Domestic equity benchmarks BSE Sensex and NSE Nifty opened on a cautious note Tuesday as investors await RBI's monetary policy decision, amid weak cues from global markets.

After scaling <a href="https://www.wionews.com/business-economy/stock-markets-close-at-record-high-sensex-surges-553-points-nifty-ends-above-12000-for-first-time-223868">lifetime highs in the previous session</a>, the 30-share index was trading 15.27 points, or 0.04 per cent, lower at 40,252.35, and the broader Nifty slipped 10.10 points, or 0.04 per cent, to 12,077.90.

Top losers in the Sensex pack include HCL Tech, TCS, Hero MotoCorp, Asian Paints, Infosys, Bajaj Auto, HUL and Maruti, shedding up to 2 per cent.

On the other hand, Yes Bank, NTPC, PowerGrid, L&amp;T, Tata Motors and ITC were among the top gainers, rising up to 2.64 per cent.

On Monday, the BSE gauge settled 553.42 points, or 1.39 per cent, higher at 40,267.62, and the Nifty surged 165.75 points, or 1.39 per cent, to end at 12,088.55.

"With GDP growth and GST collections below expectations, market participants will keenly look ahead to RBI monetary policy and commentary. The market appears to be factoring at minimum a 25 bps rate cut in the upcoming RBI meet," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.

The Reserve Bank of India's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy Thursday. The central bank had cut the short-term lending rate (repo rate) by 25 basis points each in its last two policy reviews.

According to traders, investors also took cues from global markets, which are weak on account of renewed global trade tensions.

Meanwhile, foreign institutional investors bought equity worth Rs 3,068.88 crore on Monday, while domestic institutional investors sold shares to the tune of Rs 462.69 crore, provisional data available with stock exchanges showed.

Elsewhere in Asia, bourses in China, Japan and Korea were trading on a negative note in their respective early sessions.

Bourses on Wall Street too ended in the red on Monday.

On the currency front, the rupee also appreciated 18 paise to 69.08 against the US dollar.

Brent crude futures, the global oil benchmark, were trading 0.41 per cent lower at 61.03 per barrel.

Domestic equity benchmarks BSE Sensex and NSE Nifty opened on a cautious note Tuesday as investors await RBI's monetary policy decision, amid weak cues from global markets.

Domestic equity benchmarks BSE Sensex and NSE Nifty opened on a cautious note Tuesday as investors await RBI's monetary policy decision, amid weak cues from global markets. After scaling lifetime highs in the previous session, the 30-share index was trading 15.27 points, or 0.04 per cent, lower at 40,252.35, and the broader Nifty slipped 10.10 points, or 0.04 per cent, to 12,077.90. Top losers in the Sensex pack include HCL Tech, TCS, Hero MotoCorp, Asian Paints, Infosys, Bajaj Auto, HUL and Maruti, shedding up to 2 per cent. On the other hand, Yes Bank, NTPC, PowerGrid, L&T, Tata Motors and ITC were among the top gainers, rising up to 2.64 per cent. On Monday, the BSE gauge settled 553.42 points, or 1.39 per cent, higher at 40,267.62, and the Nifty surged 165.75 points, or 1.39 per cent, to end at 12,088.55. "With GDP growth and GST collections below expectations, market participants will keenly look ahead to RBI monetary policy and commentary. The market appears to be factoring at minimum a 25 bps rate cut in the upcoming RBI meet," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management. The Reserve Bank of India's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy Thursday. The central bank had cut the short-term lending rate (repo rate) by 25 basis points each in its last two policy reviews. According to traders, investors also took cues from global markets, which are weak on account of renewed global trade tensions. Meanwhile, foreign institutional investors bought equity worth Rs 3,068.88 crore on Monday, while domestic institutional investors sold shares to the tune of Rs 462.69 crore, provisional data available with stock exchanges showed. Elsewhere in Asia, bourses in China, Japan and Korea were trading on a negative note in their respective early sessions. Bourses on Wall Street too ended in the red on Monday. On the currency front, the rupee also appreciated 18 paise to 69.08 against the US dollar. Brent crude futures, the global oil benchmark, were trading 0.41 per cent lower at 61.03 per barrel.

Sensex, Nifty start on a cautious note as investors await RBI's monetary policy decision

The benchmark BSE Sensex rallied over 200 points in early trade Monday driven by gains in financial stocks ahead of the Reserve Bank's bi-monthly policy review.

The 30-share index was trading 203.82 points, or 0.51 per cent, higher at 39,918.02. Similarly, the broader NSE Nifty spurted 48.35 points, or 0.41 per cent, to 11,971.15.

In the previous session on Friday, the Sensex settled 117.77 points, or 0.30 per cent, lower at 39,714.20, and the Nifty settled lower by 23.10 points, or 0.19 per cent, at 11,922.80.

Top Sensex gainers in early session Monday include Hero MotoCorp, Asian Paints, Bajaj Auto, HUL, HDFC twins, PowerGrid, TCS and Bajaj Finance, rising up to 3 per cent.

While, ONGC, Yes Bank, Tata Motors, SBI, M&amp;M and RIL fell up to 1.77 per cent.

The Reserve Bank of India's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy Thursday. The central bank had cut the short-term lending rate (repo rate) by 25 basis points each in its last two policy reviews.

The MPC headed by RBI Governor Shaktikanta Das will meet for three days beginning June 3 to firm up the second bi-monthly monetary policy of the fiscal.

According to experts, the Reserve Bank may go for another round of rate cut, third in a row, on Thursday to prop up the economic growth which dropped to a five-year low in the final quarter of 2018-19.

Meanwhile, foreign institutional investors bought equity worth Rs 676.15 crore on Friday, and domestic institutional investors purchased shares to the tune of Rs 394.09 crore, provisional data available with stock exchanges showed.

Elsewhere in Asia, bourses in China, Japan and Korea were trading on a weak note in their respective early sessions.

On the currency front, the rupee also appreciated 24 paise to 69.45 against the US dollar.

Brent crude futures, the global oil benchmark, were trading 1.13 per cent lower at 61.29 per barrel.&nbsp;

The benchmark BSE Sensex rallied over 200 points in early trade Monday driven by gains in financial stocks ahead of the Reserve Bank's bi-monthly policy review. The 30-share index was trading 203.

The benchmark BSE Sensex rallied over 200 points in early trade Monday driven by gains in financial stocks ahead of the Reserve Bank's bi-monthly policy review. The 30-share index was trading 203.82 points, or 0.51 per cent, higher at 39,918.02. Similarly, the broader NSE Nifty spurted 48.35 points, or 0.41 per cent, to 11,971.15. In the previous session on Friday, the Sensex settled 117.77 points, or 0.30 per cent, lower at 39,714.20, and the Nifty settled lower by 23.10 points, or 0.19 per cent, at 11,922.80. Top Sensex gainers in early session Monday include Hero MotoCorp, Asian Paints, Bajaj Auto, HUL, HDFC twins, PowerGrid, TCS and Bajaj Finance, rising up to 3 per cent. While, ONGC, Yes Bank, Tata Motors, SBI, M&M and RIL fell up to 1.77 per cent. The Reserve Bank of India's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy Thursday. The central bank had cut the short-term lending rate (repo rate) by 25 basis points each in its last two policy reviews. The MPC headed by RBI Governor Shaktikanta Das will meet for three days beginning June 3 to firm up the second bi-monthly monetary policy of the fiscal. According to experts, the Reserve Bank may go for another round of rate cut, third in a row, on Thursday to prop up the economic growth which dropped to a five-year low in the final quarter of 2018-19. Meanwhile, foreign institutional investors bought equity worth Rs 676.15 crore on Friday, and domestic institutional investors purchased shares to the tune of Rs 394.09 crore, provisional data available with stock exchanges showed. Elsewhere in Asia, bourses in China, Japan and Korea were trading on a weak note in their respective early sessions. On the currency front, the rupee also appreciated 24 paise to 69.45 against the US dollar. Brent crude futures, the global oil benchmark, were trading 1.13 per cent lower at 61.29 per barrel.

Sensex jumps over 200 points ahead of RBI policy meet

Odisha Information and Public Relations secretary said that the government has provided enough food to the cyclone-affected districts Puri and Khordha.

"We have given around 3500 quintals of dry food in Puri and Khordha districts. We are also providing free kitchens where people are coming and having their meal," said Information and Public Relations secretary Sanjay Singh.

Chief secretary SAP Padhi also attended the national crisis meeting under the chairmanship of cabinet secretary PK Sinha.

He discussed the state of telecom and power in the state which came to a standstill during the cyclone.

"There is a substantial improvement in the telecom situation. More gangs have reached Odisha and materials have also been moved. A definite roadmap has also been worked out for electrification," said chief secretary Padhi.

Special state level bankers committee also held a meeting to discuss the measures to be adopted by banks and insurance companies in cyclone-affected areas.

It was resolved that banks will implement the master directions of RBI in affected areas.

Banks were also asked to ensure that the existing loans get rescheduled and fresh loans extended to businesses affected by the cyclone.

Insurance companies were also asked to relax the document requirement and expedite the process of releasing the claims in affected areas.&nbsp;

Odisha Information and Public Relations secretary said that the government has provided enough food to the cyclone-affected districts Puri and Khordha. "We have given around 3500 quintals of dry food in Puri and Khordha districts.

Odisha Information and Public Relations secretary said that the government has provided enough food to the cyclone-affected districts Puri and Khordha. "We have given around 3500 quintals of dry food in Puri and Khordha districts. We are also providing free kitchens where people are coming and having their meal," said Information and Public Relations secretary Sanjay Singh. Chief secretary SAP Padhi also attended the national crisis meeting under the chairmanship of cabinet secretary PK Sinha. He discussed the state of telecom and power in the state which came to a standstill during the cyclone. "There is a substantial improvement in the telecom situation. More gangs have reached Odisha and materials have also been moved. A definite roadmap has also been worked out for electrification," said chief secretary Padhi. Special state level bankers committee also held a meeting to discuss the measures to be adopted by banks and insurance companies in cyclone-affected areas. It was resolved that banks will implement the master directions of RBI in affected areas. Banks were also asked to ensure that the existing loans get rescheduled and fresh loans extended to businesses affected by the cyclone. Insurance companies were also asked to relax the document requirement and expedite the process of releasing the claims in affected areas.

Cyclone Fani: Officers hold review meeting, provide food in affected areas of Odisha

The Model Code of Conduct for the Lok Sabha polls is unlikely to have any bearing on the issuance of a revised framework for resolution of stressed assets by the Reserve Bank and the guidelines are expected to be announced before May 23, sources said.

Against the backdrop of the Supreme Court quashing an RBI circular, issued on February 12, 2018, a revised set of rules is under works and would be released soon, they said.

Earlier this month, the Supreme Court had quashed the RBI's February 12 circular on stressed loan recognition and resolution of large borrowers over Rs 2,000 crore, terming it as "ultra vires".

"The model code of conduct exempts RBI's monetary policy. It is unlikely to attract any action if the RBI issues the revised (February 12) circular," sources said.

They said the central bank is in a very advanced stage and the revised circular should be out before declaration of general elections result.

The counting for the ongoing Lok Sabha elections will take place on May 23.

The RBI is looking into all the concerns raised by various stakeholders including banks and power sector companies and may look to tweak the circular without diluting it completely so that the momentum towards resolution of stressed assets is not affected, sources said.

The February 12 circular had mandated banks to refer an NPA account for insolvency proceedings in case a resolution is not found within 180 days. This was for accounts where the outstanding dues was at least Rs 2,000 crore.

Under the RBI norms, an account is classified as a non-performing asset (NPA) if it is not serviced for 90 days.

Sources said various options are being explored for rejigging the NPA framework. One of the options is giving 30-60 days more time in addition to existing 90 days before initiating resolution process for stressed accounts, they added.

While the 90-day period for recognising an account as NPA would remain, the central bank would be looking at providing more leeway for the entities concerned to repay the loans, they said.

Sources said that providing additional time for repayment would help in mitigating hardships faced by micro, small and medium enterprises (MSMEs) to some extent.

In a report last year, the government had favoured an additional 180 days to be provided for resolution of 34 stressed power projects with a view to avoiding potential value erosion of operating plants. The Supreme Court quashed the circular following a petition filed by around 70 stressed companies from the power, shipping and textiles sectors.

A parliamentary panel was among the critics of the now impugned circular.

"Although the new guidelines have been termed as harmonised and simplified generic framework, yet they are far from being so," the standing committee on energy said in its report tabled in Parliament last year.&nbsp;

The Model Code of Conduct for the Lok Sabha polls is unlikely to have any bearing on the issuance of a revised framework for resolution of stressed assets by the Reserve Bank and the guidelines are expected to be announced before May 23, sources said.

The Model Code of Conduct for the Lok Sabha polls is unlikely to have any bearing on the issuance of a revised framework for resolution of stressed assets by the Reserve Bank and the guidelines are expected to be announced before May 23, sources said. Against the backdrop of the Supreme Court quashing an RBI circular, issued on February 12, 2018, a revised set of rules is under works and would be released soon, they said. Earlier this month, the Supreme Court had quashed the RBI's February 12 circular on stressed loan recognition and resolution of large borrowers over Rs 2,000 crore, terming it as "ultra vires". "The model code of conduct exempts RBI's monetary policy. It is unlikely to attract any action if the RBI issues the revised (February 12) circular," sources said. They said the central bank is in a very advanced stage and the revised circular should be out before declaration of general elections result. The counting for the ongoing Lok Sabha elections will take place on May 23. The RBI is looking into all the concerns raised by various stakeholders including banks and power sector companies and may look to tweak the circular without diluting it completely so that the momentum towards resolution of stressed assets is not affected, sources said. The February 12 circular had mandated banks to refer an NPA account for insolvency proceedings in case a resolution is not found within 180 days. This was for accounts where the outstanding dues was at least Rs 2,000 crore. Under the RBI norms, an account is classified as a non-performing asset (NPA) if it is not serviced for 90 days. Sources said various options are being explored for rejigging the NPA framework. One of the options is giving 30-60 days more time in addition to existing 90 days before initiating resolution process for stressed accounts, they added. While the 90-day period for recognising an account as NPA would remain, the central bank would be looking at providing more leeway for the entities concerned to repay the loans, they said. Sources said that providing additional time for repayment would help in mitigating hardships faced by micro, small and medium enterprises (MSMEs) to some extent. In a report last year, the government had favoured an additional 180 days to be provided for resolution of 34 stressed power projects with a view to avoiding potential value erosion of operating plants. The Supreme Court quashed the circular following a petition filed by around 70 stressed companies from the power, shipping and textiles sectors. A parliamentary panel was among the critics of the now impugned circular. "Although the new guidelines have been termed as harmonised and simplified generic framework, yet they are far from being so," the standing committee on energy said in its report tabled in Parliament last year.

RBI's revised guidelines for resolution of stressed assets likely before May 23

The Reserve Bank of India (RBI) has exited the National Housing Bank (NHB) and the National Bank for Agriculture &amp; Rural Development (Nabard), by selling its entire stake to the government for Rs 1,450 crore and Rs 20 crore, respectively, making them fully government-owned. The central bank has sold its stake in NHB on 19 March, while it sold the stake in Nabard on 26 February, the bank said in a statement Wednesday.

"With this divestment, the government now holds 100 per cent stake in both these financial institutions," RBI said in a statement.

The move is part of ending the cross-holding in regulatory institutions and follows the recommendation of second Narasimham committee report of October 2001 and the RBI's own discussion paper on the same entitled 'Harmonising the role and operations of development financial institutions and banks.'

The Narasimham panel had said RBI could not own those entities which are regulated by it.

The RBI said divestment of its shareholding in Nabard was done in two phases. The central bank held 72.5 per cent equity in Nabard worth Rs 1,450 crore, of which 71.5 per cent amounting to Rs 1,430 crore were divested way back in October 2010 and the residual shareholding was divested on February 26, 2019. The RBI held 100 per cent shareholding in NHB, which was divested on 19 March 2019.

Earlier, based on the second Narasimham committee recommendations, the RBI had proposed to transfer its ownership in SBI, NHB and Nabard to the government in October 2001. Accordingly, on 29 June, the government had bought out the entire 59.7 per cent stake in SBI from the Reserve Bank.

The current change in the capital structure of both these financial institutions was brought in by the government through amendments to the Nabard Act of 1981 and the NHB Act of 1987 which were notified on 19 January 2018 and 29 March 2018, respectively.

The Nabard came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation.

Set up with an initial capital of Rs 100 crore, the development finance institution's paid-up capital stood at Rs 10,580 crore as of March 2018. The decision to establish NHB was announced in the 1987-88 Budget. Following that, the National Housing Bank Bill, providing a legislative framework for the NHB, was passed by Parliament in the Winter session of 1987 and it became an Act on December 23, 1987.

The National Housing Policy of 1988 envisaged setting up of NHB as the apex level institution for promoting the housing sector.

The Reserve Bank of India (RBI) has exited the National Housing Bank (NHB) and the National Bank for Agriculture & Rural Development (Nabard), by selling its entire stake to the government for Rs 1,450 crore and Rs 20 crore, respectively, making them fully government-owned.

The Reserve Bank of India (RBI) has exited the National Housing Bank (NHB) and the National Bank for Agriculture & Rural Development (Nabard), by selling its entire stake to the government for Rs 1,450 crore and Rs 20 crore, respectively, making them fully government-owned. The central bank has sold its stake in NHB on 19 March, while it sold the stake in Nabard on 26 February, the bank said in a statement Wednesday. "With this divestment, the government now holds 100 per cent stake in both these financial institutions," RBI said in a statement. The move is part of ending the cross-holding in regulatory institutions and follows the recommendation of second Narasimham committee report of October 2001 and the RBI's own discussion paper on the same entitled 'Harmonising the role and operations of development financial institutions and banks.' The Narasimham panel had said RBI could not own those entities which are regulated by it. The RBI said divestment of its shareholding in Nabard was done in two phases. The central bank held 72.5 per cent equity in Nabard worth Rs 1,450 crore, of which 71.5 per cent amounting to Rs 1,430 crore were divested way back in October 2010 and the residual shareholding was divested on February 26, 2019. The RBI held 100 per cent shareholding in NHB, which was divested on 19 March 2019. Earlier, based on the second Narasimham committee recommendations, the RBI had proposed to transfer its ownership in SBI, NHB and Nabard to the government in October 2001. Accordingly, on 29 June, the government had bought out the entire 59.7 per cent stake in SBI from the Reserve Bank. The current change in the capital structure of both these financial institutions was brought in by the government through amendments to the Nabard Act of 1981 and the NHB Act of 1987 which were notified on 19 January 2018 and 29 March 2018, respectively. The Nabard came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation. Set up with an initial capital of Rs 100 crore, the development finance institution's paid-up capital stood at Rs 10,580 crore as of March 2018. The decision to establish NHB was announced in the 1987-88 Budget. Following that, the National Housing Bank Bill, providing a legislative framework for the NHB, was passed by Parliament in the Winter session of 1987 and it became an Act on December 23, 1987. The National Housing Policy of 1988 envisaged setting up of NHB as the apex level institution for promoting the housing sector.

Reserve Bank of India sells entire stake in National Housing Bank, Nabard to govt for Rs 1,470 cr

Even as its petition is pending at the NCLAT seeking a review of the ban on banks classifying the IL&amp;Fs accounts as NPAs, the Reserve Bank Wednesday directed lenders to disclose their exposure to the bankrupt infra lender in their forthcoming earnings announcements.

The city-headquartered infra lender and its 348 group companies owe over Rs 94,000 crore, of which over Rs 54,000 crore is owed to banks. It began defaulting on repayment commitments from last August, and in October the government superseded its board and appointed a new board under banker Uday Kotak.

In a notification, the central bank said the new directions are as per a February 25 order of the National Company Law Appellate Tribunal (NCLAT), which asked banks not to declare their loans to the company and group as NPAs.

"No financial institution will declare the accounts of IL&amp;FS or its entities as non-performing assets without its prior permission," NCLAT had said.

The RBI moved the review petition on March 19 and a decision is pending now as the tribunal had sought corporate affairs ministry's views to the RBI demand.

Earlier this month, reacting to the NCLAT order, governor Shaktikanta Das had said apex bank had filed a review petition seeking a modification of the previous NCLAT order.

In the notification, RBI has asked banks to disclose the IL&amp;FS and group entities exposure in the notes to accounts in a standard proforma.

The lenders will have to mention the outstanding position on a particular date and give details including overall outstanding and amount which is NPA as per the income recognition and asset classification norms but not classified as NPAs, it said.

They will also have to specify the total provisions which are required to be made as per these norms for the assets and the provisions actually held.

A majority of lenders are yet to report their quarterly and full-year accounts for FY19. A slew of banks have hinted that exposures to IL&amp;FS have impacted their profits in the past quarter as they made provisions towards this account.

Group entity IL&amp;FS Financial Services had reported last month that its NPAs touched 90 per cent.

Media reports on RBI's decision to challenge the NCLAT order had said the insolvency court's decision was "tantamount to judicial overreach".

"The bankruptcy tribunal's order encroaches into RBI's regulatory domain and this could set a precedent if left unchallenged. These issues fall under the ambit of RBI as the regulator of the banking sector," a senior RBI official had said.

Even as its petition is pending at the NCLAT seeking a review of the ban on banks classifying the IL&Fs accounts as NPAs, the Reserve Bank Wednesday directed lenders to disclose their exposure to the bankrupt infra lender in their forthcoming earnings announcements.

Even as its petition is pending at the NCLAT seeking a review of the ban on banks classifying the IL&Fs accounts as NPAs, the Reserve Bank Wednesday directed lenders to disclose their exposure to the bankrupt infra lender in their forthcoming earnings announcements. The city-headquartered infra lender and its 348 group companies owe over Rs 94,000 crore, of which over Rs 54,000 crore is owed to banks. It began defaulting on repayment commitments from last August, and in October the government superseded its board and appointed a new board under banker Uday Kotak. In a notification, the central bank said the new directions are as per a February 25 order of the National Company Law Appellate Tribunal (NCLAT), which asked banks not to declare their loans to the company and group as NPAs. "No financial institution will declare the accounts of IL&FS or its entities as non-performing assets without its prior permission," NCLAT had said. The RBI moved the review petition on March 19 and a decision is pending now as the tribunal had sought corporate affairs ministry's views to the RBI demand. Earlier this month, reacting to the NCLAT order, governor Shaktikanta Das had said apex bank had filed a review petition seeking a modification of the previous NCLAT order. In the notification, RBI has asked banks to disclose the IL&FS and group entities exposure in the notes to accounts in a standard proforma. The lenders will have to mention the outstanding position on a particular date and give details including overall outstanding and amount which is NPA as per the income recognition and asset classification norms but not classified as NPAs, it said. They will also have to specify the total provisions which are required to be made as per these norms for the assets and the provisions actually held. A majority of lenders are yet to report their quarterly and full-year accounts for FY19. A slew of banks have hinted that exposures to IL&FS have impacted their profits in the past quarter as they made provisions towards this account. Group entity IL&FS Financial Services had reported last month that its NPAs touched 90 per cent. Media reports on RBI's decision to challenge the NCLAT order had said the insolvency court's decision was "tantamount to judicial overreach". "The bankruptcy tribunal's order encroaches into RBI's regulatory domain and this could set a precedent if left unchallenged. These issues fall under the ambit of RBI as the regulator of the banking sector," a senior RBI official had said.

RBI asks banks to disclose IL&FS provisions in Q4 accounts

The Reserve Bank of India (RBI) said on Saturday it has not issued any direction with regard to a five-day a week working for commercial banks.

"It has been reported in certain sections of the media that commercial banks would have a 5-day week in terms of RBI instructions. It is clarified that this information is not factually correct," Yogesh Dayal, Chief General Manager of RBI said in an official statement.

"The RBI has not issued any such directions," Dayal said.

Currently, branches of commercial banks observe holiday only on second and fourth Saturday of a month apart from Sunday.

Remaining Saturdays are a full working hour for banks.

The Reserve Bank of India (RBI) said on Saturday it has not issued any direction with regard to a five-day a week working for commercial banks. "It has been reported in certain sections of the media that commercial banks would have a 5-day week in terms of RBI instructions.

The Reserve Bank of India (RBI) said on Saturday it has not issued any direction with regard to a five-day a week working for commercial banks. "It has been reported in certain sections of the media that commercial banks would have a 5-day week in terms of RBI instructions. It is clarified that this information is not factually correct," Yogesh Dayal, Chief General Manager of RBI said in an official statement. "The RBI has not issued any such directions," Dayal said. Currently, branches of commercial banks observe holiday only on second and fourth Saturday of a month apart from Sunday. Remaining Saturdays are a full working hour for banks.

No 5-day a week in commercial banks: RBI

Observing that the global financial crisis has exposed several limitations of conventional and unconventional monetary policy tools, Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said monetary economics in emerging markets needs a rethink.

This includes challenging the conventional wisdom of modern central banks to hike or reduce their interest rates by 25 basis points or multiples thereof, Das said in a special address delivered on the sidelines of the annual Spring Meetings of the International Monetary Fund and World Bank.

Highly appreciated by the audience for his call for out-of-the-box thinking to address monetary policy challenges of the 21st century, Das said the unconventional monetary policies of advanced economies have resulted in "risks and spillovers" for the emerging markets.

In his speech titled 'Global Risks and Policy Challenges facing Emerging Market Economies', Das observed that the global financial crisis has exposed several limitations of conventional and unconventional monetary policy tools.&nbsp;

In despair, some have turned to the heterodox evolution of ideas that are being practised as modern monetary theory, he noted.

In the end, monetary policy must touch the real economy, spur investments, and maintain monetary and financial stability, he asserted.&nbsp;

The time has come to think out of the box, including by challenging the conventional wisdom, he told the packed auditorium.&nbsp;

Typically, modern central banks with interest rates as their main instrument move in baby steps -- 25 basis points or multiples thereof -- and announce a stance of tightening, neutrality or accommodation to guide the markets and the public on the likely future course of policy, he said.&nbsp;

"One thought that comes to my mind is that if the unit of 25 basis points is not sacrosanct and just a convention, monetary policy can be well served by calibrating the size of the policy rate to the dynamics of the situation and the size of the change itself can convey the stance of policy," the RBI Governor said.&nbsp;

For instance, if easing of monetary policy is required but the central bank prefers to be cautious in its accommodation, a 10 basis points reduction in the policy rate would perhaps communicate the intent of authorities more clearly than two separate moves -- one on the policy rate, wasting 15 basis points of valuable rate action to rounding off, and the other on the stance, which in a sense binds future policy action to a pre-committed direction, he said.&nbsp;

Likewise, in a situation in which the central bank prefers to be accommodative but not overly so, it could announce a cut in the policy rate by 35 basis points if it has judged that the standard 25 basis points is too little, but its multiple, that is 50 basis points, is too much.&nbsp;

"This approach can also be useful when the central bank is on a tightening mode and potentially help avoid policy turnaround from forward guidance via stance too far into the future, which in a highly volatile global scenario, may not even be a year," Das said.&nbsp;

Stating that management of global spillovers poses a formidable challenge to emerging market economies, Das told the audience that a truly global financial safety net remains elusive as in this age of mobile capital flows, consequences of their arrivals, sudden stops and reversals are to be borne nationally.&nbsp;

As a result, emerging market economies (EMEs) are typically at the receiving end when global spillovers flare up, he said, adding that they have no recourse but to build their own forex reserve buffers.&nbsp;

Paradoxically, the accumulation of reserves has become stigmatised, including with labels such as "currency manipulation", he rued.&nbsp; 
"As I see it, we may be unintentionally setting the stage for several EME currencies to break out and challenge the hegemony of the dominant reserve currencies.&nbsp;

"There is a need for greater understanding on both sides. In the meantime, so far as the Reserve Bank of India is concerned, we will continue to play by the extant rules of the game," Das said in his special address.

Das also said central banks have to interact closely with financial markets for transmission of monetary policy impulses.&nbsp;

"In this context, ensuring a sound and efficient payment and settlement system is a pre-requisite," he noted.&nbsp;

Observing that the global financial crisis has exposed several limitations of conventional and unconventional monetary policy tools, Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said monetary economics in emerging markets needs a rethink.

Observing that the global financial crisis has exposed several limitations of conventional and unconventional monetary policy tools, Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said monetary economics in emerging markets needs a rethink. This includes challenging the conventional wisdom of modern central banks to hike or reduce their interest rates by 25 basis points or multiples thereof, Das said in a special address delivered on the sidelines of the annual Spring Meetings of the International Monetary Fund and World Bank. Highly appreciated by the audience for his call for out-of-the-box thinking to address monetary policy challenges of the 21st century, Das said the unconventional monetary policies of advanced economies have resulted in "risks and spillovers" for the emerging markets. In his speech titled 'Global Risks and Policy Challenges facing Emerging Market Economies', Das observed that the global financial crisis has exposed several limitations of conventional and unconventional monetary policy tools. In despair, some have turned to the heterodox evolution of ideas that are being practised as modern monetary theory, he noted. In the end, monetary policy must touch the real economy, spur investments, and maintain monetary and financial stability, he asserted. The time has come to think out of the box, including by challenging the conventional wisdom, he told the packed auditorium. Typically, modern central banks with interest rates as their main instrument move in baby steps -- 25 basis points or multiples thereof -- and announce a stance of tightening, neutrality or accommodation to guide the markets and the public on the likely future course of policy, he said. "One thought that comes to my mind is that if the unit of 25 basis points is not sacrosanct and just a convention, monetary policy can be well served by calibrating the size of the policy rate to the dynamics of the situation and the size of the change itself can convey the stance of policy," the RBI Governor said. For instance, if easing of monetary policy is required but the central bank prefers to be cautious in its accommodation, a 10 basis points reduction in the policy rate would perhaps communicate the intent of authorities more clearly than two separate moves -- one on the policy rate, wasting 15 basis points of valuable rate action to rounding off, and the other on the stance, which in a sense binds future policy action to a pre-committed direction, he said. Likewise, in a situation in which the central bank prefers to be accommodative but not overly so, it could announce a cut in the policy rate by 35 basis points if it has judged that the standard 25 basis points is too little, but its multiple, that is 50 basis points, is too much. "This approach can also be useful when the central bank is on a tightening mode and potentially help avoid policy turnaround from forward guidance via stance too far into the future, which in a highly volatile global scenario, may not even be a year," Das said. Stating that management of global spillovers poses a formidable challenge to emerging market economies, Das told the audience that a truly global financial safety net remains elusive as in this age of mobile capital flows, consequences of their arrivals, sudden stops and reversals are to be borne nationally. As a result, emerging market economies (EMEs) are typically at the receiving end when global spillovers flare up, he said, adding that they have no recourse but to build their own forex reserve buffers. Paradoxically, the accumulation of reserves has become stigmatised, including with labels such as "currency manipulation", he rued. "As I see it, we may be unintentionally setting the stage for several EME currencies to break out and challenge the hegemony of the dominant reserve currencies. "There is a need for greater understanding on both sides. In the meantime, so far as the Reserve Bank of India is concerned, we will continue to play by the extant rules of the game," Das said in his special address. Das also said central banks have to interact closely with financial markets for transmission of monetary policy impulses. "In this context, ensuring a sound and efficient payment and settlement system is a pre-requisite," he noted.

Monetary economics in emerging markets needs a rethink, says RBI Governor

The Delhi High Court on Wednesday asked the Reserve Bank as to how was GPay, Google’s mobile payment app, facilitating financial transactions without its authorisation.

A bench of Chief Justice Rajendra Menon and Justice A J Bhambhani posed the query to RBI while hearing a PIL which claimed that Google Pay (GPay) was operating as a payments system provider in violation of the Payments and Settlements Act as it has no valid authorisation from the central bank to carry out such functions.

The court issued a notice to Reserve Bank of India and Google India seeking their stand on the issue raised in the plea by Abhijit Mishra, who contended that GPay does not figure in RBI’s list of authorised ‘payment systems operators’ released on March 20, 2019.

“How are they (GPay) operating without permission,” the bench asked RBI and listed the matter for further hearing on April 29.

Mishra has also raised privacy concerns by claiming that “GPay through its unauthorised operation in India as a payment and settlement systems has un-monitored and unauthorised access to the personal information such as Aadhaar, PAN, (financial) transactions etc. of the public”.

The petition has sought a direction to RBI to order Google to “immediately” stop GPay’s “unauthorised operation” in India.

In response to a query about payment system operators, RBI has said that its authorisation was mandatory for setting up such a mechanism in India, the petition stated.

RBI also said that GPay was not on the list of authorised payment system operators, the plea stated, adding that “as on March 30, 2019, GPay is not a listed partner of the Bhim Aadhaar app as per the official website of Bhim Aadhaar”.

Bharat Interface for Money application, also known as ‘BHIM app’, has been developed by the National Payments Corporation of India (NPCI) for facilitating payments through mobile phones, the petition said.

It has further said that RBI’s master circular of April 6 last year on storage of payment system data states that all such entities should ensure that the entire data related to payment systems operated by them are stored only in India.

Google Pay by virtue of unauthorised access to the BHIM Aadhaar Unified Payments Interface (UPI) can have a serious detrimental effect on the privacy and personal liberty of Indian citizens as the data might be stored in servers located outside India.

“This is in gross violation of the principals enshrined under the purview of Article 21 of the Indian Constitution by letting an unauthorised private company to access the personal account details of the Indian citizens,” Mishra, who claims to be a financial economist, has claimed in his plea.

The petition has also contended that GPay was operating in “complete defiance” of the RBI’s scheme to constitute an ombudsman for redressal of complaints against deficiency in services related to digital transactions.

The petitioner has sought a “compliance audit” of GPay under the Payments and Settlements Act and to impose penalties on Google India for GPay’s unauthorised operation in contravention of the laws, regulations and procedure”.

The Delhi High Court on Wednesday asked the Reserve Bank as to how was GPay, Google’s mobile payment app, facilitating financial transactions without its authorisation.

The Delhi High Court on Wednesday asked the Reserve Bank as to how was GPay, Google’s mobile payment app, facilitating financial transactions without its authorisation. A bench of Chief Justice Rajendra Menon and Justice A J Bhambhani posed the query to RBI while hearing a PIL which claimed that Google Pay (GPay) was operating as a payments system provider in violation of the Payments and Settlements Act as it has no valid authorisation from the central bank to carry out such functions. The court issued a notice to Reserve Bank of India and Google India seeking their stand on the issue raised in the plea by Abhijit Mishra, who contended that GPay does not figure in RBI’s list of authorised ‘payment systems operators’ released on March 20, 2019. “How are they (GPay) operating without permission,” the bench asked RBI and listed the matter for further hearing on April 29. Mishra has also raised privacy concerns by claiming that “GPay through its unauthorised operation in India as a payment and settlement systems has un-monitored and unauthorised access to the personal information such as Aadhaar, PAN, (financial) transactions etc. of the public”. The petition has sought a direction to RBI to order Google to “immediately” stop GPay’s “unauthorised operation” in India. In response to a query about payment system operators, RBI has said that its authorisation was mandatory for setting up such a mechanism in India, the petition stated. RBI also said that GPay was not on the list of authorised payment system operators, the plea stated, adding that “as on March 30, 2019, GPay is not a listed partner of the Bhim Aadhaar app as per the official website of Bhim Aadhaar”. Bharat Interface for Money application, also known as ‘BHIM app’, has been developed by the National Payments Corporation of India (NPCI) for facilitating payments through mobile phones, the petition said. It has further said that RBI’s master circular of April 6 last year on storage of payment system data states that all such entities should ensure that the entire data related to payment systems operated by them are stored only in India. Google Pay by virtue of unauthorised access to the BHIM Aadhaar Unified Payments Interface (UPI) can have a serious detrimental effect on the privacy and personal liberty of Indian citizens as the data might be stored in servers located outside India. “This is in gross violation of the principals enshrined under the purview of Article 21 of the Indian Constitution by letting an unauthorised private company to access the personal account details of the Indian citizens,” Mishra, who claims to be a financial economist, has claimed in his plea. The petition has also contended that GPay was operating in “complete defiance” of the RBI’s scheme to constitute an ombudsman for redressal of complaints against deficiency in services related to digital transactions. The petitioner has sought a “compliance audit” of GPay under the Payments and Settlements Act and to impose penalties on Google India for GPay’s unauthorised operation in contravention of the laws, regulations and procedure”.

How is 'Google Pay' operating without authorisation: Delhi high court asks RBI

Union Minister of Railways and former Finance Minister Piyush Goyal on Friday expressed his happiness over the rate cuts announced by the RBI.

He also praised the RBI Governor Shaktikant Das.

"I am glad that the Governor of the RBI seems to have made the right moves in the last five months," he said while speaking to reporters.

On being asked if the rate cuts should have come earlier, Goyal said, "I wish everybody was as persistent in the effort to promote growth."

The Union Minister added, "Heinous crime of politician needs to be brought out in the public and India needs to know about those politicians. Such politicians should not be given space in politics."

Goyal also talked of the advantage of Electoral bonds while claiming that his party is seriously working to bring legitimate money in the election.

"Electoral bonds advantage is that there is anonymity but you can give it to any party and nobody will know about it. We as a party had decided not to accept money without cheque or bond," he said while asserting that Electoral bonds have an important role in good governance.

The Reserve Bank of India (RBI) on Thursday cut repo rate for the second consecutive time this year to 6 per cent from the current 6.25 per cent, a move that will cheer industry leaders over relief from high borrowing costs a week before the first phase of General elections.

&nbsp;

 
&nbsp;

Union Minister of Railways and former Finance Minister Piyush Goyal on Friday expressed his happiness over the rate cuts announced by the RBI. He also praised the RBI Governor Shaktikant Das.

Union Minister of Railways and former Finance Minister Piyush Goyal on Friday expressed his happiness over the rate cuts announced by the RBI. He also praised the RBI Governor Shaktikant Das. "I am glad that the Governor of the RBI seems to have made the right moves in the last five months," he said while speaking to reporters. On being asked if the rate cuts should have come earlier, Goyal said, "I wish everybody was as persistent in the effort to promote growth." The Union Minister added, "Heinous crime of politician needs to be brought out in the public and India needs to know about those politicians. Such politicians should not be given space in politics." Goyal also talked of the advantage of Electoral bonds while claiming that his party is seriously working to bring legitimate money in the election. "Electoral bonds advantage is that there is anonymity but you can give it to any party and nobody will know about it. We as a party had decided not to accept money without cheque or bond," he said while asserting that Electoral bonds have an important role in good governance. The Reserve Bank of India (RBI) on Thursday cut repo rate for the second consecutive time this year to 6 per cent from the current 6.25 per cent, a move that will cheer industry leaders over relief from high borrowing costs a week before the first phase of General elections.

Piyush Goyal 'glad' over RBI governor 'making right moves'

The Reserve Bank of India(RBI) today cut benchmark lending rate by 0.25 per cent to 6 per cent.

The decision&nbsp;came as a relief for home loan buyers.

The RBI maintained a neutral stance on the monetary policy.

The central bank&nbsp;projected GDP growth for 2019-20 at 7.2 per cent. RBI revised downward retail inflation estimate to 2.4 per cent in Q4 FY19, 2.9-3 per cent in H1 FY20 and 3.5-3.8 per cent in H2 FY20.

Four out of six MPC members voted for the rate cut while the other two members favoured no change in repo rate, the RBI informed.

In February, the RBI had cut interest rates for the first time in 18 months by 25 basis points to 6.25 per cent. The move was as a result of low inflation at the time. Besides the repo rate, reverse repo was reduced to 6 per cent from 6.25 per cent.

Repo rate is the rate at which commercial banks borrow money from the RBI; while reverse repo rate is the rate at which RBI collects money from banks.

RBI had last hiked interest rates in August 2018 by 0.25 per cent. It came on back of a similar increase in June, 2018.

The Reserve Bank of India(RBI) today cut benchmark lending rate by 0.25 per cent to 6 per cent. The decision came as a relief for home loan buyers. The RBI maintained a neutral stance on the monetary policy.

The Reserve Bank of India(RBI) today cut benchmark lending rate by 0.25 per cent to 6 per cent. The decision came as a relief for home loan buyers. The RBI maintained a neutral stance on the monetary policy. The central bank projected GDP growth for 2019-20 at 7.2 per cent. RBI revised downward retail inflation estimate to 2.4 per cent in Q4 FY19, 2.9-3 per cent in H1 FY20 and 3.5-3.8 per cent in H2 FY20. Four out of six MPC members voted for the rate cut while the other two members favoured no change in repo rate, the RBI informed. In February, the RBI had cut interest rates for the first time in 18 months by 25 basis points to 6.25 per cent. The move was as a result of low inflation at the time. Besides the repo rate, reverse repo was reduced to 6 per cent from 6.25 per cent. Repo rate is the rate at which commercial banks borrow money from the RBI; while reverse repo rate is the rate at which RBI collects money from banks. RBI had last hiked interest rates in August 2018 by 0.25 per cent. It came on back of a similar increase in June, 2018.

RBI cuts lending rate by 0.25 per cent to 6 per cent; projects GDP growth for 2019-20 at 7.2%

India's Supreme Court on Tuesday quashed a <a href="https://www.wionews.com/business-economy/avoiding-temptation-rbi-likely-to-cut-key-rate-by-just-25-basis-points-207455">Reserve Bank of India</a> circular on resolving bad debt, providing relief for some major corporate defaulters but throwing the country's still nascent bankruptcy regime into question.

The Supreme Court said the RBI's circular from Feb. 12 last year on how banks should handle defaulters was "ultra vires", essentially meaning the central bank acted beyond its powers.

The RBI circular had directed banks unable to agree upon a resolution plan with any defaulter within 180 days to drag the defaulter into a time-bound insolvency process.

"The impugned circular will have to be declared as ultra vires as a whole, and be declared to be of no effect in law," the court said in its judgement. "All actions taken under the said circular, including actions by which the Insolvency Code has been triggered must fall along with the said circular."

A spokesman for the RBI declined to comment, saying it had yet to analyse the court order.

Several companies challenged the circular in court arguing the time given by the central bank was insufficient to tackle bad debt. Some had even challenged the validity of the RBI's directive saying its "one-size-fits-all" did not account for external factors.

The ruling gives relief to several companies, especially power companies, who have defaulted on loans due to issues with coal and gas supplies or problems tied to state governments not honouring power purchase agreements.

It also provides a breather for companies in the sugar, shipping, infrastructure and textile sectors which were under pressure, said several bankers and lawyers.

"If the RBI wants to (now) take action they have to go case specific and then initiate action. But you can't do a generic across the board cookie-cutter approach," said Amit Kapur, of law firm J. Sagar Associates, which represented several power companies in the court. The RBI may now have to come up with a new circular, he said.

BACKWARD STEP

Some bankers, however, fear the ruling may result in more wrangling between banks and borrowers around soured loans and dent bankruptcy reforms.

Foreign investors have often complained about the tardy pace of bad debt resolution in India, which has held back billions of dollars of investment in the country.

Indian banks and financial institutions currently hold total bad debt of over 10 trillion rupees ($146 billion) and this has also affected their ability to lend and spur economic growth.

"This will once again mean we are back to the old days when banks and companies used to delay debt resolution, with each one trying to buy time," said one banker handling non-performing accounts at a state-run bank.

Lawyers and bankers also agree the ruling could delay an already slow debt resolution process and that it may hurt banks' earnings.

Global rating agency Moody's said the judgement was credit negative for Indian banks and warned it could further delay the resolution process of bad debt in India.

Tuesday's ruling also raises questions around the validity of a debt resolution plan at beleaguered carrier Jet Airways as bankers said that a part of the resolution process was based on processes laid out in the RBI's Feb. 12 circular that the court has now quashed in its entirety.

However, a partner at a top law firm in India told Reuters that Jet's debt resolution plan might not be derailed as lenders could have taken the decision even without the central bank's circular.

"It is only the punitive action or coercive action under the circular which will get affected by this," the lawyer said. "The banks could have contractually, restructured loans whether there was an RBI circular or not," he said.

India's Supreme Court on Tuesday quashed a Reserve Bank of India circular on resolving bad debt, providing relief for some major corporate defaulters but throwing the country's still nascent bankruptcy regime into question.

India's Supreme Court on Tuesday quashed a Reserve Bank of India circular on resolving bad debt, providing relief for some major corporate defaulters but throwing the country's still nascent bankruptcy regime into question. The Supreme Court said the RBI's circular from Feb. 12 last year on how banks should handle defaulters was "ultra vires", essentially meaning the central bank acted beyond its powers. The RBI circular had directed banks unable to agree upon a resolution plan with any defaulter within 180 days to drag the defaulter into a time-bound insolvency process. "The impugned circular will have to be declared as ultra vires as a whole, and be declared to be of no effect in law," the court said in its judgement. "All actions taken under the said circular, including actions by which the Insolvency Code has been triggered must fall along with the said circular." A spokesman for the RBI declined to comment, saying it had yet to analyse the court order. Several companies challenged the circular in court arguing the time given by the central bank was insufficient to tackle bad debt. Some had even challenged the validity of the RBI's directive saying its "one-size-fits-all" did not account for external factors. The ruling gives relief to several companies, especially power companies, who have defaulted on loans due to issues with coal and gas supplies or problems tied to state governments not honouring power purchase agreements. It also provides a breather for companies in the sugar, shipping, infrastructure and textile sectors which were under pressure, said several bankers and lawyers. "If the RBI wants to (now) take action they have to go case specific and then initiate action. But you can't do a generic across the board cookie-cutter approach," said Amit Kapur, of law firm J. Sagar Associates, which represented several power companies in the court. The RBI may now have to come up with a new circular, he said. BACKWARD STEP Some bankers, however, fear the ruling may result in more wrangling between banks and borrowers around soured loans and dent bankruptcy reforms. Foreign investors have often complained about the tardy pace of bad debt resolution in India, which has held back billions of dollars of investment in the country. Indian banks and financial institutions currently hold total bad debt of over 10 trillion rupees ($146 billion) and this has also affected their ability to lend and spur economic growth. "This will once again mean we are back to the old days when banks and companies used to delay debt resolution, with each one trying to buy time," said one banker handling non-performing accounts at a state-run bank. Lawyers and bankers also agree the ruling could delay an already slow debt resolution process and that it may hurt banks' earnings. Global rating agency Moody's said the judgement was credit negative for Indian banks and warned it could further delay the resolution process of bad debt in India. Tuesday's ruling also raises questions around the validity of a debt resolution plan at beleaguered carrier Jet Airways as bankers said that a part of the resolution process was based on processes laid out in the RBI's Feb. 12 circular that the court has now quashed in its entirety. However, a partner at a top law firm in India told Reuters that Jet's debt resolution plan might not be derailed as lenders could have taken the decision even without the central bank's circular. "It is only the punitive action or coercive action under the circular which will get affected by this," the lawyer said. "The banks could have contractually, restructured loans whether there was an RBI circular or not," he said.

Supreme Court quashes RBI directive on resolving bad debt

<a href="https://www.wionews.com/india-news/congress-manifesto-some-ideas-positively-dangerous-says-bjp-207472">Lok Sabha polls 2019: Congress releases manifesto, BJP says some of its ideas 'positively dangerous'</a>

The BJP said Tuesday that some of the ideas in the Congress manifesto were "positively dangerous".&nbsp;

The pushback — the Congress manifesto had been released earlier on Tuesday — was launched by Union Finance Minister Arun Jaitley who said the ideas were "an agenda for the Balkanisation of India".&nbsp;

Jaitley was by and large referring to what the Congress manifesto has said about Kashmir.&nbsp;

&nbsp;

<a href="https://www.wionews.com/business-economy/avoiding-temptation-rbi-likely-to-cut-key-rate-by-just-25-basis-points-207455">Reserve Bank of India likely to cut interest rate by 0.25%: Analysts</a>

The Reserve Bank of India (RBI) is likely to cut its policy interest rate by 25 basis points on Thursday, despite some analysts believing the country's weakening economic growth and subdued inflation outlook warrant a larger reduction.

 
<a href="https://www.wionews.com/india-news/what-exactly-does-the-congress-manifesto-promise-207487">What exactly does the Congress manifesto say?&nbsp;</a>

The Congress released its manifesto for the upcoming Lok Sabha elections on Tuesday, and the BJP was quick to say some of the ideas in it were "positively dangerous".&nbsp;

Union Finance Minister Arun Jaitley went so far as to say some of the ideas in the manifesto were "an agenda for the Balkanisation of India". But what else does the 55-page long Congress manifesto called "Hum Nibhayenge" or "We Will Deliver" say?&nbsp;

&nbsp;

<a href="https://www.wionews.com/world/un-chief-antonio-guterres-warns-against-rising-anti-muslim-hatred-207514">UN chief Antonio Guterres warns against rising anti-Muslim hatred</a>

UN chief Antonio Guterres warned Tuesday against growing hatred of Muslims, less than a month after a deadly attack on mosques in New Zealand killed at least 50 people.

 
<a href="https://www.wionews.com/world/uk-lawmakers-to-try-to-force-pm-may-to-seek-further-brexit-delay-207516">British MPs to try to force PM May to ask for another Brexit delay</a>

A group of British lawmakers said on Tuesday they would try to pass a law which would force Prime Minister Theresa May to seek a delay to Britain's departure from the European Union and thus prevent a chaotic no-deal Brexit on April 12.

Lok Sabha polls 2019: Congress releases manifesto, BJP says some of its ideas 'positively dangerous' The BJP said Tuesday that some of the ideas in the Congress manifesto were "positively dangerous".

Lok Sabha polls 2019: Congress releases manifesto, BJP says some of its ideas 'positively dangerous' The BJP said Tuesday that some of the ideas in the Congress manifesto were "positively dangerous". The pushback — the Congress manifesto had been released earlier on Tuesday — was launched by Union Finance Minister Arun Jaitley who said the ideas were "an agenda for the Balkanisation of India". Jaitley was by and large referring to what the Congress manifesto has said about Kashmir. Reserve Bank of India likely to cut interest rate by 0.25%: Analysts The Reserve Bank of India (RBI) is likely to cut its policy interest rate by 25 basis points on Thursday, despite some analysts believing the country's weakening economic growth and subdued inflation outlook warrant a larger reduction. What exactly does the Congress manifesto say? The Congress released its manifesto for the upcoming Lok Sabha elections on Tuesday, and the BJP was quick to say some of the ideas in it were "positively dangerous". Union Finance Minister Arun Jaitley went so far as to say some of the ideas in the manifesto were "an agenda for the Balkanisation of India". But what else does the 55-page long Congress manifesto called "Hum Nibhayenge" or "We Will Deliver" say? UN chief Antonio Guterres warns against rising anti-Muslim hatred UN chief Antonio Guterres warned Tuesday against growing hatred of Muslims, less than a month after a deadly attack on mosques in New Zealand killed at least 50 people. British MPs to try to force PM May to ask for another Brexit delay A group of British lawmakers said on Tuesday they would try to pass a law which would force Prime Minister Theresa May to seek a delay to Britain's departure from the European Union and thus prevent a chaotic no-deal Brexit on April 12.

News brief: Big stories of the day

The <a href="https://www.wionews.com/business-economy/reserve-bank-of-india-board-approves-rs-28000-crore-interim-dividend-to-government-198155">Reserve Bank of India (RBI)</a>&nbsp;is likely to cut its policy interest rate by 25 basis points on Thursday, despite some analysts believing the country's weakening economic growth and subdued inflation outlook warrant a larger reduction.

The RBI's six-member monetary policy committee (MPC) began its three-day review on Tuesday, and most analysts expected it to take a cautious approach given uncertainty over who will lead the government after the coming election and what their fiscal policy will be.

Campaigning for votes, political parties have been promising dole-outs including direct cash payments to poor people if they win power, stoking potential inflation fears.

The inflation outlook could also be upset by the perennial risk of sharply higher food prices if the monsoon season rains disappoint.

With that in mind, more than 85 per cent of the nearly 70 economists polled by Reuters expected the RBI to cut its benchmark lending rate, the repo rate, by 25 basis points to 6.00 per cent on April 4.

Yet, India's debt market appears to have priced in a 50 basis-point cut.

Trading at 5.90 per cent, the one-year interest rate swap works out at 5.75 per cent on a daily basis, putting it 50 basis points below the current repo rate, according to rate derivative dealers.

"I think the RBI will be more cautious than what the market is expecting," said Abheek Barua, chief economist at HDFC Bank in New Delhi.

"We haven't fallen off the cliff yet for a 50 basis point cut," he said.

Whereas Prime Minister Narendra Modi's administration clashed with the RBI's previous leadership on several issues including rate cuts last year, relations improved after the government appointed Governor Shaktikanta Das in December.

Officials with knowledge of the government's thinking on monetary policy said there was no pressure on the RBI to make a sharper rate cut at this time, despite economic growth weakening to 6.6 per cent in December quarter, its slowest in five quarters, and the unemployment rate hitting a multi-decade high.

"The mandate of the MPC is to focus on inflation and if inflation is below the target it should cut the rate," said an official privy to policy discussions.

"Ideally there is a scope for 50 basis point cut now, but one has to be careful of any upside risks to inflation as well," the official added.

Annual retail inflation was just 2.57 per cent in February following five months of deflation in food prices, and the RBI has projected a rise to 3.9 per cent by the end of December. But that could change quickly if the monsoon fails or global oil prices surge.

"We do not expect a drastic cut from the RBI, a calibrated approach would be our expectation, 25 basis points (bps) is more likely in our view. But, that is a call RBI has to take," said a second government official.

The MPC could be reluctant to make a deeper cut in any case, as banks only reduced their lending rates by a token 5-10 basis points after the RBI's last 25 bps cut in February.

"Savings growth has come down sharply and every bank is competing with another to attract depositors," said a top banker at a very large state bank in India.

"Under such circumstance, we won't be able to lower deposit rates, and in that case, there is no room to cut lending rates," he said, declining to be named due to sensitivity over relations with the central bank.

The Reserve Bank of India (RBI) is likely to cut its policy interest rate by 25 basis points on Thursday, despite some analysts believing the country's weakening economic growth and subdued inflation outlook warrant a larger reduction.

The Reserve Bank of India (RBI) is likely to cut its policy interest rate by 25 basis points on Thursday, despite some analysts believing the country's weakening economic growth and subdued inflation outlook warrant a larger reduction. The RBI's six-member monetary policy committee (MPC) began its three-day review on Tuesday, and most analysts expected it to take a cautious approach given uncertainty over who will lead the government after the coming election and what their fiscal policy will be. Campaigning for votes, political parties have been promising dole-outs including direct cash payments to poor people if they win power, stoking potential inflation fears. The inflation outlook could also be upset by the perennial risk of sharply higher food prices if the monsoon season rains disappoint. With that in mind, more than 85 per cent of the nearly 70 economists polled by Reuters expected the RBI to cut its benchmark lending rate, the repo rate, by 25 basis points to 6.00 per cent on April 4. Yet, India's debt market appears to have priced in a 50 basis-point cut. Trading at 5.90 per cent, the one-year interest rate swap works out at 5.75 per cent on a daily basis, putting it 50 basis points below the current repo rate, according to rate derivative dealers. "I think the RBI will be more cautious than what the market is expecting," said Abheek Barua, chief economist at HDFC Bank in New Delhi. "We haven't fallen off the cliff yet for a 50 basis point cut," he said. Whereas Prime Minister Narendra Modi's administration clashed with the RBI's previous leadership on several issues including rate cuts last year, relations improved after the government appointed Governor Shaktikanta Das in December. Officials with knowledge of the government's thinking on monetary policy said there was no pressure on the RBI to make a sharper rate cut at this time, despite economic growth weakening to 6.6 per cent in December quarter, its slowest in five quarters, and the unemployment rate hitting a multi-decade high. "The mandate of the MPC is to focus on inflation and if inflation is below the target it should cut the rate," said an official privy to policy discussions. "Ideally there is a scope for 50 basis point cut now, but one has to be careful of any upside risks to inflation as well," the official added. Annual retail inflation was just 2.57 per cent in February following five months of deflation in food prices, and the RBI has projected a rise to 3.9 per cent by the end of December. But that could change quickly if the monsoon fails or global oil prices surge. "We do not expect a drastic cut from the RBI, a calibrated approach would be our expectation, 25 basis points (bps) is more likely in our view. But, that is a call RBI has to take," said a second government official. The MPC could be reluctant to make a deeper cut in any case, as banks only reduced their lending rates by a token 5-10 basis points after the RBI's last 25 bps cut in February. "Savings growth has come down sharply and every bank is competing with another to attract depositors," said a top banker at a very large state bank in India. "Under such circumstance, we won't be able to lower deposit rates, and in that case, there is no room to cut lending rates," he said, declining to be named due to sensitivity over relations with the central bank.

Reserve Bank of India likely to cut interest rate by 0.25%: Analysts

RBI likely to go for another 25 bps cut

<a href="http://www.wionews.com/business-economy/december-retail-inflation-rate-drops-to-219-lowest-since-june-2017-190234">Consumer inflation</a> in the month of February rose to 2.57 per cent, government data revealed on Tuesday. Consumer inflation was revised to 1.97 per cent in January this year from 2.05 per cent.&nbsp;

In a surprise move on February 7, the Reserve Bank of India's Monetary Policy Committee (MPC) cut the benchmark repo rate 25 basis points to 6.25 per cent, in its first cut in 18 months.

The MPC, which mainly monitors retail inflation data, also revised down its inflation projections for the period from April to September to 3.2 per cent to 3.4 per cent, from 3.8 per cent to 4.2 per cent.

Inflation pressures have eased in recent months, following falls in food and crude oil prices. India imports nearly 80 per cent of oil it consumes.

Meanwhile,&nbsp;India's industrial output in January rose 1.7 per cent from a year earlier, lower than forecast, government data showed on Tuesday.

January's growth was much slower than the upwardly revised 2.6 per cent year-on-year increase in December, the data showed.

(With inputs from Reuters)

Consumer inflation in the month of February rose to 2.57 per cent, government data revealed on Tuesday. Consumer inflation was revised to 1.97 per cent in January this year from 2.

Consumer inflation in the month of February rose to 2.57 per cent, government data revealed on Tuesday. Consumer inflation was revised to 1.97 per cent in January this year from 2.05 per cent. In a surprise move on February 7, the Reserve Bank of India's Monetary Policy Committee (MPC) cut the benchmark repo rate 25 basis points to 6.25 per cent, in its first cut in 18 months. The MPC, which mainly monitors retail inflation data, also revised down its inflation projections for the period from April to September to 3.2 per cent to 3.4 per cent, from 3.8 per cent to 4.2 per cent. Inflation pressures have eased in recent months, following falls in food and crude oil prices. India imports nearly 80 per cent of oil it consumes. Meanwhile, India's industrial output in January rose 1.7 per cent from a year earlier, lower than forecast, government data showed on Tuesday. January's growth was much slower than the upwardly revised 2.6 per cent year-on-year increase in December, the data showed. (With inputs from Reuters)

Retail inflation up to 2.57% in February: Government data

The RBI in reply to an RTI query said it has no data on the old 500 and 1,000 rupee notes used to pay for utility bills such as fuel at petrol pumps, which are believed to have formed a good part of the demonetised currency that returned to the banking system.

After the November 8, 2016 shock decision to ban the use of old 500 and 1,000 rupee notes, the government had allowed the exchange of the junked notes, as well as they, were used for payment of utility bills for 23 services.

Both 500 and 1,000 rupee notes could be used at government hospitals, railway ticketing, public transport, airline ticketing at airports, milk booths, crematoria/burial grounds, petrol pumps, metro rail tickets, purchase of medicines on doctor prescription from the government and private pharmacies, LPG gas cylinders, railway catering, electricity and water bills, ASI monument entry tickets and highway toll.

On November 25, 2016, the exchange of old notes was stopped and the government allowed the use of only old 500 rupee notes at these utilities till December 15, 2016. The government, however, stopped the use of even this currency at petrol pumps and for the purchase of air tickets at airports abruptly with effect from December 2, 2016, after reports that they are&nbsp;becoming fronts for laundering of old currency notes.

In reply to the Right to Information (RTI) query, the RBI said: "information on (invalidated) notes used for paying utility bills is not available with us".

As much as 99.3 per cent of the junked Rs 500 and Rs 1,000 notes have returned to the banking system, the RBI had stated in August last year, indicating that just a miniscule percentage of currency was left out of the system after the government's unprecedented note ban aimed at curbing black money and corruption.

Of the Rs 15.41 lakh crore worth Rs 500 and Rs 1,000 notes in circulation on November 8, 2016, when the note ban was announced, currency worth Rs 15.31 lakh crore have been returned.

On the issue of number and value of invalidated or demonetised currency notes being exchanged, the RBI in the RTI reply referred to a November 28, 2016 press statement where it had stated that "Banks have since reported that such exchange/deposits effected from November 10, 2016, upto November 27, 2016 amounted to Rs 8,44,982 crore (exchange amounted to Rs 33,948 crore and deposits amounted to Rs 8,11,033 crore).

"The facility of exchange of Specified Bank Notes at banks' counter was available up to November 24, 2016," it said.

Specified Bank Notes or SBN is the term used to denote the demonetised currency which was allowed to be deposited in bank accounts till December 30, 2016.

The Reserve Bank of India also said it did not have information on the number of SBNs used to buy KYC-compliant instruments like insurance policies.

The central bank referred a part of the RTI to the Insurance Regulatory and Development Authority of India (IRDAI) which also stated that it does not have information on old notes used to pay for insurance policies as "it is not maintained by the Authority".&nbsp;

The RBI in reply to an RTI query said it has no data on the old 500 and 1,000 rupee notes used to pay for utility bills such as fuel at petrol pumps, which are believed to have formed a good part of the demonetised currency that returned to the banking system.

The RBI in reply to an RTI query said it has no data on the old 500 and 1,000 rupee notes used to pay for utility bills such as fuel at petrol pumps, which are believed to have formed a good part of the demonetised currency that returned to the banking system. After the November 8, 2016 shock decision to ban the use of old 500 and 1,000 rupee notes, the government had allowed the exchange of the junked notes, as well as they, were used for payment of utility bills for 23 services. Both 500 and 1,000 rupee notes could be used at government hospitals, railway ticketing, public transport, airline ticketing at airports, milk booths, crematoria/burial grounds, petrol pumps, metro rail tickets, purchase of medicines on doctor prescription from the government and private pharmacies, LPG gas cylinders, railway catering, electricity and water bills, ASI monument entry tickets and highway toll. On November 25, 2016, the exchange of old notes was stopped and the government allowed the use of only old 500 rupee notes at these utilities till December 15, 2016. The government, however, stopped the use of even this currency at petrol pumps and for the purchase of air tickets at airports abruptly with effect from December 2, 2016, after reports that they are becoming fronts for laundering of old currency notes. In reply to the Right to Information (RTI) query, the RBI said: "information on (invalidated) notes used for paying utility bills is not available with us". As much as 99.3 per cent of the junked Rs 500 and Rs 1,000 notes have returned to the banking system, the RBI had stated in August last year, indicating that just a miniscule percentage of currency was left out of the system after the government's unprecedented note ban aimed at curbing black money and corruption. Of the Rs 15.41 lakh crore worth Rs 500 and Rs 1,000 notes in circulation on November 8, 2016, when the note ban was announced, currency worth Rs 15.31 lakh crore have been returned. On the issue of number and value of invalidated or demonetised currency notes being exchanged, the RBI in the RTI reply referred to a November 28, 2016 press statement where it had stated that "Banks have since reported that such exchange/deposits effected from November 10, 2016, upto November 27, 2016 amounted to Rs 8,44,982 crore (exchange amounted to Rs 33,948 crore and deposits amounted to Rs 8,11,033 crore). "The facility of exchange of Specified Bank Notes at banks' counter was available up to November 24, 2016," it said. Specified Bank Notes or SBN is the term used to denote the demonetised currency which was allowed to be deposited in bank accounts till December 30, 2016. The Reserve Bank of India also said it did not have information on the number of SBNs used to buy KYC-compliant instruments like insurance policies. The central bank referred a part of the RTI to the Insurance Regulatory and Development Authority of India (IRDAI) which also stated that it does not have information on old notes used to pay for insurance policies as "it is not maintained by the Authority".

RBI says no data on demonetised 500, 1,000 notes used at petrol pumps

The Government will come out with the first ever Rs 20 coin which will be shaped like a 12-edged polygon with a design of grains to denote farm dominance in the country.

Besides, new series of one, two, five and ten rupees coins too would be minted, which will be circular in design and have denominations written in Hindi script.

The exact date of issuance of these new series coins is yet to be announced.

The Rs 20 coin will weigh 8.54 gm and its outside diameter will be 27mm with the outer ring made of nickel silver and the centrepiece of Nickel brass, a finance ministry notification said.

The face of the new Rs 20 coin shall bear the 'Lion Capitol of Ashoka Pillar' with 'Satyameva Jayate' inscribed below. The left periphery will have the word 'Bharat' in Hindi and the right periphery will have the word 'India' in English.

The reverse side of the coin would have the denominational value '20' in the international numerals along with the Rupee symbol.

"The design of grains depicting the agricultural dominance of the country is flanked on the left periphery of the coin," the notification said.

The year of minting in international numerals shall be shown at the centre of the left periphery of the coin, it added.

According to the notification, the new Rs 10 coin will have an outside diameter of 27 mm and weigh 7.74 gm, while the Rs 5 coin will have a diameter of 25 mm and weight of 6.74 gms.

The new series one rupee and two rupees coin will weigh 3.09 gm and 4.07 gm, while the diameter would be 20 mm and 23 mm respectively.

The face of all these coins shall bear the Lion Capitol of Ashoka Pillar with the 'Satyameva Jayate' inscribed below, flanked on the left periphery with the word 'Bharat' in Hindi and on the right periphery with the word 'India" in English.

As per the Coinage Act, 1906, the Government of India has the sole right to mint coins and the responsibility for coinage vests with the Government. The designing and minting of coins in various denominations is also the responsibility of the Government.

Coins are minted at the four India Government Mints at Mumbai, Alipore (Kolkata), Saifabad (Hyderabad), Cherlapally (Hyderabad) and Noida (UP).

The coins are issued for circulation only through the Reserve Bank in terms of the RBI Act.&nbsp;

The Government will come out with the first ever Rs 20 coin which will be shaped like a 12-edged polygon with a design of grains to denote farm dominance in the country.

The Government will come out with the first ever Rs 20 coin which will be shaped like a 12-edged polygon with a design of grains to denote farm dominance in the country. Besides, new series of one, two, five and ten rupees coins too would be minted, which will be circular in design and have denominations written in Hindi script. The exact date of issuance of these new series coins is yet to be announced. The Rs 20 coin will weigh 8.54 gm and its outside diameter will be 27mm with the outer ring made of nickel silver and the centrepiece of Nickel brass, a finance ministry notification said. The face of the new Rs 20 coin shall bear the 'Lion Capitol of Ashoka Pillar' with 'Satyameva Jayate' inscribed below. The left periphery will have the word 'Bharat' in Hindi and the right periphery will have the word 'India' in English. The reverse side of the coin would have the denominational value '20' in the international numerals along with the Rupee symbol. "The design of grains depicting the agricultural dominance of the country is flanked on the left periphery of the coin," the notification said. The year of minting in international numerals shall be shown at the centre of the left periphery of the coin, it added. According to the notification, the new Rs 10 coin will have an outside diameter of 27 mm and weigh 7.74 gm, while the Rs 5 coin will have a diameter of 25 mm and weight of 6.74 gms. The new series one rupee and two rupees coin will weigh 3.09 gm and 4.07 gm, while the diameter would be 20 mm and 23 mm respectively. The face of all these coins shall bear the Lion Capitol of Ashoka Pillar with the 'Satyameva Jayate' inscribed below, flanked on the left periphery with the word 'Bharat' in Hindi and on the right periphery with the word 'India" in English. As per the Coinage Act, 1906, the Government of India has the sole right to mint coins and the responsibility for coinage vests with the Government. The designing and minting of coins in various denominations is also the responsibility of the Government. Coins are minted at the four India Government Mints at Mumbai, Alipore (Kolkata), Saifabad (Hyderabad), Cherlapally (Hyderabad) and Noida (UP). The coins are issued for circulation only through the Reserve Bank in terms of the RBI Act.

First time ever: Government to come out with Rs 20 coins

India Inc's external commercial borrowings (ECBs) fell by 45 per cent to USD 2.42 billion in January 2019 as compared to the year-ago period, data from RBI has showed.

Domestic firms had raised USD 5.40 billion from overseas sources during January 2018.

Of the total borrowings during the month, USD 2.27 billion was raised through the automatic route of the ECBs.

The remaining USD 150 million was taken through the approval route, as per the Reserve Bank data on ECB for January 2019.

No money was raised through rupee denominated bonds (RDBs) during the month, both in 2019 and 2018.

Major borrowers, which tapped resources overseas via automatic route, included Indian Oil Corporation Limited (USD 900 million), Bharat Petroleum Corp (USD 500 million) and Hindustan Petroleum Corp (USD 200 million).

All three oil marketing firms raised the money for their working capital requirement.

Power Grid Corporation raised USD 228.55 million for power project and Reliance Home Finance raised USD 35.50 million for lending.

Power Finance Corp was the only firm to raise USD 150 million through approval route for sub-lending purpose.&nbsp;

India Inc's external commercial borrowings (ECBs) fell by 45 per cent to USD 2.42 billion in January 2019 as compared to the year-ago period, data from RBI has showed.

India Inc's external commercial borrowings (ECBs) fell by 45 per cent to USD 2.42 billion in January 2019 as compared to the year-ago period, data from RBI has showed. Domestic firms had raised USD 5.40 billion from overseas sources during January 2018. Of the total borrowings during the month, USD 2.27 billion was raised through the automatic route of the ECBs. The remaining USD 150 million was taken through the approval route, as per the Reserve Bank data on ECB for January 2019. No money was raised through rupee denominated bonds (RDBs) during the month, both in 2019 and 2018. Major borrowers, which tapped resources overseas via automatic route, included Indian Oil Corporation Limited (USD 900 million), Bharat Petroleum Corp (USD 500 million) and Hindustan Petroleum Corp (USD 200 million). All three oil marketing firms raised the money for their working capital requirement. Power Grid Corporation raised USD 228.55 million for power project and Reliance Home Finance raised USD 35.50 million for lending. Power Finance Corp was the only firm to raise USD 150 million through approval route for sub-lending purpose.

India Inc's foreign borrowings down 45% in January 2019

RBI to transfer Rs 28,000 crore to government as interim dividend

The BSE benchmark Sensex Monday fell over 150 points, led by weakness in auto, IT and financial stocks amid heavy selling by foreign institutional investors, as investors turned cautious ahead of RBI's board meet.

The 30-share index, after rising over 100 points, fell 158.94 points, or 0.44 per cent, to 35,650.01. Similarly, the 50-share NSE Nifty fell 44.45 points, or 0.41 per cent, to 10,679.95.

According to traders, investors were cautious ahead of RBI's board meeting.

Finance Minister Arun Jaitley is scheduled to address the customary post-budget meeting of the central board of the Reserve Bank later in the day, and highlight the key points of the interim Budget, including the fiscal consolidation roadmap.

The meeting, according to sources, will take a call on the interim dividend to be paid to the government during the current fiscal.

Yes Bank fell up to 5 per cent after the private bank, in a regulatory filing Friday, said it had received a letter from the Reserve Bank of India (RBI) which noted that the risk assessment report (RAR) was marked 'confidential'.

It was expected that no part of the report be divulged except for the information in the form and manner of disclosure prescribed by regulations, the RBI letter said, adding that the issuance of a press release has, therefore, been viewed seriously by the RBI and could entail further regulatory action/s.

Other losers on the Sensex pack include HCL Tech, HUL, Bajaj Auto, TCS, Reliance, Bajaj Finance, Asian Paints, M&amp;M and Bharti Airtel, falling up to 1.68 per cent.

While, NTPC, Vedanta, Tata Steel, ONGC, SBI, L&amp;T, PowerGrid, ITC and Sun Pharma were the top gainers, rising up to 2.24 per cent.

Meanwhile, on a net basis, foreign institutional investors sold shares worth a net of Rs 966.43 crore on Friday, while domestic institutional investors were net buyers to the tune of Rs 853.25 crore, provisional data available with BSE showed.

Elsewhere in Asia, Hong Kong's Hang Seng rallied 1.67 per cent, Shanghai Composite Index was up 1.79 per cent higher, Kospi gained 0.73 per cent, and Japan's Nikkei soared 1.78 per cent in early trade.

On Wall Street, Dow Jones Industrial Average ended 1.33 per cent higher on Friday.

The rupee, meanwhile, was trading depreciated 13 paise against US dollar to 71.36.

The benchmark Brent crude futures slipped 0.09 per cent to US $66.19 per barrel.

The BSE benchmark Sensex Monday fell over 150 points, led by weakness in auto, IT and financial stocks amid heavy selling by foreign institutional investors, as investors turned cautious ahead of RBI's board meet.

The BSE benchmark Sensex Monday fell over 150 points, led by weakness in auto, IT and financial stocks amid heavy selling by foreign institutional investors, as investors turned cautious ahead of RBI's board meet. The 30-share index, after rising over 100 points, fell 158.94 points, or 0.44 per cent, to 35,650.01. Similarly, the 50-share NSE Nifty fell 44.45 points, or 0.41 per cent, to 10,679.95. According to traders, investors were cautious ahead of RBI's board meeting. Finance Minister Arun Jaitley is scheduled to address the customary post-budget meeting of the central board of the Reserve Bank later in the day, and highlight the key points of the interim Budget, including the fiscal consolidation roadmap. The meeting, according to sources, will take a call on the interim dividend to be paid to the government during the current fiscal. Yes Bank fell up to 5 per cent after the private bank, in a regulatory filing Friday, said it had received a letter from the Reserve Bank of India (RBI) which noted that the risk assessment report (RAR) was marked 'confidential'. It was expected that no part of the report be divulged except for the information in the form and manner of disclosure prescribed by regulations, the RBI letter said, adding that the issuance of a press release has, therefore, been viewed seriously by the RBI and could entail further regulatory action/s. Other losers on the Sensex pack include HCL Tech, HUL, Bajaj Auto, TCS, Reliance, Bajaj Finance, Asian Paints, M&M and Bharti Airtel, falling up to 1.68 per cent. While, NTPC, Vedanta, Tata Steel, ONGC, SBI, L&T, PowerGrid, ITC and Sun Pharma were the top gainers, rising up to 2.24 per cent. Meanwhile, on a net basis, foreign institutional investors sold shares worth a net of Rs 966.43 crore on Friday, while domestic institutional investors were net buyers to the tune of Rs 853.25 crore, provisional data available with BSE showed. Elsewhere in Asia, Hong Kong's Hang Seng rallied 1.67 per cent, Shanghai Composite Index was up 1.79 per cent higher, Kospi gained 0.73 per cent, and Japan's Nikkei soared 1.78 per cent in early trade. On Wall Street, Dow Jones Industrial Average ended 1.33 per cent higher on Friday. The rupee, meanwhile, was trading depreciated 13 paise against US dollar to 71.36. The benchmark Brent crude futures slipped 0.09 per cent to US $66.19 per barrel.

Sensex drops over 150 points ahead of RBI board meet

The Reserve Bank will pay an interim dividend of Rs 28,000 crore to the government, a move that will help the Centre keep fiscal deficit in check.

The announcement on Monday came after the bank's Central Board meeting, which was addressed by Finance Minister Arun Jaitley. 
This is the second successive year when the Reserve Bank of India (RBI) will be transferring an interim surplus.

This is in addition to Rs 50,000 crore surplus transfer announced by RBI in August 2018 for 2017-18 (RBI follows July-June financial year). Of this, Rs 10,000 crore was given as interim dividend to the government on March 27, 2018.

"Based on a limited audit review and after applying the extant economic capital framework, the Board decided to transfer an interim surplus of Rs 280 billion to the central government for the half-year ended December 31, 2018," the central bank said in a statement.

RBI had given Rs 30,663 crore as dividend to the government in 2017-18.

In his address to the Board, Jaitley outlined various reforms and policy measures taken by the government over the last four years and the effects thereof.

The central bank transfers its surplus amount to the government, under Section 47 of the RBI Act, 1934.

Section 47 of the Act says:"After making provision for bad and doubtful debts, depreciation in assets, contribution to staff and superannuation fund and for all matters for which provision is to be made by or under the Act or which are usually provided by bankers, the balance of the profits shall be paid to the central government.

As per the Budget document, the government expects Rs 82,911.56 crore as dividend/ surplus of RBI, nationalised banks and financial institutions during 2019-20.

The statement further said the Central Board, chaired by RBI Governor Shaktikanta Das, also observed two minutes silence as a mark of respect for the security personnel killed in the terror attack at Pulwama, Jammu and Kashmir.

Fiscal deficit for 2018-19 is expected to be slightly higher at 3.4 per cent of the GDP on account of Rs 20,000 crore budgeted for income support to farmers.

For 2019-20 too, the government has retained the fiscal deficit at 3.4 per cent.

The Reserve Bank will pay an interim dividend of Rs 28,000 crore to the government, a move that will help the Centre keep fiscal deficit in check. The announcement on Monday came after the bank's Central Board meeting, which was addressed by Finance Minister Arun Jaitley.

The Reserve Bank will pay an interim dividend of Rs 28,000 crore to the government, a move that will help the Centre keep fiscal deficit in check. The announcement on Monday came after the bank's Central Board meeting, which was addressed by Finance Minister Arun Jaitley. This is the second successive year when the Reserve Bank of India (RBI) will be transferring an interim surplus. This is in addition to Rs 50,000 crore surplus transfer announced by RBI in August 2018 for 2017-18 (RBI follows July-June financial year). Of this, Rs 10,000 crore was given as interim dividend to the government on March 27, 2018. "Based on a limited audit review and after applying the extant economic capital framework, the Board decided to transfer an interim surplus of Rs 280 billion to the central government for the half-year ended December 31, 2018," the central bank said in a statement. RBI had given Rs 30,663 crore as dividend to the government in 2017-18. In his address to the Board, Jaitley outlined various reforms and policy measures taken by the government over the last four years and the effects thereof. The central bank transfers its surplus amount to the government, under Section 47 of the RBI Act, 1934. Section 47 of the Act says:"After making provision for bad and doubtful debts, depreciation in assets, contribution to staff and superannuation fund and for all matters for which provision is to be made by or under the Act or which are usually provided by bankers, the balance of the profits shall be paid to the central government. As per the Budget document, the government expects Rs 82,911.56 crore as dividend/ surplus of RBI, nationalised banks and financial institutions during 2019-20. The statement further said the Central Board, chaired by RBI Governor Shaktikanta Das, also observed two minutes silence as a mark of respect for the security personnel killed in the terror attack at Pulwama, Jammu and Kashmir. Fiscal deficit for 2018-19 is expected to be slightly higher at 3.4 per cent of the GDP on account of Rs 20,000 crore budgeted for income support to farmers. For 2019-20 too, the government has retained the fiscal deficit at 3.4 per cent.

Reserve Bank of India board approves Rs 28,000 crore interim dividend to government 

The finance ministry has sought from the Reserve Bank of India (RBI) Rs 27,380 crore that was withheld by the central bank <a href="http://www.wionews.com/business-economy/govt-wants-policy-on-how-much-cash-reserve-rbi-should-have-board-member-s-gurumurthy-177590">towards risks and reserves</a> in previous years, sources have said.

The RBI had retained Rs 13,190 crore towards risks and reserves in 2016-17. It increased to Rs 14,190 crore in 2017-18. Together, the&nbsp;retained amount is Rs 27,380 crore.

The ministry has requested the RBI to provide an interim surplus for the current fiscal on the analogy of the previous financial year and transfer the amount withheld from the surplus of 2016-17 and 2017-18, sources said.

Earlier this month, Economic Affairs Secretary Subhash Chandra Garg had said the government expects Rs 28,000 crore from the RBI as interim dividend during the current fiscal.

The RBI, which follows July-June financial year, has already transferred Rs 40,000 crore in the current fiscal.

If the central board of the RBI approves the transfer of Rs 28,000 crore requested by the government as interim dividend for the current fiscal, the total surplus transfer by the central bank would be Rs 68,000 crore in 2018-19.

According to sources, the government expects Rs 69,000 crore dividend in the next financial year.

The government has projected to mobilise Rs 82,911.56 crore as dividend or surplus from the RBI, nationalised banks and financial institutions during 2019-20.

After making provision for bad and doubtful debts, depreciation in assets, contribution to staff and superannuation fund and for all matters for which the provision is to be made by or under the Act or which are usually provided by bankers, the balance of the profits shall be paid to the central government, as per the RBI Act.

The finance ministry has sought from the Reserve Bank of India (RBI) Rs 27,380 crore that was withheld by the central bank towards risks and reserves in previous years, sources have said.

The finance ministry has sought from the Reserve Bank of India (RBI) Rs 27,380 crore that was withheld by the central bank towards risks and reserves in previous years, sources have said. The RBI had retained Rs 13,190 crore towards risks and reserves in 2016-17. It increased to Rs 14,190 crore in 2017-18. Together, the retained amount is Rs 27,380 crore. The ministry has requested the RBI to provide an interim surplus for the current fiscal on the analogy of the previous financial year and transfer the amount withheld from the surplus of 2016-17 and 2017-18, sources said. Earlier this month, Economic Affairs Secretary Subhash Chandra Garg had said the government expects Rs 28,000 crore from the RBI as interim dividend during the current fiscal. The RBI, which follows July-June financial year, has already transferred Rs 40,000 crore in the current fiscal. If the central board of the RBI approves the transfer of Rs 28,000 crore requested by the government as interim dividend for the current fiscal, the total surplus transfer by the central bank would be Rs 68,000 crore in 2018-19. According to sources, the government expects Rs 69,000 crore dividend in the next financial year. The government has projected to mobilise Rs 82,911.56 crore as dividend or surplus from the RBI, nationalised banks and financial institutions during 2019-20. After making provision for bad and doubtful debts, depreciation in assets, contribution to staff and superannuation fund and for all matters for which the provision is to be made by or under the Act or which are usually provided by bankers, the balance of the profits shall be paid to the central government, as per the RBI Act.

Government asks Reserve Bank of India for Rs 27,380 crore: Sources

In the first interest rate cut in 18 months, the RBI Thursday shed its hawkish stance to reduce policy rates in the maiden policy meeting under new Governor Shaktikanta Das, a move that may make home and other loans cheaper.

Coming just months ahead of the general elections, the move will help boost lending and support the government's efforts to boost a slowing economy after it last week unveiled an expansionary budget which included a Rs 75,000 crore cash dole to small farmers and income tax rebate to the middle class.

The Reserve Bank of India's six-member monetary policy committee (MPC) cut the repo rate by 25 basis points to 6.25 per cent as inflation continues to remain benign.

While four out of the six members, including Das, voted for a reduction in interest rate, all the six members unanimously favoured switch in stance to 'neutral' from 'calibrated tightening' adopted in October.

Emboldened by a slowdown in inflation which fell to 18-month low of 2.19 per cent in December and is expected to be in the range of 3.2-3.4 per cent in April-September to 3.2-3.4 percent - lower than previous RBI prediction of 3.8-4.2 per cent range, Das-led MPC weighed more concern about economic growth risks, paving the way for more rate cuts.

Besides repo rate, reverse repo was reduced to 6 per cent from 6.25 per cent.

Repo rate is the rate at which commercial banks borrow money from the RBI; while reverse repo rate is the rate at which RBI collects money from banks.

Das, who unlike his predecessor Urjit Patel is seen more amenable to government demands for boosting credit growth, said it was "vital to act decisively and in a timely manner to address the objective of growth once price stability as defined (in RBI's inflation-targeting mandate) is achieved."

A former bureaucrat, Das was appointed RBI Governor in December as Patel quit amid a debate over central bank's autonomy.

"The shift in stance from calibrated tightening to neutral provides flexibility to address, and the room to address, sustained the growth of India's economy over the coming months as long as inflation remains benign," he said.

"RBI's decision to reduce the repo rate by 25 basis point from 6.5 per cent to 6.25 per cent and change of stance to 'Neutral' will give a boost to the economy, lead to affordable credit for small businesses, homebuyers etc and further boost employment opportunities," Finance Minister Piyush Goyal said in a tweet.

RBI last hiked interest rates in August 2018 by 0.25 per cent. It came on back of a similar increase in June. These hikes were the first since January 28, 2014, when rates were hiked by a similar proportion to 8 per cent.

In the subsequent years, RBI cut the interest rate on six occasions. In its last revision, on August 2, 2017, rates were cut by 25 basis points to 6 per cent.

"Investment activity is recovering, but supported mainly by public spending on infrastructure," the MPC said in a statement. "The need is to strengthen private investment activity and buttress private consumption."

Falling food prices have been the main driver of the inflation slowdown, though the core measure -- which excludes food and fuel costs -- remains elevated.

The RBI kept GDP growth forecast unchanged at 7.4 per cent for the next fiscal year starting April 1, 2019.

"Headline inflation is projected to remain soft in the near term reflecting the current low level of inflation and the benign food inflation outlook," the MPC statement said, adding that it needs to be watchful of vegetable prices, oil prices, trade tensions, health and education inflation, financial market volatility and monsoon outcomes.

The rate cut is in consonance with achieving the medium-term objective of maintaining inflation at the 4 per cent level while supporting growth, it said.

The RBI expects GDP growth to be at 7.4 per cent in FY20, which is up from the 7.2 per cent estimated for FY19 by the CSO.

It will set up an internal working group to examine issues pertaining to agricultural loans, including regional disparity and extent of coverage. It also raised the limit for collateral?free farm loans to Rs 1.6 lakh from the current Rs 1 lakh in view of overall inflation and a rise in agriculture input costs.

The resolution said recent unusual pick-up in the prices of health and education services could be a one-off phenomenon, adding that the crude oil price outlook remains broadly the same as in the December policy.

With the cash dole for farmers, the central government budget deviated marginally from the fiscal consolidation path by announcing a slip in FY19 and pegging the gap at a higher 3.4 per cent for FY20.

The government is also expecting the RBI to deliver an interim dividend for the second year running at Rs 28,000 crore, which is likely to be taken up for discussion at RBI's next board meeting.

On the regulatory policies front, the RBI proposed relaxations on foreign borrowings by companies undergoing insolvency resolutions to pay off the local lenders, redefined bulk deposits as those above Rs 2 crore from the earlier Rs 1 crore, align risk weights of bank loans to NBFCs with their ratings rather than a blanket 100 per cent earlier and also harmonise categories of NBFCs.&nbsp;

In the first interest rate cut in 18 months, the RBI Thursday shed its hawkish stance to reduce policy rates in the maiden policy meeting under new Governor Shaktikanta Das, a move that may make home and other loans cheaper.

In the first interest rate cut in 18 months, the RBI Thursday shed its hawkish stance to reduce policy rates in the maiden policy meeting under new Governor Shaktikanta Das, a move that may make home and other loans cheaper. Coming just months ahead of the general elections, the move will help boost lending and support the government's efforts to boost a slowing economy after it last week unveiled an expansionary budget which included a Rs 75,000 crore cash dole to small farmers and income tax rebate to the middle class. The Reserve Bank of India's six-member monetary policy committee (MPC) cut the repo rate by 25 basis points to 6.25 per cent as inflation continues to remain benign. While four out of the six members, including Das, voted for a reduction in interest rate, all the six members unanimously favoured switch in stance to 'neutral' from 'calibrated tightening' adopted in October. Emboldened by a slowdown in inflation which fell to 18-month low of 2.19 per cent in December and is expected to be in the range of 3.2-3.4 per cent in April-September to 3.2-3.4 percent - lower than previous RBI prediction of 3.8-4.2 per cent range, Das-led MPC weighed more concern about economic growth risks, paving the way for more rate cuts. Besides repo rate, reverse repo was reduced to 6 per cent from 6.25 per cent. Repo rate is the rate at which commercial banks borrow money from the RBI; while reverse repo rate is the rate at which RBI collects money from banks. Das, who unlike his predecessor Urjit Patel is seen more amenable to government demands for boosting credit growth, said it was "vital to act decisively and in a timely manner to address the objective of growth once price stability as defined (in RBI's inflation-targeting mandate) is achieved." A former bureaucrat, Das was appointed RBI Governor in December as Patel quit amid a debate over central bank's autonomy. "The shift in stance from calibrated tightening to neutral provides flexibility to address, and the room to address, sustained the growth of India's economy over the coming months as long as inflation remains benign," he said. "RBI's decision to reduce the repo rate by 25 basis point from 6.5 per cent to 6.25 per cent and change of stance to 'Neutral' will give a boost to the economy, lead to affordable credit for small businesses, homebuyers etc and further boost employment opportunities," Finance Minister Piyush Goyal said in a tweet. RBI last hiked interest rates in August 2018 by 0.25 per cent. It came on back of a similar increase in June. These hikes were the first since January 28, 2014, when rates were hiked by a similar proportion to 8 per cent. In the subsequent years, RBI cut the interest rate on six occasions. In its last revision, on August 2, 2017, rates were cut by 25 basis points to 6 per cent. "Investment activity is recovering, but supported mainly by public spending on infrastructure," the MPC said in a statement. "The need is to strengthen private investment activity and buttress private consumption." Falling food prices have been the main driver of the inflation slowdown, though the core measure -- which excludes food and fuel costs -- remains elevated. The RBI kept GDP growth forecast unchanged at 7.4 per cent for the next fiscal year starting April 1, 2019. "Headline inflation is projected to remain soft in the near term reflecting the current low level of inflation and the benign food inflation outlook," the MPC statement said, adding that it needs to be watchful of vegetable prices, oil prices, trade tensions, health and education inflation, financial market volatility and monsoon outcomes. The rate cut is in consonance with achieving the medium-term objective of maintaining inflation at the 4 per cent level while supporting growth, it said. The RBI expects GDP growth to be at 7.4 per cent in FY20, which is up from the 7.2 per cent estimated for FY19 by the CSO. It will set up an internal working group to examine issues pertaining to agricultural loans, including regional disparity and extent of coverage. It also raised the limit for collateral?free farm loans to Rs 1.6 lakh from the current Rs 1 lakh in view of overall inflation and a rise in agriculture input costs. The resolution said recent unusual pick-up in the prices of health and education services could be a one-off phenomenon, adding that the crude oil price outlook remains broadly the same as in the December policy. With the cash dole for farmers, the central government budget deviated marginally from the fiscal consolidation path by announcing a slip in FY19 and pegging the gap at a higher 3.4 per cent for FY20. The government is also expecting the RBI to deliver an interim dividend for the second year running at Rs 28,000 crore, which is likely to be taken up for discussion at RBI's next board meeting. On the regulatory policies front, the RBI proposed relaxations on foreign borrowings by companies undergoing insolvency resolutions to pay off the local lenders, redefined bulk deposits as those above Rs 2 crore from the earlier Rs 1 crore, align risk weights of bank loans to NBFCs with their ratings rather than a blanket 100 per cent earlier and also harmonise categories of NBFCs.

RBI cuts key lending rate by 25%, loans likely to get cheaper

<a href="http://www.wionews.com/india-news/in-hating-modi-the-opposition-has-begun-to-hate-the-nation-pm-modi-195852">In hating Modi, the Opposition has begun to hate the nation: PM</a>

While addressing the Motion of Thanks speech in Parliament on Thursday, Prime Minister Narendra Modi hailed the developments done by his government during the last four years.

<a href="http://www.wionews.com/world/may-back-in-brussels-for-latest-brexit-showdown-195815">Theresa May returns to Brussels trying desperately to avoid no-deal Brexit</a>

Britain's&nbsp;Prime Minister Theresa May&nbsp;returned to Brussels on Thursday for a showdown with EU leaders as she bids to avoid a calamitous no-deal Brexit in 50 days' time.

<a href="http://www.wionews.com/india-news/you-have-played-with-order-of-supreme-court-god-help-you-chief-justice-of-india-to-cbi-195801">'You have played with </a><a href="http://www.wionews.com/india-news/you-have-played-with-order-of-supreme-court-god-help-you-chief-justice-of-india-to-cbi-195801">order</a><a href="http://www.wionews.com/india-news/you-have-played-with-order-of-supreme-court-god-help-you-chief-justice-of-india-to-cbi-195801"> of Supreme Court... God help you': Chief Justice of India to CBI</a>

The Supreme Court slammed the Central Bureau of Investigation Thursday, telling it that "you have played with order of Supreme Court of India. God help you."&nbsp;

<a href="http://www.wionews.com/india-news/centre-may-take-back-kolkata-police-chiefs-medals-mha-sources-195827">Centre may take back Kolkata Police chief's medals: Home ministry sources&nbsp;</a>

The Centre may take back Kolkata Police chief Rajeev Kumar's medals, the news agency ANI quoted sources in the Ministry of Home Affairs as saying on Thursday.&nbsp;

<a href="http://www.wionews.com/business-economy/rbi-cuts-repo-rate-by-25-basis-points-to-625-per-cent-195725">RBI cuts key interest rates; projects GDP growth at 7.4%, limit of collateral-free agriculture loans increased</a>

The Reserve Bank of India(RBI) today cut the&nbsp;repo rate by 25 basis points&nbsp;to 6.25 per cent. Repo rate is the interest at which the banks borrow from the central bank whenever it experiences a funds shortfall.&nbsp;

In hating Modi, the Opposition has begun to hate the nation: PM While addressing the Motion of Thanks speech in Parliament on Thursday, Prime Minister Narendra Modi hailed the developments done by his government during the last four years.

In hating Modi, the Opposition has begun to hate the nation: PM While addressing the Motion of Thanks speech in Parliament on Thursday, Prime Minister Narendra Modi hailed the developments done by his government during the last four years. Theresa May returns to Brussels trying desperately to avoid no-deal Brexit Britain's Prime Minister Theresa May returned to Brussels on Thursday for a showdown with EU leaders as she bids to avoid a calamitous no-deal Brexit in 50 days' time. 'You have played with order of Supreme Court... God help you': Chief Justice of India to CBI The Supreme Court slammed the Central Bureau of Investigation Thursday, telling it that "you have played with order of Supreme Court of India. God help you." Centre may take back Kolkata Police chief's medals: Home ministry sources The Centre may take back Kolkata Police chief Rajeev Kumar's medals, the news agency ANI quoted sources in the Ministry of Home Affairs as saying on Thursday. RBI cuts key interest rates; projects GDP growth at 7.4%, limit of collateral-free agriculture loans increased The Reserve Bank of India(RBI) today cut the repo rate by 25 basis points to 6.25 per cent. Repo rate is the interest at which the banks borrow from the central bank whenever it experiences a funds shortfall.

RBI cuts repo rate by 25 basis points to 6.25%

The Reserve Bank of India(RBI) today cut the <a href="http://www.wionews.com/business-economy/rbi-keeps-repo-rate-unchanged-at-65-retains-gdp-growth-projection-at-74-181654">repo rate by 25 basis points</a> to 6.25 per cent.

Repo rate is the interest at which the banks borrow from the central bank whenever it experiences a funds shortfall.&nbsp;

The central bank said in the financial year India's GDP growth was seen at 7.4 per cent against the government's forecast of 7.2 per cent.

Four of six members of the monetary policy committee (MPC) voted to cut the rates, while all six members voted for a change in the stance.&nbsp;Two MPC members Chetan Ghate and Viral Acharya were for status-quo in rates, the RBI informed.&nbsp;

The central bank had revised down headline inflation estimates to 2.8 per cent in March quarter, 3.2-3.4 per cent in first half of next fiscal and 3.9 per cent in Q3 of FY20.

The RBI&nbsp;revised downwards the retail inflation forecast to 2.8 per cent for the last quarter of the current fiscal on account of favourable factors including benign monsoon.

The RBI in its last bi-monthly monetary policy announcement for the current fiscal also lowered the retail inflation forecast for the first half of next fiscal beginning April, to 3.2-3.4 per cent.

For the third quarter of 2019-20, the inflation target is set at 3.9 per cent.&nbsp;The central bank raised limit of collateral-free agriculture loans to Rs 1.6 lakh from the&nbsp;current Rs 1 lakh.

"Several factors will shape the inflation path, going forward. First, food inflation has continued to surprise on the downside with continuing deflation across several items and a significant moderation in inflation in cereals. Several food groups are experiencing excess supply conditions domestically as well as internationally," RBI said.

Union budget proposals will boost demand by raising disposable incomes, but it may take time to play out, newly-appointed RBI governor&nbsp;Shaktikanta Das said in his first press conference.

"Looking beyond the current year, the growth outlook is likely to be influenced by... Aggregate bank credit; and overall financial flows to the commercial sector continue to be strong, but are yet to be broad-based," the MPC said.

It further said that in spite of soft crude oil prices and the lagged impact of the recent depreciation of the Indian rupee on net exports, slowing global demand could pose headwinds.

"In particular, trade tensions and associated uncertainties appear to be moderating global growth," it said.

&nbsp;

&nbsp;

The Reserve Bank of India(RBI) today cut the repo rate by 25 basis points to 6.25 per cent. Repo rate is the interest at which the banks borrow from the central bank whenever it experiences a funds shortfall.

The Reserve Bank of India(RBI) today cut the repo rate by 25 basis points to 6.25 per cent. Repo rate is the interest at which the banks borrow from the central bank whenever it experiences a funds shortfall. The central bank said in the financial year India's GDP growth was seen at 7.4 per cent against the government's forecast of 7.2 per cent. Four of six members of the monetary policy committee (MPC) voted to cut the rates, while all six members voted for a change in the stance. Two MPC members Chetan Ghate and Viral Acharya were for status-quo in rates, the RBI informed. The central bank had revised down headline inflation estimates to 2.8 per cent in March quarter, 3.2-3.4 per cent in first half of next fiscal and 3.9 per cent in Q3 of FY20. The RBI revised downwards the retail inflation forecast to 2.8 per cent for the last quarter of the current fiscal on account of favourable factors including benign monsoon. The RBI in its last bi-monthly monetary policy announcement for the current fiscal also lowered the retail inflation forecast for the first half of next fiscal beginning April, to 3.2-3.4 per cent. For the third quarter of 2019-20, the inflation target is set at 3.9 per cent. The central bank raised limit of collateral-free agriculture loans to Rs 1.6 lakh from the current Rs 1 lakh. "Several factors will shape the inflation path, going forward. First, food inflation has continued to surprise on the downside with continuing deflation across several items and a significant moderation in inflation in cereals. Several food groups are experiencing excess supply conditions domestically as well as internationally," RBI said. Union budget proposals will boost demand by raising disposable incomes, but it may take time to play out, newly-appointed RBI governor Shaktikanta Das said in his first press conference. "Looking beyond the current year, the growth outlook is likely to be influenced by... Aggregate bank credit; and overall financial flows to the commercial sector continue to be strong, but are yet to be broad-based," the MPC said. It further said that in spite of soft crude oil prices and the lagged impact of the recent depreciation of the Indian rupee on net exports, slowing global demand could pose headwinds. "In particular, trade tensions and associated uncertainties appear to be moderating global growth," it said.

RBI cuts key interest rates; projects GDP growth at 7.4%, limit of collateral-free agriculture loans increased

Benchmark equity indices gave up gains to end almost flat on Thursday as investors booked profits at higher levels, after the Reserve Bank surprisingly reduced the repo rate by 0.25 per cent.

After rising nearly 200 points, the 30-share BSE Sensex ended 4.14 points, or 0.01 per cent, lower at 36,971.09; while the broader Nifty settled 6.95 points, or 0.06 per cent, higher at 11,069.40.

India VIX, the fear gauge for domestic equities, rose 1.40 per cent.

Rate-sensitive stocks swung between gains and losses after the rate-cut announcement, with BSE realty index slipping 0.02 per cent, Bankex gaining 0.04 per cent and auto index soaring 1.77 per cent.

The Reserve Bank of India cut the repo rate by 0.25 per cent to 6.25 per cent on expectation that inflation will stay within its target range, a move that may make home and other loans cheaper.

The RBI, under its new Governor Shaktikanta Das, changed the monetary policy stance to 'neutral' from the earlier 'calibrated tightening', signalling further softening of rates if inflation remain benign.

From stock market point of view, the policy decision is already discounted in indices. Traders are looking to book some profit from here, which can push indices to lower levels, said Debabrata Bhattacharjee, Head of Research, CapitalAim.

"In a medium-term, market has always reacted positively to a rate cut. Since we are in an environment where RBI is now neutral with a focus to keep growth in an economy and tab on inflation, we may attract long term money that can move the market.

"This is a positive event for the market though on a cautious note - we have an election in the next three months. So that needs to be taken into account," Mustafa Nadeem, CEO, Epic Research, said.

In the Sensex pack, Sun Pharma was the biggest gainer, rallying 4.48 per cent, followed by Bajaj Auto, Tata Motors, Coal India, Hero MotoCorp, Maruti and HCL Tech, rising up to 3.01 per cent.

While, RIL, PowerGrid, HDFC, L&amp;T, IndusInd Bank, NTPC and Bajaj Finance declined up to 1.50 per cent.

On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 694.97 crore Wednesday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 525.26 crore, provisional data available with BSE showed.

Elsewhere in Asia, Japan's Nikkei fell 0.59 per cent, while Korea's Kospi ended flat. Bourses in China were closed for Lunar New Year break.

In the Eurozone, Frankfurt's DAX was down 0.48 per cent and Paris CAC 40 fell 0.30 per cent in late morning deals; while London's FTSE was up 0.18 per cent.

The rupee, meanwhile, appreciated 11 paise against the US dollar to 71.45 intra-day.

The benchmark Brent crude futures rose 0.06 per cent to US $62.73 per barrel.&nbsp;

Benchmark equity indices gave up gains to end almost flat on Thursday as investors booked profits at higher levels, after the Reserve Bank surprisingly reduced the repo rate by 0.

Benchmark equity indices gave up gains to end almost flat on Thursday as investors booked profits at higher levels, after the Reserve Bank surprisingly reduced the repo rate by 0.25 per cent. After rising nearly 200 points, the 30-share BSE Sensex ended 4.14 points, or 0.01 per cent, lower at 36,971.09; while the broader Nifty settled 6.95 points, or 0.06 per cent, higher at 11,069.40. India VIX, the fear gauge for domestic equities, rose 1.40 per cent. Rate-sensitive stocks swung between gains and losses after the rate-cut announcement, with BSE realty index slipping 0.02 per cent, Bankex gaining 0.04 per cent and auto index soaring 1.77 per cent. The Reserve Bank of India cut the repo rate by 0.25 per cent to 6.25 per cent on expectation that inflation will stay within its target range, a move that may make home and other loans cheaper. The RBI, under its new Governor Shaktikanta Das, changed the monetary policy stance to 'neutral' from the earlier 'calibrated tightening', signalling further softening of rates if inflation remain benign. From stock market point of view, the policy decision is already discounted in indices. Traders are looking to book some profit from here, which can push indices to lower levels, said Debabrata Bhattacharjee, Head of Research, CapitalAim. "In a medium-term, market has always reacted positively to a rate cut. Since we are in an environment where RBI is now neutral with a focus to keep growth in an economy and tab on inflation, we may attract long term money that can move the market. "This is a positive event for the market though on a cautious note - we have an election in the next three months. So that needs to be taken into account," Mustafa Nadeem, CEO, Epic Research, said. In the Sensex pack, Sun Pharma was the biggest gainer, rallying 4.48 per cent, followed by Bajaj Auto, Tata Motors, Coal India, Hero MotoCorp, Maruti and HCL Tech, rising up to 3.01 per cent. While, RIL, PowerGrid, HDFC, L&T, IndusInd Bank, NTPC and Bajaj Finance declined up to 1.50 per cent. On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 694.97 crore Wednesday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 525.26 crore, provisional data available with BSE showed. Elsewhere in Asia, Japan's Nikkei fell 0.59 per cent, while Korea's Kospi ended flat. Bourses in China were closed for Lunar New Year break. In the Eurozone, Frankfurt's DAX was down 0.48 per cent and Paris CAC 40 fell 0.30 per cent in late morning deals; while London's FTSE was up 0.18 per cent. The rupee, meanwhile, appreciated 11 paise against the US dollar to 71.45 intra-day. The benchmark Brent crude futures rose 0.06 per cent to US $62.73 per barrel.

Market ends flat after RBI rate cut; rate sensitive stocks turn volatile

The Reserve Bank Of India Thursday revised downwards the retail inflation forecast to 2.8 per cent for the last quarter of the current fiscal on account of favourable factors including benign monsoon.

The RBI in its last bi-monthly monetary policy announcement for the current fiscal also lowered the retail inflation forecast for the first half of next fiscal beginning April, to 3.2-3.4 per.

For the third quarter of 2019-20, the inflation target is set at 3.9 per cent.

"Several factors will shape the inflation path, going forward. First, food inflation has continued to surprise on the downside with continuing deflation across several items and a significant moderation in inflation in cereals. Several food groups are experiencing excess supply conditions domestically as well as internationally," RBI said.

RBI said the short-term outlook for food inflation appears particularly benign, despite adverse base effects.

The central bank Thursday cut the key repo rate -- at which it lends to banks -- by 0.25 per cent to 6.25 per cent.

"These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of plus/minus 2 per cent while supporting growth," RBI said.

The moderation in the fuel group was larger than anticipated. Inflation in items of rural consumption such as firewood and chips, which had remained sticky and at elevated levels, has collapsed in recent months, it added.

"Taking into consideration these developments and assuming a normal monsoon in 2019, the path of CPI inflation is revised downwards to 2.8 per cent in Q4:2018-19, 3.2-3.4 per cent in H1:2019-20 and 3.9 per cent in Q3:2019-20, with risks broadly balanced around the central trajectory," RBI said.&nbsp;

The Reserve Bank Of India Thursday revised downwards the retail inflation forecast to 2.8 per cent for the last quarter of the current fiscal on account of favourable factors including benign monsoon.

The Reserve Bank Of India Thursday revised downwards the retail inflation forecast to 2.8 per cent for the last quarter of the current fiscal on account of favourable factors including benign monsoon. The RBI in its last bi-monthly monetary policy announcement for the current fiscal also lowered the retail inflation forecast for the first half of next fiscal beginning April, to 3.2-3.4 per. For the third quarter of 2019-20, the inflation target is set at 3.9 per cent. "Several factors will shape the inflation path, going forward. First, food inflation has continued to surprise on the downside with continuing deflation across several items and a significant moderation in inflation in cereals. Several food groups are experiencing excess supply conditions domestically as well as internationally," RBI said. RBI said the short-term outlook for food inflation appears particularly benign, despite adverse base effects. The central bank Thursday cut the key repo rate -- at which it lends to banks -- by 0.25 per cent to 6.25 per cent. "These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of plus/minus 2 per cent while supporting growth," RBI said. The moderation in the fuel group was larger than anticipated. Inflation in items of rural consumption such as firewood and chips, which had remained sticky and at elevated levels, has collapsed in recent months, it added. "Taking into consideration these developments and assuming a normal monsoon in 2019, the path of CPI inflation is revised downwards to 2.8 per cent in Q4:2018-19, 3.2-3.4 per cent in H1:2019-20 and 3.9 per cent in Q3:2019-20, with risks broadly balanced around the central trajectory," RBI said.

RBI cuts inflation forecast to 2.8% for Q419; 3.2-3.4% for H1FY20

Shares flitted between negative and positive territory on Tuesday as investors kept a cautious stance ahead of the three-day central bank policy meet, while gains in automobile stocks offset declines in telecom companies.

According to a Reuters poll of 65 analysts, two-thirds have said the Reserve Bank of India (RBI) would hold its repo rate, a surprise change of stance following the appointment of Shaktikanta Das as the central bank chief in December. The central bank will start its three-day policy meet later in the session.

The 'neutral' stance would be in line with Prime Minister Narendra Modi-led Bharatiya Janata Party's aim for a stimulative monetary policy ahead of national elections in May.

The RBI's mandate is to control price pressures, which historically have been difficult to tame in India.

However, analysts feel the possibility of a rejig in the indexes by global index provider MSCI Inc could impact some of the large-cap players.

"If MSCI does an index rejig, then the weight of some of the stocks could come down," said Deven Choksey, founder, KR Choksey Investment Managers.

Companies in the American depositary receipts (ADR) and global depositary receipt (GDR) lists such as Tata Motors Ltd and Infosys Ltd could be affected, Choksey added.

Tata Motors was trading 2.1 per cent lower, while Infosys slipped 0.9 per cent.

The broader Nifty was up 0.02 per cent at 10,914.55, as of 0605 GMT, while the benchmark Sensex was largely flat at 36,580.64.

Telecom bellwether Bharti Airtel Ltd fell as much as 4.5 per cent after rating agency Moody's Investor Service downgraded some of the company's notes.

Most automobile majors were in the green with Hero MotoCorp Ltd and Mahindra &amp; Mahindra Ltd gaining 1.8 per cent and 2.1 per cent, respectively.

Consumer giant Hindustan Unilever Ltd was among the biggest boost on the NSE index, rising as much as 1.4 per cent while extending gains to a fourth session.

IT stocks such as Wipro Ltd dropped 0.8 per cent, while Tech Mahindra Ltd, which is scheduled to report its quarterly results later in the day, fell nearly 1 per cent.

Reliance Communications Ltd dived as much as 16.7 per cent, a day after it sought fast-track resolution of its debt through the National Company Law Tribunal (NCLT), the country`s court that deals with bankruptcy cases.

Shares flitted between negative and positive territory on Tuesday as investors kept a cautious stance ahead of the three-day central bank policy meet, while gains in automobile stocks offset declines in telecom companies.

Shares flitted between negative and positive territory on Tuesday as investors kept a cautious stance ahead of the three-day central bank policy meet, while gains in automobile stocks offset declines in telecom companies. According to a Reuters poll of 65 analysts, two-thirds have said the Reserve Bank of India (RBI) would hold its repo rate, a surprise change of stance following the appointment of Shaktikanta Das as the central bank chief in December. The central bank will start its three-day policy meet later in the session. The 'neutral' stance would be in line with Prime Minister Narendra Modi-led Bharatiya Janata Party's aim for a stimulative monetary policy ahead of national elections in May. The RBI's mandate is to control price pressures, which historically have been difficult to tame in India. However, analysts feel the possibility of a rejig in the indexes by global index provider MSCI Inc could impact some of the large-cap players. "If MSCI does an index rejig, then the weight of some of the stocks could come down," said Deven Choksey, founder, KR Choksey Investment Managers. Companies in the American depositary receipts (ADR) and global depositary receipt (GDR) lists such as Tata Motors Ltd and Infosys Ltd could be affected, Choksey added. Tata Motors was trading 2.1 per cent lower, while Infosys slipped 0.9 per cent. The broader Nifty was up 0.02 per cent at 10,914.55, as of 0605 GMT, while the benchmark Sensex was largely flat at 36,580.64. Telecom bellwether Bharti Airtel Ltd fell as much as 4.5 per cent after rating agency Moody's Investor Service downgraded some of the company's notes. Most automobile majors were in the green with Hero MotoCorp Ltd and Mahindra & Mahindra Ltd gaining 1.8 per cent and 2.1 per cent, respectively. Consumer giant Hindustan Unilever Ltd was among the biggest boost on the NSE index, rising as much as 1.4 per cent while extending gains to a fourth session. IT stocks such as Wipro Ltd dropped 0.8 per cent, while Tech Mahindra Ltd, which is scheduled to report its quarterly results later in the day, fell nearly 1 per cent. Reliance Communications Ltd dived as much as 16.7 per cent, a day after it sought fast-track resolution of its debt through the National Company Law Tribunal (NCLT), the country`s court that deals with bankruptcy cases.

Sensex, Nifty subdued ahead of RBI policy meet

The Indian government expects the central bank to pay a dividend of 690 billion rupees ($9.63 billion) in the next financial year beginning April 2019, a senior finance ministry source, who requested anonymity, told reporters on Tuesday.

Piyush Goyal, India's interim finance minister, in his annual budget for 2019/20 tabled in parliament last week, estimated to get 829.11 billion rupees through dividend from banks, financial institutions and the Reserve Bank of India next financial year.

Meanwhile, the Reserve Bank of India is likely to change its monetary policy stance to "neutral" from "calibrated tightening" on Thursday and move closer to a rate cut in April as inflation stays below the central bank's 4per cent target.

A softer stance would bode well for Prime Minister Narendra Modi's government, which wants to boost lending and lift growth as it faces elections by May.

While two-thirds of 65 economists expected the RBI to hold the repo rate at 6.50 per cent, most respondents predicted the six-member monetary policy committee (MPC) would shift its stance to neutral, according to a Reuters poll published on Jan. 24. Nearly half of respondents expected a 25 basis point rate cut by mid-2019.

At Thursday's MPC meeting - the first for RBI Governor Shaktikanta Das - it will be tough to balance desire to support economic growth with the need to contain inflationary expectations.

Some economists said Das, a seasoned bureaucrat, is likely to promote growth and aid the fragile financial sector, as inflation is comfortable at present, in December dropping to an 18-month low of 2.19 per cent.

The Indian government expects the central bank to pay a dividend of 690 billion rupees ($9.63 billion) in the next financial year beginning April 2019, a senior finance ministry source, who requested anonymity, told reporters on Tuesday.

The Indian government expects the central bank to pay a dividend of 690 billion rupees ($9.63 billion) in the next financial year beginning April 2019, a senior finance ministry source, who requested anonymity, told reporters on Tuesday. Piyush Goyal, India's interim finance minister, in his annual budget for 2019/20 tabled in parliament last week, estimated to get 829.11 billion rupees through dividend from banks, financial institutions and the Reserve Bank of India next financial year. Meanwhile, the Reserve Bank of India is likely to change its monetary policy stance to "neutral" from "calibrated tightening" on Thursday and move closer to a rate cut in April as inflation stays below the central bank's 4per cent target. A softer stance would bode well for Prime Minister Narendra Modi's government, which wants to boost lending and lift growth as it faces elections by May. While two-thirds of 65 economists expected the RBI to hold the repo rate at 6.50 per cent, most respondents predicted the six-member monetary policy committee (MPC) would shift its stance to neutral, according to a Reuters poll published on Jan. 24. Nearly half of respondents expected a 25 basis point rate cut by mid-2019. At Thursday's MPC meeting - the first for RBI Governor Shaktikanta Das - it will be tough to balance desire to support economic growth with the need to contain inflationary expectations. Some economists said Das, a seasoned bureaucrat, is likely to promote growth and aid the fragile financial sector, as inflation is comfortable at present, in December dropping to an 18-month low of 2.19 per cent.

Government expects 690 billion rupees in dividend from RBI in coming financial year

Rbi, News on Rbi, stories on Rbi, articles on Rbi, Rbi stories at Wion, Rbi news, Rbi latest news