Bhattacharya

FIT more effective than multiple indicators framework