Page 7 - Rbi

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.

RBI absorbs ₹50,000 crore through bond sale amid liquidity surge

The central bank sold Rs 50,000 crore of government securities in the first of three OMO tranches planned for September to absorb surplus liquidity from the banking system.

The economics of a 'strong rupee'

Our currency policy is costly for people and generates small benefits for a subset

Clarity needed on powers of Tata Sons' board, parent trusts: Experts

Tata Sons' board vote on N Chandrasekaran's reappointment and the mandatory listing has renewed questions over governance, board authority and Tata Trusts' rights

RBI may increase debt sales to drain surplus liquidity after 9 years

Indian bond traders expect the central bank to step up bond sales for liquidity absorption, as policymakers likely seek to strengthen transmission of expected rate hikes

RBI sells ₹50000 cr govt securities in OMO to drain surplus liquidity

India's central bank sold ₹50000 crore ($5.2 billion) of bonds under its open market operations program as it stepped up efforts to drain surplus cash from the banking system

Tata Sons to go public: A look at years of legal and regulatory hurdles

Tata Sons' board has cleared a listing plan after years of legal and regulatory hurdles. Here's a look at the key events that shaped the Tata group holding company's road to the IPO

RBI absorbs ₹2.4 trillion via VRRR auction amid surplus liquidity

The Reserve Bank of India (RBI) on Thursday absorbed Rs 2.40 lakh crore through variable rate reverse repo (VRRR) auctions from the banking sector amid huge surplus liquidity. The central bank received bids worth Rs 2,39,959 crore, which it accepted fully, at a cut-off and weighted average rate of 5.24 per cent. The RBI has been, since last month, doing various VRRR auctions in order to absorb excess surplus liquidity from the banking system and align the overnight money market rates to the repo rate. Currently, liquidity in the banking system is estimated to be in surplus of around Rs 7.38 lakh crore as on September 16. Apart from VRRR, last week, the central bank announced Open Market Operation (OMO) sales of government securities for a notified amount of Rs 1 lakh crore in three tranches. The first tranche of Rs 50,000 crore will be held on September 17, and Rs 25,000 crore each on September 21 and September 28, RBI said. The banking system has a huge surplus of liquidity due

Rupee may need to weaken further as fundamentals shift: Axis Bank

The Indian rupee may need to weaken further to align with shifting trade fundamentals and relatively weaker productivity gains from ​AI, according to an Axis Bank assessment

RBI NBFC FAQs offer clarity on rules relevant to Tata Sons' de-registration

RBI's latest NBFC FAQs clarify definitions of CICs, principal business and public funds, shedding light on regulatory issues relevant to Tata Sons' failed deregistration bid

Tata Sons board to mull asking Chandrasekaran to stay on amid RBI IPO push

The holding company's board is set to consider its listing obligations after the RBI refused to relax the rules, while its committee may seek the chairman's continuation

SC asks RBI to ensure banks, NBFCs seize financed vehicle lawfully

Highlighting RBI's directive that a financed vehicle can be seized only through "lawful means", the Supreme Court on Wednesday directed the federal bank to enforce its guidelines on non-banking financial companies and scheduled commercial banks to ensure that borrowers are not dispossessed of their hypothecated vehicles without due process of law. The top court's direction came in a judgement in which it ordered Cholamandalam Investment and Finance Company Ltd to close the loan accounts of a truck owner, and refund Rs 4.5 lakh realised from the sale of his vehicle with six per cent annual interest. It also asked the finance firm to pay Rs 10 lakh compensation for mental agony and loss of livelihood caused by the unauthorised repossession of his vehicle. A bench of justices PS Narasimha and Alok Aradhe held that financial institutions cannot use force, stealth or arbitrary methods to recover loans, even when borrowers have defaulted on repayment. Justice Narasimha, writing the ...

RBI absorbs ₹2.9 trillion via two VRRR auctions amid surplus liquidity

The Reserve Bank of India (RBI) on Wednesday absorbed Rs 2.90 lakh crore through two variable rate reverse repo (VRRR) auctions from the banking system amid a huge surplus. In the first auction, the central bank received bids worth Rs 3,17,088 crore for a notified amount of Rs 2.50 lakh crore. However, it accepted only Rs 2,50,025 crore at a cut-off and weighted average rate of 5.24 per cent. The central bank received a tepid response in the second auction with bids worth Rs 40,302 crore for a notified amount of Rs 1 lakh crore, which it accepted fully. The RBI, since last month, has been conducting various VRRR auctions in order to absorb surplus liquidity from the banking system and align the overnight money market rates to the repo rate. Currently, liquidity in the banking system is estimated to be in surplus of around Rs 9.85 lakh crore as on September 15. Apart from VRRR, last week, the central bank announced Open Market Operation (OMO) sales of government securities for a ..

Traders brace for prolonged India bond slump as RBI mops up excess cash

Bond traders expect yields to rise as the RBI drains excess liquidity amid higher oil prices, rising inflation and heavy government debt supply

RBI caveat in Bombay High Court limits bid to stall Tata Sons IPO

Plea in Bombay HC to ensure central bank is heard before any order on listing challenge

Rupee falls 0.42% to 95.96, posts sharpest decline since July 14

The domestic currency extended its losing streak to five sessions as rising crude oil prices, global bond yields and strong dollar demand weighed on the rupee

RBI may hike rates by 25 bps each in Oct & Dec as inflation may cross 6%

Economists say the rate hike cycle could be shallow, with 50-75 bps hike in the current cycle

RBI absorbs ₹3.93 trillion from banking system through VRRR auction

The Reserve Bank of India (RBI) on Tuesday absorbed Rs 3,93,352 crore through variable rate reverse repo (VRRR) auction amid huge surplus liquidity in the banking system. The central bank received bids worth Rs 3,93,352 crore, for a notified amount of Rs 5 lakh crore. It accepted all bids at a cut-off and weighted average rate of 5.24 per cent, according to a release. Over the last month, the RBI has been conducting VRRR auctions in order to absorb excess surplus liquidity from the banking system and align the overnight money market rates to the repo rate. The liquidity surplus in the banking system was estimated to be around Rs 10.73 lakh crore on September 11. Apart from VRRR auctions, last week, the central bank announced Open Market Operation (OMO) sales of government securities for a notified amount of Rs 1 lakh crore in three tranches, with the first tranche auction to be held on September 17. The first tranche of Rs 50,000 crore will be held on September 17, and Rs 25,000 c

Delhi HC asks RBI to mediate PayU, banks, Visa row over merchant codes

The court asked the RBI to nominate a senior officer to facilitate talks and resolve the dispute over merchant classification and interchange fee claims within 30 days.