Reserve Bank Of India Governor Shaktikanta Das has expressed confidence in India's economic trajectory. Highlighting a recovery in the banking sector and international trust in India's stability, das emphasised the opportune moment for businesses to invest in the indian ecosystem.

India's economic revival in focus as rbi governor signals growth

Reserve Bank Of India Governor Shaktikanta Das has expressed confidence in India's economic trajectory. Highlighting a recovery in the banking sector and international trust in India's stability, Das emphasised the opportune moment for businesses to invest in the Indian ecosystem.

RBI Governor Shaktikanta Das signals growth

RBI  Governor Shaktikanta Das pitches rupee as global currency

The Mumbai Police said on Tuesday (Dec 26) that the Reserve Bank of India (RBI) and other banks, including the HDFC Bank and ICICI Bank in the city, received a bomb threat. In an email, the sender said bombs were planted at 11 different locations across Mumbai.&nbsp;

The ominous threat&nbsp;explicitly demanded the resignation of Union Finance Minister Nirmala Sitharaman and RBI governor Shaktikanta Das, setting a deadline for compliance.

Describing their alleged involvement in the "biggest scam in the history of India," the sender claimed to possess substantial evidence to substantiate these accusations.

<a href="https://www.wionews.com/india-news/india-bomb-blast-scare-near-israel-embassy-security-agencies-on-toes-673762">Also read | India: Bomb blast scare near Israel Embassy, security agencies on toes</a>

<h2>Specific targets and timeline</h2>

The threat outlined specific targets, including the RBI New Central Office Building in Fort, HDFC House at Churchgate, and ICICI Bank Towers at Bandra Kurla Complex.

The sender asserted that unless the stipulated resignations were tendered by 1:30 pm, 11 hidden bombs would detonate across the mentioned locations, triggering a potential catastrophe.

Mumbai Police swiftly initiated a comprehensive search operation across all locations mentioned in the threatening email. Despite the urgency of the situation, no explosives or suspicious objects were discovered during the thorough sweep.

Law enforcement also&nbsp;registered a criminal intimidation case, acknowledging the severity of the threat. Investigations are now underway to trace the origin of the email and unravel the motive behind the ominous threat.&nbsp;

In response to the potential threat, the police have heightened security measures around the implicated banks and the RBI office.&nbsp;

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<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/hindu-woman-files-nomination-for-pakistan-elections-hamas-rejects-egypts-proposal-673760/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

As of now, neither the RBI nor the private banks implicated in the threat have issued official statements regarding the email. The silence from these financial institutions adds an element of uncertainty to the situation.

Union Finance Minister Nirmala Sitharaman and RBI governor Shaktikanta Das have yet to respond to the demand for their resignation.&nbsp;

(With inputs from agencies)

The Mumbai Police said on Tuesday (Dec 26) that the Reserve Bank of India (RBI) and other banks, including the HDFC Bank and ICICI Bank in the city, received a bomb threat.

The Mumbai Police said on Tuesday (Dec 26) that the Reserve Bank of India (RBI) and other banks, including the HDFC Bank and ICICI Bank in the city, received a bomb threat. In an email, the sender said bombs were planted at 11 different locations across Mumbai. The ominous threat explicitly demanded the resignation of Union Finance Minister Nirmala Sitharaman and RBI governor Shaktikanta Das, setting a deadline for compliance. Describing their alleged involvement in the "biggest scam in the history of India," the sender claimed to possess substantial evidence to substantiate these accusations. Also read | India: Bomb blast scare near Israel Embassy, security agencies on toes Specific targets and timeline The threat outlined specific targets, including the RBI New Central Office Building in Fort, HDFC House at Churchgate, and ICICI Bank Towers at Bandra Kurla Complex. The sender asserted that unless the stipulated resignations were tendered by 1:30 pm, 11 hidden bombs would detonate across the mentioned locations, triggering a potential catastrophe. Mumbai Police swiftly initiated a comprehensive search operation across all locations mentioned in the threatening email. Despite the urgency of the situation, no explosives or suspicious objects were discovered during the thorough sweep. Law enforcement also registered a criminal intimidation case, acknowledging the severity of the threat. Investigations are now underway to trace the origin of the email and unravel the motive behind the ominous threat. In response to the potential threat, the police have heightened security measures around the implicated banks and the RBI office. Also watch | Hindu woman files nomination for Pakistan elections; Hamas rejects Egypt's proposal As of now, neither the RBI nor the private banks implicated in the threat have issued official statements regarding the email. The silence from these financial institutions adds an element of uncertainty to the situation. Union Finance Minister Nirmala Sitharaman and RBI governor Shaktikanta Das have yet to respond to the demand for their resignation. (With inputs from agencies)

India: Email bomb threat sent to RBI, HDFC, ICICI banks in Mumbai, demands FM’s resignation

The parent company of Paytm, One 97 Communications, has decided to fire more than 1,000 employees across various departments, said a report by Economic Times citing sources, on Monday (Dec 25). The layoffs reportedly took place over the last few months.&nbsp;

<h2>10 per cent employees affected</h2>

The layoffs, according to ET, took place as the company is in the process of realigning various businesses and looking to cut costs, and will affect 10 per cent of the entire workforce at Paytm.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/paytm-share-price-faces-scrutiny-amid-strategic-shifts-analyst-concerns-667459">Paytm share price faces scrutiny amid strategic shifts &amp; analyst concerns</a>

The reported layoffs, if confirmed, would be among the steepest job cuts by an Indian new-age tech firm in 2023. According to the ET report, Paytm’s lending business which saw a major expansion in the last year or so, may witness most of the job losses due to the layoffs.&nbsp;

The report also comes on the heels of the UPI platform’s withdrawal of small-ticket consumer lending and its ‘buy now pay later’ lending segment after a <a href="https://www.wionews.com/business-economy/rbi-slaps-paytm-payments-bank-with-a-massive-penalty-heres-why-646206">crackdown</a> on unsecured loans by RBI.&nbsp;

The layoffs have affected employees across payments, lending and executives in operations in sales, said ET citing sources. Reportedly, performance issues have resulted in most people getting fired as the company has sought to increase portability.&nbsp;

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<h2>AI takes over jobs&nbsp;</h2>

In response to the report, a spokesperson for the financial services firm disputed the number of people fired but acknowledged layoffs. The Paytm spokesperson also said that it intends to save 10-15 per cent of staff costs over the current fiscal year. Additionally, most of the impacted roles have been replaced.&nbsp;

“We are transforming our operations with AI-powered automation, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce within operations and marketing,” said the Paytm spokesperson.&nbsp;

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The company’s spokesperson also told ET that their core business of payment might see a manpower increase of 15,000 people in the upcoming year.&nbsp;

(With inputs from agencies) 
&nbsp;

The parent company of Paytm, One 97 Communications, has decided to fire more than 1,000 employees across various departments, said a report by Economic Times citing sources, on Monday (Dec 25).

The parent company of Paytm, One 97 Communications, has decided to fire more than 1,000 employees across various departments, said a report by Economic Times citing sources, on Monday (Dec 25). The layoffs reportedly took place over the last few months. 10 per cent employees affected The layoffs, according to ET, took place as the company is in the process of realigning various businesses and looking to cut costs, and will affect 10 per cent of the entire workforce at Paytm. ALSO READ | Paytm share price faces scrutiny amid strategic shifts & analyst concerns The reported layoffs, if confirmed, would be among the steepest job cuts by an Indian new-age tech firm in 2023. According to the ET report, Paytm’s lending business which saw a major expansion in the last year or so, may witness most of the job losses due to the layoffs. The report also comes on the heels of the UPI platform’s withdrawal of small-ticket consumer lending and its ‘buy now pay later’ lending segment after a crackdown on unsecured loans by RBI. The layoffs have affected employees across payments, lending and executives in operations in sales, said ET citing sources. Reportedly, performance issues have resulted in most people getting fired as the company has sought to increase portability. ALSO WATCH | Google's shift to AI automation sparks ad sales reorganisation AI takes over jobs In response to the report, a spokesperson for the financial services firm disputed the number of people fired but acknowledged layoffs. The Paytm spokesperson also said that it intends to save 10-15 per cent of staff costs over the current fiscal year. Additionally, most of the impacted roles have been replaced. “We are transforming our operations with AI-powered automation, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce within operations and marketing,” said the Paytm spokesperson. ALSO READ | UK Supreme Court rules against AI as patent 'Inventor' in landmark case The company’s spokesperson also told ET that their core business of payment might see a manpower increase of 15,000 people in the upcoming year. (With inputs from agencies)

Paytm lays off more than 1,000 employees across various departments: Report

India's foreign exchange reserves nearing record high, despite RBI intervention. Import cover jumps despite the rupee near record lows.

India's foreign currency inflow rises despite RBI intervention

Is India's growth story not sitting well with the International Monetary Fund? The IMF has reclassified India's foreign exchange regime as 'stabilized arrangement' from 'floating system', after accusing the RBI of excessive interference. Was the IMF assessment in bad taste?

Gravitas: Is India's growth story not sitting well with IMF?

In yet another boost for the Unified Payments Interface (UPI), the Reserve Bank of India on Friday raised the transaction limit for payments to hospitals and educational institutions via the homegrown platform.

The central bank will enhance the transaction limit from ₹1 lakh to ₹5 lakh per transaction. This, the RBI said, will help consumers make UPI payments of higher amounts for education and healthcare purposes.

Given the rising popularity of e-Mandates for making recurring payments, transaction limits for e-Mandates have been hiked from ₹15,000 to ₹1 lakh. This is likely to help consumers make recurring payments for mutual funds, insurance premium and credit cards.

Medical, education sectors welcome move

Welcoming the hike in the transaction limits, Gaurav Gupta, Co-Founder, CarePay, said that the previous limit of ₹1 lakh was simply too low, especially for major surgeries in metropolitan and Tier 1 cities.&nbsp;

"UPI is already the preferred payment method for many patients. Patients are understandably worried about their treatment during such critical times. Technologies like UPI empower them to focus on getting better without the stress of managing large payments," he said.&nbsp;

The education sector, estimated to be worth $117 billion, too lauded the move, arguing that the limit hike will ease large educational transactions.&nbsp;

"Education expenses can be quite significant and are usually accompanied by strict deadlines. However, the forward-looking move will help students and their parents to make seamless payments without relying on alternatives like demand drafts," said Dr Christopher Abraham, Head of Campus (Dubai), SP Jain School of Global Management.&nbsp;

He added that the move will not only empower institutes to effectively manage their finances but also smoothen financial processes involving research grants, infrastructure development, and other institutional expenses.&nbsp;

Echoing similar views, Neeti Sharma, Co-founder of TeamLease Edtech, said that the enhanced UPI limit will make education-related transactions "more student-friendly".&nbsp;

Boost to fintech sector&nbsp;

During his presser, RBI Governor Shaktikanta Das also proposed to set-up a 'Fintech Repository', which is expected to help give a better understanding of developments in the Fintech ecosystem. "This will be operationalised by the Reserve Bank Innovation Hub in April 2024 or earlier," he added.&nbsp;

Anand Agrawal, Co-Founder, Credgenics, called the proposal a "positive move", adding that it will act as a catalyst for further innovation in the fintech sector.&nbsp;

"It will foster collaboration among fin-techs, financial services industry, and regulators. Encouraging voluntary contributions from fin-techs will empower regulators with real-time insights and enable informed, agile, and risk-mitigating decision-making," he said.&nbsp;

Led by the UPI platform, India's fintech sector is making waves across the world. As per various reports, India's fintech sector is the third-largest and is among the fastest-growing in terms of funding and deal volumes.&nbsp;

Helped by a robust Digital Public Infrastructure, consulting giant BCG predicts that Indian fintech revenues will grow 35 per cent each year to reach $190 billion by 2030.&nbsp;

In yet another boost for the Unified Payments Interface (UPI), the Reserve Bank of India on Friday raised the transaction limit for payments to hospitals and educational institutions via the homegrown platform.

In yet another boost for the Unified Payments Interface (UPI), the Reserve Bank of India on Friday raised the transaction limit for payments to hospitals and educational institutions via the homegrown platform. The central bank will enhance the transaction limit from ₹1 lakh to ₹5 lakh per transaction. This, the RBI said, will help consumers make UPI payments of higher amounts for education and healthcare purposes. Given the rising popularity of e-Mandates for making recurring payments, transaction limits for e-Mandates have been hiked from ₹15,000 to ₹1 lakh. This is likely to help consumers make recurring payments for mutual funds, insurance premium and credit cards. Medical, education sectors welcome move Welcoming the hike in the transaction limits, Gaurav Gupta, Co-Founder, CarePay, said that the previous limit of ₹1 lakh was simply too low, especially for major surgeries in metropolitan and Tier 1 cities. "UPI is already the preferred payment method for many patients. Patients are understandably worried about their treatment during such critical times. Technologies like UPI empower them to focus on getting better without the stress of managing large payments," he said. The education sector, estimated to be worth $117 billion, too lauded the move, arguing that the limit hike will ease large educational transactions. "Education expenses can be quite significant and are usually accompanied by strict deadlines. However, the forward-looking move will help students and their parents to make seamless payments without relying on alternatives like demand drafts," said Dr Christopher Abraham, Head of Campus (Dubai), SP Jain School of Global Management. He added that the move will not only empower institutes to effectively manage their finances but also smoothen financial processes involving research grants, infrastructure development, and other institutional expenses. Echoing similar views, Neeti Sharma, Co-founder of TeamLease Edtech, said that the enhanced UPI limit will make education-related transactions "more student-friendly". Boost to fintech sector During his presser, RBI Governor Shaktikanta Das also proposed to set-up a 'Fintech Repository', which is expected to help give a better understanding of developments in the Fintech ecosystem. "This will be operationalised by the Reserve Bank Innovation Hub in April 2024 or earlier," he added. Anand Agrawal, Co-Founder, Credgenics, called the proposal a "positive move", adding that it will act as a catalyst for further innovation in the fintech sector. "It will foster collaboration among fin-techs, financial services industry, and regulators. Encouraging voluntary contributions from fin-techs will empower regulators with real-time insights and enable informed, agile, and risk-mitigating decision-making," he said. Led by the UPI platform, India's fintech sector is making waves across the world. As per various reports, India's fintech sector is the third-largest and is among the fastest-growing in terms of funding and deal volumes. Helped by a robust Digital Public Infrastructure, consulting giant BCG predicts that Indian fintech revenues will grow 35 per cent each year to reach $190 billion by 2030.

India: RBI hiking UPI transaction limits gets an industry thumbs up

In a recent development, the Reserve Bank of India's monetary policy committee opted to maintain the policy repo rate at 6.5 percent. We delve beyond the numbers and decipher the implications for India's consumption-driven economy.

How RBI pause impacts consumers

India's Monetary Policy Committee (MPC) unanimously decided to keep interest rates unchanged for the fifth consecutive time.&nbsp;

The Reserve Bank of India left the repo rate at 6.5 per cent while taking into account easing inflationary pressures and robust economic growth data.

"The rate action so far is still working its way into the economy. Hence, the Monetary Policy Committee decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target while supporting growth," RBI Governor Shaktikanta Das said.&nbsp;

'Withdrawal of accommodation' is a term used by the central bank to denote a tighter monetary policy which reduces liquidity to control inflation.&nbsp;&nbsp;

The RBI hiked the repo rate from 4 per cent to 6.5 per cent between May 2022 and February 2023 before pausing the hikes.&nbsp;

The central bank retained its projection for retail (CPI) inflation – which includes food &amp; essential commodities – at 5.4 per cent for the current fiscal year, 2023-24.&nbsp;

However, inflation is expected to fall below five per cent by 2024, provided India receives normal rainfall.&nbsp;

"Policymakers have to be mindful of the risk of being carried away by a few months of good data or by the fact that CPI inflation has come within the target range," Das said, indicating that the RBI will continue to maintain a hawkish stance on inflation.&nbsp;

The Ukraine war disrupted the already distorted pandemic-led global supply chain, which led to high consumer inflation in India. However, things have eased out since then.&nbsp;

Retail inflation remained under the RBI's target range of 4-6% in October -- 4.87%. However, the central bank added that India is still far from bringing inflation under four per cent.&nbsp;

India is doing well, but headwinds remain

Das said the Indian economy presents a picture of 'resilience and momentum', pointing to the July-September quarter growth rate of 7.6 per cent that defied expectation.&nbsp;

"The fundamentals of the Indian economy remain strong... Consumer and business optimism create congenial conditions for sustained growth of the Indian economy," Das added.&nbsp;

The central bank also revised the real GDP growth rate for 2023-24 from 6.5 per cent to 7.0 per cent.&nbsp;

Improving rural demand, strengthening manufacturing activity, buoyancy in services, and government infrastructure spending could help India end the current financial year on a high.&nbsp;

Even with the bright economic forecast, challenges will persist in 2024 due to the fragile global economy.&nbsp;

"Elevated debt levels, geopolitical hostilities and extreme weather conditions remain risks to the inflation outlook," RBI Governor Shaktikanta Das said.

Uncertain food prices are likely to impact inflation in the near term, with elevated sugar prices likely to be a cause for concern.&nbsp;

What is the repo rate?

The repo rate or repurchase rate is when the central bank lends money to commercial banks in India. A change in the repo rate affects the money flow in the economy.&nbsp;

A cut in repo rate leads to increased money circulation -- colloquially called easy money policy. On the other hand, if the repo rate rises, money circulation is curtailed, and borrowing costs rise.&nbsp;

In India, the repo rate is a tool the central bank uses to curb economic inflation.

Industry&nbsp;speaks&nbsp;

Adhil Shetty, CEO of Bankbazaar, welcomed the pause in the repo rate, pointing out that a stable lending rate can encourage investments and foster economic growth.&nbsp;

The policy stability, he argued, may bolster buyer sentiments in the real estate sector.&nbsp;

"Existing borrowers can rest assured that their EMIs won't be immediately affected. Prospective homebuyers may find relief in the stable repo rate, allowing them to plan their moves without the imminent threat of rate hikes," he said.

Terming the rate pause 'hawkish', Bhuvan Rustagi, Co-Founder, Lendbox, added that the announcement is good news for Indian retail investors.

"While interest rates remain unchanged in the short term, a stable economic environment and controlled inflation can provide a positive long-term outlook for investment. Savings and Deposit rates are likely to remain stable which translates into a positive investment option for investors looking for stable returns," he said.&nbsp;

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India's Monetary Policy Committee (MPC) unanimously decided to keep interest rates unchanged for the fifth consecutive time. The Reserve Bank of India left the repo rate at 6.

India's Monetary Policy Committee (MPC) unanimously decided to keep interest rates unchanged for the fifth consecutive time. The Reserve Bank of India left the repo rate at 6.5 per cent while taking into account easing inflationary pressures and robust economic growth data. "The rate action so far is still working its way into the economy. Hence, the Monetary Policy Committee decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target while supporting growth," RBI Governor Shaktikanta Das said. 'Withdrawal of accommodation' is a term used by the central bank to denote a tighter monetary policy which reduces liquidity to control inflation. The RBI hiked the repo rate from 4 per cent to 6.5 per cent between May 2022 and February 2023 before pausing the hikes. The central bank retained its projection for retail (CPI) inflation – which includes food & essential commodities – at 5.4 per cent for the current fiscal year, 2023-24. However, inflation is expected to fall below five per cent by 2024, provided India receives normal rainfall. "Policymakers have to be mindful of the risk of being carried away by a few months of good data or by the fact that CPI inflation has come within the target range," Das said, indicating that the RBI will continue to maintain a hawkish stance on inflation. The Ukraine war disrupted the already distorted pandemic-led global supply chain, which led to high consumer inflation in India. However, things have eased out since then. Retail inflation remained under the RBI's target range of 4-6% in October -- 4.87%. However, the central bank added that India is still far from bringing inflation under four per cent. India is doing well, but headwinds remain Das said the Indian economy presents a picture of 'resilience and momentum', pointing to the July-September quarter growth rate of 7.6 per cent that defied expectation. "The fundamentals of the Indian economy remain strong... Consumer and business optimism create congenial conditions for sustained growth of the Indian economy," Das added. The central bank also revised the real GDP growth rate for 2023-24 from 6.5 per cent to 7.0 per cent. Improving rural demand, strengthening manufacturing activity, buoyancy in services, and government infrastructure spending could help India end the current financial year on a high. Even with the bright economic forecast, challenges will persist in 2024 due to the fragile global economy. "Elevated debt levels, geopolitical hostilities and extreme weather conditions remain risks to the inflation outlook," RBI Governor Shaktikanta Das said. Uncertain food prices are likely to impact inflation in the near term, with elevated sugar prices likely to be a cause for concern. What is the repo rate? The repo rate or repurchase rate is when the central bank lends money to commercial banks in India. A change in the repo rate affects the money flow in the economy. A cut in repo rate leads to increased money circulation -- colloquially called easy money policy. On the other hand, if the repo rate rises, money circulation is curtailed, and borrowing costs rise. In India, the repo rate is a tool the central bank uses to curb economic inflation. Industry speaks Adhil Shetty, CEO of Bankbazaar, welcomed the pause in the repo rate, pointing out that a stable lending rate can encourage investments and foster economic growth. The policy stability, he argued, may bolster buyer sentiments in the real estate sector. "Existing borrowers can rest assured that their EMIs won't be immediately affected. Prospective homebuyers may find relief in the stable repo rate, allowing them to plan their moves without the imminent threat of rate hikes," he said. Terming the rate pause 'hawkish', Bhuvan Rustagi, Co-Founder, Lendbox, added that the announcement is good news for Indian retail investors. "While interest rates remain unchanged in the short term, a stable economic environment and controlled inflation can provide a positive long-term outlook for investment. Savings and Deposit rates are likely to remain stable which translates into a positive investment option for investors looking for stable returns," he said. WATCH WION LIVE HERE

India's central bank keeps the pause on key rates

India's Monetary Policy committee decided to unanimously keep the key policy rates unchanged as growth in the world's fastest-growing major economy is resilient. While the outlook for inflation remains uncertain.

India keeps key rate unchanged despite the risk of inflation and rapid growth

More and more data points to the fact that tight lending and monetary policy have peaked and are now effectively bringing down inflation.

But as major central banks prepare to announce decisions next week, the Federal Reserve and Bank of England won't want to support the recent surge in rate-cut expectations in financial markets.

On Friday, the Reserve Bank of India sounded 'hawkish' compared to predictions for hints of policy easing.

The reason is concerns over elevated food inflation.

The other reason is they don't want to falter again as they did in 2021 when they called surging inflation "transitory."

After six consecutive rate hikes between April 2022 and February this year, the Reserve Bank of India has kept monetary policy on hold.

The likelihood the central bank hints at rate cuts was factored in before today's decision and comments from Governor Shaktikanta Das.

But RBI more or less dashed those expectations by sounding hawkish in its assessment of inflation.

<a href="https://www.wionews.com/business-economy/reserve-bank-of-indias-hawkish-pause-keeps-households-on-edge-667508">Read about RBI's policy </a><a href="https://www.wionews.com/business-economy/reserve-bank-of-indias-hawkish-pause-keeps-households-on-edge-667508">here</a><a href="https://www.wionews.com/business-economy/reserve-bank-of-indias-hawkish-pause-keeps-households-on-edge-667508">.</a>

Governor Das said rate cuts were off the table.

The deputy chief economist for emerging markets at Capital Economics, Shilan Shah, said, "The economy is performing exceptionally well, which limits any immediate need for looser policy."

US: Pushback from the Fed

At the FOMC meeting next week, it is generally anticipated that the Federal Reserve will maintain the Fed funds target range at 5.25–5.5 per cent.

Key Federal Reserve officials actively support the theory that monetary policy is sufficiently tight to drive inflation sustainably down to 2 per cent&nbsp;in the upcoming months, as evidenced by softer activity, cooling labour data, and benign inflation prints.

James Knightley, Chief International Economist at ING Markets, said, "The bigger story is likely to be contained in the individual Fed member forecasts – how far will they look to back the market perceptions that major rate cuts are on their way?"

"We strongly suspect there will be a lot of pushback here," he added.

Global central banks want to be ahead of the curve after dismissing rising price pressures as "transitory" in 2021.

Back then, the world underestimated surging inflation and had to react more aggressively when price pressures soared to multi-decade highs globally.

But bets in recent months have increased for global interest rates to ease next year.

Still, central banks worldwide will be in pain to stave off those expectations and, at the same time, stay away from sounding the alarm bells.

"We think the Fed will eventually shift to a more dovish stance, but this may not come until late in the first quarter of 2024," said ING's Knightley.

"The US economy continues to perform well for now, and the jobs market remains tight. However, there is growing evidence that the Federal Reserve's interest rate increases and the associated tightening of credit conditions are starting to have the desired effect. We look for 150bp of rate cuts in 2024, with a further 100bp in early 2025," he added.

Bank of England to push back, too

With the "higher for longer" mantra that central banks have been hammering home for months, financial markets are quickly giving up.

The Bank of England (BoE) has yet to be as active with its market repricing.

However, the BoE is beginning to raise the alarm with three rate cuts already scheduled for 2024.

Recently, Governor Andrew Bailey stated that he is "against assumptions that we're talking about cutting interest rates".

Those remarks came after the Bank strengthened its guidance in November, indicating that it anticipated rates to remain restrictive for "an extended period of time".

The fact that the data is at least beginning to trend in the right direction will also satisfy the BoE.

Inflation in services fell short of the Bank's most recent estimate. The market's assumption that the BoE will start cutting rates later than its European counterparts may be accurate.

Could the Bank take a step further and declare in the announcement next week that markets are overpricing the 2024 easing?

It has yet to make a statement like this since November 2022, at a volatile period in the market.

"Policymakers may be uneasy about the recent repricing of UK rate expectations, but central banks globally have learned the hard way over the last couple of years that trying to predict and commit to future policy, with relative certainty, is a fool's game," said James Smith, Developed Markets Economist at ING.

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More and more data points to the fact that tight lending and monetary policy have peaked and are now effectively bringing down inflation. But as major central banks prepare to announce decisions next week, the Federal Reserve and Bank of England won't want to support the recent surge in rate-cut expectations in financial markets.

More and more data points to the fact that tight lending and monetary policy have peaked and are now effectively bringing down inflation. But as major central banks prepare to announce decisions next week, the Federal Reserve and Bank of England won't want to support the recent surge in rate-cut expectations in financial markets. On Friday, the Reserve Bank of India sounded 'hawkish' compared to predictions for hints of policy easing. The reason is concerns over elevated food inflation. The other reason is they don't want to falter again as they did in 2021 when they called surging inflation "transitory." After six consecutive rate hikes between April 2022 and February this year, the Reserve Bank of India has kept monetary policy on hold. The likelihood the central bank hints at rate cuts was factored in before today's decision and comments from Governor Shaktikanta Das. But RBI more or less dashed those expectations by sounding hawkish in its assessment of inflation. Read about RBI's policy here. Governor Das said rate cuts were off the table. The deputy chief economist for emerging markets at Capital Economics, Shilan Shah, said, "The economy is performing exceptionally well, which limits any immediate need for looser policy." US: Pushback from the Fed At the FOMC meeting next week, it is generally anticipated that the Federal Reserve will maintain the Fed funds target range at 5.25–5.5 per cent. Key Federal Reserve officials actively support the theory that monetary policy is sufficiently tight to drive inflation sustainably down to 2 per cent in the upcoming months, as evidenced by softer activity, cooling labour data, and benign inflation prints. James Knightley, Chief International Economist at ING Markets, said, "The bigger story is likely to be contained in the individual Fed member forecasts – how far will they look to back the market perceptions that major rate cuts are on their way?" "We strongly suspect there will be a lot of pushback here," he added. Global central banks want to be ahead of the curve after dismissing rising price pressures as "transitory" in 2021. Back then, the world underestimated surging inflation and had to react more aggressively when price pressures soared to multi-decade highs globally. But bets in recent months have increased for global interest rates to ease next year. Still, central banks worldwide will be in pain to stave off those expectations and, at the same time, stay away from sounding the alarm bells. "We think the Fed will eventually shift to a more dovish stance, but this may not come until late in the first quarter of 2024," said ING's Knightley. "The US economy continues to perform well for now, and the jobs market remains tight. However, there is growing evidence that the Federal Reserve's interest rate increases and the associated tightening of credit conditions are starting to have the desired effect. We look for 150bp of rate cuts in 2024, with a further 100bp in early 2025," he added. Bank of England to push back, too With the "higher for longer" mantra that central banks have been hammering home for months, financial markets are quickly giving up. The Bank of England (BoE) has yet to be as active with its market repricing. However, the BoE is beginning to raise the alarm with three rate cuts already scheduled for 2024. Recently, Governor Andrew Bailey stated that he is "against assumptions that we're talking about cutting interest rates". Those remarks came after the Bank strengthened its guidance in November, indicating that it anticipated rates to remain restrictive for "an extended period of time". The fact that the data is at least beginning to trend in the right direction will also satisfy the BoE. Inflation in services fell short of the Bank's most recent estimate. The market's assumption that the BoE will start cutting rates later than its European counterparts may be accurate. Could the Bank take a step further and declare in the announcement next week that markets are overpricing the 2024 easing? It has yet to make a statement like this since November 2022, at a volatile period in the market. "Policymakers may be uneasy about the recent repricing of UK rate expectations, but central banks globally have learned the hard way over the last couple of years that trying to predict and commit to future policy, with relative certainty, is a fool's game," said James Smith, Developed Markets Economist at ING. WATCH WION LIVE HERE

Global central banks pushing back on rate cut expectations; why?

WION's Business Desk brings you this daily round-up of global stories from the world of business and economy.<o:p></o:p>

RBI policy: Reserve Bank of India's hawkish pause keeps households on edge<o:p></o:p>

The central bank of India maintained the 6.5 per&nbsp;cent key repo rate on Friday, but cautioned that there is still cause for concern regarding high food inflation.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/reserve-bank-of-indias-hawkish-pause-keeps-households-on-edge-667508">Read more here</a><o:p></o:p><o:p></o:p>

Gemini AI boosts Alphabet's stock as Google seeks to regain AI leadership from Microsoft<o:p></o:p>

Alphabet saw a 5.3 per cent increase in its stock price on Thursday as Wall Street hailed the release of Google's Gemini AI, a major step forward for the tech giant in its efforts to reclaim its position as the industry leader in artificial intelligence.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/gemini-ai-boosts-alphabets-stock-as-google-seeks-to-regain-ai-leadership-from-microsoft-667458">Read more here</a><o:p></o:p>

Paytm share price faces scrutiny amid strategic shifts &amp; analyst concerns<o:p></o:p>

Paytm’s share price showed signs of recovery on Thursday, though it remained the worst performer in the BSE500 pack.

<a href="https://www.wionews.com/business-economy/paytm-share-price-faces-scrutiny-amid-strategic-shifts-analyst-concerns-667459">Read more here</a><o:p></o:p>

Tata Power shares surges to new heights, crossing $11 billion market cap<o:p></o:p>

For the second session in a row, Tata Power's shares saw an all-time high of Rs 322.30 ($3.87) on Thursday, setting a new record.&nbsp; <o:p></o:p>

<a href="https://www.wionews.com/business-economy/tata-power-shares-surges-to-new-heights-crossing-11-billion-market-cap-667467">Read more here</a><o:p></o:p>

India shifts focus from ethanol to sugar production amid supply concerns<o:p></o:p>

India is considering steps to prevent the diversion of sugar for the production of ethanol in an effort to ensure sufficient supplies of the commodity amid worries about a possible decline in production owing to below-normal rainfall in important growing areas.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/india-shifts-focus-from-ethanol-to-sugar-production-amid-supply-concerns-667476">Read more here</a><o:p></o:p>

Argentina imposes limits on banks’ dollar holdings amid concerns over devaluation<o:p></o:p>

Argentina's central bank has placed limits on commercial lenders' foreign currency holdings in an effort to reduce the hoarding of US dollars and avert a predicted devaluation.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/argentina-imposes-limits-on-banks-dollar-holdings-amid-concerns-over-devaluation-667516">Read more here</a><o:p></o:p>

Russia's $11 bn end run around Western oil sanctions: Shadow fleet and deals unearthed<o:p></o:p>

Greece has unexpectedly become a centre for illicit oil trade, despite Western sanctions on Russia.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/boeing-signals-two-month-delay-to-737-production-ramp-up-report-667522">Read more here</a><o:p></o:p>

Boeing signals two-month delay to 737 production ramp-up: Report<o:p></o:p>

Boeing has announced a two-month delay in its plans to ramp up manufacturing of the 737 narrowbody airliner.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/boeing-signals-two-month-delay-to-737-production-ramp-up-report-667522">Read more here</a><o:p></o:p>

China's export rebound sparks hope, but challenges loom amid global economic uncertainties<o:p></o:p>

There’s good news for Chinese manufacturers as the country's exports increased by 0.5 per cent in November, which was the first increase in six months.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/chinas-export-rebound-sparks-hope-but-challenges-loom-amid-global-economic-uncertainties-667532">Read more here</a><o:p></o:p>

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WION's Business Desk brings you this daily round-up of global stories from the world of business and economy. RBI policy: Reserve Bank of India's hawkish pause keeps households on edge The central bank of India maintained the 6.

WION's Business Desk brings you this daily round-up of global stories from the world of business and economy. RBI policy: Reserve Bank of India's hawkish pause keeps households on edge The central bank of India maintained the 6.5 per cent key repo rate on Friday, but cautioned that there is still cause for concern regarding high food inflation. Read more here Gemini AI boosts Alphabet's stock as Google seeks to regain AI leadership from Microsoft Alphabet saw a 5.3 per cent increase in its stock price on Thursday as Wall Street hailed the release of Google's Gemini AI, a major step forward for the tech giant in its efforts to reclaim its position as the industry leader in artificial intelligence. Read more here Paytm share price faces scrutiny amid strategic shifts & analyst concerns Paytm’s share price showed signs of recovery on Thursday, though it remained the worst performer in the BSE500 pack. Read more here Tata Power shares surges to new heights, crossing $11 billion market cap For the second session in a row, Tata Power's shares saw an all-time high of Rs 322.30 ($3.87) on Thursday, setting a new record. Read more here India shifts focus from ethanol to sugar production amid supply concerns India is considering steps to prevent the diversion of sugar for the production of ethanol in an effort to ensure sufficient supplies of the commodity amid worries about a possible decline in production owing to below-normal rainfall in important growing areas. Read more here Argentina imposes limits on banks’ dollar holdings amid concerns over devaluation Argentina's central bank has placed limits on commercial lenders' foreign currency holdings in an effort to reduce the hoarding of US dollars and avert a predicted devaluation. Read more here Russia's $11 bn end run around Western oil sanctions: Shadow fleet and deals unearthed Greece has unexpectedly become a centre for illicit oil trade, despite Western sanctions on Russia. Read more here Boeing signals two-month delay to 737 production ramp-up: Report Boeing has announced a two-month delay in its plans to ramp up manufacturing of the 737 narrowbody airliner. Read more here China's export rebound sparks hope, but challenges loom amid global economic uncertainties There’s good news for Chinese manufacturers as the country's exports increased by 0.5 per cent in November, which was the first increase in six months. Read more here WATCH WION LIVE HERE

WION Business Wrap | RBI policy unchanged, Paytm shares prices face scrutiny & more

Tightening the reins on personal loans and credit cards, India’s central banks’ stricter rules are poised to reshape borrowing costs and challenge lenders. Concerns over the rapid growth in these segments led the RBI to instruct banks to set aside more capital. This decision follows repeated warnings from RBI governor Shaktikanta Das about the escalating risks associated with certain personal loans.

India’s central bank tightens rules on personal loans & credit cards

The latest bulletin by India's central bank offers a mixed about the state of India's economy. The Reserve Bank of India's monthly bulletin said that while consumer demand has been upbeat, a lot needs to be done on the inflation front.

RBI's forecast on growth & inflation | World Business Watch

The Reserve Bank of India (RBI), in its November bulletin released on Thursday, cautioned that while there has been a welcome relief in retail inflation over the past two months, India is "not out of the woods yet".&nbsp;

The report&nbsp;called the&nbsp;readings of around 5 per cent and 4.9 per cent in September and October, respectively,&nbsp;a relief from the higher average inflation rates recorded earlier in the year. However, it emphasised the need for continued vigilance, acknowledging that there still are challenges ahead despite the recent positive developments.

India's annual retail inflation eased to a four-month low of 4.87 per cent in October, a positive trend that the RBI acknowledged but noted that it remained above the central bank's 4 per cent target. The RBI expects inflation to average 5.4 per cent in the fiscal year 2023-24.

The discussion&nbsp;highlighted high-frequency food price data, indicating further increases in cereal and pulse prices, while edible oil prices continued to decline. The central bank remains watchful of these factors as they contribute to overall inflationary pressures.

Despite the inflation challenges, the RBI report 'State of the Economy' appointed to several robust economic fundamentals. India's growth, it noted, continues to rely on strong domestic demand, providing a buffer against external shocks. The country's external sector is considered viable, supported by a modest current account deficit, resilient capital flows, a stable currency, and healthy foreign exchange reserves.

The economic growth trajectory of India has shown positive momentum, with the central bank noting that the change in gross domestic product is expected to be sequentially higher in October-December due to "ebullient" festival demand. Investment demand also appears to be resilient, supported by the government's infrastructure spending, an uptick in private capital expenditure, and advancements in digitalisation.

In terms of monetary policy, the RBI highlighted the calibrated normalisation of surplus liquidity and robust credit growth during the current tightening phase. However, the transmission of rates is still not complete. The bulletin mentioned that while the transmission to term deposits has been robust, savings deposit rates have exhibited "rigidity," indicating a need for further adjustments in certain segments of the financial market to enhance the effectiveness of monetary policy measures.

(With inputs from Reuters)

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The Reserve Bank of India (RBI), in its November bulletin released on Thursday, cautioned that while there has been a welcome relief in retail inflation over the past two months, India is "not out of the woods yet".

The Reserve Bank of India (RBI), in its November bulletin released on Thursday, cautioned that while there has been a welcome relief in retail inflation over the past two months, India is "not out of the woods yet". The report called the readings of around 5 per cent and 4.9 per cent in September and October, respectively, a relief from the higher average inflation rates recorded earlier in the year. However, it emphasised the need for continued vigilance, acknowledging that there still are challenges ahead despite the recent positive developments. India's annual retail inflation eased to a four-month low of 4.87 per cent in October, a positive trend that the RBI acknowledged but noted that it remained above the central bank's 4 per cent target. The RBI expects inflation to average 5.4 per cent in the fiscal year 2023-24. The discussion highlighted high-frequency food price data, indicating further increases in cereal and pulse prices, while edible oil prices continued to decline. The central bank remains watchful of these factors as they contribute to overall inflationary pressures. Despite the inflation challenges, the RBI report 'State of the Economy' appointed to several robust economic fundamentals. India's growth, it noted, continues to rely on strong domestic demand, providing a buffer against external shocks. The country's external sector is considered viable, supported by a modest current account deficit, resilient capital flows, a stable currency, and healthy foreign exchange reserves. The economic growth trajectory of India has shown positive momentum, with the central bank noting that the change in gross domestic product is expected to be sequentially higher in October-December due to "ebullient" festival demand. Investment demand also appears to be resilient, supported by the government's infrastructure spending, an uptick in private capital expenditure, and advancements in digitalisation. In terms of monetary policy, the RBI highlighted the calibrated normalisation of surplus liquidity and robust credit growth during the current tightening phase. However, the transmission of rates is still not complete. The bulletin mentioned that while the transmission to term deposits has been robust, savings deposit rates have exhibited "rigidity," indicating a need for further adjustments in certain segments of the financial market to enhance the effectiveness of monetary policy measures. (With inputs from Reuters) WATCH WION LIVE HERE

RBI bulletin highlights inflation challenge despite boost in consumption

India's retail inflation experienced a downturn in October, reaching a four-month low and moving closer to the central bank's targeted 4 per cent, a level deemed necessary before considering interest rate reductions, Reuters reported. &nbsp;

The annual retail inflation rate decreased to 4.87 per cent in October, down from 5.02 per cent in the preceding month, aligning with the forecast of 4.80 per cent from a Reuters poll of 53 economists. Factors such as lower core inflation, excluding volatile food and energy prices, and a supportive base effect have contributed to the decline. &nbsp;

Although core inflation statistics are not publicly released by the Indian government, core inflation was projected to be between 4.20 and 4.28 percent, down from 4.5 per cent in September.&nbsp;

The food inflation component, constituting nearly half of the overall consumer price basket, remained relatively stable at 6.61 per cent in October, only slightly changed from an upwardly revised 6.62 per cent in September. October's inflation rate fell below the upper tolerance band of 2-6 per cent set by the Reserve Bank of India (RBI) for the second consecutive month. &nbsp;

Despite the apparent stability in inflation, analysts advocate a cautious approach. Reuters cited RBI Governor Shaktikanta Das, who, in a recent statement, highlighted the risks associated with potential spikes in food prices, considering India's susceptibility to recurrent and overlapping food price shocks.&nbsp;

While the recent data release indicates consistent inflation levels, economists, such as Madan Sabnavis from Bank of Baroda, recommend a cautious approach given the historical volatility in foodgrain prices, particularly driven by factors like an uneven monsoon. &nbsp;

The prices of key commodities like vegetables, milk, and cereals have demonstrated volatility and played a pivotal role in shaping India's inflation trends. &nbsp;

Aditi Nayar, an economist at ICRA, noted that while the uneven monsoon has contributed to the uptick in foodgrain prices in October, the higher prices of specific vegetables, such as onions, may be mitigated by the typical seasonal downtrend in other vegetables, providing some relief.&nbsp;

Predictions for the Consumer Price Index (CPI) inflation in the coming months suggest a climb to 5.6 per cent by December 2023. The inflation rate is anticipated to remain within a range of 4.9-5.6 per cent for the subsequent two quarters, according to Aditi Nayar. &nbsp;

In response to the surge in inflation observed in July, exceeding 7 per cent, India has implemented various measures to curb rising prices, including export bans on rice, wheat, sugar, and tightened restrictions on onion exports.&nbsp;

(With inputs from Reuters)&nbsp;

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India's retail inflation experienced a downturn in October, reaching a four-month low and moving closer to the central bank's targeted 4 per cent, a level deemed necessary before considering interest rate reductions, Reuters reported.

India's retail inflation experienced a downturn in October, reaching a four-month low and moving closer to the central bank's targeted 4 per cent, a level deemed necessary before considering interest rate reductions, Reuters reported. The annual retail inflation rate decreased to 4.87 per cent in October, down from 5.02 per cent in the preceding month, aligning with the forecast of 4.80 per cent from a Reuters poll of 53 economists. Factors such as lower core inflation, excluding volatile food and energy prices, and a supportive base effect have contributed to the decline. Although core inflation statistics are not publicly released by the Indian government, core inflation was projected to be between 4.20 and 4.28 percent, down from 4.5 per cent in September. The food inflation component, constituting nearly half of the overall consumer price basket, remained relatively stable at 6.61 per cent in October, only slightly changed from an upwardly revised 6.62 per cent in September. October's inflation rate fell below the upper tolerance band of 2-6 per cent set by the Reserve Bank of India (RBI) for the second consecutive month. Despite the apparent stability in inflation, analysts advocate a cautious approach. Reuters cited RBI Governor Shaktikanta Das, who, in a recent statement, highlighted the risks associated with potential spikes in food prices, considering India's susceptibility to recurrent and overlapping food price shocks. While the recent data release indicates consistent inflation levels, economists, such as Madan Sabnavis from Bank of Baroda, recommend a cautious approach given the historical volatility in foodgrain prices, particularly driven by factors like an uneven monsoon. The prices of key commodities like vegetables, milk, and cereals have demonstrated volatility and played a pivotal role in shaping India's inflation trends. Aditi Nayar, an economist at ICRA, noted that while the uneven monsoon has contributed to the uptick in foodgrain prices in October, the higher prices of specific vegetables, such as onions, may be mitigated by the typical seasonal downtrend in other vegetables, providing some relief. Predictions for the Consumer Price Index (CPI) inflation in the coming months suggest a climb to 5.6 per cent by December 2023. The inflation rate is anticipated to remain within a range of 4.9-5.6 per cent for the subsequent two quarters, according to Aditi Nayar. In response to the surge in inflation observed in July, exceeding 7 per cent, India has implemented various measures to curb rising prices, including export bans on rice, wheat, sugar, and tightened restrictions on onion exports. (With inputs from Reuters) WATCH WION LIVE HERE

India's retail inflation hits four-month low in October, nearing RBI's target 

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.39 crore ($650,000) on Paytm Payments Bank for its failure to comply with Know Your Customer (KYC) norms and other specific regulatory provisions, as explicitly revealed in a press release issued by the central bank. &nbsp;

“This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949," the press release said.&nbsp;

The penalty, according to the RBI's statement, is a response to Paytm Payments Bank's non-compliance with several key regulatory directives, including the 'Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016,' 'RBI Guidelines for Licensing of Payments Banks,' 'Cyber security framework in banks,' and 'Securing mobile banking applications including UPI ecosystem'.&nbsp;

It is essential to note that this penalty focuses solely on deficiencies in regulatory compliance and does not intend to assess the validity of any transactions or agreements between the bank and its customers, as emphasised by the RBI.&nbsp;

According to a Moneycontrol report, the action against Paytm Payments Bank was initiated following a comprehensive review by the RBI, which revealed several instances of non-compliance.&nbsp;

The bank failed to correctly identify the beneficial owner for entities utilising its payout services, omitted the monitoring of payout transactions and risk profiling for these entities, and exceeded the regulatory ceiling for the end-of-the-day balance in certain customer advance accounts related to payout services. The central bank's statement highlighted these transgressions, stating, "It was also revealed that the bank did not monitor payout transactions and carry out risk profiling of entities availing payout services."&nbsp;

Furthermore, the bank reported a cyber security incident with a delay, neglected to implement control measures related to 'SMS delivery receipt check,' and its Virtual Customer Identification Process (V-CIP) infrastructure did not prevent connections from IP addresses outside India. The RBI was unequivocal in its notice to Paytm Payments Bank, stating, "A notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the directions." &nbsp;

Following the bank's response to the notice and oral submissions made during a personal hearing, the RBI concluded that the charges of non-compliance were valid, thereby justifying the imposition of the monetary penalty.&nbsp;

In response to these developments, the central bank emphasised that this penalty is exclusively tied to regulatory violations, asserting that it should not be misinterpreted as a judgment on the validity of the bank's transactions or agreements with its customers.&nbsp;

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.39 crore ($650,000) on Paytm Payments Bank for its failure to comply with Know Your Customer (KYC) norms and other specific regulatory provisions, as explicitly revealed in a press release issued by the central bank.

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.39 crore ($650,000) on Paytm Payments Bank for its failure to comply with Know Your Customer (KYC) norms and other specific regulatory provisions, as explicitly revealed in a press release issued by the central bank. “This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949," the press release said. The penalty, according to the RBI's statement, is a response to Paytm Payments Bank's non-compliance with several key regulatory directives, including the 'Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016,' 'RBI Guidelines for Licensing of Payments Banks,' 'Cyber security framework in banks,' and 'Securing mobile banking applications including UPI ecosystem'. It is essential to note that this penalty focuses solely on deficiencies in regulatory compliance and does not intend to assess the validity of any transactions or agreements between the bank and its customers, as emphasised by the RBI. According to a Moneycontrol report, the action against Paytm Payments Bank was initiated following a comprehensive review by the RBI, which revealed several instances of non-compliance. The bank failed to correctly identify the beneficial owner for entities utilising its payout services, omitted the monitoring of payout transactions and risk profiling for these entities, and exceeded the regulatory ceiling for the end-of-the-day balance in certain customer advance accounts related to payout services. The central bank's statement highlighted these transgressions, stating, "It was also revealed that the bank did not monitor payout transactions and carry out risk profiling of entities availing payout services." Furthermore, the bank reported a cyber security incident with a delay, neglected to implement control measures related to 'SMS delivery receipt check,' and its Virtual Customer Identification Process (V-CIP) infrastructure did not prevent connections from IP addresses outside India. The RBI was unequivocal in its notice to Paytm Payments Bank, stating, "A notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the directions." Following the bank's response to the notice and oral submissions made during a personal hearing, the RBI concluded that the charges of non-compliance were valid, thereby justifying the imposition of the monetary penalty. In response to these developments, the central bank emphasised that this penalty is exclusively tied to regulatory violations, asserting that it should not be misinterpreted as a judgment on the validity of the bank's transactions or agreements with its customers.

RBI slaps Paytm Payments Bank with a massive penalty. Here's why 

World Bank Chief Economist Indermit Gill has expressed concerns about the weakening global economy, highlighting the US and India as relative bright spots in the midst of global economic challenges. &nbsp;

According to a Moneycontrol report Gill noted, "The good news is that there are a few bright spots like the US and India." These comments were made during a press conference on October 11, held before the annual meeting of the World Bank Group and the International Monetary Fund (IMF) in Marrakesh, Morocco.&nbsp;

Gill's remarks came just days after the World Bank maintained its growth forecast for India at 6.3 percent for 2023-24, despite persistent global headwinds. The IMF had also recently raised its growth forecast for India's current financial year by 20 basis points to 6.3 percent. The Reserve Bank of India (RBI) had projected a GDP growth rate of 6.5 percent for 2023-24 and 2024-25.&nbsp;

High-interest rates, however, pose a significant challenge to global growth, according to Gill. Moneycontrol reported that he expressed concerns about the impact of high interest rates, explaining that growth was slowing down significantly. He further noted that the main issue was that growth was decelerating to levels considerably below those observed before the crisis.&nbsp;

Gill emphasised the potential impact of high interest rates by drawing parallels with the 1970s when the US Federal Reserve increased rates, leading to economic difficulties in multiple countries. He cautioned, "We should expect some countries to get into trouble now."&nbsp;

In the past 18 months, the US Federal Reserve has raised its key interest rate by 500 basis points to combat high inflation caused by global commodity price spikes following the Russia-Ukraine conflict. Gill suggested that while some countries may not have high debt levels now, they could still face issues as public debt crowds out private investment, hampering growth.&nbsp;

As per media reports, World Bank President Ajay Banga added that he anticipates interest rates to remain "higher for longer," which could further complicate global economic dynamics.&nbsp;

The discussion also touched upon the debt challenges faced by low-income and vulnerable middle-income countries, which have become more prominent in the wake of the COVID-19 pandemic. The Common Framework was introduced to help these nations restructure their debt, but progress has been relatively slow. &nbsp;

When asked if the framework needed replacement, President Banga emphasised the importance of well-thought-out strategies and the need to address the debt issues on a case-by-case basis. He stressed the significance of finding comprehensive solutions to prevent recurring debt crises in the future.&nbsp;

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World Bank Chief Economist Indermit Gill has expressed concerns about the weakening global economy, highlighting the US and India as relative bright spots in the midst of global economic challenges.

World Bank Chief Economist Indermit Gill has expressed concerns about the weakening global economy, highlighting the US and India as relative bright spots in the midst of global economic challenges. According to a Moneycontrol report Gill noted, "The good news is that there are a few bright spots like the US and India." These comments were made during a press conference on October 11, held before the annual meeting of the World Bank Group and the International Monetary Fund (IMF) in Marrakesh, Morocco. Gill's remarks came just days after the World Bank maintained its growth forecast for India at 6.3 percent for 2023-24, despite persistent global headwinds. The IMF had also recently raised its growth forecast for India's current financial year by 20 basis points to 6.3 percent. The Reserve Bank of India (RBI) had projected a GDP growth rate of 6.5 percent for 2023-24 and 2024-25. High-interest rates, however, pose a significant challenge to global growth, according to Gill. Moneycontrol reported that he expressed concerns about the impact of high interest rates, explaining that growth was slowing down significantly. He further noted that the main issue was that growth was decelerating to levels considerably below those observed before the crisis. Gill emphasised the potential impact of high interest rates by drawing parallels with the 1970s when the US Federal Reserve increased rates, leading to economic difficulties in multiple countries. He cautioned, "We should expect some countries to get into trouble now." In the past 18 months, the US Federal Reserve has raised its key interest rate by 500 basis points to combat high inflation caused by global commodity price spikes following the Russia-Ukraine conflict. Gill suggested that while some countries may not have high debt levels now, they could still face issues as public debt crowds out private investment, hampering growth. As per media reports, World Bank President Ajay Banga added that he anticipates interest rates to remain "higher for longer," which could further complicate global economic dynamics. The discussion also touched upon the debt challenges faced by low-income and vulnerable middle-income countries, which have become more prominent in the wake of the COVID-19 pandemic. The Common Framework was introduced to help these nations restructure their debt, but progress has been relatively slow. When asked if the framework needed replacement, President Banga emphasised the importance of well-thought-out strategies and the need to address the debt issues on a case-by-case basis. He stressed the significance of finding comprehensive solutions to prevent recurring debt crises in the future. WATCH WION LIVE HERE

World Bank chief economist highlights global economic concerns; US & India positive exceptions

Recent data from the Reserve Bank of India (RBI) reveals a concerning trend in Indian household savings, painting a picture of an income crisis amidst rising costs of living.

Here's what the data tells us in simple terms:

Declining Savings:

In the fiscal year 2023, household net financial savings (which means savings after accounting for debts) shrank by 19%, showing a drop in people's ability to save money. This is in contrast to a 2% average growth over the previous four years.

Borrowing on the Rise:

People are borrowing more to bridge the gap between their income and expenses. In FY23, non-mortgage borrowing, excluding housing loans, shot up by 99%. This indicates that more individuals are turning to loans to maintain their lifestyles, compared to the 24% average increase over four years.

Slow Income Growth:

Despite an 8.9% increase in private consumption spending over four years, when adjusted for inflation, it amounts to a meager 3.2% growth in real terms. The estimated real income growth is just 2.9%, one of the slowest in 40 years.

Assets vs. Liabilities:

While financial assets like deposits, mutual funds, and equities grew by 13.9% in FY23, financial liabilities, or debts, grew even faster at 75.5%. This means that the increase in savings is overshadowed by the surge in debts.

Physical Savings:

The physical savings of households, which include investments in tangible assets, only grew by 6.2%, indicating a struggle to save money beyond their immediate expenses.

Consumer Lending on the Rise:

Home loans are no longer the dominant form of lending. Instead, there is an increase in consumer lending. Outstanding retail loans of banks have hit a 30-year high at 30% in FY23, while the contribution of home loans has fallen from 56% in FY16 to 47% in FY23.

In summary, Indian households are facing an income challenge, where they are struggling to save while simultaneously grappling with the rising cost of living. As a result, they are resorting to loans to sustain their lifestyles. This trend has led to one of the slowest income growth rates in 40 years, suggesting that a significant portion of the population is finding it hard to make ends meet.

The data reveals the structural fragility of the Indian economy, with income growth consistently trailing behind consumption growth, making this one of the longest phases of income shortfall in decades. This situation underscores the need for measures to boost income and ensure that households can save and invest for their future, thus achieving financial stability.

Recent data from the Reserve Bank of India (RBI) reveals a concerning trend in Indian household savings, painting a picture of an income crisis amidst rising costs of living.

Recent data from the Reserve Bank of India (RBI) reveals a concerning trend in Indian household savings, painting a picture of an income crisis amidst rising costs of living. Here's what the data tells us in simple terms: Declining Savings: In the fiscal year 2023, household net financial savings (which means savings after accounting for debts) shrank by 19%, showing a drop in people's ability to save money. This is in contrast to a 2% average growth over the previous four years. Borrowing on the Rise: People are borrowing more to bridge the gap between their income and expenses. In FY23, non-mortgage borrowing, excluding housing loans, shot up by 99%. This indicates that more individuals are turning to loans to maintain their lifestyles, compared to the 24% average increase over four years. Slow Income Growth: Despite an 8.9% increase in private consumption spending over four years, when adjusted for inflation, it amounts to a meager 3.2% growth in real terms. The estimated real income growth is just 2.9%, one of the slowest in 40 years. Assets vs. Liabilities: While financial assets like deposits, mutual funds, and equities grew by 13.9% in FY23, financial liabilities, or debts, grew even faster at 75.5%. This means that the increase in savings is overshadowed by the surge in debts. Physical Savings: The physical savings of households, which include investments in tangible assets, only grew by 6.2%, indicating a struggle to save money beyond their immediate expenses. Consumer Lending on the Rise: Home loans are no longer the dominant form of lending. Instead, there is an increase in consumer lending. Outstanding retail loans of banks have hit a 30-year high at 30% in FY23, while the contribution of home loans has fallen from 56% in FY16 to 47% in FY23. In summary, Indian households are facing an income challenge, where they are struggling to save while simultaneously grappling with the rising cost of living. As a result, they are resorting to loans to sustain their lifestyles. This trend has led to one of the slowest income growth rates in 40 years, suggesting that a significant portion of the population is finding it hard to make ends meet. The data reveals the structural fragility of the Indian economy, with income growth consistently trailing behind consumption growth, making this one of the longest phases of income shortfall in decades. This situation underscores the need for measures to boost income and ensure that households can save and invest for their future, thus achieving financial stability.

News In Numbers: Worrying income and spending trends in India

The Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday that the monetary policy committee (MPC) has opted to maintain the policy repo rate at 6.50 per cent, marking the fourth consecutive time the rate remains unchanged.

In his policy statement, The Indian Express quoted Das as saying, "After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, RBI's Monetary Policy Committee decided unanimously to keep the Policy Repo Rate unchanged at 6.5 per cent."

He emphasised the importance of both macroeconomic stability and inclusive growth, asserting that the combination of policies implemented in recent years, despite facing numerous and unprecedented challenges, had contributed to the achievement of stability in both macroeconomics and finance.

Das noted that India has transitioned from the twin balance sheet stress of a decade ago to a twin balance sheet advantage, with both banks and corporate demonstrating healthier financial positions.

Reacting to the RBI's decision to continue with the rate pause, Adhil Shetty, CEO of Bankbazaar.com, said, "The Reserve Bank of India expectedly kept the policy rates paused in its monetary policy review for October.&nbsp;This is welcome, although inflation is expected to remain elevated for longer than anticipated."

According to Shetty, interest rates and inflation are moving in a positive direction with limited upward risks. Additionally, he noted that the central bank intends to maintain control over growth expectations through various monetary policy tools.

This decision comes as the RBI continues to grapple with keeping retail inflation within the target of 4 per cent. While India's retail inflation eased to 6.83 per cent in August, Das acknowledged that it remains above the upper limit of RBI's tolerance band, highlighting concerns about inflation.

While the RBI governor anticipates a potential easing of retail inflation in September, the decline in kharif sowing poses a potential threat. The RBI has maintained its CPI-based inflation forecast for FY24 at 5.4 per cent.

In terms of GDP, the RBI has retained its forecast, expecting real gross domestic product (GDP) to grow at 6.5 per cent for the fiscal year 2023-24 (FY24).

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The Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday that the monetary policy committee (MPC) has opted to maintain the policy repo rate at 6.

The Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday that the monetary policy committee (MPC) has opted to maintain the policy repo rate at 6.50 per cent, marking the fourth consecutive time the rate remains unchanged. In his policy statement, The Indian Express quoted Das as saying, "After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, RBI's Monetary Policy Committee decided unanimously to keep the Policy Repo Rate unchanged at 6.5 per cent." He emphasised the importance of both macroeconomic stability and inclusive growth, asserting that the combination of policies implemented in recent years, despite facing numerous and unprecedented challenges, had contributed to the achievement of stability in both macroeconomics and finance. Das noted that India has transitioned from the twin balance sheet stress of a decade ago to a twin balance sheet advantage, with both banks and corporate demonstrating healthier financial positions. Reacting to the RBI's decision to continue with the rate pause, Adhil Shetty, CEO of Bankbazaar.com, said, "The Reserve Bank of India expectedly kept the policy rates paused in its monetary policy review for October. This is welcome, although inflation is expected to remain elevated for longer than anticipated." According to Shetty, interest rates and inflation are moving in a positive direction with limited upward risks. Additionally, he noted that the central bank intends to maintain control over growth expectations through various monetary policy tools. This decision comes as the RBI continues to grapple with keeping retail inflation within the target of 4 per cent. While India's retail inflation eased to 6.83 per cent in August, Das acknowledged that it remains above the upper limit of RBI's tolerance band, highlighting concerns about inflation. While the RBI governor anticipates a potential easing of retail inflation in September, the decline in kharif sowing poses a potential threat. The RBI has maintained its CPI-based inflation forecast for FY24 at 5.4 per cent. In terms of GDP, the RBI has retained its forecast, expecting real gross domestic product (GDP) to grow at 6.5 per cent for the fiscal year 2023-24 (FY24). WATCH WION LIVE HERE

RBI holds repo rate steady at 6.5 per cent for the fourth time, inflation remains a concern

India’s central bank, the Reserve Bank of India (RBI) on Saturday (Sep 30), extended the deadline to exchange and deposit Rs 2,000 bank notes by another week, i.e. till Oct 7.

“It has been decided to extend the current arrangement for deposit/exchange of Rs 2,000 banknotes until October 07, 2023,” the central bank said in a statement.

RBI said that the Rs 2,000 notes “shall continue to be legal tender” even beyond October 7, but asked the public to deposit or exchange the notes “without any further delay”.

From October 8, the deposit, and exchange facilities at bank branches will be halted, and people will have to get them exchanged at 19 offices of RBI, the statement further added.

The people have so far returned Rs 3.42 lakh crore of Rs 2,000 notes since the announcement to withdraw these notes was made on May 19, the RBI said in a statement.

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Earlier, the deadline to deposit or exchange Rs 2,000 notes was September 30, 2023.

Also read:&nbsp;<a href="https://www.wionews.com/india-news/amid-row-with-canada-over-nijjars-murder-indias-jaishankar-urges-ottawa-to-share-specifics-641110">In Nijjar murder row with Canada, India's foreign minister Jaishankar urges Ottawa to share specifics</a>

Last month, the RBI said that about 93 per cent of the Rs 2,000 banknotes were returned to the banking system since the central bank decided to withdraw the specific banknote from circulation in the month of May.&nbsp;

<h2>RBI withdraws Rs 2,000 currency note from circulation</h2>

The Rs 2000 currency note was introduced in November 2016 after Prime Minister Narendra Modi-led government had demonetised the old Rs 1,000 and Rs 500 notes in its crusade against black money. It was introduced primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1000 banknotes.

The objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities and therefore, printing of ₹2000 banknotes was stopped in 2018-19, the RBI had said in a press statement.&nbsp;

“The exchange facility for Rs 2,000 banknotes up to Rs 20,000 at a time would be available from May 23,” the RBI had said, further advising the banks to stop issuing Rs 2,000 denomination banknotes with immediate effect.

(With inputs from agencies)

 
&nbsp;

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India’s central bank, the Reserve Bank of India (RBI) on Saturday (Sep 30), extended the deadline to exchange and deposit Rs 2,000 bank notes by another week, i.

India’s central bank, the Reserve Bank of India (RBI) on Saturday (Sep 30), extended the deadline to exchange and deposit Rs 2,000 bank notes by another week, i.e. till Oct 7. “It has been decided to extend the current arrangement for deposit/exchange of Rs 2,000 banknotes until October 07, 2023,” the central bank said in a statement. RBI said that the Rs 2,000 notes “shall continue to be legal tender” even beyond October 7, but asked the public to deposit or exchange the notes “without any further delay”. From October 8, the deposit, and exchange facilities at bank branches will be halted, and people will have to get them exchanged at 19 offices of RBI, the statement further added. The people have so far returned Rs 3.42 lakh crore of Rs 2,000 notes since the announcement to withdraw these notes was made on May 19, the RBI said in a statement. Rs 2,000 notes shall continue to be legal tender even after Oct 7, but can be exchanged only at RBI offices, says Central bank — Press Trust of India (@PTI_News) September 30, 2023 × Earlier, the deadline to deposit or exchange Rs 2,000 notes was September 30, 2023. Also read: In Nijjar murder row with Canada, India's foreign minister Jaishankar urges Ottawa to share specifics Last month, the RBI said that about 93 per cent of the Rs 2,000 banknotes were returned to the banking system since the central bank decided to withdraw the specific banknote from circulation in the month of May. RBI withdraws Rs 2,000 currency note from circulation The Rs 2000 currency note was introduced in November 2016 after Prime Minister Narendra Modi-led government had demonetised the old Rs 1,000 and Rs 500 notes in its crusade against black money. It was introduced primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1000 banknotes. The objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities and therefore, printing of ₹2000 banknotes was stopped in 2018-19, the RBI had said in a press statement. “The exchange facility for Rs 2,000 banknotes up to Rs 20,000 at a time would be available from May 23,” the RBI had said, further advising the banks to stop issuing Rs 2,000 denomination banknotes with immediate effect. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India’s central bank RBI extends deadline to exchange, deposit Rs 2,000 banknotes

The Reserve Bank of India (RBI) will likely keep its policy rates unchanged for the fourth consecutive time at the upcoming bi-monthly monetary policy review meeting in early October.

This stance is expected due to persistently high retail inflation and the U.S. Federal Reserve's commitment to a hawkish stance, according to government sources.

The RBI had previously raised the benchmark repo rate to 6.5 per cent on February 8, 2023, and has maintained it at this level since; citing concerns about rigid retail inflation and global factors, including hiked prices for crude oil.

Madan Sabnavis, Chief Economist at Bank of Baroda, said&nbsp;that the RBI would maintain the status quo due to high inflation and tight liquidity.

He noted, "In fact, going by RBI forecast on inflation, it would be above 5 per cent in Q3 too, which will ensure that the status quo prevails for the calendar year for sure and probably Q4 too."

Sabnavis also highlighted uncertainties surrounding the Kharif crop, particularly in pulses, which could lead to price hikes.

Retail inflation based on the Consumer Price Index (CPI) decreased somewhat from 7.44 percent in July to 6.83 percent in August, although it still exceeded the RBI's comfort level of 6 percent. The government has given the RBI a target of keeping inflation at 4 per cent with a 2 per cent margin on each side.

Expecting a further reduction in CPI inflation to 5.3-5.5 per cent in September 2023, Aditi Nayar, Chief Economist at ICRA Limited, said that there are “upside risks to food inflation due to uneven and sub-par monsoons and low reservoir levels affecting Kharif yields and Rabi sowing.”

The Reserve Bank's projections indicate CPI inflation at 5.4 per cent for 2023-24, with Q2 at 6.2 per cent, Q3 at 5.7 per cent, and Q4 at 5.2 per cent, with risks evenly balanced. CPI inflation for Q1, 2024-25 is projected at 5.2 per cent. The RBI primarily considers CPI-based inflation in its monetary policy decisions.

Sanjay Bhutani, Director of the Medical Technology Association of India (MTaI), called for the RBI to contemplate an interest rate reduction to stimulate growth, given the market sentiment of retaining the benchmark interest rate at 6.5 per cent. He also suggested that if a rate reduction is not feasible due to high retail inflation and the Federal Reserve's hawkish stance, the RBI should provide a clear indication of future rate easing, which would benefit sectors like medical technology.

Sandeep Bagla, CEO of Trust Mutual Fund, acknowledged that the interest rate environment has&nbsp;deteriorated since the last MPC policy review in August. With both the U.S. and Indian economies growth and inflation rising to alarming levels, he expects the MPC to maintain the existing repo rates. However, Bagla said that headline inflation is expected to decrease in the next few month.

The Reserve Bank has maintained the repo rate at 6.5 per cent since February, following the earlier increase from 6.25 per cent. In subsequent bi-monthly policy reviews in April, June, and August, the benchmark rate remained the same.

The Monetary Policy Committee (MPC) comprises three external members and three RBI officials, with its next meeting scheduled for October 4-6, 2023.

Governor Das leads the committee. Other RBI officials&nbsp;include&nbsp;Rajiv Ranjan (Executive Director) and Michael Debabrata Patra (Deputy Governor). External members include Shashanka Bhide, Ashima Goyal, and Jayanth R. Varma.

(With inputs from PTI)

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The Reserve Bank of India (RBI) will likely keep its policy rates unchanged for the fourth consecutive time at the upcoming bi-monthly monetary policy review meeting in early October.

The Reserve Bank of India (RBI) will likely keep its policy rates unchanged for the fourth consecutive time at the upcoming bi-monthly monetary policy review meeting in early October. This stance is expected due to persistently high retail inflation and the U.S. Federal Reserve's commitment to a hawkish stance, according to government sources. The RBI had previously raised the benchmark repo rate to 6.5 per cent on February 8, 2023, and has maintained it at this level since; citing concerns about rigid retail inflation and global factors, including hiked prices for crude oil. Madan Sabnavis, Chief Economist at Bank of Baroda, said that the RBI would maintain the status quo due to high inflation and tight liquidity. He noted, "In fact, going by RBI forecast on inflation, it would be above 5 per cent in Q3 too, which will ensure that the status quo prevails for the calendar year for sure and probably Q4 too." Sabnavis also highlighted uncertainties surrounding the Kharif crop, particularly in pulses, which could lead to price hikes. Retail inflation based on the Consumer Price Index (CPI) decreased somewhat from 7.44 percent in July to 6.83 percent in August, although it still exceeded the RBI's comfort level of 6 percent. The government has given the RBI a target of keeping inflation at 4 per cent with a 2 per cent margin on each side. Expecting a further reduction in CPI inflation to 5.3-5.5 per cent in September 2023, Aditi Nayar, Chief Economist at ICRA Limited, said that there are “upside risks to food inflation due to uneven and sub-par monsoons and low reservoir levels affecting Kharif yields and Rabi sowing.” The Reserve Bank's projections indicate CPI inflation at 5.4 per cent for 2023-24, with Q2 at 6.2 per cent, Q3 at 5.7 per cent, and Q4 at 5.2 per cent, with risks evenly balanced. CPI inflation for Q1, 2024-25 is projected at 5.2 per cent. The RBI primarily considers CPI-based inflation in its monetary policy decisions. Sanjay Bhutani, Director of the Medical Technology Association of India (MTaI), called for the RBI to contemplate an interest rate reduction to stimulate growth, given the market sentiment of retaining the benchmark interest rate at 6.5 per cent. He also suggested that if a rate reduction is not feasible due to high retail inflation and the Federal Reserve's hawkish stance, the RBI should provide a clear indication of future rate easing, which would benefit sectors like medical technology. Sandeep Bagla, CEO of Trust Mutual Fund, acknowledged that the interest rate environment has deteriorated since the last MPC policy review in August. With both the U.S. and Indian economies growth and inflation rising to alarming levels, he expects the MPC to maintain the existing repo rates. However, Bagla said that headline inflation is expected to decrease in the next few month. The Reserve Bank has maintained the repo rate at 6.5 per cent since February, following the earlier increase from 6.25 per cent. In subsequent bi-monthly policy reviews in April, June, and August, the benchmark rate remained the same. The Monetary Policy Committee (MPC) comprises three external members and three RBI officials, with its next meeting scheduled for October 4-6, 2023. Governor Das leads the committee. Other RBI officials include Rajiv Ranjan (Executive Director) and Michael Debabrata Patra (Deputy Governor). External members include Shashanka Bhide, Ashima Goyal, and Jayanth R. Varma. (With inputs from PTI) WATCH WION LIVE HERE

RBI expected to maintain interest rates amid high inflation & global factors: Report

Deputy governor of the Reserve Bank of India, Michael Debbrata Patra delivered a speech in Cambodia, where he described the changing financial sector of the nation and its importance to India's ambitious economic growth.

India’s central bank deputy governor assesses country’s economy

According to economists, the second half of this fiscal year will likely see a continued lack of liquidity in India's banking system as loan growth and currency note circulation increase.

As per data from the Reserve Bank of India, the nation's banks liquidity fell into deficit on Tuesday for the first time in more than three years.

A growing liquidity gap would cause short-term borrowing costs to increase, forcing the Reserve Bank of India to reduce its currency market operations and use repo auctions to inject cash into the banking sector.

Reuters quoted Vivek Kumar, an economist from QuantEco Research as saying, "the start of the festive season and expectation of sequential improvement in economic growth would increase transactional demand for cash."

According to Kumar, this might cause the amount of money in circulation to increase by 2.2–2.4 trillion Indian rupees ($27.52–$30.02 billion) in the second half of the fiscal year.

In the meantime, despite high tax collections, government expenditure, which increases market liquidity, has been slower than anticipated.

&nbsp;Gaura Sen Gupta, an economist of IDFC First Bank, told Reuters, "This combination of slow pick-up in government expenditure and buoyant tax collection is reflected in government cash balance."

Early April marked the beginning of the fiscal year with a liquidity surplus of more than 8 trillion rupees. A "multi-year" procedure will be involved in the removal of liquidity, the RBI had stated at the time.

The structural deficit reached 218 billion rupees on Tuesday, its largest level since May 2019, and the recent tax outflows further reduced liquidity.

The government's cash balance is included in the core systemic liquidity surplus, which Kumar claims peaked at 12 trillion rupees in September 2021 but has since dramatically decreased to 3.9 trillion rupees.

According to him, the RBI's dollar sales to counteract the rupee's decline account for more over half of this shortfall.

A negative balance of payments has affected liquidity generally.

As of March 2022, India's balance of payments was $16 billion in deficit, and analysts predict that the gap will continue to grow over the coming quarters. The central bank must sell dollars into the market due to a sizable deficit, which drains rupee liquidity.

Between January and July, the RBI sold a net amount of almost $39 billion from its foreign exchange reserves, causing the reserves to drop to a two-year low of $551 billion as of September 9, according to data.

According to Soumyajit Niyogi, director of India Ratings, "liquidity tightness will continue to persist unless we see reasonable improvement in the balance of payment deficit."

(With inputs from Reuters)

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According to economists, the second half of this fiscal year will likely see a continued lack of liquidity in India's banking system as loan growth and currency note circulation increase.

According to economists, the second half of this fiscal year will likely see a continued lack of liquidity in India's banking system as loan growth and currency note circulation increase. As per data from the Reserve Bank of India, the nation's banks liquidity fell into deficit on Tuesday for the first time in more than three years. A growing liquidity gap would cause short-term borrowing costs to increase, forcing the Reserve Bank of India to reduce its currency market operations and use repo auctions to inject cash into the banking sector. Reuters quoted Vivek Kumar, an economist from QuantEco Research as saying, "the start of the festive season and expectation of sequential improvement in economic growth would increase transactional demand for cash." According to Kumar, this might cause the amount of money in circulation to increase by 2.2–2.4 trillion Indian rupees ($27.52–$30.02 billion) in the second half of the fiscal year. In the meantime, despite high tax collections, government expenditure, which increases market liquidity, has been slower than anticipated. Gaura Sen Gupta, an economist of IDFC First Bank, told Reuters, "This combination of slow pick-up in government expenditure and buoyant tax collection is reflected in government cash balance." Early April marked the beginning of the fiscal year with a liquidity surplus of more than 8 trillion rupees. A "multi-year" procedure will be involved in the removal of liquidity, the RBI had stated at the time. The structural deficit reached 218 billion rupees on Tuesday, its largest level since May 2019, and the recent tax outflows further reduced liquidity. The government's cash balance is included in the core systemic liquidity surplus, which Kumar claims peaked at 12 trillion rupees in September 2021 but has since dramatically decreased to 3.9 trillion rupees. According to him, the RBI's dollar sales to counteract the rupee's decline account for more over half of this shortfall. A negative balance of payments has affected liquidity generally. As of March 2022, India's balance of payments was $16 billion in deficit, and analysts predict that the gap will continue to grow over the coming quarters. The central bank must sell dollars into the market due to a sizable deficit, which drains rupee liquidity. Between January and July, the RBI sold a net amount of almost $39 billion from its foreign exchange reserves, causing the reserves to drop to a two-year low of $551 billion as of September 9, according to data. According to Soumyajit Niyogi, director of India Ratings, "liquidity tightness will continue to persist unless we see reasonable improvement in the balance of payment deficit." (With inputs from Reuters) WATCH WION LIVE HERE

Analysts predict India’s banking system’s liquidity to stay in deficit for the second half: Report

As per a report by the Reserve Bank of India (RBI) on the state of the economy, India's headline retail inflation is anticipated to decline in September, with room for further corrections in vegetable prices, Moneycontrol reported on Monday.

The report published on September 18 indicated that, headline inflation had slowed down from its peak in August compared to a month earlier, offering a small silver lining to domestic events. It further stated that the ebbing was driven by reversal in the prices of vegetables and that there were preliminary signs of corrections in a wide range of vegetable prices that go beyond the TOP (Tomatoes, Onions, and Potatoes) group.

Vegetable prices decreased somewhat in August compared to the prior month, which resulted in a decrease in India's headline retail inflation rate to 6.83 per cent. Food inflation decreased to 9.94 per cent in August from 11.51 per cent in July as the Consumer Food Price Index fell 0.7 per cent month over month, indicating a downward trend in price momentum. Vegetables, whose index fell 5.9 percent from July, were the main component of food where prices fell.

According to CPI data, the index declined 21.7 per cent month over month in August, reflecting the sharp decline in tomato retail prices. However, the price index for potatoes increased by 2.3 percent from July while the index for onions increased by 12.3 per cent.

According to the official projection from the RBI, average CPI inflation will be 6.2 per cent from July to September, 5.7 per cent from October to December, and 5.2 per cent in each of the first two quarters of 2024. The last time inflation fell below the central bank's medium-term target of 4 per cent was in September 2019, when it registered at 3.99 per cent.

The September print, which will be made public on October 12, is expected to fully reflect the impact of the continuous decrease in vegetable prices, according to economists. Additionally, they anticipate that the decrease in LPG prices will moderate the impact on the main retail figure.

The report further stated that, a stabilising core inflation shows a general lessening of price pressures in the economy, which is a crucial development for the conduct of monetary policy.

Core inflation, which includes prices for food and fuel, fell once again in August, easing down to 4.8 per cent from 4.9 per cent in July.

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As per a report by the Reserve Bank of India (RBI) on the state of the economy, India's headline retail inflation is anticipated to decline in September, with room for further corrections in vegetable prices, Moneycontrol reported on Monday.

As per a report by the Reserve Bank of India (RBI) on the state of the economy, India's headline retail inflation is anticipated to decline in September, with room for further corrections in vegetable prices, Moneycontrol reported on Monday. The report published on September 18 indicated that, headline inflation had slowed down from its peak in August compared to a month earlier, offering a small silver lining to domestic events. It further stated that the ebbing was driven by reversal in the prices of vegetables and that there were preliminary signs of corrections in a wide range of vegetable prices that go beyond the TOP (Tomatoes, Onions, and Potatoes) group. Vegetable prices decreased somewhat in August compared to the prior month, which resulted in a decrease in India's headline retail inflation rate to 6.83 per cent. Food inflation decreased to 9.94 per cent in August from 11.51 per cent in July as the Consumer Food Price Index fell 0.7 per cent month over month, indicating a downward trend in price momentum. Vegetables, whose index fell 5.9 percent from July, were the main component of food where prices fell. According to CPI data, the index declined 21.7 per cent month over month in August, reflecting the sharp decline in tomato retail prices. However, the price index for potatoes increased by 2.3 percent from July while the index for onions increased by 12.3 per cent. According to the official projection from the RBI, average CPI inflation will be 6.2 per cent from July to September, 5.7 per cent from October to December, and 5.2 per cent in each of the first two quarters of 2024. The last time inflation fell below the central bank's medium-term target of 4 per cent was in September 2019, when it registered at 3.99 per cent. The September print, which will be made public on October 12, is expected to fully reflect the impact of the continuous decrease in vegetable prices, according to economists. Additionally, they anticipate that the decrease in LPG prices will moderate the impact on the main retail figure. The report further stated that, a stabilising core inflation shows a general lessening of price pressures in the economy, which is a crucial development for the conduct of monetary policy. Core inflation, which includes prices for food and fuel, fell once again in August, easing down to 4.8 per cent from 4.9 per cent in July. WATCH WION LIVE HERE

RBI Bulletin: A further decline in vegetable prices could lower September's CPI inflation

Kotak Mahindra Bank unbelievably announced on September 1 that its founder and CEO – Uday Kotak, the visionary who built one of India’s leading banks from scratch, is stepping down from his position as CEO and appointing a new leadership, months before his contract was set to legally expire.&nbsp;

As this transition begins, we take a look back at Kotak’s journey to fame and the path taken by the bank that bears his name.&nbsp;

Uday Kotak’s early life&nbsp;

Born in Mumbai on March 15, 1959, Uday Kotak hails from an upper-middle-class Gujarati Lohana joint family that engaged in cotton trading. After Partition, his father left Karachi and came back to India. He grew up in Babulnath in a large joint family in a home with 60 people living under one roof.&nbsp;

Uday was always passionate about cricket and wanted to build a career as a cricketer. He was a talented player who captained his college team while pursuing his MBA at Jamnalal Bajaj Institute. He was struck in the head by a ball during a Kanga League game; it took him several months to recover and he missed a year of college.&nbsp;

The launch of Kotak Mahindra Finance&nbsp;

After abandoning his dreams to become a cricketer and completing his MBA, Uday chose to launch his own little financial agency at the Navsari building premises using a 300-square-foot office space that his father had provided him.&nbsp;

Uday obtained a small loan from his family and friends to launch his finance and bill discounting firm. His closest friend, Anand Mahindra, is responsible for the majority of the investment. It was because of his assistance that the financial institution was given the name ‘Kotak Mahindra.’ &nbsp;

Uday offered low-interest financial help to commercial organisations like Tata subsidiary Nelco. Compared to other banks and financial institutions, he charged business organisations reduced interest rates. Finally, under the name Kotak Mahindra Finance, he founded the Kotak Mahindra group in 1985.&nbsp;

The path towards banking &nbsp;

The business had diversified into investment banking, bill discounting, stockbroking, life insurance, auto financing, and mutual funds by 1995 after expanding into distribution and brokerage. Then, in an important milestone, Uday obtained a banking licence from the central bank in 2003.&nbsp;

Under Uday’s direction, Kotak Mahindra Bank witnessed a remarkable change in the years that followed, growing from a young organisation into India’s third-largest private sector bank. Along with the bank, Uday’s group also established an asset management firm and an alternative asset business worth $18 billion.&nbsp;

Kotak’s mantra to success&nbsp;

The three core principles and values&nbsp;

When speaking to the Financial Express, Uday highlighted two critical qualities that have propelled his career: common sense and middle-class values. He believes these values are fundamental for all individuals.&nbsp;

In shaping the banks of the future, Uday emphasised three core principles. First, he stressed the importance of prudence, cautioning against excessive leverage in banking, drawing from lessons learned during the global financial crisis. Second, he advocated for simplicity, advising banks to avoid complex financial products that can lead to confusion and risk. Lastly, Kotak underscored the need for humility among bankers, recognising their role as custodians of public funds.&nbsp;

In the evolving Indian business landscape, Uday observed a shift towards “survival of the fittest,” with policies favouring financial prudence over bailouts for struggling businesses.&nbsp;

The five Cs&nbsp;

Apart from the three principles, Uday shared his success mantras with IIM Bangalore students during the institute’s 42nd annual convocation. Kotak’s advice revolved around five key principles: character, conviction, commitment, creativity, and capability.&nbsp;

Character was the cornerstone, with Kotak emphasising the importance of aligning decisions with personal values, even when tempted by shortcuts. &nbsp;

Conviction was about courageously pursuing beliefs, distinguished from foolhardiness through self-reflection. &nbsp;

Commitment was linked to passion and enjoyment in work, fostering genuine dedication and progress.&nbsp;

Kotak championed creativity, urging students to think beyond convention and embrace failure as a learning opportunity. &nbsp;

Lastly, he highlighted that capability isn’t enough; execution is key. He encouraged students to stretch their limits while maintaining their values.&nbsp;

Kotak concluded by advising graduates to be bold, creative, and resilient, defending their values as they enter the professional world, remains full of opportunities and challenges.&nbsp;

Kotak after Kotak &nbsp;

Kotak chose to share the news of his resignation on the microblogging platform 'X' (formerly Twitter), where he reflected on his remarkable journey with the institution.&nbsp;

Kotak Mahindra Bank, which began with just three employees in Fort, Mumbai, has now evolved into a financial powerhouse with a substantial presence across India and in five other countries, boasting a workforce of over 100,000 employees. Kotak described this transformation in his heartfelt note, stating, “It has been 38 long years since this institution was created.”&nbsp;

What makes this development particularly noteworthy is that Kotak’s departure comes ahead of schedule. He mentioned that both the joint Managing Director and Chairman of the bank are also expected to step down by December. The transition awaits approval from the Reserve Bank of India (RBI).&nbsp;

As Kotak steps down, the responsibility temporarily falls on his colleague, Dipak Gupta, who currently serves as the Joint MD. In his post, Kotak noted, “In the interim, my dear colleague Dipak Gupta... will function as MD &amp; CEO, subject to approvals.”&nbsp;

The banking community and stakeholders will undoubtedly watch closely as the bank awaits the RBI’s approval of the proposed successor, marking the end of an era in the Indian banking sector.

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Kotak Mahindra Bank unbelievably announced on September 1 that its founder and CEO – Uday Kotak, the visionary who built one of India’s leading banks from scratch, is stepping down from his position as CEO and appointing a new leadership, months before his contract was set to legally expire.

Kotak Mahindra Bank unbelievably announced on September 1 that its founder and CEO – Uday Kotak, the visionary who built one of India’s leading banks from scratch, is stepping down from his position as CEO and appointing a new leadership, months before his contract was set to legally expire. As this transition begins, we take a look back at Kotak’s journey to fame and the path taken by the bank that bears his name. Uday Kotak’s early life Born in Mumbai on March 15, 1959, Uday Kotak hails from an upper-middle-class Gujarati Lohana joint family that engaged in cotton trading. After Partition, his father left Karachi and came back to India. He grew up in Babulnath in a large joint family in a home with 60 people living under one roof. Uday was always passionate about cricket and wanted to build a career as a cricketer. He was a talented player who captained his college team while pursuing his MBA at Jamnalal Bajaj Institute. He was struck in the head by a ball during a Kanga League game; it took him several months to recover and he missed a year of college. The launch of Kotak Mahindra Finance After abandoning his dreams to become a cricketer and completing his MBA, Uday chose to launch his own little financial agency at the Navsari building premises using a 300-square-foot office space that his father had provided him. Uday obtained a small loan from his family and friends to launch his finance and bill discounting firm. His closest friend, Anand Mahindra, is responsible for the majority of the investment. It was because of his assistance that the financial institution was given the name ‘Kotak Mahindra.’ Uday offered low-interest financial help to commercial organisations like Tata subsidiary Nelco. Compared to other banks and financial institutions, he charged business organisations reduced interest rates. Finally, under the name Kotak Mahindra Finance, he founded the Kotak Mahindra group in 1985. The path towards banking The business had diversified into investment banking, bill discounting, stockbroking, life insurance, auto financing, and mutual funds by 1995 after expanding into distribution and brokerage. Then, in an important milestone, Uday obtained a banking licence from the central bank in 2003. Under Uday’s direction, Kotak Mahindra Bank witnessed a remarkable change in the years that followed, growing from a young organisation into India’s third-largest private sector bank. Along with the bank, Uday’s group also established an asset management firm and an alternative asset business worth $18 billion. Kotak’s mantra to success The three core principles and values When speaking to the Financial Express, Uday highlighted two critical qualities that have propelled his career: common sense and middle-class values. He believes these values are fundamental for all individuals. In shaping the banks of the future, Uday emphasised three core principles. First, he stressed the importance of prudence, cautioning against excessive leverage in banking, drawing from lessons learned during the global financial crisis. Second, he advocated for simplicity, advising banks to avoid complex financial products that can lead to confusion and risk. Lastly, Kotak underscored the need for humility among bankers, recognising their role as custodians of public funds. In the evolving Indian business landscape, Uday observed a shift towards “survival of the fittest,” with policies favouring financial prudence over bailouts for struggling businesses. The five Cs Apart from the three principles, Uday shared his success mantras with IIM Bangalore students during the institute’s 42nd annual convocation. Kotak’s advice revolved around five key principles: character, conviction, commitment, creativity, and capability. Character was the cornerstone, with Kotak emphasising the importance of aligning decisions with personal values, even when tempted by shortcuts. Conviction was about courageously pursuing beliefs, distinguished from foolhardiness through self-reflection. Commitment was linked to passion and enjoyment in work, fostering genuine dedication and progress. Kotak championed creativity, urging students to think beyond convention and embrace failure as a learning opportunity. Lastly, he highlighted that capability isn’t enough; execution is key. He encouraged students to stretch their limits while maintaining their values. Kotak concluded by advising graduates to be bold, creative, and resilient, defending their values as they enter the professional world, remains full of opportunities and challenges. Kotak after Kotak Kotak chose to share the news of his resignation on the microblogging platform 'X' (formerly Twitter), where he reflected on his remarkable journey with the institution. Kotak Mahindra Bank, which began with just three employees in Fort, Mumbai, has now evolved into a financial powerhouse with a substantial presence across India and in five other countries, boasting a workforce of over 100,000 employees. Kotak described this transformation in his heartfelt note, stating, “It has been 38 long years since this institution was created.” What makes this development particularly noteworthy is that Kotak’s departure comes ahead of schedule. He mentioned that both the joint Managing Director and Chairman of the bank are also expected to step down by December. The transition awaits approval from the Reserve Bank of India (RBI). As Kotak steps down, the responsibility temporarily falls on his colleague, Dipak Gupta, who currently serves as the Joint MD. In his post, Kotak noted, “In the interim, my dear colleague Dipak Gupta... will function as MD & CEO, subject to approvals.” The banking community and stakeholders will undoubtedly watch closely as the bank awaits the RBI’s approval of the proposed successor, marking the end of an era in the Indian banking sector. WATCH WION LIVE HERE

Flashback Friday: Revisiting the success of the self-made billionaire banker – Uday Kotak 

India's tryst with CBDCs or central bank digital currencies is all set to expand. Reports suggest that India’s central bank may soon introduce CBDCs in the call money market.

India's RBI to expand digital rupee use

The Reserve Bank of India is trying to increase the use of central bank digital money, or e-rupee, for a wider range of wholesale transactions, The Economic Times reported, citing a source.

The source said, “We intend to use CBDC (Central Bank Digital Currency) tokens for the interbank call money market.”&nbsp;

The call money market deals with short-term funds that need to be repaid in a period varying from one day to a fortnight.

India's central bank launched a CBDC trial for&nbsp;wholesale and retail&nbsp;transactions in 2022.&nbsp;Since its launch, 1.75 million people have joined the CBDC bandwagon.

Additionally, the government is stepping up its efforts to promote e-rupee in the retail sector.&nbsp;

According sources familiar with the matter, RBI wants to boost the number of e-rupee transactions in the retail sector by 40 times, from 20,000 to 25,000 per day in July to 1 million by the end of December.

Meanwhile, RBI governor Shaktikanta Das on Monday said that the use of digital currencies might improve the efficiency of cross-border payments.

The push for RuPay and UPI&nbsp;

India is also trying to push and promote its other digital products, including RuPay and the Unified Payments Interface (UPI). The Economic Times report said that India wants to make RuPay a global product and internationalise UPI.

India has already entered various stages of negotiations and discussions with countries in Africa and Latin America for the adoption of UPI.

During the G20 Summit, India will highlight homegrown indigenous technologies like the&nbsp;UPI One World, the Bharat Bill Payment System for international transactions, the digital rupee, and the Public Tech Platform for Frictionless Credit in India.&nbsp;

&nbsp;

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The Reserve Bank of India is trying to increase the use of central bank digital money, or e-rupee, for a wider range of wholesale transactions, The Economic Times reported, citing a source.

The Reserve Bank of India is trying to increase the use of central bank digital money, or e-rupee, for a wider range of wholesale transactions, The Economic Times reported, citing a source. The source said, “We intend to use CBDC (Central Bank Digital Currency) tokens for the interbank call money market.” The call money market deals with short-term funds that need to be repaid in a period varying from one day to a fortnight. India's central bank launched a CBDC trial for wholesale and retail transactions in 2022. Since its launch, 1.75 million people have joined the CBDC bandwagon. Additionally, the government is stepping up its efforts to promote e-rupee in the retail sector. According sources familiar with the matter, RBI wants to boost the number of e-rupee transactions in the retail sector by 40 times, from 20,000 to 25,000 per day in July to 1 million by the end of December. Meanwhile, RBI governor Shaktikanta Das on Monday said that the use of digital currencies might improve the efficiency of cross-border payments. The push for RuPay and UPI India is also trying to push and promote its other digital products, including RuPay and the Unified Payments Interface (UPI). The Economic Times report said that India wants to make RuPay a global product and internationalise UPI. India has already entered various stages of negotiations and discussions with countries in Africa and Latin America for the adoption of UPI. During the G20 Summit, India will highlight homegrown indigenous technologies like the UPI One World, the Bharat Bill Payment System for international transactions, the digital rupee, and the Public Tech Platform for Frictionless Credit in India. WATCH WION LIVE HERE

RBI to expand e-rupee's scope, include more wholesale transactions: Reports

Reserve Bank of India&nbsp;Governor&nbsp;Shaktikanta Das&nbsp;said on Tuesday that the monetary policy must be forward-looking, adding that using a policy approach that only looks in the rear-view mirror can result in crises.

Das used the comparison of driving a car on a road with potential ditches and speed bumps to explain how monetary policy is conducted.

“Driver needs to see ahead and regulate the speed of the car. If driver reacts suddenly to a speed bump, he can cause accident,” Moneycontrol quoted Das, who was delivering the&nbsp;Delhi School of Economics Diamond Jubilee Distinguished Lecture.

Over the past few years, the RBI has fought a protracted war against high inflation. In order to combat inflation, the RBI increased the repo rate, the rate at which the central bank provides short-term cash to banks, by 250 basis points since May 2022.

The MPC (Monetary Policy Committee) is required to maintain retail inflation at the target rate of four per cent within a tolerance range of two to six per cent.

Although it has been slowing this year, inflation has not yet displayed a consistent pattern of lowering.&nbsp;&nbsp;In July, a sharp rise in vegetable prices caused India’s headline retail inflation rate to soar over the top limit of the RBI’s 2 to 6 per cent tolerance range and reach a 15-month high of 7.44 per cent.

In the near future, India’s inflation is likely to stay high, but government actions will stop it from increasing further, according to S&amp;P Global Ratings Economist (Asia Pacific) Vishrut Rana on Tuesday.

Das stated that the MPC must monitor price stability and take appropriate action, adding that the supply-side policies implemented by the fiscal authorities are of utmost significance.

“It is necessary to watch price stability and act appropriately. We are now firmly focused on 4 per cent target,” Moneycontrol quoted Das as saying.

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Reserve Bank of India Governor Shaktikanta Das said on Tuesday that the monetary policy must be forward-looking, adding that using a policy approach that only looks in the rear-view mirror can result in crises.

Reserve Bank of India Governor Shaktikanta Das said on Tuesday that the monetary policy must be forward-looking, adding that using a policy approach that only looks in the rear-view mirror can result in crises. Das used the comparison of driving a car on a road with potential ditches and speed bumps to explain how monetary policy is conducted. “Driver needs to see ahead and regulate the speed of the car. If driver reacts suddenly to a speed bump, he can cause accident,” Moneycontrol quoted Das, who was delivering the Delhi School of Economics Diamond Jubilee Distinguished Lecture. Over the past few years, the RBI has fought a protracted war against high inflation. In order to combat inflation, the RBI increased the repo rate, the rate at which the central bank provides short-term cash to banks, by 250 basis points since May 2022. The MPC (Monetary Policy Committee) is required to maintain retail inflation at the target rate of four per cent within a tolerance range of two to six per cent. Although it has been slowing this year, inflation has not yet displayed a consistent pattern of lowering. In July, a sharp rise in vegetable prices caused India’s headline retail inflation rate to soar over the top limit of the RBI’s 2 to 6 per cent tolerance range and reach a 15-month high of 7.44 per cent. In the near future, India’s inflation is likely to stay high, but government actions will stop it from increasing further, according to S&P Global Ratings Economist (Asia Pacific) Vishrut Rana on Tuesday. Das stated that the MPC must monitor price stability and take appropriate action, adding that the supply-side policies implemented by the fiscal authorities are of utmost significance. “It is necessary to watch price stability and act appropriately. We are now firmly focused on 4 per cent target,” Moneycontrol quoted Das as saying. WATCH WION LIVE HERE

Monetary policy needs to look at the future: RBI Governer Shaktikanta Das 

India's foreign exchange reserves fell to a near two-month low in the week that ended on August 18.

India's forex reserves at a 2-month low

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