Taking his critics head on, RBI Governor Raghuram Rajan has challenged them to show how inflation is “very low” before accusing him of “being behind the curve”.
In a free market, all it takes to buy, what you want is money. “You do not need a pedigree, a great family history, the right table manners, or the right fashionable clothing or looks,” the RBI Governor said.
Forget the headlines about tensions with India’s government: Raghuram Rajan is likely to stay on as India’s central bank (RBI) governor after his term ends in September.
The RBI Governors comment invited criticism from several ruling Bharatiya Janata Party (BJP) government Ministers, including Finance Minister Arun Jaitley and his deputy Jayant Sinha and also Commerce Minister Nirmala Sitaraman.
With India being often described as ‘the bright spot in the global economy’, RBI Governor Raghuram Rajan sees this as a case of “the one-eyed man” being king in the land of the blind.
Thakur said, big borrowers were being spared while smaller ones suffered. “People are taking crores, running businesses and declaring them sick but properties of small borrowers are attached.”
The RBI, however, has decided to keep the cash reserve ratio (CRR), the portion of deposits which the banks are required to have in cash with the central bank, unchanged at 4.0 percent.
RBI has extended deadline for withdrawal of all old series Bank notes issued prior to 2005 till 30.06.2016. RBI has issued instructions to all the Scheduled Commercial Banks for exchange of notes printed prior to 2005.
Finance Ministry has instructed RBI and IBA to declare 2nd and 4th Saturday as Holidays for Banks with effect from 1.9.2015, in line with the Agreement signed between IBA and Bank Employees Unions. This is applicable to banks In India, whether or not such banks are Included In the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934)
RBI has instructed all Banks recommending Mandatory Leave for employees posted in sensitive positions viz., treasury, currency chests, risk modelling, model validation, etc
Levy of penal charges on non-maintenance of minimum balances in savings bank accounts From April 1, 2015, while levying charges for non-maintenance of minimum balance in savings bank account, banks shall adhere to the additional guidelines given in Annex. RESERVE BANK OF INDIA www,rbi.org.in RB 1/20 14-15/308 DBRDir.BC.No.47/13.03.00/2014-15 November 20,2014 All Scheduled Commercial Banks […]