Page 94 - Latest Updates on Reserve Bank of India
RBI asks NBFCs to broad-base fundraising, reduce dependence on banks
According to the report 'Trend and Progress of Banking in India 2022-23' released by the RBI, the Indian banking system and NBFCs remain sound and resilient, backed by high capital ratios
 "RBI asks NBFCs to broad-base fundraising, reduce dependence on banks")
Reserve Bank of India gives nod to reverse merger of IDFC-IDFC First Bank
Under the proposed reverse merger scheme, an IDFC shareholder will get 155 shares for every 100 shares she/he holds in the bank. Both stocks have a face value of Rs 10 each
 "Reserve Bank of India gives nod to reverse merger of IDFC-IDFC First Bank")
RBI announces 2-day repo for $6 billion as overnight rates stay elevated
The RBI had infused 1.75 trillion rupees through a seven-day VRRR on Dec. 22 and 1 trillion rupees in the prior week that matured on Dec 22
Current account gap narrows to 1% of GDP at $8.3 bn in Q2FY24: RBI
The lower CAD in Q2FY24 was due to the narrowing of the merchandise trade deficit to $61.0 billion from $78.3 billion in Q2FY23
 "Current account gap narrows to 1% of GDP at $8.3 bn in Q2FY24: RBI")
Flows into NRI deposits double Y-o-Y to $6.11 billion in April-October 23
Flows into Foreign Currency Non-Resident (FCNR) moved back to positive territory with $2.06 billion in April-October 2023 as against an outflow of $814 million in the same period of 2022
 "Flows into NRI deposits double Y-o-Y to $6.11 billion in April-October 23")
Reserve Bank explores stringent measures to combat illegal forex trading
The RBI has compiled an alert list comprising 75 entities, including unauthorised platforms and websites involved in unauthorised forex transactions
 "Reserve Bank explores stringent measures to combat illegal forex trading")
Compliance costs may spur fintech sector consolidation: Industry experts
The minimum cost of compliance has nearly doubled over the past year, say companies
 "Compliance costs may spur fintech sector consolidation: Industry experts")
Kotak Mahindra Bank shareholders approve Vaswani's appointment as MD & CEO
Reserve Bank of India cleared Vaswani's appointment as MD & CEO of the bank for a period of three years with the effect from the date of taking charge, which should not be later than 1 January 2024
 "Kotak Mahindra Bank shareholders approve Vaswani's appointment as MD & CEO")
Bank held liable for employee oversight
The State Commission concluded that the bank officials had evidently been negligent in failing to compare the signature prior to making payment
 "Bank held liable for employee oversight")
Bank frauds increase, private sector lenders make more write-offs
Private banks in FY23 accounted for 74% of amounts written off due to fraud
 "Bank frauds increase, private sector lenders make more write-offs")
MPC members voice concern over food inflation trajectory, show minutes
External members flag high real interest rates
 "MPC members voice concern over food inflation trajectory, show minutes")
No silver lining to RBI's cloud
There is no evidence to suggest that a state-run cloud server business would do a better job, with at least two reports of UPI-related data leaks having emerged in the last two years
 "No silver lining to RBI's cloud")
Forex reserves jump by $9.11 bn to $615.97 bn for week ending Dec 15: RBI
In October 2021, the country's forex kitty reached an all-time high of $645 billion. The reserves took a hit as the central bank deployed the kitty to defend the rupee
 "Forex reserves jump by $9.11 bn to $615.97 bn for week ending Dec 15: RBI")
Last date to apply for new Sovereign Gold Bond (SGB) tranche today: Details
The bonds can be bought through agents or receiving officers (ROs), and applications must be submitted to branches during the weeks of subscription
 "Last date to apply for new Sovereign Gold Bond (SGB) tranche today: Details")
Allocate 20-30% to long-duration debt funds, enter with 6 to 8 years period
Even when investing solely for capital gains, stay flexible and extend investment horizon if required
 "Allocate 20-30% to long-duration debt funds, enter with 6 to 8 years period")
Awaiting clearance on PA license, fintechs diversify into credit offerings
Meanwhile, other payment majors awaiting a decision expect to receive a nod in the first half of the next year
 "Awaiting clearance on PA license, fintechs diversify into credit offerings")
As RBI tightens rules, Piramal to set aside funds for AIF exposure
As per the RBI's direction, regulated entities must liquidate their investments in AIFs within 30 days should the fund invest in an existing borrower
 "As RBI tightens rules, Piramal to set aside funds for AIF exposure")
Piramal Enterprises to adjust Rs 3,164 cr exposure to AIF in its financials
Move follows RBI directive limiting investments in AIFs to curb evergreening
 "Piramal Enterprises to adjust Rs 3,164 cr exposure to AIF in its financials")
RBI predominantly net buyer of US Dollar over past decade in spot market
In the current financial year, the central bank has net bought $1.7 trillion as of October
 "RBI predominantly net buyer of US Dollar over past decade in spot market")
Fintech startup EnKash gets RBI nod to operate as payment aggregator
After receiving RBI's nod to operate as payment aggregator, EnKash said that it is now poised to bring further innovation to the B2B payment business
 "Fintech startup EnKash gets RBI nod to operate as payment aggregator")