The total stressed loans of the banks – including non-performing and restructured or rolled over loans – rose 4.5% in the six months to end-June.
An RBI survey found that 40.7% of people in metropolitan areas think the economic situation has worsened, up from 25.3% in the same period last year.
The RBI also kept the reverse repo rate unchanged at 5.75%.
With the government planning a fiscal push, it is likely that the central bank will be concerned with price stability and not rate cuts in its October policy meeting.
The consumer price index rose 3.36% in August from a year earlier, compared with 2.36% in July.
The process is “going on in full swing” with most RBI offices working in double shifts and with the help of high-end verification machines, the central bank said.
Demonetisation as a means of tackling the black economy was destined to fail. What’s worse is that its ripple effects are having severe adverse effects on India’s economy.
Given that Indians belong to varied socioeconomic background, there should be flexibility in financial schemes designed for different segments of the unbanked population.
The new denomination has a motif of Sanchi Stupa on the reverse, with bright yellow being the base colour of the note, RBI said in a statement.
At Rs 128807.81 billion, liquidity is now at an all time high. This rise has to be absorbed to keep inflation in check.
An excerpt from Somendranath Bandyopadhyay’s My Days with Ramkinkar Baij where the sculptor and painter shares with the author his experience of sculpting the Yaksha-Yakshi statues that stand outside the central bank in New Delhi.
When India was divided in 1947, the RBI also grappled with a number of tasks that “posed several delicate problems”.
In its mid-year economic survey, chief economic adviser Arvind Subramanian said there were downside risks to the official growth forecast of 6.75-7.5% for the fiscal year to March 2018.
An excerpt from Y.V. Reddy’s ‘Advice and Dissent: My Life in Public Service’ on his time as RBI governor.
The central bank, in the previous year, had paid a dividend of Rs 65,876 crore to the government.
Reserve Bank of India data shows that as of March 2016, the non-priority sector bad loans stood at Rs 4.1 lakh crore.
A weekly column on the sessions of parliament.
The consumer price index rose 1.54% in the 12 months through June, down from an increase of 2.18% in the previous month.
Unemployment has risen and the corporate sector has taken a hit, but the Modi government is relying on statistics to create an illusion of economic growth.
The RBI refused to make the list of loan defaulters public despite an order by the Supreme Court in 2015 to make this information public.
The RTI backlog at the central bank had risen to 38,884 applications at the end of 2015-16 – three times the number of applications received by it during the year.
While the State Bank of India in Arunachal’s capital has blamed the RBI for the shortage, the public and business establishments continue to bear the brunt of the cash crunch.
The ordinance to amend the Banking Regulation Act will give a big boost to the government’s efforts to cut down on non-performing assets in the banking sector.
The discourse around non-performing assets (NPAs) remains largely focused on private corporations, while NPA concentration in public sector undertakings flies under the radar of scrutiny.
The constant extension of a deadline to reduce promoter shareholding could net Uday Kotak and his family members a hefty sum.
The MPC claims that the decision to narrow the policy corridor is consistent with a neutral stance of of monetary policy.
All 60 economists polled by Reuters had predicted the RBI’s monetary policy committee (MPC) would keep the repo rate at the same level since October.
After February’s marginal cut in service headcount, the sector in March created jobs at the fastest pace in nearly two years.
The Nikkei Manufacturing Purchasing Managers’ Index rose to 52.5 in March, from 50.7 in February, the third month in a row that is has been above the 50 mark.
Will the Modi government’s digital push help it curb “excess cash” and print fewer notes than what was extinguished through demonetisation?
An earlier RTI query filed by Subhash Chandra Agrawal had also revealed that it costs Re 1.14 to print a Re 1 note.
Despite the strong mandate, Modi still faces a struggle to implement reforms to boost growth and jobs.
Recent events show that Babasaheb Ambedkar’s fears of democracy giving way to dictatorship if the authority of its leaders remains unchecked may not have been unfounded.
Post demonetisation, the government has been focusing on increasing digital payments and even incentivising people to move away from cash payments.
The Reserve Bank of India last month allowed banks to make AT1 coupon payments from statutory reserves, a move analysts said was aimed at easing pressure on banks to service coupons on the bonds.
The RBI official has proposed creating “bad bank”-type institutions to buy and restructure stressed loans, along with an approach to banks and defaulters that he called “tough love.”
Discussion on serious economic challenges currently faced by India is either absent or trivialised in this year’s Economic Survey.
Both the former and current RBI governors are surely acquainted with the Gujarati saying “Kona Baapni Diwali”. This cannot be the Centre’s stance when it comes to solving India’s NPA crisis.
The RBI’s statement, the first after the Budget, carries forward the Budget’s message of fiscal discipline and consolidation.
If the monetary policy committee waits until April, it will have a better idea of demonetisation’s negative impact and a firmer grasp of global commodity price trends.