Page 32 - Rbi Policy

RBI slaps penalties totalling Rs 10.34 cr on Citibank, BoB, and IOB

The Reserve Bank on Friday imposed penalties totalling Rs 10.34 crore on Citibank, Bank of Baroda, and Indian Overseas Bank for contravention of various regulatory norms. The highest penalty of Rs 5 crore has been imposed on Citibank NA for non-compliance of norms related to depositor education and awareness fund scheme, and code of conduct on outsourcing of financial services, the RBI said in a statement. A fine of Rs 4.34 core was imposed on the state-owned Bank of Baroda for violation of certain directions related to the creation of a central repository of large common exposures, and others, another release said. Chennai-based public sector lender Indian Overseas Bank was slapped with a Rs 1 crore fine for contravention of directions concerning loans and advances. In all three cases, the Reserve Bank of India said, penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks

Songs, cricket metaphors: RBI governor's way of conveying complex issues

Das has often cited the example of Arjuna's eye to communicate that the central bank is completely focused on bringing down inflation

SBI set to increase interest rate after RBI's higher risk weight norms

RBI says growth-driving sector exempted from tighter norms

Fintechs may shift to secure products after RBI order on consumer loans

Central bank's directives not a complete surprise and will prompt sector to diversify business, they say

Risk weight hikes by RBI: Maintaining credit score now more crucial

If you're finding it difficult to secure a personal loan or credit card, be prepared to offer some collateral

RBI tightening on unsecured loans: White goods firms fear margin squeeze

While the consumer won't bear the brunt of RBI's move, companies, however, still await clarity but expect their margins to take some hit

No-cost, longer-tenure EMIs gain traction, drive consumer product sales

Notably, to address the concern of the rapid rise in unsecured consumer loans, the RBI increased the risk weight on consumer credit

Forex trade impacted by platform outage; RBI asks for root cause analysis

Trading in the forex market was impacted on Friday as one of the platforms suffered an outage. One of the electronic trading platforms suffered an outage around midday during the trading hours due to which players were unable to log into the system, according to sources. Orders dried up as a result of this, they said, adding that this created a heightened uncertainty in the forex market, causing excess volatility in the Indian rupee, which was avoidable. According to market participants, the Rupee, which has been range-bound around 83.30 to the dollar for many weeks lost some ground as a result of the volatility, depreciating till 83.50 intra-day before closing at 83.34 at the end of the trading session. A source said the Reserve Bank of India has asked the platform to undertake a "root cause analysis" and "ascertain whether it was a system failure or human error that led to the disruption" on the platform. The RBI has also sought an explanation from the platform to understand the

ICICI Bank gets RBI nod to make ICICI Securities wholly-owned subsidiary

ICICI Bank on Thursday said ICICI Securities will be its wholly owned subsidiary following the approval of the Reserve Bank of India. The ICICI Bank on June 29 had approved a proposal to delist ICICI Securities and become a wholly-owned subsidiary of the bank after delisting. The bank has received approval from the RBI for making ICICI Securities a wholly owned subsidiary, subject to certain conditions, ICICI Bank said in a regulatory filing. "Certain other statutory/regulatory approval(s), as required under applicable laws, are awaited," it said. ICICI Securities, promoted by ICICI Bank, is the country's leading retail-led equity franchise, distributor of financial products and investment bank.

RBI remains watchful, monetary policy actively disinflationary: Das

Reserve Bank of India remains watchful and the monetary policy is actively disinflationary and supporting growth, Governor Shaktikanta Das said on Thursday. The government has mandated the RBI to ensure that inflation based on the Consumer Price Index (CPI) remains at 4 per cent with a margin of 2 per cent on either side. At a symposium in Tokyo, Das also talked about the central bank's approach to the fintech ecosystem, saying it is customer-centric. There is focus on good governance, ensuring effective oversight, ethical conduct and risk management, and encouraging self-regulation by the fintechs themselves through a Self-Regulatory Organisation (SRO), he said. Das said the Monetary Policy Committee (MPC) in its October meeting projected CPI inflation at 5.4 per cent for 2023-24, a moderation from 6.7 per cent in 2022-23. The CPI inflation fell to a three-month low of 5 per cent in September. The data for October is scheduled to be released on November 13. Headline inflation, .

RBI's unpredictability on NDF market makes lenders wary, say bankers

Already banks are reducing the size of their books -- from about $25 billion last year to under $1 billion now, in the case of a large public sector bank

RBI may hold fire even if Fed hikes rates twice: CEA V Anantha Nageswaran

RBI Governor Shaktikanta Das recently said at the Business Standard's BFSI Insight Summit domestic factors determined India's monetary policy

RBI Deputy Guv pitches for institute to train regulators across sectors

Reserve Bank Deputy Governor M Rajeshwar Rao on Thursday pitched for creating a dedicated institute to train regulators across sectors. Regulation has to be far-sighted and requires fine drafting which makes it a fine art, Rao said, stressing the need to focus on training and skilling of the practitioners. I think maybe it is time that we should look at the theoretical framework for regulation making and training for regulation making a critical aspect, which should be incorporated by all the sectors. Maybe there is a need for a training institute to look at this issue, Rao said addressing a conference here. Rao said the country is increasing the tribe of regulators across sectors and hence, there is a need to study the theoretical approach to regulation that encompasses understanding what kind of regulation is preferred under what circumstances. The career central banker also made it clear that he is not confining himself just to the RBI and added that the need for training of ...

RBI central board reviews global economic, financial developments

The Central Board of Directors of the Reserve Bank of India on Friday reviewed economic and financial developments, including challenges posed by the evolving geopolitical conflicts. The 604th meeting of the board was held in Rishikesh under the Chairmanship of RBI Governor Shaktikanta Das. The board reviewed global and domestic economic and financial developments, including challenges posed by the evolving geopolitical conflicts, the central bank said in a statement. "The board also discussed the functioning of various sub-committees of the central board, the ombudsman scheme and activities of select central office departments," it added. Deputy governors Michael Debabrata Patra, M Rajeshwar Rao, T Rabi Sankar, and Swaminathan J attended the meeting. The other directors of the central board -- Revathy Iyer, Sachin Chaturvedi, Pankaj Ramanbhai Patel and Ravindra H Dholakia -- were also present in the meeting. Department of Economic Affairs Secretary Ajay Seth also participated th

5 MSME lending products complete test phase under RBI's sandbox scheme

The Reserve Bank on Friday said five products related to MSME lending have completed the test phase under its regulatory sandbox cohort and regulated entities may consider them for adoption. Regulatory sandbox usually refers to live testing of new products or services in a controlled/test regulatory environment, for which regulators may (or may not) permit certain relaxations for the limited purpose of the testing. Meanwhile, the central bank has also announced the fifth cohort under the regulatory sandbox scheme. Innovative products, services and technologies cutting across various functions in RBI's regulatory domain are eligible to apply for the sandbox scheme, the central bank said. Applications may be submitted from October 30 to November 30, 2023. The RBI said products of the entities which completed the 'Test Phase' were evaluated based on mutually agreed test scenarios and expected outcomes. Products of FinAGG Technologies Private Limited, Mynd Solutions Private Limited, .

RBI mulls barring recovery agents to call borrowers before 8 am, after 7 pm

The RBI on Thursday proposed stricter norms for recovery of overdue loans under which financial institutions and their recovery agents cannot call borrowers before 8 in the morning and after 7 in the evening. Regulated Entities (REs) like banks and NBFCs should not outsource core management functions, including policy formulation and decision-making functions like determining compliance with KYC norms and according sanction for loans, said the 'Draft Master Direction on Managing Risks and Code of Conduct in Outsourcing of Financial Services'. "The underlying principle of the proposed directions is that the RE should ensure that outsourcing arrangements neither diminish its ability to fulfil its obligations to customers nor impede effective supervision by the supervisory authority," the Reserve Bank of India said. The draft said REs should put in place a board-approved code of conduct for Direct Sales Agents (DSA)/ Direct Marketing Agents (DMA)/ Recovery Agents (applicable to ...

RBI to meet senior bank officials next week, liquidity to be discussed

Market participants are also eagerly awaiting hints on when the RBI would conduct an open market sale of debt as announced in the October monetary policy meeting

RBI puts Rs 2.5 cr penalty on L&T Finance for non-compliance of NBFCs norms

The Reserve Bank of India on Friday said a penalty of Rs 2.5 crore has been imposed on L&T Finance Ltd for non-compliance with certain norms concerning non-banking financial companies (NBFCs). After examination of reports following statutory inspection of the company, the RBI said it was revealed that the NBFC did not disclose to its retail borrowers, the gradation of risk and rationale for charging different interest rates to different categories of borrowers in the loan application form/sanction letter. It also failed to notify the change in penal interest rate to borrowers, when it charged penal interest rate higher than what was communicated at the time of sanction, the RBI said. "After considering the company's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, the RBI came to the conclusion that the charge of non-compliance... was substantiated and warranted imposition of monetary penalty, to the extent of such ...

Rupee logs best day in 3 weeks on likely 'aggressive' RBI intervention

"Any uptick on the rupee is likely to be short-lived with importers stepping in"

MoS Finance urges pvt banks to push govt's financial inclusion programmes

Minister of State for Finance Bhagwat K Karad on Thursday urged private sector banks to push various financial inclusion programmes like Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana. Karad chaired a review meeting on the progress and performance of financial inclusion schemes, including preparedness under the PM Vishwakarma Scheme, with senior management of private sector banks here. During the meeting, he reviewed the progress of various financial inclusion (FI) schemes, including Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Pradhan Mantri Mudra Yojana (PMMY), Stand Up India and PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi). He also reviewed the progress of opening brick-and-mortar branches of banks in unbanked villages with a population of more than 3,000 people. Appreciating the efforts, he ..