Reserve Bank has notified 49% foreign direct investment (FDI) under automatic route in insurance sector. “The extant FDI policy for insurance sector has since been reviewed by the Government of India and accordingly it has been decided to enhance the limit of foreign investment in insurance sector from 26 to 49% under the automatic route … Read More →
Your loans may get cheaper with banks implementing the new lending rate structure called marginal cost based lending rate (MCLR). The State Bank of India (SBI) on Thursday became the first bank to announce its MCLR. All banks will have to price their loans on MCLR from April 1. HDFC Bank also followed suit by … Read More →
The Reserve Bank of India (RBI) on Wednesday relaxed overseas borrowings norms to help companies raise funds for infrastructure projects in the country. The central bank said it has reviewed the extant External Commercial Borrowings (ECB) guidelines in consultation with the government after “taking into account prevailing external funding sources, particularly for long-term lending and … Read More →
Frauds – Future approach towards monitoring of frauds in NBFCs Please refer to circulars DNBS.PD.CC.No.127/ 03.10.42/2008-09 dated August 14, 2008, DNBS.PD.CC.No.256/03.10.042/2011-12 dated March 02, 2012 and DNBS.PD.CC.No.314/03.10.042/2012-13 dated December 13, 2012 on the captioned subject. It has been decided to revise the threshold for reporting of frauds and submission of quarterly progress reports on frauds … Read More →
NBFC “Factors (Reserve Bank) Directions, 2012” Review The Reserve Bank of India had reviewed the guidelines on provision of factoring services by banks and specified certain conditions under which banks can departmentally undertake factoring activities. To ensure against regulatory gaps/ arbitrage if any, arising from differential regulations as between NBFC-Factors and banks, the following clarifications/ … Read More →
The Reserve Bank of India (RBI) has raised the limits on foreign ownership of Indian government and state bonds by an aggregate of Rs 27,500 crore which could come into force in April and July, a move that could ease pressure on bond yields. The limit on the central government goes up by Rs 20,500 … Read More →
Amid rising concern over default by large borrowers like liquor baron Vijay Mallya, Prime Minister Narendra Modi stressed that the government as well as RBI is taking “tough action” to recover loans from corporate defaulters. “The only segment showing an increase in (corporate rating) downgrades is highly leveraged large firms. The government and Reserve Bank … Read More →
The Reserve Bank of India has rejected bankers’ demand to defer the operationalisation of MCLR, or marginal cost of funds based lending, even as many lenders said that they are not ready to adopt the system. The new system will be operational from April 1 and many banks fear that their margins will be hit … Read More →
Reserve Bank of India on Wednesday made life a bit easier for banks by softening rules on liquidity measurement and risk management. It said that banks do not need to consider retail deposits with maturity beyond a month for liquidity coverage ratio (LCR) calculation, giving more flexibility in their daily operations. The banking regulator has … Read More →
Demand for policy rate cut may be considerable, but given the central bank’s inflation target, rate cut space is scant, and the Reserve Bank is likely to cut only 25 bps in the upcoming monetary policy, a Deutsche Bank report says. According to the global financial services major, with RBI sticking to its goal of … Read More →