Skip to main content

New panel may set interest rate in next monetary policy

By
The government has initiated the process of constituting a monetary policy committee ( MPC), bringing into force the relevant amendments in the Reserve Bank of India ( RBI) Act from Monday, the finance ministry stated.
Rules governing the procedure for selection of members of and terms and conditions of their appointment and factors constituting failure to meet the inflation target under the MPC framework were notified, it said. However, at the time of going to print, the changes had not been notified on the Gazette of India website. Nor had the RBI Act on the central bank’s website been changed.
The MPC will decide the benchmark interest rates, which have so far been decided by the RBI governor.
After long disagreements on the MPC composition between the ministry and RBI, it had finally been agreed that it would have six members. The governor will head the panel. Three members, including the governor, will be from the RBI. They will be a deputy governor and an executive director.
The other three members will be nominated by the government after recommendations of a search- cum- selection committee, headed by the Cabinet secretary. The search panel will also comprise the economic affairs secretary and the RBI governor.
Each MPC member will have one vote, with the governor having an additional vote in case of a tie.
“Three members of MPC will be experts in the field of economics or banking or finance or monetary policy and will be appointed for a period of four years and shall not be eligible for re- appointment. The meetings shall be held at least four times ayear and it shall publicise its decisions after each such meeting,” went the statement.
Additionally, and as reported earlier, RBI will publish a monetary policy report every six months, with forecasts of inflation for between six and 18 months. If RBI fails to meet the inflation target, it will provide reasons, remedial actions and the estimated time within which the target will be achieved.
While the process for appointing the government’s nominees is still ongoing, some media outlets have named economists Chetan Ghate, Errol D’Souza and Ashima Goyal as probable candidates. Senior government sources dismissed these reports as speculation.
Business Standard New Delhi, 28th June 2016

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more