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India's GDP growth is projected at 7.2 per cent in 2024-25, around 7 per cent in the next fiscal, and after that, there is a strong likelihood that the growth will revert to the 8 per cent trend, said <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> deputy governor <keyword id="20244361" type="General" weightage="20" keywordseo="Michael-Debabrata-Patra" source="keywords">Michael Debabrata Patra</keyword>. He was speaking at the New York Fed Central Banking Seminar organised by the <keyword id="20238413" type="General" weightage="20" keywordseo="Federal-Reserve-Bank" source="keywords" meta.keywordsubtype="org" meta.entityname="Federal Reserve Bank" meta.hostid="261" meta.entityid="Federal Reserve Bank">Federal Reserve Bank</keyword> here on Monday. "...I do believe with all the strength of my conviction that India's time has come," he said, and highlighted the country heads into its future with the youngest population in the world with a median age of 28 years. Unlike in many parts of the world, the working age population is growing -- every sixth working age person is an Indian. Patra said that since independence in 1947, India's growth path has undergone three structural shifts with trend growth, having risen to 7 per cent during 2002-2019. After the severe contraction during the pandemic, a new growth trajectory averaging 8 per cent seems to be forming during 2021-24, he said. India is now regarded as the fastest growing major economy in the world. Already the fifth largest economy in terms of market exchange rates, it is poised to become the third largest economy by 2030, the senior RBI official said and added the country is already the third largest economy in terms of <keyword id="20776921" type="General" weightage="20" keywordseo="purchasing-power-parity" source="keywords">purchasing power parity</keyword>. "Our projections show that India's <keyword id="21013593" type="General" weightage="20" keywordseo="real-GDP-growth" source="keywords">real GDP growth</keyword> will be 7.2 per cent in 2024-25 and around 7.0 per cent in 2025-26 in a cyclical correction to the rebound from the pandemic. Thereafter, there is a strong likelihood that India's growth will revert to the 8 per cent trend," Patra said. On inflation, he said it is projected to average 4.5 per cent in 2024-25 and 4.1 per cent in 2025-26. Consumer Price Index (CPI) based inflation fell below target during July-August but rose to 5.5 per cent in September on the back of a pickup in price momentum in some food items and adverse base effects inherent in year-on-year measurement. "Our projection indicates that these price pressures will persist in October and November before headline inflation realigns with the target from December 2024 and remains aligned in 2025-26," the deputy governor said. He also emphasised that India is emerging as a world leader in leveraging <keyword id="20181895" type="General" weightage="20" keywordseo="digital-technologies" source="keywords">digital technologies</keyword> for transformative change.

India likely to grow at 7.2% in FY25, says RBI deputy governor

The <keyword id="20018890" type="General" weightage="20" keywordseo="digital-infrastructure" source="keywords">digital infrastructure</keyword> has made the <keyword id="20572901" type="General" weightage="20" keywordseo="loan-sanctioning" source="keywords">loan sanctioning</keyword> system adopt an online mode, but the <keyword id="21614839" type="General" weightage="20" keywordseo="loan-recovery" source="keywords">loan recovery</keyword> still requires a 'feet on the street' approach, says <keyword id="20506781" type="General" weightage="20" keywordseo="swaminathan-j" source="keywords">Swaminathan J</keyword>, Deputy Governor of Reserve Bank of India (RBI). Speaking at a media event in Mumbai, the deputy Governor of RBI noted that with the digital infrastructure at place, many <keyword id="22721545" type="General" weightage="20" keywordseo="fintech-players" source="keywords">fintech players</keyword> are giving loans to customers with poor credit profiles, and up on default, use aggressive recovery tactics. "While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending <keyword id="22791879" type="General" weightage="20" keywordseo="small-value-loans" source="keywords">small-value loans</keyword> to customers who often have a poor credit profiles" said the deputy governor. He emphasized that the business model of many fintech platforms involves offering small-value loans to customers who often have poor credit profiles. This has led to the adoption of aggressive recovery strategies, which on many occasions also crosses ethical boundaries. He also highlighted one particularly concerning practice that involves the invasion of customers' privacy, where recovery agents access the personal data and contacts of borrowers and use that as a threat practice. Swaminathan cautioned that such tactics not only infringe on individuals right to privacy, but also risk damaging the reputation of regulated lenders associated with these fintech platforms. He also highlighted RBI's regulations on outsourcing, that even though regulated financial entities delegate certain activities to third parties, they remain ultimately accountable for the actions of their outsourced agents. The deputy governor also noted that the digitisation allows banks and NBFCs to leverage data for greater insights into their customers' requirements and behaviour, which can be used for developing bespoke products apart from facilitating better risk management and compliance. He stated that the role of RBI as a regulator is to establish guardrails or a balanced framework that encourages innovation while ensuring that risks are managed prudently. The deputy governor also indicated the primary goal of RBI is to ensure the stability and integrity of the financial system and not to hinder business operations.

Loan sanctioning has gone digital, but recovery still needs a 'feet on the street' approach, says RBI Deputy Governor

<keyword id="19922074" type="General" weightage="20" keywordseo="Reserve-Bank" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank" meta.hostid="261" meta.entityid="Reserve Bank">Reserve Bank</keyword> Deputy Governor <keyword id="19918795" type="General" weightage="20" keywordseo="Swaminathan" source="keywords">Swaminathan</keyword> J on Wednesday said implementation of <keyword id="22784242" type="General" weightage="100" keywordseo="risk-based-premium" source="keywords">risk-based premium</keyword> for <keyword id="20132734" type="General" weightage="20" keywordseo="deposit-insurance" source="keywords">deposit insurance</keyword> merits consideration as it will ensure that institutions with higher risk profiles contribute more to the insurance fund. Speaking at a conference in Jaipur, he also said that as the financial sector becomes more digitised, deposit insurers must work closely with regulators and supervisors to strengthen oversight mechanisms. This includes regularly updating <keyword id="19946068" type="General" weightage="20" keywordseo="regulatory-frameworks" source="keywords">regulatory frameworks</keyword> to incorporate emerging risks associated with <keyword id="19989657" type="General" weightage="20" keywordseo="digital-payments" source="keywords">digital payments</keyword>, <keyword id="19906883" type="General" weightage="20" keywordseo="cybersecurity" source="keywords">cybersecurity</keyword>, and <keyword id="22180855" type="General" weightage="20" keywordseo="fintech-innovations" source="keywords">fintech innovations</keyword>. By adopting a proactive stance, deposit insurers can help ensure that <keyword id="19912054" type="General" weightage="20" keywordseo="financial-institutions" source="keywords">financial institutions</keyword> under their purview are adequately prepared to manage these risks, thereby safeguarding depositor confidence. Swaminathan was addressing the International Conference of the International Association of Deposit Insurers- Asia Pacific Regional Committee (IADI-APRC) hosted by the Deposit Insurance Credit Guarantee Corporation (DICGC). He further said the implementation of risk-based premium for deposit insurance "merits consideration". "By tying insurance premiums to the level of risk posed by individual financial institutions, deposit insurers can incentivize banks to adopt stronger risk management practices. "This approach not only enhances the overall stability of the financial system but also ensures that institutions with higher risk profiles contribute more to the insurance fund," the deputy governor said. He also emphasised that deposit insurers can further mitigate technology risks by relying on supervisory rating assessments that incorporate evaluation of a financial institution's technological and operational resilience. By using these assessments as a basis for setting insurance premiums or determining intervention strategies, deposit insurers can ensure that their actions are informed by a comprehensive understanding of each institution's risk profile, Swaminathan added. The senior <keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword> official also asked deposit insurers to prioritise crisis preparedness and develop comprehensive contingency plans that account for technology-induced disruptions. This includes conducting regular stress tests and simulations to assess the potential impact of cyber incidents or fintech failures on financial institutions and the broader financial system, he said. The evolving technological landscape presents both significant challenges and opportunities for deposit insurers. By adopting a proactive, risk-based approach, including enhanced oversight, risk-based premiums, reliance on supervisory ratings, faster claim settlements, and industry collaboration, deposit insurers can effectively manage these risks, the deputy governor said.

Risk-based premium for deposit insurance merits consideration: RBI Deputy Governor Swaminathan

<ul><li>The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword>’s <keyword id="20104157" type="General" weightage="20" keywordseo="monetary-policy" source="keywords">monetary policy</keyword> meeting is set to begin today.</li><li>The central bank will announce the outcome of the <keyword id="22684891" type="General" weightage="20" keywordseo="MPC-meeting" source="keywords">MPC meeting</keyword> on October 9.</li><li><keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword> has kept the <keyword id="20094323" type="General" weightage="20" keywordseo="repo-rate" source="keywords">repo rate</keyword> unchanged for the last nine consecutive meetings.</li></ul>The Reserve Bank of India (RBI) is set to begin its three-day monetary policy meeting on Monday and will run from October 7 to October 9. All eyes are on the outcome, as the central bank has kept the repo rate unchanged for the last nine consecutive meetings. The repo rate, currently at 6.50%, has remained steady since the RBI adopted a cautious stance to balance inflation control and economic growth. The Monetary Policy Committee (MPC), headed by RBI Governor <keyword id="19913110" type="General" weightage="20" keywordseo="Shaktikanta-Das" source="keywords">Shaktikanta Das</keyword>, is expected to weigh key factors like inflationary trends, global economic uncertainties, and domestic growth prospects. Inflation continues to be a challenge, particularly in food and fuel prices, which saw a surge earlier this year. As per the data from the Ministry of Statistics &amp; Programme Implementation, though the All India Consumer Price inflation in August was 3.65%, which is under the RBI target band the food inflation stands at 5.65% and it remains above the RBI's medium-term target of 4%. Despite these inflationary pressures, the RBI has opted for a status quo on the repo rate, primarily to support economic recovery post-pandemic. However, there are rising concerns that external factors, like the rising global crude oil prices and tensions in West Asia, may compel the RBI to reconsider its current stance. Earlier this month the central government appointed three new members to the monetary policy committee. The MPC comprises three members from the RBI and three external members appointed by the Central Government. The newly reconstituted committee consists of the Governor of the Reserve Bank of India as the Chairperson, ex officio; the Deputy Governor of the Reserve Bank of India, in charge of monetary policy--Member, ex officio, and one officer of the Reserve Bank of India, nominated by the Central Board -- Member, ex officio. The new external members included in the MPC are Professor Ram Singh, Director, Delhi School of Economics, University of Delhi, Saugata Bhattacharya, economist; and Dr. Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development. Market participants and analysts are closely monitoring this meeting for any forward guidance on future rate actions. Many believe the central bank will continue its wait-and-watch approach, but a surprise rate hike cannot be entirely ruled out. On September 18, the <keyword id="19901377" type="General" weightage="20" keywordseo="US-Federal-Reserve" source="keywords">US Federal Reserve</keyword> announced a steep 50 basis points interest cut in its review meeting. US Fed announced the rate cuts after holding interest rates steady for eight straight meetings. The outcome of the MPC meeting will be announced on October 9 and will set the tone for future monetary policies amid the changing global economic landscape. The Reserve Bank of India (RBI) will commence its three-day monetary policy meeting on Monday, October 7th, and continue until October 9th. The result of this meeting is eagerly anticipated, as the central bank has maintained a steady repo rate for the past nine consecutive meetings. The repo rate has remained at 6.50% since the RBI adopted a cautious approach to balance inflation control and economic growth. The Monetary Policy Committee (MPC), led by RBI Governor Shaktikanta Das, will consider various factors, including inflationary trends, global economic uncertainties, and domestic growth prospects. Inflation remains a challenge, particularly in food and fuel prices, which surged earlier this year. According to data from the Ministry of Statistics &amp; Programme Implementation, All India Consumer Price inflation in August was 3.65%, within the RBI's target band, however, food inflation stands at 5.65%, exceeding the RBI's medium-term target of 4%. Despite inflationary pressures, the RBI has opted to maintain the repo rate to support economic recovery post-pandemic. Nonetheless, rising concerns about external factors, such as increasing global crude oil prices due to tensions in West Asia, may prompt the RBI to reassess its current stance. Earlier this month, the central government appointed three new members to the monetary policy committee. The MPC consists of three members from the RBI and three external members appointed by the Central Government. It is worth noting that on September 18, the US Federal Reserve announced a substantial 50 basis points interest rate cut in its review meeting, reversing its previous stance of holding rates steady for eight consecutive meetings. With inputs from ANI. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/september-auto-sales-automakers-report-a-decline-mahindra-and-mahindra-overtakes-tata-motors/articleshow/113925972.cms">September Auto sales – Automakers report a decline, Mahindra and Mahindra overtakes Tata Motors</a> <a href="https://www.businessinsider.in/business/auto/news/ola-electric-continues-to-lose-market-share-as-bajaj-auto-and-tvs-motor-gain/articleshow/113900252.cms">Ola Electric continues to lose market share as Bajaj Auto and TVS Motor gain</a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-is-using-ai-powered-technology-to-block-spam-calls-and-messages/articleshow/113691942.cms">Airtel is using AI-powered technology to block spam calls and messages</a>

RBI's monetary policy committee meeting begins today, announcement on October 9

Mumbai: The Reserve Bank is unlikely to cut the benchmark <keyword id="20071327" type="General" weightage="20" keywordseo="interest-rate" source="keywords">interest rate</keyword> in its forthcoming bi-monthly monetary policy review later in the week as <keyword id="19999652" type="General" weightage="20" keywordseo="retail-inflation" source="keywords">retail inflation</keyword> is still a cause of concern, and there is a possibility of the Middle East crisis deteriorating further, impacting crude oil and commodity prices, say experts. Earlier this month, the government reconstituted the Reserve Bank's rate-setting panel -- <keyword id="19913109" type="General" weightage="20" keywordseo="Monetary-Policy-Committee" source="keywords">Monetary Policy Committee</keyword> (MPC). The reconstituted panel, with three newly appointed external members, will commence its maiden meeting on Monday. MPC Chairman RBI Governor Shaktikanta Das will reveal the outcome of the three-day discussion on Wednesday (October 9). The <keyword id="19899810" type="General" weightage="100" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (RBI) has kept the repo or short-term lending rate unchanged at 6.5 per cent since February 2023, and experts think some easing could only be possible in December. The government has tasked the central bank to ensure that Consumer Price Index (CPI) based retail inflation remains at 4 per cent with a margin of 2 per cent on either side. In the current context, experts feel that the RBI may not follow the US Federal Reserve, which lowered the benchmark rates by 50 basis points, and the central banks of some developed nations, which have reduced the interest rates. "We do not expect any change in the <keyword id="20094323" type="General" weightage="20" keywordseo="repo-rate" source="keywords">repo rate</keyword> or stance by MPC. The reason is that inflation for September and October will be above 5 per cent, and the present low inflation is due to the base effect. Besides, core inflation is inching upwards," said Madan Sabnavis, Chief Economist, Bank of Baroda. Further, the recent Iran-Israel imbroglio can intensify, and there is uncertainty here, he said. "Hence, the status quo is the most likely option even for new members. Inflation forecast may be lowered by 10-20 bps and no change in GDP forecast likely," said Sabnavis. The central bank last hiked the repo rate to 6.5 per cent in February 2023 and since then, it has held the rate at the same level. Icra Chief Economist Aditi Nayar said that given the undershooting in the initial first quarter GDP growth relative to the MPC's forecast and the likely sizeable undershooting in the second quarter CPI inflation print as well, "we believe a stance change to neutral may be appropriate in the October 2024 policy review". This could be followed by a shallow rate-cutting cycle of 25 bps each in December 2024 and February 2025, she added. "The abundant monsoon offers some insurance for crop inflation. The impact of global political developments and geopolitical uncertainty on the growth inflation dynamics remains a risk," Nayar added. An HSBC report said three developments stand out -- softer growth numbers have trickled in recently, inflation has been falling, and the external environment has moved from rate hikes to cuts. "We believe the RBI doesn't gain from waiting any longer. We think it will change its stance from a hawkish 'withdrawal of accommodation' to 'neutral' in the upcoming 9 October policy meeting, followed by repo rate cuts of 25 bps each in the December and February meetings, taking the repo rate to 6 per cent," the report said. The RBI kept the repo rate unchanged at 6.5 per cent in its August bi-monthly review amid risks from higher food inflation. This was the ninth consecutive MPC meeting, which decided to maintain the status quo on the rate front. Pradeep Aggarwal, founder and chairman, Signature Global (India) Limited, said while the real estate industry, developer community, and homebuyers are hoping for an interest rate cut in the upcoming monetary policy review, the RBI is likely to hold on to the interest rate cuts for the tenth consecutive time. "The apex bank still seems uncomfortable with the overall retail inflation scenario, particularly food inflation. As such, it is expected to maintain the status quo. The recent interest rate cut by the US Federal Reserve has ignited similar hopes even in India, but the domestic scenario is very different," he added. SBM Bank India Head Treasury Mandar Pitale believed that the MPC has persistently advocated a restrictive policy until inflation aligns durably towards the 4 per cent target. "With the unfavourable base effect taking the next couple of CPI prints near 5 per cent plus or minus, it will pose a major challenge for MPC to start easing from the October meeting," Pitale said, adding that the MPC is also expected to deliberate upon the global factors like growth-inflation behaviour in developed economies. The government has appointed Ram Singh, Saugata Bhattacharya, and Nagesh Kumar as external members of the MPC. They have replaced Ashima Goyal, Shashanka Bhide, and Jayanth R Varma. Apart from the Governor, the other internal members are the RBI Deputy Governor in charge of monetary policy Michael Debabrata Patra and the Executive Director monetary policy department of RBI Rajiv Ranjan. In an off-cycle meeting in May 2022, the MPC raised the policy rate by 40 basis points and it was followed by rate hikes of varying sizes, in the subsequent meetings till February 2023. The repo rate was raised by 250 basis points cumulatively between May 2022 and February 2023.

Status-quo on interest rate likely, say experts ahead of RBI's policy review

<ul><li>Bank lending to NBFCs was growing at 24-25% y-o-y, whereas the rest of the system was growing at 12-14%. </li><li>Interconnectedness is building in the system and <keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword> moves intend to address that. </li><li>RBI governor said that its preemptive measures are intended to proactively take action before the bubble bursts.</li></ul>India’s central bank intends to cut down consumption led-loans given out by banks and shadow banks. Reserve Bank of India’s deputy governor <keyword id="10055827" type="General" weightage="50" keywordseo="swaminathan-janakiraman" source="Orion">Swaminathan Janakiraman</keyword> said that its intention behind increased risk weightage on unsecured loans is to cut down growth of loans which do not have a clearly defined end use. Some segments’ growth within NBFCs are outliers, and the measures taken are to address that. <keyword id="162353" type="General" weightage="80" keywordseo="swaminathan" source="Orion">Swaminathan</keyword> insists that per se, small ticket loans are no risk to the system. “The loans in the under ₹50,000 segments is less than half a percent of total outstanding. They may be dealing with a lot of people, it’s a segment that cannot pose a great risk to the system,” he said while speaking at the post-monetary policy press conference on Friday. Last month, RBI asked banks and non-banking financial institutions (NBFCs) to provide more for unsecured loans, under which personal loans are covered. This measure also addresses interconnectedness building in the system where banks are lending to NBFCs. Bank lending to NBFCs was growing at 24-25% y-o-y, whereas the rest of the system was growing at 12-14%. “Bank lending to NBFCs had to be re-caliberated. The idea is not to deny liquidity or ration the lending,” said Swaminathan. He also added that the business models of some of these institutions will be re-caliberated along with their growth numbers. “Risk measure protection and underwriting practices are getting better. It’s too early to comment on the effect it has had. Governance and effectiveness of assurance functions is top of our priority. You will hear more from us on that,” said the deputy governor. <cmsannotation type="cmsannotation" annotationid="To take action before bubble bursts" comment="subhead" text="To take action before bubble bursts">To take action before bubble bursts</cmsannotation> The RBI governor <keyword id="6359111" type="General" weightage="50" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> also insisted that this move is a preemptive measure to address potential risks. “We don’t wait for the house to catch fire and then act. Our effort is to proactively take action before the bubble bursts,” Das said in his speech. Apart from keeping policy rates unchanged, the RBI’s rate-setting panel also remained focussed on withdrawal of accommodation. It has also kept its projections on inflation for FY24 unchanged at 5.4%, and also warned that the November print of inflation might come in higher. Inflation management cannot be on auto-pilot even as the future is expected to be clouded by uncertain food prices. But Das also said that summer of 2022 is behind us. The RBI also increased its GDP growth projection for FY24 to 7% from 6.5% earlier. “There is growing international confidence in the Indian economy, as we speak to other central bank governors and some large investors. There is confidence from the point of view of investment, quality of Indian products and its service exports,” Das said at the conference. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/rbi-expects-indias-gdp-to-grow-at-7-in-fy24-keeps-repo-rate-unchanged/articleshow/105828012.cms">RBI expects India’s GDP to grow at 7% in FY24; keeps repo rate unchanged</a> <a href="https://www.businessinsider.in/finance/news/rbi-hikes-upi-transaction-limit-for-education-and-healthcare/articleshow/105832824.cms">UPI transaction limit for education and healthcare hiked to ₹5 lakh per day</a>

We’d like to curtail consumption-led loans with no clear end use: RBI Dy Governor

<ul><li>Reserve Bank of India’s (<keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword>) deputy governor M Rajeshwar Rao on Friday outlined several measures in the central bank’s revamped <keyword id="113684" type="General" weightage="20" keywordseo="Microfinance" source="Orion">microfinance</keyword> framework to safeguard customers. </li><li>RBI had announced a revamped regulatory framework for <keyword id="164768" type="General" weightage="20" keywordseo="Microfinance-Institutions" source="Orion">microfinance institutions</keyword> in March this year. </li><li>From transparent pricing of loans to preventing intimidation of borrowers, here are the key aspects of the revamped guidelines for microfinance institutions. </li></ul>Customer protection is the ‘guiding light’ of the central bank’s revamped microfinance regulations that came into effect in April, Reserve Bank of India’s deputy governor M Rajeshwar Rao said on Friday. Rao said that with the new regulations the RBI has moved from a rule-based approach to a principle-based one in order to expand the availability of credit to the last mile, while improving the transparency and competition to foster a healthy environment. In his keynote address at the India Microfinance Review organised by industry body MFIN, the deputy governor said the measures were intended to ensure customer protection, which was the “guiding light while revamping the regulatory regime for the microfinance sector”. RBI’s revamped regulatory framework for microfinance institutions also relaxed norms for household income and repayment criteria to address the growing needs of borrowers. For instance, the limit on maximum annual household income to avail credit from microfinance institutions was ₹1.25 lakh in rural areas, while in urban and semi-urban areas it was ₹2 lakh. This has now been increased to ₹3 lakh for all the three areas. Rao, in his address, highlighted the following key new customer protection measures that are part of RBI’s revamped microfinance framework. <cmsannotation type="cmsannotation" annotationid="Transparent pricing of loans" comment="subhead" text="Transparent pricing of loans">Transparent pricing of loans</cmsannotation> Under the revamped framework, microfinance institutions will have to ensure transparency in the pricing of loans by clearly disclosing the methodology used in calculation of the effective interest rate. Effective interest rate includes the impact of compounding, showing exactly how much a borrower is paying in the form of interest on a loan. Rao said that this measure would not only help the borrower understand the total cost of a loan, but also help in comparing the cost amongst lenders to choose the best option. <cmsannotation type="cmsannotation" annotationid="Policies for conduct of employees" comment="subhead" text="Policies for conduct of employees">Policies for conduct of employees</cmsannotation> Rao also underlined that the boards of microfinance institutions should approve policies for the conduct of employees, including their recruitment, training and conduct. These policies should also include programmes to train employees in interacting with customers and link it with their compensation matrix, he said. <cmsannotation type="cmsannotation" annotationid="No coercive recovery measures against borrowers" comment="subhead" text="No coercive recovery measures against borrowers">No coercive recovery measures against borrowers</cmsannotation> Lastly, the updated guidelines also require the microfinance institutions, or the recovery agencies outsourced by them, to not indulge in coercive recovery measures. This includes preventing recovery agents from intimidating borrowers or calling them before 8 am or after 7 pm. The guidelines also require the boards of these institutions to lay down policies for grievance redressal mechanisms so that customer complaints can be addressed appropriately. “While we acknowledge the rights of the lenders to recover overdue loans, I would like to make it clear in no uncertain terms that the Reserve Bank has zero tolerance for misconduct towards the borrowers,” Rao said. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/meta-expected-to-announce-massive-layoffs-this-week-that-could-impact-thousand-as-tech-bloodbath-continues-wsj/articleshow/95343558.cms">Meta expected to announce massive layoffs this week that could impact thousand as tech bloodbath continues: WSJ</a> <a href="https://www.businessinsider.in/stock-market/news/sensex-rises-over-360-pts-to-scale-61k-level-in-early-trade-nifty-above-18220/articleshow/95348184.cms">Sensex rises over 360 pts to scale 61k-level in early trade; Nifty above 18,220</a> <a href="https://www.businessinsider.in/tech/news/twitter-backtracks-elon-musks-platform-will-delay-its-paid-blue-check-verification-plan-until-after-midterms-nyt/articleshow/95343175.cms">Twitter backtracks: Elon Musk's platform will delay its paid blue check verification plan until after midterms: NYT</a>

Customer protection 'guiding light' of revamped microfinance regulations, says RBI deputy governor

The surprise move to hold repo rate should not be seen as an indicator of carrying out similar moves in the future, and <keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword> will "not hesitate" in taking further action on rates if needed, Governor <keyword id="6359111" type="General" weightage="80" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> said on Thursday. "If I have to characterise today's monetary policy in just one line...it's a pause, not a pivot," Das told reporters in the customary interaction with reporters after the announcement of the policy review. Earlier in the day, the six-member MPC unanimously decided to pause after repeated hikes in rate over the last 11 months, surprising analysts who were expecting the central bank to make a final 25 basis points hike before opting to pause. The benchmark policy rate (repo rate) is 6.5 per cent. Das said the job to decisively bring down inflation is "not yet finished", and RBI's policy priority continues to be price stability. RBI is keen to assess the cumulative impact of the rate actions done till now, he said. There has been a cumulative hike of 250 basis points since May 2022. In his statement while announcing the policy review, Das pledged to hike interest rate again if needed, saying the decision to pause was "for this meeting only". Speaking to reporters, Das reminded that RBI's target is to get headline inflation to 4 per cent from the 6 per cent levels at present, and the monetary policy will be working towards progressively aligning with the target. Deputy Governor Michael Patra said RBI has marginally upped its FY24 growth estimate to 6.5 per cent primarily on assumption of a decline in the average oil price to USD 85 per barrel from USD 90 per barrel earlier.

It's just a pause not a pivot, says Shaktikanta Das on RBI's status quo

<keyword id="19895282" type="General" weightage="20" keywordseo="mumbai" source="keywords">Mumbai</keyword>, <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword> can sustain 8 per cent annual GDP growth and the conducive macroeconomic configuration may become a launching pad for a step-up in the country's growth trajectory, said an article on the 'State of Economy' in the central bank's March <keyword id="21015227" type="General" weightage="20" keywordseo="bulletin" source="keywords">Bulletin</keyword> published on Tuesday. Over the period 2021-24, gross domestic product (GDP) growth has averaged above 8 per cent. The global economy is losing steam, with growth slowing in some of the most resilient economies and high frequency indicators, pointing to further levelling in the period ahead, said the article authored by a team led by <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword> Deputy Governor <keyword id="20244361" type="General" weightage="20" keywordseo="michael-debabrata-patra" source="keywords">Michael Debabrata Patra</keyword>. In India, real GDP growth was at a six-quarter high in the October-December period of 2023-24, powered by strong momentum, robust indirect taxes, and lower subsidies. The high visibility of structural demand and healthier corporate and bank balance sheets will likely be the galvanising forces for growth going forward. "The world is confronted with large shifts in structure and sentiments, which are either underway or impending," it said. The article noted that the outlook is shrouded with layers of uncertainty, exacerbated by geopolitical and extreme weather risks as well as fragmenting forces. By contrast, it said the Indian economy is experiencing a conducive macroeconomic configuration that can be its launching pad for a step-up in its growth trajectory. "Over the period 2021-24, growth has averaged above 8 per cent; and the underlying fundamentals indicate that this can be sustained and even built upon," the authors said. The current account deficit is modest, external buffers are resilient and fiscal consolidation is into its third consecutive year even as corporations are deleveraging and improving their debt servicing capacity. According to the article, balance sheets in the financial sector are sound and healthy, providing the wherewithal for intermediating the productive credit needs of a resurgent economy. "Financial markets are reflecting these favourable formations. Capital inflows have resumed strongly as investor interest floods back into India," it said. The authors further said technology is offering new growth opportunities to seize by becoming more competitive and efficient. "The time has come to build world class infrastructure, strong manufacturing bases, a high-quality labour force and global leadership in services to convert these favourable factors into opportunities and strengths over the next few decades," they added. The article further said the aggregate demand in the third quarter of 2023-24 was investment-driven, with some indications of a revival of the private capex cycle. Capacity utilisation in several sectors has reached a point where there has to be new investments. "The current financial year will likely see the highest ever length of four-lane roads being constructed, along with the highest ever length of speed or access-controlled highways -- on course to create a world-class road network by 2037," it said. It also noted that the demand outlook for premium consumer businesses is robust and the growth rhythm is expected to persist into the medium-term. This suggests that there are significant per capita income shifts underway, it said, adding that small town opportunities are leading to growth of business across lifestyle segments, with companies that entered these markets enjoying the fruits of being first movers.

India can sustain 8% growth, even higher: RBI bulletin

<ul><li>Unified regulatory framework on connected lending aims to strengthen pricing and management of credit by regulated entities.</li><li>Experts believe that this move is related to bank lending to NBFCs.</li><li><keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword> will also come up with a regulatory framework for web-aggregation of loan products. </li></ul> The Reserve Bank of India (RBI) said on Friday that it will come up with a unified regulatory framework on connected lending for the entities it regulates. This move is to strengthen the pricing and management of credit by regulated entities. “The extant guidelines on connected lending are limited in scope,” said Shaktikanta Das, governor of RBI said in his speech where he announced that the Monetary Policy Committee <a href="https://www.businessinsider.in/finance/news/rbi-expects-indias-gdp-to-grow-at-7-in-fy24-keeps-repo-rate-unchanged/articleshow/105828012.cms">has decided to keep repo rates unchanged</a>. RBI’s deputy governor Rajeshwar Rao clarified at the press conference that the regulations do not refer to interconnectedness. “Connected lending refers to persons who are in the position to control the decision of the lender,” he said, without giving any more details. Das said that it refers to cases where the director of a bank borrows from the same bank and can have some influence. It also refers to cases of related parties as well, he clarified. “It has nothing to do with interconnectedness,” Das said. The central bank has recently increased the risk weightage on unsecured loans given out by banks and NBFCs. “It’s a pre-emptive measure to address potential risks. We don’t wait for the house to catch fire and then act,” said Das. Neutrality and transparency to web-aggregators of loans The RBI also said it will lay down a regulatory framework for web-aggregation of loan products. Das said that he has noticed that such loan products are harming consumer interest and the framework is expected to result in enhanced customer centricity and transparency in digital lending. This move is a follow-up to the recommendations they received from the working group on digital lending norms, says Rabi Shankar, deputy governor of RBI. The Reserve Bank had introduced a regulatory framework for digital lending in August/September 2022. The digital lending ecosystem also comprises of services that aggregate loan offers from lenders (called web-aggregation of loan products) for guidance of customers. “Lenders on web platforms get their information from various sources and give weightage to customers. Sometimes they might miss something,” added Shankar. Das said that the move will bring neutrality, transparency and avoid mis-selling and also not influence the decision of the borrower. SEE ALSO <a href="https://www.businessinsider.in/stock-market/markets/news/nifty-scales-21000-as-stocks-rally-and-rbi-mpc-hikes-growth-forecast/articleshow/105829753.cms">Nifty scales Mount 21,000 as RBI hikes growth forecast</a> <a href="https://www.businessinsider.in/finance/news/rbi-expects-indias-gdp-to-grow-at-7-in-fy24-keeps-repo-rate-unchanged/articleshow/105828012.cms">RBI expects India’s GDP to grow at 7% in FY24; keeps repo rate unchanged</a>

RBI to come up with unified regulatory framework on connected lending

Mumbai (Maharashtra) [India], November 17 (ANI): Reserve Bank of India Governor <keyword id="6359111" type="General" weightage="80" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> chaired meetings with Managing Directors and Chief Executive Officers of public sector banks and certain private sector banks on Wednesday. The meetings were also attended by Deputy Governor M. K. Jain along with a few senior officials of the RBI, the central bank said in a statement. Governor Das acknowledged the crucial role played by the commercial banks in supporting economic growth throughout the turbulent times since the outbreak of the pandemic and the ongoing financial market turmoil. Das further stated that despite challenges, the Indian banking sector has remained resilient and continued to improve in various performance parameters. "He advised the banks to remain watchful of the evolving macroeconomic situation, including global spillovers, and take mitigating measures proactively so that the potential impact on their balance sheets is minimised and financial stability risks are contained," the RBI statement said. Among other matters, issues relating to lagging growth in deposits vis-a-vis credit growth, asset quality, investments in IT infrastructure, adoption of new-age technology solutions, and functioning of Digital Banking Units were also discussed. (ANI)

'Remain watchful' is RBI Governor's advice to heads of banks amid global headwinds

<ul><li>The <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> has announced that it is working on a dedicated cloud facility.</li><li>The cloud facility is being developed for the country’s financial sector.</li><li>The new facility is aimed at enhancing data security and privacy.</li></ul>India’s central bank, the <keyword id="50847" type="General" weightage="80" keywordseo="reserve-bank" source="Orion">Reserve Bank</keyword> of India (<keyword id="30067" type="General" weightage="80" keywordseo="rbi" source="Orion">RBI</keyword>) is working on a dedicated cloud facility for the booming financial sector in India. This was announced by RBI governor <keyword id="6359111" type="General" weightage="50" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> during the central bank’s Monetary Policy Committee (MPC) announcement. The cloud facility is aimed at enhancing data security and privacy. It will also offer better scalability and ensure business continuity for companies. "Banks and financial entities are maintaining an ever-increasing volume of data. Many of them are utilising the cloud facilities for this purpose. The Reserve Bank is working on establishing a cloud facility for the financial sector in India for this purpose,” said Das. Its purpose is to help smaller entities build efficiencies in terms of scale, explained Rabi Sankar, deputy governor of RBI at the post-monetary policy press conference. The cloud facility will be set up in a phased manner in the medium term. It will be initially operated by Indian Financial Technology &amp; Allied Services (IFTAS), which is a wholly-owned subsidiary of the RBI. The facility will later be transferred to a different entity, owned by companies from the country’s financial sector. There is a growing need for improved data security as there has been a steady increase in digital transactions in the country. The setting up of this cloud facility will help startups and small enterprises handle data efficiently, probably at a reduced cost compared to existing international options available. RBI MPC has decided to keep key rates unchanged at 6.5% in its December policy. Other announcements from the meet include enhancements to limits for specific categories of transactions for Unified Payments Interface (<keyword id="6358921" type="General" weightage="80" keywordseo="upi" source="Orion">UPI</keyword>). As per the new UPI transaction limits, individuals can now make payments up to ₹5 lakh per day to hospitals and educational institutions by UPI. This was earlier capped at ₹1 lakh. The central bank has also proposed to increase the e-mandate for recurring payments to ₹1 lakh from current ₹15,000. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/rbi-expects-indias-gdp-to-grow-at-7-in-fy24-keeps-repo-rate-unchanged/articleshow/105828012.cms">RBI expects India’s GDP to grow at 7% in FY24; keeps repo rate unchanged</a> <a href="https://www.businessinsider.in/stock-market/webstories/doms-industries-ipo-check-out-open-date-and-price-band/slidelist/105831826.cms">DOMS to raise ₹1,200 cr via IPO: Journey, investors and everything you need to know</a> <a href="https://www.businessinsider.in/finance/news/rbi-hikes-upi-transaction-limit-for-education-and-healthcare/articleshow/105832824.cms">UPI transaction limit for education and healthcare hiked to ₹5 lakh per day</a>

You Searched For "RBI Deputy Governor" and got 12 results

India likely to grow at 7.2% in FY25, says RBI deputy governor

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RBI's monetary policy committee meeting begins today, announcement on October 9

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Status-quo on interest rate likely, say experts ahead of RBI's policy review

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We’d like to curtail consumption-led loans with no clear end use: RBI Dy Governor

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It's just a pause not a pivot, says Shaktikanta Das on RBI's status quo

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India can sustain 8% growth, even higher: RBI bulletin

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RBI to come up with unified regulatory framework on connected lending

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'Remain watchful' is RBI Governor's advice to heads of banks amid global headwinds

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India’s central bank to establish cloud facility for financial institutions

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