RBI asks banks to disclose fraud cases Tightening disclosure norms, RBI has asked banks to disclose fraud cases and make provisions for them not exceeding four quarters from the date during which it has been detected. Banks, RBI in a notification said, must scrupulously adhere to the extant guidelines on classification and reporting of frauds. … Read More →
RBI is embarking on an experiment to remove much of the discretion the country’s commercial banks have to set lending rates and force them to base borrowing costs on prevailing market rates. The experiment carries risks, as India periodically suffers severe cash crunches. But the rewards should be lower costs for borrowers. The Reserve Bank … Read More →
Foreign Portfolio Investments (FPIs) will be able to invest an additional Rs 14,000 crore from on Monday in various government securities, including those of the states. The cap has been now raised to Rs 2,00,500 crore from the current Rs 1,86,500 crore. The limits would be enhanced further by another Rs 13,500 crore from July … Read More →
SBI expects RBI to address systemic liquidity issues in monetary policy Reserve Bank’s forthcoming monetary policy review should outline steps to curb the volatility in systemic liquidity, SBI Chairman Arundhati Bhattacharya said on Friday. RBI is scheduled to announce this fiscal’s first bi-monthly monetary policy on April 5. “We expect RBI to address the issues … Read More →
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 →
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 →