Page 6 - Reserve Bank

Policy approach: How RBI is taking a selective and cautious stance

In the context of US elections and possible uncertainty, Mr Das said the Indian economy and the financial sector were well placed to deal with any spillover impact from global economy

RBI's upbeat growth estimates create confusion, concern among economists

The central bank has stuck to its forecast that India's economy will expand 7.2 per cent in the year ending March 2025

RBI Summer Internship 2024: Registration starts at official website

RBI has started the Summer Internship 2024 registration process on Oct 15, 2024. Students can apply for internship programme, and the direct link is available on official website of RBI at rbi.org.in

RBI's Monetary Policy Committee meet: Date, time, members, and agenda

RBI began its fourth Monetary Policy Committee meeting for the ongoing financial year on Monday. Key announcement from the meet will be announced on Oct 9

Reconstituted RBI MPC with 3 new members to begin maiden meeting on Mon

Newly reconstituted Monetary Policy Committee of the Reserve Bank of India with three new appointed external members will commence its maiden meeting on Monday. The outcome of the three-day meeting of the MPC would be revealed by MPC Chairman RBI Governor Shaktikanta Das on next Wednesday (October 9). It is widely anticipated that the MPC will keep interest rate unchanged despite change in composition of external members. This would be tenth time in a row when the Reserve Bank of India (RBI) will maintain status quo as far as policy rate is concerned. The MPC last revised interest rate in February 2023, when it was hiked to 6.5 per cent. Apart from the chairman, the other internal members are RBI Deputy Governor in charge of monetary policy Michael Debabrata Patra and Executive Director monetary policy department of RBI Rajiv Ranjan. The government on Tuesday appointed Ram Singh, Saugata Bhattacharya and Nagesh Kumar as external members to the MPC. Singh, who is director of the .

RBI rejects Canara Bank's bid for credit card subsidiary amid concerns

The decision by the Reserve Bank of India comes amid increasing concerns over the growing volume of unsecured loans in the banking sector

Sovereign green bonds trading at IFSC to start in 2nd half of FY25: RBI Guv

Reserve Bank Governor Shaktikanta Das on Saturday said trading of sovereign green bonds can commence at the International Financial Services Centre in Gujarat during the second half of the current fiscal. "We are in discussion with the IFSC, it will be operationalised very soon. I think in the second half (of the current financial year), it will be possible," Das said. In April, the Reserve Bank of India (RBI) had announced that it will issue a framework to enable the trading of sovereign green bonds in GIFT City. The government has been raising funds through green bonds since 2022-23 and has raised a total of Rs 36,000 crore in the last two years. So far in the current financial year, the government has raised only Rs 1,697 crore out of the stipulated Rs 12,000 crore scheduled to be raised in the first half ending in September through green bonds as it did not find favourable bids. Asked about the tepid response from investors to such bond issuance, Das said, "as the debt manager

RBI watchers on guard for shift as Guv Das takes decision on interest rate

Global markets have been roiled in recent weeks by central bank action, with the Bank of England cutting interest rates last week, the Bank of Japan hiking, and the Federal Reserve preparing to ease

RBI begins discussions on monetary policy amid no rate change expectations

Reserve Bank's rate-setting panel started its three-day deliberations for the next set of bi-monthly monetary policy amid expectations of no change in benchmark interest rate in view of concerns on inflation and economic growth remaining steady. The decision of the RBI Governor Shaktikanta Das-headed six-member Monetary Policy Committee (MPC) will be announced on Thursday. The MPC may also refrain from rate cut as economic growth is picking up, notwithstanding the elevated interest rate of 6.5 per cent (repo rate), said experts. Retail inflation based on consumer price index (CPI) increased to a four-month high of 5.08 per cent in June as food items, including vegetables became dearer. The government will release the data for July later this month. "RBI is likely to pause as food price movements currently is imparting a positive bias to RBI 4.5 per cent projection...likely prospects of an excess rainfall in August and September could also have a debilitating impact on food prices,"

RBI proposes regulatory principles for managing model risks in credit

The Reserve Bank on Monday proposed to lay down principles for management of model risks in credit for banks and other regulated entities with a view to ensuring prudence and robustness. Regulated Entities (REs) generally use various models as part of their credit management, including for credit appraisal, borrower scoring, pricing, and risk management, among others. Inherently, model outputs are exposed to uncertainties as they are based on assumptions which may not manifest in the envisaged ways and may take different forms in a real-world scenario, the RBI said in a draft circular on Regulatory Principles for Management of Model Risks in Credit'. This potentially exposes REs to model risk, which has implications on prudential aspects of credit risk management, compliance and reputational risk. With a view to ensuring prudence and robustness, in the use of such models, RBI proposed to lay down certain broad regulatory principles which should be adopted by REs. "REs shall put in

RBI releases draft rules for Aadhaar based payment operators to avert fraud

The Reserve Bank on Wednesday came out with draft rules on the due diligence to be carried out for Aadhar-enabled Payment System (AePS) touchpoint operators by lenders, in order to prevent frauds. The proposals focus on streamlining the process for onboarding of AePS touchpoint operators and on-going due diligence, as per an official statement on the central bank website. RBI has proposed that an acquiring bank shall carry out due diligence of all AePS touchpoint operators onboarded by it and also carry out updation of KYC (Know Your Customer) in cases where an AePS touchpoint operator has not performed any financial transaction for a continuous period of six months. It also asks the NPCI (National Payments Corporation of India) and acquiring banks to ensure that any AePS touchpoint operator is onboarded only by one acquiring bank. On the ongoing due diligence front, it asks for transaction limits to be set for AePS touchpoint operators based on their risk profile and transactions

SBI Fund sees Union Budget 2024 arming Reserve Bank with liquidity tool

MSS bonds are issued by the government outside the normal borrowing program to enable the Reserve Bank of India soak up liquidity

Digital currency transactions slump after reaching initial RBI's target

RBI started a pilot for the e-rupee, devised as a digital alternative to physical cash, in December 2022, and successfully reached a target of 1 million retail transactions per day

3 entities complete test phase of RBI regulatory sandbox's fourth cohort

Regulatory sandbox refers to live testing of new products or services in controlled regulatory environment for which regulators may permit certain regulatory relaxations for limited purpose of testing

RBI's reserve maintenance system for banks fails on Tuesday, say traders

Indian banks need to park 4.5 per cent of their net deposits with the central bank and must maintain at least 90 per cent of this requirement every day

RBI Policy: What are the expectations from first MPC meet after elections?

Following the outcome of the Lok Sabha Elections, concerns have escalated over a potential deceleration in fiscal consolidation coupled with amplified welfare spending

RBI Monetary Policy June 2024: Check date, time and what to expect

RBI Policy: The six-member committee tasked with setting India's benchmark interest rate, the repo rate, will meet from June 5 to June 7

RBI expected to hold rates on Friday as economic growth stays robust

The MPC last changed rates in February 2023, when the policy rate was hiked to 6.5%

RBI's Monetary Policy Committee second meeting of FY25 from June 5-7

A poll by Bloomberg revealed that economists expected the India's central bank to maintain the repo rate at 6.5 per cent for the eight consecutive time

Tracking the rise of Reserve Bank of India's physical gold reserves

In the annual report for 2023-24, RBI has said - of the 514.07 metric tonne of gold held as asset of Banking Department, 100.28 metric tonnes held in India and 413.79 metric tonnes held abroad