Page 6 - Rbi

Central bank may bring clarity on Tata Sons listing amid recast talk

The RBI could soon release a communique mandating an early listing of Tata Sons to remove any ambiguity in its earlier missive

How reforms in banking shifted from boosting competition to building scale

On July 21, 1993, RBI provided in-principle approval to HDFC and Unit Trust of India, or UTI (its lender later became Axis Bank), for starting banking companies

RBI OMOs reduce liquidity to ₹6 trn; GST outflows help absorb surplus

The increase in currency in circulation and the rise in reserve requirements as the deposit base expands could absorb a part of the surplus over the coming months

RBI tightens trading book rule, allows exclusion of structural FX positions

The new framework, effective April 2027, also tightens investment reclassification rules and revises capital treatment for debt funds and other instruments.

RBI swap window draws $143.5 billion; FCNR(B) deposits at $133 billion

Inflows through RBI's concessional forex swap window topped $143.5 billion by September 18, with FCNR(B) deposits accounting for the bulk at nearly $133 billion.

RBI sells ₹25K cr G-Secs in second OMO tranche to drain surplus liquidity

The Reserve Bank of India (RBI) on Monday accepted bids worth Rs 25,000 crore in the second tranche of its open market operation (OMO) sale of government securities, as it stepped up efforts to absorb surplus liquidity from the banking system. The RBI accepted Rs 11,512 crore of the 6.10 per cent GS 2031, Rs 8,758 crore of the 7.95 per cent GS 2032, Rs 2,300 crore of the 6.75 per cent GS 2029, Rs 2,250 crore of the 7.17 per cent GS 2030, and Rs 180 crore of the 7.17 per cent GS 2028, according to the release. However, the central bank did not accept any bids for the 8.28 per cent GS 2027, the release said. The OMO sale comes amid a large liquidity surplus in the banking system. Liquidity surplus was estimated around Rs 6.05 lakh crore as of September 20, according to the RBI data. Under an OMO sale, banks and other investors pay the RBI for the government securities, thereby draining rupee liquidity from the banking system. The central bank had announced OMO sales totalling Rs 1 la

PSBs see rate repricing as margin reprieve amid RBI rate hike expectations

High exposure to repo-linked RAM loans could help public sector banks reprice assets faster than deposits if the RBI raises rates

RBI governance reset puts spotlight on bank chairs, independent directors

Starting October 1, 2026, onboarding of independent directors, their accountability and remuneration may need a relook as RBI seeks more focused board engagement on strategy, risk and governance

Tata Trusts calls Chandra's reappointment 'void', questions casting vote

Tata Trusts says the September 17 resolution failed the Article 121 test as its two nominees split 1-1

India's software services exports rise 8.2% to $221.4 bn in FY26: RBI data

India's software services exports rose 8.2 per cent in 2025-26, led by computer services, while the US remained the top destination with a 54.1 per cent share of exports

RBI orders removal of Maharashtra minister, 7 others from Latur DCC Bank

The Reserve Bank of India (RBI) has ordered removal of Maharashtra Cooperation minister Babasaheb Patil and seven other directors of the Latur District Central Cooperative Bank for exceeding the 10-year tenure limit. Patil belongs to the Nationalist Congress Party (NCP) led by Deputy Chief Minister Sunetra Pawar. The central bank's order followed directions passed by the Aurangabad bench of the Bombay High Court in response to a petition filed by bank member Satish Sheshrao Jadhav. RBI Assistant General Manager Kapil Goswami issued the order on Friday. Directors of District Central Cooperative Banks (DCCBs/Central Cooperative Banks) have a maximum tenure cap of ten years under the Banking Regulation Act, 1949, as amended by the Banking Laws (Amendment) Act, 2025. Earlier, State Cooperation Department Deputy Secretary Sudhir Amrite had written to the Cooperation Commissioner, Pune, seeking action against directors of district central cooperative banks who had completed more than 10

Asset restructuring among Tata Sons' options to avoid a public listing

One possible route would be to reduce Tata Sons' relevant asset base below the ₹1 trillion threshold for classification as an upper-layer NBFC, according to a former regulatory official

FCNR(B) may generate ₹5 trn notional profit for banks over 5 years: SBI

SBI Research estimates $127 billion in FCNR(B) deposits could support ₹25 trillion of additional bank credit and generate ₹5 trillion in notional profit over five years

India's foreign exchange reserves drop by $4.9 billion from record high

The decline came after reserves posted their biggest-ever weekly increase of $44.9 billion, driven by strong foreign currency inflows under the RBI's swap window

MDR unlikely to trigger shift back to cash: RBI Deputy Governor S C Murmu

RBI Deputy Governor S C Murmu says MDR will help the payments ecosystem recover costs, while cash continues to retain a significant role as a store of value

India's outbound FDI rises 23.3% to $3.8 billion in August: RBI data

Outbound equity FDI commitments rose to $1.14 billion in August, while guarantees for overseas units increased to $2.23 billion from $1.2 billion a year earlier

UPI MDR apprehension unlikely to spur higher cash usage: RBI DG Murmu

Concerns that introducing a Merchant Discount Rate (MDR) would spur a surge in cash transactions are unlikely to materialise, RBI Deputy Governor Shirish Chandra Murmu said on Friday, adding that it was only an "initial apprehension". From October 15, a 0.4 per cent MDR will apply to person-to-merchant UPI payments above Rs 2,000. The charge will be paid by merchants, not consumers, and will be capped at Rs 300 for transactions of Rs 75,000 or more. Payments between individuals, as well as the vast majority of everyday merchant payments, will remain free. "I don't think that apprehension will come true. It will be just initial apprehension," Murmu said while addressing a financial market conclave hosted here by BCC&I on whether more cash would be used because of MDR. "Because it is a major shift in terms of how basically you are recovering the cost. So, that's why it may be apprehension only. I don't think this will have any impact, unlike some voices about whether cash will go up

RBI absorbs ₹2.23 trillion via variable rate reverse repo auction

The Reserve Bank of India (RBI) on Friday absorbed Rs 2.23 lakh crore from the banking system amid surplus liquidity by conducting a variable rate reverse repo (VRRR) auction. The central bank received bids worth Rs 2,22,629 crore, which it accepted fully, for a notified amount of Rs 2.25 lakh crore. The amount was accepted at a weighted average rate of 5.24 per cent, the RBI said in a release. The RBI has been conducting VRRR auctions since last month in order to absorb excess liquidity from the banking system and align the overnight money market rates to the repo rate. As of September 17, liquidity in the banking system is estimated to be in surplus of around Rs 6.94 lakh crore, as per RBI data. As part of the liquidity adjustment strategy, the central bank on Thursday sold government securities worth Rs 50,000 crore through Open Market Operations (OMO). The remaining two tranches of G-sec sales of Rs 25,000 crore each are scheduled for September 21 and September 28. The bankin

Liquidity normalisation key before RBI embarks on interest rate hikes

With global central banks raising rates, RBI may need to drain excess banking liquidity and align overnight rates with the repo rate before embarking on a fresh tightening cycle

Rupee settles 2 paise up at 95.89 against dollar after breaching 96 level

The rupee staged a spirited recovery after slipping below the 96 level intraday and settled higher by 2 paise at 95.89 against the US dollar on Thursday on heavy dollar selling by banks, snapping its seven-day falling streak. The local currency breached the 96 level to hit a low of 96.10 to a dollar in day trade after a 25 basis point rate hike by the US Federal Reserve, sustained foreign fund outflows from stock markets and high crude oil rates. Forex traders said that dollar selling by banks on behalf of the RBI helped the local unit recoup losses and hit a high of 95.78 to a dollar. A slight correction in the dollar index and crude oil prices also supported investor sentiment despite global geopolitical volatility, they added. At the interbank foreign exchange market, the rupee opened higher at 95.88 but soon reversed gains and hit the intraday low of 96.10, breaching the 96 level for the first time since July 24. The unit recovered during the session and touched the high of 95.