The Reserve Bank of India (RBI) was established on April 1 1935 and is the country’s central bank that is responsible for creating financial stability and regulating the country’s currency and credit systems. RBI was established under the Reserve Bank of India Act. It is responsible for regulating the Indian banking system and also managing the country’s main payment systems. Under a specialized division of the RBI- Bharatiya Reserve Bank Note Mudran- it also mints Indian banknotes and coins. Under the Foreign Exchange Management Act 1999, the RBI also manages all the foreign exchange. It facilitates external trade and payments to promote the development of the foreign exchange market in India. Until the Monetary Policy Committee was established in 2016, it also had full control over monetary policy in the country. A 23 member central board of directors are heading the RBI. This includes the governor, four deputy governors, two finance ministry representatives (usually the Economic Affairs Secretary and the Financial Services Secretary), ten government nominated directors and four directors who represent local boards of Mumbai, Kolkata, Chennai and Delhi. Each of these local boards consists of five members who represent regional interests and the interests of co-operative and indigenous banks. More
The continuation of stance--withdrawal from accommodation-- and the reiteration on the 4% medium-term target signal that MPC isn’t willing to lower the guard soon. In other words, chances of rate cut this year look minimal.
Analysts, who have cheered the RBI's decision to hold the rates, says as the demand remains strong, the outlook for the industry is favourable
The RBI remains 'watchful' of emerging risks as it reiterates commitment to maintain price stability and providing ample liquidity for economic growth, analysts says
The RBI, on May 19, announced the withdrawal of Rs 2000 notes as part of the clean note policy.
Reserve Bank of India Governor Shaktikanta Das announces the second bi-monthly monetary policy for the current fiscal. Watch the announcements on repo rates, inflation, growth forecasts.
The central bank's April-June 2023 CPI inflation forecast has been cut to 4.6 percent from 5.1 percent, but the forecasts for the second half of 2023-24 were left unchanged
The six-member Monetary Policy Committee of the RBI on June 8 kept the policy repo rate unchanged at 6.5 percent in a unanimous decision.
RBI monetary policy meet: The regulated entities will also include co-operative banks
Repo rate is the rate at which the banking regulator lends money to commercial banks. When the repo rate falls, the cost of capital for commercial banks also declines.
Currency in circulation was down by 272.8 billion rupees ($3.30 billion) for week ended June 2, data from the Reserve Bank of India (RBI) on late Wednesday showed. It was down by 364.9 billion rupees in the week ended May 26.
Since May 2022, the RBI has hiked the repo rate by 250 basis points to counter inflationary pressure, though high inflation, which has remained a key concern for policymakers, has begun cooling off in recent months
But the report also tends to get into micromanagement in some areas
Despite heat waves across the agriculture-dependent country, rises in food prices are expected to be kept in check by lower input costs and the government's regular intervention to curb price spikes.
In this episode of Market Minutes, Shailaja Mohapatra puts the spotlight on what to expect from RBI monetary policy committee meeting, and why Tech Mahindra will be in focus today. Also, catch Rajesh Cheruvu of LGT Wealth, in Voice of the Day segment. Market Minutes is a morning podcast that puts the spotlight on hot stocks, keys data points and developing trends. (With inputs from news agencies)
A round-up of top newspaper stories to keep you ahead of others
RBI Monetary Policy LIVE Updates: RBI has kept policy repo rate unchanged at 6.5% in a unanimous decision. Standing Deposit Facility Rate remains at 6.25%; while Marginal Standing Facility Rate and Bank Rate also unchanged at 6.75%. Focus remains on withdrawal of accommodation to ensure that inflation progressively aligns with the target
The monetary policy committee (MPC), which has three members from the RBI and three external members, is expected to leave the repo rate at 6.50% for a second straight meeting. All 64 economists polled by Reuters expect no change.
The RBI’s monetary policy announcement on June 8 might push back a rate cut to later this year. That’ll be good news for fixed deposit investors.
The Alert List contains names of entities which are neither authorised to deal in forex nor authorised to operate electronic trading platforms (ETP) for forex transactions
What to expect from RBI MPC announcement. Watch!
Some economists think the MPC should now get out of withdrawal of accommodation and into neutral gear. However, that may only spark hopes of an interest rate cut — something policymakers will want to avoid.
A vacation bench of justices Aniruddha Bose and Rajesh Bindal passed the order after petitioner advocate Ashwini Upadhyay mentioned the matter, seeking an urgent hearing.
If there is no change in rates, stable growth in consumption is likely to lead to higher GDP growth. As of now, prices have stabilised which will further induce the growth in domestic demand
The Indian central bank looks at a variety of economic indicators before making its interest rate decision. How have some of these data points moved since the Monetary Policy Committee last met?
Rahul Bajoria, MD & Head of EM Asia (ex-China) Economics, Barclays, speaking to Moneycontrol’s Vatsala Kamat, says the Indian economy’s growth is robust and will continue to be higher than most other economies, consumption growth is strong and the two arms of the K-shaped recovery are coming closer, with rural demand recovering. The risks stem primarily from El Nino and from too tight monetary policy in the developed economies. The RBI is done raising rates but will not cut rates anytime soon