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Wednesday
July 2019
4:00 AM IST
News Headlines
Sindhu looks to complete unfinished business in Japan        Griezmann says heart with Barca after ugly Atletico exit        Kotak Mahindra Bank Q1 consolidated up 23 pc; standalone net jumps 33 pc to Rs 1,360 cr        Investor wealth plummets over Rs 4 lakh cr in 3 days of market fall        China says Hong Kong protests 'absolutely intolerable'        Britain's May chairs emergency session on seized tanker        SC to hear on Aug 6 plea by Ahmed Patel against Guj HC order on his election to RS        Nadda pulls up Pragya Singh Thakur for her toilet remarks        Chandrayaan-2 illustrates India's determination to scale new frontiers of science: PM        India's second moon mission launched successfully; ISRO takes control of spacecraft        Ramya Haridas to not accept Youth Congress' car gift        ICC ran out of patience with Zimbabwe cricket: Flower        Pragya's latest: Have not become MP to clean toilets        Want to be an Indian superhero in Avengers: Taapsee Pannu        Have been able to achieve balance between commercial and parallel cinema: Sonakshi        Mahershala Ali to star in Marvel's 'Blade' reboot        Sindhu ends runner-up at Indonesian Open        UK car sector accelerates towards electric future        China importers seek to lift tariffs on US farm goods: State media        LIC offers Rs 1.25 lakh cr line of credit by 2024 to fund highway projects: Gadkari        
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Business News
RBI to discuss with govt issuance of sovereign bonds: Das
 
New Delhi: RBI Governor Shaktikanta Das Monday said the central bank will discuss with the government the issuance of overseas sovereign bonds, an instrument that will help reduce dependence on the domestic market for bridging fiscal deficit. The Reserve Bank of India (RBI) issues bonds on behalf of the government as part of the resource mobilisation exercise to fund gap between revenue and expenditure.

Expressing his satisfaction over the government''s move to slash fiscal deficit target, Das said it will help improve investment by the private sector as crowding out impact will be less. After the customary post-budget meeting with Finance Minister Nirmala Sitharaman, he said, "The government has made a budget announcement and we will interact with the government. I am sure the government will have a discussion with the RBI. Whatever we need to discuss with the government, will be discussed internally." Sitharaman in the Budget 2019-20 announced that the government will start raising part of its gross borrowing programme from external markets in foreign currencies.

She added that the country''s sovereign external debt-to-GDP ratio level is among the lowest globally at less than 5 per cent. It is not often that the government taps the foreign markets to raise funds. On the fiscal deficit, Das said the RBI will always be happy if it is maintained. "In this case, fiscal deficit has been improved actually from 3.4 to 3.3 per cent of the GDP. The RBI will be happy mainly because it limits so-called crowding out effect. So, that''s something positive because it gives more space for meeting the private sector borrowing," he said.

Overall, there is fiscal glide path which the government is maintaining in the last five years, he said adding that the government started with a fiscal deficit number of 4.5 per cent. "Now, it has gone down to 3.3. There is a glide path which is being maintained. I think, overall, it will be good for microeconomic situation," he added. The Centre has committed to reduce the fiscal deficit, the gap between total expenditure and revenue, to 3 per cent of the gross domestic product (GDP) by 2020-21, and eliminate the primary deficit as per the Fiscal Responsibility and Budget Management (FRBM) Act.

Primary deficit refers to the deficit left after subtracting interest payments from the fiscal deficit. With regard to additional responsibility given to the central bank for regulating housing finance companies (HFCs), he said it has been given after a lot of deliberation within the government and also with the RBI. "The RBI will do its best to live up to expectations of the additional responsibility which has been given to the RBI and I am quite confident that we will be able to deal with this additional responsibility affectively," he said.

Explaining the power of supervision and regulation vested with two entities, he said it is also the case with regard to cooperative banks. Regulations are made by the RBI and supervision is done by National Bank For Agriculture And Rural Development (NABARD), he said. It is done on the same line as far as HFCs are concerned, he said, adding that regulation will be done by the RBI and supervision by the National Housing Bank. Addressing the RBI''s central board of directors, the finance minister outlined the thinking behind the Union Budget 2019 and the focus areas of the government.

The minister also highlighted the importance of coordination between the RBI and the government. Complimenting the minister on the Budget, the board members made various suggestions for the consideration of the government, the RBI said in a statement. Prior to the minister''s address, the board in its 577th meeting reviewed the current economic situation, global and domestic challenges and various areas of operations of the Reserve Bank of India, as part of its regular proceedings.

"Among other matters, the board finalised the 3-year Medium-Term Strategy document of the Reserve Bank, which covered, inter-alia, its Mission and Vision Statement," it said. Other matters discussed by the board included issues related to currency management and payment systems, it said. The board also approved the RBI''s Budget for the period July 2019-June 2020, it added.


Kotak Mahindra Bank Q1 consolidated up 23 pc; standalone net jumps 33 pc to Rs 1,360 cr
Investor wealth plummets over Rs 4 lakh cr in 3 days of market fall
UK car sector accelerates towards electric future
China importers seek to lift tariffs on US farm goods: State media
LIC offers Rs 1.25 lakh cr line of credit by 2024 to fund highway projects: Gadkari
Air India passengers travelling to UAE can now carry 40 kgs of check-in luggage
Huawei planning major job cuts in US: WSJ
China GDP growth slows to 6.2 pc in second quarter
RBI to come out with mobile app for currency notes identification
Nine of top-10 firms lose Rs 88,609 cr in m-cap
Pak, Afghan resume transit treaty negotiations
Blunt talk needed in country today, Murthy says, cites his spat with Sikka
Gadkari appeals to MSMEs to plant trees
Infosys Q1 net grows 5.2 pc to Rs 3,802 cr; ups revenue guidance to 8.5-10%
Vistara announces international operations; to launch services to Singapore
Zomato partners with TikTok; conducts food drive in 74 cities
Sebi slaps Rs 65 lakh fine on individual for fraudulent trading
HDFC to raise up to Rs 3,000 cr via bonds to augment long-term capital
80 city-centric plans coming soon to make earth green, sky blue again: Javadekar
Parliament passes Aadhaar amendment bill
KERALA NEWS
Ramya Haridas to not accept Youth Congress' car gift
 Thiruvananthapuram: Congress MP from Alathur Ramya Haridas Sunday said she will not accept the car w  
HC pulls up Kerala govt over Munnar encroachments
Student Stabbed at University College: SFI leaders have gone absconding
Ker CM takes a dig at Congress MLAs on quitting spree
INTERNATIONAL NEWS
China says Hong Kong protests 'absolutely intolerable'
 Beijing, Jul 22 (AFP) China reacted furiously on Monday to anti-government protesters vandalising th
Britain's May chairs emergency session on seized tanker
UK finance minister says will quit if Johnson becomes PM
Netanyahu to visit India on Sep 9 to meet PM Modi
NATIONAL NEWS
SC to hear on Aug 6 plea by Ahmed Patel against Guj HC order on his election to RS
 New Delhi, Jul 22 (PTI) The Supreme Court Monday fixed August 6 for hearing the plea of senior Congr
Nadda pulls up Pragya Singh Thakur for her toilet remarks
Chandrayaan-2 illustrates India's determination to scale new frontiers of science: PM
Pragya's latest: Have not become MP to clean toilets
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