Skip to main content

Impact of Recent Monetary Review of RBI

Measures: Cut in repo & reverse repo rates by 25 bps

Impact: Though banks are reluctant to cut rates, some will prune their deposit rates within a month; rates for certificate of deposit (CD) were already down on Tuesday. Lending rates could soften at a later stage.



Measures: Payment of interest on savings bank account on a daily product basis, wef April 1, 2010

Impact: Savers will get more out of their savings account and banksā€™ total payout would be much more. So, if an investor parks Rs 2 lakh and withdraws it 2 days later, she will get interest for two days instead of the lowest balance between 10th and 30th of a month.

Measures: Review BPLR system; make credit pricing more transparent

Impact: RBI wants banks to lower the prime lending rate (PLR), so that the interest rate comes down not just for new borrowers but also for existing corporates and individuals (like home and car loan borrowers).



Measures: Up to Rs 1-crore loans against NRI deposits

Impact: Currently, loans up to Rs 20 lakh are allowed against FCNR (dollar) and NRE (rupee) deposits of NRIs. A higher limit may give banks some opportunity to lend in this segment.

Measures: Banks and non-banks to issue prepaid cards

Impact: Such cards are common in other markets. An individual pays the issuer the money, gets a card of that denomination, uses it to buy groceries or pay his phone bill and refills the card by again paying to the card issuer.



Measures: Liberalisation on buyback of FCCBs

Impact: Doubling the buyback amount to $100 million will interest some of the corporates whose FCCBs are trading at steep discounts. Close to 10 large and mid-sized corporates would be interested in such transactions.


Comments

Popular posts from this blog

New Journey!!! - Plannin to write my blog

Well, I m no Amitabh Bachhan, No Aamir Khan, tht ppl will be reading my blog or will be finding it worth reading. All i know is tht i am getting inspired from Ankur to write it. This is my opening post meant to be read for ppl close to me.   Its 10:10pm now, September 25 th 2008 , I have decided to replicate the high flying Blogging concept whilst I know I have the slightest listeners. Holidays have started, No great work to do these days, except getting inclined to TV and gossips, ā€˜Roz ki faaltu baateinā€™ would be the core activity in my list regularly till 5 th October.   Will be missing my college buddies, Its always a dependence tht gets created when you meet the same ppl regularly, The best and worst part of ā€œChhutiyan-Holidaysā€™ is the ā€œending/missing of monotonous routineā€ , on one side I m happy tht this break would end up my daily 9 to 6 college routine and on the same time I will be / already started missing my friends and foes J . Tension mat lo, foes are an import...

Agriculture - Oxygen for manyyyy

Talking on agriculture, About 75% of the Indian population lives in rural areas and about 80% of this population is dependent on agriculture for its livelihood.Agriculture accounts for about 37% of the national income. The development of the rural areas and of agriculture and its allied activities thus becomes vital for the rapid development of the economy as a whole. Agricultural Productivity Even though India occupies the first or second position in the world in several crops in terms of area and production, it's rank in terms of productivity per hectare in the world is 52 for rice, 38 for wheat and much low in several other crops. The productivity of some crops is not only low but also remained stagnant over the years. The yield gap needs to be bridged through an integrated package of technology and agricultural policies to reap the untapped production potential, particularly, in rain-fed and other low productivity areas. What the INDIA INC says abt it? A...

Day #- 3- Blog's real test...

It is generally said tht any thing which is created has to pass thru certain tests... It was the day three for liveankit, the statistics and comments have to say many things, 370 hits , Lot more than yesterdays 186... , Dont worry , today i was xtreeemeeeeelllllllyyyy free, so around 100 hits would be mine....  RESPONSE SEEMS TO BE GOOD , THE STATS SAY SO, But it can be a fluke... any product when launched gets a curiousity response... The Real test has begun now... What matters is conversation, hw many ppl come again to blog? who all are writing comments? whether the blog is solving any purpose?? all these things are yet to tested and tried.. Writing a blog takes a lot from u, specially the time, so it is to be seen tht the blog is actually helpin anyone or it is just makin fun of time, news and designs... Well, i have a new poll too.. Its 09:30 PM IST ,  finally writing the last post of the day,we discussed abt the scenario of rupee depreciation, really a grreattt prob which the coun...