Page 33 - Rbi Policy

Stock price, net worth of NBFCs take knock as RBI curbs investments in AIFs

RBI tightening has minimal impact on banks as their AIF exposures small

Interventions in forex market to curb excessive volatility: RBI to IMF

The Reserve Bank has told the International Monetary Fund (IMF) that the objective of frequent interventions in the forex market is to curb excessive volatility, dismissing the Fund's rationale for reclassifying India's exchange rate regime. The IMF, following the Article IV consultation with the Indian authorities, reclassified the status of the exchange rate regime to "stabilised arrangement" from "floating" for period between December 2022 to October 2023. India's Executive Director at IMF K V Subramanian and Senior Advisors Sanjay Kumar Hansda and Anand Singh questioned the selection period adopted by the Fund for analysis and also reclassification of the country's exchange rate regime. "... (IMF) staff characterisation of India's exchange rate as a 'stabilised arrangement' is incorrect and inconsistent with reality. As in the past, exchange rate flexibility would continue to be the first line of defence in absorbing external shocks, with interventions limited to addressing ...

RBI issues advisory to banks, financial cos to curb evergreening via AIFs

According to the RBI advisory, banks, NBFCs, and other financial institutions like Nabard and Sidbi will not be able to make investments in any scheme of AIFs which has downstream investments

RBI's twin meetings with banks usher in new era of governance, compliance

Governance and business models of regulated entities came in for special attention of the central bank this year, reports Raghu Mohan

56% to shut bank lockers due to rising rentals, KYC requirement: Survey

Under the RBI guidelines for banks, revised locker agreements, defining responsibilities and liabilities, must be signed and submitted to the bank branch by account holders before December 31, 2023.

Reserve Bank of India to conduct 7-day variable rate repo auction on Friday

"The response should be good from the banks and the auction should sail through easily as the liquidity is very tight right now," a dealer at a state-owned bank said

RBI authorises Bandhan Bank to disburse pension to retired railway workers

City-based private lender Bandhan Bank on Wednesday said it has been authorised by the Reserve Bank of India (RBI) to disburse pension to retired railways employees. In a statement, the bank said the lender will shortly integrate its system with the railways ministry to operationalise the pension disbursement process. The mandate will give the bank access to around 50,000 retirees each year across 17 zonal offices and eight production units of the railways across the country. Debraj Saha, head (government business), Bandhan Bank, said, "Indian Railways is one of the largest employers in the country. This will help pensioners to get access to competitive rates offered by the bank and other products of the lender.

RBI keeps all options open to manage liquidity

Inflation and central bank policy rates seem to have peaked for most countries, while the pace of economic activities remains varied across economies

Esma should follow principle of mutual trust, cooperation: T Rabi Sankar

RBI dy governor says not comfortable extraterritorial jurisdiction regulations

Monetary policy review: Reversal of SDF, MSF on weekends from Dec 30

Market analysts said that the RBI's persistent focus on addressing the uneven distribution of liquidity in the banking system led them to the adoption of measure

RBI plans cloud for financial data, repository for fintech information

It will be rolled out in the medium term and eventually be transferred to a separate entity owned by the financial sector participants, the regulator said

RBI to unveil regulatory framework for web aggregators of loan products

Move aimed at increasing transparency and improving lending practices

RBI to come up with unified regulatory framework on connected lending

The central bank believes that the decision to set up a regulatory body will strengthen the pricing and risk management of credit by these entities

Curtail consumption loans, unsecured loans with undefined end use: RBI DG

Deputy Governor Swaminathan J on Friday said the Reserve Bank wants the lenders to "curtail" consumption loans or unsecured credit, where the end-use is undefined. In the comments, which come within weeks of the RBI raising risk weights on unsecured lending to protect financial stability, Swaminathan clarified that the intent of the RBI is not to deny or ration credit. Replying to a question on whether fears of unsecured loans being used to punt on the equity market led the RBI to put some restrictions on unsecured lending, Governor Shaktikanta Das said the question is "very hypothetical" but admitted that there have been some anecdotal write-ups. " What we would like to curtail and expect the lending institutions to provide for more by way of additional risk weight, is some of those consumption-led segments or unsecured credit which do not have a defined end use," Swaminathan told reporters. He said, if there has been a recalibration of the growth number in such credit which sugge

RBI set to retain hawkish pause on interest rates; keep liquidity tight

The swap markets are signalling that the Indian central bank will begin cutting rates in the middle of 2024, at least a quarter after the U.S. Federal Reserve is expected to start loosening policy

On a hat-trick: Will RBI Governor Shaktikanta Das throw another surprise

RBI has maintained a hawkish tone in the last two policy reviews, and those steps were to further reinforce the point that the central bank is not dropping its guard on inflation any time soon

Peer-to-peer (P2P) lending: What is it, and who regulates it in India?

Peer-to-peer (P2P) lending is the practice of lending money to individuals or businesses through online services that match lenders with borrowers

NBFC business has to hit the reset button after RBI strengthens norms

Shadow banks will have to review how they lend money as Mint Road puts a squeeze on their credit lines

Arka Fincap aims to raise Rs 300 crore via non-convertible debentures

Due to surging unsecured loans like personal loans and those on credit cards, the RBI increased the risk weighting for such loans from 100 per cent to 125 per cent

MPC likely to hold repo rate for fifth time in a row, shows BS poll

Likely to revise FY24 growth forecast upward