The aggregate loan — in the 31 cases — outstandings at March 31, 2018 were Rs 6,082 crore, which is about 1.1 per cent of gross loans.
The government appointed Jain as the Deputy Governor of the RBI for three years. Jain has come in place of SS Mundra who retired last year.
According to Michael Patra, Executive Director, RBI, the prolonged period of staying on hold is denting the credibility of the MPC’s commitment to maintaining inflation at the centre of the target band.
However, there is a condition that the overall cost of the dwelling unit in the metropolitan centre (with population of ten lakh and above) and at other centres should not exceed Rs 45 lakh and Rs 30 lakh, respectively, for being classified as priority sector.
In the first eight months of financial year 2017-18, receipts within small savings schemes amounted to Rs 40,429 crore, a seven-fold dip from Rs 2,75,682 crore in the corresponding period of the previous year.
The central bank is also planning to put out a reference document to be followed by account aggregator platforms, as there are some concerns around protection of customers and their data.
“The cost of doing business goes up because of the hike and it will impact capex (capital expenditure) by the industry,” CII president and vice-chairman of Bharti Enterprises Rakesh Bharti Mittal said.
While the RBI hasn’t yet indicated any relaxation of its circular, the finance ministry, sources said, will soon write to it and other stakeholders, including power producers, convening a meeting to find a resolution.
The RBI data shows that the credit demand for services sector jumped 20.7 per cent in April and the demand for personal loans rose 19.1 per cent.
According to a Bank of America Merrill Lynch (BofAML) report, the FPI inflows to India will be impacted by Chinese firms listing in global benchmark indices like MSCI.
Reddy, who was the RBI governor from 2003 to 2008, said, “taxpayers who have entrusted their money to the Government owned banks should be asking the government to explain why as the custodian of their money it failed to prevent the fraud.”
Despite repeated requests by the Ministry to relax the default norms, the central bank refused to budge. The rate hike has now ruffled feathers in the government.
Rising inflation expectations was a key reason why the Reserve Bank of India raised interest rates for the first time in four years, earlier this week.
The government has earmarked Rs 15,000 crore for 2018-19 towards interest subvention for short-term crop loans.
The RBI has mandated all its regulated entity to submit credit information individually to all four CICs. CICs offer, based on this unique access to the credit data, value added services like credit scoring and analytics to the member credit institutions and to the borrowers.