Directions on Governance of domestic CCPs authorised to operate in India by the RBI, the upper age limit for appointment of Director, Nominee Director, Independent Director and Chairperson has been revised to 70 years. The upper age limit for appointment of Managing Director shall continue to be 65 years.
The Reserve Bank has since reviewed the various charges levied by it on the member banks for transactions processed in the RTGS and NEFT systems. In order to provide an impetus to digital funds movement, it has been decided that with effect from July 1, 2019, processing charges and time varying charges levied on banks by Reserve Bank of India (RBI) for outward transactions undertaken using the RTGS system, as also the processing charges levied by RBI for transactions processed in NEFT system will be waived by the Reserve Bank. The banks are advised to pass on the benefits to their customers for undertaking transactions using the RTGS and NEFT systems with effect from July 1, 2019.
The apex bank eased regulations for Basic Savings Bank Deposit (BSBD) Accounts, popularly known as ‘no-frills’ accounts. As part of the financial inclusion drive, the RBI had asked banks to provide BSBDA as a savings account offering – certain minimum facilities, free of charge. The Reserve Bank of India (RBI) on Monday said commercial banks need to…
The performance of chiefs of public and private sector banks should be closely monitored by the Board of Directors either through a sub-committee or an external peer group review, according to Reserve Bank of India (RBI) Governor Shaktikanta Das.
Reserve Bank of India has issued a new framework on 7th June 2019 for resolution of bad loans, replacing the previous norms quashed by the Supreme Court in April, offering a 30-day gap for stress recognition instead of the one-day default earlier. The apex court had on April 2 struck down the stringent RBI circular, issued…
Lowering leverage ratio threshold can offer leeway to expand balance sheet of banks. Lowering Leverage Ratio allows some leeway for banks to take additional exposure (vis-à-vis capital) and expand their balance sheets.
Review of liquidity management framework could boost transmission
Radhika Merwin | Updated on June 06, 2019 Published on June 06, 2019
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After RBI delivers, the big question: Will the banks yield, too?
Lowering leverage ratio threshold can offer leeway to expand balance sheet of banks. A rethink is needed on the objective of keeping the operational rate aligned to the policy repo rate.
RBI has released Statement on Developmental and Regulatory Policies on 6th June 2019 which sets out various developmental and regulatory policy measures for strengthening regulation and supervision; broadening and deepening the financial markets; and improving payment and settlement systems. I. Regulation and Supervision 1. Leverage Ratio for Banks In order to mitigate risks of excessive leverage,…
Significant easing of liquidity is critical for better transmission
Significant easing of liquidity is critical for better transmission. When banks face a liquidity crunch, they are unable to toe the RBI’s line and lower deposit rates in a hurry. With no relief on the cost front, their ability to lower lending rates without hurting margins is difficult.
Digital transactions are likely to get a boost and payments through other modes such as cash, demand draft and cheque may come down as the Reserve Bank of India has decided to do away with the charges it levies on fund transfers through RTGS and NEFT routes.