Banking Regulation

PM Modi pitches for studying newer banking structure to fund future needs

Prime Minister Narendra Modi on Monday said there is a need to study "newer banking structure" with the evolving changes in the financial industry's landscape. Speaking at the inauguration event for the commemoration of 90 years of the Reserve bank of India (RBI) here, Modi said there may be a requirement for newer ways of "financing, operating and business models" in the changing landscape. The PM said the banking industry needs to move forward to ensure that it can fund the credit needs of the projects necessary for the country's future growth. There are some challenges confronting the industry along with this, including artificial intelligence and blockchain, which are changing the face of banking, cyber security amid the increasing reliance on digital banking and innovations like fintechs, he said. "In such a situation, we need to think about the changes that will be required in the country's banking sector and its structure," Modi said in his address to the audience, which ...

Global banking watchdog to crack down on 'window dressing' by big banks

The rules were introduced a decade ago after many lenders were bailed out by taxpayers in the global financial crisis

Not mentioning L/C no. on invoice is not a discrepancy, says expert

Provided all the stipulated documents are received by the issuing bank, the absence or mistyping of a credit number does not constitute a reason for refusal

Fintech can emerge as substitute for traditional banking, says RBI's CAFRAL

India's fintech sector can potentially emerge as a substitute for traditional banking in the near future, said a report by CAFRAL, while stressing the need for a "quick and nimble" regulation to ensure growth of digitalisation and financial stability. Reserve Bank Governor Shaktikanta Das on Tuesday released the first flagship publication of the Centre for Advanced Financial Research and Learning (CAFRAL) with the title India Finance Report 2023 (IFR 2023). CAFRAL, a not-for-profit organisation, was set up in 2011 as an independent body by the RBI to promote research and learning in banking and finance. The report provides fresh insights into the non-banking financial sector in India that can aid all stakeholders, including regulators and policymakers, in securing a greater understanding of the sector and a wider appreciation of its niche strengths and opportunities. In his note to the report, RBI Deputy Governor Michael Debabrata Patra said the publication is sensitive to the ...

Lenders prefer salaried individuals with steady income for personal loans

While more than 25% of salaried borrowers have an excellent credit score of 770 and above, only 14% of self-employed consumers have such strong credit score profiles

Aye Finance eyes 70% increase in FY24 borrowing at Rs 3,400 crore

Non-bank lender Aye Finance on Thursday said it is aiming for a 70 per cent jump in its FY24 borrowing at Rs 3,400 crore as against the Rs 2,000 crore done in FY23. The company which focuses on lending to micro enterprises has already raised Rs 2,100 crore of debt till now, and is confident of achieving the overall target for the ongoing fiscal, as per an official statement. It has made the borrowings which are deployed for onlending - from global and Indian banks and financial institutions, the statement said. Its chief financial officer Krishan Gopal said the lenders to the company have got comfort and confidence because of its repayments record, and have extended multiple lines. The company, which counts on CapitalG, Elevevation Capital, Lightrock, Alpha Wave, A91 Partners and MAJ Invest as equity investors, and HDFC Bank, SBI, Nabkissan, DCB Bank, FMO, Blue Orchard and Triodos among lenders, focuses on new to credit micro enterprises looking for small ticket loans but not havi

Banking giant Wells Fargo prepares for wealth battle after $1 bn turnaround

When Chief Executive Officer Charlie Scharf took the reins at Wells Fargo in 2019, he quickly tagged the firm's wealth offerings as an area he'd seek to develop

RBI to brainstorm with bank directors on governance, risk issues on Monday

Topics would cover supervision, enhancing governance and enforcing regulations; role of board in governance and RBI's expectations on governance by banks are likely to figure in discussions

In search of binding ties: Lack of SRO will continue to haunt shadow banks

Legacy shadow banks continue to do business without a self-regulatory body. This is far from ideal

The F word in Indian banking

At the moment, banks give an opportunity of hearing to wilful defaulters but not fraudsters

Beyond the Big Bank Theory: SVB collapse shows need for regulatory scrutiny

SVB now threatens the start-up ecosystem, which is already in the throes of a funding winter due to raising interest rates

All entities providing banking service subject to same rules: RBI Dy Guv

Non-bank entities cannot be allowed to undermine the banking system, he says at Business Standard BFSI Insight Summit

Tamilnad Bank IPO subscribed 1.5x on Day 2, issue closes Wednesday

The priced band for the IPO is Rs 500-525 per share

Cyber frauds: Banks step up efforts to promote safe banking habits

Apart from HDFC Bank's 'Vigil Aunty', a host of private sector general insurers also offer individual cyber insurance policies

Union Bank to raise up to Rs 8,100 cr in capital for business expansion

The lender's board approved raising equity capital up to Rs 3,800 crore, within overall limit of Rs 8,100 crore, said the company in filing with BSE

RBI cancels registration of five NBFCs due to irregular lending practices

The firms have been accused of charging excessive interest rates and harassing customers for loan recovery, among other things

What is a neobank?

Bengaluru-based startup Open has recently become India's 100th unicorn. It's a neobank. But, what exactly is a neobank and how is one different from a traditional bank? Let's find out.

RBI imposes penalty on 3 co-op banks for lapses in regulatory compliance

The Reserve Bank of India has imposed a penalty on three cooperative banks, including Nagrik Sahakari Bank Maryadit, Raipur, Chhattisgarh, for deficiencies in regulatory compliances

India digital loan apps blamed for mafia-like collection tactics, suicides

Panel set up by the RBI finds more than half of about 1,100 digital loan providers operate illegally.

Biden to withdraw Omarova's nomination to lead OCC banking regulator

President Joe Biden said Tuesday that Saule Omarova's nomination to lead the Office of the Comptroller of the Currency would be withdrawn