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Finance


Center is eyeing RBI reserves to fund ‘electoral lollipops’. Krishnan

RBI has removed charges for payments via NEFT and RTGS and questioned banks to pass on the benefits to customers. This means that payments via NEFT and RTGS would become either free or charges would be drastically decreased. This was announced in the Statement on Developmental and Regulatory Policies, which was released today by the …

At first glance, it appears that the 25 basis points repo rate cut by the Reserve Bank of India (RBI) and its change in policy stance to ‘accommodative’ from ‘neutral’ failed to please the market, with equity barometer Sensex plunging 600 points right after the policy announcement. Market observers say the move was expected and …

IMF say monitoring the situation in India; bats for RBI's independence

A 25 basis point cut in the repo rate by the Monetary Policy Committee will not quite fan the smoldering embers of India’s growth into a blaze. But the decision to change the policy stance from neutral to accommodative will help, when the new government’s policy interventions produce a new growth impulse. Only 42% of the 50 basis …

The Reserve Bank of India cemented its position as Asia’s most dovish central bank with a third straight interest-rate cut Thursday. Unlike the last two policy decisions, it was unanimous this time, with all six MPC members voting for a cut in rates and an alteration instance. The move gives the Narendra Modi government a helping hand …

The Reserve Bank of India has come a long way from the days when monetary policy statements would average 13,000 words. That’s more than the average length of a Masters thesis in economics and was before the adoption of inflation targeting in 2016. Since then, the central bank has become briefer and less complex in its policy communication, according …

India’s Serious Fraud Investigation Office (SFIO) has now turned the lens on auditors of Infrastructure Leasing and Financial Services’ (IL&FS) holding company and IL&FS Transportation Network, in what could be the highest probe involving about 35 audit firms including some of the biggest Indian firms. Investigators would be looking at the role of senior executives in …

Timely intervention by the Reserve Bank could have led to the crisis at the Infrastructure Leasing & Financial Services Ltd (IL&FS) being detected before, the Serious Fraud Investigation Office has said in its charge sheet. Crucially, IL&FS subsidiary IL&FS Financial Services (IFIN) — the entity at the heart of the investigation — was permitted to …

1. Why are debt funds in bad shape? The trouble commenced with the IL&FS fiasco, where default and subsequent rating downgrade negatively affected several mutual funds holding its bonds. The problem has now spread to other entities such as DHFL, Essel Group, Yes Bank and Reliance Anil Dhirubhai Ambani Group. While many of the instruments were rated AAA …

The Monetary Policy Committee (MPC) can’t complain. Compared to when it last met early April, just days before the first phase of the Lok Sabha elections, it is now faced with much less uncertainty when it meets tomorrow for the second bi-monthly monetary policy statement due June 6. Sure, as legendary baseball coach Yogi Berra stated, ‘The future …

First-time cabinet minister Amit Shah took charge of the Union ministry of home affairs (MHA) on Saturday afternoon, after which he met senior officials and sat through an extended briefing session. Officials in each of the 19 divisions under the ministry briefed Shah, who continues to be Bharatiya Janata Party (BJP) president, about projects and …

The country’s economic growth in the fourth quarter ended March 2019 is expected to moderate to 6.1-5.9 per cent, which could pull down growth rate for the entire fiscal 2018-19 to below 7 per cent, according to a report by SBI. The slip in GDP growth may force the Reserve Bank of India to move with a deeper 0.50 …

As Switzerland strives hard to re-establish its global financial center position after clamping down on secrecy walls of its banks, there has been a significant surge in the number of cases where it has initiated process to share information on Indians with Swiss bank accounts and shot off letters to about a dozen such individuals …