Tag: RBi policy

Expect the last hike from RBI MPC in this cycle: Morgan Stanley

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India’s (RBI) two-day monetary policy (MPC) meeting is underway, and Governor Shaktikanta Das will announce the policy decisions tomorrow (April 6). Most economists (90 percent) that CNBC-TV18 spoke to while doing a survey said that they expect the Indian central bank to continue its fight against inflation and follow the US Federal Reserve globally by hiking the lending rate by 25 basis points.

In an interview with CNBC-TV18, Chetan Ahya, Chief Asia Economist at Morgan Stanley said that he expects the RBI to implement its final rate hike, signalling the end of the current tightening cycle.

He said, “There are a lot of uncertainties around inflation outlook as well as what happens to the Fed policy. So, it would be probably unlikely that the RBI gives a clear signal that this is the last rate hike, but in our forecast, we do think that this is the last rate hike.”

Also Read | RBI MPC preview | Economists expect a 25 bps hike with eye on stance change

However, Ahya also said that the higher interest rates could pose headwinds for India’s economic growth. With borrowing costs increasing, businesses and consumers may face challenges in accessing credit, which could potentially dampen investments and consumption. This, in turn, could impact India’s overall economic growth trajectory in the near term.

Despite these potential challenges, Ahya reiterated that India’s growth story remains one of the best globally. The country has shown remarkable resilience in recent years, with robust economic expansion driven by factors such as favourable demographics, strong domestic demand, and structural reforms. However, the higher interest rate environment may require careful management to sustain the momentum of India’s growth story.

Also Read | Former RBI governor YV Reddy praises Shaktikanta Das – here’s why

Talking about India’s current account deficit, which is a measure of the country’s trade balance with the rest of the world. He said that the deficit would likely be in the range of 2 percent in the near term. This suggests that India’s imports could potentially outpace its exports, which may impact the overall balance of payments and foreign exchange reserves. However, it’s important to note that the current account deficit is subject to various factors such as global commodity prices, exchange rate movements, and policy measures, which could influence the actual outcome.

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bank of Baroda loan EMI set to rise as lender hikes MCLR by 5 bps — Check latest interest rates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State-owned Bank of Baroda (BoB) has announced an increase in its marginal cost of funds-based lending rate (MCLR) by 5 basis points (bps) across tenors, following the interest rate hike by Reserve Bank of India (RBI) last week. The revised MCLR has come into effect from February 12, 2023, making most consumer loans (like auto or home loans) costlier for borrowers.

Following the latest rate hike, MCLR has surged from 7.85 percent to 7.90 percent for overnight tenor. The MCLR for one month has risen from 8.15 percent to 8.20 percent while MCLR for three-month tenure has been hiked from 8.25 percent to 8.30 percent, post revision.

ALSO READ | Now, revive your lapsed LIC policy with late fee concession till March 24 — Here’s how

Last week, the Reserve Bank of India (RBI) hiked the benchmark policy rate by 25 basis points to 6.5 percent, citing sticky core inflation. It was the sixth time the interest rate has been hiked by the RBI since May last year, taking the total quantum of increase to 250 basis points.

The RBI raised interest rates by 35 bps in December 2022. Rates were hiked by 40 bps in May and 50 basis points each in June, August, and September.

At 02:11 pm, the shares of Bank of Baroda was trading 2.54 percent lower at Rs 165.30 on BSE.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Digital lending apps aren’t regulated by the RBI, reminds Governor | A look at how they work

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday said that digital lending apps are not regulated by the central bank. He said that RBI asked non-banking financial companies (NBFCs) to submit a list of their app which was further sent to the Centre. The government has taken the step of banning after considering the list of regulated entities and their apps, Das said while addressing a press conference after making monetary policy announcements.

Backing this further,  RBI Deputy Governor M Rajeshwar Rao said that the government has asked the Play Store to remove the unregulated apps.

CNBC-TV18 had earlier reported that LazyPay, Kissht, Kreditbee, and Indiabulls Home Loans were among those that were on this ban list.

Then who regulates these apps?

According to RBI, these apps don’t come under their purview.

For entities other than regulated entities (REs) of the Reserve Bank, concerned authorities are, however, expected to put in place similar measures as recommended/ suggested for the REs of the Reserve Bank.

This would ensure holistic compliance with the recommendations/ suggestions contained in this report.

How do these apps work?

Digital lending apps typically work by using technology to automate the loan application and disbursal process. Customers can apply for a loan using their smartphone and provide the necessary personal and financial information, which is then verified using various digital tools and sources.

ALSO READ | MEITY to hold review meeting with digital lenders on ban, asks them to submit info on shareholding, data storage

Based on this information, the app’s algorithms can make a loan decision and disburse the loan to the customer’s bank account within a matter of minutes or hours. Repayments can also be done through the app, either through automatic debits or manual payments.

This process is faster and more convenient than traditional lending methods and enables borrowers to access credit quickly and easily.

ALSO READ | Google Play and Apple App Store get a list of safe digital lending apps they can host in India

What happened recently?

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Your home loan EMI may rise by 2-4% as RBI once again hikes repo rate: Experts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) has announced yet another 25 basis point (bps) hike in the repo rate, at which the central bank lends money to commercial banks, to 6.60 percent. This is the sixth consecutive hike by the RBI and will lead to a rise in the equated monthly instalments (EMIs) of home loans by 2-4 percent, experts believe. Those whose home loans are linked to external benchmarks like the repo rate will be majorly impacted.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBI policy | Will launch QR-based coin vending machine to enhance ease of access: Shaktikanta Das

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) will launch a pilot project on QR code-based coin vending machines in collaboration with some leading banks in 19 locations in 12 cities. This will enhance ease of access to coins, RBI Governor Shaktikanta Das said while making Monetary Policy Committee (MPC) announcements on Wednesday, February 8.

“These vending machines will dispense coins against debit to customers’ bank accounts using Unified Payments Interface (UPI) instead of physical tendering of bank notes. Based on the learnings from the pilot, guidelines will be issued to banks to promote distribution of coins using these machines,” the RBI governor said.

Coin vending machines are automatic machines that dispense coins against receipt of bank notes. These are widely used for exchange of bank notes to coins by the public and also called as bank note to coin changers or coin changers.

ALSO READ | RBI maintains policy stance but revises FY24 growth target to 6.4%

Das said that unlike cash-based traditional coin vending machines, the QR- code-based machines eliminate the need for physical tendering of banknotes and their authentication. He also said that customers would  have the option to withdraw coins in required quantity and denominations.

On payments, Das proposed to allow foreign tourists to make merchant payments while in India via United Payments Interface (UPI). The system allows users to link their bank accounts to related apps such as Paytm, PhonePay, and Google Pay, among others, to make merchant payments and fund transfers.

Das gave his first monetary policy address of 2023 and the last one for this fiscal, in which he hiked key benchmark policy rate by 25 basis points to 6.5 per cent, citing sticky core inflation.

This is the sixth time interest rate has been hiked by the central bank since May last year, taking the total quantum of hike to 250 basis points.

Catch latest updates on RBI policy here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India to open UPI payments for foreign tourists, starting at airports for those from G20 nations

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) has proposed to allow foreign tourists to make merchant payments while in India via United Payments Interface (UPI). The system allows users to link their bank accounts to related apps such as Paytm, PhonePay, and Google Pay, among others, to make merchant payments and fund transfers.

“Initially, tourists from G20 nations, arriving at select international airports, would be allowed to use this facility,” RBI Governor Shaktikanta Das said while announcing Monetary Policy Committee (MPC) measures on Wednesday, February 8.

Das said UPI had become an ubiquitous payment instrument for retail electronic payments in India. “An enhancement has recently been made to provide UPI access to non-resident Indians who have international mobile numbers linked to their NRE / NRO accounts. It is now proposed to permit all inbound travellers to India also to access UPI for their merchant payments (P2M) while they are in the country,” he said.

Das said going forward, this facility would be enabled across all other entry points in the country. He added that operational instructions would be issued shortly.

Last month, National Payments Corporation of India (NPCI) asked the UPI ecosystem to allow users from some countries with non-resident account types like non-resident external (NRE) and non-resident ordinary (NRO) accounts with international mobile numbers to transact through UPI. In simple words, this means that non-resident Indians (NRIs) can now make payments in UPI without having to get an Indian mobile number.

An NRE account is a bank account opened in India in the name of an NRI, to park his foreign earnings whereas, an NRO account is a bank account opened in India in the name of an NRI to manage the income earned by him/her in India. These incomes include rent, dividend, pension, interest, etc.

Meanwhile, the RBI hiked the key benchmark policy rate by 25 basis points to 6.5 per cent, citing sticky core inflation. This is the sixth time the interest rate has been hiked by the RBI since May last year, taking the total quantum of the hike to 250 basis points.

For all the action from RBI Monetary Policy LIVE, click here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CNBC-TV18 Citizens’ MPC says RBI can’t overlook global issues posing threat to economy

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US Federal Reserve is signaling that disinflation has begun, but will this impact the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting? CNBC-TV18’s Citizens Monetary Policy Committee which has Pronab Sen, Former Chief Statistician; Samiran Chakraborty, Chief Economist-India at Citi, Soumya Kanti Ghosh, Group Chief Economic Advisor at State Bank of India, Sonal Varma, MD and Chief Economist-India at Nomura Financial Advisory and Securities and Sajjid Chinoy of JPMorgan on board met to discuss whether or not the RBI should hike rates.

Samiran Chakraborty, Chief Economist-India at Citi, spoke to CNBC-TV18 about the current account deficit, particularly with regard to services and said that the RBI cannot overlook the macro and global issues that may still pose a threat to the economy.

Also Read | Indian economy remains resilient in hostile global environment, says RBI governor

He said, “We are now at 2.2 percent of current account deficit for next fiscal year. Now, 2.2 percent is still USD 85 billion of current account deficit and that means we require USD 85 billion of flow just to match the balance of payments, which in a year, if global dollar liquidity gets tightened, is not going to be an easy thing to do. So, my point is that the RBI cannot take its eyes off this issue.”

Sonal Varma, MD and Chief Economist-India at Nomura Financial Advisory and Securities, also weighed in on the current economic situation in India. She said that the decline in inflation numbers is a definite positive, but pointed out that the aggregate inflation basket is still very sticky. Despite this, she feels that signals suggest that there should be faster disinflation and that the goods component of inflation will also moderate. In her opinion, inflation is now less of an issue compared to December.

Also Read | New Locker Rules — Here’s why the RBI has gone overboard

She said, “It (inflation) is less of an issue for sure, compared to back in December. The details are more mixed, but the forward looking indicators are also positive.”

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Will fixed deposit interest rates rise in wake of repo rate hike?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) increased the repo rate by 35 basis points, taking it to 6.25 percent. The latest move will make borrowing expensive, leading to higher equated monthly instalments (EMIs). However, the good news is that the interest rates on deposits like fixed deposit (FD) will see a rise.

Fixed deposit laddering is a process of spreading investment in FDs over multiple maturity tenures or maturity buckets, whereby investors hold the chance to earn a higher return and even address the liquidity needs.

ALSO READ | Home loan EMI may rise as RBI once again hikes repo rate — What should you do now?

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

No need for customers to visit bank branches for re-KYC — Check RBI rule and process here

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reserve Bank of India (RBI) governor Shaktikanta Das said on Wednesday customers do not need to visit the bank to do re-KYC (know your customer). It can be done online except in cases where there is a change of address, the governor said in answer to a query during a press conference after making the monetary policy announcements.

Das said banks can do re-KYC for customers without asking them to visit the branch. If banks insist on branch visits for it, customers can even raise a complaint with the appropriate authorities.

What is re-KYC?

Based on RBI guidelines, lenders ask for re-KYC at specific intervals to keep the bank’s records updated. Customers can update the records through re-KYC if personal or contact information has changed.

As per RBI’s KYC norm guidelines, banks need to update the customer identification documents of their account holders periodically.

In addition to the KYC carried out when opening an account, customers may be required to undergo re-KYC and submit the requisite documents.

What is the period for re-KYC?

As per banking experts, the time intervals for periodic updation of KYC are 2, 8 and 10 years for existing high, medium and low-risk customers, respectively.

What happens if re-KYC is not done?

As per RBI rules, the bank has full right, even to close the account if required KYC documents were not submitted by the customer for periodical updating.

However, it’s important to understand that there is a central KYC registry, and if the identifier number can be shared with other banks, then re-KYC need not be done.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Interest rates in India will peak by March, three months ahead of earlier estimate, says Macquarie

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US inflation data that came out on Thursday evening shows a better-than-expected cool-off and this has given the markets a belief that there might be some breathing room on offer from the US Federal Reserve and other global central banks like the Reserve Bank of India while deciding their next rate action steps.

Interest rate actions across the globe generally take cues from US Fed’s policy and thus according to Sandeep Bhatia, Head of Equity-India at Macquarie Group, interest rates in India are now expected to peak sooner than expected.

Also Read | US inflation slows more than expected, gives Fed breathing room

“Interest rates are now expected to peak by March; they were expected to peak after June next year, but now the view is it will be March and once we have seen a peak of interest rates, that will be a better time to look at the new age stocks,” he said.

The Indian equity market has been witnessing a resurgence of sorts and there is no reason that it will not continue, as per Bhatia.  When it comes to sectoral outlook, he believes that the IT stocks will continue their run.

“Its value there, it’s definitely better than expected outcomes on the US macro, which is helping,” he said.

Also Read: Moody’s lowers India’s growth projections to 7% on high inflation, rising interest rates

“The rest of the world will continue to be in a zone of conflict, flux and uncertainty, that is not going to go away and that is helping India,” he further reasoned.

Macquire finds it tough to take a longer-term call on public sector undertaking (PSU) banks. However, it prefers SBI and Bank of Baroda in the banking space.

Also Read: Your EMI may rise as several lenders hike home loan interest rates

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow