Transfer of Surplus Reserves by RBI to Government and Its Implication on the Economy

RBI board accepts Jalan committee recommendation. Amid slowing economic growth and rising global uncertainty, the Reserve Bank of India (RBI) board on Monday approved transfer of Rs 1.76 lakh crore surplus reserves to the central government.

10 public sector banks merged into four

Finance Minister Nirmala Sitharaman announces 4 mega bank mergers. FM said that the creation of next-generation banks was imperative for India to become a $5 trillion economy in the next five years. The reforms in the banking sector come after the government announced a slew of measures to revive growth in the Indian economy.

FinMin plans 16-point ‘Key Responsibility Area (KRA)’ to push PSBs

The Finance Ministry has taken a note that the Market Share of PSB’s is declining while that of Private Banks is declining and therefore MOF has planned to address the issue of declining share of 18 Public Sector Banks based on the Performance Indicators in certain Key areas. Now onwards Performance indicators will assess how…

RBI Governor met CEOs of Public Sector Banks on 19th July 2019

RBI Governor Shri Shaktikanta Das held a meeting today with the CEOs of the public sector banks and the Chief Executive of Indian Banks Association (IBA) on the 19th July 2019. The Governor acknowledged discernible improvements in the banking sector while underscoring that several challenges still remain to be addressed, particularly with regard to the…

Cabinet approves seven amendments to IBC for easier resolution

The Union Cabinet cleared seven amendments to the Insolvency and Bankruptcy Code (IBC) during its meeting on Wednesday 17th July  which will allow the government to stick to strict timelines, and simultaneously, maximise the value of an insolvent entity from the resolution plan as a going concern. The amendments will also aid decision-making in the…

Union Budget for 2019-20: Key Highlights & Impact on Banking & Financial Sector

The Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman made her maiden Budget Speechon 5th July 2019 and presented the Union Budget 2019-20 before the Parliament. The key highlights of Union Budget 2019 are as follows: 10-point Vision for the decade 1. Building Team India with Jan Bhagidari: Minimum Government Maximum Governance. 2. Achieving green…

Current Account Deficit & Its Impact on Economy

Current Account Deficit & Its Impact on Economy What is Current Account Deficit? Current Account Deficit (CAD), is a key indicator that reflects the economic strength of a nation. The CAD is the net of foreign exchange inflows and outflows. CAD is one of the key indicators of an economy’s health and measures the difference…

Financial Stability Report – June 2019 -RBI

The Reserve Bank of India today released the 19th issue of the Financial Stability Report (FSR). The FSR reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability, as also the resilience of the financial system. The Report also discusses issues relating to development and regulation…

Prudential Framework for Resolution of Stressed Assets

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…

Statement on Developmental and Regulatory Policies

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,…