Bankers Trust:

No sanctity for sovereign guarantee?

No sanctity for sovereign guarantee?

ndian banks need to set aside money not only for the loans given to corporations and individual borrowers that have gone bad but also their exposures, guaranteed by the state and central governments, if there is stress. After it was found that the stocks of foodgrains kept in the warehouses of the Punjab government are inadequate to cover the loan against such stocks, the Reserve Bank of India (RBI) has directed banks to set aside 15% of such exposure. The gap could be anywhere between Rs.

Bankers Trust:

Should bank defaulter’s list be made public?

Should bank defaulter’s list be made public?

India’s apex court is in favour of making public the names of bank defaulters but the country’s central bank does not support the idea. The Reserve Bank of India (RBI) has submitted a defaulters’ list to the Supreme Court and requested it not to reveal the names to the public, citing confidentiality. A Supreme Court bench, consisting of chief justice T.

Bankers Trust:

Why banking in India will never be the same again

Why banking in India will never be the same again

Last week, the focus was on the change in the Reserve Bank of India (RBI)’s stance on liquidity and the cut in its benchmark policy rate and many of us overlooked the structural changes in the banking industry architecture that the Indian central bank had hinted in its first bi-monthly monetary policy for fiscal 2017. If RBI is serious about it, banking in India will never be the same again. After giving licences to two full-service or so-called universal banks, 11 payments banks and 10 small finance banks, RBI is ready to release norms for bank licensing on tap soon.

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Why markets should take heart from RBI’s monetary policy

Why markets should take heart from RBI’s monetary policy

The equity market and, to some extent, the bond market are giving the thumbs down to the Reserve Bank of India’s (RBI) first bi-monthly monetary policy of the new fiscal year simply because the Indian central bank has cut its benchmark repo rate by only a quarter of a percentage point to 6.5%, something the markets had already factored in. Since the RBI has not cut its policy rate by half a percentage point or combined the quarter percentage point rate cut with a cut in banks’ cash reserve ratio, or CRR, market participants are interpreting it as a non-event.

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Rate cut for sure but by how much, Dr Raghuram Rajan?

Rate cut for sure but by how much, Dr Raghuram Rajan?

All economists in a Mint survey expect Reserve Bank of India (RBI) to cut its policy rate on 5 April. The debate has been on the quantum of cut: will RBI governor Raghuram Rajan go for a quarter percentage point cut and bring down the benchmark repurchase or repo rate, at which commercial banks borrow money from the central bank, to 6.5%? Or, will there be a deeper 0.