Page 2 - Latest Updates on Cash Reserve Ratio
Short-term govt bond rates harden after incremental CRR guidelines
The yield on the one-year and two-year government bonds has edged up 8 basis points and 4 basis points respectively since August 10
 "Short-term govt bond rates harden after incremental CRR guidelines")
10% incremental CRR temporary, will drain out Rs 1 trn from system: RBI
Short-term rates on money market instruments like call money rates, treasury bills and commercial paper are likely to increase by 15-20 bps in the near term: ICRA
 "10% incremental CRR temporary, will drain out Rs 1 trn from system: RBI")
Incremental CRR move to help suck out Rs 1 trn of excess liquidity: Das
While announcing the move, Das had said the return of Rs 2,000 notes since May 19 this year, has led to instances of excess liquidity for which the move was being introduced
 "Incremental CRR move to help suck out Rs 1 trn of excess liquidity: Das")
Incremental CRR to suck out liquidity of over Rs 1 trn: RBI governor Das
During the RBI MPC announcement, Shaktikanta Das had said that I-CRR is intended to absorb the surplus liquidity generated by various factors, including the return of Rs 2,000 notes to the banks
 "Incremental CRR to suck out liquidity of over Rs 1 trn: RBI governor Das")
Banks to maintain 10% additional CRR from Aug 12 as temporary measure: RBI
Action is part of central bank's efforts to reduce surplus liquidity, it says after monetary policy announcement
Banks want CRR, SLR, priority sector exemption for sovereign green bonds
Suggest green masala bond to attract foreign investors
 "Banks want CRR, SLR, priority sector exemption for sovereign green bonds")
RBI imposes penalty of Rs 13.9 lakh on Mynd Solutions for non-compliance
Non-promoter shareholding in the company exceeded the 10% ceiling prescribed for TReDS operators
 "RBI imposes penalty of Rs 13.9 lakh on Mynd Solutions for non-compliance")
ICICI Bank raises Rs 5,000 cr via infrastructure bonds for funding projects
The base issue size for ICICI Bank's infra bonds was Rs 1,000 crore with green shoe option of Rs 4,000 crore
 "ICICI Bank raises Rs 5,000 cr via infrastructure bonds for funding projects")
SBI's maiden infra bond issue for Rs 10,000 cr oversubscribed 3.27 times
10-year paper priced at 7.51%, or about 17 bps above benchmark g-sec yield
 "SBI's maiden infra bond issue for Rs 10,000 cr oversubscribed 3.27 times")
SBI likely to raise Rs 10,000 crore through infrastructure bonds
The planned issuance worth Rs 10,000 crore includes a greenshoe option of Rs 5,000 crore, the bank said
 "SBI likely to raise Rs 10,000 crore through infrastructure bonds")
Banks can boost liquidity by drawing down on CRR: RBI governor Das
The fall in the liquidity surplus is owing to multiple factors, including the RBI's interventions in the forex market and a sharp pick-up in bank credit growth, which is currently at nine-year highs
 "Banks can boost liquidity by drawing down on CRR: RBI governor Das")
ICICI Bank to raise Rs 10,000 cr via infra bonds in one or more tranches
Proceeds to be used for project financing, affordable housing
 "ICICI Bank to raise Rs 10,000 cr via infra bonds in one or more tranches")
How the RBI is creating conditions for foreign flows to come back to India
The RBI announced five measures on July 6 to further liberalise foreign exchange. The measures are aimed at creating a more enabling environment to attract dollars through banking deposits, ECB, FPI
 "How the RBI is creating conditions for foreign flows to come back to India")
SBI, ICICI Bank up interest rates on certain foreign currency bank deposits
According to SBI's website, the interest rate on US dollar category deposits with maturities up to 2 and 3 years are up by 85 basis points to 2.85 per cent and 3 per cent
 "SBI, ICICI Bank up interest rates on certain foreign currency bank deposits")
Ahead of inflation data, understanding how CPI is linked to RBI and markets
The Reserve Bank of India (RBI) hiked the benchmark interest rate, or repo rate, in May and then in June to control demand and liquidity in the economy, bringing CPI down
 "Ahead of inflation data, understanding how CPI is linked to RBI and markets")
RBI measures a step in right direction but forex inflows still seen limited
RBI announced five measures pertaining to the liberalisation of foreign exchange flows into India
 "RBI measures a step in right direction but forex inflows still seen limited")
Shifting cycle
Investors should be prepared for further turmoil
 "Shifting cycle")
Policy signals calibrated tightening
During the gradual transition to a neutral stance, maybe over the next couple of months, liquidity management will play an important role in transitioning the WACR closer to the repo rate
Macroeconomic adjustment
Risks for growth and asset prices have increased
RBI monetary policy review: Further repo rate hikes clearly on the cards
The Governor's reminder that the repo rate is still below the pre-pandemic level served as a clear signal that more rate hikes lie ahead
 "RBI monetary policy review: Further repo rate hikes clearly on the cards")
