The weighted average cost had come down to 1.2 per cent over LIBOR in FY19, but has started increasing subsequently and was at 1.81 per cent in FY22. This is expected to increase further in the coming months with global central banks planning to hike the rates.
Total outward remittances under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS), shot up to an all-time high of $19.610 billion in the year ended March 2022 as against $12.684 billion in March 2021, as per latest RBI data.
The regulator said FRBs and Lloyd’s India are now exempted from disclosing financial details and underwriting performance through NL40 format. However, according to experts, the latest measures will lead to opaqueness in the functioning of reinsurance branches in India.
RBI’s gold acquisition happened at a time when foreign portfolio investors (FPIs) were exiting India and forex reserves declined by $44.73 billion from $642.45 billion in September 2021 to $597.72 billion on April 29, 2022, as per Reserve Bank data.
Compensation towards Covid death claims were reported under individual, group policies and the PM Jeevan Jyoti Bima Yojana (PMJJBY). Back-of-the-envelope calculations indicate that the average claim per person was Rs 7,63,965.
Some analysts have been warning that the RBI has fallen behind the curve in tackling inflation. There were clear indications too. The yield on the 10-year benchmark bond has already crossed the 7 per cent level.
In a surprise move, the RBI Wednesday announced a 40 basis point hike in the repo rate. To what extent specifically can your EMIs get impacted? What should existing home loan customers do? What about investments?
Depending on the level of distress, the government and the financial institutions can decide on an appropriate package of support instead of the current practice of doling out distress package to all the farmers across the board.
Some leading banks were not in favour of the proposal stating there’s ambiguity on debt recovery. “If top banks are opposing the sale to RIL, the deal is likely to fall through. The next option is to take the IBC route,” said a banking source.