Thursday, December 08, 2016
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RBI keeps key rates intactUrjit Patel, RBI Governor
Demonetisation effect

RBI keeps key rates intact

Lowers country’s growth forecast to 7.1%08 Dec 2016 | 1:31 AM

NEW DELHI:Contrary to expectations, the Reserve Bank of India (RBI) today did not cut the benchmark interest rates but as demonetisation dominated the fifth monetary policy review of 2016-17, the central bank cut the growth estimate of the economy to 7.1 per cent from 7.6 per cent.

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Tribune News Service

New Delhi, December 7

Contrary to expectations, the Reserve Bank of India (RBI) today did not cut the benchmark interest rates but as demonetisation dominated the fifth monetary policy review of 2016-17, the central bank cut the growth estimate of the economy to 7.1 per cent from 7.6 per cent. The growth estimate has been lowered following short-term disruption in economic activity especially in cash intensive sectors and demand compression due to demonetisation.

Edit: Keep guessing

With questions being raised about the autonomy of the RBI following the demonetisation move, some analysts have said the pause mode on interest rates by RBI Governor Urjit Patel in today’s policy exercise reaffirms RBI’s independence from the government.

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The RBI Governor said the demonetisation decision was taken after detailed deliberations and not in haste. “The consequences that have emanated from that were taken on board. That is why the planning, the process and implementation was what it was, keeping in mind high secrecy had to be maintained. The central bank and the government were conscious of certain immediate difficulties for the public at large and all efforts were made to mitigate them,” he added.

Commenting on the RBI move, SBI chairman Arundhati Bhattacharya said: “The decision of keeping the repo rate unchanged was a little surprising given that there has been sizeable demand destruction. Probably this may have happened due to considerations of possibilities of rise in energy prices as well as with an eye on Fed rate hike.”

On cutting the growth estimate, the RBI said the outlook for Gross Value Added (GVA) growth for 2016-17 had turned uncertain after the unexpected loss of momentum by 50 basis points in Q2 and the effects of the withdrawal of specified bank notes (SBNs) which are still playing out.

RBI Deputy Governor R Gandhi said almost Rs 11.85 lakh crore in the scrapped Rs 500 and Rs 1,000 notes had come back to the banking system.

With such a huge chunk of scrapped notes coming back, the government will now have to identify the black money holders and initiate action as weeding out black money was among the top aims of the demonetisation exercise.

Advani’s outburst has govt red-faced

Advani’s outburst has govt red-faced

08 Dec 2016 | 1:27 AM

NEW DELHI:In an embarrassment to the BJP-led NDA government, veteran BJP leader LK Advani today questioned the office of the Speaker (held by Sumitra Mahajan) and the Ministry of Parliamentary Affairs regarding repeated House disruptions.

Cash clean-up: It’s ‘janshakti’ to the fore

08 Dec 2016 | 1:27 AM

NEW DELHI:Asserting that the people had supported demonetisation, Prime Minister Narendra Modi today said his government had brought ‘janshakti’ (people’s power) into prominence.

SC to hear plea against Asthana’s selection

SC to hear plea against Asthana’s selection

08 Dec 2016 | 1:27 AM

NEW DELHI:With the Supreme Court agreeing to hear a petition on December 9, challenging the appointment of Rakesh Asthana as CBI’s interim Director, the Congress today openly accused the government of vitiating the selection process.

Navy to rescue of tourists stuck in Andamans

08 Dec 2016 | 1:27 AM

PORT BLAIR:At least 1,400 tourists are stranded at Havelock and Neil Islands in the Andamans due to cyclonic weather conditions.

At the PGI, empty donation boxes  killing  poor patients

At the PGI, empty donation boxes killing poor patients

08 Dec 2016 | 1:27 AM

CHANDIGARH:Suffering from a severe kidney ailment, Gurpreet Kaur from Mehal Kalan in Barnala came to the PGI here with much hope.

A record 18, 473 pupils recite shlokas

08 Dec 2016 | 1:27 AM

Kurukshetra: As many as 18,473 school students on Wednesday together recited 18 shlokas from 18 chapters of the Gita at the Gitamaya Yuva Chetna programme here as part of the International Gita Mahotsav, which the Haryana Government claimed was a world record.


Keep guessing

RBI downplays demonetisation impact


A matter of propriety

Do not distribute citizens’ money

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Story of lost opportunities

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Heart of Asia should have broken ground with Pakistan

Where is the need to flag nationalism?

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House logjam: BJP says Oppn to blame

House logjam: BJP says Oppn to blame

08 Dec 2016 | 1:17 AM

NEW DELHI:With the Opposition sticking to its demand for discussion on demonetisation under Rule 184 (debate with voting) in the Lok Sabha and continuous presence of Prime Minister Narendra Modi during the debate on the issue in the Rajya Sabha, the ruling BJP further hardened its stance.

CITY FOCUS

HC comes to rescue of profs retiring at 65

HC comes to rescue of profs retiring at 65

07 Dec 2016 | 1:45 AM

CHANDIGARH:Less than four months after their claim for continuation in service up to 65 years in Panjab University was rejected, the Punjab and High Court today made it clear that the appellant professors were entitled to full salary being earlier paid to them.

NoTight security in place in Talwandi Sabo near Bathinda on Wednesday. Tribune photo

Talwandi Sabo tense, cops seal border

08 Dec 2016 | 1:49 AM

BATHINDA/TALWANDI SABO: The Bathinda administration today refused to give permission to Sikh leaders to hold “Sarbat Khalsa” at Talwandi Sabo on Thursday.

No

SAD set for mega show at Moga today

08 Dec 2016 | 1:49 AM

MOGA: The central leadership of the BJP will not be part of the SADshow of strength in Moga on Thursday.

Focus on SYL, BJP not in picture

08 Dec 2016 | 1:49 AM

MOGA:The central leadership of the BJP will not be part of the SAD show of strength in Moga on Thursday.

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Students brave 5-hr ordeal for 8-minute ‘shloka’ show

Students brave 5-hr ordeal for 8-minute ‘shloka’ show

08 Dec 2016 | 1:04 AM

KURUKSHETRA: The Kurukshetra Development Board (KDB)’s wish to set a world record made more than 18,000 students sit in the open on a chilly morning for more than five hours.

No need for HP’s nod to book CM: CBI to HC

08 Dec 2016 | 12:35 AM

NEW DELHI: The CBI today pleaded in the Delhi High Court that it did not require the Himachal Pradesh Government’s consent to investigate the disproportionate assets (DA) case against Chief Minister Virbhadra Singh.

BJP leaders not on same page over Hurriyat invite to tourists

BJP leaders not on same page over Hurriyat invite to tourists

08 Dec 2016 | 12:29 AM

JAMMU: A day after Hurriyat leaders extended the invitation to tourists and yatris from across the country to visit Kashmir, BJP leaders spoke in differing voices while reacting to the separatists’ appeal.

More home guards to be hired: CM

More home guards to be hired: CM

08 Dec 2016 | 12:32 AM

DEHRADUN: Chief Minister Harish Rawat has announced an additional grant of Rs 100 during inter-district posting, and training allowance will be equal to duty allowance for home guard jawans in the state.

Industry disappointed, says rate cut needed to boost economy

Industry disappointed, says rate cut needed to boost economy

08 Dec 2016 | 12:31 AM

NEW DELHI: With RBI belying expectations of a rate cut, India Inc today expressed disappointment saying a rate cut was needed to provide fillip to the flagging industrial economy and stimulate consumption that has been hit by demonetisation.

No

SC allows BCCI Rs 1.33 crore for Mumbai, Chennai Tests

07 Dec 2016 | 7:57 PM

NEW DELHI: The Supreme Court on Wednesday allowed the Board of Control for Cricket in India (BCCI) to spend Rs 1.33 crore for conducting the last two cricket Test matches of the ongoing India-England series.

No

Djokovic, Boris Becker to split after 3 seasons, 6 major titles

07 Dec 2016 | 7:57 PM

NEW YORK: Novak Djokovic and coach Boris Becker are splitting up after three seasons and a half-dozen Grand Slam titles as a pair.

No

Starting trouble for India

07 Dec 2016 | 1:46 AM

MUMBAI: India’s first-choice opener, KL Rahul, arrived early at the Wankhede Stadium for training today, to be soon followed by his India teammates. By the time the others padded up, Rahul was already a good 20 minutes into his batting stint, facing the local nets bowlers.

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YOUR WORLD AND YOU

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    While people may raise hue and cry over the demonetisation, it is opportunity knocking at the door of E commerce giants. Digital wallet companies are reporting that demand for their services has seen a whopping increase in the past few weeks

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