As the RBI Monetary Policy is stating that inflation risk in the enhancement HRA, on the other hand the RBI also want to be neutral .
After springing surprises in all three of its past monetary policy meetings, some analysts have not ruled out another one from the RBI later today.
The move to introduce lower denomination 200 rupee by the RBI notes comes against the backdrop of the government’s move to rework the currency mix.
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While notifying norms, the RBI said the cash withdrawn should be used only to make payment to those persons who do not have bank accounts.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.”