RBI Increasing Policy Rates to Contain Inflation.

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... RBI Increasing Policy Rates to Contain Inflation. - News and Press Release Dated:- 7-9-2011 - News - Press Information Bureau Government of India Ministry of Finance 07-September-2011 19:06 IST RBI Increasing Policy Rates to Contain Inflation RBI has been increasing policy rates to contain inflation and inflationary expectation to prevent the economy from getting overheated. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... The Reserve Bank of India (RBI) has raised the policy rate (the repo rate) eleven times by a cumulative 325 basis points (bps) since October 2009. The increase in the Base Rates/Benchmark Prime Lending Rates (BPLRs) of banks, consequent upon increase in policy rate by the RBI, may result in increase in EMIs particularly in respect of loans which are contracted at floating rates. Taking cues fr .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... om the monetary tightening by the Reserve Bank, banks have been increasing both their deposit and lending rates. While the borrowers pay high interest rates when the lending rates go up consequent upon hike of policy rates by RBI, the Scheduled Commercial Banks (SCBs) also raise their deposit rates which have increased in the range of 25-500 basis points (bps) since March 2010 across all maturitie .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s. Therefore, higher lending rates do not necessarily mean higher profit for banks. On an ongoing basis, Government has been providing interest subvention to certain sectors of the economy and sections of the society. This information was given by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question raised in Rajya Sabha yesterday. DSM/SS/SL - News - .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X