Page 21 - Reserve Bank Of India

RBI to conduct seven-day VRRR auction on Friday to mop up liquidity

The average liquidity surplus in the system over the past two weeks-reflected by the daily absorption by the RBI-was around Rs 2.5 trillion

PSL norm easing provides limited room for SFBs to make gains: CareEdge

RBI cuts priority sector lending target for Small Finance Banks from 75 to 60 per cent starting FY26, easing compliance burden but offering limited short-term profit

Sign agreement locker agreement promptly, buy cover for valuables

Customers may face service interruption if they don't sign agreement after multiple deadline extensions

RBI relaxes PSL norms to help SFBs de-risk, diversify loan portfolio

RBI lowers PSL target to 60% for SFBs, unlocking Rs 40,000 crore for lending to secured segments such as LAP and personal loans and aiding transition to universal banks

India's outward FDI declines to $2.83 billion in May, shows RBI data

India's outbound FDI declined in May as equity and guarantees fell sharply while debt commitments surged compared to last year and the previous month

Limit on duration for state debt STRIPS may dent demand, say insurers

STRIPS allow dealers to sell principal and interest payments independently, enhancing liquidity in the state government securities by enabling distinct trading of these components

Neutral stance gives flexibility to move up or down: Nagesh Kumar

Since the February 2025 MPC, the RBI has started to support growth by cutting policy rate

Business Standard CEO Poll: Wars, trade frictions test biz confidence

75% of CEOs are "cautiously optimistic" about the future

Policy easing call this cycle to be more data-dependent: MPC member Saugata

This (West Asia conflict) is just one of the sources of uncertainty, albeit the 800 pound gorilla at the moment

Good show by banks as most register a rise in profit, but challenges ahead

Overall, public sector banks have put up a better show than private banks on most parameters

Final RBI norms on project financing positive trigger for the PFC

Additional provisions forDate of Commencement of Commercial Operations deferred standard assets are reduced to 0.375 per cent-0.5625 per cent per quarter vs. 2.5 per cent for cumulative deferments

RBI's liquidity measures drive short-term bond rally, widening yield spread

The yield spread between the three-year government bond and benchmark 10-year bond has increased by more than three times to 48 basis points, against 15 bps at the start of FY26

Reserve Bank of India eases provisioning rules for infrastructure loans

The Reserve Bank of India proposed in May last year that lenders should set aside 5% of the loan value for an infrastructure project being built to cover risks

RBI's new rule on gold-backed loan will lead to biz model adjustment: S&P

The RBI's new rules on lending against gold will lead to business model adjustment, and operational agility, service excellence will remain the key differentiator between lenders, S&P Global Ratings said on Thursday. Earlier this month, the RBI raised the loan-to-value (LTV) ratio for lending against gold to 85 per cent for borrowings under Rs 2.5 lakh from the present 75 per cent. The LTV ratio has been fixed at 80 per cent for loan amounts between Rs 2.5-5 lakh and 75 per cent for loans above Rs 5 lakh. Lenders have time until April 1, 2026, to prepare for the changes. In its report titled 'India's new rules on gold-backed loans may reshape the competitive landscape', S&P said the Reserve Bank of India's new rules on gold-backed loans will likely lead to business model adjustments in the country's booming lending niche. "In our view, operational agility and service excellence will remain the key differentiator between lenders," S&P said. S&P Global Ratings credit ...

BS Poll: On terminal policy repo rate, Street views are evenly split

The domestic rate setting panel had cut policy repo rate by 50 basis points to5.5 per cent in the June meeting, higher than market expectation of 25 bps

Standard Chartered faces RBI scrutiny over lapses in derivatives sales

The banking regulator has also flagged issues relating to Standard Chartered's maintenance of reserves and the accounting treatment of forward rate agreement trades in previous financial years

Supervisory Data Quality Index of commercial banks improves in March: RBI

Supervisory Data Quality Index of commercial banks has improved to 89.3 in March 2025 compared to 88.6 in the year-ago period, the Reserve Bank said on Wednesday. The RBI has created a Supervisory Data Quality Index (sDQI) that measures data quality in terms of the accuracy, timeliness, completeness and consistency in various key financial parameters, including bad loans, asset-liability and capital adequacy. The index will help the regulator to assess the financial health of commercial banks, including small finance banks. "The sDQI score of Scheduled Commercial Banks (SCBs) has improved in March 2025 as compared to March 2024," it said. The sDQI for SCBs covers 87 SCBs and their key returns, including return on asset liability and off-balance sheet exposures, return on asset quality, return on operating results, risk-based supervision return (RBS), and liquidity return. The entity-level sDQI score is arrived at by aggregating the scores for Accuracy, Completeness, Timeliness and

Transition woes: SFBs' long bumpy road to becoming universal banks

The RBI requires SFBs to provide a detailed rationale for their desire to convert into a universal bank. Those with a diversified loan portfolio will be preferred

SDL-based STRIPS: Use for duration matching, not for tactical gains

Invest for more than 12 months to enjoy favourable tax treatment

73% ATMs now dispense ₹100, ₹200 notes ahead of RBI's Sept 30 deadline

RBI directed banks in April 2025 to ensure 75 per cent of ATMs dispense ₹100 or ₹200 notes from at least one cassette by the September 30 deadline to improve access to small denominations