The Sensex, the Rupee, the FIIs and the RBI
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The Sensex, the Rupee, the FIIs and the RBI

There is a sense of panic gripping financial markets in India. The immediate causes are a combined slide of indices of stock markets and of the rupee vis-à-vis the US dollar. At the root of this problem is the hugely increased presence of foreign financial capital in India’s market. That consequence of financial liberalisation cannot be easily corrected.

The Banking Sector Reveals the Middle Classes Aren’t Really Getting a ‘Bonanza’
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The Banking Sector Reveals the Middle Classes Aren’t Really Getting a ‘Bonanza’

The price for the NPAs of the big corporates is ultimately paid by the aam aadmi. Given that such huge provisions for the NPAs tie up a large portion of funds, it in effect limits the credit available for lending to key sectors like agriculture or MSMEs.