In late July, the Reserve Bank of India (RBI) penalised 11 banks for not complying with the norms to classify an account as fraud and report to the regulator. Despite being advised by the RBI to report fraud in an account ‘immediately’ after the Central Bureau of Investigation (CBI) initiated criminal proceedings, the banks had either delayed or did not report the fraud to the central bank. The RBI did not mention it but the “account” in question is that of the now-defunct Kingfisher Airlines Ltd.
Those who are eyeing the position of a deputy governor at the Reserve Bank of India (RBI) have not much time left to make up their minds as the deadline for submission of applications expires on 30 August. Early this month, the government invited applications for the post, which fell vacant after Viral Acharya decided to step down, roughly six months before the scheduled end of his term. Ahead of him, Urjit Patel resigned little less than a year before his three-year term as governor would have come to an end.
When it comes to monetary policy, a career bureaucrat could be more innovative than an economist. Reserve Bank of India (RBI) governor Shaktikanta Das has proved that. After taking three baby steps since February, when the rate cutting cycle started, he changed track last week: No more baby steps (25 basis points or bps rate cut); not a giant step (50 bps) either.
Till Reserve Bank of India (RBI) Governor Shaktikanta Das said in his recent interviews that shifting of the stance of the monetary policy from neutral to accommodative itself means a rate cut of 25 basis points (bps) at least and, therefore, effectively, the rate cuts have been 100 bps, every analyst and his aunt were penciling yet another rate cut on August 7. Even now, against the backdrop of the US Federal Reserve's rather hawkish rate cut, a 25 bps drop in policy rate could be on the table in India as core inflation is modest, overall retail inflation remains below 4 per cent and there are telltale signs of growth slowing down. Had Das not made this comment, the expectation was building up for a 50 bps rate cut.