RBI mandate to link retail, MSME loans with external benchmark rates is credit negative for banks: Moody's
The RBI has so far this year cut interest rate by 110 basis points but lenders have transmitted only a part of it to borrowers in the form of a lower cost of taking loans.
Without fiscal discipline, the accumulation of public debt can ultimately have a snowball effect on the economy.
Union Budget 2019: Foreign exchange reserves help govt influence monetary policy, act as first line of defence against economic slump
The foreign exchange reserves not only include banknotes but also deposits, bonds, treasury bills and other government securities.
The yields on government bonds have surged by more than 100 basis points (100 basis points is equal to 1 percent) since August 2017.
India has been cutting down its exposure to American government securities since May when it was worth $ 59.9 billion, according to latest data from the Treasury Department.<br /><br />