RBI is working on making virtual currency a reality

The Reserve Bank of India is working toward a “phased implementation strategy” of a Central Bank Digital Currency (CBDC), RBI deputy governor T Rabi Sankar said on Thursday. A pilot to test a general purpose digital currency is a possibility in the near future, he said. “Every idea has to wait for its time. Perhaps … Read more

‘Mastercard’s dual record maintenance led to RBI ban’

Mumbai: The Reserve Bank of India barred Mastercard Inc. from issuing new cards in India after it found the US-based payments major was storing customers’ data on servers located outside the country and also failing to erase from overseas servers the Indian leg of the transactions data within 24 hours as mandated, three sources aware … Read more

High inflation & liquidity, bubble in asset prices: What can RBI do now?

NEW DELHI: In the 1960s, economists John Fleming and Robert Mundell developed a theory referred to as the Impossible Trinity, which claimed that no central bank can achieve three goals at the same time — a managed foreign exchange rate, free capital flow and an independent monetary policy. The Reserve Bank of India, which has … Read more

Pawar meets PM Modi, red flags change in law to regulate cooperative banks

NCP chief Sharad Pawar, who held an hour-long meeting with Prime Minister Narendra Modi on Saturday, raised serious questions on the constitutional validity of Banking Regulation Act amendments, especially on encroaching into a state subject and violating directive principles of state policy. Pawar’s concerns with granting greater authority to Reserve Bank of India to regulate … Read more

RBI must sacrifice inflation aim to aid growth, says ex-Governor C Rangarajan

By Jaiveer Shekhawat India’s monetary policy makers need to support economic growth even at the cost of their inflation-fighting credentials, as tackling the pandemic situation requires extraordinary measures, a former central bank governor said. The federal government’s large borrowing plan and the Reserve Bank of India’s willingness to support it are bound to fan inflation, … Read more

Tapering second wave brightens economic prospects but demand may take time to return: RBI

The tapering of the second wave of the COVID-19 pandemic coupled with aggressive vaccination has brightened the near-term prospects of the Indian economy, though a solid increase in aggregate demand may take some time, said the Reserve Bank of India on the state of economy. Attributing the rise in inflation to the supply side disruptions … Read more

RBI extends interest subsidy scheme for exporters till September

The Reserve Bank on Thursday said a scheme providing interest subsidy for post and pre-shipment export credit has been extended by three months till September, a move that will provide relief to exporters. Exporters get the subsidy under the ‘Interest Equalisation Scheme for pre and post-shipment Rupee Export Credit’. Earlier in April, the scheme was … Read more

Economic activity recovering since late-May; rising cyber attacks a risk: Shaktikanta Das

The second wave of the pandemic took a “grievous toll” on India, but the dented economic activity has started recovering from late-May, Reserve Bank governor Shaktikanta Das said on Thursday. In a first, Das flagged the rising data breaches and cyber attacks as a risk facing the economy, along with others like firming global commodity … Read more

Credit growth to industrial sector remained negative during FY21 due to COVID-19 crisis: RBI

Credit growth to the industrial sector remained in the negative territory during 2020-21, mainly due to the COVID-19 pandemic and resultant lockdowns, RBI data showed on Tuesday. However, “personal loans continued to grow at robust pace and recorded 13.5 per cent growth (Y-oY) in March 2021; industrial loan growth, on the other hand, remained negative … Read more