Page 28 - Latest Updates on Reserve Bank of India
RBI cancels licence of HCBL Co-op Bank due to capital, earnings shortfall
The Reserve Bank on Monday said it has cancelled the licence of Lucknow-based HCBL Co-operative Bank as the lender does not have adequate capital and earning prospects.
 "RBI cancels licence of HCBL Co-op Bank due to capital, earnings shortfall")
RBI seeks govt nod for bigger contingent risk buffer band after ECF review
Board to meet on May 23 to decide transferable surplus based on new range
 "RBI seeks govt nod for bigger contingent risk buffer band after ECF review")
Mint Road's enforcement framework shifts focus to governance premium
The woes at IndusInd Bank have put the spotlight back on a key initiative the banking regulator's Enforcement Department set rolling in FY24
 "Mint Road's enforcement framework shifts focus to governance premium")
RBI penalises Deutsche Bank, YES Bank for breaching compliance norms
Deutsche Bank and YES Bank fined ₹50 lakh and ₹29.6 lakh respectively for violating RBI directions on credit reporting and disclosure of customer complaints
 "RBI penalises Deutsche Bank, YES Bank for breaching compliance norms")
India's forex reserves jump $4.5 bn to $690.61 bn on rise in gold assets
For the week ended May 9, foreign currency assets, a major component of the reserves, increased by $196 million to $581.373 billion
 "India's forex reserves jump $4.5 bn to $690.61 bn on rise in gold assets")
Muthoot Finance to go slow on MFI biz amid stress in the segment: MD
George Alexander Muthoot says the firm will prioritise gold loans due to strong demand and regulatory pressure on unsecured lending, as MFI exposure is scaled down
 "Muthoot Finance to go slow on MFI biz amid stress in the segment: MD")
RBI board reviews economic capital framework ahead of surplus transfer
RBI board reviews Economic Capital Framework as part of five-year cycle, with FY25 surplus transfer expected to set a new record amid strong balance sheet gains
 "RBI board reviews economic capital framework ahead of surplus transfer")
RBI pushes lenders to revive funding market vital for monetary policy
While overall money-market turnover has risen to an average $70 billion a day, interbank trades account for just 2 per cent of that, down from 20 per cent a decade ago
Three RBI rate cuts likely from June as inflation dips below 4% target
With inflation staying under RBI's 4% target for two months, economists expect three back-to-back repo rate cuts, starting with a 25 bps reduction in June
 "Three RBI rate cuts likely from June as inflation dips below 4% target")
EOW files chargesheet in Rs 122 crore New India Co-operative Bank 'scam'
Mumbai Police's EOW has filed a chargesheet in the ₹122-crore New India Co-operative Bank scam, naming ex-chairman Hiten Bhanu and his wife Gauri, who have fled India and been declared wanted
 "EOW files chargesheet in Rs 122 crore New India Co-operative Bank 'scam'")
RBI reviews e-wallets after sudden collapse of EV taxi service BluSmart
Reserve Bank of India has begun informal consultations with EV charging-point operators and other app-based EV platforms to assess potential consumer risks
PSBs introduce AI-driven soft skill training to enhance customer service
It comes against the backdrop of stagnating deposit growth at major public sector banks (PSBs) and concerns in the Ministry of Finance about inconsistent customer service
 "PSBs introduce AI-driven soft skill training to enhance customer service")
Retail inflation slid further to 3% in Apr; easing room for RBI rate cut
In March, retail inflation stood at 3.34 per cent- the lowest since August 2019
 "Retail inflation slid further to 3% in Apr; easing room for RBI rate cut")
Dynamic bond funds: Check rate-cycle track record before investing
A dynamic bond fund (DBF) can help investors navigate rate cycles effectively
 "Dynamic bond funds: Check rate-cycle track record before investing")
RBI bumper payout to help offset shortfall in tax revenues, say analysts
Kotak Mahindra Bank expects RBI to transfer up to ₹3.5 trillion to the government, while IDFC First Bank estimates the dividend at around ₹3 trillion for the fiscal year ending March
 "RBI bumper payout to help offset shortfall in tax revenues, say analysts")
Longer call money trading hours likely to address liquidity mismatch
The RBI has proposed extending call money trading hours to 7 PM from 5 PM to better align liquidity with 24x7 payment systems and address mismatches in fund flows
 "Longer call money trading hours likely to address liquidity mismatch")
SMBC nears YES Bank stake deal; India may see biggest private bank M&A
YES Bank stake deal: If finalised, this will be the largest private sector bank acquisition in India
 "SMBC nears YES Bank stake deal; India may see biggest private bank M&A")
RBI may cut rates by up to 125 bps in FY26, says SBI Research report
SBI Research expects a 125 bps rate cut in FY26 as inflation falls to multi-year lows, with liquidity measures like OMOs and pressure on deposit rates likely to follow
 "RBI may cut rates by up to 125 bps in FY26, says SBI Research report")
RBI may effect cumulative rate cut of 125-150 bps in FY26, says SBI study
The study suggested that the central bank should go for "jumbo" rate cuts of 50 bps as it would be more effective
Banks remain cautious in lending to NBFCs despite risk weight reversal
Despite RBI's decision to revert risk weights on NBFC loans from April 1, banks continue to exercise caution, limiting credit access to mid-sized NBFCs and MFIs
 "Banks remain cautious in lending to NBFCs despite risk weight reversal")