As bank failures mount, RBI decision on new bank licenses could be controversial: Macquarie
NEW DELHI: At a time when bank failures are increasing in India, the decision to distribute licenses could be controversial. As per a report by Macquarie Research, the RBI just released an internal working group (IWG) report to review ownership guidelines and corporate structure for private sector banks. “While the arguably bold recommendations suggest NBFCs […]
RBI Twitter handle joins million followers club, first central bank in world to reach this milestone
NEW DELHI: With one million Twitter followers, the Reserve Bank of India (RBI) has become the first central bank in the world to reach this milestone. The Reserve Bank of India (RBI) has beaten the US Federal Reserve and European Central Bank on Twitter by emerging as the most popular central bank on the […]
RBI curbs withdrawals from Jalna-based Mantha Urban Coop Bank for 6 months
NEW DELHI: Reserve Bank of India (RBI) on Tuesday imposed restrictions on withdrawals from Maharashtra-based Mantha Urban Cooperative Bank for six months. The RBI, in a release, said it has issued certain directions to Mantha Urban Cooperative Bank, Mantha District Jalna, Maharashtra, from the close of business on November 17, 2020. As per the directions, […]
Probe all officials, including of RBI, on Lakshmi Vilas Bank watch: AIBEA
By Venkatachari Jagannathan CHENNAI: India’s Finance Minister Nirmala Sitharaman should intervene in the Lakshmi Vilas Bank (LVB) issue and announce that it would be amalgamated with a public sector bank, the All India Bank Employees’ Association (AIBEA) said on Tuesday. The AIBEA also said that the Reserve Bank of India (RBI) cannot simply wash its […]
Lakshmi Vilas Bank come under moratorium, Rs 25,000 withdrawal cap placed
NEW DELHI: Following an application submitted by the Reserve Bank of India (RBI), the government of India on Tuesday brought Lakshmi Vilas Bank under moratorium for 30 days, and restricted withdrawals by depositors to Rs 25,000 each. The Centre issued the moratorium notification under Section 45 (2) of the Banking Regulation Act, 1949. The moratorium […]
RBI proposes to merge Lakshmi Vilas Bank with DBS Bank India
NEW DELHI: The Reserve Bank of India (RBI) on Tuesday proposed a draft scheme of amalgamation of the beleaguered Lakshmi Vilas Bank with DBS Bank India Ltd, a wholly-owned subsidiary of DBS Bank Ltd, Singapore. The RBI has also placed the Lakshmi Vilas Bank under moratorium for 30 days and superseded its Board owing to […]
Kris Gopalakrishnan appointed RBI Innovation Hub Chair
NEW DELHI: The Reserve Bank of India (RBI) has appointed Infosys co-founder Senapathy (Kris) Gopalakrishnan as Chairperson of the RBI Innovation Hub (RBIH). The RBI in its Monetary Policy Statement on Development and Regulatory Policies dated August 6, 2020, had announced that it will set up the RBIH to promote innovation across the financial sector […]
RBI on GST: Adverse impact on manufacturing, may delay investment revival
NEW DELHI: The implementation of GST had an adverse impact on manufacturing and may delay investment revival, the Reserve Bank of India (RBI) said on Wednesday while hoping that there will a be simplification of the new indirect tax regime to ease business process. In its fourth bi-monthly monetary policy review of 2017- 18, RBI […]
RBI imposes Rs 1 crore penalty on PNB for unauthorised ATM operations
NEW DELHI: State-run Punjab National Bank (PNB) on Friday said the RBI has imposed a penalty of Rs 1 crore on it for contravention of the Payment and Settlement Systems Act. “RBI has observed that the Bank was operating a bilateral ATM sharing arrangement with Druk PNB Bank Ltd, Bhutan, (international subsidiary of the Bank), […]
India’s foreign exchange reserves rises over $560 billion
NEW DELHI: India’s foreign exchange reserves rose $183 million during the week ended October 30. According to the Reserve Bank of India’s weekly statistical supplement, the reserves increased to $560.715 billion from $560.532 billion reported for the week ended October 23. India’s forex reserves comprise of foreign currency assets (FCAs), gold reserves, special drawing rights […]
Loan moratorium: RBI urges Supreme Court to lift order banning declaration of NPAs
NEW DELHI: The RBI Thursday urged the Supreme Court to lift its interim order, which held that accounts not declared as non-performing assets till August 31 this year are not to be declared NPAs till further orders, saying it is facing difficulty due to the directive. In a relief to stressed borrowers who are facing […]
Asked banks to pay difference in interest to borrowers: RBI to Supreme Court
NEW DELHI: The RBI has informed the Supreme Court that it has asked the banks, and financial institutions as well as the non-banking financial institutions to take “necessary actions” to credit the accounts of eligible borrowers, by November 5, with the difference between compound and simple interest collected on loans of up to Rs 2 […]
Past policy actions’ transmission to help ease conditions, RBI Governor in MPC meet
NEW DELHI: The ongoing transmission of past monetary policy actions would help ease financial conditions, Reserve Bank of India (RBI) Governor Shaktikanta Das had said during the Monetary Policy Committee (MPC)meet earlier this month, according to its minutes released on Friday. The statement assumes significance as past rate cut transmission will provide lower interest rates […]
RBI to commence ‘On Tap TLTRO’ worth Rs 1 lakh crore on Thursday
NEW DELHI:To provide banks with liquidity that can be used to support specific sectors, the Reserve Bank of India (RBI) will conduct ‘On tap Targeted Long-term Repo Operations’ on Thursday. The operations will be conducted for a total amount of up to Rs 1,00,000 crore at a floating rate linked to the policy repo rate […]
NPAs impact banks’ rate cut transmission, loan growth: Study
NEW DELHI: The paper titled, ‘Bank Capital and Monetary Policy Transmission in India’ shows the requirement of bank capital regulation in India. Non-performing assets (NPA) of a bank weakens the monetary policy transmission and loan growth rate, said a recent working paper prepared by the staff members of the Reserve Bank of India (RBI). The […]
Moratorium period exceeding six months may result in vitiating overall credit discipline: RBI to Supreme Court
NEW DELHI: A loan moratorium exceeding six months might result in vitiating the overall credit discipline , which will have a debilitating impact on the process of credit creation in the economy, the Reserve Bank of India has told the Supreme Court. In an affidavit filed in the apex court in the loan moratorium case, […]