Vegetable prices in India have begun to fall and are projected to decline from September, Reuters quoted the Reserve Bank of India (RBI) Governor Shaktikanta Das as saying on Wednesday.

The skyrocketing prices of vegetables and grains have caused retail inflation to soar to 7.44 per cent in July, its highest level in 15 months.

“We expect to see an appreciable slowdown in vegetable inflation from September,” Das said.

Although the possibility that global tensions could negatively influence food prices, he said the forecast for grain prices is positive.

The gradual decrease in core inflation over the past few months, according to Das, is a sign of monetary policy transmission despite core inflation being elevated.

According to him, the central bank would be vigilant to prevent persistent inflation from spreading to other market segments.

“The frequent incidences of recurring food price shocks pose a risk to anchoring of inflation expectations, which has been underway since September 2022. We will remain watchful of this,” Das said.

Since May 2022, India has increased interest rates by a total of 250 basis points to control inflation. According to Das, the Monetary Policy Committee’s legislated medium-term aim of 4 per cent inflation is still the central bank’s primary goal.

He asserted that the foundation of sustained growth must be price stability and added that the circumstances are ideal for the growth to continue and the capex cycle to pick up steam in 2023–2024.

The RBI chief reaffirmed that there is no set aim for the rupee but that the RBI will keep increasing its foreign exchange reserves to help control any dollar outflows.

"The Reserve Bank has also made conscious efforts to improve systemic resilience and efficiency by maintaining external stability and building forex reserves," he said.

(With inputs from Reuters)

&nbsp;

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Vegetable prices in India have begun to fall and are projected to decline from September, Reuters quoted the Reserve Bank of India (RBI) Governor Shaktikanta Das as saying on Wednesday.

Vegetable prices in India have begun to fall and are projected to decline from September, Reuters quoted the Reserve Bank of India (RBI) Governor Shaktikanta Das as saying on Wednesday. The skyrocketing prices of vegetables and grains have caused retail inflation to soar to 7.44 per cent in July, its highest level in 15 months. “We expect to see an appreciable slowdown in vegetable inflation from September,” Das said. Although the possibility that global tensions could negatively influence food prices, he said the forecast for grain prices is positive. The gradual decrease in core inflation over the past few months, according to Das, is a sign of monetary policy transmission despite core inflation being elevated. According to him, the central bank would be vigilant to prevent persistent inflation from spreading to other market segments. “The frequent incidences of recurring food price shocks pose a risk to anchoring of inflation expectations, which has been underway since September 2022. We will remain watchful of this,” Das said. Since May 2022, India has increased interest rates by a total of 250 basis points to control inflation. According to Das, the Monetary Policy Committee’s legislated medium-term aim of 4 per cent inflation is still the central bank’s primary goal. He asserted that the foundation of sustained growth must be price stability and added that the circumstances are ideal for the growth to continue and the capex cycle to pick up steam in 2023–2024. The RBI chief reaffirmed that there is no set aim for the rupee but that the RBI will keep increasing its foreign exchange reserves to help control any dollar outflows. "The Reserve Bank has also made conscious efforts to improve systemic resilience and efficiency by maintaining external stability and building forex reserves," he said. (With inputs from Reuters) WATCH WION LIVE HERE

Vegetable prices in India to fall from September: RBI governor

The governor of the Reserve Bank of India (RBI) on Thursday, has unveiled UDGAM (Unclaimed Deposits - Gateway to Access information), a centralised web service that allows users to “search their unclaimed deposits across numerous institutions at one place.”

“This portal has been developed by RBI for use by members of public to facilitate and make it easier for them to search their unclaimed deposits across multiple banks at one place,” RBI said in a press release.

As part of the Statement on Developmental and Regulatory Policies dated April 6, 2023, RBI had announced the creation of a centralised web facility for locating unclaimed deposits. &nbsp;“Given the increasing trend in the amount of&nbsp;unclaimed deposits, RBI has been undertaking public awareness campaigns from time to time to sensitise the public on this matter. Further, through these initiatives, the RBI has&nbsp;been encouraging members of public to identify and approach their respective banks for claiming unclaimed deposits,” the banking regulator said.

According to RBI, the web portal would help customers find their unclaimed deposits and accounts so they may either submit a claim for the deposit amount or activate their deposit accounts at their respective banks. The platform was created in partnership by participating banks, Indian Financial Technology &amp; Allied Services (IFTAS), and Reserve Bank Information Technology Pvt Ltd (ReBIT).

Users will initially have access to information about their unclaimed deposits from the seven banks now represented on the portal. State Bank of India, Punjab National Bank, Central Bank of India, Dhanlaxmi Bank Ltd, South Indian Bank Ltd, DBS Bank India Ltd, and Citibank N.A. are the seven banks.

RBI said that the search facility for other banks would be made available gradually by October 15, 2023.

What are unclaimed deposits?

In India, there are several inactive savings and current accounts. A sum in an account is regarded as an unclaimed deposit after ten years of inactivity. The same holds true for recurrent and fixed deposits that are not reclaimed within ten years of maturity.

Banks transfer these unclaimed deposits to the Depositor Education and Awareness Fund, which is managed by the RBI.

Although the depositor can go to a bank to retrieve these deposits with interest, the process can be complicated by the decision of which bank to go to and how many banks.

Since visiting each bank and completing the paperwork for each family member can be tedious, RBI has initiated the UDGAM platform, allowing users to search for unclaimed deposits across banks.

Presently, India has unclaimed deposits worth Rs 35,000 crore. RBI’s initiative should ensure awareness about such deposits and provide clarity on how the depositor can make their claims.

&nbsp;

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The governor of the Reserve Bank of India (RBI) on Thursday, has unveiled UDGAM (Unclaimed Deposits - Gateway to Access information), a centralised web service that allows users to “search their unclaimed deposits across numerous institutions at one place.

The governor of the Reserve Bank of India (RBI) on Thursday, has unveiled UDGAM (Unclaimed Deposits - Gateway to Access information), a centralised web service that allows users to “search their unclaimed deposits across numerous institutions at one place.” “This portal has been developed by RBI for use by members of public to facilitate and make it easier for them to search their unclaimed deposits across multiple banks at one place,” RBI said in a press release. As part of the Statement on Developmental and Regulatory Policies dated April 6, 2023, RBI had announced the creation of a centralised web facility for locating unclaimed deposits. “Given the increasing trend in the amount of unclaimed deposits, RBI has been undertaking public awareness campaigns from time to time to sensitise the public on this matter. Further, through these initiatives, the RBI has been encouraging members of public to identify and approach their respective banks for claiming unclaimed deposits,” the banking regulator said. According to RBI, the web portal would help customers find their unclaimed deposits and accounts so they may either submit a claim for the deposit amount or activate their deposit accounts at their respective banks. The platform was created in partnership by participating banks, Indian Financial Technology & Allied Services (IFTAS), and Reserve Bank Information Technology Pvt Ltd (ReBIT). Users will initially have access to information about their unclaimed deposits from the seven banks now represented on the portal. State Bank of India, Punjab National Bank, Central Bank of India, Dhanlaxmi Bank Ltd, South Indian Bank Ltd, DBS Bank India Ltd, and Citibank N.A. are the seven banks. RBI said that the search facility for other banks would be made available gradually by October 15, 2023. What are unclaimed deposits? In India, there are several inactive savings and current accounts. A sum in an account is regarded as an unclaimed deposit after ten years of inactivity. The same holds true for recurrent and fixed deposits that are not reclaimed within ten years of maturity. Banks transfer these unclaimed deposits to the Depositor Education and Awareness Fund, which is managed by the RBI. Although the depositor can go to a bank to retrieve these deposits with interest, the process can be complicated by the decision of which bank to go to and how many banks. Since visiting each bank and completing the paperwork for each family member can be tedious, RBI has initiated the UDGAM platform, allowing users to search for unclaimed deposits across banks. Presently, India has unclaimed deposits worth Rs 35,000 crore. RBI’s initiative should ensure awareness about such deposits and provide clarity on how the depositor can make their claims. WATCH WION LIVE HERE

RBI launches UDGAM, a web portal for locating unclaimed deposits across various banks

Is it time for India to reevaluate its inflation and monetary policy trajectory? Are the markets and central bank underestimating&nbsp;the inflation risk, just like they did in 2021?

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Inflation has plagued India for decades, yet economists anticipate the recent surge in price pressures to be temporary. Retail inflation in India surged to a 15-month high due to soaring prices of vegetables and cereals.

Recently, RBI Governor Shaktikanta Das unveiled the Monetary Policy Committee's decision on interest rates, shedding light on additional choices the central bank has made amid the global economic uncertainty. As expected by experts,&nbsp;the RBI MPC kept the key policy rate -- repo rate --&nbsp;unchanged at 6.5 per cent.&nbsp;

Despite prevailing expectations, the Reserve Bank of India appears poised to maintain its current stance, with the likelihood of a rate cut emerging as the next move. A closer examination of India's latest inflation figures reveals notable insights into the factors driving these trends.

Headline inflation registered a surprising surge, reaching 7.44 percent in July compared to the previous year. This marked the highest reading since April 2022, surpassing the upper threshold of the RBI's inflation tolerance band of 2 percent to 6 percent for the first time in five months.

The sharp increase can be attributed to the recent uptick in food prices. However, core inflation, which excludes volatile components like vegetables, experienced only a slight uptick. This aspect has contributed to economists' confidence in viewing the current inflationary pressures as transitory.

While the broader consensus anticipates that the&nbsp;RBI will&nbsp;take&nbsp;proactive measures, indications point to the central bank maintaining steady rates for the time being. Yet, a minority of economists emphasize the need to remain vigilant in monitoring potential price pressures.

Sakshi Gupta, the Principal Economist at HDFC Bank, commented on the retail inflation, "While this upward movement might be temporary, it's crucial to reassess the inflation trajectory, particularly if food costs begin to influence both expectations and core inflation."

Amidst these differing perspectives regarding the course of inflation, the Reserve Bank of India (RBI), on its part, is anticipated to maintain its current interest rates. The prevailing consensus strongly indicates that the next plausible step will be a reduction in interest rates.

Domestic rating agency Icra said on Monday that it expects the Reserve Bank to decrease interest rates only in the July-September quarter of next year. According to the agency, the total reduction in the cycle will be a "shallow" (0.50-0.75 percent).

The RBI can raise interest rates only if headline inflation remains over six per cent for two consecutive quarters, according to the agency.

Is it time for India to reevaluate its inflation and monetary policy trajectory? Are the markets and central bank underestimating the inflation risk, just like they did in 2021?

Is it time for India to reevaluate its inflation and monetary policy trajectory? Are the markets and central bank underestimating the inflation risk, just like they did in 2021? Inflation has plagued India for decades, yet economists anticipate the recent surge in price pressures to be temporary. Retail inflation in India surged to a 15-month high due to soaring prices of vegetables and cereals. Recently, RBI Governor Shaktikanta Das unveiled the Monetary Policy Committee's decision on interest rates, shedding light on additional choices the central bank has made amid the global economic uncertainty. As expected by experts, the RBI MPC kept the key policy rate -- repo rate -- unchanged at 6.5 per cent. Despite prevailing expectations, the Reserve Bank of India appears poised to maintain its current stance, with the likelihood of a rate cut emerging as the next move. A closer examination of India's latest inflation figures reveals notable insights into the factors driving these trends. Headline inflation registered a surprising surge, reaching 7.44 percent in July compared to the previous year. This marked the highest reading since April 2022, surpassing the upper threshold of the RBI's inflation tolerance band of 2 percent to 6 percent for the first time in five months. The sharp increase can be attributed to the recent uptick in food prices. However, core inflation, which excludes volatile components like vegetables, experienced only a slight uptick. This aspect has contributed to economists' confidence in viewing the current inflationary pressures as transitory. While the broader consensus anticipates that the RBI will take proactive measures, indications point to the central bank maintaining steady rates for the time being. Yet, a minority of economists emphasize the need to remain vigilant in monitoring potential price pressures. Sakshi Gupta, the Principal Economist at HDFC Bank, commented on the retail inflation, "While this upward movement might be temporary, it's crucial to reassess the inflation trajectory, particularly if food costs begin to influence both expectations and core inflation." Amidst these differing perspectives regarding the course of inflation, the Reserve Bank of India (RBI), on its part, is anticipated to maintain its current interest rates. The prevailing consensus strongly indicates that the next plausible step will be a reduction in interest rates. Domestic rating agency Icra said on Monday that it expects the Reserve Bank to decrease interest rates only in the July-September quarter of next year. According to the agency, the total reduction in the cycle will be a "shallow" (0.50-0.75 percent). The RBI can raise interest rates only if headline inflation remains over six per cent for two consecutive quarters, according to the agency.

India's inflation outlook: Does the central bank need to re-evaluate its monetary policy?

India's Central bank is all set to join the artificial intelligence bandwagon. The reserve bank of India has roped in consulting giants Accenture & McKinsey, to develop systems that integrate ai and machine learning to supervise banks.

India's Central bank joins AI bandwagon

The Reserve Bank of India is expected to hold interest rates after the upcoming monetary policy committee meeting.

RBI keeps rate steady for the third time, India remains hawkish on inflation

RBI likely to continue with rate pause: Analysts

In a recent announcement on Tuesday, the Reserve Bank of India (RBI) revealed that 88 per cent of the country's highest denomination 2000-rupee currency notes, amounting to 3.14 trillion rupees ($38.17 billion), have been returned to the central bank since their withdrawal from circulation. The decision to withdraw these high-value notes was made in May, allowing for exchange or deposit until September 30.

The introduction of the 2000-rupee denominated notes in 2016 aimed to replenish India's economy after the government's unexpected demonetization move, which scrapped high-value banknotes. However, the RBI has consistently expressed its desire to reduce high-value notes in circulation and halted the printing of 2000-rupee notes over the past four years.

RBI's Clean Note Policy

As of July 31, 2023, the total value of 2000-rupee notes in circulation stands at 420 billion rupees. This is a significant decline from 3.62 trillion rupees on March 31, 2023, marking the end of the last fiscal year. During this period, the central bank stated that 87 per cent of the banknotes received by lenders were in the form of deposits, while the remaining 13 per cent were exchanged for other denominations.

To facilitate a smooth transition, the RBI urged the public to utilize the next two months to deposit and/or exchange any remaining 2000-rupee banknotes they hold to avoid a last-minute rush before the September 30 deadline. The central bank's 'Clean Note Policy' motivated the withdrawal of the 2000-rupee banknotes, citing their limited use in transactions. The RBI reassured the public that an ample stock of banknotes in other denominations remains available to meet their currency requirements.

Notably, the total value of 2000-rupee banknotes in circulation, which stood at 3.62 lakh crore rupees on March 31, 2023, declined to 3.56 lakh crore rupees by May 19, 2023.

As the withdrawal deadline approaches, the RBI's call to the public to take timely action will ensure a smooth and orderly process. Individuals and businesses are encouraged to deposit or exchange their 2000-rupee banknotes well before September 30, 2023, to avoid any potential inconvenience.

( With Inputs from Agencies)

In a recent announcement on Tuesday, the Reserve Bank of India (RBI) revealed that 88 per cent of the country's highest denomination 2000-rupee currency notes, amounting to 3.

In a recent announcement on Tuesday, the Reserve Bank of India (RBI) revealed that 88 per cent of the country's highest denomination 2000-rupee currency notes, amounting to 3.14 trillion rupees ($38.17 billion), have been returned to the central bank since their withdrawal from circulation. The decision to withdraw these high-value notes was made in May, allowing for exchange or deposit until September 30. The introduction of the 2000-rupee denominated notes in 2016 aimed to replenish India's economy after the government's unexpected demonetization move, which scrapped high-value banknotes. However, the RBI has consistently expressed its desire to reduce high-value notes in circulation and halted the printing of 2000-rupee notes over the past four years. RBI's Clean Note Policy As of July 31, 2023, the total value of 2000-rupee notes in circulation stands at 420 billion rupees. This is a significant decline from 3.62 trillion rupees on March 31, 2023, marking the end of the last fiscal year. During this period, the central bank stated that 87 per cent of the banknotes received by lenders were in the form of deposits, while the remaining 13 per cent were exchanged for other denominations. To facilitate a smooth transition, the RBI urged the public to utilize the next two months to deposit and/or exchange any remaining 2000-rupee banknotes they hold to avoid a last-minute rush before the September 30 deadline. The central bank's 'Clean Note Policy' motivated the withdrawal of the 2000-rupee banknotes, citing their limited use in transactions. The RBI reassured the public that an ample stock of banknotes in other denominations remains available to meet their currency requirements. Notably, the total value of 2000-rupee banknotes in circulation, which stood at 3.62 lakh crore rupees on March 31, 2023, declined to 3.56 lakh crore rupees by May 19, 2023. As the withdrawal deadline approaches, the RBI's call to the public to take timely action will ensure a smooth and orderly process. Individuals and businesses are encouraged to deposit or exchange their 2000-rupee banknotes well before September 30, 2023, to avoid any potential inconvenience. ( With Inputs from Agencies)

RBI's currency cleanup: 2000-rupee notes vanish as 88% of currency returned since May

Union Finance Minister Nirmala Sitharaman on Monday instructed public and private banks to refrain from threatening borrowers during the process of loan recovery and added that they need to deal with the situation in a humane and sensitive manner.

“I have heard complaints about how mercilessly loan repayments have been followed up by some banks. The government has instructed all banks, both public and private, that harsh steps should not be taken when it comes to the process of loan repayment, and they should approach the matter with humanity and sensitivity in mind,” she said while making an intervention during the Question Hour in the Lok Sabha when asked to address a question relating to repayment of loans by small borrowers.

Along similar lines, the Madras High Court had emphasised that outstanding loan amounts were to be recovered in accordance to procedures established by the law. It had added that the recovery of amounts through private agents was prohibited and that banks must not resort to muscle power.

In 2008, the Reserve Bank of India had informed banks that employing recovery agents would be banned should there be any complaints regarding the agents. Banks were also asked to check their recovery mechanism and provide points for improvement in their guidelines.

Several circulars have been issued by the central bank to stop recovery agents from harassing borrowers. In March, RBL Bank Ltd was fined about (Rs 2.27 crore) $280,000 for noncompliance of guidelines for loan recovery agents. Penalties have also been imposed on cooperative banks for infringement of legal directives.

Last year, in August, the RBI had barred recovery agents from threatening borrowers and calling them before 8 am and after 7 pm.

&nbsp;

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Union Finance Minister Nirmala Sitharaman on Monday instructed public and private banks to refrain from threatening borrowers during the process of loan recovery and added that they need to deal with the situation in a humane and sensitive manner.

Union Finance Minister Nirmala Sitharaman on Monday instructed public and private banks to refrain from threatening borrowers during the process of loan recovery and added that they need to deal with the situation in a humane and sensitive manner. “I have heard complaints about how mercilessly loan repayments have been followed up by some banks. The government has instructed all banks, both public and private, that harsh steps should not be taken when it comes to the process of loan repayment, and they should approach the matter with humanity and sensitivity in mind,” she said while making an intervention during the Question Hour in the Lok Sabha when asked to address a question relating to repayment of loans by small borrowers. Along similar lines, the Madras High Court had emphasised that outstanding loan amounts were to be recovered in accordance to procedures established by the law. It had added that the recovery of amounts through private agents was prohibited and that banks must not resort to muscle power. In 2008, the Reserve Bank of India had informed banks that employing recovery agents would be banned should there be any complaints regarding the agents. Banks were also asked to check their recovery mechanism and provide points for improvement in their guidelines. Several circulars have been issued by the central bank to stop recovery agents from harassing borrowers. In March, RBL Bank Ltd was fined about (Rs 2.27 crore) $280,000 for noncompliance of guidelines for loan recovery agents. Penalties have also been imposed on cooperative banks for infringement of legal directives. Last year, in August, the RBI had barred recovery agents from threatening borrowers and calling them before 8 am and after 7 pm. WATCH WION LIVE HERE

"Approach with humanity...": Nirmala Sitharaman to banks on loan recovery

India's path to achieving developed nation status has been outlined in a recent research paper published in the Central Bank's monthly bulletin. The report reveals that India must sustain an annual growth rate of 7.6 percent over the next 25 years to successfully transition into a developed economy. As per World Bank standards, a key criterion for classifying a country as a high-income nation is its per capita income. Presently, India's per capita income stands at $2,500, necessitating a significant increase to surpass $21,664 by the year 2047.

As &nbsp;per the study conducted by the Reserve Bank of India's economic research department, the Indian economy would need to achieve a compound annual growth rate (CAGR) of 7.6 percent in real GDP from 2023–24 to 2047–48 to meet the requirements for becoming a developed nation. However, the study clarifies that this analysis does not represent the official view of the RBI.

The study further states that, in nominal terms, accounting for the impact of inflation, the economy would need to achieve a CAGR of 10.6 percent. The report provides insights into the growth trajectory India must sustain over the next couple of decades.

For the period between 2022 and 2023, India is projected to expand by 7.2 percent. Additionally, the RBI forecasts a GDP growth rate of 6.5 percent for the current fiscal year. These projections indicate the ongoing efforts to drive economic growth in the country.

To attain its long-term economic objectives, India needs to address the structure of its economy by boosting the industrial sector's contribution to GDP. The goal is to increase the industrial sector's proportion from the current 25.6 percent to 35 percent by the fiscal year 2047–48. Additionally, the article emphasizes that both agriculture and service activities must grow at a rate of 4.9 percent per year.

The article highlights that achieving high growth rates over an extended period is not uncommon in economic history. It underscores the importance of technological advancements and globalized markets in sustaining sustained high growth, emphasizing their relevance in India's growth trajectory.

Furthermore to achieve the targeted nominal per capita GDP growth rate of 9.1 percent, India must surpass its previous records, as stated in the article. Additionally, the report highlights that sustained average annual real GDP growth of 7.6 percent over the next 25 years could pave the way for India to become a developed nation by 2047.

Various policy initiatives will drive India's path to development, as emphasized in the analysis presented in the article. These initiatives include structural reforms, investments, the digitalization of the economy, logistics improvements, labor upskilling, and sector-specific policies focusing on manufacturing, exports, tourism, education, and health. These growth-enhancing measures are anticipated to contribute significantly to India's transformation into a developed country

India's path to achieving developed nation status has been outlined in a recent research paper published in the Central Bank's monthly bulletin. The report reveals that India must sustain an annual growth rate of 7.

India's path to achieving developed nation status has been outlined in a recent research paper published in the Central Bank's monthly bulletin. The report reveals that India must sustain an annual growth rate of 7.6 percent over the next 25 years to successfully transition into a developed economy. As per World Bank standards, a key criterion for classifying a country as a high-income nation is its per capita income. Presently, India's per capita income stands at $2,500, necessitating a significant increase to surpass $21,664 by the year 2047. As per the study conducted by the Reserve Bank of India's economic research department, the Indian economy would need to achieve a compound annual growth rate (CAGR) of 7.6 percent in real GDP from 2023–24 to 2047–48 to meet the requirements for becoming a developed nation. However, the study clarifies that this analysis does not represent the official view of the RBI. The study further states that, in nominal terms, accounting for the impact of inflation, the economy would need to achieve a CAGR of 10.6 percent. The report provides insights into the growth trajectory India must sustain over the next couple of decades. For the period between 2022 and 2023, India is projected to expand by 7.2 percent. Additionally, the RBI forecasts a GDP growth rate of 6.5 percent for the current fiscal year. These projections indicate the ongoing efforts to drive economic growth in the country. To attain its long-term economic objectives, India needs to address the structure of its economy by boosting the industrial sector's contribution to GDP. The goal is to increase the industrial sector's proportion from the current 25.6 percent to 35 percent by the fiscal year 2047–48. Additionally, the article emphasizes that both agriculture and service activities must grow at a rate of 4.9 percent per year. The article highlights that achieving high growth rates over an extended period is not uncommon in economic history. It underscores the importance of technological advancements and globalized markets in sustaining sustained high growth, emphasizing their relevance in India's growth trajectory. Furthermore to achieve the targeted nominal per capita GDP growth rate of 9.1 percent, India must surpass its previous records, as stated in the article. Additionally, the report highlights that sustained average annual real GDP growth of 7.6 percent over the next 25 years could pave the way for India to become a developed nation by 2047. Various policy initiatives will drive India's path to development, as emphasized in the analysis presented in the article. These initiatives include structural reforms, investments, the digitalization of the economy, logistics improvements, labor upskilling, and sector-specific policies focusing on manufacturing, exports, tourism, education, and health. These growth-enhancing measures are anticipated to contribute significantly to India's transformation into a developed country

India requires 7.6 percent annual growth for 25 years to attain developed nation status: RBI bulletin

India has made remarkable progress in its fight against multidimensional poverty, according to the latest report released by the National Institution for Transforming India (NITI Aayog). The report, titled 'National Multidimensional Poverty Index: A Progress Review 2023', reveals that an unprecedented 13.5 crore people moved out of multidimensional poverty between 2015-16 and 2019-21. This achievement places India well ahead of its 2030 target for reducing poverty under the Sustainable Development Goals (SDGs).

The NITI Aayog's second edition of the National Multidimensional Poverty Index (MPI) is based on data from the latest National Family Health Survey [NFHS-5 (2019-21)], comparing progress between the surveys NFHS-4 (2015-16) and NFHS-5 (2019-21). The MPI measures deprivations across three equally weighted dimensions: health, education, and standard of living, represented by 12 indicators aligned with the SDGs.

Notably, India has witnessed a significant decline of 9.89 percentage points in the number of multidimensionally poor individuals, reducing from 24.85 per cent in 2015-16 to 14.96 per cent in 2019-21. The rural areas have shown the fastest decline, with poverty decreasing from 32.59 per cent to 19.28 per cent, while urban areas experienced a reduction from 8.65 per cent to 5.27 per cent. Uttar Pradesh, in particular, stands out, with 3.43 crore people successfully escaping multidimensional poverty during this period. States like Bihar, Madhya Pradesh, Odisha, and Rajasthan also demonstrated substantial progress in reducing poverty rates.

Scaling India's SDG 'Summit'

The report highlights that the MPI value has nearly halved from 0.117 to 0.066 between 2015-16 and 2019-21, and the intensity of poverty has declined from 47 per cent to 44 per cent, signaling India's significant progress towards achieving SDG Target 1.2 well before the 2030 deadline.

The success in combating multidimensional poverty can be attributed to the government's strategic focus on ensuring sustainable and equitable development while eradicating poverty. Various flagship programs have played a crucial role in this achievement. Initiatives such as the Poshan Abhiyan and Anaemia Mukt Bharat have contributed to improved health indicators. At the same time, the Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM) have resulted in enhanced sanitation and access to clean drinking water.

Furthermore, the Pradhan Mantri Ujjwala Yojana (PMUY), which provides subsidized cooking fuel, has transformed lives with a 14.6 percentage point improvement in cooking fuel deprivations. The Saubhagya, Pradhan Mantri Awas Yojana (PMAY), Pradhan Mantri Jan Dhan Yojana (PMJDY), and Samagra Shiksha programs have also played instrumental roles in reducing multidimensional poverty across the country.

The NITI Aayog report offers multidimensional poverty estimates for the 36 States and Union Territories and 707 Administrative Districts, providing valuable insights for targeted interventions in regions with higher poverty rates.

The progress achieved in extremely low deprivation rates, especially in access to electricity, bank accounts, and drinking water, reflects the government's unwavering commitment to improving citizens' lives and fostering a brighter future for all.

India has made remarkable progress in its fight against multidimensional poverty, according to the latest report released by the National Institution for Transforming India (NITI Aayog).

India has made remarkable progress in its fight against multidimensional poverty, according to the latest report released by the National Institution for Transforming India (NITI Aayog). The report, titled 'National Multidimensional Poverty Index: A Progress Review 2023', reveals that an unprecedented 13.5 crore people moved out of multidimensional poverty between 2015-16 and 2019-21. This achievement places India well ahead of its 2030 target for reducing poverty under the Sustainable Development Goals (SDGs). The NITI Aayog's second edition of the National Multidimensional Poverty Index (MPI) is based on data from the latest National Family Health Survey [NFHS-5 (2019-21)], comparing progress between the surveys NFHS-4 (2015-16) and NFHS-5 (2019-21). The MPI measures deprivations across three equally weighted dimensions: health, education, and standard of living, represented by 12 indicators aligned with the SDGs. Notably, India has witnessed a significant decline of 9.89 percentage points in the number of multidimensionally poor individuals, reducing from 24.85 per cent in 2015-16 to 14.96 per cent in 2019-21. The rural areas have shown the fastest decline, with poverty decreasing from 32.59 per cent to 19.28 per cent, while urban areas experienced a reduction from 8.65 per cent to 5.27 per cent. Uttar Pradesh, in particular, stands out, with 3.43 crore people successfully escaping multidimensional poverty during this period. States like Bihar, Madhya Pradesh, Odisha, and Rajasthan also demonstrated substantial progress in reducing poverty rates. Scaling India's SDG 'Summit' The report highlights that the MPI value has nearly halved from 0.117 to 0.066 between 2015-16 and 2019-21, and the intensity of poverty has declined from 47 per cent to 44 per cent, signaling India's significant progress towards achieving SDG Target 1.2 well before the 2030 deadline. The success in combating multidimensional poverty can be attributed to the government's strategic focus on ensuring sustainable and equitable development while eradicating poverty. Various flagship programs have played a crucial role in this achievement. Initiatives such as the Poshan Abhiyan and Anaemia Mukt Bharat have contributed to improved health indicators. At the same time, the Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM) have resulted in enhanced sanitation and access to clean drinking water. Furthermore, the Pradhan Mantri Ujjwala Yojana (PMUY), which provides subsidized cooking fuel, has transformed lives with a 14.6 percentage point improvement in cooking fuel deprivations. The Saubhagya, Pradhan Mantri Awas Yojana (PMAY), Pradhan Mantri Jan Dhan Yojana (PMJDY), and Samagra Shiksha programs have also played instrumental roles in reducing multidimensional poverty across the country. The NITI Aayog report offers multidimensional poverty estimates for the 36 States and Union Territories and 707 Administrative Districts, providing valuable insights for targeted interventions in regions with higher poverty rates. The progress achieved in extremely low deprivation rates, especially in access to electricity, bank accounts, and drinking water, reflects the government's unwavering commitment to improving citizens' lives and fostering a brighter future for all.

Mission Possible: India's multidimensional poverty plummets ahead of schedule

India’s retail inflation jumped to a three-month high of 4.81 per cent on account of higher food prices, but remains within the tolerable range of the Reserve Bank of India (RBI), the government data showed on Wednesday.

The surge in inflation&nbsp;is being attributed to a higher-than-expected supportive base, besides the rise in vegetable prices, shows the data by the Ministry of Statistics &amp; Programme Implementation.

Last month, the inflation based on the Consumer Price Index (CPI) was at 4.31 per cent. In May it was 2.43 per cent and 7.75 per cent in June of the previous year.

The food basket accounts for nearly half of the CPI. The major elements driving inflation are cereals (12.7 per cent), eggs (7 per cent), milk (8.6 per cent), pulses (10.5 per cent) and spices. Household goods, personal care items, education and health have inflation of above 5 per cent.

Clothing and footwear recorded an inflation of 6.19 per cent, fuel and light inflation were at 3.92 per cent, and miscellaneous saw inflation of 5.19 per cent.

Inflation is an important yardstick for the RBI’s Monetary Policy Committee to determine the repo or the lending rate of the country and it is mandated to ensure that retail inflation hovers around 4 per cent with a margin of 2 per cent on either side.

Last month, the Reserve Bank kept policy rates unchanged at 6.5 per cent and projected retail inflation for the current fiscal to average at 5.1 per cent, with June quarter inflation pegged at 4.6 per cent.

The next policy review is scheduled for early next month.

<h2>India's IIP rises&nbsp;</h2>

On the other hand, India's industrial production surged to 5.2 per cent in May from 4.5% per cent in April 2023, due to good performance by the manufacturing and mining sectors, the official data said.

The factory output growth measured in terms of IIP stood at 19.7 per cent in May 2022, mainly due to a lower base effect.

"The growth rates over corresponding period of previous year are to be interpreted, considering the unusual circumstances on account of COVID 19 pandemic since March 2020," the official statement said.

(With inputs from agencies)

&nbsp;

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India’s retail inflation jumped to a three-month high of 4.81 per cent on account of higher food prices, but remains within the tolerable range of the Reserve Bank of India (RBI), the government data showed on Wednesday.

India’s retail inflation jumped to a three-month high of 4.81 per cent on account of higher food prices, but remains within the tolerable range of the Reserve Bank of India (RBI), the government data showed on Wednesday. The surge in inflation is being attributed to a higher-than-expected supportive base, besides the rise in vegetable prices, shows the data by the Ministry of Statistics & Programme Implementation. Last month, the inflation based on the Consumer Price Index (CPI) was at 4.31 per cent. In May it was 2.43 per cent and 7.75 per cent in June of the previous year. The food basket accounts for nearly half of the CPI. The major elements driving inflation are cereals (12.7 per cent), eggs (7 per cent), milk (8.6 per cent), pulses (10.5 per cent) and spices. Household goods, personal care items, education and health have inflation of above 5 per cent. Clothing and footwear recorded an inflation of 6.19 per cent, fuel and light inflation were at 3.92 per cent, and miscellaneous saw inflation of 5.19 per cent. Inflation is an important yardstick for the RBI’s Monetary Policy Committee to determine the repo or the lending rate of the country and it is mandated to ensure that retail inflation hovers around 4 per cent with a margin of 2 per cent on either side. Last month, the Reserve Bank kept policy rates unchanged at 6.5 per cent and projected retail inflation for the current fiscal to average at 5.1 per cent, with June quarter inflation pegged at 4.6 per cent. The next policy review is scheduled for early next month. India's IIP rises On the other hand, India's industrial production surged to 5.2 per cent in May from 4.5% per cent in April 2023, due to good performance by the manufacturing and mining sectors, the official data said. The factory output growth measured in terms of IIP stood at 19.7 per cent in May 2022, mainly due to a lower base effect. "The growth rates over corresponding period of previous year are to be interpreted, considering the unusual circumstances on account of COVID 19 pandemic since March 2020," the official statement said. (With inputs from agencies) WATCH WION LIVE HERE

India’s retail inflation jumps to three-month high of 4.81% due to higher food prices

The Reserve Bank of India (RBI) unveiled a groundbreaking draft regulation that grants debit, credit, and prepaid cardholders the authority to select their desired card network. This regulation marks a potential revolution in the global credit card industry, challenging the prevailing practice where card network options are predetermined through agreements between issuers and networks.

Promoting customer choice and flexibility

The RBI's draft circular prohibits card issuers from entering into agreements that restrict them from accessing services of other card networks. The current arrangements between card networks and issuers, including banks and non-banking institutions, are deemed inadequate in promoting customer choice and availability. The proposed regulation aims to enhance flexibility and competition in the credit card market, allowing users to choose the card network that best suits their preferences and requirements.

Under the new regulations, cardholders will have the flexibility to migrate to a different payment network while keeping their existing card accounts, balances, and credit history intact. This concept of card network portability enables consumers to transfer their card accounts from one network to another, similar to switching mobile service providers while retaining the same phone number.

Operational challenges and increased costs

While the draft regulation holds significant advantages for customers, such as decision-making authority and portability, banks may face operational challenges and increased costs. Banks will need to review existing agreements, establish new partnerships, adjust customer onboarding processes, provide additional training, and reevaluate customer profiling. The impact on the manufacturing process of banking cards is another factor that banks will need to evaluate in the coming months. With the proposed implementation date set for October 1, 2023, banks face a tight timeline of less than 90 days to implement the extensive organizational changes.

Primary Beneficiaries

The primary beneficiaries of this new regulation are customers, as card issuers will be obligated to offer more than one card network and provide the option for customers to choose their preferred network during card issuance or even afterward. This move also opens up the potential for innovative offerings by different network providers, offering broader advantages for customers in the future.

In India, authorized card networks, including MasterCard, Visa, American Express Banking Corp, Diners Club International, and National Payments Corporation of India - RuPay, partner with banks and non-banking financial institutions for card issuance. Previously, banks had been exclusively tying up with a few dominant networks, limiting customer choice. The RBI's proposed regulation aims to eliminate such restrictions and promote a level playing field for all card networks.

India's credit card market: A Snapshot

The credit card market in India has been booming, with credit card outstanding reaching Rs 2 lakh crore, a year-on-year rise of 29.7 per cent. Banks have issued 8.65 crore credit cards as of April 2023, with monthly credit payments exceeding Rs one lakh crore. The surge in credit card usage reflects the growing purchasing power of the country. However, it is crucial to ensure responsible practices by credit card companies while issuing cards, considering the significant outstanding debt.

RuPay: Striving for dominance

RuPay, India's domestic card payment network, has been striving to gain a foothold in the credit card space, which is dominated by international networks like Visa and MasterCard. RuPay's dominance in the debit card market, capturing 65 per cent of the market share, contrasts with its minimal presence in the credit card space. The government has been promoting RuPay through initiatives such as linking credit cards to UPI and may consider further incentives to boost its adoption.

The RBI's draft regulation is expected to significantly change the credit card landscape, providing customers with greater choices and fostering competition among card networks. Stakeholders have been invited to provide their comments on the proposal, with the potential mandate expected to come into effect in October.

(With Inputs from Agencies)

The Reserve Bank of India (RBI) unveiled a groundbreaking draft regulation that grants debit, credit, and prepaid cardholders the authority to select their desired card network.

The Reserve Bank of India (RBI) unveiled a groundbreaking draft regulation that grants debit, credit, and prepaid cardholders the authority to select their desired card network. This regulation marks a potential revolution in the global credit card industry, challenging the prevailing practice where card network options are predetermined through agreements between issuers and networks. Promoting customer choice and flexibility The RBI's draft circular prohibits card issuers from entering into agreements that restrict them from accessing services of other card networks. The current arrangements between card networks and issuers, including banks and non-banking institutions, are deemed inadequate in promoting customer choice and availability. The proposed regulation aims to enhance flexibility and competition in the credit card market, allowing users to choose the card network that best suits their preferences and requirements. Under the new regulations, cardholders will have the flexibility to migrate to a different payment network while keeping their existing card accounts, balances, and credit history intact. This concept of card network portability enables consumers to transfer their card accounts from one network to another, similar to switching mobile service providers while retaining the same phone number. Operational challenges and increased costs While the draft regulation holds significant advantages for customers, such as decision-making authority and portability, banks may face operational challenges and increased costs. Banks will need to review existing agreements, establish new partnerships, adjust customer onboarding processes, provide additional training, and reevaluate customer profiling. The impact on the manufacturing process of banking cards is another factor that banks will need to evaluate in the coming months. With the proposed implementation date set for October 1, 2023, banks face a tight timeline of less than 90 days to implement the extensive organizational changes. Primary Beneficiaries The primary beneficiaries of this new regulation are customers, as card issuers will be obligated to offer more than one card network and provide the option for customers to choose their preferred network during card issuance or even afterward. This move also opens up the potential for innovative offerings by different network providers, offering broader advantages for customers in the future. In India, authorized card networks, including MasterCard, Visa, American Express Banking Corp, Diners Club International, and National Payments Corporation of India - RuPay, partner with banks and non-banking financial institutions for card issuance. Previously, banks had been exclusively tying up with a few dominant networks, limiting customer choice. The RBI's proposed regulation aims to eliminate such restrictions and promote a level playing field for all card networks. India's credit card market: A Snapshot The credit card market in India has been booming, with credit card outstanding reaching Rs 2 lakh crore, a year-on-year rise of 29.7 per cent. Banks have issued 8.65 crore credit cards as of April 2023, with monthly credit payments exceeding Rs one lakh crore. The surge in credit card usage reflects the growing purchasing power of the country. However, it is crucial to ensure responsible practices by credit card companies while issuing cards, considering the significant outstanding debt. RuPay: Striving for dominance RuPay, India's domestic card payment network, has been striving to gain a foothold in the credit card space, which is dominated by international networks like Visa and MasterCard. RuPay's dominance in the debit card market, capturing 65 per cent of the market share, contrasts with its minimal presence in the credit card space. The government has been promoting RuPay through initiatives such as linking credit cards to UPI and may consider further incentives to boost its adoption. The RBI's draft regulation is expected to significantly change the credit card landscape, providing customers with greater choices and fostering competition among card networks. Stakeholders have been invited to provide their comments on the proposal, with the potential mandate expected to come into effect in October. (With Inputs from Agencies)

Credit card network revolution: RBI grants Indian customers the power to choose

In a groundbreaking move the Reserve Bank of India(RBI) has introduced a draft regulation that gives debit credit and prepaid cardholders the freedom to choose the Preferred Card Network. This regulation challenges the existing properties where current Network options are predetermined by agreements between the issuers and even networks. The RBI aims to promote customer choice and flexibility enhancing competition in the credit card markets.

RBI is transforming India's credit card industry by promoting customer choice and flexibility

India is witnessing a major economic shift, which can reshape the consumer spending landscape in India. It is a shift which is already mirroring patterns observed in the United States.&nbsp;

We are talking about the growing&nbsp;credit card craze in India.&nbsp;

In the United States, debt is a constant companion for many Americans. According to the US Federal Reserve, credit card debt has soared to a mind boggling $988 billion as of April 2023, marking an all-time high for a country that has historically thrived on credit.&nbsp;

Across the globe, India is witnessing a similar shift in consumer spending patterns just like the US. The Reserve Bank of India reveals that credit card dues in India have surged by nearly 30 percent from April 2022 to 2023, reaching a staggering $30 billion.&nbsp;

So, what does this economic transformation mean for the world's fastest-growing major economy?

On the bright side, India's credit card frenzy is fueling the digital revolution. India is heading towards becoming a cashless society faster than most developed nations, with transactions happening at lightning speed and minimal costs. The credit card spree also stimulates consumer spending, drives economic growth, and opens up new avenues for businesses to thrive.

However, India's central bank has been raising concerns about the potential risks associated with the credit card frenzy. Excessive credit card debt can lead to financial instability, impacting individuals and the broader economy.

PRO TIP:&nbsp;As competition among fintech players intensifies in India, the ease of "buy now, pay later" has reached unprecedented levels.&nbsp;But it is crucial to keep a watchful eye on those credit card bills because chasing reward points today could dent your future goals tomorrow.

India is witnessing a major economic shift, which can reshape the consumer spending landscape in India. It is a shift which is already mirroring patterns observed in the United States.

India is witnessing a major economic shift, which can reshape the consumer spending landscape in India. It is a shift which is already mirroring patterns observed in the United States. We are talking about the growing credit card craze in India. In the United States, debt is a constant companion for many Americans. According to the US Federal Reserve, credit card debt has soared to a mind boggling $988 billion as of April 2023, marking an all-time high for a country that has historically thrived on credit. Across the globe, India is witnessing a similar shift in consumer spending patterns just like the US. The Reserve Bank of India reveals that credit card dues in India have surged by nearly 30 percent from April 2022 to 2023, reaching a staggering $30 billion. So, what does this economic transformation mean for the world's fastest-growing major economy? On the bright side, India's credit card frenzy is fueling the digital revolution. India is heading towards becoming a cashless society faster than most developed nations, with transactions happening at lightning speed and minimal costs. The credit card spree also stimulates consumer spending, drives economic growth, and opens up new avenues for businesses to thrive. However, India's central bank has been raising concerns about the potential risks associated with the credit card frenzy. Excessive credit card debt can lead to financial instability, impacting individuals and the broader economy. PRO TIP: As competition among fintech players intensifies in India, the ease of "buy now, pay later" has reached unprecedented levels. But it is crucial to keep a watchful eye on those credit card bills because chasing reward points today could dent your future goals tomorrow.

Decoded: The growing credit card frenzy in India

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State-run banks' gross non-performing assets (GNPAs) from the credit card segment have doubled to 18 per cent at the end of FY23, the Reserve Bank of India said on Wednesday. It was about 9 per cent in the year-ago period and the same stood at around 15 per cent in September 2022, the central bank said in its biannual Financial Stability Report (FSR). 
 
The data release comes amid news reports stating that the RBI has been cautioning banks about the risks of unsecured books, which include credit cards, personal loans, and microfinance. 
 
The FSR released on Wednesday said at an overall level, there was a marginal uptick in the NPAs in the credit card&nbsp;receivables category for the banking system in FY23 at 2 per cent.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/indian-stock-market-hits-record-high-levels-know-whats-behind-the-rally-and-will-it-sustain-609700">Indian stock market hits record high levels; know what’s behind the rally, and will it sustain</a> 
 
Even as the state-run lenders showed heightened stress, private sector banks' GNPAs from credit card receivables remained broadly flat at 1.9 per cent, while the same was 1.8 per cent for foreign banks. 
 
At an overall level, the banking system's GNPAs fell to a 10-year-low of 3.9 per cent at the end of FY23, and are expected to improve further to 3.6 per cent by the end of FY24 under the baseline scenario, RBI said. 
 
Meanwhile, RBI said that high inflation coupled with a rise in borrowing costs adversely impacts the finances of households and their loan repayment capacity and stressed that this can have implications for lending banks. 
 
Identifying different measures of risks using individual home loan data, it found that a twin shock in the form of a simultaneous increase in inflation and lending rates can put even households with sustainable repayment capacity at risk and double the loans at risk.

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State-run banks' gross non-performing assets (GNPAs) from the credit card segment have doubled to 18 per cent at the end of FY23, the Reserve Bank of India said on Wednesday.

State-run banks' gross non-performing assets (GNPAs) from the credit card segment have doubled to 18 per cent at the end of FY23, the Reserve Bank of India said on Wednesday. It was about 9 per cent in the year-ago period and the same stood at around 15 per cent in September 2022, the central bank said in its biannual Financial Stability Report (FSR). The data release comes amid news reports stating that the RBI has been cautioning banks about the risks of unsecured books, which include credit cards, personal loans, and microfinance. The FSR released on Wednesday said at an overall level, there was a marginal uptick in the NPAs in the credit card receivables category for the banking system in FY23 at 2 per cent. Also read | Indian stock market hits record high levels; know what’s behind the rally, and will it sustain Even as the state-run lenders showed heightened stress, private sector banks' GNPAs from credit card receivables remained broadly flat at 1.9 per cent, while the same was 1.8 per cent for foreign banks. At an overall level, the banking system's GNPAs fell to a 10-year-low of 3.9 per cent at the end of FY23, and are expected to improve further to 3.6 per cent by the end of FY24 under the baseline scenario, RBI said. Meanwhile, RBI said that high inflation coupled with a rise in borrowing costs adversely impacts the finances of households and their loan repayment capacity and stressed that this can have implications for lending banks. Identifying different measures of risks using individual home loan data, it found that a twin shock in the form of a simultaneous increase in inflation and lending rates can put even households with sustainable repayment capacity at risk and double the loans at risk. WATCH WION LIVE HERE:

Credit card NPAs for state-run banks zoom to 18% at FY23-end: RBI

The price of tomatoes have exponentially risen over the last two days, with a massive hike in the price of the vegetable in Delhi NCR, Mumbai, Bengaluru and more prominent cities in India. This is leading to massive loss being incurred by farmers, despite tomatoes being a staple food across India. Watch this to know more.

Tomato prices in India: What's driving the hike? All you need to know

Governor of Reserve Bank of India Shaktikanta Das said on Monday (June 26) that the impact of the withdrawal of Rs 2,000 currency notes on the economy will be "very very marginal" as the notes accounted for only 10.8 per cent of the currency in circulation.

He described the withdrawal exercise as being part of the currency management operations of the Reserve Bank of India. He said he expected most of the withdrawn&nbsp;Rs 2,000 notes to be returned by September 30, which is the deadline to return the notes.

"As you know that Rs 2,000 notes were not commonly used in any transaction … We have found that it is hardly being used for carrying out transactions. Therefore, economic activity will not be impacted," he said as per Press Trust of India (PTI)

"As part of a clean note policy, he said, RBI has been conducting such exercise of withdrawal of currency notes from time to time and such exercise was undertaken in 2013-14, whereby the notes which were printed prior to 2005, were withdrawn from public circulation."

Asked if ₹2,000 notes will continue to be&nbsp;legal tender, Das said, “It will continue as legal tender. We will wait how many notes are coming. I cannot give a speculative answer about what will happen post-September 30.”&nbsp;

"Most of the notes are expected to come back," he said, adding “that is our expectation at this stage. We will see how many notes come back. And as we approach September 30, we will decide at that stage.”

<h2>No need to panic</h2>

Das said that there was enough time available for people to exchange and deposit the notes in bank accounts so there was no need to panic.&nbsp;

The governor explained that there were more than adequate notes available in the system.

“So there is adequate stock available and there is no reason to worry whatsoever. We have more than sufficient stocks,” he said.

He stressed that RBI was sensitive to difficulties possibly faced by Indians on long foreign visits or those who are living in other countries on work visas.

Also Read | <a href="https://www.wionews.com/india-news/indian-clock-tells-story-of-most-populous-nation-608958">Indian clock tells story of most populous nation</a>

“It will be our endeavour to address the difficulties of the people and to complete the entire process in a smooth manner,” he said.

To a question regarding black money coming back to the system, he said, there is a set procedure for deposits in your account or cash exchange.

“What we have said is that the existing requirements or the existing procedures have to be followed by the banks. We have not come out with an additional procedure. You must be aware that there’s an income tax rule if you deposit cash above Rs 50,000 then you have to produce your PAN. So existing rules will apply,” he said.

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Governor of Reserve Bank of India Shaktikanta Das said on Monday (June 26) that the impact of the withdrawal of Rs 2,000 currency notes on the economy will be "very very marginal" as the notes accounted for only 10.

Governor of Reserve Bank of India Shaktikanta Das said on Monday (June 26) that the impact of the withdrawal of Rs 2,000 currency notes on the economy will be "very very marginal" as the notes accounted for only 10.8 per cent of the currency in circulation. He described the withdrawal exercise as being part of the currency management operations of the Reserve Bank of India. He said he expected most of the withdrawn Rs 2,000 notes to be returned by September 30, which is the deadline to return the notes. "As you know that Rs 2,000 notes were not commonly used in any transaction … We have found that it is hardly being used for carrying out transactions. Therefore, economic activity will not be impacted," he said as per Press Trust of India (PTI) "As part of a clean note policy, he said, RBI has been conducting such exercise of withdrawal of currency notes from time to time and such exercise was undertaken in 2013-14, whereby the notes which were printed prior to 2005, were withdrawn from public circulation." Asked if ₹2,000 notes will continue to be legal tender, Das said, “It will continue as legal tender. We will wait how many notes are coming. I cannot give a speculative answer about what will happen post-September 30.” "Most of the notes are expected to come back," he said, adding “that is our expectation at this stage. We will see how many notes come back. And as we approach September 30, we will decide at that stage.” No need to panic Das said that there was enough time available for people to exchange and deposit the notes in bank accounts so there was no need to panic. The governor explained that there were more than adequate notes available in the system. “So there is adequate stock available and there is no reason to worry whatsoever. We have more than sufficient stocks,” he said. He stressed that RBI was sensitive to difficulties possibly faced by Indians on long foreign visits or those who are living in other countries on work visas. Also Read | Indian clock tells story of most populous nation “It will be our endeavour to address the difficulties of the people and to complete the entire process in a smooth manner,” he said. To a question regarding black money coming back to the system, he said, there is a set procedure for deposits in your account or cash exchange. “What we have said is that the existing requirements or the existing procedures have to be followed by the banks. We have not come out with an additional procedure. You must be aware that there’s an income tax rule if you deposit cash above Rs 50,000 then you have to produce your PAN. So existing rules will apply,” he said. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

'Very very marginal' impact on economy: RBI governor on Rs 2,000 note withdrawal

RBI governor Shaktikanta Das has received the 'Governor of the Year' award at London's Central Banking Awards 2023.

Das has been awarded for his pivotal role in implementing critical reforms, driving world-leading payment innovations, and steering India through challenging times with exceptional leadership skills.&nbsp;

Das was recommended for the award by London-based international economic research journal Central Banking in March 2023.

Assuming the position of RBI governor in December 2018, Das faced a challenging situation as one of India's major Non-Banking Financial Companies (NBFCs) went bankrupt, triggering a liquidity crunch. This event exposed significant flaws in the business models of several mid-sized banks that heavily relied on NBFCs. Subsequently, other banks, including Punjab and Maharashtra Co-operative Bank, also faced collapse.

The award statement said that Das' tenure "has been marked by a series of grave challenges, starting with the collapse of a major non-banking firm, moving through the first and second waves of the coronavirus, and then, in 2022, Russia’s invasion of Ukraine and its inflationary impact."&nbsp;

The organizers highlighted Das's significant accomplishments, including the resolution of collapsed non-bank financial companies and the steady improvement of the banking sector, which had hindered India's growth for an extended period.&nbsp;

Das is the second Central Bank governor to receive this prestigious award, following Raghuram Rajan, who won the title in 2015.&nbsp;

In addition to successfully addressing India's banking crisis, the statement lauded Das for effectively managing India's response to the COVID-19 pandemic and for skillfully tackling the inflationary impact of Russia's invasion of Ukraine.&nbsp; 
&nbsp;

RBI governor Shaktikanta Das has received the 'Governor of the Year' award at London's Central Banking Awards 2023. Das has been awarded for his pivotal role in implementing critical reforms, driving world-leading payment innovations, and steering India through challenging times with exceptional leadership skills.

RBI governor Shaktikanta Das has received the 'Governor of the Year' award at London's Central Banking Awards 2023. Das has been awarded for his pivotal role in implementing critical reforms, driving world-leading payment innovations, and steering India through challenging times with exceptional leadership skills. Das was recommended for the award by London-based international economic research journal Central Banking in March 2023. Assuming the position of RBI governor in December 2018, Das faced a challenging situation as one of India's major Non-Banking Financial Companies (NBFCs) went bankrupt, triggering a liquidity crunch. This event exposed significant flaws in the business models of several mid-sized banks that heavily relied on NBFCs. Subsequently, other banks, including Punjab and Maharashtra Co-operative Bank, also faced collapse. The award statement said that Das' tenure "has been marked by a series of grave challenges, starting with the collapse of a major non-banking firm, moving through the first and second waves of the coronavirus, and then, in 2022, Russia’s invasion of Ukraine and its inflationary impact." The organizers highlighted Das's significant accomplishments, including the resolution of collapsed non-bank financial companies and the steady improvement of the banking sector, which had hindered India's growth for an extended period. Das is the second Central Bank governor to receive this prestigious award, following Raghuram Rajan, who won the title in 2015. In addition to successfully addressing India's banking crisis, the statement lauded Das for effectively managing India's response to the COVID-19 pandemic and for skillfully tackling the inflationary impact of Russia's invasion of Ukraine.

Shaktikanta Das named ‘Governor of the Year’ at London Central Banking Awards 2023

The Reserve Bank of India (RBI) has unanimously decided not to raise the Repo Rate as it expects retail inflation to decline further after it eased in April.

RBI’s Monetary Policy Committee— which is responsible for fixing the benchmark interest rate— announced its decision following a meeting on Thursday.&nbsp;

"The MPC decided unanimously to keep the policy change unchanged at 6.5 per cent," RBI Governor Shaktikanta Das said&nbsp;while announcing the second bi-monthly policy for 2023-24.

Repo Rate&nbsp;is the rate of interest at which commercial banks in India borrow money from the Reserve Bank of India.&nbsp;Changes in Repo Rate affect the flow of money in the market. It is&nbsp;a powerful arm of the Indian monetary policy that can regulate the country's money supply, inflation levels, and liquidity.

Das said that the MPC decided, by a majority of 5 out of 6, to continue with its stance of "withdrawal of accommodation". The MPC will take further decisions "promptly and appropriately as required",&nbsp;he added.

While keeping the interest rate intact, Das said that headline inflation remains above RBI's target of 4 per cent and expected it to remain so during the rest of the year.

The inflation projection has been slashed marginally to 5.1 per cent from an earlier estimate of 5.2 per cent for the current financial year. He said retail inflation has been below the upper band of 6 per cent for the last two years.

<h2>Indian economy expected to grow 6.7 per cent in 2024, says UN report</h2>

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The meeting took place against the backdrop of a decline in the Consumer Price-based (CPI) inflation—– the primary yardstick for monetary policymaking—as it reached an 18-month low of 4.7 per cent in April. The RBI governor had recently indicated that the CPI for May is expected to be lower than the April figures. The CPI for the last month will be disclosed on June 12.

Experts say that the RBI's decision reflects its commitment to attain twin objectives—keep inflation at bay while supporting business.

"Headline inflation remains high but it’s shaping towards RBI’s comfort zone. The RBI keeping the repo rate paused at 6.50 is certainly a big breather for existing and prospective borrowers who were waiting for rising interest rates to settle. Borrowers whose loan tenures increased due to back-to-back hikes may now consider making partial or full repayment of their loans as the repo rate remains unchanged,"&nbsp;Adhil Shetty, CEO,&nbsp;Bankbazaar.com—one of India's largest online financial service providers,&nbsp;told WION.

"RBI’s decision showcases the central bank’s prudent approach towards maintaining stability and fostering sustainable economic growth considering the global economic risks and uncertainties. By keeping interest rates steady, the RBI has exhibited its commitment to strike a delicate balance between addressing inflation concerns and supporting businesses."

<h2>RBI retains FY24 GDP growth forecast at 6.5%</h2>

Meanwhile, the RBI retained the GDP growth projection for the current fiscal year at 6.5 per cent, on the back of supportive domestic demand conditions.

In April, the central bank had marginally revised upwards the 2023-24 GDP growth projection to 6.5 per cent, from its earlier forecast of 6.4 per cent.

India's economy grew 6.1 per cent in the fourth quarter of 2022-23, pushing up the annual growth rate to 7.2 per cent, as against the 7 per cent anticipated earlier.

Das said the higher rabi crop production in 2022-23, the expected normal monsoon, and the sustained buoyancy in services should support private consumption and the overall economic activity in the current year.

The government's thrust on capital expenditure, moderation in commodity prices and robust credit growth are expected to nurture investment activity, said the Monetary Policy Statement, 2023-24.

Weak external demand, geo-economic fragmentation, and protracted geopolitical tensions, however, pose risks to the outlook, it added.

"Taking all these factors into consideration, real GDP growth for 2023-24 is projected at 6.5 per cent with Q1 at 8 per cent, Q2 at 6.5 per cent, Q3 at 6 per cent, and Q4 at 5.7 per cent, with risks evenly balanced," the governor said.

<h2>Headline inflation projected at 5.1%</h2>

RBI&nbsp;Governor&nbsp;Shaktikanta Das&nbsp;said that CPI headline inflation is projected at 5.1 per cent for FY2023 after taking into account a normal monsoon in the country.&nbsp;

“All is well for Kharif crops. Uncertainiltuy however remain on special and temporal distribution of monsoon, and Al Nino. Taking into account all factors and assuming a normal monsoon, CPI headline inflation is projected at 5.1 per cent for 2023-24," Shaktikanta Das said.&nbsp;

He said that the Indian economy and financial sector come out as strong and resilient.&nbsp;“The domestic&nbsp;macroeconomic&nbsp;fundamentals are strengthening. The current account deficit is expected to have moderated and remain eminently manageable in 2023-24. The rupee remained stable since January this year and India’s&nbsp;foreign exchange&nbsp;reserves stood at $595.1 billion as on June 2," he added.&nbsp;

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The Reserve Bank of India (RBI) has unanimously decided not to raise the Repo Rate as it expects retail inflation to decline further after it eased in April. RBI’s Monetary Policy Committee— which is responsible for fixing the benchmark interest rate— announced its decision following a meeting on Thursday.

The Reserve Bank of India (RBI) has unanimously decided not to raise the Repo Rate as it expects retail inflation to decline further after it eased in April. RBI’s Monetary Policy Committee— which is responsible for fixing the benchmark interest rate— announced its decision following a meeting on Thursday. "The MPC decided unanimously to keep the policy change unchanged at 6.5 per cent," RBI Governor Shaktikanta Das said while announcing the second bi-monthly policy for 2023-24. Repo Rate is the rate of interest at which commercial banks in India borrow money from the Reserve Bank of India. Changes in Repo Rate affect the flow of money in the market. It is a powerful arm of the Indian monetary policy that can regulate the country's money supply, inflation levels, and liquidity. Das said that the MPC decided, by a majority of 5 out of 6, to continue with its stance of "withdrawal of accommodation". The MPC will take further decisions "promptly and appropriately as required", he added. While keeping the interest rate intact, Das said that headline inflation remains above RBI's target of 4 per cent and expected it to remain so during the rest of the year. The inflation projection has been slashed marginally to 5.1 per cent from an earlier estimate of 5.2 per cent for the current financial year. He said retail inflation has been below the upper band of 6 per cent for the last two years. Indian economy expected to grow 6.7 per cent in 2024, says UN report The meeting took place against the backdrop of a decline in the Consumer Price-based (CPI) inflation—– the primary yardstick for monetary policymaking—as it reached an 18-month low of 4.7 per cent in April. The RBI governor had recently indicated that the CPI for May is expected to be lower than the April figures. The CPI for the last month will be disclosed on June 12. Experts say that the RBI's decision reflects its commitment to attain twin objectives—keep inflation at bay while supporting business. "Headline inflation remains high but it’s shaping towards RBI’s comfort zone. The RBI keeping the repo rate paused at 6.50 is certainly a big breather for existing and prospective borrowers who were waiting for rising interest rates to settle. Borrowers whose loan tenures increased due to back-to-back hikes may now consider making partial or full repayment of their loans as the repo rate remains unchanged," Adhil Shetty, CEO, Bankbazaar.com—one of India's largest online financial service providers, told WION. "RBI’s decision showcases the central bank’s prudent approach towards maintaining stability and fostering sustainable economic growth considering the global economic risks and uncertainties. By keeping interest rates steady, the RBI has exhibited its commitment to strike a delicate balance between addressing inflation concerns and supporting businesses." RBI retains FY24 GDP growth forecast at 6.5% Meanwhile, the RBI retained the GDP growth projection for the current fiscal year at 6.5 per cent, on the back of supportive domestic demand conditions. In April, the central bank had marginally revised upwards the 2023-24 GDP growth projection to 6.5 per cent, from its earlier forecast of 6.4 per cent. India's economy grew 6.1 per cent in the fourth quarter of 2022-23, pushing up the annual growth rate to 7.2 per cent, as against the 7 per cent anticipated earlier. Das said the higher rabi crop production in 2022-23, the expected normal monsoon, and the sustained buoyancy in services should support private consumption and the overall economic activity in the current year. The government's thrust on capital expenditure, moderation in commodity prices and robust credit growth are expected to nurture investment activity, said the Monetary Policy Statement, 2023-24. Weak external demand, geo-economic fragmentation, and protracted geopolitical tensions, however, pose risks to the outlook, it added. "Taking all these factors into consideration, real GDP growth for 2023-24 is projected at 6.5 per cent with Q1 at 8 per cent, Q2 at 6.5 per cent, Q3 at 6 per cent, and Q4 at 5.7 per cent, with risks evenly balanced," the governor said. Headline inflation projected at 5.1% RBI Governor Shaktikanta Das said that CPI headline inflation is projected at 5.1 per cent for FY2023 after taking into account a normal monsoon in the country. “All is well for Kharif crops. Uncertainiltuy however remain on special and temporal distribution of monsoon, and Al Nino. Taking into account all factors and assuming a normal monsoon, CPI headline inflation is projected at 5.1 per cent for 2023-24," Shaktikanta Das said. He said that the Indian economy and financial sector come out as strong and resilient. “The domestic macroeconomic fundamentals are strengthening. The current account deficit is expected to have moderated and remain eminently manageable in 2023-24. The rupee remained stable since January this year and India’s foreign exchange reserves stood at $595.1 billion as on June 2," he added. WATCH WION LIVE HERE

Reserve Bank of India keeps Repo Rate unchanged at 6.5%

The Reserve Bank of India (RBI) declared its second instance of maintaining the interest rates at the same level, indicating successful outcomes from RBI monetary policy measures. RBI Governor Shaktikanta Das announced that the repo rate would remain unchanged at 6.5%.

India skips rate hike in June policy meet

India's Central Bank - the Reserve Bank of India - is all to meet for three days, starting today. In the meeting, the Central Bank is expected to announce its latest monetary policy. Now, all eyes are on RBI governor Shaktikanta Das - will he cut rates or keep it unchanged?

India's RBI to meet over monetary policy

India's economy beat expectations to grow at 6.1 percent between January and March 2023. That's not all the government now estimates that the economy grew at 7.2 percent between April 2022 and March of 2023. The financial year 23 data will be music to the years of India's policymakers who have been promoting India as a bright spot in an otherwise gloomy economy. The latest data released by India's Statistics Ministry beat the estimates made by India's Central Bank The Reserve Bank of India which had predicted 5.1 percent growth in the first three months of 2023.

India: A truly 'bright spot' in world economy | Business News

Almost seven years after introducing it into the Indian currency denomination, the country’s central bank, the Reserve Bank of India (RBI), has decided to withdraw Rs 2,000 banknotes.

The move sent shockwaves as it was reminiscent of the 2016 overnight decision taken by the Narendra Modi government where it had delegitimised older Rs 500 and Rs 1,000 notes— which were about 86 per cent of the economy's currency in circulation— in a bid to crackdown against black money and corruption.

However, this time the central bank seemed prepared as it had asked the banks beforehand to prepare dedicated facilities whereby people can deposit the Rs 2,000 notes without any problems.

Moreover, unlike in 2016, the decision to remove Rs 2000 notes might have little impact on common people as it values about 10.8 per cent of the currency in circulation, experts believe.

<h2>Why did the government withdraw Rs 2,000 notes?</h2>

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 1,000 banknotes in circulation at that time.&nbsp;

The objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities&nbsp;and therefore, printing of Rs 2000 banknotes was stopped in 2018-19, the RBI said in a press statement.&nbsp;

The central bank had often said that it wants to reduce high-value notes in circulation and had even stopped printing Rs 2000 notes over the past four years.

"This denomination is not commonly used for transactions," the Reserve Bank of India said in its communication while explaining the decision to withdraw these notes.

A report tabled by the finance ministry in Parliament in December 2022 pointed out that the Rs 2000 denomination in terms of value to the total notes in circulation dipped from 22.6 per cent (March 31, 2020) to 13.8 per cent at the end of March 31, 2022.

The RBI in&nbsp;its annual report in May had also noted a similar trend, saying, "At the end of March 2020, the number of Rs 2000 denomination notes in circulation stood at 274 million, accounting for 2.4 per cent of the total number of currency notes in circulation. The count declined to 245&nbsp;million or two&nbsp;per cent of the total banknotes in circulation as of March 2021 and further fell to 214 million or 1.6 per cent at the end of last fiscal year."

<h2>But why now?</h2>

Speaking to the reporters for the first time since the surprise decision to withdraw the highest denomination&nbsp;currency was taken, RBI Governor Shaktikantha Das on Monday said that the move was part of currency management.&nbsp;He added that Rs 2,000 continues to be legal tender.&nbsp;

The RBI governor further said that there is enough supply of lower-denomination notes (Rs 10, Rs 20, Rs 50, Rs 100, and Rs 500) for exchange purposes even after the withdrawal of Rs 2,000 notes. “We have more than adequate quantity of notes available, already printed, in the system. Not just with the RBI but also with currency chests with the banks,” he said.

When asked if the Rs 1,000 banknote will be re-introduced, Das said that there is no such proposal as of now. He said that people will have a four-month window to deposit the notes, and added "there is no reason to rush to banks immediately".

<h2>Will it affect banks?</h2>

According to the central bank’s directive, people have to deposit or exchange Rs 2,000 notes for smaller denominations by Sept. 30, as a result of which bank deposits will rise.

Since it is still&nbsp;legal tender, the fresh infusion of money will likely boost the bank’s lending capacity, which is currently sluggish.

“This will ease the pressure on deposit rate hikes,” Karthik Srinivasan, group head of financial sector ratings at rating agency ICRA Ltd, told Reuters, adding that the liquidity situation of the banks might also improve.

"Since all the 2000-rupee notes will come back in the banking system, we will see a reduction in cash in circulation and that will in turn help improve banking system liquidity," said Madhavi Arora, an economist at Emkay Global Financial Services.

<h2>Will India’s economy get derailed?</h2>

Das said that the impact of the withdrawal on the economy will be "very very marginal", adding Rs 2,000 currency notes made up for just 10.8 per cent of the total currency in circulation. He said Rs 2,000 rupee notes were introduced primarily to replenish the currency that was withdrawn following the 2016 demonetisation, he said.

According to RBI, the value of Rs 2000 notes in circulation is 3.62 trillion Indian rupees ($44.27 billion). This is about 10.8 per cent of the currency in circulation."

However, some experts predict that small businesses and cash-oriented sectors, such as agriculture and construction, might see inconvenience in the near term.

“To the extent that people holding these notes chose to make purchases with them rather than deposit them in bank accounts, there could be some spurt in discretionary purchases such as gold,” said Yuvika Singhal, an economist at QuantEco Research.

(With inputs from agencies)

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Almost seven years after introducing it into the Indian currency denomination, the country’s central bank, the Reserve Bank of India (RBI), has decided to withdraw Rs 2,000 banknotes.

Almost seven years after introducing it into the Indian currency denomination, the country’s central bank, the Reserve Bank of India (RBI), has decided to withdraw Rs 2,000 banknotes. The move sent shockwaves as it was reminiscent of the 2016 overnight decision taken by the Narendra Modi government where it had delegitimised older Rs 500 and Rs 1,000 notes— which were about 86 per cent of the economy's currency in circulation— in a bid to crackdown against black money and corruption. However, this time the central bank seemed prepared as it had asked the banks beforehand to prepare dedicated facilities whereby people can deposit the Rs 2,000 notes without any problems. Moreover, unlike in 2016, the decision to remove Rs 2000 notes might have little impact on common people as it values about 10.8 per cent of the currency in circulation, experts believe. Why did the government withdraw Rs 2,000 notes? 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 1,000 banknotes in circulation at that time. The objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities and therefore, printing of Rs 2000 banknotes was stopped in 2018-19, the RBI said in a press statement. The central bank had often said that it wants to reduce high-value notes in circulation and had even stopped printing Rs 2000 notes over the past four years. "This denomination is not commonly used for transactions," the Reserve Bank of India said in its communication while explaining the decision to withdraw these notes. A report tabled by the finance ministry in Parliament in December 2022 pointed out that the Rs 2000 denomination in terms of value to the total notes in circulation dipped from 22.6 per cent (March 31, 2020) to 13.8 per cent at the end of March 31, 2022. The RBI in its annual report in May had also noted a similar trend, saying, "At the end of March 2020, the number of Rs 2000 denomination notes in circulation stood at 274 million, accounting for 2.4 per cent of the total number of currency notes in circulation. The count declined to 245 million or two per cent of the total banknotes in circulation as of March 2021 and further fell to 214 million or 1.6 per cent at the end of last fiscal year." But why now? Speaking to the reporters for the first time since the surprise decision to withdraw the highest denomination currency was taken, RBI Governor Shaktikantha Das on Monday said that the move was part of currency management. He added that Rs 2,000 continues to be legal tender. The RBI governor further said that there is enough supply of lower-denomination notes (Rs 10, Rs 20, Rs 50, Rs 100, and Rs 500) for exchange purposes even after the withdrawal of Rs 2,000 notes. “We have more than adequate quantity of notes available, already printed, in the system. Not just with the RBI but also with currency chests with the banks,” he said. When asked if the Rs 1,000 banknote will be re-introduced, Das said that there is no such proposal as of now. He said that people will have a four-month window to deposit the notes, and added "there is no reason to rush to banks immediately". Will it affect banks? According to the central bank’s directive, people have to deposit or exchange Rs 2,000 notes for smaller denominations by Sept. 30, as a result of which bank deposits will rise. Since it is still legal tender, the fresh infusion of money will likely boost the bank’s lending capacity, which is currently sluggish. “This will ease the pressure on deposit rate hikes,” Karthik Srinivasan, group head of financial sector ratings at rating agency ICRA Ltd, told Reuters, adding that the liquidity situation of the banks might also improve. "Since all the 2000-rupee notes will come back in the banking system, we will see a reduction in cash in circulation and that will in turn help improve banking system liquidity," said Madhavi Arora, an economist at Emkay Global Financial Services. Will India’s economy get derailed? Das said that the impact of the withdrawal on the economy will be "very very marginal", adding Rs 2,000 currency notes made up for just 10.8 per cent of the total currency in circulation. He said Rs 2,000 rupee notes were introduced primarily to replenish the currency that was withdrawn following the 2016 demonetisation, he said. According to RBI, the value of Rs 2000 notes in circulation is 3.62 trillion Indian rupees ($44.27 billion). This is about 10.8 per cent of the currency in circulation." However, some experts predict that small businesses and cash-oriented sectors, such as agriculture and construction, might see inconvenience in the near term. “To the extent that people holding these notes chose to make purchases with them rather than deposit them in bank accounts, there could be some spurt in discretionary purchases such as gold,” said Yuvika Singhal, an economist at QuantEco Research. (With inputs from agencies)

Explained | Will withdrawal of Rs 2,000 banknotes impact the Indian economy?

While the world grapples with the tremors of a banking crisis in the United States, India stands tall as a beacon of resilience and economic strength. Despite the challenges posed by external factors, India's growth trajectory remains steadfast, supported by a robust banking sector and a steadfast commitment to financial stability.

In its latest assessment cited by Reuters, the Reserve Bank of India (RBI) revealed that India's economy has sustained the growth momentum witnessed in the previous fiscal quarter of 2022-23. This steadfast progress is a testament to the country's ability to weather storms and adapt to shifting global dynamics.

With a keen focus on managing risks and enhancing governance, the RBI, India's central bank, convened a meeting with senior management of government-owned banks to reinforce the importance of prudence and preparedness. The central bank urged lenders to strengthen their boards and fortify risk management frameworks, ensuring the early identification of potential vulnerabilities.

Amidst a high growth in credit and a surge of over 15 percent in loan demand compared to the previous year, the RBI cautioned that such rapid expansion could expose banks to the risk of bad loans. However, it also emphasized the need for continued financial and operational resilience, highlighting India's proactive approach to risk management.

Domestic Surge Amid Global Downfall

India's services exports have demonstrated commendable growth, with March witnessing a 13.1 percent year-on-year rise to $30.48 billion. This positive trend continued in April, as provisional government data indicated a further increase to $30.36 billion. Such resilience in the services sector significantly contributes to India's economic stability, serving as a buffer against external volatilities.

While the US banking crisis sends ripples across the global financial landscape, India's banking system remains largely insulated. The country's prudent lending practices and diligent risk management have shielded it from the worst effects of the crisis, allowing it to maintain steady growth and protect the interests of depositors and borrowers.

India's commitment to capital expenditure and public spending further bolsters its economic resilience. With a renewed focus on investment activity, the nation is set to benefit from increased capital expenditure and moderation in commodity prices. These factors, coupled with a revival in rural demand and the buoyancy of manufacturing, contribute to India's positive growth outlook and ability to withstand external shocks.

Inputs from Reuters)

While the world grapples with the tremors of a banking crisis in the United States, India stands tall as a beacon of resilience and economic strength. Despite the challenges posed by external factors, India's growth trajectory remains steadfast, supported by a robust banking sector and a steadfast commitment to financial stability.

While the world grapples with the tremors of a banking crisis in the United States, India stands tall as a beacon of resilience and economic strength. Despite the challenges posed by external factors, India's growth trajectory remains steadfast, supported by a robust banking sector and a steadfast commitment to financial stability. In its latest assessment cited by Reuters, the Reserve Bank of India (RBI) revealed that India's economy has sustained the growth momentum witnessed in the previous fiscal quarter of 2022-23. This steadfast progress is a testament to the country's ability to weather storms and adapt to shifting global dynamics. With a keen focus on managing risks and enhancing governance, the RBI, India's central bank, convened a meeting with senior management of government-owned banks to reinforce the importance of prudence and preparedness. The central bank urged lenders to strengthen their boards and fortify risk management frameworks, ensuring the early identification of potential vulnerabilities. Amidst a high growth in credit and a surge of over 15 percent in loan demand compared to the previous year, the RBI cautioned that such rapid expansion could expose banks to the risk of bad loans. However, it also emphasized the need for continued financial and operational resilience, highlighting India's proactive approach to risk management. Domestic Surge Amid Global Downfall India's services exports have demonstrated commendable growth, with March witnessing a 13.1 percent year-on-year rise to $30.48 billion. This positive trend continued in April, as provisional government data indicated a further increase to $30.36 billion. Such resilience in the services sector significantly contributes to India's economic stability, serving as a buffer against external volatilities. While the US banking crisis sends ripples across the global financial landscape, India's banking system remains largely insulated. The country's prudent lending practices and diligent risk management have shielded it from the worst effects of the crisis, allowing it to maintain steady growth and protect the interests of depositors and borrowers. India's commitment to capital expenditure and public spending further bolsters its economic resilience. With a renewed focus on investment activity, the nation is set to benefit from increased capital expenditure and moderation in commodity prices. These factors, coupled with a revival in rural demand and the buoyancy of manufacturing, contribute to India's positive growth outlook and ability to withstand external shocks. Inputs from Reuters)

From Crisis to Confidence: RBI Says India's Growth Momentum Shines Bright

The Reserve Bank of India removed 2,000 rupee notes from circulation on Friday. Until September 30, 2023, the central bank has invited banks to offer 2,000 note deposit and exchange services.

Deposits or Exchange? Bank sends mixed signals

Indian banks exchange Rs 2,000 notes ahead of Demonetisation 2.0

The Reserve Bank Of India (RBI) stated that India’s growth momentum was intact in the march quarter. The inflation outcome is also set to be better than the forecast. This comes as the RBI pushes for stronger governance and risk management

Indian economy stable amidst US banking chaos

The withdrawal of INR 2,000 currency notes from circulation may actually boost India’s economy temporarily. As per economists, consumers in India might use Rs 2,000 notes to&nbsp;snap up costly products, such as jewellery and real estate, in order to quickly get rid of them.

Watch:&nbsp;Reserve Bank of India to withdraw ₹2000 notes from circulation

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People might also resort to buying other household items like air conditioners and refrigerators. Ankita Pathak, an economist at DSP Investment Managers, was quoted as saying by Hindustan Times, “It is expected to help growth a bit because consumption is expected to go up.”

<h2>Panic buying already visible among customers</h2>

Earlier, The Times of India reported that the decision on&nbsp;Rs 2,000 currency notes has prompted panic buying among Indian customers. People even complained that store owners were quoting higher prices for gold when paid with Rs 2,000 notes. However, it must be noted that high-value cash transactions will attract the attention of tax authorities as pan card details are mandatorily registered with the sellers.

<a href="https://www.wionews.com/business-economy/what-rbi-will-do-with-your-out-of-use-rs2000-currency-note-595116">Also Read |&nbsp;What RBI will do with your out-of-use ₹2000 currency note</a>

Gnansekharan Thiagrajan, director at Commtrendz Research, said, “There is some knee-jerk reaction here. When cash is involved, one of the things you use it for is to buy gold. Definitely, it will push up demand for now and it may make up for the lost demand during Akshay Tritiya when prices reached a peak. It will be a gradual increase in demand as there is time to exchange notes."

<h2>People also rushing to petrol pumps</h2>

The usage of Rs 2,000 notes for cash purchases of fuel at petrol pumps has significantly increased to nearly 90 per cent of daily sales. This surge occurred as buyers hurried to utilise the withdrawn currency notes.

Prior to the unexpected announcement of the withdrawal of Rs 2,000 notes, cash sales at petrol pumps accounted for only 10 per cent. However, after the announcement, customers began using the withdrawn note for smaller purchases of Rs 100 or Rs 200, anticipating that petrol pumps would provide change.

<h2>10.8 per cent of notes removed from circulation</h2>

The Reserve Bank of India (RBI) has announced that citizens have until September 30 to deposit or exchange Rs 2,000 notes as part of a "clean note policy." The decision aims to manage the country's currency effectively. RBI Governor Shaktikanta Das reiterated this stance, stating that there has always been reluctance in accepting Rs 2,000 rupee notes, which may have increased further following the notification.

This move will result in approximately 10.8 per cent of the notes being taken out of circulation. It is worth noting that this measure is different from the previous demonetisation exercise, which removed 86 per cent of the currency from the system.

<h2>Surge expected in conspicuous spending</h2>

Experts also noted that people’s reluctance to disclose their cash holdings may lead to conspicuous spending in the coming days. The decision of banning Rs 2,000 notes is also expected to improve liquidity in the country.&nbsp;

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The withdrawal of INR 2,000 currency notes from circulation may actually boost India’s economy temporarily. As per economists, consumers in India might use Rs 2,000 notes to snap up costly products, such as jewellery and real estate, in order to quickly get rid of them.

The withdrawal of INR 2,000 currency notes from circulation may actually boost India’s economy temporarily. As per economists, consumers in India might use Rs 2,000 notes to snap up costly products, such as jewellery and real estate, in order to quickly get rid of them. Watch: Reserve Bank of India to withdraw ₹2000 notes from circulation × People might also resort to buying other household items like air conditioners and refrigerators. Ankita Pathak, an economist at DSP Investment Managers, was quoted as saying by Hindustan Times, “It is expected to help growth a bit because consumption is expected to go up.” Panic buying already visible among customers Earlier, The Times of India reported that the decision on Rs 2,000 currency notes has prompted panic buying among Indian customers. People even complained that store owners were quoting higher prices for gold when paid with Rs 2,000 notes. However, it must be noted that high-value cash transactions will attract the attention of tax authorities as pan card details are mandatorily registered with the sellers. Also Read | What RBI will do with your out-of-use ₹2000 currency note Gnansekharan Thiagrajan, director at Commtrendz Research, said, “There is some knee-jerk reaction here. When cash is involved, one of the things you use it for is to buy gold. Definitely, it will push up demand for now and it may make up for the lost demand during Akshay Tritiya when prices reached a peak. It will be a gradual increase in demand as there is time to exchange notes." People also rushing to petrol pumps The usage of Rs 2,000 notes for cash purchases of fuel at petrol pumps has significantly increased to nearly 90 per cent of daily sales. This surge occurred as buyers hurried to utilise the withdrawn currency notes. Prior to the unexpected announcement of the withdrawal of Rs 2,000 notes, cash sales at petrol pumps accounted for only 10 per cent. However, after the announcement, customers began using the withdrawn note for smaller purchases of Rs 100 or Rs 200, anticipating that petrol pumps would provide change. 10.8 per cent of notes removed from circulation The Reserve Bank of India (RBI) has announced that citizens have until September 30 to deposit or exchange Rs 2,000 notes as part of a "clean note policy." The decision aims to manage the country's currency effectively. RBI Governor Shaktikanta Das reiterated this stance, stating that there has always been reluctance in accepting Rs 2,000 rupee notes, which may have increased further following the notification. This move will result in approximately 10.8 per cent of the notes being taken out of circulation. It is worth noting that this measure is different from the previous demonetisation exercise, which removed 86 per cent of the currency from the system. Surge expected in conspicuous spending Experts also noted that people’s reluctance to disclose their cash holdings may lead to conspicuous spending in the coming days. The decision of banning Rs 2,000 notes is also expected to improve liquidity in the country. WATCH WION LIVE HERE ×

Indians rush to jewellery stores, petrol pumps after Rs 2,000 note withdrawal

The Reserve Bank of India (RBI) on Friday announced the withdrawal of the ₹2,000 denomination notes from circulation, advised people to exchange or deposit the notes by September 30.

India's Rs. 2000 note ban results in social media circus

India's central bank, as part of its 'Clean Note Policy', declared that ₹2,000 currency notes will no longer be in circulation in the world’s fifth largest economy. The Reserve Bank of India has declared September 30, 2023, as the deadline to exchange the to-be-scrapped notes. The notes, however, will continue to be legal tender.&nbsp;

As of March 31, 2023, ₹2,000 currency notes constituted 10.8 per cent of notes in circulation. This translates to about ₹3.62 lakh crore of currency notes. The Reserve Bank of India, while explaining the move, said that the stock of other banknotes in denominations continues to be "adequate" to meet the currency requirement of the public.

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/india-clean-note-policy-rbi-governor-explains-decision-to-withdraw-rs-2000-notes-594981">'Clean note policy': RBI governor explains decision to withdraw Rs 2,000 notes</a>

For the ₹2,000 currency notes at the end of their lifespan, the Reserve Bank of India will bring back into vogue its remarkable Currency Verification and Processing System (CVPS).

<h2>What RBI will do with scrapped currency notes: About Currency Verification Processing System</h2>

The RBI has&nbsp;rules in place for the disposal of notes unfit for circulation.&nbsp;

The currency notes, after collection from the concerned banks, are deposited at the Issue offices of the Reserve Bank. After grouping and sorting them under the Currency Verification and Processing System (CVPS), the RBI examines the currency notes to determine their genuineness.&nbsp;

ALSO WATCH |&nbsp;Reserve Bank of India: 'Clean money policy' reason for withdrawal

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Each CVPS installation is capable of processing up to 60,000 currency notes each hour. CVPS counts the notes and separates genuine ones from fake currency notes. The fake notes are destroyed by shredding.

But there is a catch.

The genuine currency notes which still had quality and life left for circulation before being deemed scrapped, are shredded in a way that they could be recycled into the new currency papers.

This means that the paper used to make the ₹2,000 currency note would eventually come back to your pocket in some other denomination.

<h2>What happens to fake or less-qualitative currency notes?</h2>

They are shredded and converted into briquettes. Such briquettes are sold for industrial use through a tender invited by the Reserve Bank of India.&nbsp;

In 2016, when India's Prime Minister Narendra Modi announced the demonetisation of about 89 per cent of the country's currency in circulation, RBI's state branch in Kerala state's Thiruvananthapuram sold it to India's only hardboard-making factory, The Western India Plywoods Limited.&nbsp;

The factory in the state's Kannur district reportedly uses a combination of around five&nbsp;per cent of the paper pulp created from these notes with 95 per cent of conventional wood pulp to make hardboards.

The Kannur factory reportedly received around 80 metric tonnes of shredded demonetised notes in the first three weeks after November 8, 2016, when the demonetisation was implemented.&nbsp;

WION has reached out to The Western India Plywoods Limited for a comment on the story. The story will be updated if and when they respond.&nbsp;

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India's central bank, as part of its 'Clean Note Policy', declared that ₹2,000 currency notes will no longer be in circulation in the world’s fifth largest economy.

India's central bank, as part of its 'Clean Note Policy', declared that ₹2,000 currency notes will no longer be in circulation in the world’s fifth largest economy. The Reserve Bank of India has declared September 30, 2023, as the deadline to exchange the to-be-scrapped notes. The notes, however, will continue to be legal tender. As of March 31, 2023, ₹2,000 currency notes constituted 10.8 per cent of notes in circulation. This translates to about ₹3.62 lakh crore of currency notes. The Reserve Bank of India, while explaining the move, said that the stock of other banknotes in denominations continues to be "adequate" to meet the currency requirement of the public. ALSO READ | 'Clean note policy': RBI governor explains decision to withdraw Rs 2,000 notes For the ₹2,000 currency notes at the end of their lifespan, the Reserve Bank of India will bring back into vogue its remarkable Currency Verification and Processing System (CVPS). What RBI will do with scrapped currency notes: About Currency Verification Processing System The RBI has rules in place for the disposal of notes unfit for circulation. The currency notes, after collection from the concerned banks, are deposited at the Issue offices of the Reserve Bank. After grouping and sorting them under the Currency Verification and Processing System (CVPS), the RBI examines the currency notes to determine their genuineness. ALSO WATCH | Reserve Bank of India: 'Clean money policy' reason for withdrawal × Each CVPS installation is capable of processing up to 60,000 currency notes each hour. CVPS counts the notes and separates genuine ones from fake currency notes. The fake notes are destroyed by shredding. But there is a catch. The genuine currency notes which still had quality and life left for circulation before being deemed scrapped, are shredded in a way that they could be recycled into the new currency papers. This means that the paper used to make the ₹2,000 currency note would eventually come back to your pocket in some other denomination. What happens to fake or less-qualitative currency notes? They are shredded and converted into briquettes. Such briquettes are sold for industrial use through a tender invited by the Reserve Bank of India. In 2016, when India's Prime Minister Narendra Modi announced the demonetisation of about 89 per cent of the country's currency in circulation, RBI's state branch in Kerala state's Thiruvananthapuram sold it to India's only hardboard-making factory, The Western India Plywoods Limited. The factory in the state's Kannur district reportedly uses a combination of around five per cent of the paper pulp created from these notes with 95 per cent of conventional wood pulp to make hardboards. The Kannur factory reportedly received around 80 metric tonnes of shredded demonetised notes in the first three weeks after November 8, 2016, when the demonetisation was implemented. WION has reached out to The Western India Plywoods Limited for a comment on the story. The story will be updated if and when they respond. 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.

What will RBI do with your out-of-use ₹2,000 currency notes?

Reserve Bank of India: 'Clean money policy' reason for withdrawal

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