India sees no 'nasty' upside to inflation, govt adviser says
INDIA-India sees no 'nasty' upside to inflation, govt adviser says
INDIA-India sees no 'nasty' upside to inflation, govt adviser says
Lenders may oppose the draft rules, which proposes provisioning of up to 5% from current 0.4%, due to concerns over rising interest rates and potential disruption to capital expenditure. Banks plan to lobby against the steep increase, arguing it could affect project viability and economic momentum. State-owned NBFCs and infrastructure firms are also raising concerns, emphasizing the need to balance risk and support for infrastructure financing.
To address liquidity challenges, the RBI has intensified short-term liquidity infusions, injecting a total of Rs 1.7 lakh crore through variable rate repo auctions since mid-April.
By the end of March, India's gold reserves stood at 822.1 tonnes, comprising 9% of its total reserves and ranking it as the 10th-largest holder of official gold globally.
INDIA-MARKETS-Rupee flat as traders remain wary of central bank intervention at weaker levels
Voting in India's national elections began on April 19 and will conclude on June 1, with counting on June 4. Typically, government spending slows during polls and picks up only after a new government is in place and a budget is presented.
"Going forward, the advantages of CBDCs will be more visible when we enable offline use and programmability features."
The proposed stricter lending criteria, with additional provisioning, are aimed at preventing accounting shocks but could potentially hurt balance sheets of these entities and exert pressure on their valuation multiples, analysts and economists said.
According to analysts, the proposed guidelines are a preemptive measure by the RBI to prevent large defaults on infrastructure loans, especially considering recent increases in infrastructure spending.
While speaking at the BIS Innovation Summit 2024, at Basel, Switzerland, Governor Das said that the e-Rupee has transformative potential & sees considerable scope for the digitisation of payments. He highlighted that the private digital currencies are potentially dangerous, and the CBDC is a safer alternative.
INDIA-MARKETS/BONDS (UPDATE 1, PIX)UPDATE 1-India's 6-week long national election leaves cenbank with liquidity dilemma