Historical Indian Repo / Reverse Repo Rates vs Inflation Vs CRR
We’d like to share with you a chart that shows the Key Interest Rates in India – Repo Rate, Reverse Repo Rate, CRR and Inflation indicators WPI and CPI.
What is Repo Rate – The RBI’s lending rate or liquidity injection rate is the only ‘independently varying’ policy rate.
What is Reverse Repo Rate ? This is the liquidity absorption rate and is pegged at 100bps below the repo rate to
help improve monetary transmission.
CRR – Cash reserve Ratio – Proportion of deposits required to be held in cash by banks with the RBI.
The Following Chart Shows Read more
Fraudulent ATM withdrawals while ATM Cards Safely With Owners – Unsolved
The RBI Ombudsman Manual of 2010-11 discusses an interesting case of Fraudulent ATM withdrawals while ATM Cards are Safely in the Hands of Owners and they have not disclosed any PIN. This is for not just one or two customers but around 100 customers siphoned this way.
A series of complaints were received against a few banks alleging unauthorized debits in complainants’ accounts as a result of fraudulent withdrawals through ATMs. Considering the volume, value, timing Read more
Why SBI profits Fell by 99% ?
India’s Largest Bank, the State Bank of India reported Q4FY11 PAT of Rs 209mn, 99% below consensus, primarily on lower NII, higher costs and provisions.
SBI has hiked lending rates by 100 bps (50 bps higher than other banks a catch-up rather than a proactive measure) in 1QFY2012 to offset some of the pressure in margins witnessed. The bank has now fully provided for pension liability of Rs117bn on account of wage hike Rs79 bn through reserves and Rs24.7 bn through profit and loss account during the Read more
RBI for Regime of Free Savings Bank Interest Rate
India’s central bank RBI argues for interest rate deregulation on savings account deposits which currently carries interest rates of 3.5% and has not been changed since March 1, 2003. According to the discussion paper,
it is necessary that all rates move in tandem with the policy rates and the regulated savings rate has adversely affected the transmission of monetary policy. The RBI has not provided any time frame for the deregulation. Given the discussion Read more
RBI Concerned on Current + Fiscal Deficit
In the Monetary Policy Review, the RBI clearly stated it is concerned about the Twin Deficit-s Current Account as well as Fiscal. The RBI expected the overall current account deficit for 2010-2011 to be about 3.5% of GDP. It noted ‘A CAD of this magnitude is not sustainable.’ The RBI was also concerned about the financing of the current account deficit since the faster-than-expected global recovery may enhance the attractiveness of investment opportunities in Read more
Mobile money – Game Changer – Financial Inclusion
Mobile banking was a solution that fit developing world needs like a glove. Most developing countries have suffered from low penetration of banking and electronic cash. The model is being led by various types of entities: banks, mobile companies and third-party aggregators. In India, the push for mobile banking is coming from the banking regulator committed to financial inclusion.
The biggest GameChanger for mobile banking will be its ability to converge the twin objectives Read more
List of Private Sector Banks in India
We have obtained the list of all Private Sector Banks in India.
There are 25 private sector banks in India which are categorized by the RBI as Old Private Sector Banks and New Private Sector Banks. The 18 Old Private Sector Banks are as follows,
- Bank of Rajasthan [ Merger with ICICI going on]
- Bharat Overseas Bank
- Catholic Syrian Bank
- City Union Bank
- Dhanlaxmi Bank
- Federal Bank
List of All Nationalized Banks in India
Nationalized Banks also known as Public Sector Banks Or PSU Banks are the Banks where Government of India has direct control in ownership and management. Advantage of banking with these financial institutions is that they don’t have hidden charges like most Private Sector and Foreign Banks do.
India has 26 Nationalized Banks and Here is the list of these Banks where you can conduct your business, Read more
RBI raises repo and reverse repo rates by 25 and 50 bps
Finally, the RBI Governor mustered some courage to hike the much needed Repo and Reverse Repo rates by 25bps and 50 bps during its monetary policy review meeting today. With this, the repo rate will stand at 5.75% and reverse repo rate will go up to 4.5%. Meanwhile, CRR has been kept unchanged at the current level of 6.0%. Story Updating..
RBI embarked on gradual exit from an overtly accommodative monetary stance, while ensuring that the nascent recovery is not
derailed. Thereafter, as recovery gathered momentum and so did inflation, RBI’s stance was one of balancing the objectives of Read more
RBI Monetary Policy Expectations
With Inflation showing no signs of abatement and corporate profits on the upswing, it is high time that RBI act as an independent regulator in the interest of Indian consumer and not South Block.
In the forthcoming announcement of monetary and credit policy on July 27, markets expect 25bps hike in both repo and reverse repo rates and no change in CRR. This expectation is based on the view that as the economy inches towards normalcy, policy rates also need to firm up to their long-term ‘steady-state’ level. Any more aggressive tightening is unwarranted at this juncture in analysts Read more