RBI RETAIL
PSBs on the margins in credit cards, but NPAs ahead by a wide margin
Public sector banks in India are navigating the credit card market, facing challenges with high NPAs. The focus on tier-II and tier-III cities is driving credit card sales, with State Bank of India and Bank of Baroda leading in card spending through subsidiaries. Specialized skills and appealing features are crucial for success, particularly in attracting younger consumers with modern products and reward points.
RBI, ASEAN countries to create instant cross-border retail payments platform
The Reserve Bank of India and ASEAN nations are collaborating on "Project Nexus," aimed at establishing a platform for instant cross-border retail payments by linking fast payment systems. India joins Malaysia, Philippines, Singapore, and Thailand as founding members, with plans to expand globally by 2026, enhancing efficiency and reducing costs in international transactions.
CAMS aims to be both payment aggregator & gateway, expand into education: MD
CAMS looking to now expand into education as one potential, extra niche that could scale up the business. They are moving forward to be both a payment aggregator and payment gateway and there will be some build-out of opportunity in the education space as well, says MD & CEO Anuj Kumar.
Retail loans moderate for the 10th straight month
The Reserve Bank of India reported that bank lending to the retail sector moderated for the tenth consecutive month in May, reaching 17.8% from 19.1% a year ago. Corporate loans grew faster at 8.9% compared to 6% in May 2023. Non-food bank credit saw a 16.2% growth in May 2024 compared to 15.5% a year ago.
RBI new FD rule: 10 banks that have revised fixed deposit terms after RBI rule change
The RBI announced a proposal to revise the definition of bulk fixed deposits. As per the proposal, banks' fixed deposits of Rs 3 crore and above will be considered bulk deposits. Earlier, a bank FD of Rs 2 crore and above was considered as a bulk FD.
RBI warns of risks from rapid rise in derivative trading volumes
A rapid rise in derivative trading volumes in India could pose several challenges, India's central bank said in its Financial Stability Report released on Thursday.
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Retail investors play with a time bomb but RBI and Sebi are watching
Futures and options (F&O) trading involves contracts that derive their value from an underlying asset, such as stocks and commodities. Futures contracts obligate the buyer and seller to transact at a predetermined future date and price, while options give the holder the right, but not the obligation, to buy or sell the asset at a set price within a specific period.
RBI monitoring F&O frenzy in India along with Sebi: Shaktikanta Das
The increased involvement of retail traders, many of whom are experiencing losses in the futures and options (F&O) market, has drawn regulatory scrutiny. A joint early warning group consisting of the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) is closely monitoring this situation.
India's disinflation process proving to be arduous thanks to stubborn food inflation: RBI Guv Das
RBI Governor Shaktikanta Das stated that bringing India's retail inflation to the 4% target is challenging due to persistent food price inflation, driven by weather-related supply issues. Speaking at an event, he highlighted that despite moderating core inflation, food inflation remains high, averaging 8% over the past seven months.
India’s retail inflation eases to 12-month low of 4.75 per cent in May
India's retail inflation eased to 4.75% annually in May, slightly down from the 11-month low of 4.83% recorded in April, according to government data released on Wednesday. This inflation rate continues to fall within the Reserve Bank of India's (RBI) acceptable range of 2-6%
This FD amount will soon be considered as retail FD; RBI to review bulk FD limits
Bulk FD amount of bank: The new proposal has been announced by RBI in the Monetary Policy Committee announcement today. The central bank said that necessary guidelines will soon be issued.
RBI sees moderation in unsecured retail loans, tells banks to maintain prudent asset-liability balance
The Reserve Bank of India (RBI) noted a moderation in unsecured retail loans and advances following concerns raised in November 2023. Governor Shaktikanta Das highlighted that growth in personal loans and NBFC funding reliance has slowed. The RBI continues to monitor these trends and has urged financial institutions to maintain risk within acceptable limits.
RBI rate-setting panel starts deliberations on monetary policy, decision on Friday
The Reserve Bank of India's monetary policy committee (MPC) began a three-day meeting to determine the next monetary policy, with Governor Shaktikanta Das expected to announce the decisions on Friday. Analysts anticipate the continuation of the current interest rate, given persistent inflation concerns and improving economic growth.
Risk weighting slows unsecured loan growth
The growth of unsecured credit in India, including personal loans and credit card outstanding, slowed to 18% in April from 23% in November 2023. The Reserve Bank of India's risk weighting on such exposures aims to reduce delinquencies in the banking system.
Now, a 'Bank Clinic' to guide you on complaints
The Bank Clinic is an initiative by the All India Bank Employees' Association (AIBEA) to help customers address their grievances amid rapid expansion in technology and a series of Reserve Bank of India (RBI) guidelines on retail banking. A customer can fill out the details of her/his complaint, create a ticket, and receive a reply in five working days on the remedies available and information on what the RBI guidelines prescribe on that matter.
Credit growth slows in April across major sectors
Bank credit growth is expected to moderate 200 basis points (one bps is 0.01 percent) to 14% this fiscal after an estimated robust growth of 16% in fiscal 2024, according to ratings firm Crisil. Strong economic activity and retail credit demand drove loan growth last fiscal. This fiscal growth will be tempered by a high base effect, a revision in risk weights and a somewhat lower gross domestic product growth, it said.
CBDC usage soars 39-fold among retail users, plunges in wholesale
In the wholesale segment, the outstanding amount stood at ₹8 lakh in March 2024, from ₹10.6 crore last year, and in the retail segment, the amount climbed to ₹234 crore in March 2024, from ₹6 crore last year. India's CBDC, the Digital Rupee (e₹), is a digital form of its official currency, introduced after the FY23 budget.
RBI Retail Direct mobile app launched
Reserve Bank of India has launched three major initiatives: the PRAVAAH portal, the Retail Direct Mobile App, and a FinTech Repository. These three initiatives were announced in April 2023, April 2024, and December 2023 as part of RBI’s bi-monthly Statement on Development and Regulatory Policies.
RBI Guv Shaktikanta Das launches PRAVAAH, Retail Direct mobile app and FinTech Repository
The Reserve Bank of India (RBI) has launched three major initiatives to enhance regulatory processes, facilitate retail investment, and provide comprehensive data on the fintech sector. The PRAVAAH portal is a secure web-based platform for individuals and entities seeking authorizations, licenses, or approvals from the RBI. The RBI Retail Direct mobile application simplifies transactions for retail investors, and the FinTech Repository provides data on Indian fintech firms for better regulatory understanding and policy formulation.
India's retail inflation eases marginally to 11-month low of 4.83 per cent in April
In April, India's retail inflation slightly decreased to 4.83 percent annually from 4.85 percent the previous month, as per government data released on Monday. According to a Reuters poll of 44 economists, the estimated figure was 4.80 percent.
Banks' underwriting standards at risk amid rapid consumer loan growth, Fitch says
Fitch Ratings warns of potential challenges to Indian banks' consumer loan quality due to rapid growth and "untested risks." Concerns include lower transparency in retail underwriting data and reliance on unsecured credit for margin expansion. While RBI measures aim to mitigate risks, their long-term effectiveness remains uncertain.
RBI working on off-line mode to boost retail CBDC volumes: Guv Shaktikanta Das
The Reserve Bank of India (RBI) is working to increase the acceptance of the Central Bank Digital Currency (CBDC) for retail transactions, despite the high number of transactions reaching 1 million per day. The RBI is focusing on making the digital currency transferable offline, introducing programmability features, and promoting financial inclusion. The central bank is also addressing concerns about the CBDC's potential to pose a risk to banks' business models.
Excluding the merger impact loans to services grew faster than retail in FY'24
The lending pattern of banks in 2023-24 saw a recovery in lending to large corporates post COVID-19 contraction. The RBI intervened to improve the quality of retail loans by assigning higher risk weights to unsecured lending, slowing their growth. Loans to the services sector grew faster at 20.2% compared to retail at 17.7% in FY’2023-24. The RBI increased risk weights on unsecured consumer loans and credit cards, leading to a slowdown in unsecured loans growth to 20.8% from 26.7% a year ago.
RBI sets eligibility rules for SFBs seeking universal banking licence
Both these lenders, along with Equitas, announced their intent to seek universal banking licence, which offers more regulatory flexibility in terms of doing business. Equitas is not immediately eligible to seek the licence as its net NPA ratio was higher than 1%. Eligible SFB will be required to furnish a detailed rationale as to why they want such a transition, RBI said.
Bank credit surges 16% in fiscal year, marks fastest growth in a decade
Bank credit growth hit a decade high of 16% in the fiscal year, driven by strong retail demand despite rising interest rates and supported by corporate loan demand post HDFC merger, as per RBI data.
Odisha tops inflation rates, Delhi lowest; check inflation rates for different states
Delhi registered the lowest retail inflation rate at 2.3%, followed by Uttarakhand at 3.6%, West Bengal and Maharashtra at 3.7%, and Himachal Pradesh at 4.1%. Notably, Odisha also witnessed the highest inflation rates in both rural and urban areas, with 7.3% and 6.5%, respectively, followed by Haryana.
Banks must play bigger role in rupee derivatives: RBI
"Participation of domestic banks in derivative markets remains limited with only a small set of active market-makers... Domestic banks are dealing with market-makers in global markets rather than with end clients and are yet to emerge as market makers of note globally," Das said at a conference of fixed income market participants in Barcelona.
RBI permits FPIs to invest in sovereign green bonds via IFSC
At present, foreign portfolio investors (FPIs) registered with the Securities and Exchange Board of India (Sebi) are allowed to invest in sovereign green bonds under the various routes available for FPI investment in government bonds.
How will RBI's G-Sec app simplify the process of investing in govt securities?
The RBI's G-Sec App, part of the Retail Direct Scheme, simplifies the process of investing in government securities for retail investors. The app provides a user-friendly interface for buying and selling securities, enhancing accessibility and transparency in the G-Sec market. Market participants believe that the app will lower transaction costs and attract more investors to G-Sec investments.
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