The Reserve Bank will issue a revised circular on bad loan recognition within the next three-four days, replacing the February 12 circular that was struck down by the apex court.

On April 2, the Supreme Court had declared as "ultra vires" the February 12 circular that mandated banks to label even a day's default as NPA.

"The revised circular on February 12 on NPA classification will be issued very shortly, in three to four days," Das told reporters at the customary post-policy announcement.

The RBI on February 12, 2018, issued a framework on resolution of stressed assets under which banks were asked to disclose defaults even of a day and have to find a resolution plan within 180 days in case of large account of Rs 2,000 crore and above failing which it would send for bankruptcy.

The Reserve Bank will issue a revised circular on bad loan recognition within the next three-four days, replacing the February 12 circular that was struck down by the apex court.

The Reserve Bank will issue a revised circular on bad loan recognition within the next three-four days, replacing the February 12 circular that was struck down by the apex court. On April 2, the Supreme Court had declared as "ultra vires" the February 12 circular that mandated banks to label even a day's default as NPA. "The revised circular on February 12 on NPA classification will be issued very shortly, in three to four days," Das told reporters at the customary post-policy announcement. The RBI on February 12, 2018, issued a framework on resolution of stressed assets under which banks were asked to disclose defaults even of a day and have to find a resolution plan within 180 days in case of large account of Rs 2,000 crore and above failing which it would send for bankruptcy.

New NPA resolution norms in 3-4 days: RBI Governor Shaktikanta Das

India Ratings and Research (Ind-Ra) said on Wednesday that an interest rate cut by the Reserve Bank of India (RBI), which is almost certain in the second bi-monthly monetary policy statement for 2019-20, is unlikely to stimulate demand in the near-term due to the absence of quick resonance in the financial market.

"Despite the RBI cutting policy rate by 50 basis points so far in 2019, banks have not adjusted their lending and deposit rate accordingly," it said in a statement.

"On the contrary, a number of banks have raised their deposit rates to mobilise funds."

At the core of this mismatch between the RBI's action and the banks'&nbsp;inability to pass on the benefit to borrowers is the slowdown in household savings, said Ind-Ra.

Increased government borrowing and elevated small savings rate have rendered deposit and investment mobilisation by banks and non-banking finance companies expensive.

Also, India's consumption demand is still not a pronounced credit-fuelled or leveraged demand. Outstanding personal loan (excluding housing loan) and private final consumption expenditure ratio was 35.7 per cent in the fourth quarter of fiscal year-end 19 (28.2 per cent at first quarter fiscal year-end 12).

However, Ind-Ra believes that more than the rate cut, it is the transmission of rate cut into the economy that has emerged as a bigger challenge.

"It is well known that the impact of the monetary policy on the Indian economy is felt with a significant lag, but the situation at the current juncture has become further complicated due to the ongoing crisis in both -&nbsp;the banking and the shadow banking sectors."

While banks are struggling with high non-performing assets, non-banking finance companies are struggling with solvency issues leading to a credit freeze.GDP growth fell to a five-year low in FY19.

Even on a quarterly basis, GDP witnessed a growth slowdown over the fourth quarter of FY18 to the fourth quarter of FY19, continuing the trend observed over the first quarter of FY17 to the first quarter of FY18.On the other hand, inflation is undershooting RBI's targeted four per cent mark consecutively for nine months now.

With the softening of global crude oil prices and adequate food grain stock, there is clearly scope for the RBI to announce at least a 25 basis points rate cut.

This will be the third consecutive rate cut adding up to 75 basis points reduction in the policy rate so far in 2019.&nbsp;

India Ratings and Research (Ind-Ra) said on Wednesday that an interest rate cut by the Reserve Bank of India (RBI), which is almost certain in the second bi-monthly monetary policy statement for 2019-20, is unlikely to stimulate demand in the near-term due to the absence of quick resonance in the financial market.

India Ratings and Research (Ind-Ra) said on Wednesday that an interest rate cut by the Reserve Bank of India (RBI), which is almost certain in the second bi-monthly monetary policy statement for 2019-20, is unlikely to stimulate demand in the near-term due to the absence of quick resonance in the financial market. "Despite the RBI cutting policy rate by 50 basis points so far in 2019, banks have not adjusted their lending and deposit rate accordingly," it said in a statement. "On the contrary, a number of banks have raised their deposit rates to mobilise funds." At the core of this mismatch between the RBI's action and the banks' inability to pass on the benefit to borrowers is the slowdown in household savings, said Ind-Ra. Increased government borrowing and elevated small savings rate have rendered deposit and investment mobilisation by banks and non-banking finance companies expensive. Also, India's consumption demand is still not a pronounced credit-fuelled or leveraged demand. Outstanding personal loan (excluding housing loan) and private final consumption expenditure ratio was 35.7 per cent in the fourth quarter of fiscal year-end 19 (28.2 per cent at first quarter fiscal year-end 12). However, Ind-Ra believes that more than the rate cut, it is the transmission of rate cut into the economy that has emerged as a bigger challenge. "It is well known that the impact of the monetary policy on the Indian economy is felt with a significant lag, but the situation at the current juncture has become further complicated due to the ongoing crisis in both - the banking and the shadow banking sectors." While banks are struggling with high non-performing assets, non-banking finance companies are struggling with solvency issues leading to a credit freeze.GDP growth fell to a five-year low in FY19. Even on a quarterly basis, GDP witnessed a growth slowdown over the fourth quarter of FY18 to the fourth quarter of FY19, continuing the trend observed over the first quarter of FY17 to the first quarter of FY18.On the other hand, inflation is undershooting RBI's targeted four per cent mark consecutively for nine months now. With the softening of global crude oil prices and adequate food grain stock, there is clearly scope for the RBI to announce at least a 25 basis points rate cut. This will be the third consecutive rate cut adding up to 75 basis points reduction in the policy rate so far in 2019.

Reserve Bank of India's interest rate cut in monetary policy unlikely to stimulate growth: Report

India's manufacturing sector expanded at its quickest pace in three months in May on improved output and new orders, according to a private business survey which also showed a pick up in hiring.

The survey found increased optimism about manufacturing activity over the coming year, probably helped as Prime Minister Narendra Modi scored a dramatic election victory on a mandate of business-friendly policies and a tough stand on national security.

Almost 70% of responses were collected after exit polls showed Modi's Bharatiya Janata Party would return to power for a second term.

The <a href="https://www.wionews.com/business-economy/sensex-jumps-over-200-points-ahead-of-rbi-policy-meet-223755">Nikkei Manufacturing Purchasing Managers' Index</a> increased to 52.7 in May from April's eight-month low of 51.8, remaining above the 50-mark threshold that separates growth from contraction for a 22nd straight month.

"A revival in new order growth promoted a faster upturn in manufacturing production, as Indian firms sought to replenish inventories utilised in May to fulfil strengthening demand," Pollyanna De Lima, principal economist at IHS Markit, said in a release.

The new business orders sub-index, which tracks overall demand, rose as foreign demand increased at the fastest pace in three months. Output also grew at the strongest rate since February.

That led firms to increase the pace of hiring from the previous month when headcount was barely changed.

"To assist with higher output needs, and benefit from relatively muted cost inflation, companies stepped up hiring and input purchasing," De Lima said.

"Goods producers were also able to charge competitive prices due to negligible increases in their cost burdens, meaning not only higher sales in the domestic market, but also greater overseas demand."

Although input costs increased at a stronger pace in May, manufacturers did not pass on those pressures to customers and instead trimmed prices for the first time since December. The output prices sub-index dropped to 49.9 from 50.8.

That will help keep retail inflation muted and well below the Reserve Bank of India's 4% target, increasing the likelihood of an interest rate cut at the next policy review on June 6.

If the central bank cuts rates this week, as expected, it would mark the third consecutive easing in as many meetings.

India's manufacturing sector expanded at its quickest pace in three months in May on improved output and new orders, according to a private business survey which also showed a pick up in hiring.

India's manufacturing sector expanded at its quickest pace in three months in May on improved output and new orders, according to a private business survey which also showed a pick up in hiring. The survey found increased optimism about manufacturing activity over the coming year, probably helped as Prime Minister Narendra Modi scored a dramatic election victory on a mandate of business-friendly policies and a tough stand on national security. Almost 70% of responses were collected after exit polls showed Modi's Bharatiya Janata Party would return to power for a second term. The Nikkei Manufacturing Purchasing Managers' Index increased to 52.7 in May from April's eight-month low of 51.8, remaining above the 50-mark threshold that separates growth from contraction for a 22nd straight month. "A revival in new order growth promoted a faster upturn in manufacturing production, as Indian firms sought to replenish inventories utilised in May to fulfil strengthening demand," Pollyanna De Lima, principal economist at IHS Markit, said in a release. The new business orders sub-index, which tracks overall demand, rose as foreign demand increased at the fastest pace in three months. Output also grew at the strongest rate since February. That led firms to increase the pace of hiring from the previous month when headcount was barely changed. "To assist with higher output needs, and benefit from relatively muted cost inflation, companies stepped up hiring and input purchasing," De Lima said. "Goods producers were also able to charge competitive prices due to negligible increases in their cost burdens, meaning not only higher sales in the domestic market, but also greater overseas demand." Although input costs increased at a stronger pace in May, manufacturers did not pass on those pressures to customers and instead trimmed prices for the first time since December. The output prices sub-index dropped to 49.9 from 50.8. That will help keep retail inflation muted and well below the Reserve Bank of India's 4% target, increasing the likelihood of an interest rate cut at the next policy review on June 6. If the central bank cuts rates this week, as expected, it would mark the third consecutive easing in as many meetings.

India factory activity grows at fastest pace in three months in May: PMI

India's slowing economic growth is of serious concern and the country needs to urgently cut tax and interest rates to revive the economy, a top industrial body said on Monday ahead of the inauguration of Prime Minister Narendra Modi's second term.

The economy grew 6.6% in the three months to December - the slowest pace in five quarters - and the Federation of Indian Chambers of Commerce &amp; Industry (FICCI) said the bigger worry was that domestic consumption was not growing fast enough to offset a weakening global economic environment.

"The recent signs of slowdown in the economy stem not only from slow growth in investments and <a href="https://www.wionews.com/india-general-elections-2019/next-5-years-is-time-to-regain-indias-lost-position-in-world-pm-modi-221824">subdued exports</a> but also from weakening growth in consumption demand," FICCI said in a statement suggesting various measures the government could adopt in the next budget expected in a month.

"This is a matter of serious concern and if not addressed urgently, the repercussions would be long term."

Modi - who won a thumping majority in the general election despite the agricultural sector's economic woes, a shortage of jobs and the stuttering economy - takes oath of office on Thursday and will need a finance minister who can help navigate through the challenges facing the economy.

Watch: Next 5 years are crucial for India, says&nbsp;PM Modi

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Some of the issues are slowing industrial output and manufacturing growth, slumping car and two-wheeler sales, and a drop in airline passenger traffic.

FICCI said the new government should cut corporate and individual taxes, expand a programme of handing 6,000 rupees ($86) a year to poor farmers to boost consumption demand and consider tax concessions for export-oriented manufacturers.

The Confederation of Indian Industry, another industry body, said it was crucial to reduce the income tax burden and expand the <a href="https://www.wionews.com/india-general-elections-2019/narendra-modi-to-take-oath-as-pm-on-may-30-221788">scope of investment </a>allowance to all sectors, while higher incentives should be given to exporters.

The FICCI also called for an interest rate cut from the Reserve Bank of India (RBI), as real interest rates have remained high for a long time with commercial banks reluctant to pass on the benefits of recent cuts.

When Modi took power for the first time in 2014, global oil prices slumped. But as he gets set for a second term, rising oil prices could push the current account deficit higher.

The body also said the trade war between the United States and China could further slow down global trade and hurt India's already sluggish exports.

"Amidst rising uncertainties and economic challenges on both the domestic and global front, there is an urgent need to re-energise the engines of growth and pump prime the economy," FICCI said.

"The upcoming budget...is an opportunity for the government to boost consumption and investments through appropriate fiscal stimulus and policies."

Government bureaucrats have started consultations with industry bodies, such as the FICCI, before the budget.

India's slowing economic growth is of serious concern and the country needs to urgently cut tax and interest rates to revive the economy, a top industrial body said on Monday ahead of the inauguration of Prime Minister Narendra Modi's second term.

India's slowing economic growth is of serious concern and the country needs to urgently cut tax and interest rates to revive the economy, a top industrial body said on Monday ahead of the inauguration of Prime Minister Narendra Modi's second term. The economy grew 6.6% in the three months to December - the slowest pace in five quarters - and the Federation of Indian Chambers of Commerce & Industry (FICCI) said the bigger worry was that domestic consumption was not growing fast enough to offset a weakening global economic environment. "The recent signs of slowdown in the economy stem not only from slow growth in investments and subdued exports but also from weakening growth in consumption demand," FICCI said in a statement suggesting various measures the government could adopt in the next budget expected in a month. "This is a matter of serious concern and if not addressed urgently, the repercussions would be long term." Modi - who won a thumping majority in the general election despite the agricultural sector's economic woes, a shortage of jobs and the stuttering economy - takes oath of office on Thursday and will need a finance minister who can help navigate through the challenges facing the economy. Watch: Next 5 years are crucial for India, says PM Modi × Some of the issues are slowing industrial output and manufacturing growth, slumping car and two-wheeler sales, and a drop in airline passenger traffic. FICCI said the new government should cut corporate and individual taxes, expand a programme of handing 6,000 rupees ($86) a year to poor farmers to boost consumption demand and consider tax concessions for export-oriented manufacturers. The Confederation of Indian Industry, another industry body, said it was crucial to reduce the income tax burden and expand the scope of investment allowance to all sectors, while higher incentives should be given to exporters. The FICCI also called for an interest rate cut from the Reserve Bank of India (RBI), as real interest rates have remained high for a long time with commercial banks reluctant to pass on the benefits of recent cuts. When Modi took power for the first time in 2014, global oil prices slumped. But as he gets set for a second term, rising oil prices could push the current account deficit higher. The body also said the trade war between the United States and China could further slow down global trade and hurt India's already sluggish exports. "Amidst rising uncertainties and economic challenges on both the domestic and global front, there is an urgent need to re-energise the engines of growth and pump prime the economy," FICCI said. "The upcoming budget...is an opportunity for the government to boost consumption and investments through appropriate fiscal stimulus and policies." Government bureaucrats have started consultations with industry bodies, such as the FICCI, before the budget.

Industrial body says Modi needs to cut tax, interest rates to revive economy ahead of  inauguration 

<a href="https://www.wionews.com/business-economy/rbi-to-issue-new-rs-20-denomination-banknotes-213834">The Reserve Bank of India </a>(RBI) on Friday proposed introducing a liquidity coverage ratio (LCR) for large non-banking finance companies (NBFC) to help tackle liquidity problems in the sector.

The central bank said it planned to implement LCR, a liquidity buffer, "in a calibrated manner" over four years starting from April 2020.

The LCR is proposed for all deposit-taking NBFCs, and non-deposit taking NBFCs with an asset size of 50 billion rupees ($720 million) and above.

NBFCs will have to maintain minimum high-quality liquid assets of 100% of total net cash outflows over the following 30 calendar days.

Sources told Reuters this week that the central bank was concerned about liquidity issues facing some of the so-called shadow banks such as mortgage or auto lenders and wants to ensure the problems do not become a systemic issue.

The collapse of the Infrastructure Leasing and Financial Services (IL&amp;FS) last year triggered a series defaults across the shadow banking sector, as borrowing costs for the sector surged.

The Reserve Bank of India (RBI) on Friday proposed introducing a liquidity coverage ratio (LCR) for large non-banking finance companies (NBFC) to help tackle liquidity problems in the sector.

The Reserve Bank of India (RBI) on Friday proposed introducing a liquidity coverage ratio (LCR) for large non-banking finance companies (NBFC) to help tackle liquidity problems in the sector. The central bank said it planned to implement LCR, a liquidity buffer, "in a calibrated manner" over four years starting from April 2020. The LCR is proposed for all deposit-taking NBFCs, and non-deposit taking NBFCs with an asset size of 50 billion rupees ($720 million) and above. NBFCs will have to maintain minimum high-quality liquid assets of 100% of total net cash outflows over the following 30 calendar days. Sources told Reuters this week that the central bank was concerned about liquidity issues facing some of the so-called shadow banks such as mortgage or auto lenders and wants to ensure the problems do not become a systemic issue. The collapse of the Infrastructure Leasing and Financial Services (IL&FS) last year triggered a series defaults across the shadow banking sector, as borrowing costs for the sector surged.

India plans liquidity buffer at shadow banks to aid stressed sector

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

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

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

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

The <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/reserve-bank-of-india-sells-entire-stake-in-national-housing-bank-nabard-to-govt-for-rs-1470-cr-213344&amp;sa=U&amp;ved=2ahUKEwiW_vSLtu_hAhVEPI8KHd4xDdkQFjABegQIDxAC&amp;usg=AOvVaw0NJPzoSw6w8AIY5EPzqTTO">Reserve Bank of India</a> (RBI) has announced that it will shortly issue Rs 20 denomination banknotes, in the Mahatma Gandhi (New) series, bearing the signature of the central bank`s governor Shaktikanta Das.

"The Rs 20 note will be greenish-yellow in colour. The new banknote has a motif of Ellora Caves on the reverse, depicting the country`s cultural heritage," a statement by the RBI said.

All the banknotes in the denomination of Rs 20 issued by the RBI in the earlier series will continue to be legal tender, it clarified.

The note has other designs, geometric patterns aligning with the overall colour scheme, both at the obverse and reverse.

The dimension of the new Rs 20 note will be 63 mm x 129 mm, the statement said. The obverse (front) side of the note contains a see-through register with denominational numeral 100, a latent image with the numeral and also a Devanagari version of the same.

It also contains a portrait of Mahatma Gandhi at the centre, with micro letters `RBI`, `Bharat`, `India` and `20`, along with with a guarantee clause, Governor`s signature with Promise Clause and RBI emblem towards the right of Gandhi`s portrait.

On the right side of the portrait are -- an Ashoka Pillar emblem and electrotype (20) watermarks.&nbsp;

The Reserve Bank of India (RBI) has announced that it will shortly issue Rs 20 denomination banknotes, in the Mahatma Gandhi (New) series, bearing the signature of the central bank`s governor Shaktikanta Das.

The Reserve Bank of India (RBI) has announced that it will shortly issue Rs 20 denomination banknotes, in the Mahatma Gandhi (New) series, bearing the signature of the central bank`s governor Shaktikanta Das. "The Rs 20 note will be greenish-yellow in colour. The new banknote has a motif of Ellora Caves on the reverse, depicting the country`s cultural heritage," a statement by the RBI said. All the banknotes in the denomination of Rs 20 issued by the RBI in the earlier series will continue to be legal tender, it clarified. The note has other designs, geometric patterns aligning with the overall colour scheme, both at the obverse and reverse. The dimension of the new Rs 20 note will be 63 mm x 129 mm, the statement said. The obverse (front) side of the note contains a see-through register with denominational numeral 100, a latent image with the numeral and also a Devanagari version of the same. It also contains a portrait of Mahatma Gandhi at the centre, with micro letters `RBI`, `Bharat`, `India` and `20`, along with with a guarantee clause, Governor`s signature with Promise Clause and RBI emblem towards the right of Gandhi`s portrait. On the right side of the portrait are -- an Ashoka Pillar emblem and electrotype (20) watermarks.

RBI to issue new Rs 20 denomination banknotes

The Supreme Court Friday directed the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/rbi-asks-banks-to-disclose-ilfs-provisions-in-q4-accounts-213288&amp;sa=U&amp;ved=2ahUKEwjutpmwou3hAhXd6XMBHeEhANgQFjABegQIEBAC&amp;usg=AOvVaw1L07xkBtRV2Orfg5PrMmsB">Reserve Bank of India</a> (RBI) to disclose information pertaining to its annual inspection report of banks under the Right to Information (RTI) Act unless they are exempted under law.

A bench headed by Justice L Nageswara Rao also directed the federal bank to review its policy to disclose information relating to banks under RTI, saying "it is duty bound under the law".

The bench, which did not go ahead with contempt proceedings against the RBI, made it clear that it was giving a last opportunity to it to comply with provisions of the transparency law.

The bench said it would have taken a serious view to the refusal of the RBI to part with information under RTI.

"Any further violation shall be viewed seriously," the bench said.

In January this year, the top court had issued contempt notice to RBI for not disclosing annual inspection report of banks under RTI.&nbsp;

Earlier, the apex court and the Central Information Commission, both had held that the RBI cannot deny information to an information seeker under the transparency law unless the material is exempted from disclosure under the law.&nbsp;

The RBI, in its defence, had said that it cannot disclose information as the annual inspection report of the bank contained "fiduciary" information as defined under the transparency law.&nbsp;

The bench was hearing a contempt petition filed by RTI activist S C Agrawal against the RBI.&nbsp;

Agrawal had sought complete information including related documents from RBI on the imposition of fines on some banks for violating rules.

He had also sought the list of banks and the default for which show cause notices were issued to them before the fine was imposed.

Despite the apex court's judgement for disclosure of such information, the RBI had issued a "Disclosure Policy" under which it has listed certain information as being exempted from being disclosed of the RTI Act.

"It is to be noted that this specific information are similar to what were held not to be exempted by the Supreme Court," claimed the plea.

The RBI had refused to disclose such information on the grounds of economic interest and holding such information in a fiduciary relationship with these individual banks.

"Such reason is in direct contempt with this court's judgment. The information titles which are in contempt belong to the Department of Banking Regulation, Banking Supervision, Cooperative Banking Regulation/Department of Cooperative Banking Supervision and Consumer Education and Protection Department.

"This exempted information under the policy was held to be not exempted by the Supreme Court.

Thus, this exemption leads to contempt of this court's order," the plea has said.

The Supreme Court had in 2015 held that RBI should take rigid action against those banks and financial institutions which have been indulging in "disreputable business practices" and said it cannot withhold information on defaulters and other issues covered under the RTI Act.

It had further clarified that RBI cannot withhold information under the "guise" of confidence or trust with financial institutions and is accountable to provide the information sought by the general public.&nbsp;

The Supreme Court Friday directed the Reserve Bank of India (RBI) to disclose information pertaining to its annual inspection report of banks under the Right to Information (RTI) Act unless they are exempted under law.

The Supreme Court Friday directed the Reserve Bank of India (RBI) to disclose information pertaining to its annual inspection report of banks under the Right to Information (RTI) Act unless they are exempted under law. A bench headed by Justice L Nageswara Rao also directed the federal bank to review its policy to disclose information relating to banks under RTI, saying "it is duty bound under the law". The bench, which did not go ahead with contempt proceedings against the RBI, made it clear that it was giving a last opportunity to it to comply with provisions of the transparency law. The bench said it would have taken a serious view to the refusal of the RBI to part with information under RTI. "Any further violation shall be viewed seriously," the bench said. In January this year, the top court had issued contempt notice to RBI for not disclosing annual inspection report of banks under RTI. Earlier, the apex court and the Central Information Commission, both had held that the RBI cannot deny information to an information seeker under the transparency law unless the material is exempted from disclosure under the law. The RBI, in its defence, had said that it cannot disclose information as the annual inspection report of the bank contained "fiduciary" information as defined under the transparency law. The bench was hearing a contempt petition filed by RTI activist S C Agrawal against the RBI. Agrawal had sought complete information including related documents from RBI on the imposition of fines on some banks for violating rules. He had also sought the list of banks and the default for which show cause notices were issued to them before the fine was imposed. Despite the apex court's judgement for disclosure of such information, the RBI had issued a "Disclosure Policy" under which it has listed certain information as being exempted from being disclosed of the RTI Act. "It is to be noted that this specific information are similar to what were held not to be exempted by the Supreme Court," claimed the plea. The RBI had refused to disclose such information on the grounds of economic interest and holding such information in a fiduciary relationship with these individual banks. "Such reason is in direct contempt with this court's judgment. The information titles which are in contempt belong to the Department of Banking Regulation, Banking Supervision, Cooperative Banking Regulation/Department of Cooperative Banking Supervision and Consumer Education and Protection Department. "This exempted information under the policy was held to be not exempted by the Supreme Court. Thus, this exemption leads to contempt of this court's order," the plea has said. The Supreme Court had in 2015 held that RBI should take rigid action against those banks and financial institutions which have been indulging in "disreputable business practices" and said it cannot withhold information on defaulters and other issues covered under the RTI Act. It had further clarified that RBI cannot withhold information under the "guise" of confidence or trust with financial institutions and is accountable to provide the information sought by the general public.

Supreme Court directs RBI to disclose information on bank inspection report under RTI

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

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

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

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

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

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

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

No 5-day a week in commercial banks: RBI

India's goods exports picked up in March, boosted by the weaker rupee despite a slowdown in global trade growth, helping the country to contain its trade deficit despite a surge in oil imports.

Merchandise exports rose 11.02 per cent to $32.55 billion in March from a year earlier, while imports were up 1.44 per cent to $43.44 billion during the same period, a statement by the trade ministry said on Monday.

Oil imports, the biggest item in the import bill, rose 5.55 per cent to $11.75 billion, driven by a rise in Indian demand and increases in global crude prices.

India meets nearly 80 per cent of its fuel demand through imports.

The ministry does not issue separate data for trade in services. That is issued in about a month's time by the Reserve Bank of India.

However, the ministry did issue estimates for goods and services trade in the year to March 31, based on the full-year merchandise trade figures and the first 11 months of services trade.

Total exports of goods and services were estimated at $535.45 billion in the financial year, up 7.97 per cent from a year earlier, compared with estimated imports of $631.29 billion, up 8.48 per cent, the statement said.

Prime Minister Narendra Modi in 2015 set a target to double India's exports of goods and services to $900 billion, raising the country's share of global exports to 3.5 per cent from about two per cent, by 2020.

Modi, who is seeking a second term in a general election that began last week, has been criticised by industry and opposition parties for not doing enough to boost exports and create jobs in the manufacturing sector.

"The prospects for exports look very challenging going forward," said Ravi Sehgal, chairman of the Engineering Export Promotion Council, who referred to a slowdown in global trade amid trade tensions between the United States and China.

Exporters said the new government should make exports its top priority, as this sector has a huge potential for creating jobs, the most pressing need for the country.

India's elections will end on May 19 and the results are expected to be announced on May 23. The latest polls show Modi's party, with support from allies, is likely to form the next government.

India's goods exports picked up in March, boosted by the weaker rupee despite a slowdown in global trade growth, helping the country to contain its trade deficit despite a surge in oil imports.

India's goods exports picked up in March, boosted by the weaker rupee despite a slowdown in global trade growth, helping the country to contain its trade deficit despite a surge in oil imports. Merchandise exports rose 11.02 per cent to $32.55 billion in March from a year earlier, while imports were up 1.44 per cent to $43.44 billion during the same period, a statement by the trade ministry said on Monday. Oil imports, the biggest item in the import bill, rose 5.55 per cent to $11.75 billion, driven by a rise in Indian demand and increases in global crude prices. India meets nearly 80 per cent of its fuel demand through imports. The ministry does not issue separate data for trade in services. That is issued in about a month's time by the Reserve Bank of India. However, the ministry did issue estimates for goods and services trade in the year to March 31, based on the full-year merchandise trade figures and the first 11 months of services trade. Total exports of goods and services were estimated at $535.45 billion in the financial year, up 7.97 per cent from a year earlier, compared with estimated imports of $631.29 billion, up 8.48 per cent, the statement said. Prime Minister Narendra Modi in 2015 set a target to double India's exports of goods and services to $900 billion, raising the country's share of global exports to 3.5 per cent from about two per cent, by 2020. Modi, who is seeking a second term in a general election that began last week, has been criticised by industry and opposition parties for not doing enough to boost exports and create jobs in the manufacturing sector. "The prospects for exports look very challenging going forward," said Ravi Sehgal, chairman of the Engineering Export Promotion Council, who referred to a slowdown in global trade amid trade tensions between the United States and China. Exporters said the new government should make exports its top priority, as this sector has a huge potential for creating jobs, the most pressing need for the country. India's elections will end on May 19 and the results are expected to be announced on May 23. The latest polls show Modi's party, with support from allies, is likely to form the next government.

India's March exports pick up, help contain trade deficit

The biggest risk facing emerging market economies is growing evidence that global growth and trade is weakening, Reserve Bank of India (RBI) Governor Shaktikanta Das has said.

At the same time, emerging markets face a wave of global spillover risks leading to capital outflows, currency and asset price volatility besides tightened financial conditions, posing risks to growth and inflation.

Unsettled trade tensions and developments around Brexit are imparting further downside risks to the outlook, said Das.

"There is considerable uncertainty as to whether this weakness is temporary or the beginning of a recession in advanced economies," he said while addressing the event 'Governor Talks' on the sidelines of International Monetary Fund-World Bank Spring Meetings.

The risk of sudden stops and reversals of capital flows can aggravate existing stress in the balance sheets of lending institutions in some emerging markets and stretch their capital requirements, said Das on Friday.

"For net energy importers like India, the recent firming up of oil prices on production cuts by major suppliers presents risks to current account deficit and inflation. Emerging economies also need to explore alternatives to reduce dependence on conventional energy sources, and give greater focus on renewables and energy efficiency."

India is expected to clock a real GDP growth of 7.2 per cent during 2019-20 and continue to rank as the fastest among large economies of the world.

Inflation has been averaging 3.6 per cent and current account deficit is expected to be about 2.5 per cent of GDP.

Looking ahead, said Das, the priority should be to remain watchful and take coordinated action to revive growth and maintain macroeconomic, financial and price stability.

The biggest risk facing emerging market economies is growing evidence that global growth and trade is weakening, Reserve Bank of India (RBI) Governor Shaktikanta Das has said.

The biggest risk facing emerging market economies is growing evidence that global growth and trade is weakening, Reserve Bank of India (RBI) Governor Shaktikanta Das has said. At the same time, emerging markets face a wave of global spillover risks leading to capital outflows, currency and asset price volatility besides tightened financial conditions, posing risks to growth and inflation. Unsettled trade tensions and developments around Brexit are imparting further downside risks to the outlook, said Das. "There is considerable uncertainty as to whether this weakness is temporary or the beginning of a recession in advanced economies," he said while addressing the event 'Governor Talks' on the sidelines of International Monetary Fund-World Bank Spring Meetings. The risk of sudden stops and reversals of capital flows can aggravate existing stress in the balance sheets of lending institutions in some emerging markets and stretch their capital requirements, said Das on Friday. "For net energy importers like India, the recent firming up of oil prices on production cuts by major suppliers presents risks to current account deficit and inflation. Emerging economies also need to explore alternatives to reduce dependence on conventional energy sources, and give greater focus on renewables and energy efficiency." India is expected to clock a real GDP growth of 7.2 per cent during 2019-20 and continue to rank as the fastest among large economies of the world. Inflation has been averaging 3.6 per cent and current account deficit is expected to be about 2.5 per cent of GDP. Looking ahead, said Das, the priority should be to remain watchful and take coordinated action to revive growth and maintain macroeconomic, financial and price stability.

Slowdown in global growth, trade to hit emerging market economies: RBI Governor

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

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

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

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

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

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

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

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

Indian shares inched higher for a fourth straight session on Tuesday in line with gains in broader Asia supported by strong global cues, as investors turned their focus to a key three-day central bank meeting beginning later in the day.

The Reserve Bank of India (RBI) is expected to cut its benchmark lending rate for a second consecutive time when its meeting ends on Thursday, shortly before the first phase of the national election, a Reuters poll found.

More than 85 per cent of nearly 70 economists polled forecasts the RBI would cut its repo rate to 6.00 per cent on April 4. The consensus showed the central bank would then keep rates on hold through to the middle of next year at least.

Domestic shares also tracked broader Asian markets which continued to rally on the back of positive US and Chinese manufacturing data.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent.

The broader NSE Nifty was up 0.19 per cent at 11,691.55 as of 0623 GMT, while the benchmark BSE Sensex was 0.25 per cent higher at 38,968.97.

Technically, both the Nifty and Sensex were expected to face resistance near the August 2018 high of 38,990. Though the benchmark index breached that level on Monday, it couldn't break the resistance as it closed below the August high.

The price action formed a shooting star candle carrying a long upper shadow with a positive gap, indicating profit booking in the vicinity of the lifetime high, ICICI direct research said in a note.

"Going ahead, we expect the Nifty to consolidate in the broader range of 11,800–11,400," the note added.

Eicher Motors Ltd gained 3.2 per cent and was among the top percentage gainers on the NSE index. The company appointed&nbsp;Vinod K Dasari as the chief executive officer of motorcycle making unit Royal Enfield.

Power companies Power Grid Corp of India and Adani Power Ltd rose over 2.5 per cent each after the Supreme Court dismissed an RBI circular that gave firms 180 days for debt resolution, failing which the issue would be taken under the country's bankruptcy laws.

Bharat Road Network Ltd hit its upper circuit limit of 20 per cent after winning an arbitration award against NHAI.

Index heavyweight Reliance Industries Ltd was among the top drags, falling 0.7 per cent after gaining about 3.2 per cent in the previous three sessions.

Zee Entertainment Enterprises Ltd fell as much as 4.1 per cent to its lowest since February 14.

Software engineering firm Cyient Ltd slumped 10 per cent to its biggest intraday loss in over two years after it said it expects a decline in design led manufacturing revenue during the fourth quarter of fiscal 2019.

Indian shares inched higher for a fourth straight session on Tuesday in line with gains in broader Asia supported by strong global cues, as investors turned their focus to a key three-day central bank meeting beginning later in the day.

Indian shares inched higher for a fourth straight session on Tuesday in line with gains in broader Asia supported by strong global cues, as investors turned their focus to a key three-day central bank meeting beginning later in the day. The Reserve Bank of India (RBI) is expected to cut its benchmark lending rate for a second consecutive time when its meeting ends on Thursday, shortly before the first phase of the national election, a Reuters poll found. More than 85 per cent of nearly 70 economists polled forecasts the RBI would cut its repo rate to 6.00 per cent on April 4. The consensus showed the central bank would then keep rates on hold through to the middle of next year at least. Domestic shares also tracked broader Asian markets which continued to rally on the back of positive US and Chinese manufacturing data. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent. The broader NSE Nifty was up 0.19 per cent at 11,691.55 as of 0623 GMT, while the benchmark BSE Sensex was 0.25 per cent higher at 38,968.97. Technically, both the Nifty and Sensex were expected to face resistance near the August 2018 high of 38,990. Though the benchmark index breached that level on Monday, it couldn't break the resistance as it closed below the August high. The price action formed a shooting star candle carrying a long upper shadow with a positive gap, indicating profit booking in the vicinity of the lifetime high, ICICI direct research said in a note. "Going ahead, we expect the Nifty to consolidate in the broader range of 11,800–11,400," the note added. Eicher Motors Ltd gained 3.2 per cent and was among the top percentage gainers on the NSE index. The company appointed Vinod K Dasari as the chief executive officer of motorcycle making unit Royal Enfield. Power companies Power Grid Corp of India and Adani Power Ltd rose over 2.5 per cent each after the Supreme Court dismissed an RBI circular that gave firms 180 days for debt resolution, failing which the issue would be taken under the country's bankruptcy laws. Bharat Road Network Ltd hit its upper circuit limit of 20 per cent after winning an arbitration award against NHAI. Index heavyweight Reliance Industries Ltd was among the top drags, falling 0.7 per cent after gaining about 3.2 per cent in the previous three sessions. Zee Entertainment Enterprises Ltd fell as much as 4.1 per cent to its lowest since February 14. Software engineering firm Cyient Ltd slumped 10 per cent to its biggest intraday loss in over two years after it said it expects a decline in design led manufacturing revenue during the fourth quarter of fiscal 2019.

Nifty, Sensex rise tracking broader Asia; all eyes on RBI meeting

RBI likely to go for another 25 bps cut

The BSE Sensex ended marginally lower Friday on losses in banking stocks as investors turned cautious after the minutes of RBI's latest policy meeting highlighted growth concerns.

The 30-share Sensex settled 26.87 points, or 0.07 per cent lower at 35,871.48. The broader NSE Nifty inched up 1.80 points, or 0.01 per cent, to 10,791.65.

During the week, Sensex rose 62.53 points or 0.17 per cent, while the Nifty advanced 67.25 points or 0.62 per cent.

Kotak Bank was the biggest loser in the Sensex pack Friday, falling 3.71 per cent, followed by RIL, HDFC Bank, Bajaj Finance, PowerGrid, IndusInd Bank, Asian Paints, HDFC and ITC.

On the other hand, Yes Bank was the top gainer, spurting 3.23 per cent. 
Other winners were Vedanta, Tata Motors, NTPC, M&amp;M, Maruti, ONGC and Hero MotorCorp, rising up to 2.86 per cent.

Sectorally, the BSE bankex and finance indices fell up to 0.43 per cent. Energy and consumer durables too ended in the red.

BSE metal, auto, realty, power and oil and gas indices gained up to 1.62 per cent.

Broader indices outperformed the benchmarks, with the BSE Midcap index gaining 0.38 per cent and the small-cap gauge rising 0.77 per cent.

According to traders, despite positive global cues, investor sentiment turned weak after the Reserve Bank of India (RBI) released the minutes of its latest monetary policy meet after market hours Thursday.

The central bank's Monetary Policy Committee noted the "weakened growth momentum" amidst inflation cooling off as it delivered a surprise rate cut earlier this month.

Meanwhile, the rupee appreciated 5 paise to 71.19 against the US dollar intra-day.

The BSE Sensex ended marginally lower Friday on losses in banking stocks as investors turned cautious after the minutes of RBI's latest policy meeting highlighted growth concerns.

The BSE Sensex ended marginally lower Friday on losses in banking stocks as investors turned cautious after the minutes of RBI's latest policy meeting highlighted growth concerns. The 30-share Sensex settled 26.87 points, or 0.07 per cent lower at 35,871.48. The broader NSE Nifty inched up 1.80 points, or 0.01 per cent, to 10,791.65. During the week, Sensex rose 62.53 points or 0.17 per cent, while the Nifty advanced 67.25 points or 0.62 per cent. Kotak Bank was the biggest loser in the Sensex pack Friday, falling 3.71 per cent, followed by RIL, HDFC Bank, Bajaj Finance, PowerGrid, IndusInd Bank, Asian Paints, HDFC and ITC. On the other hand, Yes Bank was the top gainer, spurting 3.23 per cent. Other winners were Vedanta, Tata Motors, NTPC, M&M, Maruti, ONGC and Hero MotorCorp, rising up to 2.86 per cent. Sectorally, the BSE bankex and finance indices fell up to 0.43 per cent. Energy and consumer durables too ended in the red. BSE metal, auto, realty, power and oil and gas indices gained up to 1.62 per cent. Broader indices outperformed the benchmarks, with the BSE Midcap index gaining 0.38 per cent and the small-cap gauge rising 0.77 per cent. According to traders, despite positive global cues, investor sentiment turned weak after the Reserve Bank of India (RBI) released the minutes of its latest monetary policy meet after market hours Thursday. The central bank's Monetary Policy Committee noted the "weakened growth momentum" amidst inflation cooling off as it delivered a surprise rate cut earlier this month. Meanwhile, the rupee appreciated 5 paise to 71.19 against the US dollar intra-day.

Sensex ends marginally lower; bank stocks fall

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

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

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

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

The Reserve Bank of India Thursday projected an economic growth rate of 7.4 per cent for the next fiscal, up from 7.2 per cent estimated for the current fiscal by Central Statistics Office (CSO).

The gross domestic product (GDP) growth is likely to be influenced by growth in bank credit and overall financial flows to the commercial sectors, though slowing global demand could play a dampener, said an RBI document released after the three-day meeting of the central bank's Monetary Policy Committee (MPC).

The RBI had projected the GDP growth for 2018-19 in the December policy at 7.4 per cent (7.2-7.3 per cent in H2) and at 7.5 per cent for H1:2019-20, with risks somewhat to the downside.

The CSO has estimated GDP growth at 7.2 per cent for 2018-19.

"Looking beyond the current year, the growth outlook is likely to be influenced by... Aggregate bank credit; and overall financial flows to the commercial sector continue to be strong, but are yet to be broad-based," the MPC said.

It further said that in spite of soft crude oil prices and the lagged impact of the recent depreciation of the Indian rupee on net exports, slowing global demand could pose headwinds.

"In particular, trade tensions and associated uncertainties appear to be moderating global growth," it said.

RBI Governor and member of the MPC Shaktikanta Das said the risks are evenly balanced for growth.

The six-member MPC, headed by Das, also noted that the output gap has opened up modestly as actual output has inched lower than potential. 
Investment activity is recovering, but supported mainly by public spending on infrastructure, it said.

The need is to strengthen private investment activity and buttress private consumption, said the MPC document, as the central bank reduced the key lending rate by 0.25 per cent, for the first time in the current fiscal.&nbsp;

The Reserve Bank of India Thursday projected an economic growth rate of 7.4 per cent for the next fiscal, up from 7.2 per cent estimated for the current fiscal by Central Statistics Office (CSO).

The Reserve Bank of India Thursday projected an economic growth rate of 7.4 per cent for the next fiscal, up from 7.2 per cent estimated for the current fiscal by Central Statistics Office (CSO). The gross domestic product (GDP) growth is likely to be influenced by growth in bank credit and overall financial flows to the commercial sectors, though slowing global demand could play a dampener, said an RBI document released after the three-day meeting of the central bank's Monetary Policy Committee (MPC). The RBI had projected the GDP growth for 2018-19 in the December policy at 7.4 per cent (7.2-7.3 per cent in H2) and at 7.5 per cent for H1:2019-20, with risks somewhat to the downside. The CSO has estimated GDP growth at 7.2 per cent for 2018-19. "Looking beyond the current year, the growth outlook is likely to be influenced by... Aggregate bank credit; and overall financial flows to the commercial sector continue to be strong, but are yet to be broad-based," the MPC said. It further said that in spite of soft crude oil prices and the lagged impact of the recent depreciation of the Indian rupee on net exports, slowing global demand could pose headwinds. "In particular, trade tensions and associated uncertainties appear to be moderating global growth," it said. RBI Governor and member of the MPC Shaktikanta Das said the risks are evenly balanced for growth. The six-member MPC, headed by Das, also noted that the output gap has opened up modestly as actual output has inched lower than potential. Investment activity is recovering, but supported mainly by public spending on infrastructure, it said. The need is to strengthen private investment activity and buttress private consumption, said the MPC document, as the central bank reduced the key lending rate by 0.25 per cent, for the first time in the current fiscal.

RBI projects 7.4 per cent GDP growth for FY20

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<a href="http://www.wionews.com/india-news/piyush-goyal-may-present-budget-as-he-gets-additional-charge-of-finance-ministry-192343">Finance Minister Piyush Goyal</a> will meet the CEOs of public sector banks Monday to take stock of the banking sector, and discuss ways to improve their financial health, sources said.

The meeting assumes significance as it comes just three days ahead of the Budget 2019-20, the last from this government before the general elections expected to be held in April-May.

The full-day meeting is likely to be attended by Reserve Bank of India Governor Shaktikanta Das, who is going to announce his first monetary policy review on February 7.

Goyal, who was given additional charge of the finance ministry last Wednesday as <a href="http://www.wionews.com/india-news/arun-jaitley-in-good-health-recovering-rapidly-piyush-goyal-192699">Arun Jaitley is away to the US for treatment</a>, is his expected to discuss a host of issues including credit offtake and bad loan position of lenders.

Among the key issues, sources said, the meeting will review the progress of various schemes of the government being implemented through the government. It will also review the credit flow to MSMEs, agriculture and retail sectors.

Besides, sources said, the meeting will also review the financial performance of the banks for the nine months ended December 2018. 
Non-performing assets (NPAs) would also come up for deliberation, they added.

Public sector banks (PSBs) have seen a decline in bad loans by over Rs 23,000 crore from a peak of Rs 9.62 lakh crore in March 2018 due to various initiatives taken by the government.

At the same time, PSBs have also made a record in the recovery of Rs 60,726 crore in the first half of the current financial year, which is more than double the amount recovered in the corresponding period last year.

According to the latest finance ministry data, non-NPA accounts overdue by 31 to 90 days (Special Mention Accounts 1 &amp; 2) of PSBs have declined by 61 per cent over five successive quarters - from Rs 2.25 lakh crore as of June 2017 to Rs 0.87 lakh crore in September 2018.

In his first stint as finance minister for 100 days last year, Goyal was instrumental in setting up a committee headed by the non-executive chairman of Punjab National Bank Sunil Mehta to examine whether the creation of an asset reconstruction company or asset management company to help in the faster resolution of stressed assets.

Finance Minister Piyush Goyal will meet the CEOs of public sector banks Monday to take stock of the banking sector, and discuss ways to improve their financial health, sources said.

Finance Minister Piyush Goyal will meet the CEOs of public sector banks Monday to take stock of the banking sector, and discuss ways to improve their financial health, sources said. The meeting assumes significance as it comes just three days ahead of the Budget 2019-20, the last from this government before the general elections expected to be held in April-May. The full-day meeting is likely to be attended by Reserve Bank of India Governor Shaktikanta Das, who is going to announce his first monetary policy review on February 7. Goyal, who was given additional charge of the finance ministry last Wednesday as Arun Jaitley is away to the US for treatment, is his expected to discuss a host of issues including credit offtake and bad loan position of lenders. Among the key issues, sources said, the meeting will review the progress of various schemes of the government being implemented through the government. It will also review the credit flow to MSMEs, agriculture and retail sectors. Besides, sources said, the meeting will also review the financial performance of the banks for the nine months ended December 2018. Non-performing assets (NPAs) would also come up for deliberation, they added. Public sector banks (PSBs) have seen a decline in bad loans by over Rs 23,000 crore from a peak of Rs 9.62 lakh crore in March 2018 due to various initiatives taken by the government. At the same time, PSBs have also made a record in the recovery of Rs 60,726 crore in the first half of the current financial year, which is more than double the amount recovered in the corresponding period last year. According to the latest finance ministry data, non-NPA accounts overdue by 31 to 90 days (Special Mention Accounts 1 & 2) of PSBs have declined by 61 per cent over five successive quarters - from Rs 2.25 lakh crore as of June 2017 to Rs 0.87 lakh crore in September 2018. In his first stint as finance minister for 100 days last year, Goyal was instrumental in setting up a committee headed by the non-executive chairman of Punjab National Bank Sunil Mehta to examine whether the creation of an asset reconstruction company or asset management company to help in the faster resolution of stressed assets.

Finance minister Piyush Goyal to meet heads of PSU banks on Monday

<a href="http://www.wionews.com/south-asia/sri-lanka-central-bank-seen-keeping-rates-steady-despite-pressure-on-rupee-report-186681">Sri Lanka's Central Bank </a>on Wednesday said that the Reserve Bank of India (RBI) has agreed to provide $ 400 million under a swap arrangement to boost the island nation's reserves.

"The RBI's very rapid and timely assistance will serve to boost investor confidence by supporting Sri Lanka to maintain an adequate level of external reserves while accommodating outflow related to imports, debt servicing and if necessary support for the currency to avoid disorderly adjustment," it said in a statement.

It said that a further request to the RBI for another SWAP arrangement of $ 1 billion is "under consideration". These are to be made available under the SAARC SWAP facility.

The RBI has agreed to provide the funds under its SAARC (South Asian Association for Regional Cooperation) Swap Facility, the Central Bank said.

Analysts said the RBI's assistance would be much appreciated by Sri Lanka given that the island is still recovering from the political and constitutional crisis in October and November which had an adverse impact on the economy with poor investor sentiment and foreign outflows of capital.

Available Central Bank data showed that in 2018, foreign investors had pulled out a net Rupees 22.8 billion out of stocks, and Rupees 159.8 billion from government securities. The Sri Lankan rupee ended last Thursday at an all-time low of 183 against the $. The rupee fell 19% in 2018, making it one of the worst-performing currencies in Asia.

Central Bank Governor Indrajith Coomaraswamy last week said that the nearly two-month-long political crisis had an adverse impact on the country's economy.

Due to the political crisis, the big three credit rating agencies — Fitch Ratings, Standard &amp; Poor's (S&amp;P) and Moody's — downgraded Sri Lanka's sovereign rating.

President Maithripala Sirisena's dramatic move on October 26 to sack Prime Minister Ranil Wickremesinghe and install former strongman Mahinda Rajapaksa in his place following differences over policy issues, left the country without a functioning government for nearly two months. However, a Supreme court verdict forced Sirisena to reinstate Wickremesinghe.

The Central Bank also announced that Finance Minister Mangala Samaraweera will visit Washington next week to resume negotiations on the IMF's assistance. The IMF had held back discussions on Lanka's next loan tranche due to the political impasse.

After completion of the IMF's fifth review, Lanka would expect to receive a sixth tranche of about — 250 million. The total loan was expected to have been disbursed with a seventh tranche by mid-2019. Sri Lanka is hoping to complete a 3-year programme with the IMF this year.&nbsp;

Sri Lanka's Central Bank said that a further request to the RBI for another SWAP arrangement of $ 1 billion is 'under consideration'.

Sri Lanka's Central Bank on Wednesday said that the Reserve Bank of India (RBI) has agreed to provide $ 400 million under a swap arrangement to boost the island nation's reserves. "The RBI's very rapid and timely assistance will serve to boost investor confidence by supporting Sri Lanka to maintain an adequate level of external reserves while accommodating outflow related to imports, debt servicing and if necessary support for the currency to avoid disorderly adjustment," it said in a statement. It said that a further request to the RBI for another SWAP arrangement of $ 1 billion is "under consideration". These are to be made available under the SAARC SWAP facility. The RBI has agreed to provide the funds under its SAARC (South Asian Association for Regional Cooperation) Swap Facility, the Central Bank said. Analysts said the RBI's assistance would be much appreciated by Sri Lanka given that the island is still recovering from the political and constitutional crisis in October and November which had an adverse impact on the economy with poor investor sentiment and foreign outflows of capital. Available Central Bank data showed that in 2018, foreign investors had pulled out a net Rupees 22.8 billion out of stocks, and Rupees 159.8 billion from government securities. The Sri Lankan rupee ended last Thursday at an all-time low of 183 against the $. The rupee fell 19% in 2018, making it one of the worst-performing currencies in Asia. Central Bank Governor Indrajith Coomaraswamy last week said that the nearly two-month-long political crisis had an adverse impact on the country's economy. Due to the political crisis, the big three credit rating agencies — Fitch Ratings, Standard & Poor's (S&P) and Moody's — downgraded Sri Lanka's sovereign rating. President Maithripala Sirisena's dramatic move on October 26 to sack Prime Minister Ranil Wickremesinghe and install former strongman Mahinda Rajapaksa in his place following differences over policy issues, left the country without a functioning government for nearly two months. However, a Supreme court verdict forced Sirisena to reinstate Wickremesinghe. The Central Bank also announced that Finance Minister Mangala Samaraweera will visit Washington next week to resume negotiations on the IMF's assistance. The IMF had held back discussions on Lanka's next loan tranche due to the political impasse. After completion of the IMF's fifth review, Lanka would expect to receive a sixth tranche of about — 250 million. The total loan was expected to have been disbursed with a seventh tranche by mid-2019. Sri Lanka is hoping to complete a 3-year programme with the IMF this year.

Sri Lanka's Central Bank gets $400 million swap from Reserve Bank of India

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

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

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

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

Reserve Bank of India scales down printing of INR 2000 notes

Urjit Patel stepped down as the Reserve Bank of India (RBI) Governor because of personal reasons and had been telling the Prime Minister for some time about his decision to resign, said <a href="http://www.wionews.com/india-news/2019-lok-sabha-polls-will-be-janta-versus-gathbandhan-pm-modi-187752">Prime Minister Narendra Modi</a> on Tuesday.

"I am revealing for the first time, he (Urjit Patel) was telling me about this for the past 6-7 months before his resignation. He gave it even in writing. He wrote to me personally," <a href="http://www.wionews.com/india-news/those-accusing-me-in-rafale-deal-are-weakening-indian-security-forces-pm-modi-187774">Prime Minister Modi revealed</a>.

<a href="http://www.wionews.com/india-news/surgical-strikes-decision-was-a-big-risk-but-i-was-more-concerned-about-safety-of-soldiers-pm-modi-187741">Also read:&nbsp;Surgical strikes decision was a 'big risk' but I was more concerned about </a><a href="http://www.wionews.com/india-news/surgical-strikes-decision-was-a-big-risk-but-i-was-more-concerned-about-safety-of-soldiers-pm-modi-187741">safety</a><a href="http://www.wionews.com/india-news/surgical-strikes-decision-was-a-big-risk-but-i-was-more-concerned-about-safety-of-soldiers-pm-modi-187741"> of soldiers: PM Modi</a>

Patel resigned in December from his post citing "personal reasons" amidst reports of a rift between the RBI and the government. Prime Minister Modi, after Patel`s resignation, tweeted that the RBI Governor left behind a "great legacy."

The Prime Minister further dispelled the opposition`s criticism that Patel was made to leave.

"No such question arises. I acknowledge that Patel did a good job as RBI Governor," Prime Minister Modi added.

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Stressing that institutions like CBI and judiciary are paramount to his government, the Prime Minister stressed that the opposition Congress party has no right to criticise the BJP by saying that the government weakened such institutions in the country.

"Congress has no right to speak on this issue. Against the PM and PMO, the NAC (National Advisory Council) was formed. What kind of empowerment of the PMO was this? Cabinet takes such a big decision and a big leader tears that Cabinet decision at a press conference. What kind of respect is for an institution?", questioned PM Modi.

"Coming to judiciary, they openly said that we will decide judiciary on the basis of ideology and senior judges were shown the door and junior judges were promoted. And you are talking about institutions? In the same RBI, several times Governors were forced to leave before their term expired. You called Planning Commission people a bunch of jokers," the Prime Minister added.

Prime Minister Modi cleared the air over the government removing the two men at the top of CBI.

In October, CBI Director Alok Verma and his deputy Rakesh Asthana, were relieved of their duties pending an inquiry, after each accused the other of corruption, following which the government sent them on leave, calling it an "extraordinary and unprecedented" situation.

''When CBI internal personal matter came to light, they were both asked to go on leave legally. Because institution is paramount for us," stressed the PM while speaking to ANI.

Opposition parties, especially the Congress, have in recent times, criticised the BJP-led Narendra Modi government of misusing the Enforcement Directorate for political vendetta, often dubbing it as Embarrassment Directorate. Prime Minister, however, allayed the criticism.

"How are these people saying this? Recently, Sohrabuddin judgement came. Just read that judgement. See how institutions were misused. Accusations on us is that Modi is not taking action against these people. And you are saying this is vendetta. ED is doing is job professionally. From a foreign country, a razdaar (confidante) has been brought in custody of India. Should not every Indian be proud of it?", said the Prime Minister, while referring to Christian Michel, the alleged middleman in the Rs 3,600-crore AgustaWestland VVIP chopper deal.

Michel, a UK citizen, was extradited to India from the UAE last month in connection with the case and was respresented by lawyer Aljo K Joseph, who happened to be a Congress party leader but was shunted after controversy over his affiliation erupted.

"If a Congress worker turns up to be Christian Michel`s lawyer, then it is a cause for worry. The countrymen should be proud that razdaar has come, now there will be proper inquiry under legal scrutiny and the truth will come out. Instead of that, you are sending lawyers from your party to support him Michel. This is a matter of concern," Prime Minister added.&nbsp;

Urjit Patel stepped down as the Reserve Bank of India (RBI) Governor because of personal reasons and had been telling the Prime Minister for some time about his decision to resign, said Prime Minister Narendra Modi on Tuesday.

Urjit Patel stepped down as the Reserve Bank of India (RBI) Governor because of personal reasons and had been telling the Prime Minister for some time about his decision to resign, said Prime Minister Narendra Modi on Tuesday. "I am revealing for the first time, he (Urjit Patel) was telling me about this for the past 6-7 months before his resignation. He gave it even in writing. He wrote to me personally," Prime Minister Modi revealed. Also read: Surgical strikes decision was a 'big risk' but I was more concerned about safety of soldiers: PM Modi Patel resigned in December from his post citing "personal reasons" amidst reports of a rift between the RBI and the government. Prime Minister Modi, after Patel`s resignation, tweeted that the RBI Governor left behind a "great legacy." The Prime Minister further dispelled the opposition`s criticism that Patel was made to leave. "No such question arises. I acknowledge that Patel did a good job as RBI Governor," Prime Minister Modi added. × Stressing that institutions like CBI and judiciary are paramount to his government, the Prime Minister stressed that the opposition Congress party has no right to criticise the BJP by saying that the government weakened such institutions in the country. "Congress has no right to speak on this issue. Against the PM and PMO, the NAC (National Advisory Council) was formed. What kind of empowerment of the PMO was this? Cabinet takes such a big decision and a big leader tears that Cabinet decision at a press conference. What kind of respect is for an institution?", questioned PM Modi. "Coming to judiciary, they openly said that we will decide judiciary on the basis of ideology and senior judges were shown the door and junior judges were promoted. And you are talking about institutions? In the same RBI, several times Governors were forced to leave before their term expired. You called Planning Commission people a bunch of jokers," the Prime Minister added. Prime Minister Modi cleared the air over the government removing the two men at the top of CBI. In October, CBI Director Alok Verma and his deputy Rakesh Asthana, were relieved of their duties pending an inquiry, after each accused the other of corruption, following which the government sent them on leave, calling it an "extraordinary and unprecedented" situation. ''When CBI internal personal matter came to light, they were both asked to go on leave legally. Because institution is paramount for us," stressed the PM while speaking to ANI. Opposition parties, especially the Congress, have in recent times, criticised the BJP-led Narendra Modi government of misusing the Enforcement Directorate for political vendetta, often dubbing it as Embarrassment Directorate. Prime Minister, however, allayed the criticism. "How are these people saying this? Recently, Sohrabuddin judgement came. Just read that judgement. See how institutions were misused. Accusations on us is that Modi is not taking action against these people. And you are saying this is vendetta. ED is doing is job professionally. From a foreign country, a razdaar (confidante) has been brought in custody of India. Should not every Indian be proud of it?", said the Prime Minister, while referring to Christian Michel, the alleged middleman in the Rs 3,600-crore AgustaWestland VVIP chopper deal. Michel, a UK citizen, was extradited to India from the UAE last month in connection with the case and was respresented by lawyer Aljo K Joseph, who happened to be a Congress party leader but was shunted after controversy over his affiliation erupted. "If a Congress worker turns up to be Christian Michel`s lawyer, then it is a cause for worry. The countrymen should be proud that razdaar has come, now there will be proper inquiry under legal scrutiny and the truth will come out. Instead of that, you are sending lawyers from your party to support him Michel. This is a matter of concern," Prime Minister added.

Urjit Patel was telling me about resignation for the past 6-7 months: PM Modi

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

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

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

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

System-wide gross non-performing assets of banks rose to 11.2 per cent or at Rs 10.39 trillion in FY18 from 9.3 per cent a year ago, and the share of public sector banks stood at Rs 8.95 trillion, or at 14.6 per cent, according to the Reserve Bank data released Friday.

In FY17, system-wide gross NPAs stood at 9.3 per cent and that of state-run lenders stood at 11.7 per cent.

"During FY18, the GNPA ratio reached 14.6 per cent for state-run banks due to restructured advances slipping into NPAs and better NPA recognition," RBI said in its report on 'Trends &amp; Progress of Banking in 2017-18'.

In terms of the net NPA ratio, state-run banks saw significant deterioration at 8 per cent in FY18 from 6.9 per cent year-ago.

Private sector peers banks' GNPA ratio stood at a much lower level of 4.7 per cent as against 4.1 per cent in FY17.

"Resolute efforts on the part of private sector banks to clean up their balance sheets through higher write-offs and better recoveries also contributed to their lower GNPA ratios," the report said.

Asset quality of foreign banks improved marginally to 3.8 per cent in FY18 from 4 per cent in FY17.

In FY18, the share of doubtful advances in total gross NPAs increased sizeably to Rs 5.11 trillion or 6.7 per cent of the system, driven up by state-run banks whose ratio stood at 9 per cent.

In fiscal 2018, a share of sub-standard and loss assets in GNPAs of private banks declined to 1.1 per cent and 0.2 per cent, respectively due to aggressive write-offs.

During the year under review, the fresh slippages rose for state-run lenders on account of restructured advances slipping into NPAs and a decline in standard advances.

In the previous fiscal, the GNPA ratio of public sector banks arising from larger borrower accounts (exposure of Rs 5 crore and above) increased to 23.1 per cent from 18.1 per cent in the FY17.

But this saw an improvement in FY18. "During the first half of FY18, NPAs in large borrower accounts of state-run banks and private sector banks declined to 21.6 per cent and 7 per cent, respectively," the report said.

The gems &amp; jewellery sector saw a significant increase in GNPAs during FY18 with the unearthing of frauds at PNB, which bore the brunt of the Rs 14,000 crore scam by Nirva Modi and his uncle Mehul Choksi.

"Frauds have emerged as the most serious concern in the management of operational risks, with 90 per cent of them located in the credit portfolio of banks," the report said.

Large value frauds involving Rs 50 crore and above constituted about 80 per cent of all the frauds during 2017-18. Nearly 93 per cent of the frauds worth Rs 10 lakh or more occurred in state-run lenders while private banks accounted for just 6 per cent.

"We will continue to monitor asset quality as well as resolution of stressed assets with a focus on implementation of the new resolution framework," the RBI said in the report.

The monetary authority also said it will look into implementation of Ind-As, corporate governance in banks and a revised framework for securitisation.

The central bank also intends to issue revised prudential regulations including guidelines on exposure/investment norms, risk management framework and select elements of Basel III capital framework, it said.

System-wide gross non-performing assets of banks rose to 11.2 per cent or at Rs 10.39 trillion in FY18 from 9.3 per cent a year ago, and the share of public sector banks stood at Rs 8.

System-wide gross non-performing assets of banks rose to 11.2 per cent or at Rs 10.39 trillion in FY18 from 9.3 per cent a year ago, and the share of public sector banks stood at Rs 8.95 trillion, or at 14.6 per cent, according to the Reserve Bank data released Friday. In FY17, system-wide gross NPAs stood at 9.3 per cent and that of state-run lenders stood at 11.7 per cent. "During FY18, the GNPA ratio reached 14.6 per cent for state-run banks due to restructured advances slipping into NPAs and better NPA recognition," RBI said in its report on 'Trends & Progress of Banking in 2017-18'. In terms of the net NPA ratio, state-run banks saw significant deterioration at 8 per cent in FY18 from 6.9 per cent year-ago. Private sector peers banks' GNPA ratio stood at a much lower level of 4.7 per cent as against 4.1 per cent in FY17. "Resolute efforts on the part of private sector banks to clean up their balance sheets through higher write-offs and better recoveries also contributed to their lower GNPA ratios," the report said. Asset quality of foreign banks improved marginally to 3.8 per cent in FY18 from 4 per cent in FY17. In FY18, the share of doubtful advances in total gross NPAs increased sizeably to Rs 5.11 trillion or 6.7 per cent of the system, driven up by state-run banks whose ratio stood at 9 per cent. In fiscal 2018, a share of sub-standard and loss assets in GNPAs of private banks declined to 1.1 per cent and 0.2 per cent, respectively due to aggressive write-offs. During the year under review, the fresh slippages rose for state-run lenders on account of restructured advances slipping into NPAs and a decline in standard advances. In the previous fiscal, the GNPA ratio of public sector banks arising from larger borrower accounts (exposure of Rs 5 crore and above) increased to 23.1 per cent from 18.1 per cent in the FY17. But this saw an improvement in FY18. "During the first half of FY18, NPAs in large borrower accounts of state-run banks and private sector banks declined to 21.6 per cent and 7 per cent, respectively," the report said. The gems & jewellery sector saw a significant increase in GNPAs during FY18 with the unearthing of frauds at PNB, which bore the brunt of the Rs 14,000 crore scam by Nirva Modi and his uncle Mehul Choksi. "Frauds have emerged as the most serious concern in the management of operational risks, with 90 per cent of them located in the credit portfolio of banks," the report said. Large value frauds involving Rs 50 crore and above constituted about 80 per cent of all the frauds during 2017-18. Nearly 93 per cent of the frauds worth Rs 10 lakh or more occurred in state-run lenders while private banks accounted for just 6 per cent. "We will continue to monitor asset quality as well as resolution of stressed assets with a focus on implementation of the new resolution framework," the RBI said in the report. The monetary authority also said it will look into implementation of Ind-As, corporate governance in banks and a revised framework for securitisation. The central bank also intends to issue revised prudential regulations including guidelines on exposure/investment norms, risk management framework and select elements of Basel III capital framework, it said.

Gross NPAs jump to 11.2% or Rs 10.39 trillion in FY18: RBI Report

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

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

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

RBI to soon release new Rs 20 bank note

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New NPA resolution norms in 3-4 days: RBI Governor Shaktikanta Das