R Lakshmi Kanth Rao apointed as RBI’s Executive Director
Rao has experience of over three decades in the Reserve Bank having worked in the areas of Regulation of Banks and NBFCs, Supervision of Banks and Consumer Protection.
Rao has experience of over three decades in the Reserve Bank having worked in the areas of Regulation of Banks and NBFCs, Supervision of Banks and Consumer Protection.
Lenders and infrastructure sector players are seeking relaxation in provisioning norms and a lengthening of the moratorium on repayments in response to the RBI's draft guidelines.
INDIA-MARKETS/INDIA RUPEE-Rupee ticks higher on inflows, importer dollar demand caps gain
RBI governor Shaktikanta Das on Wednesday convened a meeting of banks, leading third-party UPI apps, and NPCI. Banks said they have beefed up their systems to manage transactions, which have more than tripled after the pandemic.
The Reserve Bank of India (RBI) has proposed stringent new rules for project finance, aiming to minimize risks associated with long-gestation infrastructure projects. These regulations include higher provisioning during construction phases and classification of delayed projects as non-performing assets. However, banks and NBFCs fear these rules may hinder project viability and impede India's capital expenditure momentum.
The stakeholders shared their valuable inputs and suggestions, covering broadly the strategies for scaling up of UPI infrastructure and expanding products portfolio; Challenges being encountered by the ecosystem and innovative solutions for addressing the same; and Innovative ideas to integrate potential users into the digital payments ecosystem.
Highlights: World Bank India chief said that the signs are quite good for the future growth of India. He said if policies are put in place correctly, then the 8% growth for India is not far. He further believed that the least developed countries are the potential market for India going forward. At the moment, the World Bank’s growth projection for India is around 6.5%.
Highlights: IMF projected a growth rate of 7.8% for FY24. CEA says growth trajectory in first three quarters shows possibility of 8 %. He says would be happy if GDP were to have a 9.5-10% rate like that of China
RBI's draft guidelines propose increased provisioning for infrastructure projects under construction, potentially impacting India's capital expenditure momentum. Banks fear higher provisions could elevate interest rates, delay projects, and stress loans. This move could impede the Modi government's capex drive, which has invigorated private sector activity. Despite historical loan default trends, RBI's rationale for these stringent measures remains unclear
Chances are “quite high” that India’s growth exceeded 8% in the fiscal year that ended in March and the economy will likely expand more than 7% in the current financial year, he said. The rainfall pattern in the months ahead will be crucial for the growth outlook, he said.
INDIA-India sees no 'nasty' upside to inflation, govt adviser says