RBI bans zero interest loans on EMI to credit card holders

MUMBAI: In a move that is likely to dent retailers' festive season sales, the Reserve Bank of India has barred 'zero per cent interest' schemes offered by banks to credit card holders. Banks will now be able to recover dues through equated monthly installments only when customers are billed regular interest charges. 

RBI tightens norms for lending against gold jewellery

MUMBAI: Seeking to keep demand of gold under check, the Reserve Bank of India has tightened norms for loans against pledge of gold jewellery. 

Don't use currency notes for making garlands: RBI

MUMBAI: Making garlands of currency notes, a practice followed in Indian marriages and political rallies, has been sought to be discouraged by the Reserve Bank of India.

"The Reserve Bank of India has appealed to members of public not to use banknotes for making garlands, decorating pandals and places of worship or for showering on personalities in social events, etc," an RBI release said on Wednesday.

Such actions, it said, deface the banknotes and shorten their life.

Rupee to touch 60

MUMBAI: The currency tide has turned in spectacular fashion. Asia's worst performer until last week, the rupee has become the world's best performer in the past five days as investor confidence has surged following a series of steps to boost inflows and the receding likelihood of a US strike on Syria.

The local currency had its best four-day rally in four decades after Reserve Bank of Indian Governor Raghuram Rajan moved to reverse sentiment on policymaking, introducing several measures soon after taking over last Wednesday. Liberal fund-raising rules for banks and exchange risk cover for NRI deposits are estimated to draw about $20 billion in the next few weeks.

The rupee's slump below 60 to the dollar was a "capitulation trade which clearly was overdone", according to Alok Agarwal, CFO at Reliance IndustriesBSE -0.15 %. "The rupee's reversal should take the same path — a move up to 63 against the dollar, with relief and confidence coming back and then a slower appreciation to 60 as the emerging markets steady themselves after the Fed's plans on tapering are known at next week'sFederal Open Market Committee meeting."

The rupee gained 2.2 per cent from Fri
day's level to 63.84 to the dollar. It's the best performer in the past five days among the 189 currencies listed on the Bloomberg table. The rupee strengthened past 64 for the first time since August 26 to as high as 63.76, Bloomberg data shows. The currency touched an all-time low of 68.84 on August 28.

Raghuram Rajan effect: Rupee at two-week high, sensex above 19,000

MUMBAI: Rupee on Friday jumped 77 paise to 65.24 andsensex soared by 290 points to scale the 19,000-mark on continued hopes triggered by new RBI governor Raghuram Rajan's steps to push in more reforms in the financial sector.

Markets cheered the slew of proposals by Rajan, aimed at strengthening rupee and reviving growth, for the third straight day as investors appeared bullish.

Against Thursday's close of 66.01, the rupee on Friday ended at 65.24 -- the highest level in nearly 2 weeks -- on heavy dollar selling, capital flows and weak American currency overseas.