Page 10 - Latest Updates on Reserve Bank of India
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
 "RBI eases capital norms on ECLGS 5.0 loans with lower risk weight")
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
 "RBI tightens norms on bundled products; lenders to refund for mis-selling")
FCNR (B) inflows to help replace costly bulk deposits, aid bank margins
Expected inflows could help narrow the credit-deposit gap
 "FCNR (B) inflows to help replace costly bulk deposits, aid bank margins")
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")
Indian banks look to foreign funding to tap RBI's new capital inflow push
The lenders sought clarity from the Reserve Bank of India if they can use a portion of deposits collected from non-resident Indians as collateral
 "Indian banks look to foreign funding to tap RBI's new capital inflow push")
Dollar draw: Domestic banks raise their FCNR (B) deposit rates sharply
Major lenders have increased FCNR(B) deposit rates after the RBI offered to absorb hedging costs, a move aimed at attracting foreign currency inflows from NRIs
 "Dollar draw: Domestic banks raise their FCNR (B) deposit rates sharply")
RBI cancels registration certificates of 135 NBFCs, most in West Bengal
The majority of the NBFCs, whose certificates of registration were cancelled, had a registered office address in West Bengal, an RBI release showed
 "RBI cancels registration certificates of 135 NBFCs, most in West Bengal")
Govt to switch Rs 30,000 crore of bonds through auction on June 15
The switch auction will replace shorter-dated securities maturing between 2027 and 2030 with longer-dated bonds maturing between 2034 and 2039
 "Govt to switch Rs 30,000 crore of bonds through auction on June 15")
Outward FDI commitments by Indian firms drop 49% in May: RBI data
Equity investments abroad dropped sharply to $1,247.82 million in May from $3,537.35 million in April, marking a decline of about 64.72 per cent
 "Outward FDI commitments by Indian firms drop 49% in May: RBI data")
RBI likely stepped in to support rupee, conducts swaps, say traders
The rupee was at 95.27, up modestly on the day after hitting an intra-day low of 95.5625 in early trading
RBI asks banks to assess AI risk gaps, draw action plan by June-end
RBI has directed banks to assess cyber risks from advanced AI models such as Claude Mythos and submit mitigation plans by June-end
 "RBI asks banks to assess AI risk gaps, draw action plan by June-end")
FCNR (B) returns: Rate differential may cloud inflows despite RBI support
Bankers expect FCNR(B) inflows of $20-45 billion as RBI absorbs hedging costs, though a much narrower India-US interest-rate differential may limit leverage-driven participation
RBI's special ECB window may attract up to $20 billion in overseas inflows
State-owned entities are expected to lead fundraising under the RBI's concessional swap facility, with market participants estimating inflows of $15-20 billion
IDFC First, Federal, BOB, PNB, Canara Bank gain up to 4%; here's why
At 11:26 AM on the Tuesday, the Nifty Bank and Nifty Private Bank index (up 1 per cent each) and Nifty PSU Bank index up 2 per cent outperformed the Nifty 50, which was down 0.03 per cent.
 "IDFC First, Federal, BOB, PNB, Canara Bank gain up to 4%; here's why")
RBI's latest measures may have steadied rupee, but risks far from over
RBI's incentives may attract short-term foreign inflows and ease pressure on the rupee, but they do little to address weak FDI and sustained foreign investor outflows
 "RBI's latest measures may have steadied rupee, but risks far from over")