The monetary policy of RBI has failed to walk its talk

Synopsis: A disconnect between the commentary and policy action of RBI’s repo rate-setting panel could cost us dear in time to come. Introduction According to RBI Governor, the Indian Economy is recovering from the impact of Covid. But still, there is a need to work on inflation, so that it will remain within the targets defined.… Continue reading The monetary policy of RBI has failed to walk its talk

Let central banks stay focused on their goals

Synopsis: Urjit Patel has suggested adding climate aims to the monetary agenda, however it has multiple risks associated to it. Hence, other tools should be used for our carbon crisis. Introduction Recently, former Reserve Bank of India (RBI) governor Urjit Patel laid out a strong argument in favour of the proposition of adding climate goals… Continue reading Let central banks stay focused on their goals

RBI permits card-tokenization services in a bid to make card transactions more safe

Source: This post is based on the article “RBI permits card tokenization services” published in AIR on 26th August, 2021. What is the News? The Reserve Bank of India has permitted authorised card networks to offer card tokenization services to any token requestor in a bid to make card transactions more safe, secure and convenient… Continue reading RBI permits card-tokenization services in a bid to make card transactions more safe

No taper tantrum (On US Fed reserve policies)

Source: Business Standard What is the news? The US Fed Reserve is considering reducing the pace of its asset purchase. As per Fed’s Chairman, the economy had evolved as expected, and it could be appropriate to start reducing asset purchase this year. But, it’s not clear at this stage as to when the Fed will… Continue reading No taper tantrum (On US Fed reserve policies)

E-tailers can’t store your card data, says RBI

Source: TOI What is the News? Reserve Bank of India is all set to implement its revised set of guidelines on the card data storage policy from January 2022. RBI’s Guidelines on Card Data Storage Policy: As per the guidelines, Payment Aggregators(PAs), Payment Gateways and online merchants shall not store card credentials of customers in… Continue reading E-tailers can’t store your card data, says RBI

Spreading disinflation over 2-3 years to reduce output loss, says RBI

Source: Business Standard Relevance: Addressing various issues ailing the financial sector of the Indian economy. Synopsis: RBI Governor Shaktikanta Das, other deputy governors took questions from the media and addressed the raging topics in the financial sector. Here is what he had to say regarding RBI’s view on various issues. On inflation Between 2016 and… Continue reading Spreading disinflation over 2-3 years to reduce output loss, says RBI

Private partners could help RBI run a digital currency

Source: Livemint Relevance: Issues in the implementation of a retail CBDC Synopsis: A two-tiered model for retail issuance of CBDC should be implemented by India. Issues involved and the way forward. Background Recently, a deputy governor of the Reserve Bank of India (RBI) announced that RBI is working on a “phased implementation strategy” for the… Continue reading Private partners could help RBI run a digital currency

‘GNPA ratio may rise up to 11.2% in FY22’

Sources: The Hindu, The Business Standard (Article 1, Article 2) Syllabus: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Relevance: The problem of NPA is still impacting the Indian economy and the recent Financial Stability Report also highlights it. About the news: The Reserve Bank of India (RBI) recently… Continue reading ‘GNPA ratio may rise up to 11.2% in FY22’

Kamath committee picks 26 sectors for loan restructuring, says RBI

News: Reserve Bank of India has released the K V Kamath-led Committee report and has broadly accepted its recommendations. Facts: Background: RBI had formed a five-member committee under the chairmanship of KV Kamath to make recommendations on the financial parameters and the sectors to be considered for the one-time restructuring of loans impacted by the… Continue reading Kamath committee picks 26 sectors for loan restructuring, says RBI