RBI says banks must park a 20% forex risk reserve in CRR accounts over and above mandatory balances, as the new rules raise hedging costs and push up forward premiums
The central bank has mandated a 20 per cent reserve on eligible rupee derivative contracts used by authorised dealers to hedge their own currency risks, without a minimum transaction threshold
The move is the latest in a slew of measures announced by the central bank since Saturday aimed at supporting the rupee, which has been falling due to steep oil prices and capital outflows
The RBI raised minimum daily CRR maintenance to 99 per cent from October 16 and announced a ₹25,000 crore bond sale on October 13 to align overnight rates with the repo rate.
The Iran war and disruption in energy supplies, resulting in higher prices, created the possibility of an expansion in the CAD
The RBI may use an incremental CRR to absorb rising surplus liquidity before raising the repo rate, as core liquidity could approach ₹10 trillion in coming weeks
Expectations of stronger forex inflows have sparked talk of an RBI CRR hike if surplus liquidity builds sharply by August
In June, the central bank announced a phased 100-basis-points CRR cut from September to November to release about ₹2.5 trillion ($28.3 billion)
YES Securities warns India's growth relies too heavily on government spending as private capital expenditure falters despite record corporate cash holdings of ₹10.35 trillion
System liquidity, as measured by the net position under the liquidity adjustment facility, has been in surplus, averaging ₹3 trillion per day since the last MPC meeting
Consumption stocks: With RBI cutting repo rate and CRR amid easing inflation, consumer sentiment is expected to improve. Find out which consumer stocks could benefit the most and top stocks to buy
The cut in CRR would release primary liquidity of about Rs 2.5 lakh crore to the banking system by December 2025
The RBI reduced the policy repo rate for a third successive time, which was widely expected
With inflation expected to rise back to above 4 per cent by Q4-FY26, the Monetary Policy Committee has capitalised upon the available headroom to frontload rate action
RBI MPC's latest decisions come amid easing inflationary pressures and continued challenges to economic growth. Here are the highlights from the central bank's June policy meet
The report predicts that the RBI could cut the repo rate by 25 basis points in its February 2025 policy meeting, with a total reduction of at least 75 basis points over the entire easing cycle
RBI announces OMOs, VRR auction, $-rupee buy-sell swap
This reduction in the CRR released primary liquidity of approximately Rs 1.16 trillion into the banking system
State-owned Punjab & Sind Bank plans to raise Rs 3,000 crore from maiden infrastructure bonds this month as part of exercise to raise resources to expand loan book. "We have taken board approval for raising Rs 5,000 crore from infrastructure bonds in tranches. As against that, the bank proposes to raise Rs 3,000 crore in the first tranche," Punjab & Sind Bank Managing Director and CEO Swarup Kumar Saha said. Asked about the timing of fundraise, he said, it would be tentatively in the third week of this month. The base issue size is going to be Rs 500 crore, with a greenshoe option of Rs 2,500 crore. In accordance with RBI guidelines, these papers would have a tenure of 10 years. They have been rated as 'AA' by domestic rating agencies. The bank proposes to utilise the proceeds in the next two quarters. These bonds would be listed on the National Stock Exchange (NSE) for trading. The bank is aiming at the credit growth of 13-14 per cent during the current financial ...
Deposit rates may start easing