Fund Managers Bet Big on Financials: The Shift from Banks to NBFCs Fund managers are recognizing financial stocks as a promising investment theme, but the journey isn’t without challenges. While there is optimism, the recent data shows a nuanced picture. Foreign Portfolio Investors (FPIs) exhibit a fluctuating pattern in finance and banking stocks, characterized by periodic buying and selling. January and February: Significant selling of financial stocks by FPIs. March: Renewed interest. April to May: […]

Raghuram Rajan’s Perspective on Benchmark Interest Rates Introduction Former Reserve Bank of India (RBI) Governor Raghuram Rajan has voiced concerns about the practice of excluding food prices from headline inflation while setting benchmark interest rates. He believes that such actions could undermine public trust in the central bank’s ability to manage inflation effectively. Core Suggestions from Raghuram Rajan Inclusion of PPI: Rajan recommends that the RBI should incorporate the Producer Price Index (PPI) into its […]

Navigating the RBI’s Stance on Gold Loans: A Comprehensive Overview In the landscape of financial compliance and regulation, the Reserve Bank of India’s (RBI) advisory on gold loans holds significant implications. This advisory is rooted in the rapid surge in gold loans, a trend that, while promising, necessitates careful scrutiny. Below, we delve into the critical aspects of this development, shedding light on its impact on businesses and financial institutions alike. Current State of Gold […]

Reconstitution of RBI’s Monetary Policy Committee (MPC): New Members Notified Introduction On October 1, the government reconstituted the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC), appointing new members to continue steering India’s monetary policy. Composition of the MPC The Monetary Policy Committee has six members: Internal Members (RBI): Shaktikanta Das, Governor and ex-officio Chairperson Michael Debabrata Patra, Deputy Governor in charge of monetary policy Rajiv Ranjan, Executive Director (or another officer nominated by […]

End of GST-Related Anti-Profiteering Regime and Transition to Free Pricing In a notable shift towards free market pricing, the Central Board of Indirect Taxes and Customs (CBIC) has announced the end of the regulatory regime that prevents businesses from retaining benefits intended for consumers from reductions in Goods and Services Tax (GST) rates. This pivotal change will come into effect in March next year. Key Changes in Anti-Profiteering Regulations Decision and Timeline End Date Announced: […]