Published: June 2026 The Reserve Bank of India (RBI) continues to play a crucial role in maintaining economic stability and controlling inflation across the country. As the RBI’s Monetary Policy Committee (MPC) meets from June 3 to June 5, 2026, financial markets, banking professionals, borrowers, and investors are closely monitoring the policy announcement scheduled for […]

The Reserve Bank of India (RBI) has taken major steps to stabilize the Indian rupee amid rising global market volatility and continued pressure on foreign exchange markets. Alongside its currency stabilization efforts, the central bank has also announced a record surplus transfer of ₹2.86 lakh crore to the Government of India, providing strong fiscal support […]

The Reserve Bank of India (RBI) has announced key monetary and regulatory updates aimed at maintaining economic stability, strengthening the banking sector, and supporting the Indian rupee amid global uncertainties. With rising geopolitical tensions, fluctuating crude oil prices, and evolving digital payment regulations, the RBI continues to take proactive measures to ensure financial stability and […]

Updated: May 14, 2026 The Reserve Bank of India (RBI) has issued important economic updates regarding fuel prices, rupee stability, foreign investments, and fintech regulations. RBI Governor Sanjay Malhotra stated that the ongoing conflict in West Asia (Middle East) is creating pressure on global crude oil prices, which may directly impact India’s fuel prices and […]

1. Banking & Customer Updates • New Nomination Rules (Effective from 1 November 2025) Customers can now add up to four nominees for their bank accounts. This simplifies the claim settlement process after the depositor’s death. Applicable to savings, current, FD, RD, and all deposit accounts. • Mandatory Shift to ‘.bank.in’ Domain All banks must […]

The Reserve Bank of India (RBI) has just dropped its first big monetary policy update for 2025 — and it’s all about stability.The repo rate stays at 5.5%, the stance stays neutral, and there’s even some good news on the inflation front. Here’s what you need to know Repo Rate: Still at 5.5% — no […]

  ⏰ RBI Extends Repo Market Trading Hours from August 1, 2025 The Reserve Bank of India (RBI) has announced a small but significant change to the country’s money market operations. 📢 From August 1, 2025: Market Repo and Tri‑Party Repo (TREP) trading hours will be extended by one hour. New trading window: 9:00 AM […]

The US Federal Reserve surprised the world’s financial markets with a 50 basis point rate cut. This has put RBI Governor Shaktikanta Das now to face fresh challenges as global central bankers enter a monetary policy easing cycle.  Let us see the details here.   The Fed’s rate is now down to a range between […]

The Reserve Bank of India (RBI) has tightened the framework for domestic money transfers in order to keep track of both cash pay-in and pay-out services. Let us go through the details as under: In a circular issued recently, the RBI stated that in the case of cash pay-out service, the remitting bank shall obtain […]

RBI Governor Shaktikanta Das held a meeting with the MD and CEOs of public sector banks and select private sector banks today, in Mumbai. Reserve Bank of India’s (RBI) Governor Shaktikanta Das on July 3 held meetings with the MDs and CEOs of public sector banks and select private sector banks in Mumbai and urged […]

Reserve Bank of India (RBI) Governor Shaktikanta Das emphasised on the need to eliminate biases in algorithms as the use of artificial intelligence (AI) and machine learning (ML) is on the rise. The Governor was delivering the inaugural address at the 18th Statistics Day Conference organized by the RBI, when he said the use of […]

RISK FACTOR. SEBI mandated asset management firms to stress-test open-ended debt schemes every month Scheduled commercial banks (SCBs) are well capitalised and capable of absorbing macro-economic shocks even in the absence of any further capital infusion, per the results of macro stress tests for credit risk conducted by the Reserve Bank of India. Further, SCBs’ […]

The Reserve Bank of India (RBI) on 7 June 2024 released the much-awaited circular liberalising the rules governing investments in overseas funds.  What does it say?   The circular permits Indian Limited Partners (LPs) to invest in overseas funds regulated via their regulated investment manager thereby doing away with the erstwhile prerequisite that the investment […]

The Reserve Bank of India on 7th June 2024 announced the introduction of the UPI LITE e-mandate to create a more seamless payment ecosystem. UPI Lite was introduced in September 2022 to enable small value payments quickly and seamlessly through an on-device wallet.Currently, the UPI Lite has a daily limit of Rs 2,000, while the […]

Now, the new threshold for ‘bulk deposit’ is Rs 3 crore, meaning deposits below this amount will not be considered bulk deposits; banks often offer higher interest rates on bulk deposits compared to regular deposits. The Reserve Bank of India (RBI) on June 7 revised the definition of a bank ‘bulk deposit’ to Rs 3 […]

The Union Finance Ministry (FinMin) has instructed public-sector banks (PSBs) to review their information technology (IT) systems, especially the disaster recovery channels, a senior government official said, requesting anonymity. It is believed that the regulator (Reserve Bank of India) conducts its own audits regularly. We have also requested major PSBs to evaluate their disaster recovery […]

The Reserve Bank of India (RBI) has responded to tight liquidity conditions in the banking system by announcing a significant reduction in the government’s treasury bill sales and introducing a new selection of bonds for the Centre’s buyback operations. This move aims to alleviate cash constraints for banks, which have been impaired by muted government […]

In the wake of the ongoing audit at IIFL Finance’s gold loan business, the Reserve Bank of India is said to be reviewing regulations on gold loans. Certain norms pertaining to loan-to-value, cash disbursement limit, assaying of the underlying gold, and auctioning of the precious metal are under review. A detailed circular, or an operative […]

FORGERY. Embezzlement reported at NBFC’s North-East branch; RBI seen placing curbs. KEY CONTRIBUTOR. The eastern region accounts for 11% of the lender’s total advances, or ₹10,273 crore of total loans, per M&M Finance’s December quarter investor presentation The RBI is looking into a ₹150-crore KYC lapse disclosed by Mahindra and Mahindra Financial Services on Tuesday. […]

The Reserve Bank of India (RBI) on Tuesday issued a significant directive, stating that from August 1, 2025, no entity involved in card transactions, except for the card issuer and card networks, will be permitted to store data. This directive aims to enhance the security and privacy of cardholders’ information during transactions. This regulation will […]

The Reserve Bank of India (RBI) on April 12 said it has rejected two small finance banks licences filed by Dvara Kshetriya Gramin Financial Services Pvt Ltd and Tally Solutions Pvt Ltd as they were found to be not suitable. Dvara KGFS (Kshetriya Gramin Financial Services), backed by impact investor Leapfrog and Stakeboard Capital, is […]

The Reserve Bank of India (RBI) has proposed to permit the linking of prepaid payment instruments (PPIs) with third-party unified payments interface (UPI) applications to make the digital wallet market interoperable. The move, outlined in the RBI’s statement on developmental and regulatory policies, means wallet holders will no longer have to depend on PPI wallet […]

The Monetary Policy Committee meeting of RBI is scheduled to be held on 5th April 2024 when there is speculation about change in the REPO Rate. Here are the excerpts from the opinions from different sections of people. Foreign brokerages and banks expect the Monetary Policy Committee (MPC) to keep the repo rate unchanged at […]

The country’s Apex Bank, Reserve Bank of India (RBI) might take a fresh look at its long-standing caps for foreign ownership of government debt as lumpy inflows expected over the next couple of years due to global bond index inclusion alter a critical landscape for the Centre’s debt manager.  Here are the details: In March […]

Nearly two years after introducing a revised regulatory framework for non-banking finance companies, the Reserve Bank of India is set to review the categorisation of NBFCs in 2024. According to sources aware of the matter, the review has become necessary given the NBFCs growth, their business models and the significant change in their operations from […]

The Regualtor, Reserve Bank of India has approved the merger of Fincare Small Finance Bank with AU Small Finance Bank which shall be effective w.e.f 1st April 2024. Bank Merger Update Once again there is going to be a merger of banks in the country. Reserve Bank of India has said that from April 1, […]

The Reserve Bank of India, has advised banks and non-banks to permit their customers to decide on the credit card network.  This means, credit card issuers, especially those with a large customer base, will have to enter into tie-ups with multiple card networks.  Current Scenario Presently the choice of network for a card issued to […]

New KYC updation process soon? Banks are working on strengthening their KYC (Know Your Customer) standards by adding extra verification layers to identify accounts and account holders. This initiative is being discussed with the Reserve Bank of India (RBI) and the government. The plan includes updating all existing accounts, especially those with a single phone […]

Introduction 1. Payment Banks, as per RBI guidelines, are a new category of banks conceptualised to provide efficient banking services to small businesses and low-income households. 2. These banks focus on facilitating financial transactions, including receiving deposits and making payments, but do not undertake lending activities like traditional banks. Maximum Balance: Payment banks are initially […]

Finance Minister Nirmala Sitharaman on Wednesday asked financial sector regulators, including the Reserve Bank of India (RBI), to take further measures to check spread of unauthorised lending through online apps.Addressing the 28th meeting of the Financial Stability and Development Council (FSDC) here, Sitharaman also asked regulators to maintain constant vigil and be proactive towards detecting […]

Addressing concerns around the curbs imposed on Paytm Payments Bank, the Reserve Bank of India issued an FAQ (Frequently Asked Questions) detailing what will be the future of the bank, how can customers and merchants utilise or withdraw their funds, and what will be allowed post March 15. Businessline breaks it down: What happens to […]

In Press Release dated March 11, 2022, the Reserve Bank of India, in exercise of its powers under section 35A of the Banking Regulation Act, 1949, had directed Paytm Payments Bank Ltd (PPBL or the bank) to stop onboarding of new customers with immediate effect. 2. The Comprehensive System Audit report and subsequent compliance validation […]

It has come to the fore, that borrowings by NBFCs from commercial banks is on an increase and Reserve Bank of India, the apex Regulator has noted the same with concern. RBI has hence advised the NBFCs to diversify their funding sources in the coming year ie. 2024, due to the rising competition in the […]

In today’s age, it is quite easy to construct a house or buy a flat by taking a home loan. Be it a bank or a non-financial bank, one has to submit papers of the property as collateral in lieu of loan. Many times, people mortgage movable or immovable property. It has also been observed […]

The Reserve Bank of India (RBI) on December 11 cautioned public not to fall prey to misleading advertisements related to loan waiver offers in print media as well as on social media platforms. In a statement, the RBI said it has noticed certain misleading advertisements enticing borrowers by offering loan waivers. These entities, it said, […]

We are aware that Fintech is a catch-all term referring to software, mobile applications, and other technologies created to improve and automate traditional forms of finance for businesses and consumers alike.  The usage goes with how people require their business to be transacted and these account from digital money to double-entry book-keeping.  All financial institutions […]

Reserve Bank of India Governor, has identified three challenges facing the global economy which are: Slow moderation in inflation, Slowing growth with obstacles, and Risks of financial stability. The Governor expressed concerns about the impacts of shocks like rising crude oil prices and bond yields, which he referred would hamper the responses of central banks.  […]

There are several tools available with RBI to boost the liquidity in the banking system.  Few of them are adjustment through Repo Rate and Reverse Repo Rate, Increasing and decreasing CRR and SLR and so on.  Another important tool available with RBI is Forex Swap which boosts the liquidity in the system amid tax outflows […]

AIFIs will be required to maintain a minimum total capital of 9 per cent by April 2024 The RBI has introduced norms on the Basel III capital framework, fund raising, exposure guidelines, and norms on classification and valuation of investment portfolios for All India Financial Institutions (AIFIs), which will come into effect from April 2024. […]

An RBI circular that requires lenders to take a quick call on classifying wilful defaulters will also allow borrowers to shake off the tag by entering into a compromise settlement with banks. In June 2023, the central bank, in its circular on compromise settlements, had allowed one-time settlement of wilful defaults only if a higher […]

In its last bi-monthly monetary policy review, the RBI asked Banks to maintain an I-CRR of 10 per cent The Reserve Bank of India (RBI) has decided to discontinue the Incremental Cash Reserve Ratio (I-CRR), which it prescribed as a temporary measure last month to impound Banks’ surplus liquidity, in three stages, beginning September 9, […]

The Reserve Bank of India urged the directors of Urban Co-operative banks to further strengthen governance practices emphasizing the importance of a professional Board of Management as the quality of governance was the most important aspect in ensuring stability of individual banks. The Reserve Bank stressed the need to strengthen the three pillars supporting pillars […]

New UPI features developed by National Payments Corporation of India (NPCI) was launched by the RBI Governor. The product offerings include Credit Line on UPI; UPI Lite X; Tap & Pay; Hello! UPI; and BillPay Connect. The central bank informs that credit lines on UPI to increase access to credit, and promote financial inclusion and innovation through pre-sanctioned […]

The Reserve Bank of India (RBI) has decided to bring out rules that could potentially restrict card issuers from engaging in exclusive agreements with card networks like Mastercard, Visa or RuPay. The central bank also proposed that rules would be applicable to both banks and non-banking financial companies that issue credit cards, debit cards, or […]

The Reserve Bank of India on Thursday launched a centralised Web portal, UDGAM (Unclaimed Deposits Gateway to Access Information), for members of the public to make it easier to search their unclaimed deposits across multiple banks at one place. UDGAM, which was launched by RBI Governor Shaktikanta Das, will aid users in identifying their unclaimed deposits and accounts and […]

The Reserve Bank has opted for the services of global consulting companies McKinsey and Company India LLP, along with Accenture Solutions Pvt Ltd. India, to create systems that utilize artificial intelligence and machine learning for its supervisory operations. The RBI is looking to extensively use advanced analytics, artificial intelligence and machine learning to analyse its […]

Cash Reserve Ratio or CRR as it is termed, is a monetary policy tool used by the Central Bank to regulate money supply and control inflation. It is the percentage of Bank’s net Demand and Time Liabilities (NDTL) required tobe maintained as Cash Reserve with RBI. It includes deposits and certain other liabilities of commercial […]

Credit card default rose to ₹4,072 crore, or 1.94%, at the end of March 2023, Parliament was informed on Tuesday. “As per the inputs received from the Reserve Bank of India, in respect of defaults in credit cards, the gross non-performing assets (GNPAs) in credit cards was ₹3,122 crore in March-2022 and ₹4,072 crore in […]

ARC executives find written-off assets particularly appealing as the number of sizeable bad loans awaiting recovery have dipped, thanks in part to banks’ persistent corrective measures, including selective targeting of corporate borrowers. Asset reconstruction companies (ARCs) are capitalizing on the opportunity to acquire written-off loans, given the substantial pool of such assets available with lenders, and […]

Reserve Bank of India: The licenses of many co-operative banks have been canceled by the Reserve Bank of India in the financial year that ended on March 31. If you also have an account in these banks, then you should be updated about this news. These banks have faced strict action from the Reserve Bank […]

RBI Governor Das says ‘job is only half done with the fight against inflation not yet over’; Deputy Governor Patra stresses policy needs to remain in ‘brace’ mode to ensure shocks from supply demand mismatches leave no scars on the economy. The Hindu Bureau MUMBAI The Monetary Policy Committee’s job was only half done in […]

Disinflation is a process of slowdown in the rate of increase of the general price level of goods and services in a nation’s gross domestic product over time.  In other words, it is the opposite of reflation which refers to a process of economic recovery with a combination of both Fiscal and Monetary policies.  A […]

**Courtesy: Economic Times dt 9th June 2023

The Reserve Bank of India kept the interest rates unchanged for the second straight monetary review meeting amid abating price pressures and showed a favourable picture on medium term economic growth that is likely to be the best among the world economies. The RBI Governor showed a clearer path to the future, though the political […]

Responsiveness of Prices to interest rates **Courtesy: Business Lines dt 12.4.23

Acceptance of Green Deposits A green deposit is a fixed-term deposit for investors who are looking to invest their surplus cash reserves in environmentally beneficial projects and initiatives. The Reserve Bank of India (RBI) has released a set of guidelines for banks and other financial institutions to accept green deposits. According to the central bank, funds earned [...]

RBI has proposal to permit UPI transactions via pre-sanctined credit lines.  This means, UPI will nothing but your Credit Card in future.  A limit is set under your UPI and you can use UPI instead of a Credit Card in future….Wah BUY NOW AND PAY LATER is now possible through UPI.   Here is an [...]

The Apex court has brought out its version of Frauds duoe to the changes in the Indian Accounting Standards.  The court feels that Banks growth is vital for ensuring high growth. The country cannot afford another mega ­scam that exposed the gaping holes in  the financial system.  It suggests size based dispensation, in case of small businesses who should not be made to suffer due to losses. Here [...]

The Central Bank Digital Currency or CBDC as is referred to was launched by Reserve Bank of India, on 1st December 2022 a month after the trail for wholesale or interbank transactions. But still this has not been popular among public who prefer Googlepay, MPay and other Digital Payment methods.  Also, majority of the people [...]

RBI to hike REPO Rate

Indian Banks Unprepared for ESG Norms in Lending

Importers Banking on RBI Support Indian importers are taking less insurance against Foreign Exchange fluctuations. The data indicates, on expectations that the central bank will continue to intervene to keep the rupee above the key psychological level of ₹83 per $. Dollar purchases by importers for delivery beyond the spot date dropped in February according to Reuters’ calculations based on data by the Clearing Corporation of India. Importers bought about $1.24 billion daily, on average, in the forward markets this month, down from $1.50billion in January and from$1.54 billion in the October/ December quarter. It is believed that large importers are looking at the USD/INR call spread o;ption structures. Call spreads protect importers up to a certain price, but cost less than an outright call [...]

A negative interest rate means the Central Bank charges negative interest on deposits made by commercial banks with the Central Bank where instead of receiving money on deposits, commercial banks must pay interest to the Central Bank.  Bank will transfer this negative interest rate to their loan and deposit activities. Not necessarily banks would be [...]

New Provisioning Regime A discussion paper of the Reserve Bank of India revealed that the bank is moving closer towards ring fencing the banking system from credit losses. It proposes to move to provisioning on the principles of 'expected losses' from 'incurred losses.' The move would be over a period of five years. The Central [...]

RBI puts on hold NUE licensing What Is NUE License? NUE means New umbrella entities. This license allows the creation of a digital payment network. For now, NPCI handles all types of digital payments in India. In other words, NPCI handles all retail payments in India. Through this license, RBI now wants to introduce a new [...]

Accelerating Growth of Private Sector Banks It is a great news from RBI that Private sector banks (PvBs) continued to overtake public sector banks in overall acceleration in credit growth, which is clear from their increased share in total credit which stands at 38.4 per cent in September 2022 from 37.5 a year ago and [...]

Power of Commas and Colons in RBI terms

Reserve Bank of India, the Regulator has now felt that it is time to differentiate between core and non-core functions of PSU Banks.  Accordingly it is likely that RBI may release more stringent framework amending the Banking Regulations Act and ensure to segregate the two businesses and thus prevent any conflict of interest between the [...]

Reserve Bank of India, the Regulator has now felt that it is time to differentiate between core and non-core functions of PSU Banks.  Accordingly it is likely that RBI may release more stringent framework amending the Banking Regulations Act and ensure to segregate the two businesses and thus prevent any conflict of interest between the [...]

Rupee in the recent days has fallen terribly in the international market.  RBI is faced with problems like low economic growth, high inflation and a continuous weakening of Rupee against Dollar in the recent days.  Here is an article analyzing as to whether in the present context the cost of rupee depreciation is beneficial or [...]

The BSR-1 return relates to bank credit. Each branch/office of a bank is required to submit this return to the Reserve bank of India as on 31st March every year. In case the 31st March is a holiday, the figures should relate to the immediate preceding working day. 2. The bank credit required to be [...]

It is well known that RBI's repo rate hike has paved way to make home loans more expensive.  However, realty experts feel that the demand for homes county-wide will not witness massive impact. While home loan rates are likely to settle at around 8 per cent, the existing demand in the market is expected to [...]

The Reserve Bank of India-led Monetary Policy Committee increased the repo rate by 50 basis points to 5.4% to take it to the pre-pandemic levels, as the monetary authority seeks to bring down inflation to its comfort band and in line with policy tightening by key central bank. Standing Deposit Facility (SDF) rate was adjusted [...]

Europe’s unexpected move to raise the cost of funds for the first time in a decade underscores the stickiness of a global price spiral that prompted the second outsized increase in the US benchmark rates in as many months. All the takers viz bankers, traders, analysts and fund managers also expect RBI to change its [...]

Reserve Bank of India has eased norms for NRI deposits and investments by FPIs in the backdrop of global uncertainties and the continuing weakness of the rupee against the US dollar.  Accordingly RBI has brought in various measures inorder to boost the inflows.  The foreign portfolio investors investments has been relaxed, the limits for external [...]

Since the processing of transaction using the tokens is yet to gain traction, Reserve Bank of India, has now extended the deadline for card tokenisation by another three months. Earlier the deadline was June 30,   and the central bank has now extended the deadline to September 30, 2022.  This is because the number of transactions [...]

Forward market plays an important role in deciding the Forex Reserves.  RBI has now decided to take advance delviery of outstanding long forward dollar positions points to its desire in order to protect the fast depleting Forex Reserves.  Here is an article which explains in detail about the RBI move and its repurcussions. PS: The [...]

MUMBAI – The Reserve Bank of India plans to float a discussion paper on introduction of expected credit loss framework for banks, said Deputy Governor M. Rajeshwar Rao at an event organised by IMC Chamber of Commerce and Industry. The excerpts from his speech are: Banks in India follow the incurred loss approach for loan loss provisions, [...]

Small Finance Banks have been granted with a differentiated banking licence, which is related proportionately to their growth in their capital base.  The policy clearly states that the Priority Sector Lending (PSL) of SFBs in total lending is continuously declining for the fourth consecutive year during FY 2021 and the Non priority sector lending accounts [...]

In its recent Monetary Policy Committee meeting, Reserve Bank of India hiked its REPO Rates. The MPC unanimously voted to increase the policy repo rate by 50 basis points to 4.90% and keep policy stance ‘withdrawal of accommodation’. Real GDP forecast for FY23 has been retained at 7.2%. After May’s surprise 40 basis-point off-cycle hike, [...]

The Reserve Bank of India (RBI) has proposed to allow the linking of credit cards to the UPI platform, Governor Das said while announcing the rate hike. To begin with, the Rupay credit cards will be linked to the UPI platform, which will provide additional convenience to the users and enhance the scope of digital [...]

Reserve Bank of India has eased norms for non-bank entities to set up Bharat Bill Payment operating units. RBI has reduced the net-worth reqirement to Rs 25 crore, which is set to encourage more players in the segment. At present, a net worth of Rs 100 crore is required to obtain authorisation for a non-bank [...]

The Reserve Bank of India (RBI) has highlighted concerns over cryptocurrencies from time to time. It has however not issued any instruction going against the Supreme Court’s order. The CEO and cofounder of COINBASE Brian Armstrong had recently said informal pressure from the RBI led the global crypto exchange to disable UPI deposits a few days after its launch in India. However, a person in the know pointed out that the RBI has only publicly highlighted its concerns on cryptocurrencies. Considering its prime responsibility of maintaining financialstability and the risks in cryptocurrency transactions like their possible use for illicit activities, price volatility, lack of customer protection, RBI has publicly highlighted its concerns, the source said. The RBI in its May 31, 2021, circular had stated that in view of the Supreme Court order, its circular dt April 6, 2018, which imposed restrictions on regulated entities in dealing with virtual currencies, is no longer valid from the date of the judgment. ‘Unique market’ Armstrong, in the company’s earnings call, had noted that India is a unique market in the sense that the Supreme Court has ruled they can’t ban crypto. “But there are elements in the [...]

I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. In a mid-cycle move the Monetary Policy Committee (MPC) unanimously voted to raise the policy Repo rate by 40 basis points from 4 per cent to [...]

The corona related restrictions had an adverse impact on economic growth, resulting in the RBI Monetary Policy going on a reviving growth. Repo rate remained unchanged in the RBI Policy on Feb 10, 2022.  However, there are many indicators which hint that inflation may show a different picture which may cause a concern. While borrowers [...]

Reserve Bank of India (RBI) has cancelled the authorisation certificates of Muthoot Vehicle and Asset Finance Ltd and Eko India Financial Services Private Ltd for non-compliance with regulatory requirements. Both the Payment System Operators (PSOs) had authorisation for issuance and operation of prepaid payment instruments.  RBI adds that following the cancellation of the Certificate of [...]

Bankers may hesitate in selling bad loans to asset reconstruction companies (ARCs) as the Income-Tax Department’s recent search action on four ARCs revealed that they had adopted various unfair and fraudulent trade practices in acquiring these loans. This development could be a body blow to ARCs as banks may avoid this channel of recovery, preferring [...]

Mutual fund participants swear by balanced advantage funds or dynamic asset allocation funds. They believe these schemes are ideal for new investors and conservative investors to get into the market without worrying too much about the market levels and valuations. Read on if you want to find out more about these schemes. Balanced advantage funds [...]

The country’s largest public sector bank, State Bank of India (SBI), today announced that it has hiked the base rate by 10 basis points (bps). This signals the start to the end of regime of low interest rates. Besides being a reference rate for borrowers, the base rate also works as an indicator of the [...]

Governor’s statement on RBI monetary policy Click Here - RBI monetary policy dt 8th Oct 21

Two factor authentication required for Credit card during online transactions effective 1 October 2021 is introduced by RBI

The Regulator RBI has now come forward to announce that loan exposures classified as fraud can be transferred to Asset Reconstruction Companies (ARCs). This comes in the wake of banks reporting frauds aggregating Rs. 3.95 lac crore between the Financial Year 2019 and 2021. Stressed Assets which are in default for more than 60 days [...]

An asset reconstruction company is a special type of financial institution that buys the debtors of the bank at a mutually agreed value. It attempts to recover the debts or associated securities by itself. The required funds to purchase such debts can be raised from Qualified Buyers.   Obviously this helps banks to concentrate in normal banking activities. Instead [...]

Banks are not vigorously pushing the Retail Credit. The total borrowings by individuals have overtaken the loans to businesses for the first time as banks aggressively push retail credit to make up for the lacklustre demand from companies. Outstanding retail loans stood at ₹28.58 trillion as of 30 July, while loans to industries stood at [...]

The Depositor Education and Awareness Fund Scheme (DEAF Scheme) was established by the Reserve Bank of India (RBI) in 2014 for the promotion of depositors’ interest and for any other related purposes deemed necessary by the RBI.  Accordingly, an amendment was made to Banking Regulation Act, 1949, and Section 26 A was inserted into the Act, authorising RBI [...]

COURTESY : ECONOMIC TIMES dt 1 Sept 2021

RBI has come out with new rules on usage of Cards. Under the new guidelines, several card holders both debit and credit making payments online in 2022 may have to enter their 16-digit card numbers every time while making a payment online as opposed to just authenticating these transactions through the CVV (Card Verification Value) [...]

Projecting a rise in the retail inflation, and in order to increase the liquidity RBI has decided to keep the REPO rate unchanged which remains at 4% and the inflation is projected tobe 5.7% (from the previous figure of 5.1%) Here is an article from Business Lines which provides an overview of the RBI’s policy [...]

The Regulator RBI, has decided to amend guidelines related to export credit in foreign currency and restructuring of derivative contracts to ensure smooth transition away from the London Interbank Offered Rate (Libor). Noting that the move away from Libor is a significant event that poses certain challenges for banks and the financial system, RBI Governor revealed that the central bank has been engaging with banks and market bodies to proactively take steps. Further it is said that the Regulator also has issued advisories to ensure a smooth transition for regulated entities and financial markets. Export credit: Under the amended guidelines, banks will be permitted to extend export credit in foreign currency using any other widely accepted Alternative Reference Rate in the currency concerned. At present authorized dealers are [...]

Equitas Holdings, the promoter of Equitas Small Finance Bank (SFB) has been permitted to apply for amalgamation of the promoter into itself. The licensing guidelines of RBI states that a promoter of SFB can exit or cease to be a promoter after the mandatory initial lock-in period of five years (initial promoter lock-in) which again depends [...]

The Reserve Bank of India (RBI) has cancelled the license of Madgaum Urban Co-operative Bank Limited, Margao, Goa. The license was cancelled because the bank’s financial position was not able to pay its present depositors. The Madgaum Urban Co-operative Bank Limited does not have adequate capital and earning prospects. The bank was not in compliance [...]

Here is a good news for non-bank entities from RBI.  In order to bring the non-bank entities into the payment system fold, RBI have now come out with an approval to permit Payment system providers also viz., Pre-paid card issuers, card networks and white label ATM operators get access o its Centralized Payment Systems (CPS), [...]

The Wall Street brokerage expects the apex bank Reserve Bank of India, to overlook the retail inflation, which is expected to be a temporary feature, and thus remain positive in keeping the rates unchanged, in the forthcoming  Monetary Policy review when the MPC (Monetary Policy Committee) is scheduled to announce the third monetary policy review [...]

Reserve Bank of India (RBI) conveys that Banks can now sanction 'personal loans' to directors and relatives of directors of other banks for an amount up to Rs 5 crore without the prior approval of the Board and management commit.  This limit was     Rs 25 lakh earlier. Earlier, the RBI rules stated that loans aggregating Rs25 lakh [...]

Industrial sector credit growth remained to be negative during 2020-21 due to Covid19 pandemic and resultant lockdowns as per Reserve Bank of India (RBI) data. However, it states that the personal loans continued to grow at a robust pace and recorded 13.5% growth on an year on year basis in March 2021. But the Industrail [...]

The Reserve Bank of India (RBI) has extended the restrictions earlier imposed on Punjab and Maharashtra Co-operative Bank (PMC Bank) till December 31-2021. RBI recently gave in-principle nod to Centrum Group to set up a small finance bank to acquire crisis-ridden PMC Bank. The Central Bank in a release said that after taking into account [...]

RBI paves way for Punjab & Maharashtra Cooperative Bank’s revival PMC Bank posted a net loss of Rs 6,835 crore in FY20, reporting a negative net worth of Rs 5,850.61 crore as per the bid document. In September 2019, PMC Bank was put under charge of an RBI-appointed administrator after some financial irregularities were detected. [...]

NPCI's bulk payment system to be available 24X7 from 1 August RBI recently announced that NEFT money transfer has now become 24X7 facility. National Automated Clearing House (NACH) payment system will be available on all days of the week from August 1. "In order to further enhance customer convenience, and to leverage the 24x7 availability [...]

Rabi Sankar on Monday took over as the new deputy governor of the Reserve Bank of India for a period of three years, the Central bank said in a statement. Sankar has filled the vacancy created after the retirement of BP Kanungo on 2 April. The other three deputy governors are Michael D Patra, who [...]

• Succession planning by long servicing Chief Executive Officers of banks is now made compulsory by RBI. CEOs at DCB Bank, RBL Bank and Federal Bank will now have to focus on succession planning after regulator capped their tenures at 15 years. • DCB Bank CEO Murali Natarajan has completed 12 years and has got [...]

Cyber security crimes have increased manifold which has compelled Reserve Bank of India, the Regulator to tighten the supervision norms for payment companies. RBI has said that from April 1, all licensed payment system operators (PSOs) will have to submit detailed “compliance certificates” to the central bank twice a year. This should be signed by [...]

Reserve Bank of India, proposes to extend Cheque Truncation System (CTS) across all bank branches in the country. On 5th Feb 2021, vide its circular on “Statement on Developmental and Regulatory Policies RBI had announced about pan-India coverage of CTS, by bringing all branches of banks in the country under image-based CTS clearing mechanism. The [...]

BE/RBINOTE/01/2021 The Reserve Bank of India (RBI) has constructed a composite Digital Payments Index (DPI) to capture the extent of digitisation of payments across the country. The RBI-DPI comprises of five broad parameters that enable measurement of deepening and pen.  The RBI­DPI has been constructed with March 2018 as the base period. The DPI for March 2019 and March 2020 work out to 153.47 and 207.84 respectively, indicating appreciable growth. A report says that the RBI­DPI comprises five broad parameters which includes Payment Enablers, Payment Infrastructure Demand [...]

BE/RBINOTE/75/2020 Reserve Bank of India, the Central Banker or the Banker's Bank to reduce the incidences of frauds in Cheques Encashment has introduced a new system which is called "Positive Pay" for Cheque Truncation System (CTS) w e f 01.01.2021. Under the new system, the account holder need to submit the following details without fail [...]

BE/RBINOTE/74/2020 The greatest financial crisis is getting tough, however the Central Bank is in the get going mood.  The pandemic has brought a shift in the Monetary Policy in the current year.  In our country RBI’s policy response has also been unconventional and RBI has moved forward beyond the inflation targets.  Here is an article [...]

BE/RBINOTE/72/2020 Lakshmi Vilas Bank Tier 2 Bond holders had to lose their money to the tune of Rs. 318.20 due to the RBI’s instructions to write off this sum consequent upon the bank’s merger with DBS India Bank.  Here is a representation from IDBI Trusteeship urging RBI to compensate the LVB Bondholders.

BE/RBINOTE/72/2020 Real Time Gross Settlement System (RTGS) is a type of money transfer from one bank to any other bank which is processed at the time it is received. There are no additional charges levied for RTGS transactions. RTGS is now available 24x7 from Monday to Sunday. RTGS facility can be availed either online through [...]

BE/RBI/68/2020 In order to keep a watch on the bank frauds happening and to control it, the Reserve Bank of India (RBI) introduced the "positive pay system" for cheques. The new positive pay system insists on a re-confirmation of key details when a bank user needs to make payments of more than Rs 50,000. This [...]

BE/RBI/68/2020 Bullish bets on India’s short-term bonds are making a comeback after the central bank pledged to maintain abundant liquidity in the banking system to support the economy. The Reserve Bank of India surprised bond traders when it didn’t take steps to pare back on the cash glut that caused short-term rates to collapse. Instead, [...]

The Reserve Bank of India today decided to keep key policy rates- repo and reverse repo rate- unchanged at 4% and 3.35% respectively in its monetary policy review keeping in view elevated inflation level.  The apex bank believes that inflation is going to remain elevated throughout the remaining part of the current financial year. So [...]

Outages in the Digital Payments system of HDFC Bank has halted it from going ahead with to temporarily stop all new digital banking initiatives and sourcing of new credit card customers. RBI has asked the bank to examine the lapses and fix accountability. This is initiated for lifting upon satisfactory compliance with the major critical [...]

BE/RBI/66/20 The country’s apex bank Reserve Bank of India’s working group has recommended for raising the cap on promoters’ stake in Private Sector banks to 26% in the long run say over a period of 15 years.   It adds that it should be mandatory in the case where individual promoters, promoting entities or converting entities [...]

BE/RBI/65/2020 The Reserve Bank of India (RBI) on Tuesday the 17th November 2020, placed Lakshmi Vilas Bank under one-month moratorium. The Moratorium comes into effect from 6 pm today (November 17) to December 16, 2020. During this 30-day period, cash withdrawal of up to Rs 25,000 will be allowed. Withdrawal of any amount more than [...]

BE/RBI/64/2020 With private consumption in India falling dramatically by a third to INR 21.7 lakh crore in the first quarter of 2020-21 from its pre-COVID level of ₹32.5 lakh crore in the third quarter of 2019-20, the demand for retail loans has been tepid despite the Reserve Bank of India (RBI) slashing interest rates by 115 basis [...]

Awaiting the Supreme Court hearing results on loan moratorium extension the banks have started rolling out the 'interest on interest' charged from the customers on loans and credit cards during the moratorium period. The individual borrowers and small businesses with loans of up to Rs 2 crore will be eligible for the cashback from the [...]

BE/RBI/61/2020 The Reserve Bank of India (RBI) has announced its major decision to rationalise the risk weights and link them to the loan-to-value (LTV) ratios for all new housing loans sanctioned up to March 31, 2022. The declaration was made by Governor Shaktikanta Das during his speech on the bi-monthly Monetary Policy Committee (MPC) announcement.   What [...]

BE/RBI/60/2020 A report of RBI released now reveals that the additional outgo to fight the impact of COVID­19 will significantly erode the fiscal consolidation achieved by the State Governments in the past three years. In its study of the State budgets of 2020­21, the RBI has remarked on ‘COVID­19 and its Spatial Dimensions in India and said that Gross Fiscal Deficit (FGD) of the States would [...]

BE/RBINOTE/59/2020 Reserve Bank of India has finalized the guidelines for setting up self-regulatory Organizations (SROs) for digital payments in India. The proposed body will be a not-for-profit entity, akin to industry associations like Indian Banks Association (IBA) or Mfin. Such SRO would include liaisoning between stakeholders and regulators to ensure efficient communication, improving standards and [...]

BE/RBINEWS/58/2020 RBI proposes to buy Rs.10,000 crore of bonds issued by more than a dozen state Governments on October 22 which is the first such move.  The move is aimed at holding down borrowing costs in the economy. Here is an article to highlight the same

BE/RBINOTE/56/2020 Reserve Bank of India (RBI) has set some new conditions for the banks to opening current accounts for large borrowers with a view to enhance credit discipline.  These conditions are for customers who have availed cash credit or overdraft facilities. RBI’s Step Towards Secure Banking! The RBI governor, Shaktikanta Das in a statement on Developmental and [...]

BE/RBINOTE/57/2020 The monetary policy report of the Reserve Bank of India (RBI) shows that the weighted average lending rate for fresh loans fell by 91 basis points (bps) between March and August, higher than the 71bps drop in the one year before the coronavirus outbreak. One basis point is one-hundredth of a percentage point. On [...]

BE/RBINOTE/55/2020 v Real Time Gross Settlement is a payment system, which is meant for large value transactions wherein the minimum amount to be remitted through is Rs 2 lakh with no upper or maximum ceiling. RBI Governor has now informed that transferring funds will get easier from December onwards and the system will be available [...]

BE/RBINOTE/54/2020 Here is the new system advised by RBI to the Banks to be implemented in order to reduce cheques related frauds. The System termed as Positive Pay is to come into force from January 2021. The system acts against cheques frauds where the cheques leaf and signatures are genuine but a fraudster alters the [...]

BE/RBINOTE/53/2020 The central government, in an affidavit filed in the Supreme Court, has supported waiving compound interest or ‘interest on interest’ for small ticket loans up to Rs 2 crore. The relief would be available to all borrowers, the government said in the affidavit but did not specify the manner in which relief would be [...]

BE/RBINOTE/52/2020 The Reserve Bank of India (RBI) has now proposed to introduce exchange-traded and over-the-counter (OTC) interest rate derivatives products that would be accessible to both foreign investors and retail participants. Retail participants can, however, only use the product for hedging, while non-retail participants can use it for any purpose. In a draft guideline released on its [...]

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BE/RBINOTE/50/2020 RBI refused to sell another batch of 10 year bonds since it believes as manager of the government debt, has passed up the high-yield offers of money signalling that they foresee lower rates. Markets remain hopeful of measures such as aggressive open market operations (OMOs) and direct funding of government borrowing or monetising to [...]

BE/RBINOTE/49/2020 Reserve Bank of India issued guidelines to enforce uniform compliance practices across Banks. The requirements include: Board approved compliance policy Appointment of a Chief Compliance Officer (CCO) and Internal Audit of the Compliance Function In order to bring in an effective compliance culture, an independent corporate compliance function and a strong compliance risk management [...]

BE/RBINOTE/48/2020 Due to the current COVID 19 Pandemic RBI had set up Kamath Panel to look into the aspects of Bad Loans and the priority to be given to various loans in repayment.  Here is the recommendations of RBI which sets 5 key norms for lenders based on the committee’s recommendations.

BE/RBINOTE/47/2020 RBI had set up the K.V.Kamath Committee to provide Sector-specific recommendations since it had announced a one-time loan recast for borrowers hit by the COVID-19 pandemic. Accordingly, the committee is set to submit its report on loan restructuring to the Reserve Bank of India (RBI). It is understood to have identified six problem sectors, [...]

BE/RBINOTE/46/2020 The Covid19 pandemic has ransacked the economy. It is but for sure that the Government does not have enough fiscal support to revive the economy. It is also known that all the Government commitments are expenditure oriented and is meant to mitigate the pandemic’s impact. Thus, the finance space of states but for sure [...]

BE/RBINOTE/45/2020 The bonds yield has gained in the recent days and PNB Gilts adds that the Central Bank may be trying to increase the attraction of sovereign debt by letter the bonds yield rise. The benchmark 10-year bond yield advanced to 5.97% If this being true, then RBI might be trading a delicate balance to [...]

BE/RBINOTE/44/2020 What are Core Investment Companies? Core Investment Companies (CICs) Core Investment Companies, (CIC) are those companies which have their assets predominantly as investments in shares for holding stake in group companies but not for trading, and also do not carry on any other financial activity. However, RBI defines that a core investment company is [...]

BE/RBINOTE/43/2020 The Monetary Policy Committee of RBI has started its three-day brainstorming meeting on the bi-monthly monetary policy in the midst of the urgency to revive the Covid19 hit Indian Economy since there is more demand for a loan restructuring by the industry concerned.  The decision will be released by the committee on 6th August [...]

BE/RBINOTE/42/2020 Financial Stability Report (FSR) is released by RBI, every quarter which explains the details of the Stressed assets at Private Banks, Public Sector Banks, Foreign Banks and others.  Here is a report which details the moratorium availed as on April 30, 2020, and the outstanding loan portfolio in the Retail Sector.   It reveals that [...]

BE/RBINOTE/41/2020 The apex Bank, Reserve Bank of India has released the Financial Stability Report (FSR) that "reflects the collective assessment of the sub-committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the financial system in the context of contemporaneous issues relating to development and regulation of [...]

BE/RBINOTE/39/2020 There is an observation by RBI that cyber scams are on a rise and customers should not share their OTP, UPI PIN or other bank details with anyone.  It explained how these details can be used by scammers to steal money Merely days after the world witnessed one of the worst cyber-attacks of all [...]

BE/RBINOTE/38/2020 There is huge demand for cash at any point of time, especially in Indian type of markets. An RBI release named MODELLING AND FORECASTING CURRENCY DEMAND IN INDIA: HETERODOX APPROACH authored by former Executive Directors and members of the Monetary Policy Committee (MPC) reveals that the fourth quarter of fiscal year 2019-20 accounted for [...]

BE/RBINOTE/36/2020 Delivering the Keynote address at the seventh SBI Banking and Economic Conclave, the Reserve Bank of India Governor said that RBI is working with all stakeholders for resolution for Punjab and Maharashtra Cooperative Bank.  Following were the details given by the Governor. The Indian economy's medium-term outlook remains uncertain even though the country has [...]

BE/RBINOTE/36/2020 Through the RTI (Right to Information), it has been revealed that according to a suggestion made by a Reserve Bank committee to reduce cash withdrawal, there will be a charge on ATM Withdrawal charges from the ATM. However, this report was never made public. It is possible that now you have to pay some [...]

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BE/RBINOTE/34/2020 The Union Cabinet on Wednesday decided to bring all co-operative banks under the Reserve Bank of India through an ordinance. This was announced by Union information and Broadcasting minister Prakash Javadekar during a virtual press conference.  The statement adds that: Government banks, including 1482 urban cooperative banks and 58 multi-state cooperative banks, are now [...]

A Reserve Bank of India (RBI) committee on ATM fees had recommended charging customers for every withdrawal above ₹5,000, according to a copy of an unreleased report obtained through a Right to Information (RTI) query. A committee headed by V.G Kannan, former Chief Executive of Indian Banks’Association submitted its report on 22nd Oct ober 2019 recommending [...]

BE/RBINOTE/33/2020 The Reserve Bank of India on Friday extended restrictions on the beleaguered Punjab and Maharashtra Co-operative Bank for another six months to 22 December, 2020. However, RBI has enhanced the withdrawal limit for the bank's depositors to ₹1 lakh from the existing ₹50,000.  Here are the excerpts. RBI said in a press release that it has [...]

BE/RBINOTE/31/2020 With an aim to bring a harmony amongst banks irrespective of their date of starting operations, RBI has come out with plans to review ownership rules, and structure of Private Lenders. In this direction RBI has set up an internal working group to review the ownership guidelines and corporate structure of private sector lenders. [...]

BE/RBINOTE/30/2020 Reserve Bank of India has announced about creating Rs. 500 crore payments infrastructure development fund (PIDF) in order to encourage acquirers to deploy points of sale (PoS) Infrastructure which would be both physical and digital modes and would cover Tier 3 to Tier 6 centrs and also Northeastern States. RBI will chip in with [...]

BE/RBINOTE/29/2020 Equated monthly installments (EMIs) on home and auto loans linked to repo rate set to fall further as the RBI's Monetary Policy Committee (MPC) has decided to reduce the repo rate, the rate at which RBI provides short term loans to banks, by another 40 basis points to 4% from 4.40% earlier. Following are [...]

BE/RBINOTE/28/2020      The Reserve Bank of India last month extended the moratorium granted on loan repayment by another three months till August 31, keeping in view the extension in lockdown. With this extension, borrowers can now avail six-months moratorium on loan repayment from March 1, 2020 to August 31, 2020. This moratorium will be given on [...]

BE/RBINOTE/26/2020  The Reserve Bank informs that the Cheque Truncation System (CTS), which is currently operational at the major clearing houses of the country, will be made operational across India by September 2020. Also, RBI said that the Cheque Truncation System (CTS) has stabilised well and it has made large efficiency gains. In view of this, a [...]

BE/RBINOTE/26/2020 The Reserve Bank of India (RBI) delivered an emergency rate cut for the second time in as many months on Friday as it judged that the coronavirus pandemic poses a grave threat to the country and will lead to the first economic contraction in 40 years. Central bank Governor Shaktikanta Das announced a 40 [...]

BE/RBINOTE/25/2020 While announcing a cut in the REPO Rate by 40 basis points to 4%, the MPC meeting also came out with the following points aimed at the country’s Economic Growth: though the lockdown may be lifted by end-May with some restrictions, economic activity even in Q2 may remain subdued due to social distancing measures [...]

BE/RBINOTE/24/2020 Subsequent to the Coronavirus induced lockdown which began on March 25, the RBI Governor in his third address today cut the repo rate by 40 basis points to 4% Also, the Governor also extended moratorium on all term loans by another 3 months. After the lockdown began, RBI had slashed the benchmark interest rate [...]

BE/RBINOTE/23/2020 Credit flows to different sectors of the economy, including liquidity to non-banking financial companies, microfinance institutions, housing finance companies, mutual funds, etc and post lockdown credit flows including provision of working capital, with special focus on credit flows to MSMEs were also deliberated. Implementation of three months moratorium on repayment of loan instalments announced [...]

After the recent news about extension of Lockdown for another two weeks, we hear the news now that RBI cancels the License of CKP Co operative Bank Ltd., leaving the fate of 1.20 lakh account holders’ fate in question. Effective 3rd May, RBI had put certain restrictions on the functioning of CKP Cooperative Bank Ltd [...]

The country’s apex Bank Reserve Bank of India advised Banks and NBFCs to carry out Money Laundering (ML) and Terrorist Financing (TF) risk assessment exercise at regular intervals. Under the master directions on KYC, the Regulator said that a new section has been added on KYC which instructs the Regulated Entities (Res) to carry out [...]

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BE/RBINOTE/19/2020 RBI Governor Shaktikanta Das today announced new measures to maintain adequate liquidity in system, facilitate bank credit flow and ease financial stress RBI announced ₹50,000 crore worth of targeted LTRO and a cut in reverse repo rate India is now in the second phase of a nationwide Lockdown to combat coronavirus, Reserve Bank of India [...]

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BE/RBINOTE/17/2020 The Indian rupee rose against the US dollar today, tracking sharp gains in the domestic equity markets. The rupee today settled at 75.63 against the US dollar, as compared to the previous close of 76.13 against the US dollar. The forex market was closed on Monday on account of Mahavir Jayanti. During today's trade, [...]

BE/RBINOTE/16/2020 The Reserve Bank of India (RBI) today, as an exceptional move, cut market trading hours for both bonds and foreign exchange to four hours, citing possible operational and logistical risks arising from the nationwide lockdown due to the COVID-19 outbreak. The new timings will come into force from April 7, 2020 (Tuesday) and continue [...]

BE/RBINOTE/15/2020 The Reserve Bank of India (RBI) on Friday allowed banks, non-bank financial institutions (NBFCs), including housing finance companies, and other financial institutions to allow a three-month moratorium on payment of installments on term loans amid the disruption caused the coronavirus outbreak. This would mean that individuals EMI repayments of loans taken would not be [...]

BE/RBINOTE/14/2020 In the midst of Virus scare, Reserve Bank of India, has advised the general public that non cash digital payment options like NEFT, IMPS, UPI AND BBPS will all be made available round the clock to facilitate fund transfers, purchase of goods and services, payment of bills etc., NEFT is National Electronic Funds Transfer [...]

BE/RBINOTE/13/2020 Rupee has weakened further and stands now at 74.21 per dollar.  Here is a notification from RBI which intervenes to announce that it will undertake six month dollar sell/buy swap in order to provide liquidity to the Forex market.

BE/RBINOTE/12/2020 The board of Yes Bank has been superseded with immediate effect says a release of Reserve Bank of India The current development comes six months after the regulator did the same with the city-based cooperative lender PMC Bank after a large scam was unearthed The Reserve Bank on 5th March 2020 imposed a moratorium [...]

BE/RBINOTE/11/2020 Here is the latest report from RBI on the growth of Bank credit. The Bank Credit growth declined to 8.5 per cent in January from 13.5 per cent in the year-ago period. This was due to a sharp slowdown in loans to the services sector, according to RBI data. Growth in advances to the [...]

BE/RBINOTE/10/2020 The Reserve Bank of India (RBI) has introduced new design banknotes in the denomination of ₹2,000 as part of the Mahatma Gandhi (New) series. Features: RBI informs that the new design currency notes are distinctly different from the current Mahatma Gandhi Series of bank notes in colour, size and theme. The theme of the new [...]

BE/RBINOTE/8/2020 Let not the RBI keeping policy rates silence you, debt mutual fund investors should brace themselves for volatility in the coming months, according to Debt Mutual Fund Managers.  They are asking investors to stick to short duration Debt Mutual Funds and Corporate Bond Funds. The Reserve Bank of India held key policy rates in [...]

BE/RBINOTE/8/2020 What does the RBI notification recently released say? Banks can claim first deduction of amount equal to incremental credit disbursed as retail loans to specific sectors from NDTL of 14 Feb The amount of incremental credit outstanding from Jan-July 2020 shall be eligible for deduction from NDTL to compute CRR for five years This [...]

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Today, in the sixth bi-monthly monetary policy statement for 2019-20, the Reserve Bank of India announced that the repo rate is left unchanged, as was widely expected. The Monetary Policy Committee (MPC), led by Governor Shaktikanta Das, said it has decided to keep the policy repo rate unchanged at 5.15% and proceed with the accommodative [...]

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BE/RBINOTE/4/2020 In a challenge to meet its financial inclusion agenda, the federal government has provided the lenders a list of location wise branches to be opened by both state-run and private banks, three people aware of the development said. Lenders including State Bank of India, Bank of Baroda, HDFC Bank and ICICI Bank will open [...]

BE/RBINOTE/2/2020 Under RBI approval Shivalik Mercantile Bank, an Urban Co-operative Bank is getting converted into a Small Finance Bank. This is the first such approval after RBI came up with a scheme of VOLUNTARY TRANSITION OF UCB INTO SFB in September 2018. RBI has further added that the inprinciple approval is valid for a period [...]

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BE/RBINOTE/1/2020 Reserve Bank of India, has extended the availability of relaxed terms of asset sales by non-bank lenders to banks by June 30 2020.  The relaxation was earlier provided upto 31st Dec 2019. The rules on Securitization transactions were relaxed originally on Nov 29, 2018, which was after the liquidity crisis crept up on account [...]

BE/RBINOTE/63/2019 An alarming report of RBI reveals that the the total frauds in the FY 2018-19 has increased by 74% with a figure of Rs. 71,543 crore. The number of fraud cases by lenders also jumped to 6,801 in 2018-19 compared to 5,916 in the FY 2017-18. Public Sector Banks accounted for a bulk of [...]

BE/RBINOTE/62/2019 The Regulator Reserve Bank of India, has widened the responsibilities of Bank Auditors. Now the RBI wants more intensive examination of large value accounts, the nature of securities given and financial accounts of borrowers. RBI believes that this will provide more insight in determining the Non-performing assets (NPAs or sticky loans) and other sensitive [...]

BE/RBINOTE/61/2019 The Reserve Bank of India (RBI) in a release has said that they are coming out with measures to make ATMs more secure. In its Statement on Development and Regulatory Policies released during its bi-monthly monetary policy review, the central bank said that it will introduce BASELINE CYBER SEUCIRTY SECURITY CONTROLS FOR ATM SWITCH [...]

BE/RBINOTE/60/2019 The county’s regulator Reserve Bank of India has permitted prepaid instruments, including digital wallets, up to Rs 10,000 to be issued with minimum customer details.  This is done with an intention of boosting digital payments. Issues Faced: The Supreme Court had earlier disallowed the usage of Aadhaar for remote authentication of accounts. Due to [...]

BE/RBINOTE/59/2019 On 5th December 2019 the Monetary Committee meeting of the Reserve Bank of India n surprisingly hit a pause button on cutting interest rate as it gave more importance to prevailing inflation pressure and rising food prices over a worrying slowdown in the economy. So far in 2019 five consecutive cuts in interest rates [...]

BE/RBINOTE/58/2019 The last five reductions so far in 2019, has contributed for lowering of interest rates by a total of 135 basis points over concerns that growth momentum is slowing down. The Reserve Bank may cut interest rates for the sixth straight time on December 5 to support growth that has continued to slip to [...]

The Reserve Bank of India Deputy Governor M K Jain has told that NPA loans have been mounting in the recent days and that the same should be closely monitored. He advised that the repayment capacity should be focused at the appraisal stage itself through its life cycle which is not being done effectively. Of [...]

BE/RBINOTE/56/2019 The Regulator Reserve Bank of India (RBI) has come up with a new set of rules prescin respect of turnaround time for banks to settle failed transactions, including failed ATM transactions where customer’s account was debited but cash was not dispensed. In such cases of failed ATM transactions, the RBI has specified compensation banks [...]

BE/RBINOTE/55/2019 The Reserve Bank of India Governor has informed that there is ofcourse there is sizeable decline in the NPAs in the recent days, however, the provision coverage ratio has gone to 60.5% which was 48.3% a year ago. Also the capital adequacy ratio in the banking system also has gone above the BASEL requirements. [...]

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BE/RBINOTE/53/2019 The Reserve Bank of India Govenor Shaktikanta Das, has said that RBI is regularly interacting with the management of the NBFCs with a view to take corrective steps. The governor revealed this while attending a review meeting on Financial Stability and Development Council held at the ministry of finance. The Reserve Bank of India [...]

BE/RBINOTE/52/2019 All the Private Sector Banks, which includes local area banks, Small finance Banks and Payments Banks have been effective from 1st April 2020, advised by Reserve Bank of India, to raise the variable portion of the remuneration of their Chief Executive Officers, atleast by half of their total pay which includes the Whole time [...]

BE/RBINOTE/51/2019 Article Taken From Economic Times website. Lenders fear slowdown in consumer credit growth as they won't be able to use direct selling agents to source retail loansRBI bans use of agents to chase loans By Sugata Ghosh ([email protected]) Banks will have to change the way they chase retail loans. The Reserve Bank of India [...]

BE/RBINOTE/50/2019 It was five years ago that RBI was sticking on to the Wholesale price Index (WPI) as its nominal anchor for arriving at the Inflation rate and every monetary policy saw the Central Bank raise the interest rate to curb inflation. Later it was the Consumer Price Index (CPI) which was RBI’s anchor for [...]

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BE/RBINOTE/48/2019 Interest rate cuts are expected in the Monetary Committee meeting of RBI on Friday the 4th October 2019.  Experts say that an assured recovery of the bond market can be ascertained only with further rate cuts from RBI. Further, Experts feel RBI should keep the market anticipating for more to come for investors to [...]

BE/RBI/32/2019 The Governor of Reserve Bank of India, says that there is room for further interest rate cuts.  Let us see the details herein. The inflation is said to be under control in line with the RBI’s target. It is also said that Government has limited space for any fiscal expansion. The price stability is [...]

A steep erosion is observed to the tune of Rs. 1.6 lakh crore in the value of Centre’s holding in Public Sector Banks during the past five years.  This happened inspite of the Government ploughing a sum of Rs. 2.5 lakh crore in the PSU Banks.  The huge capital infusion has led to a peculiar [...]

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BE/RBINOTE/43/2019 Reserve Bank of India (RBI) has proposed some measures to strengthen White Label ATMs (WLA).   All of us are aware that there are two types of ATMs viz., One is that are regulated and managed by banks and The others are dubbed as white label ATMs. In the recent days, WLAs have drawn the attention of RBI, paving [...]

BE/RBINOTE/41/2019 Poor Credit appraisal and follow up has resulted in high bad debts in Mudra (Micro Units Development and Refinance Agency) Loans according to the RBI Governor in a meeting with Public Sector Banks Chiefs At the end of 2018-19 (FY 19) the Mudra loans stand at 9.3 per cent of the total advances. Loans [...]

BE/RBINOTE/39/2019 RBI has resorted to Rate cuts in the past. Also, there is a plan to issue of overseas bonds, which in other terms would reduce supply of bonds in India and thus impact their prices Also, the influence on the domestic yields is attributed to the falling bond yields globally, amid expectations of the [...]

BE/RBINOTE/39/2019  The Government of India had suggested stricter data storage rules in order to curb the misuse of data by different companies like transferring to third parties, and other activities.  This was not received well by the Technology companies, including US India Trade groups as well as top US officials, who argued that this would [...]

BE/RBINOTE/37/2019 Ownership of Debit Card has been reducing considerably over the past six months.  How and Why? There is a pressure from the Government to increase the sale of more Points of Sale or Card Terminals for a speedy implementation of Digital Payments. However, the number of debit cards in the country has fallen over [...]

BE/RBINOTE/36/2019 The country’s Regulator Reserve Bank of India, has advised banks to ensure that their ATMs are grouted to a wall, pillar or floor by September end this year.    However, the ATMs which are placed in highly secured placed like, Airports which have additional adequate securities like CCTV coverage and guards of Central/State Government Securities [...]

BE/RBINOTE/35/2019 Good news for Visually Impaired Personnel….. The Reserve Bank of India is looking at a mobile phone-based solution to help visually impaired people easily identify Indian currency notes. At present, intaglio printing-based identification marks are present in banknotes of Rs 100 and above denominations, which is helpful to the visually challenged in identifying them [...]

BE/RBINOTE/34/2019 Reserve Bank of India, the Regulator of Banks, has informed that it will be setting up a committee which would review the ATM charges and Fees of Banks.  This was stated in the Developmental and regulatory activities released by RBI along with its monetary along with its bi-monthly monetary policy report for 2019-20. This [...]

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BE/RBINOTE/33/2019 In order to boost the economy, RBI reduced the Repo Rate by 25 basis points or 0.25 per cent from 6% to 5.75% today.  This cut is the consecutive third cut in row. The MPC committee led by Governor Shaktikanta Das on Thursday unanimously lowered key lending rate or the Repo rate by 25 [...]

BE/RBINOTE/31/2019 Reserve Bank of India, has set up a Task Force in the road to develop secondary market for Corporate Loans and also brought out a committee on the development of housing finance securitisation market.  Few details about this committee are as follows: The Task Force has six members and will be headed by T.N. [...]

BE/RBINOTE/31/2019 Reserve Bank of India, has set up a Task Force in the road to develop secondary market for Corporate Loans and also brought out a committee on the development of housing finance securitisation market.  Few details about this committee are as follows: The Task Force has six members and will be headed by T.N. [...]

BE/RBINOTE/30/2019 The apex body Reserve Bank of India, has now permitted banks to accept Aadhaar number as part of a customer’s original document for the purpose of compliance of KYC (Know Your Customer) guidelines. While amending the KYC norms for regulated entities released on Tuesday, the RBI has permitted Aadhar authentication or offline verification for [...]

BE/RBINOTE/29/2019 If you have lost money from Paytm, PhonePe or other mobile wallets, here is certain new RBI rules that one must be aware of.  This has been brought in in order to bring more clarity as to what happens when unauthorised or fraudulent transactions take place on mobile wallets like Paytm, PhonePe or other Prepaid Payment. For Instrument (PPI) [...]

BE/RBINOTE/28/2019 NBFCs are facing liquidity issues. In order to resolve this, RBI has issued draft circular on LIQUIDITY RISK MANAGEMENT FRAMEWORK. In line with the guidelines NBFCs are required to maintain sufficient liquidity, which includes a padding of unencumbered, high quality liquid assets in order to withstand a range of stress events, establish diversified funding [...]

BE/RBINOTE/26/2019 It is likely that Reserve Bank of India, the Regulator of the country is likely to cut interest rates once more in the coming June. It is hoped that this cut would possible before the rising inflation pressures and increased fiscal deficits, which may not see any route for any way of accommodating in [...]

BE/RBINOTE/25/2019 Reserve Bank of India has diluted its entire stake in the National Housing Bank (NHB) and the National Bank for Agriculture and Rural Development (NABARD) for an amount of Rs. 1,450 crore and Rs. 20 crore respectively and thus has sold these entities to the Government of India.  That is the stake in NHB [...]

BE/RBINOTE/24/2019 A draft framework is in place, released by Reserve Bank of India, for setting up a Regulatory Sandbox (RS) or live testing of products or services rendered by FINTECH firms. The framework suggests the areas which can potentially get a boost from RS are Microfinance, Innovative Small Savings and Micro Insurance products, Remittances, Mobile [...]

BE/RBINOTE/23/2019 Non-deposit taking NBFCs offering Foreign Exchange Transactions on individuals will be eligible for obtaining Authorized Dealer (AD) Category II Licence from Reserve Bank of India.  An RBI notification adds Large set of population is increasingly getting connected with forex transactions on individual accounts. It is necessary to increase the accessibility and improve the efficiency [...]

BE/RBINOTE/21/2019 Recently Supreme Court of India, has pronounced its judgement striking down the RBI Circular of 2018 on Bad Loans and Stressed Assets. On April 2, the apex court quashed a circular issued by the Reserve Bank of India wherein the defaulting companies would be referred to the National Company Law Tribunal for insolvency proceedings [...]

BE/RBINOTE/21/2019

BE/RBINOTE/20/2019 The Reserve Bank of India, the country’s Regulator reduced the key interest by a quarter point for the second time this year which was quite expected.  However, the regulator kept silent on their outlook on the future course of action, inspite of the reducing inflation trend and economic growth forecasts. The Governor Shaktikanta Das [...]

BE/RBINOTE/19/2019 After almost a Decade Reserve Bank of India, the country’s Regulator has come out with a proposal to lift the ban on Exotic Currency Derivatives. Exotic Currency Derivatives were the double edged fancy products which had brought a huge destruction in 2007-08 amidst allgegations of mis-selling and court batles which was due to bets [...]

BE/RBINOTE/18/2019 From 26th March 2019, Mint Street will be operating through both currency and money market instruments, with a newly emerged tool known as SWAP AUCTION which is the first of its kind. Operations: Apart from filling cash into the banking system, this will have multiple layered effects. Lower the cost of currency/interest rate risk [...]

BE/RBINOTE/17/2019 Bankdhan Bank, the new generation Private Sector Bank has received NO OBJECTION from the Regulator Reserve Bank of India, for their proposed acquisition of GRUH FINANCE. RBI has in its letter dated March 14, 2019, communicated that it has no objection in Bandhan Bank acquiring Gruh Finance RBI also stated that this amounts to [...]

BE/RBINOTE/16/2019 The new financial year may see the banks’ margin coming under pressure… Why? RBI has laid stringent measures on Corporate Lending. This will see India Inc increasingly tapping the bond market for its funding requirements. RBI guidelines may push the Banks to increasingly invest in Corporate Bonds from April 1, 2019 Effects on Banks: [...]

BE/RBINOTE/15/2019 Swapping Arrangement Reserve Bank of India, the country’s regulator has announced that it will be injecting a long-term liquidity worth USD 5 billion into the system. This will be done through a Foreign Exchange Swap arrangement with banks for three years. The Swap will be in the nature of a simple buy/sell foreign exchange […]

BE/RBINOTE/14/2019 With a view to increase the capability of white label ATMs (otherwise called as WLAs), the Reserve Bank of India, has permitted White label ATM operators to Buy wholesale cash from RBI and Currency Chests Source cash from any Scheduled Bank, and Display Advertisements pertaining to non-financial products/services within the WLA premises among others. [...]

BE/RBINOTE/13/2019 Reserve Bank of India, the Central Bank of the country has slapped penalties on seven commercial banks for not adhering to regulatory directions related to Global messaging platform SWIFT. The banks are: Private Sector Banks: ICICI Bank                      ..   Rs. 1 Crore Yes Bank                          ..   […]

BE/RBINOTE/12/2019 The apex Bank Reserve Bank of India, has proposed that special rules for inclusion of heads of Private Sector Banks including foreign lenders be framed making 50% of their compensation to be paid as Variable pay.  The proposal in details reads as under: 50% of the compensation of a Wholetime Director (WTD) Chief Executive [...]

BE/RBI NOTE/11/2019 With a view to bring improvement in monetary transmission, an internal study group of RBI recommended that all new floating rates either personal or retails (like Housing, Auto etc.,) and also loans extended to Micro and Small Enterprises released by banks w.e.f 1st April 2019 shall compulsorily be bench marked to one of […]

BE/RBI NOTE/10/2019 Digital Banking fraud has becoming a serious menace these days.  RBI warns banks of these frauds.  RBI adds to say that the Digital banking fraud can wipe out a customer’s bank balance by committing frauds by using Universal Payments Interface (UPI).  How does it operate? Fraudsters make the victims download an app called […]

BE/RBI NOTE/09/2019   The Quarter ended December 31, 2018, saw a total loss of Rs. 11,605 crore of the Public Sector Banks.  The major contributions were from the following: SNo Bank name Loss incurred in Crores 1. Bank of India 4,737 2. IDBI Bank 4,815 The relative figure for the quarter ended September 2018 of […]

BE/RBI NOTE/08/2019 RBI in its MPC (Monetary Policy Committee) meeting cut benchmark lending rate by 0.25 percent which is now 6.25 percent. This was on the expectations of inflation staying within its target range. Also, this is a move that is likely to make the Home Loan and other Loans cheaper The Governor stood neutral […]

BE/RBI NOTE/07/2019 An Interest rate cut by Reserve Bank of India is expected to fast-track the country’s economic activity.  This, in turn, would bring more stability to the digital payments ecosystem and also make it more secure. RBI is expected to address the hopes of many industries, which include: Issues around merchant discount rates (fees […]

BE/RBI NOTE/06/2019 So, Will He Be Shakti or Das?**COURTESY: The Economic Times - 4 Feb 2019 Move over, fiscal policy. Interim Budget 2019 is done, if not dusted. It’s now the turn of monetary policy. But first, what’s the key takeaway from the budget? In cricketing analogy, GoI has bowled a ‘doosra’, a politically clever [...]

BE/RBI NOTE/05/2019 Ahead of the ensuing Monetary Committee meeting, Regulator’s expectations from the Banking sector has been conveyed to the State Run banks, by the Reserve Bank of India Governor Shri Shaktikanta Das. The sixth bi-monthly monetary policy for 2018-19 will be announced by RBI on 7th February 2019. This meeting was also aimed to […]

BE/RBI NOTE/04/2019 ICICI Bank, Kotak Bank, HDFC Bank, and Axis are one of the 11 Banks, who would be part of the consortium of 11 big lenders who are now ready to launch the first block chain linked funding for Small and Medium Enterprises (SMEs).  This is expected to change the system of lending to […]

BE/RBI NOTE/03/2019 With a view to help in improving business RBI relaxed the norms on External Commercial Borrowings: This means all companies who are eligible to raise Foreign Direct Investment will be able to raise funds through ECB route. This results in the expanded list of eligible borrowers in the ECB route This comes in […]

BE/RBI NOTE/02/2019 Financial Technology has now reached its advanced stage. Fintech Start-up companies have now applied for RBI license to operate as Non-Banking Financial Companies. This would help the consumers availing credit facilities from such financial institutions to have a greater advantage and reach to various schemes and loan facilities. While some have applied for […]

BE/RBI NOTE/01/2019   Customers using prepaid instruments and incurring liabilities due to fraud in the incidents are now given the relief if they report the fraud within three days.  This is similar to that of the rules applicable for bank frauds. Prepaid payment instruments(PPI) include Mobilewallets, Prepaidpayments cards and Paper vouchers such as Sodexo. RBI […]

BE/RBI NOTE/57/2018 A change coming in the new year 2019.  Yes.  If your Debit/Credit card is not a chip based, you will be unable to swipe your card, as per RBI instructions.  What does RBI Circular State? All existing bank cards should be Europay,  Mastercard, Visa (EMV) chip­ and pin­based from January 1. The magnetic stripe cards will not be valid after December 31. However, with less than 2weeks to go, banks are finding it difficult to replace their old cards. It is learnt that […]

BE/RBI NOTE/55/2018

BE/RBI NOTE/56/2018 The Government appointed Mr. Shaktikanta Das, as the Governor of Reserve Bank of India for a period of three years.  The  Appointments Committee of the Cabinet approved Mr. Das’s appointment for a three­year period.  Accordingly, the order was issued by the Department of Personnel and Training to this effect. Das retired as Secretary, Department of Economic Affairs (DEA) in 2017 Das was the face of the Government during the demonetization exercise and used to brief the media almost on a daily basis during the period November 9 and December 31, 2016. Under the current stormy relationship between the Finance Ministry and […]

BE/RBI NOTE/54/2018 Effective from 1st April 2019 Interest rates on new loans will be fixed by banks against an external benchmark as per communication released by RBI.  What is cause and effect of this? The existing loans will not be affected with the change in the rules As of now banks are pricing their loans […]

BE/RBI NOTE/53/2018 What is Prompt Corrective Action and what is the recent development related to the differences between the Central Government and the Reserve Bank of India?   Here are the important points one should know to under the concept clearly. Centre contends that because of RBI’s stringent PCA norms that several of the PSU Banks […]

BE/RBI NOTE/52/2018 WhatsApp has sought permission of Reserve Bank of India, in order to expand its payment services.  It is felt that their offerings will improve through financial inclusion. The Chief of WhatsApp has written to the Reserve Bank of India of India (RBI),  seeking a formal nod to expand payments services to all its 200 million users in India. The messaging app, which has drawn fire from the Government over the spread of fake messages on its platform, still waits for a regulatory clearance to launch full­fledgedpayments operations in India  months after its ‘testing’  amassed nearly one million users — and almost two years since its first began […]

BE/RBI NOTE/51/2018 Indian NBFCs which are known as Shadow banks are facing stress on their Balance Sheets after a debt crisis brought a huge hit in NBFCs working in September this year, which in turn brought fears in the minds of investors. This has otherwise resulted in a cash crunch in the sector. SOME GOOD […]

BE/RBI NOTE/50/2018 Issues The fight between the RBI and the Government which was developing since February this year has come to the forefront now. It was on on October 26, that the RBI Deputy Governor Viral Acharya practically accused the Government of interference in the Central Bank’s working In turn the Government brought back the […]

BE/RBI NOTE/49/2018 There are chances of RBI reducing the Cash Reserve Ratio (CRR) by 1% which is expected to bring around Rs. 1.2 lakh crore liquidity in the system. With a huge pressure from the Government, there is a speculation of diluting the BANKS’ CAPITAL NORMS. A reduction in CRR would avoid such a move […]

BE/RBI NOTE/48/2018 RBI is in the process of setting up a digital Public Credit Registry (PCR).  This will capture details of all borrowers across the Financing system.  Let us see more details about this: This wide wide-based digital Public Credit Registry (PCR) would capture loan information of individuals and corporate borrowers. RBI has now invited […]

BE/RBI NOTE/47/2018 In September this year, Reserve Bank of India has released specific guidelines on co-origination of loans by banks, non-deposit taking NBFCs in the Priority Sector. This is mainly aimed to influence the smooth movement of NBFCs in helping the banks in meeting their Priority Sector targets. The Co-origination arrangement is expected to pave […]

COURTESY: FINANCIAL EXPRESS DT: 2/11/18

BE/RBI NOTE/46/2018

BE/RBI NOTE/45/2018 A Reserve Bank of India Report reads Bank Credits have increased by 14.35% to Rs. 89.93 lakh crore during the fortnight ended Oct 12, 2018. Deposits rose by 8.86% to Rs. 117.85 lakh crore during the same period. The figures of Bank Credit and Bank Deposits during the last year for the same […]

BE/RBI NOTE/44/2018

BE/RBI NOTE/43/2018 The inflation in prices is likely to remain sober during the second half-year of 2019.   Risk related to if increased inflation was attributed to the following: Hike in minimum Support Price on various goods Seventh Central pay commission States’ HRA implementation Imported inflation due to rupee depreciation   This is expected to be […]

BE/RBI NOTE/43/2018 Reserve Bank of India, the Central Bank, has announced that it will tighten norms for NBFCs RBI adds that that many of the NBFCs are becoming systemically important and have a higher dependence on short-term sources like commercial papers and mutual funds, CLSA analysts. The modus operandi is still to be announced by […]

BE/RBI NOTE/42/2018 Bandhan Bank was unable to bring down the promoter share holding to 40 per cent from 82.28 per cent which was a pre-set condition while issuing a license to the bank. Due to the above noncompliance RBI has barred Bandhan Bank from opening new branches. Also, RBI issued orders to freeze the remuneration […]

BE/RBI NOTE/41/2018 The high liquidity crisis has forced RBI to ease out the SLR norms for banks.  The liquidity deficit in the banking sector has crossed Rs. 1 lakh crore, and RBI now permits Banks to use a bigger share of their Statutory Liquidity reserves. Under this notification, RBI makes it clear that Banks can […]

BE/RBI NOTE/40/2018 RBI has allowed joint lending to push priority sector loans and to reap the benefit of the strengths of two sets of lenders. On Friday the 21st September 2018, it has set the rules and regulations for this new concept.  It further states The Banks should share a maximum 80% credit risk when […]

BE/RBI NOTE/39/2018 Payment Banks and Companies have only a few weeks left to comply with Reserve Bank of India guidelines in complying with the KYC guidelines.  It involves Compulsory storage of data within the country only As of now data is in all forms which calls for a debate across and protection is needed Consumer […]

BE/RBI NOTE/38/2018 Mobile wallet companies submit monthly status reports to RBI.  This is being closely watched and monitored by Reserve Bank of India. RBI checks as to how many wallet users have created and how many of them have completed authentication or Know Your Customer formalities in line with the RBI directives. In an ecosystem […]

BE/RBI NOTE/37/2018 It is likely that RBI might conduct Open Market Operations this week to bring in liquidity in the banking system. To curb volatility in the money supply, RBI has intervened in the foreign exchange market which has otherwise resulted in the liquidity crunch and further reducing the rupee value against Dollar to Rs. […]

BE/RBI NOTE/36/2018 Three public Sector banks viz Punjab National Bank, Andhra Bank and United Bank of India have put Non-performing assets worth Rs. 4,441 crore on sale. PNB has put on sale 21 accounts amounting to Rs. 1320 crore Andhra Bank has put on sale 53 accounts amounting to Rs. 2549 crore United Bank of […]

BE/RBI NOTE/35/2018 Mumbai based FINO PAYMENTS BANK has entered into problems.  RBI has directed them to stop  opening new Accounts till the processes stipulated are duly followed.  This relates to Deposits Limits which is restricted to rupees one lac. Also, it is learnt that Paytm Payments Bank has been advised to stop acquiring fresh customers […]

BE/RBI NOTE/34/2018   An RBI report released states that as much as 99.3 per cent of the junked Rs. 500 and Rs. 1000 which were demonetized by the Government has since returned to the banking system. RBI also stated that only a miniscule percentage of currency was left out of the system after the Government’s […]

BE/RBI NOTE/33/2018 It is essential to know the Exchange rate of Rupee with other currencies.  How to get it?  Here is how we get it. A country trades with other countries. The home currency’s exchange rate with all the trading partners is required to be taken into account in order to judge the currency’s competitiveness. […]

BE/RBI NOTE/32/2018 Fears caused by Inflation followed by Oil rate hike has led to a hike in overall rates resulting in a weakened rupee. The risk of inflationary pressure coupled with increased oil prices forced the MPC committee of RBI to go for a rate hike in early August this year. The MPC members raised […]

BE/RBI NOTE/31/2018 In order to avoid disgusting surprises in the bankruptcy court or surprises after debt resolution, RBI has identified around 200 loan accounts and thus would be going through books as far as 2011, as a part of their inspection process. Some of such accounts include Videocon, Essar Steel, ABG Shipyard, Bhushan Steel and […]

BE/RBI NOTE/30/2018 Reserve Bank of India would be paying a dividend of Rs. 50,000 crore to the Union Government for the year ended June 30, 2018. It is understood that the board meeting of RBI Directors, which met in Mumbai, on August 8, 2018 has approved the transfer of surplus amounting to Rs. 50,000 crore […]

BE/RBI NOTE/29/2018 What Experts guessed has come true. RBI has raised the REPO rate by 25 Basis Points to 6.50 per cent and the Reverse REPO rate also stands revised to 6.25 per cent which was hitherto 6.25 per cent. This is the first time in nearly five years that the RBI has gone for a […]

BE/RBI NOTE/28/2018 In a period of two months, possibility of the interest rates being hiked by RBI is foreseen during the ensuing bi-monthly policy meeting.   More Details are furnished below: A positive change resulting in high risks of inflation is said to be the main reason for the increase. A poll conducted consisting of over […]

BE/RBI NOTE/27/2018 Container Technology connected with ATMs is well known to people.  Here, exchange of empty Cassettes for full is possible which an appreciable feature of ATMs is.  It is true that these cassettes can easily be accessed by anyone in the cash handling circle.  This is ofcourse an inherent risk. In order to avoid […]

BE/RBI NOTE/25/2018 Rs 100 denomination banknotes in the Mahatma Gandhi (new) series, bearing the signature of its Governor Urjit R. Patel, will be shortly issued by Reserve Bank of India (RBI) The new denomination banknote would bear the motif of ‘Rani Ki Vav’ on its reverse, thus portraying the country’s cultural heritage. The base colour […]

BE/RBI NOTE/25/2018   It is well known that a number of states have waived off farm loans after the 2014 General Elections in 2014.  The grey areas here as per RBI report are: The burden on farmers and their families have obviously reduced But the benefits to the overall economy through higher investments in agriculture and […]

BE/RBI NOTE/24/2018 RBI has signalled that time has come for the regulator to caution banks in making the affordable small ticket home loans more expensive and thus make public mount up more money if banks do not come forward to bring in more stringent standards and remove rising bad loans in the Housing Sector. RBI […]

BE/RBI NOTE/23/2018 A latest report on NPAs  coming under the Prompt Correct Action (PCA) reports reveals that the stressed assets are more contributed by advances through multiple banks/consortium arrangements than those contributed by individual bank advances. This was revealed by RBI in its Financial Stability Report (FSR) for June 2018.  Further, The report suggests that […]

BE/RBI NOTE/22/2018 Urban Co-operative Banks form a major part of Indian Banking.  Reserve Bank of India has come out with a proposal, that Primary Urban Co-operative Banks (UCBs) should set up a Board of Management (BoM) in order to strengthen their Governance.  The RBI guidelines are: The BoM should have a minimum of three members […]

BE/RBI NOTE/21/2018 Reserve Bank of India, the Central Bank has viewed the banks’ lethargic attitude in upgrading the ATMs very seriously.  RBI has now come out with strict timelines to upgrade the ATMs else face action. Details: The Timeline reads that banks should implement a series of security measures by August and thus ensure to […]

BE/RBI NOTE/20/2018 The Reserve Bank of India on Monday came out with draft guidelines on Loan System for delivery of Bank Credit to improve discipline among larger borrowers who enjoy working capital facility from the entire banking system.  The salient features of the draft guidelines are: A minimum level of LOAN COMPONENT in fund based […]

BE/RBI NOTE/19/2018 The rate at which RBI lends to Banks is nothing but REPO rate which stands icnreased by 25 basis, as per decision taken in the Monetary Policy Committee meeting held in Mumbai yesterday.  More reports of the increase are as given below: RBI had raised the rates by 25 Basis Points to 8 […]

The FSR (Financial Stability Report) of RBI December 2017 points out the alarming figures of Bank NPAs.   The statistics reveals the figures as under: Gross Non Performing Advances (GNPA) ratio of scheduled commercial banks (SCBs) increased from 9.6% to 10.2% between March and September 2017. The GNPA grew by 18.5% on a year on year […]

BE/RBI NOTE/18/2018 The crucial Monetary Policy Committee (MPC) is coming up on 4-6 June 2018.  Economists, have predicted with the increased oil prices and an upward trend in the inflation rates, the crucial meeting of MPC on 4-6th June 2018 might come up with a 25 basis points hike in key policy rates. Causes and […]

BE/RBI NOTE/17/2018 Volatility of Hot money flow is envisaged with the recent actions initiated by the Central Bank (Reserve Bank of India) in attracting the foreign buyers in investing in the Indian Debt Market.  The crux of the issue is as under: Causes: RBI lifted a restriction limiting foreign investors in buying of bonds of […]

A figure which was Rs. 2.67 trillion on 31st March 2015 has soared to Rs. 6.89 trillion on 30th June 2017, reports the Minister of State for Finance on April 6, 2018. Don’t think this is something related to our GDP or profit earned on our Exports.  It is a figure which could bring a […]

BE/RBI NOTE/16/2018 We might recall that on April 6, 2018, Reserve Bank of India, had made it mandatory for banks, e-wallets and payment gateway providers to withdraw support for cryptocurrency exchanges in a period of three months. REPERCUSSIONS: This has now compelled the country’s three large cryptocurrency exchanges namely ZEBPAY, KOINEX AND ZECOEX to offer […]

BE/RBI  NOTE/15/2018 Updates on KYC Norms (Know Your Customer Norms) have now come out from Reserve Bank of India for Banks and financial entities.  RBI for the first time since 2016 has strictly regulated these institutions from opening fictitious named accounts.  The guideline adds: The REs (Regulated Entities) should ensure that no accounts are opened, […]

BE/RBI NOTE/14/2018 An early stage crypto currency platform KALI DIGITAL ECO SYSTEMS, from Ahmedabad, which runs the crypto exchange CoinRecoil has filed a petition in the Delhi High Court for quashing the recent guidelines of Reserve Bank of India, which bans from dealing with any business entity dealing in cryptocurrencies.  The petitioner states that the [...]

BE/RBI  NOTE/13/2018 Reserve Bank of India, pronounced an increase in the FPIs limits (Foreign Portfolio Investment Limits), for buying Indian Government and Corporate bonds, which possibly would increase the demand for securities and a fall in the bond yields. This move was taken by RBI in consultation with the Government after the expiry of the […]

What does RBI’s bi-monthly Monetary Policy Committee meeting reveal? Bullish on growth and dovish on inflation, is the revelation and meaning of the monetary policy review revealed by the central bank on Thursday the 5th April 2018. It was expected that the MPC headed by RBI Governor, came out with a status quo position on […]

BE/RBI  NOTE/12/2018 The April meeting shortly coming up might induce RBI to keep monetary policy steady, however would result in its aggressive stand by the end of this year.  The interest rates could go up in early 2019, as inflation pressures build, according to a Reuter poll of economists. Further, Between March 23-28, all 61 economists […]

BE/RBI  NOTE/11/2018 There is news that RBI, the apex bank may  keep policy rates on hold and maintain its neutral stance at the ensuing policy review meet early next month.  According to the global financial services major, though the country’s economic growth is on an uptrend, recovery remains in an early stage, and this warrants […]

BE/RBI NOTE/10/2018 Demonetised Rs 500 and Rs 1,000 notes, were counted and processed for genuineness, are shredded and blocked, before being disposed of through a tendering process, the RBI has said.  Before this, RBI had earlier estimated the value of old Rs 500 and Rs 1,000 notes received, as on June 30, 2017, at Rs […]

BE/RBI NOTE/9/2018 Preventing a Fraud is not possible, is what the RBI Governor says, referring to the Rs. 11,400 crore scam at the Punjab National Bank.  There is an overall talk going on that RBI supervision team should have caught the fraud that has happened, which the Governor adds is possible to conclude after any […]

BE/RBI NOTE/8/2018 The Reserve Bank of India, released the Publications on Households’ financial assets pattern every year, which is now made a quarterly release.  Housinghold savings which is an important measure, for finding macroeconomic and systemic risks, is taken into consideration for prepartion of bi-annual financial stability report. The first of such quarterly report was […]

BE/RBI NOTE/7/2018 It is very clear that RBI guidelines in respect of KYC norms, money laundering activities and currency chest management, including detection and impounding of counterfeit notes is very very important. It may be noted that Counterfeit notes under circulation is a menace in the economy which requires severe punishment.  Not bringing the facts […]

BE/RBI NOTE/6/2018 The Priority Sector lending Norma (PSLLending Norms) for Foreign Banks has further been tightened by Reserve Bank of India. With this RBI has made it mandatory for the Foreign Banks, to create sub targets, with a view to confirm that a portion of their loans is extended to the small and marginal farmers […]

BE/RBI NOTE/5/2018 Likely-hood of RBI increasing interest rate after April policy review Bouncing back, India, has now become the fastest growing major world economy in the October-December quarter, thus overtaking China, for the first time in a year. This was due to government spending, manufacturing and services having picked up during the quarter.  The salient features: India, […]

BE/RBI NOTE/4/2018 The resolution time for resolving large NPAs, has been specified in strict terms by RBI.  Non compliance would result in referring them for necessary insolvency proceedings.  Also, the debt restructuring schemes viz SDR, S4A and such other schemes have been withdrawn by RBI. While announcing this, RBI has also defined various resolution plans […]

BE/RBI NOTE/3/2018 The RBI Governor opined that the increased rates and changes in the fiscal policy of US Government, could possible affect the global markets and more so the emerging markets.  Also, the Governor Mr. Urjit Patel that the policies of US in the past had caused the Latin American Debt Crisis, and now the […]

BE/RBI NOTE/2/2018 No change in the Repo Rate is the current news in the six member Monetary Policy Committee (MPC), meeting headed by RBI Governor Urjit Patel.  The Repo Rate remains at 6 percent and the Reverse Repo Rate at 5.75 percent. The Reserve Bank of India, meeting amidst the storm in the global market […]

There is a likelihood of SBI slashing down the minimum balance requirement for savings accounts to the extent of 70 per cent which is at present Rs. 3000 for metros, Rs. 2000 for semi urban and Rs. 1000 for rural areas.  Also, the mandate for maintenance is likely to be changed to quarterly from monthly […]

Encouraged with the Policies and guidelines, Housing Loans disbursed below Rs. 2 lacs, formed a major segment of the Housing Loan portfolio, ultimately ending up with a whopping increase in the NPAs of such loans given below   Rs. 2 lacs. Higher NPAs were seen, on the Housing Loans released by State owned PSU Banks, when […]

BE/RBI/46/2017 A report from RBI states that there is increase in Household Deposits held in banks. The increase is said to be around 2 percentage points and stands at 63.5 per cent in FY 2017 which is said to be due to note bank driven spurt in saving deposits by individuals. The Government had pulled […]

BE/RBI/45/2017 The 6-member Monetary Policy Committee (MPC), headed by Governor Urjit Patel of the Reserve Bank of India (RBI) recently has taken a call to keep the Repo or key lending rate unchanged at 6 per cent, however, leaving the inflation concept aloof.  The prediction was on the basis of consumer inflation which increased in October to 3.58 […]

BE/RBI/44/2017 Reserve Bank of India, has revised the merchant discount rate (MDR) from January 2018, which could compel the retailers to go for cash transactions.  The details are: MDR will be 0.4 per cent of the purchase value or Rs. 200 whichever is lower for shops which generate revenue up to Rs. 20 lacs. For […]

BE/RBI/43/2017 The Reserve Bank of India had notified the following conditions on Conversion of Debt in to Equity. a) Securitisation Companies / Reconstruction Companies (SC/RCs) are permitted to convert a portion of debt into shares of the borrower company as a measure of asset reconstruction provided their shareholding does not exceed 26% of the post […]

BE/RBI/41/2017 dt 1.12.17 Reserve Bank of India (RBI) has clarified that it is mandatory to link Aadhaar cards to the bank accounts under the Prevention of Money Laundering regulations in the country, the Public Sector Banks’ Officer union has demanded that linking should be put on hold till the Supreme Court comes out with a […]

BE/RBI/40/2017 dt 9.11.17 It is well known that Government has planned to induce fresh capital to the PSU Banks.  In the process, the Government has requested RBI to see the possibility of funding a part of the Rs. 2.11 lakh crore which is the amount planned to recapitalize the PSU Banks. In this context, it […]

Hopes on pushing the market with a demonetization effect, through a cashless economy is of-course nice to hear.  Has it been effective?  Yes, it is working…… but very slowly.  It has to be agreed though there has been a heavy thrust for using Wallets, Non-UPI Banking apps and Aadhaar enabled payments, they are still to […]

BE/RBI/39/2017 Reserve Bank of India, has come out with the statement that corporate borrowers having exposure of Rs 5 crore and above will have to mandatorily obtain 20-digit Legal Entity Identifier (LEI) from banks, a move that is aimed at improving risk management.  Further the RBI release adds that The timeline for implementing the LEI, […]

BE/RBI/35/2017 More stringent norms are brought in by the Central Bank, to stop fake wallet transactions.  This is expected to bring in a new life for mobile wallet operators which are expected to be fraud free.  It would now be possible for the customers to make uninterrupted transfer of money between wallets of various companies […]

BE/RBI/35/2017 Now lenders can invest in Reits and Invlts, and the exposure is capped at 10 per cent of the unit capital investment of such instruments, says an RBI report. RBI had earlier, issued the Master circular, on the Financial Services of Banks, the Central Bank advised that banks should restrict themselves to 10 per […]

BE/RBI/34/2017 RBI Skips Any Changes In Rates And Revises Growth Forecast The Central Bank has: Kept the policy rates unchanged Revised the Inflation forecast for the second half of the fiscal year and Brought down the growth target severely While keeping the repo rate at 6 per cent without any change being made, RBI also […]

BE/RBI/33/2017 3rd and 4th October 2017 will be review of the Monetary Policy by RBI.  The Business Standard poll reveals that the chances of a rate cut is bleak and that the Central Bank would prefer to watch the proposed fiscal push by the Government, when the inflation rates are going up.  Expectations are A […]

BE/RBI/32/2017 Jaypee Infratech insolvency: There’s a viable solution to home buyers’ troubles and it’s built in bankruptcy code – IIT PROFESSIONAL VIEWS Recent issue related to Insolvency Law, involved Jaypee Infratech and its flat buyers.  Now, after a deliberation there are possibilities of an amendment  to the Insolvency and Bankruptcy Colde (IBC). Issues discussed are […]

BE/RBI/31/2017 Reserve Bank of India is not comfortable with NON FIAT crypto currencies like BITCOIN, according to a report received today. What is CRYPTOCURRENCY? CRYPTOCURRENCY is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. […]

BE/RBI/30/2017 DBS Bank which is Singapore based has received in principle approval from RBI for setting up its wholly owned subsidiary in our country.  This is the second foreign bank which gets such approval after Bank of Mauritius. DBS applied for WOS (Wholly owned subsidiary) when RBI came out with its guidelines in 2013-14. During […]

BE/RBI/29/2017 It is after a day that Central Bank’s data revealed that Demonetization effect has been unprofitable exercise for it, the FM has informed that still they are hopeful of getting a higher dividend from RBI in the current fiscal year. The Finance Ministry official said that the matter is under discussion with RBI. RBI […]

BE/RBI/28/2017 Inflation increased further due to a decrease in increase of food prices, however was well within the Target set.  RBI’s consumer price index rose 2.36 per cent in July as compared to the previous year.  The rise is said to be faster than what was originally expected. This has brought down the chances of […]

BE/RBI/27/2017 RBI reduces REPO Rate to 6 per cent RBI the Apex Body of Indian Banking system, today announced cutting the Repo rate by 25 basis points thus bring the Repo Rate to 6 per cent, the lowest since November 2010 (also bringing down the Reverse Repo Rate to 5.75 per cent).  The RBI Governor […]

BE/RBI/26/2017 RBI to release Rs. 200 notes: Rs. 2000 notes printing stopped. Since five months, RBI has not printed the Rs. 2000 notes and has now moved to print Rs. 200 notes, from its Mysuru Printing press, and these are expected to hit the market by next month.   Along with printing of other notes, […]

BE/RBI/25/2017 DATA ON OLD NOTES DEPOSITED The Parliamentary committee met here and have been given to understand that the old notes deposited are still under counting. Mr. Urjit Patel, RBI Governor, who attended the meeting was not able to give an exact figure of how much had returned to the system as on date.  The […]

BE/RBI/24/2017 Frauds under e-platforms are on the increase.  Recent RBI directives on e frauds are many. To name a few: RBI directed banks to credit the amount involved in the unauthorised electronic transaction within 10 working days to the account holder. – 7th July 2017 Reserve Bank of India (RBI) has come out with rules […]

BE/RBI/23/2017 Indeed in a major move, Reserve Bank of India, on Monday squeezed the investment limit in Government bonds for Foreign Portfolio Investors with a restriction that 75% of the investment should go to long term investors and unutilized portion would not be made free for the general category.  What does this mean? This will […]

BE/RBI/22/2017 The Financial Stability Report warns that the frauds in Banks is on the high increase, and doubts that banks might be hiding some of the fraud cases.  RBI further adds that before a Corporate Account is declared as Fraud, obviously well before 2 or 3 years, they would normally get turned to NPA category. […]

BE/RBI/21/2017 RBI has set up an Oversight Committee to with an aim to clear the stressed Corporate Loans, which has been now advised to review 12 Corporate Accounts.  Additionally 6 more accounts in the coming days with debt of Rs. 10,000 crore would be added, for review, under Scheme for Sustainable Structuring of Stressed Assets […]

BE/RBI/20/2017 At the meeting of the Bank chiefs on Friday the 23rd June ’17, RBI demanded a huge rise in the provisions on Loans, which are being referred to Bankruptcy courts.  Possibly this is likely to end up with additional expenditure of Rs. 50,000 crores on the bankers. The rule states that: At least 50% […]

BE/RBI/19/2017 RBI has informed that the credit growth of Banks, has risen to Rs. 7,658.212 crores, during the fortnight ended 9th June which was Rs. 7,222.939 crore during the same period last year. This means that there is a growth in the credit portfolio to the tune of 6.02 per cent during the period under […]

BE/RBI/18/2017 RBI contemplates to increase the foreign exchange (FOREX) buying and proposes to cut 25 Basic points in interest rate on 2nd August 2017. BofAML (Bank of America Merrill Lynch), the global financial services, is likely to take back the liquidity from September this year, which means, RBI should be able to recoup forex reserves. […]

BE/RBI/17/2017 RBI policy Monetary Policy Committee decision Salient Features of the meeting are: MPC leaves rates unchanged, lowers inflation forecast MPC decides to leave repo rate unchanged and lower its inflation forecast. SLR has been brought down by 50 basis points with no change in HTM. Thus, the forecast on inflation was also lowered, due […]

BE/RBI/16/2017 LENDERS SHOULD HAVE CFOs, CTOs Banking Sector has been witnessing various changes in the recent past.  Banks are expected to have people devoted fully for handling the functions of CFOs and CTOs, which is not yet complied with by many of the Banks.   Now RBI has come out with yet another change in the […]

BE/RBI/15/2017 Presently, bank notes are printed and coins minted at four security presses which are received at 19 issue offices of RBI.  From RBI they are further distributed to 4,000 currency chests operated by RBI.  Also, the soiled and unfit notes are withdrawn by banks and remitted in the chests. Across over 4,000 currency chests […]

POSSIBLE 25 BASIS POINT RATE CUT BY RBI The Central Bank had kept the Repo Rates unchanged in the Monetary Policy Committee (MPC) meeting and changed the Reverse Repo Rate by a quarter point. The current weak growth and softening side of inflation rate might influence the Central Bank to cut policy rates by 25 […]

The Central Bank has preferred to keep the Repo Rates unchanged in the Monetary Policy Committee (MPC) meeting.  However, it changed the Reverse Repo Rate to 6% which is the rate paid by RBI for excess deposits kept, by a quarter point. The purpose of doing so was with a view to decrease the alteration […]

(1) Note Denomination: RBI during the grace period allowed Indian Citizens residing in India who were abroad during November –December 2016 to exchange the old 500 and 1000 rupees notes upto 31st March 2017 and Indian Citizens who are residents outside India upto June 2017.   There was a complaint about the long queues at RBI […]

Depositors of The  Kapol Co-operative Bank were permitted to drawn amount only upto Rs. 3,000 from their Savings Bank and Current Bank Account as per Reserve Bank of India directives. Also, RBI added that Kapol Co-operative Bank was in troubled waters, and thus barred the bank from granting or renewing any loans or advances without […]

The crack in foreign shareholding cap in HDFC Bank, in recent times, has led to talks between SEBI and RBI. Shocked by a recent breach of foreign ownership limit at HDFC Bank, regulators and intermediaries are facing the question of monitoring foreign investors in real time. SEBI and RBI held talks on exchange of data […]

The Reserve Bank of India (RBI) is coming out with a Standard Operating Procedures (SOP) for approval of foreign direct investment (FDI) proposals by ministries. A recent meeting between the ministries, discussed the proposal for setting up norms for FDI approvals in sensitive sectors, which are currently under government approval of the FDI policy.  The […]

With the figures of the Listed Banks, available as on 31st December 2016, the RBI says that the banks’ asset quality position appears to have improved. The  gross non-performing assets (NPAs) ratio in the banking system has gone up, though the ratio has come down for the first time in some quarters says the report. […]

Come April 2017, RBI has plans to bring down the Merchant Discount Rates on debit card transactions.  The plans are to rationalise the charges on the basis of merchant turnover rather than the slab rate followed at present.  The rates will also differ for general transactions and Government transactions. The proposed changes are: SN Transaction […]

BE/RBI/4/2017 The monetary policy committee (MPC) kept the Reserve Bank of India’s policy rates unchanged, and shifted to Neutral position from Accommodative, in order to keep the pendulum move equally on either side (ie.,either an increase or decrease) which resulted in the bonds markets being upset with the pause policy of RBI. CRISIL opines that […]

BE/RBI/5/2017 Reserve Bank of India has announced that the withdrawal limit in respect of Savings Account  would be lifted wef 13th March 2017 in two phases, due to the current remonetisation leap.  It added that the limit on cash withdrawal would be Rs. 50,000  per week w.e.f 20th Feb 2017 (which is currently Rs. 24,000/-) […]

BE/RBI/3/2017 When the six-member Monetary Policy Committee (MPC) of the Reserve Bank meets on February 7 and 8, their decision on a possible rate cut will be influenced by the budget outcomes more so with due anxiety placed on the impact of demonetisation on growth and a gentle inflation outlook despite rising fuel prices. Many […]

BE/RBI/2/2017 There are different opinions as to whether Reserve Bank of India (RBI) will cut rates when it unveils the last monetary policy of the financial year on February 8.  The economists on one hand add that the central bank will hold and let liquidity take care of the rates, however, others feels, RBI may […]

BE/RBI/1/2017 What is final Exposure? A bank’s exposures to its counterparties may result in concentration of its assets to a single counterparty or a group of connected counterparties.  This is an issue which requires to be addressed.  To remove this anomaly  the Reserve Bank, in March 1989, fixed limits on bank exposures to an individual […]

BE/RBI/37/2016   RBI has published its Financial Stability Report (FSR), which states that the health of Banking Sectors lending sector is struggling with a deteriorating asset quality which is a hidrance to their growth.   The report adds, that overall India’s financial system remains steady, however, the stress on the banking sector, particularly on the […]

Come December the RBI monetary committee will come out with its next policy details.  The MPC (Monetary Policy Committee) Panel which is vested with the task of setting the regulator’s rates, has been unanimous in its decision that the REPO rate should be kept unchanged which stayed at 6.25 per cent. During a meeting on […]

BE/RBI/36/2016 To unblock the storage facility of banks with the old Rs. 500 and 1000 notes, RBI has now permitted the lenders to park such currencies at the currency chest at the district level keeping in view the mounting deposits.  RBI further clarified that the Currency Chest, which is operating at the point shall be […]

BE/RBI/35/2016 The Reserve Bank of India (RBI) Governor Urjit Patel on Sunday said the central bank is monitoring the situation on a daily basis and taking necessary action to “ease the genuine pain of citizens”, and would be putting things in place as soon as possible. Patel also informed that RBI has announced an incremental […]

BE/RBI/34/2016 Now that the bank currency chests are over flowing with old, banned notes, the Reserve Bank of India (RBI) informs that these specified bank notes (SBN) could be deposited at their offices. RBI has further added that these SBNs will remain in the vaults of RBI offices under whose jurisdiction they are located, under […]

BE/RBI/33/2016 Giving heed to the problems faced by the common man, after demonetisation of 500 and 1000 rupee notes by the Indian Government, the Reserve Bank of India (RBI) has come out with various measures and adds that total exchange and deposits effected from November 10, 2016 till November 18, 2016 amounted to Rs. 5,44,571 […]

The Reserve Bank today said registration certificates of five non-banking financial companies (NBFCs) have been cancelled while two surrendered their certificate to the central bank. These seven entities,  RBI said, “cannot transact the business of a non-banking financial institution”.The entities whose certificates were cancelled are SIMCO CONSULTANTS, LUNKAD SECURITIES, RAJVIR MARKETING AND INVESTMENT, CRYSTAL INVESTMENTS AND […]

With a view to remove the Corporate Stress, Reserve Bank of India, made far-reaching changes to the present loan restructuring schemes like S4A, 5/25 and SDR.  The RBI has now increased the time limit of 90 days to 180 days given to the lenders for bringing out a Restructuring package, under S4A scheme (Sustainable Structuring […]

With the demonetization of 500 and 100 rupee notes, RBI has now come out with the fresh 2000 currency notes. It was believed that  the new Rs. 2000 notes issued by RBI would have a GPS chip to enable its tracing via satellites. GPS tracking is the surveillance of location through use of the Global Positioning System (GPS ) to track the […]

Though the previous Governor Raghuram Rajan has left, the Big Daddy still controls the Indian currency market. The RBI, which is called the Big Daddy in Mumbai money market, intervenes to curb rupee swings which was a strategy used by former Governor Rajan which saw a great volatility against Chinese yuan and pegged Hong Kong […]

RBI hints at further rate cuts: Decline in inflation and normal monsoon have allowed the Reserve Bank of India (RBI) to the short-term lending rate, or repo rate, by 25 basis points to 6.25% from 6.50% earlier.  Perhaps hinting at further rate cuts, the RBI said that the key to future decisions viz food inflation […]

RBI came out with operating guidelines for differentiated banks — payments banks and small finance banks — being set up to bring in new players who are now empowered to leverage on technology for financial inclusion in a cost effective way. RBI granted in-principle approvals to 11 entities for setting up payments banks (PBs) in […]

With cell phones becoming a crucial part of banking, the RBI has made it mandatory for banks to allow customers to register their mobile numbers through any ATM.  Banks have also been told not to insist that customers visit only their home branch to get their mobile numbers registered and to have this facility for […]

BE/RBI/25/2016 With a view to increase the Farmers’ income to twice than what it is now, RBI has advised Banks to revisit their documentation for crop loans, simplify them wherever required and ensure to speedily sanction and disburse loans within the specified time limits. RBI also advised that the lead bank which acts as the […]

BE/RBI/21/2016 RBI has made it clear that the coin was in circulation, saying people should not hesitate in using the TEN RUPEE coins for transactions. According to the availablereports people in UP have openly refused to accept ten rupee coins.  The district magistrate of PILIBHIT has warned of strict action, taking the note of messages […]

BE/RBI/24/2016 As part of the consolidation process within the SBI Group, its five associate banks including State Bank of Bikaner and Jaipur (SBBJ) will soon submit to the Reserve Bank the scheme of acquisition as ratified by shareholders. The board of the directors has considered the report of the expert committee set up to look […]

BE/RBI/23/2016 Concerned over low use of debit cards in electronic payments, the Reserve Bank of India wants banks that are not installing card accepting machines to contribute to a fund that will subsidise installation of point of sales (PoS) terminals. There are over 68-crore debit cards in India. Over a third of these have been added […]

BE/RBI/22/2016 The possibility of a rate hike in December by the US Federal Reserve – the central bank of the United States that controls the country’s money supply – and the expectation of the inflation falling further in India, may give adequate room for the new Reserve Bank of India Governor Urjit Patel to go […]

BE/RBI/20/2016 Now interest rates, will no more be decided by the RBI Governor, as the sole authority. The Government has appointed three members to the Monetary Policy Committee (MPC). The first review meeting is scheduled for October 4 2016. Following are the three academicians occupying the post: Mr. Chetan Ghate, Associate Professor at the Indian […]

Investment banks have had a meeting with IDBI Bank this week in Mumbai to plan out institutional share sale and offering of preferential shares to big investor who may also take over the management of the bank. This fund raising is expected to help the Bank strengthen its balance sheet and strap out the bad […]

Reserve Bank has allowed foreign investors to buy up to 100 per cent in Crompton Greave Consumer Electricals Ltd. “Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 100 per cent of the paid up capital of Crompton Greaves Consumer Electricals Limited under the Portfolio Investment Scheme (PIS),” RBI said in […]

The ministry of electronics and IT (MEIT) had written to the Reserve Bank of India (RBI) last week requesting for clear directions from the banking regulator for the use of e-sign — an Aadhaar-based electronic signature mechanism developed by the government. Even though the e-sign system is fully developed and operational, many agencies have apprehensions […]

BE/RBI/18/2016 RBI has come out with a scheme, which it expects would result in better realization of stressed assets.  This is expected to widen the market for the sale of stressed assets. Precisely RBI permits the banks, to sell these assets to other banks, non-banking financial companies or any other financial institutions which was hitherto […]

BE/RBI/17/2016 In order to facilitate the MSME (Medium Small and Micro Entrepreneurs), in getting a hassle free credit, the Deputy Governor of RBI Mr. S S Mundra announced that a framework of accreditation of Credit Counsellors will be brought in place.  These Credit Counsellors will facilitate credit availability for small businessmen. SMSE are entrepreneurs who […]

BE/RBI/16/2016 Indeed it is a matter of high regret that cases of unauthorized electronic Banking Transactions are on the increase.  RBI has hence proposed that customer will have no or zero liability in case of fraud being committed because of bank’s negligence or third breach. However, RBI also adds that wherever there is Involvement of […]