Page 27 - Latest Updates on Reserve Bank of India
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
 "Banks must offer KYC update to reactivate inactive accounts: RBI draft")
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")
Tariff uncertainties pose growth risks, says RBI Governor Sanjay Malhotra
The governor said India's domestic growth is supported by stable policies, healthy corporate balance sheets and strong macroeconomic fundamentals that bode well for the economy.
 "Tariff uncertainties pose growth risks, says RBI Governor Sanjay Malhotra")
RBI reviewing shareholding norms for banks, says Guv Sanjay Malhotra
While India permits 74% foreign direct investment in private banks, it restricts a single financial entity from holding more than 15% unless a regulatory exemption is granted.
 "RBI reviewing shareholding norms for banks, says Guv Sanjay Malhotra")
RBI sells $34.5 bn in FY25, highest since global financial crisis
RBI sold $34.5 billion in FY25 to stabilise the rupee amid US dollar strength, with forex reserves dipping and experts predicting record surplus transfer to government
 "RBI sells $34.5 bn in FY25, highest since global financial crisis")
RBI eyes interest rate relief for borrowers with co-lending rules
Message conveyed at meet between RBI officials & fintechs
 "RBI eyes interest rate relief for borrowers with co-lending rules")
Govt to have a say in new payments regulatory board with a significant role
RBI governor, as chair of the board, will have casting vote
 "Govt to have a say in new payments regulatory board with a significant role")
Low inflation is India's tailwind, rate cuts need to watch for global risks
It provides policymakers with much-needed room to counter any global shocks
 "Low inflation is India's tailwind, rate cuts need to watch for global risks")
RBI's rate cuts, and expectations of more, can ease your home loan EMI
Lower inflation rates are expected to trigger more rate cuts from the central bank, which will be passed on to consumers in the form of lower interest rates
 "RBI's rate cuts, and expectations of more, can ease your home loan EMI")
NiC rises to Rs 34.8 tn but growth slows with shift to higher notes
Cash usage in India has slowed since the 1990s despite NiC rising to Rs 34.8 trillion in 2024, with increased ATM access and digital adoption impacting demand
 "NiC rises to Rs 34.8 tn but growth slows with shift to higher notes")
Banks seek overnight liquidity ops, easier reserve norms from RBI
RBI's main cash management tool has been the 14-day variable repo since a change in 2020 that was intended to lower banks' reliance on the RBI and push them to better predict their liquidity needs
 "Banks seek overnight liquidity ops, easier reserve norms from RBI")
Outlook for India is one of cautious optimism, says the RBI report
The prospects of bumper rabi harvest and the outlook of an above normal monsoon would further strengthen rural consumption and is also likely to keep food inflation in check
 "Outlook for India is one of cautious optimism, says the RBI report")
Open market operations: The central bank's new communication policy
The approach to managing liquidity and communication policy is yet another manifestation of how the central bank has taken a fresh view on the issue
 "Open market operations: The central bank's new communication policy")
RBI gives in-principle nod to Emirates NBD for India subsidiary setup
Emirates NBD Bank PJSC is currently carrying on banking business in India in branch mode through its branches located in Chennai, Gurugram and Mumbai