“In India, the RBI does not target any exchange rate. We intervene in the foreign exchange market only to manage the volatility and to manage the disruption to the macro economic situation,” RBI governor, D Subbarao said
Amid rupee crossing the 57 mark against US dollar, the Reserve Bank of India (RBI) today said it is not targeting any exchange rate but will intervene in the forex markets only to curb volatility and prevent disruption of macroeconomic stability.
“In India, the RBI does not target any exchange rate. We intervene in the foreign exchange market only to manage the volatility and to manage the disruption to the macro economic situation,” RBI governor, D Subbarao said.
Subbarao said: “The important point is that we have to be internally sure that when we enter market we are credible because for a central bank failed defence of exchange rate can be quite detrimental.
“When you have downward pressure on the rupee as I said you have to shell your dollars. And a fair defence of the exchange rate can be worse than no defence.”
The rupee weakened below 57 to the dollar today to approach a record low hit about a year ago. It was trading at 57.06/07 to the dollar. The Indian currency had hit record low of 57.32 against a dollar in June last year.
On the widening current account deficit (CAD), Subbarao said there are three concerns about India’s CAD. These are quantum of CAD, quality of CAD and financing the CAD.
The increase in the deficit above the sustainable levels year-on-year is certainly going to add the pressure, he said.
Due to the proactive monitoring of NAMS on the print and TV ads, it has helped in tracking a large number of misleading ads
Advertising Standards Council of India (ASCI) recently bagged the Best Practices Silver Award at European Advertising Standards Alliance’s (EASA) Annual Meeting held in Milan, Italy for the introduction of the path-breaking initiative NAMS. The EASA Best Practice Award is presented each year to the self-regulatory organisation that has most effectively implemented an element of the EASA Best Practice Model—a set of operational standards for advertising standards bodies.
Commenting on the achievement, ASCI’s Chairman, Mr Arvind Sharma said, “ASCI through NAMS has done path breaking work in tracking down and removing ads which make misleading, false or unsubstantiated claims. And the EASA Best Practice Silver award is recognition by the global ad Self Regulatory Organisations (SRO) that ASCI not only follows global best practices but also helps in innovating new ones.
“This recognition encourages us to further strengthen the professional and ethical standards in the ad industry to ensure responsible advertising and thereby protect the interests of the consumers.” Due to the proactive monitoring of NAMS on the print and TV ads, it has helped in tracking a large number of misleading ads. The number of ads against which complaints were received and processed by ASCI has jumped from 177 in 2011-2012 to 784 in 2012-2013, which is almost 5 times!
ASCI is a self-regulatory voluntary organization of the advertising industry. ASCI along with its Consumer Complaints Council (CCC) deal with complaints regarding advertisements which are considered as false, misleading, illegal, leading to Unsafe practices or Unfair to competition and consequently in contravention of the ASCI Code for Self-Regulation in Advertising. They receive complaints both from the consumers and the industry.
In May, 2012 ASCI introduced National Advertising Monitoring Service (NAMS) in order to strengthen the process of tracking and reducing misleading advertisements which harm the interests of consumers. NAMS which comprises of the AdEx India, a division of TAM Media Research and with the support of trained personnel from the ASCI keeps a continuous check on all the newly released TV and Newspaper print ads to see that they are not violating any ASCI’s advertisement code related to unsubstantiated, misleading or false claims. On an average they monitor 1,500 TV and 45,000 newspaper ads monthly. They track advertisements against which there have been complaints and monitor if the respective ads are being changed or removed as per the complaint. If the ads are not being altered and they are still being aired in the same manner, then the ASCI reports this to the relevant statutory authorities for action.
In order to fasten the decision making process and to handle the recent jump in the number of complaints received and processed, the ASCI introduced the Consumer Complaint Council (CCC) and appointed Shweta Purandare as Chief Operations Officer (COO) to drive the investigation of complaints besides heading the complaint redressal and follow up process. The meetings are being conducted every week instead of every fortnight so as to reduce the average complaint adjudication time.
“The Reserve Bank will keep a track of growth as it evolves, keep track of inflation as it evolves and keep track of aspirations and inspirations as it evolves,” RBI governor D Subbarao said
Ahead of its mid-quarter policy, the Reserve Bank of India (RB) today said its monetary actions in the coming months will be determined by the outlook on monsoon and ensuing impact on inflation.
“And most importantly we also chase monsoon like millions of farmers across the country. So, the monsoon outlook, the monsoon performance is going to be the important factor in determining the RBI policy in the next three months,” RBI governor D Subbarao said while delivering a lecture in Hyderabad.
As per the Indian Meteorological Department (IMD) prediction, the monsoon is expected to be normal this year.
“The Reserve Bank will keep a track of growth as it evolves, keep track of inflation as it evolves and keep track of aspirations and inspirations as it evolves,” he said.
The RBI is scheduled to unveil its first mid-quarter monetary policy review on 17th June. There is pressure on the central bank to cut the policy rate in view of declining inflation and the urgency to boost sagging growth.
Although the headline inflation and core inflation has moderated below 5%, food inflation still remains high.
Food inflation in April stood at 6.08%, while the overall WPI inflation fell to a three-year low of 4.89%. However, retail or consumer price index (CPI) inflation is at 9.39% in April.
Noting that food inflation is still high, finance minister P Chidambaram had yesterday expressed confidence that it will come down with the full harvest of rabi crops.
“Food inflation is still elevated but we hope that it will come down further as full Rabi crops arrive in the market,” he had said.
Last month, the central bank lowered the short-term lending (repo) rate to 7.25% from 7.50% cent, lowest since May 2011, while retaining the CRR for banks unchanged at 4%.
The central bank has reduced the key policy rate thrice by 0.25% each so far in 2013 in its effort to boost growth which hit a decade low of 5% in 2012-13.
Chidambaram highlighted that while the RBI has already cut the repo rate by 125 basis points since early 2012, the commercial banks have cut rates by only 30 basis points.