Finance minister P Chidambaram wants commercial banks to reduce lending rates in response to the easing monetary policy stance of the Reserve Bank of India (RBI). While the RBI reduced the policy repo rate three times this year since January, banks have not passed on the rate cut to customers in terms of lowering interest rates on lending
Tag: license
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Experts call for banking operation in unbanked areas
Experts feel that the initiative of the Reserve Bank of India (RBI) to provide new banking licenses must promote banking in the under-banked areas of the country. They feel that residents in the under-banked areas are, for the most part, dependent on shadow-banking operators because of the formal banking sector's failure to give them access
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Govt to auction blocks under NELP in FY14
Oil Minister M Veerappa Moily informed a panel that the government would auction exploration area of about 2.7 lakh sq km under New Exploration Licensing Policy (NELP) in 2013-14 once necessary approvals are in place. The minister informed this to the Parliamentary Consultative Committee in Mussoorie. He said the government initiated the process of inter-ministerial clearances for exploring the 2.7 lakh sq km area, which is id
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Bank licensees may set up NOFHC
Reserve Bank of India (RBI) clarified that the prospective bank licensee must set up a non-operative financial holding company (NOFHC). Further, the central bank said if any individual belonging to the promoter group chooses to become a promoter of the NOFHC, he along with his relatives and along
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RBI to extend validity of banking license
Reserve Bank of India (RBI) decided to extend the validity period of the in-principle approval for setting up a banking business from one year to 18 months. The central bank announced this decision in a recent clarification on the draft banking license norms issued some months ago. According to the original norms, the in-principle approval is valid upto 12 months and if the licensee is unab
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RBI to increase forex reserves by buying dollar
Data released by Reserve Bank of India (RBI) shows the central bank bought $820 million dollar more than it sold in March, the first net purchase since 2010. This shows that RBI wants to increase its forex reserves by taking advantage of the rise in foreign fund flows in the equity and debt market in the country. A report by Bank of America Merrill Lynch estimates that the central bank has bought $1 billion since March and may buy an additional $8 billion through March
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RBI may switch to CPI to index proposed IIBs
In a conference call with market participants, officials of Reserve Bank of India (RBI) clarified several issues on the proposed auction of Inflation Indexed Bonds (IIBs), which is scheduled on June 4. One of the remarkable information that the officials shares is that the central bank may use Consumer Price Index (CPI) as a benchmark for these bonds once the CPI stabilises
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Govt considers proposals of LPG distributors
Reports indicate that the government is considering the proposals of liquefied petroleum gas (LPG) distributors seeking key changes on the proposed distribution policy. During a recent presentation to the union petroleum and natural gas ministry, the distributors called for raising the present ceiling for refill sales by 50 percent. The distributors argue that the existing ceiling on refills is ba
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India Post’s banking dream gets thumbs down from govt
Unconfirmed reports indicate that the union finance ministry opposes the proposal of India Port to foray into banking venture. Officials of the finance ministry raised doubt about the ability of India Post to conduct banking business. It may be recalled that India Post plans to apply for a banking license from
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Transmission of RBI policy signals is asymmetrical
A research paper from Reserve Bank of India (RBI) shows that transmission of monetary policy signals to financial markets in India is asymmetrical. It is asymmetrical because the transmission is faster and persistent when the monetary system is in deficit mode, than when it is in expansionary phase, the paper argu