Page 107 - Reserve Bank Of India

RBI and NPCI look for offline methods to boost digital payment adoption

RBI has established a sandbox allowing startups to experiment with various central bank-backed digital currency (CBDC) use cases

India non-bank body appeals to RBI to review recent risk weight increase

The RBI last week increased the risk weights, or the capital that banks need to set aside for every loan disbursed, for banks and NBFCs by 25 percentage points to 125% on retail loans

Banks focusing on client acquisition, less on grievance redress: RBI's Rao

The deputy governor also said that an excessive exposure to risk within banks and financial institutions can lead to catastrophic outcomes if not effectively managed

Audit report of 'bob World' is in progress; RBI decision to impact capital

In October, RBI had ordered Bank of Baroda (BoB) to suspend further customer onboarding on its 'bob World' mobile app with immediate effect

Bank of Baroda yet to complete forensic audit on mobile app fraud: Official

Leading public sector lender Bank of Baroda is yet to complete the forensic audit into the recent graft allegations against some of its key employees of its mobile app Bobworld, a senior bank official said on Thursday. "We are still working on the forensic audit as the central bank is still doing some more due diligence on the app Bobworld," Joydeep Dutta Roy, an Executive Director of the bank, told reporters on the sidelines of the two-day national banking summit organised by IBA and Ficci. On October 10, the Reserve Bank of India (RBI) banned the lender from on-boarding new customers on its mobile app after finding certain material supervisory concerns. "The Reserve Bank has directed Bank of Baroda to suspend, with immediate effect, any further onboarding of their customers on to the Bobworld mobile application," the central bank had said in a statement. The action, the RBI had said was based on certain material supervisory concerns observed in the manner of onboarding of their .

RBI Guv asks NBFC-MFIs to be wise in using flexibility on interest rates

Stating that some Non Banking Finance Company-Microfinance Institutions (NBFC-MFIs) are making wider net interest margins, RBI Governor Shaktikanta Das on Wednesday asked entities to be "judicious" in using the flexibility on the interest rates they charge from borrowers. Speaking at the annual Fibac event, Das said the microlending segment serves marginalised clientele and has emerged as an important financial conduit to foster financial inclusion. "Though the interest rates are deregulated, certain NBFC-MFIs appear to be enjoying relatively higher net interest margins. It is indeed for microfinance lenders themselves to ensure that the flexibility provided to them in setting interest rates is used judiciously," he said. It can be noted that following the crisis in the microfinance segment in Andhra Pradesh that had also led to the creation of the NBFC-MFI segment, the Reserve Bank of India (RBI) had capped the maximum interest which lenders can charge at 24 per cent. The rate regi

SBI rejigs portfolio of MDs, DMDs, Vinay Tonse appointed managing director

State Bank of India (SBI) on Tuesday changed portfolios of some of its top officials with the appointment of Vinay M Tonse as the fourth managing director of the bank. Tonse will now look after retail banking and operations, SBI said in a regulatory filing. The portfolio was with Alok Kumar Choudhary earlier. Choudhary has been entrusted with the new responsibility of Managing Director looking after Risk, Compliance & Stressed Assets Resolution Group (SARG). Ashwini Kumar Tewari has been entrusted with new responsibility as Managing Director of corporate banking and subsidiaries, it said. Earlier, Swaminathan J, who has been elevated as RBI Deputy Governor, was looking after this portfolio. Mahesh Kumar Sharma, Deputy Managing Director (DMD) has been entrusted with new responsibility as DMD (Transaction Banking & New Initiatives), it said. Another DMD Rana Ashutosh Kumar Singh has been entrusted with new responsibility as DMD Retail.

FY24 to end with strong growth performance, macroeconomic stability: FinMin

The current financial year should conclude as projected with a strong growth performance and macroeconomic stability as more than half of this fiscal has witnessed positive developments in the economy, a finance ministry report said on Tuesday. The Reserve Bank of India (RBI) has projected a 6.5 per cent GDP growth in the current financial year ending March 2024. In the Monthly Economic Review for October, the ministry also said the downside risk will continue to be inflation that should keep both the government and the RBI on high alert. Financial flows in the external sector need constant monitoring as they impact the value of rupee and the balance of payments, the report said, adding that a fuller transmission of the monetary policy may also temper domestic demand. On the inflation front, it said the decline in international crude oil prices and continued moderation in core inflation are likely to control inflationary pressures going forward. Recognising this trend, the report

One-year overnight swap hints domestic interest rates may be peaking

The market sees the recent decline in swap rates as reflecting a diminishing concern about an impending effective rate hike in India

Meeting the deficit target

The pressure to rein in capital expenditure and collect more tax revenue may increase

Higher risk weight on unsecured bank loans credit positive: Moody's

The RBI's decision to tighten norms for unsecured personal loans is credit positive because lenders will need to allocate higher capital for such loans, thus improving their loss-absorbing buffers, Moody's Investors Service said on Monday. The Reserve Bank last week raised risk weights on unsecured retail loans, credit cards and lending to non-banking finance companies (NBFCs) by 25 percentage points. Moody's said unsecured loans have been growing rapidly in the past few years, exposing financial institutions to a potential spike in credit costs in case of sudden economic or interest rate shocks. The tightening of underwriting norms through higher risk-weighted assets is credit positive because lenders will need to allocate higher capitals for such loans improving their loss-absorbing buffers and may dampen their growth appetite, Moody's said in a statement. It said that over the past few years, India's unsecured lending segment has become very competitive, with banks, NBFCs and ..

No-cost, longer-tenure EMIs gain traction, drive consumer product sales

Notably, to address the concern of the rapid rise in unsecured consumer loans, the RBI increased the risk weight on consumer credit

Former RBI Governor S Venkitaramanan passes away at 92 after short illness

Venkitaramanan was born in Nagercoil, part of the Padmanathapuram division of the princely state of Travancore

Financial stocks feel the pinch of RBI loan stance; Sensex falls 188 points

Sensex, Nifty decline intraday but finish with gains for a third week in a row

Reduced risk of data breach the main benefit of tokenisation: Visa

A tokenised card transaction is safe as the card details are not shared with anyone, including the merchant, during the processing of a transaction

Bajaj Finance temporarily halts issuance of EMI Cards to new customers

The company continues to offer financing to new and existing customers at dealer stores in the normal course of business

Transmission remains incomplete amid calibrated liquidity management: RBI

However, the increase in term deposit rates in the current tightening cycle has exceeded that in lending rates, the report said

Food inflation sole threat to 4% CPI target: RBI 'State of Economy' report

The headline inflation had risen to a 15-month high of 7.44 per cent in July due to a surge in retail prices of vegetables, particularly tomatoes

eCOM, Insta EMI Card ban may hit Bajaj Finance for 1-2 qtrs: Analysts

Following the development, shares of Bajaj Finance tumbled 4 per cent in the intraday trade, before recouping losses to end 1.9 per cent higher at Rs 7,366 per share

Festive demand ebullient, but miles to go on inflation front: RBI bulletin

High-frequency food price data for this month up to Nov. 13 indicates that cereal and pulse prices have increased further, while edible oil prices continued to decline, the RBI said