COVID-impacted Economy, May See Gradual Recovery: RBI Governor
The recovery of the economy reeling from the impact of COVID-19 pandemic will be gradual, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Wednesday.
 
Addressing the FICCI national executive committee meeting, the central bank chief said that the country is still reeling under the impact of COVID-19 and will gradually come back on normal growth path.
 
He, however, said that things have considerably improved in the second quarter after adverse impact the pandemic had on economic activity in the first quarter.
 
Citing World Bank assessment, Mr Das said that recovery globally would take a longer route as it is not fully entrenched.
 
On its part, Mr Das said, RBI has persistently done large liquidity infusion and this has ensured large borrowing by the government at low rate and in non-disruptive manner. The liquidity infusion in other sectors have also worked well.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    soundararajanmk

    1 week ago

    SEBI is fully correct in capping large cap investment in their Multi-cap Funds. The dividend yield is very low and price to book value is very high in respect of large cap stocks, compared to mid cap shares. The abnormal investment in the investment of large caps is only causing violent fluctuation in stock prices besides violent volatility. It is nothing but authorised gambling at the cost of mid cap shares whose dividend yield is excellent besides the fact that their market price is very cheap compared to their book value. The orders of SEBI will now ensure fair trading and protect long time investors bringing faith in the stock market.

    Complete automation of NPA recognition by 30 June 2021: RBI
    The Reserve Bank of India (RBI) on Monday directed banks to complete the automation of bad loan recognition and asset classification by 30 June 2021.
     
    In a notification, the RBI said that the processes for NPA identification, income recognition, provisioning and generation of related returns in many banks are not yet fully automated.
     
    "Banks are still found to be resorting to manual identification of NPA and also over-riding the system generated asset classification by manual intervention in a routine manner," it said.
     
    "In order to ensure the completeness and integrity of the automated Asset Classification (classification of advances/investments as NPA/NPI and their upgradation), Provisioning calculation and Income Recognition processes, banks are advised to put in place/upgrade their systems to conform to the following guidelines latest by 30 June 2021," the notification said.
     
    As per the guidelines, all borrowal accounts, including temporary overdrafts, irrespective of size, sector or types of limits, shall be covered in the automated IT based system (system) for asset classification, upgradation, and provisioning processes. Bank investments shall also be covered under the system.
     
    Further, asset classification rules shall be configured in the system, in compliance with the regulatory stipulations.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    s5rwav

    2 weeks ago

    On going Project #StopAuction of #DwellingHouse. Banks cannot Auction Dwelling House if the Person has Only One Dwelling House. Housing is Human Rights. RBI Must Stop Such Auctions by the Banks being illegal. I am Babubhai Vaghela from Ahmedabad. Thanks. https://03776497059325704824.googlegroups.com/attach/b52dd85940b8c/20200912_100447.jpg?part=0.1&view=1&vt=ANaJVrGB4ZlDXSA7obqMIZG857a2vFld4yyKaz0TuVjLUlbifXZmx6j_dK4cTN3Yz22geFHKBYlWGAUfuo4oXCI8M_FAoDfv_98Yk0EB-FC3EgjpKoVhKfw

    New banking bill gives RBI powers to restructure co-op banks
    The new Banking Regulation (Amendment) Bill, 2020, introduced by the government on the first day of the Parliament's Monsoon Session, provides the Reserve Bank of India (RBI) powers to restructure cooperative banks.
     
    The Bill was introduced by Finance Minister Nirmala Sitharaman who earlier withdrew the bill introduced in March before Covid-19 disruptions set in.
     
    "Now what we are bringing, after withdrawing that Bill which came in the form of ordinance, is essentially what the Bill of March 2020 had, together with a few things added in such as giving the Reserve Bank a chance to be able to restructure any distressed cooperative banks just in case they are in severe distress," she said while replying to member's question on the bill's withdrawal and then its re-introduction.
     
    The government had introduced a Banking Regulation (Amendment) Bill on March 3 and subsequently an ordinance was promulgated because it was not passed. The government's rationale for the Ordinance was that there was stress in several cooperative banks that may have got enhanced during the period of lockdown.
     
    "As a result of it, it was felt that till we clear the Bill, there should not be a situation where many of the cooperative banks would suffer and, therefore we brought in an ordinance with essential features of the Bill which was tabled in the House in March," Sitharaman said.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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