Former RBI Deputy Governor N S Vishwanathan on Wednesday said money laundering and lack of clarity on valuations are the primary concerns of central banks in being circumspect about the introduction of cryptocurrencies. If the government goes ahead and allows cryptocurrencies, bankers need to be wary and not confuse persons’ wealth with the amount of … Read more
Indian sovereign bonds slumped as the central bank’s choice of relatively illiquid papers for its bond-purchase program disappointed traders. Surging global oil prices also weighed on sentiment. The yield on the 5.63 per cent bond maturing in 2026 rose as much as nine basis points to 5.85 per cent, while the 6.64 per cent 2035 … Read more
The Centre may sell its stake in Central Bank of India and Indian Overseas Bank () as part of its mega privatisation initiative unveiled in the Union Budget in February. While the two banks have been recommended for disinvestment by government think tank NITI Aayog, (BoI) may be a potential candidate for sale, sources familiar … Read more
Remittances from Pakistani workers employed abroad rose to a record monthly high of $2.8 billion in April, 56% higher than a year earlier, the central bank said on Tuesday. On a cumulative basis, remittances also surpassed the previous record. Proactive policy measures by the government and State Bank to encourage more inflows through banking channels, … Read more
By Kartik Goyal India’s sovereign bonds are turning a corner as a supply overhang dissipates following a raft of liquidity measures from the central bank. Early signs of economic revival are also spurring hopes of an improvement in government finances. The yield on India’s benchmark 10-year bond fell about 13 basis points over the past … Read more
Policy rates cannot dip below a threshold, beyond which a rate cut could be counter-productive and lead to an economic contraction rather than stimulating it, according to a research report by SBI economists. They further said that lowering policy rates below 3.5% could be counterproductive and recommended an activist fiscal policy going forward. The report … Read more
NEW DELHI: Union government on Thursday suggested states borrow up to Rs 2.35 lakh crore ($31.8 billion) from the market to meet a tax shortfall, a top finance ministry official said. The federal government could also support the states to raise up to Rs 97,000 crore in loans from the central bank at a lower … Read more
Mumbai: The Reserve Bank of India‘s US dollar purchases in June was at a four-year high for any month. Economists said the central bank is building a war chest of reserves to prevent any adverse impact on the rupee amid the Covid-19 crisis. The central bank bought $14.8 billion from the spot currency market in … Read more
MUMBAI: A one-time debt restructuring allowed by India’s central bank to help lenders and borrowers amid the COVID-19 pandemic will prolong uncertainty about the banking sector’s asset quality, Fitch Ratings said on Tuesday. India’s central bank said last week it will allow restructuring of corporate and personal loans to ease debt strains on companies and … Read more