Page 5 - Rbi

RBI's August 31 deadline nears: Private banks step up FCNR(B) push

Banks are raising interest rates, using website countdown timers, fast-tracking deposit commitments and tapping overseas bond markets as the RBI deadline approaches

More cash, less usage pose challenge for RBI: Shirish Chandra Murmu

Robust currency demand amid rising digital payments muddles projection

Rupee, bond bets retreat after RBI's dollar swap window ends early

The estimates are being reworked after the central bank Friday decided to end a program attracting dollars from overseas Indians a month earlier than planned, having garnered more than $50 billion

India needs guardrails for shadow-bank flexi loans, not blanket bans

The RBI's proposal to restrict flexible repayment loans by nonbanks could curb risks of bad-debt evergreening, but may also hurt self-employed workers and small businesses that rely on such credit

Rupee weakens, bond yields harden as RBI shuts FCNR(B) swap window early

The rupee settled at 95.61 per dollar, while the benchmark 10-year government bond yield rose to 6.81 per cent as the RBI's move raised concerns over dollar inflows

Axis Bank raises FCNR(B) rate to 6.4%, highest among large banks

The lender raised the rate on FCNR(B) deposits above $1 million for a three-to-five-year tenor as banks step up mobilisation after the RBI shortened its swap window

The impossible trinity, revisited

Large interventions across markets call for greater coherence in the RBI's policy framework

Targeted flows, not swap cost, drove early FCNR (B) closure: SBI Research

The cost of FCNR (B) swaps is unlikely to have been a constraining factor for the Reserve Bank of India's (RBI) decision to close the special swap facility ahead of schedule, according to a report. SBI Research, in its report Ecowrap, estimated that the cumulative hedging cost could amount to around USD 10.5 billion over five years. On August 14, the central bank decided to close the window for fresh FCNR(B) deposits under the special swap facility on August 31, one month ahead of the scheduled September 30 closure. SBI Research said the potential FCNR(B) mobilisation of USD 65-70 billion, combined with an average USD/INR hedging cost of around 3 per cent per annum, implies an annual notional hedging cost of about USD 2.1 billion on a USD 70 billion corpus. If this cost were to remain at 3 per cent over the five-year maturity of the deposits, the cumulative cost would amount to around 15 per cent of the corpus, or USD 10.5 billion, the report said. With current reserves at around

FIDC to flag NBFC concerns over RBI's proposed revolving credit ban

The industry body is collating views from NBFCs before submitting feedback to the RBI, with lenders warning that the proposed restriction could favour banks

Bond yields surge after RBI announces early dollar deposit window closure

The move, announced late Friday, surprised traders after Reserve Bank of India Governor Sanjay Malhotra had ruled out an early closure as recently as the Aug. 5 policy meeting

1991 reforms demonstrated confidence that we could compete: Rakesh Mohan

Rakesh Mohan talks about the trajectory of India's economic development, why the reforms could be pulled off as quickly as they were, and what India can do now to boost manufacturing

UCBs: Past imperfect, present evolving as RBI revives on-tap licensing

The decision to reintroduce on-tap licensing for urban cooperative banks signals the regulator's growing confidence that governance reforms have created sufficient safeguards

Puzzling policy: Premature ending of FCNR (B) swap raises questions

From the turn of events, it would appear that the scheme was not adequately thought through

RBI sets new loan recovery rules: What changes for borrowers in 2027

RBI's binding rules on recovery will restrict contact hours and recovery-agent conduct, while safeguarding against wrongful device locking, but third-party agents could pose challenges.

At 15.4%, bank deposit growth highest since December 2016: RBI data

The current account deficit widened to $6.2 billion in June from a $1.2 billion surplus in June 2025, as the merchandise trade deficit increased to $30.2 billion from $19.2 billion

Inflows over $52 bn, RBI opts to shut FCNR(B) tap ahead of schedule

Forex booster gambit to end Aug 31, a month ahead of schedule

India's BoP deficit widens to $8.1 billion in Q1FY27 on capital outflows

Q1 current account deficit at $3.1 billion; $6.2 billion in June

RBI slaps penalty on IndusInd Bank, three NBFCs for regulatory lapses

The RBI imposed a Rs 59.20 lakh penalty on IndusInd Bank and also penalised Fusion Finance, Northern Arc Capital and Muthoot MCred for regulatory lapses

Bank deposit growth hits highest since December 2016 at 15.4%: RBI data

Aggregate deposits rose by Rs 6.61 trillion in the fortnight ended July 31, while bank credit growth accelerated to 19.3 per cent, its highest since May 2024

ICICI Bank joins Indian banks chasing dollar loans as demand swells

The nation's second-largest private lender first signed a loan agreement with Bank of America Corp. for about $1 billion