The RBI is taking a cautious approach as it sees GDP slowing in the fiscal year 2026/7 to 6.9% from 7.6% amid higher prices as a result of the war in the Middle East.
As oil prices soar, one senior economist argues the currency is "adjusting to a new global equilibrium". Foreign investors pulled over $10bn from Indian shares in March and the RBI is introducing controls on banks' FX positions.
New banking regulations from the Reserve Bank of India are tightening the noose around the constellation of corporate current accounts. Gopul Shah of Golden Agri-Resources speaks to CorporateTreasurer about the ramifications.
The Reserve Bank of India will introduce an ceiling on the amount banks can lend one corporate entity in India, but not the amount one company can borrow. The ceiling could make borrowing above a certain threshold more expensive.
RBI has granted approval to Swift India to private messaging services for domestic banks in India; China and Singapore continue talks on FTA this year; RBI publishes its KYC rules; MAS reviews structuring of credit facilities; and much more.
India’s central bank grants licences for the new category of ‘payments bank’ to enable non-financial corporations to target individuals without bank accounts.
Aug 25, 2015
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To provide more options for currency hedging, India has relaxed several restrictions to facilitate currency derivatives trading in the exchange market for both domestic and foreign participants.
About 25 large Indian corporates are expected to find refinancing challenging after RBI’s ban on external commercial borrowings. Private equity and mezzanine finance could rescue them.
India‘s ban on manufacturing and infrastructure companies' rupee borrowing from offshore Indian bank subsidiaries may raise their funding costs, lawyers say.
Asian nations built stockpiles of foreign reserves during 2013. Will increased FX reserve holdings help against expected volatility and which countries are prepared? CT asks the experts.
The Indian rupee shows signs of stabilising against the US dollar in October. What are the primary reasons for this and is it likely to be sustainable? CT asks the experts.