Page 295 - Latest Updates on Reserve Bank of India
RBI slaps Rs 5 lakh fine on UCO Bank for violating govt bond holding norms
The Reserve Bank of India has imposed a penalty of Rs 5 lakh on UCO Bank for bouncing of SGL forms
 "RBI slaps Rs 5 lakh fine on UCO Bank for violating govt bond holding norms")
RBI googly on adherence to new Press Note 3 norms puts AIFs in a bind
Raises doubts over drawing down capital from Chinese LPs
 "RBI googly on adherence to new Press Note 3 norms puts AIFs in a bind")
Data deficiency
MPC will have to work with an incomplete inflation picture
 "Data deficiency")
Banks, NBFCs may see some rally after Rs 6 trn relief package by FM
Investors may pause to see the entire scheme of funding, and impact on bonds
 "Banks, NBFCs may see some rally after Rs 6 trn relief package by FM")
Kotak Bank profit before tax slips 10.6% at Rs 2,674 cr for March 2020 qtr
Profit down due to Covid provisioning and lower other income
 "Kotak Bank profit before tax slips 10.6% at Rs 2,674 cr for March 2020 qtr")
China's digital currency moves
With pilot runs for a digital yuan underway, its monetary system could well become an exemplar for other countries
 "China's digital currency moves")
Why RBI shouldn't finance govt borrowings
In a crisis, it is imperative that a country borrows and spends more
Provide govt-backed Rs 3 trn liquidity line to coronavirus-hit unit: FICCI
Govt support to banks estimated at upto Rs 40,000 cr over 5 years
 "Provide govt-backed Rs 3 trn liquidity line to coronavirus-hit unit: FICCI")
Economy in 'very bad' state, expect financial package in 2-3 days: Gadkari
The minister for MSME, and Road Transport and Highways said the government stands with the industry but it also needs to understand the government's limitations
 "Economy in 'very bad' state, expect financial package in 2-3 days: Gadkari")
Fiscal prudence still matters
Govt will need to spend more, but should credibly commit through institutional reform to future transparency and prudence
 "Fiscal prudence still matters")
Beyond borrowings
Govt must present a credible macroeconomic picture
 "Beyond borrowings")
Bond yields expected to jump 15-20 bps on govt's extra borrowing
The excess borrowing will, however, ease the pressure on the RBI's liquidity operation as banks will absorb the excess G-Secs
 "Bond yields expected to jump 15-20 bps on govt's extra borrowing")
Why lending to MSMEs makes business sense
A large section of MSMEs is creditworthy and micro retail borrowers' cash flow allows them to repay bank loans fast
 "Why lending to MSMEs makes business sense")
Lockdown 3.0: Banks may need more regulatory support amid Covid-19 crisis
With credit cost expected to increase by 200-350 bps across banks, asset quality may deteriorate to FY18 levels
Bigger rise in cash in circulation in Jan-Apr than entire 2019: RBI
The rise in currency in circulatiom is perplexing when economic activity has nosedived. Generally, CIC should rise in tandem with growth in economic activities, as people need cash to transact
 "Bigger rise in cash in circulation in Jan-Apr than entire 2019: RBI")
Covid-19 lockdown: Forget administrative strategy, shift to an economic one
It is important that the country now shift from a home ministry-driven administrative approach to an economic approach
Contactless cards may come in handy amid Covid-19, but there is risk
However, one has to be cautious, as electronic pickpocketing is catching up
 "Contactless cards may come in handy amid Covid-19, but there is risk")
Microfinance institutions on a knife-edge with collections taking a big hit
With collections taking a big hit, microfinance institutions will be put through the wringer, reports Raghu Mohan
 "Microfinance institutions on a knife-edge with collections taking a big hit")
Rating disruption due to moratorium will pinch markets: Raters to Sebi
Extension of moratorium also discussed with Sebi
 "Rating disruption due to moratorium will pinch markets: Raters to Sebi")
Govt appoints Tarun Bajaj as Director on Reserve Bank Central Board
As a Joint Secretary in the Department of Financial Services for four years, he was looking after the insurance division
 "Govt appoints Tarun Bajaj as Director on Reserve Bank Central Board")