Page 27 - Latest Updates on Reserve Bank of India
Reserve Bank of India eases provisioning rules for infrastructure loans
The Reserve Bank of India proposed in May last year that lenders should set aside 5% of the loan value for an infrastructure project being built to cover risks
 "Reserve Bank of India eases provisioning rules for infrastructure loans")
RBI's new rule on gold-backed loan will lead to biz model adjustment: S&P
Earlier this month, the RBI raised the loan-to-value (LTV) ratio for lending against gold to 85 per cent for borrowings under ₹2.5 lakh from the present 75 per cent
 "RBI's new rule on gold-backed loan will lead to biz model adjustment: S&P")
BS Poll: On terminal policy repo rate, Street views are evenly split
The domestic rate setting panel had cut policy repo rate by 50 basis points to5.5 per cent in the June meeting, higher than market expectation of 25 bps
 "BS Poll: On terminal policy repo rate, Street views are evenly split")
Standard Chartered faces RBI scrutiny over lapses in derivatives sales
The banking regulator has also flagged issues relating to Standard Chartered's maintenance of reserves and the accounting treatment of forward rate agreement trades in previous financial years
 "Standard Chartered faces RBI scrutiny over lapses in derivatives sales")
Supervisory Data Quality Index of commercial banks improves in March: RBI
The index will help the regulator to assess the financial health of commercial banks, including small finance banks
Transition woes: SFBs' long bumpy road to becoming universal banks
The RBI requires SFBs to provide a detailed rationale for their desire to convert into a universal bank. Those with a diversified loan portfolio will be preferred
 "Transition woes: SFBs' long bumpy road to becoming universal banks")
SDL-based STRIPS: Use for duration matching, not for tactical gains
Invest for more than 12 months to enjoy favourable tax treatment
 "SDL-based STRIPS: Use for duration matching, not for tactical gains")
73% ATMs now dispense ₹100, ₹200 notes ahead of RBI's Sept 30 deadline
RBI directed banks in April 2025 to ensure 75 per cent of ATMs dispense ₹100 or ₹200 notes from at least one cassette by the September 30 deadline to improve access to small denominations
 "73% ATMs now dispense ₹100, ₹200 notes ahead of RBI's Sept 30 deadline")
Credit growth drops to 8.97% in May, lowest level in three years
Credit growth slows as banks tighten lending amid stress in microfinance and unsecured loans; deposit growth outpaces credit by 100 bps in May 30 fortnight
 "Credit growth drops to 8.97% in May, lowest level in three years")
RBI seeks market views on aligning call money rate with policy repo
The policy rate currently stands at 5.50 per cent, while the overnight call rate averages 5.30 per cent and the TREPS rate hovers near 5.20 per cent
SBI reduces interest rates by up to 50 bps following RBI's rate cut
With the latest round of reduction, the Repo Linked Lending Rate (RLLR) of SBI would come down by 50 basis points to 7.75 per cent
 "SBI reduces interest rates by up to 50 bps following RBI's rate cut")
What works in central banking? Striking a balance between talk and action
The latest monetary policy has also gone for a 50-basis-point rate cut, double the anticipated reduction
 "What works in central banking? Striking a balance between talk and action")
RBI rejects bids for 30-year green bonds as investors seek high yields
Investors demanded higher returns for 30-year green bonds, prompting RBI to reject all bids at auction; bond yields rise amid absence of greenium and market caution
 "RBI rejects bids for 30-year green bonds as investors seek high yields")
RBI gives Yes Bank MD & CEO Prashant Kumar 6-month extension: Lender
Kumar got his first extension in October 2022 for a three-year period till Oct 25
 "RBI gives Yes Bank MD & CEO Prashant Kumar 6-month extension: Lender")
Closer scrutiny of independent directors likely amid IndusInd Bank row
RBI's vetting process may become more intense as banking industry looks for people skilled to be 'effective board members'
RBI skips 14-day main liquidity operation for third fortnight in a row
RBI holds back 14-day operation for third fortnight, despite ₹3-3.5 tn tax outflows expected, citing adequate liquidity and short-term rate stability
 "RBI skips 14-day main liquidity operation for third fortnight in a row")
RBI allows KYC updation for low-risk customers till 30 June 2026
Allows Business Correspondents to assist in KYC updation, reactivation of inoperative accounts under extended compliance timeline
 "RBI allows KYC updation for low-risk customers till 30 June 2026")
RBI winds down offshore currency tool reflecting shift in strategy
Reduction in the offshore exposure accounts for most of the recent drop in the RBI's overall forward dollar positions
No lock-in FDs abroad: RBI set to tighten overseas remittance rules
Reserve Bank of India plans to block overseas fixed deposits under Liberalised Remittance Scheme to curb misuse, protect forex reserves, and prevent passive capital flight by resident Indians
RBI sends conflicting signals about monetary policy with surprise moves
The Reserve Bank of India surprised analysts last week by cutting interest rates more than expected and announcing a cash boost for banks, citing the need to spur growth
 "RBI sends conflicting signals about monetary policy with surprise moves")