Page 27 - Shaktikanta Das

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Foreign exchange reserves fall to $525 billion, lowest since July 2020

So far in 2022, the Indian currency has weakened 9.9 per cent against the US dollar

RBI governor Shaktikanta Das cautions on backdoor entry in financial space

Although some number of complaints is expected from such a large financial system, the concerning fact is much of the complaints pertain to traditional banking

India to be among fastest growing economies despite global challenges: RBI

India is expected to be among the fastest growing major economies this fiscal, geopolitical turbulence notwithstanding, RBI Governor Shaktikanta Das opined at last month's meeting of the rate setting panel MPC while going with the majority to raise the repo rate by 50 basis points to tame inflation. On September 30, the six-member Monetary Policy Committee (MPC), headed by Das, had raised the short-term lending rate for the third consecutive time by 50 basis points to take the repo rate to 5.9 per cent. In May, the repo rate was hiked by 40 basis points. Except for Ashima Goyal, who favoured a 35 basis points hike, the other five members had voted for 50 basis points increase in the repo rate. As per the minutes of the MPC meeting released by the RBI on Friday, Governor Das had said that economic activity was steadily improving, though there were mixed signals. "While high frequency indicators are showing continued momentum in activity, global factors are putting pressure on extern

As MPC fails on CPI mandate, RBI's growth-inflation balance gets trickier

The central bank will now have to provide a report to the government explaining the reasons for the failure and the steps to be taken

RBI Guv Das launches advanced supervisory monitoring system DAKSH

Reserve Bank Governor Shaktikanta Das on Thursday launched a new 'SupTech' initiative DAKSH - the bank's Advanced Supervisory Monitoring System, which is expected to make the supervisory processes more robust. In a statement, the Reserve Bank of India (RBI) said it has been taking various initiatives in strengthening supervision, which among other initiatives include adoption of latest data and analytical tools as well as leveraging technology for implementing more efficient and automated work processes. "DAKSH is a web-based end-to-end workflow application through which RBI shall monitor compliance requirements in a more focused manner with the objective of further improving the compliance culture in Supervised Entities (SEs) like Banks, NBFCs, etc," it said. The application will also enable seamless communication, inspection planning and execution, cyber incident reporting and analysis, and provision of various MIS reports, among others, through a platform which enables ...

Loan for 20 years, EMIs for 24: RBI rate hikes leave borrowers in a fix

If a person took a 20-year home loan of Rs 50 lakh in April 2019, their number of EMIs will now be 60 more than the original because of the recent repo rate hikes

67% of fall in forex reserves due to valuation changes: RBI governor Das

Das reiterated on Friday the RBI does not target any particular level for the domestic exchange rate and only intervenes in the market to smoothen out excessive volatility

India's core sector output growth slips to nine-month low in August

The Reserve Bank of India (RBI) on Friday pared its growth forecast for FY23 to 7 per cent from 7.2 per cent estimated earlier

Rupee fluctuations not a factor for MPC's consideration, says RBI

'Net LAF continues to be in surplus for the past two years, except for 2-3 days when because of SLF for the primary dealers it became deficit'

Banks can boost liquidity by drawing down on CRR: RBI governor Das

The fall in the liquidity surplus is owing to multiple factors, including the RBI's interventions in the forex market and a sharp pick-up in bank credit growth, which is currently at nine-year highs

Currency movements not guiding factors for monetary policy: Shaktikanta Das

Reserve Bank of India Governor Shaktikanta Das on Friday said that currency movements are not the guiding factors for monetary policy decisions. He said currency management is the domain of RBI and that it will deploy all the appropriate measures on the same. The Monetary Policy Committee, which decided to go for a rate hike of 0.50 per cent earlier in the day, takes into account domestic factors on inflation and growth while formulating its rates strategy, Das told reporters during the customary post-policy press conference. He said the primacy is given to inflation while the aspect of growth is also looked into. On liquidity, Das said there should not be any worries about tightness and that the system wide funds availability was more than Rs 5 lakh crore. Deputy Governor T Rabi Sankar said rupee trade proposals have been received from four to five countries and many banks. He did not provide further details.

RBI may adopt expected loss approach for banks' loan provisioning: Guv Das

Governor Shaktikanta Das on Friday said the Reserve Bank is mulling to adopt the "expected loss" approach for loan provisioning. At present, the banks follow the "incurred loss" approach, where money is set aside after an asset turns sour. Das called the proposed transition a "more prudent and forward looking approach", and said that a discussion paper will be released soon for stakeholders to comment on the same. "We will release a discussion paper on 'expected loss-based approach' for loan loss provisioning by banks," the Governor said after announcing the bi-monthly policy review. He said the approach to make provisions or set aside money on the probable losses is a globally accepted prudent norm. At present, larger non-bank lenders have already been using the expected loss approach for provisioning since 2018. Banks were also expected to follow the expected loss approach in 2018 itself, but it had not been implemented because certain necessary amendments to the Banking Regula

Regulations for offline payment aggregators to be same as online peers: RBI

Offline payment aggregators (PAs) who aid in face-to-face transactions at merchant outlets will now come under the regulatory purview of RBI, Governor Shaktikanta Das announced on Friday. "Keeping in view the similar nature of activities undertaken by online and offline PAs, it is proposed to apply the current regulations to offline PAs as well," Das said after announcing the bi-monthly policy review. Das said there will be "convergence on standards of data collection and storage" after the move, meaning that such companies will not be able to store details like those of credit and debit cards of a customer. The Governor said PAs play an important role in the payments ecosystem and hence were brought under regulations in March 2020 and designated as Payment System Operators (PSOs). However, the current regulations are applicable only to PAs processing online or e-commerce transactions, he said, adding that they do not cover offline PAs who handle proximity/face-to-face transactions

RBI policy projections: Sept inflation to hit five-month high of 7.6%

Central bank will have to write to government explaining the reasons of its failure to contain inflation up to 6%

RBI to publish paper on expected loss-based approach for loan provisioning

Banks now make loan loss provisions on incurred loss model, wherein provisions are made after defaults

RBI Monetary Policy: Repo rate up by 50bps; here's how it will impact you

On Friday, RBI increased the repo rate by 50 basis points taking the key repo rate to 5.9%; here is why it should matter to you

RBI monetary policy: Repo rate hiked by 50 bps, here is what it tells us

RBI Policy: Shaktikanta Das announced the RBI MPC's decision to hike the repo rate by 50 basis points to 5.9% and slash the GDP forecast for FY23 to 7% from 7.2% earlier

RBI policy: Repo rate hiked by 50 bps to 5.9%; FY23 GDP forecast cut to 7%

CPI inflation for the current financial year is seen at 6.7%, with the price gauge seen at 7.1% in July-September

RBI policy review LIVE: Inflation forecast for FY23 remains unchanged

RBI Monetary Policy Live update: This would be the fourth hike in the policy repo rate by the Reserve Bank of India, which is currently at 5.4%