Tag: RBI

Former RBI Governor C Rangarajan says India needs to grow fast to increase per capita income and become a developed economy. He says India needs to achieve 7% growth continuously over the next two decades, absorb new technologies, develop a skilled workforce, and create jobs.

Retail inflation in India fell to 6.83% in August, giving the RBI some headroom to pause rate hikes and support economic growth. The real estate sector is particularly poised to benefit from a stable and benign interest rate environment.

India and Saudi Arabia have begun discussions on settling their trade in local currencies. This would help to reduce the volatility of exchange rates and make it easier for businesses to trade with each other. The two countries have also agreed to expedite the negotiations on the India-Gulf Cooperation Council Free Trade Agreement and strengthen co-operation in the fintech space.

Russia and India are discussing ways to invest surplus rupees that Russia has accumulated in Indian banks. The two countries are considering investments in infrastructure projects, Indian companies, or government bonds. They are also discussing the possibility of setting up a rupee-rouble trade mechanism. The discussions are ongoing and it is likely that an agreement will be reached in the near future.

The Reserve Bank of India (RBI) is set to introduce its wholesale central bank digital currency (CBDC), the Digital Rupee-Wholesale, in the call money market by October. The CBDC is expected to make the call money market more efficient by reducing transaction costs and settlement risk. The RBI is also conducting a pilot project for the retail CBDC, which is a digital version of the Indian rupee. The retail CBDC is expected to be rolled out in the coming months.