Reserve Bank Of India

RBI's rupee defence comes at a cost as liquidity dries up, yields rise

The RBI's measures have curbed speculative dollar demand but tightened forex liquidity and raised hedging costs, while high oil prices and capital outflows continue to weigh on the rupee

Bank credit rises 19.4% in September; RBI rate hike may slow growth in H2

Bank credit rose 19.38% to ₹230 trillion in September, while deposits grew 17.83% to ₹283.95 trillion; CareEdge expects higher borrowing costs to moderate lending growth.

Current account deficit narrows to $5.2 billion in August: RBI data

India's current account deficit narrowed to USD 5.2 billion in August from USD 6.1 billion a year ago, aided by a lower merchandise trade deficit and higher surpluses in services trade, according to preliminary data released by the RBI on Thursday. The net deficit in the merchandise trade account declined to USD 26.6 billion in August from USD 27.6 billion in the same month last year. Merchandise exports rose to USD 44.7 billion in August from USD 35.1 billion a year ago, while imports increased to USD 71.3 billion from USD 62.7 billion, the RBI data showed. The surplus in services trade increased to USD 16.5 billion in August from USD 15.6 billion a year ago. Services exports rose to USD 35.5 billion from USD 31.2 billion, while imports increased to USD 18.9 billion from USD 15.6 billion. Net transfers, including remittances, increased to USD 12.8 billion in August from USD 12.2 billion a year ago, while the net deficit in the income account widened to USD 8 billion from USD 6.3 .

Supreme Court upholds quashing of Yes Bank's ₹8,415 cr AT-1 bond write-off

The dispute dates back to March 2020, when Yes Bank wrote down AT-1 bonds worth ₹8,415 crore to zero as part of its rescue and reconstruction, wiping out bondholders' investments.

IDBI Bank-Fairfax deal: What RBI rules say on foreign ownership and control

While India allows substantial FDI in private sector banks, the RBI regulates who can own them, how much voting power shareholders can exercise and how much equity promoters can retain over time

India may need rate hikes, tax relief to ease pressure on rupee: Analysts

The rupee's rebound after the RBI's latest measures may prove short-lived as energy import dependence and weak capital inflows weigh on the currency; further rate hikes could help address the pressure

Explained: What is Account Aggregator framework, and how does it work?

From November 1, financial institutions will pay a standard fee to access customer data through the Account Aggregator network. Here's how the framework works and what the new pricing means for users

RBI to continue efforts to contain rupee volatility: FM Nirmala Sitharaman

Open to views on long-term capital gains tax and securities transaction tax, says FM Nirmala Sitharaman

Rupee rallies to 1-month high on RBI curbs, but banks remain uneasy

The rupee gained 0.6% in October, mainly due to a series of steps by the RBI in the last few days to curb speculative bets

RBI extends forex risk reserve requirement to banks' own hedging contracts

The central bank has mandated a 20 per cent reserve on eligible rupee derivative contracts used by authorised dealers to hedge their own currency risks, without a minimum transaction threshold

RBI tightens rupee derivatives rules, widens 20% cash reserve requirement

The move is the latest in a slew of measures announced by the central bank since Saturday aimed at supporting the rupee, which has been falling due to steep oil prices and capital outflows

RBI's liquidity move lifts weighted average call money rates by 12 bps

The Reserve Bank's liquidity measures announced last week to drain surplus from the banking system lifted weighted average call money rates by 0.12 per cent on Monday, experts said. The measures, including moves to increase the daily CRR maintenance limit to 99 per cent and bond sales through open market operations, will also help accelerate rate hike transmission, they said. The weighted average call money rate on Monday stood at 5.43 per cent against 5.31 per cent on October 9, according to the Clearing Corporation of India's (CCIL) data. Money market experts said high surplus liquidity in the banking system can weaken the transmission of a policy rate hike by reducing banks' dependence on market borrowings and allowing them to meet credit demand using readily available funds. When banks have ample liquidity, they face less pressure to raise deposit rates to attract funds, which can delay an increase in lending rates for borrowers. The excess liquidity also keeps short-term money

Banks seek RBI relief, clarity on India's latest rupee-defence measures

Lenders have approached ‌RBI via a forex industry body, seeking the removal of a mandate that banks make a 20% cash deposit with the RBI for FX derivatives used to hedge current-account exposures

Rupee posts biggest gain in 6 months after RBI measures to support currency

The currency gained 1%, its biggest jump since April, to 95.7575 per dollar on Monday

RBI opens special dollar window for oil firms as rupee comes under pressure

Special window for PSU oil companies from Monday; Forex dealers will not permit users to rebook any foreign exchange derivatives

HDFC Bank's Anup Bagchi set to become India's highest-paid bank CEO

HDFC Bank proposes ₹35.9 crore in annual compensation for incoming MD & CEO Anup Bagchi, including ₹26.92 crore in variable pay, besides a ₹7.35 crore joining bonus

Inflation pressures broaden as 37% of CPI basket rises above 4%: RBI

RBI's October Monetary Policy Report flags widening price pressures across goods and services, with food and fuel inflation adding to concerns over second-round effects

Bank deposits join CAS: What you may see, what may still be missing

Bank deposits will join the Consolidated Account Statement (CAS) from January 1. But will the move finally give consumers a complete picture of their financial life?

Is India's inflation problem spreading beyond food and fuel prices?

India's inflation rose to 4.8% in August from 3.4% in March, with food and fuel leading the rise, while core prices and services are now showing signs of wider pressure

RBI rate cycle: How much did borrowers and savers actually benefit?

The RBI's previous rate cycle shows that changes in the repo rate did not translate equally into loan and deposit rates, with the impact varying across borrowers and Depositors