Central Bank of India: Current Affairs

Central Bank of India: Current Affairs

Central Bank of India: Current Affairs

Central Bank of India (CBI) is the central bank of India. It was established on 1st November 1934 with the objective of preserving the value of the Indian currency and promoting the growth of the Indian economy. The bank is a statutory body under the Indian Constitution. The Governor of CBI is appointed by the President of India with the approval of the Cabinet. The current Governor of CBI is Dr. Urjit Patel.

  1. Central Bank of India Governor Urjit Patel’s first press conference

On Thursday, September 13, 2016, Governor of the Central Bank of India, Urjit R. Patel, gave his first press conference since taking office. In his speech, Governor Patel outlined his plans for the bank and discussed the challenges that India faces. He also discussed the role of the Central Bank in the economy and the steps that it is taking to support the nation’s growth.

Governor Patel’s speech was well-received by the media and was praised for its clarity and for its focus on the long-term interests of India. The Central Bank of India is now under the leadership of Governor Patel, and his words will be a key factor in determining the future of the Indian economy.

  1. RBI declares 50 paise as new legal tender

The Reserve Bank of India (RBI) on Saturday declared 50 paise as the new legal tender, effective midnight. The move comes a day after the government announced that the new Rs 2,000 and Rs 500 notes will no longer be legal tender from midnight.

The decision to declare 50 paise as the new legal tender was taken at a meeting of the central bank’s board of directors chaired by Governor Raghuram Rajan. The decision to make 50 paise the new legal tender was taken in view of the current economic situation and to help the common man.

With this, the value of the currency in terms of purchasing power will be lower than the Rs 2,000 and Rs 500 notes. The new Rs 2,000 and Rs 500 notes will continue to be legal tender.

  1. RBI lays down guidelines for new asset-backed securities

The Reserve Bank of India (RBI) has laid down guidelines for the issuance of Asset-Backed Securities (ABS) in an effort to improve the quality of these products and to address various concerns that have been raised by the market.

The guidelines stipulate that ABSs must be backed by liquid assets and must have a maturity of not more than seven years from the date of issue. The ABSs must also be offered to the public in denominations of Rs 1 crore and above.

The RBI has also clarified that the interest rates on ABSs will be determined by the central bank in accordance with the liquidity and credit quality of the underlying assets.

This move is likely to improve the quality of ABSs and to address some of the concerns that have been raised about these products.

  1. RBI cuts rate by 25 bps

The Central Bank of India has cut the repo rate by 25 basis points to 6.25% in a bid to stimulate the economy. The rate was last cut in November.

The RBI said that the cut is in line with global trends and will help to tide over the slowdown in the economy and inflationary pressures.
The RBI also said that the banks have ample liquidity and that there is no need to tighten credit conditions.

The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points to 6.25% in a bid to stimulate the economy. The rate was last cut in November.

The RBI said that the cut is in line with global trends and will help to tide over the slowdown in the economy and inflationary pressures.

The RBI also said that the banks have ample liquidity and that there is no need to tighten credit conditions.

  1. RBI to provide liquidity to stressed banks

The Reserve Bank of India (RBI) has decided to provide liquidity to stressed banks. The central bank said that it is giving priority to public sector banks and has set up a committee to decide on the quantum of liquidity to be provided to the banking sector.
The RBI has said that the decision to provide liquidity to the banks was taken in the backdrop of rising bad loans and weak banking system liquidity. It has also said that the move is not targeted at any particular bank.
The RBI has said that the decision to provide liquidity was taken in the backdrop of rising bad loans and weak banking system liquidity.

  1. Bundelkhand floods: Centre releases Rs. 2,000 crore

The Central Bank of India has announced that it will release Rs. 2,000 crore in immediate relief for Bundelkhand floods. The floods have caused extensive damage and loss of life. The central bank has also urged the states to release funds as required. The floods have been declared a national disaster.

  1. India to release Rs. 2,000 crore for Bundelkhand floods

Central Bank of India (CBI) has announced that it will release Rs. 2,000 crore in support of Bundelkhand floods. The decision was taken at a meeting of the central bank’s Board of Directors chaired by Dr. Urjit R. Patel. The money will be released through the Reserve Bank of India’s (RBI) window.

According to the CBI, the floods have caused considerable damage to infrastructure and personal property. The central bank has also urged the RBI to provide Rs. 6,000 crore in relief funds to states affected by the floods. The central bank has also requested the government to provide Rs. 10,000 crore for reconstruction.

  1. RBI extends credit to 11 PSBs

The Reserve Bank of India (RBI) has approved credit limits of Rs 1,000 crore each to 11 public sector banks (PSBs) under the Prompt Corrective Action (PCA) scheme.

The PCA scheme was introduced in June 2016 to tackle the asset quality issue in the banking sector. The credit limits are for a period of six months from the date of sanction.

The banks include Andhra Bank, Bank of Baroda, Central Bank of India, Corporation Bank, DBS Bank, HDFC Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of Bikaner and Jaipur, and Union Bank of India.

  1. RBIallows regulated mutual funds to invest in equities

The Reserve Bank of India has allowed regulated mutual funds to invest in equities, thereby widening the investment options for these funds. This is a significant development as it will help in increasing returns for investors.
Previously, mutual funds could only invest in government securities and bonds. This has led to a limited choice of investment options for these funds, which has in turn led to low returns.

This decision by the RBI will help in increasing the returns of mutual funds and thereby improve the overall financial performance of these funds. It will also help in diversifying the investmen

  1. RBI extends credit touttarakhand power distribution company

The Reserve Bank of India (RBI) has extended credit facilities to the power distribution company of Uttarakhand, Touttarakhand Power Distribution Company Ltd (TPDC), under the Prompt Corrective Action (PCA) scheme.
Under PCA, the RBI has extended credit facilities of Rs 9,000 crore to 14 public sector banks (PSBs) and five asset reconstruction companies.
The aim of the PCA scheme is to revive stalled sectors and promote economic growth.

The credit facilities are for working capital, commercial paper and short-term borrowing requirements.
Under the PCA scheme, the RBI has also sanctioned Rs 3,000 crore to the banks for lending to small and medium enterprises.

The PCA scheme has been implemented in over 20 sectors, including power, banking, food processing, textiles, steel, cement, auto components, and real estate.

The Central Bank of India (CBI) is an autonomous body responsible for formulating and implementing monetary and financial policies of the country. The CBI is also responsible for supervising the operations of all the commercial banks in India. The CBI is headquartered in Mumbai.

Leave a Reply

%d bloggers like this: