Page 34 - Reserve Bank Of India

$84 bn short book putting pressure on rupee, Asia's worst performer

The Reserve Bank of India had dollar repayments near a record high of $84.3 billion as of March as indicated by its net short forwards position

Rising US yield, weakening dollar are everyone's problem, says KIE

KIE flags rising tremors in US debt and dollar that could rattle global markets

RBI imposed penalties on 353 banks, other regulated entities in FY25

The Reserve Bank took enforcement action against regulated entities (REs) and imposed 353 penalties aggregating to Rs 54.78 crore in the fiscal ending March 31, 2025 for contraventions with provisions of statutes. The contraventions/non-compliance were related to cyber security framework in banks; exposure norms and IRAC norms; know your customer directions; frauds classification and reporting directions; reporting information on CRILC; and submission of credit information to credit information companies (CICs). "During 2024-25, the Department undertook enforcement action against REs and imposed 353 penalties aggregating to Rs 54.78 crore for contraventions/non-compliance with provisions of statutes and certain directions issued by the Reserve Bank from time to time," according to the RBI's Annual Report for the Year 2024-25 released on Thursday. RBI data showed that as many as 264 penalties amounting to Rs 15.63 crore were imposed on cooperative banks. Moreover, the RBI imposed ..

India's GDP expands 7.4% in Q4 to meet annual growth estimates of 6.5%

Nominal GDP for FY25 grew at single digit at 9.8 per cent to Rs 330.7 trillion, slightly higher than Rs 324.1 trillion factored in the Budget

FinMin suggests RBI to give relief for borrowers under ₹2 lakh gold loan

In April, the RBI released draft norms mandating, among other requirements, that borrowers furnish proof of ownership for the gold used as collateral

Banks set to miss fourth deadline to roll out cassette-swap system for ATMs

Banks, cash handling firms, and managed service providers are yet to work out the absorption of costs involved in the trade as well as the logistics of switching to the new system

Sixty one per cent of floating rate loans linked to EBLR as of Dec 2024

Meanwhile, loans linked to marginal cost of funds based lending rate (MCLR) has reduced to 36 per cent as of December 2024, Reserve Bank of India (RBI) annual report revealed

Fake ₹500 notes at six-year high in FY25, ₹2000 counterfeits fall: RBI

The number of counterfeit notes below ₹200 denomination also rose by 13.9 per cent YoY to 32,600 pieces

Currency circulation rises 5.8% as ₹2,000 note impact fades: RBI

RBI's annual report shows recovery in currency circulation post ₹2,000 note withdrawal, surge in e-rupee usage, and strong digital payment adoption in FY25

Reserve Bank of India lens on payment fintechs over misclassified merchants

Several payment aggregators are said to have misclassified merchants, typically in the retail category, under utility - a segment that traditionally draws lower interchange rates

Review of the monetary policy framework on RBI's agenda for FY26

Central bank also likely to assess liquidity level needed for policy transmission

Bank fraud cases fell in FY25, amount rose threefold to ₹36,014 cr: RBI

Most cases in digital payments involved ₹520 crore, says regulator in annual report

FPIs' investment in corporate bonds rises 11.4% in FY25: RBI report

Primary corporate bond issuances during the year rose by 16.1 per cent to ₹9.9 trillion, up from ₹8.6 trillion in 2023-24

IBC drives major behavioural shift in corporate credit culture: IIM-B study

The Insolvency and Bankruptcy Code has reshaped India's credit culture by instilling financial discipline among borrowers and strengthening corporate governance practices, according to a research study conducted by the Indian Institute of Management, Bangalore. The study is based on the comprehensive draws on a wide dataset covering corporate insolvency resolution proceedings sourced from the Insolvency and Bankruptcy Board of India for the period 20172023, financial data from CMIE Prowess from 2010 to 2024, and RBI data on non-performing assets over the same period. The study found that the IBC led to a sharp improvement in credit discipline, with a notable decline in overdue loan accounts and quicker repayment behaviour. The proportion of loans shifting from 'Overdue' to 'Normal' steadily increased post-IBC implementation, and the average duration accounts stayed in the 'Overdue' category shrank dramatically from as much as 248-344 days to as little as 30-87 days. Regarding the c

Lenders told to monitor gold loan portfolios, ensure checks in place: RBI

RBI urges banks and NBFCs to improve gold loan oversight, citing lapses in LTV monitoring, risk assessment, and auction transparency in its annual report

Insured deposits rise 7% to ₹96.7 trillion as of Sept 2024: RBI report

RBI annual report shows insured deposits rose to ₹96.7 trillion with 97.7% of accounts covered; DIF grew 15.2% while ₹476 crore in claims was settled in FY25

Corp bond secondary mkt daily turnover grows around 2K-cr in FY25: RBI

Corporate bond yields declined in FY25 but lagged G-sec yields, widening spreads; private placements led issuances and FPI limit usage dipped slightly, shows the RBI report

Disinflation path clouded by geopolitical, trade, weather volatility: RBI

CPI inflation dropped to 3.16% in April 2025, its lowest since July 2019, but the RBI warns of uncertainties from global conflicts, trade shifts and weather conditions

RBI to continue with supervisory measures for early risk identification

The Reserve Bank on Thursday affirmed its commitment to continue with its supervisory measures aimed at early identification of risks and vulnerabilities. The central bank would also focus on enhancing cyber resilience and capabilities of Supervised Entities (SEs) by implementing the recommendations of the inter-regulatory Working Group, which has uniform baseline cybersecurity guidelines for financial entities, it said in its annual report. It can be noted that over the last two-three years, the RBI has taken a slew of supervisory actions against entities, including business curtailment actions. "The Reserve Bank would continue with the supervisory initiatives aimed at early identification of risks and vulnerabilities, increasing the focus on the root cause of vulnerabilities, and harmonising the supervisory rigour across various segments of the financial system," the RBI said in its annual report. In the report, the RBI said the Indian banking sector is resilient, but added that

Currency printing expenditure rises 25% to ₹6,372.8 cr in FY25: RBI

The expenditure incurred on security printing during 2024-25 increased by nearly 25 per cent to Rs 6,372.8 crore as against Rs 5,101.4 crore in the previous year mainly due to increase in indent for printing of banknotes, according to the RBI's annual report released on Thursday. The value and volume of banknotes in circulation increased by 6 per cent and 5.6 per cent, respectively, during 2024-25. "During 2024-25, the share of Rs 500 banknotes at 86 per cent, declined marginally in value terms," said the RBI's Annual Report for 2024-25. In volume terms, Rs 500 denomination at 40.9 per cent, constituted the highest share of the total banknotes in circulation, followed by Rs 10 denomination banknotes at 16.4 per cent. The lower denomination banknotes (Rs 10, Rs 20 and Rs 50) together constituted 31.7 per cent of total banknotes in circulation by volume. The withdrawal of Rs 2000 banknotes from circulation, initiated in May 2023, continued during the year and 98.2 per cent of Rs 3.5