RBI
RBI MPC: Hold your horses!!!
The RBI indicated a shift to a neutral policy stance despite expectations of rate cuts. It emphasized domestic growth and inflation risks, citing weak real incomes and financial stability concerns in the BFSI sector. A potential rate cut needs slower retail lending and improved household savings.
RBI: Looking through the liquidity management tea leaves
The RBI's October policy shift to a neutral stance was reflected in its liquidity management since July 2024, with interbank liquidity surplus averaging INR1.2tn. RBI refrained from strong liquidity absorption, signaling comfort with current conditions as government expenditure rose and inflation pressures moderated.
RBI lifts share and bond funding restrictions on JM Financial Products
The Reserve Bank of India (RBI) has lifted its ten-month-long restrictions on JM Financial Products, a subsidiary of JM Financial, after a special audit and rectification of regulatory and governance lapses. The company assures continued adherence to compliance standards in its financing activities.
Will RBI start cutting interest rates from December or March? Here's what experts predict
The RBI may start interest rate cuts beginning December 2024, with further reductions in early 2025, based on inflation trends and global economic conditions. Analysts note that demand has softened, and global central banks, including the US Federal Reserve, are easing policies, which supports potential rate cuts in India.
RBI opens the door for interest rate cut. What it means for stock market investors
The Reserve Bank of India changed its policy stance to neutral from withdrawal of accommodation while maintaining the repo rate at 6.5%, hinting at a potential rate cut in the upcoming year. Stock and bond markets responded positively, with significant gains in financial sectors.
Stock to watch: Bandhan Bank shares in focus on RBI approval for appointment of MD and CEO
The Reserve Bank of India approved Partha Pratim Sengupta as MD and CEO of Bandhan Bank for three years. He is expected to take charge by November 10, 2024. Sengupta was previously with State Bank of India and Indian Overseas Bank. Bandhan Bank completed a forensic audit related to insurance claims and expects a payout of Rs 1,231.29 crore.
Bank stocks, NBFCs rally up to 4% after RBI changes policy stance
Shares of banks and NBFCs went up by as much as 4% after the RBI shifted its policy stance to 'neutral'. This change hints at a possible rate cut cycle from December. Shriram Finance saw the biggest gain in Nifty, rising over 4%. Other financial stocks also gained significantly, boosting the Sensex by 500 points.
Manappuram Finance shares hit 15% lower circuit after RBI restrictions, multiple downgrades
Manappuram Finance Share Price: Shares of Manappuram Finance plummeted 15% after the RBI imposed restrictions on four NBFCs, including Asirvad Micro Finance. This led to multiple downgrades and target price cuts from brokerages like Morgan Stanley, BofA, and Jefferies, citing potential profit hits and funding cost increases.
Fed made FIIs spend Rs 27,000 crore on bank stocks but China forcing a U-turn now
FIIs invested Rs 27,000 crore in Indian bank stocks after the US Fed's rate cut. However, they reversed their investments due to China's quantitative easing. This led to a drop in Nifty Bank index by 5% in early October. Investors are watching for RBI's monetary policy decision on October 9.
Big movers on D-Street: What should investors do with TCS, Natco Pharma and GRSE?
Domestic markets closed lower despite the RBI hinting at a rate cut. TCS is showing strong technical resilience and poised for an upward reversal, making it a 'buy on dips' candidate. Natco Pharma is in a healthy consolidation phase with potential targets of Rs 1,650–1,720.
Market Wrap: Sensex, Nifty close lower despite RBI's neutral policy on rates
Indian equity indices Sensex and Nifty experienced gains throughout the day but reversed course in the last hour, closing lower on Wednesday, despite the central bank easing its policy stance to 'neutral', opening the door for rate cuts in the coming months.
Big movers on D-Street: What should investors do with Varun Beverages, Suzlon Energy and Torrent Power?
Domestic markets closed lower as stocks like Varun Beverages, Suzlon Energy, and Torrent Power gained attention with notable movements. Analysts suggest potential gains for these stocks given the key support and resistance levels, indicating positive recovery trends if buying momentum continues.
No foreclosure, pre-payment charges on loans to MSEs
"While positive for customers, the RBI's move will have a negative impact on the profitability of lenders, and could also potentially increase the loan prepayments and balance transfer."
Gold loan companies slip as RBI orders corrective measures for lapses
The issues highlighted by RBI include improper valuation, breaches of loan-to-value (LTV) ratios, and inadequate governance in partnerships with fintech entities, said Shrikant Chouhan, head of equity research at Kotak Securities.
Sebi outlines specific due diligence of investors, investments of AIFs
Sebi has instructed Alternative Investment Funds to carry out due diligence on investors and investments to ensure compliance with laws and prevent illegal activities. This includes special checks for investments from countries bordering India and contributions over 50 percent. AIFs must report the status of existing investments by April 7, 2025.
RBI to announce monetary policy tomorrow. Here’s what to expect from Shaktikanta Das
The IMF forecasted 3.2% global growth in 2024, but geopolitical tensions and economic instability threaten this. The US Fed cut interest rates by half a percentage point, while the ECB cut by 25 basis points. China's central bank also implemented measures to stimulate its economy. India's GDP grew 6.7% in Q1 FY25, outperforming globally. The RBI is expected to maintain its neutral stance and may not raise interest rates.
Sensex gains 200 points ahead of RBI MPC outcome, Nifty above 25K
Indian blue-chip indices Nifty50 and BSE Sensex opened higher for the second consecutive day, driven by gains in auto and IT stocks. This rise comes ahead of the Reserve Bank of India's policy meeting, where the central bank is anticipated to maintain current interest rates while adopting a hawkish stance.
Nifty has strong support at 24,800: Technical Analysts
On the upside, immediate resistance is expected at 25,250. Stocks such as Coforge, Balrampur Chini, JK Lakshmi Cement, Divi’s Lab, Torrent Pharma, Titan, Ipca Labs, and Lal PathLabs could attract support-based buying, said analysts.
RBI releases report calling for changing MIBOR methodology, launch of new benchmark
The Reserve Bank of India on Tuesday released a report recommending changes in methodology of the Mumbai Interbank Outright Rate (MIBOR) while proposing a change to a new secured money market benchmark for widely used derivative products.
US Fed’s bold rate cut fuels optimism, but market caution grows over US elections and geopolitical risks
The Federal Reserve initiated a surprising rate cut while the US economy shows stable growth and cooling inflation. Chinese stimulus bolstered market sentiment, lifting equities and commodities. However, Middle East tensions and upcoming US elections inject fresh uncertainties. Investors are keen on Q4 earnings, with expectations for large caps to outperform. RBI's upcoming policy decision is critical amid these dynamics.
WACR 18 bps higher than repo rate despite surplus liquidity
On Monday, the weighted average call rate rose to 6.68%, exceeding the Reserve Bank of India's 6.50% repo rate, due to uneven liquidity distribution in the banking system. Public sector banks faced a shortfall, despite an overall liquidity surplus of Rs. 79,806 crore.
Time to interpret RBI warning differently. 10 NBFC stocks from two very different segments with an upside potential of up to 43%
It was probably the third time in the last nine months that, after its monetary policy meeting, the RBI had a word of caution for NBFCs. Basically, they were warned to set their houses in order, and not resort to aggressive lending practices. The key message: NBFCs should keep an eye on how the money they lend is being used. The RBI’s concern stems from the fact that too much leverage money is coming into the equity markets – especially in the futures and options (F&O) segment. Should this warning be taken as a sign that more tightening is coming? Or is there a different way to look at it? Perhaps there is – at least in the medium term.
Paytm shares double in 4 months despite regulatory trouble. What is the road ahead?
Paytm Share Price: The company was in headlines on selling its ticketing business to Zomato and also on the reports of SEBI issuing show-cause notices to Vijay Shekhar Sharma, the founder of the company.
Banking system liquidity back at surplus; markets see signs of softer RBI stance
For seven days in September, the RBI injected funds into the banking system, signaling deficit liquidity conditions caused by the combined impact of quarterly advance tax payments and monthly GST payments, which drained funds from the system.
Rupee touches 83.70/$1 on Friday for the first time since US Fed rate cut
The US economy grew by 3% in the April-June period, matching the previous quarter's performance and meeting economists' expectations. Consequently, the probability of a 50 basis point rate cut by the Fed has decreased to 49.4%, down from 61% the previous day, according to the CME’s FedWatch tool.
RBI lifts restrictions on JM Financial
The Reserve Bank of India has lifted restrictions on JM Financial Products Ltd. This allows the company to resume financing against shares and debentures. The restrictions were imposed in March due to deficiencies in loan practices. JM Financial Products Ltd has committed to maintaining high compliance standards.
RBI fines HDFC, Axis Bank for non-compliance with regulations
The Reserve Bank of India has fined Axis Bank ₹1.91 crore and HDFC Bank ₹1 crore for regulatory non-compliance. Axis Bank's violations include multiple customer identification codes and collateral security for agricultural loans. HDFC Bank's issues involve giving gifts to depositors and contacting customers outside permitted hours.
IIFL Finance shares rally 12% as RBI lifts curbs on gold loan business
IIFL Finance Share Price: IIFL Finance shares surged 12.3% after the Reserve Bank of India lifted restrictions on its gold loan business. The company can now resume sanctioning, disbursing, and selling gold loans, following compliance with relevant laws. The restrictions were initially imposed due to deviations in gold purity assessment and breaches in loan-to-value ratios.
Lower the drawbridge today, RBI
RBI is expected to decide on a potential 25 basis points cut in its policy rate as inflation remains below the target level. With a slowing growth momentum and a cooling down of food inflation, it's crucial for supporting economic growth. Global central banks are also reducing rates, adding pressure on RBI's decision.
Reserve Bank lifted curbs on gold loan business, says IIFL Finance
The Reserve Bank of India has lifted the restrictions on IIFL Finance's gold loan business, allowing the company to resume operations. The ban, imposed in March due to supervisory concerns, had led to a significant decline in IIFL's gold loan book and profits. The company can now comply with all relevant laws and regulations.
Bet on these 5 NBFCs as highly-anticipated rate cuts promise windfall for investors
With interest rate cuts expected this year, non-banking financial companies (NBFCs) are set to benefit significantly. Analysts highlight the potential for growth in NBFC assets under management, especially in consumer finance and gold-based lending. Stocks like Bajaj Finance, M&M Financial Services, and Shriram Finance are recommended for investment due to their strong asset quality and favorable loan compositions.
Rate cut 'risky, premature' as growth remains steady, says RBI's Shaktikanta Das
RBI's governor Shaktikanta Das during India Credit Forum hosted by Bloomberg said cutting interest rates in coming Monetary Policy Committee meeting scheduled for December would be 'risky and premature' as country's grouwth remains steady with inflation moderating.
RTGS soon in dollar, euro and pound: RBI
An expanded RTGS using major trade currencies would accelerate access to cheaper cross-border payments and remittances. The RBI has often spoken of the need for more cost-effective cross-border payment systems, with deputy governor T Rabi Sankar stating in September 2023 that the prevailing high costs for cross-border remittances were "simply unconscionable".
RBI cautions against fraud using its name
The Reserve Bank of India warns the public about fraudsters falsely using its name through fake letterheads, emails, and calls. These criminals impersonate RBI employees to steal personal and banking details. RBI also identifies unauthorized digital lending apps and financial service providers pretending to be registered with the regulator.
RBI Monetary Policy Meeting Highlights: Inflation expected to remain elevated during Sept and Oct; RBI opens the door for potential rate cuts
RBI MPC Meeting Highlights: The Reserve Bank of India (RBI) is laying the groundwork for its first interest rate cut in four years, showing increased confidence that inflation will ease in the coming months. This shift led to gains in both bonds and stocks. On Wednesday, the Monetary Policy Committee (MPC) voted 5-1 to maintain the benchmark repo rate at 6.5%, as widely expected, but shifted its stance to 'neutral,' signaling that a rate cut could be on the horizon. Nagesh Kumar, one of the new external members of the committee, voted in favor of an immediate reduction. Governor Shaktikanta Das expressed optimism that food prices, which account for nearly half of the consumer price index, would likely soften in the months ahead, improving the inflation outlook. However, he emphasized the need for caution, stating that the RBI has worked hard to bring inflation under control and must remain vigilant. "It is with a lot of effort that the inflation horse has been brought to the stable," Das said in a televised address. "We have to be very careful about opening the gate, as the horse may simply bolt again." Following the announcement, bonds saw their biggest rise since February, with the yield on the 10-year government bond dropping by five basis points to 6.75%. The rupee remained stable, while stocks extended their gains. While the RBI remains confident in aligning inflation with its 4% target, Das warned that "there is no room for complacency." His deputy, Michael Patra, added that adverse weather conditions and geopolitical conflicts pose significant risks to inflation. "Given the substantial risks ahead, it's not appropriate to specify the timing of a rate cut," Das added. Economists believe the central bank will monitor inflation trends and geopolitical uncertainties in the coming months before making any decisions on lowering borrowing costs.
Why does RBI’s position on rate cuts remain difficult despite rising possibility of Fed rate cuts in September?
The US Fed, in its Jackson Hole speech, signaled a likely rate cut beginning in September, prompting the US 10-year yield to soften and the dollar index to fall to a seven-month low. Despite this, Indian 10-year G-sec yields have remained steady. This is due to the RBI’s limited ability to adjust its monetary stance, influenced by India’s unique supply-driven inflation dynamics.
Shaktikanta Das asks emerging economies to strengthen risk buffers; warns banks of growing AI use
RBI Governor Shaktikanta Das urged banks to fortify their liquidity buffers against potential threats and cautioned about the financial stability risks posed by AI and tech provider concentration. He emphasized the importance of risk mitigation measures and the need for emerging economies to strengthen policy frameworks amidst monetary policy divergences affecting capital flows and exchange rates.
Bajaj Housing Finance share allotment likely today: Check status, GMP, listing date and other details
Bajaj Housing Finance IPO Allotment Today: The share allotment for Bajaj Housing Finance IPO is expected to be finalized today. Investors can check their allotment status via the BSE or the registrar's website. The company's shares are set to list on September 16, with a premium of 96% in the unlisted market. Proceeds will support future business needs.
Japanese bank SMBC's plan to buy stake in Yes Bank hits RBI wall: Report
Yes Bank's stake sale is now unlikely to happen in FY25 and may get delayed, ET Now reported, citing sources. SMBC has shown strong interest in acquiring a 51% stake in Yes Bank and the talks have stalled because of its insistence on 51% ownership, the report said
RBI monitoring credit market, will act on issues proactively: Das
When asked about the slower pace of deposit growth as compared to credit growth, the RBI governor also said that banks were mindful of the issue and taking necessary actions, Das said that banks should be allowed time for the results to show.
RBI MPC meeting: India's real GDP growth for FY25 retained at 7.2%, Governor Das says
The Reserve Bank of India's Monetary Policy Committee (MPC) continues to forecast a 7.2% growth rate for the Indian economy in FY25, although the GDP growth target for Q2 FY25 has been slightly reduced to 7% from 7.2%, while Q3 has been increased to 7.4%.
RBI MPC shifts gear to 'neutral' while retaining repo rate at 6.5%; A look at inflation, GDP targets
Repo Rate: The RBI's Monetary Policy Committee maintained the repo rate at 6.5% due to robust domestic growth and concerns over inflation despite a slight dip in Q1 FY2025 growth. The stance shifted to 'neutral' focusing on growth, cautious of potential geopolitical risks impacting inflation.
Rupee slumps to 84.08, recovers with 'RBI' help
The rupee closed at 84.06 to the dollar, flat versus the previous close, LSEG data showed. The rupee weakened past the psychologically significant 84/$1 mark for the first time on Friday as several unfavourable global factors including a recent rise in crude oil prices, a stronger US dollar and risk aversion sparked by the war in West Asia pushed the domestic currency past the key level.
RBI Monetary Policy Meet Key Takeaways: All about Das & Co's decisions
RBI Monetary Policy Meet Key Takeaways: RBI Governor Shaktikanta Das announced the bi-monthly MPC meeting outcomes, maintaining repo rate at 6.5%. Despite US rate cuts, RBI ties future cuts to domestic inflation hitting a 4% target. Recent data shows inflation control and robust GDP growth projections.
Why did the RBI shift to neutral? The predictions for the future
The Reserve Bank of India's Monetary Policy Committee has kept the repo rate unchanged at 6.5% but shifted to a neutral stance. This change allows flexibility in tackling inflation while supporting growth. Economists suggest a potential rate cut in the future if inflation risks subside and growth remains resilient, with December 2024 being a likely timeline.
RBI holds inflation forecast at 4.5% – Stability or risk ahead?
RBI Inflation 2024: The Reserve Bank of India has maintained its inflation forecast at 4.5% for this fiscal year, despite concerns over rising food and oil prices. The RBI's decision to keep the repo rate unchanged at 6.5% stems from recent favorable domestic conditions and bountiful rains, aiming to sustainably align inflation with targets.
RBI MPC meeting today, check time, where and how to watch live telecast online
RBI Monetary Policy meeting time: RBI Governor Shaktikanta Das will announce the outcome of the three-day Monetary Policy Committee (MPC) meeting today at 10:00 am. The next MPC meeting is scheduled for December 4-6. Analysts widely expect the repo rate to remain steady at 6.50% despite global economic uncertainties and falling retail inflation. Outcomes will be announced on October 9.
RBI monetary policy meeting starts: The script isn't changing?
The Reserve Bank of India (RBI) begins its three-day monetary policy meeting amid global economic uncertainties. Analysts believe the repo rate will remain unchanged for a 10th consecutive time at 6.50% as the central bank balances inflation control with economic growth.
Business operations of fintech NBFCs, MFIs to take a hit after RBI diktat
The RBI's directive to halt operations of four non-bank lenders, due to concerns about loan pricing practices, will significantly impact mid and small-sized NBFCs focused on unsecured loans, exacerbating their liquidity constraints and asset quality challenges amid rising delinquencies and overleveraging issues.
RBI says inflation, growth to ease in fiscal 2026
The Reserve Bank of India forecasts a reduction in consumer price inflation to 4.1% by March 2026, down from 4.5% this fiscal year, contingent on a normal monsoon and stable policy environment. Economic growth is expected to ease slightly to 7.1%, supported by strong domestic demand and government capex.
Careful about AI, it's legit caveat from RBI
AI has the potential to revolutionise the 21st century like the steam engine did for the 19th century. However, the technology poses risks due to its concentration in a few companies and its ability to act autonomously. Financial regulators like RBI's Shaktikanta Das have raised concerns about these dangers, stressing the need for caution.
RBI MPC Meet Highlights: Das & Co keep repo rate unchanged, stance changed to 'neutral'
RBI MPC Meet Highlights: RBI Governor Shaktikanta Das announced the MPC's latest decisions and kept the repo rate at 6.5% as expected. The government recently reconstituted the MPC with three new members. Key points include a focus on food inflation and digital payments expansion.
As rupee slides, RBI weighs securities threat on Bond Street
Officials from RBI’s Financial Markets Regulation Department (FMRD) have informally spoken to banks, particularly foreign lenders, to gauge unwinding of overseas trading positions in Indian debt markets, including those taken in certain interest rate derivatives, people aware of the matter told ET.
RBI MPC announcement on October 9: Attractive FD interest rates to not last long; book fixed deposit now before rate drops
RBI MPC on October 9, 2024: After the US Federal Reserve reduced rates last month, all eyes are on the Reserve Bank of India (RBI) now. A rate cut could signal the end of the high-interest rate era for fixed deposits. The RBI's Monetary Policy Committee announcement on October 9, 2024 will provide clarity on the rate change. What should be the best strategy for your short-term and long-term fixed deposits? Read on to find out
Powell signals Fed pivot: Will the MPC follow suit?
The Fed chief's dovish message and the onset of a rate-cutting cycle are expected to support rate cuts by India's Monetary Policy Committee. In fact, two independent MPC members had already advocated strongly for rate reductions during the August monetary policy meeting. As a result, the case for cutting rates will likely gain momentum. India's CPI inflation fell to 3.54% in July, comfortably within the RBI’s 4% inflation target.
RBI to create Climate Risk Information Repository for lenders
The Reserve Bank of India is establishing a data repository named RB-CRIS to monitor climate risks. It will include a web-based directory and a data portal. This initiative aims to enhance climate risk assessments by providing high-quality, standardized data. Access to the portal will be phased for regulated entities.
RBI Governor has a message for NBFCs pursuing 'growth-at-any-cost': Will take action if...
While making the Monetary Policy Committee (MPC) announcements, RBI Governor Shaktikanta Das pointed out that while the overall NBFC sector remains healthy, there are a few outliers adopting a “growth-at-any-cost” approach. These NBFCs, including Microfinance Institutions (MFIs) and Housing Finance Companies (HFCs), are focused on excessive returns on equity, often pushing business targets aggressively. Das said that such behaviour could lead to high interest rates and excessive indebtedness for borrowers, which, if left unchecked, could pose risks to financial stability.RBI Governor has a message for NBFCs pursuing 'growth-at-any-cost': Will take action if...
Live RBI Monetary Policy Statement by Governor Shaktikanta Das
The Reserve Bank of India (RBI) is expected to keep interest rates unchanged today due to continued economic pressure from rising food prices. However, given the easing of core inflation and decreasing global borrowing costs, the central bank might consider shifting to a neutral stance next quarter.Live RBI Monetary Policy Statement by Governor Shaktikanta Das
Lower EMIs for home loan borrowers soon: RBI likely to cut repo rate up to 50 bps by March 2025 despite no change now
RBI Repo Rate: Home loan borrowers may benefit from a drop in EMIs soon as RBI is expected to cut interest rates, following global trends. Higher global interest rates initially forced RBI to raise rates, but with inflation cooling, reductions are likely. Borrowers should consider switching to external benchmark-linked lending rates for maximum benefit.
RBI MPC Meeting at a Glance: Your one-stop guide for all key decisions
The RBI's MPC, led by Governor Shaktikanta Das, has decided to maintain the current interest rates, keeping the repo rate at 6.5%, the SDF at 6.25%, and the MSF at 6.75%. The committee's stance is now neutral, focusing on inflation trends and maintaining GDP growth projection for FY25 at 7.2%.
RBI's new bank-subsidiary norms to force realignments of business
The RBI does not want banks to use step-down entities to circumvent norms that do not apply to them. Effectively, some subsidiaries may remodel themselves as direct selling agents of the bank, a senior bank official said. The RBI has sought feedback from banks by November 20 on the draft guidelines.
RBI warns of 'yellow fever' outbreak
The RBI warns of supervisory action if banks do not rectify irregularities in gold loan practices within three months. The gold loan sector has seen rapid growth, necessitating enhanced controls and transparency, particularly concerning third-party involvement and potential misuse in valuation and loan disbursement.
Quite risky to cut rates at this stage: RBI Guv Shaktikanta Das
“Inflation is moderating, with certain risks about which we have to be very vigilant,” Das said at an event organised by Bloomberg on Friday. “Therefore, a rate cut at this stage will be very premature and can be very, very risky. When your inflation is 5.5% and the next print is also expected to be high, you can’t be cutting rates at that point.”
SBI notices intriguing detail in RBI's latest GDP forecast, flags a "rare, unprecedented" possibility
The Reserve Bank of India has projected a GDP growth of over 7 per cent for the financial year 2024-25. A report by State Bank of India notes that historically, such growth has rarely coincided with a rate cut in India or elsewhere.
RBI enhances transaction limits on UPI123 & UPILite
The Reserve Bank of India has increased transaction caps for UPI123Pay and UPI Lite to boost UPI use. The UPI123Pay cap is raised from Rs 5000 to Rs 10,000, while UPI Lite's wallet limit is up from Rs 2000 to Rs 5000 and per-transaction limit is now Rs 1000.
Cost of imports up; RBI likely to turn cautious on Rupee
Imported inflation in India's CPI has gradually increased since April 2024, contributing 0.5 percentage points by August 2024. With global prices rising, imported inflation is expected to further impact core inflation. The RBI is managing the rupee's value to counter this. Strong FPI inflows and currency management by the RBI may control imported inflation.
In a fix, HNIs await RBI directive on foreign FDs
Wealthy Indians are uncertain about investments abroad after a directive from the International Financial Services Centres Authority. It restricts fixed deposit terms in GIFT City to under 180 days, conflicting with Reserve Bank of India guidelines. This confusion affects funding to offshore banks and the liberalised remittance scheme for high-net-worth individuals.
Post Monetary Policy Press Conference by RBI Governor Shaktikanta Das | Live
The Reserve Bank of India (RBI) is expected to keep interest rates unchanged today due to continued economic pressure from rising food prices. However, given the easing of core inflation and decreasing global borrowing costs, the central bank might consider shifting to a neutral stance next quarter.Post Monetary Policy Press Conference by RBI Governor Shaktikanta Das | Live
RBI keeps repo rate unchanged, shifts to neutral policy stance
The RBI maintained the repo rate at 6.5% for the 10th consecutive policy review but shifted the monetary policy stance to 'neutral' from 'withdrawal of accommodation'. This allows flexibility in future rate decisions as inflation remains within the target range. CPI inflation forecasts remain at 4.5%, with GDP growth at 7.2% for FY25.
RBI MPC meet: UPI Lite per transaction limit hiked to Rs 1,000; UPI Lite wallet limit hiked to Rs 5,000
RBI MPC on UPI Limit: The UPI Lite per transaction limit has been hiked to Rs 1,000 from Rs 500. The UPI Lite wallet limit has hiked to Rs 5,000 from Rs 2,000. The RBI has also hiked UPI 123PAY per transaction limit to Rs 10,000 from Rs 5,000. The announcements were made at the RBI Monetary Policy meeting today.
RBI keeps repo rate unchanged, changes stance to ‘neutral’ from ‘withdrawal of accommodation'
RBI Governor Shaktikanta Das said, "The standing deposit facility (SDF) rate remains at 6.25% and the marginal standing facility (MSF) and the bank rate stand at 6.75%. The NPC decided unanimously to change the stance to neutral and to remain unambiguously focused on a durable alignment of inflation with the target while supporting growth. The NPC noted that currently, the macroeconomic parameters of inflation and growth are well balanced. Headline inflation is on a downward trajectory though its pace has been slow and uneven."RBI keeps repo rate unchanged, changes stance to ‘neutral’ from ‘withdrawal of accommodation'
RBI unlikely to cut rate as India's growth is higher than potential output: SBI Report
The Reserve Bank of India (RBI) is unlikely to cut interest rates in its upcoming meeting, given India's strong economic growth and the importance of credit to deposit growth in the banking system. Despite global economic conditions, the RBI is expected to focus on domestic factors.
RBI orders ban on sanction and disbursal of loans from four NBFCs
The Reserve Bank of India has directed Asirvad Micro Finance Limited, Arohan Financial Services Limited, DMI Finance Private Limited, and Navi Finserv Limited to halt loan sanction and disbursement starting October 21, 2024, due to concerns over their excessive interest rates and non-compliance with established financial regulations.
RBI’s steeplechase with cyclical and structural hurdles
As the RBI intensifies its regulatory tightening, the banking sector will need to negotiate with slower growth, lower margins, and rising credit costs. The central bank is also concerned about the recent spurts in prices of milk and mobile tariffs, which can permeate into broader inflation impetus.
RBI Deputy Governor Rajeshwar Rao gets one-year extension
The government has extended the term of RBI Deputy Governor M Rajeshwar Rao for one year starting from October 9, 2024. Rao, who has been with the RBI since 1984, was first appointed as Deputy Governor in October 2020 for a three-year term. The decision was approved by the Appointments Committee of the Cabinet.
RBI may shift monetary stance to 'Neutral'; rate cuts likely by December 2024: Nuvama
RBI Monetary Policy: RBI is set to shift its monetary policy stance to 'neutral' from 'withdrawal of accommodation' this month. Although the repo rate is likely to remain at 6.5%, factors like slowed economic activity, benign core inflation, and weak exports may prompt rate cuts from December.
RBI rejects Rakesh Asthana's appointment to REL board
The Reserve Bank of India has rejected Religare Enterprises' attempt to appoint Rakesh Asthana to its board. This followed a complaint from the Burman family, who hold a significant stake in REL, citing procedural irregularities. The dispute has escalated to legal actions, with the Delhi High Court involved. The company's management is amid a power tussle with the Burman family.
NPCI launches ATM products; BBPS renamed Bharat Connect
The National Payments Corporation of India (NPCI) introduced new products to transform ATM infrastructure, including UPI interoperable cash deposits and digital banking units. Customers can now deposit cash at ATMs using UPI without a physical card. Additionally, RBI has rebranded the Bharat Bill Payment System to Bharat Connect, while open architecture ATMs will offer various banking services.
US continues to be largest source of FDI in India: RBI census
The US remains the largest source of FDI in India, followed by Mauritius, Singapore, and the UK. FDI in India increased by 23.3 per cent in 2023-24, supported by valuation gains and fresh inflows. Non-financial companies accounted for nearly 90 per cent of the FDI equity. Foreign subsidiaries in India also showed strong external trade linkages.
RBI lifts ban on IIFL
The Reserve Bank of India has lifted restrictions on IIFL Finance's gold loan business, allowing the company to resume operations. The ban was initially imposed due to supervisory concerns, including deviations in gold purity assessment and breaches in loan-to-value ratio. The lifting of the ban is expected to help recover the company's gold loan book and improve profitability.
RBI asks payment providers to ease accessibility for disabled persons
The RBI has instructed all banks and non-bank payment system providers to review and modify their digital payment systems for better accessibility to disabled persons. PSPs must refer to the Ministry of Finance’s Accessibility Standards and ensure security is not compromised. Details of changes must be reported to RBI within a month.
RBI approves Partha Sengupta as Bandhan Bank MD & CEO
Partha Pratim Sengupta will become the new managing director and CEO of Bandhan Bank. The Reserve Bank of India has approved his appointment for three years starting no later than November 10, 2024. The bank also completed a forensic audit on its insurance claims, resulting in a payout of Rs 1,231.29 crore.
RBI shifts to neutral policy, Bond Street 'accommodates' the stance
The yield on the most liquid 10-year government bond closed at 6.77% on Wednesday, five basis points lower than the previous close. Bond prices and yields move inversely. A fall in government bond yields brings down the cost of borrowing across the economy as sovereign debt is the benchmark used to price corporate debt.
RBI bans four finance companies from sanctioning and disbursing new loans
The Reserve Bank of India has banned four finance companies, including Navi Finserv and DMI Finance, from issuing new loans due to excessive interest rates. This follows warnings about aggressive growth practices. The companies must submit remedial actions to the RBI for review to resume their loan services.
Ghodey Pe Sawaar: RBI is in a long-term war
RBI inflation horse: India's central bank has shifted its stance to neutral, balancing inflation and growth. Governor Shaktikanta Das emphasized vigilance due to ongoing global risks. Despite some easing, inflation remains a significant challenge, influenced by geopolitical tensions and high food prices. The RBI remains focused on maintaining its targets.
RBI ignores 'Global Dangal' in MPC meet. What does it mean for stock market investors?
Despite recent global market volatility and dovish signals from other central banks, the RBI MPC kept policy rates and stance unchanged, meeting market expectations and having a neutral impact on stock investors. Markets have been volatile recently due to US recession fears and the unwinding of the Japanese yen carry trade.
RBI appoints Aviral Jain as new Executive Director
The Reserve Bank of India (RBI) has appointed Aviral Jain as the new Executive Director, effective from October 1, 2024. Additionally, the government has reconstituted the RBI's Monetary Policy Committee by appointing Ram Singh, Saugata Bhattacharya, and Nagesh Kumar to serve on the panel for the next four years.
REC, PFC shares rise 4% on RBI's plan to ease stricter infrastructure funding norms
Shares of PFC and REC rose over 4% on BSE as the RBI considers a staggered approach to increasing provisioning requirements for project financing. This move aims to mitigate the impact on lenders and avoid making projects unviable.
RBI monetary policy pragmatic; should cut rate in coming months, say experts
The Reserve Bank of India has kept its key interest rate unchanged at 6.5% and shifted its policy stance to 'neutral'. This indicates a possible rate cut in the coming months. The decision aims to balance inflation control with sustained growth, while taking into account geo-political and economic factors.
RBI MPC: What strategy should mutual fund investors follow?
The RBI has kept the repo rate unchanged at 6.50% for the 10th time, indicating potential rate cuts in December or February. This could benefit debt mutual fund investors through capital appreciation, with experts recommending corporate bond funds and gilt funds for long-term investment horizons.
High policy rate not impinging on growth, economic activity well sustained: RBI Guv Das
Reserve Bank Governor Shaktikanta Das has stated that elevated interest rates are not hindering economic growth, which remains robust. The RBI kept the policy rate unchanged, with growth projected at 7.2% for the fiscal year. Future rate decisions will hinge on growth-inflation dynamics.
RBI to keep rates unchanged, retain stance amid food inflation: Goldman Sachs
Goldman Sachs expects the Reserve Bank of India to maintain interest rates and its withdrawal of accommodation stance at the August 8 meeting due to ongoing food inflation concerns. Despite a decline in core inflation, broad-based food inflation has kept headline inflation around 5% YoY in H1 CY24.
Why RBI opted for a neutral stance in MPC meet? R Gandhi answers
Only one surprise which has come out is that the inflation numbers for Q3 is likely to be higher than the earlier projected, that is something a little different, looks like because of that assessment only they did not go in for a rate cut despite the last two numbers having been below Reserve Bank’s target level, they remained conscious that in the very short term, inflation is likely to be little up, that is it.
RBI has laid ground for rate cuts, gets proactive in approach to NBFCs: Nilesh Shah
Nilesh Shah of Kotak AMC praises RBI's cautious stance on monetary policy and NBFCs. He notes RBI's proactive actions in managing unsecured loans and inflation. Shah believes the flexible monetary policy will support economic growth, with the RBI projecting a 7.2% GDP growth for FY25 despite global uncertainties and challenges.
Surprise Dissent! Who's the new rebel in RBI's monetary policy team?
The RBI appointed three new external members to its monetary policy committee, who influenced the shift to a 'neutral' stance on growth, despite differing views on the 6.5% repo rate. Nagesh Kumar emerged as a new dissenter advocating for a rate cut.
RBI's repo rate hold, growth outlook likely to support steady housing sales
The Reserve Bank of India maintained the repo rate at 6.5% amid ongoing strong housing market growth, with experts predicting continued demand despite missed opportunities for rate cuts. Developers emphasize the sector's resilience and potential compounding impact on India's GDP during the festive season.
Banks, NBFCs not permitted to levy foreclosure charges or pre-penalty on loans to micro and small enterprises: RBI
Central bank governor’s announcement to cover floating rate term loans sanctioned to individual borrowers for non-business purposes.
RBI MPC announces more than a stance shift: Here are the new plans
The Reserve Bank of India, led by Governor Shaktikanta Das, maintains the repo rate at 6.5% and shifts its stance to neutral. Key measures include banning pre-payment penalties on certain loans, proposing guidelines for UCB capital-raising, and initiating the Reserve Bank Climate Risk Information System.
