As part of the OMO, the RBI will sell government securities maturing in 2019 (bearing interest rate of 7.28 percent), 2020 (8.12 percent), 2022 (8.15 percent), 2025 (8.20 percent) and 2028 (8.60 percent).
Mergers of public sector banks should be done only after balance sheets are cleaned up and these are nursed back to health with adequate capitalisation, former governor of RBI said.
During the reporting month, it bought USD 4.893 billion and sold USD 1.940 billion in the spot market, according to the latest data from the central bank.
The plan is just on the drawing board and they haven't finalised on anything including capital allocation, Group chairman Kumar Mangalam Birla said.
The Reserve Bank of India fixed the reference rate of the rupee at 64.0154 against the US dollar and 76.0439 for the euro.
The Appointments Committee of the Cabinet has approved his re-appointment and nominated him to the central board of the RBI.
NBFCs have recorded much higher annualised growth of about 14 per cent in credit compared to banks.
The minutes of the latest monetary policy meeting that voted for a rate cut are out. It shows that the Governor and most of the members of the committee are worried about growth. However, there is no hint of a near-term rate cut.
In the Essar Steel vs RBI case last week, apparently RBI and the banks won. The Gujarat High Court allowed banks to take Essar Steel to the Bankruptcy Court.
In the previous week, the reserves had marginally declined by USD 161.9 million to USD 386.377 billion.
Retail inflation has seen a sharp slowdown in June while May industrial output has come in at 1.7 percent. In an interview to CNBC-TV18, Amandeep Chopra, Group President and Head of Fixed Income at UTI MF assesses the impact on the bond market.
Initiatives like GST and continuing political stability will push the economic growth scale to 7.3 percent in terms of gross value added in the current fiscal year, RBI said.
RBI will remain open on July 1 for services such as transfer of funds through National Electronic Fund Transfer and real time gross settlement.
The Reserve Bank of India (RBI) has finalised norms for peer-to-peer (P2P) lending platforms and is expected to release final guidelines in 2-3 weeks, a top finance ministry official said.
RBI Governor usually meets Finance Minister before the monetary policy review.
The government's note ban move had a debilitating impact on India's economy, the industry has said.
Finance ministry officials are scheduled to meet panel headed by RBI Governor Urjit Patel this week, ahead of the bi-monthly policy review.
Reserve Bank will soon come out with final guidelines on customer protection which would limit customers liability in case of unauthorised electronic banking transactions, said RBI deputy governor SS Mundra.
The government has notified an ordinance aimed at launching an assault on India's near Rs 10 lakh crore bad loan burden. However, the ordinance is not the only big headline on the non-performing asset (NPA) front. Joint Lender Forums (JLF) have also got more teeth now. Reserve Bank of India (RBI) has issued a notification easing the norms for decision making by lender forums. Watch Latha Venkatesh of CNBC-TV18 explaining the details.
"We are not expecting any action on the rates from RBI, but there is a very strong case for RBI to at least address excess liquidity in the system", Amandeep Chopra, Group President and Head of Fixed Income at UTI MF told CNBC-TV18.
Main focus of the monetary policy is on liquidity and further action depends on whether RBI thinks liquidity is permanent or transitory, Sonal Varma, MD & Chief India Economist at Nomura Financial Advisory & Securities (India) said.
The Yogi Adityanath-led BJP government is keen on implementing its electoral promise of farm loan waivers in Uttar Pradesh, which could cost the state exchequer anywhere between Rs 27,000 crore and Rs 36,000 crore.
It is unlikely that there will be rate hikes in a hurry because the focus is also on getting growth back, Uday Kotak, Managing Director, Kotak Mahindra Bank.