bankersand#039

The Reserve Bank of India clearly rejected bankers' suggestion to slash policy rate by 25-50 basis points, in its half yearly monetary policy review. Five out of six banks actually wanted the central bank to cut the policy (repo) rate by 25-50 basis points. Lenders felt the urge to arrest the...

The Reserve Bank of India acts as the bankers' bank. According to the provisions of the Banking Companies Act of 1949, every scheduled bank was required to maintain with the Reserve Bank a cash balance equivalent to 5% of its demand liabilites and 2 per cent of its time liabilities in India. By...