【New Delhi】Reserve Bank of India governor Raghuram Rajan put in place rules to curb speculation in the currency markets, made it cheaper for banks to attract FCNR deposits and allowed OMCs to borrow from a special swap window.
The result has been a strong rebound in the rupee. There was succour for the money market too as the MSF rate was gradually lowered and the term repos — for seven and 14 days — were introduced. Putting in place a mechanism that will help banks detect NPAs early on, Rajan has offered them sops for a quick decision on handling troubled assets.
○Interest hiked on small savings to beat EC date
【New Delhi】The UPA-II has been on an overdrive to dole out sops to lure voters in its last days, with the Election Commission expected to sound the poll bugle on Wednesday, which would reduce it to a lame duck.
Last week and the previous one saw the Cabinet and its designated panels clearing proposals that would lead to a combined annual outgo of R23,000 crore. (see chart). On Tuesday, the government raised interest rates by 10-20 basis points for small savings schemes up to a maturity of 5 years, but left the public provident fund rate unchanged at 8.7%.
【News source】
Rajan spends six months trying to fix the fault lines
Interest hiked on small savings to beat EC date
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