Page 24 - Rbi

RBI, money creation, and govt finances: Why non-bank debt will matter ahead

Large transfers and bond buys by the Reserve Bank of India have supported fiscal maths and liquidity; sustaining this when inflation or capital flows shift may prove harder

New CPI series will reflect consumption patterns better: RBI Governor

Reserve Bank of India Governor Sanjay Malhotra on Monday said the new CPI inflation series based on 2024 prices will better reflect Indian households' consumption patterns and reduce volatility. In both ways, it will help in better CPI estimation, he said at a media briefing, following the post-Budget meeting of the RBI Central Board of Directors with Finance Minister Nirmala Sitharaman here. Data released on February 12 showed retail inflation was 2.75 per cent in January, according to the new CPI series, which uses 2024 as the base year. The Ministry of Statistics and Programme Implementation released the new CPI series, which widens coverage and tracks prices of 358 items, sharply up from 299 items in the old series. Headline inflation in January, the first month based on the new series, was above the lower end of the RBI's tolerance band of 2-6 per cent, a first since June 2025. It averaged 2.2 per cent in 2025, according to both the new and old series. "If the whole methodol

RBI's new lending curbs on bank funding seen squeezing trading firms

The RBI's initiative, due to take effect from April 1, follows a series of steps taken by the government and market regulator to cool the explosive growth in the country's equity derivatives market

RBI builds secured data centre away from potential threats, seismic risk

The Reserve Bank of India has built a high-security data centre in Odisha, strategically located well away from potential cross-border threat zones and high seismic-risk regions, as part of efforts to safeguard critical financial infrastructure and strengthen continuity of core systems. The greenfield facility in Bhubaneswar is designed to house core computing systems supporting the central bank's currency management, payment and settlement operations, and regulatory data functions, analysts and officials said. "When RBI began work on its 18.55-acre campus at Info Valley-II, Khordha in 2023, few questioned the location. Beyond logistical and operational considerations, strategic factors are likely to have weighed on decision-makers," an analyst tracking the sector said. The Odisha site, he added, lies well away from India's western and northern borders, reducing exposure to potential cross-border missile or drone threats. It also falls outside the country's highest seismic risk zone

MPC minutes: Members stay growth-supportive amid benign inflation outlook

RBI MPC members signalled support for growth as minutes from the February meeting showed confidence in a benign inflation outlook, with most seeing room to sustain an accommodative policy bias

Near-term outlook favourable to sustain high growth, says RBI report

RBI's monthly report says India's near-term outlook remains strong, supported by benign inflation, fiscal consolidation and renewed FPI interest after trade deals with the EU and the US

Rupee, govt bonds weaken on muted global risk sentiment; FX hits record

The rupee slipped amid muted global risk appetite and firm US yields, though RBI intervention helped cap losses, while forex reserves hit a new record of $725.7 billion

DFS secy urges banks to lower cost of borrowing for small-ticket biz loans

DFS Secretary M Nagaraju asked banks to lower borrowing costs for small-ticket business loans and expand credit, stressing PSBs' strong capital position and upcoming digital lending portals

RBI net sold $10 bn in December, slightly higher than November: Bulletin

RBI net sold $10 billion in December, with short dollar positions in the forward market easing to $62.35 billion, even as the rupee's REER slipped to 94.76, the monthly bulletin showed

Net FDI stays negative for fourth month as repatriations rise sharply

Net FDI remained in negative territory for the fourth consecutive month in December as repatriations rose sharply, even as gross inflows strengthened across key sectors and source countries

LRS outward remittances fall 4.1% in Apr-Dec FY26 on lower travel spend

Outward remittances under RBI's LRS fell 4.12% YoY in Apr-Dec FY26 to $21.36 bn as travel and education spends moderated, though remittances for investments and property purchases surged

NRI deposit flows fall 16% to $11.2 bn in Apr-Dec 2025, shows RBI data

Inflows into NRI deposits fell nearly 16% in Apr-Dec 2025 to $11.2 bn, led by a sharp drop in FCNR(B) flows, though outstandings across NRE and NRO accounts continued to rise

Current policy rate appropriate amid buoyant economic growth: RBI Guv

Reserve Bank Governor Sanjay Malhotra voted for the status quo in the key interest rate earlier this month, saying the current policy rate was appropriate, given the buoyant economic growth and benign inflation, according to the MPC meeting minutes released on Friday. The Reserve Bank kept the short-term lending rate (repo) unchanged at 5.25 per cent after the Monetary Policy Committee (MPC) meeting held from February 4 to 6. The governor and the other five members of the MPC had voted to keep the repo rate unchanged. According to the minutes, Malhotra argued that India's macroeconomic fundamentals, over the medium-term, including the external sector, remain healthy and robust. "Given the present state of the economy and its outlook -- buoyant growth and benign inflation -- I feel the current policy rate is appropriate. Accordingly, I vote for continuation of the policy repo rate at 5.25 per cent and retain the neutral stance," he said. Deputy Governor Poonam Gupta said that, ...

FTAs to play significant role in coming years by improving mkt access: RBI

The completion of the India-EU free trade negotiations and the interim trade pact between India and the US are likely to play a significant role in the coming years by improving market access and enhancing export competitiveness, the RBI's bulletin issued on Friday said. An article on the 'State of the Economy' published in the February bulletin also said that the near-term economic outlook for the economy remains favourable and is well-positioned to sustain its high growth momentum, driven by consumption, investment, and productivity-enhancing reforms. The completion of the India-EU free trade negotiations by the end of January and the subsequent interim trade agreement between India and the US are likely to play a significant role in the coming years by improving market access, enhancing export competitiveness, and integrating Indian firms more deeply into global value chains, it said. "In the immediate term, it has led to a change in investor sentiments. Foreign portfolio ...

RBI net sold $10 billion in December to curb rupee volatility: Bulletin

The Indian rupee fell to its then-record low of 91.0750 on December 16, pressured by worries over a trade stalemate with the US and persistent foreign outflows

Distributor commission revamp could raise policyholders' returns: Experts

Industry executives say revising life insurance distributor commissions could improve policyholder returns by lowering acquisition and operating costs, even if premiums remain unchanged

Pvt banks to outperform PSBs post H1FY27: PL Capital; bets on SBI, ICICI Bk

The brokerage expects PSBs to continue growing well until the first half of FY27 (H1FY27), but said private sector banks (PVBs) could outperform thereafter

RBI draft on INR derivatives may push more banks to expand in GIFT City

RBI's proposal restricting access to rupee NDDCs to banks with IFSC units could deepen lender presence in GIFT City, while offshore ETP rules signal calibrated liberalisation

Draft norms for recovery agents seek higher accountability for banks

The earlier defence that misconduct was the agent's independent act may not work in the future

Brokers seek six-month pause on RBI curbs on bank lending, document shows

A six-month pause would give market ‌participants time ​to submit feedback, ​conduct impact assessments and engage in constructive consultations, according to the letter