News Analysis India

Tag: RBI

  • Centre can’t shirk responsibility of universal COVID vaccination: Former RBI Governor

    By PTI
    HYDERABAD: The Centre needs to take the responsibility of vaccinating all the people in the country as part of the measures to control the COVID-19 pandemic and it cannot shirk its responsibility, former Governor of RBI C Rangarajan said on Thursday.

    Speaking at the inaugural session of a virtual conference organised by ICFAI Foundation for Higher Education here, he said it involves a lot of expenditure, the Centre has to take up universal vaccination while states need to spend on other medical infrastructure such as improving hospitals, recruiting more medical staff.

    “Vaccination is important. It has to be universal. Therefore it is the responsibility of the government and I would say the central government to take on itself the expenditure which areto be incurred in terms of vaccinating the people,” theformer Chairman of the Prime Minister’s Economic Advisory Councilsaid.

    “I think the responsibility of the government is very clear or the government of India is very clear and it should not shirk this responsibility. I know this will involve a great deal of expenditure that has to be borne and that is the responsibility clearly of the government of India,” hesaid.

    Later, talking to, he said that since vaccination should be the Centre’s responsibility, the question of different pricing of vaccines for different sectors would not arise.

    Currently there are three levels pricing fixed by the COVID-19 vaccine makers-central, state government and private supplies.

    “I am saying the vaccination is the responsibility of the central government. The Central government should bear all the cost. Let them negotiate and let them get a price and distribute it,” he added.

    Rangarajan said in order to revive the slumped economy, the governments both centre and states need to increase their expenditure.

  • SC rejects banks’ pleas for recall of 2015 verdict asking RBI to disclose information about them under RTI

    By PTI
    NEW DELHI: In a major blow to banks, the Supreme Court on Wednesday refused to recall its 2015 judgment, which had held that the RBI will have to provide information about the banks and financial institutions (FIs) regulated by it under transparency law.

    Several FIs and banks, including the Canara Bank, the Bank of Baroda, the UCO Bank and the Kotak Mahindra Bank had filed applications in the top court seeking a recall of the 2015 judgment in the Jayantilal N Mistry case, saying the verdict had far-reaching consequences and moreover, they were directly and substantially affected by it.

    The banks had contended that the pleas for a recall of the judgment, instead of a review, is “maintainable” as there was a violation of the principles of natural justice in view of the fact that they were neither parties to the matter nor heard.

    “A close scrutiny of the applications for a recall makes it clear that in substance, the applicants are seeking a review of the judgment in Jayantilal N Mistry. Therefore, we are of the considered opinion that these applications are not maintainable,” a bench of justices L Nageswara Rao and Vineet Saran said.

    The order, written by Justice Rao, said in the instant case, the dispute relates to information to be provided by the Reserve Bank of India (RBI) under the Right to Information Act (RTI) and though the information pertained to banks, it was the decision of the RBI that was in challenge and decided by this court.

    “No effort was made by any of the applicants (banks) in the miscellaneous applications to get themselves impleaded when the transferred cases were being heard by this court. The applications styled as recall are essentially applications for review. The nomenclature given to an application is of absolutely no consequence, what is of importance is the substance of the application,” the top court said.

    While dismissing the pleas, the bench, however, made it clear that it was not dealing with any of the submissions made by the banks on the correctness of the 2015 judgment in the Jayantilal N Mistry case.

    “The dismissal of these applications shall not prevent the applicants (banks) to pursue other remedies available to them in law,” it said.

    Earlier, the apex court had heard several matters pertaining to the orders of the Central Information Commission asking the RBI to provide information about banks to RTI applicants.

    Several pleas were transferred to the top court at the request of the RBI and the judgment came to be pronounced in 2015.

    In the judgment, the apex court had refused to accept the RBI’s contention that the information sought under the RTI Act could not be disclosed in view of its fiduciary relationship with the banks.

    The court had observed that the RBI is not in any fiduciary relationship with the banks and that it has a statutory duty to uphold the interest of the public at large, the depositors, the country’s economy and the banking sector.

    The top court was of the opinion that the RBI has to act with transparency and not hide information that might embarrass the banks and that it is duty-bound to comply with the provisions of the RTI Act and disclose the information sought.

    Several banks sought a recall of the judgment by filing miscellaneous applications in the main petition filed by the State Bank of India (SBI) and the HDFC bank.

    The top court de-tagged the main pleas of the SBI and the HDFC bank and dismissed the miscellaneous applications of the banks.

  • Chhattisgarh government took loan of 36 thousand crores from RBI in two years

    Assembly session has started in Chhattisgarh. Debate has started from the beginning of the session. In this episode, Shivratan Sharma from BJP asked the Congress that from December 2018 to January 2021 how many loans of the state government were taken from which agency and when? Replying to this question, Chief Minister Bhupesh Baghel told the complete detail. He said- Chhattisgarh government has taken market loans through Reserve Bank of India, Rural Infrastructure Development Fund of NABARD, GST loan through Central Government and a total of 36,170 crore loan from Asian Development / World Bank during the last two years. BJP MLA Shivratan Sharma asked how much revenue expenditure and capital expenditure was incurred? On this, Bhupesh Baghel said that it is not possible to tell this. The government spends the amount according to need. Shivratan Sharma asked that what is the maximum limit for taking loans of the state government? Bhupesh Baghel said that loans up to 25 per cent of GSDP can be taken. The state government has just taken a loan of up to 20 per cent.

  • RBI asks Centre, state governments to reduce indirect taxes on petrol, diesel

    By Express News Service
    NEW DELHI: WITH fuel prices touching historic highs, the Reserve Bank of India has urged both the Centre and state governments to reduce indirect taxes on petrol and diesel. Taxes levied by the Centre and local governments make up for 60% of the retail cost of petrol while it is 54% in the case of diesel. 

    “Calibrated unwinding” of taxes is needed to reduce price pressures in the economy, RBI Governor Shaktikanta Das said in the Monetary Policy Committee meeting that concluded on February 6, its minutes released on Monday showed.

    “CPI inflation, excluding food and fuel remained elevated at 5.5% in December, due to inflationary impact of rising crude oil prices and high indirect tax rates on petrol and diesel, and pick-up in inflation of key goods and services, particularly in transport and health categories. Proactive supply side measures, particularly in enabling a calibrated unwinding of high indirect taxes on petrol and diesel are critical to contain further build-up of cost-pressures in the economy,” said Das. 

    In January, Goldman Sachs had estimated Brent crude oil price to reach $65 a barrel by the middle of 2021. As international crude prices increase, petrol-diesel prices will continue to rise if tax rates don’t change. Fuel prices directly affect household budgets as prices of essential items invariably go up in tandem with petrol / diesel prices. 

    Government’s cash cow

    The Centre collected Rs 2.36 lakh crore in excise duties on petrol and diesel in the first nine months of FY21. For the full year, it expects to collect Rs 3.61 lakh crore — Rs 94,000 crore more than the Budget Estimate of Rs 2.67 lakh crore.

  • Maharashtra Navnirman Sena urges RBI to set up panel to resolve transporters’ woes

    By PTI
    MUMBAI: Maharashtra Navnirman Sena (MNS) chief Raj Thackeray on Friday urged the Reserve Bank of India to set up a high-power committee to look into the woes of transporters reeling under financial burdens.

    In a letter to RBI governor Shaktikanta Das, Thackeray claimed that several banks were not following the Centre’s guidelines of observing leniency while recovering dues. “The RBI and Centre had issued guidelines to banks asking them to observe leniency in the recovery process in light of the COVID-19 pandemic. However, banks have not been honouring these guidelines,” the MNS chief stated in the letter.

    The RBI should set up a high-power committee to address the woes of the transport sector, he said, adding that the panel should also direct action against financiers who have violated the government’s directives. Thackeray further claimed that some financiers had issued notices for recovery and were charging Rs 2,000 per notice as fine.

  • RTGS facility becomes operational 24X7 from 12:30 am tonight: RBI Governor Shaktikanta Das

     RTGS (Real-Time Gross Settlement) facility becomes operational 24X7 from 12:30 am tonight, said RBI Governor Shaktikanta Das.

    This is a developing story.

  • RBI maintains status quo third time in a row; keeps benchmark lending rate unchanged at 4 pc

     RBI Governor Shaktikanta Das on Friday said that RBI will be maintaining accommodative monetary policy stance to support growth, keep inflation at targeted level. He also said that Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate unchanged at 4 per cent.

    Accommodative stance of monetary policy to continue as long as necessary, to revive growth and mitigate impact of COVID19, also ensuring inflation is in control

    Nascent signs of economic recovery in Q2 of current fiscal: RBI Governor Das Committed to preserve depositors’ interest in financial system, says RBI Governor Shaktikanta Das

    Monetary Policy Committee (MPC) was of the view that inflation is likely to remain elevated with some relief in the winter months from prices of perishables and bumper Kharif arrivals: RBI Governor Shaktikanta Das

    MPC decided to continue with accommodative stands of monetary policy as long as necessary, at least till current financial year & into next year to revive growth on a durable basis & mitigate the impact of COVID-19 while ensuring that inflation remains within target: RBI Governor

    Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate unchanged at 4 per cent: RBI Governor Shaktikanta Das

    The Marginal Standing Facility (MSF) rate and the bank rate remain unchanged at 4.25%. The reverse repo rate remains unchanged at 3.35%: RBI Governor Shaktikanta Das

  • Economic recovery more vigorous than expected, need to monitor demand stability: RBI

    Reserve Bank Governor Shaktikanta Das said on Thursday that the country’s economy has recovered more vigorously than expected after being affected by the initial outbreak of the corona virus epidemic, but the demand stability needs to be monitored after the festive season. .

    He said at the annual function of the Indian Foreign Exchange Regulations Association that there is a risk of decreasing growth in the whole world including India. Governor Das said that after the festive season, we need to keep an eye on the stability of the demand and market expectations regarding the Corona vaccine.

    Das said that RBI is committed to maintain the functioning of financial markets and work will be done to reduce any downside risk. Regarding capital account convertibility, he said that the approach would continue to see it as a process rather than an event.

  • RBI imposes fine of 5.78 crore on 6 entities including PNB, PhonePe

    The Reserve Bank of India has imposed a fine of Rs 5.78 crore on 6 companies including PNB, Sodexo and PhonePe for violation of regulatory guidelines. Under Section 30 of the Payment and Settlement Systems Act, 2007, the RBI has imposed a penalty on these units for not complying with the regulatory guidelines. Except Punjab National Bank, the remaining five are non-bank prepaid payment product issuing units.

    PPI is used for the purchase of goods and services, as well as for the payment of money to friends, relatives, etc. RBI has fined Sodexo SVC India Private Limited, Muthoot Vehicle and Asset Finance Limited, Quick Silvers Solutions Private Limited, PhonePay Private Limited, Delhi Metro Rail Corporation Limited and Punjab National Bank.

    Sodexo has been fined Rs 2 crore, while PNB and Quick Silver Solutions were fined Rs 1 crore each. At the same time, a penalty of Rs 1.39 crore has been imposed on PhonePe and Rs 34.55 lakh on Muthoot Vehicle and Asset Finance and Rs 5 lakh on Delhi Metro Rail Corporation.

  • RBI bans money withdrawal, this bank came to help

    After Lakshmi Vilas Bank, Reserve Bank of India has banned Manta Urban Cooperative Bank in Jalna district of Maharashtra. That is, now the customers of this bank will not be able to make cash payments and loan transactions. RBI has imposed this restriction for 6 months, that means that customers of this cooperative bank will no longer be able to withdraw money from accounts. Explain that the bank has been banned from accepting new deposits. He will not be able to make any payment nor compromise on any kind of payment.

    Regarding the Manta Urban Cooperative Bank, the RBI said in a release on Tuesday that it has given some instructions to this bank, which will be effective for six months from the bank’s closure on 17 November 2020. According to these instructions, this bank will not be able to give any loan or loan without RBI permission. With this, neither the old loan can be renewed and any investment can be made.