Page 7 - Reserve Bank Of India

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.

Why India is opening the door wider to foreign investors in govt securities

Govt has completely eliminated capital gains tax and withholding tax on interest income for FPIs investing in GSec, and has expanded specified securities under FAR

Indian banks look to foreign funding to tap RBI's new capital inflow push

The lenders sought clarity from the Reserve Bank of India if they can use a portion of deposits collected from non-resident Indians as collateral

Dollar draw: Domestic banks raise their FCNR (B) deposit rates sharply

Major lenders have increased FCNR(B) deposit rates after the RBI offered to absorb hedging costs, a move aimed at attracting foreign currency inflows from NRIs

RBI cancels registration certificates of 135 NBFCs, most in West Bengal

The Reserve Bank of India (RBI) on Wednesday said it has cancelled the certificate of registration of 135 non-banking finance companies. These include companies such as Express Fincap House, Akshay Fiscal Services, Times Finance (P), Jupiter Projects (P), Jupiter Finvest, Essel Finance Business Loans, and Citiwide Financial Services. The majority of the NBFCs, whose certificates of registration were cancelled, had a registered office address in West Bengal, an RBI release showed. Separately, 13 non-banking finance companies have surrendered their certificates of registration to the central bank due to exiting the business or ceasing to be legal entities following amalgamation/merger/dissolution/voluntary strike. J. Thomas Finance, Econ-Super Sales, Hitesha Finance and Investment, Tinnevelly Tuticorin Investments, Carnex Vinimay, and Impact Leasing surrendered their licences due to exit from Non-Banking Financial Institution (NBFI) business, the release said. Further, Forerunner ..