In its financial stability report, RBI said concerns have intensified around a level playing field with banks, too-big-to-fail issues, challenges for antitrust rules among others.
Monetary Policy Committee believes the current gains in price growth — fanned by fuel tax hike, higher commodity prices — don’t warrant withdrawal of measures put in place to support recovery.
In September 2019, RBI had placed PMC under regulatory restrictions, including cap on withdrawals by its customers, after detection of certain financial irregularities.
Mohan's remarks come days before RBI releases its Financial Stability Report, which will give investors a clearer picture on how banking sector is dealing with an economic downturn.
The May inflation figure may be somewhat inaccurate, with the rise appearing to be mainly due to higher global crude oil prices, commodity prices, and supply-side disruptions.
Forex reserves surged to $605 billion in the week to 4 June as the RBI mopped up dollars flowing into the nation’s booming stock market as well as via foreign direct investments.
RBI isn’t thinking about normalisation at the moment, and its rate-setting committee has kept rates unchanged at a record low for more than a year to support growth.
India's projects related to BIMSTEC, Look-East-Act-East and Indian Ocean Rim Association could suffer a setback, impacting trade with South Asia and the South-South Cooperation agenda.
While global corporations setting up GCCs in India continue to express confidence in availability of skilled AI engineers, the panel argued that India’s real challenge lies elsewhere.
Without a Congress revival, there can be no challenge to the BJP pan-nationally. Modi’s party is growing, and almost entirely at the cost of the Congress.
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