RBI unlikely to speed up rate cuts
The GDP growth projection of 5% for this fiscal put out by the Central Statistical Organisation (CSO) recently was disappointing but it may not be enough for more rate cuts. Read more
RBI
RBI paper seeks to cut use of cheque books
Cheque books may go the way of physical share certificates if proposals mooted by the Reserve Bank of India (RBI) are enforced. In a discussion paper on discouraging cheque usage, RBI has proposed charges for individuals when payments are made by cheques and penal processing fees for institutions that continue to issue warrants rather than credit amounts to investors’ accounts directly. Read more
Dealers welcome RBI’s move to deepen corporate bond markets
The Reserve Bank of India’s move to allow standalone primary dealers (PDs) to obtain funding and invest more in corporate bond markets is expected to increase volumes in a priority market for the government, according to executives. Read more
The Finance Ministry requests RBI for relaxing capital adequacy norms
The Finance Ministry has requested the Reserve Bank to relax capital adequacy norms for banks in line with the recommendations made earlier this month by the Basel Committee on Banking Supervision. Read more
Urjit Patel takes charge as RBI deputy governor
Urjit Patel recently took charge as deputy governor of the Reserve Bank of India two weeks ahead of a crucial monetary policy review. Although the central bank has not announced new portfolio’s, Patel is seen to be taking charge of the monetary policy department, earlier headed by Subir Gokarn, whom he succeeds at RBI. Read more
RBI floats draft norms on capital needs for counterparty risk
In order to enhance risk management system of banks, the Reserve Bank of India (RBI) has proposed tweaking norms for capital adequacy with regard to their exposure in derivative instruments. Read more
Liberalisation of Insurance Sector : New Dimensions
The world has become a global village. The Liberalisation, Privatization and Globalisation (LPG) wave has sweeped across the global economies. The two pillars of India’s economic policy before 1991 have been protection and public sector. Read more
RBI report on gold loans beneficial to companies
The recent observations by the Reserve Bank of India (RBI) on gold loan companies are expected to help NBFCs (non banking finance companies). RBI has recommended LTV (loan to value ratio) to be raised to 75% from 60% currently. “Earlier, this was a grey area with a risk that RBI may arrest the loophole. But if the rate is fixed at 75%, then it would not lead to any material change on ground as to the amount of loan the NBFCs can disburse against jewellery, while concerns regarding the grey area would be eliminated,” said Angel Broking in a recent report. Read more
RBI cancels registration of two NBFCs
The Reserve Bank recently said it has cancelled registration of two non-banking financial companies — Emcorp Finance Ltd and Care Credit and Investments Company Pvt Ltd. Read more
Financial literacy and consumer education on insurance in India
The IRDA along with other stakeholders of the industry, has a responsibility of improving financial literacy in the country as well as to impart consumer education in insurance. Towards this end, IRDA has been working on and has implemented various initiatives.
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