Page 2 - Reserve Bank

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

RBI transfers 100 tonnes of gold from UK to its domestic vaults in India

Reports say that another similar amount of gold could be en route to the country in the coming months

Bank frauds rise 166% in FY24 to over 36,000 cases, shows RBI annual report

RBI annual report: Amount involved in bank frauds decreased 46.7% in FY24 to Rs 13,930 cr

RBI's increased scrutiny of banks, financial firms leads to restrictions

Since 2020, the RBI has placed business restrictions on many players

S Korea's Shinhan Bank gets CCI nod to acquire 11% stake in HDFC Credila

The Competition Commission of India (CCI) has cleared South Korea-based Shinhan Bank's proposed acquisition of an 11 per cent stake in HDFC Credila Financial Services. Part of the Shinhan Financial Group, Shinhan Bank Co Ltd is a multinational bank, which commenced operations in India in 1996. "The proposed combination relates to the acquisition of up to approximately 11 per cent shareholding by Shinhan Bank in HDFC Credila by way of subscription to shares of HDFC Credila," CCI said in a release on Tuesday. HDFC Credila Financial Services, is a Reserve Bank of India (RBI)-registered non-deposit taking non-banking financial company. It is primarily engaged in the business of providing education loans in India and overseas. In another release, the competition watchdog granted its approval to Matrix Pharma to acquire 100 per cent stake in Tianish Laboratories. The acquisition will be funded in part by an investment proposed to be made by the investors in optionally convertible debent

RBI launches G-sec app, PRAVAAH portal: Here is all you need to know

'The launch of a mobile app for accessing the Retail Direct portal will provide greater convenience to retail investors and deepen the G-sec market,' said the RBI Governor

RBI shifts to NDFs as preferred forex reserves intervention option

The Reserve Bank of India (RBI) has traditionally been more active in the local over-the-counter (OTC) spot market to keep the rupee stable

Govt likely to cut bond sales aided by higher cash balance: Officials

The yield on benchmark 10-year bond was little changed at 7.09 per cent on Tuesday

India sees forex reserves as main tool to manage bond index inflows

The Reserve Bank of India plans to absorb the inflows and match the outflows using its near-record high $642 billion reserves