The central bank will run a pilot project for end-to-end digitalisation of KCC lending from September in select districts of Madhya Pradesh and Tamil Nadu with Union Bank of India and Federal Bank, respectively. Considering the challenges associated with rural lending, digitalisation of various aspects of rural finance is an important objective of RBI’s fintech initiatives.
According to a press release, the pilot project will lead to automation of various processes within banks and integration of their systems with the service providers. This, in turn, will make the process more efficient, convenient and affordable.
India's gross domestic product (GDP) data indicated that while domestic demand improved in the June quarter, growth was much slower in the sectors hardest hit by the pandemic, signalling deeper scarring and lower trend growth, research firm Nomura said in a report.
Reserve Bank of India Governor Shaktikanta Das said that the policy aim is to control inflation while minimising any impact on economic growth. Inflation has remained above RBI's 2% to 6% tolerance band for several months, with consumer inflation at 6.71% in July.
Prime Minister Narendra Modi said on Friday that port capacity in the country has doubled in the last eight years and stressed that infrastructure growth is key for development of a modern India. Speaking at the launch of various development initiatives at a public meeting here, he said for a developed India, the manufacturing sector and 'Make in India' need to be expanded.
There was a huge lag in paddy sowing in the states of Jharkhand (9.80 lakh ha), Madhya Pradesh (6.32 lakh ha), West Bengal (4.45 lakh ha), Chhattisgarh (3.91 lakh ha), Uttar Pradesh (2.61 lakh ha), and Bihar (2.18 lakh ha) so far this kharif season.
"If there is robust economic growth, then we would like to accelerate the (inflation) reduction to 4%. But if the economy is struggling, then a slower pace of adjustment would be appropriate," Monetary Policy Committee (MPC) member J.R. Varma said. The central bank raised its key policy repo rate by 50 basis points (bps) in August to 5.40%, taking the total rises since May to 140 bps. Its next policy decision is due on September 30.
The China lockdown and Beijing’s zero-Covid policy have started to impact India’s exports of cut and polished diamonds, which fell for the first time this fiscal year in July. Exports of these stones fell 13.45% from a year earlier to $1,933.32 million in July, as demand was muted from China, the second largest buyer of India’s cut and polished diamonds after the US.
Under the Fiscal Responsibility and Budget Management Act, it is the responsibility of the central government to ensure intergenerational equity in fiscal management and long-term macroeconomic stability by removing fiscal impediments in the effective conduct of monetary policy and prudential debt management.