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Banks can boost liquidity by drawing down on CRR: RBI governor Das

The fall in the liquidity surplus is owing to multiple factors, including the RBI's interventions in the forex market and a sharp pick-up in bank credit growth, which is currently at nine-year highs

RBI expects inflation to come down to 4% over the next two years

RBI which announced the review of policy today, decided to increase the policy repo rate by 50 bps to 5.9%

Extending purview: RBI to regulate offline payment aggregators, too

Pinelabs, MSwipe, Ezetap, FSS, Hitachi payments, Worldline, etc. are some offline payment aggregators

Action against M&M Financial Services won't affect other NBFCs: RBI

Experts had pointed out that in light of these directions against one entity, recovery activities of NBFC sector could get impacted as a majority of NBFCs rely on outsourced agents for loan recovery

Home loans dearer, moderate impact on residential sale from RBI rate hike

The RBI's decision to hike repo rate will hit consumers' buying sentiment, but will have a moderate impact on housing sales in the affordable and mid-income categories, according to industry experts. With a hike in repo rates by 50 basis points, interest rates on home loans will rise and affordability of buying homes will reduce, they said. However, property developers and consultants feel that impact will be limited in view of pent up, as well as current festive demand. Developers are already offering discounts and freebies to boost sales during festival season and may further sweeten the deal to attract fence sitters. Anarock Chairman Anuj Puri said: "With this repo rate hike, home loans will get dearer soon. This could impact residential sales to some extent during the upcoming festive quarter, particularly in the affordable and mid-range housing segments." Housing sales have risen by 40-50 per cent in the July-September quarter, despite a hike in interest rates on home loans a

RBI may adopt expected loss approach for banks' loan provisioning: Guv Das

Governor Shaktikanta Das on Friday said the Reserve Bank is mulling to adopt the "expected loss" approach for loan provisioning. At present, the banks follow the "incurred loss" approach, where money is set aside after an asset turns sour. Das called the proposed transition a "more prudent and forward looking approach", and said that a discussion paper will be released soon for stakeholders to comment on the same. "We will release a discussion paper on 'expected loss-based approach' for loan loss provisioning by banks," the Governor said after announcing the bi-monthly policy review. He said the approach to make provisions or set aside money on the probable losses is a globally accepted prudent norm. At present, larger non-bank lenders have already been using the expected loss approach for provisioning since 2018. Banks were also expected to follow the expected loss approach in 2018 itself, but it had not been implemented because certain necessary amendments to the Banking Regula

Regulations for offline payment aggregators to be same as online peers: RBI

Offline payment aggregators (PAs) who aid in face-to-face transactions at merchant outlets will now come under the regulatory purview of RBI, Governor Shaktikanta Das announced on Friday. "Keeping in view the similar nature of activities undertaken by online and offline PAs, it is proposed to apply the current regulations to offline PAs as well," Das said after announcing the bi-monthly policy review. Das said there will be "convergence on standards of data collection and storage" after the move, meaning that such companies will not be able to store details like those of credit and debit cards of a customer. The Governor said PAs play an important role in the payments ecosystem and hence were brought under regulations in March 2020 and designated as Payment System Operators (PSOs). However, the current regulations are applicable only to PAs processing online or e-commerce transactions, he said, adding that they do not cover offline PAs who handle proximity/face-to-face transactions

RBI policy projections: Sept inflation to hit five-month high of 7.6%

Central bank will have to write to government explaining the reasons of its failure to contain inflation up to 6%

RBI to publish paper on expected loss-based approach for loan provisioning

Banks now make loan loss provisions on incurred loss model, wherein provisions are made after defaults

RBI monetary policy: Repo rate hiked by 50 bps, here is what it tells us

RBI Policy: Shaktikanta Das announced the RBI MPC's decision to hike the repo rate by 50 basis points to 5.9% and slash the GDP forecast for FY23 to 7% from 7.2% earlier

India's forex reserves fell the most among emerging economies: Report

Since the beginning of 2022, India's reserves have fallen 13.88 per cent from $633.6 billion to $545.6 billion

Rajasthan govt approves financial assistance of Rs 100 crore for MSMEs

This scheme was announced in the state Budget 2022-23 to promote micro, small, and medium enterprises (MSMEs), and give loans on easy terms for small businesses and investors

Banks increase interest rates on bulk deposits as liquidity tightens

Loan, deposit growth gap at 10-year high

Govt must curb non-essential imports to stem rupee fall: CEO poll

India Inc encourages FDI, raising dollar deposits from NRIs

Current account deficit widens to 2.8% of GDP in Q1; trade deficit jumps

Services exports, remittances show firm momentum in Q1

US economy, geopolitics: Factors that could roil markets next quarter

With the rupee weakening against the US dollar, a more hawkish pivot by RBI is expected

Industry prepared for potential disruptions as tokenisation nears

industry insiders say, the success rate of token-based transactions is higher, but inadequate testing of certain use-cases may result in some transactions not going through

RBI policy: How inflation, repo rate and demand are linked to each other

With the RBI MPC expected to announce its decision on Friday, we explain how inflation, repo rate and demand are linked to each other

India's CAD may have breached 3% of GDP in Q1 on surge in imports

Analysts peg full-year figure at $120 bn, but say it will be lower as proportion of GDP than FY13 levels

Rupee at another low of 81.94 per dollar as US Fed talks up rate hikes

RBI may have sold more than $1 bln in FX mkt, prevented rupee from breaching 82/$1