Page 31 - Latest Updates on Reserve Bank of India
RBI to continue with supervisory measures for early risk identification
The central bank would also focus on enhancing cyber resilience and capabilities of Supervised Entities (SEs) by implementing the recommendations of the inter-regulatory Working Group
 "RBI to continue with supervisory measures for early risk identification")
Currency printing expenditure rises 25% to ₹6,372.8 cr in FY25: RBI
The value and volume of banknotes in circulation increased by 6 per cent and 5.6 per cent, respectively, during 2024-25
 "Currency printing expenditure rises 25% to ₹6,372.8 cr in FY25: RBI")
RBI's net income rises 27.5% to ₹2.69 trillion in FY25 on forex gains
The size of the RBI's balance sheet increased by 8.2 per cent to Rs 76.25 trillion
 "RBI's net income rises 27.5% to ₹2.69 trillion in FY25 on forex gains")
Greater confidence of inflation aligning with target over 12 months: RBI
Central bank's outlook for the Indian economy remains promising in 2025-26, supported by revival in consumption demand, government capex
 "Greater confidence of inflation aligning with target over 12 months: RBI")
RBI to cut rates by 25 bps on June 6, then once more in August: Poll
Rates could drop more than what economists are currently expecting if a trade deal with the US fails to materialise
PayPal receives RBI nod to operate as cross-border payment aggregator
This marks a key milestone in PayPal's operations in India and its continued support for Indian small businesses
 "PayPal receives RBI nod to operate as cross-border payment aggregator")
RBI's wider risk buffer range aimed at flexibility in times of uncertainty
RBI revises CRB range to 4.5-7.5% under updated ECF, giving it flexibility to manage surplus transfers and avoid large fiscal shocks in volatile conditions
 "RBI's wider risk buffer range aimed at flexibility in times of uncertainty")
Datanomics: Govt finances get a cushion from RBI, more needed for stability
Defence expenditure was pegged at 1.4 per cent of GDP in the Budget for 2025-26 but it may widen, depending on tensions between India and Pakistan
 "Datanomics: Govt finances get a cushion from RBI, more needed for stability")
NFRA gets IndusInd Bank complaint; in talks with RBI to avoid probe overlap
The authority, however, is in talks with the Reserve Bank of India (RBI) to cross-check the investigations, including a forensic audit, that the central bank has conducted so far to avoid duplication
 "NFRA gets IndusInd Bank complaint; in talks with RBI to avoid probe overlap")
RBI's ₹2.69 trillion dividend to govt: Where does its money come from?
RBI's record dividend this year is driven by dollar sales, rupee asset earnings, and tweaks to the Jalan panel formula, giving the govt more fiscal room
 "RBI's ₹2.69 trillion dividend to govt: Where does its money come from?")
RBI plans to seek approval for overseas rupee lending to neighbours
According to Ministry of Commerce data, 90 per cent of India's exports to South Asia were to these four nations in 2024/25, amounting to nearly $25 billion
 "RBI plans to seek approval for overseas rupee lending to neighbours")
India GDP growth likely picked up in Q4 on strong rural spending: Poll
Without stronger domestic demand, GDP growth will continue to rely heavily on government spending, as it has for years
 "India GDP growth likely picked up in Q4 on strong rural spending: Poll")
Currency gains: Why increasing the risk buffer is a prudent move
The RBI has been generating higher surpluses on account of, among other things, higher interest income and foreign-exchange gains
 "Currency gains: Why increasing the risk buffer is a prudent move")
Deposit insurance cap hike likely soon, may go beyond ₹5 lakh in 6 months
The deposit insurance limit refers to the amount of savings in bank deposits whose safety is assured if a lender goes bankrupt
 "Deposit insurance cap hike likely soon, may go beyond ₹5 lakh in 6 months")
RBI dividend may cut fiscal deficit to 4.2% of GDP in FY26: SBI report
SBI says higher-than-budgeted dividend from RBI gives government room to lower FY26 fiscal deficit to 4.2 per cent of GDP or increase spending in key areas, amid strong liquidity and BoP outlook
 "RBI dividend may cut fiscal deficit to 4.2% of GDP in FY26: SBI report")
Finance ministry pulls up public-sector banks over staff misconduct
Ministry asks lenders to strengthen handling customer grievances following several incidents
 "Finance ministry pulls up public-sector banks over staff misconduct")
RBI fines Union Bank ₹63.6L, Lendbox ₹40L for regulatory breaches
A penalty of Rs 63.6 lakh has been imposed on Union Bank of India for non-compliance with the certain provisions of Banking Regulation Act, 1949
 "RBI fines Union Bank ₹63.6L, Lendbox ₹40L for regulatory breaches")
Banks must offer KYC update to reactivate inactive accounts: RBI draft
RBI's draft proposes KYC updates at all bank branches and via video to ease activation of inoperative or unclaimed accounts and reduce dormant deposit numbers
Six-member board to regulate payment systems: RBI notification
The Payments Regulatory Board will replace the Board for Regulation and Supervision of Payment and Settlement System
 "Six-member board to regulate payment systems: RBI notification")
50-bp cut in repo leads to in reduction of 10 bps in outstanding loans
Banks have reduced their repo-linked external benchmark-based lending rates by 50 bps, the same as the quantum of rate cuts so far
 "50-bp cut in repo leads to in reduction of 10 bps in outstanding loans")