RBI’s rate-hike cycle may continue: Exim Bank
Kolkata, Raising key lending rates by 25 basis points by the Reserve Bank of India (RBI) Friday may not be the last rate-hike by the apex bank as the trend may continue due to high inflation, Exim Bank CMD T.C.A. Ranganathan said.
“This may not be the last time that we are seeing a rate hike, the cycle may continue because of the rising inflation. Industry must also adjust to this high tide level,” Ranganathan told reporters on the sidelines of a programme, organised by the Indian Chamber of Commerce (ICC) here.
“RBI could start examining other selective credit control mechanisms to ensure growth in some sectors,” he said.
The apex bank has raised repo rate by 0.25 basis points to 8.25 per cent and increased the reverse repo to 7.25 per cent.
Stating that raising interest rate regime was acting as a dampener for the industrial growth, Ranganathan said: “The reflection of a stressed economy can be seen in bank NPAs.”
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RBI to promote use of cashless payment system
Mumbai, The Reserve Bank of India (RBI) has taken measures to promote the use of cashless payment instruments in the country, a senior official said Thursday.
“The RBI has been in the forefront both as operator and facilitator for promoting the use of cashless payment instruments in the country,” RBI Deputy Governor H.R. Khan said at a conference organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Indian Banks’ Association here.
“The technology implementation in banks which have shaped the payment system in turn is largely driven by the recommendations of the various committees set up by RBI,” he said.
Khan said the development of payment system in the country depends on various issues including the adoption of technology, introduction of new payment instruments and the confidence of the public in using these payment instruments.
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Saudi largest supplier of oil to India, Africa shows promise
New Delhi, Saudi Arabia remained the largest supplier of crude oil to India while the share of African countries rose significantly from 32.91 million tonnes in 2009-10 to 34.12 million tonnes the next year, according to the oil ministry.
Even as Iran continued to remain the second largest supplier of this basic hydrocarbon, the supplies dropped from 21.19 million tonnes to 18.49 million tonnes during the years under review, Petroleum Minister S. Jaipal Reddy said Tuesday.
“India’s oil refineries importing crude oil from Iran had faced problem in making payment to the National Iran Oil Company (NIOC), after the Asian Clearing Union (ACU) mechanism was withdrawn by the Reserve Bank of India (RBI) in December 2010,” he said in a written reply to the Rajya Sabha.
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Split CEO, chairman posts in banks: RBI governor
Mumbai, Aug 23 The posts of chairman and chief executive officer (CEO) of public sector banks should be bifurcated to ensure effective checks and balances, Reserve Bank of India Governor D. Subbarao said Tuesday.
“We will discuss this issue with the government,” Subbarao said while addressing a conference organised here jointly by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Bank’s Association.
He said bifurcation of the posts of chairman and CEO of private sector banks had worked well and it should be implemented in government-run banks as well.
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sushmita Business & Economy, Current Affairs India, General Awareness Current Affairs, Federation of Indian Chambers of Commerce and Industry, Reserve Bank of India
RBI maintains 8 percent growth forecast for 2011-12
New Delhi, Aug 12 The Reserve Bank of India (RBI) has stuck to its economic growth forecast of eight percent for the current fiscal despite the recent sharp variations in monthly industrial output figures.
“We think growth will be eight percent in 2011-12. We have made this projection in the policy statement and there is no change in it,” RBI Deputy Governor Subir Gokarn told reporters on the sidelines of an event organised by the Confederation of Indian Industry (CII) here.
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RBI raises capital adequacy ratio for deposit-taking NBFCs
The Reserve Bank of India (RBI) on February 18, 2011 raised the minimum capital adequacy ratio (CAR) for deposit-taking non-banking financial companies (NBFCs) from 12 per cent to 15 per cent, effective from March 31, 2012.
So, for every Rs 100 advance, NBFCs should have Rs 15 as core capital. Capital adequacy ratio is a measure of core capital expressed as a percentage of assets weighted credit exposures.
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Coins lower than 50 paise to be phased out.
The Union Ministry of Finance has notified on December 20, 2010 to phase out the circulation of coins of denomination of below 50 paise with effect from June 30, 2011.
From this date, these coins shall cease to be a legal tender for payment as well as on account.
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sushmita Business & Economy, Capitals & Currencies, Current Affairs India, General Awareness, General Knowledge Reserve Bank of India, Union Ministry of Finance
