Perspectives

Regulatory Impact Assessment

A monthly newsletter

Our monthly update ‘Regulatory Assessment Impact’ contains a round-up of RBI guidelines in the banking industry. These guidelines cover various themes which will be useful to stakeholders of this industry.

Stay updated

The country has emerged as a key player in global economic affairs in the past decade. India was among the few nations that managed to withstand the global financial crisis of 2008–09 and continued to post strong growth in the next two years. This raised hopes that riding the advantage of a strengthened economy, India would emerge as a magnet for businesses across the globe even as key advanced economies struggled to stay afloat. This has also created a tremendous potential for its banking sector to flourish and the country's banking industry looks set for greater transformation.  

Regulatory Impact Assessment: August 2016

The inflation based on the consumer price index (CPI) reached 23 month high of about 6.07% in July from a year ago, the fourth straight reading that tops the RBI's target of 5% by March 2017. At the last monetary policy announced on August 9, 2016, the interest rates remained unchanged flagging upside risks to the inflation target.

Regulatory Impact Assessment: July 2016

Last week, it came as a great surprise to many people worldwide that a majority of British voters –52 per cent –supported Britain exiting the European Union. This unexpected decision impacted the global financial markets to a severe extent with the Pound dropping to its lowest level against all currencies, notably against US Dollar, against whom such a depreciation as last seen in 1985-86.

Regulatory Impact Assessment: May 2016

The government announcement around recapitalization of public sector banks as part of the union budget has brought in more disappointment than cheers from the financial sector. This was on account of the capital infusion figure being much lower than what was expected by the industry.

Regulatory Impact Assessment: April 2016

The government announcement around recapitalization of public sector banks as part of the union budget has brought in more disappointment than cheers from the financial sector. This was on account of the capital infusion figure being much lower than what was expected by the industry.

Regulatory Impact Assessment: March 2016

With most of the PSU and Private bank reporting significantly high numbers of NPAs, it highlights the current economic stress scenario impacting the financial sector in India as a whole. Banks have been plagued with high number of NPAs for quite sometime and with economy still growing at the sub 7% level, significant policy changes by the government could be a reasonable measure to tackle the menace

Regulatory Impact Assessment: January 2016

During this quarter RBI published its half yearly financial stability report. The report carries out both qualitative and quantitative analyses of the current strength and resilience of the Indian financial system thus indicating where the financial system is and how it needs to move, to achieve its goal of supporting the real sector more effectively. The financial stability report also published certain matrices for NBFCs.

Regulatory Impact Assessment: October 2015

On the domestic side, the inflation numbers that came out in August, pointed that RBI has been successful in keeping in-check the headline inflation with its policy actions. However in absence of any material economic reform from the government, the euphoria surrounding the functioning of the government and the expectations have started to wane.

Regulatory Impact Assessment: July 2015

As per the prediction by the India Meteorological Department(‘IMD’) monsoon arrived late in the country, but as against the fears of deficient rainfall, it was above normal by the end of June. A normal monsoon is critical for the Indian economy as it will significantly ease the inflationary pressure and would further drive increased spending in the rural and tier 2 and 3 cities in India thus giving an impetus to the investment cycle.

Regulatory Impact Assessment: May 2015

The current economy is gaining traction, marked by steady growth and controlled inflation. The Reserve Bank of India (“RBI”) is now focused on the problem of Non-performing loans, which continues to be a major challenge for the banking sector in India. 

Regulatory Impact Assessment: March 2015

The February 2015 budget proved to be a lackluster budget for many as it failed to meet the market expectations of coming out with some revolutionary reform agendas. However, a closer analysis of the budget would reveal the pursuit of the new Modi- led Government of weeding out the issues plaguing the economy from their very roots before introducing any new reform measures.

Did you find this useful?