Page 54 - Finance News
Banks park ₹1.7 trn at 7-day VRRR auction as banks roll over matured amount
The Reserve Bank of India's 7-day VRRR auction saw robust participation, with banks parking Rs 1.7 trillion, rolling over maturing funds. The auction's cut-off rate was 5.49%.
 "Banks park ₹1.7 trn at 7-day VRRR auction as banks roll over matured amount")
UPI tops Rs 25 trn in July; IMPS transactions rise as FASTag volumes fall
UPI transactions in July climbed to 19.47 bn in volume and Rs 25.08 tn in value, with AePS and IMPS also rising while FASTag saw a dip in both volume and value
 "UPI tops Rs 25 trn in July; IMPS transactions rise as FASTag volumes fall")
New banking law kicks in today to boost governance, protect deposits
The Banking Laws (Amendment) Act, 2025 takes effect today, introducing key reforms to improve governance, enhance PSB audits, and safeguard depositors across India
 "New banking law kicks in today to boost governance, protect deposits")
Direct tax disputes soar 198% amid rising vacancies in revenue dept
In indirect taxes, the number of cases went up from 1.13 lakh to 1.26 lakh, and the value involved more than doubled to ₹7.4 trillion during the same period
 "Direct tax disputes soar 198% amid rising vacancies in revenue dept")
RBI's net short dollar position in forwards dips to $60.29 bn by June-end
The Reserve Bank's short dollar position has declined for four consecutive months, down from its February peak of $88 billion
 "RBI's net short dollar position in forwards dips to $60.29 bn by June-end")
ICICI Bank to charge payment aggregators for UPI transactions from August 1
Private lender to charge up to Rs 10 per transaction on PAs; move follows rising infra costs and lack of MDR revenues in fast-growing UPI ecosystem
 "ICICI Bank to charge payment aggregators for UPI transactions from August 1")
Credit growth dips sharply in June as farm, NBFC offtake weakens: RBI
The pace of credit growth on a Y-o-Y basis in retail and industrial credit also moderated in June 2025, Reserve Bank of India (RBI) data showed
 "Credit growth dips sharply in June as farm, NBFC offtake weakens: RBI")
Muted response to RBI's VRRR as overnight rates rise, reducing arbitrage
With WACR and tri-party repo rates climbing, banks park only ₹13,075 crore against RBI's ₹50,000 crore offer in overnight VRRR auction
 "Muted response to RBI's VRRR as overnight rates rise, reducing arbitrage")
RBI unlikely to revive daily fixed-rate lending despite market demand
The policy, called fixed rate liquidity operations, will help banks manage their needs better, several bankers proposed to the RBI in meetings held over the last few months
 "RBI unlikely to revive daily fixed-rate lending despite market demand")
Rupee hits 5-month low after Trump's tariff threat, logs 0.7% drop
Rupee falls 60 paise to 87.42 per dollar after Trump announces 25% tariff and penalty; FPI outflows, Fed policy outlook, and rising dollar add pressure
 "Rupee hits 5-month low after Trump's tariff threat, logs 0.7% drop")
ICAI notifies norms to cap individual tax audits by CAs to 60 annually
The norms in this regard have been notified and are mandatory, he said, and stressed that audit is the forte of chartered accountants
 "ICAI notifies norms to cap individual tax audits by CAs to 60 annually")
MFIs face tough recovery path; profitability seen by FY26-end: CRISIL
CRISIL says MFI profitability to normalise only by end-FY26 as legacy slippages and state-level disruptions in Karnataka and Tamil Nadu slow down recovery prospects
 "MFIs face tough recovery path; profitability seen by FY26-end: CRISIL")
World Bank plans securitisation, debt swaps to boost development
"We can't do project by project," Banga said of the securitisation plans. "We don't have 100 years."
 "World Bank plans securitisation, debt swaps to boost development")
AHFC loans to increase to ₹2.5 trillion by FY28-end: Icra report
It said non-bank lenders' mortgage portfolio is set to touch ₹20 trillion by March 2028, from ₹13 trillion in March 2025
 "AHFC loans to increase to ₹2.5 trillion by FY28-end: Icra report")
RBI eases norms, caps investments by banks, NBFCs in AIF schemes at 20%
RBI caps exposure at 20% for banks, NBFCs in AIF schemes, excluding equity investments from provisions, with new guidelines effective from January 2026
 "RBI eases norms, caps investments by banks, NBFCs in AIF schemes at 20%")
Rupee weakens to over four-month low on importers' US dollar demand
The rupee fell to its lowest level since March 13 as importer dollar demand, trade deal uncertainty, and foreign outflows weighed on sentiment amid RBI liquidity measures
 "Rupee weakens to over four-month low on importers' US dollar demand")
Only 1.37% of eligible central employees opted for UPS as of July 20
Just 31,555 employees have enrolled in the Unified Pension Scheme despite a three-month extension; Finance Ministry highlights low adoption
 "Only 1.37% of eligible central employees opted for UPS as of July 20")
UPI payments through biometrics likely soon; PIN may become optional
The National Payments Corporation of India (NPCI) is preparing to roll out this update to UPI, which is expected to enhance security and convenience
 "UPI payments through biometrics likely soon; PIN may become optional")
FinMin sees room for more rate cuts as inflation remains below RBI's target
The central has cumulatively reduced the short-term benchmark lending rate (repo) by 100 basis points since February
 "FinMin sees room for more rate cuts as inflation remains below RBI's target")
RBI to conduct 3-day VRRR auction Tuesday to absorb ₹50,000 crore
The central bank's move follows rising liquidity in the system that has pulled overnight rates below the repo rate; WACR and tri-party repo rates remain under pressure