Page 319 - Latest Updates on Reserve Bank of India
RBI allows use of UPI and other non-bank payment methods to link FASTags
Move to boost NETC, foster competition among system participants; turnaround time for resolving failed transactions will be applicable to the transactions carried out in the NETC system
 "RBI allows use of UPI and other non-bank payment methods to link FASTags")
10-year bond yields rise on RBI's special open market operations
Interestingly, instead of the 10-year bond yields coming down, it increased about 5 basis points to close at 6.55% after the OMO
 "10-year bond yields rise on RBI's special open market operations")
RBI buys Rs 10,000 cr worth long-term govt securities in second special OMO
The RBI had announced to purchase and sell simultaneously government securities under Open Market Operations (OMO) for Rs 10,000 crore each, last week
 "RBI buys Rs 10,000 cr worth long-term govt securities in second special OMO")
Bring banks on track
Credit market ecosystem needs better governance and oversight
 "Bring banks on track")
RBI to flag bad loan issues with Finance Ministry in pre-Budget meet
Fresh provisioning and telco loans to figure in pre-Budget meet. Inability to find resolution may put Rs 3.8 trn loans at risk
 "RBI to flag bad loan issues with Finance Ministry in pre-Budget meet")
Indian banking: Challenges in the new decade
Shall we see the closure of the bad loan saga in the new decade? There is no Lehman or East Asian crisis to blame; it's our own doing
 "Indian banking: Challenges in the new decade")
India's economy is expected to rebound in 2020 on govt measures: CII
The chamber also suggested a flexible fiscal policy that will set a central government's target for the deficit in the range of around 0.5 to 0.75 per cent
 "India's economy is expected to rebound in 2020 on govt measures: CII")
Top 50 corporates reduce debt by about Rs 60,000 cr in first half of FY20
In the last financial year 2018-19, sources said, these companies had reduced their debt burden by about Rs 43,000 crore
 "Top 50 corporates reduce debt by about Rs 60,000 cr in first half of FY20")
HFCs' share in realty loans doubles to Rs 2.01 trillion since 2016: RBI
Over the past four years, total financing to real estate companies nearly doubled to Rs 2.01 trillion, shows the FSR released on Friday
 "HFCs' share in realty loans doubles to Rs 2.01 trillion since 2016: RBI")
RBI inspection report of scam-hit PMC Bank yet to be finalised: RTI
The RBI declined to give copies of two complaints received by it regarding 'irregularities' in the bank and the action taken on them
 "RBI inspection report of scam-hit PMC Bank yet to be finalised: RTI")
Investment lessons of 2019: Focus on reducing risk, choose your bank wisely
2019 taught us that investments need to be diversified, and investors need to trust their money with well-regulated entities only
 "Investment lessons of 2019: Focus on reducing risk, choose your bank wisely")
Finance ministry counters RBI, says stress in banking sector declining
According to the FSR, the regulator conducted macro stress tests for credit risks to assess the banking system's resilience to macroeconomic shocks under baseline conditions
 "Finance ministry counters RBI, says stress in banking sector declining")
Credit portfolio of large borrowers shrinks, GNPAs decline: FSR report
For majority of the sectors, average risk weight (loan exposure of banks) has declined between March and September 2019
 "Credit portfolio of large borrowers shrinks, GNPAs decline: FSR report")
Frauds reported in H1 rise to Rs 1.13 trillion, 97% happened earlier
Also, during the first half of FY20, banks reported 398 cases of large-value frauds (above Rs 50 crore) worth Rs 1.05 trillion and 21 cases of frauds above Rs 1,000 cr, worth a cumulative Rs 44,951 cr
 "Frauds reported in H1 rise to Rs 1.13 trillion, 97% happened earlier")
RBI proposes using equity price movements to signal corporate stress
Apex bank's FSR report says equity prices may also be used to determine 'intermediate' rating action, but advises caution about the extent such use
RBI raises concerns about companies shopping around for favourable ratings
Non-disclosure of indicative ratings by agencies makes it difficult to identify such instances, according to the FSR
 "RBI raises concerns about companies shopping around for favourable ratings")
UCBs to be part of CRILIC reporting framework from December 31
Currently, the UCBs are not a part of the CRILIC reporting framework. The RBI's move will help strengthen offsite supervision and early recognition of financial distress.
 "UCBs to be part of CRILIC reporting framework from December 31")
Impact of NBFC failures on banking system has reduced in past 6 months: RBI
Following NBFCs, HFCs were the second-largest borrowers of funds from the financial system with gross payables of around Rs 5.9 trillion and gross receivables of only Rs 33,110 crore as of end-Sept
 "Impact of NBFC failures on banking system has reduced in past 6 months: RBI")
RBI's second round of Operation Twist, global cues fuel market rally
The 30-share Sensex ended 411.38 points higher at 41,575.14, while the Nifty closed 119.25 points up at 12,245.80
 "RBI's second round of Operation Twist, global cues fuel market rally")
Slowdown, credit squeeze to increase NPA, but banks more resilient now: RBI
Says geopolitical uncertainties an overhang; CAD to remain under control
 "Slowdown, credit squeeze to increase NPA, but banks more resilient now: RBI")