Page 7 - Rbi

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

'Nursery of entrepreneurship, key to Viksit Bharat': RBI Guv bats for MSME

The RBI governor's message in Kochi puts the focus on whether banks can turn formal credit channels, digital rails and policy support into timely finance for small businesses

Liquidity view fuels CRR hike possibility as RBI moves lift inflow outlook

Expectations of stronger forex inflows have sparked talk of an RBI CRR hike if surplus liquidity builds sharply by August

Markets hope for weekly update of FCNR (B) inflows under swap scheme

Market participants expect the RBI to disclose FCNR(B) inflow data regularly after asking banks to submit daily figures under the special concessional scheme

Forex reserves fall $10 bn as decline in gold prices drags overall holdings

India's foreign exchange reserves recorded their steepest weekly decline since March, with a sharp fall in gold reserve valuations offsetting gains in foreign currency assets

RBI revamps Lead Bank Scheme, strengthens district credit planning

The revised framework formalises block-level credit planning, strengthens Lead District Manager offices and sharpens accountability across banking committees

Datanomics: FCNR (B) share in NRI deposits halves over the past decade

FCNR(B) deposits have lost ground in NRI portfolios over the past decade, prompting the RBI to ease rate restrictions to attract fresh inflows

Banks told to report daily FCNR (B), ECB inflows under RBI swap facility

Banks have been asked to furnish daily details of FCNR(B) deposits, ECBs and OFCBs mobilised under the RBI's concessional swap facilities announced on June 8

RBI defers implementation of revised KCC directions to January 2027

The central bank has postponed implementation of revised Kisan Credit Card norms by six months after considering operational and technology-related concerns

Banks' supervisory data quality score slips marginally in March quarter

The RBI's Supervisory Data Quality Index for scheduled commercial banks eased to 90.7 in March 2026, with declines in accuracy and timeliness offset partly by gains elsewhere

BCRC seeks grandfathering as RBI's BC recertification rule nears rollout

BCRC says forcing already certified business correspondents to take advanced IIBF certification may trigger exits as RBI's new rule takes effect on July 1, 2026

Banks' demand muted at RBI's VRR auction despite lower surplus liquidity

The demand from banks remained muted at the Reserve Bank of India's (RBI) three-day variable rate repo (VRR) auction held on Friday, indicating limited demand for short-term funds from banks. The central bank received bids worth Rs 16,750 crore from banks at the VRR auction against the notified amount of Rs 1 lakh crore. The RBI accepted the entire amount at the auction at a cut-off and weighted average rate of 5.26 per cent. Liquidity conditions in the banking system remained in surplus, though at a lower level. According to the latest data available with the RBI, systemic liquidity surplus stood at around Rs 19,163.11 crore as on June 18. The liquidity position improved marginally compared with the previous day but remained lower, reflecting tighter conditions in the banking system. The muted participation in the VRR auction indicates limited demand for short-term funds from banks despite the RBI providing liquidity support through variable rate repo operations. The VRR auctio

India's short-bond rally may lose steam as RBI drains excess cash: Analysts

Expectations of cash withdrawal operations and a possible increase in banks' cash reserve ratio are seen limiting further gains in short-term bonds

RBI steps up dollar buying to rebuild reserves, manage forward book

The central bank is using the rupee's recent strength to replenish foreign exchange reserves and manage its large short dollar forward position, dealers said

RBI move to remove FCNR(B) deposit rate cap opens room for further hikes

Banks, especially smaller lenders, may raise FCNR(B) deposit rates further after RBI temporarily removed the interest-rate ceiling on select maturities

Banking system liquidity surplus near 3-month low on advance tax outflows

Surplus liquidity in the banking system narrowed sharply to its lowest level in nearly three months, weighed down by advance tax outflows, despite liquidity support measures undertaken by the Reserve Bank of India (RBI). According to Reserve Bank of India (RBI) data analysed by PTI, surplus liquidity in the banking system dropped sharply to Rs 4,772.21 crore on June 17, from Rs 23,881.21 crore on June 16. The liquidity surplus reported on June 17 was the lowest level since March 22, 2026, when the banking system was in a liquidity deficit of Rs 65,395.64 crore, the RBI data shows. Experts attributed the narrowing of liquidity to outflows on account of advance tax payments. Further, they added that the central bank may conduct more VRR (variable rate repo) auctions in the coming days to support liquidity in the banking system. The tightening liquidity conditions have pushed the weighted average call money rate above the RBI's repo rate of 5.25 per cent. To ease liquidity pressures

RBI to conduct 3-day VRR auction on Friday, aims to infuse ₹1 trillion

The central bank will conduct a three-day variable rate repo auction to address evolving liquidity conditions after surplus liquidity moderated due to advance tax outflows

HDFC Bank extends Keki Mistry's term as interim chairman by 3 months

RBI has approved the extension of Keki Mistry's tenure as interim part-time chairman of HDFC Bank until September 18, 2026, or until a regular chairman is appointed

Rupee's oil-led gains capped by RBI FX book, hedging flows: Bankers

The RBI's short-dollar ​forward book is estimated to have ballooned to an all-time high of nearly $110 billion, according to two ‌officials at foreign banks, up from $96 billion in April

Citigroup scraps calls for RBI hikes as Iran deal cools price risks

India, which is heavily reliant on oil imports from the West Asia, faces headwinds from higher energy prices as well as forecasts of a weaker monsoon season as El Niño weather phenomenon takes hold