Page 3 - Reserve Bank Of India

Banks can extend collateral-free loans up to ₹20 lakh to MSEs: RBI

The RBI on Monday said banks can extend collateral-free loans up to Rs 25 lakh to Micro and Small Enterprises (MSEs) units on the basis of their good track record and financial position. The Reserve Bank of India (RBI) has amended the directions related to 'Lending to Micro, Small & Medium Enterprises (MSME) Sector'. The amendments have been carried out to enhance the extant Collateral-Free Loan Limit for Micro and Small Enterprises (MSEs) to Rs 20 lakh, it said. "Banks may, on the basis of good track record and financial position of the MSE units, increase the limit to dispense with the collateral requirement for loans up to Rs 25 lakh as per their internal policy," the RBI said. Also, banks may avail the benefit of Credit Guarantee Scheme cover, where applicable, it added. "However, accepting gold and silver as collateral pledged voluntarily by borrowers for loans sanctioned by the banks upto the collateral-free limit, will not be construed as a violation of the above mandate,"

Stable environment: Base-year revisions may not have immediate implications

The RBI's MPC held rates steady, citing improved growth and benign inflation, while announcing regulatory steps to boost credit flow and strengthen digital payment safety

Co-operative banks: RBI's inclusivity pitch runs into regulatory dilemma

The RBI needs to think out of the box vis-a-vis cooperative banks

Surge in gold loans not a cause for concern, says Reserve Bank of India

Banks are shifting from unsecured loans to gold-backed lending amid rising gold prices, but RBI says low LTVs and limited exposure pose no systemic risk

PSL classification issue is not a system-wide problem: RBI Governor 

The Reserve Bank of India said recent issues flagged in priority sector lending classification at some large private banks are isolated cases, and announced plans to issue revised instructions

RBI nod to direct bank lending to Reits may expedite asset growth

Industry executives note that REITs raise debt by issuing securities subscribed to by mutual funds and non-banking financial companies (NBFCs)

RBI moves to push credit delivery, doubles collateral-free loans to MSMEs

The central bank has proposed allowing banks to lend to REITs and doubled collateral-free loan limits for MSMEs, signalling a stronger push to widen credit access amid robust loan growth

RBI to roll out risk-based premium model for deposit insurance from April

The Reserve Bank of India will replace the flat-rate deposit insurance premium with a risk-based framework from April 2026, aiming to reward stronger banks and encourage better risk management

RBI eases norms for small NBFCs, exempts non-customer-facing firms

The Reserve Bank of India has eased compliance for low-risk NBFCs by exempting certain non-customer-facing firms from registration and proposing to drop prior approval norms for branch expansion

Macro fundamentals, including external sector, are strong and healthy: RBI

RBI Governor Sanjay Malhotra says India's macro fundamentals and external sector remain robust as borrowing, liquidity and rate outlook stay comfortable

RBI sets up committee to review business correspondent guidelines

The Reserve Bank of India has constituted a committee to review the regulatory framework for business correspondents, with draft guideline amendments to be released soon for public consultation

RBI proposes Rs 25,000 compensation for small-value digital frauds

Under a proposed one-time framework, RBI plans to compensate customers for small-value digital frauds up to Rs 25,000, with the central bank and banks sharing the cost

RBI announces stricter fraud rules, mis-selling curbs to protect bank users

The central bank proposed draft rules to curb mis-selling, cap losses from unauthorised digital transactions and tighten recovery practices as part of a wider push to strengthen customer protection

India not selling US Treasury holdings despite forex fluctuations: RBI Guv

The country's holdings of long-term US debt had dropped to a five-year low of $174 billion as of November, down 26 per cent from a 2023 peak, according to US government data

Govt bond yields harden by 4 bps after RBI MPC keeps policy rate unchanged

The 10-year benchmark yield rose to 6.69 per cent after the MPC held rates steady and the RBI refrained from announcing fresh OMOs, despite market expectations

RBI MPC keeps repo rate unchanged at 5.25%, maintains 'neutral' stance

RBI MPC February meeting: In its policy meeting, which took place between February 4-6, the committee continued with the 'neutral' stance

RBI's $10 billion FX swap auction garners 2.5 times subscription

The central bank accepted 118 bids at the FX swap auction with the premium cut-off set at 7.48 rupees. A total of 317 bids worth $25.03 billion were received

Lenders ask RBI to relax liquidity rules amid growing loan demand

Lenders are seeking permission to free up some of the cash they have to park with the Reserve Bank of India for short-term financial stress requirements

RBI MPC meet begins: Will RBI keep rates unchanged after US trade deal?

The RBI's Monetary Policy Committee has started its three-day meeting today; the central bank will announce its policy decision, including on interest rates, on February 6

RBI to start 3-day deliberations on interest rate from Wednesday

The Reserve Bank's rate-setting panel will start its three-day brainstorming for the next bi-monthly monetary policy on Wednesday in the backdrop of growth-focused Union Budget, low inflation and more recently the long-awaited India-US trade deal ending prolonged uncertainty on the external front. Experts are of the view that the Reserve Bank of India (RBI) has already reduced the key short-term lending rate (repo) by 125 basis points since last February, and may go for status on rates as there are no pressing concerns on either growth or inflation. However, some are of the opinion that the central bank may go for one more rate to further borrowing cost. The decision of RBI Governor Sanjay Malhotra-headed six-member Monetary Policy Committee (MPC) will be announced on Friday. "The MPC looks likely to hold on to the repo rate and this could also be the end of the rate-cutting cycle," Madan Sabnavis, Chief Economist of Bank of Baroda, said. The reason is that the bond yields have ..