Page 28 - Rbi

MFIs raise loan-waiver concerns with RBI, finance ministry ahead of polls

Bihar, Assam, Kerala, Tamil Nadu and West Bengal - which go to polls between the latter half of 2025 and the early part of 2026 - account for 42 per cent of microfinance institutions' (MFIs) portfolio

RBI floats discussion paper to review inflation targeting framework

RBI has launched a discussion paper to review its inflation targeting framework, focusing on the core vs headline inflation debate, the 4% target, and tolerance band before next review in March 2026

Future policy actions dependent on growth-inflation dynamics: Nagesh Kumar

Hopefully, the penal tariffs for Russian oil purchase will be withdrawn, and the ongoing bilateral trade negotiations will succeed in eventually bringing down the US tariffs on Indian exports to more

'If 50% tariffs continue, near-term adverse impact on growth very likely'

The importance of domestic savings is likely to increase, given the uncertainties on our external balance

RBI receives ₹31,025 cr bids at VRR auction against ₹50,000 cr notified

RBI's overnight VRR auction received Rs 31,025 crore bids against Rs 50,000 crore notified as surplus liquidity stayed high despite upcoming tax outflows

India's GDP growth likely at 6.3% in FY26, below RBI estimates: SBI report

India's economic growth is expected to be lower at 6.3 per cent this fiscal compared to the RBI's projection of 6.5 per cent, a SBI Research Report said on Thursday. The report pegged the first quarter GDP estimate at around 6.8-7 per cent, mainly due to muted private capex. India's economy is likely to grow at 6.3-6.8 per cent in 2025-26 on the back of strong macroeconomic fundamentals, though strategic and prudent policy management will be required to navigate global headwinds, as per the latest Economic Survey. The country witnessed a muted growth at 6.5 per cent in 2024-25 (April 2024 to March 2025), down from 9.2 per cent in the previous year. Sharing the quarterly growth estimates, the report said the Indian economy is expected to grow at 6.5 per cent in the second quarter and at a lower rate of 6.3 per cent in the next quarter. In the fourth quarter of the current financial year, the GDP growth will be lowest at 6.1 per cent, it added. Compared to the SBI report, the Reser

RBI to conduct overnight VRR auction to infuse Rs 50,000 cr amid GST flows

RBI will conduct an overnight variable rate repo auction to infuse Rs 50,000 crore into the banking system, easing tightness from GST outflows and maturing VRRR amounts

RBI moots revision in capital charge norms for counterparty credit risks

The revision pertaining to CCR is proposed to largely align with the Basel Committee on Banking Supervision (BCBS) guidelines, reflecting the development and depth of the respective market segments

US tariffs key drag on growth, flags benign inflation outlook: MPC

The central bank needs to remain watchful as the uncertainties of tariffs are still evolving, said RBI Governor Sanjay Malhotra while voting for a status quo on key interest rate earlier this month. The Reserve Bank of India on Wednesday released Minutes of the Monetary Policy Committee (MPC) meeting held during August 4-6. Along with the RBI Governor, all five other members of the MPC had voted for retaining the short-term lending rate (repo) at 5.5 per cent. "Overall, our economy presents a picture of strength, stability, and opportunity. India's strong fundamentals, growth-inducing policies, and forward-looking economic strategy clearly place it in a strong position," the Governor said as per the minutes. While growth has remained steady, inflation outcomes have been far more benign on account of higher food price moderation, he said. "Although we are likely to see inflation undershooting the target in the near term, with a likelihood of monthly numbers even crossing the lower

Mutual fund overseas assets fall 5.6% to $8.3 billion in FY25, says RBI

Indian mutual funds' overseas assets dropped 5.6 per cent to USD 8.3 billion in FY25, the Reserve Bank of India (RBI) said on Monday. At the end of FY24, Indian mutual funds held assets of over USD 8.81 billion in foreign assets, as per the central bank's annual survey of foreign assets and liabilities of mutual funds. "Overseas assets of MFs declined 5.6 per cent and stood at USD 8.3 billion in March 2025, due to lower holdings of foreign equity securities," the RBI said. There was a 3.9 per cent drop in equity securities held abroad by MFs at market value in the US at Rs 44,500 crore, while the same in Ireland and Taiwan also witnessed declines. Over 95 per cent of the overseas equity investment of the MFs were concentrated in the US, Luxembourg, and Ireland, the RBI said. It can be noted that FY25 witnessed volatilities in the global markets because of continuing geopolitical tensions amid tensions between Ukraine-Russia and in Israel, while change of guard in the US and the ne

23% of 560 million PM Jan Dhan accounts remain inactive, says govt

As many as 23 per cent of the total 56.04 crore Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts are inoperative, Minister of State for Finance Pankaj Chaudhary said on Monday. Out of 56.03 crore PMJDY accounts at the end of July 31, 2025, 13.04 crore such accounts are inoperative, he said in a written reply in the Lok Sabha. Uttar Pradesh has the highest number of inoperative Jan Dhan accounts of 2.75 crore, followed by Bihar at 1.39 crore and Madhya Pradesh at 1.07 crore, he said. As per the Reserve Bank of India (RBI) guidelines dated February 18, 2009, a savings account should be treated as inoperative/dormant if there are no transactions in the account for over a period of two years. The government has taken various steps to ensure smooth functioning of PMJDY accounts, including Direct Benefit Transfer (DBT). These benefits are transferred even to the inactive accounts. Banks inform account holders in writing through letters or email or SMS about the accounts which are to beco

Life insurers bet on participating products to diversify portfolio mix

Many players in the industry have rebalanced their portfolios, shifting towards par products after a period of being ULIP-heavy and relying on non-par products to drive topline and margins

Muthoot Finance to inject ₹200 crore into home loan arm for growth

Muthoot Finance plans to invest Rs 200 crore in its housing finance subsidiary, Muthoot Homefin, for growth, as the home loan arm's assets under management rise 41% in Q1 FY26

A revolving door for leadership in India's financial sector regulators

With the financial sector maturing, the door to regulatory agencies needs to be opened to a more diverse talent pool

Banks roll over ₹1.82 trn at RBI's 8-day VRRR auction to absorb liquidity

RBI accepts Rs 1.82 trillion at 8-day VRRR auction as banks roll over maturing funds from earlier operations amid surplus system liquidity

WPI inflation dips for 2nd month, hits 25-month low of -0.58% in July

The negative rate of inflation in July is primarily due to a decrease in prices of food articles, mineral oils, crude petroleum and natural gas, manufacture of basic metals

Paytm gets RBI nod for payment aggregator licence; what's the road ahead? | Paytm stock

The Reserve Bank of India has granted in-principle approval to Paytm Payments Services to operate as an online payment aggregator, ending a nearly three-year regulatory freeze.

RBI's AI panel calls for balancing innovation with risk mitigation

Seven sutras outlined for fair, transparent, and safe AI adoption

Banks to clear cheques within few hours from October 4, says RBI

The RBI will introduce a new mechanism from October 4 for clearance of cheques within hours of being presented to banks, reducing the current time period of up to two working days. Cheques will be scanned, presented, and passed in a few hours and on a continuous basis during business hours. The clearing cycle will be reduced from the present T+1 days to a few hours. Cheque Truncation System (CTS) currently processes cheques with a clearing cycle of up to two working days. To improve the efficiency of cheque clearing and reduce settlement risk for participants, and to enhance customer experience, the RBI has decided to transition CTS from the current approach of batch processing to continuous clearing with 'on-realisation-settlement'. The Reserve Bank of India (RBI) has issued a circular for introduction of Continuous Clearing and Settlement on Realisation in CTS. "It has been decided to transition CTS to continuous clearing and settlement on realisation in two phases. Phase 1 shal

Monetary Policy Committee likely to get a new member before October meet

Indranil Bhattacharyya will take over as executive director in charge of the monetary policy department as Rajiv Ranjan is set to retire