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.
The ministry is also looking to revise the criteria for companies falling under MSME.
‘If govt wants to manage own debt, no reason for RBI to stand in the way’.
All the previous RBI governors, including Rajan’s predecessor D Subbarao, had opposed the government’s proposal to take over debt management functions from the RBI.
Raghuram Rajan said shifting regulation of bond trading from RBI to have adverse impact.
Raghuram Rajan speaks after WPI inflation hits 5-month high, monsoon woes and Iraq crisis.
The Organiser also defended of Human Resource Development Minister Smriti Irani, who was targeted for not being qualified enough for the job.
In his first bi-monthly monetary policy review on Tuesday after the new government took charge at the Centre, RBI Governor Raghuram Rajan kept the repo rate, the benchmark rate at which RBI lends funds to banks, at 8 per cent.
If disinflation is faster than currently anticipated, it will provide headroom: Raghuram Rajan
BSE Sensex index rose 0.7 percent to a record closing high of 24,858.59.
The Reserve Bank of India was expected to leave the key interest rate unchanged…
The RBI last hiked the repo rate by 25 bps to 8 per cent on January 28, 2014, on account of upside risks to inflation.