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Regulating fintech

RBI draft guidelines kick off the process

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RBI clears appointment of whole-time director for 3 years by Bandhan Bank

The lender added that Babbar's three-year tenure will begin from the date of taking charge, which should be within three months from the date (January 17, 2023), of the said RBI approval

India must sustain growth momentum, secure at least 7% growth in FY25: RBI

"In India, potential output is picking up with actual output running above it, although the gap is moderate," the RBI said in an article titled 'State of the Economy'

Monetary policy has to remain actively disinflationary: Shaktikanta Das

Das said he expects January inflation to moderate and the trend has been moderating but unless inflation reaches 4 per cent on a durable basis

Govt can look at taxing rich farmers, says MPC member Ashima Goyal

Having taken care of poor farmers by transferring funds into their accounts, the government can contemplate imposing income tax on rich farmers to bring about fairness in the taxation structure, Reserve Bank Monetary Policy Committee (MPC) member Ashima Goyal has said. Finance Minister Nirmala Sitharaman will present the interim Budget on February 1 in the Lok Sabha. "Government transfer payments to farmers are like a negative income tax. Along with that, a positive income tax can be applied for rich farmers as part of a movement to a data-rich system with low tax-rates and minimum exemptions," Goyal told PTI. She was responding to a query on whether agriculture income should be taxed in India. Asked if coalition governments or single-party regimes produced better economic growth rates, the eminent economist said growth rates depend on many things, but in judging a government it is also necessary to see what growth rate they inherited and what they left the country with. "Coalitio

IBC needs further changes for resolution of biz conglomerates: RBI Dy Guv

Swaminathan J, deputy governor, RBI said that very often business conglomerates have intricate corporate structure with inter-connected related-party relationships that add to the complexity

CPI inflation to average 4.5% in FY25, growth to top 7%: RBI Governor

Observing that headline inflation substantially eased from the elevated level seen in the summer of 2022, Das said price momentum was easing across core goods and services

SBI Chairman Dinesh Khara backs move to curb 'unhealthy' loan growth

Meanwhile, SBI is evaluating if it needs more capital, Khara said. It's exploring raising capital through additional Tier-1 bonds after recently issuing Tier II bonds, he said

India's growth prospects firm, banking sector recovered well: Das at Davos

India's growth prospects are very good, and the country's banking sector has seen a remarkable recovery, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Tuesday. Speaking at a session here, Das said there is a lot of international confidence in India and the macroeconomic and financial sector stability that the country offers. "...I think we need to really look back at the business opportunity in India. Because this is the right time to build into the Indian ecosystem," he said and emphasised that the country's growth prospects are very good on account of the structural reforms that have taken place in recent years. Despite various shocks and crises, he said the Indian banking sector has seen a remarkable recovery. "The Indian banking sector is perhaps at one of its best in recent years... the financial sector is very stable... the external sector is also stable notwithstanding that the global growth is slowing down...India's services sector is growing," he said. Whil

Lenders retain AIF holdings even as Reserve Bank of India deadline nears

Industry is awaiting certain relaxations or extensions based on their recommendations

RBI panel makes several suggestions on state government guarantees

A Reserve Bank working group has suggested that state governments should charge a minimum fee for guarantees extended by them on loans taken by their enterprises, local bodies, and cooperative institutions. Keeping in view the inherent risks associated with the guarantees extended by the state governments on their fiscal health and to the banking system, it was decided during the 32nd Conference of the State Finance Secretaries held in July 2022 to set up a Working Group, the RBI said in a statement on Tuesday. The Reserve Bank has released the 'Report of Working Group on State Government Guarantees' on its website. State governments are often required to sanction, and issue, on behalf of various state enterprises, cooperative institutions, urban local bodies, and other state-owned entities, guarantees in favour of their lenders which are generally commercial banks or other financial institutions. There is a specific ceiling of 0.5 per cent of GDP for additional guarantees to be ..

Federal Bank Q3 net up 25% at Rs 1,007 cr, to propose names for next CEO

Thrissur-based lender's asset quality slips, expects to recover slippages

Private capital expenditure to pick up in coming years: MPC member Varma

RBI Monetary Policy Committee (MPC) member Jayanth R Varma has said that capacity utilization has been slowly increasing and private capital expenditure would pick up in the coming years. Varma further noted that in the last couple of years, the government has shouldered the burden of investment, while private capital expenditure has been muted. "At the same time, capacity utilization has been slowly creeping up and it is approaching levels that prompt the private sector to undertake capital expenditure at least in some sectors," he told PTI. Moreover, Varma, a professor at the Indian Institute of Management, Ahmedabad said large public sector infrastructure investment of the recent years has the potential to crowd-in private sector investments. "On the whole, I am hopeful that private capital expenditure would pick-up in the coming years, and pick-up the baton from the public sector," he said. Asked whether India can escape the middle income trap, Varma said it is imperative that

Indian rupee can become a winner only if RBI loosens its grip on currency

"The Reserve Bank of India will let the rupee appreciate only gradually," said Dhiraj Nim, economist and forex strategist at Australia & New Zealand Banking Group

RBI releases draft norms for fintech self-regulatory organisations

The draft norms, which were released on Monday, said SRO-FTs should strive towards healthy and sustainable development of the fintech sector

RBI proposes tighter norms for deposit-taking housing finance companies

Deposit-taking HFCs told to maintain 15% liquid assets

Reserve Bank of India likely to withdraw relief to govt-owned NBFCs

Substantial time has elapsed since Government owned NBFCs were brought within the ambit of prudential regulations in May 2018

Revised norms on fair lending practice effective from April 1, says RBI

The revised fair lending practice, which prohibits banks and NBFCs from using penal charges on loan defaults as a revenue enhancement tool, will come into effect from April 1, the Reserve Bank said on Monday. Concerned over the practice of banks and non-banking financial companies (NBFCs) using penal interest as a revenue enhancement tool, the RBI on August 18 last year had modified norms, under which lenders would be able to levy only "reasonable" penal charges in case of default in repayment of loans. Banks, NBFCs, and other entities regulated by the RBI were given an extension of three months till April to implement the revised norms. In a set of frequently asked questions (FAQs), the RBI on Monday said that in the case of existing loans as well, the instructions shall come into effect from April 1, 2024, and the switchover to the new penal charges regime shall be ensured on the next review/ renewal date falling on or after April 1, 2024, but not later than June 30, 2024. On ...

RBI may shift policy stance to neutral by Jun, cut rates by Aug: Nomura

The Reserve Bank may shift the monetary policy stance to "neutral" by June and deliver rate cuts starting August this year, a Japanese brokerage said on Monday. Pointing out to softer core inflation 'or price rise in items excluding food and fuel' in the data released for December, Nomura said there is a need for the policy to pivot towards an easier regime after the extended pause. The brokerage reiterated its earlier view of rate cuts being expected from August onwards, and pegged the quantum of cuts at 1 percentage point. "We expect 1 per cent of rate cuts cumulatively starting August, with a change of stance to 'neutral' in Q2, with risks skewed towards earlier easing," its analysts said. The core inflation for December came at 3.8 per cent, the note said, adding that the annualized growth of super-core inflation has dipped below 3 per cent by its estimates which is a "positive surprise". For January, the headline inflation is likely to cool-off to about 5 per cent, while the