Page 41 - Latest Updates on Reserve Bank of India
Transition woes: SFBs' long bumpy road to becoming universal banks
The RBI requires SFBs to provide a detailed rationale for their desire to convert into a universal bank. Those with a diversified loan portfolio will be preferred
 "Transition woes: SFBs' long bumpy road to becoming universal banks")
SDL-based STRIPS: Use for duration matching, not for tactical gains
Invest for more than 12 months to enjoy favourable tax treatment
 "SDL-based STRIPS: Use for duration matching, not for tactical gains")
73% ATMs now dispense ₹100, ₹200 notes ahead of RBI's Sept 30 deadline
RBI directed banks in April 2025 to ensure 75 per cent of ATMs dispense ₹100 or ₹200 notes from at least one cassette by the September 30 deadline to improve access to small denominations
 "73% ATMs now dispense ₹100, ₹200 notes ahead of RBI's Sept 30 deadline")
Credit growth drops to 8.97% in May, lowest level in three years
Credit growth slows as banks tighten lending amid stress in microfinance and unsecured loans; deposit growth outpaces credit by 100 bps in May 30 fortnight
 "Credit growth drops to 8.97% in May, lowest level in three years")
RBI seeks market views on aligning call money rate with policy repo
The policy rate currently stands at 5.50 per cent, while the overnight call rate averages 5.30 per cent and the TREPS rate hovers near 5.20 per cent
 "RBI seeks market views on aligning call money rate with policy repo")
SBI reduces interest rates by up to 50 bps following RBI's rate cut
With the latest round of reduction, the Repo Linked Lending Rate (RLLR) of SBI would come down by 50 basis points to 7.75 per cent
 "SBI reduces interest rates by up to 50 bps following RBI's rate cut")
What works in central banking? Striking a balance between talk and action
The latest monetary policy has also gone for a 50-basis-point rate cut, double the anticipated reduction
 "What works in central banking? Striking a balance between talk and action")
RBI rejects bids for 30-year green bonds as investors seek high yields
Investors demanded higher returns for 30-year green bonds, prompting RBI to reject all bids at auction; bond yields rise amid absence of greenium and market caution
 "RBI rejects bids for 30-year green bonds as investors seek high yields")
RBI gives Yes Bank MD & CEO Prashant Kumar 6-month extension: Lender
Kumar got his first extension in October 2022 for a three-year period till Oct 25
 "RBI gives Yes Bank MD & CEO Prashant Kumar 6-month extension: Lender")
Closer scrutiny of independent directors likely amid IndusInd Bank row
RBI's vetting process may become more intense as banking industry looks for people skilled to be 'effective board members'
RBI skips 14-day main liquidity operation for third fortnight in a row
RBI holds back 14-day operation for third fortnight, despite ₹3-3.5 tn tax outflows expected, citing adequate liquidity and short-term rate stability
 "RBI skips 14-day main liquidity operation for third fortnight in a row")
RBI allows KYC updation for low-risk customers till 30 June 2026
Allows Business Correspondents to assist in KYC updation, reactivation of inoperative accounts under extended compliance timeline
 "RBI allows KYC updation for low-risk customers till 30 June 2026")
RBI winds down offshore currency tool reflecting shift in strategy
Reduction in the offshore exposure accounts for most of the recent drop in the RBI's overall forward dollar positions
No lock-in FDs abroad: RBI set to tighten overseas remittance rules
Reserve Bank of India plans to block overseas fixed deposits under Liberalised Remittance Scheme to curb misuse, protect forex reserves, and prevent passive capital flight by resident Indians
 "No lock-in FDs abroad: RBI set to tighten overseas remittance rules")
RBI sends conflicting signals about monetary policy with surprise moves
The Reserve Bank of India surprised analysts last week by cutting interest rates more than expected and announcing a cash boost for banks, citing the need to spur growth
 "RBI sends conflicting signals about monetary policy with surprise moves")
Share of small-ticket gold loans to rise as RBI eases the LTV norms
Repo rate cut, liquidity infusing to aid NBFCs performance
 "Share of small-ticket gold loans to rise as RBI eases the LTV norms")
Two public-sector firms pull bond sales as RBI moves spark swings
The average yield on top-rated three- and five-year corporate debt rose eight basis points and nine basis points
 "Two public-sector firms pull bond sales as RBI moves spark swings")
The goal is a solid bank with tight credit, governance: Jana SFB MD & CEO
Jana Small Finance Bank's Managing Director and Chief Executive Officer discusses the bank's future plans and growth strategy
 "The goal is a solid bank with tight credit, governance: Jana SFB MD & CEO")
Here's why Jana Small Finance Bank share is buzzing in trade on June 10
Jana SFB shares advanced after the lender submitted an application to the Reserve Bank of India (RBI), seeking its approval to convert from a Small Finance Bank to a Universal Bank.
 "Here's why Jana Small Finance Bank share is buzzing in trade on June 10")
Bond yields harden as traders sell bonds at profit after RBI rate cut
Government bond yields rose as traders booked profits following RBI's 50 basis point repo rate cut and change in policy stance, impacting market sentiment
 "Bond yields harden as traders sell bonds at profit after RBI rate cut")