Tag: Reserve Bank of India

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 64.5443 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 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.

RBI sets rupee reference rate at 67.9522 against dollar

06/01/2017 15:22

The Reserve Bank of India today fixed the reference rate of the rupee at 67.9522 against the US dollar and 71.8662 for the euro.

The corresponding rates were 67.7884 and 71.5574, yesterday.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 84.0976 and 58.50 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 to sell overnight variable rate repo for Rs 1000 bn today

RBI to sell overnight variable rate repo for Rs 1000 bn today

08/12/2016 16:12

The Reserve Bank of India on Thursday said it will conduct an overnight variable rate repo auction for a notified amount of ? 1000 billion today.

“The auction will be conducted between 2.00 pm and 2.30 pm as per the revised guidelines on Term Repo Auctions issued on February 13, 2014,” RBI said in a press release.

Successful bidders will get the allotment at their respective bid rates, while bids at or below the repo rate will be rejected.

The reversal of the Overnight Variable Rate Repo will take place on December 9, 2016, it added.

Mid Session: Markets remain rangebound; APSEZ, HDFC top gainers

07/12/2016 12:22

The key domestic benchmark indices were trading in a positive terrain in the late morning trading session in rangebound trade as participants raised bets for rate cut ahead of the RBI policy meet scheduled for later in the day amid positive cues from fellow Asian peers.

The market is expecting rate action by RBI due to low inflation data and expectations of a further strengthen in deflationary forces.

The market is anticipating 25 bps cut in interest rate, while some expecting a 50 bps reduction, to combat the on-going demonetisation shock with November inflation staying in a comfortable territory of around 4 per cent. Rate-sensitive stocks such as financial, auto and realty will remain in focus today. Also, buying momentum was witnessed mainly in the oil & gas and public sector undertaking sector stocks.

At 12:22 AM, the Bombay Stock Exchange bellwether Sensex was at 26434.81 up by 42.05 points or by 0.16 per cent, while the NSE Nifty was at 8162.45 points, trading higher by 19.3 points or by 0.24 per cent.

The BSE Sensex touched an intraday high of 26469.93 and an intraday low of 26408.77 while the NSE Nifty touched an intraday high of 8170.7 and an intraday low of 8149.9

The top gainers of the BSE Sensex pack were Adani Ports & Special Economic Zone Ltd. (Rs. 277.70,+2.08 per cent), Housing Development Finance Corporation Ltd. (Rs. 1265.00,+1.70 per cent), Tata Motors Ltd. (Rs. 446.40,+1.14 per cent), Hero MotoCorp Ltd. (Rs. 3232.80,+1.09 per cent), Mahindra & Mahindra Ltd. (Rs. 1186.00,+0.92 per cent), among others.

Meanwhile, Sun Pharmaceutical Industries Ltd. (Rs. 676.95,-4.11 per cent), Tata Consultancy Services Ltd. (Rs. 2169.80,-0.94 per cent), Lupin Ltd. (Rs. 1518.50,-0.62 per cent), Infosys Ltd. (Rs. 963.00,-0.41 per cent), Wipro Ltd. (Rs. 455.80,-0.39 per cent), were among the top losers on BSE.

The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total 2537 shares traded, 1425 shares advanced, 956 shares declined while 156 were unchanged.

On the global front, Asian stocks were trading higher today as investors shrugged-off defeat of Italy’s constitutional referendum and shifted their focus to the upcoming policy meeting of the European Central Bank and also the US monetary policy due in December. US stocks closed higher in the previous trading session with the Dow Jones industrial hitting another record high as strong services sector data pointed to a strengthening economy.

Sensex up 52 pts; RBI policy meet eyed

07/12/2016 11:43

Indian equity benchmarks continued to trade in the positive territory during the late morning deals on Wednesday as participants raised bets for rate cut ahead of the RBI policy meet scheduled for later in the day amid positive cues from fellow Asian peers.

At 11:10 hours, the 30-share barometer index of Bombay Stock Exchange, Sensex was at 26,444.98, up by 52.22 points or 0.2 per cent while the NSE Nifty was at 8,163.5 up by 20.35 points or 0.25 per cent.

The RBI policy meet will be the first after demonetisation and traders are expecting a rate cut of at least 25 basis-points in the RBI’s two day bi-monthly monetary policy review, supported sentiment at D-street.

Buying momentum was witnessed mainly in the oil & gas and public sector undertaking sector stocks.

The top gainers of the BSE Sensex pack were Adani Ports & Special Economic Zone Ltd. (Rs. 276.25,+1.54%), Housing Development Finance Corporation Ltd. (Rs. 1260.00,+1.30%), Hero MotoCorp Ltd. (Rs. 3237.40,+1.23%), NTPC Ltd. (Rs. 165.00,+0.98%), Bharti Airtel Ltd. (Rs. 331.90,+0.87%), among others.

Major show spoilers were Sun Pharmaceutical Industries Ltd. (Rs. 677.90,-3.98%), Tata Consultancy Services Ltd. (Rs. 2171.15,-0.88%), Lupin Ltd. (Rs. 1523.00,-0.33%), ITC Ltd. (Rs. 229.60,-0.28%), Dr. Reddy’s Laboratories Ltd. (Rs. 3180.50,-0.27%), among others.

The market breadth, indicating the overall strength of the market, was positive. On BSE, out of the total 2,289 shares traded, 1,381 advanced while 782 shares declined and 126 remained unchanged.

On the global front, Asian markets were trading in the green as investors shrugged-off defeat of Italy’s constitutional referendum and shifted their focus to the upcoming policy meeting of the European Central Bank and also the US monetary policy due in December.

RBI’s liquidity measures to affect banks’ near-term profitability

RBI’s liquidity measures to affect banks’ near-term profitability

01/12/2016 12:57

India Ratings and Research (Ind-Ra), an India-based rating agency, has said that excess cash reserve ratio (CRR) requirement will additionally cost the banking system Rs 10.5 billion on a monthly basis.

The agency believes the relief from the Reserve Bank of India (RBI) would come in a staggered manner, as relieving this high quantum of liquidly all at once will come with challenges.

Ind-Ra opined that normalisation of the CRR requirement will be gradual and staggered, as the RBI may exercise caution before releasing the mopped up Rs 3 trillion to banks. The persistence of the surplus liquidity conditions will lead the RBI to evaluate alternatives available for liquidity sterilisation.

The agency continues to believe cash management bills can effectively manage the liquidity – owing to their short tenor and consistency with the monetary policy stance.

Ind-Ra said that the RBI’s decision to mop up excess liquidity will ensure a floor is put on bond yields. The shorter end of the yield curve is likely to underperform the longer end, as outsized impact will be felt on the former. The longer end of the curve will focus on the evolving global conditions and also upcoming RBI’s monetary policy review.

Ind-Ra expects banks to be more proactive in bringing down their term deposit rates, as the increase in CRR requirement creates a drag on the short-term profitability of banks. The move, which is temporary in nature, does not impair the longer term profitability of banks, but induces a larger negative carry on CRR in the computation of the marginal cost-based lending rate (MCLR).

In Ind-Ra’s view, the offsetting impact of a larger negative carry on CRR compared with cheaper deposits would restrict any significant downward movement of MCLR, hampering smooth monetary transmission.