News Analysis India

Tag: RBI

  • TRAI Allots New 160 Mobile Phone Series To Key Financial Entities To Curb Spams |

    New Delhi: The government has allocated 160 mobile phone series for making transactional and service voice calls for all entities regulated by RBI, SEBI, IRDAI and PFRDA in the first phase, in order to prevent the duping of citizens from the fraudsters.

    The Telecom Regulatory Authority of India (TRAI) met representatives from the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), and other financial institutions and all the telecom service providers (TSPs).

    Once the 160 mobile series is implemented, it will help in the easy identification of the calling entity. The meeting provided a platform for the exchange of ideas among the regulators, entities and telecom service providers regarding the effective utilisation of this series, said the Ministry of Communications.

    The operation of the 140 series, at present being used for promotional purposes, is being migrated to distributed ledger technology (DLT) platform and scrubbing of digital consent is also being operationalised, said the Ministry.

    “With the implementation of the above two measures, substantial control on spam calls from 10-digit numbers is expected,” said the Ministry. At the meeting, the regulators, banks and other financial institutions emphasised the need to work collaboratively to curb the menace of spam, particularly through voice calls and assured all cooperation for the implementation of various initiatives by TRAI in a time-bound manner.

  • RBI To Set Up Digital Payments Intelligence Platform To Combat Online Fraud |

    New Delhi: In a bid to bolster the safety and security of digital payments and enhance regulatory frameworks, the Reserve Bank of India (RBI) unveiled a series of proposals aimed at fostering innovation, inclusivity, and efficiency in the financial ecosystem.

    These initiatives, announced by RBI Governor Shaktikanta Das, signify the central bank’s commitment to fortifying India’s digital infrastructure and promoting a conducive environment for financial transactions. One of the key announcements made by Governor Das pertained to the establishment of a Digital Payments Intelligence Platform. 

    This platform, leveraging advanced technologies, aims to mitigate payment fraud risks and enhance the safety of digital transactions. According to the annual report released by the Reserve Bank of India (RBI) on May 30, there was a significant surge in the number of financial frauds reported by banks, increasing by 166 per cent year-on-year in the financial year 2023-24 to reach 36,075 cases.
    This figure starkly contrasts with the 13,564 cases reported in the previous fiscal year, FY23.

    Despite the notable rise in the number of fraud cases, there was a substantial decrease in the total amount involved in these incidents. The amount of money associated with total bank frauds plummeted by 46.7 per cent year-on-year in the financial year 2023-24, totaling Rs 13,930 crore. In comparison, the amount recorded in FY23 stood at Rs 26,127 crore.

    RBI has proposed a revision of the limit of bulk deposits for Scheduled Commercial Banks (SCBs) and Small Finance Banks (SFBs). This move, aimed at enhancing flexibility and aligning with evolving market dynamics, underscores the RBI’s commitment to fostering a conducive environment for the banking sector.

    Currently, banks have the discretion to offer differential rates of interest on bulk deposits based on their requirements and Asset-Liability Management (ALM) projections. The existing bulk deposit limit for SCBs (excluding Regional Rural Banks) and SFBs, set at ‘Single Rupee term deposits of Rs 2 crore and above,’ was established in 2019.

    However, following a comprehensive review, the RBI has proposed to revise this definition to ‘Single Rupee term deposits of Rs 3 crore and above’ for SCBs and SFBs. In addition to the proposed revision for SCBs and SFBs, the RBI has also suggested defining the bulk deposit limit for Local Area Banks (LABs) as ‘Single Rupee term deposits of Rs 1 crore and above,’ mirroring the criteria applicable to Regional Rural Banks (RRBs).

    RBI has also unveiled plans to rationalize export and import regulations under the Foreign Exchange Management Act (FEMA), 1999. This initiative, driven by the imperative of progressive liberalization and operational flexibility, underscores the RBI’s commitment to fostering a conducive environment for international trade and investment.

    By eliminating redundancies, enhancing clarity, and reducing procedural complexities, the RBI aims to promote ease of doing business for all stakeholders involved in cross-border trade.
    The RBI aims to streamline and simplify operational procedures related to export and import transactions, thereby reducing administrative burdens and enhancing efficiency for businesses and authorized dealer banks.

    By aligning regulations with international best practices and market realities, the RBI seeks to create a business-friendly environment conducive to fostering trade and investment growth. Simplified regulations will facilitate smoother trade transactions, encouraging businesses to explore new markets and expand their global footprint.

    While promoting ease of doing business, the RBI remains committed to ensuring compliance with regulatory requirements and safeguarding the integrity of the financial system. The proposed rationalization will uphold the principles of transparency, accountability, and risk management in cross-border transactions.

    As part of the process, the RBI plans to publish draft regulations and directions on its official website by the end of June 2024. In a bid to enhance the convenience and efficiency of digital payments, RBI has unveiled plans to expand the e-mandate framework to include recurring payments for Fastag, National Common Mobility Card (NCMC), and similar services.

    This initiative, aimed at modernizing payment systems and promoting financial inclusion, underscores the RBI’s commitment to fostering innovation and leveraging technology to meet evolving consumer needs. The current UPI Lite service permits customers to load their UPI Lite wallets with up to Rs 2000/- and conduct transactions of up to Rs 500 from the wallet.

    To enhance the seamless usage of UPI Lite for customers, and in response to feedback from various stakeholders, it is suggested to integrate UPI Lite into the e-mandate framework. This integration would introduce an auto-replenishment feature for UPI Lite wallets, automatically refilling the wallet balance when it falls below a predetermined threshold set by the customer.

    Since the funds remain under the customer’s control (transferring from their account to the wallet), it is proposed to eliminate the need for additional authentication or pre-debit notifications. Relevant guidelines pertaining to this proposal will be issued shortly.

    RBI has embarked on a mission to foster innovation and transformation in the financial sector with the launch of its third edition of the global hackathon, “HARBINGER 2024 – Innovation for Transformation.”

    It would feature two primary themes: ‘Zero Financial Frauds’ and ‘Being Divyang Friendly.’ Solutions aimed at bolstering the safety and security of digital transactions, with a specific emphasis on identifying, preventing, and combating financial frauds, will be solicited. Additionally, there will be a focus on fostering inclusivity for individuals with physical disabilities. Further details regarding the hackathon will be unveiled shortly.

  • Rs 2000 note exchange begins today

    Express News Service

    MUMBAI:  A day before the Reserve Bank of India opens the window for exchange of Rs 2,000 denomination currency notes, RBI governor Shaktikanta Das on Monday dismissed rumours of a new Rs 1,000 currency note being in the works. “There’s no such proposal right now,” he told reporters here on Monday in his first media interaction after the decision to withdraw the highest denomination note from circulation last Friday.

    As the window for customers to exchange Rs 2,000 notes in their possession will start on Tuesday, Das said there is no need to panic. Urging the public not to rush to banks, he said enough time has been given to exchange the notes. He reiterated the notes will remain legal tender (valid for transaction). The RBI governor’s comments came after reports said people and businesses have stopped accepting Rs 2,000 notes as a mode of payment.

    “Let me clarify and re-emphasise that it is a part of the currency management operations of the Reserve Bank. For a long time, the Reserve Bank has been following a clean note policy,” he said, adding: “From time to time, RBI withdraws notes of a particular series and issues fresh notes. We are withdrawing the Rs 2,000 notes from circulation but they continue as legal tender.”

    He expects most of the notes to be returned to the exchequer by the deadline of September 30 and no scarcity of other notes. “We have given a deadline so that the process will be taken seriously. We can’t leave it open-ended,” he said.

    RBI has urged the public to exchange or deposit these notew by September 30. “We have more than adequate quantities of printed notes already available in the system, not just with RBI but with currency chests operated by banks. There is no reason for worry. We have sufficient stocks, no need to worry,” Das clarified.

    The impact of the withdrawal on the economy will be “very very marginal”, he said, adding Rs 2,000 currency notes made up for just 10.8% of the total currency in circulation. While the withdrawn Rs 2,000 rupee notes can either be deposited in bank accounts or exchanged for other denomination notes, banks have been advised to make necessary arrangements for exchange.

    MUMBAI:  A day before the Reserve Bank of India opens the window for exchange of Rs 2,000 denomination currency notes, RBI governor Shaktikanta Das on Monday dismissed rumours of a new Rs 1,000 currency note being in the works. “There’s no such proposal right now,” he told reporters here on Monday in his first media interaction after the decision to withdraw the highest denomination note from circulation last Friday.

    As the window for customers to exchange Rs 2,000 notes in their possession will start on Tuesday, Das said there is no need to panic. Urging the public not to rush to banks, he said enough time has been given to exchange the notes. He reiterated the notes will remain legal tender (valid for transaction). 
    The RBI governor’s comments came after reports said people and businesses have stopped accepting Rs 2,000 notes as a mode of payment.

    googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });

    “Let me clarify and re-emphasise that it is a part of the currency management operations of the Reserve Bank. For a long time, the Reserve Bank has been following a clean note policy,” he said, adding: “From time to time, RBI withdraws notes of a particular series and issues fresh notes. We are withdrawing the Rs 2,000 notes from circulation but they continue as legal tender.”

    He expects most of the notes to be returned to the exchequer by the deadline of September 30 and no scarcity of other notes. “We have given a deadline so that the process will be taken seriously. We can’t leave it open-ended,” he said.

    RBI has urged the public to exchange or deposit these notew by September 30. “We have more than adequate quantities of printed notes already available in the system, not just with RBI but with currency chests operated by banks. There is no reason for worry. We have sufficient stocks, no need to worry,” Das clarified.

    The impact of the withdrawal on the economy will be “very very marginal”, he said, adding Rs 2,000 currency notes made up for just 10.8% of the total currency in circulation. While the withdrawn Rs 2,000 rupee notes can either be deposited in bank accounts or exchanged for other denomination notes, banks have been advised to make necessary arrangements for exchange.

  • RBI, govt bid to calm nerves on Adani stock

    Express News Service

    MUMBAI: With the Adani group saga still unravelling, the regulators and the Centre on Friday came up with clarifications to calm investors’ frayed nerves. While the Reserve Bank of India sought to allay the concerns about lenders’ exposure to Adani Group saying the banking sector remains resilient and stable, Union finance minister Nirmala Sithraman reiterated that the exposure of State Bank of India and the Life Insurance Corporation is within limits.

    Sitharaman said in a television interview that government-owned financial institutions do not have overexposure in Adani group stocks. On LIC’s exposure, the finance minister said even with valuations falling, the company is still sitting on profits.

    Also Read: Adani says shared origin with PM Modi made him an easy target as shares get pummelled again

    SBI chairman Dinesh Khara also chipped in, clarifying that the bank’s exposure to Adani group is only 0.88% of its total loans, or Rs 27,000 crore, while Bank of Baroda said its exposure is one-fourth of the permissible ceiling. 

    However, there was no respite for Adani as bad news kept pouring. Credit rating agency Moody’s said the recent sell-off in Adani shares could reduce the group’s ability to raise capital and that it is assessing overall financial flexibility, including liquidity position of Adani firms. 

    Taking a harsh stand, S&P Dow Jones Indices said it would remove Adani Enterprises from the widely used sustainability indices on February 7, making the shares less appealing to environment-conscious investors. In another blow to the Indian conglomerate, S&P Global Ratings revised its outlook for Adani Ports and Special Economic Zone and Adani Electricity from ‘stable’ to ‘negative’.

    However, the Gautam Adani-led group found backing from Fitch Ratings, which said there is no immediate impact on the ratings of Adani entities and their securities. On Friday, shares of Adani Enterprises recovered after hitting a fresh 52-week low of Rs 1,017.45 on the NSE.

    Meanwhile, amid Opposition parties’ clamour for a Joint Parliamentary Committee probe, Union minister Pralhad Joshi said on Friday that the government has nothing to do with the Adani issue.

    MUMBAI: With the Adani group saga still unravelling, the regulators and the Centre on Friday came up with clarifications to calm investors’ frayed nerves. While the Reserve Bank of India sought to allay the concerns about lenders’ exposure to Adani Group saying the banking sector remains resilient and stable, Union finance minister Nirmala Sithraman reiterated that the exposure of State Bank of India and the Life Insurance Corporation is within limits.

    Sitharaman said in a television interview that government-owned financial institutions do not have overexposure in Adani group stocks. On LIC’s exposure, the finance minister said even with valuations falling, the company is still sitting on profits.

    Also Read: Adani says shared origin with PM Modi made him an easy target as shares get pummelled again

    SBI chairman Dinesh Khara also chipped in, clarifying that the bank’s exposure to Adani group is only 0.88% of its total loans, or Rs 27,000 crore, while Bank of Baroda said its exposure is one-fourth of the permissible ceiling. 

    However, there was no respite for Adani as bad news kept pouring. Credit rating agency Moody’s said the recent sell-off in Adani shares could reduce the group’s ability to raise capital and that it is assessing overall financial flexibility, including liquidity position of Adani firms. 

    Taking a harsh stand, S&P Dow Jones Indices said it would remove Adani Enterprises from the widely used sustainability indices on February 7, making the shares less appealing to environment-conscious investors. In another blow to the Indian conglomerate, S&P Global Ratings revised its outlook for Adani Ports and Special Economic Zone and Adani Electricity from ‘stable’ to ‘negative’.

    However, the Gautam Adani-led group found backing from Fitch Ratings, which said there is no immediate impact on the ratings of Adani entities and their securities. On Friday, shares of Adani Enterprises recovered after hitting a fresh 52-week low of Rs 1,017.45 on the NSE.

    Meanwhile, amid Opposition parties’ clamour for a Joint Parliamentary Committee probe, Union minister Pralhad Joshi said on Friday that the government has nothing to do with the Adani issue.

  • Banks write off loans worth Rs 11.17 lakh crore in last six years

    By PTI

    NEW DELHI: Banks have written off Rs 11.17 lakh crore bad loans from their books in the last six years till financial year 2021-22, Parliament was informed on Tuesday.

    The non-performing assets (NPAs), including those in respect of which full provisioning has been made on completion of four years, are removed from the balance sheet of the bank concerned by way of write-off, Minister of State for Finance Bhagwat Karad said in a written reply.

    Banks write off NPAs as part of their regular exercise to clean up their balance sheet, avail tax benefit and optimise capital, he said, adding, the write-off is carried out by the banks in accordance with RBI guidelines and policy approved by their boards.

    “As per RBI data, public sector banks (PSBs) and scheduled commercial banks (SCBs) wrote off an aggregate amount of Rs 8,16,421 crore and Rs 11,17,883 crore respectively during the last six financial years,” he said.

    With regard to the list, including names of write-offs/defaulters who have defaulted more than Rs 1 crore to the public sector banks, RBI has informed that borrower-wise information on written off loan accounts is not maintained by it, he said.

    In reply to another question, Karad said, the Reserve Bank of India (RBI) has informed that the total number of wilful defaulters each having outstanding loan of Rs 25 lakh and above in public sector banks was 8,045 as on June 30, 2017 and 12,439 as on June 30, 2022; whereas in private sector bank, it was 1,616 as on June 30, 2017 and 2,447 as on June 30, 2022.

    He further said, “RBI has informed that as on 30.6.2017, there were 8,744 suit-filed wilful defaulters and 917 non-suit-filed wilful defaulters in public and private sector banks, and as on 30.6.2022, the same stands at 14,485 and 401 respectively.”

    The list of suit-filed wilful defaulters of Rs 25 lakh and above is available in the public domain on the websites of the Credit Information Companies (CICs) and that of non-suit filed wilful defaulters is confidential in nature and are not in public domain.

    The Enforcement Directorate (ED) has informed that 515 fraud cases, including cases related to wilful defaulters, have been recorded since May 1, 2017 under the provisions of Prevention of Money Laundering Act (PMLA), 2002.

    As on December 15, 2022, he said, in these cases, assets worth Rs 44,992 crore (approx.) have been attached and 39 prosecution complaints have been filed by the Directorate.

    Further, as on December 15, 2022, assets worth Rs 19,312.20 crore of wilful defaulters like Vijay Mallya, Nirav Modi and Mehul Choksi have been attached since May 2017 by the ED under PMLA, 2002, out of which, assets worth Rs 15,113 crore have been restituted to the public sector banks, he said.

    Banks themselves write off NPAs as part of their regular exercise to clean up their balance sheet, avail tax benefit and optimise capital, in accordance with RBI guidelines and policy approved by their boards, he said.

    Replying to another question, Karad said Scheduled Commercial Banks have recovered an aggregate amount of Rs 6,59,596 crore, including the recovery of Rs 1,32,036 crore from written-off loan accounts during the last five financial years as per the RBI data.

    In reply to another question, he said, the total amount of recapitalisation by the government in banks during last five financial years is Rs 2,90,600 crore, including recapitalisation of Rs 4,557 crore in IDBI Bank Ltd, which has been categorised as private sector bank by RBI on January 21, 2019.

    In the financial year 2021-22 and first half of the financial year 2022-23, he said, PSBs have reported aggregate net profit of Rs 66,543 crore and Rs 40,992 crore respectively.

    NEW DELHI: Banks have written off Rs 11.17 lakh crore bad loans from their books in the last six years till financial year 2021-22, Parliament was informed on Tuesday.

    The non-performing assets (NPAs), including those in respect of which full provisioning has been made on completion of four years, are removed from the balance sheet of the bank concerned by way of write-off, Minister of State for Finance Bhagwat Karad said in a written reply.

    Banks write off NPAs as part of their regular exercise to clean up their balance sheet, avail tax benefit and optimise capital, he said, adding, the write-off is carried out by the banks in accordance with RBI guidelines and policy approved by their boards.

    “As per RBI data, public sector banks (PSBs) and scheduled commercial banks (SCBs) wrote off an aggregate amount of Rs 8,16,421 crore and Rs 11,17,883 crore respectively during the last six financial years,” he said.

    With regard to the list, including names of write-offs/defaulters who have defaulted more than Rs 1 crore to the public sector banks, RBI has informed that borrower-wise information on written off loan accounts is not maintained by it, he said.

    In reply to another question, Karad said, the Reserve Bank of India (RBI) has informed that the total number of wilful defaulters each having outstanding loan of Rs 25 lakh and above in public sector banks was 8,045 as on June 30, 2017 and 12,439 as on June 30, 2022; whereas in private sector bank, it was 1,616 as on June 30, 2017 and 2,447 as on June 30, 2022.

    He further said, “RBI has informed that as on 30.6.2017, there were 8,744 suit-filed wilful defaulters and 917 non-suit-filed wilful defaulters in public and private sector banks, and as on 30.6.2022, the same stands at 14,485 and 401 respectively.”

    The list of suit-filed wilful defaulters of Rs 25 lakh and above is available in the public domain on the websites of the Credit Information Companies (CICs) and that of non-suit filed wilful defaulters is confidential in nature and are not in public domain.

    The Enforcement Directorate (ED) has informed that 515 fraud cases, including cases related to wilful defaulters, have been recorded since May 1, 2017 under the provisions of Prevention of Money Laundering Act (PMLA), 2002.

    As on December 15, 2022, he said, in these cases, assets worth Rs 44,992 crore (approx.) have been attached and 39 prosecution complaints have been filed by the Directorate.

    Further, as on December 15, 2022, assets worth Rs 19,312.20 crore of wilful defaulters like Vijay Mallya, Nirav Modi and Mehul Choksi have been attached since May 2017 by the ED under PMLA, 2002, out of which, assets worth Rs 15,113 crore have been restituted to the public sector banks, he said.

    Banks themselves write off NPAs as part of their regular exercise to clean up their balance sheet, avail tax benefit and optimise capital, in accordance with RBI guidelines and policy approved by their boards, he said.

    Replying to another question, Karad said Scheduled Commercial Banks have recovered an aggregate amount of Rs 6,59,596 crore, including the recovery of Rs 1,32,036 crore from written-off loan accounts during the last five financial years as per the RBI data.

    In reply to another question, he said, the total amount of recapitalisation by the government in banks during last five financial years is Rs 2,90,600 crore, including recapitalisation of Rs 4,557 crore in IDBI Bank Ltd, which has been categorised as private sector bank by RBI on January 21, 2019.

    In the financial year 2021-22 and first half of the financial year 2022-23, he said, PSBs have reported aggregate net profit of Rs 66,543 crore and Rs 40,992 crore respectively.

  • Rahul’s Bharat Jodo Yatra: Former RBI Governor Raghuram Rajan joins Rajasthan leg

    By PTI

    JAIPUR: Reserve Bank of India’s former governor Raghuram Rajan on Wednesday joined Rahul Gandhi during the Congress-led Bharat Jodo Yatra in Rajasthan.

    The Bharat Jodo Yatra, which started from Kanyakumari in Tamil Nadu on September 7, is passing through Rajasthan.

    The yatra will complete 100 days on Friday.

    A strong and sound economy is a combination of growth and welfare.Our vision is to reclaim that India.We are glad that Former RBI Governor & leading Economist, Shri Raghuram Rajan joined the #BharatJodoYatra in our endeavour to build an agenda for the future. pic.twitter.com/WeM0gq9uk7
    — Mallikarjun Kharge (@kharge) December 14, 2022
    The yatra resumed from the Bhadoti area of Sawai Madhopur on Wednesday and reached Badhshapura for a morning break.

    Rajan walked with Gandhi during this leg of the yatra on Wednesday.

    “#BharatJodoYatra Shri Raghuram Rajan, former Governor of RBI, shaking steps with @RahulGandhi ji… The increasing number of people standing up to unite the country against hatred shows that we will be successful,” The Indian National Congress tweeted along with a picture of Rajan walking with Congress leader Rahul Gandhi.

    Dr Raghuram Rajan was the 23rd Governor of the Reserve Bank of India between September 2013 and September 2016. Between 2003 and 2006, he was the Chief Economist and Director of Research at the International Monetary Fund.

    The yatra will resume at 3.30 pm and the evening break will be in Bagdi village of Dausa at 6.30 pm.

    JAIPUR: Reserve Bank of India’s former governor Raghuram Rajan on Wednesday joined Rahul Gandhi during the Congress-led Bharat Jodo Yatra in Rajasthan.

    The Bharat Jodo Yatra, which started from Kanyakumari in Tamil Nadu on September 7, is passing through Rajasthan.

    The yatra will complete 100 days on Friday.

    A strong and sound economy is a combination of growth and welfare.
    Our vision is to reclaim that India.
    We are glad that Former RBI Governor & leading Economist, Shri Raghuram Rajan joined the #BharatJodoYatra in our endeavour to build an agenda for the future. pic.twitter.com/WeM0gq9uk7
    — Mallikarjun Kharge (@kharge) December 14, 2022
    The yatra resumed from the Bhadoti area of Sawai Madhopur on Wednesday and reached Badhshapura for a morning break.

    Rajan walked with Gandhi during this leg of the yatra on Wednesday.

    “#BharatJodoYatra Shri Raghuram Rajan, former Governor of RBI, shaking steps with @RahulGandhi ji… The increasing number of people standing up to unite the country against hatred shows that we will be successful,” The Indian National Congress tweeted along with a picture of Rajan walking with Congress leader Rahul Gandhi.

    Dr Raghuram Rajan was the 23rd Governor of the Reserve Bank of India between September 2013 and September 2016. Between 2003 and 2006, he was the Chief Economist and Director of Research at the International Monetary Fund.

    The yatra will resume at 3.30 pm and the evening break will be in Bagdi village of Dausa at 6.30 pm.

  • SC reserves verdict in pleas challenging Demonetisation policy 

    Express News Service

    NEW DELHI: The Supreme Court on Wednesday reserved a verdict in pleas challenging the Centre’s 2016 decision to demonetise Rs 500 and 1000 notes. 

    A five-judge bench led by Justice S Abdul Nazeer also directed the central government and RBI to place before it records pertaining to the decision in a sealed envelope for its perusal. 

    The plea had also challenged the validity of the notification dated November 8, 2016, issued under the Reserve Bank of India Act, 1934 on the ground that it violated Articles 14, 19, 21 and 300A of the Constitution of India. On December 16, 2016, a three-judge bench of the SC refused to grant interim relief against the decision of demonetisation but had framed questions to be determined by a larger bench. 

    Appearing for the petitioners, Senior Advocate Shyam Divan in his rejoinder submissions had contended that demonetisation must have been carried out by the legislature and not by the executive. It was also his contention that the recommendation by the central board was a condition precedent.

    Stressing on RBIs authority to advise the Union on matters of currency regulation, he added that the union’s demonetisation notification to which the RBI “meekly agreed” degraded RBI’s undisputed expertise. “Statutory guarantee cannot be diminished in terms of executive action,” he further added.

    Laying emphasis on SC’s order of transferring all petitions before the lower courts to itself, he urged the court to pass general order granting relief to citizens as it was difficult for the citizens to individually approach SC. 

    Senior Advocate and former Finance Minister P Chidambaram had said the centre could act only pursuant to the recommendations made by the RBI central board. 

    “PM’s assurance said if you follow instructions, your money will remain yours. He has mentioned 50 days. Even if he had said that more time would be granted, no case was made out that promissory estoppel operates,” said Senior Advocate Jaideep Gupta on behalf of the RBI.

    The submissions were also made by AG R Venkataramani for Central Government. Yesterday, Attorney General for India, R Venkataramani contended that the decision of demonetisation was taken to address three evils related to social policy. 

    NEW DELHI: The Supreme Court on Wednesday reserved a verdict in pleas challenging the Centre’s 2016 decision to demonetise Rs 500 and 1000 notes. 

    A five-judge bench led by Justice S Abdul Nazeer also directed the central government and RBI to place before it records pertaining to the decision in a sealed envelope for its perusal. 

    The plea had also challenged the validity of the notification dated November 8, 2016, issued under the Reserve Bank of India Act, 1934 on the ground that it violated Articles 14, 19, 21 and 300A of the Constitution of India. On December 16, 2016, a three-judge bench of the SC refused to grant interim relief against the decision of demonetisation but had framed questions to be determined by a larger bench. 

    Appearing for the petitioners, Senior Advocate Shyam Divan in his rejoinder submissions had contended that demonetisation must have been carried out by the legislature and not by the executive. It was also his contention that the recommendation by the central board was a condition precedent.

    Stressing on RBIs authority to advise the Union on matters of currency regulation, he added that the union’s demonetisation notification to which the RBI “meekly agreed” degraded RBI’s undisputed expertise. “Statutory guarantee cannot be diminished in terms of executive action,” he further added.

    Laying emphasis on SC’s order of transferring all petitions before the lower courts to itself, he urged the court to pass general order granting relief to citizens as it was difficult for the citizens to individually approach SC. 

    Senior Advocate and former Finance Minister P Chidambaram had said the centre could act only pursuant to the recommendations made by the RBI central board. 

    “PM’s assurance said if you follow instructions, your money will remain yours. He has mentioned 50 days. Even if he had said that more time would be granted, no case was made out that promissory estoppel operates,” said Senior Advocate Jaideep Gupta on behalf of the RBI.

    The submissions were also made by AG R Venkataramani for Central Government. Yesterday, Attorney General for India, R Venkataramani contended that the decision of demonetisation was taken to address three evils related to social policy. 

  • SC directs Centre, RBI to put on record relevant records relating to govt’s decision on demonetisation

    By PTI

    NEW DELHI: The Supreme Court on Wednesday directed the Centre and the Reserve Bank of India (RBI) to put on record relevant records relating to the government’s 2016 decision to demonetise currency notes of Rs 1000 and Rs 500 denominations.

    Reserving its verdict on a batch of pleas challenging the Centre’s 2016 decision, a five-judge constitution bench headed by Justice S A Nazeer heard the submissions from Attorney General R Venkataramani, RBI’s counsel and the petitioners’ lawyers including senior advocates P Chidambaram and Shyam Divan.

    “Heard. judgement reserved. Learned counsels of the Union of India and Reserve Bank of India are directed to produce the relevant records,” the bench also comprising Justices B R Gavai, A S Bopanna, V Ramasubramanian, and B V Nagarathna,” said.

    The AG submitted before the bench that he will submit relevant records in a sealed cover.

    The top court was hearing a batch of 58 petitions challenging the demonetisation exercise announced by the Centre on November 8, 2016.

    NEW DELHI: The Supreme Court on Wednesday directed the Centre and the Reserve Bank of India (RBI) to put on record relevant records relating to the government’s 2016 decision to demonetise currency notes of Rs 1000 and Rs 500 denominations.

    Reserving its verdict on a batch of pleas challenging the Centre’s 2016 decision, a five-judge constitution bench headed by Justice S A Nazeer heard the submissions from Attorney General R Venkataramani, RBI’s counsel and the petitioners’ lawyers including senior advocates P Chidambaram and Shyam Divan.

    “Heard. judgement reserved. Learned counsels of the Union of India and Reserve Bank of India are directed to produce the relevant records,” the bench also comprising Justices B R Gavai, A S Bopanna, V Ramasubramanian, and B V Nagarathna,” said.

    The AG submitted before the bench that he will submit relevant records in a sealed cover.

    The top court was hearing a batch of 58 petitions challenging the demonetisation exercise announced by the Centre on November 8, 2016.

  • RBI expects CAD to remain within 3 per cent in FY23

    By Express News Service

    Even as analysts and economists predict India’s current account deficit (CAD) to be over 3%, the Reserve Bank of India (RBI) is expecting the CAD to be within 3% of GDP.

    This confidence of the country’s Central Bank stems from India’s export performance. In its State of the Economy report, the Central Bank says that the export target of $750 billion for goods and services for 2022-23 is appearing within reach. In addition, it says that India is cementing its position as the top remittances receiver in the world, with inflows touching US$ 90 billion last year and set to create a new record (this year).

    A country has a current account deficit when its imports of goods, services and net income from overseas investments exceed its exports.

    The RBI also appeared confident of financing this deficit. “With portfolio flows returning and foreign direct investment remaining strong, this order of deficit is eminently financeable,” it said in its State of the Economy report.

    And even as the RBI is optimistic about lower than 3% CAD, analysts have a different view. Recently, rating agency ICRA projected CAD at 3.5% of GDP in FY23.

    India Ratings in a report on Friday said that as GDP forecasts of some of India’s key exporting destinations such as the US, Eurozone and China have been revised downwards, this may put India’s exports targets of $750 billion (goods and services) for FY23 in jeopardy.

    Even as analysts and economists predict India’s current account deficit (CAD) to be over 3%, the Reserve Bank of India (RBI) is expecting the CAD to be within 3% of GDP.

    This confidence of the country’s Central Bank stems from India’s export performance. In its State of the Economy report, the Central Bank says that the export target of $750 billion for goods and services for 2022-23 is appearing within reach. In addition, it says that India is cementing its position as the top remittances receiver in the world, with inflows touching US$ 90 billion last year and set to create a new record (this year).

    A country has a current account deficit when its imports of goods, services and net income from overseas investments exceed its exports.

    The RBI also appeared confident of financing this deficit. “With portfolio flows returning and foreign direct investment remaining strong, this order of deficit is eminently financeable,” it said in its State of the Economy report.

    And even as the RBI is optimistic about lower than 3% CAD, analysts have a different view. Recently, rating agency ICRA projected CAD at 3.5% of GDP in FY23.

    India Ratings in a report on Friday said that as GDP forecasts of some of India’s key exporting destinations such as the US, Eurozone and China have been revised downwards, this may put India’s exports targets of $750 billion (goods and services) for FY23 in jeopardy.

  • Cong demands white paper on privatisation of public sector banks from govt 

    By PTI

    NEW DELHI: The Congress on Saturday accused the Centre of having pressured the RBI to “disown” its research report which argued against a “big bang approach” to privatisation of banks, and demanded that the government come out with a white paper on public sector banks’ privatisation.

    Party leader Rahul Gandhi said “tanashah’s (dictator’s) wish is the government’s command” and even independent institutions like the RBI, which have been the anchors of India’s economic growth, have been forced to bend before the “supreme leader” and the agenda of his “mitron friends” from time to time.

    “A well-researched article published by the RBI advocated against hurried privatisation of public sector banks and praised their efficiency. It disturbed the ‘tanashah’ very much,” he said.

    “The government sprung into action to restore its supreme leader’s peace of mind. The next day, the RBI issued a clarification that it was not against privatisation of banks,” Gandhi said.

    Public sector banks have acted as shields during crises for India, they have been the harbingers of growth and instruments of financial inclusion, he said.

    “Their reckless privatisation will have catastrophic consequences, and so will the diminishing independence of India’s institutions,” Gandhi said.

    The Opposition party hit out at the BJP over the privatisation of public sector banks (PSBs), calling it “Beche Jao Party”, and alleged that the central government had changed the Reserve Bank of India (RBI) to “Reverse Bank of India” by forcing it to make a “U-turn” over its own report.

    The RBI on Friday said a research paper favouring gradual privatisation of public sector banks (PSBs) is not its view but that of the authors of the report.

    Addressing reporters at the AICC headquarters here, Congress spokesperson Supriya Shrinate said the press conference was scheduled to discuss a very important study by the RBI research unit published in the August RBI Bulletin that raised concerns over the reckless privation of PSBs but instead the party has to first address how an institution like the RBI has been pressured by the government to issue a clarification.

    The RBI has “disowned” the research paper, emphatically stating that it is not the central bank’s view but that of the author, she said.

    “Clearly, this isn’t the first time the RBI has been forced to accept the government’s will — remember the disastrous demonetisation,” Shrinate said.

    It’s a pity that the same RBI which once hailed nationalisation of 14 banks as the single most important economic decision taken by any government since 1947, is today forced to disown its researchers’ report praising PSBs and their efficiency, the Congress leader said.

    The number of PSU banks in India has been reduced from 27 to merely 12 now, and the government plans to privatise more, Shrinate alleged.

    The study by the RBI’s research unit clearly red flags the consequences of bank privatisation as it highlights how the cornerstone of government policies has to be public good. So, the standard of efficiency for PSBs can’t be profits alone, she said.

    Shrinate pointed out that the report insists that large PSBs are better at priority sector lending including infra lending. Also, it states that state-owned banks have played a vital role in counter cyclical measures that private banks do not implement, she said.

    Shrinate said the RBI Bulletin clearly states that on measures of financial inclusion like total branches, agricultural advances and priority sector lending advances, public banks prove to be more efficient than private ones.

    The bold decision taken by former prime minister Indira Gandhi to nationalise banks broke the monopoly of a few money lenders and ensured consumers, farmers, middle class and the poor had access to money instead of just a select few very rich industrial houses.

    “I have said it before and I will say it again — public sector banks are not just financial institutions, they are actually agents of social empowerment,” she said.

    Underlining three demands of the Congress, Shrinate said the Modi government must lay out a full white paper on the privatisation of PSBs.

    “The Modi government must also stop pressuring institutions like the RBI to tow the government line. One has to look no further than demonetisation to assess what forcing the RBI resulted in,” she said.

    The Modi government must pause, assess and make a public declaration on what it aims to achieve through “reckless privatisation”, Shrinate said.

    The research paper published in the August issue of RBI Bulletin said “the gradual approach to privatisation adopted by the government can ensure that a void is not created in fulfilling the social objective of financial inclusion”.

    “A big bang approach of privatisation of these banks may do more harm than good. The government has already announced its intention to privatise two banks. Such a gradual approach would ensure that large-scale privatisation does not create a void in fulfilling important social objectives of financial inclusion and monetary transmission,” it said.

    NEW DELHI: The Congress on Saturday accused the Centre of having pressured the RBI to “disown” its research report which argued against a “big bang approach” to privatisation of banks, and demanded that the government come out with a white paper on public sector banks’ privatisation.

    Party leader Rahul Gandhi said “tanashah’s (dictator’s) wish is the government’s command” and even independent institutions like the RBI, which have been the anchors of India’s economic growth, have been forced to bend before the “supreme leader” and the agenda of his “mitron friends” from time to time.

    “A well-researched article published by the RBI advocated against hurried privatisation of public sector banks and praised their efficiency. It disturbed the ‘tanashah’ very much,” he said.

    “The government sprung into action to restore its supreme leader’s peace of mind. The next day, the RBI issued a clarification that it was not against privatisation of banks,” Gandhi said.

    Public sector banks have acted as shields during crises for India, they have been the harbingers of growth and instruments of financial inclusion, he said.

    “Their reckless privatisation will have catastrophic consequences, and so will the diminishing independence of India’s institutions,” Gandhi said.

    The Opposition party hit out at the BJP over the privatisation of public sector banks (PSBs), calling it “Beche Jao Party”, and alleged that the central government had changed the Reserve Bank of India (RBI) to “Reverse Bank of India” by forcing it to make a “U-turn” over its own report.

    The RBI on Friday said a research paper favouring gradual privatisation of public sector banks (PSBs) is not its view but that of the authors of the report.

    Addressing reporters at the AICC headquarters here, Congress spokesperson Supriya Shrinate said the press conference was scheduled to discuss a very important study by the RBI research unit published in the August RBI Bulletin that raised concerns over the reckless privation of PSBs but instead the party has to first address how an institution like the RBI has been pressured by the government to issue a clarification.

    The RBI has “disowned” the research paper, emphatically stating that it is not the central bank’s view but that of the author, she said.

    “Clearly, this isn’t the first time the RBI has been forced to accept the government’s will — remember the disastrous demonetisation,” Shrinate said.

    It’s a pity that the same RBI which once hailed nationalisation of 14 banks as the single most important economic decision taken by any government since 1947, is today forced to disown its researchers’ report praising PSBs and their efficiency, the Congress leader said.

    The number of PSU banks in India has been reduced from 27 to merely 12 now, and the government plans to privatise more, Shrinate alleged.

    The study by the RBI’s research unit clearly red flags the consequences of bank privatisation as it highlights how the cornerstone of government policies has to be public good. So, the standard of efficiency for PSBs can’t be profits alone, she said.

    Shrinate pointed out that the report insists that large PSBs are better at priority sector lending including infra lending. Also, it states that state-owned banks have played a vital role in counter cyclical measures that private banks do not implement, she said.

    Shrinate said the RBI Bulletin clearly states that on measures of financial inclusion like total branches, agricultural advances and priority sector lending advances, public banks prove to be more efficient than private ones.

    The bold decision taken by former prime minister Indira Gandhi to nationalise banks broke the monopoly of a few money lenders and ensured consumers, farmers, middle class and the poor had access to money instead of just a select few very rich industrial houses.

    “I have said it before and I will say it again — public sector banks are not just financial institutions, they are actually agents of social empowerment,” she said.

    Underlining three demands of the Congress, Shrinate said the Modi government must lay out a full white paper on the privatisation of PSBs.

    “The Modi government must also stop pressuring institutions like the RBI to tow the government line. One has to look no further than demonetisation to assess what forcing the RBI resulted in,” she said.

    The Modi government must pause, assess and make a public declaration on what it aims to achieve through “reckless privatisation”, Shrinate said.

    The research paper published in the August issue of RBI Bulletin said “the gradual approach to privatisation adopted by the government can ensure that a void is not created in fulfilling the social objective of financial inclusion”.

    “A big bang approach of privatisation of these banks may do more harm than good. The government has already announced its intention to privatise two banks. Such a gradual approach would ensure that large-scale privatisation does not create a void in fulfilling important social objectives of financial inclusion and monetary transmission,” it said.