RBI defers implementation of Ind AS by one year
The Reserve Bank of India (RBI) on Thursday decided to defer implementation of Indian Accounting Standard (Ind AS) by one year for the banks. Scheduled commercial banks (SCBs), excluding regional rural banks (RRBs), and were required to implement Ind AS from April 1, 2018. “Necessary legislative amendments – to make the format of financial statements, prescribed in the Third Schedule to Banking Regulation Act 1949, compatible with accounts under Ind AS – are still under consideration of the government,” the apex bank said in a statement.
Neutral stance: RBI hints at end to rate tightening
The Reserve Bank of India’s (RBI) lower inflation projections for 2018-19, announced on Thursday, suggest an end to the rate-tightening cycle. However, bankers have ruled out any cuts in loan rates immediately, wary of a possible shortage of liquidity as also the need to keep interest rates on deposits at attractive levels so as not to lose out on savings. PK Gupta, MD, State Bank of India (SBI), told a business news channel that even while the RBI was raising rates, banks had not really tinkered with their rates because there was enough liquidity available in the market.
CBI books Vadodara firm for Rs 2654-crore bank fraud, raids premises
The CBI today said it had registered a criminal case against a Vadodara-based company dealing in electric cable and equipment and its directors for allegedly cheating various banks to the tune of Rs 2,654 crore. The central probe agency also launched searches at the official and residential premises of the company — Diamond Power Infrastructure Ltd. (DPIL), and its directors in Vadodara in Gujarat, a CBI spokesperson said. The CBI alleged that DPIL, which manufactures electric cables and equipment, is promoted by S N Bhatnagar and his sons Amit Bhatnagar and Sumit Bhatnagar, who are also the executives of the firm.
CBI questions 3 RBI officials in connection with 80:20 scheme and PNB scam
The Central Bureau of Investigation (CBI) is questioning senior officials of the Reserve Bank of India (RBI) in connection with the Rs 130-billion fraud at Punjab National Bank (PNB). Simultaneously, their connection is also being probed over the 80:20 gold import scheme, which has allegedly benefitted firms of Nirav Modi and Mehul Choksi. Modi and Choksi are the primary accused in the PNB case. According to senior officials of the agency, two general managers and one chief general manager of the Reserve Bank of India have been questioned over the past one week to ascertain whether the apex bank was aware of the letters of undertaking (LoUs) issued to Modi and Choksi.
RBI forecast of lower inflation brings rate cut back on the table
The subtext of the latest monetary policy statement released by the Indian central bank is that inflation has peaked for now. The Reserve Bank of India (RBI) has cut its forecasts for inflation in the financial year that began this week. This means that consumer prices over the next four quarters are likely to grow closer to the rate that Indian monetary policymakers are comfortable with. Five of the six members of the monetary policy committee (MPC) voted to keep policy interest rates unchanged. The hawkish Michael Patra voted for a rate hike. Bond yields tumbled to their lowest level in nearly four months in response to the policy statement, which was more sanguine on inflation compared with the February one.
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