The Reserve Bank of India is widely expected to cut interest rates for the first time in nearly five years. This is according to a Reuters survey of economists and analysts. Inflation in India has declined; however, it still remains above the RBI's medium-term target of four percent. Still, the expected rate cut is to revive the flagging economy, which has seen growth hit a four-year low.

India's RBI to cut rates  for the first time since 2020

The Reserve Bank of India is widely expected to cut interest rates for the first time in nearly five years. This is according to a Reuters survey of economists and analysts.&nbsp;Inflation in India has declined; however, it still remains above the RBI's medium-term target of four per cent.
Still, the expected rate cut is to revive the flagging economy, which has seen growth hit a four-year low. This move will come under new governor Sanjay Malhotra's first monetary policy review on Friday.
<h2>After-tax relief, rate cuts in India soon?</h2>
The RBI's policy decision comes on the heels of the country's budget, which slashed tax rates to boost growth and spending.&nbsp;Analysts also cite the government's plan to tighten finances and deficit for the expected RBI move.
Shilan Shah, deputy chief emerging markets economist at Capital Economics, told Reuters, "With the finance ministry still keeping the overall fiscal deficit in check, there is scope for the RBI to do more to boost the economy." He added, &ldquo;This strengthens our conviction that the bank &ndash; under new leadership - will begin easing monetary policy...on Friday."
Inflation has stubbornly remained above the rbi's target for most of the last year despite the slowdown in growth.&nbsp;The rupee has also been weakening to repeated record lows despite the RBI selling dollars to stabilise the currency.
Still, some economists are worried about inflation and are pencilling in a no-change prediction for Friday. However, the RBI's recent moves show a rate cut is coming.&nbsp;The central bank announced a host of measures in late January which together would infuse 1.5 trillion rupees or 17.22 billion dollars into the banking system.
However, investors are still hopeful for more steps, including another cash reserve ratio cut on Friday.
(With the inputs from the agencies)

Business & Economy: The Reserve Bank of India is expected to cut interest rates for the first time in five years. This will come under new governor Sanjay Malhotra's first monetary policy review on Friday.

The Reserve Bank of India is widely expected to cut interest rates for the first time in nearly five years. This is according to a Reuters survey of economists and analysts. Inflation in India has declined; however, it still remains above the RBI's medium-term target of four per cent. Still, the expected rate cut is to revive the flagging economy, which has seen growth hit a four-year low. This move will come under new governor Sanjay Malhotra's first monetary policy review on Friday. After-tax relief, rate cuts in India soon? The RBI's policy decision comes on the heels of the country's budget, which slashed tax rates to boost growth and spending. Analysts also cite the government's plan to tighten finances and deficit for the expected RBI move. Shilan Shah, deputy chief emerging markets economist at Capital Economics, told Reuters, "With the finance ministry still keeping the overall fiscal deficit in check, there is scope for the RBI to do more to boost the economy." He added, “This strengthens our conviction that the bank – under new leadership - will begin easing monetary policy...on Friday." Inflation has stubbornly remained above the rbi's target for most of the last year despite the slowdown in growth. The rupee has also been weakening to repeated record lows despite the RBI selling dollars to stabilise the currency. Still, some economists are worried about inflation and are pencilling in a no-change prediction for Friday. However, the RBI's recent moves show a rate cut is coming. The central bank announced a host of measures in late January which together would infuse 1.5 trillion rupees or 17.22 billion dollars into the banking system. However, investors are still hopeful for more steps, including another cash reserve ratio cut on Friday. (With the inputs from the agencies)

India's RBI seen cutting rates for the first time since 2020

India's new central bank governor hints at a readiness to let the rupee float more freely in line with regional counterparts while still stepping in to limit extreme moves. The rupee has weakened significantly over the last year, hitting fresh record lows repeatedly. The currency hit a new all-time low of 86.62 against the dollar on Tuesday.

RBI Governor Signals More Flexible Rupee

The Reserve Bank of India (RBI) received a threatening email in Russian language on Thursday (Dec 12), calling for ‘blowing up’ its headquarters in Mumbai. The email was sent to the official email ID of RBI Governor Sanjay Malhotra. Mumbai police later filed an FIR in the case against the sender and have launched an investigation.

A Mumbai police officer later said, “A threatening email was received on the official website of the Reserve Bank of India. The email was in Russian and warned to blow up the bank. A case has been registered against an unknown accused in Mata Ramabai Marg (MRA Marg) police station. An investigation into the matter is underway".

Also read:&nbsp;<a data-ved="2ahUKEwjur5_7iaSKAxXliK8BHUDhHLQQxfQBKAB6BAgHEAE" href="https://www.wionews.com/business-economy/sanjay-malhotra-replaces-shaktikanta-das-as-the-new-rbi-chief-782845" jsname="YKoRaf" ping="/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.wionews.com/business-economy/sanjay-malhotra-replaces-shaktikanta-das-as-the-new-rbi-chief-782845&amp;ved=2ahUKEwjur5_7iaSKAxXliK8BHUDhHLQQxfQBKAB6BAgHEAE">New RBI governor faces inflation and growth balancing act</a>

According to media reports, investigators are checking whether the sender used a Virtual Private Network (VPN) to send the email, which was received just days after Malhotra took charge as the 26th governor of the RBI, replacing Shaktikanta Das.

Also read:&nbsp;<a data-ved="2ahUKEwjur5_7iaSKAxXliK8BHUDhHLQQxfQBKAB6BAgLEAE" href="https://www.wionews.com/business-economy/sanjay-malhotra-appointed-as-next-governor-of-indias-central-bank-rbi-782696" jsname="YKoRaf" ping="/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.wionews.com/business-economy/sanjay-malhotra-appointed-as-next-governor-of-indias-central-bank-rbi-782696&amp;ved=2ahUKEwjur5_7iaSKAxXliK8BHUDhHLQQxfQBKAB6BAgLEAE">Revenue Secretary Sanjay Malhotra appointed governor of India`s central bank RBI</a>

This comes after the RBI’s Mumbai customer care centre last month received a similar threat call from a man claiming to be “the CEO” of Pak-based terror outfit Lashkar-e-Taiba. The matter was immediately brought to Mumbai police’s attention. Nothing suspicious was found following thorough checks and searches.

(With inputs from agencies)

The Reserve Bank of India (RBI) received a threatening email in Russian language on Thursday (Dec 12), calling for ‘blowing up’ its headquarters in Mumbai. The email was sent to the official email ID of RBI Governor Sanjay Malhotra.

The Reserve Bank of India (RBI) received a threatening email in Russian language on Thursday (Dec 12), calling for ‘blowing up’ its headquarters in Mumbai. The email was sent to the official email ID of RBI Governor Sanjay Malhotra. Mumbai police later filed an FIR in the case against the sender and have launched an investigation. A Mumbai police officer later said, “A threatening email was received on the official website of the Reserve Bank of India. The email was in Russian and warned to blow up the bank. A case has been registered against an unknown accused in Mata Ramabai Marg (MRA Marg) police station. An investigation into the matter is underway". Also read: New RBI governor faces inflation and growth balancing act According to media reports, investigators are checking whether the sender used a Virtual Private Network (VPN) to send the email, which was received just days after Malhotra took charge as the 26th governor of the RBI, replacing Shaktikanta Das. Also read: Revenue Secretary Sanjay Malhotra appointed governor of India`s central bank RBI This comes after the RBI’s Mumbai customer care centre last month received a similar threat call from a man claiming to be “the CEO” of Pak-based terror outfit Lashkar-e-Taiba. The matter was immediately brought to Mumbai police’s attention. Nothing suspicious was found following thorough checks and searches. (With inputs from agencies)

‘Will blow you up,’ RBI’s Mumbai headquarters receives bomb threat in Russian language

Revenue secretary Sanjay Malhotra steps in to replace Shaktikanta das as the new governor of the Reserve Bank of India. Malhotra is an IAS officer of the 1990 Rajasthan cadre with a career spanning over 33 years. His expertise includes finance and taxation. Watch in for more details!

Sanjay Malhotra Replaces Shaktikanta Das As New RBI Chief

SBI forecasted India's GDP growth at 6.3 pc, lower than RBIs projection of 6.6 pc for FY25 in its latest report. Watch for more details!

Urban Wages And Spending Are Slumping in India

The Reserve Bank of India, in a fine balancing act between boosting growth and reigning in inflation, came up with several measures on Friday. This comes amid high inflation and a shocking slowdown in the economic growth of the country in the previous quarter.&nbsp;

The RBI kept its key repo rate unchanged for the eleventh consecutive time at 6.5 per cent. The central bank, though, cut the Cash Reserve Ratio, or the CRR, which is a percentage of money parked with the RBI that banks lend.&nbsp;

This was the first cut to CRR since April 2020 and was made to infuse more liquidity into the system through bank lending. The raised its inflation forecast for this year to 4.8 per cent from 4.5 per cent previously. At the same time, the central bank cut its growth projections 6.6 per cent from the earlier 7.2 per cent.&nbsp;

However, despite lowering the growth outlook, RBI governor Shaktikanta Das said the slowdown had already bottomed out in the September quarter. Das said the near-term inflation had turned adverse since October, citing high food price pressures. As such, the RBI maintained its neutral policy stance again.&nbsp;

Adhil Shetty, Co-Founder and CEO of Bankbazaar.com, calling RBI's decision a fine job of balancing inflation controls with economic growth, said, "The RBI cutting the CRR by 50 BPS for the first time since April 2020 signals the direction of monetary policy. And while key policy rates are unchanged for the 11th straight time, the stars are aligning for a potential rate cut in February. Shetty added, "We still need to look at the global trends as inflation remains volatile. The RBI has done a fine job of balancing inflation controls with economic growth."&nbsp;

In other measures, the RBI increased the deposit ceiling for non-resident Indians to support a record-weak rupee. Despite the Rupee's fall to repeated all-time lows, Das said the currency remains stable compared to the country's emerging market peers against a resurgent Dollar.&nbsp;

To further develop the interest rate derivatives market in India and improve the credibility of interest rate benchmarks, the reserve bank proposes to introduce a new benchmark - the Secured Overnight Rupee Rate (SORR). This is based on all secured money market transactions.&nbsp;

RBI governor Das also said central banks were put to test amid geopolitical tensions and financial market volatility over the last year. However, he said the health of the financial sector was at its best, with the financial parameters of banks and NBFCS pointing to strength and resilience.&nbsp;

Separately, the governor announced that the RBI will set up a committee of experts to suggest a framework for the responsible and ethical use of artificial intelligence.&nbsp;

The Reserve Bank of India, in a fine balancing act between boosting growth and reigning in inflation, came up with several measures on Friday. This comes amid high inflation and a shocking slowdown in the economic growth of the country in the previous quarter.

The Reserve Bank of India, in a fine balancing act between boosting growth and reigning in inflation, came up with several measures on Friday. This comes amid high inflation and a shocking slowdown in the economic growth of the country in the previous quarter. The RBI kept its key repo rate unchanged for the eleventh consecutive time at 6.5 per cent. The central bank, though, cut the Cash Reserve Ratio, or the CRR, which is a percentage of money parked with the RBI that banks lend. This was the first cut to CRR since April 2020 and was made to infuse more liquidity into the system through bank lending. The raised its inflation forecast for this year to 4.8 per cent from 4.5 per cent previously. At the same time, the central bank cut its growth projections 6.6 per cent from the earlier 7.2 per cent. However, despite lowering the growth outlook, RBI governor Shaktikanta Das said the slowdown had already bottomed out in the September quarter. Das said the near-term inflation had turned adverse since October, citing high food price pressures. As such, the RBI maintained its neutral policy stance again. Adhil Shetty, Co-Founder and CEO of Bankbazaar.com, calling RBI's decision a fine job of balancing inflation controls with economic growth, said, "The RBI cutting the CRR by 50 BPS for the first time since April 2020 signals the direction of monetary policy. And while key policy rates are unchanged for the 11th straight time, the stars are aligning for a potential rate cut in February. Shetty added, "We still need to look at the global trends as inflation remains volatile. The RBI has done a fine job of balancing inflation controls with economic growth." In other measures, the RBI increased the deposit ceiling for non-resident Indians to support a record-weak rupee. Despite the Rupee's fall to repeated all-time lows, Das said the currency remains stable compared to the country's emerging market peers against a resurgent Dollar. To further develop the interest rate derivatives market in India and improve the credibility of interest rate benchmarks, the reserve bank proposes to introduce a new benchmark - the Secured Overnight Rupee Rate (SORR). This is based on all secured money market transactions. RBI governor Das also said central banks were put to test amid geopolitical tensions and financial market volatility over the last year. However, he said the health of the financial sector was at its best, with the financial parameters of banks and NBFCS pointing to strength and resilience. Separately, the governor announced that the RBI will set up a committee of experts to suggest a framework for the responsible and ethical use of artificial intelligence.

RBI keeps key policy rate unchanged for the 11th consecutive time

Shaktikanta Das, governor of India's central bank, is under increasing pressure due to one of the country's biggest GDP growth misses in recent memory. 
He has not received an extension despite his tenure ending next week.

After data showed that the Indian economy grew by 5.4 per cent from July to September, a seven-quarter low far lower than the Reserve Bank of India's 7 per cent forecast, economists have begun to speculate about Das's future. 
 
There has been a lot of speculation that Das may stay on as governor for another six years however, the government has been mum on the matter despite mounting demands for an interest rate cut. 
 
Following nearly two years of steady growth, the majority of 43 experts in a Bloomberg survey anticipate that the central bank will keep its benchmark rate at 6.5 per cent on Friday. 
 
October's inflation rate of 6.21 per cent in India hit a 14-month high, driven mostly by skyrocketing food costs. 
 
This rate is higher than the government-mandated objective of 4 per cent inflation, plus or minus two percentage points.

Radhika Piplani, an economist with Dam Capital Advisors, said the slowdown should be a "wake-up call for the RBI. The next rate decision is live for a policy action and will be keenly watched for reasons behind the GDP miss." 
 
she added, "If the central bank doesn't ease now, it could be forced to compensate with a larger-than-expected cut in February."

The slowdown in growth has heightened the debate of whether the central bank is providing sufficient stimulus to the world's fastest-growing major economy. Especially as core inflation, which does not include energy and food price fluctuations, is low. 
 
Both Nirmala Sitharaman, the minister of finance, and Piyush Goyal, the minister of commerce, have recently demanded lower interest rates. But Das ruled out rate cuts last month and had said lowering rates would be dangerous.

(With inputs from the agencies)

Shaktikanta Das, governor of India's central bank, is under increasing pressure due to one of the country's biggest GDP growth misses in recent memory. He has not received an extension despite his tenure ending next week.

Shaktikanta Das, governor of India's central bank, is under increasing pressure due to one of the country's biggest GDP growth misses in recent memory. He has not received an extension despite his tenure ending next week. After data showed that the Indian economy grew by 5.4 per cent from July to September, a seven-quarter low far lower than the Reserve Bank of India's 7 per cent forecast, economists have begun to speculate about Das's future. There has been a lot of speculation that Das may stay on as governor for another six years however, the government has been mum on the matter despite mounting demands for an interest rate cut. Following nearly two years of steady growth, the majority of 43 experts in a Bloomberg survey anticipate that the central bank will keep its benchmark rate at 6.5 per cent on Friday. October's inflation rate of 6.21 per cent in India hit a 14-month high, driven mostly by skyrocketing food costs. This rate is higher than the government-mandated objective of 4 per cent inflation, plus or minus two percentage points. Radhika Piplani, an economist with Dam Capital Advisors, said the slowdown should be a "wake-up call for the RBI. The next rate decision is live for a policy action and will be keenly watched for reasons behind the GDP miss." she added, "If the central bank doesn't ease now, it could be forced to compensate with a larger-than-expected cut in February." The slowdown in growth has heightened the debate of whether the central bank is providing sufficient stimulus to the world's fastest-growing major economy. Especially as core inflation, which does not include energy and food price fluctuations, is low. Both Nirmala Sitharaman, the minister of finance, and Piyush Goyal, the minister of commerce, have recently demanded lower interest rates. But Das ruled out rate cuts last month and had said lowering rates would be dangerous. (With inputs from the agencies)

Indian central bank governor Shaktikanta Das's future under scanner after GDP miss

India's finance minister, Nirmala Sitharaman, called for lower interest rates and downplayed any dangers to economic growth.

The Reserve Bank of India has kept rates unchanged for over two years.

Sitharaman follows trade minister Piyush Goyal, who last week argued for a cut in interest rates, stating that economic growth required further stimulus.

The RBI governor, Shaktikanta Das, chose not to address Goyal's comments after the central bank kept rates steady for the tenth straight meeting in October. 
According to Das, a rate cut right now would be "Very risky."

The governor added that easing will only be considered if inflation reaches the central bank's target of 4 per cent.

The RBI's next policy decision is scheduled for December 6th.

Speaking at an event, Sitharaman said, given India's growth requirements, there are "Many different voices saying the cost of borrowing is really very stressful." She added, "Bank interest rates will have to be far more affordable."

For the current fiscal year, which ends in March 2025, the RBI projects growth of 7.2 per cent.

However, some analysts, notably those at investment banks like Goldman Sachs, have projected growth as low as 6.5 per cent.

Worries that consumers are cutting back on spending are fuelled by the lacklustre sales of all goods, from soaps to vehicles.

However, downplaying the growth risks, Sitharaman said the government is keeping a careful eye on the economy and is ready to take "All necessary measures" to increase economic activity.

She said, "Let me assure you the government is fully aware of the challenges posed by both domestic and global factors." The finance minister, citing strong economic fundamentals added, "There is no cause for undue concern."

India's finance minister, Nirmala Sitharaman, called for lower interest rates and downplayed any dangers to economic growth. The Reserve Bank of India has kept rates unchanged for over two years.

India's finance minister, Nirmala Sitharaman, called for lower interest rates and downplayed any dangers to economic growth. The Reserve Bank of India has kept rates unchanged for over two years. Sitharaman follows trade minister Piyush Goyal, who last week argued for a cut in interest rates, stating that economic growth required further stimulus. The RBI governor, Shaktikanta Das, chose not to address Goyal's comments after the central bank kept rates steady for the tenth straight meeting in October. According to Das, a rate cut right now would be "Very risky." The governor added that easing will only be considered if inflation reaches the central bank's target of 4 per cent. The RBI's next policy decision is scheduled for December 6th. Speaking at an event, Sitharaman said, given India's growth requirements, there are "Many different voices saying the cost of borrowing is really very stressful." She added, "Bank interest rates will have to be far more affordable." For the current fiscal year, which ends in March 2025, the RBI projects growth of 7.2 per cent. However, some analysts, notably those at investment banks like Goldman Sachs, have projected growth as low as 6.5 per cent. Worries that consumers are cutting back on spending are fuelled by the lacklustre sales of all goods, from soaps to vehicles. However, downplaying the growth risks, Sitharaman said the government is keeping a careful eye on the economy and is ready to take "All necessary measures" to increase economic activity. She said, "Let me assure you the government is fully aware of the challenges posed by both domestic and global factors." The finance minister, citing strong economic fundamentals added, "There is no cause for undue concern."

India's Finance Minister Nirmala Sitharaman calls for lower interest rates

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Nirmala Sitharaman’s views on India's economic outlook differ from the RBI’s stance on interest rates, highlighting a divergence in policy approaches.

Nirmala Sitharaman's Views Contrast With RBI's Rate Path Outlook

Reserve Bank of India (RBI) Governor Shaktikanta Das offered a cautiously optimistic view of the Indian economy amidst mixed signals surrounding festival season demand. He emphasised that the positives currently outweigh the negatives, highlighting that the economy is on a stable growth path as detailed in a report by CNBC TV18.

In a recent interview with CNBC TV18 in Washington DC, Das acknowledged some slowdown in specific sectors but asserted that the agricultural sector is thriving this year, largely due to favorable monsoon conditions. He expressed confidence in the upcoming rabi crop and noted a revival in rural demand, signalling a positive shift for the economy.

Das pointed out that several key economic indicators are showing strong growth, further supporting the notion that the economy is performing well. However, he also stressed the importance of being aware of external risks, including geopolitical tensions, geo-economic fragmentation, and severe weather events that could affect external demand. He stated, “By and large, India’s economic growth has always been sustained by domestic demand and investment, both of which remain robust.”

Growth projections of RBI<o:p></o:p>

Looking ahead, the RBI projects India’s economy to grow by 7.2 per cent in FY25, with quarterly growth rates anticipated at 7 per cent for Q2, 7.4 per cent for Q3, and 7.4 per cent for Q4. Das noted a favourable balance between growth and inflation, which allowed the RBI to adopt a neutral policy stance in its recent monetary meeting. This flexibility will enable the RBI to closely monitor incoming data and adjust its policies as needed.

Das highlighted that inflation appears to be moderating, with further reductions expected as the year progresses. However, he cautioned that risks to the inflation outlook remain, stressing the need for careful consideration before making any premature policy changes.

Regarding interest rates, Das indicated that any potential cuts would hinge on forthcoming data and inflation trends. He mentioned that household inflation expectations have been gradually decreasing over the past two years, indicating a shift in sentiment.

Views on the Banking sector<o:p></o:p>

On banking sector stability, Das dismissed concerns of systemic risks, noting that both the banking and non-banking finance sectors remain robust. However, he acknowledged issues in the microfinance sector, where the RBI has found that some non-banking financial companies (NBFCs) were charging excessively high interest rates, prompting regulatory action.

The RBI has recently barred four NBFCs from issuing loans due to exorbitant practices, underlining its commitment to consumer protection.

Finally, Das mentioned ongoing discussions about the liquidity coverage ratio (LCR) guidelines in light of the growing prevalence of digital banking. He indicated that the RBI is considering tightening LCR norms to mitigate risks associated with rapid withdrawals, reflecting the evolving landscape of banking in the digital age. Feedback from the banking sector will be taken into account as these measures are developed.

Reserve Bank of India (RBI) Governor Shaktikanta Das offered a cautiously optimistic view of the Indian economy amidst mixed signals surrounding festival season demand.

Reserve Bank of India (RBI) Governor Shaktikanta Das offered a cautiously optimistic view of the Indian economy amidst mixed signals surrounding festival season demand. He emphasised that the positives currently outweigh the negatives, highlighting that the economy is on a stable growth path as detailed in a report by CNBC TV18. In a recent interview with CNBC TV18 in Washington DC, Das acknowledged some slowdown in specific sectors but asserted that the agricultural sector is thriving this year, largely due to favorable monsoon conditions. He expressed confidence in the upcoming rabi crop and noted a revival in rural demand, signalling a positive shift for the economy. Das pointed out that several key economic indicators are showing strong growth, further supporting the notion that the economy is performing well. However, he also stressed the importance of being aware of external risks, including geopolitical tensions, geo-economic fragmentation, and severe weather events that could affect external demand. He stated, “By and large, India’s economic growth has always been sustained by domestic demand and investment, both of which remain robust.” Growth projections of RBI Looking ahead, the RBI projects India’s economy to grow by 7.2 per cent in FY25, with quarterly growth rates anticipated at 7 per cent for Q2, 7.4 per cent for Q3, and 7.4 per cent for Q4. Das noted a favourable balance between growth and inflation, which allowed the RBI to adopt a neutral policy stance in its recent monetary meeting. This flexibility will enable the RBI to closely monitor incoming data and adjust its policies as needed. Das highlighted that inflation appears to be moderating, with further reductions expected as the year progresses. However, he cautioned that risks to the inflation outlook remain, stressing the need for careful consideration before making any premature policy changes. Regarding interest rates, Das indicated that any potential cuts would hinge on forthcoming data and inflation trends. He mentioned that household inflation expectations have been gradually decreasing over the past two years, indicating a shift in sentiment. Views on the Banking sector On banking sector stability, Das dismissed concerns of systemic risks, noting that both the banking and non-banking finance sectors remain robust. However, he acknowledged issues in the microfinance sector, where the RBI has found that some non-banking financial companies (NBFCs) were charging excessively high interest rates, prompting regulatory action. The RBI has recently barred four NBFCs from issuing loans due to exorbitant practices, underlining its commitment to consumer protection. Finally, Das mentioned ongoing discussions about the liquidity coverage ratio (LCR) guidelines in light of the growing prevalence of digital banking. He indicated that the RBI is considering tightening LCR norms to mitigate risks associated with rapid withdrawals, reflecting the evolving landscape of banking in the digital age. Feedback from the banking sector will be taken into account as these measures are developed.

Optimism Prevails: RBI Governor Shaktikanta Das on India's economic outlook

India's growth outlook is supported by robust domestic engines and private investment showing some encouraging signs despite geopolitical tensions, the Reserve Bank of India's (RBI’s) October bulletin said as detailed in a report by the Press Trust of India.

The global economy remained resilient in the first half of 2024, with declining inflation supporting household spending. Stable growth momentum amid monetary policy easing is becoming the prevailing theme across most economies, according to an article on 'State of the Economy' published in the bulletin that was released on October 21.

The article further stated that as per its economic activity index (EAI), the gross domestic product (GDP) growth is projected at 6.8 per cent in the July-September 2024 quarter, lower than the RBI’s projection of 7 per cent for the same period.

Whereas, in the quarter ended June 2024, the real GDP growth slipped to a five-quarter low of 6.7 per cent due to slower growth in agriculture, government spending and services. "In spite of geopolitical tensions, India’s growth outlook is supported by robust domestic engines," it said, the PTI report detailed&nbsp;further.

It also noted that some high-frequency indicators have, however, shown a slackening of momentum in the second quarter of 2024-25, partly attributable to factors like unusually heavy rains in August and September.

"Looking ahead, private investment is showing some encouraging signs in terms of lead indicators while consumption spending is shaping up for a festival season revival," said the article authored by a team led by RBI deputy governor Michael Debabrata Patra.

After remaining below target for two consecutive months, inflation surged in September, as an adverse statistical base effect was compounded by a resurgence in food price momentum. The central bank said the views expressed in the Bulletin article are of the authors and do not represent the views of the Reserve Bank of India.

Focus on the private sector<o:p></o:p>

“The stage is set for the private sector to deploy capital and invest in growth, build capacities, create employment and improve efficiencies,” the article stated.

It further said that with the financial sector ready to intermediate resources for productive investment, buffered by healthy balance sheets, and the government’s continued thrust on capex, the investment outlook appears bright.<o:p></o:p>

“The ongoing strengthening of global trade could provide a fillip to external demand for India’s exports although escalation of geopolitical tensions remains a potential threat,” the article also stated.

India's growth outlook is supported by robust domestic engines and private investment showing some encouraging signs despite geopolitical tensions, the Reserve Bank of India's (RBI’s) October bulletin said as detailed in a report by the Press Trust of India.

India's growth outlook is supported by robust domestic engines and private investment showing some encouraging signs despite geopolitical tensions, the Reserve Bank of India's (RBI’s) October bulletin said as detailed in a report by the Press Trust of India. The global economy remained resilient in the first half of 2024, with declining inflation supporting household spending. Stable growth momentum amid monetary policy easing is becoming the prevailing theme across most economies, according to an article on 'State of the Economy' published in the bulletin that was released on October 21. The article further stated that as per its economic activity index (EAI), the gross domestic product (GDP) growth is projected at 6.8 per cent in the July-September 2024 quarter, lower than the RBI’s projection of 7 per cent for the same period. Whereas, in the quarter ended June 2024, the real GDP growth slipped to a five-quarter low of 6.7 per cent due to slower growth in agriculture, government spending and services. "In spite of geopolitical tensions, India’s growth outlook is supported by robust domestic engines," it said, the PTI report detailed further. It also noted that some high-frequency indicators have, however, shown a slackening of momentum in the second quarter of 2024-25, partly attributable to factors like unusually heavy rains in August and September. "Looking ahead, private investment is showing some encouraging signs in terms of lead indicators while consumption spending is shaping up for a festival season revival," said the article authored by a team led by RBI deputy governor Michael Debabrata Patra. After remaining below target for two consecutive months, inflation surged in September, as an adverse statistical base effect was compounded by a resurgence in food price momentum. The central bank said the views expressed in the Bulletin article are of the authors and do not represent the views of the Reserve Bank of India. Focus on the private sector “The stage is set for the private sector to deploy capital and invest in growth, build capacities, create employment and improve efficiencies,” the article stated. It further said that with the financial sector ready to intermediate resources for productive investment, buffered by healthy balance sheets, and the government’s continued thrust on capex, the investment outlook appears bright. “The ongoing strengthening of global trade could provide a fillip to external demand for India’s exports although escalation of geopolitical tensions remains a potential threat,” the article also stated.

Robust domestic engines supporting India's growth outlook: RBI Bulletin

India's Central Bank governor, Shaktikanta Das, said an interest rate cut at this stage would be "very, very risky." He added that the Reserve Bank of India (RBI) is in no hurry to join the wave of easing by global policymakers.

Das said inflation is predicted to decline. However, he said "significant risks" to "the forecast remain. Das said that the dynamics of inflation and growth are well-balanced at the moment. The governor said authorities must continue on the lookout for pricing pressures.

The RBI hinted last week that it could be getting ready to ease after shifting its policy stance to neutral. The central bank, though, kept its benchmark interest rate at the same level for over two years. This comes even as global easing is well underway.

The US Federal Reserve is leading the world banks in lowering interest rates. Thailand was the most recent to do so this week.

Responding to a question about global central bank easing, Das said, "We will not miss the party; we don't want to join any party."

Das pushed back against some views that the RBI was "behind the curve" in cutting rates. Market expectations were aligned with the central bank's actions, he said, citing last week's decision that was predicted by most economists.

The RBI governor said the inflation rate will remain elevated before moderating in November. That's made the timing of a rate cut uncertain. Several economists have now pushed out their rate-cut forecasts from December to next year.

India's Central Bank governor, Shaktikanta Das, said an interest rate cut at this stage would be "very, very risky." He added that the Reserve Bank of India (RBI) is in no hurry to join the wave of easing by global policymakers.

India's Central Bank governor, Shaktikanta Das, said an interest rate cut at this stage would be "very, very risky." He added that the Reserve Bank of India (RBI) is in no hurry to join the wave of easing by global policymakers. Das said inflation is predicted to decline. However, he said "significant risks" to "the forecast remain. Das said that the dynamics of inflation and growth are well-balanced at the moment. The governor said authorities must continue on the lookout for pricing pressures. The RBI hinted last week that it could be getting ready to ease after shifting its policy stance to neutral. The central bank, though, kept its benchmark interest rate at the same level for over two years. This comes even as global easing is well underway. The US Federal Reserve is leading the world banks in lowering interest rates. Thailand was the most recent to do so this week. Responding to a question about global central bank easing, Das said, "We will not miss the party; we don't want to join any party." Das pushed back against some views that the RBI was "behind the curve" in cutting rates. Market expectations were aligned with the central bank's actions, he said, citing last week's decision that was predicted by most economists. The RBI governor said the inflation rate will remain elevated before moderating in November. That's made the timing of a rate cut uncertain. Several economists have now pushed out their rate-cut forecasts from December to next year.

RBI Governor: India's inflation to moderate, but risks remain

India's central bank governor Shaktikanta das said an interest rate cut at this stage would be "Very, very risky." He added the Reserve Bank of India is in no hurry to join the wave of easing by global policymakers.

RBI Governor Calls Rate Cut Risky For Economy

Despite global rate reductions, the RBI maintained its policy rate at 6.5 per cent, citing concerns over food inflation and strong GDP growth. Watch for more details!

RBI Keeps Borrowing Rates Steady at 6.5%, Flags High Inflation

The Reserve Bank of India (RBI) kept its key interest rate unchanged on Wednesday as widely expected, but changed its policy stance to "neutral", opening the door for rate cuts as early as December.

The Reserve Bank of India (RBI) kept its key interest rate unchanged on Wednesday as widely expected, but changed its policy stance to "neutral", opening the door for rate cuts as early as December. India has lagged global peers in easing policy as inflation has remained above target due to high food prices. Central banks in developed economies, led by the US Federal Reserve, in September delivered their biggest collective push on interest rate cuts since the COVID-19 pandemic. But RBI Governor Shaktikanta Das said there was greater confidence now on the last mile of disinflation towards the central bank's four per cent target. "It is with a lot of effort that the inflation horse has been brought to the stable - that is, closer to the target," Das said, announcing the rate decision. "We have to be very careful about opening the gate as the horse may simply bolt again. We must keep the horse on (a) tight leash so that we do not lose control," Das said. The change in policy stance gives the central bank more "flexibility" and "optionality", Das added at a press conference which followed the statement. "Considering the significant risks that lie ahead of us and that are staring at us, it will not be appropriate to specifically talk of the timing of a rate cut," Das said. Also Read |Indian govt extends RBI deputy governor M. Rajeshwar Rao's tenure by one year| The Monetary Policy Committee (MPC), which consists of three RBI and three external members, kept the repo rate unchanged at 6.50 per cent for a tenth straight policy meeting. The committee, however, voted unanimously to change its policy stance to "neutral" from "withdrawal of accommodation". Rates were predicted to be kept on hold by 80% of the 76 economists polled by Reuters but many expected cuts starting in December. The MPC last changed rates in February 2023, when the policy rate was raised to 6.50 per cent. It raised rates by a cumulative 250 basis points (bps) between April 2022 and February 2023, as the economy emerged from the COVID-19 pandemic and inflation took off. "We continue to expect the onset of rate-easing from December with a 25-bps cut, but the scale of easing in this cycle is expected to be shallow with limited scope for back-to-back easing in each policy (meeting)," said Upasna Bhardwaj, chief economist Kotak Mahindra Bank. IDFC FIRST Bank expects a total of 50 bps points in rate cuts by March 2025, beginning with a 25 bps cut in December. Equity markets gained, led by interest rate sensitive sectors, and bond yields fell as the central bank indicated rate cuts ahead. The Indian rupee was marginally higher. The central bank expects inflation to average 4.5 per cent in the financial year 2024-25, unchanged from the forecast provided at the August meeting. Also Read |Global markets surge as $8 trillion rally faces key tests| Annual retail inflation remained below the central bank's target of 4% for a second consecutive month in August but is seen rising to five per cent in September, according to Barclays. The central bank will see through the upcoming "hump" carefully and then make a decision, deputy governor Michael Patra said at the post-policy press conference. While the recent escalation of tensions in the Middle East has shrouded the outlook on the inflation trajectory, concerns about economic growth have also begun to emerge. High-frequency indicators such as the manufacturing PMI slowed to an eight-month low in September, while the services PMI eased to a 10-month trough, latest data showed. India's overall growth slowed to 6.7 per cent in the June quarter. The central bank, however, retained its GDP growth forecast for the current financial year at 7.2 per cent. It said that prospects for private consumption, the mainstay of demand in the economy, look bright on the back of an improved agricultural outlook and rural demand. The prevailing and expected inflation-growth balance have created conditions for a shift in the monetary policy stance, Das said. But he added that significant risks persist from adverse weather conditions, geopolitical conflict and the recent increase in some commodity prices. The committee's latest meeting included three new external members, who were appointed for a four-year term earlier this month. Five out of six members voted in favour of holding rates. Newly appointed Nagesh Kumar voted to cut the policy rate by 25 basis points. In August, two of six committee members had voted for a cut in rates. Separately, the central bank asked the country's non-bank lenders to avoid a "growth-at-any-cost" approach, adding to its warnings to the financial sector against "all forms of exuberance." Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

India Central Bank leaves interest rates unchanged, shifts stance to ‘neutral’ signalling rate cuts ahead

India's government approved the re-appointment of Reserve Bank of India deputy governor M. Rajeshwar Rao for a period of one year starting Oct. 9 or until further orders, it said late on Friday.

Rao was first appointed deputy governor in September 2020 for a period of three years and was given a one year extension in 2023. With the latest re-appointment, Rao would serve a total of five years in the position.

Rao is currently in charge of the RBI's departments of regulation, risk monitoring, communication, enforcement and legal.

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION&nbsp;audience. 
&nbsp;

India's government approved the re-appointment of Reserve Bank of India deputy governor M. Rajeshwar Rao for a period of one year starting Oct. 9 or until further orders, it said late on Friday.

India's government approved the re-appointment of Reserve Bank of India deputy governor M. Rajeshwar Rao for a period of one year starting Oct. 9 or until further orders, it said late on Friday. Rao was first appointed deputy governor in September 2020 for a period of three years and was given a one year extension in 2023. With the latest re-appointment, Rao would serve a total of five years in the position. Rao is currently in charge of the RBI's departments of regulation, risk monitoring, communication, enforcement and legal. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Indian govt extends RBI deputy governor M. Rajeshwar Rao's tenure by one year

India's capital market regulator has barred Axis Capital from being the manager in new offerings of debt by Indian companies, the latest crackdown in the country's securities market, according to a report by Bloomberg.

The Securities and Exchange Board of India said the Axis Bank Ltd. unit transgressed rules for merchant banking and acted effectively in the domain of a debenture trustee - an act that is beyond its remit. Axis Capital has 21 days to contest the order.

Axis Bank said that its unit's activities were "bona-fide and in compliance with all applicable regulatory provisions." There is "no material impact" on the bank on account of the initial order by the regulator as Axis Capital contributed only 0.7 per cent of the lender's net income last fiscal year, the Mumbai-based bank said in a statement.

This comes months after SEBI barred JM Financial Ltd from undertaking merchant banking activity in the debt segment on the grounds of unfair trading practices. The regulator is looking at an overhaul of its merchant banking regulations to ensure that such firms don't undertake activities that are not part of the market.

The latest was an issue of debt by a technology consultancy provider Sojo Infotel Pvt. in March 2021. Axis Capital had arranged this issue.

“Axis Capital provided guarantee or indemnity toward redemption of NCDs in the guise of underwriting, which it was not permitted to do under the existing regulatory framework,” SEBI member Ashwani Bhatia said in the order. An NCD means a non-convertible debenture.

SEBI said that activities undertaken by Axis Capital as an arranger for Sojo Infotel's debt offering "pose risk to the financial system as it can potentially disrupt the orderly functioning of the market. "

Axis Capital was “taking credit risk exposure, rather than market risk,” Bhatia said. “By undertaking such activities, Axis Capital got into the realm of banking, as the Sojo transaction had all the ingredients of a banking transaction.”

It has been a year since Axis Capital has undertaken any debt arranging of offerings in India and does not view the order as having any material impact, said Axis Bank. The investment arm of the lender is evaluating all available legal remedies.

Still, the regulator pointed out that since Axis Capital is a unit of Axis Bank, the guarantee it provided to Sojo Infotel's NCDs exposed its parent to credit risks. That necessitates further examination from the Reserve Bank of India, it said.

India's capital market regulator has barred Axis Capital from being the manager in new offerings of debt by Indian companies, the latest crackdown in the country's securities market, according to a report by Bloomberg.

India's capital market regulator has barred Axis Capital from being the manager in new offerings of debt by Indian companies, the latest crackdown in the country's securities market, according to a report by Bloomberg. The Securities and Exchange Board of India said the Axis Bank Ltd. unit transgressed rules for merchant banking and acted effectively in the domain of a debenture trustee - an act that is beyond its remit. Axis Capital has 21 days to contest the order. Axis Bank said that its unit's activities were "bona-fide and in compliance with all applicable regulatory provisions." There is "no material impact" on the bank on account of the initial order by the regulator as Axis Capital contributed only 0.7 per cent of the lender's net income last fiscal year, the Mumbai-based bank said in a statement. This comes months after SEBI barred JM Financial Ltd from undertaking merchant banking activity in the debt segment on the grounds of unfair trading practices. The regulator is looking at an overhaul of its merchant banking regulations to ensure that such firms don't undertake activities that are not part of the market. The latest was an issue of debt by a technology consultancy provider Sojo Infotel Pvt. in March 2021. Axis Capital had arranged this issue. “Axis Capital provided guarantee or indemnity toward redemption of NCDs in the guise of underwriting, which it was not permitted to do under the existing regulatory framework,” SEBI member Ashwani Bhatia said in the order. An NCD means a non-convertible debenture. SEBI said that activities undertaken by Axis Capital as an arranger for Sojo Infotel's debt offering "pose risk to the financial system as it can potentially disrupt the orderly functioning of the market. " Axis Capital was “taking credit risk exposure, rather than market risk,” Bhatia said. “By undertaking such activities, Axis Capital got into the realm of banking, as the Sojo transaction had all the ingredients of a banking transaction.” It has been a year since Axis Capital has undertaken any debt arranging of offerings in India and does not view the order as having any material impact, said Axis Bank. The investment arm of the lender is evaluating all available legal remedies. Still, the regulator pointed out that since Axis Capital is a unit of Axis Bank, the guarantee it provided to Sojo Infotel's NCDs exposed its parent to credit risks. That necessitates further examination from the Reserve Bank of India, it said.

India prohibits Axis Bank unit from handling new debt issuances

Recently released report on the Indian economy by the reserve bank of India shows robust growth and strong recovery from the pandemic-driven decline.

India’s GDP growth shows strong recovery in 2023-24

Seen as an important declaration, the Chief of the Reserve Bank of India (RBI), Shaktikanta Das, discussed his positive outlook for India's economic trajectory in a recent conversation with CNBC. According to Das, India can potentially achieve sustainable growth of up to 8 per cent in the coming years. This optimistic prediction comes amid a backdrop of robust economic recovery following the challenges posed by the pandemic.

Factors responsible for growth<o:p></o:p>

Das highlighted that several key factors contribute to this potential growth, including strong domestic demand, increased foreign investment, and comprehensive government reforms. He noted, "The Indian economy is on a strong footing, boosted by a resurgence in consumer confidence and an uptick in manufacturing activities. These elements are crucial for driving sustainable development in the long run."

Furthermore, he emphasised the importance of continuous monetary policy support to sustain this upward momentum. "The RBI will remain vigilant in ensuring that inflation is kept in check while facilitating growth," he added.

In a reaction to the governor’s 8 per cent prediction on growth, Eswar Prasad, professor of international trade and economics at Cornell University, told CNBC that the figure seemed like more of an “aspiration” than a “realistic” goal at this stage.

It is also to be noted that, in an August bulletin by the Reserve Bank of India, the governor highlighted an expected 7.2 per cent real GDP rate (adjusted for inflation) for 2024 to 2025, with the same figure for the first quarter of 2025 to 2026 fiscal year, with risks either side being “evenly balanced.”

Governor on the Fed rate cuts <o:p></o:p>

On the question of the Federal Reserve rate cut Das stated that, “We will not be influenced by how much of a rate cut they are doing, whether it is 25 or 50 or how often and what is the frequency of their rate cuts.”

Additionally, the Reserve Bank of India Chief pointed out that the government's focus on infrastructure development and digital transformation is paving the way for enhanced economic activities. "Significant investments in infrastructure will not only create jobs but also stimulate further economic engagement across various sectors," he explained.

The future trajectory of the Indian economy<o:p></o:p>

Hence, the RBI Chief's insights work as a ray of hope for stakeholders in the Indian economy, offering a clear vision of the potential for sustainable growth. As the nation gears up for the future, the emphasis remains on strategic measures to make the most of this growth potential effectively. 

Further, India has recently been described by the International Monetary Fund as “the world’s fastest-growing major economy,” whereas, Goldman Sachs believes that India is poised to become the world’s second-largest economy by 2075, overtaking Japan, Germany, and the US to become second only to China thus underlining the growth potential and the trajectory for the world's fastest-growing major economy.&nbsp;

With these developments, India stands at a crucial moment where targeted government policies, improvements in education, and healthcare, and well-planned capital expenditure in critical sectors could significantly bolster its economic landscape, making it an attractive destination for both domestic and international investors.

Seen as an important declaration, the Chief of the Reserve Bank of India (RBI), Shaktikanta Das, discussed his positive outlook for India's economic trajectory in a recent conversation with CNBC.

Seen as an important declaration, the Chief of the Reserve Bank of India (RBI), Shaktikanta Das, discussed his positive outlook for India's economic trajectory in a recent conversation with CNBC. According to Das, India can potentially achieve sustainable growth of up to 8 per cent in the coming years. This optimistic prediction comes amid a backdrop of robust economic recovery following the challenges posed by the pandemic. Factors responsible for growth Das highlighted that several key factors contribute to this potential growth, including strong domestic demand, increased foreign investment, and comprehensive government reforms. He noted, "The Indian economy is on a strong footing, boosted by a resurgence in consumer confidence and an uptick in manufacturing activities. These elements are crucial for driving sustainable development in the long run." Furthermore, he emphasised the importance of continuous monetary policy support to sustain this upward momentum. "The RBI will remain vigilant in ensuring that inflation is kept in check while facilitating growth," he added. In a reaction to the governor’s 8 per cent prediction on growth, Eswar Prasad, professor of international trade and economics at Cornell University, told CNBC that the figure seemed like more of an “aspiration” than a “realistic” goal at this stage. It is also to be noted that, in an August bulletin by the Reserve Bank of India, the governor highlighted an expected 7.2 per cent real GDP rate (adjusted for inflation) for 2024 to 2025, with the same figure for the first quarter of 2025 to 2026 fiscal year, with risks either side being “evenly balanced.” Governor on the Fed rate cuts On the question of the Federal Reserve rate cut Das stated that, “We will not be influenced by how much of a rate cut they are doing, whether it is 25 or 50 or how often and what is the frequency of their rate cuts.” Additionally, the Reserve Bank of India Chief pointed out that the government's focus on infrastructure development and digital transformation is paving the way for enhanced economic activities. "Significant investments in infrastructure will not only create jobs but also stimulate further economic engagement across various sectors," he explained. The future trajectory of the Indian economy Hence, the RBI Chief's insights work as a ray of hope for stakeholders in the Indian economy, offering a clear vision of the potential for sustainable growth. As the nation gears up for the future, the emphasis remains on strategic measures to make the most of this growth potential effectively. Further, India has recently been described by the International Monetary Fund as “the world’s fastest-growing major economy,” whereas, Goldman Sachs believes that India is poised to become the world’s second-largest economy by 2075, overtaking Japan, Germany, and the US to become second only to China thus underlining the growth potential and the trajectory for the world's fastest-growing major economy. With these developments, India stands at a crucial moment where targeted government policies, improvements in education, and healthcare, and well-planned capital expenditure in critical sectors could significantly bolster its economic landscape, making it an attractive destination for both domestic and international investors.

India can achieve sustainable growth of up to 8%: RBI Chief Shaktikanta Das

India's Foreign exchange reserves rose to a record high for a third straight week. Data from the reserve bank of India (RBI) showed on friday the country's import cover hit a new high in the latest reported week.

India's Forex reserves hit record high

India’s Ministry of Finance has clarified that there are no restrictions on queer individuals opening joint bank accounts with their partners. They can also name their partners as their nominees in the event of the death of the account holder.

In a notice dated August 28, the finance ministry further clarified that in response to the case of Supriyo Chakraborty and others vs. Union of India, there are no restrictions for queer people to avail crucial banking rights.

The finance ministry added that all Scheduled Commercial Banks in the country have been notified of this.

<h2>Old Demand, New Relief&nbsp;</h2>

Banking was considered one of the key rights that Indian queers did not have when compared to their fellow cis-gendered, heterosexual citizens.&nbsp;

Activists had long demanded that banking rights are crucial to ensure financial security and protect the community from the pressures of economic hardships. Other demands include marriage equality, workplace equality, and 'Anti-Discrimination law'.&nbsp;

What is notable is that queer couples often live outside the boundaries of a typical familial setup. As many are estranged or are away from natal family violence.

In the event of the death of a queer partner, their banking rights till now went to their family, not their partner(s).&nbsp;

Thus, when the RBI and finance ministry clarified, the community erupted, with many labelling it as a ‘big win.’&nbsp;

This author caught up with Yash, the founder of Official Humans of Queer, to know about this development and its real-life impact on the queer rights movement.

How is this a ‘win’ for the community, and will it be implemented in a fair and accessible manner?

“Yes. Basic, but yes. However, whenever a new clarification or policy comes up for our community, the bigger challenge is always implementation. We have seen private banks like Axis promoting similar schemes in 2021 or 2022, but in reality, even their staff were unaware and discriminatory towards people who tried to avail themselves of the policy.”

“Since this clarification is coming from the government in light of the recent update, I hope it gets implemented effectively. I can't comment on how accessible it will be for queer couples, as many times, queer folks are not out and don't want to reveal their identities in such places due to fear.”

Also read:&nbsp;<a href="http://wionews.com/trending/lgbtq-youth-face-higher-rates-of-mental-health-issues-and-suicidal-thoughts-cdc-report-finds-747943" hreflang="en">LGBTQ+ youth face higher rates of mental health issues and suicidal thoughts, CDC report finds</a>

“While this statement might sound very positive and promising, I'm still waiting for the guidelines from the banks, and at a deeper level, I'm concerned about the sensitivity of the staff at these banks who work directly with people. I hope we get to access and use this policy in a respectful and equal manner.”

The notification letter mentions the word ‘queer,’ a far cry from the derogatory and often ‘gay-specific’ language of yesteryears. What do you make of this?

“I love that they are using these inclusive words for the community, but at the same time, they haven't defined 'queer' in this reference. And as far as we know, the policies work in a defined way.”&nbsp;

“So, when they are talking about 'queer', will they allow people who are in non-monogamous relationships, or people who are not into the idea of romantic relationships but living with their friends as their partners? So, it would have been better if they had defined the same because we all know how they work.”&nbsp;

It is to be noted that Yash already has his account at HDFC Bank with his partner as a nominee under the ‘others’ section.&nbsp;

So, all banks already give one access to name anyone as your nominee.&nbsp; The question is whether the banks will now allow partners to be named as spouses, officially.&nbsp;

<h2>On-ground changes awaited</h2>

Banking equality is a win for any society, and this clarification will be a milestone in ensuring equality for all citizens of the country, queer or not. But the real test will be on-ground changes, especially in the semi-urban and rural banks of the country.

The country and the community would be watching very closely.

India’s Ministry of Finance has clarified that there are no restrictions on queer individuals opening joint bank accounts with their partners. They can also name their partners as their nominees in the event of the death of the account holder.

India’s Ministry of Finance has clarified that there are no restrictions on queer individuals opening joint bank accounts with their partners. They can also name their partners as their nominees in the event of the death of the account holder. In a notice dated August 28, the finance ministry further clarified that in response to the case of Supriyo Chakraborty and others vs. Union of India, there are no restrictions for queer people to avail crucial banking rights. The finance ministry added that all Scheduled Commercial Banks in the country have been notified of this. Old Demand, New Relief Banking was considered one of the key rights that Indian queers did not have when compared to their fellow cis-gendered, heterosexual citizens. Activists had long demanded that banking rights are crucial to ensure financial security and protect the community from the pressures of economic hardships. Other demands include marriage equality, workplace equality, and 'Anti-Discrimination law'. What is notable is that queer couples often live outside the boundaries of a typical familial setup. As many are estranged or are away from natal family violence. In the event of the death of a queer partner, their banking rights till now went to their family, not their partner(s). Thus, when the RBI and finance ministry clarified, the community erupted, with many labelling it as a ‘big win.’ This author caught up with Yash, the founder of Official Humans of Queer, to know about this development and its real-life impact on the queer rights movement. How is this a ‘win’ for the community, and will it be implemented in a fair and accessible manner? “Yes. Basic, but yes. However, whenever a new clarification or policy comes up for our community, the bigger challenge is always implementation. We have seen private banks like Axis promoting similar schemes in 2021 or 2022, but in reality, even their staff were unaware and discriminatory towards people who tried to avail themselves of the policy.” “Since this clarification is coming from the government in light of the recent update, I hope it gets implemented effectively. I can't comment on how accessible it will be for queer couples, as many times, queer folks are not out and don't want to reveal their identities in such places due to fear.” Also read: LGBTQ+ youth face higher rates of mental health issues and suicidal thoughts, CDC report finds “While this statement might sound very positive and promising, I'm still waiting for the guidelines from the banks, and at a deeper level, I'm concerned about the sensitivity of the staff at these banks who work directly with people. I hope we get to access and use this policy in a respectful and equal manner.” The notification letter mentions the word ‘queer,’ a far cry from the derogatory and often ‘gay-specific’ language of yesteryears. What do you make of this? “I love that they are using these inclusive words for the community, but at the same time, they haven't defined 'queer' in this reference. And as far as we know, the policies work in a defined way.” “So, when they are talking about 'queer', will they allow people who are in non-monogamous relationships, or people who are not into the idea of romantic relationships but living with their friends as their partners? So, it would have been better if they had defined the same because we all know how they work.” It is to be noted that Yash already has his account at HDFC Bank with his partner as a nominee under the ‘others’ section. So, all banks already give one access to name anyone as your nominee. The question is whether the banks will now allow partners to be named as spouses, officially. On-ground changes awaited Banking equality is a win for any society, and this clarification will be a milestone in ensuring equality for all citizens of the country, queer or not. But the real test will be on-ground changes, especially in the semi-urban and rural banks of the country. The country and the community would be watching very closely.

RBI gives banking rights to its queer citizens. Community awaits on-ground changes

India’s economic survey proposed a significant shift in monetary policy: excluding food prices from the inflation measure. According to the Reserve Bank of India’s August bulletin, this move could address persistent issues with high food inflation. But will this simplification overlook the economic strain facing Indian households?

India's inflation debate: To include or exclude food?

In a much-anticipated move, the Reserve Bank of India's six-member Monetary Policy Committee has kept the repo rate unchanged at 6.5 per cent for the ninth time in a row, citing risks from higher food inflation. It also retained the stance on withdrawal of accommodation.

Making the announcement, Reserve Bank of India Governor Shaktikanta Das said that inflation also remained broadly on a falling trajectory. Repo rate was last cut by 40 basis points to 4 per cent in May 2020 in view of the economic disruption triggered by the COVID-19 pandemic that had brought demand to a near standstill, forced production cuts, and laid-off millions of jobs. Since then, the central bank has hiked the repo rate by 250 basis points to 6.50 per cent at present to fight high inflation levels after the epidemic subsided.

The resolution to retain the status quo on the repo rate at 6.5 per cent means all the external benchmark lending rates (EBLR) linked to the repo rate will continue to remain unchanged, bringing relief to borrowers as their equated monthly instalments (EMIs) will not increase. It is in response to this cumulative 250 bps policy rate increase that banks have aligned their repo-linked EBLRs upwards since May 2022. Further, the 1-year median marginal cost of funds-based rate (MCLR) of banks increased to 168 bps from May 2022–June 2024.

In a much-anticipated move, the Reserve Bank of India's six-member Monetary Policy Committee has kept the repo rate unchanged at 6.5 per cent for the ninth time in a row, citing risks from higher food inflation.

In a much-anticipated move, the Reserve Bank of India's six-member Monetary Policy Committee has kept the repo rate unchanged at 6.5 per cent for the ninth time in a row, citing risks from higher food inflation. It also retained the stance on withdrawal of accommodation. Making the announcement, Reserve Bank of India Governor Shaktikanta Das said that inflation also remained broadly on a falling trajectory. Repo rate was last cut by 40 basis points to 4 per cent in May 2020 in view of the economic disruption triggered by the COVID-19 pandemic that had brought demand to a near standstill, forced production cuts, and laid-off millions of jobs. Since then, the central bank has hiked the repo rate by 250 basis points to 6.50 per cent at present to fight high inflation levels after the epidemic subsided. The resolution to retain the status quo on the repo rate at 6.5 per cent means all the external benchmark lending rates (EBLR) linked to the repo rate will continue to remain unchanged, bringing relief to borrowers as their equated monthly instalments (EMIs) will not increase. It is in response to this cumulative 250 bps policy rate increase that banks have aligned their repo-linked EBLRs upwards since May 2022. Further, the 1-year median marginal cost of funds-based rate (MCLR) of banks increased to 168 bps from May 2022–June 2024.

RBI keeps repo rate intact amid fears of inflation, provides relief to borrowers

Indian Minister of State for Finance Pankaj Chaudhary told the country's parliament that there has been a significant increase in financial fraud cases during the last five years. According to data from the Reserve Bank of India (RBI), there has been a marked rise in fraud incidents involving credit cards, ATM or debit cards, and internet banking.

RBI: Fraud incidents soar by 986% over five years

The Reserve Bank of India (RBI) has revealed that over Rs 7,961 crore (about $954&nbsp;million) worth of 2000-rupee banknotes have not been deposited and still remain in circulation, even after the withdrawal of the high-value denomination from the system.

This represents 2.24 per cent of the total Rs 3.56 lakh crore (about $42.6&nbsp;billion) worth of 2000-rupee notes that were in circulation when the withdrawal was announced on May 19, 2023.

Also Read |&nbsp;<a href="https://www.wionews.com/world/australia-doubles-foreign-student-visa-fee-to-curb-migration-indian-students-likely-to-be-hit-736799">Australia doubles foreign student visa fee to curb migration, Indian students likely to be hit</a>

The RBI had initially set a deadline of September 30, 2023 for the public and private entities to either exchange or deposit the 2000-rupee notes.

This deadline was later extended to October 7, 2023. However, a significant portion of these high-value notes have not been returned to the banking system.

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The 2000-rupee denomination was introduced in November 2016 following the demonetisation of the then-prevailing Rs&nbsp;1000 and Rs 500 banknotes.

The objective was to meet the currency requirement of the economy in an expeditious manner. However, with the availability of banknotes in other denominations, the printing of 2000-rupee notes was stopped in 2018-19.

Watch |&nbsp;<a href="https://www.wionews.com/videos/india-rainfall-triggers-landslide-in-jammu-kashmir-736831">India: Rainfall triggers landslide in Jammu-Kashmir</a>

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<h2>2000-rupee notes still a legal tender&nbsp;</h2>

The RBI has stated that the 2000-rupee notes will continue to maintain their legal tender status, and the public can continue to use them for transactions.

However, the central bank had encouraged the public to deposit or exchange these notes by the extended deadline of October 7, 2023.

Individuals could exchange the 2000-rupee notes or have the equivalent sum credited to their bank accounts at the 19 RBI offices across the country.

The RBI has also made provisions for individuals to send the 2000-rupee notes through India Post for credit to their bank accounts.

The withdrawal of the 2000-rupee note is part of the RBI's "Clean Note Policy," which aims to ensure the availability of good quality banknotes to the public.

(With inputs from agencies)

The Reserve Bank of India (RBI) has revealed that over Rs 7,961 crore (about $954 million) worth of 2000-rupee banknotes have not been deposited and still remain in circulation, even after the withdrawal of the high-value denomination from the system.

The Reserve Bank of India (RBI) has revealed that over Rs 7,961 crore (about $954 million) worth of 2000-rupee banknotes have not been deposited and still remain in circulation, even after the withdrawal of the high-value denomination from the system. This represents 2.24 per cent of the total Rs 3.56 lakh crore (about $42.6 billion) worth of 2000-rupee notes that were in circulation when the withdrawal was announced on May 19, 2023. Also Read | Australia doubles foreign student visa fee to curb migration, Indian students likely to be hit The RBI had initially set a deadline of September 30, 2023 for the public and private entities to either exchange or deposit the 2000-rupee notes. This deadline was later extended to October 7, 2023. However, a significant portion of these high-value notes have not been returned to the banking system. Also Read | Jammu and Kashmir witnesses a ‘purple revolution’ as lavender farming picks up The 2000-rupee denomination was introduced in November 2016 following the demonetisation of the then-prevailing Rs 1000 and Rs 500 banknotes. The objective was to meet the currency requirement of the economy in an expeditious manner. However, with the availability of banknotes in other denominations, the printing of 2000-rupee notes was stopped in 2018-19. Watch | India: Rainfall triggers landslide in Jammu-Kashmir × 2000-rupee notes still a legal tender The RBI has stated that the 2000-rupee notes will continue to maintain their legal tender status, and the public can continue to use them for transactions. However, the central bank had encouraged the public to deposit or exchange these notes by the extended deadline of October 7, 2023. Individuals could exchange the 2000-rupee notes or have the equivalent sum credited to their bank accounts at the 19 RBI offices across the country. The RBI has also made provisions for individuals to send the 2000-rupee notes through India Post for credit to their bank accounts. The withdrawal of the 2000-rupee note is part of the RBI's "Clean Note Policy," which aims to ensure the availability of good quality banknotes to the public. (With inputs from agencies)

RBI says $954mn worth of withdrawn 2000-rupee banknotes remain in circulation

Now, we turn our attention to the bull run in Indian stocks. The real question for Friday's trade is: can the Indian stock market sustain the sharp surge in recent weeks? Or, will profit booking kick in? After breaching multiple milestones this week, Indian shares hit fresh records on Thursday. Benchmark indices set multiple new milestones for the second straight session, surpassing key levels.

Can Sensex & Nifty at new all-time highs surge further?

The Reserve Bank of India's half-yearly report for risk assessment in the financial sector presents a collective assessment of the stability of the global &amp; India's financial system.

On global macro-financial risks, the report highlights 'resilience amid heightened risks and uncertainties'. While short-term economic indicators point to a significant improvement, the report also highlights the challenges. Issues of high public debt, geopolitical tensions, stretched asset valuations, economic fragmentation, climate disasters, &amp; cyber threats plague the global economic outlook. Emerging market economies remain vulnerable to these external shocks.

On domestic macro-financial risks, the report reiterates India's growth story. Strong fundamentals and a stable financial system have boosted India's economic outlook. Business and consumer sentiment outlook is also optimistic, with moderation inflation and ongoing fiscal consolidation. Financial institutions boast of healthy balance sheets, marked by strong capital buffers, improving asset quality and robust earnings.

On the resilience of financial institutions, the report highlighted Scheduled commercial banks (SCBs), that have been boosted by rising profitability and declining non-performing assets. Return on assets(ROE) &amp; Return on equity (ROE) are close to decade highs at 1.3 per cent and 13.8 per cent, respectively. The consolidated solvency ratio of the insurance sector remains above the minimum threshold limit of 150 per cent.&nbsp;

On regulatory initiatives in the global financial sector, the report highlights a focus on recent initiatives aimed at safeguarding the banking system from inter-connectedness. Meanwhile, domestic regulatory initiatives are also focused on ensuring safety and resilience.&nbsp;

The Reserve Bank of India's half-yearly report for risk assessment in the financial sector presents a collective assessment of the stability of the global & India's financial system.

The Reserve Bank of India's half-yearly report for risk assessment in the financial sector presents a collective assessment of the stability of the global & India's financial system. On global macro-financial risks, the report highlights 'resilience amid heightened risks and uncertainties'. While short-term economic indicators point to a significant improvement, the report also highlights the challenges. Issues of high public debt, geopolitical tensions, stretched asset valuations, economic fragmentation, climate disasters, & cyber threats plague the global economic outlook. Emerging market economies remain vulnerable to these external shocks. On domestic macro-financial risks, the report reiterates India's growth story. Strong fundamentals and a stable financial system have boosted India's economic outlook. Business and consumer sentiment outlook is also optimistic, with moderation inflation and ongoing fiscal consolidation. Financial institutions boast of healthy balance sheets, marked by strong capital buffers, improving asset quality and robust earnings. On the resilience of financial institutions, the report highlighted Scheduled commercial banks (SCBs), that have been boosted by rising profitability and declining non-performing assets. Return on assets(ROE) & Return on equity (ROE) are close to decade highs at 1.3 per cent and 13.8 per cent, respectively. The consolidated solvency ratio of the insurance sector remains above the minimum threshold limit of 150 per cent. On regulatory initiatives in the global financial sector, the report highlights a focus on recent initiatives aimed at safeguarding the banking system from inter-connectedness. Meanwhile, domestic regulatory initiatives are also focused on ensuring safety and resilience.

RBI's Financial Stability Report: India's assessment of the global economy

India's Kotak Mahindra Bank is eying offline expansion months after the Reserve Bank of India barred the private lender from digital customer sourcing. The Bank is looking to add about 175 to 200 branches in the Financial year 2024-25.

In April, the RBI stopped Kotak from adding new customers via its digital channels. This decision aimed to scrutinise Kotak for the deficiencies in the Bank's tech system in 2022 &amp; 2023.&nbsp;

Kotak's expansion also aims to address growing customer concerns over money safety in their respective accounts and credit card functionalities.&nbsp;

Virat Diwanji, group president and head of consumer bank, told Reuters, 'We have been adding roughly 150 odd branches for several years. This year, too, the momentum is going to continue.' The official added that the country's fourth-largest private lender will target pockets where there is easy availability of deposits and added that customer acquisition through branches is seeing good traction.

On RBI's order, Diwanji said that the Bank is working 'steadfastly' to fulfil RBI's requirement and return to business 'as usual.' The Bank has reportedly stepped up investments to strengthen its Tech systems, including steps to improve its digital payment security controls. Kotak has hired over 530 employees in the last 12-15 months, most of whom are from tech backgrounds, he added.

Before the RBI order, Kotak relied heavily on digital channels to source new clients. About 95 per cent of its new personal loans were disbursed digitally in the October-December quarter. Over 99 per cent of new credit cards were also issued digitally.&nbsp;

Kranthi Baithini, director of equity strategy at WealthMills Securities, told Reuters, 'Kotak's branch addition plans may not immediately help source new customers, but the strategy may play out in the medium-to-longer as it will increase its presence and reach.' He added that it will come with high overhead costs.

India's Kotak Mahindra Bank is eying offline expansion months after the Reserve Bank of India barred the private lender from digital customer sourcing. The Bank is looking to add about 175 to 200 branches in the Financial year 2024-25.

India's Kotak Mahindra Bank is eying offline expansion months after the Reserve Bank of India barred the private lender from digital customer sourcing. The Bank is looking to add about 175 to 200 branches in the Financial year 2024-25. In April, the RBI stopped Kotak from adding new customers via its digital channels. This decision aimed to scrutinise Kotak for the deficiencies in the Bank's tech system in 2022 & 2023. Kotak's expansion also aims to address growing customer concerns over money safety in their respective accounts and credit card functionalities. Virat Diwanji, group president and head of consumer bank, told Reuters, 'We have been adding roughly 150 odd branches for several years. This year, too, the momentum is going to continue.' The official added that the country's fourth-largest private lender will target pockets where there is easy availability of deposits and added that customer acquisition through branches is seeing good traction. On RBI's order, Diwanji said that the Bank is working 'steadfastly' to fulfil RBI's requirement and return to business 'as usual.' The Bank has reportedly stepped up investments to strengthen its Tech systems, including steps to improve its digital payment security controls. Kotak has hired over 530 employees in the last 12-15 months, most of whom are from tech backgrounds, he added. Before the RBI order, Kotak relied heavily on digital channels to source new clients. About 95 per cent of its new personal loans were disbursed digitally in the October-December quarter. Over 99 per cent of new credit cards were also issued digitally. Kranthi Baithini, director of equity strategy at WealthMills Securities, told Reuters, 'Kotak's branch addition plans may not immediately help source new customers, but the strategy may play out in the medium-to-longer as it will increase its presence and reach.' He added that it will come with high overhead costs.

Kotak goes 'offline:' India's Kotak Mahindra Bank eyes 200 additional branches by 2025

In the June 2024 edition of its monthly bulletin, The Reserve Bank of India highlighted three major themes - The state of the economy, Financial stocks and flow of funds of the Indian economy and India's deposit Insurance system.

Talking about the state of the economy, the RBI said that global growth was resilient in the first quarter of 2024. The RBI notes that many central banks have pivoted towards a less restrictive monetary policy stance in response to the fall in inflation in their economies. The European Central Bank &amp; tge Swiss National Bank are some examples. The Bank of England, however, maintains the Fed's hawkish stance and waits for year-end to initiate rate cuts.

In India, indicators suggest that the real GDP growth in quarter one of 2024-25 is broadly in sync with the growth achieved in previous quarters. The early landfall of the southwest monsoon has boosted agricultural prospects. Headline inflation is gradually easing, although the path of disinflation is interrupted by volatile and elevated food prices. Food inflation was the only major concern highlighted in the recent address of RBI's governor, Shaktikanta Das.

Regarding financial stocks and the flow of funds, the RBI bulletin notes that households and financial corporations remain surplus sectors that accommodate the deficit of non-financial corporations.

The economy borrowed more money than it lent, even though demand for goods and services increased. This happened because banks lent less money, and businesses and households preferred to save more or invest their money elsewhere. The net financial wealth of the domestic sector moderated to 29.8 per cent of GDP at the end of March 2022.

Coming to India's deposit insurance system, the bulletin notes that the broader spread and coverage of deposit insurance has globally amplified&nbsp;since the global financial crisis.

India's deposit insurance system has completed sixty years since its inception. Major achievements include enhanced coverage, speedy settlements, revisions in premiums, and initiatives for depositor awareness.

The RBI bulletin notes that the reserve ratio, which is the minimum amount of money banks keep on hold, is set to steadily increase in the near future.

In the June 2024 edition of its monthly bulletin, The Reserve Bank of India highlighted three major themes - The state of the economy, Financial stocks and flow of funds of the Indian economy and India's deposit Insurance system.

In the June 2024 edition of its monthly bulletin, The Reserve Bank of India highlighted three major themes - The state of the economy, Financial stocks and flow of funds of the Indian economy and India's deposit Insurance system. Talking about the state of the economy, the RBI said that global growth was resilient in the first quarter of 2024. The RBI notes that many central banks have pivoted towards a less restrictive monetary policy stance in response to the fall in inflation in their economies. The European Central Bank & tge Swiss National Bank are some examples. The Bank of England, however, maintains the Fed's hawkish stance and waits for year-end to initiate rate cuts. In India, indicators suggest that the real GDP growth in quarter one of 2024-25 is broadly in sync with the growth achieved in previous quarters. The early landfall of the southwest monsoon has boosted agricultural prospects. Headline inflation is gradually easing, although the path of disinflation is interrupted by volatile and elevated food prices. Food inflation was the only major concern highlighted in the recent address of RBI's governor, Shaktikanta Das. Regarding financial stocks and the flow of funds, the RBI bulletin notes that households and financial corporations remain surplus sectors that accommodate the deficit of non-financial corporations. The economy borrowed more money than it lent, even though demand for goods and services increased. This happened because banks lent less money, and businesses and households preferred to save more or invest their money elsewhere. The net financial wealth of the domestic sector moderated to 29.8 per cent of GDP at the end of March 2022. Coming to India's deposit insurance system, the bulletin notes that the broader spread and coverage of deposit insurance has globally amplified since the global financial crisis. India's deposit insurance system has completed sixty years since its inception. Major achievements include enhanced coverage, speedy settlements, revisions in premiums, and initiatives for depositor awareness. The RBI bulletin notes that the reserve ratio, which is the minimum amount of money banks keep on hold, is set to steadily increase in the near future.

RBI bulletin: India’s economic report card for June

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