RBI
RBI monitoring credit market, will act on issues proactively: Das
When asked about the slower pace of deposit growth as compared to credit growth, the RBI governor also said that banks were mindful of the issue and taking necessary actions, Das said that banks should be allowed time for the results to show.
REC, PFC shares rise 4% on RBI's plan to ease stricter infrastructure funding norms
Shares of PFC and REC rose over 4% on BSE as the RBI considers a staggered approach to increasing provisioning requirements for project financing. This move aims to mitigate the impact on lenders and avoid making projects unviable.
RBI’s steeplechase with cyclical and structural hurdles
As the RBI intensifies its regulatory tightening, the banking sector will need to negotiate with slower growth, lower margins, and rising credit costs. The central bank is also concerned about the recent spurts in prices of milk and mobile tariffs, which can permeate into broader inflation impetus.
More banks may get into AMC biz after RBI nod to IndusInd Bank
IndusInd Bank received approval from the Reserve Bank of India to set up a wholly-owned asset management business, a first for a mainstream lender. This move could signal more opportunities for other banks looking to diversify into para-banking sectors. The RBI had earlier allowed HDFC and ICICI Bank to increase stakes in insurance subsidiaries.
RBI ignores 'Global Dangal' in MPC meet. What does it mean for stock market investors?
Despite recent global market volatility and dovish signals from other central banks, the RBI MPC kept policy rates and stance unchanged, meeting market expectations and having a neutral impact on stock investors. Markets have been volatile recently due to US recession fears and the unwinding of the Japanese yen carry trade.
IndusInd Bank gets RBI nod to set up mutual fund asset management business
IndusInd Bank has been granted permission by the Reserve Bank of India to invest equity capital into this new venture. Despite this development, IndusInd Bank's shares dropped by 1.07% to Rs 1,349.60 on the NSE. The bank continues to show financial growth.
RBI to keep rates unchanged, retain stance amid food inflation: Goldman Sachs
Goldman Sachs expects the Reserve Bank of India to maintain interest rates and its withdrawal of accommodation stance at the August 8 meeting due to ongoing food inflation concerns. Despite a decline in core inflation, broad-based food inflation has kept headline inflation around 5% YoY in H1 CY24.
Ample space for FPIs in debt, says RBI after exclusion of some bonds from FAR category
The introduction of the Fully Accessible Route category of government bonds has been cited by JP Morgan and Bloomberg as a major reason for including Indian sovereign debt in their bond indices. The RBI had introduced the category in 2020. Only FAR bonds are eligible for inclusion in the global bond indices
Sensex falls 300 pts, Nifty below 24,200 as RBI keeps repo rate unchanged
Following the RBI's decision to keep interest rates unchanged and maintain the withdrawal of accommodation stance, Sensex and Nifty saw declines. RBI Governor Shaktikanta Das noted market alignment with RBI policies. Despite steady inflation and GDP growth forecasts, specific stocks like Infosys and Apollo Tyres experienced notable losses. Investors remain cautious amid global economic concerns.
More tightening on the way for NBFC? Stay with stronger balance sheets, 5 NBFC stocks with an upside potential of up to 29%
Choosing the right company in any sector is extremely important but when it comes to investing in NBFC stocks, it is extremely important to check on things like quality of balance sheet and parentage. There is a very clear lesson from history, if you bought Bajaj finance, wealth creation happened, if you bought DHFL then wealth destruction happened. The question would arise, why buy NBFC if it has such risks? The answer is simple, as a sector NBFC will grow at a faster rate than a number of sectors. Why will the growth be faster? Because they provide credit and credit was / is / will remain more in demand than supply. So, a provider of credit is bound to grow as the Indian economy grows
More tightening on the way for NBFC ? Stay with stronger balance sheets, 5 NBFC stocks with an upside potential of up to 29%
Choosing the right company in any sector is extremely important but when it comes to investing in NBFC stocks, it is extremely important to check on things like quality of balance sheet and parentage. There is a very clear lesson from history, if you bought Bajaj finance, wealth creation happened, if you bought DHFL then wealth destruction happened. The question would arise, why buy NBFC if it has such risks? The answer is simple, as a sector NBFC will grow at a faster rate than a number of sectors. Why will the growth be faster? Because they provide credit and credit was / is / will remain more in demand than supply. So, a provider of credit is bound to grow as the Indian economy grows
Bears edge out bulls amid wild swings on D-Street
On Tuesday, Indian markets closed lower, with the Nifty dipping below 24,000 for the first time in six weeks. Despite gains in Asian markets, local equities failed to sustain growth due to concerns over US economic conditions and geopolitical issues. Foreign investors continued to sell, weakening the rupee further.
Hawkish RBI rattles D-Street: Sensex tumbles 582 points, Nifty below 24,150
The RBI kept rates unchanged for the ninth consecutive meeting and maintained its 'withdrawal of accommodation' policy stance. Governor Shaktikanta Das cautioned against complacency despite the easing of core inflation, noting that the pace of inflation moderation has been slow. The market capitalisation of all listed companies on BSE dropped by Rs 2.8 lakh crore to Rs 445.77 lakh crore.
RBI wants to make unified Payment Interface (UPI) and RuPay truly global, says RBI governor
UPI is an instant real-time payment system developed by NPCI to facilitate inter-bank transactions through mobile phones. NPCI backed RuPay debit and credit cards compete with international networks like Visa and Mastercard. Speaking at the same Fintech Fest, the Governor also said RBI will focus on strengthening financial infrastructure, including cross-border payment systems. “India, with its tech talent and evolved fintech ecosystem, holds the potential to serve as a global hub for digital innovation and fintech startups,” he said.
RBI MPC Minutes: Food inflation pressures showing little signs of abatement, warns RBI
The Reserve Bank of India’s latest Monetary Policy Committee meeting minutes revealed that headline inflation rose to 5.1% in June, driven by food prices. Although future inflation might be lower due to the base effect, persistent food inflation remains a concern. The RBI has kept the repo rate unchanged at 6.5% to monitor these economic conditions.
RBI steps up measures to drain out excess liquidity
RBI takes measures to manage liquidity as foreign inflows increase post JP Morgan index inclusion. Actions include selling government bonds and conducting sell-buy swaps in the forwards market. These steps aim to control rupee appreciation and excess liquidity in the banking system.
IDBI Bank shares rise 7% after RBI submits 'Fit & Proper' report
IDBI Bank's shares surged 7% to Rs 94 on BSE after RBI approved 'fit and proper' bidders ahead of Union Budget 2024. The bank, earmarked for privatization, awaited RBI's nod for bidders meeting regulatory norms to progress in the privatization process.
Final guidelines on project loans likely in 2-3 months: RBI official
The final guidelines for project loans are expected to be announced in the next two to three months, according to a senior RBI official. The official added that the Expected Credit Loss-based provisioning norms are also in advanced stages of discussion. Up to 60 responses have been received on the draft guidelines, which are currently being reviewed.
Responsible lending is as important as responsible borrowing: RBI official
A senior RBI official emphasised the need for responsible lending to build consumer trust and protection in digital lending using AI/ML models. With AI's growing role in credit assessment, banks need to focus on governance and financial literacy. Digital lending is expected to surpass $1 trillion by 2030.
Paytm soars 10%, hits upper circuit after govt approves FDI proposal for payment aggregator biz
Paytm FDI Proposal Approved: Shares of fintech major Paytm surged up to 10% intraday on Friday following government approval of its foreign direct investment (FDI) proposal for the payment aggregator business. The financial services secretary announced that Paytm can now approach the Reserve Bank to seek the payment aggregator license, which will undergo further evaluation.
Why is investor Madhu Kela supportive of F&O market curbs on speculative trading?
Madhusudan Kela has over Rs 2,092.2 crore invested in various stocks. He suggests increasing the lot size in the stock market to deter excessive retail participation. He believes this would be a better solution than imposing additional taxes, which he considers excessive and harmful to the market.
RBI buying back SGBs: Should you tender?
The Reserve Bank of India has decided to offer early redemptions for 30 Sovereign Gold Bond series maturing from October 2024 to March 2025. Investors can choose to withdraw early starting September 2024. Financial experts advise against early redemption to maximize benefits, as past bond holders earned an average return of 10.94%.
RBI's mandate for fintech SRO; Instamart’s new CEO
The Reserve Bank of India (RBI) expects self-regulatory organisations (SROs) to safeguard consumer interest and ensure responsible growth in the fintech sector. More on this on today’s ETtech Top 5.
LGBTQ persons can open joint bank account: FinMin advisory
The finance ministry has clarified that there are no restrictions for LGBTQ individuals to open joint bank accounts or nominate partners in a queer relationship as nominees. This advisory follows a Supreme Court order from October 2023. The Reserve Bank of India has also issued guidance to all banks on this matter.
RBI for periodic revision of deposit insurance coverage
RBI Deputy Governor M Rajeshwar Rao indicated the need for periodic increases in the deposit insurance coverage limit due to factors such as inflation and income growth. He noted that 97.8% of accounts in India are fully protected, surpassing the global standard of 80%. He also discussed the possible challenges of implementing risk-based premiums in India's varied banking sector.
We are now focusing on making the UPI and the RuPay truly global: RBI Governor Shaktikanta Das | Live
RBI Governor Shaktikanta Das speaks at the 2024 Global Fintech Fest. The Global Fintech Fest (GFF) is one of the largest fintech conferences, organised annually by the Payments Council of India (PCI), the National Payments Corporation of India (NPCI), and the Fintech Convergence Council (FCC). The fifth edition of the conference has been designed around the theme 'Blueprint for the next decade of finance: Responsible AI, Inclusive, Resilient.'We are now focusing on making the UPI and the RuPay truly global: RBI Governor Shaktikanta Das | Live
Outgoing RBI policymaker contradicts central bank on food risks
Jayanth Rama Varma — an academic whose four-year term as an external member on the monetary policy committee comes to an end in early October — said over the past year or so, “food inflation has consisted largely of transient spikes that do not spill over into core inflation.”
RBI looks to soften blow of tighter infrastructure funding rules
RBI is considering a phased approach to increasing provisioning for project financing to ease the impact on lenders and protect profitability. Projects nearing completion may receive some leniency. Despite pushback from lenders and the finance ministry, the RBI is committed to raising provisions to address risks in a sector known for delays, while avoiding cost escalations that could jeopardize project viability.
RBI appoints additional director for Bandhan Bank
The move is likely to guide the bank in succession planning. Bandhan Bank’s founder MD & CEO Chandra Shekhar Ghosh’s tenure will on July 9 while the bank is yet to appoint its next CEO. Singh is former chief general manager of RBI.
RBI Monetary Policy: RBI leaves inflation projection for FY25 unchanged at 4.5%
RBI MPC Meeting Inflation Target: The Reserve Bank of India, maintaining an inflation forecast of 4.5%, kept its key lending rate steady at 6.5%. Despite food price increases and global tensions impacting crude prices, the decision focuses on price stability and growth. RBI Governor Shaktikanta Das highlighted recent monsoon developments and core inflation moderation as key influences.
India Playbook 2024 – Budget FY25 to focus on affordable housing
One big change in the final budget could be an increase in rural expenditure including higher spends on affordable housing. RBI’s extraordinary dividend of Rs 2.1 lakh crore and impressive tax collections give the government the power to increase expenditure and still stick to its prudent policy of lowering the fiscal deficit.
Banks to soon raise Rs 40,000 crore; slew of QIPs lined up
Mumbai: Banks plan to collectively raise ₹40,000 crore in the second half for expansion. PNB, Union Bank, and others seek approval at AGMs, adhering to RBI norms. Analysts discuss government shareholding, PNB's sequential growth, fundraising plans, and premium valuations from Motilal Oswal, Dolat Capital, and Ashika Stock Broking for credit growth.
RBI issues draft norms to rationalise export-import transactions
Banks under new regulations can flag exporters with outstanding amounts, ensuring timely realization of proceeds. Transparency and efficiency are prioritized in export-import transactions, benefiting businesses of all sizes.
Decline in loan to deposits ratios in banks is because of lower money creation by RBI and substantial increase in banks profits: Nomura
The decline in loan-to-deposit ratios (LDR) within the banking system has been attributed to lower money creation by the Reserve Bank of India (RBI) and higher profits accrued by banks over the past two years, according to a Nomura report.
RBI Unveils ULI: Platform for seamless lending to ease credit for MSMEs & farmers
While delivering the keynote address at the Global Conference on Digital Public Infrastructure and Emerging Technologies, a part of RBI@90 initiative in Bangalore. RBI Governor Shaktikanta Das, on Monday, informed about the Reserve Bank of India's Unified Lending Interface (ULI), a new platform the central bank is developing for "frictionless credit". This platform is now in its pilot stage and is due to be launched nationwide.RBI Unveils ULI: Platform for seamless lending to ease credit for MSMEs & farmers
MPC should pay more heed to core inflation, says Ashima Goyal
Ashima Goyal, a member of the Monetary Policy Committee (MPC), emphasized the need to focus more on core inflation due to its significant impact on household inflation expectations. Goyal's term on the MPC will end in early October. Additionally, she suggested that the MPC should expand its role to include providing guidance on liquidity conditions in the banking system.
RBI issues guidelines for foreign investors looking at Sovereign Green Bonds
The Reserve Bank of India (RBI) has laid the ground rules for selling sovereign green bonds to foreign investors through International Financial Services Centre, better known as Gift City
RBI recognises FACE as self-regulatory organisation in FinTech sector
The Reserve Bank of India has designated the Fintech Association for Consumer Empowerment (FACE) as a Self-Regulatory Organisation in the FinTech Sector. The RBI received three applications, including FACE, for this recognition, and one application has been returned for resubmission. The governor indicated that more such organisations could be approved in the future.
RBI plans to implement uniform licensing for online and offline payment aggregators
The Reserve Bank of India will streamline its licensing process for payment aggregators by merging requirements for online and offline entities. This unified license aims to facilitate seamless operations across both domains. The RBI stresses the need for secure transactions and plans to integrate Aadhaar-enabled Payment Systems with POS machines to boost financial inclusion in rural areas.
The yield curve and what to bear in mind
Now, the market has been divided into which part of the curve to remain focussed on, as the yield curve has flattened. Whether you take 1y Tbill or 30yGSEC, the rates are around 7%, give or take. The RBI repo rate as everyone knows, is 6.5% - the next move, we and the market believe, will be down, but the timing is not clear basis current inflationary dynamics
Budget strikes right balance between fiscal prudence, stability; will boost growth: RBI Paper
The Reserve Bank of India (RBI) has praised the Union Budget 2024-25 for striking the right balance between fiscal prudence and macroeconomic stability, thereby strengthening the medium-term growth outlook. The budget aims to further strengthen macroeconomic stability and harness the potential in various sectors of the economy. The Union Budget 2024-25 narrows the fiscal deficit to 4.9%, reaffirming fiscal consolidation and aiming to maintain the Union government debt as a percentage of GDP on a declining path.
Jio Financial Services shares rise nearly 3% after RBI approval as core investment company
Jio Financial Share Price: Shares of Jio Financial Services rose 2.5% to Rs 256.5 on BSE after RBI approved its conversion from NBFC to CIC post a November 2023 application. CICs must have Rs 100 crore in assets and 90% in investments. RSI is 44.1, MACD 1.2 below signal line, stock above multiple SMAs except 20-, 30-, 50-day; price at 10:25 am Rs 351.6.
New system to ease FPI access to Gsecs awaits RBI nod
Foreign investors seek improved access to Indian bonds through global platforms, awaiting RBI approval. The new model aims for efficient trading with straight-through processing on the NDS-OM platform.
India to name new MPC members soon, dissenters from Shaktikanta Das' rate policy team to leave before crucial meet
RBI MPC Members: India's government is set to appoint new external members to the Reserve Bank of India's monetary policy committee by October. The selection panel will recommend candidates soon, with announcements expected by September's end. This move follows a global shift in central bank policies and comes before a crucial meeting on interest rates.
RBI expands e-mandate framework to include auto-replenishment for FASTag and NCMC
The RBI announced on Thursday that auto replenishment of balances in FASTag and NCMC, which trigger whenever the balance drops below a customer-defined threshold, will now be covered under the existing e-mandate framework.
Banks up tech hiring with RBI pushing for enhanced risk management
In response to the RBI's increasing focus on financial sector stability, banks are bulking up their technology capabilities by expanding their tech teams and increasing IT investments. This comes amid the growing importance of cybersecurity and the need to adopt AI-driven services, which are becoming essential components of the banking industry.
India retained its growth momentum in Q1 of FY25, says FinMin's monthly economic review
As highlighted by the report, India's key economic indicators present a positive outlook, underpinned by robust domestic activity, improving external trade, and growing capital flows. It also showed that perceived employment conditions show mixed signals, overall growth indicators suggest sustained momentum as FY25 progresses.
Tax on external remittances slashes Indians' overseas spending by 44%
The tax on external remittances from India has led to a notable drop in spending abroad. In June 2024, total remittances fell 44% to $2.2 billion from $3.9 billion the previous year, and 8% from $2.4 billion in May. Key categories like travel and studies abroad experienced significant declines.
RBI likely to issue final project finance guidelines in 2-3 months
The Reserve Bank of India is expected to release final guidelines soon on provisioning and accounting norms for project finance. Discussions are also ongoing for Expected Credit Loss guidelines. The RBI aims to implement new provisions at 5% in phases, addressing concerns from stakeholders about the increased costs for banks and borrowers.
Should the RBI Consider Raising Overseas Investment Limits for Mutual Funds?
These investments include international fund of funds (FoFs), direct equities, international ETFs, and domestic equity schemes. With the substantial increase in forex reserves, many believe that raising the overseas investment limits is both timely and necessary
At RBI’s door for reprieve: Bunch of foreign banks want ease of storing data, ask for mandate to be applied prospectively from Jan 2025
Foreign banks operating in India have requested the RBI to extend the compliance deadline for the 2018 data localization guidelines to January 2025. These guidelines require that all payment system data related to Indian customers be stored exclusively within India. The banks have already started complying with the rules for new transactions but face challenges in moving or deleting historical data stored abroad.
RBI MPC Live Updates - RBI Monetary Policy Meeting: Premature to talk about recession in US but we are watchful, says Shaktikanta Das in post-MPC meet presser
RBI MPC Meet LIVE: The Reserve Bank of India's Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.5% for the ninth consecutive time. RBI Governor Shaktikanta Das announced the decision, which was made with a 4:2 majority. The MPC also decided to retain the withdrawal of accommodation stance. "We are seeing good convergence between market expectations and RBI policies; they are well aligned," Das stated.Interest Rates Unchanged: The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has decided to keep its key interest rate and policy stance unchanged, aligning with expectations. The repo rate remains steady at 6.50% for the ninth consecutive time. Withdrawal of Accommodation Stance: The MPC continues with its 'withdrawal of accommodation' stance, emphasizing the importance of vigilance against risks while maintaining current monetary policies. MPC Meeting and Decision: The MPC, comprising three RBI members and three external experts, met from August 5-7 and voted 4:2 to maintain the repo rate at 6.50%. The Standing Deposit Facility (SDF) rate stays at 6.25%, and both the Marginal Standing Facility (MSF) rate and Bank Rate remain at 6.75%. Focus on Inflation: Governor Shaktikanta Das highlighted that inflation, particularly food inflation, remains a concern, noting that food prices significantly impact headline inflation. Despite a drop in core inflation, vigilance is necessary. Inflation and Growth Projections: The RBI maintains the inflation forecast for FY25 at 4.5%, with quarterly adjustments: Q2 inflation revised to 4.4% (from 3.8%), Q3 to 4.7% (from 4.6%), and Q4 eased to 4.3% (from 4.5%). The GDP growth forecast for FY25 stays at 7.2%, with Q1 slightly reduced to 7.2%. Economic Outlook: A relief in inflation is anticipated due to good kharif sowing and a favorable southwest monsoon. The real GDP for Q1FY26 is projected at 7.2%. Forex Reserves and UPI Tax Payment: India's foreign exchange reserves reached a record high of $675 billion as of August 2. The RBI has increased the UPI tax payment limit from Rs 1 lakh to Rs 5 lakh per transaction. Digital Lending and Cheque Clearing Initiatives: The RBI plans to establish a public repository for digital lending apps to curb unauthorized lenders. Additionally, a proposal to introduce continuous cheque clearing has been made. Governor's Concerns: Shaktikanta Das emphasized the need to monitor mobile tariffs and milk prices closely and expressed concern over rising top-up home loan disbursements, urging lenders to take corrective actions.
IDBI Bank hikes FD rate to 7.85% for 444-day tenure
IDBI Bank has raised its fixed deposit rate to 7.85% for a 444-day tenure and 7.75% for a 375-day tenure to attract more deposits. This offer, valid until September 30, 2024, makes the Utsav Fixed Deposit more attractive for customers. Other tenures under this scheme include 7.70% for 700 days and 7.55% for 300 days.
How balanced is the surplus Balance of Payments!
RBI's BoP data shows a $5.7 bn surplus for March 2024, driven by service exports and $107 bn remittances. It reverses an $8.7 bn deficit. Fiscal year's deficit is $23.3 bn. Merchandise trade deficit narrowed. Despite the surplus, net FDI flows dropped, and rupee appreciation is unlikely. Global Captive Centers indicate services expansion, but domestic manufacturing growth remains subdued.
RBI Governor Shaktikanta Das ranked top central banker globally for the second consecutive year
Reserve Bank of India Governor Shaktikanta Das has been rated “A+” for the second consecutive year in the Global Finance Central Banker Report Cards 2024. The annual report, published by Global Finance since 1994, evaluates central bank governors from nearly 100 countries on inflation control, economic growth, currency stability, and interest rate management.
Abandoning RBI's inflation target regime could be risky, counterproductive: Research paper
Economists Barry Eichengreen and Poonam Gupta have highlighted the effectiveness of the Reserve Bank of India's (RBI) inflation targeting framework. They advised against switching to a discretionary regime and suggested reducing food-price inflation's weight in the CPI basket. The framework has contributed to lower, less volatile inflation and better-anchored expectations.
RBI’s ASISO system faces glitch
The RBI faced a technical glitch in the Automatic Sweep-In and Sweep-Out (ASISO) facility, impacting banks' funds visibility. Daily money market data publication was delayed. The RBI is resolving the issue to reconcile banks' outstanding transactions. Market participants, bank treasury executives, and sources are monitoring the situation. The glitch occurred before the usual 9 a.m. data publication time.
Banks' borrowings cross ₹9 lakh crore as credit growth outshines deposits
Mumbai's banks saw their borrowings exceed ₹9 lakh crore by July 26, with credit growth outpacing deposit accumulation. As a result, lenders turned to short-term funding methods like interbank repo operations and infrastructure bonds. Despite some improvement in deposit accretion, banks continued to face liquidity shortages, prompting increased market borrowing to meet the rising credit demand.
RBI leaves interest rates, stance unchanged for ninth straight time
The RBI kept interest rates unchanged for the ninth straight meeting due to inflation worries from high food prices. Economic growth outlook remained strong, but the central bank emphasized vigilance on inflation. The policy decision caused a decline in stock markets, highlighting ongoing concerns about inflation.
Monetary policy must be disinflationary to quell food price pressures: RBI bulletin
The Reserve Bank of India might continue its disinflationary monetary policy because high food prices are affecting overall inflation and consumer perceptions. Although the repo rate stayed the same, the RBI emphasized that inflation reduction might be fragile unless food prices fall. Persistent food inflation could threaten broader economic stability.
India might need more cautious monetary policy to stem food price rise spillover, RBI says
The Reserve Bank of India indicated that persistent high food prices could require a more cautious monetary policy. Although retail inflation fell in July, the central bank anticipated it would rise again due to ongoing food price pressures. Climatic shocks were cited as a major factor behind the stubbornly high food prices, raising concerns about broader inflation trends.
'Green shoots' in FMCG: RBI says rural economy responsible for sector's revival
India's rural economy aided the FMCG sector's 6.6% volume growth in the first quarter of FY25, stated the RBI. Rising incomes, better infrastructure, and growing rural savings have contributed to this recovery, with further improvements anticipated from better monsoon conditions and increased government spending on rural development.
Revival in overseas fundraising by Indian companies reflects shifting domestic credit market dynamics: RBI Bulletin
Indian firms are turning to international markets to raise funds as global investor interest grows, and borrowing costs improve, reported the RBI. This external borrowing trend coincides with a decline in FDI inflows to $28.1 billion in 2023 from $49.3 billion in 2022, and banks are gearing up to strengthen their capital.
RBI introduces delegated payments through UPI
UPI Payments: The Reserve Bank of India rolled out a feature in August allowing delegated UPI payments. Primary users can approve transactions for secondary users, like minors, within set limits. The RBI also increased the tax payment threshold via UPI to Rs. 5 lakh, enhancing convenience and transaction speed.
India's CAD eminently manageable this year: RBI
The Reserve Bank of India stated that the current account deficit (CAD) will remain manageable for the fiscal year. Despite a widened trade deficit in Q1 2024-25, strong services exports and remittance receipts should help keep CAD sustainable. India's external debt to GDP ratio also improved, underscoring a strong external sector.
Interest rates on deposits, lending are deregulated; banks free to decide rates: RBI Guv Shaktikanta Das
On August 10, FM Nirmala Sitharaman participated in a meeting with the members of the Central Board of Directors of RBI in New Delhi. RBI Governor Shaktikanta Das was also in attendance. During the meeting, the RBI governor emphasized that banks have the freedom to decide interest rates, emphasizing that interest rates on deposits and lending are deregulated. "Banks fix their deposit rates, and they fix their interest rates. The position of the situation could vary from bank to bank. I think our real interest rates have not been very volatile. They're fairly stable," RBI Governor said.Interest rates on deposits, lending are deregulated; banks free to decide rates: RBI Guv Shaktikanta Das
Now your cheques will be cleared within few hours: Here's why
The Reserve Bank of India has stated that cheque clearance will be expedited to within a few hours. Currently, the process takes approximately two to three days. This announcement was made by the governor of the Reserve Bank of India during the Monetary Policy Committee meeting. This expedited cheque payment method will benefit both the payer and the payee. This change is set to significantly reduce the time taken for cheque clearance and bring it closer to the rapid transfer speeds offered by National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS).Now your cheques will be cleared within few hours: Here's why
To hike or not to hike? RBI watchers on guard for shift
India's central bank, led by Governor Shaktikanta Das, is expected to keep interest rates unchanged on Thursday despite global market volatility. However, a potential policy shift may be signaled as the Monetary Policy Committee's term ends in October. Inflation remains above target, but upcoming CPI revisions could impact future rate decisions.
RBI penalises CSB Bank, Union Bank of India, others
The Reserve Bank of India (RBI) has imposed penalties on five entities, including CSB Bank, Union Bank of India, and Muthoot Housing Finance, for non-compliance with regulatory norms. The penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into entities.
RBI tightens guidelines for NBFC P2P lending
RBI barring them from selling insurance products that are in the form of credit enhancement and prohibiting P2P platform from providing any assurance or guarantee on the recovery of loans.
RBI tightens norms for P2P lending platforms
The RBI issued guidelines for P2P lending in 2017. Such a platform acts as an intermediary providing an online marketplace/platform to the participants involved in peer-to-peer lending. However, it has been observed that some of these platforms have adopted certain practices, which were violative of the provisions of Master Direction 2017.
Want to make UPI and RuPay truly global: RBI governor Shaktikanta Das
RBI governor Shaktikanta Das announced plans to make UPI and RuPay global to improve cross-border payment systems. The central bank aims to create UPI-like infrastructure overseas and link UPI with other countries' fast payment systems.
RBI Governor Shaktikanta Das' Post-Monetary Policy Press Conference
Post Monetary Policy Press Conference by RBI Governor Shaktikanta DasRBI Governor Shaktikanta Das' Post-Monetary Policy Press Conference
RBI MPC meeting: India's real GDP growth for FY25 retained at 7.2%, says Governor Das
The Reserve Bank of India's policy panel retained a 7.2% growth forecast for FY25, but the outlook for Q1 was tweaked lower, as stated by Governor Shaktikanta Das. The Economic Survey projected a conservative 6.5-7% growth for FY25, citing global uncertainties and domestic challenges. Analysts like IMF and ADB set the growth forecast at 7%.RBI MPC meeting: India's real GDP growth for FY25 retained at 7.2%, says Governor Das
Your CIBIL score will be updated faster as credit information companies will now get fortnightly reports from lenders, says RBI
CIBIL score: Now credit information companies like TransUnion CIBIL, etc will get credit information report from lenders on a fortnightly basis. RBI Governor said that this will help borrowers as now they will get faster updates in their credit information report. Moreover this will also help lenders too. Read below to know more.
Banks and fin institutions must build risk-management systems to combat unprecedented tech crises: RBI
The Reserve Bank of India raised concerns over third-party outsourcing of technology by banks and financial institutions, citing a global tech outage. RBI Governor Shaktikanta Das stressed the importance of risk management and robust business continuity plans to handle such disruptions and ensure smooth service delivery.
RBI Governor Das advocates for fintech self-regulation to ensure balanced innovation with integrity
At the Global Fintech Fest 2024, RBI Governor Shaktikanta Das highlighted the importance of self-regulation in India's fintech sector, which has attracted $6 billion in investments over the past two years. He emphasized the central bank's focus on expanding UPI and RuPay globally, strengthening financial infrastructure, and fostering international cooperation. Das also introduced the upcoming Unified Lending Interface (ULI) to transform India's lending ecosystem, positioning the country as a global leader in digital finance and innovation.
RBI MPC Meet Highlights 2024: Das & Co keeps rates and stance unchanged
RBI MPC Meet 2024 Highlights: The Reserve Bank of India's Monetary Policy Committee (MPC) maintained its key interest rate and stance unchanged. The MPC, led by Governor Shaktikanta Das, will adhere to the 'withdrawal of accommodation' monetary policy stance. The repo rate is remains at 6.50% for the ninth consecutive time. India's CPI stood at 5.1% in June due to a surge in vegetable prices.
No rate cut seen in August either, but enough signs of a shift in stance
The minutes of the meeting will be available on June 21. Varma and Goyal have argued that high interest rates might be hindering potential growth. They have previously debated that a high real interest rate—the difference between the actual interest rate and inflation—could be compromising growth.
RBI proposes risk-based pricing for bank deposit insurance
The RBI proposed risk-based pricing for deposit insurance to curb rapid withdrawals through digital channels. Deputy Governor Swaminathan suggested this would push banks to adopt better risk management practices. The existing insurance covers up to Rs 5 lakh per depositor, but the shift aims to handle digital vulnerabilities and prevent bank runs.
RBI issues norms for recognition of self-regulatory organisations in financial markets
The Reserve Bank of India introduced a framework for self-regulatory organizations in financial markets, setting a ₹10 crore eligibility threshold. This initiative seeks to broaden market access, enhance participation, and safeguard users by developing industry standards and best practices, promoting compliance, and fostering innovation, especially supporting smaller sector entities.
India Q1 FY25 GDP data: Will reviving rural growth beat effects of election-time capex lag?
India Q1 FY25 GDP data: India's economy is projected to grow between 6.9% and 7.2% in Q1 FY25, affected by lower government spending and slowed urban growth. Various forecasts predict slower quarter-on-quarter growth than the Reserve Bank of India's estimates, driven by election-related spending cuts and moderated urban consumption.
Proposed changes in LCR rules to slow credit growth: Icra
Banks' liquidity coverage ratio (LCR) is set to decrease due to a rise in wholesale deposits and a decline in retail deposits, necessitating investments in high quality liquid assets. This shift could slow credit growth and keep interest rates on retail deposits high, despite anticipated rate cuts.
Corporate capex to increase led by infra financing, says RBI study
“On the downside, global financial market volatility, protracted geopolitical tensions and geo economic fragmentation could dampen the investment plans. Overall, the investment cycle is expected to remain upbeat and its sustainability needs to be watched closely,” the article said.
From CBDC, UPI ATM to Payments SRO: RBI lays out route map for fintech industry
RBI Dy Governor T Rabi Sankar expects SROs to help reduce potential risks, identify inefficiencies in the financial services system and work with the industry to sort them out in a way that consumer interest is protected even as the industry grows. Also, the regulator is looking to update the Payment and Settlement Systems Act.
Lenders losing sleep over RBI’s new strictures
The central bank is expected to introduce these rules later this year and bankers are worried they will hurt profitability in the medium term.
Banks versus markets: The scramble for India's retail investor
India's largest lender, SBI, hopes a stock market correction will drive depositors back to banks. As retail investors seek higher returns in equities, deposit growth lags credit growth, forcing banks to raise rates. The Reserve Bank of India is concerned about the widening credit-deposit gap, which poses systemic risks.
India's growth story brightens: Moody's boosts GDP forecast to 7.2% for 2024
Moody's has raised India's real GDP growth projections to 7.2% for 2024 (up from 6.8%) and 6.6% for 2025 (up from 6.4%), citing strong, broad-based growth driven by resilient private consumption and improved business conditions. The Indian economy grew 7.8% year-over-year in the first quarter of 2024, with both the industrial and services sectors thriving despite tight monetary policy and fiscal consolidation efforts.
Jan Dhan Yojana a UPA-era scheme renamed by Modi govt: Chidambaram
Senior Congress leader P Chidambaram stated that Jan Dhan Yojana is a renamed version of a UPA-era scheme, with several million accounts opened between 2005 and 2014. He emphasized the contributions of past RBI governors. Prime Minister Modi recently highlighted the scheme's role in financial inclusion on its 10th anniversary.
7 at 7: Apple’s top appointment, RBI’s UPI moment and more
From fresh efforts for a ceasefire in Gaza to the latest on volatile crude oil prices; from a major appointment at Apple to a technology shakeup at home; from RBI rules on project finance to the government’s crackdown on the pharma sector; here's your news capsule for the day.7 at 7: Apple’s top appointment, RBI’s UPI moment and more
IIHL raises concern over Rs 850 cr GST liability for implementation of RCap resolution plan
IndusInd International Holdings, owned by Hinduja Group, informed the National Company Law Tribunal of a Rs 850 crore GST liability issue hindering Reliance Capital's resolution plan. Despite receiving key approvals and being prepared to pay Rs 9,861 crore, the GST liability remains a problem. The tribunal set further hearings for September 19. The resolution plan was initially approved in February 2024.
RBI Governor Shaktikanta Das' 5-point agenda for India’s financial future at GFF 2024
During the Global Fintech Festival (GFF) 2024 in Mumbai, RBI Governor Shaktikanta Das highlighted India's rapid economic growth, driven by a burgeoning fintech ecosystem and a tech-savvy population. He outlined five key priorities: financial inclusion, enhancing Digital Public Infrastructure (DPI), strengthening cybersecurity, promoting long-term sustainable finance, and reinforcing financial infrastructure. Das underscored the pivotal role of fintech companies in bridging financial gaps and emphasized the need for a secure, inclusive, and resilient financial system to propel India forward.
Households expect inflation to edge up: RBI survey
The Reserve Bank's survey indicated Indian households' growing concerns about inflation, predicting higher rates across all measured periods. The survey noted an increase in the number of respondents who expect price rises, particularly in food and services. Persistently high food inflation since November 2023 has influenced these expectations.
Investing in FDs with an NBFC? Check new RBI rules on premature withdrawal, nominations applicable from Jan 1, 2025
New FD rules: The revised guidelines cover topics such as the acceptance of public deposits, including regulations concerning nominations, reimbursement of public deposits for urgent expenses, informing depositors about deposit maturity, and others.
RBI will launch Unified Lending Interface nationwide in due course: Guv Shaktikanta Das
The ULI architecture has common and standardised application programming interfaces (APIs) designed for a plug-and-play approach to ensure digital access to information from diverse sources, i.e., information relevant to a lender giving out a loan to a potential borrower.
Banks well capitalised to handle macro shocks
"Under the baseline scenario, the aggregate CRAR (capital to risk weighted asset ratio) of 46 major banks is projected to slip from 16.7% in March 2024 to 16.1% by March 2025," the RBI said in its June 2024 Financial Stability Report.
RBI shortens frequency of credit reporting to 15 days
The Reserve Bank of India (RBI) has reduced the frequency of reporting credit information of borrowers to credit information companies (CIC) to every 15 days from the previous monthly intervals, aiming to provide a more current overview of a borrower's debt status. This move is expected to benefit both borrowers and lenders by facilitating faster updates on repayments and enabling better risk assessments, ultimately contributing to a healthier lending environment.
Sending money abroad can become cheaper through UPI: RBI Guv Das
Reserve Bank Governor Shaktikanta Das highlighted that the Unified Payments Interface (UPI) could become a more affordable and faster option for cross-border remittances. Currently, countries like Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE accept UPI payments.
India flavour of the world now; hope RBI cuts rate this year: Rajeev Agarwal
Rajeev Agarwal from DoorDarshi India Fund discussed the potential impact of anticipated rate cuts by the Fed and the RBI on the economy. With reduced inflation and strong agricultural output, India is well-positioned for a rate cut. The banking and finance sectors are highlighted as promising due to good asset quality and capital adequacy.
