Page 103 - Latest Updates on Reserve Bank of India
UPI transaction rules 2024: New regulations applicable from January 1
UPI new rules: The RBI and NPCI have announced a number of changes to regulations for online payments via UPI. Here are the top 5 such changes
 "UPI transaction rules 2024: New regulations applicable from January 1")
RBI asks banks not to classify zero balance account as inoperative
The central bank said customers need to submit fresh KYC documents for reactivation
 "RBI asks banks not to classify zero balance account as inoperative")
Nearly 97% Rs 2,000 notes returned, Rs 9,330 cr still with public: RBI
"The total value of Rs 2,000 bank notes in circulation, which amounted to Rs 3.56 lakh crore...on May 19, 2023, when the withdrawal of Rs 2,000 bank notes was announced," RBI said
 "Nearly 97% Rs 2,000 notes returned, Rs 9,330 cr still with public: RBI")
UPI scales new high in December; 2023 value up 59% at Rs 183 trn
Monthly FASTag and IMPS transactions increase too, but those at Aadhaar Enabled Payment System fall
 "UPI scales new high in December; 2023 value up 59% at Rs 183 trn")
Optimise returns on short-term corpus with liquid and overnight funds
Yields from these schemes are attractive currently, but could come down if rate cuts happen
 "Optimise returns on short-term corpus with liquid and overnight funds")
RBI Deputy Guv Rao flags risks of AI deployment in financial institutions
He categorized these risks into three broad sets-data bias and robustness, governance, and transparency
 "RBI Deputy Guv Rao flags risks of AI deployment in financial institutions")
Indiabulls HFC may have to provide Rs 1,000 cr for AIF investments impact
Indiabulls' Assets Under Management (AUM) stood at Rs 63,569 crore as of September 30, 2023, comprising Housing Loans (72%), Loan Against Properties (15%), and commercial credit (13%)
 "Indiabulls HFC may have to provide Rs 1,000 cr for AIF investments impact")
SCBs well capitalised, capable of absorbing macroeconomic shocks: RBI
All banks would be able to meet the minimum regulatory common equity tier 1 (CET1) ratio of 5.5 per cent even under severe stress scenario
 "SCBs well capitalised, capable of absorbing macroeconomic shocks: RBI")
Lending rates decline in Nov while deposit rates harden: RBI data
The WALR on outstanding rupee loans of SCBs was at 9.80 per cent in November 2023 as against 9.84 per cent in October 2023 and 9.83 per cent in September
 "Lending rates decline in Nov while deposit rates harden: RBI data")
Forex reserves rise by $4.47 bn to $620.44 bn in week ending Dec 22: RBI
In the previous reporting week, the kitty had swollen by $9.112 billion to $615.971 billion, making the quantum of increase one of the highest in a week
 "Forex reserves rise by $4.47 bn to $620.44 bn in week ending Dec 22: RBI")
Not mandatory for banks, NBFCs to raise green funds, RBI clarifies
The RBI-regulated entities should pay interest on green deposits to their customers as per agreed terms and conditions and prescribed directions irrespective of allocation/utilisation of proceeds
 "Not mandatory for banks, NBFCs to raise green funds, RBI clarifies")
Retail investor interest in derivative trading, SMIDS concerning: RBI
The report said that the rally in the mid, small, and microcap segments was significantly larger than the gains made by the benchmark Nifty this year
 "Retail investor interest in derivative trading, SMIDS concerning: RBI")
RBI tweaks D-SIB designation methodology, inserts digital payments aspect
The value of securities reported under 'Total Marketable Securities issued by bank' would be based on their market value
 "RBI tweaks D-SIB designation methodology, inserts digital payments aspect")
Banking for growth
Financing of NBFCs must be monitored
 "Banking for growth")
Evaluating the Indian economy's resilience
A growth trajectory of 6.5 to 7.5 %, centred around 7 %, is reasonable in the coming years, barring the eventuality of simultaneous external shocks
 "Evaluating the Indian economy's resilience")
RBI continues battle against inflation; eyes on possible rate cut in 2024
After announcing the December monetary policy review, Das said that "loosening in rates is not on the table at all" till the inflation demon is chained at or is under 4 per cent for a durable time
 "RBI continues battle against inflation; eyes on possible rate cut in 2024")
Financial sector set to see churn in 2024 with major leadership changes
Das will be the longest-serving RBI governor in almost seven decades once he completes his full term. A new govt that will be formed in May will take a call on extending his term further
 "Financial sector set to see churn in 2024 with major leadership changes")
Total amount of frauds reported by banks declines to six-year low: RBI
However, the number of frauds that were reported by banks have gone up from 7,263 frauds in 2020-21 to 13,576 in 2022-23
RBI implements govt securities lending directions with immediate effect
In February of the same year, the central bank had released draft norms for lending and borrowing of government securities aimed at expanding participation in the securities lending market
 "RBI implements govt securities lending directions with immediate effect")
RBI warns banks, NBFCs against reliance on model-based lending practices
The regulator said inherent biases and lack of transparency with AI/ML outcomes carry risks
 "RBI warns banks, NBFCs against reliance on model-based lending practices")