Reserve Bank of India (RBI) Deputy Governor Viral Acharya said India needs to urgently address the large amounts of bad debt held by its lenders.
ATM cash withdrawal limit increased to 4500 – RBI Circular for Cash withdrawal from ATMs – Enhancement of daily limits to 4500
The macro stress test shows that total bad loans of banks may increase further if macroeconomic conditions deteriorate sharply.
RBI Instructions on Withdrawal of cash from bank deposit accounts – No limit for cash withdrawal from bank accounts specified
Withdrawal of Cash from Bank account increased to Rs. 2400 per week – RBI Instructions on 25.11.2016
While notifying norms, the RBI said the cash withdrawn should be used only to make payment to those persons who do not have bank accounts.
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)