Interestingly, the only governments that did not appoint a civil servant as the RBI governor were those led by Morarji Desai, Indira Gandhi in her second stint, and P V Narasimha Rao.
Currently serving as revenue secretary, Malhotra, a 1990 batch IAS officer of Rajasthan cadre, will take over following 10 December retirement of incumbent governor Shaktikanta Das.
India's microfinance sector has been facing challenges like over-borrowing & regional stress. Spandana Sphoorty, a 20-yr-old micro-credit company, reported a Rs 216 cr loss in Q2 FY25.
Central banks can intervene in forex market to influence exchange rate. Analysis by ThePrint shows RBI has been doing this for months, but last week saw rupee fall sharply nevertheless.
Unsecured loans have been a concern for RBI for a while now. Last year, it took steps to make it more expensive for banks, NBFCs to give them out in bid to deter such borrowing.
Change in stance signals possibility of rate cuts, potentially as early as December, depending on inflation trends & global economy. Growth projection for FY 2024-25 retained at 7.2%.
Israel-Iran conflict, along with outlook on inflation & growth in an uncertain global environment will be key areas of concerns for new members of the reconstituted committee.
US & Indian policy rates have seen similar trajectory. With Fed’s rate cuts, difference between interest rates in India & US may widen, leading to foreign capital inflow & stronger Rupee.
For India, the strategic ripples are significant. The immediate concern is Pakistan’s diplomatic gain as it embeds itself deeper into the defence framework of the Middle East.
SEBI probe concluded that purported loans and fund transfers were paid back in full and did not amount to deceptive market practices or unreported related party transactions.
This is the first major attack on central security forces since last November, when a CRPF jawan was killed and four were injured in an ambush in Jiribam on Manipur-Assam border.
Many really smart people now share the position that playing cricket with Pakistan is politically, strategically and morally wrong. It is just a poor appreciation of competitive sport.
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