Page 22 - Latest Updates on Reserve Bank of India
Limit on duration for state debt STRIPS may dent demand, say insurers
STRIPS allow dealers to sell principal and interest payments independently, enhancing liquidity in the state government securities by enabling distinct trading of these components
 "Limit on duration for state debt STRIPS may dent demand, say insurers")
Neutral stance gives flexibility to move up or down: Nagesh Kumar
Since the February 2025 MPC, the RBI has started to support growth by cutting policy rate
 "Neutral stance gives flexibility to move up or down: Nagesh Kumar")
Business Standard CEO Poll: Wars, trade frictions test biz confidence
75% of CEOs are "cautiously optimistic" about the future
 "Business Standard CEO Poll: Wars, trade frictions test biz confidence")
Policy easing call this cycle to be more data-dependent: MPC member Saugata
This (West Asia conflict) is just one of the sources of uncertainty, albeit the 800 pound gorilla at the moment
 "Policy easing call this cycle to be more data-dependent: MPC member Saugata")
Good show by banks as most register a rise in profit, but challenges ahead
Overall, public sector banks have put up a better show than private banks on most parameters
 "Good show by banks as most register a rise in profit, but challenges ahead")
Final RBI norms on project financing positive trigger for the PFC
Additional provisions forDate of Commencement of Commercial Operations deferred standard assets are reduced to 0.375 per cent-0.5625 per cent per quarter vs. 2.5 per cent for cumulative deferments
 "Final RBI norms on project financing positive trigger for the PFC")
RBI's liquidity measures drive short-term bond rally, widening yield spread
The yield spread between the three-year government bond and benchmark 10-year bond has increased by more than three times to 48 basis points, against 15 bps at the start of FY26
 "RBI's liquidity measures drive short-term bond rally, widening yield spread")
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")