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RBI removes prior approval requirement for opening vostro accounts
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Time of India
30 minutes ago
- Time of India
RBI keeps repo rate unchanged at 5.5%
MUMBAI: The Reserve Bank of India ( RBI ) held policy rates steady at 5.5% with a unanimous vote from all six members of the Monetary Policy Committee (MPC), maintaining a 'neutral' stance. The decision aligns with market expectations, as the central bank awaits further transmission of earlier rate cuts and clarity on tariffs. This marks the first status quo under Governor Sanjay Malhotra , who took office earlier this year. The RBI lowered its FY26 inflation forecast to 3.1% from 3.7% earlier, while retaining the growth projection at 6.5%. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Speaking to the media, Malhotra said there wasn't enough data to revise gross domestic production (GDP) forecasts and noted, 'India is less dependent on the outside so far as inflation is concerned.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like After Losing Weight Kevin James Looks Like A Model 33 Bridges Undo Deputy governor Poonam Gupta added that half of India's inflation basket consists of food, limiting global impact. In response to US President Donald Trump 's 'dead economy' comment, the RBI governor said, 'We are contributing about 18% to global GDP growth, which is more than the US, where the contribution is expected to be much lower at 11%." Live Events 'So, we are doing very well and will continue to further improve,' he said. 'Volatility Persists' In April, the RBI had cut its FY26 growth forecast from 6.7% to 6.5% in the backdrop of the first set of tariff announcements from the Oval Office 'It is very difficult to predict what the impact will be going forward,' Malhotra said, on whether the projections factor in the impact of punitive tariffs. 'We are hopeful that we will have an amicable solution,' the RBI governor told the media, ahead of the US announcing an additional 25% tariff on Indian goods, following a similar increase on Tuesday. SBI chairman CS Setty said the RBI's decision to hold rates was expected, citing trade uncertainties and lagged policy effects. 'Inflation is likely to remain under check at 3.1% for FY26, and growth impulse is expected to be intact,' he said. LOOMING TARIFF THREAT The MPC's decision came ahead of US President Donald Trump imposing fresh tariffs over New Delhi continuing to purchase oil from Moscow which the Oval Office believes has helped fuel Russia's war efforts. Economists estimate existing 25% tariffs could reduce growth by 20-30 basis points. One basis point is a hundredth of a percentage point. Malhotra said MPC chose to go for status quo amid geopolitical uncertainties and 'wait for further transmission of the frontloaded rate cuts to the credit markets and the broader economy'. The RBI had earlier cut rates by 100 bps and announced a phased 100 bps CRR cut starting September. Goldman Sachs described the policy announcement 'somewhat hawkish'. The 10-year government bond yield climbed 9 basis points (bps) to 6.42%, reaching levels last seen in early May. Yields have risen despite a 50 bps rate cut in June, and Wednesday's decision, along with the governor's comments, tempered expectations of a rate cut in October. 'There will be some volatility; we are living in very uncertain times,' he said. 'The US dollar has seen appreciation and then depreciation, movements on both sides of about 10%.' The Indian rupee edged higher to 87.73 against the dollar, up from its previous close of 87.80. The benchmark BSE Sensex retreated 0.21% to end at 80,543. 'GLOBAL GROWTH ENGINE' Refuting comments from President Trump that India is a 'dead economy,' the governor said that India is contributing significantly to global growth. Economists, including SBI's Soumya Kanti Ghosh, who had advocated easing rates by a quarter percentage point, said the central bank raised the threshold for any further rate cuts. However, Madhavi Arora, chief economist at Emkay Global , argued that focusing narrowly on one-year inflation projections is increasingly misplaced amid shifting global dynamics.
Time of India
44 minutes ago
- Time of India
Settling claims to get easier for heirs of deceased clients
MUMBAI: India's central bank is moving to simplify how banks release funds or valuables belonging to deceased customers. Reserve Bank of India will impose a single, standard procedure for settling such claims for both deposits and safe-deposit lockers. This will replace the patchwork of rules that currently varies from bank to bank. A draft circular will soon be released for public consultation. The reform builds on provisions in the Banking Regulation Act, 1949, which require a nomination facility to help survivors, nominees and legal heirs access funds or property quickly, without unnecessary bureaucratic hurdles. The RBI also announced a new auto-bidding feature for its Retail Direct platform, allowing investors to place automatic bids for both investment and re-investment in Treasury-bill auctions. The system is meant to help individuals plan investments more systematically. Retail Direct, launched in 2021, allows retail buyers to purchase government securities in both primary and secondary markets, and has steadily added features, which include a mobile app rolled out in May 2024, to make direct investment in sovereign debt more accessible. Banks in India follow varying procedures to release funds or valuables when an account or locker holder dies, depending on whether there is a nominee, a survivorship clause, or multiple legal heirs. Stay informed with the latest business news, updates on bank holidays and public holidays .
Time of India
44 minutes ago
- Time of India
RBI governor debunks 'dead eco' remark, flags tariff risks
MUMBAI: on Wednesday dismissed 's comment that India is a "dead economy", highlighting the country's strong growth contribution to the world. "I am not the right person to react to the US President," governor Sanjay Malhotra said, adding that India's growth was "robust at 6.5% versus 4% for the world. Tired of too many ads? go ad free now " He noted: "We are contributing about 18% to the total global growth which is more than US where the contribution is expected to be much lesser, I think about 11% or something. So we are doing very well and we will continue to further improve." Malhotra said some of the impact of US tariff measures had been built into the RBI's revised growth forecast, cut to 6.5% from 6.7% in its previous policy. "However, there is still a lot of uncertainty and it's very difficult to predict the impact going forward," he said, adding that the central bank would "continue to monitor macroeconomic conditions policy-to-policy and take a call accordingly". He pointed out that India is "less dependent on the outside insofar as inflation is concerned" and did not expect a major impact "unless there are retaliatory measures, which I do not foresee". Responding to a question on impact of moving away from Russian oil purchases, Malhotra said: "We source oil from many countries. If the mix changes, the impact on prices will depend on global crude prices and how much of that change is absorbed by the govt through excise duties and other tariffs. We do not see any major impact on inflation at this stage, as the govt is likely to take appropriate fiscal measures in case of any arising shock. " Beyond interest rate changes, Malhotra said RBI had acted "on prudential regulation and Fema to ease business and trade" and would "continue to act as needed". Stay informed with the latest business news, updates on bank holidays and public holidays.
