Page 153 - Rbi

RBI stays vigilant, committed to early, decisive action: Governor Das

He stated that the recent implementation of macroprudential measures, aimed specifically at tempering lenders' enthusiasm in certain segments of retail loans

Banks' capital adequacy ratio to fall 71 bps on higher risk weight: RBI

Higher risk weight to dampen growth exuberance, improve credit quality

Sebi tweaks norms for online bond platform providers to boost ease of biz

Capital markets regulator Sebi on Thursday tweaked the regulatory framework for Online Bond Platform Providers (OBPPs) to enhance the ease of doing business. This came after Sebi received representations from stock exchanges and market participants, including online bond platforms. "The proposed modifications shall aid in ease of doing business for OBPPs," the Securities and Exchange Board of India (Sebi) said in a circular. Under this, the regulator has modified the framework pertaining to the issue of order receipt, deal sheet and quote receipt in case of products, securities or services. On placement of an order by an investor, Sebi said that OBPPs will have to issue without delay an electronic order receipt which includes the date and time of the order, details of counter-parties involved, quantity and amount proposed to be transacted. After the execution of the order, the entity will issue a deal sheet to the investor for all transactions, stating all the relevant information

SBI, HDFC Bank will need to maintain higher capital from FY25, says RBI

The additional Common Equity Tier 1 (CET1) requirement will be in addition to the capital conservation buffer

Bad assets of banks decline multi-year low to 0.8% in Sept: RBI report

The Reserve Bank on Thursday said net non-performing assets ratio of banks declined to a multi-year low of 0.8 per cent at the end of September 2023 and the country's domestic financial system remains resilient. "The resilience of the non-banking financial companies (NBFCs) sector improved with CRAR at 27.6 per cent, GNPA ratio at 4.6 per cent and return on assets (RoA) at 2.9 per cent, respectively, in September 2023," said the RBI's Financial Stability Report (FSR). The gross non-performing assets (GNPA) ratio of banks also declined to a multi-year low of 3.2 per cent, it said. The report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the Indian financial system. It further said that the capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of scheduled commercial banks (SCBS) stood at 16.8 per cent and 13.7 per cent, respective

Rupee ends higher, far forward premiums climb to over 2-month high

The rupee closed at 83.1650 to the U.S. dollar, up from 83.3450 in the previous session. The currency posted its biggest rise in a single rise in nearly two weeks

India likely to remain fastest growing major economy in 2024: Assocham

India is likely to remain the fastest-growing major economy in the world in 2024 on the back of strong consumer demand leading to a pick up in investment across sectors such as construction, hospitality and infrastructure including railways and aviation, Assocham said on Thursday. India retained the tag of the world's fastest-growing major economy, with its GDP expanding by a faster-than-expected rate of 7.6 per cent in the July-September quarter on booster shots from government spending and manufacturing. The country's Gross domestic product (GDP) growth of 7.6 per cent beat most estimates, including 6.5 per cent projected by the Reserve Bank of India (RBI). The growth compares to 6.2 per cent in the same quarter last year and 7.8 per cent expansion in the preceding quarter, official data released on Thursday showed. India's GDP growth beat China's 4.9 per cent rise in July-September, while the Western economies are getting crushed under high-interest rates and energy ...

LIC in discussion with RBI for access to debt data via CRILIC: Mohanty

Life Insurance Corporation (LIC) chairman Siddhartha Mohanty on Thursday said the state-owned insurer is "in active discussion" with the Reserve Bank of India and confident of getting access to central bank's debt database CRILIC. "It's an irony that despite being the largest debt investor, we don't have access to debt or the national debt database CRILIC. We are in active discussion with the regulator for the same and are confident of getting that access," Mohanty said at an economic conclave organised by SBI here. Central Repository of Information on Large Credits (CRILICS) is an RBI-run database of credit exposures of various lenders including those towards non-performing borrowers. Most of LIC's debt investments are in central as well as state governments' debt securities. The LIC chairman said that not having access to CRILIC data is a risk for the insurer as its liabilities are long-term while assets are short-term. The lack of access to CRILICS tilts the balance negatively

RBI flags concentration risk among govt-NBFCs, all tied to power sector

The interconnectedness between NBFCs and banks in India has seen a rise due to NBFC's increased borrowings from banks, according to the report

Further strengthen balance sheets even if financials remain strong: RBI

Gross NPAs lowest in a decade; tighter norms on unsecured loans for stability

Banks bid 3.2 times against notified amount of Rs 50,000 cr at VRR auction

Market participants speculate that this might be the last VRR auction conducted by the central bank as the liquidity condition is expected to improve in a few days due to government spending

RBI flags contagion risks on SFBs for high reliance on co-op banks deposits

"Lack of asset diversification coupled with geographical concentration"

Bomb blast threat to RBI: Mumbai police apprehend three men from Gujarat

The Mumbai police's crime branch on Wednesday apprehended three men from Vadodara in Gujarat in connection with a threat mail to the Reserve Bank of India (RBI) about bomb blasts at multiple locations here, an official said. During the probe conducted so far, the police found that the accused persons sent the threat mail to play mischief, he said. "The threat email was sent to the RBI here mentioning that 11 bombs were planted at different locations in the city, including the RBI's new office building, HDFC House in Churchgate, and ICICI Tower in Bandra Kurla Complex," the official said. A first information report (FIR) was registered at Mata Ramabai Ambedkar (MRA) Marg police Station in South Mumbai against an unidentified person, and the crime branch of the Mumbai police was roped to conduct a probe, he said. Based on the technical inputs, the crime branch team apprehended Mohammed Arshil Mohammed Iqbal Topala (27) from Vadodara, he said. Topala had created the email id to send

Banks' asset quality improves to decadal high at end-Sept: RBI report

The central bank said the banking system and the non-banking financial companies (NBFCs) remain resilient, backed by high capital ratios, improved asset quality and robust earnings growth

RBI asks NBFCs to broad-base fundraising, reduce dependence on banks

The Reserve Bank on Wednesday asked non-bank finance companies to broad-base their fundraising to limit reliance on banks as it called for strengthening balance sheets and guarding against frauds and data breaches. According to the report 'Trend and Progress of Banking in India 2022-23' released by the RBI, the Indian banking system and NBFCs remain sound and resilient, backed by high capital ratios, strengthening asset quality and robust earnings growth. The consolidated balance sheet of scheduled commercial banks (SCBs) in 2022-23 expanded by 12.2 per cent, driven by credit to retail and services sectors. Deposit growth also picked up, although it trailed credit growth, it said. Looking ahead, it said, "Given the increasing interconnectedness between banks and NBFCs, the latter should focus on broadbasing their funding sources and reduce overdependence on bank funding. Banks and non-banks both, need to bring in greater empathy in their customer services". The concerted efforts ar

Reserve Bank of India gives nod to reverse merger of IDFC-IDFC First Bank

Reserve Bank of India has given its nod for the reverse merger of IDFC Ltd with its banking subsidiary IDFC First Bank. The boards of IDFC First Bank and IDFC have approved the reverse merger in July. "....IDFC Limited and IDFC Financial Holding Company (IDFC FHCL) have received letters dated December 26, 2023 from RBI whereby RBI has conveyed its 'No Objection' to the composite scheme of amalgamation, subject to compliance with the terms specified therein," IDFC Ltd said in a regulatory filing. As part of the composite scheme of amalgamation, IDFC FHCL would first merge with IDFC and then IDFC into IDFC First Bank Ltd. The scheme remains subject to other statutory and regulatory approvals, including from the National Company Law Tribunal and the respective shareholders and creditors of the companies involved under the applicable laws, it said. Under the proposed reverse merger scheme, an IDFC shareholder will get 155 shares for every 100 shares she/he holds in the bank. Both stoc

RBI, Mumbai banks receive bomb threat demanding resignation of FM

Mumbai Police are investigating an email claiming bombs planted have been at 11 locations, calls for resignation of RBI governor and finance minister

2023 The India Story: When rupee gained currency against US dollar

The year rupee remained the most stable against the dollar in nearly three decades

Chatroom: Extension for exports realisation, RBI should review instructions

You cannot amend the shipping bills and so, you may explain the error to the bank and seek write-off or closure of the entries

RBI proposes framework to rationalise money changers' authorisation

In order to reduce the regulatory burden and enhance the ease of doing business, it is proposed to renew an existing authorisation as an AD Category-II on a perpetual basis