In this video, watch what Indian economist & Chief Economic Advisor Krishnamurthy Subramanian says on global stock market historic fall!

Watch what Chief Economic Advisor says on global stock market historic fall!

<p>Allaying concerns raised by many after Yes Bank fiasco, the Reserve Bank on Sunday reiterated that depositors' money is safe and it is closely monitoring all banks.</p>

<p>The RBI further said that concerns about the safety of deposits in banks are based on a flawed analysis.</p>

<p><strong>Also read:&nbsp;<a href="https://www.wionews.com/india-news/yes-bank-founder-rana-kapoor-sent-in-ed-custody-till-march-11-285078">Yes Bank founder Rana Kapoor sent in ED custody till March 11</a></strong></p>

<p>"Concern has been raised in certain sections of media about the safety of deposits of certain banks. This concern is based on analysis which is flawed. Solvency of banks is internationally based on Capital to Risk-Weighted Assets (CRAR) and not on market cap," the central bank said in a tweet.</p>

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<p dir="ltr" lang="en">Concern has been raised in certain sections of media about safety of deposits of certain banks. This concern is based on analysis which is flawed. Solvency of banks is internationally based on Capital to Risk Weighted Assets (CRAR) and not on market cap. (1/2)</p>
— ReserveBankOfIndia (@RBI) <a href="https://twitter.com/RBI/status/1236617795812470787?ref_src=twsrc%5Etfw">March 8, 2020</a></blockquote>
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<p>"RBI closely monitors all the banks and hereby assures all depositors that there is no such concern of the safety of their deposits in any bank," its second tweet said.</p>

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<p dir="ltr" lang="en">RBI closely monitors all the banks and hereby assures all depositors that there is no such concern of safety of their deposits in any bank. (2/2)</p>
— ReserveBankOfIndia (@RBI) <a href="https://twitter.com/RBI/status/1236617836757278720?ref_src=twsrc%5Etfw">March 8, 2020</a></blockquote>
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<p>Earlier, echoing similar sentiments, Chief Economic Adviser Krishnamurthy Subramanian said Indian banks are well capitalised and there is no reason to worry, adding that it is a wrong method to assess a lender's health based on the ratio of deposit to m-cap (market capitalisation).</p>

<p>"What I want to emphatically state that the m-cap ratio is a totally incorrect metric for assessing the safety of the banks. No banking sector expert or banking regulator uses this measure," Subramanian said.</p>

<p><strong>Watch:&nbsp;&nbsp;</strong></p>

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<p>A day after imposing a 30-day moratorium on Yes Bank and capping withdrawal limit at Rs 50,000, the RBI on Friday evening had issued a draft reconstruction scheme for the private sector lender.</p>

<p>As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan.</p>


Allaying concerns raised by many after Yes Bank fiasco, the Reserve Bank on Sunday reiterated that depositors' money is safe and it is closely monitoring all banks.

Allaying concerns raised by many after Yes Bank fiasco, the Reserve Bank on Sunday reiterated that depositors' money is safe and it is closely monitoring all banks. The RBI further said that concerns about the safety of deposits in banks are based on a flawed analysis. Also read: Yes Bank founder Rana Kapoor sent in ED custody till March 11 "Concern has been raised in certain sections of media about the safety of deposits of certain banks. This concern is based on analysis which is flawed. Solvency of banks is internationally based on Capital to Risk-Weighted Assets (CRAR) and not on market cap," the central bank said in a tweet. Concern has been raised in certain sections of media about safety of deposits of certain banks. This concern is based on analysis which is flawed. Solvency of banks is internationally based on Capital to Risk Weighted Assets (CRAR) and not on market cap. (1/2) — ReserveBankOfIndia (@RBI) March 8, 2020 × "RBI closely monitors all the banks and hereby assures all depositors that there is no such concern of the safety of their deposits in any bank," its second tweet said. RBI closely monitors all the banks and hereby assures all depositors that there is no such concern of safety of their deposits in any bank. (2/2) — ReserveBankOfIndia (@RBI) March 8, 2020 × Earlier, echoing similar sentiments, Chief Economic Adviser Krishnamurthy Subramanian said Indian banks are well capitalised and there is no reason to worry, adding that it is a wrong method to assess a lender's health based on the ratio of deposit to m-cap (market capitalisation). "What I want to emphatically state that the m-cap ratio is a totally incorrect metric for assessing the safety of the banks. No banking sector expert or banking regulator uses this measure," Subramanian said. Watch: × A day after imposing a 30-day moratorium on Yes Bank and capping withdrawal limit at Rs 50,000, the RBI on Friday evening had issued a draft reconstruction scheme for the private sector lender. As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan.

RBI reiterates depositors' money safe in banks; concerns based on 'flawed' analysis

<p>India plans to take more steps to boost consumer demand including injecting liquidity through banks and simplifying personal taxes, a top government economic adviser said on Friday, in a bid to raise economic growth from six-year lows.</p>

<p>Krishnamurthy Subramanian, Chief Economic Adviser at the Finance Ministry, said the government had slashed corporate taxes to attract investment and was looking for ways to boost consumer demand to support that investment.</p>

<p>"In the short-run, we are taking steps to increase consumption so that anticipating that consumption, investment also goes up," he told Reuters in an interview.</p>

<p>One of the measures on the table is aimed at easing personal taxation and making the whole tax administration simpler. The government is also considering the report of a task force to bring India's six-decades-old tax legislation more into line with those of other countries.</p>

<p>Subramanian said the government planned to make public the recommendations of the task force.</p>

<p>"The direct tax code task force has submitted its report," he said, adding that the steps that have already been taken to streamline the tax administration are likely to help in improving the tax buoyancy.</p>

<p>Last month Finance Minister Nirmala Sitharaman <a href="https://www.wionews.com/opinions/corporate-tax-cut-may-act-as-a-steroid-for-the-economy-254318">cut corporate tax </a>rates from over 30 per cent&nbsp;to 25 per cent, and to 15 per cent&nbsp;for new manufacturing companies, putting it on a par or even ahead of some of its Asian peers.</p>

<p>That landmark move has raised hopes that the government might consider similar cuts to personal taxes to put more money into the hands of consumers and especially the middle class who form the core of Prime Minister Narendra Modi's ruling group.</p>

<p>A source in the finance ministry said the task force's recommendations - which include cuts in the income tax rate by up to 10 per cent&nbsp;- could be announced even before the presentation in February of the annual budget for fiscal 2020/21, which starts in April.</p>

<p>"Timing of the implementation is a political call," said the source, adding that officials have already held discussions on the issue.</p>

<p>Growth in April-June slipped to 5 per cent, its slowest pace since 2013. The International Monetary Fund has cut its growth forecast to 6.1 per cent&nbsp;for this fiscal year from an initial 7 per cent, citing a slowdown in domestic and global demand.</p>

<p>New Delhi has also been trying to boost domestic growth through an infrastructure package and a new loan program organised with the banking sector that has doled out loans worth over 800 billion rupees.</p>

<p>Subramanian said the government has asked the banks to buy out assets from the crisis-hit non-banking finance companies to improve liquidity in the market.</p>

<p>"The government will do all that it takes to take back the growth on the high trajectory."</p>

<p>Referring to banking reforms, he said, the government was focussed on the merger of some state banks, aiming to cut down the number of state banks to 12 from 27 in 2017, and has asked them to take corporate default cases to bankruptcy courts only above a threshold limit.</p>


India plans to take more steps to boost consumer demand including injecting liquidity through banks and simplifying personal taxes, a top government economic adviser said on Friday, in a bid to raise economic growth from six-year lows.

India plans to take more steps to boost consumer demand including injecting liquidity through banks and simplifying personal taxes, a top government economic adviser said on Friday, in a bid to raise economic growth from six-year lows. Krishnamurthy Subramanian, Chief Economic Adviser at the Finance Ministry, said the government had slashed corporate taxes to attract investment and was looking for ways to boost consumer demand to support that investment. "In the short-run, we are taking steps to increase consumption so that anticipating that consumption, investment also goes up," he told Reuters in an interview. One of the measures on the table is aimed at easing personal taxation and making the whole tax administration simpler. The government is also considering the report of a task force to bring India's six-decades-old tax legislation more into line with those of other countries. Subramanian said the government planned to make public the recommendations of the task force. "The direct tax code task force has submitted its report," he said, adding that the steps that have already been taken to streamline the tax administration are likely to help in improving the tax buoyancy. Last month Finance Minister Nirmala Sitharaman cut corporate tax rates from over 30 per cent to 25 per cent, and to 15 per cent for new manufacturing companies, putting it on a par or even ahead of some of its Asian peers. That landmark move has raised hopes that the government might consider similar cuts to personal taxes to put more money into the hands of consumers and especially the middle class who form the core of Prime Minister Narendra Modi's ruling group. A source in the finance ministry said the task force's recommendations - which include cuts in the income tax rate by up to 10 per cent - could be announced even before the presentation in February of the annual budget for fiscal 2020/21, which starts in April. "Timing of the implementation is a political call," said the source, adding that officials have already held discussions on the issue. Growth in April-June slipped to 5 per cent, its slowest pace since 2013. The International Monetary Fund has cut its growth forecast to 6.1 per cent for this fiscal year from an initial 7 per cent, citing a slowdown in domestic and global demand. New Delhi has also been trying to boost domestic growth through an infrastructure package and a new loan program organised with the banking sector that has doled out loans worth over 800 billion rupees. Subramanian said the government has asked the banks to buy out assets from the crisis-hit non-banking finance companies to improve liquidity in the market. "The government will do all that it takes to take back the growth on the high trajectory." Referring to banking reforms, he said, the government was focussed on the merger of some state banks, aiming to cut down the number of state banks to 12 from 27 in 2017, and has asked them to take corporate default cases to bankruptcy courts only above a threshold limit.

India to take more steps to boost consumer demand, growth: Chief Economic Adviser

<p>Krishnamurthy Subramanian, a professor from the Indian School of Business, has been appointed as the new chief economic adviser.</p>

<p>Krishnamurthy Subramanian took charge as his predecessor, Arvind Subramanian, abruptly left the country's finance ministry in June, news agency Reuters reported.&nbsp;</p>

<p>As per Krishnamurthy's profile on ISB's website, he serves as Associate Professor &amp; Executive Director, Centre For Analytical Finance and Executive Director, Centre for Analytical Finance.&nbsp;</p>

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<p dir="ltr" lang="en">Dr. Krishnamurthy Subramanian appointed as the new Chief Economic Advisor (CEA) for three years. <a href="https://t.co/3sLQ97gh8v">pic.twitter.com/3sLQ97gh8v</a></p>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1070981755836993536?ref_src=twsrc%5Etfw">December 7, 2018</a></blockquote>
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<p>"His services on the expert committees on Corporate Governance for the Securities and Exchange Board of India (SEBI) and on Governance of Banks for The Reserve Bank of India (RBI) have established him as one of the chief architects of corporate governance and banking reforms in India. He serves as a member of SEBI’s Standing Committees on Alternative Investment Policy, Primary Markets, Secondary Markets and Research," as mentioned on the website.&nbsp;</p>

<p>He has a PhD from Chicago Booth School of Business and is a top-ranking IIT-IIM alumnus. He is one of the world’s leading experts in banking, corporate governance and economic policy.&nbsp;&nbsp; &nbsp;</p>

<p>Subramanian worked as a consultant with JPMorgan Chase in New York before starting his career in academics.&nbsp;</p>


Krishnamurthy Subramanian, a professor from the Indian School of Business, has been appointed as the new chief economic adviser. Krishnamurthy Subramanian took charge as his predecessor, Arvind Subramanian, abruptly left the country's finance ministry in June, news agency Reuters reported.

Krishnamurthy Subramanian, a professor from the Indian School of Business, has been appointed as the new chief economic adviser. Krishnamurthy Subramanian took charge as his predecessor, Arvind Subramanian, abruptly left the country's finance ministry in June, news agency Reuters reported. As per Krishnamurthy's profile on ISB's website, he serves as Associate Professor & Executive Director, Centre For Analytical Finance and Executive Director, Centre for Analytical Finance. Dr. Krishnamurthy Subramanian appointed as the new Chief Economic Advisor (CEA) for three years. pic.twitter.com/3sLQ97gh8v — ANI (@ANI) December 7, 2018 × "His services on the expert committees on Corporate Governance for the Securities and Exchange Board of India (SEBI) and on Governance of Banks for The Reserve Bank of India (RBI) have established him as one of the chief architects of corporate governance and banking reforms in India. He serves as a member of SEBI’s Standing Committees on Alternative Investment Policy, Primary Markets, Secondary Markets and Research," as mentioned on the website. He has a PhD from Chicago Booth School of Business and is a top-ranking IIT-IIM alumnus. He is one of the world’s leading experts in banking, corporate governance and economic policy. Subramanian worked as a consultant with JPMorgan Chase in New York before starting his career in academics.