Page 38 - Rbi Policy

RBI warns banks, NBFCs against reliance on model-based lending practices

The regulator said inherent biases and lack of transparency with AI/ML outcomes carry risks

RBI announces 2-day repo for $6 billion as overnight rates stay elevated

The RBI had infused 1.75 trillion rupees through a seven-day VRRR on Dec. 22 and 1 trillion rupees in the prior week that matured on Dec 22

'Closer to where rates have to be cut to avoid excessive real interest'

Varma says that since monetary policy acts with lags of three to five quarters, rate actions must be based on projected inflation rather than past inflation prints. In an interview with Manojit Saha

Need to keep real rates at level to sustain virtuous cycle: Ashima Goyal

Ashima Goyal tells Manojit Saha in an email interview that the inflation rate does not necessarily have to fall to 4%, but it is essential to be confident that it will stay below 5%

NBFCs begin provisioning for AIF exposure after RBI tightens norms

Piramal to adjust Rs 3,164 cr; IIFL Finance sees Rs 161 cr impact

Indian bond yields continue flattish trend, traders eye fresh cues

Indian government bond yields were largely flat on Wednesday in yet another trading session, amid consolidation after their recent decline and as traders awaited more directional triggers

Gross fiscal deficit of Centre, states stays under 7% of GDP: RBI article

Lower disinvestment receipts are likely to be offset by sharp gains in non-tax revenues, mainly attributable to higher dividends from the Reserve Bank and other financial institutions

Outward remittances under RBI's LRS scheme dropped 60% in October

In the August-October quarter of financial year 2024, Indians remitted $9.05 billion overseas, as compared to $7.26 billion in the second quarter of FY24

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