In its last MPC meeting in August, RBI kept policy rates unchanged to help tame inflation that in recent times had surged past 6 per cent mark, and said the economy is in an extremely weak condition following the pandemic. The RBI has cut policy rates by 115 basis points since February.

The Reserve Bank of India (RBI) will keep rates on hold until early next year in a delicate balancing act between curbing high inflation and lifting the economy from its worst recession on record, a Reuters poll of economists showed.

In order to check banking fraud, the RBI has decided to introduce from January 1, 2021, the ‘positive pay system’ for cheque, under which re-confirmation of key details may be needed for payments beyond Rs 50K. Availing this facility would be at the discretion of the account holder. However, banks may consider making it mandatory … Continue reading Positive pay system to come into effect from Jan 1: RBI

RBI unlikely to push deficit monetisation

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The Reserve Bank of India may not be keen on pursuing suggestions for monetisation of deficit, a proposal that is being pushed by a section of policy makers in Delhi as a way to reduce market borrowings during the second half of the current financial year.

Parliament on Tuesday passed amendments to the Banking Regulation Act to bring cooperative banks under the supervision of the RBI, a move aimed at protecting the interest of depositors. The Banking Regulation (Amendment) Bill, 2020, which replaces an ordinance that was promulgated on June 26, was passed by a voice vote in Rajya Sabha.

The RBI’s norms on corporate loan restructuring are likely to exclude a large number of companies as bankers expect advances worth only Rs 2-3 lakh crore will qualify for recast. A five-member committee has submitted its recommendation to the central bank and lenders will approach their boards once the report is released.

The Reserve Bank of India (RBI) on Monday released a report by the K V Kamath Committee which was formed to make recommendations on the required financial parameters to be factored in the resolution plans under the ‘Resolution Framework for Covid-related Stress’.

The Reserve Bank of India (RBI) on Friday issued revised guidelines for priority sector lending to enable better credit penetration to credit deficient areas and increase lending to small and marginal farmers besides weaker sections.

Lenders have sought clarification from RBI on whether the maximum two-year extension of loan tenure that has been allowed is inclusive of the time for repayment of dues during the moratorium.

The Reserve Bank of India (RBI) appears to have stopped trying to rein in the rupee to help exports, letting the currency drift to a six-month high and raising expectations it will gain further, analysts and market participants said.

The RBI on Friday stepped in to stem the spike in benchmark yields on 10-year government bonds as rising yields recently have been threatening the central bank’s efforts to lower interest rate for buyers of home, car and consumer goods, etc, and also for India Inc.

The RBI on Tuesday announced special open market operations (OMO) of government securities worth Rs 20,000 crore. “On a review of current and evolving liquidity and market conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of G-Secs under OMO for an aggregate amount of Rs 20,000 crore in two tranches of … Continue reading RBI announces fresh OMO purchase, sale of G-Secs

Cautioning that India’s potential output may undergo a structural downshift following the pandemic, the Reserve Bank on Tuesday made a strong case for deep-seated and wide-ranging reforms to regain losses and return to the path of sustainable economic growth.

RBI’s MPC feared broader inflation

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Fear of inflation dominated the monetary policy committee (MPC) meeting of the Reserve Bank of India on August 6. Members said supply disruption was pushing up prices even as consumption patterns changed in favour of food, which was increasing the risk of inflation becoming broad-based.

As per the framework, the companies with a net worth of over Rs 500 crore will be eligible to set up an umbrella entity which among other things will be permitted to set up, manage and operate new payment systems in the retail space comprising ATMs, White Label PoS, Aadhaar-based payments and remittance services.

The new ‘Positive Pay’ mechanism introduced by the Reserve Bank of India (RBI) will make cheque payments safer and reduce instances of frauds. Issuers will be able to send all details to their bank, thereby ensuring faster clearance of cheques above Rs 50,000. All cheques will be processed as per the information sent by the … Continue reading RBI’s ‘positive pay’ feature: All you need to know

The Reserve Bank of India (RBI) on Thursday decided to keep key lending rate unchanged in its August policy review meeting. The six-member monetary policy committee (MPC), headed by RBI governor Shaktikanta Das, kept repo rate untouched at 4 per cent; and reverse repo rate at 3.35 per cent.

The Reserve Bank on Thursday announced an additional special liquidity facility (ASLF) of Rs 10,000 crore equally split between Nabard and the NHB to help small financiers and home loan companies amid Covid-19 difficulties.

The Reserve Bank of India (RBI) on Thursday announced a loan restructuring window for corporates following bankers and industry demand. The restructuring will be allowed as per the prudential framework issued on June 7, 2019, RBI governor Shaktikanta Das said.

The Reserve Bank of India (RBI) on Thursday announced a scheme on pilot basis for offline retail payments using cards and mobile devices to encourage customers to go for digital transactions even in those places that lack internet connectivity.

The Reserve Bank of India (RBI) on Thursday said it will set up an ‘Innovation Hub’ in the country for ideation and incubation of new capabilities which can be leveraged to deepen financial inclusion and promote efficient banking services.

The Reserve Bank of India (RBI) on Thursday said monetary transmission has improved considerably due to comfortable liquidity conditions and banks have passed on the benefit to borrowers by reducing lending rates by about 1.62 per cent in the last nearly one-and-a-half years.

The move follows recent geopolitical developments that have spurred tighter scrutiny of Chinese capital coming into local startups via tax havens like Mauritius, where most venture capital (VC) and private equity (PE) funds are registered.

The Reserve Bank of India may refrain from cutting the benchmark lending rate on Thursday but can announce other measures like restructuring of loans amid the urgency to revive the coronavirus-hit economy, experts said. The six-member Monetary Policy Committee, headed by the RBI governor, is scheduled to announce its decision on August 6. This is … Continue reading RBI may go for status quo, announce measures to boost growth