Podcast appearances and mentions of india rbi

In this episode of the Current Account podcast, Piyush Shukla speaks with Keki Mistry, former Vice Chairman & CEO of HDFC, and independent director and advisor in various companies on the future of housing finance, economic growth, and the banking sector in India. Mistry shares his insights on the under-penetration of the housing market in India and how the country's demographic trends and government support for housing will drive long-term demand for home loans. He highlights that, despite short-term fluctuations, housing finance will remain strong for decades due to factors such as India's youthful population and its growing middle class.  On the topic of banking, Mistry addresses concerns about capital market investments affecting bank deposits, explaining that the belief that money flowing into capital markets leads to lower bank deposits is completely incorrect. "Take the example of a person buying a share. If I buy a share from you, how do I pay you? I pay you by cheque. You then deposit that cheque into your bank account, which means the money moves from my bank account to yours." He reassures listeners that while people invest in capital markets, the level of deposits in banks remains unaffected.  Furthermore, Mistry discusses the importance of liquidity management by the Reserve Bank of India (RBI), sharing his expectations for future rate cuts. "Personal view is that we will see a rate cut in this April policy," he notes, highlighting the potential impact of inflation and other factors on India's economic policy.  Listen in for a detailed conversation. 

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, February 13, 2025. This is Nelson John, let's get started. Amid India-China geopolitical tensions, China's Fosun Pharmaceutical is in discussions with three global private equity firms to sell its majority stake in the Hyderabad-based Gland Pharma. Fosun currently owns about 51% of Gland Pharma, after initially acquiring a 74% stake for $1.2 billion. They have hired investment banks Morgan Stanley and UBS to assist with the sale. Global private equity firms Blackstone, Brookfield, and Warburg Pincus are interested in buying this stake, valuing the company at nearly $3 billion. Gland Pharma, founded in 1978, specializes in making generic injectable medicines and serves nearly 90 countries, focusing on India and the U.S. markets. In the December quarter, the company reported revenues of ₹1,384 crore and a profit after tax of ₹204.7 crore.The potential sale is expected to trigger an open offer to Gland Pharma's shareholders, with the buyers aiming to own between 60-65% of the company after the transaction. In a major step toward strengthening digital payment security, the Reserve Bank of India (RBI) has proposed additional factor authentication (AFA) for international card-not-present (CNP) transactions. This means Indian consumers will have an extra layer of security when making payments to foreign merchants—just like they already do for domestic transactions.Now you may wonder what prompted this move by the RBI?It's primarily due to Rising Fraud Cases in international transactions involving unauthorized charges on foreign websites with minimal authentication. Now adding AFA will ensure stronger security standards that safeguard Indian cardholders against such risks.   US-based industrial and aerospace giant Honeywell and Greenko founders-led AM Green signed an agreement on Wednesday to collaborate on manufacturing sustainable aviation fuel (SAF) in India from biofuels, including ethanol, methanol, and green hydrogen. Under this agreement, Honeywell's cutting-edge technology will be leveraged to produce SAF from renewable sources, aligning with global efforts to transition toward greener energy solutions. AM Green, a company backed by the founders of renewable energy giant Greenko, will focus on production and scaling operations in India, catering to both domestic and international markets.The companies will assess the feasibility of making SAF in India to reduce the country's oil import dependence, helping shipping companies adopt the low-emission fuel, and aiding aviation companies to meet International Civil Aviation Organisation guidelines for low-carbon fuel replacements. The global aviation industry is under increasing pressure to cut carbon emissions, and SAF has emerged as a key solution. This partnership strengthens India's role in the green energy revolution, supporting global decarbonization goals while reducing reliance on fossil fuels. Over two dozen Indian startups are expected to go public in the coming months, including big names like Groww, Lenskart, and Zepto, which could see billion-dollar IPOs. Smaller companies like Ather Energy, BoAt, Bluestone, Infra.market, PhysicsWallah, PayU, and Pine Labs are also gearing up for their stock market debuts. This is a jump from last year when only 13 startups, including Swiggy, Ola Electric, and FirstCry, went public. However, market conditions are getting tougher. Investment bankers say startups might need to adjust their IPO sizes and valuations due to recent global economic shifts. The US stock market has been hit hard after President Donald Trump announced new tariffs, leading to uncertainty in global equity markets. India's Nifty 50 index is down 12.5% from its peak last September, with foreign investors selling off shares. Amid tough market conditions and lock-in expiries those looking to invest in upcoming IPOs could also be staring at losses in the short term      At the Maha Kumbh Mela, India's largest spiritual gathering, several startups are seizing the opportunity to engage with the vast influx of pilgrims. Zomato-owned Blinkit has set up a temporary store offering ritual-related items and other essentials. Swiggy's Instamart has established a stall near the Triveni Sangam to serve attendees. PhonePe, in collaboration with ICICI Lombard General Insurance, is providing affordable travel insurance plans tailored for Kumbh visitors. Chai Point has deployed around 175 personnel and 18-20 mini stations, utilizing brewing bots capable of producing 15 liters of tea every 12 minutes, resulting in daily sales of approximately 160,000 cups reports Peiyamvada C. Now these initiatives not only cater to the immediate needs of pilgrims but also serve as strategic moves for brand visibility and customer acquisition. By adjusting pricing and packaging, these startups aim to connect with a broader audience beyond their typical urban clientele, gathering valuable insights for future expansions.

In this episode, author and journalist Puja Mehra speaks to economist Rathin Roy about India's exchange rate policy and its intricate connections with foreign reserves, FDI/FII trends, and the role of the Reserve Bank of India (RBI). Economist Dr. Rathin Roy shares his candid insights on how India's foreign exchange reserves are shaped, the implications of private sector borrowing abroad, and whether the rupee's stability is a result of strategic RBI intervention or unintended consequences of policy oversights. Tune in for a discussion that explores the dynamics of the rupee, the independence of the RBI, and the broader implications of exchange rate management. ABOUT RATHIN ROY Rathin Roy was the Director and CEO of the National Institute of Public Finance and Policy (NIPFP) in New Delhi. He has previously worked as an Economic Diplomat and Policy Advisor at the United Nations Development Programme (UNDP), with postings in London, New York, Kathmandu and Brasilia. He has also served as an Economic Adviser with the Thirteenth Finance Commission, New Delhi, in the rank of Joint Secretary to the Government of India. He was part of the Prime Minister's Economic Advisory Council and was a member of the last pay commission that recommended pay hikes for central government employees as well as being a member of the selection panels that chose the two governors of the RBI. His policy interests and research has mainly focused on fiscal and macroeconomic issues pertinent to human development in developing and emerging economies. For more of our coverage check out ⁠⁠⁠⁠⁠⁠⁠⁠thecore.in⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠Subscribe to our Newsletter⁠⁠⁠⁠⁠⁠⁠⁠ Follow us on:⁠⁠⁠⁠⁠⁠⁠⁠Twitter⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠Instagram⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠Facebook⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠Linkedin⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠Youtube

Welcome to CNBC-TV18's Marketbuzz Podcast. Here are all top news from around the world ahead of the trading session of December 3 -On Monday, the markets started the week on a positive note ending in the green for the second consecutive day. The session opened weak due to disappointing GDP data but recovered as select heavyweight stocks across sectors gained momentum, driven by optimism over potential measures from the Reserve Bank of India (RBI) to support the economy in its upcoming MPC meeting. Broader market outperformed with both midcap and smallcap indices gaining more than 1% each. -Nifty, meanwhile, climbed back to 24,250, led by Reliance Industries, Infosys and HDFC Bank. If the index sustains above 24,350, the index is expected to form higher highs and higher lows on the hourly chart, maintaining a positive short-term trend. -Foreign institutions remained net sellers in the cash market on Monday, while domestic institutions were net buyers. -Nagaraj Shetti of HDFC Securities believes the short term trend of Nifty remains positive. A sharp upside breakout is expected above 24,350-24,400 levels in the next couple of sessions.  -Going ahead, Siddhartha Khemka of Motilal Oswal expects EV sector to be in focus after reports stated that the government is likely to evaluate a ₹9,000-crore initiative to boost the production of key battery components in India. -For today, GIFT Nifty was flat this morning, indicating a muted start for the Indian market.  -Stocks to watch: BPCL, Coal India, Cipla, KPI Green, Torrent Power, Solar Industries, KEC International, Muthoot Capital  -Global cues: Asian shares rose to follow the upbeat tone on Wall Street where a rally in the world's largest technology companies drove stocks to fresh all-time highs. Equity benchmarks gained in Japan, South Korea and Australia. Hong Kong and US futures were steady. The moves came after the S&P 500 notched its 54th closing record this year on Monday, and the tech-heavy Nasdaq 100 rose more than 1%.  -Oil edged higher as traders watched for clues on OPEC+'s supply plans ahead of a key meeting this Thursday. Gold was steady, staying within a narrow trading range where it's been for the past week. Tune in to Marketbuzz Podcast for more cues

This is the Catchup on 3 Things by The Indian Express and I'm Flora Swain.Today is the 4th of November and here are the headlines.A tragic accident occurred in Uttarakhand's Almora, where at least 36 people died when a bus carrying 42 passengers lost control and fell into a gorge near Marchula. The bus was traveling from Kirath of Nainidanda to Ramnagar when it went off the road. Initial reports indicate that the crash was so severe that several passengers were thrown from the vehicle. Rescue operations are ongoing, and officials warn that the death toll may rise as efforts continue.In a dramatic session of the Jammu and Kashmir Assembly, lawmakers engaged in a heated debate as it convened for the first time in six years. The discussion was ignited by People's Democratic Party (PDP) legislator Waheed Para, who proposed a resolution opposing the abrogation of Article 370. In response, the Council of Ministers called for restoring statehood, reflecting public sentiment. Lieutenant Governor Manoj Sinha assured members that the government would do everything possible to restore the state's status.The Mumbai Police are facing a significant issue with over Rs 7 crore in unpaid dues from various government agencies for security services. Data revealed through a Right to Information request shows that at least 14 agencies owe a total of Rs 7,10,67,252 for services rendered over the past seven years. The Income Tax department is the largest defaulter, followed by the Mumbai Metropolitan Region Development Authority (MMRDA) and the Reserve Bank of India (RBI).Leaders of Canada's three major federal parties condemned violent clashes that occurred during a visit by Indian consular officials to a Hindu temple in Brampton. Following the incidents, the High Commission of India expressed disappointment over the disruptions affecting routine consular work. Sikhs for Justice, a banned group advocating for Khalistan, claimed responsibility for the protests against the Indian officials, who were present to offer administrative services, including pension assistance for seniors.As the United States presidential elections approach, the spotlight is on the tight race between Democratic nominee Kamala Harris and Republican candidate Donald Trump. Both candidates plan to hold rallies in Pennsylvania and visit swing states. Recent opinion polls show Harris receiving strong support from female voters, while Trump is gaining traction among Hispanic men. Trump aims for a comeback after his controversial exit in 2020, while Harris seeks to make history as the first woman president.This was the Catch Up on 3 Things by The Indian Express.

04th Sep: Blockchain DXB Podcast

27th Aug: Crypto & Coffee at 8

Tune in to this episode of the Security Token Show where this week Herwig Konings covers the industry leading headlines and market movements, including RWA News from Backed, Fidelity, MUFG, Ripple, Mantra and More. This week Jason Barraza had a chance to sit down with Bruno Winik from eNor Securities and David Henderson from Backed, covering how eNor is listing Backed's tokenized stocks, bonds, and ETFs for Latin American retail investors. Company of the Week - Herwig: Hamilton Lane: https://www.hamiltonlane.com/en-us   = Stay in touch via our Social Media = Kyle: https://www.linkedin.com/in/kylesonlin/  Herwig: https://www.linkedin.com/in/herwigkonings/ Nico: https://www.linkedin.com/in/nicopantelis/  Jason: https://www.linkedin.com/in/jasonbarraza/  Opinion articles, interviews, and more: https://medium.com/security-token-group  Find the video edition of this episode on our Youtube Channel: https://www.youtube.com/@stmtvofficial  The Token Debrief 1. eNor Securities to List Backed's Tokenized Stocks, Bonds, and ETFs for LatAm Retail Investors: https://www.coindesk.com/business/2024/08/13/tokenized-asset-issuer-backed-to-offer-crypto-rwas-in-latam-with-enor-securities/  2. Fidelity Digital Assets Looks at Tokenization with Focus on Treasuries, Credit, and Stablecoins: https://www.theblock.co/post/311266/fidelity-head-of-digital-asset-management-suggests-stablecoins-tokenized-treasurys-and-onchain-credit-may-be-in-the-offing  3. Japanese JV MUFG Morgan Stanley Securities to Tokenize Securities in 2024: https://www.ledgerinsights.com/mufg-morgan-stanley-securities-plans-to-issue-digital-securities-this-year/  4. DBS and Ant International Tokenize Treasuries: https://norbertgehrke.medium.com/dbs-launches-blockchain-powered-treasury-tokens-pilot-with-ant-international-09e266420663  5. Hamilton Lane Launches Secondary Fund VI Feeder on Securitize: https://securitize.io/learn/press/hamilton-lanes-secondary-fund-vi-exclusively-available-on-securitize  6. KfW Taps Boerse Stuttgart for Next Tokenized Bond: Wallet Provision and Private Key Security: https://www.marketsmedia.com/kfw-selects-boerse-stuttgart-digital-for-blockchain-based-digital-bond/  7. Chainlink Data Feeds Enable On-Chain NAV Data for Superstate's USTB Fund, Proof of Reserve Coming Soon: https://www.prnewswire.com/news-releases/superstate-integrates-chainlink-infrastructure-to-enhance-the-transparency-and-utility-of-the-ustb-tokenized-fund-302219852.html?hss_channel=lcp-1506097  8. IX Swap Launches Staking System Through RWA Rewards: https://www.ixswap.io/news/ix-swaps-new-staking-system  9. Novus Aviation Capital to Use MANTRA Blockchain for Aircraft Buying, Financing, and Trading: https://beincrypto.com/mantra-novus-capital-aviation-finance-rwa-tokenization/  10. Update: Ripple Beta Tests RSLUSD Stablecoin Amid SEC Lawsuit Closure: https://cointelegraph.com/news/ripple-begins-testing-rlusd-stablecoin-mainnet  11. Ripple to Onboard $100M in Tokenized Assets Through Archax Partnership: https://www.tronweekly.com/ripple-and-archax-tokenized-assets-on-xrpl/  12. Plug and Play to Launch RWA Accelerator in December 2024, Selects XDC Network: https://www.prnewswire.com/news-releases/plug-and-play-selects-xdc-network-to-launch-an-enterprise-rwa-tokenization-accelerator-302223051.html  13. Nigeria to Tokenize Real Estate for Revenue Boost and Transparency in Land Ownership : https://cointelegraph.com/news/nigerian-state-plans-to-tokenize-real-estate-boost-revenue 14. Reserve Bank of India (RBI) on Tokenized Deposits and CBDC Impact on Deposit Insurance: https://www.ledgerinsights.com/indias-central-bank-the-impact-of-tokenized-deposits-cbdc-on-deposit-insurance/  = Check out our Companies = Security Token Group: http://securitytokengroup.com/   Security Token Advisors: http://www.securitytokenadvisors.com/   Security Token Market: https://stm.co  InvestReady: https://www.investready.com ⏰ TABLE OF CONTENTS ⏰ • 0:16 Introduction • 0:44 STS Interviews: Backed and eNor • 17:49 The Token Debrief • 24:57 Company of The Week: Hamilton Lane

07th Aug: Crypto & Coffee at 8

ASX 200 pushed 38 points higher to 7860 (+0.5%) for a third day of gains. Up 2.1% this week. Today resources took up the running, the Three Amigos of Iron ore kicked higher, BHP up 1.1%, and FMG rallying 1.3%. Gold miners were also in demand on bullion highs, NEM up 2.9% and EVN up 1.8%. Base metals slightly higher 29M up 6.0% with lithium stocks mixed, PLS down 2.9% and MIN down 1.0%. Oil and gas slightly better with WDS up 0.4% and STO rallying 0.4%. Banks pushed a little higher at the close, solidifying recent gains, the Big Bank Basket better at $216.93 (+0.5%). MQG a little better, and Insurers are once again in demand, QBE hitting highs up 0.9%. Industrials generally firm but unexciting. WES managing a kick along up 1.3%, and WOW and COL better. Tech mixed with the All-Tech Index up 0.5%. Healthcare mixed, CSL down 0.2% and RMD up 0.5%. In corporate news, GQG rallied 2.3% on very positive FUM news, 360 fell 6.1% in its US IPO listing, PWR appointed a new CEO. In economic news, we had some household spending data, and the Reserve Bank of India (RBI) kept rates unchanged. Asian markets were weaker, with Japan down 0.1%, HK down 0.7%, and China off 0.3%, with the European market expected to open slightly lower. 10-year yields at 4.23%, and the Aussie dollar edged higher, up 0.1% to 66.72c. Dow and NASDAQ Futures both up 0.2%.Why not sign up for a free trial? Get access to expert market insights and manage your investments with confidence. Ready to invest in yourself? Join the Marcus Today community. 

Scientific Sense ® by Gill Eapen: Prof. Viral Acharya is Professor of Economics in the Department of Finance at New York University Stern School of Business. He was a Resident Scholar at the Federal Reserve Bank of New York and a Deputy Governor at the Reserve Bank of India (RBI) from 2017 to 2019 in charge of Monetary Policy, Financial Markets, Financial Stability, and Research. Please subscribe to this channel: https://www.youtube.com/c/ScientificSense?sub_confirmation=1 --- Send in a voice message: https://podcasters.spotify.com/pod/show/scientificsense/message Support this podcast: https://podcasters.spotify.com/pod/show/scientificsense/support

Dr. Radhakrishnan Pillai is rated as India's No 1 Bestselling Business author. With 17best selling books on Chanakya, starting with all time recording breaking sales of‘Corporate Chanakya' to children series named ‘Chatur Chanakya' he has readersfrom all age groups from across the globe. He is the Founder and Director of Chanakya International Institute of Leadershipstudies (CIILS) at the University of Mumbai. The institute is created with offeringthe worlds first post graduate academic program in Leadership- Masters inleadership science (MA-LS). The research and outcome is helping students andleaders across the globe. He also teaches in various universities and educationalinstitutions as a Visting faculty. He has done over 1000 lecture in institutions likeNational Defence college (NDC), Defence services staff college (DSSC),IndianInstitute of Management (IIM), Indian Institute of Technology (IIT), Indian Instituteof Science (IISc), Reserve Bank of India (RBI), Bombay stock exchange (BSE),National stock exchange (NSE) etc He has been a leadership and strategy advisor to over 500 organisations includingvarious corporations, government and non government (NGO) organisations. Theseinclude - Indian Oil corporation, HPCL, BPCL, Tata group of companies, RelianceIndustries, Aditya Birla group, Mahindra and Mahindra, Indian Army, Navy,Airforce, police academies etc. Many national and international awards has been conferred on him. Some of themincludes - Aavishkar research award (Governor of Maharashtra fellowship),International Yoga day organiser (Government of Chandigadh), Sardar Patelinternational award for contribution to Industrial development, Rotary Internationalaward in the field of education, Lokmat award for best teacher of philosophy, Litofestaward received at the House of Lords (British Parliament) among others. He has been the part of various national and international projects of government ofIndia including - First international Yoga day academic conference organised in USAby Indian council of Cultural Relations (ICCR, New Delhi) and consulate general ofNew York as the chief convenor. Also participated and presented papers in variousconferences and seminars in universities in over 20 countries. Rated as the top 50 Managememt thinkers from India by thinkers50.com he is on amission mode to bring back ancient Indian wisdom in a modern format. https://www.youtube.com/channel/UCjTXaaWsCCM2wWgDBpEvcIg Take a look at Dr. Radhakrishnan Pillai

Hello and welcome to CNBC-TV's Markerbuzz Podcast. Here are all important cues ahead of the trading session of April 2 -Overnight in the US, all three major indexes ended mixed as the benchmark 10-year Treasury yield climbed to 4.319%. Dow Jones Industrial Average lost 0.6%, S&P 500 dipped 0.2% while the tech-heavy Nasdaq Composite rose 0.11%. -Asia-Pacific markets too were mixed this morning, as investors assessed economic data from South Korea and Australia. -Factory activity data from India is due later in the day. Manufacturing activity in China and the U.S. expanded in March for the first time in six months and 1-1/2 years, respectively. Markets viewed this as an indicator of rising oil demand. -Oil prices gained in early Asian trading underpinned by signs of improved demand and escalating Middle East tensions that had sparked a rally in US futures to a five-month high in the previous session. Brent futures for June delivery rose to just under $88 a barrel. -Nifty 50 hit a new high yesterday, negating any bearish views. However, Nifty's struggles above 22,500 and the broader markets convincingly outperforming continue. -Experts say that 22,500 remains a key hurdle for the Nifty and only a decisive close above that can trigger the next leg of the rally. -Foreign investors remained net sellers in the cash market on Monday, while domestic investors continued to remain buyers. -The Indian market is likely to open with minor cuts with an eye on Bank Nifty, which has in the last six sessions gained over 1,200 points. Banking stocks will be in focus through the week as quarterly business updates are reported along with the RBI policy outcome. -The Reserve Bank of India (RBI) will conduct auctions for all central government securities through multiple price-based method from this financial year, nearly three years after it changed its methodology. -Stocks to watch: Vodafone Idea, Bharti Airtel, Reliance, Aditya Birla Fashion, Uno Minda, Hero MotoCorp, TVS Motor, NMDC, CSB Bank, South Indian Bank, Zomato, Infosys, Maruti Suzuki Tune in to the Marketbuzz Podcast for more cues

In today's episode for 8th March 2024, we explain the concept of IPO financing and why the Reserve Bank of India (RBI) has reprimanded JM Financial.

Welcome to CNBC-TV18's Marketbuzz Podcast. Here are all the important cues ahead of March 6 trading session - The Gift Nifty indicated a gap down start for the domestic market as of 7:30. -The last three trading sessions have seen the Nifty continue to trade in a narrow range and remain in consolidation mode. Since the rally on Friday, the index has not exhibited any signs of moving higher towards 22,500 or slipping from their record highs. For now, Nifty seems to be consolidating above 22300. - NBFCs or non-bank lenders continue to be a key focus. After IIFL Finance, now Reserve Bank of India (RBI) has barred JM Financial Products from financing against shares and debentures. Therefore, NBFCs could continue to be under pressure on sentiment overhang.  - Both foreign and domestic investors bought in cash. While DIIs bought ₹1,834 crore, FIIs bought ₹574 crore in the cash market.  -Asia-Pacific markets fell across the board this morning, mirroring a tech slide on Wall Street overnight led by Apple. Apple shares slipped almost 3% in U.S. trading after a report from Counterpoint Research found iPhone sales plunged in China in the first six weeks of 2024. Investors monitored shares of Apple suppliers in Taiwan and South Korea. -Hong Kong's Hang Seng index rebounded from Tuesday's losses to rise 0.26%, while China's CSI 300 index was down 0.18%. Japan's Nikkei 225 dipped 0.37%, falling below the 40,000 mark, while the broad-based Topix edged 0.1% higher.  -U.S. stocks slipped for a second session Tuesday, dragged by steep declines in major tech names such as Apple. The indexes slipped from record high territory. The Nasdaq Composite fell 1.65% as technology stocks fell the most. The Dow Jones Industrial Average lost 1.04% while the S&P 500 fell 1.02%. Meanwhile, the U.S. jobs data is due later this week. -In cryptocurrencies, bitcoin was slightly up but stayed below a record high reached in a volatile overnight session. -Oil has fallen nearly 1% to near $82 per barrel whereas Gold has hit fresh highs amid the risk-off environment.  -Stocks to track: Zomato, JM Financial, Samvardhana Motherson, Havells India, REC Board, Bharti Airtel, Coal India, Wipro, Indiabulls Real Estate, JSW Energy, NHPC and IRCTC.

The Reserve Bank of India (RBI) is introducing ‘programmability' to the e-Rupee! And in today's episode for 13th February 2024, we have to talk about it. This Valentines Day, we are giving away a premium hamper to 1 lucky pair. The hamper comes complete with 2 Apple AirPods Pro (2nd Generation)— one for you and one for your partner. And delicious chocolates to share! To enter the giveaway, check the link https://bit.ly/3ur7Hrm and follow a few easy steps.

In today's episode, we delve deep into the recent actions taken by the Reserve Bank of India (RBI) towards the end of 2023 and the ensuing ripple effects they've set off. The RBI, often the silent architect of our financial landscape, has made strategic manoeuvres that reshape the terrain for banks, non-banking financial companies (NBFCs), and borrowers. Discover how these regulatory shifts could impact financial decisions and the broader economic landscape. From the nuances of risk weights to the implications for personal loan growth, this episode promises to demystify the complex world of financial regulations in a digestible and engaging format. Here is a quick overview of what we talk about: We unpack the RBI's directives regarding risk weights and the restrictions placed on simultaneous lending and investing activities by financial institutions. Dive into how startups offering digital lending products, like CRED and Paytm, are affected and the challenges they face under the new regulations. Explore why your credit card limits might be scrutinised and how conflict of interest rules reshape lending dynamics. Understand why the RBI's focus on Alternative Investment Funds (AIFs) matters and how it impacts investors' portfolios. Debate whether these measures reflect a proportionate response from the RBI and what they suggest about the current state of our economy. Timestamps 00:00 Introduction and Disclaimer 01:34 Deepak demystifies the two new regulations by RBI on Banks and NBFC 05:37 What's the impact of these new regulations? Why should we care? 16:05 Why is RBI more concerned about personal loans? 24:54 Why aren't you positive about the RBI action here? What's wrong with the slowing loan growth? 32:20 If Startups are ready to take the risk, why is RBI stopping them? 45:14 Even after this bull run, why isn't there lending against securities? 52:11 RBI has a new rule prohibiting Banks and NBFCs from evergreening loans through AIFs. 01:03:51 Is this a warning, a sign that the economy is over-heating?

Indian benchmark indices, Sensex and Nifty 50, are likely to start the trading session of November 28 in the green, after Asian stocks edged higher in morning trade. In the previous session, the domestic market ended flat with the Nifty 50 closing below 19,800. All markets have been consolidating for the past few sessions. There has been an absence of major events, moreover, an extended weekend likely kept the range bound momentum. This week, the market might pick up with the GDP data from both the US and India due later this week. In the overnight session, US' Wall Street witnessed a quiet close. Asian stocks edged higher in morning trade while the dollar was at its lowest in three months as investors remained convinced the Federal Reserve was done with its rate-hike cycle and looked ahead to a crucial inflation report later this week. The market will continue to watch out for crude prices that saw some correction with the commodity trading between $79 to $80 per barrel, ahead of the OPEC meeting. The GIFT Nifty indicated a bit of a quiet start with a positive bias. Meanwhile, the Finance Ministry and Reserve Bank of India (RBI) officials are set to meet banks, and payment aggregators later in the day over cyber frauds, sources earlier told CNBC-TV18. The meeting will be chaired by the DFS Secretary. Stocks to watch: Maruti Suzuki, Paytm, Eicher Motors, HDFC Bank, Fortis Healthcare, Raymond, PB Fintech among others Tune in to the Marketbuzz Podcast for more cues

Jio Financial Services is soon to become a Core Investment Company (CIC) from a Non-Banking Financial Company (NBFC). The move comes in response to a directive from the Reserve Bank of India (RBI), which mandated the conversion from a NBFC structure to that of a holding company. In this podcast hosted by Anjana PV, Senior Assistant Editor Hamsini Karthik, shares her insights into the concept of a Core Investment Company, emphasising its role as a holding entity with the primary function of holding various subsidiaries. This structure allows the CIC to efficiently deploy capital to its subsidiaries as needed. The shift for Jio Financial Services involves demerging its diverse verticals -- lending, asset management, insurance, among others -- into separate entities. The decision to convert to a CIC stems from the dissonance between Jio Financial Services' current balance sheet and the typical structure of an NBFC as it lacks the assets and business structure associated with NBFCs. Additionally, its various subsidiaries perform a variety of functions, from payroll, insurance, asset management, to lending, and this does not align with the categories defined for pure-play NBFCs. Hamsini Kartik highlighted that the conversion to a CIC structure could bring more transparency to Jio Financial Services' business model and help enable true value discovery. The company's current valuation has faced challenges due to its unconventional structure, leading to a holding company discount. The move to this model is expected to address this issue, allowing for a more accurate reflection of the value of each subsidiary. The podcast emphasised that while the long-term impact remains uncertain, this move represents a pivotal moment for investors to witness the genuine value of Jio Financial Services' diverse ventures. --- Send in a voice message: https://podcasters.spotify.com/pod/show/business-line/message

Indian benchmark indices, Sensex and Nifty 50, are likely to open higher on November 21, tracking global peers, amid expectations that US interest rates have peaked. India's GIFT Nifty was up 0.31% at 19,803 as of 8:14 am, above the benchmark Nifty 50's November 20 close of 19,694. The previous session was a range bound one but the mid cap index hit a record high crossing 42,000. Though Bank Nifty was flat, financials will continue to be in focus as the Reserve Bank of India (RBI) has tightened norms for consumer credit. Meanwhile, Brent crude is at around $82 per barrel, which would be a slight negative for the year in markets. In terms of the global setup, the US market continued to gain with the NASDAQ hitting a 22-month high. Microsoft was in focus after hitting a fresh 52 week high. This is after Sam Altman has been announced to lead a new AI team at Microsoft. Asian markets too traded largely higher in morning trade. Also, Federal Open Market Committee (FOMC) minutes will be watched out for later in the day. Stocks to watch: ABB India, Titagarh Rail Systems, HDFC Life Insurance, Karnataka Bank, Tata Power and more  Tune in to the Marketbuzz Podcast for more cues

Indian benchmark indices — Sensex and Nifty 50 — are likely to start the trading session of October 6 on a flat note, though it's a key session to watch Reserve Bank of India (RBI) governor Shaktikanta Das is due to announce the bi-monthly Monetary Policy decision at 10 am. While the consensus is that RBI shall keep key interest rates and its withdrawal stance unchanged, the central bank governor's commentary is key to track. The second factor to watch is the September jobs data of the United States. In the overnight session, all indices ended flat but macro indicators moved a bit to tumble lower. Crude prices, meanwhile, are below $84.5 per barrel, 2% down compared to the previous day. It's also down 12% at a fresh five week low. The session of October 6 was a fairly good one for the domestic market, largely steady. Stocks to watch: Bajaj Finance, PB Fintech, Adani Wilmar, Tata Motors, Godrej Consumer Tune in to the Marketbuzz Podcast for more news and cues

Indian benchmark indices — Sensex and Nifty 50 — are likely to open slightly higher on September 29, tracking gains in Asian peers as global markets stabilised from a recent sell-off, while crude prices eased from 10-month highs. India's GIFT Nifty was mostly unchanged at 19,636 points at 8:05 am on the NSE International Exchange. In the trading session on September 28, the markets were unable to sustain gains. The Nifty 50 ended at a nearly one-month closing low on the expiry day with 43 out of 50 stocks closing in the red. However, for September overall, the Nifty 50 was higher by around a percent and a half. The markets in the past few trading sessions seemed to have been weighed down by cues such as higher Brent crude prices, the idea of higher for longer rates, higher yield and dollar, and concerns emerging on China's property market. However, in the overnight session, crude oil prices softened a tad bit and US markets ended higher. Europe also snapped its five-day losing streak. Meanwhile, Asia markets were trading largely higher this morning, implying a rebound. The Reserve Bank of India (RBI) policy is due next week from October 4-6. Tune in to Marketbuzz Podcast for more news and cues ahead of today's session

Home loan borrowers saddled with high interest rates could now find it easier to switch to lenders who offer cheaper loans. Reserve Bank of India (RBI) asked banks and non-banking finance companies (NBFC) to  clearly communicate the impact of any rate change on the EMIs and loan tenure. To understand RBI's stance and the impact on borrowers in detail, Moneycontrol spoke to Vipul Patel, Founder, MortgageWorld, a loan consultancy firm. Listen in

Indian benchmark indices — Sensex and Nifty 50 — are likely to open lower on September 20, Wednesday, tracking global cues. GIFT Nifty was trading at a discount of nearly 100 points from Nifty Futures Monday close, indicating a gap-down start, which indicates the domestic market. In early trade, Asian stocks struggled for headway while 10-year US Treasury yields stood at 16-year highs as surging oil prices drove inflation. In the overnight session, meanwhile, equities on Wall Street closed lower. It must be noted that Indian markets will react to two days of global cues from Monday as well as Tuesday. In two days, US' Dow and Jones has lost a percent and the S and P 500 has slipped a percent while the tech heavy NASDAQ has declined by 1.8 percent. Crude prices hit a high of $95.96 per barrel yesterday and settled below 95 on the count of profit booking, but it's still at a 10-month high, which is a bit of a worry. Among other global cues to track is the Fed decision, due later in the day, which will be crucial. It is likely that there will be no rate change policy this time but the commentary will be very important. In the domestic market, bank stocks will be in focus, especially HDFC Bank. The Reserve Bank of India (RBI) has approved the reappointment of Sashidhar Jagdishan as MD and CEO of the lender till October 26, 2026. The firm also held an analysts meet on Friday where it indicated that HDFC's individual gross NPA ratio stood at 1 percent for the June quarter compared to 0.75 percent in March, while non-individual gross NPA ratio saw a sharp spike from 2.9 percent in March to 6.7 percent in June. Tune in to the Marketbuzz Podcast for more news and cues ahead of today's session

On today's episode, financial journalist Govindraj Ethiraj talks to Peter McGuire, CEO of XM Australia as well as Dr Rashmi Hegde, Executive Vice President, Medical Affairs at GlaxoSmithKline.SHOW NOTES[00:50] India accounted Almost Half of the global real-time payments in 2022: RBI[06:50] Crude prices hit $90 a barrel, fears of $100 sweep the markets.[13:04] Rupee hits an all time low against the dollar, again.[15:43] A vaccine for Shingles leads the way to more vaccines as preventive cures.For more of our coverage check out thecore.inSubscribe to our NewsletterFollow us on:Twitter | Instagram | Facebook | Linkedin | Youtube | Telegram

The markets staged a smart recovery in the last hour of trade on Wednesday and the Nifty 50 managed to reclaim 19,600.  The Nifty gained around 61-odd points, the Nifty Bank slipped, but the midcap index gained.  Foreign institutional investors (FIIs) bought after nine consecutive sessions of selling, which is definitely a positive. FIIs net bought around Rs 644 crore in the cash market on Wednesday, while domestic institutional investors (DIIs) net sold close to around Rs 600-odd crore.  The US markets were definitely weak, so we had the US markets correct. The CPI as well as the initial jobless claims would be two key factors that the Street would be watching out for closely. Asian stocks are lower ahead of the inflation data. Crude has hit the highest level that we have seen since January 27. So the Street will be waiting by for trends on brent crude.  The GIFT Nifty is implying a weak start to today's trading session.  It's definitely going to be the Reserve Bank of India (RBI) policy where rates are expected to be held steady, but do watch out for the commentary from the RBI governor. Today is also the weekly options expiry. And earnings from Hero MotoCorp, Biocon, Alchem Pharma, Pidilite, are expected today.  Tune in to Marketbuzz Podcast for more cues ahead of today's session

Marketbuzz Podcast with Ekta Batra: Sensex and Nifty 50 likely to open marginally higher Indian benchmark indices — Sensex and Nifty 50 — are likely to open marginally higher on August 9 after China's consumer prices logged a smaller-than-expected fall in July, ahead of U.S. inflation data and Reserve Bank of India's (RBI) policy decision due this week. The Indian rupee is expected to struggle at the opening on Wednesday in the wake of the dollar index's move higher on weak risk appetite. The US markets closed lower in the overnight session, with concerns about bank stability capping sentiment. Asian shares were on the defensive after China inflation data confirmed the recovery in the world's second-biggest economy is losing steam. The GIFT Nifty was indicating an implied open off a little bit of a negative bias for the Indian market. Brent is at around $86 per barrel. The markets are likely to now focus on the macros versus micros as the earning season is coming to a close. The US CPI data for July is due to be released on Thursday while India's Reserve Bank of India (RBI) will make the bi-monthly policy announcement on the same day and is likely to hold the current interest rates. Among quarterly results due today are that of Tata Power, Zee Entertainment Enterprises, Abbott India, Berger Paints India, and Bharat Forge among others. Tune in to the Marketbuzz Podcast for more news and cues ahead of today's session

The fintech sector has been buzzing after the Reserve Bank of India (RBI) permitted credit lines on UPI a few months ago. From what we know so far, banks are likely to gain the most out of it.But a credit line-backed UPI product will also change how customers use credit. While they might continue to choose credit cards for high-value purchases, for smaller purchases like groceries and clothes, they could very well start looking at the new product. The whole rewards system which had been helping issuers draw huge numbers of credit-card users, is going to change with it. In fact, it may even come to and end.Tune in.RecommendationThe Indian credit market is ripe for disruption againFree airport lounge access helped sell more credit cards. Now its come to bite banksDaybreak is produced from the newsroom of The Ken, India's first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.

On Thursday, the Reserve Bank of India (RBI) published a circular on something called a First Loss Default Guarantee (FLDG). And in today's episode for June 12th 2023, we tell you everything you need to know about it and why fintech startups are breathing a sigh of relief.

Indian benchmark indices — Sensex and Nifty 50 — are likely to open lower as SGX Nifty indicated a gap-down start for May 31 session. This, is even as the momentum continued for the domestic market as of yesterday. Sensex and Nifty 50 were at fresh five-month highs and the sense is that the indices are just about a percent away from record highs. It seems it's only a matter of time till the market gets there, while the Nifty Bank and midcap index are already at record closing highs. Overall, the earnings season is over. Therefore, the focus is back on global markets. The US markets continue to be in focus on account of the debt ceiling vote while Asia is largely mixed, with China's manufacturing numbers down for the second straight month. It must also be noted that the US jobs report on Friday exceeded 12 out of the times in terms of estimates. So it will be an important indicator in terms of what the Fed could do going forward. Meanwhile, the Reserve Bank of India RBI) meeting starts on June 6 and concludes on June 8. So that will be another key factor to watch out for in the next couple of days. Tune in to Marketbuzz Podcast for more news and cues for today's session

India Policy Watch #1: Silly Season Is Upon UsInsights on issues relevant to India— RSJLate on Friday this week, the RBI issued a circular withdrawing the circulation of ₹2000 denomination banknotes. The RBI clarified that these notes would continue to serve as legal tender, so this isn't another demonetisation. Here's the Indian Express reporting:THE RESERVE Bank of India (RBI) Friday announced the withdrawal of its highest value currency note, Rs 2,000, from circulation, adding that the notes will continue to be legal tender. It said the existing Rs 2,000 notes can be deposited or exchanged in banks until September 30, but set a limit of “Rs 20,000 at a time”.“In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of Rs 2,000 banknotes can be made up to a limit of Rs 20,000 at a time, at any bank starting from May 23,” it said.“To complete the exercise in a time-bound manner and to provide adequate time to the members of the public, all banks shall provide deposit and/ or exchange facility for Rs 2,000 banknotes until September 30, 2023,” the RBI said.The RBI circular and the press note also attempt to make a convincing, logical case for this decision. There appear to be three reasons for doing this.Thanks for reading Anticipating the Unintended! Subscribe for free to receive new posts and support my work.One, the ₹2000 denomination notes seem to have served their useful purpose. They were introduced in November 2016 when the legal tender status of existing ₹500 and ₹1000 banknotes in circulation were withdrawn. Looking back, it appears these were introduced to help re-monetise the economy really quickly, which was under the stress of not having adequate new legal tender banknotes. According to the RBI, after this task of re-monetising was completed, the printing of new ₹2000 banknotes was stopped in 2018-19. Therefore, after 5 years of not printing any new notes, this looks like the right time to take them out of circulation completely.Two, since most of the ₹2000 denomination notes were issued prior to 2017, they have apparently completed the typical lifespan of a banknote which is between 4-5 years. In an ideal system, most of these old notes should have come back to the RBI by now. Further, these notes are not seen to be used for transactions anymore. They seem to be just sitting somewhere out there. So, in pursuance of the ‘clean note policy', the best course of action is to withdraw them from circulation. Lastly, there was also an allusion to the ₹2000 notes being often found by various investigative agencies in their haul of black money or frauds. So, somewhere there is a view that withdrawing these notes would smoke these fraudsters out, who are sitting on piles of this unaccounted-for cash.Now, as students of public policy, we must assess this measure based on its intended objectives, the likely costs of doing it and the unintended consequences that are likely to arise. The first reason—that the ₹2000 banknotes have served their purpose, so it is time we take them out—can be scrutinised further. I don't think it was made clear when they were introduced back in November 2016 that the only reason for doing it was to re-monetise the economy quickly. There's a bit of retrofitting of logic here. Also, the decision to stop printing new ₹2000 notes in 2018-19 has meant the total circulation of these notes has been on a decline. In the last four years, the total value of the ₹2000 notes in circulation has gone down from ₹6.5 trillion (over 30 per cent of notes in circulation by value) to about ₹3.6 trillion (about 10 per cent of total circulation by value). I guess, left to itself, we might have had this number slide to a smaller number, say below, ₹1 trillion in the next 3 years. The same point is relevant for the ‘clean note policy' since these notes would have eventually come back if they were not being used for transactions and were already at the end of their lifetime. So, the question is, did we need to accelerate something that would have followed a natural path to the policy objective that's desired? Would another three years of these notes in circulation have been detrimental to some policy objective? It is not clear. What's clear is there will be another season of ordinary citizens queuing up in front of bank branches that will begin on Monday. It might be argued that there won't be any panic because the regulator has made it clear that these notes will continue to be legal tender. But who will receive these notes for any transactions starting today? These notes are as good as useless, and for anyone who uses them for transactions or has stored them for any legal purpose, the only way is to get them exchanged for those notes that are both legal and usable. There's always a sense of schadenfreude among the middle class that it is the rich who will suffer. As was seen during the demonetisation exercise, the poor suffer equally, if not more. The cost of the logistics of sending all ₹2000 notes back from ATMs and branches to the RBI, replacing them with notes of other denominations, the extra hours spent by people exchanging their notes in batches of ₹20,000 and the additional measures to be taken to check for the provenance of the money that will come into the banking system and the risk of frauds during this process are all additional costs to the system. There should be a more compelling upside to these costs except to argue that these notes have served their purpose.Lastly, on high denomination notes abetting corruption and fraud, there's some data from experiences in other countries that suggest this. However, experience in India has shown after the initial ‘disruption', the system finds a new equilibrium, and things continue as usual. The idea that demonetisation would aid the digital economy and will bring down cash in circulation was compelling at that time. But as seen, over time, cash in the economy continued to rise despite a significant ramp-up in digital transactions, which might have happened anyway because of UPI. There are more fundamental reasons for corruption that need to be addressed than making a case for smaller denomination notes. Anyway, the corruption argument never gets old in India, where everyone assumes that, barring them, everyone else around is corrupt. So, the usual arguments have started surfacing on social media that this will impact a small minority of people, and they anyway need to answer why they were hoarding these high denomination notes. And, there's the political masterstroke argument which suggests this will derail the fundraising ability of the opposition in this election year. I'm not sure if that's supported by data because we had the unusual scenario of almost 100 per cent of the invalidated denomination notes during demonetisation eventually returning to the RBI. Nobody was wiser when that happened. The only upside at the end of this exercise will possibly be with banks that will have a temporary increase in their deposits. The scramble for deposits that was on because of shrinking liquidity will abate for some time. That will possibly help them support loan growth that was dependent on deposit mobilisation. That might not be a bad outcome, but it is a torturous way to get there. But then we like convolutions.In parallel, there was another interesting piece of policy-making going on. The TCS (tax collected at source) on international credit card spending outside of India. Earlier during the week, reports emerged that all such spends will now attract a TCS of 20 per cent which can then be recovered by individuals at the time of filing their annual return. The Indian Express on Tuesday reported:THE CENTRAL Government, in consultation with the Reserve Bank of India, in a late night notification Tuesday amended rules under the Foreign Exchange Management Act, bringing in international credit card spends outside India under the Liberalised Remittance Scheme (LRS). As a consequence, the spending by international credit cards will also attract a higher rate of Tax Collected at Source (TCS) at 20 per cent effective July 1.The notification brings transactions through credit cards outside India under the ambit of the LRS with immediate effect, which enables the higher levy of TCS, as announced in the Budget for 2022-23, from July 1. This is expected to help track high-value overseas transactions and will not apply on the payments for purchase of foreign goods/services from India.Prior to this, the usage of an international credit card to make payments towards meeting expenses during a trip abroad was not covered under the LRS. The spendings through international credit cards were excluded from LRS by way of Rule 7 of the Foreign Exchange Management (Current Account Transaction) Rules, 2000. With the latest notification, Rule 7 has now been omitted, paving way for the inclusion of such spendings under LRS.Now, what could be the reason for this? The Chief Economic Advisor in a column in the Indian Express gave an insight into the thinking:It is a fact that remittances under LRS have increased multi-fold in the last few years, and as per data published by the Reserve Bank of India (RBI), LRS remittances which were Rs 0.9 trillion in FY2019, crossed Rs 2 trillion in FY2023. During FY2023, an interesting trend was noticed in the remittances for deposits, purchase of immovable property, investment in equity/debt, gifts/donations and travel. Remittances under these heads constituted almost 70 per cent of the total, representing a year-on-year growth of 74 per cent. Foreign travel alone was almost Rs 1.1 trillion in FY2023, a three-fold increase from the pre-Covid period. In all of these, payments made through credit cards are not reflected as such payments were not subject to the LRS limit. This is an anomaly that needed to be fixed anyway.We are back to the old Indian argument. There are people who are spending money on their credit cards abroad that's not captured in the LRS limit. We need to know who these people are and what is the amount they are spending. That's fair. It is an information problem that needs to be solved. Find out who are the people spending this and add it back to their LRS eligibility. Better still, increase the LRS limit so that people can spend more freely. We aren't in the 70s that we need to conserve foreign exchange through means that make the lives of ordinary citizens difficult. Why should a tax be applied to an information problem? And it is conceptually fine to say that this tax amount is only deposited with the government during the transaction and can be recovered at the time of filing the annual return. But there are way too many complications at an operational level, including upfront working capital costs. The challenge of tracking international spending, separating corporate and individual purchases and optimising for the overall LRS limit, especially if people have kids studying abroad, will burden individuals. For card companies, it will mean helping customers track this, figuring out all sorts of exception scenarios when a customer cancels a foreign transaction on which a TCS has already been paid or where they default on payment but the card company has already deposited the TCS with the government. Instead of simplifying the tax structure and remittances, the attempt is to complicate things to catch hold of a few exceptions. And those who claim this impacts only 7 per cent of people who have a passport, I can only say why inconvenience even 1 per cent of citizens if there's no compelling motive. Thankfully, some sense seems to have prevailed, and we had a clarification from the finance ministry on Friday. The ministry clarified:Concerns have been raised about the applicability of Tax Collection at Source (TCS) to small transactions under the Liberalized Remittance Scheme (LRS) from July 1, 2023. To avoid any procedural ambiguity, it has been decided that any payments by an individual using their international Debit or Credit cards up to Rs 7 lakh per financial year will be excluded from the LRS limits and hence, will not attract any TCS.Small mercies. But it still doesn't fully do away with an unnecessary measure. India Policy Watch #2: Technological Learning is a Marathon, Not a SprintInsights on issues relevant to India— Pranay KotasthaneElectronics manufacturing is a hot topic nowadays, as it is being seen as a lead indicator of India's improving manufacturing prowess. Not a week goes by without reports on this topic, ranging from the mobile exports clocked every quarter and the difficulties encountered by companies in localising production to the uptake of the Production-linked Incentives (PLI) scheme to encourage production. Broadly speaking, the analyses can be classified into two simple categories: detractive (“hum se naa ho paayega” type) and presumptuous (“Hum jahan khade ho jaate hain line wahi se shuru hoti hain” type). I contend that both kinds of analyses make a common mistake: they don't appreciate a concept of called technological learning. This leads them to reach similar conclusions, albeit through different perspectives.Dodgson, a scholar of innovation, defines technological learning as “the ways firms build and supplement their knowledge-bases about technologies, products and processes, and develop and improve the use of the broad skills of their workforces”. The assumption is that firms build additional capabilities over time as and when they keep getting better at doing relatively simpler tasks, projects, and processes. The detractors of India's nascent electronics manufacturing are quick to point out that Indian manufacturers' high failure rates are a clear indication that India cannot do large-scale manufacturing. For instance, the news report that iPhone casings produced at Tata's Hosur plant had a 50 per cent failure rate, has become an oft-cited datapoint to downplay India's manufacturing capabilities. While such critiques should not be dismissed lightly, it's also important not to overreact. Electronics manufacturing in China faced pretty much the same challenges; in fact, Chinese manufacturers had far lower yields in the initial phases. Technological learning and upgradation happen over time; it is unrealistic to expect immediate success in this field.On the other hand, fervent supporters believe that the Indian government can boost manufacturing output and export competitiveness merely by implementing industrial policies and import substitution measures. In this model, PLI schemes, higher import tariffs, and infant industry protection are necessary and sufficient conditions for building India's electronics manufacturing sector. This line of thinking also ignores technological learning. Indian firms will have to begin with the assembly of imported components necessarily. In fact, we should be willing to digest a decrease in the domestic value added per unit of demand over the next few years, as was the case in China and Viet Nam. As Indian manufacturing achieves global scale, local content addition will increase by default, as firms seek to optimise costs, and employees go on to become local entrepreneurs. The hurry to localise domestic value addition runs at odds with exporting competitiveness, a point that the self-assured are ignoring.And so, both viewpoints are misguided due to their disregard for the role of technological learning in manufacturing development. It is crucial to acknowledge that gaining proficiency in manufacturing takes time. Naushad Forbes Business Standard article explains this process of learning took place in East Asia:Firms like Samsung, Hyundai, LG, TSMC and Acer did not start as global brands. They began with outsourcing, as original equipment manufacturers or OEMs, building manufacturing operations of global scale. They used their demanding buyers as a source of technology that made them world-competitive. But they did not stop there. They invested in R&D, as process innovation, to make manufacturing more efficient. They then offered their buyers products with new and improved design, moving up the scale to own design and manufacture or ODM, claiming a piece of the innovation rents that came from better products.  This required them to invest in substantial product design capabilities, which over time completely outclassed and replaced the design capabilities of their buyers. And, finally, with world-competitive manufacturing and leading-edge product design in place, they made the shift to own brand manufacture or OBM, launching their own brands, going beyond their home market, spreading step by step into the world. This is the story of Samsung in microwaves and semiconductors, LG in TV sets, Hyundai in cars and excavators, TSMC in microprocessors, and Acer in laptops. This OEM to ODM to OBM story is one of continuous learning. It's crucial to bring technological learning back in conversations on India's manufacturing.P.S.: Earlier this week, the government announced another PLI scheme for "laptops, tablets, all-in-one PCs, servers etc.", with a budgetary outlay of ₹17000 crores over six years. If the government appreciated technological learning, it would accompany this PLI with a reduction in customs duties. Competitive exports need competitive imports of intermediate components and equipment. Matsyanyaaya: Launch India-US Trade into Another OrbitBig fish eating small fish = Foreign Policy in action— Pranay KotasthaneAhead of the Indian PM's visit to the US next month, some of us at Takshashila propose an ambitious agenda on the trade front in this document—increase bilateral trade to $500 billion by 2030 and $1 Trillion by 2040.Here're the pathways to achieve this goal:* Expand the existing US-India 2+28 ministerial dialogue: This dialogue currently comprises the Foreign and Defence ministers from both countries. However, to comprehensively address the intricacies of global trade relations, it would be beneficial to transition to a 3+3 format to include both nations' trade and commerce representatives. * Capitalize on the role of states: The economic landscape in India is witnessing a shift towards the states. Various factors that significantly influence business operations, such as land acquisition and law and order, predominantly lie under the jurisdiction of individual states. Owing to India's vast size and diverse nature, different states have fostered their unique strengths and advantages. The trade relations between the two nations can be further enhanced through a partnership where groups of states engage in reciprocal visits each year, bolstering trade ties and fostering mutual growth. * The Trade Policy Forum (TPF) must be held every year. It is the right cadence to ensure disciplined action and follow-through on ambitious goals. The institutional memory of the TPF will work to create continuity. The old adage "we overestimate what can be done in one year and underestimate what can be done in 5 or 10 years" is particularly applicable here. * The organic growth in trade between companies on either side needs only the occasional enablement. Trade in technology services, pharmaceuticals, SaaS, industrial goods and many other sectors can continue. It will benefit from forums like the US-India Business Council (USIBC) that seek to remove frictions in the ordinary conduct of business and shine a light on some sticky areas. * Create plurilateral trade partnerships. Until now, the US and India do not together find themselves in any regional trade partnership. The revived QUAD, with a heavy security focus, will be one such partnership with significant trade implications. The Indo-Pacific Economic Framework (IPEF) proposed this summer is a promising way to advance on a partnership, but the partnership details must be worked out. For the greater good, India and the US will have to work out sticking points in the data & privacy sections of the agreement. There appears to be significant mutual concurrence on tax, anti-corruption and clean energy, the other three pillars of the IPEF agreement. * Trade in high-technology sectors would get a fillip from the two governments setting up specific framework agreements. The new US-India initiative on Critical and Emerging Technologies (iCET) is an example of a framework agreement that could kickstart interaction between government, industry and academia in areas such as artificial intelligence (AI), semiconductors, 5G/6G telecommunications, quantum computing, biotech, deep ocean and space technologies. * In commercial and societal terms, the exchange of people will be the biggest binding factor between the two countries. In the short term, reciprocal visa access and availability should be addressed on a priority basis. In the longer term, both sides should work on Indians being separated from the general pool of "H1" applicants and in a category of their own. Additionally, the thresholds for each country employing citizens of the other should be brought down gradually. [From Narayan Ramachandran et al., “Time to Launch the US-India Trade Relationship into Another Orbit,” Takshashila Policy Advisory 2023-02]HomeWorkReading and listening recommendations on public policy matters* [Article] Anupam Manur on the ₹2,000 note withdrawal in Moneycontrol — “Like a nightmare resulting from a traumatic experience for a person suffering from PTSD, demonetisation came back to haunt the collective consciousness of this country when the Reserve Bank of India (RBI) decided to recall the 2000 rupee note.”* [Podcast] In the next Puliyabaazi, Devashish Dhar talks about cities, urbanisation, working in government, etc. Strongly recommend it to people considering public policy as a career option.* [Articles 1, 2, & 3] Naushad Forbes' series on private R&D and national innovation in Business Standard is a must-read for those interested in technology geopolitics and tech policy. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit publicpolicy.substack.com

06th April: Crypto & Coffee at 8

Fintech is a Big Thing. India is a vast sub-continent. Naveen Bindal, the co–founder of Enkash which is India‘s largest spend management Fintech, joins us to discuss Fintech in India which was one of the first movers in Fintech worldwide and is now by some measures the world's  third largest Fintech marketplace. Naveen started his career some 23 years ago as a developer in a credit card company working on payment processing and with banks. Having been involved in the Indian FinTech space for some 10 years along with his co-founders who each also have two decades in FS and tech under their belts he is well-placed to guide us through its evolution past, present and future. Topics discussed include: why India‘s timezone is 30 minutes out of phase with almost all other countries Naveen's career journey the move from being a dev to being a CEO Naveen learnt how to be an entrepreneur by working with a startup within an existing organisation the principal FinTech hubs in India are Mumbai, Delhi and Bangalore Mumbai is the banking hub of India due to the presence of the Reserve Bank of India,  Bangalore is renowned for its tech talent and New Delhi is an extension of the other two hubs due to its status as the capital Fintechs may start in other cities but almost invariably end up gravitating to one of the big three cities  The Indian fintech industry started to grow following the financial crisis of 2008 and the emergence of e–commerce Payment aggregators, P2P lending, payment gateways, digital marketplaces, prepaid cards, and UPI all emerged between 2010 and 2016 IndiaStack has been hugely influential in Indian Fintech's rapid development it was introduced in 2017-18 to facilitate digitisation and verify the identity of those making transactions Aadhaar was introduced, which provided a unique identifier for every individual, and biometric scans for fingerprint and retina scans were captured the pertinent/ironic etymology of chosing Aadhaar for the state's identification system are privacy concerns an issue in India over a national identification scheme? in 2012, we saw the real growth actually happening where multiple payment instruments, quick checkout experiences sort of emerged, including but not limited to wallets, one-click checkouts, tokenization, and various other faster checkout mechanisms demographically about one billion people in India have access to smartphones with half a billion people living in rural areas around 70 million SMEs exist in India, and between 70–80 billion dollars of volume is processed on UPI each year given the size of the marketplace Indian Fintechs have little reason to expand internationally although different dynamics occur in the pure tech space Consumer payments have been the dominant sector of fintech in India, but insure tech and reg tech are also becoming increasingly prominent reg tech allows fintechs to access the data needed to verify businesses and individuals The Reserve Bank of India (RBI) provides the regulatory framework for fintechs to operate in conjunction with regulated entities embedded finance and open banking will be key areas of disruption in the future in India Enkassh provides a platform for CFOs to automate mundane tasks it has 150 employees and processes between $3.5–4 billion annually for 9000 businesses Enkash is looking for partnerships in other geographies to distribute some of their products And much more

16th March: Crypto & Coffee at 8

First, Indian Express' Sohini Ghosh joins host Shashank Bhargava to talk about the Gujarat government's announcement to set up a committee for the implementation of Uniform Civil Code (UCC). She explains why experts say that this is not a legally sound idea, and why opposition parties in the state have criticised it.Next, Indian Express' Udit Misra tells us about the reasons why the Reserve Bank of India (RBI) has dropped the ball on controlling inflation this year (11:08). And in the end, Indian Express' Shruti Dhapola talks about how Elon Musk plans to change Twitter (20:16).

01st Nov

According to the Reserve Bank of India (RBI), Indians bought property worth $113 million abroad in 2021-22. Akash Puri, director, International Business, India Sotheby's International Realty, says that the trend will continue.

10th Oct

Reliance Capital's resolution has received tepid response as only four firms have made financial bids for the entire company, including its subsidiaries, under the insolvency process. IndusInd, Torrent, Oaktree Capital Management, and B-Right Realestate have submitted bids in the range of just Rs 4,000 crore. When the resolution process began, over 50 firms had submitted Expression of Interest for various assets, but only a handful of bidders were engaged. The bids have to be approved by a lender's committee. Lukewarm response for RCap asset: 1) IndusInd, Torrent, Oaktree Capital Management, and B-Right Realestate placed bids 2) All bids were placed in the range of Rs 4,000 crore. The process for asset sale of debt-ridden Anil Ambani's Reliance Capital had kick-started in November last year, when the Reserve Bank of India (RBI) superseded its board for payment defaults and initiated bankruptcy proceedings. Y Nageshwara Rao was appointed administrator for the corporate insolvency resolution process. After Srei Group's shadow banking arm and DHFL, Reliance Capital is the third NBFC to go under insolvency under IBC. Reliance Capital has a consolidated debt of about Rs 50,000 crore. But to expedite the sale process, the lenders hived off two entities of RCap --- Reliance Commercial Finance and Reliance Home Finance --- into a trust for a separate resolution process. It was done so that the bidders don't deal with debt of these two entities, which is around Rs 25,000 crore. Secured creditors have claimed Rs 22,122 crore and unsecured creditors around Rs 3,212 crore after the company was sent to insolvency. Major lenders include Life Insurance Corporation, YES Bank among others. Reliance Capital's lenders had offered two options to all the bidders. Under the first option, companies had to bid for Reliance Capital as a whole, including its subsidiary companies. Under the option-2, bidders have the freedom to bid separately for individual arms of Reliance Capital. Due to a tepid response from the bidders, the lenders earlier had to extend the timeline for submission of bids and the resolution process several times. The deadline for completion of the corporate insolvency resolution process of the company is November 1, 2022. Reliance Capital's eight businesses were on the block for bidding including general insurance, securities and asset reconstruction businesses. Under the second option, Reliance Capital's general insurance received bids from Piramal Group, Zurich Insurance Group, and Advent International. While, the company's ARC business got bids from Jindal Steel & Power and UV Asset Reconstruction Company, Choice Equity, Global Fincap, and Grand Bhawan have placed bids for other assets of Reliance Capital. Please include the byte: Ashvin Parekh, Managing Director, Ashvin Parekh Advisory Services LLP says, the bids for Reliance Capital assets were on the lower side. Lenders have few options left before approving the bids. But the poor response indicates that lenders are in for massive haircuts. It also showcases bidders' concerns, especially over equity of Reliance General Insurance, held by IDBI Trusteeship on the behalf of Credit Suisse. IDBI Trusteeship has refused to release these shares for the ongoing NCLT led resolution process. The condition to make all-cash bids also proved a hindrance in the resolution process   Mukesh Chand, Senior Counsel, Economic Laws Practice says the committee of creditors will likely negotiate with proposed bidders. CoC will try and work out a best possible resolution plan with the bidders. If viable options don't come out in negotiation process, big haircut is on the cards.  As the bids are placed, the ball is in the lender's court now. They have to take a call on the value of bids and evaluate other options, including negotiating a better deal with the proposed bidders. Whatever may be the case, it is in the creditors' best interest to comple

Prime Minister Narendra Modi has urged citizens to focus on five resolutions to make India a developed nation in the next 25 years. It was the key highlight of the PM's speech which he gave from the ramparts of the Red Fort on the 76th Independence Day on Monday. So, how will the country and its economy have to perform to achieve this ambitious goal by 2047?  He had a penchant for risk-taking, and carried an air of optimism around him. He was a living embodiment of calmness in a volatile market. Prime Minister Narendra Modi led the nation in paying tribute to ace investor Rakesh Jhunjhunwala-- who died at the age of 62 on Sunday. We have a glimpse of the ace investor's journey.   A widely-shared video of Jhunjhunwala says a lot about his indomitable spirit. Bound to a wheelchair and suffering from a serious ailment, Jhunjhunwala couldn't stop himself when someone tuned in famous Bollywood item number Kajrare. He almost leapt out of the chair while dancing. His sudden death has left the entire investor community in a state of shock. Let us now move on to India Inc's struggle with inflation. Companies hiked prices to cushion their margin. But it hit the volumes, especially in the rural markets. With the commodity prices cooling off, will the upcoming quarters be better for India Inc.? Or will global growth risks keep the ride bumpy?  The Reserve Bank of India (RBI) recently disallowed the use of Letters of Comfort (LoC), which may impact loans worth Rs 35,000 crore. So what is this letter of comfort? Find out in our next episode of the podcast.   

When Bitcoin was first invented, many hailed it as the solution to inefficient cross-border remittances. But because of the high fees associated with transactions on the Bitcoin Core network, it has never been able to live up to its full potential.  That's why Kumaraguru Ramanujam has chosen to build on the Bitcoin SV blockchain instead. His application, MoneySwipe, aims to bring down fees for sending money abroad from the current global average of 7 percent to just 1.5 percent.  He explains to Charles Miller on this week's episode of CoinGeek Conversations that the company is aiming to tackle the UK –India remittance corridor first. This makes a lot of sense as India tops the list of countries receiving personal remittances. According to a 2022 World Bank Report, a whopping $83 billion is sent back to the country each year in payments.    Ramanujam's plan is to work with regulators in India to create a cross-border payment solution without high costs. He explains that the Reserve Bank of India (RBI) has set up a regulatory sandbox with the intention of finding companies using blockchain to bring efficiency to the billion-dollar remittance industry.  The sandbox originally opened in 2018, with a company using Hyperledger Fabric selected, but it has now reopened, and Ramanujam is keen to show the RBI the power of Bitcoin SV.  “We first show the regulator that BSV's better than Hyperledger then we show them, okay, yeah, transfer of value can also happen.”  The introduction of an efficient remittance system like this would be a gamechanger for the Indian economy. If costs could be brought down to 1.5 percent, this would mean over $4 billion could be saved and go straight to the recipient, instead of being lost in fees. This would also benefit the government as it would receive more foreign exchange reserves.  “It's a win-win and it's a stated aim of the United Nations' sustainability goals to bring remittances down from 7 percent to 3 percent,” Ramanujam points out.  While the application is powered by the Bitcoin SV blockchain, stablecoins have been enabled so they can be used as a bridge asset, to ensure liquidity and comply with regulation.   The final application, which will be launched by the end of the year, will be informed by how MoneySwipe engages with regulators. The hope is that by working closely with them, the final product will be innovative, relevant, and risk-free.  The focus for now is India and the corridor with the UK, but once this has been developed, he intends to turn his attention to other regulators to create remittance solutions that work with governments across the globe.  Ramanujam believes that being able to show experience working successfully with one regulator will make it easier with others.   "We want to work with the regulator who's open with their policies right now, rather than us telling them this is how things have to be done - so we are looking at countries that are open right now with sandboxes.” 

The Indian government has been working on a plan to trade with Iran in rupees and the first test of this will be the sale of crude oil to India The Iranian government has given permission to the Indian government to use Indian rupees in the payment of crude oil imports from Iran The payment will be carried out through the rupee-rial account This arrangement is expected to be a big boost for the rupee as the Indian rupee will become a recognised global currency The International Monetary Fund (IMF) has also agreed to the USD-free trade with Iran and has given its approval in this regard to the Indian government The rupee-rial account will be a beneficiary of the IMF decision The rupee-rial account was activated by the Reserve Bank of India (RBI) with an aim to facilitate the trade between India and Iran and the opening of the account was a part of the payment mechanism under the India-Iran-Afghanistan Trilateral Agreement on Establishment of International Transport and Transit Corridor The rupee-rial account was expected to be a part of the India-Iran-Afghanistan Agreement on Trade, Transit and Investment The new mechanism is expected to bring down transaction costs, simplify procedures, reduce the turnaround time and reduce the double-payment problem Iran is India's third-largest oil supplier after Iraq and Saudi Arabia In 2013 the India has imported about 5.8 million tonnes of crude oil from Iran The Iranian government wants to increase this to two million barrels per day It is believed that the rupee-rial account could become a part of the payment mechanism for India-Iran crude oil trade The rupee-rial account is expected to bring down the cost of imports and exports between India and Iran https://m.economictimes.com/news/economy/foreign-trade/india-imports-5-82-million-tons-oil-from-iran/articleshow/27536653.cms It is believed that the rupee-rial account will reduce the transaction costs considerably and will also save time as the payment will be made only once The rupee-rial account is expected to further deepen the trade ties between India and Iran Trump sanctions against Iran cut off oil to India. Iran's petroleum  output has increased to I million barrels per day and it is seeking other markets, which were blocked after US imposed sanctions on them. India has been the second biggest buyer of Iranian oil after China before sanctions were imposed in 2019. The bilateral trade between the two countries during 2020-21 was $2.10 billion, a 56%  decline compared to the previous year of $4.80 billion. While India exports rice, tea, sugar and fresh fruits, pharmaceuticals, machinery, jewellery to Iran, imports include dry fruits, chemical glass, semiprecious stone and leather. https://www.newindianexpress.com/nation/2022/jun/09/crude-oil-imports-may-figure-in-india-iran-talks-2463508.amp In the pandemic year 2020-21, over 84 percent of India's petroleum product demand (crude oil and petroleum products) was met with imports. Gross petroleum imports of about 239 million tonnes (MT) of value US$77 billion accounted for over 19 percent of India's total imports in 2020-21. in 2020-21 India sourced crude oil from 42 countries. The top oil exporter to India in 2020-21 was Iraq followed by Saudi Arabia.  Iraq's share in India's imports increased from about 9% in 2009-10 to over 22% in 2020-21. Saudi Arabia's share has remained steady between 17-18% of India's imports over a decade The entry of the USA as India's 4th largest source of oil imports breaks the trend of Saudi Arabia, Iraq, Iran, Kuwait, the UAE, Nigeria, and Venezuela dominating India's top five oil import sources for over two decades. Since 2020, Iran was no longer among the top 20 oil importers to India https://www.orfonline.org/expert-speak/indias-oil-imports/?amp --- Send in a voice message: https://anchor.fm/david-nishimoto/message

04th July

The finance ministry on Monday struck a note of caution about the re-emergence of the twin deficit problem. It was also the first time the government explicitly spoke about the possibility of a fiscal slippage in the current financial year. So have the amber lights started flashing? What is the ground situation like?    The Reserve Bank of India (RBI) has, meanwhile, barred all non-bank prepaid payment instrument (PPI) issuers from loading credit lines-- a move which will impact fintech players. Of late, the central bank has been coming down heavily on fintechs. RBI's 2025 vision document talks about the need to regulate fintechs in the payments space. So what is the road ahead for fintech firms? After the fintech firms, let us move on to telcos. Shares of Vodafone Idea and Bharti Airtel have mostly been in the red for quite some time now. Despite news flow around 5G auction, and digital transformation, the shares have not generated expected returns. Lets delve into the issues denting the sector, and how investors can play the theme. A brief respite from the spell of negative cues gave the markets a reason to cheer -- as Indian equities saw an upward march for the second day running on Tuesday. However, experts are seeing bad days ahead. In a Reserve Bank of India paper, writers allude to the risk of black swan event, saying that it may lead to outflows of Rs 7,80,000 crore from India. So what exactly is black swan event? Listen to this and more in this episode of the podcast.  Watch video

An undisruptive summer coupled with above-normal temperature is expected to bring some respite for consumer durable companies after facing weak demand for the past two years. According to a report by Reserve Bank of India (RBI), confidence among consumers saw a sharp uptick as retail credit surged to 14% in first half of FY22.   Despite fears of Covid's third wave, the demand for consumer durables, too, saw a significant growth at over 69% to Rs 28,409 crore, hitting an all-time high. The air-conditioner business grew by approximately 27% in volume terms and around 38% in value terms in March this year, reports suggest. While metros and urban markets continued to show strong demand, rural and semi-urban areas witnessed moderation. Dealers expect this healthy demand momentum to continue going forward. But there is a catch. Analysts expect rising raw material prices, especially that of aluminum, copper and PVC to weigh on margin of white goods and wire and cable companies in FY23. Rising interest rates are also an overall sentiment dampener, as companies try to pass on the rise in input cost to the consumers. To offset commodity inflation, consumer durable companies took price hike of 5-10% in FY22. But earnings recovery in first half of FY23 depends on how much price hike is passed on to the consumers. According to Pranjul Bhandari, Chief India Economist, HSBC Securities and Capital Markets (India), dividing wholesale price index, or WPI, inflation into input and output prices, only 50 per cent of the input costs over the past six months have been passed on — generally, it's about 80-90 per cent. In this backdrop, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services believes margins of consumer durable firms to remain muted in FY23 as the industry cannot fully pass elevated costs to consumers.   Except Bluestar, shares of consumer durable companies like Crompton Greaves, Voltas, Havells, Orient Electric, Whirpool and V-Guard have been under pressure as they bled from eight per cent up to 21 per cent this year.   In comparison, S&P BSE Consumer Durable index and S&P BSE Sensex tanked over 16 per cent and 10 per cent, respectively, during the same period. Moreover, the sector is sensitive to rising interest rates. With a surprise rate hike of 40 basis points by RBI, consumers are likely to spend less on discretionary items in a cash-strapped economy. Analysts believe that only companies having higher scale and lean cost structure will be able to manage cost inflation better than peers. According to Yesha Shah, Head of Equity Research, Samco Securities, unabated inflation a pain-point and price hikes can eat up demand. She adds, companies are turning to increasing sales to protect margin pressure and consumer durables in a dilemma to protect growth versus margin. Overall, analysts expect 2022 to remain mixed for the industry depending on revival of economic indicators, improvement in supply chain dynamics, and consumer confidence. Lastly, benchmark indices closed lower for fifth straight day yesterday. Both Nifty50 and Sensex tumbled over 2 per cent each. Delhivery IPO was subscribed over 23% on day-2. As regards today, investors' will watch out Q4 results of Tech Mahindra, Escorts and Bandhan Bank.

An undisruptive summer coupled with above-normal temperature is expected to bring some respite for consumer durable companies after facing weak demand for the past two years. According to a report by Reserve Bank of India (RBI), confidence among consumers saw a sharp uptick as retail credit surged to 14% in first half of FY22.   Despite fears of Covid's third wave, the demand for consumer durables, too, saw a significant growth at over 69% to Rs 28,409 crore, hitting an all-time high. The air-conditioner business grew by approximately 27% in volume terms and around 38% in value terms in March this year, reports suggest. While metros and urban markets continued to show strong demand, rural and semi-urban areas witnessed moderation. Dealers expect this healthy demand momentum to continue going forward. But there is a catch. Analysts expect rising raw material prices, especially that of aluminum, copper and PVC to weigh on margin of white goods and wire and cable companies in FY23. Rising interest rates are also an overall sentiment dampener, as companies try to pass on the rise in input cost to the consumers. To offset commodity inflation, consumer durable companies took price hike of 5-10% in FY22. But earnings recovery in first half of FY23 depends on how much price hike is passed on to the consumers. GFX in> “For now, fear of weak demand may be preventing a full pass-through” – Pranjul Bhandari, Chief India Economist, HSBC Securities and Capital Markets (India)   VO4> According to Pranjul Bhandari, Chief India Economist, HSBC Securities and Capital Markets (India), dividing wholesale price index, or WPI, inflation into input and output prices, only 50 per cent of the input costs over the past six months have been passed on — generally, it's about 80-90 per cent. VO/GFX out>   VO5> In this backdrop, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services believes margins of consumer durable firms to remain muted in FY23 as the industry cannot fully pass elevated costs to consumers. Except Bluestar, shares of consumer durable companies like Crompton Greaves, Voltas, Havells, Orient Electric, Whirpool and V-Guard have been under pressure as they bled from eight per cent up to 21 per cent this year.   In comparison, S&P BSE Consumer Durable index and S&P BSE Sensex tanked over 16 per cent and 10 per cent, respectively, during the same period. Moreover, the sector is sensitive to rising interest rates. With a surprise rate hike of 40 basis points by RBI, consumers are likely to spend less on discretionary items in a cash-strapped economy. Analysts believe that only companies having higher scale and lean cost structure will be able to manage cost inflation better than peers.   Overall, analysts expect 2022 to remain mixed for the industry depending on revival of economic indicators, improvement in supply chain dynamics, and consumer confidence. Lastly, benchmark indices closed lower for fifth straight day yesterday. Both Nifty50 and Sensex tumbled over 2 per cent each. Delhivery IPO was subscribed over 23% on day-2. As regards today, investors' will watch out Q4 results of Tech Mahindra, Escorts and Bandhan Bank.  

The National Electronic Funds Transfer or NEFT is a nationwide centralised payment system owned and operated by the Reserve Bank of India (RBI).   The objective of NEFT was to establish an efficient, secure and economical electronic fund transfer system.   NEFT is now available round-the-clock on all days of the year. Before December 2019, NEFT transactions were settled between 8 am to 7 pm on weekdays. And from 8 am to 1 pm on the first and third Saturdays. The system remained unavailable. The electronic system offers near-real-time funds transfer to the beneficiary account and settlement in a secure manner. The RBI does not levy any charges from member banks for NEFT transactions.   On credit to the beneficiary account, the remitter will receive confirmation via SMS or email. Besides funds transfer, NEFT system can be used for payment of credit card dues to the card-issuing banks, payment of loan EMI, inward foreign exchange remittances and more. It is also available for one-way funds transfers from India to Nepal.   But, how does the NEFT system operate? An individual or an organisation willing to transfer funds through NEFT can use the internet or mobile banking facility by initiating the transfer request. The remitter has to provide details of the beneficiary and bank account for the addition of the beneficiary to the internet or mobile banking module.   Following beneficiary addition, the remitter can initiate online NEFT funds transfer by authorising debit to his/her account. Alternatively, the remitter can also visit the bank for initiating NEFT funds transfer. Following this, the originating bank prepares a message and sends the message to its pooling centre, also called the NEFT Service Centre.   The pooling centre forwards the message to the NEFT Clearing Centre, operated by the RBI, to be included for the next available batch.   The Clearing Centre sorts the fund transfer transactions and prepares accounting entries to receive funds from the originating banks and redirect them to the beneficiary banks. Thereafter, remittance messages are forwarded to the beneficiary banks through their pooling centres.   While the RBI has not imposed any limit on the amount that can be remitted through NEFT, banks may place limits based on their own risk perception   The beneficiary banks receive the inward remittance messages from the Clearing Centre and pass on the credit to the beneficiary customers' accounts.   A person having no bank account can remit funds through NEFT to a beneficiary having a bank account. It can be done by depositing cash at the NEFT-enabled branch of any bank. Such cash remittances are, however, restricted to a maximum of Rs 50,000 per transaction.   NEFT presently operates in batches at half-hourly intervals throughout the day. In case of non-availability of NEFT for any reason, appropriate messages are broadcast by RBI to all system participants.   With effect from January 01, 2020, banks have been advised to not levy any charges from their savings bank account holders for NEFT funds transfers initiated online.   The maximum charges for outward transactions at originating banks for other transactions have been prescribed by the RBI.    The remitter and the beneficiary can track the status of NEFT transactions by contacting NEFT Customer Facilitation Centre (CFC) of the bank. The beneficiary customer receives the funds only after final settlement takes place between the banks.   Watch video

NSE-owned IFSC is located in Gujarat's GIFT City, which is India's first International Financial Services Centre (IFSC). Stock exchanges operating in the GIFT City are permitted to offer trading in securities in any currency other than the Indian rupee. From March 3, NSE IFSC launched trading in eight US stocks like Alphabet, Amazon, Tesla, Microsoft and Netflix in the form of unsponsored depositary receipts. It will be later increased to 50 in a phased manner. The trading, clearing, settlement and holding of US Stocks will be under the regulatory structure of IFSC Authority. Currently, the product is under regulatory sandbox for a period of nine months. The number of investors that can be on-boarded during the sandbox testing phase is limited to a maximum of 10,000. Investors will be able to hold the depository receipts in their own demat accounts opened in GIFT City. They will be able to transact on the NSE IFSC platform under the Liberalised Remittance Scheme (LRS) limits prescribed by the Reserve Bank of India (RBI). LRS allows Indian individuals to freely remit funds up to $250,000 outside India in a financial year. An NSE IFSC Receipt is issued by HDFC Bank's International Banking Unit in its capacity as the NSE IFSC Receipts Custodian on the basis of underlying securities issued by a U.S. listed company. The receipts are not sponsored by the underlying companies. They are unsponsored, meaning the receipts are created without the involvement, participation, or consent of such US-listed companies or of the US exchanges on which such underlying securities are listed. The receipts give the holder a proportionate beneficial interest in the underlying security itself. Their issuance is based on the underlying share to IFSC Receipt ratio as defined by the NSE IFSC from time to time. Therefore, an NSE IFSC Receipt represents a fraction of an underlying share, making it affordable for the investor to participate. For instance, one Amazon share that costs about $2900 is converted into 200 IFSC receipts worth about $15 each. The ratio is reviewed from time to time. The receipts are issued and traded in US dollars, and any amount paid by the NSE IFSC Receipts Custodian in connection with the receipts will be paid in US dollars. The underlying securities are held by the US Custodian on the instructions of NSE IFSC Receipts Custodian. The NSE IFSC Receipts are issued by NSE IFSC Receipts Custodian based on the deposit of Underlying shares with the US custodian. One can buy NSE IFSC US Stock the same way they buy other Indian securities. Firstly, the investor has to open a trading and demat account with any of the NSE IFSC registered brokers. Then, they are required to transfer funds from their local bank account to the NSE IFSC-registered broker's bank account. Once the funds reflect in the broker's account, the investor is ready to trade in NSE IFSC US Stocks. All investors would be eligible for corporate actions such as dividend and bonus issues. The settlement of funds and NSE IFSC Receipts wi

The Economic Survey tabled recently has projected a real GDP growth of 8-8.5% in FY23 assuming that oil prices will average $70-$75 per barrel in the next financial year.   But that doesn't seem to be happening. The price of Brent crude oil crossed 96 dollars per barrel on Monday amid fears of a possible Russian invasion of Ukraine, with the US saying such an invasion could be imminent.  However, it dropped to $94 a barrel on Tuesday after Russia's announcement that it is withdrawing some of its troops from the border with Ukraine in a possible de-escalation of tensions between the two countries.  Amid all this, India's retail inflation rate accelerated to 6.01% in January, breaching the upper tolerance limit of the Reserve Bank of India (RBI) after a gap of seven months. And for the 10th month in a row, the wholesale inflation is in double digits, coming in at 12.96% for January. The rural belt was worst hit as the pace of price rise touched 6.12% from 5.36% in December. While in urban areas, it was 5.91% in January, marginally up from 5.90% a month earlier.   According to experts, higher edible oils component pushed food inflation. While clothing and footwear inflation also soared to 8.84% in January, up from 8.3% in December. “When you do inflation projection, you assume a crude price for the whole year, a particular price and a range of prices. If you take $95 a barrel and make a projection for the entire year you will definitely go wrong. It may go up further and come down steeply,” said RBI Governor Shaktikanta Das. Economists have warned that rising oil and food prices pose a risk to inflation. But RBI Governor Shaktikanta Das said the central bank's retail inflation outlook for FY23 was quite “robust”. The RBI has projected average retail inflation of 4.5% in FY23.  Das reiterated that inflation momentum was on a downward slope since and the central bank had taken into account all scenarios. India is vulnerable to fluctuations in oil prices as it depends on imports for more than 80% of its oil needs. Market watchers expect oil marketing companies to effect a sharp hike in petrol and diesel prices in March, once state Assembly elections come to an end.  Fuel prices have remained unchanged for more than three months now despite a sharp uptick in crude prices.   An RBI paper from January said that if a crude price shock hits the Indian economy the Current Account Deficit to GDP ratio will rise sharply irrespective of a higher GDP growth.  And a $10/barrel increase in oil price will raise the inflation by roughly 49 basis points or increase the fiscal deficit by 43 bps as a percentage of GDP if the government decides to absorb the entire oil price shock rather than passing it to the end users. The government is hoping that crude oil prices will come down over the next few months so it won't be forced to cut excise duties to rein in inflation when oil companies pass on higher costs to customers.  Given the Budget has not made any provision for a cut in excise duties in case crude oil prices remain persistently high, both the RBI and the government will find themselves in a tricky situation.  Watch video

The Reserve Bank of India (RBI) kept the key policy rates unchanged in its monetary policy review, surprising most experts who were betting on a reverse repo rate hike. Governor Shaktikanta Das said that the Monetary Policy Committee will continue its growth-supportive stance till there are signs of a durable recovery. What the central bank's status quo mean? After the RBI's status quo on key rates, let us move on to some action in the skies. A swarm of 1,000 India-made drones lit up the night sky with different formations over Vijay Chowk during the Beating Retreat ceremony last month. Just 11 days later, the government on Wednesday put a halt on the import of drones to give a fillip to India's fledgling drone industry. Will this recent move help lift the fortune of nascent drone industry? After the drones, let us see how stock markets reacted after the RBI's review meeting. The domestic equity markets soared yesterday after the RBI's bi-monthly monetary policy struck a dovish tone. The bullish sentiment lifted the Nifty50 a tad above 17,600 and the Sensex near 58,950. While the policy is set to comfort equities and bonds in the near-term, analysts say investors should remain cautious due to huge borrowing starting April 2022, rising global yields and elevated commodity prices. Uninterrupted Internet connectivity is key to trading. Just like our homes and offices, every device hooked to the Internet has its address. And similar to the postal department and courier agencies in the real world, the virtual world has Internet Protocol -- which is responsible for addressing, routing and delivering the online packets of information. But with the huge rise in the number of devices using the Internet, the current version of IP -- which is IPv 4 -- is bursting at the seams. And the world is now switching to IPv6 to accommodate billions of addresses and more. Let us know about IPv6 and more in this episode of the podcast.  Watch video