Page 2 - Reserve Bank

India remains anchor of stability in volatile world: RBI Guv Malhotra

India's macro-economic fundamentals have continued to remain very strong, and the country has become an anchor of stability in a volatile world, Reserve Bank Governor Sanjay Malhotra said on Friday. Speaking at Kautilya Economic Conclave 2025 here, the governor attributed the country's strong fundamentals to low inflation, good foreign exchange reserves, a narrow current account deficit, and the very strong balance sheets of our banks and corporates. "It is the combined efforts of the government's policy makers, regulators, and regulated entities. All in all, despite recent odds, the economy seems well settled into an equilibrium of resilient growth. This is quite a feat...makes India stand out as an anchor of stability in a volatile world," Malhotra said.

RBI unveils measures to support exporters amid 50% US tariff impact

The Reserve Bank on Wednesday announced a host of measures to help exporters tide over challenges posed by the imposition of 50 per cent tariffs by the US administration on Indian shipments. The measures include reduced paperwork and compliance burden for small exporters and importers. "The export sector is a vital part of India's economy," said RBI Governor Sanjay Malhotra, while announcing steps to further strengthen the sector and enhance ease of doing business for traders. One of the key measures is the extension of the time period for repatriation from foreign currency accounts of Indian exporters in IFSC, from one month to three months. In January 2025, the RBI had permitted Indian exporters to open foreign currency accounts with a bank outside India for the realisation of export proceeds. Funds in these accounts can be used for making import payments or have to be repatriated by the end of next month from the date of receipt of the funds. "It has now been decided to extend

ECL framework proposed to be implemented from April 1, 2027: RBI Guv

To enhance the resilience of the financial sector, the Reserve Bank on Wednesday announced that the expected credit loss (ECL) framework for provisioning is proposed to be made applicable to all financial institutions from April 1, 2027. Announcing the fourth bi-monthly monetary policy, RBI Governor Sanjay Malhotra said the ECL framework of provisioning with prudential floors is proposed to be made applicable to all Scheduled Commercial Banks (excluding Small Finance Banks (SFBs), Payment Banks (PBs), Regional Rural Banks(RRBs)) and All India Financial Institutions (AIFIs) with effect from April 1, 2027. "They will be given a glide path (till March 31, 2031) to smoothen the one-time impact of higher provisioning, if any, on their existing books," he said. The guidelines are expected to enhance credit risk management practices, promote better comparability of reported financials across institutions, he added. In January 2023, the RBI came out with draft guidelines for the adoption o

RBI drops 'restriction' on business overlap by banks & group entities

Withdrawal of proposal barring overlap between banks and NBFC subsidiaries offers relief to major lenders

RBI 'enabling framework' to enable banks to finance domestic firms' M&A

Indian banks are barred from such lending, pushing companies to rely on shadow lenders or bonds for financing

RBI keeps repo rate unchanged at 5.5%, revises GDP forecast to 6.8%

Governor Sanjay Malhotra projects softer inflation from GST cuts and food prices

RBI announces slew of measures to promote internationalisation of rupee

In a bid to promote the use of domestic currency for cross-border settlements, the Reserve Bank on Wednesday announced a slew of measures, including allowing banks to lend in Indian Rupees to non-residents from Bhutan, Nepal and Sri Lanka for bilateral trade. Observing that India has been making steady progress in the use of the Indian Rupee for international trade, RBI Governor Sanjay Malhotra said permission has been granted to Authorised Dealer banks to lend in Indian Rupees to non-residents from Bhutan, Nepal and Sri Lanka for cross-border trade transactions. Besides, he proposed to establish transparent reference rates for currencies of India's major trading partners to facilitate INR-based transactions. RBI has permitted wider use of Special Rupee Vostro Account (SRVA) balances by making them eligible for investment in corporate bonds and commercial papers. SRVA is an account opened by a foreign bank with an Indian bank to facilitate international trade settlements directly i

Govt appoints Shirish Chandra Murmu as RBI deputy governor, effective Oct 9

His appointment will take effect from October 9 for a period of three years

Shirish Chandra Murmu appointed RBI deputy governor, effective Oct 9

Shirish Murmu, currently an executive director at the RBI, will succeed Rajeshwar Rao, whose tenure ends on October 8

RBI asks states to spread borrowings across tenures as bond yields surge

In a meeting this week with state government officials, the RBI advised states to spread their borrowing across the yield curve

RBI mulls restricting shadow banks from duplicating parent businesses

The central bank has been watchful of potential blowups in the sector, and has warned shadow lenders it would not hesitate to take action against firms that pursue reckless growth

RBI to intensify scrutiny of bank auditors after governance lapses

With governance concerns at IndusInd and Karnataka Bank, RBI is expected to tighten its engagement with statutory auditors and examine the role of board sub-committees more closely

RBI accepts ₹97,315 crore in VRRR auction; cut-off rises to 5.49%

Market cautious ahead of expected ₹2 trn VRRR auction as call and TREP rates rise; overnight WACR climbs to 5.34%, RBI absorbs ₹97,315 crore against notified ₹1 trn

'Growth', guv's tie colour likely to signal rate moves: SBI's report

SBI explores correlations between policy language and RBI Governor's tie colours, suggesting subtle textual and visual cues may foreshadow monetary policy changes

IndusInd submits MD & CEO candidate list to RBI before 30 June deadline

Private lender IndusInd Bank has submitted three names for the MD & CEO role to the RBI after senior exits, with Axis Bank's Rajiv Anand reported to be the top choice

RBI extends interbank call money market timings by 2 hours from July 1

The revised timings for the call market will be 9:00 a.m. IST to 7:00 p.m. IST

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

RBI seeks market views on aligning call money rate with policy repo

The policy rate currently stands at 5.50 per cent, while the overnight call rate averages 5.30 per cent and the TREPS rate hovers near 5.20 per cent

Five-Star, RBL, Bandhan Bank rally up to 18% in 2 days post RBI policy

Capri Global, Five-Star Business, IIFL Finance, Bandhan Bank, Fedbank Financial, ESAF SFB and RBL Bank from the BSE Financial Services index have rallied between 5% and 14% in intra-day trade today.

CRR cut surprised mkts; RBI may await data before next rate move: Analysts

The policy, according to U R Bhat, co-founder & director, Alphaniti Fintech shows the RBI's confidence in inflation and other macro variables