RBI prods banks to bring in more dollars

Properties of estimators, MVUE, Rao-Blackwell and Lehmann-Scheffe theorems, Cramer-Rao inequality, methods of estimation, properties of maximum likelihood and other estimators, confidence intervals. Overall, there is still uncertainty over whether currency depreciation pressures will persist or wane, but we believe it is time to dust off the policy options. If space is not sufficient for giving full details against any item, separate sheet s may be attached to the Form and serially numbered as Annex. Recently Viewed Your list is empty. Latest Edition Growth And Development: A central bank that borrows to fund reserves may also need to maintain a higher level of gross reserves to guard against this refinancing risk.

Oct 11,  · Note: * - Data related to Mumbai centre ^^^^^- Includes billion rupees of refinance under forex swap ^^^^- Includes billion rupees of refinance under forex swap ^^^ - Includes

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Reliance is the only private sector company in the country that has issued perpetual bonds to foreign investors a few years back. The only other domestic entity to tap the perpetual bond market is the state-run State Bank of India.

According to investment bankers, Reliances repayments from through will be its biggest for any three-year period in the past and include about USD 8. It also has about USD 1. In the June quarter its finance cost jumped more than threefold to Rs crore on an annualised basis. The retail-to-refining giant debt has trebled over the past five years as it invested a whopping USD 37 billion in a telecom venture and to bolster its traditional petrochemicals business which included a pet coke gasification unit and in expanding petrochemicals capacities.

Telecom is still cash burning having sucked in around Rs 22, crore in the June quarter. During the recent AGM, the billionaire owner Ambani, who is the richest Asian, said his vision for the group was to become a consumer company over the next decade. The central bank, in its credit policy, has once gain asked banks to loosen their purse strings and encourage credit expansion as credit growth still remains sluggish.

Adding that transmission of lower policy rates to the credit market is materialising with a lag. RBI also proposes to allow rupee futures contracts in euro, yen and sterling, while stressing the critical need to lower govt borrowing to help sustain moderate rate regime. By continuing to use the site, you agree to the use of cookies. You can find out more by clicking this link. This cookie policy explains how and why cookies and other similar technologies may be stored on and accessed from your device when you use or visit zeenews.

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While these measures do have a protectionist tint, along with recent real effective exchange rate depreciation, they will likely be effective in moderating import growth in the short term, in our view.

Policymakers may contemplate entering into bilateral swap agreements with other countries. The government has liberalised FDI limits in a number of sectors over the years. The authorities could ease norms on external commercial borrowing ECB. The government and the RBI may be inclined to ease these norms to encourage higher capital inflows.

The government could also ask the public sector companies to raise more ECBs during this period. The biggest channel for boosting inflows will be through some form of NRI bond issuance — an option that has been used three times in the recent past: The total amount raised under those three schemes stood at The authorities may shun this option as the first line of defence because it adds to external debt, but if the rupee continues to depreciate, we believe this option will likely be activated and will be effective in plugging the funding gap.

Measures to curb capital outflows We see this as the least likely option that will only be contemplated under extreme circumstances. Limit on outward remittances by residents: Restrictions could also be imposed on the purchase of immovable property outside India. Limit on outward direct investment: Because of the stigma attached to this option, we do not expect the Indian authorities to choose the option of imposing capital controls or tax foreign investment already in India impose the tax if foreign investment is taken out within one year, for example.

Overall, there is still uncertainty over whether currency depreciation pressures will persist or wane, but we believe it is time to dust off the policy options. The order in which these options are chosen will depend on a cost-benefit analysis of each option, the potency of each tool and the extent of currency pressure. We believe that currency pressures are not yet sufficiently strong to trigger either a rate hike or an NRI bond issuance, but if it were, rate hikes will likely be used first.

Your email address will not be published. Even as rate hikes may become necessary at some point, we are sceptical of their efficacy as the first line of defence owing to: Corporate and bank balance sheets are still stressed and the former is more sensitive to interest rates than exchange rates, owing to less dollar borrowing.

As such, rate hikes could also backfire.

RBI extends special forex window for banks

Sep 11,  · Note: * - Data related to Mumbai centre @@@@ - Includes billion rupees of refinance under forex swap @@@ - Includes billion rupees of refinance under forex swap @@ - Includes of which (i) Special Refinance Facility^ (ii) Refinance under the forex swap ~ 5, RESERVE POSITION @ F. Cash Reserves Position of Scheduled Commercial Banks (i) Cash balances with RBI as on # 22/02/ , Sep 13,  · Sept 13 (Reuters) - Date *LIQUIDITY SUPPORT OUTSTANDING (in billion rupees) 12/[email protected]@@@ 11/[email protected]@@@ 10/[email protected]@@@