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RBI rate cut to support growth: Jaitley

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By NewsGram staff writer

New Delhi: Finance Minister Arun Jaitley, on Tuesday, said that the decision of Reserve Bank of India to cut short-term lending rates by 50 basis points will support growth, while showing that inflationary pressures were now moderating.

The finance minister also welcomed the decision to allow the corporate sector to issue rupee-denominated bonds in overseas markets, often called ‘Masala Bonds’, and said it will give access to additional credit for India Inc.

“Today’s rate cut will boost investment and growth,” Jaitley said, soon after the 4th bi-monthly monetary policy update by Reserve Bank of India Governor Raghuram Rajan, adding that the government would like to see commercial banks reciprocating with own interest rate cuts.

“We are looking forward now to the transmission of these cuts, which will help boost economy and confidence,” the finance minister added.

The central bank cut by 50 basis points its repurchase rate, or the interest charged on short-term borrowings, to 6.75 percent, which automatically cut the indexed reverse repo rate or the interest payable by the central bank on short-term deposit, to 5.75 percent.

Speaking about the rupee-denominated bonds, Economic Affairs Secretary Shaktikanta Das said there was not only an appetite for such commercial paper in the global markets, but it would also shy the corporate sector from currency fluctuations.

“This is also the first time that the foreign portfolio investors can invest in state-governments backed securities, which was a demand raised by state governments for a long time,” Das said, adding that could translate into an inflow of Rs 51,000 crore.

(With inputs from IANS)

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RBI to File Compliance Report on Whatsapp Payment Service

The petitioner referred to the provisions of the Payment and Settlement Systems Act, 2007 and sought action against WhatsApp for violation of data localization norms during the trial period

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Reserve Bank of India. VOA

The Supreme Court has granted six weeks time to the Reserve Bank of India (RBI) to file a report whether WhatsApp had complied with norms for launching its payment services.

Senior advocate Kapil Sibal, appearing on behalf of WhatsApp, told the bench headed by Justice Rohinton Fali Nariman that WhatsApp has complied with the RBI data localisation norms and will submit a compliance report to RBI, for which it needed some time.

Advocate Virag Gupta, appearing on behalf of the petitioner, think tank Centre for Accountability and Systemic Change (CASC), submitted that the petition relates to two issues –appointment of grievance officer by WhatsApp in India and compliance of RBI data localisation norms.

Both these points raised by the petitioner have been endorsed by RBI as well as Central Government and they have stated that WhatsApp has not complied with these. Therefore, he sought that the government should file a compliance affidavit on these points.

The bench asked WhatsApp as to how much time it requires to submit the compliance affidavit.

WhatsApp
WhatsApp on a smartphone device.

In response, Sibal suggested that WhatsApp should submit compliance report to RBI, and RBI can submit a compliance affidavit before the Supreme Court.

Appearing on behalf of RBI, Additional Solicitor General Aman Lekhi submitted that initially the details will be sent to National Payments Corporation of India (NPCI), which will take around 3-4 weeks, thereafter, RBI will take around two weeks to file compliance report before the Supreme Court.

Also Read: People Feel Exposed to Fake News on Social Media, Says Study

The court was hearing petition filed by CASC, which said that WhatsApp, with over 20 crore active users, was the largest messaging platform and yet had no grievance officer and was largely unregulated as laws were not being complied with.

The petitioner referred to the provisions of the Payment and Settlement Systems Act, 2007 and sought action against WhatsApp for violation of data localization norms during the trial period. (IANS)