Citing a study, Reserve Bank India (RBI) said it cannot pursue a policy of higher inflation tolerance as the means to lower real rates because beyond a threshold, the negative impact of inflation on growth outweighs its positive impact. Although the study points to empirical evidence that lower real interest rates can stimulate growth and investment, it does not recommend a policy of higher infla
Tag: RBI
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RBI study favours anti-inflation policy
Citing a study, Reserve Bank India (RBI) said it cannot pursue a policy of higher inflation tolerance as the means to lower real rates because beyond a threshold, the negative impact of inflation on growth outweighs its positive impact. Although the study points to empirical evidence that lower real interest rates can stimulate growth and investment, it does not recommend a policy of higher infla
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AIAI welcomes the appointment of Mr. Raghuram Rajan as Governor of RBI
The appointment of Mr. Raghuram Rajan as the Governor of the Reserve Bank of India has come at the most appropriate time. Considered the right man for the job, Mr. Rajan is well known and respected for his extensive experience and deep knowledge of India's economic functioning as well as the global economy at large.
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SIDBI chief expects consolidation in MFI sector
Speaking at a seminar organised by FICCI, Sushil Muhnot, CMD, of Small Industries Development Bank of India (SIDBI) said the margin cap imposed by Reserve Bank of India (RBI) for microfinance institutions (MFIs) would lead to consolidation in the sector. In order to prevent MFIs from charging usurious interest rates, the RBI earlier imposed a 12 per cent margin cap, which is the difference between cost of fund
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RBI to conduct scrutiny of license applicants
Reserve Bank of India (RBI) Deputy Governor Anand Sinha informed media persons that would conduct both internal and external scrutiny to assess the applicants for new bank licenses. The central bank would set up an external scrutiny panel for this purpose after the internal scrutiny is over, Sinha, who is in-charge of banking supervision, said on the
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Mfin discussing future course of action
Microfinance Institutions Network (Mfin), the industry body of microfinance firms, is discussing the future course of action to tide over the huge debt burden haunting the sector. Earlier, Reserve Bank of India (RBI) rejected Mfin's request to restructure the loan repayment of five heavily indebted microlenders under the corporate debt rest
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Co-op urban banks may come under ombudsmans ambit
To bring in co-operative urban banks under the purview of Banking Omudsman, in view of their key role in banking activity in many states, a proposal has been mooted. The proposal had been mooted by an internal committee of RBI and a final decision would be taken after eliciting views of the State governments, A Madasamy, Banking Ombudsman for Kerala and Lakshadweep said in Thiruvananthapuram on August 1. Madasamy said though there was a strong opinion in favour of the proposal, State governments
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Govt finding new Governor of RBI
Finance Minister P Chidambaram informed reporters that the government was looking out for a new Governor for Reserve Bank of India (RBI). It is learnt that the present Governor D Subbarao is due to retire in September. The government is reportedly considering some names like the Planning Commission member Saumitra Chaudhuri, Economic Affairs Secretary Arvind May
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Raghuram Rajan is next RBI Governor
Chief Economic Adviser Raghuram Govind Rajan was appointed as Governor of the Reserve Bank of India (RBI). Rajan is set to take over the mantle of the central bank at a time when the economy is faced with a multi-pronged crisis of
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RBI to restore stability in currency mkt on priority
In its a macroeconomic report, Reserve Bank of India (RBI) said the priority for monetary policy now is to restore stability in the currency market so that macro-financial conditions remain supportive of growth. RBI said global currency market movements in June-July 2013 prompted a re-calibration of monetary policy. The report, which was released a day before the first quarter monetary policy review of RBI, shows the central bank