Mar 20, 2017 - Rupee's surge may push RBI to use rare cash tool

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Sree Vijaykumar From the Editor's Desk The idea that the poor and the not-so-rich could come to resent the fortunes of the well-off in an unequal and socially stratified society was first articulated by the influential economist Albert Hirschman in a 1973 research paper. Hirschman, who taught, among other places, at Harvard University named this the "tunnel effect". The tunnel effect referred to a parable about multi-lane traffic that the authors used to describe inequality's impact. New York University development economist Debraj Ray presented a modified parable to explain this effect in a 2010 research paper. "You're in a multi-lane tunnel, all lanes in the same direction, and you're caught in a serious traffic jam," wrote Ray. "After a while, the cars in the neighbouring lane begin to move. Do you feel better or worse? At first, movement in the other lane may seem like a good sign: you hope that your turn to move will come soon, and indeed that might happen. You might contemplate an orderly move into the moving lane, looking for suitable gaps in the traffic. However, if the other lane keeps whizzing by, with no gaps to enter and with no change on your lane, your reactions may well become quite negative. Unevenness without corresponding redistribution can be tolerated or even welcomed if it raises expectations everywhere, but it will be tolerated for only so long. Thus, uneven growth will set forces in motion to restore a greater degree of balance, even (in some cases) actions that may thwart the growth process itself." Is this what's happening in India? And does this explain the note-ban benefit the BJP is enjoying right now? More here Advertisers of the day DLF - Crest: Embrace a life made to order a rare opportunity to own your dream home Gartner: New Webinar: Infrastructure and Operations Leadership Vision for 2017   Our advertisers help fund the daily operations of TradeBriefs. We request you to accept our promotional emails (B2B Decision-Makers, B2C Decision-Makers, TradeBriefs Premium). Rupee’s surge may push RBI to use rare cash tool RBI may consider raising the cash reserve ratio for the first time since 2010 if deposits accumulated due to demonetisation don’t flee over the coming months Advt: Employee Banking privileges tailored just for you. Zero Balance Savings Account. Free unlimited transactions* at all Bank ATMs (Know More)   Advt: Lending solutions for all your long-term business needs No company starts big. They grow over time. Standard Chartered will be your companion in this growth journey, giving you solutions that fit your needs at every stage (Know More) Foreign investors’ buying spree strengthens rupee against dollar At 9.15am, rupee was trading at 65.38—up 0.14% from its Friday’s close of 65.48 Can Modi’s ‘Make in India’ drive address India’s productivity challenge? India’s productivity growth has been led by a few capital-intensive sectors, and has witnessed a slowdown in recent years More hedge funds shut last year than since 2008 crisis Liquidations totalled 1,057 last year, the most since 2008, according to data released Friday by Hedge Fund Research Inc. The shrinking share of public sector banks It is very likely that the loss in market share of public sector banks will continue as the government dithers on recapitalizing them How sticky are cash deposits made in banks as a result of demonetisation? If people are make less cash withdrawals and keeping money more with banks, then that is one positive fallout of demonetisation Some D-Mart IPO investors will make money only if it lists at 50% premium Grey market prices are pointing to a strong listing of Rs 550 per share, considered more profitable than most of its peers in the Indian retail sector. UrbanClap’s Abhiraj Bhal: The dream is to define the on-demand category in India and globally UrbanClap co-founder Abhiraj Bhal on the opportunity that is India’s on-demand services market, the barriers it poses for new entrants and aspiration of building a long-lasting business Chinese smartphone maker LeEco not to exit India, to focus on TV business LeEco India COO Alex Li says no there are no plans to exit India but work out a strategy to manage operations and be cautious with investments Private Equity now funds 75% of Indian property market as banks pull out Bank credit to realty sector has witnessed sharp reduction in the last 2 years. Rising non-performing assets, mounting losses in realty sector have led to reduction in credit offers by banks. Govt lays down strict conditions for capital infusion in PSU banks The conditions for bank recapitalization include active bad loan management, fundraising from markets, selling non-core assets and shutting money-losing bank branches Vittorio Colao may be harbinger of Vodafone-Idea merger news The trip, which comes several months ahead of his traditional September-October annual visit, is aimed at sorting out key issues related to the merger. Oman India Joint Investment Fund exits Kotak Mahindra Bank Oman India Joint Investment Fun and SBI had invested Rs65 crore in ING Vysaya, a bank bought by Kotak Mahindra Bank in 2015 Per capita debt of a country and why it should concern you The per capita total debt increased by an amount of Rs4,525, and reached Rs53,796 on 31 March 2016 Centre to infuse Rs 8586 crore capital in 10 weak banks The infusion is subject to a tripartite agreement between the central government, banks and the unions for a time bound turn around programme, according to AIBEA. Cabinet nod for merger of Bharatiya Mahila Bank with SBI likely in 3 months Says employees of associate banks will benefit FarEye's retail technology is here “The retail industry across the world is taking an online shift and a digital supply chain is the mandate today for them to sustain and grow,” said CE Kushal Nahata. In expansion mode, Reliance Retail may spend Rs 2500 crore At the end of the third quarter of FY17, Reliance Retail operated 3,553 stores across 686 cities Online giants plan offline push to sell smartphones The offline foray will be made by Flipkart India, which runs the wholesale arm. At Amazon, the move is being undertaken by Amazon Wholesale India, executives said. McDonald's: McDonald's rejects financial data leak of customers in India The quick service restaurant's statement came after a post on independent blogpost hackernoon claimed that McDonald's India is leaking data of 2.2 mil.. LeEco will not exit Indian market, to launch new products in 2017: COO Future Group to expand affordable fashion retail format Addressing a press conference on Saturday, Biyani said the retailer plans to sell 23 crore units of garments by next year March and expects it to grow to 80 crore units by 2021. Creambell enters Tamil Nadu market; to invest Rs 150 crore Creambell currently has 15,000 pushcarts and 70,000 retail stores across the country. Forever 21 debuts in West Bengal with first store launch in Siliguri The store is spread over 6,000 Sq.ft of retail space and is located in the heart of the city at the Vega Circle Mall. 'Raze illegal mobile towers' Margao: The gram sabha convened by Dramapur village panchayat has resolved to demolish mobile towers allegedly illegally erected overnight in Zamcotto ward in the village sans permission of the Dramapur village panchayat, said sarpanch Bernard Rebello. Vodafone India signs pact with Amazon Prime, Telecom News, ET ... Telecom operator Vodafone India will offer Amazon Prime video to its customers, as part of its strategy to enhance revenue from video content. Vodafone India, which has over 204 million customers including 106 million users in rural areas, is struggling to enhance the number of mobile Internet subscribers due to pricing competition from Reliance Jio Infocomm … BSNL-MTNL merger: DoT working on plan, likely to approach Cabinet by June-end Telecom ministry feels a govt operator important to keep a check on cartelisation China ahead of India in internet access: Report China is way ahead of India when it comes to internet access and smartphone ownership, a latest Pew Research report has said. . Xiaomi Redmi 4A will be Amazon exclusive, launches on March 20 Xiaomi Redmi 4A will be an Amazon exclusive smartphone when it launches on March 20 in India Apple: Apple to start manufacturing in India soon, Telecom News, ET ... Apple's move comes as the smartphone sales growth is slowing in Asia's other massive market, China. India: Bharti Airtel close to buying Tikona's 4G spectrum India: Bharti Airtel close to buying Tikona’s 4G spectrum Despite directive, service charge still levied at many restaurants across India Sources said that the Centre merely passed a guideline which has no legal validity. McDonald's rejects financial data leak of customers in India The quick service restaurant's statement came after a post on independent blogpost hackernoon claimed that McDonald's India is leaking data of 2.2 million users. ITC gets shareholders' nod to enter healthcare Having diversified into FMCG and other businesses, tobacco giant ITC on Friday got shareholders' nod to enter the healthcare sector and plans to set u.. Fertiliser major GNFC eyes Rs 500 cr turnover from Neem products After the success of its Neem soap and hair oil, it now plans to launch Neem hand wash and shampoo Ram Vilas Paswan rules out separate law to regulate MRP of packed items MRP of products is fixed by private firms. But there have been complaints of charging more than MRP and declaring dual MRP. Ramdev wants to take Patanjali products to China, Bangladesh and others FMCG major Marico to acquire 45 percent stake in men's grooming FMCG major Marico has acquired about 45 per cent stake in men's grooming brand Beardo, Marico and Beardo to style beards together Mumbai: Parachute maker Marico has entered into a strategic investment in Zed Lifestyle, the owner of "Beardo" male grooming brand, by acquiring a 45% equity stake for an undisclosed amount. Check out expiry before you order food online LocalCircles conducted a survey of 10,000 consumers, who said they ordered food products on a small discount only to find that the expiry was one month instead of the full shelf life. Tropicana Loses Share In India's Juice Market While Dabur Real Juice Rises Tropicana, PepsiCo’s juice brand in India has lost 5% off its share in India’s packaged juice market. Meanwhile, Dabur’s Real juice brand has gained value in the Rs.2000 crore packaged BRIEF-Dabur India starts commercial production at co's Assam plant Dabur India Ltd: Phishing season: Cyber criminals have adopted innovative means to cheat people. With Uttar Pradesh topping the list of cyber crime cases in the country, ADITI VATSA takes a look at a few cases of online financial fraud reported in Noida. TradeBriefs Publications are read by over 10,00,000 Industry Executives India Business Brief | India Retail News | India Food Brief | India Telecom Brief | India Finance Brief | India Software Brief | India Digital Brief | India Ecommerce Brief | India Franchise Brief | India HR Brief | India Logistics Brief | India Construction Brief About Us  |  Advertise Privacy Policy    Unsubscribe You are receiving this mail because of your subscription with TradeBriefs. Our mailing address is GF 25/39, West Patel Nagar, New Delhi 110008, India