The RBI could also suggest large NBFCs be required maintain a cash reserve ratio.
The Reserve Bank of India is likely to propose stricter regulatory norms for shadow banks in a bid to strengthen solvency and sustainability of a sector that has been showing signs of stress in recent years, two sources said. RBI began trying to move towards tighter norms for the sector after Infrastructure Leasing & Financial Services, the largest NBFC, went bankrupt in 2018, and Dewan Housing Finance Corp and Altico Capital defaulted on payments in 2019. The RBI is expected to set out its proposals in a discussion paper next week and recommend that bigger non-banking finance companies (NBFCs), or shadow banks, maintain a statutory liquidity ratio (SLR), the sources said.
The RBI is expected to set out proposals in a discussion paper next week, recommending that bigger shadow banks maintain a statutory liquidity ratio, the sources said.
January 15, 2021
KARACHI: The government on Thursday raised Rs75.439 billion through the auction of five-year fixed and variable rental rates Government of Pakistan Ijara Sukuk, in a bid to help finance the budget deficit.
The government raised Rs67.189 billion via the auction of Ijara Sukuk (variable), while the amount realised through fixed rental rate Sukuk was Rs8.250 billion, according to the central bankâs auction result.
The cut off fixed rental rate was 9.45 percent.
Last month, the State Bank of Pakistan issued the auction calendar for issuance of Sukuk based on Ijara for five years.
Pre-auction target for variable and fixed rental rate Sukuks during January-March 2021 set at Rs150 billion.
Indian economy is recovering faster than expected and may post minor positive growth in the third quarter, but efforts need to be redoubled to fight inflation so that it doesn’t hurt the incipient growth impulses, according to the State of the Economy report in the December Bulletin of the Reserve Bank of India (RBI). “Indian economy is pulling out of Covid-19’s deep abyss and is reflating at a pace that beats most predictions, the report said. Although there are headwinds, “steadfast efforts by all stakeholders could put India on a faster growth trajectory,” the report said. The National Statistical Office’s (NSO) end-November release showed that the Covid-19 pandemic imposed retrenchment of the first quarter was much shallower in the second quarter and the economy was reflating at a pace that beats most predictions. RBI’s nowcasting model also shows that the economy will post a positive economic growth rate of 0.1 per cent in the third quarter. The fourth bi-mont