Page 86 - Latest Updates on Reserve Bank of India
Govt must heed Urjit Patel's warning on NPAs, come up with policy response
The former RBI governor has served a warning on the intractable problem of bad loans
 "Govt must heed Urjit Patel's warning on NPAs, come up with policy response")
Asking banks to waive interest will adversely impact financial system: Govt
Solicitor General Tushar Mehta told the three-judge Bench that waiving interest or granting a blanket moratorium on repayment of loans will be a "knee jerk reaction"
 "Asking banks to waive interest will adversely impact financial system: Govt")
FM to meet heads of banks, NBFCs to review loan recast scheme on Thursday
The Reserve Bank of India (RBI) last month permitted one-time restructuring of both corporate and retail loans without getting classified as a non-performing asset (NPA)
 "FM to meet heads of banks, NBFCs to review loan recast scheme on Thursday")
Supreme Court to decide on moratorium interest waiver issue today
The apex court said it would hear the matter again and decide on Wednesday a bunch of petitions demanding waiver of interest, or waiver of interest on interest on the suspended monthly instalments
 "Supreme Court to decide on moratorium interest waiver issue today")
First economic contraction in 4 decades: India GDP shrinks 23.9% in Q1FY21
The two growth engines, consumer spending and investments contract massively as govt-led spending lifts GDP from falling further. On supply side, only agriculture shows growth, industry contracts 40%
 "First economic contraction in 4 decades: India GDP shrinks 23.9% in Q1FY21")
Monetary Policy Committee is just a cosmetic addition, not suited to India
Tackling inflation with monetary policy is like trying to move boulders with eyebrow tweezers
 "Monetary Policy Committee is just a cosmetic addition, not suited to India")
RBI steps in with measures to boost demand for bonds, cool down yields
Says it is comfortable with a rising rupee, which helps bring down import-led inflation, adds that it remains "committed to ensuring comfortable liquidity and financing conditions in the economy"
 "RBI steps in with measures to boost demand for bonds, cool down yields")
GST compensation row: FM's 'act of God' can be a nightmare for RBI
The government has invoked "act of God" for not paying its due to the states directly
Managing markets
Bond and currency markets would increase policy difficulties
 "Managing markets")
Credit growth: Barking up the wrong tree?
It is unfair to expect risk capital from banks to prop up the economy. They deal with public money
 "Credit growth: Barking up the wrong tree?")
Second blow for BoB as RBI rejects plan to send Anil Ambani firms to NCLT
An earlier Delhi HC order had stayed BoB and the entire consortium of lenders' move to classify these accounts as fraud, restraining them from taking any other coercive action till the next hearing
West Bengal rejects Centre's borrowing propositions to meet GST shortfall
Says will engage with other states to take collective steps
 "West Bengal rejects Centre's borrowing propositions to meet GST shortfall")
Future Enterprises board meet on September 7, to take up RIL deal today
Company's board to meet today on sale of retail arms to RIL
 "Future Enterprises board meet on September 7, to take up RIL deal today")
RBI's core income growth takes a hit as global interest rates decline
The central bank's core earnings or interest income from its rupee and forex assets were up just 2.3% year-on-year in FY20 despite 30% rise in its assets during the year
Forex reserves surge to $537.548 bn, gold reserves down at $37.26 bn
The country's reserve position with the IMF also increased by $6 million to $4.634 billion during the reporting week
 "Forex reserves surge to $537.548 bn, gold reserves down at $37.26 bn")
RBI refuses to budge on bond rates, rupee strengthens to 6-month high
Central bank seems to have briefly withdrawn from intervening in spot currency markets, even as it continued with its forwards markets intervention
Operating profits of manufacturing companies declined in Q4FY20: RBI
The operating profits of services companies (IT and non-IT) decelerated due to moderation in sales growth during the last quarter of 2019-20, it said
 "Operating profits of manufacturing companies declined in Q4FY20: RBI")
RBI may not extend moratorium on repayment of loans beyond Aug 31: Report
The six-month moratorium period comes to an end on August 31
 "RBI may not extend moratorium on repayment of loans beyond Aug 31: Report")
Stagflation risks grip bond markets, high yields are here to stay: Report
The initial trigger for the spurt in the bond yields was the MPC decision to hold the rates, citing the spike in the inflation print on August 6
 "Stagflation risks grip bond markets, high yields are here to stay: Report")
RBI launches surveys on consumer confidence, inflation expectations
The results of these surveys "provide useful inputs for monetary policy", the RBI said while announcing the launch of September 2020 round of CCS and IESH through two statements
 "RBI launches surveys on consumer confidence, inflation expectations")
