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
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The economists said they did a study of the Russian invasion's impact on inflation, which revealed that 59 per cent of the jump in prices is due to geopolitical events.
Diversification of forex assets, away from the dollar, has gained popularity after Russia’s invasion of Ukraine invited international sanctions against the former
Easy-to-remember retail prices are important to both budget-conscious consumers and brands. When a 10-rupee detergent starts selling for 12, policy makers are already looking at entrenched inflation.
India's retail inflation accelerated to an eight-year high in April, remaining above the central bank's tolerance limit for a fourth month in a row, and is likely to stay elevated.
The 12 PSBs (Public Sector Banks) had reported frauds worth Rs 81,921.54 crore in preceding fiscal 2020-21, the Reserve Bank has said in response to an application under the Right to Information (RTI) Act.
Briefing the Parliamentary Standing Committee on Finance chaired by former minister of state for finance Jayant Sinha, top officials of the RBI expressed their apprehensions about cryptocurrencies and said these pose challenges to the stability of the financial system.
Her comments come after the the central bank’s rate-setting panel recently surprised the markets with a 40 basis point hike in repo rate in an off-cycle policy meeting this month.
The central bank has allowed small finance banks (SFB) to tag loans to microfinance institutions (MFIs) as PSL loans as well.
Contributors to sticky inflation could include higher prices of electricity and agricultural produce, which are expected to kick in later this year.
The examination of the risk assessment report and all related correspondences revealed non-compliance with certain directions related to interest rates offered on deposits.
The RBI’s limitation in intervening heavily in the debt market signals that bond yields are likely to rise further as the banking regulator continues with the removal of policy accommodation, economists and money market experts say.
The higher-than-expected inflation is likely to result in another hike in the policy rate at the MPC’s next meeting on 6th-8th June
The central bank's rate-setting panel announced a surprise 40-basis-point repo rate hike on May 4 in anticipation of a high inflation number for April. But the figure has exceeded economists' expectations.
The finance ministry classifies the Indian consumer into three broad classes: the top 20 percent, the middle 60 percent, and the bottom 20 percent.
Saying that the fiscal situation was less challenging last year, T V Somanathan stressed that the government will work on maintaining growth and fiscal stability, while the primary responsibility of controlling inflation lies with the Reserve Bank of India.
The CPI inflation print for April is above the consensus, with a Moneycontrol poll showing economists saw inflation rising to 7.5 percent
The economists polled by Moneycontrol point out that core inflation too could show an uptick this time. Food inflation is expected to rise further due to soaring wheat prices around the world in the aftermath of the Russia-Ukraine war
The RBI's repo rate hike on May 4 caught everyone by surprise. But the central bank had started talks about convening its rate-setting panel right after its April 8 meeting
The currency opened at 77.56 a dollar and touched a fresh record low of 77.58 a dollar. At 9.30am, the domestic currency was trading at 77.57 a dollar, down 0.4 percent from its previous close
The RBI has used its 'formidable' foreign exchange reserves to prevent the rupee from weakening sharply in recent days. However, mounting a defence against what a person aware of developments called 'a global tide' is seen as being futile
The MPC, headed by the RBI Governor, is scheduled to meet between June 6 and June 8. It has been mandated to keep retail inflation in the range of 2-6 per cent.
The central bank's surprise May 4 repo rate hike has sparked concerns that the next couple of meetings of its rate-setting panel will definitely see further increases in the policy rate.
The Indian central bank welcomes monetary policy accountability but is cautious of what taking remedial measures to return inflation rapidly to acceptable levels would entail, according to a person familiar with developments.
The most obvious reason for RBI intervention is that a weakening exchange rate increases the country’s import burden. The central bank of a net importing country is justified in defending its currency during bouts of depreciation.