Page 101 - Reserve Bank Of India

World Bank keeps India's FY25 GDP growth estimate unchanged at 6.4%

In its biannual 'Global Economic Prospects' report, the World Bank said India is anticipated to maintain the fastest growth rate among the world's largest economies

RBI revise guidelines for SFBs, raise min capital requirement to Rs 200 cr

The Reserve Bank on Monday raised the minimum capital requirement for small finance banks to Rs 200 crore and permitted Payments Bank to upgrade as SFBs. Incidentally, the net worth of all SFBs currently in operation is in excess of Rs 200 crore. Issuing the revised guidelines, the Reserve Bank said that for Primary (Urban) Co-operative Banks (UCBs) desirous of voluntarily transiting into SFBs, the initial requirement of net worth would be at Rs 100 crore, which will have to be increased to Rs 200 crore within five years from the date of commencement of business. Payments Banks can apply for conversion into SFB after five years of operations if they are otherwise eligible as per the guidelines, it said. Meanwhile, Fino Payments Bank, in a statement, said the bank has already applied for an SFB licence as per regulatory guidelines on Payments Bank conversion to SFB. The regulator is examining the application and awaiting further comments from the RBI as per the process, Fino ...

RBI gives clarity to 'politically exposed persons' term to meet FATF norms

They are individuals entrusted with prominent public functions by a foreign country, including the heads of states or governments

Q3 securitisation volume falls 17% to Rs 38,000 cr, but up 20% in 9 months

Securitisation volume has declined 17 per cent year-on-year to Rs 38,000 crore in Q3 from Rs 46,000 crore but grown 20 per cent to Rs 1.4 lakh crore during the first nine months of the current fiscal. However, analysts expect the volume recouping and closing the final quarter much higher. Rating agencies Crisil and Icra have, in separate reports, said the growth momentum will continue, given the positive regulatory changes, wider participation, and innovative structures nudging growth. The decline in the third quarter volume is primarily due to the exit of the largest player from the market as HDFC merged with its banking arm on July 1. Securitisation volume has declined to Rs 38,000 crore in Q3 from Rs 46,000 in the year-ago period. But the volume for the first three quarters rose to Rs 1.4 lakh crore, ratings agencies Icra and Crisil said in separate notes on Friday. According to this agency, the fall was primarily due to the Reserve Bank massively increasing the capital ...

RBI says Rs 2,000 notes can be exchanged through post offices as well

The Reserve Bank of India (RBI) has said that Rs 2,000 notes can be exchanged through post offices as well. There are reports of people queuing up at the RBI offices for returning the Rs 2,000 notes. In a set of Frequently Asked Questions (FAQs) on its website, the RBI said people can send the notes to any of its 19 issue offices from any post office. People need to fill up an application form which is available online and send the notes to a RBI issue office from any facility of India Post, it said. In May last year, the apex bank announced its decision to withdraw the Rs 2,000 notes, which was first introduced after the demonetisation exercise in 2016. The decision to withdraw the Rs 2,000 notes was taken as most of these notes had exceeded their expected lifespan and were also not being used by the public for transactions, the RBI had said. At present, over 97.38 per cent of the Rs 2,000 notes in circulation as in May 2023 have been returned. After allowing for exchange or dep

India's forex reserves jump $2.75 bn to $623.2 bn, shows RBI data

In the previous reporting week, the overall reserves had increased by $4.471 billion to $620.441 billion

RBI revises definition of politically-exposed persons for KYC purpose

The Reserve Bank of India (RBI) has changed the definition of Politically-Exposed Persons (PEPs) under its norms, a move that will make it easier for those individuals to carry out various banking transactions, including availing loans. Certain changes have been made in the RBI's Know Your Customer (KYC) norms. The earlier norms pertaining to PEPs were open-ended and there was a lack of clarity on the definition, apparently leading to issues for bankers, parliamentarians and others. There were also concerns in certain quarters that PEPs were finding it difficult to get loans or open bank accounts. In the amended KYC master direction, the central bank defines PEPs as "individuals who are or have been entrusted with prominent public functions by a foreign country, including the heads of states/governments, senior politicians, senior government or judicial or military officers, senior executives of state-owned corporations and important political party officials". The new rules also .

Poonawalla Fincorp's AUM rises 57% to around Rs 21,850 cr in Q3FY24

Sequentially, Poonawalla Fincorp's AUM expanded by 8 per cent over in the second quarter ended September 2023

Reserve Bank of India to conduct 7-day VRR auction to inject up to Rs 1 trn

The central bank had conducted a VRR auction after six months on December 15

RBI takes steps to curb inoperative bank accounts: Things you should know

The RBI has issued fresh guidelines to reduce the quantum of inoperative bank accounts and unclaimed deposits with focus on tracing customers, and reducing fraud risk. Check all the details

Invest in longer-duration funds to gain from anticipated rate cuts

But avoid going overboard with exposure as unforeseen events could prevent inflation from softening

Customers' complaints against credit information companies increasing: RBI

The Reserve Bank on Tuesday said there has been a rise in customer complaints against credit information companies (CICs). The central bank has also found "some concerns" on the conduct of CICs in its supervisory assessment, an official statement said without specifying the concerns. The statement, released after a meeting between Deputy Governor Swaminathan J and managing directors and chief executives of CICs earlier in the day, also mentioned the specific areas where CICs need to focus on. "He (Swaminathan) pointed out that, of late, there is a rise in customer complaints related to credit information and some concerns have emerged during Reserve Bank's supervisory assessment," the statement said. The CICs need to redress customer complaints timely, strengthen the internal ombudsman framework, streamline the process for handling data correction requests, strengthen cybersecurity and data privacy through a robust information security governance framework, improve data quality an

RBI pulls up credit information bureaus on rising customer complaints

The CICs shared their feedback and highlighted the initiatives that are being taken in collaborating with the credit institutions (CIs) for enhancing data quality

Bank Holidays in January 2024: Banks to remain closed for 16 days

RBI announced the list of bank holidays in light of different elements including national/state holidays, cultural or religious recognition, functional necessities, government declarations and so on

UPI transaction rules 2024: New regulations applicable from January 1

UPI new rules: The RBI and NPCI have announced a number of changes to regulations for online payments via UPI. Here are the top 5 such changes

RBI asks banks not to classify zero balance account as inoperative

An account which has not been operated for two years is classified as inoperative accounts. RBI said that customers have to submit KYC documents afresh for reactivating the account

Nearly 97% Rs 2,000 notes returned, Rs 9,330 cr still with public: RBI

The Reserve Bank of India (RBI) on Monday said that nearly 97.38 per cent of the Rs 2,000 bank notes have been returned to the banking system, and only about Rs 9,330 crore worth of the notes are still with the public. On May 19, the RBI announced the withdrawal of Rs 2,000 denomination bank notes from circulation. "The total value of Rs 2,000 bank notes in circulation, which amounted to Rs 3.56 lakh crore as at the close of business on May 19, 2023, when the withdrawal of Rs 2,000 bank notes was announced, has declined to Rs 9,330 crore as at the close of business on December 29, 2023," the RBI said in a statement. Thus, 97.38 per cent of the high-value currency in circulation as of May 19, 2023, has since been returned to the banking system, it added. "The Rs 2,000 bank notes continue to be legal tender," the RBI added. People can deposit and/or exchange Rs 2,000 bank notes at the 19 RBI offices across the country. People can also send Rs 2,000 bank notes through India Post from

UPI scales new high in December; 2023 value up 59% at Rs 183 trn

Monthly FASTag and IMPS transactions increase too, but those at Aadhaar Enabled Payment System fall

Optimise returns on short-term corpus with liquid and overnight funds

Yields from these schemes are attractive currently, but could come down if rate cuts happen

RBI Deputy Guv Rao flags risks of AI deployment in financial institutions

He categorized these risks into three broad sets-data bias and robustness, governance, and transparency