Banks need to raise private capital to deal with bad loans: RBI

The mounting problem of bad loans of banks cannot be resolved by their simple recapitalisation and options like raising private capital for state-run banks need to be considered to deal with the issue, the RBI said on Friday.

"I wish to propose that we deal with the ailing public sector banks in creative ways instead of just propping them up with state aid," said Reserv

India's Forex reserves surge by $1.25 bn

India's foreign exchange (Forex) reserves rose by $1.25 billion as on April 21, 2017, official data showed on Friday.

According to the Reserve Bank of India's weekly statistical supplement, the overall Forex reserves increased to $371.13 billion from $369.88 billion reported for the week ended April 14.

India's Forex reserves comprise of foreign currency assets (

Risk management: RBI asks banks to frame policy on CRO

The Reserve Bank has asked banks to lay down a policy defining responsibilites and fixed tenure of the chief risk officer as it seeks to bring uniformity in risk management system of lenders, reported PTI. As part of effective risk management, banks are required to have a system of separation of credit risk management function from the credit sanction process.

"However, it is obs

RBI sets rupee reference rate at 64.1141 against dollar

The Reserve Bank of India today fixed the reference rate of the rupee at 64.1141 against the US dollar and 69.8908 for the euro. The corresponding rates were 64.0013 and 70.0430 on yesterday. According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 82.5854 and 57.60 per 100 yens, respectively, based on reference rates for the dollar and cross-currency q

RBI slaps fine on Panjabrao Deshmukh Urban Co-op Bank

The Reserve Bank of India has slapped a fine of Rs 5 lakh on Panjabrao Deshmukh Urban Co-operative Bank Ltd for violation of Know Your Customer (KYC) norms. “The Reserve Bank of India has imposed a monetary penalty of Rs 5.00 lakh on Dr. Panjabrao Deshmukh Urban Co-operative Bank Ltd., Amravati in exercise of powers vested in it under the provisions of Section 47A (1) (b) read with Sectio

RBI to circulate new10 rupee coins: Reports

The Reserve Bank has said that it will soon put into circulation new Rs 10 coins that have been minted to commemorate 125th year of National Archives of India. As per reports, the central bank will also put into circulation new Rs 5 coins to celebrate 150th anniversary of Allahabad High Court.

Commenting on the issue, a RBI Official told the media, “On the reverse of the coin, t

Bank credit demand inches up 5.5% in first fortnight of FY18

After plunging to an over six- decade low of 5.08 per cent in fiscal 2017, bank credit inched up to 5.52 per cent in the fortnight to April 14, according to the Reserve Bank data, reported PTI.

For the fortnight to April 14, bank credit stood at Rs Rs 76.31 trillion, up 5.52 per cent from Rs 72.31 trillion in the week to April 15, 2016, thus beginning the new financial year on a promi

RBI issues new draft rules for M&As

The Reserve Bank has proposed a fresh set of regulations regarding mergers and acquisitions which seek reporting of such actions to be more stringent and time-bound, and provide for mandatory permission for all deals which are not on the automatic route, reported PTI. This follows the new regulations notified by Corporate Affairs Ministry under the Companies (Compromises, Arrangements and Amalg

RBI levies penalty on two Authorised Dealer Banks

The apex banking institution, Reserve Bank of India has slapped a monetary penalty of Rs 70,000 and Rs 10,000 on The Hongkong and Shanghai Banking Corporation Ltd. and Kotak Mahindra Bank respectively for violation of instructions on reporting requirements of FEMA 1999.

The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of section 11(

RBI sets rupee reference rate at 64.0013 against dollar

The Reserve Bank of India (RBI) today fixed the reference rate of the rupee at 64.0013 against the US dollar and 70.0430 for the euro.

The corresponding rates were 64.2776 and 69.8569 previously. According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 82.1265 and 57.47 per 100 yens, respectively, based on reference rates for the dollar and cr

Inflation risks may prevent RBI from rate cut: D&B

A Dun and Bradstreet report has said that upside risks to inflation persist despite prediction of a good monsoon and might deter the Reserve Bank from going in for a rate cut in the near future. According to the report, rise in global commodity prices, possibility of El Nino, increase in house rent allowance under 7th Pay Commission and the initial impact on prices due to GST will add to the up

Apple, Cisco, IBM owe their success to world-wide talent sourcing: RBI chief

The titans at the commanding heights of the tech world owe their success to talent from across the globe, according to Reserve Bank of India Governor Urjit Patel, who pointed to what could be the Achilles heel of the 'America First' policy that seeks to restrict H1-B visas and imports.

"Where would Apple be, where would Cisco be, where would IBM be if they were not s

India Inc overseas borrowing surges 11.6% in March

India Inc raised USD 1.69 billion from overseas markets in March 2017, up 11.6 per cent from a year ago. Domestic firms had borrowed $1.52 billion through external commercial borrowing (ECB) in March 2016.

An additional USD 1.65 billion was mopped up through rupee-denominated bonds (RDBs), an instrument permitted by the RBI last year for companies to float such bonds overseas only to

RBI slaps Rs 20k fine on Bhadohi Urban Co-operative Bank

The Reserve Bank of India has imposed a fine of Rs 20,000 on Bhadohi Urban Co-operative Bank Ltd for violation of RBI guidelines.

“RBI has imposed a monetary penalty of ? 20,000/- (twenty thousand rupees only) on Bhadohi Urban Co-operative Bank Ltd., Bhadohi in exercise of powers vested in it under the provisions of Section 47A(1)(c) read with Section 46(4) of the Banking Regula

RBI sets rupee reference rate at 64.4757 against dollar

The Reserve Bank of India today fixed the reference rate of the rupee at 64.4757 against the US dollar and 69.9884 for the euro. The corresponding rates were 64.5701 and 69.1675 on Friday. According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 82.4580 and 58.56 per 100 yens, respectively, based on reference rates for the dollar and cross-currency quot

RBI to auction 15-days government cash management bill worth Rs 20,000 cr

The Reserve Bank of India on Friday said that it will auction 15-days Government of India Cash Management Bill worth Rs 20,000 crore on April 26, 2017. “The auction will be conducted using "Multiple Price Auction" method,” RBI said in a notification.

The maturity date of the 15-days Government of India Cash Management Bill is May 11, 2017. The competitive bids fo

Parliamentary panel summons RBI Governor again

Reserve Bank of India (RBI) Governor Urjit Patel has been summoned by Parliamentary Standing Committee on Finance to appear before it on May 25 on the demonetisation issue.

According to one of the panel members, he will be asked how money has so far come back into the system after demonetisation. 

The Governor would also be asked when the banks' operations would bec

RBI strengthens tools to intervene in ailing Indian banks

The Reserve Bank of India's (RBI) updated "prompt corrective action" (PCA) framework could suggest a greater willingness to take regulatory action to address problems at struggling banks, but its implementation is only likely to be effective if it is matched by credible plans to address banks' significant asset quality issues and capital shortages, says Fitch Ratings.

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RBI sets rupee reference rate at 64.5701 against dollar

The Reserve Bank of India today fixed the reference rate of the rupee at 64.5701 against the US dollar and 69.1675 for the euro.

The corresponding rates were 64.6364 and 69.3355 on yesterday. According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 82.7014 and 59.03 per 100 yens, respectively, based on reference rates for the dollar and cross-

RBI minutes hint rate hike on table: Nomura

The minutes of the RBI's April 6 policy meeting suggest that the next move of the Central bank will likely be a hike in key policy rates, says a report. According to the Japanese financial services major Nomura, all members expressed concern about stickiness in core inflation and believed that the disinflationary effect of demonetisation will be transient.

The minutes of the MPC m

Tightening the screws - Kotak Sec

Tightening the screws.

The RBI announced (1) additional disclosure requirements for banks that fail to adhere to prudential norms, thus putting the onus on banks to tighten their NPL recognition and provisioning norms and (2) requirement for boards of Indian banks to proactively assess risks across sectors and make provisions above the minimum regulato

21/04/2017 12:31:34 PM | Posted in Special Event Reports read full news
RBI working on mechanism to deal with bad loans: Mundra

RBI Deputy Governor S S Mundra has said that the RBI is working on a mechanism in consultation with the government to deal with the problem of mounting bad loans in the banking sector. Commenting on the issue, RBI Deputy Governor S S Mundra told the media, "It is difficult to put a time... it could be very near.

My sense says there is so much of seriousness and engagement and so

Revised PCA rules to impact NPA laden PSBs: Fitch Ratings

A report has said that RBI's updated `prompt corrective action' (PCA) rules can potentially impact more than half of the NPA-laden state-run banks. Commenting on the issue, a Fitch Official told the media, "More than half of state-owned banks would breach at least one of the new thresholds, mainly owing to high NPLs, based on their latest financial reports."

“T

RBI monetary policy panel warns of upside risks to inflation

Citing upside risks to inflation from price pressures as the main reason for keeping its key interest rate unchanged earlier this month, the RBI's monetary policy committee (MPC) said there is room for banks to further cut interest rates, minutes of the MPC meeting on April 5-6, released on Thursday, showed.

At its first bi-monthly policy review of the 2017-18 fiscal, the RBI pref

RBI inks MoU with Bank of Guyana for info exchange

The Reserve Bank of India has signed a Memorandum of Understanding (MoU) on “Supervisory Cooperation and Exchange of Supervisory Information” with Bank of Guyana. The MoU was signed by Dr Gobind N. Ganga, Governor on behalf of Bank of Guyana and Dr Urjit R. Patel, Governor on behalf of Reserve Bank of India.

The Reserve Bank has entered into Memorandum of Understanding, Le