Page 23 - Latest Updates on Reserve Bank of India
Inflation undershoots, yet risks remain: Rate cuts may spark volatility
The MPC's June 2025 decision to cut the repo rate by 50 basis points - more than expected - surprised markets
 "Inflation undershoots, yet risks remain: Rate cuts may spark volatility")
Customer complaints rising fast, bankers lacking empathy, says RBI DG
The DG said a banker has to act quickly, endure uncertainty, recover from setbacks, and stay focused over the long run
 "Customer complaints rising fast, bankers lacking empathy, says RBI DG")
Not mandatory for customers to opt for digital banking: RBI draft norms
Further, the norms stated that banks should obtain consent from customers for providing digital banking services
RBI's intent to close outstanding EDPMS entries deserves praise
The RBI introduced the EDPMS to monitor the realisation of export proceeds in February 2014
 "RBI's intent to close outstanding EDPMS entries deserves praise")
Lower home loan EMIs spark increased buyer interest amid repo rate cuts
House purchase affordability across the key Indian markets has improved in the first half of the calendar year 2025 (H1 CY25)
 "Lower home loan EMIs spark increased buyer interest amid repo rate cuts")
RBI to hold ₹2 trillion 7-day VRRR auction to absorb surplus liquidity
RBI to conduct seven-day Variable Rate Reverse Repo auction on Friday to absorb Rs 2 trillion as banking system liquidity remains in surplus of over Rs 3 trillion
UCB directors must probe management to boost governance: RBI's Swaminathan
RBI advises UCB directors to ask tough questions to senior management to ensure ethical, transparent, and prudent operations, aiming to prevent distress in the banks
Climate risks may impact biz segment consisting largely of MSMEs: DG Rao
RBI Deputy Governor M Rajeshwar Rao highlights that climate risks will impact MSMEs, unorganised sectors, and unlisted corporates, stressing the need for awareness and risk assessments
 "Climate risks may impact biz segment consisting largely of MSMEs: DG Rao")
RBI's liquidity steps to aid 100 bps rate cut transmission in 2025: Fitch
Credit rating agency Fitch Ratings says ₹5.6 trillion liquidity infusions and cash reserve ratio cut will support loan growth, though banks may see short-term pressure on margins
 "RBI's liquidity steps to aid 100 bps rate cut transmission in 2025: Fitch")
RBI's 3-day VRRR sees weak demand amid GST outflows, reporting week
Market participants said that banks were reluctant to park higher amounts at the auction due to the fortnightly reporting period at the end of the current week
 "RBI's 3-day VRRR sees weak demand amid GST outflows, reporting week")
Nearly a decade into its existence, IBC framework needs to be reimagined
The famous "tareekh pe tareekh" dialogue from the Hindi movie Damini captures where we are now
 "Nearly a decade into its existence, IBC framework needs to be reimagined")
Amount parked in RBI's SDF window declines on back of VRRR auctions
The amount parked by banks in the Reserve Bank of India's SDF window has fallen significantly, driven by VRRR auctions, with the call rate aligning closer to the repo rate
Bids for RBI's 7-day VRRR auction fall short of notified amount
Receive bids worth ₹1.51 trn against notified amount of ₹2.5 trn
 "Bids for RBI's 7-day VRRR auction fall short of notified amount")
Loans against gold, silver pledge up to limit not norm violation: RBI
RBI clarifies that loans sanctioned by banks against voluntary pledges of gold and silver, up to the collateral-free limit, do not violate the central bank's guidelines on collateral
RBI to intensify scrutiny of bank auditors after governance lapses
With governance concerns at IndusInd and Karnataka Bank, RBI is expected to tighten its engagement with statutory auditors and examine the role of board sub-committees more closely
 "RBI to intensify scrutiny of bank auditors after governance lapses")
RBI set to conduct 7-day VRRR auction on Friday to absorb ₹2.5 trillion
The Reserve Bank of India will conduct a Rs 2.5 trillion seven-day reverse repo auction to absorb surplus liquidity from the banking system and align the weighted average call rate with the repo rate
 "RBI set to conduct 7-day VRRR auction on Friday to absorb ₹2.5 trillion")
Parliamentary panel for dedicated NCLT, NCLAT courts for IBC cases
A parliamentary panel recommends dedicated NCLT and NCLAT courts to expedite IBC cases and urges the RBI Governor to support banking correspondents, who are facing increasing challenges in their roles
 "Parliamentary panel for dedicated NCLT, NCLAT courts for IBC cases")
Canara Bank drops 'fraud' label on Anil Ambani-linked RCom loan account
The case relates to a loan account linked with Ambani's firm Reliance Communications, which is undergoing insolvency proceedings
 "Canara Bank drops 'fraud' label on Anil Ambani-linked RCom loan account")
Banks expect RBI to double VRRR auction as liquidity stays surplus
At 2-day VRRR auction, RBI receives bids worth ₹97,315 cr against notified ₹1 trn
 "Banks expect RBI to double VRRR auction as liquidity stays surplus")
Avoiding fraudulent loan apps: RBI listing, ratings & reviews key to safety
Loans from registered NBFCs or banks come with a key fact statement (KFS), a sanction letter, and a loan agreement detailing all costs
 "Avoiding fraudulent loan apps: RBI listing, ratings & reviews key to safety")