Page 2 - Latest Updates on Reserve Bank of India
Shifting composition: Dependence on services exports is increasing
Services exports are driving India's trade growth and resilience, but stronger manufacturing output remains essential for broad-based job creation and sustainable growth
 "Shifting composition: Dependence on services exports is increasing")
MPC Minutes: Need to stay watchful on inflation, says RBI governor
The Reserve Bank of India (RBI) on Friday released the minutes of meeting of the Monetary Policy Committee (MPC) held during June 3-5
 "MPC Minutes: Need to stay watchful on inflation, says RBI governor")
Banks' demand muted at RBI's VRR auction despite lower surplus liquidity
Banks bid for only ₹16,750 crore against the notified amount of ₹1 trillion, reflecting limited demand for short-term funds
 "Banks' demand muted at RBI's VRR auction despite lower surplus liquidity")
India's short-bond rally may lose steam as RBI drains excess cash: Analysts
Expectations of cash withdrawal operations and a possible increase in banks' cash reserve ratio are seen limiting further gains in short-term bonds
 "India's short-bond rally may lose steam as RBI drains excess cash: Analysts")
RBI steps up dollar buying to rebuild reserves, manage forward book
The central bank is using the rupee's recent strength to replenish foreign exchange reserves and manage its large short dollar forward position, dealers said
 "RBI steps up dollar buying to rebuild reserves, manage forward book")
RBI cancels licence of Karnataka's Shree Mahalaxmi Co-op Credit Bank
On liquidation, about 97.9 per cent of depositors would receive full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC)
 "RBI cancels licence of Karnataka's Shree Mahalaxmi Co-op Credit Bank")
Citigroup scraps calls for RBI hikes as Iran deal cools price risks
India, which is heavily reliant on oil imports from the West Asia, faces headwinds from higher energy prices as well as forecasts of a weaker monsoon season as El Niño weather phenomenon takes hold
RBI not in favour of offshore settlement for govt bonds despite tax changes
The RBI had previously explored allowing settlement through offshore platforms to expand the foreign investor base for local currency debt, at a time when overseas interest was subdued
 "RBI not in favour of offshore settlement for govt bonds despite tax changes")
RBI liquidity measures drive steep decline in CD rates across tenors
Banks have begun pricing in stronger liquidity conditions after RBI measures to attract foreign inflows, reducing funding pressures and lowering short-term borrowing costs
 "RBI liquidity measures drive steep decline in CD rates across tenors")
Low-cost AI models are fuelling India's growing deepfake fraud threat
Customised applications built on open-source AI models are enabling sophisticated deepfake frauds at lower costs, raising concerns across banking, fintech and digital platforms
 "Low-cost AI models are fuelling India's growing deepfake fraud threat")
RBI injects ₹72,300 crore as advance tax outflows squeeze liquidity
Surplus liquidity fell to ₹23,881.21 crore on June 16 from ₹1.51 trillion a day earlier; overnight rates trade above repo rate
 "RBI injects ₹72,300 crore as advance tax outflows squeeze liquidity")
Turning the tide: India must address fundamental gaps in external account
Easing West Asia tensions may stabilise India's external accounts, but policymakers must focus on boosting FDI, exports and long-term capital inflows
 "Turning the tide: India must address fundamental gaps in external account")
RBI eases capital norms on ECLGS 5.0 loans with lower risk weight
The central bank has allowed a zero-risk weight on a large portion of ECLGS 5.0-guaranteed loans, reducing capital requirements for lenders under the scheme
NBFCs can distribute insurance products without seeking RBI approval
New framework permits insurance distribution subject to Irdai approval and lays down safeguards for sale of third-party financial products
 "NBFCs can distribute insurance products without seeking RBI approval")
RBI tightens norms on bundled products; lenders to refund for mis-selling
New framework mandates explicit customer consent, bans dark patterns and requires lenders to compensate customers in cases of mis-selling
FCNR (B) inflows to help replace costly bulk deposits, aid bank margins
Expected inflows could help narrow the credit-deposit gap
RBI imposes restrictions on Mogaveera Co-operative Bank for 6 months
The cooperative bank cannot grant or renew any loans and advances, make any investment, incur any liability, including borrowing of funds and acceptance of fresh deposits, the statement added
SBI, Bank of Baroda plan first dollar bonds under RBI subsidy window
Both banks are targeting to raise around $500 million through five-year dollar bonds
 "SBI, Bank of Baroda plan first dollar bonds under RBI subsidy window")
Banking shares in demand; HDFC Bank, BoB, Union Bank gain up to 3%
In the past one week, the Nifty Bank outperformed the market by gaining nearly 3%, as against 0.05% decline in the Nifty 50.
 "Banking shares in demand; HDFC Bank, BoB, Union Bank gain up to 3%")
Why India is opening the door wider to foreign investors in govt securities
Govt has completely eliminated capital gains tax and withholding tax on interest income for FPIs investing in GSec, and has expanded specified securities under FAR
 "Why India is opening the door wider to foreign investors in govt securities")