Page 157 - Reserve Bank Of India

IMF praises RBI for tightening the monetary policy to curb inflation

The International Monetary Fund (IMF) on Tuesday praised the Reserve bank of India (RBI) for tightening the monetary policy to curb inflation in the country. The RBI has appropriately been tightening to fight inflation as the inflation is above target, and since May, if my memory serves me well, it sort of delivers 190 basis points rate hikes and we think further tightening is needed to bring inflation to its target, Garcia Pascual, Deputy Division Chief of the Monetary and Capital Markets Department of the IMF, told reporters at a news conference here. Tobias Adrian, Financial Counsellor and Director of the Monetary and Capital Markets Department of the IMF, said that monetary policy has tightened in India, similar to other emerging markets as well, where inflation has been above target. And certainly, inflation has been above the RBI's target recently, so we do expect a tightening of monetary policy going forward as well, he said in response to a question. In terms of financial .

Top Headlines: Starlink services in India, partial treatment to EV makers

Start-ups manufacturing electric two- and three-wheelers have alleged they are not getting subsidies under the second phase of the FAME II scheme

Fast-track mechanism on the cards to help Indian investors in UAE

The mechanism will also assist Indian companies to foray into the UAE market and expand

RBI asks banks to set aside capital, provisions for unhedged FX exposure

Move comes amid sharp depreciation in rupee; says losses incurred by entities with such exposure could affect health of banking system

RBI tightens disclosure norms on divergence in NPAs, provisions

Also makes them applicable to UCBs

MDs, CEOs of ARCs can't have more than 3 terms in office without a cool-off

RBI allows ARCs to bid for assets in IBC cases

Rising median loan rates lead to fall in affordability of homebuyers

A cumulative increase of 0.95 per cent in median home loan rate has impacted the purchase affordability and purchase decisions of homebuyers, according to the Affordability Index by Knight Frank

RBI raises minimum capital requirement for setting up ARCs to Rs 300 cr

The Reserve Bank on Tuesday raised the minimum capital requirement for setting up an asset reconstruction company (ARC) to Rs 300 crore from the existing Rs 100 crore with an aim to strengthen the securitisation sector which plays a vital role in the management of distressed financial assets. The existing ARCs have been given a glide path to meet the minimum net owned fund (NOF) requirement till April 2026, the RBI said in a circular amending the existing regulatory framework for such entities. "Consequently, any ARC obtaining the certificate of registration on or after the date of this circular shall not commence the business of securitisation or asset reconstruction without having minimum NOF of Rs 300 crore," the circular said, adding the guidelines are effective immediately. Under the earlier guidelines, each ARC was required to frame a board-approved policy laying down the broad parameters for settlement of debts due from the borrowers. Further, the board was permitted to ...

RBI issues consolidated guidelines on unhedged foreign currency exposure

The Reserve Bank on Tuesday modified and consolidated guidelines for banks on unhedged foreign currency exposures of any entity to prevent losses due to heightened volatility in the forex market. The RBI has, from time to time, issued several guidelines, instructions and directives to the banks on Unhedged Foreign Currency Exposure (UFCE) of the entities, which have borrowed from banks. In the wake of a bank seeking clarification on various aspects related to UFCE, the RBI said a comprehensive review of the extant guidelines has been undertaken and all the existing instructions on the subject have been consolidated. These instructions shall come into force from January 1, 2023, it said in a circular. In an explanatory note, the RBI said unhedged foreign currency exposure of any entity is an area of concern not only for the individual entity but also for the entire financial system. Entities which do not hedge their foreign currency exposure can incur significant losses during a pe

RBI allows SPDs to undertake all foreign exchange-related activities

The Reserve Bank of India (RBI) on Tuesday allowed standalone primary dealers to offer all foreign exchange market-making facilities to users, a move aimed at providing broader facilities to customers for currency risk management. At present, Standalone Primary Dealers (SPDs) are permitted to undertake foreign currency business for limited purposes. Currently, there are seven SPDs and 14 bank primary dealers in the country. SPDs will also be permitted to take up trading and self-clearing membership with Sebi-approved stock exchanges and clearing corporations for undertaking proprietary transactions in equity and equity derivatives market. "...it has been decided to allow SPDs to offer all foreign exchange market-making facilities to users, as currently permitted to Category-I Authorised Dealers, subject to adherence to the prudential regulations and other guidelines...," the RBI said in a circular. In August, the RBI said the measure would give forex customers a broader spectrum of

IDBI Bank: Corporates cannot be bidding consortium members, says official

Large corporates have been disallowed from being even a minority shareholder in consortium wanting to bid for 61 per cent stake in IDBI Bank, as the current RBI norms bar industrial houses from becoming bank promoters, an official said. Currently, RBI guidelines allow industrial houses to hold a maximum of 10 per cent stake in private sector banks, but they cannot be a promoter. Last week, the government along with Life Insurance Corporation (LIC) invited Expression of Interest (EoI) for selling 60.72 per cent stake in IDBI Bank. However, it barred large industrial houses from participating in the strategic sale. As per the bid document, 'large industrial/corporate houses' has been defined an industrial/ corporate group with assets of Rs 5,000 crore or more with the non-financial business of the group accounting for 40 per cent or more in terms of total assets/ gross income. An official said that corporate houses have not been permitted to participate in the bidding process for IDB

RBI likely sold dollars, received forwards to stem rupee's drop: Report

The rupee has traded in a narrow range of about 8 paisa so far in the session

EVs, green hydrogen to soon come under priority sector lending: Report

Currently, 8 sectors are eligible to get lending under the PSL mechanism including agriculture, MSMEs, export credit, housing, education, renewables, and social infrastructure sectors

As MPC raises growth projections, what makes the panel so optimistic?

The MPC believes that there is growth momentum due to better farm production, government policies to boost capex, improvement in business and consumer sentiment

Ratings devoid of lenders detail should be treated as unrated exposure: RBI

Capital charge to be linked to risk weight for unrated lending

RBI interventions, corporate flows pull rupee back from new low against USD

Rupee underperforms EM peers so far in Oct, fares worse than 14 currencies

RBI cancels licence of The Seva Vikas Co-op Bank amid inadequate capital

The Reserve Bank of India on Monday said it has cancelled the licence of Pune-based The Seva Vikas Co-operative Bank Ltd as the lender does not have adequate capital and earning prospects. The bank ceases to carry on banking business, with effect from the close of business on October 10, the RBI said in a statement. As per the data submitted by the bank, it said about 99 per cent of the depositors are entitled to receive full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). As on September 14, DICGC paid Rs 152.36 crore of the total insured deposits. "The bank does not have adequate capital and earning prospects," the RBI said. It also noted that the bank with its present financial position would be unable to pay its present depositors in full. The Seva Vikas Co-operative Bank is prohibited from conducting the business of banking which includes, among other things, acceptance of deposits and repayment of deposits with immediate effect,

RBI pulls up banks on exposures' ratings without lenders' names

The Reserve Bank of India (RBI) on Monday said that a bank loan rating by rating agencies not having lenders' names won't be considered for capital computation by banks

NPCI's plan to acquire a stake in ONDC faces RBI hurdle, says report

Banking regulator flags conflict of interest concern

RBI sells dollars as rupee hits record low on US rate hike woes: Report

The Reserve Bank of India likely sold dollars via state-run banks on Monday after the rupee plumbed a fresh record low following a US jobs report that firmed bets of more aggressive rate hikes