RBI report highlights precautionary cash hoarding and uneven fund distribution in banking system
The new norms have allowed lowering the runoff factor on deposits from non-financial entities such as trusts to 40 per cent from 100 per cent
The actual registration process was expected to commence from April, with detailed guidelines to be issued later
The State of the Economy report in the April 2025 bulletin noted that Singapore was the largest source of equity inflows with a share of 29.8 per cent, followed by Mauritius and the US
Outstanding forward market short position climbs to $88.7 billion
The report also stated that the liquidity measures undertaken by the central bank since mid-January have helped to maintain orderly conditions in the money market
The Reserve Bank on Tuesday said it has cancelled the licence of Ajantha Urban Co-operative Bank Maryadit, Aurangabad, as the lender does not have adequate capital and earning prospects. Consequently, the bank ceases to carry on banking business, with effect from the close of business on Tuesday (April 22, 2025), the Reserve Bank of India (RBI) said in a statement. The Registrar of Cooperative Societies, Maharashtra, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). As per the data submitted by the bank, the RBI said 91.55 per cent of the depositors are entitled to receiving full amount of their deposits from DICGC. As on April 3, 2025, DICGC has already paid Rs 275.22 crore of the total insured deposits. Giving re
India is poised to benefit from supply chain realignments, diversified FDI sources, and engagement with global investors seeking resilience and scale, given its already established trade linkages, said the RBI's April bulletin. Moreover, India's consistent strength in services exports and remittance inflows continues to provide a vital buffer for the current account, said an article on 'State of the Economy' in the bulletin. "Calibrated policy support can help India turn global volatility into an opportunity and strengthen its position in the emerging world economic landscape," it said. It also noted that escalation of trade and tariff tensions and the resultant financial market volatility have raised concerns regarding the weakening of global growth in the near term. "Although the dampening global economic outlook could impact India's economic growth through weaker external demand, the domestic growth engines, viz., consumption and investment, are relatively less susceptible to ..
The RBI said it purchased $45.03 billion and sold $46.6 billion. In January, the central bank had sold a net of $11.1 billion in the spot market
The government has extended the term of RBI Deputy Governor T Rabi Sankar for another one year till May 2026, according to sources. This is the second one-year extension granted to him. The Appointments Committee of the Cabinet (ACC) has approved the re-appointment of Rao for a period of one year with effect from May 3, 2025, or until further orders, sources said quoting a government order dated April 21. The ACC is headed by Prime Minister Narendra Modi. He was appointed as RBI Deputy Governor in May 2021 for an initial period of three years. In his previous role as Executive Director, Sankar was looking after the Department of Payment and Settlement Systems, the Department of Information Technology, Fintech and the Risk Monitoring Department in RBI. Sankar has also in the past served as an IMF Consultant (2005-11) towards developing government bond markets and debt management. Outside his career at the RBI, Sankar holds the role of Chairman at Indian Financial Technology and A
India's banking system, which has an estimated HQLA of almost ₹45 trillion to ₹50 trillion, could have an additional ₹2.7 trillion to ₹3 trillion in lendable resources
RBI LCR norms: The guidelines, as per analysts at CLSA, could potentially infuse liquidity worth ₹2.5 trillion in the system, which is "modest but sentimentally positive"
It is essential to understand that the very purpose of the existence of NBFCs is to issue loans that banks, with their fragile capital structure, cannot issue
The Reserve Bank on Monday permitted banks to allow minors above the age of 10 years to open and operate savings/ term deposit accounts independently. The Reserve Bank of India has issued revised instructions on opening and operation in the deposit accounts of minors. Minors of any age may be allowed to open and operate savings and term deposit accounts through his/ her natural or legal guardian, the RBI said in a circular addressed to commercial banks and cooperative banks. They may also be allowed to open such accounts with their mother as guardian. "Minors above such an age limit not less than 10 years and up to such amount and such terms as may be fixed by the banks keeping in view their risk management policy, may be allowed to open and operate savings/ term deposit accounts independently, if they so desire, and such terms shall be duly conveyed to the account holder," the circular said. Further, on attaining the age of majority, fresh operating instructions and specimen ...
Understanding loan terms of various companies is vital for financial planning and saving
The Reserve Bank on Wednesday said it has cancelled the licence of Ahmedabad-based 'Colour Merchants Co-operative Bank' as the lender does not have adequate capital and earning prospects. Registrar of Cooperative Societies, Gujarat, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, the Reserve Bank of India (RBI) said in a statement. On liquidation, every depositor would be entitled to receive the deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh only from the Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI further said as per the data submitted by the co-operative bank, about 98.51 per cent of the depositors are entitled to receive full amount of their deposits from DICGC. As of March 31, 2024, DICGC has already paid Rs 13.94 crore of the total insured deposits based on the willingness received from the concerned depositors of the bank. Giving reasons behind cancellation
Among the prominent firms that filed intent in February 2025 with the RBI is Tata Steel Ltd, for $750 million, for overseas investment in joint ventures and wholly owned subsidiaries
Interest should be paid automatically, without any demand from the pensioner: RBI circular
Reserve Bank of India will buy bonds worth ₹40,000 crore ($4.67 billion) and will also conduct 43-day repo for ₹1.50 trillion on Thursday
Reserve Bank of India (RBI) said last week it would now permit market-determined securitisation of stressed assets, besides those loans where repayments were on track