Page 23 - Rbi

RBI circular permits resident entities to hedge gold price risks at IFSC

The Reserve Bank on Monday permitted resident entities to hedge their exposure to price risk of gold on exchanges in the International Financial Services Centre (IFSC). Resident entities in India are currently not permitted to hedge their exposure to price risk of gold in overseas markets. "On a review, it has been decided to permit eligible entities to hedge their exposure to price risk of gold on exchanges in the IFSC recognised by the International Financial Services Centres Authority (IFSCA)," the RBI said in a circular. An announcement in this regard was made by Reserve Bank Governor Shaktikanta Das while unveiling the bi-monthly monetary policy last week. Hedging refers to the activity of undertaking a derivative transaction to reduce an identifiable and measurable risk.

RBI sells $33.42 billion in Apr-Sep FY23 to curb rupee volatility

The Reserve Bank of India (RBI) net sold USD 33.42 billion in the foreign exchange market in the first six months of current fiscal to defend the rupee from excessive volatility. The central bank closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band. "During the financial year, the RBI's operations have resulted in net sales of USD 33.42 billion till September 2022 (settlement basis)," Finance Minister Nirmala Sitharaman said in a reply to the Lok Sabha. The exchange rate of the Indian Rupee (INR) against the greenback hit a record high of Rs 83.20 per dollar on October 20, 2022. The value of rupee is market-determined. As global spillovers from geopolitical tensions and aggressive monetary policy tightening across the world intensified alongside a surge in crude oil prices, the US dollar strengthened by 7.8 per cent

Govt not to make public RBI report on reasons for inflation target breach

The government on Monday ruled out making public the RBI report detailing the reasons why the central bank could not keep inflation within the targeted 6 per cent upper limit for the three consecutive quarters. "Yes sir, RBI has furnished a report to the central government, as mandated under Section 45ZN of the RBI Act, 1934 and Regulation 7 of RBI Monetary Policy Committee and Monetary Policy process Regulations, 2016," minister of state for finance Pankaj Chaudhary said in a written reply. The said provisions of the RBI Act, 1934, and regulations therein does not provide for making the report public, he said. The average inflation was above the upper tolerance level of the inflation target, that is 6 per cent for 3 consecutive quarters during January-September, 2022. During the January-March quarter, the average inflation was 6.3 per cent, in April-June period it was 7.3 per cent and it eased to 7 per cent in September quarter. It was the first time since the monetary policy ...

Digital lending apps: RBI received 13,000 complaints against banks, NBFCs

The grievances, filed under RBI's integrated ombudsman scheme of 2021 between April 2021 and Nov 2022, also cite harassment by recovery agents

Govt not to make RBI report on MPC's first-ever inflation failure public

MPC is said to have failed to achieve inflation target if average CPI inflation falls outside 2-6% range for three straight quarters. This was the case in the three quarters from Jan to Sept of 2022

Fixed denominations vs token system: Why digital cash needs to feel real

If the payment market is cornered by a few powerful private-sector platforms, they may impose hidden charges and fees

24 hours of jumbo interest-rate hikes to cap year of soaring inflation

More than 50 central banks have gone for 75-bp increases, with over 275 rate hikes this year

State Bank of India to begin overseas rupee trade with smaller nations

Move to steer clear of West sanctions on Russia deals

RBI shortlists 7 consultancy firms to use AI, ML to improve supervision

The Reserve Bank has shortlisted seven global consultancy firms, including Pricewaterhouse Coopers, McKinsey and Boston Consulting Group (India), to use artificial intelligence and machine learning for supervisory functions. The RBI is looking to extensively use advanced analytics, artificial intelligence and machine learning to analyse its huge database and improve regulatory supervision over banks and NBFCs. For this purpose, the central bank plans to hire external experts. In September this year, the RBI invited expressions of interest (EoI) for engaging consultants for use of advanced analytics, artificial intelligence and machine learning for generating supervisory inputs. Based on the scrutiny/evaluation set out in the EOI document, the central bank has shortlisted seven applicants for participating in the request for proposal process (RFP) for the selection of consultant(s), according to an RBI document. The seven firms are Accenture Solutions Private Limited; Boston Consult

Forex reserves at a three-month high; $11 billion added in a week

Reserves rise for 4th straight week on revaluation, likely RBI dollar purchases

YES Bank gets RBI nod to raise capital from Carlyle, Verventa Holdings

YES Bank will now engage with the investors for completion of the proposed capital raise, subject to various regulatory compliances

Revised RBI guidelines on securitisation likely to impact short-term loans

But they are unlikely to disrupt the securitisation market as such loans constituted only 5% of the total securitisation volume in H1FY23

Wide gap between bank credit and deposit growth seen declining

Lower GDP growth, RBI rate hikes, reversal of base effect to blunt credit growth, analysts say

UPI to now allow blocking money for multiple debits, paves way for ASBA

The RBI said the Bharat Bill Payment System (BBPS) will now include a wider variety of recurring and non-recurring payments

RBI policy: Here is why the central bank needs to stop raising rates

RBI, following conventional wisdom, is guilty of wanting to show that it's doing something to bring down inflation while perhaps helping worsen it by slowing down efforts to increase capacity, output

Top Headlines: IDBI stake sale, comprehensive package for Vi, and more

Queries shows a strong interest in the proposed IDBI transaction

Best of BS Opinion: Greening of GST, hard truths about soft power & more

Here is the best of Business Standard's opinion pieces for today

RBI opts for smaller repo rate hike of 35 bps, hints at more to come

Main risk is core inflation remaining sticky: Governor

RBI announces extension on HTM bond books dispensation till March 2024

Central bank decision to provide cushion for banks on government bond investments

Consumer-facing firms see no 'immediate impact' of RBI's rate hike

Shashank Srivastava, senior executive officer (sales and marketing) at Maruti Suzuki India, said that though higher retail loan rates could adversely impact demand, the industry would have to wait