New Delhi : Urjit Patel has taken charge as Governor of the Reserve Bank Of India(RBI), an official statement said here on Monday. “Urjit R. Patel assumed charge as the twenty-fourth Governor of the Reserve Bank of India, effective September 4, 2016 after serving as Deputy Governor since January 2013,” the RBI statement said.
Patel, who has been given a three-year term, succeeds Raghuram Rajan, whose three-year term ended on Sunday. The handover ceremony is scheduled for Tuesday, as Monday is a holiday here owing to the Ganesh Chaturti festival. At an event here last week, Rajan, who did not seek an extension because he is returning to a career in academics, said he was confident that Patel would carry forward the work they began together on inflation-control.
“I am confident that Urjit Patel, who has worked closely with me on monetary policy for the last three years, will ably guide the Monetary Policy Committee going forward in achieving our inflation objectives,” Rajan said at a Forex Dealers Association of Indiaevent.
The outgoing governor said that even though inflation has surpassed the 6 per cent mark as against the RBI target of getting it down to 5 per cent by March 2017, inflation will ease in the coming months. The government has mandated that RBI keeps annual retail inflation down to a level of 4 per cent, plus or minus 2 percentage points.
The elevation of Urjit Patel as governor has naturally raised expectation among those who were critical of Rajan for not easing enough the monetary policy by cutting rates. It is relevant in this context to examine the backdrop to Rajan holding the RBI’s repo, or short-term lending rate, at 6.5 per cent in his last monetary policy review in August.
Since January 2015, Rajan had cut lending rates by 150 basis points (bps) but banks have only cut their interest rates by about half of that. To nudge banks to transfer the benefit of rate cuts, Rajan even announced a shift to the marginal cost of lending (MCLR) regime. However, three months after the MCLR was launched on April 1 this year, banks have hardly cut their lending rates.
From the state-run banks’ point of view, their accumulation of massive non-performing assets (NPAs), or bad loans, that is impacting profitability, is keeping them from cutting rates.
State-run banks suffered a cumulative loss of Rs 17,995 crore in 2015-16 due to mounting bad loans. In the same period, provisions went up went up 87 per cent to Rs 1.80 lakh crore as gross NPAs touched Rs 6 lakh crore.
When talking about this challenge for Urjit Patel as the RBI Governor, it should also be kept in mind that his moorings are as monetarist as the outgoing Governor, and he is considered to attach the same importance to inflation control as Rajan. His views on monetary policy were expressed at the time Rajan held rates in the February 2015 review after making an unexpected rate cut the previous month — the first in nearly two years. Patel at the time elaborated on the “important backdrop” to Rajan’s move to hold rates.
“We are in the midst of the age of competitive depreciation and of a beggar-my-neighbour philosophy. It brings to mind an old African saying that when elephants fight, the grass suffers,” Patel said at the press conference to announce the policy review, on the trend of accommodative monetary policies being adopted by developed economies. “While the ECB (European Central Bank) and the Bank of Japan are printing money and devaluing their currencies on one hand, the US economy is reviving on the other. Anyone in the middle is getting crushed,” he added.
McDonald’s CEO fired over relationship with employee
San Francisco, 4 Nov : Fast food giant McDonald’s has fired its CEO Steve Easterbrook after its board of directors found that he “demonstrated poor judgment” in a consensual relationship with an unidentified employee, the media has reported.
McDonald’s Corporation on Sunday announced that its Board of Directors has named Chris Kempczinski, most recently President, McDonald’s USA, as President and CEO, effective immediately. Kempczinski has also been elected to the McDonald’s Board of Directors.
“Kempczinski succeeds Steve Easterbrook, who has separated from the company following the board’s determination that he violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee,” the fast food giant said in a statement.
According to MarketWatch, Easterbrook sent an e-mail with a memo to employees acknowledging the relationship and said it was a mistake, Efe news agency reported. “Given the values of the company, I agree with the board that it is time for me to move on,” he said in the letter.
McDonald’s said it voted to approve Easterbrook’s departure last Friday after conducting a thorough analysis of the situation, and his compensation details will be known on Monday after the submission of documents to federal authorities.
Now DGCA tells GoAir to change engines in 13 aircraft
New Delhi, 29 Oct : The country’s civil aviation regulator — the Directorate General of Civil Aviation (DGCA) — has instructed GoAir to install at least one modified engine in 13 of its A320neo aircraft within the next 15 days.
Bonanza for stock markets in the works; DDT to be scrapped
New Delhi, 29 Oct : A bonanza is in the offing for the stock markets as the Prime Minister’s Office (PMO) and the Finance Ministry are working on measures which may include dividend distribution tax (DDT) to be scrapped and a review of existing slabs and holding period of long term capital gains (LTCG), short term capital gains (STCG) and securities transaction tax (STT).
- Disha Patani Crosses 40 million followers on instagram
- Thane building crash: 10 dead, 25 rescued
- Jacqueline song ‘Genda Phool’ crosses 550 million views
- IPL 13: Delhi won in super over, Mayak’s half-century wasted
- Chennai Super Kings beat Mumbai Indians by 5 wickets
- IPL 13 : Mumbai Indians set 163 run target for Chennai Super Kings
- LIVE Score : IPL 13 – Mumbai Indians VS Chennai Super Kings
- IPL 13 : Chennai Super Kings win the toss and chose to bowl
Bigg boss 13: Siddharth Shukla won, Asim first runnerup
Delhi court convicts 19 persons in Bihar’s Muzaffarpur shelter home case
New Delhi, 20 Jan : The Saket court in Delhi on Monday convicted 19 accused, including high-profile Brajesh Thakur, in...
Violence in JNU, masked goons attack students, teachers
New Delhi, 5 Jan : Violence swept the Jawaharlal Nehru University on Sunday as several masked individuals, both male and...
Sidhu allowed to accompany Sikh ‘jatha’ to Pak
New Delhi, 8 Nov : Congress leader Navjot Singh Sidhu has been allowed by the government to accompany the Sikh...
NCW wants inquiry into attack on DCP at Tis Hazari
IPL 13: Delhi won in super over, Mayak’s half-century wasted
Dubai, 21 September: The second match of the season played in the 13th season of the Indian Premier League (IPL)...
Chennai Super Kings beat Mumbai Indians by 5 wickets
Abu Dhabi, 19 September : Chennai Super Kings defeated Mumbai Indians by five wickets in the first match of IPL-13...
IPL 13 : Mumbai Indians set 163 run target for Chennai Super Kings
LIVE Score : IPL 13 – Mumbai Indians VS Chennai Super Kings
IPL 13 : Chennai Super Kings win the toss and chose to bowl
Abu Dhabi, 19 Sep : Last year’s runners-up Chennai Super Kings won the toss and chose to bowl against defending...
IPL 2020 schedule announced, MI face CSK in opener
New Delhi, Sep 6 : Defending champions Mumbai Indians will face three-time winners Chennai Super Kings in Abu Dhabi in...
Disha Patani Crosses 40 million followers on instagram
Disha Patani now has over 40 million followers on Instagram. The actress thanked her fans saying she is nothing without...
Jacqueline song ‘Genda Phool’ crosses 550 million views
On the super success of Genda Phool, Jacqueline Fernandez said, “We have recently crossed the 550 million views and it...
Sushant Singh Rajput commits suicide at Mumbai home
Mumbai, 14 June : Well known Bollywood actor Sushant Singh Rajput was found dead at his Bandra residence here on...
Salman wishes fans ‘Eid Mubarak’ with releasing his latest song Bhai Bhai
Mumbai, 25 May : Salman Khan wishes fans ‘Eid Mubarak’ with releasing his New track titled Bhai Bhai.
India’s international actor Irrfan Khan no more
Mumbai, 29 April : Irrfan Khan, who won over millions of fans with his roles in numerous international and Indian...
Breaking2 years ago
Happy Diwali Images 2018, Happy Diwali Wallpapers 2018 |Happy Diwali Images | Live24India
Don't Miss4 years ago
12 Things You Should Never Put In Your Vagina
Himachal Pradesh4 years ago
#Photogallery : Shimla, Manali, Dharamsala receive fresh snowfall
Entertainment12 months ago
Prabhas is super excited to join his Baahubali team in London for the royal reunion
Don't Miss4 years ago
15 Epic Beach Photos
Bollywood3 years ago
Priyanka Chopra chilling in Miami in a bikini is TOO HOT
Don't Miss4 years ago
11 Sex Mistakes Men Make (And How to Avoid Them)
News of the Day11 months ago
Sourav Ganguly takes over as BCCI chief