Page 37 - Rbi Policy

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 ..

Moderating inflation bolsters macroeconomic fundamentals: RBI article

A moderation in retail inflation in September from its peak in July has bolstered macroeconomic fundamentals even as global growth lost pace from the third quarter, a Reserve Bank of India (RBI) article said Thursday. According to the article on 'State of the Economy' published in the latest RBI Bulletin, in India, a broad-based gaining of momentum is discernible in high frequency indicators. Deleveraging and higher capacity utilisation have enabled capital-heavy industries to gain traction, it added. "The Indian rupee (INR) is exhibiting low volatility. Inflation has moderated from its July peak, bolstering macroeconomic fundamentals," the article said. Retail inflation declined to a three-month low of 5.02 per cent annually in September on account of moderation in vegetables and fuel prices, and back within the Reserve Bank's comfort level. The inflation based on Consumer Price Index (CPI) was 6.83 per cent in August and 7.41 per cent in September 2022. In July, inflation touch

RBI likely selling US dollars to defend rupee from sliding to record low

MUMBAI (Reuters) - The Reserve Bank of India is likely selling U.S. dollars again to defend the rupee and keep it from sliding to a record low, three traders told Reuters on Thursday

RBI likely to complete vetting bidders for IDBI Bank by October-end

The RBI normally takes about 12-18 months to complete the assessment before allowing an entity to run a bank

Banks urge RBI to set up liquidity window for financing of startups

High mortality rates in startups a big worry

RBI slaps Rs 5.39 crore penalty on Paytm PB for violating series of norms

Paytm PB facing ban on customers addition since Mar '22

RBI imposes Rs 5.39 cr penalty on Paytm Payments Bank for non-compliance

The Reserve Bank of India on Thursday said it has imposed a penalty of Rs 5.39 crore on Paytm Payments Bank Ltd for non-compliance with certain provisions, including Know Your Customer (KYC) norms. The central bank also found non-compliance with certain provisions related to 'RBI Guidelines for Licensing of Payments Banks', 'Cyber security framework in banks' and 'Securing mobile banking applications including UPI ecosystem'. A special scrutiny from KYC/AML (Anti Money Laundering) perspective of the bank was conducted and a comprehensive system audit of the bank was conducted by auditors identified by RBI, according to an official statement. After examination of the reports, RBI in the statement said it found that Paytm Payments Bank failed to identify beneficial owner in respect of entities onboarded for providing payout services. It was also revealed that the bank did not monitor payout transactions and carry out risk profiling of entities availing payout services, RBI ...

RBI's active rupee management stretches valuation to near 2-year peak

The RBI regularly intervenes in the foreign exchange markets and stepped up intervention in September

RBI increases monetary ceiling of gold loans to Rs 400,000 for UCBs

The RBI on Friday announced the increase in the monetary ceiling of gold loans that can be granted under the bullet repayment scheme from Rs 2 lakh to Rs 4 lakh for UCBs

Select unsecured loans up by nearly Rs 7 trillion since 2019, shows data

Value has nearly doubled in the period after the Covid-19 pandemic

RBI MPC meet: How many Rs 2,000 bank notes are still in circulation?

Das said that it will 'actively' manage the liquidity in the economy. The central bank will undertake open market operations to do so