RBI holds rates, lowers growth forecast, raises inflation estimate
The Reserve Bank of India (RBI) on Wednesday left interest rates unchanged, citing upside risks to inflation. The central bank lowered its economic growth forecast for the current year and raised its inflation estimate. RBI’s six-member monetary policy committee (MPC) kept the repurchase or repo rate—the rate at which the central bank infuses liquidity in the banking system by lending to banks—unchanged at 6%. It maintained its neutral policy stance, suggesting that rate cuts in the short term could not be taken for granted.
Rajnish Kumar new SBI chairman as Arundhati Bhattacharya retires
Rajnish Kumar, 59, the senior most of the managing directors at State Bank of India (SBI), will become the 25th chairman of the country’s largest lender, succeeding Arundhati Bhattacharya, who is set to retire on 6 October. The government on Wednesday announced his appointment for three years. Kumar currently is in charge of retail banking at SBI.
Mahindra matches Tata Motors’s EV tender bid
Mahindra and Mahindra Ltd has matched the bid made by Tata Motors Ltd for supplying electric vehicles (EVs) to the state-run Energy Efficiency Services Ltd (EESL), winning 30% of the marque order. Mahindra will supply 150 of the 500 EVs to be delivered in the first phase, by 30 November. The time-frame for the second phase has not yet been announced.
RBI norms for NBFCs: Peer-to-peer lending restricted to 36 months or less
The Reserve Bank of India (RBI) on Wednesday issued rules for non-banking financial companies (NBFCs) that want to operate as peer-to-peer (P2P) lending platforms. The central bank has specified that the maturity of the loans must not exceed 36 months. The aggregate exposure of a lender to all borrowers at any point of time, across all P2Ps, would be subject to a cap of Rs 10 lakh. The same limit applies to aggregate loans taken by a borrower at any point of time, across all P2Ps. The exposure of a single lender to the same borrower, across all P2Ps, must not exceed Rs 50,000.
EPFO may give part payout in MF-like units
Subscribers to the Employees’ Provident Fund Organisation (EPFO) may soon get part of their retirement payout in the form of units proportionate to the money the state-run pension fund invests in equities, a senior official said. EPFO invests up to 15% of its annual incremental corpus — pegged at Rs 1.4 lakh crore — in stocks through exchange-traded funds (ETFs) to take advantage of higher returns from equities. The rest of the money is invested in government securities and other forms of debt.
Delhi assembly passes bill to regularise 15,000 guest teachers
The Delhi assembly on Wednesday passed a bill to make about 15,000 guest teachers employed in government schools permanent amid opposition disapproval. The bill for regularisation of services of guest teachers and teachers engaged under the ‘Sarva Shiksha Abhiyan’ was introduced in the assembly by Deputy Chief Minister Manish Sisodia. The Bill, which was cleared by the Cabinet last week, will now be sent to Lt Governor Anil Baijal for approval where it is expected to face resistance.
Modi hits back at critics over economic slowdown, says won’t jeopardise India’s future
Prime Minister Narendra Modi on Wednesday strongly defended his government’s management of the economy, pledging to reverse a downturn in economic growth. Modi’s comments come at a time when the narrative about the economy has turned negative, triggered by the economy’s slowest expansion in three years during the three months ended 30 June, and fanned by criticism of his government by former finance minister Yashwant Sinha and former disinvestment minister Arun Shourie, both once leading lights of Modi’s own Bharatiya Janata Party (BJP). The Prime Minister, in a talk at an event organized by the Institute of Company Secretaries of India, admitted that economic growth has slowed, but added that his government is “commited to reversing the trend”.
More reforms soon, don’t get gloomy over one quarter of slow growth: PM
In his strongest defence of the economy, PM Narendra Modi too on his opponents on Wednesday, promising to reverse the falling economic growth curve by continuing the reforms programme, while committing to address all concerns reared to the implementation of goods and services tax. Modi said creating an atmosphere of gloom over one quarter of slow growth was not justified, a reference seemingly aimed at the opposition and in-house critics like former FM Yashwant Sinha.
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