THE RESERVE Bank of India (RBI) announced the withdrawal of its highest value currency note, Rs 2,000, from circulation, adding that the notes will continue to be legal tender. It said the existing Rs 2,000 notes can be deposited or exchanged in banks until September 30, but set a limit of “Rs 20,000 at a time”.
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) on Wednesday hiked the repo rate by 25 basis points to 6.50 per cent. Wednesday’s MPC meeting is the last one for this fiscal. The repo rate is the rate at which the RBI lends to the banks.
The Reserve Bank of India released the January 2023 issue of its monthly Bulletin. The Bulletin includes three speeches, five articles and current statistics. The five articles are: I. State of the Economy; II. Productivity Growth in India: An Empirical Assessment; III. What Drives Start-up Fundraising in India? IV. Open Market Operations in India – An Appraisal; and V. Supply of Banking Services and Credit Offtake: Evidence from Aspirational District Programme in the Eastern Area.
The Reserve Bank had issued the Framework for dealing with Domestic Systemically Important Banks (D-SIBs) on July 22, 2014. The D-SIB framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs starting from 2015 and place these banks in appropriate buckets depending upon their Systemic Importance Scores (SISs). Based on the bucket in which a D-SIB is placed, an additional common equity requirement has to be applied to it. In case a foreign bank having branch presence in India is a Global Systemically Important Bank (G-SIB), it has to maintain additional CET1 capital surcharge in India as applicable to it as a G-SIB, proportionate to its Risk Weighted Assets (RWAs) in India, i.e., additional CET1 buffer prescribed by the home regulator (amount) multiplied by India RWA as per consolidated global Group books divided by total consolidated global Group RWA.
The Reserve Bank had announced SBI and ICICI Bank as D-SIBs in 2015 and 2016. Based on data collected from banks as on March 31, 2017, HDFC Bank was also classified as a D-SIB, along with SBI and ICICI Bank. The current update is based on the data collected from banks as on March 31, 2022.
The Financial Stability Report (FSR), which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the financial system. FSR is published two times in a year.
Report on Trend and Progress of Banking in India 2021-22, is a statutory publication in compliance with Section 36 (2) of the Banking Regulation Act, 1949. This Report presents the performance of the banking sector, including co-operative banks and non-banking financial institutions, during 2021-22 and 2022-23 so far.
The Statement sets out various developmental and regulatory policy measures relating to (i) Regulation and Supervision; (ii) Payment and Settlement Systems; and (iii) Financial Markets.
The Monetary Policy Committee (MPC) met on 5th, 6th and 7th December 2022. Based on an assessment of the macroeconomic situation and its outlook, the MPC decided by a majority of 5 members out of 6 to increase the policy repo rate by 35 basis points to 6.25 per cent, with immediate effect. Consequently, the standing deposit facility (SDF) rate stands adjusted to 6.00 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.50 per cent. The MPC also decided by a majority of 4 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.
RBI Monetary Policy key highlights: Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) today raised the policy rate by 50 basis points, to further rein in inflation. The fourth consecutive rate hike in a row comes amid rising fears of global recession, surging inflation, and a slump in Indian rupee and bond markets. The central bank is trying hard to maintain a tight balance between controlling inflation on one hand and support the nascent economic growth recovery on the other hand.
The Reserve Bank of India on Friday hiked the repo rate by 50 bps, taking the key policy rate back to the pre-pandemic level of 5.4 per cent. Today’s hike was the third such in a row, with which the cumulative rate hike since May is now 140 bps. The central bank’s MPC (Monetary Policy Committee) said that it remains focused on “withdrawal of accommodation” to combat the elevated inflationary pressures while also supporting growth.
“These decisions are in consonance with the objective of achieving the medium term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth,” Governor Shaktikanta Das said.
Sustained high inflation could de-stabilise inflation expectations and harm growth in the medium term, he added.