A day after lowering SLR, Rajan said the RBI would reduce the amount of pre-emptions in the system including SLR and make a more effective priority sector lending process
Reserve Bank of India governor Dr Raghuram Rajan has said the central bank is all for reducing "pre-emptions" over a longer horizon for more efficiency in the financial system.
"The broader, longer term programme of five years, is that we should reduce the amount of pre-emptions we have in the system including statutory liquidity ratio (SLR) and make a more effective priority sector lending (PSL) process," Dr Rajan said during the customary post-policy call with analysts.
Rajan drew attention towards the Nachiket Mor committee on PSL and said that the RBI is trying to make the entire process more effective.
"These are necessary changes in the system and should not be seen as tied to the monetary cycles," he added.
Various stakeholders in the system, including banks, have been expressing reservations about the pre-emptions like the SLR and CRR. In the present scenario, banks have to set invest 22% of their deposits in government securities and 4% gets parked as cash reserve ratio (CRR) without any interest payment.
Banks carry out lending on whatever remains, and 40% of the lending as well is mandated to be done to weaker sections of the society under the PSL.
Rajan conceded that Tuesday's 0.50% cut in SLR is not going to have any real impact in the immediate future and added that banks will continue carrying excess SLR for the "foreseeable future".
The cut in the SLR holding requirement, which has the potential to release an additional Rs40,000 crore into the system, offers banks the flexibility to manage their finances better when the credit demand will go up, he said.
"Going forward, we would investigate the conditions in both the credit market as well as the bond market and make appropriate decisions at that point," Rajan said, asserting that banks will continue to be present in the government securities market.
When asked about the limit for foreign institutional investors' investments in government securities, Rajan said the RBI is happy with their renewed interest and also acknowledged their preference for longer maturity debt of over three years.
The Travel Card helps overseas students to pay for application fee, university admission and other course-related fees, hostel fee and day-to-day living expenses, while their parents can reload the card from India
ICICI Bank, the country’s largest private sector lender has launched a travel card which enables students going abroad for higher studies to take care of their expenses.
“The card offers both students and parents a convenient, safe and hassle-free way to manage their education-related expenses abroad. While it helps the students pay for expenses such as application fee, university admission and other course-related fees, hostel fee and day-to-day living expenses, their parents can reload the card from India. Also, the card allows withdrawal from ATMs across the globe in local currency,” the bank said in a statement.
Additionally, card users get the benefit of free comprehensive travel insurance, lost card liability insurance and a replacement card which can be activated easily by calling an international toll-free number in the event of loss/ damage of the primary card.
The unique feature of the card is that it is bundled with membership of the International Student Identity Card (ISIC). ISIC is the only internationally accepted proof of full-time student status and offers 40,000 benefits and discounts at 1.2 lakh merchant outlets across 130 countries.
ICICI Bank Student Travel Card is available in the dollar, pound, euro, Australian dollar and Canadian dollar. It is valid for three years and can be applied for from any foreign exchange-enabled ICICI Bank branch. Anyone, including non-customers, can apply for this card.
Consumers of news have the right to know if a particular piece of content was written, produced and paid for by a particular company, whether it makes them less likely to click on it or not
John Oliver has it right. In eleven minutes, the host of HBO’s Last Week Tonight has summed up the thorny and misleading issues surrounding the ever-expanding world of native advertising, aka branded content and sponsored content.
Oliver called out Buzz Feed –while acknowledging that HBO paid for content to promote his show on the site.
He also pointed to Time Inc. whose CEO said it has eliminated the wall between advertising and editorial and that “its editors will be working for the business side of the equation,” and the New York Times, whose paid-for story on women in prison by Netflix to promote its Orange is the New Black series he acknowledged was well-done.
We here at TINA.org have been keeping a watchful eye on branded content. As a journalist, I know very well the financial pressures facing media organizations who are struggling to survive in a digital frontier where content is often free. I also know from experience that publishers have always, always, faced pressure from advertisers who from time to time would threaten to stop advertising in the publication if it published a story that put the company in a negative light. All this went on behind the scenes but good editors and publications resisted, refusing to kill a story.
Mashable, which engages in native advertising, made note in a tweet about the segment of Oliver’s point that readers don’t like to pay for news.
Maybe so. But readers aren’t to blame. The issue is really simple and falls into the truth in labeling category. Consumers of news have the right to know if a particular piece of content was written, produced and paid for by a particular company, whether it makes them less likely to click on it or not. It is the FTC rule. Editors, writers and media outlets should insist on this.
Thanks John. We couldn’t have said it better ourselves.