Daily wrap: RBI cuts rates by 25 bps to 5.75%; no Cauvery water on June 12
RBI to issue on tap licence guidelines on small finance banks in Aug
The Reserve Bank of India (RBI) said on Thursday (June 6) it will come out with guidelines for issuance of licences to small finance banks on tap basis in August 2019 for promoting banking facility for small borrowers and encourage competition. The RBI had given in-principle approval to 10 entities for entering the small finance banking space in September 2015. On tap licensing will enable entities to approach the central bank for obtaining licences for small finance banks on meeting laid-down criteria. Eligible entities would not have to wait for licences as it would be available on-demand basis. The RBI in its statement on developmental and regulatory policies said it was notified in the Guidelines for Licensing of “Payments Banks” and “Small Finance Banks” in the private sector on November 27, 2014. After gaining experience in dealing with these banks, the Reserve Bank will consider on tap licensing of these banks, it said.
RBI relief to crores of RTGS, NEFT users
The Reserve Bank of India’s (RBI’s) move to remove charges levied on Real Time Gross Settlement System (RTGS) and National Electronic Funds Transfer (NEFT) System for fund transfers will benefit at least 21 crore people. The move is expected to bring relief to customers who deal with fund transfers extensively. In April 2019, some 20.34 crore customers carried out NEFT transactions worth ₹20.54 lakh crore, while 1.1 crore people used RTGS transaction to transfer around ₹112 lakh crore. RTGS is meant for large-value instantaneous fund transfers while the NEFT is used for fund transfers up to ₹2 lakh per transaction.
RBI cuts rates by 25 bps to 5.75%, revises GDP growth to 7%
The monetary policy committee (MPC) of the Reserve Bank of India (RBI) on Thursday (June 6) cut rate by 25 basis points to 5.75 per cent. This is the third repo rate cut in a row. The RBI has changed its policy stance to accommodative from neutral. The rate cut was in line with expectations due to the muted growth figure for the last quarter of FY20. As a result, all members of the MCP have voted for the rate cut. RBI Governor, Shaktikanta Das said the any measures will be takes to maintain financial stability. “RBI will not hesitate to take any measure which is required to maintain the financial stability of the system including, short-term, medium-term and long term.”
Pakistan eyes’ Sri Lanka after England. Why they may win?
Pakistan has emerged like a tough competitor in the World Cup 2019 by thrashing their opponents when they shattered their 11-match losing streak against World No. 1 One-Day International team, England. Safaraz Ahmed’s men are now eyeing towards tying Sri Lanka that too had a rough start just like Pakistan. The two nations would fight it out on Friday (June 7). The match is happening in the Country Ground where Australia and Afghanistan got assistance from the pitch which means we can expect the fast bowling units to do well.
No Cauvery water release from Mettur on June 12
Minister of food in Tamil Nadu, R Kamaraj has stated that Cauvery water from the Mettur dam will not be released on June 12. This is the eighth consecutive year that the dam will not be opened on this day. June 12 is the day water is traditionally released from the Mettur dam for farmers in the delta region for the cultivation of ‘kuruvai’, the summer short-term crop. The crops cultivated are predominantly paddy and their fertility heavily depends on Cauvery water released around this month.
TN steps up surveillance measures to combat Nipah virus
After 311 people were placed under observation for Nipah virus in neighbouring Kerala, public health authorities in Tamil Nadu have stepped up surveillance measures in the state. Talking to The Federal, Dr K Kolandasamy, director of public health, Tamil Nadu said surveillance of Acute Encephalitis Syndrome (AES), Influenza-like Illness (ILI) and Acute Febrile Illness is found to be very useful in early detection of cases.
Cabinet committees constitution highlights Shah’s importance
Home Minister Amit Shah figures in all the Cabinet committees constituted by the government, a development that highlights his importance in the second Modi dispensation. While Shah is a member of all the eight committees, details of which were released by the government on Thursday (June 6), Finance Minister Nirmala Sitharaman’s name figured in all but one of them. The government has reconstituted six committees to reflect the changes in the new dispensation and formed two new Cabinet panels to deal with issues like investment, growth, employment and skill development, amid concerns over economic slowdown.
For how long will Nitish Kumar put up with the NDA alliance?
There is hardly any previous instance of a party or a coalition facing an uncertain future barely about a fortnight after posting a resounding win over its rivals. The ruling NDA in Bihar looks to be a perfect example of this. Just see the paradox: Last fortnight, the main topic of discussion in the political circles was that how many ministerial berths the JD-U will get in the Narendra Modi government when Chief Minister Nitish Kumar’s party emerged victorious on 16 of the 17 Lok Sabha seats it had contested. Now, the debate is how long the chief minister will stay with the NDA?
Azim Premji to retire as executive chairman of Wipro; son to take over
IT czar Azim Premji will retire as executive chairman of Wipro with effect from July 30, but will continue to serve on the board as non-executive director and founder chairman, the company said in a statement. His son Rishad Premji, chief strategy officer and a board member, will take over as the executive chairman of the company.
Telangana becomes Congress-mukt, 12 MLAs seek merger with TRS
In a major blow to the Congress in Telangana, 12 of its 19 MLAs met the Assembly Speaker P Srinivas Reddy on Thursday (June 6), seeking to merge with the ruling Telangana Rashtra Samithi (TRS). They had defected to the ruling camp in batches over the last six months. Earlier in the day, a Congress legislator from Tandur constituency Rohith Reddy, quit the party and switched over to the TRS, taking the total number of defectors to 12. With the state Congress president and MLA N Uttam Kumar Reddy resigning from the Assembly following his election to the Lok Sabha from Nalgonda constituency, the opposition party’s strength in the 119-member Assembly came down to 18.
Indians recognise country’s stature in world has risen in last 5 yrs: EAM Jaishankar