More of the problem is with public sector banks because they were into infrastructure investment.
The Reserve Bank of India kept its key repo lending rate unchanged at 6.75 percent on Tuesday
UBS has forecast 75 bps cuts (25 bps by end-FY16, 50 bps in FY17) versus no cuts expected by the Street over the same period.
The scheme, which was launched by Prime Minister Narendra Modi earlier this month, garnered only 400 grams of physical gold of the over 20,000 tonnes worth gold lying idle in the country.
Raghuram Rajan’s instrumental view isn’t as full a defence of tolerance as we need.
Rajan said protection should be given to the “right to question and challenge” and the “right to behave differently so long as it does not hurt others seriously”.
The external members of the panel, chaired by Rajan, included YH Malegam, Shankar Acharya, Arvind Virmani, Indira Rajaraman, Errol D’ Souza, Ashima Goyal and Chetan Ghate.
Rajan said India does not have many good economists who could represent the country in various international fora and working groups.
He also called for more coordination between leading central banks, saying there is a need for more optimal use of the monetary policy tools globally as the world is increasingly staring at deflation.
The RBI governor sounded a similar note of caution in Lima, Peru, a week ago on the sidelines of an IMF-World Bank meet.
“So yes, there is a potential problem of perhaps giving people too much more than they can handle which then leads to a debt cycle which can be problematic,” said Rajan.
“I think that this Supreme Court ruling today on Aadhar will be quite helpful in making it possible for us to use Aadhar in banking services,” said Rajan.
As of now, the country’s largest lender State Bank of India has the lowest base rate in the banking system at 9.30 per cent.
A cut in the lending rates by country’s largest lender, State Bank of India, has set the ball rolling for others. This bid to provide cheaper loans would lead to a competition, where it is the customer who would emerge as the real winner.
Reserve Bank Governor Raghuram Rajan today described Prime Minister Narendra Modi as being “ahead of us” but said his visits abroad need to be backed up with “action on the ground”.