E India CA

Professional Updates for Chartered Accountants

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Opinion | The ball was always in the government’s court

Amid speculation that Reserve Bank of India (RBI) governor Urjit Patel might quit, the government did well on Wednesday to issue a statement, highlighting that the autonomy of the central bank is essential. This should help defuse tension, at least for now. Uncertainty in the market went up with reports that the government had invok...

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Banks Allowed To Lend More To Some Non-Banking Financial Companies

The limit has been raised from 10 per cent and is effective up to December 31, RBI said.The central bank on Friday increased lenders' single borrower exposure limit for non-banking financial companies (NBFCs) which do not finance infrastructure, to 15 per cent of capital funds. The limit has been raised from 10 per cent and is e...

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The history of the contentious ‘RBI Act Section 7’

No government has so far invoked Section 7 of the RBI in the Reserve Bank of India’s 83-year history Section 7 (1) of The Reserve Bank of India Act, 1934, became a contentious issue after the tension between the central bank and government turned into a public spat over the last few days. No government has so far invoked this ...

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RBI audit of IL&FS group makes independent directors jittery

MUMBAI: The Reserve Bank of India (RBI) has recently concluded an audit of IL&FS and may send notices to the company’s board and management if lapses found, two people with direct knowledge of the matter said. Though the results of the audit are not known, independent directors in some of the IL&FS group companies are se...

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Opinion | Don’t cry for India? A central bank’s lament

Long-simmering discord between the Indian central bank and the government is turning into a very public brawl. The timing couldn’t be more awful for markets. In a hard-hitting speech on Friday on central-bank independence, Reserve Bank of India Deputy Governor Viral Acharya startled his audience by invoking Argentina of 2010. B...

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What RBI norms on PPIs mean for e-wallets, users

With the Reserve Bank of India (RBI) releasing operational guidelines on interoperability of prepaid payment instruments (PPIs) on Tuesday, mobile wallet users will soon be able to transfer funds from one wallet to another. Mint analyses how the rules will impact wallet firms, users. What does interoperability of PPIs mean? Inter...

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RBI opens banking tap to ease liquidity crunch at NBFCs

The Reserve Bank of India (RBI) on Friday incentivized bank lending to non-banking financial companies (NBFCs) by easing liquidity norms and increasing the ceiling for lending to a single NBFC until 31 December. The central bank allowed banks to use government securities as level 1 high quality liquid asset (HQLA) equivalent to th...

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NBFCs brace for tighter regulation after ILFS default

RBI last week warned stricter regulations are in the offing to ward off default risks rising from the so-called asset liability mismatch The fastest pace of growth since 2013 at India’s non-bank financiers is about to come to a grinding halt. A spate of money market defaults by Infrastructure Leasing & Financial Services Ltd. ...