New Delhi: Ahead of the Reserve Bank of India's (RBI) mid-quarter review on 16th September, finance minister Pranab Mukherjee today expressed hope that the central bank will take appropriate action to check rising prices, reports PTI.
Although inflation slipped to 8.5% in August according to the new wholesale price index (WPI) series, experts feel the RBI will continue to tighten monetary policy as the rate of price rise is still high.
"The RBI is constantly watching the situation. We are in touch with the RBI. The RBI and the ministry of finance will take appropriate measures at the appropriate time," Mr Mukherjee told reporters here.
The RBI, for the first time, will come out with a mid- quarter economic policy review on September 16.
"The RBI will go in for a rate hike as robust growth in industrial output and healthy economic growth would give the RBI enough cushion to make money expensive," Deloitte principal economist Shanto Ghosh said.
With overall inflation coming in at 8.5% when calculated with 2004-05 prices as the base, economists said the figure is still high and will prompt the RBI to raise its short-term lending (repo) and borrowing (reverse repo) rates.
"I expect RBI to raise repo and reverse repo by 25 basis points (bps) on 16th September. Inflation still remains at elevated level," Axis Bank chief economist Saugata Bhattacharya said.
The RBI has raised interest rates four times this year, upping key policy rates by 100 basis points as it tries to combat high inflation in Asia's third-largest economy.
Experts believe the RBI will further narrow the difference between the repo and reverse repo rate, known as the rate corridor, to check liquidity.
"RBI may adapt a relatively benign approach towards the monetary policy. It is expected that the reverse repo-repo corridor could be further narrowed by the sole hiking of the reverse-repo rate," Kotak AMC CEO Sandesh Kirkire said.
In its first quarter monetary review in July, the central bank had raised short-term lending and borrowing rates by 0.25% and 0.50%, respectively.
Following the increase, the repo rate stands at 5.75% and the reverse repo rate at 4.50%.
Mumbai: The government is seeking global expertise to incorporate more security features in currency notes to combat counterfeiting, reports PTI.
The finance ministry has invited request for information (RFI) from firms to offer security features or technology for future series of bank notes.
It said the interested firms will have to submit their bids by 13th October and those shortlisted would have to make a detailed presentation before a government committee.
"The process for acquisition of security features and/or associated technology in the future series of Indian bank notes shall be done through global request for qualification (RFQ) tender and the shortlisted firms who have been security cleared shall be issued request for proposal (RFP) documents," the ministry said in a circular.
To combat the menace of currency counterfeiting, the government has set up a Directorate of Currency, which will monitor and review the efficacy of the existing security features in currency notes and study the best practices prevailing in other countries.
Incorporation of the latest security features is underway to strengthen the security of bank notes further; minister of state for finance Namo Narain Meena had informed the Parliament in the Monsoon session.
A high-level committee headed by the Union home secretary and comprising officials from central agencies and the police has been constituted to monitor and draw up a comprehensive strategy to combat fake currency, he said.
The government has also nominated the Central Bureau of Investigation (CBI) as the nodal agency to monitor investigation of fake currency note cases.
Rajiv Dube has been appointed as the chairman of the Advertising Standards Council of India (ASCI). Mr Dube is director (group corporate services) at Aditya Birla Management Corporation Pvt Ltd.
Mr Dube was unanimously appointed by ASCI’s board. He has been a member of the board of governors of the council for the past five years. Mr Dube takes charge from Dhananjay Keskar, outgoing ASCI chairman.