Discover and read the best of Twitter Threads about #RBI

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Supreme Court will take up for hearing today petitions challenging the interest component of the RBI's circular on loan moratorium.

Court is considering the aspect of interest levied on interest during the moratorium period.

#SupremeCourt @RBI
In the previous hearing, the #SupremeCourt had pulled up the Centre for failing to make its position on the issue clear.

The moratorium period allowed for by the RBI came to an end yesterday (August 31).

Separate pleas seeking extension of this moratorium period are also likely to be taken up by the Court today.

#SupremeCourt @RBI #moratorium
Read 14 tweets
Anidst the #COVID19 pandemic,the @narendramodi govt came out with a slew of steps to help #MSME sector-- a Rs 40000Cr fund to help distressed units by way of #Equity, Quasi-Equity& #SubordinatedDebt, guaranteed to the tune of 90% by govt's #CGTSME is easing stress!

#Modinomics💪 Image
Read👇 to know about eligibility criteria of #MSMEs that qualify, difference between #SeniorDebt & Subordinate Debt,Intetest Rate that will be charged,etc..

#economy Image
Read 9 tweets
#July #RetailInflation has come@ 6.93% YoY

CPI for April&May,7.22% &6.27%

#Lockdown related supply disruptions led to spike

In hindsight,#RBI's decision not to lower #REPO in Aug meet,stands vindicated

June #CPI revised from 6.09%,to 6.23%&March revised up,from 5.84% to 5.91%
June&March revisions led by revisions in #FoodInflation

For example,revised food inflation in June is 8.72%,Vs earlier figure of 7.87%

#July food inflation@ 9.62% saw a sharp rise,driven by rising meat,fish&vegetable prices

#Rural inflation in July was 7.04%,Vs #Urban@6.84%
Good bit in July inflation number is #FuelInflation@ just 2.8%

#CoreInflation in July,excluding food&energy,is slated to be in 5.8-5.8% range

Core inflation in June was 5%&3.8% in March 2020--Spike in July,gives added reason not to lower #REPO which is at 20 year low,currently
Read 4 tweets
In the next RBI Monetary Policy meeting which is on 6th August it is expected that Repo Rate will be cut by 25-35 bps which should be cut by only 15-20 bps & Reverse Repo should be cut by 25-35 bps.
The main reason behind more Reverse Repo cut for this time will be the Banks which have got more liquidity approximately 10 Lakh Cr. that liquidity should not be again parked at RBI. Also more Reverse Repo cut will make Banks easy for lending in the markets.
But this time RBI should do something different like instead of cutting Repo or Reverse Repo, RBI should cut Standing Deposit Facility. Also the Banks which park money on Reverse Repo Window should not be given any intrest and should be penalised.
Read 5 tweets
1482 #UrbanCooperativeBanks&58 multi State Co-op Banks,to come under #RBI control now💪

#PMCBank crisis was partly due to multi-tier regulation,as seen below

Direct Supervision by RBI is a bold move-@narendramodi govt buries yet another jaded,#NehruvianRelic that fed corruption
Cooperative banks came partially under RBI in 1966 but faced problem of multiple regulation

Registrar of Cooperative Societies(RCS)is in control of management elections& administrative issues

Today's #CabinetApproval to bring #CooperativeBanks under #RBI is,therefore historic💪
Despite changes in 1966,in spirit,most #CooperativeBanks, operated as per Cooperative SocietiesAct,1955

#BankNationalisation in 1969,by #IndiraGandhi,compounded the banking-bureaucracy-politico,nexus

It took a @narendramodi,to finally rid #CooperativeBanks,from greedy #Babudom
Read 7 tweets

A Justice Ashok Bhushan led bench of the Supreme Court hears the plea seeking relief from the interest payable on the moratorium offered on loans by the @RBI

SG Mehta: These loanees need not be small time loans. It can be 500 crores to 2000 crores.
J Shah: Not necessarily

J Bhushan: You can't have such distinctions

SG Mehta: Banks are also under obligation to give compound interest to depositors.

J Bhushan: We understand that since you give interest to depositors you will charge the same.

SG Mehta: Moratorium only means deferment.

J Bhushan: You are saying that payment of 1 lakh is deferred. But you cannot charge interest on this 1 lakh after 3 months.
Read 23 tweets
Filed a complaint against #ICICIBank with #RBI #BankingOmbudsman in Nov. 2019. #ICICIBank provided #fake bills to defend its stand.
I submitted 200+ page docket to defend my stand alongwith all fake bills that #ICICIBank provided. The exact same situation happened with
#CitiBank which also provided the exact same fake bill given by the merchant but after constant follow up accepted its mistake and refunded my transaction amount. #ICICIBank representatives from dispute department accepted that the bills are fake but still refused to resolve
the issue. I followed up with #ICICIBank from January 2019 till October 2019 (for 10 months) through hundreds of calls, emails, personal branch visits across Mumbai offices, meeting 20+ representatives of different departments before putting a complaint with #RBI
Read 6 tweets
#RBI cut by 40bps each of these👇
#Repo rate to 4%
#ReverseRepo to 3.35%
#BankRate to 4.25%

Decision was reached after 5:1 vote,with #ChetanGhate,lone voice calling for 25 bps cut

#MPC meet was held ahead of schedule from 3rd-5th,June

#EMI #moratoroum extended by 3 more months
Moratorium extension till 31st August 2020,is both timely &reflective of @narendramodi govt's alacrity--Big relief to #MiddleClass

Measure to convert #moratorium interest payment into #TermLoan payable in FY21,is helpful

This will reduce #NPAs &stress on banks' balance sheets
#RBI's cut in #Repo will reduce cost of funds&extension of #moratorium will be supportive of financial stability;#Rates across #YieldCurve will move lower from current levels

Fall in #ReverseRepo rate will disincentivise banks from #hoarding #liquidity&coax them to lend

Read 10 tweets
#rbigovernor PC
- MPC voted in 5:1 ratio
- Repo rate reduced by 40bps from 4.4% to 4%
- Reverse repo rate cut to 3.35% from 3.75%
- Global economy headed into recession, with mfg PMI at 11 yr low
- Growth rate of EMs expected to be 2.6% to negative 6%.

#RBI #economy #India
- MPC maintaining accommodating stance till growth revives
- Prodn of most sectors declined rapidly, industrial production shrank by 17%
- Food grain prodn at record, normal monsoon expected
- Kharif sowing higher by 44%, Rabi procurement in full flow
- Farm incomes to improve;
- Merchandise exports plunged 60.3%, imports contracted by 58.6% (worst in many yrs) in Apr
- Reserves increased & at US$487 bn
- Inflation could increase due to supply chain issues; reappraisal of import duties needed
- EM economies expected to face further outflows

Read 6 tweets

What are MSMEs? And why did the #Government set aside ₹3.7Lcr ($49bn) for #MSME support?

As the name suggests, #MSMEs (Micro, Small & Medium Enterprises) are small businesses. Their definition varies by country.

In India, the definition was changed last week.

Previously, MSMEs were defined according to investment in plant/machinery (if they were in #Manufacturing) or investment in equipment (if they were in #Services).

It went like this:

Last Wednesday, @nsitharaman announced a new definition for #MSMEs. Manufacturing & Services were clubbed and a new parameter - annual turnover - was added.

Now it goes like this:

Read 8 tweets
Based on 👇

Land,Labour,Liquidity&Laws that are not isolationist but inclusive

Ease of Doing Business

DBT,JanDhan,Aadhar, Micro Insurance,Ujjwala Yojana, Ayushman Bharat, PM Awaas Yojana,PM FasalBima Yojana,Krishi Sinchai,Swachh Bharat--Key Landmarks
GST,IBC&PSU Bank Recapitalisation in last 6 yrs,have been big reforms

52606Cr given via #DBT to 41Cr #JanDhan holders

Free wheat&rice to 69Cr ration card holders

18000Cr tax refunds given

Free cylinders to 8Cr #Ujjwala holders

#20lakhcrores #COVIDー19
Project DevelopmentCells,working for Promotion of Champion Sectors,in States

#MakeInIndia&Upgradation of Industrial Infra,a success&more will be done to #Decongest economy

3376 SEZs&IndustrialParks with 5 lakhhectares,to be ranked& mapped,in terms of readiness for competition
Read 20 tweets
Gilt MFs - Busting the Trader’s myth

These days many debt MF investors are looking at GILT funds for investment purpose - lets decode the GILT Funds (1/n)

#mutualfunds #gilt #debt
These funds invest in government securities of various maturity periods - thus too less credit risk but factors such as change in interest rate and gsec valuation etc. drive the volatility in NAV of these funds. (2/n)
When Govt of India needs money, the RBI issues fixed-term government securities. These are picked up by the gilt fund manager - he plays on coupon, duration and interest rate outlook. (3/n)
Read 14 tweets
World Vs India !!!
Our handling of Corona was good Vs rest of world. The positive cases, death rates, recovery rates all good. The treatment to the real damage is still unanswered. Remember the world was in lock down and we were also under lock down and now the real test is...
How well we are going to handle economic damage due to this lock down..? The real recovery in the mkt and economy would be purely based on it only. Some eg:-
~ US has recorded 33 mil job losses so far which is approx equal to 10 yr job creation what they have.
~ Their stimulus..
So far is approx 2.7 trillion which is almost equal to India GDP nos.
~ US is printing dollar and may increase it based on the necessity. #Fed has already shown their willingness to inject more liquidity if needed.
~ US will have to bail out more firms in events of failure..
Read 9 tweets
#SupremeCourt bench of Justices NV Ramana, SK Kaul & BR Gavai begins hearing petitions challenging the March 27 notification of the Reserve Bank of India announcing moratorium on loans permitting borrowers to skip EMI from April to June due to #Lockdown in the wake of #Covid19
Justice Kaul: Have the petitioners taken some loan ?

Advocate Shibshankar Saha: This is for the general public

J Ramana-- We are not here to decide whether the scheme is profitable scheme, good scheme, bad scheme. If you're not a borrower ,you don't know anything
J. Kaul: There may be people who have taken loans and who may feel the arrangement is working or not ..kindly do not make balance of litigation into filing such petitions.

J. Ramana: How can you say it's a bad scheme?
Read 9 tweets
RBI has announced Rs 50000 Cr #SpecialLiquidityFacility for #mutualfunds,to ease redemption pressures

#RBI will conduct #Repo operations of 90 days tenor at fixed repo rate

This Special Facility is on-tap,open-ended&will particularly help #DebtSchemes of MFs,witnessing outflows
#SpecialLiquidityFacility for #mutualfunds is available from today,April 27,2020 till May 11, 2020,or up to utilization of allocated amount of Rs 50000Cr whichever is earlier

@narendramodi govt's calibrated approach to calm down frayed nerves,is timely&noteworthy

Funds availed under this facility shall be used by banks solely for meeting #liquidity requirements of #mutualfunds by 👇

Extending loans

Outright purchase of #Repos

Or against collateral of corporate bonds,commercial papers, debentures&certificate of deposits,held by #MFs👍
Read 6 tweets
4 lesser known truths about the big #Facebook #RelianceJio deal:

1. Facebook struggled with regulation for 3 years in trying to launch #WhatsApp Pay bcoz of privacy issues+blocking by high access of PayTM etc. So FB made a deal with the big daddy of Indian companies with access.
2. The recently launched NUE framework by the #RBI is possibly a big end game being targeted by the partnership. This framework allows for parallel payment infrastructure to UPI being set up countrywide. $5.7 bn is cheap for this scale of access & profit…
3. Privacy debate would kick up to the next level, now that whatsapp/facebook data + payment data + telecom data from Jio could be shared. Whatsapp has already cleared the data localization hurdle by setting up servers locally.
Read 4 tweets
Finally, after so much wait, @RBI Governer comes out to provide much needed relief to economy - key announcements thread:

#RBI #economy #rbigovernor
1. Yes, even after all the projections of economic growth slip, India might still stay at the top of global economic growth chart (As per IMF).

2. NBFCs, this time RBI has looked out for you.

TLTRO 2.0 - targeted long term repo operations of INR 50k crore ease the liqudiity issues, specifically for NBFCs.

Read 9 tweets
#rbigovernor Press meet pts:
- MPC advanced its mtg, evaluated macro economic conditions
- Voted for a 75 bps repo rate cut, 4-2 majority
- 5.15% to 4.4%,
- Reverse Repo rate reduced by 90 bps to 4%
- done this imbalanced cut for banks to support lending

#economy #Markets
- Need to support growth considering economic conditions
- Will fight #COVIDー19 with measures available
- RBI is at work and in mission mode, monitoring financial conditions, will provide additional liquidity support
- will work for financial stability

#rbigovernor #RBI
- FY20 GDP estimates given by CSO is at risk 🙄
- To contain intensity, spread of #CoronavirusOutbreak
- FY21 estimates at great risk
- Risk factors: Supply chain disruptions too high, upside growth impulses through fiscal & monetary policies
- Food inflation to soften.
Read 12 tweets
Debt Markets facing lack of buyers: Since 9th March, 1 yr CD rates have gone up by 50 bps, 2-3 yr AAA PSUs yields have gone up by 50-100 bps, blue chip HFCs like HDFC bond yields have gone up by 70-80 bps & 10 yr corp bond yields too by 50 bps
This is a good time to capture higher yields in AAA rated PSU/Corporate Bond schemes following Constantly Rolling Down strategy with longer duration and no #CreditRisks.
When most Central Banks have cut rates aggressively, #RBI has still kept this option in its armoury and only announced liquidity infusion of Rs.1 lac crore thru LTRO.
Read 7 tweets
1. In the back drop of @YESBANK Bank fiasco and total write off of AT1 Bonds issued by them, it is necessary to understand what is AT1 (aka Perpetual Bonds) and what should the Investors expect. This crisis will have far reaching implications for all future AT1 issuances as well
2. What is AT1 Bonds? An AT1 bond constitutes direct, unsecured and subordinated debt in the issuing bank, ranking junior to the claims of all creditors (including all subordinated creditors) and only senior to common equity. Please remember this
3. Total outstanding of all AT1 issuances by all Banks is close to 91,000 crores (including Rs.38,000 crores by Private Sector Banks like ICICI Bank, HDFC Bank, Axis Bank, Yes Bank, etc.). These figures are as of 23-02-2020
Read 15 tweets
Prioritising Equity over AT1 bond holders in #YesBank draft resolution is a first in this country!
In all fairness @RBI is setting up a bad precedent for the bond industry by subverting their rights. Critical takeaways:
1) Scares away a potential source of capital for all banks
2) Existing AT1 holders will start dumping their stock in fear of similar subversion in future as well.
3) This can lead to a potential escalation in yields. Raising Cost of capital in future for other players
4) There have been cases of PSU bank mergers previously as well
But never have AT1 bond holders suffered like this. Even the interest payments were not missed, leave aside capital being eroded.
5) Completely marking down the value to zero and keeping equity at 10Rs is not a legally tenable course of action.
Read 6 tweets
Coronavirus and India - A thread about the distribution and impact of Coronavirus -

Coronavirus, started in China, is now spreading around the world. India is not decoupled with other nations with regards to the spread of Coronavirus.
Let’s see the distribution & impact of this deadly disease -

#CoronaOutbreak #Coronvirus #ItalyCoronavirus #irancoronavirus #indiacoronavirus
Globally, about 3.4% of reported COVID-19 cases have died. By comparison, seasonal flu generally kills far fewer than 1% of those infected. Check out the Virus & Human death rates -

#COVID2019 #swineflu #SARSCoV2
Read 13 tweets
1)Dear PM @narendramodi Ji,

U claim the Armed forces is like family to you, but the #CAGReport tabled in parliament speak a different story

Spend 5 Minutes to think, they Guard our borders 24x7, 365 Days year, so that u can sleep peacefully+…

2) It's unfortunate how the @adgpi is being treated under your rule

The Nation wants to know, Why is defence budgets cut, knowing we can't compromise on the country Security, why there is no money for the Armed Forces, where is all the money going+

@RK_Insight @priyapyadav18
Read 8 tweets
#BSNL started booking net Loss'es post 2008-09.

Who's responsible ?

17-18: -7,993
16-17: -4,793
15-16: -3,880
14-15: -8,234
13-14: -7,020
12-13: -7,884
11-12: -8,851
10-11: -6,384
09-10: -1,822
08-09: +575
07-08: +3,009
06-07: +7,805
05-06: +8,939
04-05: +10,183

#AirIndia started booking net Loss'es post 2005-06.

Who's responsible ?

17-18: -5,338
16-17: -6,282
15-16: -4,311
14-15: -6,280
13-14: -6,280
12-13: -5,490
11-12: -7,560
10-11: -6,865
09-10: -5,552

08-09: -8,439
07-08: -9,236
06-07: -541
05-06: +15
04-05: +96

#HAL's Profit Before Tax (PBT) is consolidated during the years.

How can someone say that Modi ruined 'HAL' ?

18-19: +3,628
17-18: +3,323
16-17: +3,583
15-16: +3,207
14-15: +1,679
13-14: +3,661
12-13: +3,768
11-12: +3,329
10-11: +2,840
09-10: +2,617

Read 7 tweets

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