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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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  • RBI’s DigiSaathi initiative: Here’s a step-by-step guide to search for banking-related queries and resolutions May 17, 2022 08:21 AM IST

    RBI’s DigiSaathi initiative: Here’s a step-by-step guide to search for banking-related queries and resolutions

    DigiSaathi is an automated response system that helps customers in addressing their banking queries related to cards, UPI, NEFT, RTGS, IMPS, e-wallets, ATM, mobile and net banking, etc.

  • RBI may hike rates by 75 bps by August, say SBI economists May 16, 2022 04:49 PM IST

    RBI may hike rates by 75 bps by August, say SBI economists

    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.

  • Why is the Reserve Bank of India buying gold? May 16, 2022 11:20 AM IST

    Why is the Reserve Bank of India buying gold?

    Diversification of forex assets, away from the dollar, has gained popularity after Russia’s invasion of Ukraine invited international sanctions against the former

  • Magic prices warned of India’s sticky inflation, so how did the RBI not notice? May 16, 2022 07:59 AM IST

    Magic prices warned of India’s sticky inflation, so how did the RBI not notice?

    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.

  • RBI to raise rates again in June but not clear by how much: Poll May 16, 2022 07:48 AM IST

    RBI to raise rates again in June but not clear by how much: Poll

    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.

  • Frauds in PSBs dip 51% to Rs 40,295 crore; number of cases not falling fast enough: RBI May 16, 2022 07:45 AM IST

    Frauds in PSBs dip 51% to Rs 40,295 crore; number of cases not falling fast enough: RBI

    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.

  • Cryptos can lead to dollarisation of economy: RBI officials to par panel May 15, 2022 07:14 PM IST

    Cryptos can lead to dollarisation of economy: RBI officials to par panel

    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.

  • RBI not behind the curve in hiking rates, says Ashima Goyal of rate-setting panel May 15, 2022 11:40 AM IST

    RBI not behind the curve in hiking rates, says Ashima Goyal of rate-setting panel

    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.

  • RBI allows banks to lend to NBFCs for priority sector loans on an on-going basis May 13, 2022 09:19 PM IST

    RBI allows banks to lend to NBFCs for priority sector loans on an on-going basis

    The central bank has allowed small finance banks (SFB) to tag loans to microfinance institutions (MFIs) as PSL loans as well.

  • Interview: Elevated inflation here to stay, repo rate could be 5.5% by December, says HSBC’s Pranjul Bhandari May 13, 2022 07:27 PM IST

    Interview: Elevated inflation here to stay, repo rate could be 5.5% by December, says HSBC’s Pranjul Bhandari

    Contributors to sticky inflation could include higher prices of electricity and agricultural produce, which are expected to kick in later this year.

  • Reserve Bank of India imposes monetary penalty on KEB Hana Bank May 13, 2022 06:05 PM IST

    Reserve Bank of India imposes monetary penalty on KEB Hana Bank

    The examination of the risk assessment report and all related correspondences revealed non-compliance with certain directions related to interest rates offered on deposits.

  • RBI may have to tolerate high yields, prioritise inflation, experts say May 13, 2022 03:30 PM IST

    RBI may have to tolerate high yields, prioritise inflation, experts say

    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.

  • Is RBI tightening policy at a time when industrial growth is still weak? May 13, 2022 08:40 AM IST

    Is RBI tightening policy at a time when industrial growth is still weak?

    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

  • Experts say MPC's June 6-8 meet 'super live' for rate hike after April inflation shocker May 12, 2022 08:28 PM IST

    Experts say MPC's June 6-8 meet 'super live' for rate hike after April inflation shocker

    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.

  • Lower inflation has reinforced favourable redistribution of income from top to bottom and middle-income groups: Finance ministry May 12, 2022 07:45 PM IST

    Lower inflation has reinforced favourable redistribution of income from top to bottom and middle-income groups: Finance ministry

    The finance ministry classifies the Indian consumer into three broad classes: the top 20 percent, the middle 60 percent, and the bottom 20 percent.

  • India in a relatively stronger position than many other countries: Finance secretary May 12, 2022 07:28 PM IST

    India in a relatively stronger position than many other countries: Finance secretary

    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.

  • Consumer price inflation surges to near-8-year high at 7.79% in April May 12, 2022 05:37 PM IST

    Consumer price inflation surges to near-8-year high at 7.79% in April

    The CPI inflation print for April is above the consensus, with a Moneycontrol poll showing economists saw inflation rising to 7.5 percent

  • Retail inflation may surge to 7.5% in April on costly fuel, rising food prices, forecast economists May 12, 2022 02:51 PM IST

    Retail inflation may surge to 7.5% in April on costly fuel, rising food prices, forecast economists

    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

  • Unscheduled meetings, debates: Behind the scenes of the May 4 surprise RBI repo rate hike May 12, 2022 10:54 AM IST

    Unscheduled meetings, debates: Behind the scenes of the May 4 surprise RBI repo rate hike

    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

  • Rupee hits fresh record low of 77.58 against US dollar May 12, 2022 10:09 AM IST

    Rupee hits fresh record low of 77.58 against US dollar

    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

  • RBI's forex reserves formidable, but futile to resist global tide against currencies, says source May 12, 2022 10:02 AM IST

    RBI's forex reserves formidable, but futile to resist global tide against currencies, says source

    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

  • RBI may up inflation forecast in next MPC meeting; rate hike on cards: Sources May 12, 2022 07:12 AM IST

    RBI may up inflation forecast in next MPC meeting; rate hike on cards: Sources

    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.

  • RBI data dependent, each MPC meeting should be seen as 'mutually independent' May 11, 2022 08:21 PM IST

    RBI data dependent, each MPC meeting should be seen as 'mutually independent'

    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.

  • No serious risk seen to RBI reputation if MPC fails to meet inflation mandate May 11, 2022 08:01 PM IST

    No serious risk seen to RBI reputation if MPC fails to meet inflation mandate

    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 RBI will manage rupee, as always May 11, 2022 03:34 PM IST

    The RBI will manage rupee, as always

    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.

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