Since we Indians do not believe much in making non-cash transactions, the RBI is taking measures to facilitate customers for doing so. With low penetrations of ATMs and POS, the question is-How soon is it possible?
According to Dr KC Chakrabarty, our government is borrowing too much and our country is borrowing too much
Chennai: The Reserve Bank of India (RBI) has voiced concern over 'too much' borrowing by the government, high inflation and fiscal deficit, reports PTI.
"Our government is borrowing too much and our country is borrowing too much. Our inflation is one of the highest among the emerging economies. We have the highest fiscal deficit, current account deficit and inflation," Reserve Bank Deputy Governor KC Chakrabarty said at a conference.
However, he said the "good news is that everybody is aware of the problems. Nobody is saying there is no problem. People say they will take action."
"We need to work hard at least for the next 20 years and we need to grow by around 10%. If we have to use this crisis as an opportunity, we must do all the right things...," he said, speaking at a conference here.
"Believe me, job is not a problem if we can educate our people. But if we are not able to educate the people, given the employment opportunities, the demographic dividend will become demographic disaster and that is also one of the dangers we must look into", he said.
Pratip Chaudhari, chairman of SBI defended his views on CRR saying that when the deputy governor (Dr Chakrabarty) was a bank chairman, he was asking for the same
Mumbai: Making a strong case for abolition of cash reserve ratio (CRR), country's largest lender, the State Bank of India (SBI) chairman Pratip Chaudhari on Tuesday said the banks were unable to use the resources more productively, which is lying with the central bank without any interest earning, reports PTI.
Though CRR, the amount of capital that banks park with the RBI, doesn't pay any interest to banks, RBI views it as a cushion against any liquidity crisis in the system.
Yesteday, the Reserve Bank of India (RBI) deputy governor Dr KC Chakrabarty had said that banks had to work in the regulatory environment of the country.
"If the SBI chairman is not able to do business as per our regulatory environment, he has to find some other place," Dr Chakrabarty said in a sharp reaction to Chaudhuri's recent comment that CRR does not help anybody and it was unfairly put on banks.
However, Chaudhari, chairman of SBI also defended his views on CRR saying that when the deputy governor was a bank chairman, he was asking for the same.
Chaudhari also said that when the CRR rate was high and GDP was low, there was a strong inverse co- relationship.
He also said if CRR is a inflation tool, then other sectors like insurance and NBFC should also have such norm.