RBI has given a timeline starting April 2020, when the requirement shall be a minimum of 60 per cent of the LCR, going up to 100 per cent by April 2024.
The giant bank consolidation exercise announced in 2015 needs to quicken its pulse, while privatisation (reducing government’s stake under 52 per cent in state-run banks) remains a dead duck.
The Finance ministry, meanwhile, feels that this money could be raised from a combination of long term infrastructure bonds, as well as money raised through insurance and pension funds.
Many NBFCs, including DHFL and Indiabulls Finance, came under severe liquidity pressure compelling them to bring down their reliance on commercial papers.
Contrary to popular perception, interest rates alone don’t move the needle towards high bank deposits.
The six-member committee is set to submit its recommendations on the issue very soon.
Amidst the IL&Fs crisis, the central bank also discussed the medium-term strategy document, covering, inter-alia, the mission statement and the vision statement.
Led by former RBI Governor Bimal Jalan, the panel was tasked to determine the extent of profits to be apportioned to RBI reserves, besides looking at existing surplus, if any.
However, thefeared slowdown may be transitory if high real interest rates are addressed.
RBI had cut the key short term lending rate (repo) by 25 points each in its last two policy reviews and is slated to announce the next bi-monthly policy on June 6.
The concerns on the economy are in the areas of employment generation, boosting rural demand, consumption, as well as investment.
First batch of 300 boxes of mangoes, each weighing four kg and priced at Rs 400, sold out in just a few hours
Intaglio printing based identification marks for helping the visually challenged in the identification of denomination of banknotes are present in notes of Rs 100 and above.
It further said that RBI should ask banks not to insist for discounting of usance export bills.
The 15th Finance Commission headed by Chairman Singh held a detailed meeting with the Governor and Deputy Governors of RBI.