Page 7 - Latest Updates on Reserve Bank of India
Forex reserves surge $10.5 bn, highest weekly gain in over six months
Foreign currency assets increased by $8.75 billion and gold reserves rose by $1.69 billion during the week ended July 31, driving the sharp increase in total reserves
 "Forex reserves surge $10.5 bn, highest weekly gain in over six months")
RBI eases bank PSL calculation for loans backed by non-resident deposits
Advances backed by eligible fresh FCNR(B) and NRE deposits mobilised during specified periods will be excluded from adjusted net bank credit used to determine PSL targets
 "RBI eases bank PSL calculation for loans backed by non-resident deposits")
RBI proposes new derivative-risk capital framework effective April 2027
The draft requires commercial banks to adopt the basic approach for credit valuation adjustment while offering simpler treatment to those with smaller derivatives books
 "RBI proposes new derivative-risk capital framework effective April 2027")
NBFC loan growth reaches 14.4% by June, led by retail credit expansion
Gold loans expanded 69.3 per cent and consumer durables credit grew 46.8 per cent, helping lift retail loans by 20.3 per cent to Rs 25.6 trillion by the end of June 2026
 "NBFC loan growth reaches 14.4% by June, led by retail credit expansion")
Tata Sons faces continued listing uncertainty after RBI classification
RBI has retained Tata Sons in the FY27 NBFC upper-layer list while reiterating that its de-registration application remains under examination, prolonging uncertainty over listing
 "Tata Sons faces continued listing uncertainty after RBI classification")
RBI's 4-day VRRR auction draws ₹1.3 trn bids as overnight rates edge higher
The RBI's four-day VRRR auction attracted Rs 1.3 trillion in bids as it absorbed surplus liquidity, helping push overnight money market rates closer to the policy rate
 "RBI's 4-day VRRR auction draws ₹1.3 trn bids as overnight rates edge higher")
Gold loan repayment option: Choose based on cash flow, not loan eligibility
Compare total cost and maintain a buffer to reduce auction risk
 "Gold loan repayment option: Choose based on cash flow, not loan eligibility")
MUFG lifts RBI forex inflow forecast to $87 bn as FCNR(B) flows surge
Japanese lender MUFG has raised its estimate of inflows under the RBI's concessional forex measures to $87 billion, citing robust FCNR(B) deposit mobilisation
 "MUFG lifts RBI forex inflow forecast to $87 bn as FCNR(B) flows surge")
RBI emerging as Asia's rate outlier as oil shock fails to shift outlook
RBI Governor Sanjay Malhotra has said the central bank will remain data-dependent, with resilient growth and contained inflation allowing it to keep policy unchanged despite higher oil prices
 "RBI emerging as Asia's rate outlier as oil shock fails to shift outlook")
The story now is not 'lower for longer', but the calm before higher rates
Strong growth, above-target inflation projections and near-zero real interest rates suggest the RBI's dovish stance may not last, raising the prospect of higher rates ahead
 "The story now is not 'lower for longer', but the calm before higher rates")
'Our endeavour is to bring inflation in line with target over medium term'
RBI Governor Sanjay Malhotra said policy will remain guided by headline inflation and evolving growth dynamics, while reaffirming the central bank's data-dependent approach
 "'Our endeavour is to bring inflation in line with target over medium term'")
No early closure of FCNR (B) swap window: RBI Governor Sanjay Malhotra
Governor Sanjay Malhotra says mobilisation under the concessional FCNR(B) swap window remains robust, with no proposal to close the scheme before its September 30 deadline
 "No early closure of FCNR (B) swap window: RBI Governor Sanjay Malhotra")
22 years later, RBI set to resume UCB licensing through on-tap framework
The Reserve Bank of India will soon issue draft guidelines for on-tap licensing of urban co-operative banks, setting stringent eligibility norms for credit co-operative societies seeking conversion
 "22 years later, RBI set to resume UCB licensing through on-tap framework")
Policy prospects: Inflation projections demand monetary tightening
The RBI's decision to hold rates reflects easing inflation risks for now, but rising price pressures could warrant policy tightening in the coming months
RBI proposes to harmonise framework on interest rates on advances: Malhotra
The proposed framework seeks to standardise loan pricing, benchmark reset dates and interest calculation practices while strengthening transparency and consumer protection
 "RBI proposes to harmonise framework on interest rates on advances: Malhotra")
RBI sees liquidity surplus peaking in September before normal absorption
Governor Sanjay Malhotra says surplus liquidity is likely to peak around September before being absorbed through higher currency circulation, reserve requirements and maturing forex forwards
 "RBI sees liquidity surplus peaking in September before normal absorption")
Explained: Why RBI wants to restart UCB licensing after a two-decade pause
After a 20-year freeze, the RBI is preparing to issue new UCB licences as reforms, stronger oversight and improving financial health reshape the cooperative banking sector
RBI to issue new draft norms for urban cooperative bank licensing shortly
The proposed framework sets capital, asset quality and governance criteria for cooperative credit societies seeking to become urban cooperative banks after a two-decade pause
 "RBI to issue new draft norms for urban cooperative bank licensing shortly")
SC asks RBI to frame uniform protocol for banks dealing with cyber fraud
The apex court also directed the Centre and states to strengthen measures against digital arrest scams and asked authorities to improve victim compensation and fund recovery
 "SC asks RBI to frame uniform protocol for banks dealing with cyber fraud")
RBI appoints Monisha Chakraborty as executive director from August 3
Former chief general manager-in-charge of the Department of Supervision will oversee the Foreign Exchange Department and Financial Markets Regulation Department