The first year of his tenure has been lots of up and down which he has faced with a strong face
The governor could not have asked for a better anniversary gift. And to be fair he deserves it. While the former governor took the responsibility of forcing the recognition of NPAs, to governor Patel goes the credit of shepherding the resolution process.
Urjit Patel, who took over as the 24th RBI governor exactly a year ago, has been put to several tests – and he has passed each.
The country's forex reserves are marching towards the USD 400-billion mark which although might increase macroeconomic stability, will also cause some uptick in inflation, say treasury officials.
In the week gone by, banking sector was relatively less buzzing than the previous weeks as smaller news trends of non-performing assets (NPAs) and retail segment, interest rate reduction by banks and push by the Reserve Bank gained focus
Of the 6 members of MPC headed by Patel, four favoured a 25 bps rate reduction, Ravindra Dholakia voted for a 50 bps reduction while Michael Debabrata Patra voted for status quo.
"The fact that we are talking of using big data is not just some technical mumbo-jumbo, it is actually creating a cycle of investment and growth for India's small businesses, which will lead to economic growth and jobs," he told reporters at an event organised by CII here.
The chapter on `Currency Management’ may include details of banned notes
RBI has been consistently reprimanding banks for not doing enough to pass on the full benefit of its rate actions to the borrowers .
While the rainfall across the country, as on August 1, was one percent above the long period average, 84 percent areas received more than normal rainfall
The difference now stands at 2 percent, after the RBI cut the repo rate by 25 basis points to 6 percent, above the central bank's inflation target of 4 percent.
The rate cut is the RBI's first easing move since one of the same size in October and the first by a central bank in Asia since December - a show of confidence in a country that has experienced a surge in foreign investments into debt and shares this year.
The comments from Subhash Chandra Garg, economic affairs secretary in the finance ministry, came minutes after the central bank cut the policy repo rate by 25 basis points to 6 percent, the lowest since November 2010.
The six-member panel, constituted in September 2016, has three persons appointed by the central government while the rest, including the Governor, are from the RBI.
The six-member monetary policy committee (MPC), headed by new RBI Governor Urjit Patel, were of the view that the moderation in price trends have persisted long enough to warrant lower loan costs.
Four members of the Monetary Policy Committee voted in favour of a 25 bps rate cut while Ravindra Dholakia voted for a 50 bps cut and Michael Debabrata Patra voted for status quo.
But in the past year, this forecasting has been rendered well nigh impossible with the sovereign suddenly extinguishing 85% of the currency. And then, as one disruption settles down another begins: the country has begun implementing a most ambitious single national indirect tax structure replacing and collapsing tax rates of 30 different states.
Growth appears to be a niggling worry, as borne out by recent industrial production, as well as core sector data.
The meeting's outcome is being keenly awaited by all stakeholders including industry and stock markets.
Encouraged by significant price improvement, bankers expect RBI, which has kept rates on hold at 6.25 per cent for the fourth straight time citing risk to inflation, to change its monetary stance and may even go for an aggressive rate cut.
Morgan Stanley Research has revised the headline CPI forecast for calender year 2017 to 3.1 per cent from 3.6 per cent earlier and for 2018 to 4.3 per cent from 4.6 per cent earlier.
According to the global financial services major, inflation in India has fallen dramatically, and though the excessively low level it witnessed this fiscal is not sustainable, the rebound may not be too sharp either.
Most experts expect the central bank to cut the repo rate by 0.25 percentage points to 6 percent on August 2, but without lifting the steadfast focus on cooling inflation
Patel was appearing before the Finance Standing Committee of Parliament. Opposition members who posed some difficult questions to the RBI chief were not satisfied with the answer. A member wondered if the counting would get over “before May 2019” when the term of the Narendra Modi government ends.
During the more than three-hour long meeting of the Standing Committee on Finance, Patel took a lot of questions but members, who did not want to be named, said he did not provide any "specific number" on the amount of money that came back to the system post-demonetisation on November 8.