Page 17 - Rbi Policy

Rupee strengthens to 84.95 intraday as dollar index continues to slip

The market was surprised with the central bank's decision to stay away from the foreign exchange market as it was an opportunity to buy dollars

RBI proposes new regulations for export, import transactions under Fema

In July last year, the RBI had issued the draft, and based on the feedback received from the public and subsequent further consultations with various stakeholders

Banks propose RBI switch to overnight liquidity management, new benchmark

The 14-day variable rate repo, or reverse repo, has been the RBI's main cash management tool since a change in 2020 that was intended to reduce lenders' reliance on the central bank

RBI decides not to conduct 14-day repo auction for upcoming fortnight

Banking system liquidity moved into surplus on March 29, after being in deficit since mid-December. The surplus stood at 1.42 trillion rupees, as on April 1

RBI allows banks to raise ATM charges to Rs 23 per withdrawal from May 1

The Reserve Bank on Friday permitted banks to increase charges on ATM cash withdrawals beyond the free monthly usage by Rs 2 to Rs 23 per transaction from May 1. Customers are eligible for five free transactions (inclusive of financial and non- financial transactions) every month from their own bank Automated Teller Machines (ATMs). They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs -- three transactions in metro centres and five in non-metro centres. "Beyond the free transactions, a customer may be charged a maximum fee of Rs 23 per transaction. This shall be effective from May 1, 2025," the RBI said in a circular. Currently, banks are allowed to charge Rs 21 per transaction, after a customer exhausts the free transaction limit. The RBI further said the instructions shall also apply, mutatis mutandis, to transactions done at cash recycler machines (other than for cash deposit transactions).

RBI mandates banks to conduct special clearing operations on March 31

The RBI on Friday asked all banks to mandatorily participate in the special clearing operations on March 31 to facilitate accounting of all government transactions for 2024-25. India follows the April 1-March 31 financial year. The Income tax offices as well as CGST offices across the country will remain open on March 29 to March 31 despite the weekend and Eid-al-Fitr, which may fall on Monday. Earlier, the RBI had said all government transactions done by agency banks for 2024-25 must be accounted for within the same financial year. It had asked all agency banks to keep all branches dealing with government receipts and payments open for over-the-counter transactions related to government transactions up to the normal working hours on March 31, 2025. In a circular on Friday, the Reserve Bank of India (RBI) also said normal clearing timings under Cheque Truncation System (CTS) as applicable to any working "Monday" shall be followed on March 31, 2025. "Further, to facilitate account

Indranil Bhattacharyya appointed as new executive director of RBI

The Reserve Bank of India (RBI) on Thursday said it has appointed Indranil Bhattacharyya as executive director (ED). As executive director, Bhattacharyya will look after the Department of Economic and Policy Research, the RBI said in a statement. The appointment is effective from March 19. Prior to his promotion as ED, Bhattacharyya was serving as Adviser in the Monetary Policy Department of the RBI. Over a span of nearly three decades, he has worked in the areas of monetary policy, fiscal policy, banking, and international economic relations in the Monetary Policy Department, Department of Economic and Policy Research and the International Department of the RBI. He has also served as an economic expert in the technical office of the Governor at Qatar Central Bank, Doha, Qatar for 5 years (2009-14). Bhattacharyya has a postgraduate degree in economics from Jawaharlal Nehru University, New Delhi. His research interests are primarily in monetary theory and policy, financial market

Waiting for a fair wind: Shadow bank risks persist despite RBI relief

Consumer credit exposures of commercial banks and NBFCs (excluding housing, education, vehicle loans and loans secured by gold and gold jewellery) still attract a weighting of 125 per cent

IndusInd Bank CEO gets 1-year extension, short of board's recommendation

The Reserve Bank of India (RBI) approved Kathpalia's term to be extended from March 24 this year to March 23, 2026, IndusInd said

RBI advises NBFCs to curb perpetual credit lines over risk concerns

The RBI has cautioned NBFCs on perpetual credit lines, citing risks of loan evergreening and financial instability, urging lenders to slow down issuance of such flexible credit products

Tata Capital seeks approval for related party deals with Tata Steel, TCS

Under the factoring arrangement, Tata Steel discounts its sales receivables with Tata Capital (TCL) arising from goods sold on credit to customers

Reserve Bank of India conducts $10 bn forex swap to inject liquidity

This was the second swap auction by the central bank, after it infused $5 billion via a six-month swap on January 31

RBI imposes penalty on HSBC, IIFL Samasta Finance for violating norms

With reference to HSBC's financial position as on March 31, 2023, RBI found that the bank had outsourced the disposal or closure of anti-money laundering (AML) alerts to a group company

Shares of NBFCs, MFIs rally up to 15% as RBI reduces risk weight on loans

CreditAccess, L&T Fin, RBL Bank, Poonawalla Fincorp, Five-Star Business Finance, Ujjivan SFB, Shriram Finance, Cholamandalam, M&M Financial, AU SFB and Bandhan Bank were up in the range of 4% - 15%.

RBI article signals economic momentum rise in H2FY25 amid strong demand

High frequency indicators, like vehicles sales, air traffic, steel consumption and GST E-way bills, point towards a sequential pickup in momentum of economic activity during the second half of the fiscal 2024-25 and sustain moving forward, RBI Bulletin said on Wednesday. However, a strong dollar, driven by US economic resilience and trade policy pivots, could exacerbate capital outflows from emerging economies, push risk premiums higher, and intensify external vulnerabilities, said an article on 'State of the Economy' published in RBI's February bulletin. Economic activity momentum is poised to be sustained, strong rural demand is expected to receive a further fillip from the robust performance of the agriculture sector. Urban demand is also poised for a recovery, tracking decline in inflation as well as a boost to disposable incomes from the sizeable income tax relief announced in the Union Budget 2025-26. "...high frequency indicators point towards a sequential pick-up in momentum

20 NBFCs, including IDFC, surrender CoR; 17 licences cancelled: RBI

The Reserve Bank of India on Friday said 20 non-banking financial companies, including Reliance Commercial Finance and IDFC Limited, have surrendered their certificate of registration (CoR). Of these, two non-banking financial companies (NBFCs) have surrendered their CoR as they have exited from the non-banking financial institution business. These NBFCs are Manoway Investments Private Limited and Reliance Commercial Finance Limited. IDFC Ltd, IDFC Financial Holding Company Ltd and other 16 entities surrendered the CoR as it ceased to be a legal entity due to amalgamation or merger. Besides, the RBI cancelled the CoR of 17 NBFCs, the central banks said in another statement. These NBFCs whose licences were cancelled had their registered office in West Bengal. In a separate statement, RBI said it has restored the licence of Kamdhenu Finance Company Pvt Ltd after considering the orders passed by the Appellate Authority/Courts.

RBI imposes Rs 68.1 lakh fine on Nainital Bank, Ujjivan Small Finance Bank

The Reserve Bank on Friday said it has imposed penalties totalling Rs 68.1 lakh on two banks -- Nainital Bank and Ujjivan Small Finance Bank -- for contravention of regulatory norms. A penalty of Rs 61.40 lakh was imposed on Nainital Bank Ltd for non-compliance with certain directions on Interest Rate on Advances' and Customer Service in Banks', RBI said in a statement. Further, RBI imposed a penalty of Rs 6.70 lakh on Ujjivan Small Finance Bank for non-compliance with certain directions issued by RBI on Loans and Advances - Statutory and Other Restrictions'. RBI also levied a penalty of Rs 5.80 lakh on Shriram Finance, a non-banking entity, for non-compliance with certain provisions, including Know Your Customer (KYC ) guidelines and directions on Data Format for Furnishing of Credit Information to Credit Information Companies'. The penalties are based on the deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement .

RBI intervention boosts rupee to strongest weekly gain in 19 months

On Monday, the rupee slipped to an all-time low of 87.95 against the dollar, but the fall was limited as the RBI intervened by selling dollars in the spot market

RBI imposes curbs on New India Co-operative Bank on supervisory concerns

The bank's advances reduced to 11.75 billion rupees as of March 31, 2024, from 13.30 billion rupees a year earlier. Its deposits rose to 24.36 billion rupees from 24.06 billion rupees

RBI rate cut, Government borrowing & spending, Foreign investment, Insurance employees demand pay hike, MSMEs see growth

RBI rate cut Government borrowing & spending Foreign investment in insurance Insurance employees demand pay hike Small businesses see growth