Page 2 - Reserve Bank Of India

Markets hope for weekly update of FCNR (B) inflows under swap scheme

Market participants expect the RBI to disclose FCNR(B) inflow data regularly after asking banks to submit daily figures under the special concessional scheme

Shifting composition: Dependence on services exports is increasing

Services exports are driving India's trade growth and resilience, but stronger manufacturing output remains essential for broad-based job creation and sustainable growth

MPC Minutes: Need to stay watchful on inflation, says RBI governor

RBI Governor Sanjay Malhotra emphasised to remain watchful and wary about the generalisation of inflation in the coming months, while voting for status quo on interest rates earlier this month, according to MPC minutes. The Reserve Bank of India (RBI) on Friday released the minutes of meeting of the Monetary Policy Committee (MPC) held during June 3-5. Other five members of the panel too voted for keeping the benchmark interest interest rate unchanged. The RBI kept the repo rate unchanged at 5.25 per cent and also announced a raft of measures to attract foreign capital and support the rupee amid growing risks to growth and inflation from the prolonged West Asia conflict. Malhotra opined that there was high uncertainty in the assumptions made for projections of both inflation and growth on account of several reasons the duration of the conflict and the disruption in supply chains, the intensity and geographical spread of monsoon and its impact on energy, food and other commodity ..

Banks' demand muted at RBI's VRR auction despite lower surplus liquidity

The demand from banks remained muted at the Reserve Bank of India's (RBI) three-day variable rate repo (VRR) auction held on Friday, indicating limited demand for short-term funds from banks. The central bank received bids worth Rs 16,750 crore from banks at the VRR auction against the notified amount of Rs 1 lakh crore. The RBI accepted the entire amount at the auction at a cut-off and weighted average rate of 5.26 per cent. Liquidity conditions in the banking system remained in surplus, though at a lower level. According to the latest data available with the RBI, systemic liquidity surplus stood at around Rs 19,163.11 crore as on June 18. The liquidity position improved marginally compared with the previous day but remained lower, reflecting tighter conditions in the banking system. The muted participation in the VRR auction indicates limited demand for short-term funds from banks despite the RBI providing liquidity support through variable rate repo operations. The VRR auctio

India's short-bond rally may lose steam as RBI drains excess cash: Analysts

Expectations of cash withdrawal operations and a possible increase in banks' cash reserve ratio are seen limiting further gains in short-term bonds

RBI steps up dollar buying to rebuild reserves, manage forward book

The central bank is using the rupee's recent strength to replenish foreign exchange reserves and manage its large short dollar forward position, dealers said

RBI cancels licence of Karnataka's Shree Mahalaxmi Co-op Credit Bank

The Reserve Bank has cancelled the licence of Karnataka-based Shree Mahalaxmi Urban Co-operative Credit Bank due to its worsening financial position. The Registrar of Co-operative Societies, Karnataka has also been requested to issue an order for winding up the bank and appoint a liquidator, the Reserve Bank of India (RBI) said in a statement on Thursday. On liquidation, about 97.9 per cent of depositors would receive full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC). Giving reasons for cancellation of the licence, the RBI said the lender does not have adequate capital and earning prospects and does not comply with certain provisions of the Banking Regulation Act, 1949. "The bank with its present financial position would be unable to pay its present depositors in full," it said, and added continuation of the bank will be prejudicial to the interests of its depositors. Consequent to the cancellation of its licence, Shree Mahalaxmi Urban .

Citigroup scraps calls for RBI hikes as Iran deal cools price risks

India, which is heavily reliant on oil imports from the West Asia, faces headwinds from higher energy prices as well as forecasts of a weaker monsoon season as El Niño weather phenomenon takes hold

RBI not in favour of offshore settlement for govt bonds despite tax changes

The RBI had previously explored allowing settlement through offshore platforms to expand the foreign investor base for local currency debt, at a time when overseas interest was subdued

RBI liquidity measures drive steep decline in CD rates across tenors

Banks have begun pricing in stronger liquidity conditions after RBI measures to attract foreign inflows, reducing funding pressures and lowering short-term borrowing costs

Low-cost AI models are fuelling India's growing deepfake fraud threat

Customised applications built on open-source AI models are enabling sophisticated deepfake frauds at lower costs, raising concerns across banking, fintech and digital platforms

RBI injects ₹72,300 crore as advance tax outflows squeeze liquidity

Surplus liquidity fell to ₹23,881.21 crore on June 16 from ₹1.51 trillion a day earlier; overnight rates trade above repo rate

Turning the tide: India must address fundamental gaps in external account

Easing West Asia tensions may stabilise India's external accounts, but policymakers must focus on boosting FDI, exports and long-term capital inflows

RBI eases capital norms on ECLGS 5.0 loans with lower risk weight

The central bank has allowed a zero-risk weight on a large portion of ECLGS 5.0-guaranteed loans, reducing capital requirements for lenders under the scheme

NBFCs can distribute insurance products without seeking RBI approval

New framework permits insurance distribution subject to Irdai approval and lays down safeguards for sale of third-party financial products

RBI tightens norms on bundled products; lenders to refund for mis-selling

New framework mandates explicit customer consent, bans dark patterns and requires lenders to compensate customers in cases of mis-selling

FCNR (B) inflows to help replace costly bulk deposits, aid bank margins

Expected inflows could help narrow the credit-deposit gap

RBI imposes restrictions on Mogaveera Co-operative Bank for 6 months

The Reserve Bank has imposed several restrictions on Mogaveera Co-operative Bank, Mumbai, including capping withdrawals at Rs 1 lakh, amid its deteriorating financial position. The restrictions are effective from the closure of business hours on Friday for a period of six months and are subject to review, the Reserve Bank of India (RBI) said in a statement. The cooperative bank cannot grant or renew any loans and advances, make any investment, incur any liability, including borrowing of funds and acceptance of fresh deposits, the statement added. "Considering the bank's present liquidity position, the bank has been directed to permit withdrawal of a sum not exceeding Rs 1 lakh from savings bank or current accounts or any other account of a depositor ...," it added. RBI continuously engaged with the Board and senior management of the bank for improvement in its functioning, the central bank said. "However, lack of concrete efforts by the bank to address the supervisory concerns an

SBI, Bank of Baroda plan first dollar bonds under RBI subsidy window

Both banks are targeting to raise around $500 million through five-year dollar bonds

Banking shares in demand; HDFC Bank, BoB, Union Bank gain up to 3%

In the past one week, the Nifty Bank outperformed the market by gaining nearly 3%, as against 0.05% decline in the Nifty 50.