RBI to cut rates in June by 25 bps: BofA

The Reserve Bank of India’s (RBI) 25 basis point repo rate cut is unlikely to considerably change your financial landscape.

 As Reserve Bank of India Governor D Subbarao readies for Monday’s mid-quarter review of the monetary policy, a fall in the rate of headline inflation in May might have added to his dilemma. The challenge would be simultaneously addressing the issues of a weak economic growth and a volatile rupee increasing prices. “The rupee’s sharp depreciation since May has clearly made a case for no rate cut. "But, since the inflation rate has fallen, RBI will have to take cognizance ...

The central bank’s deputy governor says there is no proof that regulation will help customers, reports Faisal Kidwai.Customers should not remain stuck with a bank if it is not providing satisfactory services and should instead shop around, says a senior official of the Reserve Bank of India.“Account portability has made moving accounts from one bank to another easy. Instead of depending on regulators, clients should exercise their own rights. If they are not happy with a bank then ...

The Reserve Bank of India (RBI) and the Planning Commission blamed the rupee’s recent slide on the twin deficits - current account and fiscal - after the Indian currency touched Rs 57 a dollar, the lowest level in almost a year. The rupee closed at 56.85 on Thursday. The Planning Commission said the average annual economic growth in the 12th Five-Year Plan (2013-17) could be up to 7.9 per cent against its earlier projection of eight per cent.  K C Chakrabarty, deputy governor of RBI, ...

Reserve Bank of India lens on mutual fund (MF), insurance, gold coin sale by branch’s non-sales staff Commission income from selling insurance and MF banks increased Incentive process to be streamlined Mis-selling leading to exposure banks to reputational risk Online portal Cobrapost’s sting operations, which alleged three private sector banks were violating know your customer (KYC) and anti money-laundering norms, are turning out to be a tip of the proverbial iceberg. The Reserve ...

The Reserve Bank of India will meet the country’s top bankers on Thursday’s for pre-policy discussions, in which the latter will seek a deferral of the higher provisioning norms that came into effect on Monday.In addition, the recent RBI norm that increased the threshold level of bulk deposits to Rs 1 crore (Rs 10 million) from Rs 15 lakh (Rs 1.5 million) is hurting the retail savers and it needs to be reversed, bankers said.RBI governor D Subbarao, along with four deputy governors, ...

Banking shares have rallied up to 5% on the bourses on hopes of rate cut in the Reserve Bank of India’s (RBI) annual policy on May 3 after the wholesale price index (WPI) inflation down to 40-month low.

The Reserve Bank of India has said chit fund companies which defraud people show the financial system’s failure to bring unbanked population into the formal system.“The fact that people have to rely on such entities (chit funds) for their saving needs indicates a failure on the part of the formal financial system to reach out to such groups and earn their trust and confidence through a transparent and responsive customer service regime” said K C Chakrabarty, deputy governor, ...

Naoyuki Shinohara, IMFThe International Monetary Fund (IMF)’s Deputy Managing Director, Naoyuki Shinohara, on Friday said if India wanted to go back to its high-growth trajectory, it has to address some key bottlenecks in terms of infrastructure, ...