Page 102 - Reserve Bank Of India

Indiabulls HFC may have to provide Rs 1,000 cr for AIF investments impact

Indiabulls' Assets Under Management (AUM) stood at Rs 63,569 crore as of September 30, 2023, comprising Housing Loans (72%), Loan Against Properties (15%), and commercial credit (13%)

SCBs well capitalised, capable of absorbing macroeconomic shocks: RBI

All banks would be able to meet the minimum regulatory common equity tier 1 (CET1) ratio of 5.5 per cent even under severe stress scenario

Lending rates decline in Nov while deposit rates harden: RBI data

The WALR on outstanding rupee loans of SCBs was at 9.80 per cent in November 2023 as against 9.84 per cent in October 2023 and 9.83 per cent in September

Forex reserves rise by $4.47 bn to $620.44 bn in week ending Dec 22: RBI

In the previous reporting week, the kitty had swollen by $9.112 billion to $615.971 billion, making the quantum of increase one of the highest in a week

Not mandatory for banks, NBFCs to raise green funds, RBI clarifies

The Reserve Bank of India (RBI) on Friday said it is not mandatory for banks and NBFCs to raise green funds, but in case they intend to do so they must follow the prescribed framework. The central bank has issued a set of Frequently Asked Questions (FAQs) on the 'Framework for Acceptance of Green Deposits'. In April 2023, it had issued detailed guidelines for acceptance of "green deposits" by banks and Non-Banking Financial Companies (NBFCs) wherein the funds could be used for financing activities like renewable energy, green transport and green buildings. The framework came into effect from June 1, 2023. According to the FAQs, the RBI-regulated entities (REs) should pay interest on green deposits to their customers as per agreed terms and conditions and prescribed directions irrespective of allocation/utilisation of proceeds. Also, "there is no restriction on premature withdrawal of green deposits, however, the REs shall adhere to the extant guidelines referred to above". Premat

Retail investor interest in derivative trading, SMIDS concerning: RBI

The report said that the rally in the mid, small, and microcap segments was significantly larger than the gains made by the benchmark Nifty this year

RBI tweaks D-SIB designation methodology, inserts digital payments aspect

The value of securities reported under 'Total Marketable Securities issued by bank' would be based on their market value

Banking for growth

Financing of NBFCs must be monitored

Evaluating the Indian economy's resilience

A growth trajectory of 6.5 to 7.5 %, centred around 7 %, is reasonable in the coming years, barring the eventuality of simultaneous external shocks

RBI continues battle against inflation; eyes on possible rate cut in 2024

For five consecutive policy reviews in 2023, the Reserve Bank of India (RBI) chose to hold rates, citing inflation threat. And when the prices did cool off a bit, it reminded all about the target to get the headline consumer price inflation at 4 per cent and the risks from food inflation. Heading into the new year, all eyes are on when RBI will cut the rates, especially after one of the Monetary Policy Committee (MPC) members stressed on the need for such an action in the face of the US Federal Reserve's guidance for easing rates. Also, some analysts point to the Consumer Price Inflation (CPI) falling below the 4 per cent mark in mid-2024 and then, there will be prospects of a rate cut. RBI Governor Shaktikanta Das, who is into the last year of his second three-year term at the helm of the central bank, has been steadfast in highlighting the need to get the inflation down to 4 per cent on a durable basis. CPI cooled off to a four-month low of 4.87 per cent in October but rose to 5.5

Financial sector set to see churn in 2024 with major leadership changes

Shaktikanta Das, governor of RBI and the chair of the Monetary Policy Committee (MPC), will complete his six-year term in December 2024. Das, who was first appointed in December 2018 for three years

Total amount of frauds reported by banks declines to six-year low: RBI

However, the number of frauds that were reported by banks have gone up from 7,263 frauds in 2020-21 to 13,576 in 2022-23

RBI implements govt securities lending directions with immediate effect

In February of the same year, the central bank had released draft norms for lending and borrowing of government securities aimed at expanding participation in the securities lending market

RBI warns banks, NBFCs against reliance on model-based lending practices

The regulator said inherent biases and lack of transparency with AI/ML outcomes carry risks

Govt's crackdown on alternative investment funds puts industry on watch

The top seven shadow lenders in the country had invested around $1.35 billion in these so-called AIFs, according to their most recent annual reports

Fraud cases in banking sector rises in first half of FY24: RBI report

The number of frauds in the banking sector during the first half of the current financial year has increased substantially to 14,483 cases, although the amount involved is only 14.9 per cent of the previous year's amount, according to a RBI report. The report on Trend and Progress of Banking in India 2022-23, underlined the need to protect the banking system and the payments system from the risks of fraud and data breaches emanating from cyber threats. As many as 14,483 frauds were reported involving an amount of Rs 2,642 crore in the first half of current financial year, as compared to 5,396 cases (Rs 17,685 crore) in the same period a year ago. Frauds lead to reputational, operational and business risk for banks and undermine customers' trust in the banking system with financial stability implications, it said. During 2022-23, the total amount of frauds reported by banks declined to a six-year low, while the average amount involved in frauds was the lowest in a decade, it ...

RBI asks NBFCs to broad-base fundraising, reduce dependence on banks

The Reserve Bank on Wednesday asked non-bank finance companies to broad-base their fundraising to limit reliance on banks as it called for strengthening balance sheets and guarding against frauds and data breaches. According to the report 'Trend and Progress of Banking in India 2022-23' released by the RBI, the Indian banking system and NBFCs remain sound and resilient, backed by high capital ratios, strengthening asset quality and robust earnings growth. The consolidated balance sheet of scheduled commercial banks (SCBs) in 2022-23 expanded by 12.2 per cent, driven by credit to retail and services sectors. Deposit growth also picked up, although it trailed credit growth, it said. Looking ahead, it said, "Given the increasing interconnectedness between banks and NBFCs, the latter should focus on broadbasing their funding sources and reduce overdependence on bank funding. Banks and non-banks both, need to bring in greater empathy in their customer services". The concerted efforts ar

Reserve Bank of India gives nod to reverse merger of IDFC-IDFC First Bank

Reserve Bank of India has given its nod for the reverse merger of IDFC Ltd with its banking subsidiary IDFC First Bank. The boards of IDFC First Bank and IDFC have approved the reverse merger in July. "....IDFC Limited and IDFC Financial Holding Company (IDFC FHCL) have received letters dated December 26, 2023 from RBI whereby RBI has conveyed its 'No Objection' to the composite scheme of amalgamation, subject to compliance with the terms specified therein," IDFC Ltd said in a regulatory filing. As part of the composite scheme of amalgamation, IDFC FHCL would first merge with IDFC and then IDFC into IDFC First Bank Ltd. The scheme remains subject to other statutory and regulatory approvals, including from the National Company Law Tribunal and the respective shareholders and creditors of the companies involved under the applicable laws, it said. Under the proposed reverse merger scheme, an IDFC shareholder will get 155 shares for every 100 shares she/he holds in the bank. Both stoc

RBI announces 2-day repo for $6 billion as overnight rates stay elevated

The RBI had infused 1.75 trillion rupees through a seven-day VRRR on Dec. 22 and 1 trillion rupees in the prior week that matured on Dec 22

Current account gap narrows to 1% of GDP at $8.3 bn in Q2FY24: RBI

The lower CAD in Q2FY24 was due to the narrowing of the merchandise trade deficit to $61.0 billion from $78.3 billion in Q2FY23