Reserve Bank of India

About Reserve Bank of India (RBI)

The Reserve Bank of India is India's Central Bank and is responsible for the managing the inflow and outflow of money into the system in India. Duvvuri Subbarao took charge as the Governor of Reserve Bank of India (RBI) from Y V Reddy on September 5, 2008. RBI frequently dissiminates statistical information in regard to money flow and reserves amongst others.

Addressing liquidity crisis - 2008-09

The RBI raised interest rates aggressively earlier in 2008 but has later dropped them even more aggressively to counterbalance frozen money markets caused by the collapse of investment bank Lehman Brothers and the global recession that followed. RBI liquidity easing steps has worked to a certain extent that real estate developers have begun giving up to 5 percent discount on existing projects.

On October 24, 2008, the RBI kept the credit policy rates unchanged but has cut its GDP growth estimate for this fiscal to 7.5 - 8.0 per cent. It said inflation will fall to 7% by March 2009. The then Finance Minister Chidambaram said the policy review was on expected lines to manage India's financial stability.

On March 4, 2009, RBI announced a monetary stimulus slashing the rates at which it lends and borrows short-term funds from banks by half a per cent.

On March 27, 09, RBI Governor said that although it is uncertain as to when Indian economy will recover, when it does it will be sharper and quicker than other economies of the world.

In March 09, the RBI gave a directive to the banks to stop charging fee for cash withdrawals using ATM and debit cards issued by other lenders will be implemented from April 1 onwards.

On August 28, 09, RBI it predicted six per cent growth in Real GDP in the current fiscal despite a weak monsoon.

On October 27, 2009, Indian stock markets plunged by more than 380 points, its biggest single day loss in over two months, on frantic selling sparked by RBI quarterly monetary policy review.

RBI's actions in 2010

On July 27, 2010, the RBI raised short term lending or repo rate by 0.25 percentage points to 5.75 per cent.

Reserve Bank of India in News

BMW Financial Services steps up Investment in India
The BMW Group has increased its investment in BMW Financial Services India to 5.3 billion Indian Rupees (US $ 106 million) in 2012 from 2.3 billion Indian Rupees (US $ 50 million) in 2010

Polaris Revenues Register Growth of 29%; Intellect Sales Cross Rs 500 cr mark
Polaris Financial Technology Ltd. (POLS.BO), a leading global Financial Technology company, today announced the fourth quarter and annual results for FY 2011-12. Key Performance Metrics For the year ended 31 March 2012: -- Revenue grew by 29% to Rs. 2052 crore from Rs. 1586 crore; And for the quarter, Revenue grew by 19% Y-o-Y to Rs. 520 crore from Rs

BFC Group Holdings Launches New Retail Network in India
Kingdom of Bahrain based BFC Group Holdings today announced the launch of BFC Forex & Financial Services PVT LTD (BFC Forex) retail network in India, with the inauguration of its first branch and Head Office in Mumbai. BFC Forex is owned by BFC Group Holdings, which was set up in January 2009 when the Islamic Financial Services Group - Bank Alkhair B.S

Government has taken steps to control food inflation: K V Thomas
Minister of State for Consumer Affairs, Food and Public Distribution K V Thomas on Wednesday said the government had taken adequate steps to control spiralling food inflation.

Mukherjee says slowdown may hurt banks' asset quality
A slowdown in India's gross domestic product could impact banks' asset quality, Finance Minister Pranab Mukherjee said on Saturday.

BJP slams government over economic slowdown
Ahead the Budget Session of Parliament, the Bharatiya Janata Party (BJP) on Saturday lashed out at the government for economic slowdown.

BMW Financial Services India Launches BMW Lease for Individuals and Corporate Customers
BMW Financial Services India announced the launch of BMW Lease, the new car leasing programme for individuals and corporate customers. BMW Lease entitles a customer to the JOY of driving a BMW of choice for a fixed period of time in return for a pre-decided lease rental. Mr

RBI launches financial literacy camps in Northeast
Concerned at the slow progress of financial institutions in the northeast, the Reserve Bank of India (RBI) recently launched the second phase of financial outreach programme in the region.

IT freeze of bank accounts led to curtailment of services: Kingfisher Airlines
Kingfisher Airlines on Monday said that the freezing of its bank accounts by income tax authorities had 'severely affected' payment schedules to its staff and this had led to a curtailment in its services.

RBI slashes key interest rates, home and car loans to be cheaper
The Reserve Bank of India on Tuesday announced cuts in its key interest rates.

Sluggish industrial output may call for stern measures, says Pranab Mukherjee
The Union Finance Minister Pranab Mukherjee on Thursday said the industrial output rose at a much slower-than expected 4.1 percent in February, weighed down by a contraction in consumer durables and consumer goods.

India, UK agree to work towards broad based trade and investment agreement
India and UK on Monday agreed to remain fully committed to resolving the remaining issues and work towards concluding a mutually beneficial India-EU Broad based trade and investment agreement at the earliest.

Economic Survey pegs GDP growth at 6.9 percent for 2011-12
The Economic Survey for fiscal 2011-12 which was presented by Union Finance Minister Pranab Mukherjee on Thursday has estimated the Indian economy to grow by 6.9 percent in 2011-12 mainly due to weakening industrial growth.

Diamond and textile industries put forth wishlist for annual Budget
With general budget proposals for fiscal 2012-13 to be announced this week, diamond and textile traders in Gujarat's Surat city expect the government to slash central excise duty and an increase in the tax limit.

RBI cuts CRR by 0.75 percent points
The Reserve Bank of India (RBI) on Friday announced 0.75 percentage points cut in its Cash Reserve Ratio (CRR) in a bid to provide liquidity in the market, which is expected to release Rs 48,000 crores into the economy.

India's economic growth falls to two year low in Quarter 3
India's economic growth rate fell to 6.1 per cent in the third quarter this fiscal, the lowest in over two years.

Usha Thorat underlines role of private sector banks in inclusive banking
Emphasizing the role of private sector banks in the Indian economy, Usha Thorat, the former deputy governor of Reserve Bank of India (RBI), presently Director of the Centre for Advanced Financial Research and Training, said here that old private banks had an important role in the spread of inclusive banking in the country.

Pranab Mukherjee to meet financial regulators today
Finance Minister Pranab Mukherjee is expected to meet top economic regulators, including Reserve Bank of India (RBI) Governor D. Subbarao, Insurance Regulatory and Development Authority (IRDA) Chairman J. Hari Narayan and Securities and Exchange Board of India (SEBI) Chairman U K Sinha in a pre-budget meeting here today to discuss the roadmap ahead for the financial sector.

Sacrifice growth to scale down inflation, says Governor Subbarao
Reserve Bank of India (RBI) Governor D. Subbarao has said that a bit of growth needs to be sacrificed temporarily in order to bring inflation down.

Polaris’ Intellect Wins XCelent Customer Base Award for Asia-Pacific Region
Polaris Financial Technology Ltd. (POLS.BO), a leading global Financial Technology Company, today announced that Celent, a research and consulting firm focused on the application of information technology in the global financial services industry, has awarded Polaris the ‘XCelent Customer Base Award’ for the Asia-Pacific region

Annual food inflation eases to lowest in six years
Union Finance Minister Pranab Mukherjee on Thursday said that annual food inflation eased for a ninth straight week to its lowest in nearly six years in mid-December on improved supplies.

ItzCash and DCB Bank in Association with Visa Launch Freedom Prepaid Card in Mumbai

Fall in rupee value causing loss to jewellers in Jaipur
The fall in the value of rupee in international markets is causing loss to jewellers in Jaipur city.

ACCESS Development Services and HSBC Present Microfinance India Awards 2011
ACCESS Development Services and HSBC Present Microfinance India Awards 2011. The Awards were presented on the inaugural day of the Microfinance India Summit - December 12, 2011

Banking access to villages with over 2000 population by March 2012: RBI Governor
Reserve Bank of India (RBI) Governor Duvvuri Subbarao on Thursday planned to make banking accessible to villages of the country with over 2000 population by March 2012.

Subbarao discusses upgradation of entrepreneur centres with Mamata
The Governor of Reserve Bank of India (RBI), D. Subbarao met West Bengal Chief Minister, Mamata Banerjee regarding the upgradation of entrepreneur centres in the state in Kolkata on Wednesday.

Citi India Honours Individual Enterprise at the Citi Micro Entrepreneur Award, 2011
The 2011 Citi Micro Entrepreneur Awards today recognized nine micro entrepreneurs and a community owned enterprise at a ceremony presided over by Honourable Dr. K. C. Chakrabarty, Deputy Governor, Reserve Bank of India and hosted by Mr Pramit Jhaveri, CEO, Citi India along with the Governing Council Members of the awards program

Commenting on downward inflation trend too premature: Pranab Mukherjee
In the backdrop of signs of easing inflation as per the weekly figures, Union Finance Minister Pranab Mukherjee on Friday said a review of the monetary policy would be done only after monthly inflation figures are announced.

Girija Vyas urges political parties to allow Parliament to function
Congress leader Girija Vyas has urged all political parties to allow functioning of the Parliament during the ongoing Winter Session.

Congress pulls up BJP for disrupting parliamentary proceedings
With the agitated opposition stalling proceedings in both the Houses of Parliament on the second consecutive day on Wednesday, the ruling Congress Party today hit out at the Bharatiya Janata Party (BJP) for disrupting the ongoing Winter Session of Parliament despite repeated assurances from Prime Minister Dr. Manmohan Singh that the government is ready to discuss all issues.

Ahluwalia holds Centre responsible for Parliament logjam
Senior Bharatiya Janata Party (BJP) leader S S Ahluwalia on Wednesday lashed out at the Congress-led United Progressive Alliance (UPA) Government at the Centre for not being able to conduct proceedings in the ongoing Winter Session of Parliament in a peaceful manner.

BJP blames Congress for Parliament logjam
With both Houses of Parliament being adjourned till tomorrow, the Bharatiya Janata Party (BJP) on Wednesday mocked the ruling Congress Party's rigid attitude in perpetually blaming the opposition for disrupting proceedings.

Bihar CM Nitish blames Congress over boycott threat initiative
Bihar Chief Minister Nitish Kumar on Wednesday blamed the country's ruling Congress Party for initiating the tradition of boycotting ministers.

Inflation remains stubbornly high despite government's assurances: Yechury
Communist Party of India (Marxist) lawmaker Sitaram Yechury has said there has been no impact of the Central Government's earlier assurances in Parliament to take action to prevent skyrocketing inflation.

Fall in rupee's value slumps hosiery exports in Punjab
The fall in value of rupee in the international market has dented the hosiery industry in Ludhiana.

RBI keeps rates unchanged in its mid-quarterly monetary policy review
The Reserve Bank of India (RBI) in its mid-quarterly monetary policy review has kept the repo rate and reverse repo rate constant keeping in view the current financial condition of the country.

Food inflation has come down from 9.01 percent to 8 percent: Mukherjee
New Delhi, Dec 1 : Finance Minister, Pranab Mukherjee on Thursday announced that the food price index had risen to 8 percent, the slowest pace in nearly four months, while the fuel price index climbed to 15.53 percent in the year to November 19

Economic growth dips to 6.9 percent: 'It is well below my projections', says Mukherjee
With India's GDP growth falling to 6.9 percent in the quarter that ended in September, slipping below eight percent for the third consecutive quarter, Finance Minister Pranab Mukherjee on Wednesday said the figure has fallen short of government expectations.

Euro zone crisis adversely affecting Indian markets, says Mukherjee
Finance Minister Pranab Mukherjee on Wednesday said that the Euro zone economic crisis was causing volatility in the Indian stock markets.

More effort needed to curb inflation: D. Subbarao
Expressing concern over rising inflation, Reserve Bank of India (RBI) Governor D. Subbarao has said efforts need to be taken to curb it, especially for the benefit of the poorer sections of society.