Finance News

Growing external borrowings make NBFCs more vulnerable to rupee swings: RBI

RBI says NBFCs' higher foreign currency borrowing has helped steady funding costs, but it raises vulnerability to exchange rate volatility even with most exposure hedged

External uncertainties could trigger outflows, rupee volatility: RBI FSR

RBI flags risks from global shocks, including a sharp US equity correction, that could spur foreign portfolio outflows and rupee volatility, though it says buffers remain adequate

Yield curve steepens as insurers, pension funds shift from bonds: FSR

RBI's FSR says higher G-Sec and SGS supply and softer demand from insurers and pension funds are keeping long-term yields elevated even as short rates fall on easing and liquidity

Up to four banks may tap capital buffers in adverse scenarios: RBI

RBI stress tests suggest some banks may need to draw on capital conservation buffers under adverse macro conditions, though minimum capital norms are likely to remain intact

RBI net short dollar position rises to $66 bn in rupee forwards by Nov end

RBI data shows its outstanding net short dollar position in the rupee forward market rose to $66.04 billion by end-November, up from $63.6 billion at end-October

Microfin borrower indebtedness rises marginally in Sept after two-year dip

RBI's Financial Stability Report shows microfinance borrower indebtedness edged up in September 2025 after a two-year decline, even as credit and active borrowers fell in H1 FY26

RBI warns of risks in bank-NBFC interlinkages, asset concentration

The RBI's Financial Stability Report warns that banks are increasingly buying NBFC-originated loans to scale retail portfolios, with nearly 80 per cent of assets sourced from a limited set of non-bank

RBI flags unsecured loans dominance in fintechs' expanding loan book

Unsecured personal loans dominate fintech lending, with younger borrowers accounting for over half the exposure, as the RBI highlights growth and asset quality trends

High distribution costs limit insurance coverage, says RBI in FSR report

RBI's Financial Stability Report said high distribution-led costs are embedded in pricing, hurting affordability and penetration, while insurers' conservative investing may weaken product appeal

RBI flags stablecoin risks, urges countries to prioritise CBDCs over crypto

In its Financial Stability Report, RBI said central bank money must remain the ultimate settlement asset, warning that stablecoins pose macrofinancial risks and can weaken capital controls

Credit growth nears 12% as deposit growth slows to 9.35% till Dec 15

Credit growth remained strong till December 15, while deposit growth weakened further, widening the credit-deposit gap and underscoring persistent liquidity tightness in the banking system

Finance ministry notifies rules to enable 100% FDI in insurance sector

Revised rules remove the requirement for majority Indian directors in insurers with foreign investment, but mandate that one of the top leadership roles be held by an Indian resident

Rupee enters 2026 on back foot after worst annual drop in 3 years

The currency repeatedly fell to record lows during the year, slipping past the 91 level at one point, highlighting the sustained depreciation pressure

2025: Year of big-bang reforms aimed at ease of doing business in finance

The Reserve Bank of India rolled out sweeping reforms in 2025 to lower compliance costs and improve ease of doing business, from LCR relief and project finance norms to digital lending rules

DFS pushes digitisation, reforms to speed up recoveries through DRTs

The DFS is pushing mandatory e-filing, virtual hearings and legal reforms to improve disposal rates and speed up recoveries through debt recovery tribunals

Housing top reason for partial withdrawals under NPS in FY25: PFRDA

Housing-related needs accounted for the highest number of partial withdrawal requests under the National Pension System in FY25, with Rs 1,327.91 crore withdrawn, PFRDA data show

RBI to conduct OMO purchase auction worth ₹50,000 crore on January 5

The RBI will buy government securities worth ₹50,000 crore in an OMO auction on January 5, 2026, as part of four equal tranches announced for late December and January

Govt plans to amend SARFAESI Act to include special situation funds

Centre is considering amending SARFAESI to include special situation funds as financial institutions and to require borrowers to file representations within 30 days of a demand notice, sources said

MCA extends annual filings deadline to January 31, 2026, waives late fee

The MCA has extended the annual filing deadline by a month to January 31, 2026, with no additional fee, after professionals flagged persistent glitches on the V3 portal

RBI rejects bids for 2037 paper at OMO as banks quote prices above market

RBI rejected bids for the 7.18 per cent 2037 security as quoted prices were above market levels, but purchased ₹50,000 crore of gilts in line with the notified amount