Page 4 - Reserve Bank Of India

Ways and Means Advances limit for Delhi govt fixed at ₹890 crore: RBI

The Reserve Bank on Friday fixed the Ways and Means Advances (WMA) limit for the Delhi government at Rs 890 crore to help it meet any temporary mismatch in receipts and payments. Earlier this week, the central bank entered into an agreement with the Government of the National Capital Territory of Delhi (GNCTD) to conduct the city government's general banking business, effective from Friday, January 09, 2026. "The WMA limit for GNCTD has been fixed at Rs 890 crore, effective from January 09, 2026," the Reserve Bank of India said in a statement. Accordingly, the revised aggregate WMA limit for State Governments / Union Territories will be Rs 61,008 crore as against the existing limit of Rs 60,118 crore, it added. WMA are temporary advances given by the RBI to the central, state governments and Union Territories to tide over any mismatch in receipts and payments.

RBI should hold rates as growth is strong, inflation remains low: PwC

Making a case for status quo on interest rate by the RBI, PwC Partner and Economic Advisory Services leader Ranen Banerjee said that any cut at this time would amount to "wasting a bullet" in an environment when growth is robust and inflation is benign. The Reserve Bank is unlikely to cut key policy rate in the next Monetary Policy Committee (MPC) meeting next month, he said. The meeting of MPC headed by Reserve Bank Governor Sanjay Malhotra is scheduled for February 4-6, 2026. This will be the last meeting of the current fiscal. If the growth numbers are holding up and base year revision is also on the anvil, which is expected to provide better estimates, then there is no need for rate cut, he told PTI. Observing that private capex is not interest rate sensitive, Banerjee said, there will be pick up when capacity utilisation is close to 85 per cent. "I do not think that the private capex is held up because of the interest rate. It is because there is an uncertainty of demand or t

Rupee falls to 90.03 against the US dollar amid 500% US tariff risk

The rupee settled at 90.03 per dollar, against the previous close of 89.89 per dollar

Reserve Bank of India mulls fresh steps to provide relief to exporters

Earlier this week, US President Donald Trump warned that tariffs could rise further unless India curbs its Russian oil imports, escalating the pressure as trade talks between the two countries drag on

The Great Revival: A book that captures the CG Power turnaround story

How an out-of-the-box approach helped the company come back from bankruptcy

India's 7.4% GDP growth looks solid but faces a narrower margin for error

In absolute terms at current prices, the economy is projected to attain the size of ₹357.14 trillion, which is marginally higher than the level assumed in the 2025-26 Budget

Rupee strengthens below 90/$ amid RBI intervention via dollar sales

The local currency settled at 89.88 per dollar, against the previous close of 90.17 per dollar, after touching an intraday high of 89.83 per dollar

Govt bond yields soften on better-than-expected cut-offs on SDLs

The yield on the benchmark 10-year government bond settled at 6.61 per cent, against the previous close of 6.64 per cent

Gold loan: Avoid maxing out on loan limit, maintain 20% valuation buffer

EMI-based repayment steadily reduces the principal and lowers LTV, offering better protection against price volatility than the bullet option

Supervisory data quality index of banks improves to 90.7 in Sept 2025

The overall sDQI score for SCBs improved to 90.7 in September 2025, up from 89.9 in June 2025

2026 outlook for banking sector: NIMs stable, liquidity challenge looms

After margin pressure and muted credit in 2025, banks enter 2026 with hopes of credit revival, stable asset quality and more investments, though funding and deposits remain key risks

Gains from decontrol: Removing constraints offers substantial gains

While factories faced headwinds, Indian finance gained ground in the eyes of global strategic capital

Reasonable valuations, earnings revival to aid small-cap funds in 2026

After underperforming in 2025, small-cap funds may see a turnaround as valuations become more reasonable and earnings revive; existing investors should stay invested, while new ones enter gradually

98.41% of ₹2,000 banknotes withdrawn since May 2023 returned: RBI

The Reserve Bank of India (RBI) on Thursday said 98.41 per cent of the Rs 2000 banknotes in circulation have been returned. The RBI had announced the withdrawal of Rs 2000 denomination banknotes from circulation on May 19, 2023. "The total value of Rs 2000 banknotes in circulation, which was Rs 3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of Rs 2000 banknotes was announced, has declined to Rs 5,669 crore at the close of business on December 31, 2025," it said. Thus, 98.41 per cent of the high-value banknotes in circulation as of May 19, 2023, have since been returned. A facility for deposit and/or exchange of the Rs 2000 banknotes was available at all bank branches in the country up to October 7, 2023. From October 9, 2023, the RBI's 19 Issue Offices are also accepting Rs 2000 banknotes from individuals/entities for deposit into their bank accounts. Apart from this, members of the public are sending Rs 2,000 banknotes through India Post from any po

RBI reiterates cautious stance on crypto assets, stablecoins for stability

RBI reiterated its cautious view on crypto assets and stablecoins, stressing that CBDCs should remain the anchor of trust and the core settlement asset in the monetary system

RBI flags high-cost distribution pressures in insurance sector growth model

The Reserve Bank has flagged structural pressures in the insurance sector, saying premium growth is being increasingly driven by high-cost distribution-led strategies of insurance companies rather than operating efficiency. While posing no near-term systemic risks, the surface-level stability masks emerging structural pressures that could weigh on medium-term sustainability and coverage expansion, RBI said in its latest financial stability report. "A primary pressure is the persistence of a high expense structure, particularly the acquisition costs. Premium growth has been increasingly driven by high-cost distribution-led strategies rather than operating efficiency," the report said. It further said that while in the life insurance sector, frontloaded acquisition costs limited the extent to which scale efficiencies are passed on to policyholders. Furthermore, expected benefits from digitisation remain unrealised. "From a financial stability perspective, continuously elevated expen

RBI relaxes risk-weight rules for NBFC infra loans, revises thresholds

However, RBI denied requests to dilute termination protection clauses, calling them critical for safeguarding lenders' interests in the event of early project termination

January 2026 bank holidays: Check state-wise closures in India this month

January 2025 holiday calendar, which includes a list of bank and national holidays, is now available. For final confirmation, it is recommended to cross-check with institutional and state calendars

Yield curve steepens due to heavy sovereign issues; long-end demand weakens

RBI's FSR says higher G-Sec and SGS supply and softer demand from insurers and pension funds are keeping long-term yields elevated even as short rates fall on easing and liquidity

Over 70% of fintechs' loan book unsecured: Financial Stability Report

Unsecured personal loans dominate fintech lending, with younger borrowers accounting for over half the exposure, as the RBI highlights growth and asset quality trends