RBI's liquidity-tightening measures are likely to be rolled back by October as market sentiment and the rupee trajectory are expected to improve, Barclays said. Steps announced by new RBI governor Raghuram Rajan could attract $10 billion of forex inflows in the next three months and this could be a material near-term positive for the rupee, which has lost 20% since January, the London-based banking and financial services company said.
Study: Few takers for cashless treatment
Just 3.6% households in the country undertake cashless transactions, although the government and RBI have been taking steps to promote e-payment channels, says a report. It cited poor acceptance of cards by sellers and lack of awareness about cashless systems/options as the two main reasons for such low penetration. "Reach of cashless transaction stands a mere 0.43%," said a report by India Development Fund and Internet and Mobile Association of India.
Concern over move on temple gold
Amid reports RBI wants gold belonging to temples to be sold, a CPM member said in Rajya Sabha that the antique value of such assets should be calculated if any such move is there. Raising the matter during Zero Hour, K N Balagopal said RBI had sent a letter to temple boards in Kerala seeking gold reserves in temples. He said RBI move proves the government has become a "pauper" and if they are planning to take over the gold, the antique value of gold in the temples should be calculated.
Changes in banking licence application
RBI announced two changes in the applications for new bank licences from the private sector. Values Industries from Aurangabad has withdrawn its application and KC Land & Finance in Chandigarh is now included in the list of applicants. KC Land & Finance had applied for the licence on July 1, but was inadvertently not included in the list of applicants from the private sector, the central bank said.