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.
Given the imperious attitude of new leaders to institutions of the old order, the questioning of central bank independence is a given.
The Budget appears to be pro-poor and pro-business, but it fails to address the reforms actually needed to structurally transform the economy.
Proposed amendments to the IT Act and the RBI Act will exempt political parties from keeping records of donations made through electoral bonds.
Proposed amendments to RBI Act, IT Act and RP Act would leave the RBI and IT department with no means to probe funding of political parties.
Improving export competitiveness depends on the government, through prudent fiscal policy, and the RBI, through appropriate monetary policy that maintains price stability.
The Reserve Bank also promised to review the weekly limit in the near future depending on the pace of remonetisation.
The RBI must now revisit its blanket refusal to answer an RTI query on demonetisation and provide a proper reply in a fortnight’s time.
In a letter to RBI governor Urjit Patel, the employee’s union says that the image of the central bank has been dented beyond repair.
Deputy governor R. Gandhi’s claims on the quantity of low-value notes pumped into circulation are false. The giant release of small change is just another attempt at spin.
The Modi government’s claim that the public supports demonetisation ignores the localised agitations and dissenting voices from across the country.
Reddy also said that the problem of black money cannot be eliminated through demonetisation alone.
The latest rules create a window for NRIs and Indians who travel abroad to change their last 500 and 1000 notes, but what about everyone else?
Demonetisation has proved that it’s time we revisit what Gandhi and his colleagues had to say about public welfare and the importance of decentralisation.
More stonewalling from the ‘Reserved’ Bank of India
Calculations based on the meagre numbers the RBI has released prove that the government’s aim of extinguishing black money has fallen flat.
The official line seems to be, ‘Show me your money but I won’t show you my records’.
The gap between what the apex bank claims it has disbursed and what, according to its own earlier numbers, it could possibly have disbursed, has now grown to over Rs 66,000 crore.
Customers with non-KYC accounts will be subject to the stiff conditions imposed by the RBI on December 19 for depositing old notes.
Either parliament has been misled by the government or claims about the supply of new currency by the RBI are flawed.
A renowned economist, he had a deep understanding of the working of the Indian financial system and was an expert on the Chinese economy.
Though India will be affected and the rupee may weaken, comforting levels of foreign exchange reserves will likely soften the blow. Emerging economies with high external debt measured in US$ will suffer more.
The apex bank has repeatedly said that there are enough new notes available in the banking system. But the numbers they are providing show a different reality.
Even with the money presses running at full capacity, it won’t be till July 2017 before the full value of the cash withdrawn by demonetisation is replaced.
Demonetisation has hit every sector of the economy from construction to automobile at the same time and its ripple effects are likely to be felt for months to come.
Everyone knows why the previous governor of RBI had to leave. Urjit Patel understands the circumstances under which he assumed charge but has still risen to the occasion.
Nineteen billion notes of Rs 100, 50 and 10 denomination released so far, says the RBI. Would engaging foreign printing presses have helped with the Rs 500 and Rs 2,000 note supply crunch?
The second fortnight of September saw Rs 3 lakh crore of time deposits, something unique, followed by liquidation of Rs 1.2 lakh crore of these right after.
By avoiding questions on when the situation will normalise and suggesting that the growth forecast doesn’t take into account the transitory impact of demonetisation, Urijit Patel is shunning responsibility.
RBI kept the short-term lending rate unchanged, saying it is adopting a ‘wait and watch’ policy to see the effect of demonetisation.
In an interview with The Wire, D. Raja talks about the need for electoral reforms, BJP’s varying stance on FCRA when it came to the funding of NGOs and political parties and more.
The original assumptions underlying the decision remain unclear, but it seems to be causing considerable harm. Although popular right now, demonetisation may not end up being a good bargain.
Making India a less-cash economy will not necessarily end the generation of black money. It only means that the circulation of black income will take place differently.
The government has alleged that black money hoarders are using poor people’s Jan Dhan accounts to deposit their ill-gotten money.
In an October speech, Reddy noted that there is “a subsisting interest in influential policy circles to keep a window for round-tripping” open.
A petition filed in the Supreme Court argues that a decision like demonetisation, pivotal to monetary policy, can’t be left to the whims of the Centre.
The Wire visited various banks, ATMs, and even the Reserve Bank Of India headquarters in New Delhi to find out how this move has affected the everyday lives of common people.
Demonetisation aims to eradicate black money, but the move deflects attention from the core issue to a dramatic action that may fail to tackle the problem.