India cenbank announces reverse repo to arrest fall in overnight rates
MUMBAI (Reuters) -India's central bank said on Tuesday it will conduct a seven-day variable rate reverse repo auction worth one trillion rupees ($11.62 billion) on June 27, following a review of liquidity conditions in the banking system.
The Reserve Bank of India (RBI) added that after reviewing evolving liquidity conditions, it will not conduct the 14-day main operation scheduled for Friday, for the ensuing fortnight, according to a press release.
India's banking system liquidity surplus stood at 2.44 trillion rupees as of June 23, as per RBI data.
The central bank in June announced a surprise 100-basis-point reduction in the cash reserve ratio, the portion of deposits banks must park with the RBI, in four equal tranches beginning September, lowering it to 3%, to boost policy transmission.
Amid surplus liquidity conditions, the weighted average overnight call rate has remained well below the RBI's key repo rate and near the policy corridor's floor, the Standing Deposit Facility rate, for the past few weeks.
A persistent gap between the RBI's operative rate and the policy rate typically signals that banks are accessing cheaper funding than what the central bank is comfortable with, as per traders.
Earlier this month, Reuters had reported that the RBI could start conducting variable rate reverse repo auctions to suck out surplus liquidity as and when required.
"The move (VRRR announcement) indicates that the RBI wants the operative rate closer to the repo rate," said Gaura Sen Gupta, India economist at IDFC FIRST Bank.
The move comes sooner than expected with the transmission via various channels - credit, deposit and bond market - in its early stages, Sen Gupta said, adding that the move may lead to a further rise in short-term yields.
($1 = 86.0580 Indian rupees)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Silver Is Reaching Record Highs: What This Means for Your Dollar
While markets are in flux, tariffs loom and economic uncertainty seems to rule the day, there's simply no mistaking it — silver is having a great 2025. While the precious metal was previously forecasted a value of around $26.95 per ounce for the year by the world's largest trade bank HSBC, silver's valuation has surged far beyond that and is currently carries an average price of $35,14 per ounce, per Reuters. Additionally, Yahoo Finance has noted a commiserate rise in the value of gold over the summer, with both metals rallying despite the continued rollercoaster ride the markets have been on. Read More: Try This: Silver's value has maintained a steady rise, growing nearly 25% in the last eight months thanks to investor interest and industrial growth, per Sprott. While not quite record-breaking yet (that would be $49 per ounce, in 1980), it's getting close. With this boost in silver's value, there comes a crucial question: What does this mean for your dollar? Silver Is Now More Expensive The first and most obvious implication of silver's increased value is that it is now, quite simply, more expensive to purchase. Those who invest in silver will be paying more for it. To put it another way, the amount of silver you'd own for $500 in 2025 is less than what you'd purchase for the same amount in 2024, as the dollar is not growing with the metal. Find Out: A Weakening Dollar Speaking of the dollar not buying as much: Periods of increased previous metal values tend to inversely indicate a period of weak currency, as the dollar's purchasing power inherently diminishes in the face of silver (and gold's) rising value. Inflation on the Rise? Historically, an increase in silver's value often hints at (or outright reflects) investor skittishness about inflation. Silver's rise is often concomitant with investors preparing for an expected increase in inflation because of the dollar's devaluation. While not an guarantor of inflation, a steep rise in silver's value should be taken as a serious financial omen, at the very least. More From GOBankingRates 5 Old Navy Items Retirees Need To Buy Ahead of Fall How Much Money Is Needed To Be Considered Middle Class in Your State? This article originally appeared on Silver Is Reaching Record Highs: What This Means for Your Dollar
Time Business News
3 hours ago
- Time Business News
Beginners Guide to Business Consulting Firms in Gurgaon
In today's competitive world, running a business successfully requires more than just a great idea. You need strategic planning, financial management, digital presence, and compliance support to grow sustainably. That is why business consulting firms in Gurgaon are becoming the backbone for startups, SMEs, and large enterprises. They guide businesses through challenges, provide expert advice, and implement solutions that ensure long-term success. If you are new to the concept of consulting services, this beginner-friendly guide will help you understand what business consulting firms do, why Gurgaon is a hub for such firms, and how a trusted partner like Concat can support your journey toward growth. Business consulting firms are organizations that provide expert advice to businesses in various areas such as finance, operations, marketing, human resources, and technology. Instead of hiring multiple full-time experts, businesses can hire consultants who bring specialized knowledge and tailor solutions for specific needs. For example: If you want to expand your business into international markets, a consultant can prepare an expansion strategy. If your company struggles with online visibility, digital marketing consultants can boost your presence. If compliance with HR laws is a challenge, HR consulting experts can manage it for you. Simply put, consulting firms act as partners who solve problems, optimize processes, and unlock growth opportunities. Gurgaon, also known as Gurugram, has transformed into a thriving corporate and startup hub in India. Its proximity to Delhi, modern infrastructure, and presence of multinational corporations make it an attractive city for businesses. Here are some reasons why business consulting firms in Gurgaon are in high demand: Corporate Ecosystem – Gurgaon is home to global giants, IT companies, and emerging startups, all of which require consulting services. Talent Pool – The city has skilled professionals in finance, law, digital marketing, and IT. Global Exposure – Many consulting firms in Gurgaon serve clients across the world, bringing international expertise to Indian businesses. Accessibility – With easy connectivity to the airport and major highways, Gurgaon is convenient for both domestic and international clients. This makes Gurgaon a natural choice for businesses looking for expert consultants. A beginner may think consulting is only about giving advice. However, it is much more than that. Consulting firms in Gurgaon offer diverse services, such as: Business Strategy Consulting – Designing roadmaps for growth, market entry, and business expansion. Finance Consulting – Services like virtual CFO, taxation guidance, and budgeting. Human Resources Consulting – Outsourcing HR functions, ensuring compliance, and managing employee relations. Digital Marketing Consulting – SEO, content marketing, social media, and online branding. Legal and Compliance Consulting – Virtual legal officers, contract management, and regulatory compliance. Technology Consulting – Digital transformation, IT infrastructure management, and virtual CIO services. By combining these services, consulting firms create 360-degree solutions that address every business challenge. While many firms operate in the city, Concat has established itself as a trusted name in the consulting space. With offices in India and Dubai and clients across the USA, UK, Australia, and Canada, Concat offers global-quality services tailored for local businesses. Here's why Concat is a preferred partner for many companies: Comprehensive Services – From business strategy to HR outsourcing, from virtual CFO to digital marketing, Concat provides an end-to-end suite of services. – From business strategy to HR outsourcing, from virtual CFO to digital marketing, Concat provides an end-to-end suite of services. Expert Team – The consultants at Concat have years of experience across industries, ensuring practical and results-driven solutions. – The consultants at Concat have years of experience across industries, ensuring practical and results-driven solutions. Global Reach – Working with international clients gives Concat a unique edge in providing insights that align with global standards. – Working with international clients gives Concat a unique edge in providing insights that align with global standards. Customized Approach – Instead of a one-size-fits-all model, Concat designs strategies that suit your unique business goals. – Instead of a one-size-fits-all model, Concat designs strategies that suit your unique business goals. Focus on SMEs and Startups – Concat understands the challenges faced by small and medium businesses and helps them scale sustainably. For businesses in Gurgaon, Concat acts as a one-stop partner for growth, compliance, and digital transformation. As a beginner, you might ask, 'Do I really need a consulting firm?' The answer is yes, especially if you want to save time, avoid costly mistakes, and accelerate growth. Here are a few scenarios where hiring a consulting firm can help: When expanding into new markets – Consultants can conduct market research and prepare a go-to-market plan. – Consultants can conduct market research and prepare a go-to-market plan. When struggling with finances – Virtual CFO services can help you manage cash flow, taxation, and compliance. – Virtual CFO services can help you manage cash flow, taxation, and compliance. When lacking HR expertise – Virtual HR services can handle employee policies, recruitment, and labor law compliance. – Virtual HR services can handle employee policies, recruitment, and labor law compliance. When your business lacks online presence – Digital marketing experts can strengthen your brand visibility. By outsourcing these tasks to experts, you can focus on your core business while ensuring other functions are professionally managed. If you are looking for business consulting firms in Gurgaon, here's a simple step-by-step process: Define Your Needs – Do you need finance consulting, HR services, or digital marketing? Research Firms – Shortlist firms with proven experience and strong client testimonials. Check Service Offerings – Ensure they provide both core and supporting services. Evaluate Costs – Compare service charges and choose a firm that offers value for money. Ask About Customization – Avoid firms that push generic solutions; look for personalized strategies. Start with a Trial Project – Test their expertise with a short-term project before committing long-term. When you follow these steps, firms like Concat will stand out for their credibility, expertise, and wide service offerings. In conclusion, business consulting firms in Gurgaon play a vital role in helping organizations grow and thrive in a competitive environment. Whether you are a startup seeking guidance, an SME managing compliance, or a large corporation aiming for global expansion, consulting firms provide the roadmap to success. Among these, Concat has built a strong reputation by offering end-to-end consulting services that cover finance, HR, legal, digital marketing, and business strategy. With its expertise, global experience, and client-focused approach, Concat is the ideal partner for businesses in Gurgaon and beyond. TIME BUSINESS NEWS
USA Today
4 hours ago
- USA Today
Shein, Temu expected to raise prices due to loophole closing this month
A trade loophole that allows for low-value goods to be shipped to the U.S. duty-free is set to end on Aug. 29 after President Donald Trump signed an executive order last month to sunset the de minimis trade agreement. Packages valued at $800 or less sent to the U.S. outside of the international postal network will now face "all applicable duties," the White House said in July. Shein and Temu are two popular fast fashion brands that have attracted American shoppers looking to place large orders at heavily discounted costs and often with free shipping. With the trade loophole ending, U.S. consumers are bracing to see rising prices, including in their once-cheap fast fashion orders. Here's how consumers could be effected by the policy change: What is de minimis and why will it impact Shein and Temu? Shein and Temu sell a range of products, including clothing, furniture and more that arrive quickly and cheaply. Over half of all packages with de minimis exemptions come from China, and more than 30% of all daily packages shipped under de minimis are from Temu and Shein, Reuters reported in February. A provision in the Tariff Act of 1930 allows for de minimis exemptions, which has become the primary route for e-commerce imports from China to enter the U.S. According to a congressional report from February, between 2018 and 2023, Chinese exports of low-value, single packages increased dramatically from $5.3 billion to $66 billion. Shein, Temu prices have gone up: We tracked some items to see how much. How will the change impact consumers? Shein and Temu announced in early April that prices would be rising on both platforms in response to changing trade policy between the U.S. and China. They have yet to announce how much their prices will increase once the de minimis trade loophole ends at the end of August. Eliminating the loophole for China would have "far-reaching negative effects for Americans, particularly poorer consumers," according to libertarian think tank the Cato Institute. Republican U.S. Senator Jim Banks of Indiana hailed the executive order, saying "for too long, countries like China have flooded our markets with duty-free, cheap imports." Contributing: Kinsey Crowley and staff, USA TODAY; Reuters
