According to global financial services major HSBC, the minutes of the MPC meeting held earlier in June show that the members are more flexible in their outlook and ready to be convinced by lower inflation prints over the next few months.
After the RBI on Tuesday identified 12 NPAs, which can be taken up under the Insolvency and Bankruptcy Code, bankers now await word on easier provisioning norms.
With RBI taking control, the resolution process will be fastened. However, borrowers can still use legal loopholes to delay the process, a senior SBI official said.
According to Bank of America Merrill Lynch, further delays in RBI rate cuts will likely endanger the much-needed bank lending rate cut before the busy industrial season.
The framework would include creation of a separate cell to identify issues pertaining to non-performing assets (NPAs) or bad loans and have a clause providing definitive time-frame for the resolution process, sources said.
According to Japanese financial services major Nomura, the RBI is looking through the current low inflation prints and may keep policy rates unchanged in 2017.
In recent times, several instances of looting of cash vans and banks, as well as ATMs dispensing fake currency notes have been reported from different parts of the country.
The bank will be called Fincare Small Finance Bank, and will start operations from July this year, the company said in a statement here today.
In the reporting month, the central bank had bought USD 5.02 billion while it sold USD 1.486 billion in the spot market, according to the central bank data.
According to the Japanese financial services major, the country is going to see gradual recovery from demonetisation, led by exports and a remonetisation-led pick-up in urban consumption and transportation services.
The aim of setting up the Public Debt Management Agency (PDMA) is to resolve issues relating to conflict of interest as RBI decides on the key interest rates as well as undertakes buying and selling of government bonds.
While leaving the repo rate intact, the Reserve Bank said it will take steps to deal with the mounting problem of bad loans in the banking sector and try to keep inflation in check.
Reserve Bank spared the already beleaguered banks any further burden in its effort to suck out excess liquidity from the banking system, yet it tempered its kindness with a stern warning on inflation.
Keeping its bullish wave intact, the rupee today soared to a near 20-month high of 64.52, firming up by another 35 paise against the US dollar on massive unwinding of the American currency by exporters amid buoyant growth outlook by the Reserve Bank.
"For 2017-18, inflation is projected to average 4.5 per cent in the first half of the year and 5 per cent in the second half," said the RBI's first bi-monthly monetary policy statement for 2017-18.
According to a CNBC-TV18’s MPC Poll, 100 percent participants expect no repo rate cut in the meeting. For the current year – 2017 – 80 percent respondents expect no cut, while 10 percent a 25 basis point cut. Another 10 percent also expect a 25 bps hike in repo rate in the on-going year.
Malvika Sinha will look after Foreign Exchange Department, Department of Government and Bank Accounts and Internal Debt Management Department.
B.P. Kanungo, a long-serving official with India's central bank, took over as a deputy governor of the Reserve Bank of India on Monday for a three-year term, overseeing a portfolio including currency management, debt management, and payment and settlements.
The Reserve Bank of India is planning to introduce new Rs 200 banknotes. It is awaiting approvals from authorities to print the new currency notes.
Indian banks' loans rose 4.4 percent in the two weeks to March 17 from a year earlier, while deposits rose 13 percent, the Reserve Bank of India's weekly statistical supplement showed on Friday.
India's forex kitty surged by USD 1.15 billion to USD 367.93 billion as of March 24 on the back of increase in the currency assets, the Reserve Bank said on Friday.
According to SBI's research report Ecowrap, already there was excess cash floating in the system before demonetisation and secondly, the push for digital transactions has shifted a sizeable population towards less cash usage.
The RBI shifted to a neutral stance from accommodative in February and this, in turn, may prompt the central bank to hold rates in the ensuing meet early next month.
It is a change from its earlier directive asking banks to remain open on the first day of the next fiscal beginning April 1.