Tag: RBI

RBI to hold rates for a while before another rate cut: HSBC

RBI to hold rates for a while before another rate cut: HSBC

17/08/2017 17:02

A report has said that inflation numbers have risen as expected and the Reserve Bank will go in for a prolonged pause before cutting rates again.

Commenting on the issue, a British brokerage HSBC Official told the media, “We expect the RBI to be on a prolonged pause from here onwards with the risk of a 0.25 per cent rate cut (to our assumption) by the year-end if retail inflation undershoots the 4 per cent target by a comfortable margin.”

The brokerage attributed the jump in inflation numbers to rising vegetable prices, but underlined that core inflation excluding food, fuel ticked up after moderating for three straight months.

“We expect the HRA impact to show up further over the next six months. Thankfully, the RBI has mentioned that it will overlook this direct statistical impact of HRA, so prima facie, the rise in core inflation is nothing to worry about,” he added.

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RBI widens Basel-III-compliant asset base of banks

RBI widens Basel-III-compliant asset base of banks

03/08/2017 12:25

Ahead of the implementation of the stringent capital requirements under the Basel-III regime from 2019, the Reserve Bank amended a slew of previous regulations on the same, helping banks shore up their capital buffers and improve liquidity coverage ratios, reported PTI.

Accordingly, the new amendments widen the assets of banks such as the excess CRR; excess G-secs holdings in SLR; and also excess g-secs under marginal standing facility, which all would now be included in the stock of liquid assets without any limit as also without applying any haircut, the central bank said in a notification.

The regulator said liquid stock will also include marketable securities issued/guaranteed by foreign sovereigns which have only 0 per cent risk weight under the Basel II standardised approach for credit risk; actively traded repo or cash markets operations with zero risks, reserves held with foreign central banks in excess of the reserve requirement.

It said the RBI reserves would include banks’ overnight deposits and term deposits with the central bank which are explicitly and contractually repayable on notice from the depositing bank or which constitute a loan against which the bank can borrow on a term or on an overnight basis but automatically renewable basis.

Other term deposits with the central bank are not eligible for this. However, if the term expires within 30 days, the term deposits could be considered as an inflow, the RBI circular added.

Today’s circular amends some key sections of all the previous ones on the Basel norms, including the Master Circular on ‘Basel III Capital Regulations’ dated July 1, 2013.

RBI asks banks to provide sufficient details in passbooks

RBI asks banks to provide sufficient details in passbooks

23/06/2017 13:01

The RBI has said that it has asked banks to provide sufficient details of transactions in the passbooks and statements of accounts so that customers can cross-check them.

As per reports, earlier, the Reserve Bank had advised the banks to avoid unreadable entries in passbooks/statements of account and ensure that brief, intelligible particulars are invariably entered with a view to avoiding inconvenience to depositors.

Commenting on the issue, a RBI Official told the media, “It has come to RBI’s notice that many lenders still do not provide adequate details. In the interest of better customer service, it has been decided that banks shall at a minimum provide the relevant details in respect of entries in the accounts.”

As per reports, the details to be provided by banks in passbooks, include name of the payee, mode of transaction, nature of the charges (like fee/ commission/ fine/ penalty), and loan account number.

RBI likely to step up forex buying; rate cut on cards

RBI likely to step up forex buying; rate cut on cards

15/06/2017 17:09

The Reserve Bank is expected to step up forex buying and may go for a 25 basis points cut in interest rate on August 2, says a report.

According to the US economists of global financial services major Bank of America Merrill Lynch (BofAML), going by the latest Federal Open Market Committee (FOMC) meeting, the US Fed is likely to withdraw liquidity from September.

“We expect the RBI to recoup forex reserves with our US economists now expecting the Fed to withdraw liquidity from September,” BofAML said in a research note.

On RBI’s policy stance, the report said, a 25 basis points or 0.25 percentage point rate cut in August is likely as the next Fed hike is expected only in December.

“On balance, we continue to expect the RBI to cut 25 bps on August 2, as our US economists now expect the Fed to push out the next hike to December. Withdrawal of Fed liquidity should also contain global commodity prices and by extension, ‘imported’ inflation,” the report added.

In the monetary policy review on June 7, the RBI left key rates unchanged with Governor Urjit Patel noting that the central bank wanted to be more sure that inflation will stay subdued.

RBI sets rupee reference rate at 64.0214 against dollar

17/05/2017 14:37

The Reserve Bank of India today fixed the reference rate of the rupee at 64.0214 against the US dollar and 71.1598 for the euro.

The corresponding rates were 64.0758 and 70.5539 yesterday.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 82.7669 and 56.99 per 100 yens, respectively, based on reference rates for the dollar and cross-currency quotes at noon.

The SDR-rupee figure will be based on this rate, the statement added.

RBI sets rupee reference rate at 64.5443 against dollar

19/04/2017 14:48

The Reserve Bank of India today fixed the reference rate of the rupee at 64.5443 against the US dollar and 69.1915 for the euro.

The corresponding rates were 64.5657 and 68.7431 on yesterday.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 82.7458 and 59.39 per 100 yens, respectively, based on reference rates for the dollar and cross-currency quotes at noon.

The SDR-rupee figure will be based on this rate, the statement added.

RBI fixes MSS ceiling for 2017-18 fixed at Rs 1,000 bn

RBI fixes MSS ceiling for 2017-18 fixed at Rs 1,000 bn

12/04/2017 16:52

The Reserve Bank of India today fixed the ceiling for issuance under Market Stabilisation Scheme (MSS) for 2017-18 at Rs 1,000 billion.

“In accordance with the provisions of the Memorandum of Understanding (MoU) on the Market Stabilisation Scheme (MSS), the ceiling for gross issuance under the MSS for the fiscal year 2017-18 has been fixed at Rs 1,000 billion,” RBI said in a notification.

The current MSS outstanding balance is ‘Nil’, RBI added.

RBI inks MoU with Central Bank of Nigeria

22/03/2017 16:48

The Reserve Bank of India has announced its Memorandum of Understanding (MoU) on “Supervisory Cooperation and Exchange of Supervisory Information” with the Central Bank of Nigeria.

The apex bank signed an MoU with Central Bank of Nigeria under the presence of Godwin Emefiele, Governor on behalf of Central Bank of Nigeria and Dr Urjit R Patel, Governor Reserve Bank of India.

The RBI has entered into the MoU, Letter for Supervisory Co-operation and Statement of Co-operation with supervisors of a few countries to promote greater co-operation and share supervisory information.

However, the RBI has signed 37 such MoUs, one Letter for Supervisory Co-operation and one Statement of Co-operation

RBI slaps Rs 4 lakh fine on Progressive Co-op Bank

23/02/2017 15:01

The Reserve Bank of India has imposed a monetary penalty of Rs 4 lakh on Progressive Co-operative Bank Ltd. for violation of NBFC and KYC norms.

“The Reserve Bank of India has imposed a monetary penalty of Rs 4.00 lakh on Progressive Co-operative Bank Ltd., Mumbai in exercise of the powers vested in it under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies), for violation of instructions/guidelines issued by the Reserve Bank of India relating to lending to nominal members, financing an NBFC and KYC norms,” RBI said in a notification.

The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply and also made oral submissions thereon.

After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.

Post Session: Sensex snaps 4-day gain; ends 104 pts lower ahead of RBI policy

07/02/2017 16:21

Snapping four day gaining streak, the key domestic benchmarks ended lower on Tuesday, weighed down by losses in rate sensitive auto and realty stocks, as investors resorted to profit booking ahead of the RBI policy review due tomorrow. The industry is expecting at least 25 basis points reduction in the policy interest rates as the demonetization has resulted in a windfall gains for the banks in the form of ultra-low cost funds.

The 30-share barometer index of Bombay Stock Exchange, Sensex closed at 8335.16, down by 104.12 points or by 0.37 per cent, and the NSE Nifty ended at 8768.3, down by 32.75 points or by 0.37 per cent.

During the day’s trade, the BSE Sensex touched intraday high of 28483.41 and intraday low of 28239.12, while the NSE Nifty touched intraday high of 8809.3 and intraday low of 8741.05.

Tata Motors fell over 3 per cent even after the auto major’s UK subsidiary, Jaguar Land Rover, reported strong January sales with total retail sales of 47,693 units, up 4 per cent on the prior year.

The top losers of the BSE Sensex pack were Tata Motors Ltd. (Rs. 506.80,-3.52%), Coal India Ltd. (Rs. 315.60,-2.88%), Oil And Natural Gas Corporation Ltd. (Rs. 193.30,-2.86%), Adani Ports & Special Economic Zone Ltd. (Rs. 303.85,-1.86%), Lupin Ltd. (Rs. 1468.40,-1.73%), among others.

On the flip side, Infosys Ltd. (Rs. 944.75,+1.10%), Larsen & Toubro Ltd. (Rs. 1500.05,+1.02%), Maruti Suzuki India Ltd. (Rs. 6205.90,+0.89%), Asian Paints Ltd. (Rs. 996.80,+0.50%), Housing Development Finance Corporation Ltd. (Rs. 1405.75,+0.44%), were among top gainers on BSE.

On the sectoral front, metal and auto index emerging as top losers, falling as much as 1.25 per cent and 0.93 per cent respectively.

The market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 3182, shares advanced were 1423 while 1624 shares declined and 135 were unchanged.