CII should go to the tier-II, tier-III towns and villages and tell why these reforms are good says the deputy governor of the RBI
Mumbai: Reserve Bank of India (RBI) Deputy Governor HR Khan has asked industry captains to talk to the masses about the need for economic reforms as pro-reform voices are a "limited constituency" in the country, reports PTI.
"There is a huge need for communication (as to) why reforms are necessary. It is not only to attract foreign investors...it is in the interest of the country," he said.
"There is a vested interest in the country against business. They think business is a crime. (They say) any reforms and people will suffer. But nobody explains, starting from the top political leadership to the captains of the industry, academia. Nobody goes and talks to the general people," he said.
Khan clarified that these are his personal opinions and not those of the RBI, which he said is the only central bank in the world which does the outreach programmes that take the top leadership to the hinterland to interact with the youth and general public.
"Captains of industry don't go to the villages and tell people that this is good for you," he said, speaking at a conference on capital markets organised by industry body CII.
"CII should go to the tier-II, tier-III towns and villages and tell why these reforms are good," he said, adding pro-reform voices are a "limited constituency".
Khan's comments come in the backdrop of government getting Parliament's nod for foreign investment in multi-brand retail and asserting its resolve to push ahead with other reform measures.
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RBI is also mulling allowing a repo in certificate of deposits issued by banks and commercial papers by corporates
Mumbai: Reserve Bank of India (RBI) is contemplating to allow foreign institutional investors (FIIs) in currency futures market, Deputy Governor HR Khan said, reports PTI.
"We are thinking whether FIIs can participate in currency futures," Khan said while speaking at a seminar on capital markets organised by industry body CII.
He said the RBI is also mulling allowing a repo in certificate of deposits (CDs) issued by banks and commercial papers (CPs) by corporates.
This move, if allowed, will help expand the corporate bond market. Normally, CDs and CPs are of short-term maturity of say, one to six months.
He said discussions to bring down "haircut" on repo or keeping it tenor based, are at an advanced stage and the RBI will come out with guidelines on the same in the next few weeks.
A haircut is a percentage that is subtracted from the market value of an asset that is being used as collateral.
On the proposed reduction in withholding tax on rupee- -denominated infrastructure bonds, Khan said the Government is expected to notify the changes soon.
Additionally, for boosting foreign fund flows, Khan said, "we are thinking we will reduce the residual maturity and lock-in period. We are flexible on that."
He reiterated the government's last week announcement of raising the FII caps by $5 billion each in government securities (G-Secs) and corporate bonds.
"We continue to evolve and in a cautious manner we will open up. Wherever procedural glitches are there, we will try to sort them out," Khan said.