RBI Governor

He also emphasised that the RBI values such interactions with ecosystem participants and would continue to adopt a consultative approach

This is reflected in the measures taken by the central bank in the past few months to spur economic growth and ease liquidity tightness

Members said it was MPC's turn to do its bit after Budget booster

He said that although some people live at subsistence levels and the government must provide certain safeguards, there should be a limit on such provisions

RBI Governor Sanjay Malhotra says market determines rupee depreciation, touches on necessary regulations surrounding cryptocurrency

Reserve Bank Governor Sanjay Malhotra on Saturday said that the market forces decide the value of rupee with respect to the US dollar and the central bank is not worried about day-to-day movement of the currency value. Addressing the media after the meeting of Finance Minister Nirmala Sitharaman with the Reserve Bank board, Malhotra said that the central bank focuses on the value of the rupee in the medium to long term. On the impact of the depreciation of the rupee against the US dollar on price rise, the Governor said 5 per cent depreciation impacts domestic inflation to the extent of 30-35 bps. He further said that RBI took on board the current rupee-dollar rate while working out growth and inflation projections for the next financial year. Replying to a question, Finance Minister Sitharaman said the Union Cabinet has cleared the new income tax proposal and she hopes to have it introduced in the Lok Sabha in the coming Week. Thereafter it will be sent to a parliamentary standin

The RBI also noted that bank funding to non-banking finance companies (NBFCs) has declined following the increase in risk weight on bank loans to shadow banks

"Trade-offs between stability and efficiency will be kept in mind"

Bond market participants said that in bond forwards, there will be actual delivery of bonds

The panel had also suggested that the RBI's ECF be reviewed every five years

It has been the endeavour of Reserve Bank to provide as much liquidity as is required

Originally proposed in July 2024, the RBI's guidelines required banks to set aside an additional 5 per cent 'run-off factor' on digitally accessible retail deposits

The repo rate cut of 25 basis points by the monetary policy committee (MPC) of the RBI will give a long-awaited relief on interest rates and support economic growth, according to experts. Chief Economist of Crisil Ltd, Dharmakirti Joshi, said that as expected, the MPC of the central bank cut rates for the first time on Friday since May 2020. The repo rate has been lowered by 25 basis points to 6.25 per cent. Joshi said the recent easing in consumer price index (CPI) inflation and the need to remain supportive of economic growth has moved the RBI to act in this regard. However, the MPC maintained the policy stance at 'neutral', which gives flexibility to remain data dependent and respond to exigencies, Joshi said. The MPC moves in the future will depend more on domestic inflation, he said. "Elevated rates have impacted India's GDP growth, while the budget for the next financial year is mildly supportive of growth, while continuing on the path of fiscal consolidation," he said. Jo

RBI Monetary Policy Highlights: RBI Governor Sanjay Malhotra announced a 25 bps cut in the repo rate -- from 6.5% to 6.25%

The repo rate cut by 25 basis points by the monetary policy committee (MPC) of RBI announced Friday will give a long-awaited relief on interest rates and also be supportive of economic growth, according to experts. Repo rate is the interest rate at which the RBI lends money to commercial banks. Chief economist of Crisil Limited Dharmakirti Joshi said that as expected, the MPC of the central bank cut rates for the first time since May 2020. The repo rate has been cut by 25 basis points which now stands at 6.25 per cent. Joshi said that the recent easing in consumer price index (CPI) inflation and the need to remain supportive of economic growth has moved the RBI to act in this regard. However, the MPC maintained the policy stance at 'neutral', which gives flexibility to remain data dependent and respond to exigencies, Joshi said. The MPC moves in the future will depend more on domestic inflation, he said. "Elevated rates have impacted India's GDP growth, while the budget for the

State of government finances, concessions offered to tax-payers, and the commitment to progress on the fiscal glide path is eminently complemented by the monetary measures makes this policy different

Consultative process in making regulations will continue: Sanjay Malhotra

Realtors' apex body CREDAI on Friday said the RBI's decision to cut benchmark lending rate by 25 basis points might have "limited direct impact" and sought further reduction in the next monetary policy meet for "stronger impetus" to housing demand. Reduction in repo rate may lead to lowering of interest rates on home loans provided banks decide to pass on the benefits. Commenting on the monetary policy announcement, CREDAI National President Boman Irani said, "The RBI's decision to reduce repo rate by 25 basis points to 6.25 per cent supplements recent announcements in the Budget aimed at boosting spending and spur economic growth." This supportive monetary policy was "imperative", especially after the recent 50 basis points reduction in Cash Reserve Ratio (CRR), which has already injected significant liquidity into the banking system, he added. "While the current cut may have a limited direct impact, we anticipate that a further rate cut in the next MPC meeting will provide strong

The governor said the RBI is introducing an exclusive domain name for banks called 'bank.in', while for non-bank entities in the financial sector the domain name will be 'fin.in'