DHFL exposure: RBI rejects banks’ ‘Trust’ proposal

The Reserve Bank of India (RBI) rejected a proposal by banks that would have allowed them provisioning relief to the tune of Rs 6,000 crore on borrowings by troubled mortgage lender Dewan Housing Finance Corp. Ltd (DHFL), said two people aware of the development. This could dent the December quarter earnings of Indian banks. Banks … Read moreDHFL exposure: RBI rejects banks’ ‘Trust’ proposal

RBI issues guidelines on ‘on tap’ authorisation on payment systems

Mumbai: The RBI on Tuesday issued guidelines on ‘on tap’ authorisation of payment systems, including minimum networth criteria for different players, with an aim to encourage innovation and competition. In a circular, the RBI said it has been decided to offer on-tap authorisation for Bharat Bill Payment Operating Unit (BBPOU), Trade Receivables Discounting System (TReDS) … Read moreRBI issues guidelines on ‘on tap’ authorisation on payment systems

Credit woes in India seen pressuring Modi to take more action

By Rahul Satija A $20 billion tax cut and the lowest borrowing rates in almost a decade may not be enough to bolster the credit metrics of Indian firms, top raters in the country say, putting pressure on policymakers to take additional steps to kick start the flagging economy. “A meaningful and broad-based improvement in … Read moreCredit woes in India seen pressuring Modi to take more action

View: It’s time to reform India’s cooperative banks

A rogue stock broker, with a Midas touch, had once walked away with 70% of the money of a cooperative bank called Madhavpura. All hell broke loose when the man defaulted and the scam surfaced. Some of the smaller banks, daisy-chained to Madhavpura, shut shop. That was 2001. Eighteen years later, an upstart builder with … Read moreView: It’s time to reform India’s cooperative banks

The Co-op crisis: How 1,500-odd urban cooperative banks are being run and regulated

Last Friday, no one turned up to deliver milk at Avillion Greenfields, a cooperative housing society in Mumbai. The delivery boys were apparently unable to withdraw enough cash from their bank to buy milk supplies. Their savings are currently stuck at Punjab Maharashtra Cooperative (PMC) Bank, which has been put under restrictions by the Reserve … Read moreThe Co-op crisis: How 1,500-odd urban cooperative banks are being run and regulated

For Finance Minister, economic revival has already started

New Delhi: Finance Minister Nirmala Sitharaman on Saturday said there are clear signs of revival of most of the indicators of the economy with uptick in industrial production and fixed investment after economic growth plunged to a six-year low of 5 per cent in Quarter 1. According to Sitharaman, “there is robust FDI inflows and … Read moreFor Finance Minister, economic revival has already started

D-Street experts say exports, housing sops for long term, won’t help in short term

New Delhi/Mumbai: Market participants gave a thumbs up to the measures announced by Finance Minister Nirmala Sitharaman on Saturday for export and housing sectors, but said they would be helpful only in the long run. “The contour of the plans are promising, but from a long-term perspective, and will not dramatically change the situation in … Read moreD-Street experts say exports, housing sops for long term, won’t help in short term

RBI proposes Rs 200 crore minimum capital for small banks under ‘on tap’ licence regime

MUMBAI: The Reserve Bank of India (RBI) on Friday proposed a minimum equity capital of Rs 200 crore to set up a small finance bank (SFB) under the ‘on tap’ licence regime to expand the banking services through high technology-low cost operations. Releasing the draft guidelines for ‘on tap’ licensing of SFBs in the private … Read moreRBI proposes Rs 200 crore minimum capital for small banks under ‘on tap’ licence regime

Merging state banks won’t solve governance issue: Former RBI Governor YV Reddy

MUMBAI: Former Reserve Bank of India Governor YV Reddy on Friday said that merging state-run banks will not solve the issue of governance and consolidation should be based on synergies with boards driving the initiative. Reddy also said that global experience has so far shown that half of bank mergers have been ineffective. “I won’t … Read moreMerging state banks won’t solve governance issue: Former RBI Governor YV Reddy

Fintech panel for legislative changes for issuance of FDs, other instruments in demat form

An inter-ministerial panel on fintech has suggested legislative changes be made to enable fixed deposits (FDs) and other financial instruments to be issued in dematerialised form as it is customer-friendly and secure. The Steering Committee headed by the Economic Affairs Secretary also suggested that the Department of Financial Services (DFS) and Reserve Bank of India … Read moreFintech panel for legislative changes for issuance of FDs, other instruments in demat form

India’s GDP growth slows to 5% in April-June 2019

The Central Statistics Office today released the gross domestic product numbers for April-June quarter, which showed India’s GDP expanded 5% in the quarter through June – the slowest pace in six and half years. The Indian economy grew 5 percent year-on-year in first quarter of FY2020, slowing from a 5.8 percent expansion in the previous … Read moreIndia’s GDP growth slows to 5% in April-June 2019

RBI announces modalities for 2 pc interest subvention for fisheries farmers

MUMBAI: The Reserve Bank of India (RBI) on Monday announced modalities for providing 2 per cent interest subsidy on short-term loans of up to Rs 2 lakh for farmers engaged in fisheries and animal husbandry through Kisan Credit Card (KCC). With this interest subvention, such farmers will get short-term loan of up to Rs 2 … Read moreRBI announces modalities for 2 pc interest subvention for fisheries farmers

RBI clarifies on free ATM transactions

MUMBAI: The Reserve Bank of India has told banks not to treat failed transactions at ATMs or non-cash transactions such as balance enquiries or chequebook requests as part of five free transactions available to customers every month. “It has come to our notice that transactions that have failed due to technical reasons, non-availability of currency … Read moreRBI clarifies on free ATM transactions

Retail inflation remains benign at 3.15% in July

India’s retail inflation eased marginally to 3.15 % in July from 3.18% in June on the back of high food prices. The number, however, remained below RBI’s 4% for the 12th straight month, despite recent interest rate cuts. Delayed monsoon had pushed the number to an 8-month high of 3.18 per cent in June. As … Read moreRetail inflation remains benign at 3.15% in July

India’s RBI names Kanungo to run monetary policy after Acharya quits

MUMBAI: India’s central bank said on Tuesday it had assigned deputy governor B.P. Kanungo to run the monetary policy portfolio after the resignation of fellow deputy governor Viral Acharya. Kanungo, who will retain his currency management portfolio, would become the sixth member of the Reserve Bank of India‘s Monetary Policy Committee, which will next convene … Read moreIndia’s RBI names Kanungo to run monetary policy after Acharya quits

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