Page 9 - Rbi

Why the RBI may need to move in October

A rate increase would restore some real monetary restraint as inflation expectations rise and growth remains strong

FCNR(B) funds find a runway ahead of festival season-led credit demand

RBI Deputy Governor Rohit Jain said banks have an opportunity to deploy FCNR(B) liquidity in the coming months, while maintaining healthy credit standards

Credit card spends fall 2.8% to ₹2.02 trillion in August, shows RBI data

Credit card spending fell to Rs 2.02 trillion in August as online spends declined 7 per cent, while the number of outstanding cards rose to 124.05 million

Optimo Capital appoints former RBI CGM as an independent director

Bengaluru-based non-banking finance company Optimo Capital on Thursday said it has roped in former RBI Chief General Manager Shrimohan Yadav as an independent director on its board. In this role, he will guide the company's board on governance, risk and regulatory matters and will serve on certain important board Committees, the company said. Yadav served as Chief General Manager in the department of regulation, overseeing the licensing and ownership of private sector banks, small finance banks and payments banks, along with bank acquisitions, restructuring and governance. He currently serves as an independent director across the boards of a leading small finance bank and NBFCs and also acts as a senior Advisor to prominent firms in the financial services, the company said. As Optimo works toward its target of Rs 1,200 crore in assets under management, from Rs 441 crore at present, by the end of March 2027, Yadav's rich experience will be instrumental in ensuring that its ...

RBI carries out currency swaps worth at least $10 bn to reduce liquidity

The Reserve Bank of India has conducted sell-buy dollar-rupee swaps with lenders over the past two weeks, taking rupees out of the financial system to contain risks from surplus liquidity

Fair case for rupee to appreciate from current levels: RBI's Poonam Gupta

RBI Deputy Governor Poonam Gupta sees a case for rupee appreciation as the current account deficit shrinks and capital flows improve, potentially later this financial year.

Yes Bank mobilises $2 billion via FCNR(B) deposits under RBI swap window

Private sector lender is likely to use the funds to replace high-cost deposits and support incremental lending, with most raised in three- and five-year buckets

HDFC Bank eyes digital rupee for rewards, allowances, in-flight payments

Bank is developing digital rupee gift vouchers, corporate payouts and offline payments on flights, while integrating its CBDC wallet with BHIM for merchant payments

What borrowers can do if a lender forcibly repossesses a financed vehicle

Check the notices and possession records; report a secret or forcible seizure promptly; and seek urgent relief before an auction

RBI absorbs ₹75,026 cr via overnight VRRR auction amid surplus liquidity

The Reserve Bank on Wednesday absorbed Rs 75,026 crore from the banking system through an overnight variable rate reverse repo (VRRR) auction amid surplus liquidity. The central bank received bids worth Rs 87,993 crore for a notified amount of Rs 75,000 crore, but it accepted only Rs 75,026 crore, according to the notification. The bids were accepted at a cut-off and weighted average rate of 5.24 per cent. The RBI has been conducting various VRRR auctions since last month to absorb excess liquidity from the banking system and align overnight money market rates to the repo rate. Currently, liquidity in the banking system is estimated to be in surplus of around Rs 4.45 lakh crore as on September 22, as per RBI data. The central bank also conducted two open market operations (OMO) sales of government securities worth Rs 50,000 crore on September 17 and Rs 25,000 crore on September 21. Under an OMO sale, banks and other investors buy government securities from the RBI, thereby draini

Tumult at Bombay House: Many ways to split Tata Sons' sprawling empire

Noel Tata proposes carving up the group's ₹1.8-trillion asset portfolio into smaller, sector-specific entities to bypass the central bank's mandatory public listing threshold

Rupee extends gains for fifth straight session tracking fall in crude oil

The rupee settled at 95.59 per dollar as falling crude prices and likely dollar sales by state-run banks supported the currency; the 10-year bond yield fell 4 bps

RBI clarifies novation rules for over-the-counter derivative contracts

The central bank says subsequent novation after an OTC derivative contract has been accepted for settlement by a central counterparty will follow the revised directions

Tata Sons split may offer legal route, but RBI nod remains a key hurdle

Experts say an NCLT-approved restructuring may be legally feasible, but it would not by itself override RBI requirements or remove Tata Sons' listing obligation

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