Topic: Reserve Bank of India [74 items]

RBI calls for fresh applicants to grant depositor awareness funds

The Reserve Bank of India (RBI) has decided to call for fresh applications ‘on tap’ for grant of financial assistance from the Depositor Education and Awareness Fund (DEAF). The RBI has unveiled guidelines on the criteria for registering institutions, organisations and associations in this regard. Registered entities may apply for financial assistance from the Depositor ..

RBI increases banks’ loan exposure limit to single NBFC

The Reserve Bank of India (RBI) has increased loan exposure limit of banks to a single NBFC. This is expected to help increase credit supply to the crisis-ridden shadow banking sector. Relaxation of Norms As per the Large Exposures Framework (LEF), Banks’ exposure to a single non-banking financial company (NBFC) was restricted to 15% of their available ..

What could be implications of RBI’s mandate to link lending rates to an external benchmark?

The Reserve Bank of India, in a recent announcement, has mandated the banks to link their lending rates for loans to an external benchmark. This has made it mandatory for the banks to pass on the benefits of rate cuts on the loans to the banks immediately. Significance of the RBI’s Announcement This is significant ..

RBI’s Surplus Transfer

The Reserve Bank of India has transferred a surplus of Rs. 1.76 lakh crores to the Indian Government. This payment, which is equal to 1.25% of the Indian GDP (in nominal rates for 2018-19) aims to provide some breathing space for the Indian government and allow it to make a higher capital expenditure on infrastructure ..

RBI Surplus Transfer to Government

The Reserve Bank of India (RBI) has decided to transfer Rs 1.76 lakh crore to the Central government from its own reserves. RBI Reserves The following three funds of RBI constitute the Reserves. They are: Currency and Gold Revaluation Account (CGRA), Contingency Fund (CF), Asset Development Fund (ADF). The CGRA is the largest and makes up ..

Bimal Jalan Committee Report on Economic Capital Framework

The Reserve Bank of India (RBI) had constituted an Expert Committee to Review the Extant Economic Capital Framework of the Reserve Bank of India. The committee was chaired by Dr Bimal Jalan. The committee has submitted its report. Recommendations of the Committee  RBI’s economic capital The Committee called for a clearer distinction between the two ..

Housing Finance Companies to be treated as NBFCs

The Reserve Bank of India (RBI) has issued a notification stating that housing finance companies (HFCs) will be treated as one of the categories of Non-Banking Financial Companies (NBFCs) for regulatory purposes and it will come under its direct oversight. Finance Act of 2019 The Finance Act, 2019 has amended the National Housing Bank Act, ..

RBI liberalises norms for the Gold Monetisation Scheme

The Reserve Bank of India (RBI) has liberalised the norms for Gold Monetisation Scheme and has directed all lenders to promote and publicise the Gold Monetisation Scheme (GMS) from their branches. This underscores the intent of the RBI to make the Scheme a success. Changes brought in by the RBI The changes brought in by ..