A sharply depreciating rupee sends all the wrong messages—higher risks, reduced returns, and an economy struggling to keep up. Left unchecked, it can trigger capital outflows, destabilizing markets and worsening the current account deficit. The RBI’s interventions reassure investors, acting as a firewall against such outcomes.
The Reserve Bank of India (RBI) conducted its daily Variable Rate Repo (VRR) auction on Monday, garnering significant interest from
Global markets also felt the pressure as investors reacted to the launch of DeepSeek, a Chinese startup’s free, open-source AI model, which is seen as a potential competitor to OpenAI’s ChatGPT. Additionally, the U.S. dollar gained strength after President Donald Trump imposed sanctions and tariffs on Colombia for refusing entry to military aircraft carrying deported migrants.
The CMI, a comprehensive measure of credit market health, declined to 100 in September 2024 from 103 in the same period last year. Although the indicator has remained above 100 since September 2022, the cooling demand and reduced supply have led to a continued moderation in retail credit growth
The capital infusion has been a critical component of the government’s strategy to revive the banking sector, which faced challenges due to rising NPAs and economic slowdowns. The funds have been utilized for provisioning against bad loans, supporting mergers, and meeting regulatory capital requirements.
The distress caused by multiple lending is becoming increasingly evident. Reports of harassment, coercive recovery practices, and even suicides among borrowers in rural India have been on the rise. Karnataka, in particular, has seen a surge in complaints against MFIs, with farmers and other borrowers alleging relentless pressure to repay debts
Developed nations, including the U.S., the U.K., and parts of Europe, are witnessing a rise in nationalist rhetoric and protectionist policies. Visa restrictions, deportations, and barriers to work opportunities for foreign nationals are becoming the norm.
The industry is hopeful that the government will announce a slew of measures to boost consumption by ensuring more money in the hands of people, boosting capital expenditure, giving relief to the housing sector and technological innovations.
Folk singer Sinha and noted Malayalam screenwriter-director M T Vasudevan Nair have been posthumously honoured with Padma Vibhushan, the second highest civilian award for exceptional and distinguished service.
Highlighting the significance of the proposed bill aimed at synchronising election schedules across the country, Murmu noted, “The ‘One Nation One Election’ plan can offer numerous benefits, including enhanced governance and reduced financial strain.”