Scholarship for SAARC central bank and finance officials to pursue advanced economics degrees in India under RBI scheme.
The Reserve Bank of India announces a scholarship scheme to fund higher studies in economics for officials of SAARC central banks and finance ministries, offering one full-time doctoral-leading scholarship at identified Indian institutions with a four-year tenure (extendable) and alternative two-year postgraduate awards, with research required to be relevant to SAARC countries.

Legal tender status confirmed for commemorative coins marking Motilal Nehru's birth anniversary, detailing design and composition.
A commemorative five rupee coin for Motilal Nehru is issued: circular 23 mm, 100 serrations, nickel brass (copper 75%, zinc 20%, nickel 5%); obverse with Lion Capital and legends in Devanagari and English plus rupee symbol and numeral; reverse with Motilal Nehru portrait and bilingual inscriptions with the year below. These coins are declared legal tender under the Coinage Act and will be circulated by the Reserve Bank; existing coins of this denomination continue as legal tender.

Reference rate publication: exchange rates for major currencies updated and cross-currency derived rates determine SDR rupee linkage.
The Reserve Bank released official reference rates for the US dollar and the Euro on June 17, 2013, and published derived pound sterling and yen exchange rates based on the dollar reference rate and cross-currency middle rates; the release specifies that the SDR Rupee rate will be determined on the basis of the published reference rate.

Monetary policy stance keeps reserve and policy rates unchanged to balance weak growth and inflation risks.
The Reserve Bank maintains its monetary stance by keeping the cash reserve ratio and key policy rates under the liquidity adjustment facility unchanged, balancing subdued domestic demand and weak investment against moderating inflation while remaining vigilant to upside pressures from food inflation, administered price revisions and exchange rate depreciation.

Policy restructuring to safeguard national interests in bilateral economic engagement with China is urgently recommended.
Restructuring of India's domestic and external policies is urged to preserve long term national interests in bilateral economic engagement with China. The study finds India imports many uncompetitive products from China across sectors, that regionalism could augment trade, that ASEAN+3 liberalisation may not yield expected welfare gains under CGE modelling, and that Yuan exchange rate movements significantly affect India's exports. These conclusions support a cautious, policy restructuring approach to recalibrate trade and domestic regulatory measures and to assess sectoral complementarities and exchange rate impacts for sustainable partnership.

Mid-quarter monetary policy review to be published as press release and posted on central bank website.
Reserve Bank of India will issue the Mid-Quarter Review of Monetary Policy 2013-14 by means of an official press release and place the text on its public website, with the communication signed by the Chief General Manager as the official issuer.

Memorial fellowship awarded to distinguished scholar enabling research on informality hosted at an Indian academic institution.
The Reserve Bank of India awarded the inaugural Prof. K. N. Raj Memorial National Fellowship to a distinguished scholar for a short-term research attachment in an Indian academic institution, enabling Prof. Ravi Kanbur to research informality - causes, consequences and policy responses - at the Centre for Development Studies, Thiruvananthapuram.

Inflation Expectations Survey of Households launched to gather household price expectations informing monetary policy inputs.
The Inflation Expectations Survey of Households (IESH) is a quarterly exercise gathering qualitative and quantitative household assessments of short and medium term price changes to serve as an input for monetary policy, using a sample across multiple cities and households' individual consumption baskets.

Central bank challenges: banks must mobilise savings, deepen markets, bolster risk management, and expand meaningful financial inclusion.
The central bank identifies ten systemic challenges-revival of growth, inflation control, external vulnerabilities, market deepening, banking system robustness, financial integrity, efficient government banking, less-cash transition, customer service, and quality financial inclusion-and prescribes roles for banks: mobilise domestic savings, expand credit across agriculture, MSME, housing and infrastructure, finance supply-chain improvements, deepen government and corporate debt markets, strengthen capital, asset-quality and risk management, enforce KYC/AML and ethical incentives, adopt e-government platforms and electronic payments, and enhance BC models to ensure operative accounts and small-credit access.

Fiscal consolidation strategy emphasises revenue-led correction and reprioritisation toward capital expenditure to improve fiscal quality.
The Bulletin assesses the Union Budget 2013-14 as pursuing fiscal consolidation through a revenue-led correction and reprioritisation towards capital expenditure while relying on market borrowings; it records a record widening of the current account deficit in Q3 2012-13 driven by trade deficits, though improved capital inflows fully financed the deficit; it reports persistent household inflation expectations, weakened corporate profitability with higher leverage in 2011-12, and deposit composition dominated by term deposits and public sector banks as of March 2012.

Financial inclusion policy driving bank led FIPs and monitoring to boost access, usage and DBT preparedness for excluded populations.
The Reserve Bank promotes a bank-led model for financial inclusion, requiring banks to prepare Board approved Financial Inclusion Plans (FIPs) integrated with CBS, subject to structured monitoring and annual top management reviews. Complementary institutional arrangements (FSDC, technical groups, FIAC, SLBCs), financial literacy centres and a mix of branch and BC networks support rollout. Operational measures include frontloading rural branch openings, allotting unbanked villages to banks, Aadhaar seeding and camp-mode account opening for DBT, and systematic monitoring of transaction volumes and FI costs to ensure commercial viability and scalability.

Energy cooperation expanded via oil and gas exploration commitments and banking facilitation to boost bilateral connectivity.
Emphasis on expanding bilateral sectoral cooperation: developing a textile and silk value chain using India's handloom expertise, and deepening energy cooperation through Indian interest in onshore and offshore oil and gas exploration and revival of pipeline discussions. Complementary regulatory and commercial facilitation includes proposed entry of Indian banks and assistance to strengthen Myanmar's banking system, and prioritisation of infrastructure connectivity-air, road, inland waterways, cross-border rail and direct shipping-with Joint Working Groups to assess technical and commercial feasibility.

Merger of balance sheets proposed: single balance sheet and unified income statement for the central bank's financial reporting.
Merger of the Issue and Banking Department balance sheets into a single consolidated balance sheet is recommended, with principal items shown on the face and details in schedules. The 'Profit & Loss Account' should be renamed 'Income Statement'; unrealised valuation gains and losses must be routed through the Income Statement with corresponding net transfers to various reserves shown as a single 'Provisions' item. Accounting policy to follow IAS/IFRS generally, permit departures, carry rupee securities at fair value with revaluation via the Investment Revaluation Account, treat Oil Bonds as Held to Maturity, other securities as Available for Sale, and record repo/reverse repo as lending/borrowing.

Basel III capital reforms bolster bank solvency and liquidity; India tightens standards and expands oversight of shadow banking.
The address sets out India's regulatory responses to crisis lessons: implementation of Basel III consistent with higher domestic capital and liquidity standards and a phased timetable; strengthened oversight of shadow banking via regulation and restriction of deposit taking by NBFCs alongside enhanced surveillance and enforcement; a policy tilt toward subsidiarisation of foreign banks with conversion incentives and pending legal clarifications; incremental OTC derivatives reforms focused on standardisation, reporting, central clearing and guaranteed settlement; and debate over institutional arrangements for macroprudential oversight centered on the role of the Financial Stability and Development Council.

Validity of in-principle approval extended to allow smoother transition; applicants must coordinate NOFHC alignment with sector regulators.
Two principal clarifications affect implementation: the validity period of the in-principle approval for setting up the NOFHC/bank has been extended to permit additional time for reorganisation, restructuring and compliance with regulatory conditions attached to approvals; and where NOFHC-related requirements intersect with other sectoral regulators, intending applicants must approach those regulators to bring their entities under the NOFHC, with those regulators' decisions prevailing, while the proposed bank and all RBI-regulated entities must, at minimum, be under the NOFHC.

Bank licensing clarifications to be published online, clarifying eligibility, documentation, and application procedures for prospective applicants.
Publication of clarifications concerning the Guidelines for Licensing of New Banks in the Private Sector to address substantive queries from prospective applicants. The Reserve Bank invited written queries, examined a large volume of submissions, and will post consolidated responses on its website to clarify eligibility conditions, documentation expectations, and procedural mechanics for new bank licensing.

Deposit due diligence: verify NBFC registration and authorisation before depositing; RBI does not guarantee repayment.
Advisory urging depositors to verify that an NBFC is registered with and specifically authorised by the Reserve Bank to accept deposits via the RBI's published list, confirm the NBFC displays its Certificate of Registration, and obtain a signed receipt stating deposit particulars; the Reserve Bank does not guarantee repayment, NBFCs may not use the RBI name, unusually high promised returns indicate higher risk, and complaints about unauthorised deposit-taking or non repayment should be lodged with local police, the Economic Offences Wing, or the Registrar of Companies as appropriate.

Provisional 2012 13 national income: GDP estimated at Rs.55,05,437 crore (5.0% real growth) with sectoral and expenditure revisions.
Provisional estimates revise 2012-13 national income: GDP at factor cost (2004-05 prices) is Rs. 55,05,437 crore (5.0% growth) and at current prices Rs. 94,61,013 crore (13.3% growth). Revisions use updated agricultural, industrial and sectoral indicators. Sectoral revisions show modest agricultural growth, negative mining growth, trimmed manufacturing and construction growth, and stronger services performance. Expenditure-side composition (PFCE, GFCE, GFCF, exports, imports, stocks, valuables) and Q4 quarterly estimates (Q4 GDP at constant prices Rs. 14,70,782 crore; 4.8% growth) are reported.

Separation of Banking and Trading: proposed ring-fencing and proprietary trading limits may reduce market liquidity and raise costs.
Post-crisis reforms promote separation of deposit-taking banking from trading-via ring-fencing, group-level separation or prohibition of proprietary trading-affecting liquidity, costs and compliance for banks in forex, government securities and swaps. Regulators also push central clearing, trade reporting, and higher capital for non-cleared OTC derivatives to reduce bilateral interconnectedness while concentrating risk in CCPs. RBI favours calibrated rupee internationalisation, selective trade settlement, hedging facilitation, strengthened oversight of unhedged corporate exposures, coexistence of OTC and exchange-traded derivatives, trade repository reporting and phased adoption of settlement and capital norms.

Monetary policy stance divided: recommendations on rate cuts versus status quo amid weak demand and persistent inflation.
Views were divided on monetary policy: three external Members recommended reducing the policy repo rate (with some favouring CRR or SLR cuts and OMOs to improve liquidity and credit transmission) on grounds of weak aggregate demand and softer inflation expectations; four Members recommended keeping the policy rate unchanged, citing structural impediments to investment, fiscal fragility and high current account deficit risks which, together with inadequate transmission of past rate cuts, limit the potential effectiveness of further easing.