Page 114 - Rbi

Ex-RBI DG asks regulators to 'introspect' after recent instances of unease

Citing recent instances of their proposals creating unease in the industry and decisions getting overruled or withdrawn, Former Reserve Bank of India (RBI) Deputy Governor S S Mundra on Friday called for an "introspection" among financial regulators. The career central banker, who served as the Deputy Governor of the RBI for three years ending 2017, cited recent instances involving both the RBI and Sebi. "There is a little bit which is there, for which regulators also need to introspect," Mundra said, while speaking at an event organised by industry lobby grouping Assocham here. He mentioned that the Reserve Bank has had to roll back the regulations on alternative investment fund investments for banks after an uproar in the industry and it is also grappling with concerns raised by the industry over its proposals on higher provisioning for project finance. Without mentioning the exact instances, Mundra also said the apex court of the land has had to intervene by asking regulators to

Why the salary packs of top NBFC executives are on RBI's radar

Adherence to variable and deferred remuneration norms is under scrutiny

Govt seeks exemption for sovereign funds from RBI's AIF rules: Official

The rules, tightened to prevent evergreening of loans, were partially eased later in March

Growth is important, but not at cost of unacceptable risks: RBI governor

Business models designed for profitability could contain vulnerabilities that may not be apparent, says Shaktikanta Das

Banks urge RBI to separate pvt, public infra projects in financing norms

Banks are dissatisfied with this arrangement and prefer a graded approach with an initial allocation requirement of 1-2 per cent, which is an increase from the current requirement of 0.4 per cent

Not acting on unsecured lending could have created bigger problem: Das

RBI Governor Shaktikanta Das on Thursday said not acting on unsecured lending could have created a "bigger problem", and RBI's actions on such practices have had the desired impact of slowing down growth in the riskier segment. Addressing an international conference on financial resilience at the RBI's College of Supervisors here, Das said restrictions on unsecured lending were the result of a view that there could be a potential problem in the credit market because of growth in unsecured lending. The overall headline parameters were looking good, but there was "clear evidence" of dilution of underwriting standards, lack of proper appraisals and a mentality to join the bandwagon for driving up the unsecured lending among some lenders, he added. "We thought if left unattended, these vulnerabilities can become a bigger problem. So, we thought it is better to act in advance and slow down the credit growth," Das said. He expressed satisfaction that the RBI's action has had the desired

Trend upshift in growth post pandemic, rises to 8% in 2021-24: RBI report

Strong revival in pvt investment imp for growth

India set for $2 bn bond inflows around JP Morgan index inclusion day

The $2 billion, single-day inflow estimate by four bankers trails only the record-high $2.7 billion poured into Indian bonds on Aug. 20, 2014

Net FDI in India improves to $4 billion in April, says RBI bulletin

The scale of repatriation/divestment of capital declined to $2.38 billion in April 2024 from $3.47 billion a year ago

Consider direct payments, periodic review to enhance deposit insurance: RBI

In India, deposit insurance is mandatory for all banks, including foreign banks

Self-regulatory organisations for NBFCs: RBI invites application

Central bank to recognise a maximum of 2 SROs for the sector

RBI net sells $3.64 billion of foreign currency in April: Monthly bulletin

The central bank's net outstanding forward sales by the end of April stood at $16.25 billion, against $541 million in March

RBI invites applications for recognising SROs for NBFCs under its framework

The Reserve Bank on Wednesday invited applications for recognition of Self-Regulatory Organisations (SROs) for the NBFC sector under the central bank's omnibus framework. The applicant should achieve a minimum net worth of Rs 2 crore within a period of one year after recognition as an SRO, or before commencement of operations. A maximum of two SROs for the NBFC sector will be recognised. In March, RBI had issued the framework for recognising SROs for its regulated entities. SROs would be required to establish minimum benchmarks for their members. The framework specified broad parameters, like objectives, responsibilities, eligibility criteria, governance standards, and application process for SROs. According to RBI, SROs enhance the effectiveness of regulations by drawing upon the technical expertise of practitioners and also aid in framing/ fine-tuning regulatory policies by providing inputs on technical and practical aspects. "The SRO for NBFC sector is primarily envisaged for N

Retail inflation steadily easing, food prices still a concern: RBI bulletin

Retail inflation is gradually easing, but volatile and elevated food prices are interrupting the path of disinflation, the RBI Bulletin said on Wednesday. An article on the "State of the Economy", published in the June 2024 Bulletin, said global growth was resilient in the first quarter of 2024, and many central banks have pivoted towards a less restrictive monetary policy stance in response to the fall in inflation in their economies. In India, high-frequency indicators suggest the real GDP growth in Q1 FY2024-25 is broadly maintaining the pace it achieved in the preceding quarter. Also, the prospects for agriculture are brightening with the early landfall of the southwest monsoon, said the article authored by a team led by Reserve Bank deputy governor Michael Debabrata Patra. "Headline inflation is gradually easing, driven by sustained softening of its core component, although the path of disinflation is interrupted by volatile and elevated food prices," the authors said. The RB

RBI sold net $3.6 bn in spot forex market in April: Monthly bulletin

The Indian rupee was little changed month-on-month in April but fell to its record low of 83.5750 during the month while its upside was capped at 83.15

Allow foreign currency transactions in India via RBI: ICT Chairman Kapila

Consultants and service providers have urged the government to enable direct foreign currency transactions within the country through RBI, bypassing the current practice of routing transactions via the US banking system. Intercontinental Consultants and Technocrats (ICT) Chairman K K Kapila said currently, even domestic transactions in the US dollar between entities within India necessitate routing through the US banking system, incurring transaction fees. "This practice results in substantial funds leaving our economy in the form of fees paid to American banks," Kapila added, who also heads Indian Road Federation (IRF). He emphasised that it is illogical that internal foreign currency transactions within India require routing through the US, resulting in unnecessary costs to our businesses and economy. According to Kapila, consultants and service providers emphasised the need for a streamlined approach where transactions involving foreign currencies like US dollars are facilitated

Banks struggle with ATM shortage as 'Make in India' policy disrupt supply

The initial cause of low number of ATMS across India is linked to the "Make in India" guidelines introduced in FY20, which required vendors to establish operations in India, leading to a delay

Rural demand picking up, likely to hold this year: RBI Governor Das

RBI guv says premature to change stance, FY24 CAD may be less than 1%

DICGC exceeds global average with month-long depositor payout: Patra

In India, deposit insurance is mandatory for all banks, including foreign banks. As of now, 1,997 banks are covered, which includes 140 commercial banks and 1,857 co-operative banks

3 entities complete test phase of RBI regulatory sandbox's fourth cohort

Regulatory sandbox refers to live testing of new products or services in controlled regulatory environment for which regulators may permit certain regulatory relaxations for limited purpose of testing