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.
India is becoming the gold standard for monetary policy in Asia, if not the world. Reserve Bank of India has been very consistent in its message: Borrowing costs need to come down to juice growth. Passive inflation and the central bank’s full tank of gas make the case to cut even stronger.
– RBI cuts repo rate for 3rd time in a row by 25 bps to 5.75%. The repo rate, which now stands at 5.75 per cent, is the lowest since July 2010. – RBI delivers another rate cut, shifts policy stance to ‘accommodative’. The Reserve Bank of India (RBI) on Thursday the 6th June 2019,…
RBI vide Notification dated 29th May 2019 made amendments to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. An Ordinance, “Aadhaar and other Laws (amendment) Ordinance, 2019”, has been notified by the Government amending, inter alia, the Prevention of Money Laundering Act, 2002. Important changes carried out in the Master Direction in accordance with…
RBI has revised the RTGS time window with effect from June 01, 2019 as under: Sr. No. Event Time 1. Open for Business 08:00 hours 2. Customer transactions (Initial Cut-off) 18:00 hours 3. Inter-bank transactions (Final Cut-off) 19:45 hours 4. IDL Reversal 19:45 hours – 20:00 hours 5. End of Day 20:00 hours 3. The…
Small finance banks’ capital rules on RBI radar again. The review of the norms may immediately benefit Equitas Small Finance Bank and Ujjivan Small Finance Bank, which are desperately trying to abide by the listing rule by way of share-transfer schemes.
RBI proposes new, stringent liquidity norms for NBFC.
To improve risk-management practices, RBI tells NBFCs to post ‘chief risk officer’