The Reserve Bank of India on August 1 tightened hedging rules for foreign institutional investors in the currency market, requiring investors who have issued so-called participatory note contracts, or P-notes, to gain approval from the note-holder before hedging. The order was the latest in a series of measures intended to shore up a battered rupee and helped push the currency higher to 60.48 per dollar. The rupee, which has been the worst performing currency in emerging Asia so far in 2013, is
Tag: Reserve Bank of India
Post
Post
Reliance Capital to strengthen footprint in financial services sector
In his annual letter to shareholders as Chairman of Reliance Capital, Anil Ambani said the company prepared a plan to strengthen its footprint in the financial services industry. Reliance Capital, which is the financial services arm of Reliance Anil Dhirubhai Ambani Group (ADAG), intends to more than double its customer base in the next 3-5 year
Post
Banks request regulatory forbearance from RBI
Reserve Bank of India (RBI) received request from some banks to give concessions on the prudential guidelines owing to unfavourable liquidity condition in the banking system. One of the concessions sought by banks is the waiver of the additional 75 basis points provisioning on restr
Post
RBI says liquidity curbs to stay till rupee stabilises
Liquidity tightening measures initiated by Reserve Bank of India (RBI) would remain in force till stability is achieved in the foreign exchange market, the RBI said on August 1. It did not give any timeframe for rollback of the measures. RBI is as anxious as everyone to roll back the cash tightening steps sooner than later. However, the measures taken will be in place until volatility in the foreign exchange market is controlled, RBI Governor Duvvuri Subbarao said. He added that he does not want
Post
Banks borrow Rs 26.5 bn from RBI
Banks in India borrowed Rs 26.5 billion ($435 million) from the Reserve Bank of India's marginal standing facility window on July 30. The RBI had raised the marginal standing facility (MSF) rate by 200 basis points to 10.25 per cent and also imposed restrictions on daily borrowings by banks under its repo window.
Post
Rupee pulled off lows by RBI intervention
Media reports say that the Reserve Bank of India sold dollars via State-run banks in early trades on August 1 after the currency weakened tracking the dollar's strength in Asia. The Reserve Bank of India was seen selling dollars from Rs 60.75 levels, say dealers.
Post
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
Post
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
Post
CCEA to decide on clearing bidding norms for UMPPs
The cabinet committee on economic affairs (CCEA) would soon decide on clearing the standard bidding documents for new ultra mega power projects (UMPPs) in order to expedite the implementation of such projects.
Post
RBI keeps policy rates unchanged due to rupee weakness
Despite the slowdown in the economy and decline in wholesale price index (WPI)-based inflation, Reserve Bank of India (RBI) refrained from reducing policy repo rate in its first quarter review of monetary policy on July 30. The central bank kept key policy rate unchanged at 7.25 per cent and the Cash Reserve Ratio (CRR) at 4 per cen