State Bank of India (SBI) has linked its interest rate on savings account with balance above ₹1 lakh and short-term loans to Reserve Bank of India’s(RBI) repo rate. SBI had taken this decision even though RBI had deferred the plan to link the rate of interest to external benchmarks like the repo rate or Treasury… Continue reading New SBI rules link savings bank interest to repo rate: what has changed, why
Tag: RBI
Bad debt norms:RBI to seek EC nod
The Reserve Bank of India (RBI) has decided to reach out to the Election Commission (EC) before releasing its new circular for banks. The new circular would replace its February 12 circular that Supreme Court had disallowed earlier.The Model Code of conduct specifically exempted the conduct of monetary policy which is crucial part of the… Continue reading Bad debt norms:RBI to seek EC nod
RBI extends ombudsman scheme to non-deposit taking NBFCs
The Reserve Bank of India(RBI) has decided to extend the Ombudsman Scheme for Non-Banking Financial Companies(NBFCs),2018 to non-deposit taking non-banking financial companies(NBFC-NDs) having asset size of Rs 100 crore or above with customer interface. This decision has been taken to ensure expeditious redressal of complaints against deficiency in services concerning loans and other matters relating… Continue reading RBI extends ombudsman scheme to non-deposit taking NBFCs
Supreme Court gives RBI ‘last chance’ to alter disclosure policy
The Supreme Court has directed the Reserve Bank of India (RBI) to disclose information pertaining to its annual inspection report of banks and other material under the Right to Information (RTI) Act unless they are exempted under the law. The Supreme Court was hearing contempt petitions filed against the RBI for not complying with the… Continue reading Supreme Court gives RBI ‘last chance’ to alter disclosure policy
RBI sells entire stake in NHB, Nabard to govt. for ₹ 1,470 cr. in total
The Reserve Bank has divested its stake in National Housing Bank (NHB) and National Bank for Agriculture & Rural Development (Nabard), by making them fully government-owned. This move is part of ending the cross-holding in regulatory institutions and follows the recommendation of the second Narasimham committee report of October 2001.The Narasimham panel had said RBI… Continue reading RBI sells entire stake in NHB, Nabard to govt. for ₹ 1,470 cr. in total
RBI swap auction gets bids more than thrice the notified amount
The Reserve Bank of India has successfully concluded a second forex swap auction intended to ease liquidity conditions. The auction saw a strong demand with the Reserve Bank of India getting 255 bids worth $18.65 billion compared with the notified amount of $5 billion.Earlier,RBI had bought $5 billion through a similar swap auction. Recently,RBI has… Continue reading RBI swap auction gets bids more than thrice the notified amount
RBI to assess if Indiabulls is ‘fit and proper’
The Reserve Bank of India (RBI) has decided to determine the criteria of Indiabulls Group founder whose name had appeared in the Panama Papers before approving the proposal to merge the group’s housing finance arm with Lakshmi Vilas Bank (LVB). Panama papers is a huge leak of documents that exposed how the rich and powerful… Continue reading RBI to assess if Indiabulls is ‘fit and proper’
Reserve Bank of India issues norms for banks to set up currency chests
The Reserve Bank of India has come out with guidelines for banks to set up new currency chests. The guidelines issued are (a)New currency chests should include minimum area of 1,500 square feet for strong room/Vault.For those situated in hilly/ inaccessible places,the strong room/ vault area should be at least 600 sq ft (b)The new… Continue reading Reserve Bank of India issues norms for banks to set up currency chests
Stressed assets circular to be revised soon
The RBI governor has said that Reserve Bank of India (RBI) will issue a revised circular for resolution of stressed assets following the Supreme Court verdict striking down its February 12,2018 circular as ultra vires which means that the RBI had gone beyond its powers in issuing the circular. The Supreme Court had said that… Continue reading Stressed assets circular to be revised soon
Linking small loans to external benchmark after further talks
The Reserve Bank has said that it will hold further discussions with banks on linking interest rates on personal,home,auto and MSME loans with the external benchmark rates. In December 2018,Reserve Bank of India (RBI) had proposed a major change in the way banks price their loans.It had said that banks will have to link the… Continue reading Linking small loans to external benchmark after further talks
