The level of bad loans at Indian banks is a “concern” but is not “scary”, says Raghuram Rajan.
There has been apprehension among RBI staff and employees’ unions over restructuring which has prompted Rajan to hold a second meeting.
Rajan, specifically cited policy changes like the quantitative easing by the US.
Rajan was referring to the recent developments involving the arrest of Syndicate Bank chairman.
According to Rajan, one of the greatest dangers to the growth of developing countries is the middle-income trap.
The agreement puts behind a frosty relationship that had emerged between the RBI and the Finance Ministry.
RBI governor’s people skills may be tested when FM Arun Jaitley attends Sunday’s RBI board meet.
Nayak Committee had also recommended several steps like bringing down the government stake.
Andhra Pradesh Chief Minister N Chandrababu Naidu has proposed a waiver of farm loans.
Repo rate unchanged at 8%; SLR cut by 0.50% to 22%; retail inflation target fixed at 8% by Jan.
RBI Cuts SLR for banks by 50 bps to 22.0 pct from Aug. 9
The funds mobilised by the banks will be invested only in government securities.
Asks states to pay banks in cash; waivers may turn non-starter
RBI governor must realise that financial regulation reforms proposed by FSLRC are necessary.
The concept of deemed approval, if timelines are not met, should also be adopted.