Why RBI is worried about Vodafone’s mobile tariff proposal
The telecom companies’ proposal for a hefty raise in mobile tariffs is adding to the worries of the Reserve Bank of India.
Vodafone Idea has sought at least 7-8 times hike in mobile data tariffs and call charges at 6 paise per minute in order to meet its to pay its AGR (Adjusted Gross Revenue) dues.
The debt-laden telecom firm has asked increase in mobile internet prices from current Rs 4-5 per gigabyte to a floor of Rs 35 per GB and fixing of minimum connection charges at Rs 50.
What does RBI want?
The central bank feels if the tariffs are implemented it would add to spiralling inflation. RBI is also worried about the court order on banks, which have lent heavily to the telecom sector.