News Leak Centre

Rupee Plunges To Record Low of 69.62 against Dollar

The Rupee touched an all-time low of 69.62 per dollar in early trade on Monday, tracking broader weakness in other emerging market currencies on concerns of a spill-over from a crisis-hit Turkey.

The Reserve Bank of India was seen intervening to stem a sharp fall in the rupee as per market reports.

“The RBI was there to curtail the volatility in early trade, but not in a big way,” said a senior dealer at a foreign bank.

The Rupee reversed marginally from its record lows to trade at 69.53 to the dollar. It had ended at 68.84 to the dollar on Friday. The 10-year benchmark bond yield rose to 7.80% from its previous close of 7.75%, tracking the weakness in rupee.

Investors preferred safe-havens such as the US dollar and the yen after a plunge in the Turkish Lira sent all emerging market currencies sharply lower.

The lira has fallen about 45% against the greenback this year on worries over Turkish President Tayyip Erdogan’s increasing control of the economy and a deepening diplomatic rift with the United States.

“There is no point spending a lot of dollars in defending a rupee when the force of the fall is so strong across emerging markets,” said a senior forex dealer at an Indian state-run bank.

The next crucial level for the rupee is 69.80 to the dollar, he added.

Traders will also watch out for India consumer inflation data for July due after market hours for further direction. A Reuters poll estimates July\ inflation of 4.51% compared with a five-month high of 5.0% hit in the
previous month.

Meanwhile, the BSE Sensex fell over 288 points and the NSE Nifty dipped below the 11,400-level in opening trade today on heavy losses in PSUs, auto, metal and banking counters amid a global rout in equity markets.

The rupee’s previous record low was 69.13, marked on July 20, 2018. On Friday, the rupee had lost 15 paise to end at 68.83 against the resurgent dollar.

99 percent of old currency are back into the baking system: RBI

The Reserve Bank of India on Wednesday confirmed that 8.9 crore old Rs 1,000 notes out of 632.6 crores have not been returned post the note ban last November. This means all but 1.4 per cent of the old Rs 1,000 notes has come back into the banking system. As per the data released by the RBI, old notes worth Rs 15.44 lakh crore were there in the market, out of which 15.28 lakh crore have been received by the bank.

The government had announced demonetisation of Rs 1000 and Rs 500 note on November 8, 2016, to flush out black money from the market. The government replaced old Rs 500 notes with new ones, but no replacement for Rs 1000 notes have been made. Instead, a new Rs 2,000 note was introduced post note ban. Besides, new Rs 500 and Rs 2000 notes, the RBI has also printed new Rs 200 notes.

RBI said there were as many 588.2 crores of Rs 500 notes, both old and new in circulation as of March 31, 2017. As of March 31, 2016, there were 1,570.7 crore Rs 500 notes in circulation.

The report further said that the cost of printing of currency notes more than doubled to Rs 7,965 crore in 2016-17 from Rs 3,421 crore in the previous year on account of new currency printing.

RBI Is Planning To Bring A New Rs 10 Note With High Security Feature. Its True.

After the nightmares of demonetization that hit the country on the night of 8th of November last year, the union government is planning to hit the country with another “mild attack”.

In a statement made by Reserve Bank Of India, the government of India is planning to issue new notes with enhanced security features for circulation.

“The RBI on Thursday said the banknotes in the Mahatma Gandhi series-2005 are to carry inset letter ‘L’ on both number panels, bearing the signature of Governor Urjit Patel.”

The other things which will see a facelift will be the year of printing of, 2017, which will be on the reverse of the note. Among other features, numerals on both the panels will be in ascending size from left to right.

The first three alpha-numeric characters (prefix) will remain constant in size.

“All the banknotes in the denomination of Rs 10 issued by the Bank in the past will continue to be legal tender,” the central bank said in a notification.

Reserve Bank of India To Give Nepal Rs. 1 Billion In 100-Rupee Notes

The Reserve Bank of India (RBI) has agreed to provide Rs. 1 billion to the Nepal Rastra Bank (NRB) after its request that the country was facing a shortage of Indian currency in 100 denomination banknotes.

The NRB’s plan to import Rs. 100 denomination notes was delayed due to the Indian government’s move to demonetise Rs. 500 and Rs. 1,000 currency notes on November 8, according to a report in the Himalayan Times on Friday.

The RBI had earlier told the Nepali central bank to wait till the situation normalises post demontisation.

NRB officials have now said that the central bank is preparing to bring the amount from India within January.

After demonetisation in India, the Nepal Rastra Bank had also lowered exchange limit of Indian banknotes in Nepal.

Currently, it is providing an exchange facility of up to Rs. 2,000 on basis of citizenship identification.

Similarly, it is providing Rs. 10,000 to those who submit a copy of air or train ticket to travel to India and Rs. 25,000 for those travelling to India for medical check-up.

Janak Bahadur Adhikari, an NRB official, said that the limit of Indian rupee exchange will not be reviewed until the RBI is able to provide regular exchange facility.

The RBI has been extending Rs. 6 billion exchange facility to Nepal every year (based on Indian fiscal year calendar) but this year Nepal is unlikely to get this facility due to the demonetisation move, said Mr Adhikari.

“NRB has brought only Rs. 1.20 billion this year.”

Currently, the NRB has around Rs. 3.5 billion in its coffers and after bringing another Rs. 1 billion, NRB will be able to provide exchange facility to Nepali and Indian nationals in Nepal for the next eight to nine months.

Raghuram Rajan Last Gift For Indians, Now Your Phone Will Be Your Bank Too!

RBI Governor, who has just 10 days left in his tenure, has probably given us the best gift yet. National Payments Corporation of India (NPCI) launched Unified Payments Interface (UPI), a mobile payment solution which has the potential to revolutionise the payment system in the country. It is part of the Reserve Bank’s initiative to promote a cashless society. Currently, customers of 21 banks can use the new payment solution. More banks are expected to join the UPI platform later.

Reserve Bank of India Governor Raghuram Rajan brainchild UPI offers the facility to identify a bank customer with an email-like virtual address. Since bank account details are not given in this virtual address, the customer can freely share the UPI financial address with others. Users need to download the app and register before using it. A customer, for example, can also decide to use a mobile number or a short name for the virtual address such as XYZ@icici or 123456789@axis .UPI allows a customer to have multiple virtual addresses for multiple accounts in various banks. For making payment, the transaction will be complete once the customer authenticates the transaction through a secure PIN.

The other benefits of this mobile payment mechanism include its round-the-clock availability and faster checkout. One can use the UPI app instead of paying cash on delivery (COD) on receipt of product from online shopping websites, and can pay for miscellaneous expenses like utility bills, over the counter payments and school fees. The Unified Payments Interface is an advanced version of the existing payment system IMPS, which offers instant 24X7 interbank electronic fund transfers across India through mobile, internet and ATMs. National Payments Corporation of India said the UPI app will be available in next two to three working days for the customers to download and start using.

Andhra Bank, Axis Bank, Bank of Maharashtra, Canara Bank, DCB Bank, Federal Bank, ICICI Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank are some of the banks that have joined the UPI platform. Even if 5% people opted out UPI instead of cash, Govt. would easily save around millions of rupee production cost, hope our next RBI Governor Urjit Patel have some creative ideas like his predecessor RaghuRam Rajan had.