Tag: RBI

RBI’S BI-MONTHLY MONETARY POLICY REVIEW ON 6TH AUGUST 2020 – Highlights & Key Takeaways

The Monetary Policy Committee met on 4th, 5th and 6th August for its second meeting of 2020-21, completing four years of its operation under the new monetary policy framework. At the end of its deliberations, the MPC voted unanimously to leave the policy repo rate unchanged at 4 per cent and continue with the accommodative stance of monetary policy as long as necessary to revive growth, mitigate the impact of COVID-19, while ensuring that inflation remains within the target going forward. The Marginal Standing Facility (MSF) rate and the Bank rate remain unchanged at 4.25 per cent. The reverse repo rate stands unchanged at 3.35 per cent.

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Bankers express concern over RBI governance paper, feel it could have adverse effects.

Bankers have written to the Reserve Bank of India (RBI) seeking a review of its discussion paper on governance that aims to curtail the power of CEOs and calls for heads of risk, compliance and audit to report to the board, said people with knowledge of the matter.

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Pvt bank CEOs likely to get 15-year tenure – RBI’s Draft Code on Governance

The tenure of chief executive officers (CEOs) of private banks — be they promoters or professionals — may be capped at 15 years. This could be part of the revisit of the central bank’s draft code on governance, to which banks have given their responses. The other change on the cards is to make CEOs part of the risk management committee (RMC) and an invitee to audit committee (AC) meetings. The chairman’s presence on key committees may be decided by the board, based on the expertise of the incumbent.

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RBI”s Financial Stability Report, July 2020

Reserve Bank released the 21st Issue of the Financial Stability Report (FSR) on 24th July 2020, 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 in the context of contemporaneous issues relating to development and regulation of the financial sector.

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Fair Practices Code for Asset Reconstruction Companies

RBI has issued instructions to All Asset Reconstruction Companies in exercise of the powers conferred by Section 9 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002, Asset Reconstruction Companies registered with the Bank to adopt ‘Fair Practices Code’ so as to ensure transparency and fairness in their operation.

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Credit flow to Micro, Small and Medium Enterprises Sector

RBI issued instructions to all the Financial Institutions including Banks, Cooperative Banks, NBFC’s and other FI’s to initiate necessary action for reclassification of enterprises as per the new definition w.e.f July 1, 2020 and issue necessary instructions to your branches/controlling offices in this regard,

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Cooperative banks to be supervised by RBI; govt to bring an ordinance

Cooperative banks to be supervised by RBI; Govt. to bring in ordinance for the same soon

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Cooperative banks to be supervised and brought under the ambit of RBI; govt to bring an ordinance

Union government will bring an ordinance to put cooperative banks under RBI supervision. All govt banks, including urban and multi-state cooperative banks will be brought under the supervisory powers of the RBI.

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Bank Promotions – Latest Banking Updates (As on 31.05.2020)

This booklet entitled ” Latest Banking Updates – Bank Promotions (Updated as of 31.05.2020)” has been prepared with an intention to provide ‘Latest Developments in Banking and Financial Sector’ for the enrichment of Bank’s Staff, the Banking knowledge and Banking Developments taking place in present day scenario, when the entire Banking Industry is facing heavy Turbulence in the form of huge NPA and mounting losses.

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RBI issues Statement on Developmental and Regulatory Policies

The Statement on Developmental and Regulatory Policies sets out various developmental and regulatory policy measures to improve the functioning of markets and market participants; measures to support exports and imports; efforts to further ease financial stress caused by COVID-19 disruptions by providing relief on debt servicing and improving access to working capital; and steps to ease financial constraints faced by state governments.

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