12
Wednesday
December 2018
5:50 AM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Business News
Centre's New Move May Escalate Feud With RBI Ahead Of Board Meet: Report
 
The centre has proposed changing rules that will enable closer supervision of the Reserve Bank of India, people with knowledge of the matter said, a move that may undermine investor confidence in the world's fastest-growing major economy.
Prime Minister Narendra Modi's administration has recommended that the RBI board draft regulations to enable setting up panels to oversee functions including financial stability, monetary-policy transmission and foreign-exchange management, the people said, asking not to be identified as the discussions are private.

The move is meant to empower the regulator's board, which includes government nominees, and give it a supervisory role, the people said. The central bank's board is scheduled to meet on Monday. The tension mirrors central bank fights playing out in countries as varied as the U.S. and Turkey, and is a symptom of what happens when an era of easy credit ends.

The latest proposal may heighten tensions between the finance ministry and the central bank, which have been at logger heads over a host of issues that will be discussed at Monday's meeting including transfer of surplus funds, easing of bad loan norms, and ensuring liquidity to the shadow-banking sector. While the government says the central bank isn't providing support to boost growth, the RBI says fund transfers could undermine its independence and hurt the markets.

"This does look scary and comes at a slightly anxious environment for investors," Hugo Erken, senior economist at Rabobank International in Utrecht, the Netherlands. "This does not bode well in the short term for confidence and the Indian rupee."

One-month offshore non-deliverable rupee forwards fell 0.2 percent, snapping a three-day gain, to 72.32 per dollar as of 7:03 p.m. in Mumbai, according to data compiled by Bloomberg. The rupee will start trading in the spot market on Monday.

Finance Ministry spokesman D.S. Malik didn't reply to two calls made to his mobile phone, while the central bank spokesman was not immediately available for a comment.


(Mumbai, Nov17, 2018):The recommendations being considered include setting up several committees comprising two to three board members each. The body has the powers to frame rules under section 58 of the Reserve Bank of India Act, 1934, and no legislative change is required, the people said.

RBI's board regularly advises and guides the regulator, leaving decision making to the governor and his colleagues.

However lately, Swaminathan Gurumurthy, a chartered accountant who was nominated by PM Modi's administration to the board, and government nominees Subhash Chandra Garg and Rajiv Kumar have been vocal about perceived shortcomings in banking supervision, flow of credit to industry and easier financial conditions to overcome a crisis in its shadow-banking sector.

That prompted central bank Deputy Governor Viral Acharya to warn in a speech last month that a move to undermine the RBI's independence will attract the wrath of the markets.

2 COMMENTS
The government last month upped the ante by writing to the central bank to discuss issues where there had been disagreements, citing a rule that has never been used in the central bank's 83 year-old history. Under Section 7 of the RBI Act, the government has the power to issue directions that are binding on the central bank


Sensex cracks over 550 pts; Nifty drops below 10,600
India's coal output up 10% to 156 MT during Apr-Nov
Prabhu links creativity & business opportunities to cheap beverages in Goa
31st GST Council to meet on Dec 22 in Delhi
Cabinet Approves Policy to Double Farm Exports to $60 Billion by 2022
RBI keeps key rates unchanged
NTPC wins 85 MW solar capacity in UP Govt tender
Maintain status on currency management, HC tells SBI
Amway India enters herbal skincare space
New 2018 Maruti Suzuki Ertiga Launched In India, Prices Start At ? 7.44 lakh
Air India eyes Rs 800 cr from sale of over 70 properties
Intel India opens design house costing Rs 1,100 cr at B'luru
Sensex rebounds 332 pts on easing crude, rupee gains
Govt mulls second round of 2,500 MW medium-term PPA auction
India invites Swedish companies to explore investment opportunities
Govt cancels ED officer Rajeshwar Singh's leave
Facebook blocks 115 accounts ahead of US midterm elections
Indian norms on PCA, capital are conservative, rule-based: SBI
SBI back in black on credit growth
TN transport employees threaten to go on strike
KERALA NEWS
Activist Rehana Fathima, Who Attempted Sabarimala Trek, Arrested Over Facebook Post
 (Kochi, Nov 28, 2018): Model and activist Rehana Fathima, who tried to reach Kerala's Sabarim  
Good news for Keralite Nurses: IELTS cut-off reduced to 6.5
BJP leader K Surendran, 71 others granted bail
Sabarimala protests: Arrests up to 2061, Kerala HC warns police
INTERNATIONAL NEWS
Trump's potential next chief of staff pick leaving White House
 Washington, Dec 10 (AFP) The White House official widely touted as Donald Trump's favourite to succe
UK PM faces fight for her political life in Brexit deal
Iran arrests 10 over suicide attack on police
Trump chooses new Joint Chiefs of Staff chairman, against Mattis wishes
NATIONAL NEWS
BJP mocks Oppn meet, asks them to reveal PM candidate's name
 Kolkata, Dec 10 (PTI) BJP national general secretary Kailash Vijayvargiya has mocked the scheduled m
RBI Governor Urjit Patel makes loud noise with silent exit
Can special consideration be shown to man with skin disorder: HC asks Centre
BJP files caveat in SC over 'rath yatra' in WB
Untitled Page
Rashtra Deepika LTD
Copyright @ 2018 , Rashtra Deepika Ltd.