Ex-RBI governor says road map for fiscal consolidation starting 2022 would be prudent. Though expansionary fiscal policy is a pressing need, govt spend on health and education would benefit economy
Higher inflation tolerance will increase risks
Acharya warned that both conditions are prevalent in India. Given India's macro constraints, where the government is spending more relative to the Indian households' savings
After banks and NBFCs, the Reserve Bank of India (RBI) has now decided to facilitate a more efficient liquidity management in Regional Rural Banks
Cash, government securities, treasury-bills and repo on government securities qualify as 'liquid assets'
While sectors including agriculture, MSME and retail are covered, NBFCs have not been included as a beneficiary of the facility
Size may be enhanced in the subsequent auctions depending on market response
It pared repo rate by 40 bps on May 22, on top of a 75 bps cut on March 27, brought liquidity enhancing steps that stabilised bond yields even in the face of a Rs 12 trn borrowing programme
The use of liquidity facility remains low due to factors such as consolidation of business, stringent eligibility rules and short tenure
The Reserve Bank of India's forex strategy has been in sharp focus after it stepped away from dogged dollar buying amid large inflows
As challenges mount, the central bank will need to strike a fine balance between managing the rupee, domestic liquidity and fiscal financing
The cut-off yield was 4 per cent, which is at par with the policy repo rate
The two tranches will be worth Rs 10,000 crore each on multi-security auction using multiple price method, the central bank said in a statement
The loans under the package will be co-funded by PFC and REC in equal proportion and will be sanctioned in two tranches
Yields have dropped and the spreads have compressed despite foreign portfolio investment outflows of around $3 billion from corporate bonds in 2020, says article
Under the scheme, eligible non-bank lenders will be provided short-term liquidity through a special purpose vehicle set up by the SBICAP securities
A stamp duty of 0.005 per cent will be levied on issuance of units, and 0.015 per cent on transfer of mutual fund units.
The liquidity situation for non-banking financial companies (NBFCs), which had been facing a crunch on this front for some time now, is improving.
Take into account the fundamental factors driving demand before deciding to shift from gold to silver
Dangers of global liquidity glut are the same as the last crisis