During the financial year 2017-18, the number of ATMs in the state has declined marginally from a year ago, as the total number of ATMs in the country has also declined slightly to 2,22,066 from 2,22,318 in the same period.
Rate increase by RBI highlights conflict between its role as banking regulator and government’s debt manager
RBI’s first interest rate rise since Prime Minister Narendra Modi came to power could not have come at a worse time for a government grappling with spending constraints, voter discontent in the rural heartlands and rising oil prices.
Late last week, State Bank of India (SBI), ICICI Bank, Punjab National Bank (PNB) Housing Development Finance Corp (HDFC), Kotak Mahindra Bank and Union Bank of India had raised MCLRs amid a situation of tight liquidity in the system.
The US Federal Reserve hiked interest rates by 25 basis points in March, leading to capital outflow from emerging economies, as investors look to chase better returns in America. To arrest this outflow, central banks across the world hiked their interest rates.
The scheme is expected to give a boost for loans granted for the purchase of affordable housing.
The RBI may also have taken into account the fact that many other central banks in emerging markets too have raised rates in the face of rising inflation and weakening of their currencies with rising interest rates in the US and elsewhere, a strong US dollar and outflows.
RBI raises rates in response to domestic inflation risks, global market movements. Government must heed the warning
According to a report, the farm debt waivers announced by the five large states together will widen the fiscal deficit of the states by Rs 1,07,700 crore or 0.65 per cent of GDP in the current financial year.
The apex bank on Wednesday observed that the level bad loans for the ticket size of up to Rs 2 lakh has been high and is rising briskly, and it might tighten norms by increasing loan to value ratio and risk weight.
The Reserve Bank of India further said that impact of the revision in the MSP formula for kharif crops is not possible to assess at this stage in the absence of adequate details.
The benchmark six-month forward premium payable in October eased to 111-113 paise from 112-114 paise and the far-forward April 2019 contract softened to 250-252 paise from 251-253 paise previously.
The benchmark six-month forward premium payable in October and the far-forward April 2019 contract both ended virtually unchanged at 112-114 paise and 251-253 paise, respectively.
The RBI’s Monetary Policy Committee began its three-day meeting on Monday amid speculation that it may hike the key interest rate on June 6 for the first time in about four-and-half years on account of firming inflation.
RBI mainly factors in retail inflation, based on the Consumer Price Index (CPI), while deciding the key interest rate.