Business
RBI may raise policy rates by 75 bps cumulatively in next 2 reviews: SBI Research

SBI Research expects the central bank, Reserve Bank of India (RBI), to raise key policy rates both in its June and August policy meeting by a cumulative 75 basis points.
Beyond August, rate actions might be more balanced and judicious and the terminal repo rate is expected to be at 5.15-5.25 per cent by FY23, it said.
This is tantamount to saying that the RBI should not increase the repo rate by more than 1.25 per cent for an incremental negative contribution to kick in.
Retail inflation surged to 7.79 per cent on yearly basis in April 2022, as compared to 6.95 per cent in March 2022, mainly on account of food price inflation.
Inflation prints are now likely to stay higher than 7 per cent till September, the SBI Research said in a report.
“Beyond September, inflation prints could hover between 6.5-7.0 per cent. Our FY23 inflation forecast is at 6.5 per cent, taking into account the possibility of an extended food price shock,” it said.
The Russia-Ukraine conflict has significantly impacted the trajectory of inflation.
The latest April inflation print shows wheat, protein items (chicken in particular), milk, lemon, cooked meal, chillies, refined oil, potato, chillies, kerosene, firewood, gold and LPG are contributing to overall inflation in a substantive manner.
Interestingly, inflation in protein items like chicken, mustard oil etc, softened in April.
However this might be an aberration, given that April was the month of Navratri and other religious festivals, it added.
Surprisingly, the contribution of petrol and diesel in overall inflation has been declining steadily since October 2021, while there is a steady increase in the weighted contribution of kerosene and firewood in headline inflation.
The significant increase in weighted contribution of kerosene perhaps reflects the impact of high fuel costs in rural areas. This does not augur well for rural demand.
“The weighted contribution of LPG has also increased, reversing a downward trend. This however, may be attributed to commercial usage of LPG.”
Besides, the report said the RBI may increase the CRR rate by another 100 bps, after raising it by 50 basis points recently.
The RBI can give back to the market at least 3/4th of the Rs 2.6 lakh crore absorbed through the CRR hike, or Rs 1.95 lakh crore, in some form to address duration supply.
It would lower the market borrowing to around Rs 12.36 lakh crore for FY23 compared to the Budget estimate of Rs 14.3 lakh crore, the report added.
Further, SBI research added that the fall of the rupee to new lows, with spiking volatility breaching the psychological levels of 77 augurs the uneasy situation, reflective of the turbulence in broader markets globally, and the limited choices before the central bank in managing the exchange rate, even with seemingly comfortable levels of forex reserves close to $600 billion.
“We don’t expect the rupee to breach the levels of 80 and instead show an appreciative bias over time,” it said.
National
Maha govt tables bill to set up Gadchiroli district mining authority

Mumbai, June 30: The Maharashtra government on Monday tabled the bill for the establishment of the 16-member Gadchiroli District Mining Authority for the coordination and supervision of orderly and rapid development of the mineral-bearing area and execution of plans and projects.
The authority will be headed by Chief Minister Devendra Fadnavis, who is also the Gadchiroli district guardian minister. The government’s move is important as it hopes to finish the Left Wing Extremism (LWE) and develop Gadchiroli as the next steel city of India.
The district is endowed with abundant minerals such as iron ore, hematite, magnetite, BHQ, limestone, Dolomites and coal, which are used as raw materials for various manufacturing industries.
Further, Gadchiroli district, which is rich in iron ore, has the potential to be developed as a hub for mineral-based industries, especially the steel industry, said the bill.
“Currently, the absence of an integrated administrative mechanism hampers the swift execution of the mining project. Hence a need was felt for the establishment of a unified authority comprising of certain ministers and secretaries of the relevant departments under the chairmanship of the Chief Minister to expedite mining approvals and foster the growth of mineral based industries such as steel and cement, thereby accelerating the holistic development of the Gadchiroli district and consequently of the state,” said the bill.
It pointed out that the authority will act as a catalyst in speeding up the process of operationalisation of approved mining leases, and will also generate employment in the district and boost the revenue of the state.
According to the bill, the Mines and Minerals (Development and Regulation) Act, 1957, and rules framed thereunder govern the development and regulation of mines and minerals. The major mineral blocks are auctioned following the Mineral (Auction) Rules, 2015. The mining concession holder is required to obtain various clearances and no-objection certificates from various departments and district officers of the government and local authorities within the timelines prescribed in the rules.
If the bidder fails to meet the prescribed timeline, the alloyed major mineral blocks will have to be auctioned again.
The Chief Minister last week at the industry conference said, “Gadchiroli 10 years ago was zero industrial area, nobody thought that it would become an Industrial magnet. Due to a slew of policies, Gadchiroli is becoming a new steel city of India to produce one-third of India’s steel that will change the entire outlook of the district.”
National
Hindi cannot be forced now in Maharashtra: Uddhav Thackeray

Uddhav Thackeray
Mumbai, June 30: Shiv Sena(UBT) chief Uddhav Thackeray on Monday said the Hindi language cannot be forced upon people now as the power of the Marathi people has compelled the state government to withdraw two of its resolutions on introducing Hindi along with Marathi and English for Classes 1 to 5.
Thackeray, who attended the Monsoon Session of the state legislature on its first day, said, “We will announce in two to three days what exactly the victory rally or victory march will be like and where on July 5 it will be held (as the joint morcha has been cancelled due to the government’s decision). We are also talking to everyone about that. The Marathi traitors raise their heads as soon as they realise that we are a little scattered. Yesterday, we crushed this head. If we don’t want them to come back, then we should maintain this unity instead of waiting for another crisis. We will not stop until we create a vision of this unity on July 5. We will definitely celebrate the victory. Everyone forgot their party differences and came together with us during the movement. We need to show the same unity in the victory march.”
“Love for the mother language should be beyond the party, the government has made a lot of efforts. Still, I thank them. A new committee has been appointed under the chairmanship of Narendra Jadhav (former Planning Commission member). I am telling the government that this is a matter of education, and you have appointed a committee of an economist. Whatever the committee, the issue of compulsion is over now. Even if a committee is formed now, Hindi cannot be forced on us; the power of the Marathi people has shown this yesterday,” said Thackeray at the press conference.
Thackeray said that the slogan of ‘Jai Maharashtra’ has once again been raised in every village and corner of Maharashtra.
“Shiv Sena and Shiv Sainiks were at the forefront in raising this slogan of Maharashtra. But along with that, I sincerely thank all the political parties and Marathi-speaking people who forgot their party differences and participated. We will know in the coming days whether the government has shown wisdom or not. But they immediately cancelled the government resolution on making Hindi compulsory. It was achieved due to the unity of the Marathi people. If they had not cancelled it, many Marathi lovers from the BJP, Shinde group and Ajit Pawar group would have participated in the July 5 morcha, which now will become a victory rally,” he added.
Thackeray on Sunday said the government’s power faced defeat before the power of Marathi Manoos on the contentious issue of the introduction of Hindi as a third language after Marathi and English for Classes 1 to 5. “Now this unity of Marathi people should continue,” asserted Thackeray.
“The BJP’s hidden agenda was to divide the Marathi people and attract the non-Marathi voters by raking up the Marathi vs Non-Marathi issue. But the good news is that the Marathi people took a sensible stance. They are not against the Hindi language, but against coercion. Since there was a movement against coercion, there was no division. The government thought that the division of the Marathi people would be beneficial to it,” claimed Thackeray.
Crime
CBI books ex-SBI branch manager in Assam for illegal assets of Rs 80 lakh

CBI
New Delhi, June 30: The CBI has booked a former manager of the State Bank of India branch in Assam for possessing allegedly illegal assets worth over Rs 80 lakh, an official said on Monday.
Pinku Kumar, former Branch Manager, SBI, Ramkrishnanagar Branch, Karimganj, is also facing a separate investigation over his alleged collusion in a multi-crore scam involving sanction of loans using forged documents, the official said.
CBI’s Shillong-based Anti-Corruption Branch (ACB) registered the latest Disproportionate Assets case against Pinku Kumar on June 27 after receiving a complaint from a preliminary investigator.
The complaint alleged commission of criminal misconduct by Pinku Kumar while intentionally enriching himself illicitly, during the check period from April 1, 2019 to March 27, 2025.
During this period, he was found in possession of pecuniary resources/property, disproportionate to his known sources of income which he cannot satisfactorily account for, to the tune of Rs 99.20 lakh -(81.84 per cent DA), said the CBI FIR filed against the former bank manager.
Taking note of the preliminary probe conducted in the matter of criminal misconduct, the CBI’s FIR said, “The facts mentioned in the aforesaid complaint, prima facie, reveal commission of congnizable offences, punishable under Section 13(2) read with 13(1)(b) of the Prevention of Corruption Act, 1988 (as amended 2018) on the part of Pinku Kumar.”
Section 13 of the Act defines various forms of criminal misconduct by public servants. These include actions like abusing their position, misappropriating property, or possessing assets disproportionate to their known sources of income.
Earlier in March, the CBI booked Pinku Kumar twice in separate corruption cases naming two brokers Sumen Paul and Jadab Paul, along with the former, in each of the cases.
Raids conducted by the federal agency in these two cases led to seizure of 481 grams of gold, 11.11 gram of diamond-studded jewellery and 1,092 gram silver.
The CBI investigation showed that the former bank manager conspired with the two brokers and allegedly approved loans base on forged papers, leading to a loss of crores of rupees to the SBI.
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