The Supreme Court Friday asked RBI to respond to an application looking to implead it as a party in a matter seeking directive to US-based WhatsApp to comply with data localisation norms for providing payment service in India.

A bench of Justices R F Nariman and Vineet Saran issued notice to the RBI on an impleadment application by NGO, Centre for Accountability and Systemic Change (CASC), which has filed a petition in the court claiming that WhatsApp has not fully complied with the central bank's circular which prescribed data localisation norms.

The norms relate to storing of payment related data within India, which has 200 million WhatsApp users.

"Issue notice on the application for impleadment of Reserve Bank of India (RBI) as respondent," the bench said and posted the matter for hearing on March 5.

On January 14, the top court had permitted advocate Virag Gupta, appearing for the petitioner, to file an application for impleading RBI as a party in the case.

Solicitor General Tushar Mehta, appearing for the Centre, had also told the court that RBI was needed to be made a party in the case as issue pertains to data localisation.

In its petition, the NGO has sought direction to restrain the instant messaging platform from proceeding with its payment service unless it fully complied with the provisions of the RBI.

The Centre and WhatsApp had earlier told the court that a grievance officer for India has been appointed by the instant messaging service company.

However, the NGO has claimed that grievance officer has been appointed in the United States of America, which is "preposterous and against the sovereignty of India".

In its plea, the NGO has referred to IT (Intermediary) Rules of 2011 and IT (reasonable security practices and procedures and sensitive personal data or information) Rules 2011 wherein provision is made for appointment of grievance officer.

It has also said in its affidavit that it would be a paradox if data localisation norms are prescribed in India but companies are allowed to keep data officers in USA.

On August 27 last year, the apex court had agreed to examine the plea which alleged that WhatsApp does not comply with the Indian laws including the provision for appointing a grievance officer.

WhatsApp reportedly has over 200 million users in India and almost one million people are "testing" its payments service. India is one of the largest bases for the Facebook-owned company that has over 1.5 billion users globally.

In its plea, the CASC said that to open a bank account, a customer needs to comply with KYC norms laid down by the RBI and various other formalities.&nbsp;

"WhatsApp is a foreign company with no office or servers in India. To run Payments Service in India, WhatsApp is obligated to have its office and payments in India," it said.

"Moreover, it is also required to have a Grievance Officer for users in India. Yet, it is being allowed to continue with its payments and other services, without any check," the plea claimed.

The petition also alleged that the social media giant does not comply with tax and other laws of India, but its reach was such that it is used by everyone, be it a commoner or even the judges of the apex court.

It said every user has a number on WhatsApp but the messaging platform has no number through which its user can contact it for any grievance redressal.

Pointing to alleged cases of Internet-based crimes, it has claimed that the growth of such incidents was directly proportional to the growth of the user base of messaging services like WhatsApp.

The Supreme Court Friday asked RBI to respond to an application looking to implead it as a party in a matter seeking directive to US-based WhatsApp to comply with data localisation norms for providing payment service in India.

The Supreme Court Friday asked RBI to respond to an application looking to implead it as a party in a matter seeking directive to US-based WhatsApp to comply with data localisation norms for providing payment service in India. A bench of Justices R F Nariman and Vineet Saran issued notice to the RBI on an impleadment application by NGO, Centre for Accountability and Systemic Change (CASC), which has filed a petition in the court claiming that WhatsApp has not fully complied with the central bank's circular which prescribed data localisation norms. The norms relate to storing of payment related data within India, which has 200 million WhatsApp users. "Issue notice on the application for impleadment of Reserve Bank of India (RBI) as respondent," the bench said and posted the matter for hearing on March 5. On January 14, the top court had permitted advocate Virag Gupta, appearing for the petitioner, to file an application for impleading RBI as a party in the case. Solicitor General Tushar Mehta, appearing for the Centre, had also told the court that RBI was needed to be made a party in the case as issue pertains to data localisation. In its petition, the NGO has sought direction to restrain the instant messaging platform from proceeding with its payment service unless it fully complied with the provisions of the RBI. The Centre and WhatsApp had earlier told the court that a grievance officer for India has been appointed by the instant messaging service company. However, the NGO has claimed that grievance officer has been appointed in the United States of America, which is "preposterous and against the sovereignty of India". In its plea, the NGO has referred to IT (Intermediary) Rules of 2011 and IT (reasonable security practices and procedures and sensitive personal data or information) Rules 2011 wherein provision is made for appointment of grievance officer. It has also said in its affidavit that it would be a paradox if data localisation norms are prescribed in India but companies are allowed to keep data officers in USA. On August 27 last year, the apex court had agreed to examine the plea which alleged that WhatsApp does not comply with the Indian laws including the provision for appointing a grievance officer. WhatsApp reportedly has over 200 million users in India and almost one million people are "testing" its payments service. India is one of the largest bases for the Facebook-owned company that has over 1.5 billion users globally. In its plea, the CASC said that to open a bank account, a customer needs to comply with KYC norms laid down by the RBI and various other formalities. "WhatsApp is a foreign company with no office or servers in India. To run Payments Service in India, WhatsApp is obligated to have its office and payments in India," it said. "Moreover, it is also required to have a Grievance Officer for users in India. Yet, it is being allowed to continue with its payments and other services, without any check," the plea claimed. The petition also alleged that the social media giant does not comply with tax and other laws of India, but its reach was such that it is used by everyone, be it a commoner or even the judges of the apex court. It said every user has a number on WhatsApp but the messaging platform has no number through which its user can contact it for any grievance redressal. Pointing to alleged cases of Internet-based crimes, it has claimed that the growth of such incidents was directly proportional to the growth of the user base of messaging services like WhatsApp.

Supreme Court seeks RBI response in data localisation matter of WhatsApp payment service

Global uncertainties, including populism and economic slowdown, have cast a shadow over the World Economic Forum (WEF)'s 2019 annual meeting, which officially opened in Davos, Switzerland, on Monday.

As leaders gathered for the annual meeting,&nbsp;WION spoke to the former governor of Reserve Bank of India, Raghuram Rajan&nbsp;who is also attending the event. Speaking to&nbsp;WION's correspondent, Sumit Chaturvedi, Rajan&nbsp;said that there is underlying strength in&nbsp;the global economy.

Commenting on the recent forecast by International Monetary Fund(IMF) on global economic growth, Rajan said he agrees with IMF and said that there are clouds hanging over the world economy as China is underperforming in comparison to its&nbsp;past record&nbsp;and the US is also suffering due to the government shutdown.

"Well, I have no reason to differ from the IMF, there is broadly strength in the underlying economy, there are some clouds, certainly, China is underperforming relative&nbsp;to the past...in the US there are issues like a government shutdown, so we have to wait and see," Rajan&nbsp;said.

Commenting on the World Economic Forum, Rajan said, "It's just started so not much has happened so far..will see what people say, what people think..it's a process of discussion and debate."

Experts have said that the absence of western leaders at the Davos meeting has added to the challenges brought by populism to the globalisation process.

Meanwhile, fears of a global slowdown have jolted markets and forced the US Federal Reserve Bank to signal a pause in its interest rate hike cycle, as investors fret about increasing weak signs in China and the fallout from Sino-US trade frictions.

Data released on Monday showed China's economy cooled in the fourth quarter on faltering domestic demand and bruising US&nbsp;tariffs, dragging 2018 growth to the lowest in nearly three decades.

Topics such as global economic landscape, climate change, artificial intelligence and digitalisation are also on top of the agenda at the WEF.

Global uncertainties, including populism and economic slowdown, have cast a shadow over the World Economic Forum (WEF)'s 2019 annual meeting, which officially opened in Davos, Switzerland, on Monday.

Global uncertainties, including populism and economic slowdown, have cast a shadow over the World Economic Forum (WEF)'s 2019 annual meeting, which officially opened in Davos, Switzerland, on Monday. As leaders gathered for the annual meeting, WION spoke to the former governor of Reserve Bank of India, Raghuram Rajan who is also attending the event. Speaking to WION's correspondent, Sumit Chaturvedi, Rajan said that there is underlying strength in the global economy. Commenting on the recent forecast by International Monetary Fund(IMF) on global economic growth, Rajan said he agrees with IMF and said that there are clouds hanging over the world economy as China is underperforming in comparison to its past record and the US is also suffering due to the government shutdown. "Well, I have no reason to differ from the IMF, there is broadly strength in the underlying economy, there are some clouds, certainly, China is underperforming relative to the past...in the US there are issues like a government shutdown, so we have to wait and see," Rajan said. Commenting on the World Economic Forum, Rajan said, "It's just started so not much has happened so far..will see what people say, what people think..it's a process of discussion and debate." Experts have said that the absence of western leaders at the Davos meeting has added to the challenges brought by populism to the globalisation process. Meanwhile, fears of a global slowdown have jolted markets and forced the US Federal Reserve Bank to signal a pause in its interest rate hike cycle, as investors fret about increasing weak signs in China and the fallout from Sino-US trade frictions. Data released on Monday showed China's economy cooled in the fourth quarter on faltering domestic demand and bruising US tariffs, dragging 2018 growth to the lowest in nearly three decades. Topics such as global economic landscape, climate change, artificial intelligence and digitalisation are also on top of the agenda at the WEF.

Watch: China underperforming relative to past, says Ex RBI chief Raghuram Rajan in Davos

The Reserve Bank of India (RBI) has asked lenders of Infrastructure Leasing and Financial Services Ltd (IL&amp;FS) to classify loans extended to the bankrupt shadow banking firm as non-performing, two sources with direct knowledge of the matter told Reuters on Tuesday.

While the RBI decision does not come as a big surprise, it means IL&amp;FS's lenders will have to set aside additional capital to provision for the soured loans.

Bad loans at Indian banks reached a record $150 billion at the end of March, with state-run banks accounting for the lion's share. The huge pile of bad debt has hurt the bottom lines of state-run banks and hindered their ability to issue new loans.

In October, <a href="http://www.wionews.com/business-economy/government-takes-control-infrastructure-group-ilfs-stem-contagion-168836">the government took control of IL&amp;FS</a>, after a string of defaults on debt obligations by the infrastructure financing and construction company spooked domestic markets.

IL&amp;FS, which has a total debt of 910 billion rupees ($12.97 billion), has been trying to sell its assets to repay debt after several defaults forced the government to overhaul its management.

Government-owned firms, including Life Insurance Corp of India and State Bank of India, own nearly 40 percent of the company. Japan's Orix Corp has a 23 percent stake and Abu Dhabi Investment Authority 12 percent.

Apart from State Bank, its other Indian lenders include Bank of Baroda, Punjab National Bank, and Union Bank of India, among others.

One of the sources said the RBI told the lenders to book the loans to IL&amp;FS as non-performing assets in the December quarter.

The second source said the RBI's decision was conveyed to banks on Tuesday.

The RBI did not respond to an email seeking comment. SBI and other lenders were not immediately reachable for comment.

The Reserve Bank of India (RBI) has asked lenders of Infrastructure Leasing and Financial Services Ltd (IL&FS) to classify loans extended to the bankrupt shadow banking firm as non-performing, two sources with direct knowledge of the matter told Reuters on Tuesday.

The Reserve Bank of India (RBI) has asked lenders of Infrastructure Leasing and Financial Services Ltd (IL&FS) to classify loans extended to the bankrupt shadow banking firm as non-performing, two sources with direct knowledge of the matter told Reuters on Tuesday. While the RBI decision does not come as a big surprise, it means IL&FS's lenders will have to set aside additional capital to provision for the soured loans. Bad loans at Indian banks reached a record $150 billion at the end of March, with state-run banks accounting for the lion's share. The huge pile of bad debt has hurt the bottom lines of state-run banks and hindered their ability to issue new loans. In October, the government took control of IL&FS, after a string of defaults on debt obligations by the infrastructure financing and construction company spooked domestic markets. IL&FS, which has a total debt of 910 billion rupees ($12.97 billion), has been trying to sell its assets to repay debt after several defaults forced the government to overhaul its management. Government-owned firms, including Life Insurance Corp of India and State Bank of India, own nearly 40 percent of the company. Japan's Orix Corp has a 23 percent stake and Abu Dhabi Investment Authority 12 percent. Apart from State Bank, its other Indian lenders include Bank of Baroda, Punjab National Bank, and Union Bank of India, among others. One of the sources said the RBI told the lenders to book the loans to IL&FS as non-performing assets in the December quarter. The second source said the RBI's decision was conveyed to banks on Tuesday. The RBI did not respond to an email seeking comment. SBI and other lenders were not immediately reachable for comment.

RBI asks lenders to IL&FS to classify loans as non-performing: Sources

<a href="http://www.wionews.com/business-economy/rbi-will-not-allow-loose-money-situation-shaktikanta-das-188778">Reserve Bank of India (RBI) Governor Shaktikanta Das</a> Monday said any generalised farm loan waiver adversely impacts the credit culture and the behaviour of borrowers, amid various state governments announcing waivers.

The statement assumes significance in view of three newly elected state governments implementing farm loan waivers in their states in pursuance of poll promises.

When asked about his views on loan write-off for farmers by state governments, he said farm loan waiver is related to the fiscal space that a particular state government has.

"Elected governments have the constitutional mandate to take decisions with regard to their finance but every state government, before taking decisions on any kind of farm loan waivers, has to very carefully examine its fiscal space," he said.

"It's also for the individual governments to examine whether they have the fiscal space to meet the requirements and release the money to the banks immediately. Any generalised kind of write-off obviously has an adverse effect on the credit culture and the future credit behaviour of the borrowers," he said.

About Rs 1.47 lakh crore of agricultural loans are outstanding in Madhya Pradesh, Rajasthan, and Chhattisgarh, which announced waivers recently.

 
In 2017, Uttar Pradesh, Maharashtra, and Punjab announced to write off unpaid loans. Earlier this year, the coalition government in Karnataka also announced a farm loan waiver.

Asked about phasing out of Rs 2,000 notes, Das said the economic affairs department has clarified on the issue and there is nothing more to add to that.

Last week, the government had indicated that printing of Rs 2,000 bank notes, introduced after demonetisation in November 2016, has been stopped for now as there is enough stock in circulation.

Economic Affairs Secretary Subhash Chandra Garg had said printing of notes is planned as per the projected requirement.

"We have more than adequate notes of Rs 2,000 in the system with over 35 per cent of notes by value in circulation being of Rs 2,000. There has been no decision regarding 2,000 rupee note production recently," the secretary had said.

On the interim dividend, Das said, "as and when the RBI takes any decision on any matter, you will come to know about it."

The government has requested the RBI to give interim dividend as was done in the past. In the previous financial year, the central bank gave Rs 10,000 crore as interim dividend to the government.

"Lot of correspondence goes on between the government and the Reserve Bank. A lot of discussions do take place, whether there is an individual letter or not, that is not really relevant. As and when any decision (on interim dividend) is taken the Reserve Bank will not delay in announcing the decision," he said.

Asked if banks being given a target to come out of the non-performing asset problem, he said there is no such target given by the RBI.

"Reserve Bank takes the final decision on matters which are in its own domain, after considering all the aspects. So, Reserve Bank will listen to everybody. (It) will interact with everybody including the government but the final decision will be taken by the Reserve Bank in an objective manner to the best of its judgement," he said.

About Rs 1.47 lakh crore of agricultural loans are outstanding in Madhya Pradesh, Rajasthan, and Chhattisgarh, which announced waivers recently.

Reserve Bank of India (RBI) Governor Shaktikanta Das Monday said any generalised farm loan waiver adversely impacts the credit culture and the behaviour of borrowers, amid various state governments announcing waivers. The statement assumes significance in view of three newly elected state governments implementing farm loan waivers in their states in pursuance of poll promises. When asked about his views on loan write-off for farmers by state governments, he said farm loan waiver is related to the fiscal space that a particular state government has. "Elected governments have the constitutional mandate to take decisions with regard to their finance but every state government, before taking decisions on any kind of farm loan waivers, has to very carefully examine its fiscal space," he said. "It's also for the individual governments to examine whether they have the fiscal space to meet the requirements and release the money to the banks immediately. Any generalised kind of write-off obviously has an adverse effect on the credit culture and the future credit behaviour of the borrowers," he said. About Rs 1.47 lakh crore of agricultural loans are outstanding in Madhya Pradesh, Rajasthan, and Chhattisgarh, which announced waivers recently. In 2017, Uttar Pradesh, Maharashtra, and Punjab announced to write off unpaid loans. Earlier this year, the coalition government in Karnataka also announced a farm loan waiver. Asked about phasing out of Rs 2,000 notes, Das said the economic affairs department has clarified on the issue and there is nothing more to add to that. Last week, the government had indicated that printing of Rs 2,000 bank notes, introduced after demonetisation in November 2016, has been stopped for now as there is enough stock in circulation. Economic Affairs Secretary Subhash Chandra Garg had said printing of notes is planned as per the projected requirement. "We have more than adequate notes of Rs 2,000 in the system with over 35 per cent of notes by value in circulation being of Rs 2,000. There has been no decision regarding 2,000 rupee note production recently," the secretary had said. On the interim dividend, Das said, "as and when the RBI takes any decision on any matter, you will come to know about it." The government has requested the RBI to give interim dividend as was done in the past. In the previous financial year, the central bank gave Rs 10,000 crore as interim dividend to the government. "Lot of correspondence goes on between the government and the Reserve Bank. A lot of discussions do take place, whether there is an individual letter or not, that is not really relevant. As and when any decision (on interim dividend) is taken the Reserve Bank will not delay in announcing the decision," he said. Asked if banks being given a target to come out of the non-performing asset problem, he said there is no such target given by the RBI. "Reserve Bank takes the final decision on matters which are in its own domain, after considering all the aspects. So, Reserve Bank will listen to everybody. (It) will interact with everybody including the government but the final decision will be taken by the Reserve Bank in an objective manner to the best of its judgement," he said.

Generalised farm loan waiver impacts credit culture, says RBI Governor Shaktikanta Das

<a href="http://www.wionews.com/india-news/rbi-likely-to-pay-bumper-interim-dividend-to-help-modi-government-sources-188826">RBI likely to give government bumper interim dividend: Sources</a>

The Reserve Bank of India (RBI), having changed leadership last month following a clash with the government, is likely to transfer an interim dividend of 300-400 billion rupees ($4.32 billion-$5.8 billion) to the government by March, according to three sources with direct knowledge of the matter.

<a href="http://www.wionews.com/india-news/cabinet-approves-10-quota-for-economically-weak-among-upper-castes-188798">Cabinet approves 10% quota for economically weak among upper castes</a>

The Narendra Modi cabinet has approved a 10% quota for the upper castes. The reservation — if cleared by parliament and the courts — will be given to the economically weak among the upper castes.&nbsp;

<a href="http://www.wionews.com/world/china-calls-us-warship-in-south-china-sea-a-provocation-188818">China says US warship in </a><a href="http://www.wionews.com/world/china-calls-us-warship-in-south-china-sea-a-provocation-188818">South</a><a href="http://www.wionews.com/world/china-calls-us-warship-in-south-china-sea-a-provocation-188818"> China Sea is a 'provocation'</a>

China has lodged "stern representations" with the United States over a US navy vessel sailing near disputed islands in the South China Sea, its foreign ministry said on Monday (January 7) as US officials joined talks in Beijing during a truce in a bitter trade war.

<a href="http://www.wionews.com/south-asia/taliban-storm-security-posts-in-west-afghanistan-kill-21-188794">Taliban storm security posts in west Afghanistan, kill 21</a>

Taliban insurgents have stormed security posts in west Afghanistan, killing 21 police and pro-government militia members, officials said on Monday, the latest in a surge of attacks that has cast doubt on tentative steps towards talks.

<a href="http://www.wionews.com/world/trump-holds-firm-on-border-wall-offers-steel-option-as-compromise-188851">Trump holds firm on border wall, offers steel option as </a><a href="http://www.wionews.com/world/trump-holds-firm-on-border-wall-offers-steel-option-as-compromise-188851">compromise</a>

US President Donald Trump pledged on Sunday not to bend in his demand for a wall along the southern border with Mexico but said the barrier could be made of steel instead of concrete as a potential compromise with Democrats who refuse to fund it.

&nbsp;

RBI likely to give government bumper interim dividend: Sources The Reserve Bank of India (RBI), having changed leadership last month following a clash with the government, is likely to transfer an interim dividend of 300-400 billion rupees ($4.

RBI likely to give government bumper interim dividend: Sources The Reserve Bank of India (RBI), having changed leadership last month following a clash with the government, is likely to transfer an interim dividend of 300-400 billion rupees ($4.32 billion-$5.8 billion) to the government by March, according to three sources with direct knowledge of the matter. Cabinet approves 10% quota for economically weak among upper castes The Narendra Modi cabinet has approved a 10% quota for the upper castes. The reservation — if cleared by parliament and the courts — will be given to the economically weak among the upper castes. China says US warship in South China Sea is a 'provocation' China has lodged "stern representations" with the United States over a US navy vessel sailing near disputed islands in the South China Sea, its foreign ministry said on Monday (January 7) as US officials joined talks in Beijing during a truce in a bitter trade war. Taliban storm security posts in west Afghanistan, kill 21 Taliban insurgents have stormed security posts in west Afghanistan, killing 21 police and pro-government militia members, officials said on Monday, the latest in a surge of attacks that has cast doubt on tentative steps towards talks. Trump holds firm on border wall, offers steel option as compromise US President Donald Trump pledged on Sunday not to bend in his demand for a wall along the southern border with Mexico but said the barrier could be made of steel instead of concrete as a potential compromise with Democrats who refuse to fund it.

News brief: Big stories of the day

British Prime Minister Rishi Sunak, who is currently dealing with an economic crisis before the general elections, is in the news for a private jet he took last year that was apparently funded by an entrepreneur named Akhil Tripath who is also a minor Tory donor.

British Prime Minister Rishi Sunak, who is currently dealing with an economic crisis before the general elections, is in the news for a private jet he took last year that was apparently funded by an entrepreneur named Akhil Tripath who is also a minor Tory donor. British media was awash with headlines Thursday (Feb 29) about how Sunak attended two Conservative conferences in Wales and Scotland last year and took a private jet to travel there. The private jet was funded by Tripathi, a report by the Financial Times on Thursday said. Tripathi is the co-founder of Signifier Medical Technologies, a start-up that deals in anti-snoring devices and is facing losses. Questions are now being raised about how Tripathi gained access to Prime Minister Sunak and the due diligence done by the Conservative Party before accepting his money. Following Sunak's trip in April 2023, he sent a thank-you note to Tripathi for arranging the flight. However, the private jet did not belong to Tripathi and was rented. So who is Akhil Tripathi? Entrepreneur, minor Tony donor Tripathi's startup Signifier Medical Technologies focuses on the development and commercialisation of innovative and non-invasive solutions for patients with snoring and sleep disorder-related breathing conditions. The company is hoping to sell its anti-snoring device to the National Health Service (NHS). Also read | Rishi Sunak calls out threats to MPs, warns of 'toxic' culture in UK politics The Financial Times report said that Tripathi is a minor Tory donor. Months after he arranged the private jet for Prime Minister Sunak, Tripathi was embroiled in a civil fraud case involving his start-up. He rented the Embraer Legacy 500 to Sunak, which the PM recorded as a $48,619 (around £38,500) gift. Sunak's trips led to questions about the due diligence that he and the Conservative party did on Tripathi, the report added. Tripathi made his first donation worth $63,142 to the Conservatives in July 2021. In total, he has given nearly $194,000 to the party. Since developing a relationship with Sunak, Tripathi has been pursued in the courts by investors in his startup. As per the report, one investor said that Tripathi committed a “fraud” in relation to the company. Also watch | Rishi Sunak's asylum laws trapping 55,000 people in perma-backlog: Report × Meanwhile, the entrepreneur has held meetings with several politicians, including former health secretary Sajid Javid and Chancellor of the Exchequer Jeremy Hunt. Not much is known about Tripathi's early background. As per Companies House, he is an Indian national born in 1985. He has been the co-founder of many other startups apart from Signifier. At the time Tripathi arranged for the flight for Sunak, Signifier reported losses of $42.3 million on revenue of just $3.1 million for the year to March 31, 2022, the report said. But despite the losses, Tripathi lived a glamorous lifestyle. 'How did Sunak end up on that plane?' The Labour Party demanded that Sunak and the Conservative Party should give an account of how the prime minister ended up on that private jet. “They must explain on what basis Mr Tripathi gained access to the highest levels of government, and what checks were made on his background before he did so,” Emily Thornberry, Labour’s shadow attorney-general, told the publication. Tripathi is currently facing two civil actions in the High Court of Justice in London. A Conservative party official said that on reflection, PM Sunak should have “maybe thought twice” before getting on the private jet arranged by the entrepreneur. (With inputs from agencies)

RBI likely to give government bumper interim dividend: Sources

The Reserve Bank of India (RBI) will not like the banking system to be in a situation of "loose money", Governor Shaktikanta Das said on Monday after a meeting with representatives of small- and medium-sized businesses.

The RBI is also looking at new governance reforms for state-owned banks but will not "throttle" their functioning, Das told reporters.

The Reserve Bank of India (RBI) will not like the banking system to be in a situation of "loose money", Governor Shaktikanta Das said on Monday after a meeting with representatives of small- and medium-sized businesses.

The Reserve Bank of India (RBI) will not like the banking system to be in a situation of "loose money", Governor Shaktikanta Das said on Monday after a meeting with representatives of small- and medium-sized businesses. The RBI is also looking at new governance reforms for state-owned banks but will not "throttle" their functioning, Das told reporters.

RBI will not allow 'loose money' situation: Shaktikanta Das

A sudden surge in crude prices can upset the nation's key macro-stability parameters, as it can sharply spike the current account deficit (CAD), inflation and the fiscal numbers, whittling the benefits of higher growth, warns an RBI study.

Since the country is heavily dependent on oil imports

To the tune of over 80 per cent for meeting its domestic demand, it remains susceptible to global crude price shocks.

Besides CAD, the rise in crude prices can also impact inflation and fiscal deficit, says the report.

The international crude prices increased by around 12 per cent between April and September 2018.

The mid-year spike in crude prices happened mainly due to spurt in demand, on the back of global growth revival, and partly due to geopolitical risks that led to supply-side shocks.

However, since mid-November 2018, the crude prices have declined significantly but they remain volatile.

"An increase in crude price worsens the CAD and this adverse impact cannot be significantly contained through higher growth. So, a crude price shock will be followed by high CAD to GDP ratio," says the latest issue of the Mint Street Memos titled 'The Impact of Crude Price Shock on CAD, Inflation and Fiscal Deficit' pencilled by in-house economists at the central bank.

The finding shows that in the worst case scenario, when crude prices hit $85/barrel, the deficit on account of oil balloons to $106.4 billion, which is 3.61 per cent of the GDP.

"Every $10/barrel increase in crude prices leads to an additional $12.5 billion deficit, which is roughly 43 bps of the country's GDP. So, every $10/barrel increase in crude price will shoot up the CAD/GDP ratio by 43 bps," it says.

The study says crude price shock will increase inflation if the price increase is passed on directly to the final consumers.

"Under the most conservative estimate, we quantify that a $10/barrel increase in crude price at the price of $65/barrel will lead to a 49 basis points increase in headline inflation. A similar increase at $55/barrel gives around a 58 bps increase in headline inflation," it says.

Further, if the government decides on a zero pass-through to the final consumers, a $10/barrel spike in crude prices could increase the fiscal deficit by 43bps.

This zero pass-through scenario allows us to put an upper band on the amount of fiscal slippage, it adds.

The actual inflation and fiscal deficit will finally depend on the level of government intervention (changes in tax and subsidy) in the domestic oil market, the study concludes.

A sudden surge in crude prices can upset the nation's key macro-stability parameters, as it can sharply spike the current account deficit (CAD), inflation and the fiscal numbers, whittling the benefits of higher growth, warns an RBI study.

A sudden surge in crude prices can upset the nation's key macro-stability parameters, as it can sharply spike the current account deficit (CAD), inflation and the fiscal numbers, whittling the benefits of higher growth, warns an RBI study. Since the country is heavily dependent on oil imports To the tune of over 80 per cent for meeting its domestic demand, it remains susceptible to global crude price shocks. Besides CAD, the rise in crude prices can also impact inflation and fiscal deficit, says the report. The international crude prices increased by around 12 per cent between April and September 2018. The mid-year spike in crude prices happened mainly due to spurt in demand, on the back of global growth revival, and partly due to geopolitical risks that led to supply-side shocks. However, since mid-November 2018, the crude prices have declined significantly but they remain volatile. "An increase in crude price worsens the CAD and this adverse impact cannot be significantly contained through higher growth. So, a crude price shock will be followed by high CAD to GDP ratio," says the latest issue of the Mint Street Memos titled 'The Impact of Crude Price Shock on CAD, Inflation and Fiscal Deficit' pencilled by in-house economists at the central bank. The finding shows that in the worst case scenario, when crude prices hit $85/barrel, the deficit on account of oil balloons to $106.4 billion, which is 3.61 per cent of the GDP. "Every $10/barrel increase in crude prices leads to an additional $12.5 billion deficit, which is roughly 43 bps of the country's GDP. So, every $10/barrel increase in crude price will shoot up the CAD/GDP ratio by 43 bps," it says. The study says crude price shock will increase inflation if the price increase is passed on directly to the final consumers. "Under the most conservative estimate, we quantify that a $10/barrel increase in crude price at the price of $65/barrel will lead to a 49 basis points increase in headline inflation. A similar increase at $55/barrel gives around a 58 bps increase in headline inflation," it says. Further, if the government decides on a zero pass-through to the final consumers, a $10/barrel spike in crude prices could increase the fiscal deficit by 43bps. This zero pass-through scenario allows us to put an upper band on the amount of fiscal slippage, it adds. The actual inflation and fiscal deficit will finally depend on the level of government intervention (changes in tax and subsidy) in the domestic oil market, the study concludes.

Crude shocker can be rude shocks for economy: RBI economists

<a href="http://www.wionews.com/india-news/government-not-seeking-rbi-reserves-to-meet-fiscal-deficit-arun-jaitley-187546">Reserve Bank </a>Governor Shaktikanta Das Wednesday said he will meet representatives of MSMEs and non-banking financial companies (NBFC) next week.

A day after the RBI announced a one-time loan restructuring scheme for the MSME sector, Das in a tweet said, "Will hold meetings with MSME associations and representatives of NBFCs next week."

The RBI's board in its crucial meeting held on November 19, 2018, had advised the central bank examine a scheme for the restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to Rs 25 crore, subject to such conditions as are necessary for ensuring financial stability.

The liquidity problem in the non-banking financial companies and housing finance companies came to the fore after series of loan defaults by IL&amp;FS, one of the largest NBFCs in the country.

The government has superseded the board of IL&amp;FS, and the debt-ridden company has already started the process to monetise its several assets.

RBI Governer Shaktikanta Das said in a tweet, 'Will hold meetings with MSME associations and representatives of NBFCs next week.'

Reserve Bank Governor Shaktikanta Das Wednesday said he will meet representatives of MSMEs and non-banking financial companies (NBFC) next week. A day after the RBI announced a one-time loan restructuring scheme for the MSME sector, Das in a tweet said, "Will hold meetings with MSME associations and representatives of NBFCs next week." The RBI's board in its crucial meeting held on November 19, 2018, had advised the central bank examine a scheme for the restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to Rs 25 crore, subject to such conditions as are necessary for ensuring financial stability. The liquidity problem in the non-banking financial companies and housing finance companies came to the fore after series of loan defaults by IL&FS, one of the largest NBFCs in the country. The government has superseded the board of IL&FS, and the debt-ridden company has already started the process to monetise its several assets.

RBI Governer Shaktikanta Das to meet MSME, NBFC representatives next week

<a href="http://www.wionews.com/business-economy/indias-retail-inflation-rate-hits-17-month-low-in-november-183540">Inflation</a> seems to have become a double-edged sword for policymakers with political opponents attacking the government over farmers getting hit due to low prices for agricultural produce, even as the rate of price rise in 2018 has mostly been contained within the targeted comfort zone.

The data showed retail as well as wholesale price inflation remaining low for the most part of the year, though spikes in petrol and diesel prices came as a spoiler.

The retail inflation, measured as per the Consumer Price Index (CPI), remained mostly below 5 per cent, within the RBI's comfort level of 4 per cent with a bias of plus/minus 2 per cent. January was the only month when it crossed 5 per cent.

The Wholesale Price Index (WPI) based inflation is now at a 3-month low of 4.64 per cent, having oscillated in a range of 2.74-5.68 per cent during the year.

The latest data puts retail inflation for November at the year's lowest level of 2.33 per cent, mainly due to low prices of food articles, coupled with deflation in some agricultural products — which is good news for consumers as well as the government and the RBI.

But, this same situation has also led to concerns about the falling prices of agricultural produce resulting in a crisis for farmers. The crisis has got further compounded for those having taken farm loans and there have been reports from various parts of the country about farmers failing to recover even input cost for some commodities including onion.

The year saw multiple agitations by farmers demanding better price of their produce and also effective measures to support the farming sector. The farmers' distress also became a key election issue during recently-held assembly polls and may again be in focus during the 2019 national elections.

In the past, high inflation has been a bigger headache for governments and policymakers.

SBI's Group Chief Economic Adviser Soumya Kanti Ghosh said the government needs to support the rural sector through some sort of price or income support scheme.

"The decline in inflation is largely driven by food, but the recent meltdown in oil will help the numbers further. While the decline in food inflation is comforting for consumers, it is not good news for farmers," Ghosh said.&nbsp;

Unlike in past, farmers have started to realise that short-term loan waivers are not going to work on a durable basis and they want better solutions including incentives to the farm sector, subsidy, low-cost power and irrigation facilities, experts feel.

Several farmer leaders have alleged the government was not heeding to their demands for a reasonable minimum support price (MSP) and the hike announced by the Centre has not matched their expectations.

Edelweiss Securities' economist Madhavi Arora said the terms of trade have been unfavourable for the agriculture sector as despite higher MSPs announced this year, the ground impact has remained modest and food inflation continues to plunge further.

JNU Professor Kamal Mitra Chenoy said it will not be easy for the government to contain the farmers' distress as it is too late to take any effective measure and loan waivers are short-sighted steps.

"Deflation in farm products, while beneficial for consumers, can hurt the income of farmers. It is therefore extremely important to take forward reforms in the marketing and distribution of agricultural produce, which will lead to better remuneration for the farmer," industry chamber CII's Director General Chandrajit Banerjee said.

Greater investment in agriculture is also required including for rural infrastructure, irrigation, storage and warehousing facilities, he added.

The industry body said inflation turned out to be lower than expected in 2018, primarily due to moderation in prices of food products, while on the other hand inflation in fuel and other products in the CPI basket have been higher.

This trend may be reversed in the coming year as fuel prices moderate on lower oil prices and a stable rupee. Food prices may move up from current low levels, but overall retail inflation is expected to remain within the 4 per cent target of the RBI, Banerjee added.&nbsp;

Ghosh also said inflation outlook looks significantly benign.

"We expect inflation trajectory to stay decisively below 4 per cent at least in the first half of 2019. Inflation till March will stay below 3.5 per cent.&nbsp;

Global outlook looks wobbly. This will also impact India's growth prospects," he said.

Arora said sustained lower inflation should open up space for easing of interest rates in the first half of 2019.

RBI has lowered its inflation projection to 2.7-3.2 per cent for the second half of the current fiscal, citing normal monsoon and moderate food prices.&nbsp;

For the first half of next fiscal, retail inflation has been pegged at 3.8-4.2 per cent.&nbsp;

Inflation seems to have become a double-edged sword for policymakers with political opponents attacking the government over farmers getting hit due to low prices for agricultural produce, even as the rate of price rise in 2018 has mostly been contained within the targeted comfort zone.

Inflation seems to have become a double-edged sword for policymakers with political opponents attacking the government over farmers getting hit due to low prices for agricultural produce, even as the rate of price rise in 2018 has mostly been contained within the targeted comfort zone. The data showed retail as well as wholesale price inflation remaining low for the most part of the year, though spikes in petrol and diesel prices came as a spoiler. The retail inflation, measured as per the Consumer Price Index (CPI), remained mostly below 5 per cent, within the RBI's comfort level of 4 per cent with a bias of plus/minus 2 per cent. January was the only month when it crossed 5 per cent. The Wholesale Price Index (WPI) based inflation is now at a 3-month low of 4.64 per cent, having oscillated in a range of 2.74-5.68 per cent during the year. The latest data puts retail inflation for November at the year's lowest level of 2.33 per cent, mainly due to low prices of food articles, coupled with deflation in some agricultural products — which is good news for consumers as well as the government and the RBI. But, this same situation has also led to concerns about the falling prices of agricultural produce resulting in a crisis for farmers. The crisis has got further compounded for those having taken farm loans and there have been reports from various parts of the country about farmers failing to recover even input cost for some commodities including onion. The year saw multiple agitations by farmers demanding better price of their produce and also effective measures to support the farming sector. The farmers' distress also became a key election issue during recently-held assembly polls and may again be in focus during the 2019 national elections. In the past, high inflation has been a bigger headache for governments and policymakers. SBI's Group Chief Economic Adviser Soumya Kanti Ghosh said the government needs to support the rural sector through some sort of price or income support scheme. "The decline in inflation is largely driven by food, but the recent meltdown in oil will help the numbers further. While the decline in food inflation is comforting for consumers, it is not good news for farmers," Ghosh said. Unlike in past, farmers have started to realise that short-term loan waivers are not going to work on a durable basis and they want better solutions including incentives to the farm sector, subsidy, low-cost power and irrigation facilities, experts feel. Several farmer leaders have alleged the government was not heeding to their demands for a reasonable minimum support price (MSP) and the hike announced by the Centre has not matched their expectations. Edelweiss Securities' economist Madhavi Arora said the terms of trade have been unfavourable for the agriculture sector as despite higher MSPs announced this year, the ground impact has remained modest and food inflation continues to plunge further. JNU Professor Kamal Mitra Chenoy said it will not be easy for the government to contain the farmers' distress as it is too late to take any effective measure and loan waivers are short-sighted steps. "Deflation in farm products, while beneficial for consumers, can hurt the income of farmers. It is therefore extremely important to take forward reforms in the marketing and distribution of agricultural produce, which will lead to better remuneration for the farmer," industry chamber CII's Director General Chandrajit Banerjee said. Greater investment in agriculture is also required including for rural infrastructure, irrigation, storage and warehousing facilities, he added. The industry body said inflation turned out to be lower than expected in 2018, primarily due to moderation in prices of food products, while on the other hand inflation in fuel and other products in the CPI basket have been higher. This trend may be reversed in the coming year as fuel prices moderate on lower oil prices and a stable rupee. Food prices may move up from current low levels, but overall retail inflation is expected to remain within the 4 per cent target of the RBI, Banerjee added. Ghosh also said inflation outlook looks significantly benign. "We expect inflation trajectory to stay decisively below 4 per cent at least in the first half of 2019. Inflation till March will stay below 3.5 per cent. Global outlook looks wobbly. This will also impact India's growth prospects," he said. Arora said sustained lower inflation should open up space for easing of interest rates in the first half of 2019. RBI has lowered its inflation projection to 2.7-3.2 per cent for the second half of the current fiscal, citing normal monsoon and moderate food prices. For the first half of next fiscal, retail inflation has been pegged at 3.8-4.2 per cent.

Inflation in 2018: Data shows price rise within comfort zone, but farmers hit

<a href="http://www.wionews.com/business-economy/rbi-to-soon-release-new-rs-20-bank-note-186317">The Reserve Bank </a>is looking at a mobile phone-based solution to help visually impaired people easily identify Indian currency notes.

Currently, intaglio printing-based identification marks are present in banknotes of Rs 100 and above for helping the visually challenged identify them. At present, banknotes of Rs 10, 20, 50, 100, 200, 500 and 2000 are in circulation.

There are about 80 lakh blind or visually impaired people in the country,&nbsp;who are likely to benefit from the initiative of the central bank.

In June 2018 <a href="http://www.wionews.com/opinions/shaktikanta-das-has-a-job-cut-out-for-himself-at-rbi-186078">the Reserve Bank </a>had announced that it will explore the feasibility of developing a suitable device or mechanism for aiding the visually impaired in the identification of Indian banknotes.

In line with that, the RBI has now invited expression of interest from vendors for developing a 'mechanism/device' for Identification of denomination of Indian banknotes.

The device/mechanism should be able to identify the denomination of a banknote with handheld operation, when the banknote is held in front of it/near it/inserted in it/ scrolled across it, within a few seconds (preferably 2 seconds or less) and read out in English/Hindi the denomination, said the tender document.

In case of a software-based solution, the document said: "The solution can be either totally software based capable to run on mobile phones or hardware driven or a combination of both... ."

Also, it should not require a data connection and should function in offline mode, as per the document.

In the&nbsp;case of a&nbsp;hardware-based solution, the device "should be battery operated, rechargeable, small and handy" for ease of operation and should not require additional light source including daylight.

The tender document also said it should be amply made clear to the user that the device/mechanism does not authenticate the genuineness or otherwise of the banknote and the user may ascertain the same separately.

India has changed its over four-decade-old definition of blindness, bringing it in line with the WHO criteria.&nbsp;

According to the new definition, a person who is unable to count fingers from a distance of three metres would be considered "blind" as against the earlier stipulation of six metres, which was adopted in 1976.

Going by the new definition, the population of blind people in India will reduce from 1.20 crore (as per National Blindness survey 2007 data) to 80 lakh.

The Reserve Bank is looking at a mobile phone-based solution to help visually impaired people easily identify Indian currency notes. Currently, intaglio printing-based identification marks are present in banknotes of Rs 100 and above for helping the visually challenged identify them.

The Reserve Bank is looking at a mobile phone-based solution to help visually impaired people easily identify Indian currency notes. Currently, intaglio printing-based identification marks are present in banknotes of Rs 100 and above for helping the visually challenged identify them. At present, banknotes of Rs 10, 20, 50, 100, 200, 500 and 2000 are in circulation. There are about 80 lakh blind or visually impaired people in the country, who are likely to benefit from the initiative of the central bank. In June 2018 the Reserve Bank had announced that it will explore the feasibility of developing a suitable device or mechanism for aiding the visually impaired in the identification of Indian banknotes. In line with that, the RBI has now invited expression of interest from vendors for developing a 'mechanism/device' for Identification of denomination of Indian banknotes. The device/mechanism should be able to identify the denomination of a banknote with handheld operation, when the banknote is held in front of it/near it/inserted in it/ scrolled across it, within a few seconds (preferably 2 seconds or less) and read out in English/Hindi the denomination, said the tender document. In case of a software-based solution, the document said: "The solution can be either totally software based capable to run on mobile phones or hardware driven or a combination of both... ." Also, it should not require a data connection and should function in offline mode, as per the document. In the case of a hardware-based solution, the device "should be battery operated, rechargeable, small and handy" for ease of operation and should not require additional light source including daylight. The tender document also said it should be amply made clear to the user that the device/mechanism does not authenticate the genuineness or otherwise of the banknote and the user may ascertain the same separately. India has changed its over four-decade-old definition of blindness, bringing it in line with the WHO criteria. According to the new definition, a person who is unable to count fingers from a distance of three metres would be considered "blind" as against the earlier stipulation of six metres, which was adopted in 1976. Going by the new definition, the population of blind people in India will reduce from 1.20 crore (as per National Blindness survey 2007 data) to 80 lakh.

RBI exploring mobile phone-based solution to help visually impaired identify banknotes

The US dollar strength, oil prices and next year's general elections will determine the rupee's direction in the near-term, with fundamentals being supportive for the domestic currency over the next 6-12 months, says a report by Standard Chartered.

<a href="http://www.wionews.com/business-economy/inflation-in-2018-data-shows-price-rise-within-comfort-zone-but-farmers-187302">Attractive real yields (net of inflation)</a>, growth momentum and robust forex reserves of $394 billion are likely to be positive for the Indian rupee (INR), said the report titled '2019 India Outlook — A year to prepare and react'.

On the macro overview, the report expects India's GDP growth to remain robust in 2019, supported by tailwinds from recent policy reforms (GST and bankruptcy code implementation), signs of a revival in private capex and pre-election spending.

"In our assessment, consumer price inflation (CPI) is likely to average 4 per cent in 2019. Benign food inflation, positive base effects, recent correction in oil prices and INR stability is likely to keep inflationary pressures under check," it said.

The report also said<a href="http://www.wionews.com/business-economy/rbi-exploring-mobile-phone-based-solution-to-help-visually-impaired-identify-banknotes-187305"> the RBI</a> is likely to stay on hold in 2019, as inflation is likely to remain within its medium-term target of 4 per cent.

"However, if inflation continues to undershoot RBI's target, there is a &nbsp;possibility of a rate cut later in 2019," it noted.

On the equity market, Standard Chartered said, "We remain positive on Indian equity markets in 2019, though more cautious compared to 2018."

"As we head into 2019, Indian markets are likely to remain volatile. We take a balanced approach to investing being selective in taking risk (diversified equity exposure) while keeping a greater margin of safety (preference for bonds) and keeping some dry power for tactical opportunities during the year," said Nitin Singh, MD and Head, Standard Chartered Wealth Management India.

Citing reasons for the likely volatility in markets, the report said India's twin deficits are likely to remain under pressure in 2019 as fiscal slippage risk is high and current account deficit rises amid a weak global funding environment.

"Second, while we don't see systemic risk arising from the recent liquidity pressures on non-banking financial companies (NBFCs), markets still need to adjust in the near-term to tighter financial conditions amid an elevated credit risk," it said.

It added that "as we near the general elections in mid-2019, risk premiums could rise to factor in political uncertainty".

The report said the macro environment is still supportive for equities.

Earnings growth outlook remains robust with high double-digit growth expected in 2019, it said.

"In our assessment, the recent market correction from 2018 peak has created a greater valuation buffer, with valuations converging closer to longer-term averages, compared to peak valuations a few months back," reads the report.

However, rising margin pressures and its impact on future profitability, stretched valuations relative to bonds and cash and moderating flows amid tighter liquidity are risks to equity outlook, it added.

The US dollar strength, oil prices and next year's general elections will determine the rupee's direction in the near-term, with fundamentals being supportive for the domestic currency over the next 6-12 months, says a report by Standard Chartered.

The US dollar strength, oil prices and next year's general elections will determine the rupee's direction in the near-term, with fundamentals being supportive for the domestic currency over the next 6-12 months, says a report by Standard Chartered. Attractive real yields (net of inflation), growth momentum and robust forex reserves of $394 billion are likely to be positive for the Indian rupee (INR), said the report titled '2019 India Outlook — A year to prepare and react'. On the macro overview, the report expects India's GDP growth to remain robust in 2019, supported by tailwinds from recent policy reforms (GST and bankruptcy code implementation), signs of a revival in private capex and pre-election spending. "In our assessment, consumer price inflation (CPI) is likely to average 4 per cent in 2019. Benign food inflation, positive base effects, recent correction in oil prices and INR stability is likely to keep inflationary pressures under check," it said. The report also said the RBI is likely to stay on hold in 2019, as inflation is likely to remain within its medium-term target of 4 per cent. "However, if inflation continues to undershoot RBI's target, there is a possibility of a rate cut later in 2019," it noted. On the equity market, Standard Chartered said, "We remain positive on Indian equity markets in 2019, though more cautious compared to 2018." "As we head into 2019, Indian markets are likely to remain volatile. We take a balanced approach to investing being selective in taking risk (diversified equity exposure) while keeping a greater margin of safety (preference for bonds) and keeping some dry power for tactical opportunities during the year," said Nitin Singh, MD and Head, Standard Chartered Wealth Management India. Citing reasons for the likely volatility in markets, the report said India's twin deficits are likely to remain under pressure in 2019 as fiscal slippage risk is high and current account deficit rises amid a weak global funding environment. "Second, while we don't see systemic risk arising from the recent liquidity pressures on non-banking financial companies (NBFCs), markets still need to adjust in the near-term to tighter financial conditions amid an elevated credit risk," it said. It added that "as we near the general elections in mid-2019, risk premiums could rise to factor in political uncertainty". The report said the macro environment is still supportive for equities. Earnings growth outlook remains robust with high double-digit growth expected in 2019, it said. "In our assessment, the recent market correction from 2018 peak has created a greater valuation buffer, with valuations converging closer to longer-term averages, compared to peak valuations a few months back," reads the report. However, rising margin pressures and its impact on future profitability, stretched valuations relative to bonds and cash and moderating flows amid tighter liquidity are risks to equity outlook, it added.

US dollar strength, oil prices, general elections to determine rupee direction in near term: Report

Probity watchdog <a href="http://www.wionews.com/india-news/respond-to-cvc-report-as-soon-as-possible-wont-adjourn-next-hearing-supreme-court-to-cbi-director-alok-verma-178143">Central Vigilance Commission (CVC)</a> has started examining audit reports of state-run banks and insurance companies to check incidents of fraud and suggest corrective measures, officials said Wednesday. &nbsp; &nbsp;

The move assumes significance with banks reporting large-scale fraud cases and the high number of bad loans or non-performing assets, they said.&nbsp;

Vigilance Commissioner T M Bhasin told PTI <a href="http://www.wionews.com/india-news/cbi-chief-verma-meets-central-vigilance-commissioner-denies-corruption-charges-against-him-176281">the CVC</a> is getting a review done of central statutory reports, concurrent auditors' reports and other auditor reports through chief vigilance officers of all public sector banks and insurance companies.&nbsp;

"The same (audit reports) are analyzed in the Commission and a corrective action plan is advised for time-bound implementation," he said.

Chief vigilance officers act as a distant arm of the CVC to check corruption and other fraudulent activities in an organization.&nbsp;

According to government data, various banks have reported an increase in cases of fraud during 2015-16 and 2017-18.

A total of 8,802 frauds have been reported by scheduled commercial banks and public sector banks in 2017-18 as against 7,794 in 2016-17 and 7,482 in 2015-16, according to a written reply given by the Finance Ministry in the Lok Sabha recently.

The Reserve Bank of India (RBI) monitors frauds reported by banks.&nbsp;

For management of fraud risk and to direct the focus of banks to early detection of loan frauds, prompt reporting to RBI and investigative agencies and timely initiation of staff accountability proceedings, RBI has issued a framework for dealing with loan frauds and Red Flagged Accounts (RFA). Timelines have been given for action incumbent on banks in dealing with loan frauds of Rs 50 crore and above, the ministry said.

The red flagging is done on an information technology platform where all banks report large exposure to entities/individuals so other banks can be forewarned about fraud risk, it said.&nbsp;

In October, the CVC completed a first-of-its-kind analysis of top 100 banking frauds, including those in the jewellery and aviation sectors, and shared its findings with the RBI, the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) among others.

The analysis focussed on the modus operandi, the amount involved, type of lending (viz. Consortium or individual), anomalies observed, loopholes that facilitated the perpetration of the fraud concerned and the systemic improvements required to plug the gaps in the system and procedures.

The frauds were classified and analysed for 13 sectors — gems and jewellery, manufacturing and industry, agro, media, aviation, service and project, discounting of cheques, trading, information technology, export business, fixed deposits, demand loan and letter of comfort.

The modus operandi of these top 100 loans has been thoroughly analysed and various loopholes or lapses have been identified, Bhasin had said after releasing a report on the matter.&nbsp;

Based on the findings, various industry-specific suggestions for systemic improvement have been given in the final report. The suggestions have also been sent to the Department of Financial Services and the RBI in order to plug the loopholes observed by the Commission, he said.

Probity watchdog Central Vigilance Commission (CVC) has started examining audit reports of state-run banks and insurance companies to check incidents of fraud and suggest corrective measures, officials said Wednesday.

Probity watchdog Central Vigilance Commission (CVC) has started examining audit reports of state-run banks and insurance companies to check incidents of fraud and suggest corrective measures, officials said Wednesday. The move assumes significance with banks reporting large-scale fraud cases and the high number of bad loans or non-performing assets, they said. Vigilance Commissioner T M Bhasin told PTI the CVC is getting a review done of central statutory reports, concurrent auditors' reports and other auditor reports through chief vigilance officers of all public sector banks and insurance companies. "The same (audit reports) are analyzed in the Commission and a corrective action plan is advised for time-bound implementation," he said. Chief vigilance officers act as a distant arm of the CVC to check corruption and other fraudulent activities in an organization. According to government data, various banks have reported an increase in cases of fraud during 2015-16 and 2017-18. A total of 8,802 frauds have been reported by scheduled commercial banks and public sector banks in 2017-18 as against 7,794 in 2016-17 and 7,482 in 2015-16, according to a written reply given by the Finance Ministry in the Lok Sabha recently. The Reserve Bank of India (RBI) monitors frauds reported by banks. For management of fraud risk and to direct the focus of banks to early detection of loan frauds, prompt reporting to RBI and investigative agencies and timely initiation of staff accountability proceedings, RBI has issued a framework for dealing with loan frauds and Red Flagged Accounts (RFA). Timelines have been given for action incumbent on banks in dealing with loan frauds of Rs 50 crore and above, the ministry said. The red flagging is done on an information technology platform where all banks report large exposure to entities/individuals so other banks can be forewarned about fraud risk, it said. In October, the CVC completed a first-of-its-kind analysis of top 100 banking frauds, including those in the jewellery and aviation sectors, and shared its findings with the RBI, the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) among others. The analysis focussed on the modus operandi, the amount involved, type of lending (viz. Consortium or individual), anomalies observed, loopholes that facilitated the perpetration of the fraud concerned and the systemic improvements required to plug the gaps in the system and procedures. The frauds were classified and analysed for 13 sectors — gems and jewellery, manufacturing and industry, agro, media, aviation, service and project, discounting of cheques, trading, information technology, export business, fixed deposits, demand loan and letter of comfort. The modus operandi of these top 100 loans has been thoroughly analysed and various loopholes or lapses have been identified, Bhasin had said after releasing a report on the matter. Based on the findings, various industry-specific suggestions for systemic improvement have been given in the final report. The suggestions have also been sent to the Department of Financial Services and the RBI in order to plug the loopholes observed by the Commission, he said.

CVC examining audit reports of state-run banks, insurance companies to check fraud

The Reserve Bank of India (RBI) will soon introduce a new Rs 20 currency note with additional features, according to a document of the central bank.

The central bank has already issued new look currency notes in the denominations of Rs 10, Rs 50, Rs 100, and Rs 500, besides introducing Rs 200 and Rs 2,000 bank notes.

The new look notes are being introduced since November 2016 under Mahatma Gandhi (New) series. These are different in size and design compared to the notes issued previously.

The currency notes, except for banned Rs 500 and Rs 1,000, issued under old series continue to remain legal tender.

According to the RBI data bank, there were 4.92 billion pieces of Rs 20 note in circulation as on March 31, 2016. The number more than doubled to about 10 billion pieces by March 2018.

The Rs 20 notes accounted for 9.8 per cent of the total number of currency notes in circulation at the end of March 2018.&nbsp;

The Reserve Bank of India (RBI) will soon introduce a new Rs 20 currency note with additional features, according to a document of the central bank. The central bank has already issued new look currency notes in the denominations of Rs 10, Rs 50, Rs 100, and Rs 500, besides introducing Rs 200 and Rs 2,000 bank notes.

The Reserve Bank of India (RBI) will soon introduce a new Rs 20 currency note with additional features, according to a document of the central bank. The central bank has already issued new look currency notes in the denominations of Rs 10, Rs 50, Rs 100, and Rs 500, besides introducing Rs 200 and Rs 2,000 bank notes. The new look notes are being introduced since November 2016 under Mahatma Gandhi (New) series. These are different in size and design compared to the notes issued previously. The currency notes, except for banned Rs 500 and Rs 1,000, issued under old series continue to remain legal tender. According to the RBI data bank, there were 4.92 billion pieces of Rs 20 note in circulation as on March 31, 2016. The number more than doubled to about 10 billion pieces by March 2018. The Rs 20 notes accounted for 9.8 per cent of the total number of currency notes in circulation at the end of March 2018.

RBI to soon release new Rs 20 bank note

The outgoing year marks a watershed in the annals of the country’s apex bank as the Reserve Bank of India (RBI) turned out to be a tussling ground for its governor and the government.

The denouement came when the soft, scholarly and self-effacing twenty-fourth governor of the central bank, Urjit Patel, called it quits on December 10 and the government lost little time in filling the vacancy with a retired career bureaucrat and Member Fifteenth Finance Commission, Shaktikanta Das.

In a written reply to a query, Minister of State for Finance Shiv Pratap Shukla, conceded in the Lok Sabha on December 14 that the “government asked RBI for a review of its Economic Capital Framework (ECF) adopted in 2016… the board has decided to constitute an Expert Committee to examine the ECF, the membership of the terms of reference of which will be jointly determined by the government and the RBI”.&nbsp;

It needs to be noted that the erstwhile governor Patel stuck to his guns in not yielding an inch in the governing structure and economic policy framework that would translate into more access to the government to RBI’s surplus reserves of Rs 9.3 lakh crore.

This is all the more so when the RBI has the big mandate to keep inflation at four per cent within a band of plus/minus one per cent. So any leeway or access to the surplus funds parked with the banking regulator being extended to the government especially at a time when the nation is going to the mega polls in 2019, is bound to goad it to splurge on goodies and other populist schemes that would only stoke and fuel inflationary fires before long. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;

Though other weighty issues such as credit and liquidity being made reasonably available to the real sectors of the economy and at an affordable cost, the central bank is seized of the problems and is taking steps to ensure that credit delivery to the vital sectors is ensured through various ongoing measures it had kept unveiling from time to time.&nbsp;

RBI data reveals that the banking system’s non-food credit growth, which touched a nadir to 7-8 per cent in the three years to October 2017 (when the RBI cracked the whip to cleanse the stable of sore NPAs), returned to double-digit growth between October 2017 to October 2018 at 13 per cent.

The arrival of a bureaucrat to the RBI as its top man is coterminous with the efforts of the BJP-led NDA government to revive the fortunes of the slowing economy. For Shaktikanta Das, who was instrumental in altering the industrial landscape of Tamil Nadu as the Industries Secretary in two spells, his elevation to the corner office of the central bank is bound to be keenly watched by wonks. He had worked in the Finance Ministry at various levels and was representing the government side in framing the inflation-targeting as the supreme remit of the RBI, besides being a vocal supporter of the controversial demonetisation policy of the government.

He has plates full of priority issues that range from RBI governance, transfer of RBI reserves to the government, systemic liquidity encompassing a window for distressed finance companies, relaxation of the February 12 circular, which hardened the norms for non-performing loans to allowing banks that are in the Prompt Corrective Action (PCA) category, to resume lending.&nbsp;

The first board meeting he presided over on December 14 was shorn of drama/trauma, confined to less than an hour by resolving to examine the issues further, review liquidity, credit delivery and economic situation.

As its next board meeting is in January 2019, Das must perforce have to balance his new avatar as a central banker with his quondam position as one from the other side of the ring, so that he is seen not abandoning the quest of his predecessor bureaucrat-turned RBI governors such as YV Reddy and D Subba Rao, who strove to ensure the autonomy, credibility and independence of the RBI even by demurring with their Finance Ministers in their own unobtrusive ways.

(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-shaktikanta-das-has-a-job-cut-out-for-himself-at-rbi-2699553">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The outgoing year marks a watershed in the annals of the country’s apex bank as the Reserve Bank of India (RBI) turned out to be a tussling ground for its governor and the government.

The outgoing year marks a watershed in the annals of the country’s apex bank as the Reserve Bank of India (RBI) turned out to be a tussling ground for its governor and the government. The denouement came when the soft, scholarly and self-effacing twenty-fourth governor of the central bank, Urjit Patel, called it quits on December 10 and the government lost little time in filling the vacancy with a retired career bureaucrat and Member Fifteenth Finance Commission, Shaktikanta Das. In a written reply to a query, Minister of State for Finance Shiv Pratap Shukla, conceded in the Lok Sabha on December 14 that the “government asked RBI for a review of its Economic Capital Framework (ECF) adopted in 2016… the board has decided to constitute an Expert Committee to examine the ECF, the membership of the terms of reference of which will be jointly determined by the government and the RBI”. It needs to be noted that the erstwhile governor Patel stuck to his guns in not yielding an inch in the governing structure and economic policy framework that would translate into more access to the government to RBI’s surplus reserves of Rs 9.3 lakh crore. This is all the more so when the RBI has the big mandate to keep inflation at four per cent within a band of plus/minus one per cent. So any leeway or access to the surplus funds parked with the banking regulator being extended to the government especially at a time when the nation is going to the mega polls in 2019, is bound to goad it to splurge on goodies and other populist schemes that would only stoke and fuel inflationary fires before long. Though other weighty issues such as credit and liquidity being made reasonably available to the real sectors of the economy and at an affordable cost, the central bank is seized of the problems and is taking steps to ensure that credit delivery to the vital sectors is ensured through various ongoing measures it had kept unveiling from time to time. RBI data reveals that the banking system’s non-food credit growth, which touched a nadir to 7-8 per cent in the three years to October 2017 (when the RBI cracked the whip to cleanse the stable of sore NPAs), returned to double-digit growth between October 2017 to October 2018 at 13 per cent. The arrival of a bureaucrat to the RBI as its top man is coterminous with the efforts of the BJP-led NDA government to revive the fortunes of the slowing economy. For Shaktikanta Das, who was instrumental in altering the industrial landscape of Tamil Nadu as the Industries Secretary in two spells, his elevation to the corner office of the central bank is bound to be keenly watched by wonks. He had worked in the Finance Ministry at various levels and was representing the government side in framing the inflation-targeting as the supreme remit of the RBI, besides being a vocal supporter of the controversial demonetisation policy of the government. He has plates full of priority issues that range from RBI governance, transfer of RBI reserves to the government, systemic liquidity encompassing a window for distressed finance companies, relaxation of the February 12 circular, which hardened the norms for non-performing loans to allowing banks that are in the Prompt Corrective Action (PCA) category, to resume lending. The first board meeting he presided over on December 14 was shorn of drama/trauma, confined to less than an hour by resolving to examine the issues further, review liquidity, credit delivery and economic situation. As its next board meeting is in January 2019, Das must perforce have to balance his new avatar as a central banker with his quondam position as one from the other side of the ring, so that he is seen not abandoning the quest of his predecessor bureaucrat-turned RBI governors such as YV Reddy and D Subba Rao, who strove to ensure the autonomy, credibility and independence of the RBI even by demurring with their Finance Ministers in their own unobtrusive ways. (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Shaktikanta Das has a job cut out for himself at RBI

Demanding special status for his state, Andhra Pradesh Chief Minister N Chandrababu Naidu held "Dharma Porata Deeksha" (struggle for justice) protest against the BJP-led NDA government at the Centre, at Srikakulam town on Saturday.

While addressing a public meeting; the Chief Minister asserted that he will not stop until justice is done to the state of Andhra Pradesh. Furious with the BJP, Naidu accused it of betraying Andhra Pradesh.

"Modi had sworn at the abode of Lord Balaji to build a capital for Andhra Pradesh, which would be greater than Delhi, to fulfil the promises of reorganization act, to give special package in the lines of Bundelkhand package. But he did not fulfil not even a single promise."He cheated by not giving special status to Andhra Pradesh, whereas the status is extended for 11 states`` he added.

He further cornered the Centre for ignoring his relentless endeavours to attain a special status for Andhra Pradesh.

"Prime Minister Modi did not respond even after reminding a number of times to stand on his word. The centre continued threatening attitude, compelling TDP to quit NDA. On the very same day, we decided that there is no way other than fighting against the centre."Our party MPs` fight against the centre has been remarkable; all parties across the country supported us. The centre gave only Rs 1500 crores for construction of capital, in fact, those funds are enough only for underground cable works. The youth of Andhra should be ready to fight against the betrayal of BJP. Special category status is the right of Andhra people and we all have to fight united for that," he added.

He also accused the BJP of meddling in the affairs of Central agencies like the CBI and the RBI among other constitutional institutions.

"BJP led NDA government has weakened CBI, RBI and all other constitutional institutions. The NDA is taking away the freedom of all the people of the country. Industrialists and business class are afraid of the Central Government."

He also touched upon the issue of EVM tampering and batted for using ballot paper to cast vote in the 2019 general elections.

"The public should be alert in the forthcoming elections. EVMs are not tampered proof, there are suspicions on the misuse of EVMs in the country. Paper ballot alone can be good. No developed country is using EVMs," he said.

Continuing his tirade, he alleged that the opposition party in the state, YS Jaganmohan Reddy-led YSRCP has colluded with the BJP to conspire against the TDP.&nbsp;

Demanding special status for his state, Andhra Pradesh Chief Minister N Chandrababu Naidu held "Dharma Porata Deeksha" (struggle for justice) protest against the BJP-led NDA government at the Centre, at Srikakulam town on Saturday.

Demanding special status for his state, Andhra Pradesh Chief Minister N Chandrababu Naidu held "Dharma Porata Deeksha" (struggle for justice) protest against the BJP-led NDA government at the Centre, at Srikakulam town on Saturday. While addressing a public meeting; the Chief Minister asserted that he will not stop until justice is done to the state of Andhra Pradesh. Furious with the BJP, Naidu accused it of betraying Andhra Pradesh. "Modi had sworn at the abode of Lord Balaji to build a capital for Andhra Pradesh, which would be greater than Delhi, to fulfil the promises of reorganization act, to give special package in the lines of Bundelkhand package. But he did not fulfil not even a single promise."He cheated by not giving special status to Andhra Pradesh, whereas the status is extended for 11 states`` he added. He further cornered the Centre for ignoring his relentless endeavours to attain a special status for Andhra Pradesh. "Prime Minister Modi did not respond even after reminding a number of times to stand on his word. The centre continued threatening attitude, compelling TDP to quit NDA. On the very same day, we decided that there is no way other than fighting against the centre."Our party MPs` fight against the centre has been remarkable; all parties across the country supported us. The centre gave only Rs 1500 crores for construction of capital, in fact, those funds are enough only for underground cable works. The youth of Andhra should be ready to fight against the betrayal of BJP. Special category status is the right of Andhra people and we all have to fight united for that," he added. He also accused the BJP of meddling in the affairs of Central agencies like the CBI and the RBI among other constitutional institutions. "BJP led NDA government has weakened CBI, RBI and all other constitutional institutions. The NDA is taking away the freedom of all the people of the country. Industrialists and business class are afraid of the Central Government." He also touched upon the issue of EVM tampering and batted for using ballot paper to cast vote in the 2019 general elections. "The public should be alert in the forthcoming elections. EVMs are not tampered proof, there are suspicions on the misuse of EVMs in the country. Paper ballot alone can be good. No developed country is using EVMs," he said. Continuing his tirade, he alleged that the opposition party in the state, YS Jaganmohan Reddy-led YSRCP has colluded with the BJP to conspire against the TDP.

Special status row: TDP protests against BJP in Srikakulam

National Conference chief <a href="http://www.wionews.com/india-news/sajjad-lones-father-brought-gun-to-valley-farooq-abdullah-181099">Farooq Abdullah</a> Friday said Congress president <a href="http://www.wionews.com/opinions/is-it-going-to-be-rahul-gandhi-vs-narendra-modi-in-2019-185056">Rahul Gandhi</a> is no longer a "Pappu" and has proved his mettle as a leader by winning elections in three Hindi heartland states. 
 
Speaking at an event here, he also questioned the need for the BJP's proposed Rath Yatra in West Bengal and wondered whether the party wants to project itself as a saviour of the Hindus. 
 
"Rahul Gandhi is no longer a Pappu. He has proved his mettle by winning three states," Abdullah said during an interactive session. 
 
Gandhi has often been mocked by the BJP and his opposition as "Pappu", a colloquial sneer. 
 
Abdullah took on the government saying institutions like the RBI are being polluted under the present regime. He alleged that efforts are being made to divide the country on religious lines. 
 
"It is wrong the way they are trying to divide the nation on the basis of religion. The way there has been interference in Muslim religion and its practices is unfortunate," the former chief minister of Jammu and Kashmir said.

National Conference chief Farooq Abdullah Friday said Congress president Rahul Gandhi is no longer a "Pappu" and has proved his mettle as a leader by winning elections in three Hindi heartland states.

National Conference chief Farooq Abdullah Friday said Congress president Rahul Gandhi is no longer a "Pappu" and has proved his mettle as a leader by winning elections in three Hindi heartland states. Speaking at an event here, he also questioned the need for the BJP's proposed Rath Yatra in West Bengal and wondered whether the party wants to project itself as a saviour of the Hindus. "Rahul Gandhi is no longer a Pappu. He has proved his mettle by winning three states," Abdullah said during an interactive session. Gandhi has often been mocked by the BJP and his opposition as "Pappu", a colloquial sneer. Abdullah took on the government saying institutions like the RBI are being polluted under the present regime. He alleged that efforts are being made to divide the country on religious lines. "It is wrong the way they are trying to divide the nation on the basis of religion. The way there has been interference in Muslim religion and its practices is unfortunate," the former chief minister of Jammu and Kashmir said.

Rahul no longer a 'Pappu' after poll win in three states: Farooq Abdullah

Days after Reserve Bank governor Urjit Patel's resignation, finance minister Arun Jaitely Tuesday said while enjoying functional autonomy, a regulator cannot be "isolationist" and has to consult all stakeholders.

Without mentioning the government invoking the never- before-used controversial Section 7 of the RBI Act, he said government used "every instrument available to our advantage to force a discussion with RBI" on the issues of liquidity and credit which is important for the economy.

He claimed that there was never a breakdown in the relationship between RBI and government, and that pleasant meetings were held regularly on the differences at all levels, including with the Prime Minister Narendra Modi.

"Institutions need to be independent, they need to have functional autonomy but institutions don't have to be isolationist," Jaitely said, speaking at an event organised by Republic channel.

Without specifying RBI, he said there is a need for regulators to consult all the stakeholders as that is when one gets a "feel of the market."

One cannot say that one reads the books, data and research papers before forming opinions, he said.

"The empirical situation in the market will be entirely different, unless you consult stakeholders," he said, adding there is a fair chance of a regulator going wrong on a subject because of the isolationist attitude.

It can be noted that in the weeks prior to his sudden exit from RBI, there were some reports of Patel refusing to meet key stakeholders, especially from non-bank lenders when they were in crisis.

Patel's successor Shaktikanta Das has made it clear on day one that he will be meeting all stakeholders more and already had a chat with city-based heads of state run banks.

Jaitley also hit out at previous government for displaying a "defeatist" attitude in the face of an "indifferent" RBI when it came to the matter of interest rate.

Improvising on a statement from his predecessor P Chidambaram of "walking alone" in face of non-cooperation by RBI under D Subbarao, he said, "when you walk, other decision-makers also have to talk with you".

He hoped RBI will look at the widening real interest rates, a consequence of a massive dip in inflation, while announcing the next policy review.

Jaitley also reiterated that government is not eyeing any windfall from the RBI's excess capital reserves which can be used for high public expenditure ahead of the elections.

He also affirmed government's commitment to meet the 3.3 per cent fiscal deficit target, despite the gap already having been overshot with five before the end of the fiscal.

As of October, government has already used up by its borrowing window by 4 percentage points at 104 per cent.

Jaitley said he hops the newly-formed Congress governments in Madhya Pradesh and Chhattisgarh find resources to fund farm loan waivers while flagging the importance of states also not missing their fiscal gap targets.

Referring to the pain caused by populist measures, he said a previous Congress government's free electricity to farmers resulted in state-run discoms' debt shooting up to Rs 70,000 crore from Rs 22,000 crore in five years after the announcement.&nbsp;

Days after Reserve Bank governor Urjit Patel's resignation, finance minister Arun Jaitely Tuesday said while enjoying functional autonomy, a regulator cannot be "isolationist" and has to consult all stakeholders.

Days after Reserve Bank governor Urjit Patel's resignation, finance minister Arun Jaitely Tuesday said while enjoying functional autonomy, a regulator cannot be "isolationist" and has to consult all stakeholders. Without mentioning the government invoking the never- before-used controversial Section 7 of the RBI Act, he said government used "every instrument available to our advantage to force a discussion with RBI" on the issues of liquidity and credit which is important for the economy. He claimed that there was never a breakdown in the relationship between RBI and government, and that pleasant meetings were held regularly on the differences at all levels, including with the Prime Minister Narendra Modi. "Institutions need to be independent, they need to have functional autonomy but institutions don't have to be isolationist," Jaitely said, speaking at an event organised by Republic channel. Without specifying RBI, he said there is a need for regulators to consult all the stakeholders as that is when one gets a "feel of the market." One cannot say that one reads the books, data and research papers before forming opinions, he said. "The empirical situation in the market will be entirely different, unless you consult stakeholders," he said, adding there is a fair chance of a regulator going wrong on a subject because of the isolationist attitude. It can be noted that in the weeks prior to his sudden exit from RBI, there were some reports of Patel refusing to meet key stakeholders, especially from non-bank lenders when they were in crisis. Patel's successor Shaktikanta Das has made it clear on day one that he will be meeting all stakeholders more and already had a chat with city-based heads of state run banks. Jaitley also hit out at previous government for displaying a "defeatist" attitude in the face of an "indifferent" RBI when it came to the matter of interest rate. Improvising on a statement from his predecessor P Chidambaram of "walking alone" in face of non-cooperation by RBI under D Subbarao, he said, "when you walk, other decision-makers also have to talk with you". He hoped RBI will look at the widening real interest rates, a consequence of a massive dip in inflation, while announcing the next policy review. Jaitley also reiterated that government is not eyeing any windfall from the RBI's excess capital reserves which can be used for high public expenditure ahead of the elections. He also affirmed government's commitment to meet the 3.3 per cent fiscal deficit target, despite the gap already having been overshot with five before the end of the fiscal. As of October, government has already used up by its borrowing window by 4 percentage points at 104 per cent. Jaitley said he hops the newly-formed Congress governments in Madhya Pradesh and Chhattisgarh find resources to fund farm loan waivers while flagging the importance of states also not missing their fiscal gap targets. Referring to the pain caused by populist measures, he said a previous Congress government's free electricity to farmers resulted in state-run discoms' debt shooting up to Rs 70,000 crore from Rs 22,000 crore in five years after the announcement.

Regulators can't work in isolation: Jaitley on row with RBI

&nbsp;The crucial central board meeting of the Reserve Bank is underway Friday morning to discuss contentious issues including a new economic capital framework (ECF) for the central bank and relaxation in the prompt corrective action norms for at least some of 12 state-run banks.

This is the first board meet chaired by the <a href="http://www.wionews.com/india-news/will-uphold-autonomy-of-rbi-new-governor-shaktikanta-das-183476">newly- appointed Shaktikanta Das</a>, who took over as the <a href="http://www.wionews.com/business-economy/shaktikanta-das-assumes-charge-as-rbi-governor-183416">25th governor</a> on Wednesday.

In the previous board meeting, held on November 19, the board had decided to constitute a committee of experts to fix the appropriate level of economic capital framework (ECF) that the central bank should hold at any given time and the membership and terms of reference of which will be jointly determined by government and RBI.

The issue of transfer of RBI's excess reserves, which stood at Rs 9.43 lakh crore as of June 2018, to the government has been one of the contentious issues between the government and the central bank for a long time and also one of the key reasons for the sudden <a href="http://www.wionews.com/india-news/rbi-governor-urjit-patel-resigns-cites-personal-reasons-182915">resignation of Urjit Patel</a> Monday.

The 18-member RBI board will also deliberate on the relaxation of prompt corrective action norms. Of the 21 state-owned banks, 11 are under the PCA framework, which imposes lending and other restrictions on weak lenders.

These are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra.

On Thursday, Das met the chiefs of a few state-run banks to discuss their concerns. Lenders requested the governor to ease the PCA norms and also sought relaxation in the one-day default norm announced in the February 12 RBI circular on the reclassification of NPAs.

At the November 19 meeting, the RBI board had also decided to refer the issue of relaxing PCA framework to the Board of Financial Supervision (BFS) of the central bank.

Unlike the last meet, which lasted for 10 hours, Friday's meeting is likely to get over by afternoon.&nbsp;

The crucial central board meeting of the Reserve Bank is underway Friday morning to discuss contentious issues including a new economic capital framework (ECF) for the central bank and relaxation in the prompt corrective action norms for at least some of 12 state-run banks.

The crucial central board meeting of the Reserve Bank is underway Friday morning to discuss contentious issues including a new economic capital framework (ECF) for the central bank and relaxation in the prompt corrective action norms for at least some of 12 state-run banks. This is the first board meet chaired by the newly- appointed Shaktikanta Das, who took over as the 25th governor on Wednesday. In the previous board meeting, held on November 19, the board had decided to constitute a committee of experts to fix the appropriate level of economic capital framework (ECF) that the central bank should hold at any given time and the membership and terms of reference of which will be jointly determined by government and RBI. The issue of transfer of RBI's excess reserves, which stood at Rs 9.43 lakh crore as of June 2018, to the government has been one of the contentious issues between the government and the central bank for a long time and also one of the key reasons for the sudden resignation of Urjit Patel Monday. The 18-member RBI board will also deliberate on the relaxation of prompt corrective action norms. Of the 21 state-owned banks, 11 are under the PCA framework, which imposes lending and other restrictions on weak lenders. These are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra. On Thursday, Das met the chiefs of a few state-run banks to discuss their concerns. Lenders requested the governor to ease the PCA norms and also sought relaxation in the one-day default norm announced in the February 12 RBI circular on the reclassification of NPAs. At the November 19 meeting, the RBI board had also decided to refer the issue of relaxing PCA framework to the Board of Financial Supervision (BFS) of the central bank. Unlike the last meet, which lasted for 10 hours, Friday's meeting is likely to get over by afternoon.

RBI board meeting gets underway

The rupee Friday depreciated by 14 paise to 71.82 in early trade on the forex market as the American currency strengthened, while the domestic equity market opened on a weak note.

Forex traders said strengthening of the US dollar against some currencies overseas and caution ahead of RBI central board meeting under new Governor Shaktikanta Das, weighed on the local unit.

At the Interbank Foreign Exchange, the rupee opened on a weak note at 71.80 against the US dollar, then lost further ground and fell to 71.82 showing a decline of 14 paise over it's previous closing.

On Thursday the rupee appreciated by 33 paise to 71.68 per US dollar.

However, fresh foreign fund inflows capped the losses for the domestic unit.

Foreign funds bought shares worth Rs 675.14 crore from the capital markets on a net basis Thursday, while domestic institutional investors sold shares worth Rs 51.86 crore, provisional data showed.

The global benchmark, brent crude oil was trading at $ 61.16 per barrel, lower by 0.47 per cent.

Meanwhile, domestic equity market opened on cautious note. The 30-share BSE benchmark Sensex, was trading at 35,995.07, up 25.43 points in early trade. The wide-based Nifty was also trading with gains of 4.15 points at 10,795.70.

The rupee Friday depreciated by 14 paise to 71.82 in early trade on the forex market as the American currency strengthened, while the domestic equity market opened on a weak note.

The rupee Friday depreciated by 14 paise to 71.82 in early trade on the forex market as the American currency strengthened, while the domestic equity market opened on a weak note. Forex traders said strengthening of the US dollar against some currencies overseas and caution ahead of RBI central board meeting under new Governor Shaktikanta Das, weighed on the local unit. At the Interbank Foreign Exchange, the rupee opened on a weak note at 71.80 against the US dollar, then lost further ground and fell to 71.82 showing a decline of 14 paise over it's previous closing. On Thursday the rupee appreciated by 33 paise to 71.68 per US dollar. However, fresh foreign fund inflows capped the losses for the domestic unit. Foreign funds bought shares worth Rs 675.14 crore from the capital markets on a net basis Thursday, while domestic institutional investors sold shares worth Rs 51.86 crore, provisional data showed. The global benchmark, brent crude oil was trading at $ 61.16 per barrel, lower by 0.47 per cent. Meanwhile, domestic equity market opened on cautious note. The 30-share BSE benchmark Sensex, was trading at 35,995.07, up 25.43 points in early trade. The wide-based Nifty was also trading with gains of 4.15 points at 10,795.70.

Rupee rises 14 paise to 71.82 against US dollar in early trade

Former Chief Economic Advisor (CEA) Arvind Subramanian opined that although the Reserve Bank of India's (RBI) independence is sacred, there must be "creative tension" between the central bank and government.

Subramanian, who participated in an interactive session with entrepreneur and co-founder of Infosys Nandan Nilekani, was of the view that anything that damages or undermines the RBI's reputation will cost the country dearly in the long run.

Also read: <a href="http://www.wionews.com/india-news/will-uphold-autonomy-of-rbi-new-governor-shaktikanta-das-183476">Will protect RBI's autonomy, says New Governor Shaktikanta Das</a>

"We want autonomy and independence but along with communication and cooperation because both parts of the government (i.e. RBI and government) have to work together as many of their objectives are common. There will be some objectives which are different and that's why we created RBI. They will never agree, they should never agree, there has to be a creative tension," he said.

Subramanian, however, noted that despite all shortcomings in the last 5-6 years, the RBI remains one of India's most respected institutions.

Acknowledging the connect between financial stability and robust functioning of the Reserve Bank, Subramanian, who is a visiting professor at Harvard University, said the RBI has to be accountable for glaring deficiencies and shortcomings in the financial system or economy.

"As long as autonomy (of RBI) is protected, there will be no issues," he asserted.

The recent rift between the RBI and the union government is one that has been widely debated, particularly after RBI Deputy Governor Viral Acharya stressed on the need to ensure the central bank's independence.

On Monday, Urjit Patel stepped down as the RBI Governor citing "personal reasons", weeks after differences between the central bank and the government regarding its "independence" became public.

A day later, former economic affairs secretary Shaktikanta Das was appointed as the new governor of the central bank with immediate effect.

Former Chief Economic Advisor (CEA) Arvind Subramanian opined that although the Reserve Bank of India's (RBI) independence is sacred, there must be "creative tension" between the central bank and government.

Former Chief Economic Advisor (CEA) Arvind Subramanian opined that although the Reserve Bank of India's (RBI) independence is sacred, there must be "creative tension" between the central bank and government. Subramanian, who participated in an interactive session with entrepreneur and co-founder of Infosys Nandan Nilekani, was of the view that anything that damages or undermines the RBI's reputation will cost the country dearly in the long run. Also read: Will protect RBI's autonomy, says New Governor Shaktikanta Das "We want autonomy and independence but along with communication and cooperation because both parts of the government (i.e. RBI and government) have to work together as many of their objectives are common. There will be some objectives which are different and that's why we created RBI. They will never agree, they should never agree, there has to be a creative tension," he said. Subramanian, however, noted that despite all shortcomings in the last 5-6 years, the RBI remains one of India's most respected institutions. Acknowledging the connect between financial stability and robust functioning of the Reserve Bank, Subramanian, who is a visiting professor at Harvard University, said the RBI has to be accountable for glaring deficiencies and shortcomings in the financial system or economy. "As long as autonomy (of RBI) is protected, there will be no issues," he asserted. The recent rift between the RBI and the union government is one that has been widely debated, particularly after RBI Deputy Governor Viral Acharya stressed on the need to ensure the central bank's independence. On Monday, Urjit Patel stepped down as the RBI Governor citing "personal reasons", weeks after differences between the central bank and the government regarding its "independence" became public. A day later, former economic affairs secretary Shaktikanta Das was appointed as the new governor of the central bank with immediate effect.

Creative tension should exist between RBI, Government: Former CEA Arvind Subramanian

The rupee Thursday appreciated by 42 paise to 71.59 in early trade after the new RBI governor Shaktikanta Das took charge and stressed on the need of a consultative approach to tackle pressing economic issues.

Forex traders said a higher opening of domestic equity markets and weakening of the US dollar against some currencies overseas boosted the local unit.

"The new RBI governor's first speech confirms our initial impression that he is likely to be more communicative and consultative in his approach, which is a positive," Japanese financial services major Nomura said in a research note.

At the Interbank Foreign Exchange, the rupee opened on a strong note at 71.70 against the US dollar, then appreciated further to 71.59 showing a rise of 42 paise over it's previous closing.

On Wednesday the rupee had declined by 16 paise to 72.01 per US dollar.

Traders however said that significant foreign fund outflows and rising crude oil prices weighed on the domestic currency and capped the upmove.

Foreign funds sold shares worth Rs 1,299.43 crore from the capital markets on a net basis Wednesday, while domestic institutional investors bought shares worth Rs 1,121.29 crore, provisional data showed.

The global benchmark Brent crude was trading higher by 0.68 per cent at 60.56 per barrel.

Meanwhile, domestic equity market opened on a higher note. The 30-share BSE benchmark <a href="http://www.wionews.com/business-economy/sensex-rises-over-200-points-nifty-reclaims-10800-mark-183603">Sensex,</a> was trading at 35,985.34, up 206.27 points in early trade. The wide-based Nifty was also trading with gains of 61.30 points at 10,798.90.&nbsp;

The rupee Thursday appreciated by 42 paise to 71.59 in early trade after the new RBI governor Shaktikanta Das took charge and stressed on the need of a consultative approach to tackle pressing economic issues.

The rupee Thursday appreciated by 42 paise to 71.59 in early trade after the new RBI governor Shaktikanta Das took charge and stressed on the need of a consultative approach to tackle pressing economic issues. Forex traders said a higher opening of domestic equity markets and weakening of the US dollar against some currencies overseas boosted the local unit. "The new RBI governor's first speech confirms our initial impression that he is likely to be more communicative and consultative in his approach, which is a positive," Japanese financial services major Nomura said in a research note. At the Interbank Foreign Exchange, the rupee opened on a strong note at 71.70 against the US dollar, then appreciated further to 71.59 showing a rise of 42 paise over it's previous closing. On Wednesday the rupee had declined by 16 paise to 72.01 per US dollar. Traders however said that significant foreign fund outflows and rising crude oil prices weighed on the domestic currency and capped the upmove. Foreign funds sold shares worth Rs 1,299.43 crore from the capital markets on a net basis Wednesday, while domestic institutional investors bought shares worth Rs 1,121.29 crore, provisional data showed. The global benchmark Brent crude was trading higher by 0.68 per cent at 60.56 per barrel. Meanwhile, domestic equity market opened on a higher note. The 30-share BSE benchmark Sensex, was trading at 35,985.34, up 206.27 points in early trade. The wide-based Nifty was also trading with gains of 61.30 points at 10,798.90.

Rupee rises 42 paise to 71.59 per US dollar in early trade

Social media question Shaktikanta Das, new RBI Governor qualification

Eminent economist and columnist <a href="http://www.wionews.com/india-news/rbi-governor-urjit-patel-resigns-cites-personal-reasons-182915">Surjit Bhalla on Tuesday said </a>that he had resigned as a part-time member of Economic Advisory Council to the Prime Minister(EAC-PM) on December 1.

"I resigned as part-time member of PMEAC on December 1," Bhalla said on social networking site Twitter.

The EAC- PM is headed by Niti Aayog member Bibek Debroy.&nbsp;

Economists Rathin Roy, Ashima Goyal and Shamika Ravi are other part-time members.

On Monday, RBI governor Urjit Patel had resigned citing personal reasons.&nbsp;

"On account of personal reasons, I have decided to step down from my current position (RBI Governor) effective immediately. It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years," Patel had said in a statement.&nbsp;

Patel is the first RBI governor to step down before completing his term since 1990. Patel's resignation came after weeks of tussle between the government and the RBI over issuing the central bank's reserve funds.

The government was of the opinion that the bank should hand over a larger share of them to the government.&nbsp;

Eminent economist and columnist Surjit Bhalla on Tuesday said that he had resigned as a part-time member of Economic Advisory Council to the Prime Minister(EAC-PM) on December 1.

Eminent economist and columnist Surjit Bhalla on Tuesday said that he had resigned as a part-time member of Economic Advisory Council to the Prime Minister(EAC-PM) on December 1. "I resigned as part-time member of PMEAC on December 1," Bhalla said on social networking site Twitter. The EAC- PM is headed by Niti Aayog member Bibek Debroy. Economists Rathin Roy, Ashima Goyal and Shamika Ravi are other part-time members. On Monday, RBI governor Urjit Patel had resigned citing personal reasons. "On account of personal reasons, I have decided to step down from my current position (RBI Governor) effective immediately. It has been my privilege and honour to serve in the Reserve Bank of India in various capacities over the years," Patel had said in a statement. Patel is the first RBI governor to step down before completing his term since 1990. Patel's resignation came after weeks of tussle between the government and the RBI over issuing the central bank's reserve funds. The government was of the opinion that the bank should hand over a larger share of them to the government.

Surjit Bhalla resigns as part-time member of Economic Advisory Council to PM Modi

The BSE Sensex opened <a href="http://www.wionews.com/india-news/rbi-governor-urjit-patel-resigns-cites-personal-reasons-182915">500 points down in early trade on </a>Tuesday after RBI governor Urjit Patel's resignation which was announced a day earlier. The NSE Nifty was also down losing 131 points.

The Sensex was at 34,458.86 with the Nifty at 10354.70.

The markets dived further as state polls leads began pouring in which showed the BJP trailing in big&nbsp;states in Rajasthan, Madhya Pradesh and Chhattisgarh.

On Monday, the Sensex had dived by 714 points on the back of "unfavourable" state exit poll results for the ruling BJP announced by various media agencies on Friday. It was the worst single-session fall for the benchmark BSE index since October 11.

The Sensex&nbsp;lost over 2 per cent, to close at 34,959.72 on Monday. Most stocks including realty, banking, metal, pharma, pharma and financial stocks ended in red.&nbsp;&nbsp; &nbsp;

The broader NSE Nifty too had fallen 205.25 points, or 1.92 per cent, to end at 10,488.45.

The rupee had also weakened against the US dollar in intra-day trade to hit 71.44 per due to fresh foreign fund outflows which further pulled down the markets.&nbsp;

The BSE Sensex opened 500 points down in early trade on Tuesday after RBI governor Urjit Patel's resignation which was announced a day earlier. The NSE Nifty was also down losing 131 points.

The BSE Sensex opened 500 points down in early trade on Tuesday after RBI governor Urjit Patel's resignation which was announced a day earlier. The NSE Nifty was also down losing 131 points. The Sensex was at 34,458.86 with the Nifty at 10354.70. The markets dived further as state polls leads began pouring in which showed the BJP trailing in big states in Rajasthan, Madhya Pradesh and Chhattisgarh. On Monday, the Sensex had dived by 714 points on the back of "unfavourable" state exit poll results for the ruling BJP announced by various media agencies on Friday. It was the worst single-session fall for the benchmark BSE index since October 11. The Sensex lost over 2 per cent, to close at 34,959.72 on Monday. Most stocks including realty, banking, metal, pharma, pharma and financial stocks ended in red. The broader NSE Nifty too had fallen 205.25 points, or 1.92 per cent, to end at 10,488.45. The rupee had also weakened against the US dollar in intra-day trade to hit 71.44 per due to fresh foreign fund outflows which further pulled down the markets.

Sensex dives 500 points over Urjit Patel's resignation, state poll trends

Indian stock, bond and foreign exchange markets are all likely to open lower on Tuesday after the shock resignation of the head of the Reserve Bank of India (RBI).

RBI Governor Urjit Patel said in a brief statement he had resigned for "personal reasons". He has clashed with the government over the central bank's independence, worrying investors in Indian markets, who will want to know who replaces him and the effect on monetary policy.

"Markets certainly will be concerned unless there is further clarification that comes through tonight," said R. Sivakumar, head of fixed income at Axis Mutual Fund.

Patel's departure comes at a critical time for Indian investors, just before a series of state elections on Tuesday, where the ruling Bharatiya Janata Party led by Narendra Modi may lose ground.

The central banker's resignation on Monday evening came after the majority of markets in India were closed, but futures contracts, which track the performance of asset classes outside of market hours, suggested significant declines were likely on Tuesday morning.

Indian rupee forwards tracking the performance of the currency against the dollar posted their biggest daily slump in more than five years on Monday.

The one-month contract was last quoted at 72.78 per dollar compared to a spot market rate of 71.35 per cent dollar.

Exchange-traded funds tracking Indian stock markets and listed in Europe fell by more than 5 per cent, suggesting India's stock market, which closed down by around 2 per cent, might fall by more than 3 per cent at the open on Tuesday.

The Swiss-listed Lyxor MSCI India UCITS ETF fell 5.5 per cent. Similar funds listed in Germany and France were down by around 4.5 per cent.

A 3.5 per cent decline for the MSCI India International index would be its biggest drop for more than two years.

Longer-term, the government will need to be cautious of outflows from overseas investors, according to Ajay Bagga, a stock market expert.

"A lot of communication will be needed to foreign institutional investors to give them confidence," he said.

Yields on India's benchmark 10-year government bonds, which move inversely to prices, rose to a high of 7.59 per cent after hours, according to quotes from some fixed income brokers in London, a rise of 1.6 per cent.

Indian stock, bond and foreign exchange markets are all likely to open lower on Tuesday after the shock resignation of the head of the Reserve Bank of India (RBI).

Indian stock, bond and foreign exchange markets are all likely to open lower on Tuesday after the shock resignation of the head of the Reserve Bank of India (RBI). RBI Governor Urjit Patel said in a brief statement he had resigned for "personal reasons". He has clashed with the government over the central bank's independence, worrying investors in Indian markets, who will want to know who replaces him and the effect on monetary policy. "Markets certainly will be concerned unless there is further clarification that comes through tonight," said R. Sivakumar, head of fixed income at Axis Mutual Fund. Patel's departure comes at a critical time for Indian investors, just before a series of state elections on Tuesday, where the ruling Bharatiya Janata Party led by Narendra Modi may lose ground. The central banker's resignation on Monday evening came after the majority of markets in India were closed, but futures contracts, which track the performance of asset classes outside of market hours, suggested significant declines were likely on Tuesday morning. Indian rupee forwards tracking the performance of the currency against the dollar posted their biggest daily slump in more than five years on Monday. The one-month contract was last quoted at 72.78 per dollar compared to a spot market rate of 71.35 per cent dollar. Exchange-traded funds tracking Indian stock markets and listed in Europe fell by more than 5 per cent, suggesting India's stock market, which closed down by around 2 per cent, might fall by more than 3 per cent at the open on Tuesday. The Swiss-listed Lyxor MSCI India UCITS ETF fell 5.5 per cent. Similar funds listed in Germany and France were down by around 4.5 per cent. A 3.5 per cent decline for the MSCI India International index would be its biggest drop for more than two years. Longer-term, the government will need to be cautious of outflows from overseas investors, according to Ajay Bagga, a stock market expert. "A lot of communication will be needed to foreign institutional investors to give them confidence," he said. Yields on India's benchmark 10-year government bonds, which move inversely to prices, rose to a high of 7.59 per cent after hours, according to quotes from some fixed income brokers in London, a rise of 1.6 per cent.

Markets likely to be rocked as RBI chief Urjit Patel quits

RSS ideologue and an independent director on RBI board S Gurumurthy Monday described the resignation of Urjit Patel as a setback to the convergence that the central bank and the government were reaching on contentious issues.

He termed Patel's resignation as "shock" and said he will be missed.

"Surprised at the news that RBI governor has resigned," he said in a tweet.&nbsp;

The November 19 board meeting of the RBI was held in "such cordial atmosphere" that the resignation comes as a "shock", Gurumurthy said.&nbsp;

He further stressed that all directors on the board said media had created a wrong perception, while inside it was totally different.&nbsp;

That makes the development even more surprising, the swadeshi ideologue said.

"I enjoyed several hours of personal discussions with him where we found large areas of agreement as well as mutually understandable disagreement. His resignation is indeed setback to the effects of the convergence of views that was taking place. We will miss him," he said in another tweet.

Patel, who faced the possibility of an unprecedented action from the government over differences on a variety of issues, Monday resigned from his job citing personal reasons.&nbsp;

RSS ideologue and an independent director on RBI board S Gurumurthy Monday described the resignation of Urjit Patel as a setback to the convergence that the central bank and the government were reaching on contentious issues.

RSS ideologue and an independent director on RBI board S Gurumurthy Monday described the resignation of Urjit Patel as a setback to the convergence that the central bank and the government were reaching on contentious issues. He termed Patel's resignation as "shock" and said he will be missed. "Surprised at the news that RBI governor has resigned," he said in a tweet. The November 19 board meeting of the RBI was held in "such cordial atmosphere" that the resignation comes as a "shock", Gurumurthy said. He further stressed that all directors on the board said media had created a wrong perception, while inside it was totally different. That makes the development even more surprising, the swadeshi ideologue said. "I enjoyed several hours of personal discussions with him where we found large areas of agreement as well as mutually understandable disagreement. His resignation is indeed setback to the effects of the convergence of views that was taking place. We will miss him," he said in another tweet. Patel, who faced the possibility of an unprecedented action from the government over differences on a variety of issues, Monday resigned from his job citing personal reasons.

'Surprised', says RBI Independent Director Gurumurthy on Patel's resignation

The Reserve Bank Monday denied speculation about deputy governor Viral Acharya also quitting his job, terming them as incorrect and baseless rumours.

"Reports of deputy governor Acharya also having quit are baseless and incorrect," an RBI spokesperson told PTI.

Within minutes of Governor Urjit Patel announcing his decision to quit, there have been reports of Acharya also following suit.

Acharya had made the October 26 speech on the need to preserve the autonomy of RBI, which got the soured central bank-government relationship out into the public domain.

In the over 90-minute long speech, Acharya, who is in charge of the monetary policy department, warned of the wrath of the markets if the autonomy of a central bank is compromised. Acharya had explicitly said he had the backing of Governor Patel for making the speech.&nbsp;

The Reserve Bank Monday denied speculation about deputy governor Viral Acharya also quitting his job, terming them as incorrect and baseless rumours. "Reports of deputy governor Acharya also having quit are baseless and incorrect," an RBI spokesperson told PTI.

The Reserve Bank Monday denied speculation about deputy governor Viral Acharya also quitting his job, terming them as incorrect and baseless rumours. "Reports of deputy governor Acharya also having quit are baseless and incorrect," an RBI spokesperson told PTI. Within minutes of Governor Urjit Patel announcing his decision to quit, there have been reports of Acharya also following suit. Acharya had made the October 26 speech on the need to preserve the autonomy of RBI, which got the soured central bank-government relationship out into the public domain. In the over 90-minute long speech, Acharya, who is in charge of the monetary policy department, warned of the wrath of the markets if the autonomy of a central bank is compromised. Acharya had explicitly said he had the backing of Governor Patel for making the speech.

RBI says no basis to reports about Acharya quitting

<a href="http://www.wionews.com/business-economy/indias-growth-very-solid-government-should-heed-rbis-message-imf-182761">India's growth very solid, </a><a href="http://www.wionews.com/business-economy/indias-growth-very-solid-government-should-heed-rbis-message-imf-182761">government</a><a href="http://www.wionews.com/business-economy/indias-growth-very-solid-government-should-heed-rbis-message-imf-182761"> should heed RBI's message: IMF</a>

It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry.&nbsp;

<a href="http://www.wionews.com/sports/ind-vs-aus-bumrah-strikes-again-to-dismiss-skipper-paine-australia-1887-after-86-overs-182780">IND vs AUS: Bumrah strikes again to dismiss skipper Paine, Australia 188/7 after 86 overs</a>

Jasprit Bumrah struck again to dismiss settled Australian skipper Tim Paine at 41, with India now being just three wickets away from winning the first Test match.&nbsp;

Paine was sent back minutes after the teams resumed after lunch.&nbsp;

<a href="http://www.wionews.com/world/i-cant-breathe-were-khashoggis-final-words-report-182759">'I can't breathe' were Khashoggi's final words: Report</a>

Jamal Khashoggi's final words were "I can't breathe," CNN said Sunday, citing a source who has read the transcript of an audio tape of the final moments before the journalist's murder.

<a href="http://www.wionews.com/world/armenia-acting-pm-nikol-pashinyan-wins-in-snap-parliamentary-elections-182767">Armenia acting PM Nikol Pashinyan wins in snap parliamentary elections</a>

The electoral bloc of Armenia's acting prime minister Nikol Pashinyan won a landslide victory in Sunday's snap parliamentary elections, which were triggered by the reformist leader seeking to cement his political authority in the post-Soviet country.

<a href="http://www.wionews.com/world/thousands-protest-through-london-in-support-of-brexit-ahead-of-crucial-vote-182758">Thousands protest through London in support of Brexit ahead of crucial</a><a href="http://www.wionews.com/world/thousands-protest-through-london-in-support-of-brexit-ahead-of-crucial-vote-182758"> vote</a>

Ahead of a crucial vote on Britain's divorce deal with the European Union (EU), thousands of protesters marched through London in support of Brexit on Sunday amid tight security measures in place by Scotland Yard.

India's growth very solid, government should heed RBI's message: IMF It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry.

India's growth very solid, government should heed RBI's message: IMF It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry. IND vs AUS: Bumrah strikes again to dismiss skipper Paine, Australia 188/7 after 86 overs Jasprit Bumrah struck again to dismiss settled Australian skipper Tim Paine at 41, with India now being just three wickets away from winning the first Test match. Paine was sent back minutes after the teams resumed after lunch. 'I can't breathe' were Khashoggi's final words: Report Jamal Khashoggi's final words were "I can't breathe," CNN said Sunday, citing a source who has read the transcript of an audio tape of the final moments before the journalist's murder. Armenia acting PM Nikol Pashinyan wins in snap parliamentary elections The electoral bloc of Armenia's acting prime minister Nikol Pashinyan won a landslide victory in Sunday's snap parliamentary elections, which were triggered by the reformist leader seeking to cement his political authority in the post-Soviet country. Thousands protest through London in support of Brexit ahead of crucial vote Ahead of a crucial vote on Britain's divorce deal with the European Union (EU), thousands of protesters marched through London in support of Brexit on Sunday amid tight security measures in place by Scotland Yard.

PM Modi, Arun Jaitley hail outgoing RBI governor Urjit Patel

It is important for the Indian <a href="http://www.wionews.com/business-economy/rbi-to-pump-in-additional-liquidity-of-rs-40000-crore-in-december-179820">government to heed the RBI's message</a> on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry.&nbsp;

Addressing a group of journalists here, he also said the <a href="http://www.wionews.com/india-news/govt-does-not-need-extra-funds-from-rbi-to-meet-fiscal-deficit-target-arun-jaitley-179162">International Monetary Fund does not</a> want politicians "manipulating" central banks for political ends.

"There is debate over whether it's better for financial stability to be the remit of the central bank or an independent regulator...The UK in 1997, split them, then put them back together again. I'm not going to take a position on that...But I think...The central bank does have to be intimately concerned with financial stability to some degree and with the payment system," he said, responding to a specific question on the recent developments in India regarding the RBI and the government.

"We need to think about what is the best institutional framework in which financial policy can be set with regard to long-term stability of the economy, not just to performance over political horizon," Obstfeld said.&nbsp;

"Well, I think they (the RBI and the Indian government) have reached an agreement on how to proceed. I think their (RBI) message that financial stability is important is correct. And it is important for the government to heed that," he added.

Responding to a series of questions on the attempt in certain countries like the US, India, Argentina and Turkey to curb independence of central banks, Obstfeld said central banks' role as a financial regulator is critical.

Central banks have "much greater power than you thought". They are fundamentally involved in financial stability policy, in fiscal policy, he said.&nbsp;

Obstfeld said if one looks at the record, the decisions taken by central banks worldwide did stabilise the economy by avoiding much worse losses in output and employment.

However, at the same time, he said, their moves also raised questions of transparency and accountability.&nbsp;

"So, it's not a shock that people raise these questions and it does create a challenge for central banks to be more transparent and to communicate more effectively with a broader public about what they are about and what they are doing," Obstfeld said.

If the central bank cannot communicate more effectively about what it is doing, then there is a possibility of political manipulation where politicians attack the central bank and undermine it, he said.&nbsp;

"Clearly, we don't want politicians manipulating the central bank for political ends," Obstfeld added.&nbsp;

After serving as IMF's chief economist for more than three years, 66-year-old Obstfeld is set to retire this month-end and will return to the University of California, Berkley. Gita Gopinath, Indian American economist from the Harvard University, would replace him from the first week of January. &nbsp;

India's growth has been "very solid" over the past four years, IMF's chief economist Maurice Obstfeld added, praising the fundamental economic reforms like the GST and the Insolvency and Bankruptcy Code carried out by the government.

"India under the government of Prime Minister Narendra Modi has carried out some really fundamental reforms. These include the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code...A lot of what they have done on financial inclusion has been really important," Obstfeld told a group of journalists here.

He said one risk that has become much more evident in the last few years has been non-bank finance, usually called shadow banking. 
&nbsp; 
"There is a big challenge of stricter, oversight," the economist said.

Noting that there has long been a legacy of corporate debt associated with bad infrastructure projects in India, Obstfeld said it has been very concentrated in banking system.&nbsp;

"But as the government is trying to better oversee the banking system, these loans have migrated to shadow banking and that is an area where more needs to be done to contain financial pressures, which we are beginning to see in India," he said.

It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry.

It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry. Addressing a group of journalists here, he also said the International Monetary Fund does not want politicians "manipulating" central banks for political ends. "There is debate over whether it's better for financial stability to be the remit of the central bank or an independent regulator...The UK in 1997, split them, then put them back together again. I'm not going to take a position on that...But I think...The central bank does have to be intimately concerned with financial stability to some degree and with the payment system," he said, responding to a specific question on the recent developments in India regarding the RBI and the government. "We need to think about what is the best institutional framework in which financial policy can be set with regard to long-term stability of the economy, not just to performance over political horizon," Obstfeld said. "Well, I think they (the RBI and the Indian government) have reached an agreement on how to proceed. I think their (RBI) message that financial stability is important is correct. And it is important for the government to heed that," he added. Responding to a series of questions on the attempt in certain countries like the US, India, Argentina and Turkey to curb independence of central banks, Obstfeld said central banks' role as a financial regulator is critical. Central banks have "much greater power than you thought". They are fundamentally involved in financial stability policy, in fiscal policy, he said. Obstfeld said if one looks at the record, the decisions taken by central banks worldwide did stabilise the economy by avoiding much worse losses in output and employment. However, at the same time, he said, their moves also raised questions of transparency and accountability. "So, it's not a shock that people raise these questions and it does create a challenge for central banks to be more transparent and to communicate more effectively with a broader public about what they are about and what they are doing," Obstfeld said. If the central bank cannot communicate more effectively about what it is doing, then there is a possibility of political manipulation where politicians attack the central bank and undermine it, he said. "Clearly, we don't want politicians manipulating the central bank for political ends," Obstfeld added. After serving as IMF's chief economist for more than three years, 66-year-old Obstfeld is set to retire this month-end and will return to the University of California, Berkley. Gita Gopinath, Indian American economist from the Harvard University, would replace him from the first week of January. India's growth has been "very solid" over the past four years, IMF's chief economist Maurice Obstfeld added, praising the fundamental economic reforms like the GST and the Insolvency and Bankruptcy Code carried out by the government. "India under the government of Prime Minister Narendra Modi has carried out some really fundamental reforms. These include the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code...A lot of what they have done on financial inclusion has been really important," Obstfeld told a group of journalists here. He said one risk that has become much more evident in the last few years has been non-bank finance, usually called shadow banking. "There is a big challenge of stricter, oversight," the economist said. Noting that there has long been a legacy of corporate debt associated with bad infrastructure projects in India, Obstfeld said it has been very concentrated in banking system. "But as the government is trying to better oversee the banking system, these loans have migrated to shadow banking and that is an area where more needs to be done to contain financial pressures, which we are beginning to see in India," he said.

India's growth very solid, government should heed RBI's message: IMF

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