Page 6 - Rbi

RBI withdraws concentration-risk exemptions for govt-owned NBFCs

The revised framework mandates annual identification of Upper Layer NBFCs and brings government-owned entities under the same exposure norms as their regulatory peers

RBI asks banks to provide shadow reversal in 5 days for credit card frauds

The Reserve Bank on Wednesday said in case of complaints of fraudulent electronic banking transactions via a credit card, a bank should provide shadow reversal or provisional credit of the disputed amount within 5 days from the date of customer notification. The RBI has issued revised framework on limiting customer liability in digital transactions. A bank should design its systems and procedures to make customers feel safe about carrying out electronic banking transaction (EBT) and it should put in place appropriate systems and procedures to ensure safety and security of EBTs carried out by customers, the amended norms said. "A bank shall mandatorily send instant SMS alerts to its customers for all EBTs of value more than Rs 500. For EBTs of value up to Rs 500, a bank may decide to send instant SMS as per its internal policy but without any charge to the customer," the RBI said. These norms will come into effect from January 1, 2027. Also, the bank's communication systems, deploy

Premature to talk about rate hikes, says RBI Governor Sanjay Malhotra

Central bank chief says RBI is monitoring the inflation impact of higher crude oil prices, while highlighting India's stronger external position and resilient banking system

State lenders plan $2 bn overseas borrowing under RBI concessional route

Small Industries Development Bank of India is in talks with the International Finance Corp. to raise as much as $1 billion in five-year and seven-year tenors

Banking liquidity turns deficit after 3 months on tax outflows, cash drain

Advance tax payments and higher currency leakage pushed banking system liquidity into deficit, prompting the RBI to inject Rs 1.41 trillion through a VRR auction

Banks raise ₹1 trillion through CDs in June as deposit growth lags

Certificate of deposit issuances crossed Rs 1 trillion in the fortnight ended June 15 as banks sought funding amid a widening gap between credit and deposit growth

Building buffers: Forex inflows should be used to build up reserves

Falling crude prices and US-Iran talks have eased pressure on the rupee, but RBI may continue building forex buffers amid global and domestic uncertainties

Commercial banks can lend against FCNR(B) deposits, clarifies RBI

Central bank permits loans and standby letters of credit against FCNR(B) deposits under the swap facility, while leaving leverage decisions to lenders

FCNR (B) swap facility covers only principal, excludes interest: RBI

The Reserve Bank of India (RBI) on Tuesday said the swap facility for foreign currency non-resident deposits (FCNR) is a simple foreign exchange swap, but only covers the original principal amount, not the interest. The RBI also said banks are permitted to extend loans to the FCNR (B) account holders and mark a lien on such deposits, the central bank said in FAQs on Swap Facility for FCNR (B) deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowing. On June 8, the RBI introduced a special US dollar-rupee forex swap scheme to enable banks to mobilise fresh FCNR (B) deposits without hedging risk, a move aimed at attracting foreign capital. Banks have been permitted to offer higher returns on dollar deposits in an FCNR(B) Account with a tenure of three to five years. Foreign Currency Non-Resident (Bank) deposits help NRIs earn in foreign currency while protecting savings from rupee depreciation risk. "Reserve Bank of India will be providing a Forex Swap for the

RBI eases MSME onboarding on TReDS, allows guarantee cover for financiers

Central bank consolidates TReDS regulations, eases MSME access and permits financiers to obtain credit guarantee cover on platform exposures

RBI injects ₹1.41 trn liquidity in banking system via 7-day VRR auction

The Reserve Bank of India (RBI) on Tuesday injected Rs 1,41,171 crore transient liquidity into the banking system through a seven-day variable rate repo (VRR) auction. The funds were infused at a cut-off and weighted average rate of 5.26 per cent, according to the RBI's release. This was done after the liquidity in the banking system turned in to deficit of Rs 19,971.89 crore as on June 22, from a surplus of Rs 30,685.11 crore as on June 21. Experts attributed the tightening of liquidity to the outflows on account of goods and services tax (GST) payments from the banking system. The liquidity entering the deficit territory has put pressure on the overnight money market rates, with weighted average call money rate trading at 5.43 per cent, which is 0.18 per cent above the RBI's repo rate. Similarly, the tri-party repo (treps) were trading 0.05-0.07 per cent over the repo rate. In the last few days, the central bank has been infusing transient liquidity into the banking system as i

Weak monsoon may cloud growth-inflation dynamics: RBI's June Bulletin

Recent policy measures likely to push up sovereign debt demand

RBI defended rupee with $8.94 billion net dollar sale in April: Bulletin

The central bank remained a net seller in the spot forex market as the rupee came under pressure from geopolitical tensions and persistent foreign outflows

Reserve Bank of India should fix DTA-to-SEZ forex payment anomaly

TNC Rajagopalan answers readers' SME queries related to GST, export and import matters

Outward remittances under RBI's LRS down 7.85% in April 2026: Bulletin

Decline in international travel-related spending amid geopolitical uncertainty weighed on outward remittances under the RBI's Liberalised Remittance Scheme

Banks must tap digital rails to deepen MSME credit access: RBI Governor

Sanjay Malhotra says financial institutions should leverage ULI, Account Aggregator and other digital platforms to build a more inclusive MSME credit ecosystem

Alternatives to intervention: The case for freer markets, fewer distortions

Stepping in may address immediate pressures, but fewer distortions and freer markets could deliver more durable outcomes

Inflows into FCNR(B) deposits down 39% in April 2026, shows RBI data

While FCNR(B) deposit inflows fell sharply from a year earlier, overall inflows into non-resident deposit schemes edged up, supported by growth in NRE deposits

RBI's gold stock remains unchanged for the eighth consecutive week

The stock had increased from 880.34 metric tonnes in the week ended March 20 to 880.52 metric tonnes in the week ended April 3. The physical stock of gold has remained unchanged since then

RBI net sold $8.944 billion in spot market in April, says bulletin

The Reserve Bank of India (RBI) net sold USD 8.944 billion in the spot currency market in April, according to the central bank's monthly bulletin released on Monday. This is the second consecutive month of selling by the central bank amid pressure on the Indian rupee. In March, the RBI had sold USD 9.758 billion in the spot currency market. On a gross basis, the central bank purchased USD 16.225 billion in April, and sold USD 25.169 billion, as per the bulletin. The Indian rupee (INR) remained under pressure in April and May amid protracted geopolitical tensions and continued foreign portfolio outflows. However, the currency recovered in June 2026, owing to capital flow measures, easing geopolitical tensions and falling crude oil prices, according to the bulletin. During 2026-27 so far (up to June 19), INR appreciated by 0.2 per cent over end-March 2026. On Monday, the rupee closed at 94.63 against the US dollar, down by 30 paise. The rupee closed the last fiscal at 94.84 against