New Delhi :The first central board meeting of the Reserve Bank of India (RBI) on Friday with Shaktikanta Das as governor is expected to focus on the liquidity situation in the financial system.
The Centre’s proposal to call for governance reform in the RBI could, however, take a back seat, a source privy to the development said. “The governance issue (in the RBI) no longer holds immediate importance,” the source said.
The board may consider forming a committee to deliberate on the governance structure in RBI. Earlier, the central government nominees on the RBI board — Financial Services Secretary Rajiv Kumar and Economic Affairs Secretary S C Garg — had moved a proposal to consider governance reforms in RBI.
With a new governor at the helm, the government may adopt a wait-and-watch approach before pushing for governance reforms in RBI. The government was upset with the way RBI took certain decisions, during former governor Urjit Patel’s tenure, in “closed door” meetings, including new norms for resolution of stressed assets set by the central bank in February, popularly known as the February 12 circular, according to sources.
The new governor is likely to take stock of the liquidity situation, especially related to non-banking financial companies (NBFCs), which showed signs of stress recently. The government has petitioned the RBI to take measures to boost liquidity for NBFCs but the RBI is not in favour of a systemic intervention at present.
The board will be apprised of a recent decision taken by Finance Minister Arun Jaitley and Patel on the structure and the mandate of the committee to review the RBI’s economic capital framework.
Sources said former RBI governor Bimal Jalan would head the panel and former RBI deputy governor Rakesh Mohan would be the co-chair. After the panel is constituted, it is expected to submit its report in 90 days, the source said.
“The chairman of the panel has to agree to the mandate first. The committee will be notified soon,” the source added. The panel may not hold discussions on the revaluation reserves held by the RBI in its ‘currency and gold revaluation reserves’, it is learnt. It accounted for over 70 per cent out of the RBI’s total reserves at Rs 9.6 trillion at the end of June 2018.
The finance ministry is of the view that RBI has ‘excess capital’ in its reserves and that can be transferred to the central government.
The decision to form a panel was taken in the nine-hour long board meeting on November 19.
“The agenda items from the previous meeting will carry forward. There were discussions only on three to four issues,” the source said.
The RBI’s central board will also take note of the Board for Financial Supervision (BFS) meeting chaired by Patel on December 6. The BFS was supposed to discuss the government’s proposal to bring some public sector banks out of the prompt corrective action (PCA) along with revision of rules. However, the BFS didn’t hold discussions on it and instead reviewed the financial position of all public sector banks, sources said.
The government has proposed “drastic changes” in the rules framed to re-tune the composition of three committees of the RBI: Board for Financial Supervision (BFS), the Board for Payment and Settlement Systems (BPSS) and the Committee of the Central Board (CCB). All three committees are chaired by the RBI Governor.
The government wanted more independent directors in forums, including the BFS, and had pushed for increasing the quorum in case of all the CCB and the BFS, sources said. In return, RBI had also exchanged its notes with board members suggesting only minor tweaks in the norms.
WPI inflation at 8-month low of 3.80 pc in Dec on softening fuel, food prices
New Delhi: Inflation based on wholesale prices fell to a 8-month low of 3.80 per cent in December, 2018, on softening prices of fuel and some food items.
The Wholesale Price Index (WPI)-based inflation stood at 4.64 per cent in November, 2018, and 3.58 per cent in December 2017. According to the government data released on Monday, deflation in food articles stood at 0.07 per cent in December, against 3.31 per cent in November.
Vegetables, too, saw deflation at 17.55 per cent in December, compared to 26.98 per cent in the previous month. Inflation in the ‘fuel and power’ basket in December slumped to 8.38 per cent, nearly half of 16.28 per cent in November.
This was on account of lowering of prices of petrol and diesel through December. Individually, in petrol and diesel inflation was 1.57 per cent and 8.61 per cent, respectively, and for liquified petroleum gas (LPG) it was 6.87 per cent during December.
Among food articles, potato prices became cheaper substantially with inflation at 48.68 per cent in December, as against 86.45 per cent in November.
Inflation in pulses stood at 2.11 per cent, while in ‘egg, meat and fish’ it was 4.55 per cent. Onion witnessed deflation of 63.83 per cent in December, compared to 47.60 per cent in November.
The 3.80 per cent inflation is the lowest in 8 months, and a lower inflation than this was last seen in April at 3.62 per cent. Data for retail or consumer price index-based inflation would be released later in the day.
The Reserve Bank of India (RBI) mainly takes into account retail inflation data while formulating monetary policy. In its fifth monetary policy review for the fiscal, last month, the Reserve Bank kept interest rates unchanged, but held out a promise to cut them if the upside risks to inflation do not materialise.
The central bank lowered retail inflation projection to 2.7-3.2 per cent for the second half of the current fiscal, citing normal monsoon and moderate food prices.
Air tickets, identity cards to become redundant; flyers can use facial recognition to enter airport
New Delhi: The hassle to show air tickets and identity cards at Airport will be over as air travellers can soon enter airport with facial recognition biometric facility.
GMR Hyderabad International Airport Ltd (GHIAL) that operates the Rajiv Gandhi International Airport (RGIA), has successfully conducted the trial of facial recognition technology. During the first phase of the trial, employees of GHIAL were included. The second phase of the trial is expected to be launched by the end of this month, in which GHIAL will include common air fliers. And if the second phase of the trial is successful, GHIAL will implement facial recognition technology in Hyderabad airport from March onwards.
Three phases of facial recognition technology
First phase: GHIAL has installed facial recognition cameras in the Hyderabad. In the first phase, the imaging of passengers will be done through these cameras which will recognise the faces of the flyers.
Second phase: There would be a centralised registration system for passengers. Each passenger’s face will be attached with his/her photo identity like passport, Aadhaar, voting id, driving licence etc. The details of passengers along with his facial mapping will be scanned and stored by GHIAL through the centralised registration system at the Airport.
Third phase: The ID proof of the passengers along with their facial mapping will be stored at the e-boarding gate of the Airport.The data centres at Airlines will also have similar information. Whenever such passengers book tickets, the data system will alert the Hyderabad Airport authorities.
The moment you book a flight ticket originating from Hyderabad airport, your details will be shared by the data centre and the information will be given to all the concerned authorities.
When you reach the Hyderabad terminal gate, face recognition technology will identify you and all your details will be shared on the screen. The security personnel at the gate will access all your information via the system.
Similarly, your details can be accessed by the security personnel at the check-in counter, security check-in. Once the formalities are done, passengers will get an online boarding pass on their mobile phone.
Maruti all-new WagonR 2019 available for booking at Rs 11,000
New Delhi: Country’s largest car manufacturer Maruti Suzuki India on Monday said that its all-new WagonR is available for booking starting.
Customers can book the 3rd generation WagonR at authorized dealer network across the country by paying Rs 11,000. They can also book the car online.
The New WagonR is powered by the advanced K-series engine offering high fuel efficiency and an unmatched driving experience, Maruti said. The car now comes with a new 1.2 L engine option that delivers powerful and impressive performance coupled with great fuel economy. Customers will also have the choice of 1.0 L engine for the all-new WagonR.
Maruti Suzuki’s acclaimed two pedal technology will also be offered in the new WagonR. The Auto Gear Shift (AGS) offers. Maruti said that for the first it is going to offer the most innovative SmartPlay Studio infotainment experience in the Big New WagonR.
The car will be available in Pearl Poolside Blue, Pearl Nutmeg Brown, Magma Grey, Pearl Autumn Orange, Silky Silver and Superior White Range of variants. The Petrol: 1.0 L engine will be available in Lxi, Vxi / Vxi AGS variants while the Petrol: 1.2 L will be available in Vxi, Vxi AGS, Zxi / Zxi AGS variants.
“The new WagonR gets bigger with enhanced comfort. The car’s sturdy and masculine look with true tall boy design makes for a strong road presence. The Big New WagonR not only embodies strong looks but is also stronger inside out,” Maruti said in a release.