RBI Policy

Consumer credit exposures of commercial banks and NBFCs (excluding housing, education, vehicle loans and loans secured by gold and gold jewellery) still attract a weighting of 125 per cent

The Reserve Bank of India (RBI) approved Kathpalia's term to be extended from March 24 this year to March 23, 2026, IndusInd said

The RBI has cautioned NBFCs on perpetual credit lines, citing risks of loan evergreening and financial instability, urging lenders to slow down issuance of such flexible credit products

Under the factoring arrangement, Tata Steel discounts its sales receivables with Tata Capital (TCL) arising from goods sold on credit to customers

This was the second swap auction by the central bank, after it infused $5 billion via a six-month swap on January 31

With reference to HSBC's financial position as on March 31, 2023, RBI found that the bank had outsourced the disposal or closure of anti-money laundering (AML) alerts to a group company

CreditAccess, L&T Fin, RBL Bank, Poonawalla Fincorp, Five-Star Business Finance, Ujjivan SFB, Shriram Finance, Cholamandalam, M&M Financial, AU SFB and Bandhan Bank were up in the range of 4% - 15%.

High frequency indicators, like vehicles sales, air traffic, steel consumption and GST E-way bills, point towards a sequential pickup in momentum of economic activity during the second half of the fiscal 2024-25 and sustain moving forward, RBI Bulletin said on Wednesday. However, a strong dollar, driven by US economic resilience and trade policy pivots, could exacerbate capital outflows from emerging economies, push risk premiums higher, and intensify external vulnerabilities, said an article on 'State of the Economy' published in RBI's February bulletin. Economic activity momentum is poised to be sustained, strong rural demand is expected to receive a further fillip from the robust performance of the agriculture sector. Urban demand is also poised for a recovery, tracking decline in inflation as well as a boost to disposable incomes from the sizeable income tax relief announced in the Union Budget 2025-26. "...high frequency indicators point towards a sequential pick-up in momentum

The Reserve Bank of India on Friday said 20 non-banking financial companies, including Reliance Commercial Finance and IDFC Limited, have surrendered their certificate of registration (CoR). Of these, two non-banking financial companies (NBFCs) have surrendered their CoR as they have exited from the non-banking financial institution business. These NBFCs are Manoway Investments Private Limited and Reliance Commercial Finance Limited. IDFC Ltd, IDFC Financial Holding Company Ltd and other 16 entities surrendered the CoR as it ceased to be a legal entity due to amalgamation or merger. Besides, the RBI cancelled the CoR of 17 NBFCs, the central banks said in another statement. These NBFCs whose licences were cancelled had their registered office in West Bengal. In a separate statement, RBI said it has restored the licence of Kamdhenu Finance Company Pvt Ltd after considering the orders passed by the Appellate Authority/Courts.

The Reserve Bank on Friday said it has imposed penalties totalling Rs 68.1 lakh on two banks -- Nainital Bank and Ujjivan Small Finance Bank -- for contravention of regulatory norms. A penalty of Rs 61.40 lakh was imposed on Nainital Bank Ltd for non-compliance with certain directions on Interest Rate on Advances' and Customer Service in Banks', RBI said in a statement. Further, RBI imposed a penalty of Rs 6.70 lakh on Ujjivan Small Finance Bank for non-compliance with certain directions issued by RBI on Loans and Advances - Statutory and Other Restrictions'. RBI also levied a penalty of Rs 5.80 lakh on Shriram Finance, a non-banking entity, for non-compliance with certain provisions, including Know Your Customer (KYC ) guidelines and directions on Data Format for Furnishing of Credit Information to Credit Information Companies'. The penalties are based on the deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement .

On Monday, the rupee slipped to an all-time low of 87.95 against the dollar, but the fall was limited as the RBI intervened by selling dollars in the spot market

The bank's advances reduced to 11.75 billion rupees as of March 31, 2024, from 13.30 billion rupees a year earlier. Its deposits rose to 24.36 billion rupees from 24.06 billion rupees

The repo rate cut of 25 basis points by the monetary policy committee (MPC) of the RBI will give a long-awaited relief on interest rates and support economic growth, according to experts. Chief Economist of Crisil Ltd, Dharmakirti Joshi, said that as expected, the MPC of the central bank cut rates for the first time on Friday since May 2020. The repo rate has been lowered by 25 basis points to 6.25 per cent. Joshi said the recent easing in consumer price index (CPI) inflation and the need to remain supportive of economic growth has moved the RBI to act in this regard. However, the MPC maintained the policy stance at 'neutral', which gives flexibility to remain data dependent and respond to exigencies, Joshi said. The MPC moves in the future will depend more on domestic inflation, he said. "Elevated rates have impacted India's GDP growth, while the budget for the next financial year is mildly supportive of growth, while continuing on the path of fiscal consolidation," he said. Jo

RBI Monetary Policy Highlights: RBI Governor Sanjay Malhotra announced a 25 bps cut in the repo rate -- from 6.5% to 6.25%

The government on Friday said so far the RBI has permitted 123 correspondent banks from 30 trading partner countries to open 156 Special Rupee Vostro Accounts (SRVAs) with 26 banks in India to promote bilateral trade in local currencies. The RBI has also entered into local currency settlement system arrangements with select trade partner countries like the UAE, Indonesia and Maldives for encouraging settlement of cross-border trade in rupee and the local bank of the partner country, Minister of State For Commerce and Industry Jitin Prasada said in a written reply to the Rajya Sabha. "As on date, RBI has permitted 123 Correspondent banks from 30 trading partner countries for opening of total 156 SRVAs with 26 AD (authorised deal) banks in India," he said. The government in consultation with the RBI, has taken several steps towards increasing the availability and acceptability of the domestic currency and use of other local currencies for cross-border transactions. This would enable

Markets Today Highlight: FMCG and PSU Bank shares bore the brunt of the selling on Friday after RBI, as expected, announced a 25 bps rate cut. Mid- and Small-cap indices finished on a mixed note.

RBI's decision to reduce the repo rates by 25 bps piggybacks on the recent taxation benefits announced in the Union Budget

The repo rate cut by 25 basis points by the monetary policy committee (MPC) of RBI announced Friday will give a long-awaited relief on interest rates and also be supportive of economic growth, according to experts. Repo rate is the interest rate at which the RBI lends money to commercial banks. Chief economist of Crisil Limited Dharmakirti Joshi said that as expected, the MPC of the central bank cut rates for the first time since May 2020. The repo rate has been cut by 25 basis points which now stands at 6.25 per cent. Joshi said that the recent easing in consumer price index (CPI) inflation and the need to remain supportive of economic growth has moved the RBI to act in this regard. However, the MPC maintained the policy stance at 'neutral', which gives flexibility to remain data dependent and respond to exigencies, Joshi said. The MPC moves in the future will depend more on domestic inflation, he said. "Elevated rates have impacted India's GDP growth, while the budget for the

RBI Monetary Policy: RBI MPC announced a repo rate cut to 6.25 per cent from 6.5 per cent amid slow economic growth and sticky inflation. Here is how investors should invest after RBI policy