Cash Management Bills auction using a multiple-price method with electronic competitive bidding and same-day result announcement.
Cash Management Bills of 35 and 34 days are being auctioned to meet temporary cash flow needs, with a combined notified amount and a single common maturity. The sale is governed by existing Treasury Bill terms and the governing general notification. Auctions will be conducted by Multiple Price Auction, with competitive bids submitted electronically via the central banking platform within the specified bidding window and results announced on the same day.

Overseas Direct Investment data: July 2013 outward FDI by Indian parties showing sectoral, country and commitment breakdowns.
Monthly data on Overseas Direct Investment for July 2013 listing Indian investors, JV/WOS counterparties, host country, sectoral activity and financial commitments (equity, loan, guarantees) reported by authorised dealers, aggregated to show equity USD 681.9541m, loans USD 828.2289m, guarantees USD 1,731.4937m and a grand total of USD 3,241.6767m.

Debt management: market borrowings and issuance changes led to longer maturities and eased yields in the quarter.
Quarterly debt management report details the Government's market borrowings approach for April-June 2013: auctions adhered to the pre announced calendar, new 10 year and 6 year securities and Inflation Indexed Bonds were issued, weighted average maturity rose while weighted average yield fell, and the cash position remained broadly surplus. Public debt increased modestly quarter on quarter with internal and marketable dated securities dominating liabilities; more securities now have residual maturities up to five years though rollover risk remains low. Secondary market yields eased, the yield curve steepened above ten years, trading volumes rose and outright turnover increased.

Online Right to Information applications now permitted for Indian citizens including those abroad, with electronic fee payment options available.
An online mechanism enables filing of Right to Information applications by Indian citizens, including those abroad, via a dedicated web portal with an integrated State Bank of India payment gateway that accepts internet banking of SBI and associate banks and Master/Visa debit and credit cards; the electronic fee payment facility currently applies only to a specified set of central ministries and departments.

Financial inclusion: Banks urged to lower access barriers and enable Aadhaar-linked accounts for secure direct benefit transfers.
The Governor directed banks to reduce barriers to access to advance financial inclusion, including seeding bank accounts with Aadhaar to facilitate direct benefit transfer and improving training for banking correspondents; State officials were urged to monitor and act against unauthorised financial activities to protect investors.

Reference rate update: US dollar and euro adjusted, altering GBP and JPY rupee exchange calculations and SDR rupee basis.
The Reserve Bank of India published Reference Rate quotations for the US dollar and the euro, reporting current and prior day rupee rates and showing derived rupee exchange rates for other currencies using the US dollar reference and cross currency middle rates; it also states that the SDR Rupee rate will be based on the reference rate.

Real interest rate impact: higher inflation tolerance harms growth despite lowering real rates, affecting investment incentives.
Lowering the real interest rate can stimulate investment and growth, but tolerating higher inflation to achieve lower real rates is unsustainable because above a threshold inflation's negative effects on growth outweigh benefits. Real interest rates are the pertinent macro price for growth; central banks influence them via responses to inflation and financial repression/reforms. Empirical estimates show increases in real rates reduce investment and moderate GDP growth, and firm-level pressures-declining marginal productivity of capital, falling IRR, cash-flow constraints and stalled projects-mean nominal rates must be compared to contemporaneous IRR and fall sufficiently to restore the hurdle rate below firms' IRR to revive investment.

Asset quality deterioration prompts coordinated regulatory action and a forum for oversight of collective investment schemes.
Review of domestic financial stability risks highlighted deteriorating asset quality in public sector banks and considered corrective measures, along with proposals on bank distribution of insurance products under the bancassurance model. The Sub Committee resolved to create a forum for inter-agency coordination and information exchange on collective investment schemes, launch a nationwide awareness campaign, and develop a unified strategy to address the extraterritorial effects of foreign regulatory regimes, while reviewing Technical Groups on financial inclusion, literacy and inter-regulatory coordination.

Regulatory penalty for currency chest agreement breach: bank fined for operational and compliance lapses.
The Reserve Bank of India imposed a monetary penalty on State Bank of India for breaches of contractual and regulatory obligations relating to the operation and maintenance of a currency chest, levied under specified paras of two RBI circulars and citing deficiencies observed at the SBI Secunderabad currency chest.

Reference Rate announcement: official rupee exchange rates for major currencies updated and SDR rupee linkage confirmed.
Announcement of Reference Rate publication updating rupee exchange rates for major convertible currencies, providing US dollar and Euro reference rates, derived pound and yen rates using cross currency middle quotes, and prior day comparisons. The press release states that the SDR Rupee rate will be calculated on the basis of the published Reference Rate and serves to inform market participants of official daily benchmark rates for pricing, reporting and valuation.

Violation of donation ceiling under Banking Regulation Act resulted in regulatory penalty after show cause and bank submissions.
Reserve Bank of India, relying on Section 47A(1) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co operative Societies), treated the bank's donations in excess of the prescribed ceiling as a violation of RBI instructions. After issuing a show cause notice and considering the bank's written reply and personal submissions, the Reserve Bank found the contravention substantiated and proceeded to impose a monetary sanction pursuant to its statutory enforcement powers.

Appointment of Governor of Reserve Bank: executive approval for a fixed-term governor to succeed outgoing incumbent.
The Prime Minister approved the appointment of Dr. Raghuram Rajan as Governor of the Reserve Bank of India for a term of three years, to succeed the incumbent upon completion of his tenure; the press release serves as the official executive announcement of this fixed-term central bank appointment and succession.

Reference Rate published by central bank establishing official exchange benchmarks and derivation of other currency and SDR rates.
The Reserve Bank of India published the Reference Rate for the US dollar and the Euro, disclosed prior-day levels, and stated that the SDR-Rupee rate will be derived from the announced reference rate; it also derived rupee exchange rates for other currencies using the US dollar reference and cross-currency middle rates.

Auction of government securities: uniform-price sale with non-competitive allotment, electronic bidding, when-issued trading eligible and scheduled payment.
Sale (re-issue) auctions of four government stocks will be conducted by the Reserve Bank of India on August 8, 2013 using the uniform price method; bids must be submitted electronically on E-Kuber (competitive bids 10:30 a.m.-12:00 noon; non-competitive bids 10:30 a.m.-11:30 a.m.). Up to 5% of each notified amount is reserved for eligible individuals and institutions under the Non-Competitive Bidding Facility. Results will be announced August 8 and payment by successful bidders is scheduled for August 12. The stocks are eligible for When Issued trading under RBI guidelines.

Foreign Direct Investment policy: airports up to 100% FDI; scheduled airlines capped at 49%; security and regulatory clearances required.
The Civil Aviation FDI regime sets specific equity caps and entry routes: airports up to 100% FDI (automatic for greenfield; automatic up to 74% for existing with government approval beyond 74%), scheduled domestic passenger airlines 49% (automatic; 100% for NRIs), non scheduled/helicopter/seaplane and related services up to 74% (government route beyond 49% and up to 74%; 100% for NRIs). Foreign airline investment into Indian carriers is permitted up to 49% under government approval, subsuming FDI and FII and requiring SEBI compliance, security clearances for foreign nationals and Ministry of Civil Aviation clearance for technical imports.

Reference rate publication by central bank sets official rupee exchange benchmarks and determines SDR rupee linkage and cross currency rates.
The Reserve Bank of India published official reference rates for the US dollar and the Euro, establishing Rupee benchmarks and serving as the Bank's authoritative exchange rate indicators. Other currency rates are derived from the US dollar reference rate using mid point cross currency quotations, and the SDR Rupee rate is to be based on the published reference rate.

Responsible regulation balances financial innovation with stability and consumer protection through calibrated prudential and inclusion measures.
Responsible regulation balances fostering financial innovation with preserving stability and consumer protection because financial markets are non self correcting, interconnected, procyclical and reflexive. The Reserve Bank applies responsible regulation through proactive macroprudential measures, calibrated adoption of global standards like Basel III, conditional corporate bank licensing with governance safeguards, sequenced market product rollouts and strengthened market infrastructure, and affirmative measures-including priority sector lending and branch penetration requirements-to advance financial inclusion and equitable growth.

Reference Rate publication updates exchange rate benchmarks and cross currency conversions affecting rupee valuations and SDR linkage.
The Reserve Bank of India issued the Reference Rate for the US dollar and the Euro, updating official rupee exchange benchmarks with corresponding prior day comparisons; it derived rupee rates for the British pound and Japanese yen from the US dollar reference and middle cross currency quotes, and stated that the SDR Rupee rate will be based on the Reference Rate.

FDI liberalisation expands automatic and government routes across sectors, changing caps and approval requirements for strategic industries.
The government revised sectoral FDI ceilings and entry routes, shifting several industries toward the automatic route while adjusting foreign equity limits. Notable changes include retention of 49% caps for exchanges and market infrastructure, raising asset reconstruction companies to 100% with automatic entry up to 49% and government approval beyond, increasing credit information companies to 74% automatic, permitting up to 100% FDI in telecoms with automatic entry up to 49%, amending single-brand retail clauses to allow multiple non-resident brand entities and prescribing filing requirements, deleting test marketing provisions, and maintaining defence caps with procedural safeguards.

Reference rate publication affects derived exchange rates and SDR Rupee linkage for currency settlement and reporting.
The Reserve Bank published reference rates for the US dollar and the euro, provided prior-day comparators, and-using the US dollar reference rate with cross-currency middle rates-derived exchange rates for the British pound and the Japanese yen; the SDR Rupee rate is to be based on the reference rate.