Business Today: Latest Business News, India economy News, Stock Markets, Sensex, Mutual Funds and Indian Tax

Total 430 results found. Search for [ rbi surplus reserve ]

Results 1 to 21 of 430
Anand Adhikari
New Delhi, May 31, 2021
The Reserve Bank of India (RBI) has been quite supportive post-Covid as it pumped in over Rs 15 lakh crore of liquidity, which was 8 per cent of the GDP. Undoubtedly, the surplus liquidity has helped the corporate sector and banks as they got low-cost funds and also enjoyed the benefits of moratoriums and loan restructuring. The low-interest rates also supported the government in raising huge market borrowings at the lowest cost in the last two decades. But these liquidity operations do entail some costs to the RBI. What surprised many the Rs 1 lakh crore dividend paid by the RBI to the government out of its surpluses in 2020-21. The financial year was of only nine months (July-March) as the central bank changed its accounting year from July-June to April-March. The RBI's annual account shows a net interest outgo of Rs 17,000 crore in liquidity adjustment facility (LAF) operations which include repo, reverse repo, and open market operations. The liquidity in the system also increased by way of RBI's foreign exchange buying operations. Today, the foreign exchange reserves cover the country's 18 months of imports, which is very high. These reserves are low-yielding. In a pandemic year, the RBI has also decided to keep the contingency risk buffer at a lower level of 5.5 per cent of its balance sheet against a higher band of 6.5 per cent. There are experts who suggest that RBI doesn't need a strong balance sheet as government banking exists if there is a crisis. But the bigger question is of central bank independence and the public trusts in the institution.Also Read: Deadline for filing monthly GST sales returns extended to June 26

Manoj Sharma
May 27, 2021
Increase on the asset side was mainly due to increase in foreign and domestic investments by 11.48 per cent and 13.75 per cent, respectively, while the liability increase was due to increase in deposits (26.85 per cent), notes issued (7.26 per cent) and other (43.05 per cent)

Shailendra Shukla
New Delhi, May 22, 2021
Singapore social media outlets issue correction notice on COVID-19 variant following Kejriwal's remarksFacebook and Twitter along with Singapore's largest media house have complied with the government's directive to issue a correction to the users of social media platforms in the city-state after Delhi Chief Minister Arvind Kejriwal tweeted about a new COVID-19 \"Singapore variant\". Singapore's Ministry of Health on Thursday invoked the Protection from Online Falsehoods and Manipulation Act...

May 21, 2021
This will be for the accounting period of nine months ended March 31. It has also decided to maintain the Contingency Risk Buffer at 5.50 per cent

May 6, 2021
RBI Governor Shaktikanta Das announced had a Rs 50,000 lending programme to ramp up COVID-19-related healthcare infrastructure amid massive second wave ravaging India

Anwesha Madhukalya
May 5, 2021
The governor announced that in an attempt to ramp up COVID-related healthcare infrastructure, on-tap liquidity window of Rs 50,000 crore with up to 3-year tenor at repo rate has been opened up till March 31, 2022

Aprajita Sharma
April 28, 2021
While the P2P lending segment is regulated by the Reserve Bank of India, one must be careful about the risks involved. Just like any other form of lending, P2P lenders have to manage the risk of default

Anand Adhikari
New Delhi, April 27, 2021
The Reserve Bank of India is trying its best to keep the borrowings cost low for the government by keeping the long-term government securities (G-Sec) yields at a low level.  This support from the central bank is coming by way of surplus liquidity despite the signs of higher inflationary pressure. The CPI inflation projection for 2021-22 is at 5 percent as against the upper tolerance limit of 6 percent set by the government.  RBI  is defending its decision by reasoning that the G- Sec yield curve management is for the public good. It says the yield management not only brings down the government borrowing cost but also reduces the interest cost for corporate in the bond market. But it is easier said than done. There is a cost associated with keeping the interest low for an extended period and also managing G-Sec yields when the inflation expectations are high. Anand Adhikari, Executive Editor, Business Today, looks at the likely dangers and consequences of adopting such a policy of low-interest rates and yield management. Read More | New inflation trouble for RBI! Currency depreciation against US dollar big worryAlso Watch | E-mandate options on your debit and credit cards after September

April 23, 2021
Earlier this month, the Reserve Bank maintained its 10.5 per cent GDP growth estimate, but Governor Shaktikanta Das has flagged the rising cases as the biggest impediment to recovery

Anand Adhikari
April 15, 2021
The second Covid wave is also expected to upset the RBI's inflation calculation as local lockdowns impact supply chain and logistics

Anand Adhikari
New Delhi, April 14, 2021
The RBI adopted multiple regulatory forbearance measures and ultra-loose monetary policy to counter economic headwinds. Now it has to work out an exit roadmap

Anand Adhikari
April 7, 2021
While the RBI has kept the repo rate unchanged, hinting at short-term interest rates to remain low, the risk from ultra-loose monetary policy is certainly on the rise as the future inflation trajectory has an upward bias

March 18, 2021
Having seen a peak of daily cases of nearly 100,000 in late September, infections had been on a steady decline but have now started rising again over the last month

March 15, 2021
India pulled ahead as Russian holdings declined at a faster rate in recent weeks as the Reserve Bank of India (RBI) continues to hoard dollars to cushion the economy against any sudden outflows

Prasanna Mohanty
February 19, 2021
Private wealth creators are solely responsible for India's banking stress; increasingly fleeing India with their wealth and bank loans, and those making huge profits are doing so by cutting jobs and wages

Anand Adhikari
February 18, 2021
The inflation target could be tweaked to accommodate the government's higher borrowing plan of Rs 12 lakh crore in 2021-22

Prasanna Mohanty
February 10, 2021
RBI's database, reports and other evidence show India is credit surplus; large industrial houses have high debt stress, and that easy credit poses serious macro-financial risks to the economy

February 5, 2021
RBI Governor Shaktikanta Das-led MPC hold repo rate at 4 per cent; maintains accommodative stance. Going forward, we see the Indian economy moving in only one direction i.e. upward, says Das

February 5, 2021
India Stock Market News Updates Today: Sensex scaled record high of 51,073.27 while the Nifty hit record high of 15,014.65 level in early trade. SBI, Kotak Bank, IndusInd Bank, HDFC, ONGC and Axis Bank were top gainers in the Sensex pack

January 21, 2021
To mitigate the impact of COVID-19 on NBFC sector, the government and Reserve Bank of India (RBI) have announced various schemes such as the Partial Credit Guarantee Scheme (PCGS), Targeted Long-Term Repo Operations (TLTRO) and Special Liquidity Scheme (SLS)

PAGES 1 OF 22  12345