The six-member Monetary Policy Committee of the Reserve Bank of India has cut its benchmark policy rate,repo rate by 0.25% to 6%.Repo stands for ‘Repurchasing Option’.It refers to the rate at which commercial banks borrow money from the RBI.The rate cut comes in the backdrop of a slowdown in consumption. demand,weakening investment activity and overall… Continue reading RBI cuts repo rate to 6%, lowers GDP forecast to 7.2%
Tag: RBI
RBI sets WMA Limit for Government at Rs 75000 crore for H1 of 2019-20
The Reserve Bank of India (RBI) in consultation with the Government of India has set the limits for Ways and Means Advances (WMA) for the first half of the financial year 2019-20 (April 2019 to September 2019) at Rs 75000 crore. The Reserve Bank of India gives temporary loan facilities to the centre and state… Continue reading RBI sets WMA Limit for Government at Rs 75000 crore for H1 of 2019-20
SC holds ultra vires RBI’s February 12 circular mandating insolvency proceedings
The Supreme Court has struck down the Reserve Bank of India’s February 12 circular that dealt with resolution of stressed assets in the economy.The Supreme Court has held the February 12 circular ultra vires as a whole which means the RBI had gone beyond its powers in issuing the circular.Earlier,the apex Court had stayed the… Continue reading SC holds ultra vires RBI’s February 12 circular mandating insolvency proceedings
Borrower behaviour will deteriorate
According to analysts,Supreme Court judgment striking down the Reserve Bank of India’s February 12 circular that dealt with the resolution of stressed assets will lead to deterioration of borrower behaviour and increase delays and litigation. On 12th February 2018,RBI had put out a circular on classification of non-performing assets that required (a)Banks to stipulate a… Continue reading Borrower behaviour will deteriorate
Credit negative for banks, says Moody’s
According to credit rating agency Moody,Supreme Court’s decision to strike down the February 12,2018 circular of the Reserve Bank of India (RBI) will be credit negative for Indian banks. They said that the circular had significantly tightened stressed loan recognition and resolution for large borrowers.But,with the Supreme court order,resolution of stressed loans impacted by the… Continue reading Credit negative for banks, says Moody’s
RBI order on defaulters lacked govt. nod, says SC
The Supreme Court has struck down the Reserve Bank of India’s Feb. 12 circular on the grounds that the regulator can give directions to banks on stressed assets only upon the central government’s authorisation and in case of a specific default. Several companies in the power,sugar,fertiliser and infrastructure sectors objected to the circular’s one size… Continue reading RBI order on defaulters lacked govt. nod, says SC
RBI tweaks NPA divergence disclosure norms
The Reserve Bank of India (RBI) has said that banks should disclose Non performing assets(NPA) divergences if there is a more than 10% difference in their assessment of bad loans versus that of the regulator. The divergence in non-performing assets is the difference between the central bank’s assessment and the bank’s reported non-performing loans. Earlier,the… Continue reading RBI tweaks NPA divergence disclosure norms
New loan pricing scheme may be put off
The Reserve Bank of India(RBI) may extend the deadline for banks to shift to the new loan pricing regime which was scheduled to be implemented from April 1.This new external benchmark rate will be applicable for floating rate loans extended to individuals and small businesses. Earlier,Reserve Bank of India (RBI) had proposed a major change… Continue reading New loan pricing scheme may be put off
RBI receives aggressive bids, infuses ₹34,500 cr. liquidity
The Reserve Bank of India has successfully concluded a forex swap auction intended to ease liquidity conditions.The central bank bought the targeted $5 billion as part of the long term Dollar/Rupee swap auction with a three-year tenor.In turn, Rs 34,561 crore was infused into the Indian banking system. Recently,RBI has decided to inject long-term liquidity… Continue reading RBI receives aggressive bids, infuses ₹34,500 cr. liquidity
Norms soon for regulatory sandbox for fintech sector
Addressing the Fintech conclave,Reserve Bank of India Governor said that RBI will release the guidelines for the creation of a ‘regulatory sandbox’ for the fintech sector. NITI Aayog had organised FinTech Conclave.The objective was to deliberate steps for India’s rise in Financial Technology (FinTech) and to deepen financial inclusion. FinTech or financial technology is an… Continue reading Norms soon for regulatory sandbox for fintech sector
