Shaktikanta Das News

rupee settled at 83.37 against the dollar. Investors remained on the sidelines ahead of the Reserve Bank of India’s (RBI) monetary policy decision later this week. “The RBI's policy, commencing on Tuesday with a decision due on Friday, will be closely monitored," CR Forex Advisors MD Amit Pabari said.

Bank of India (RBI) began on Wednesday, December 6. RBI Governor Shaktikanta Das will disclose the decision of the Monetary Policy Committee (MPC) around 10 am on Friday, December 8. There is widespread anticipation of rates staying as it is after the RBI MPC meeting even as inflation has eased significantly and economic growth remains strong.

rupee appreciated 2 paise to 83.35 against the US dollar in early trade on Wednesday, amid a bullish trend in domestic equities and sustained foreign fund inflows. Forex traders said investors remained on the sidelines ahead of the Reserve Bank of India's monetary policy decision later this week. At the interbank foreign exchange, the rupee opened 2 paise higher at 83.35 against the dollar as domestic benchmark indices touched new lifetime peaks. On Tuesday, the rupee settled at 83.37 against the dollar. «The RBI's policy, commencing on Tuesday with a decision due on Friday, will be closely monitored,» CR Forex Advisors MD Amit Pabari said. The Reserve Bank is likely to maintain the status quo on the short-term interest rate in its monetary policy review. RBI Governor Shaktikanta Das-headed Monetary Policy Committee (MPC) is scheduled to begin its three-day deliberations on December 6. Das would unveil the decision of the six-member MPC on December 8. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11 per cent lower at 103.93. Brent crude futures, the global oil benchmark, advanced 0.12 per cent to $77.29 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 269.23 points or 0.39 per cent higher at 69,565.25 points.

Nirmala Sitharaman said on Thursday that non-bank financial companies (NBFCs) and small finance banks should be cautious while lending. The previous day, RBI governor Shaktikanta Das said these lenders should diversify their sources of funding and not rely too much on bank loans. Mint looks at why the minister and the regulator are cautioning NBFCs.

Bank of India (RBI) has tightened norms for consumer credit as it asked banks and NBFCs to assign a higher risk weight for unsecured personal loans. Fintech lenders may face the brunt of RBI's tightening of capital norms for unsecured lending.

Nirmala Sitharaman on Thursday said non-banking financial companies (NBFCs) and small finance banks need to heed the central bank and exercise due caution while lending, without “going too far too soon”. Speaking at the Digital Acceleration & Transformation Expo in the capital, organised by Trescon, the minister said: «Enthusiasm is good but sometimes it becomes a bit too far for people to digest. So as a measure of caution the RBI (Reserve Bank of India) has also alerted small finance banks, NBFCs to be careful that they don't go too far too soon and face any downside risks later.» Earlier this month, the RBI tightened the norms for unsecured consumer loans, as it directed banks and shadow banks to assign a higher risk weight to such credit.

Shaktikanta Das on Wednesday said the rupee has witnessed "low volatility" and orderly movements as compared to its peers. Speaking at the annual FIBAC event, Das said household inflation expectations are becoming more anchored, but added that headline inflation is vulnerable to recurring and overlapping food price shocks. It can be noted that the rupee closed at an all-time low of 83.35 against the dollar on Monday, but gained some lost ground in Tuesday's trade.

₹12.3 trillion as of September. Crisil noted that strategic co-lending and debt capital funding would be crucial for NBFCs to secure stable funding. Meanwhile, RBI governor Shaktikanta Das said at an event on Wednesday that NBFCs should try to broadbase their funding sources and reduce overdependence on banks.

Reserve Bank of India (RBI) is considering a comprehensive review of its penalty system, Business Standard reported citing a senior regulatory source. The potential changes might involve increasing the penalty amounts, this could be in accordance with the size of the regulated entities, their importance to the system, and the number of repeat offences, it added.

economy goal. There is a “wide consensus" supported by economic forecasts that real gross domestic product (GDP) growth in the second quarter will turn out to be better than the Reserve Bank of India’s (RBI) projection of 6.5 percent, an article in the central bank’s November bulletin said on November 16. India’s economy expanded 7.8 percent in the first three months of the financial year and RBI governor Shaktikanta Das recently expressed confidence in the domestic economy.

India’s central bank is clamping down on risky consumer lending as the economy booms, a move that’s likely to hurt banks but only have a limited impact on growth. The Reserve Bank of India on Thursday told lenders to set aside more capital for unsecured consumer loans, such as credit cards and small, personal loans. That type of borrowing had surged more than 25% in the past year, according to Macquarie Group, far higher than growth in consumer incomes, potentially creating a debt trap for borrowers and giving rise to defaults. The RBI’s measures prompted a selloff in bank stocks on Friday, with analysts saying a rise in borrowing costs will hit profits.

Reserve Bank of India on Thursday decided to increase the risk-weights on unsecured credit and bank loans to non-banking financial corporations (NBFCs). The increased risk-weight is applicable to outstanding as well as fresh loans, the central bank said. While credit growth for the overall banking system has remained stable and healthy, certain components of personal loans are, however, recording very high growth, RBI Governor Shaktikanta Das had said in his previous policy statement. Das further added that the central bank was closely monitoring for any signs of incipient stress. Thursday’s decision was, therefore, somewhat on expected lines. However, Dalal Street wasn’t very happy with the same and a kneejerk reaction was seen among NBFC stocks, with Bajaj Finance, One97 Communications, and SBI Cards and Payment Services shedding more than 2-5%. Let’s understand a little more about what the implications of RBI’s move could be on the business. What’s changed? The risk-weights on banks’ unsecured personal loans and consumer durable loans have been increased to 125% from 100%, and that on credit cards have been increased to 150% from 125%. Further, the risk-weights on NBFCs’ unsecured personal and consumer durables loans, and credit cards have been increased to 125% from 100%. The risk-weights on loans by banks to NBFCs has been hiked by 25 percentage points, if the risk-weight is below 100%.

MUMBAI : After several months spent trying to sensitize lenders against the ongoing credit binge, the Reserve Bank of India (RBI) on Thursday raised risk weights on consumption loans, credit card exposures and loans to non-bank financiers by 25 percentage points each, hoping higher consumption of capital will slow such rapid growth. Bankers and financial sector experts said this would mean borrowers of such loans would have to shell out more as lenders try to compensate for the increase in capital requirement.

MUMBAI : There is a “wide consensus" supported by economic forecasts that real gross domestic product (GDP) growth in the second quarter will turn out to be better than the Reserve Bank of India’s (RBI) projection of 6.5%, an article in the central bank’s November bulletin said on Thursday. The estimates for the second quarter (Q2) of FY24 are set to be released at the end of this month.

Reserve Bank of India (RBI) on Thursday tightened norms for personal loans and credit cards in the form of higher capital requirements. The new norms will make personal loans and credit cards costlier and may curb growth in these categories. The central bank has raised the risk weights for lenders and non-bank financial companies (NBFCs), or the capital that banks need to set aside for every loan, by 25 percentage points to 125% on retail loans, the RBI said in a statement.

NEW DELHI (Reuters) — Food inflation in India remains above New Delhi's «comfort» level despite retail inflation easing in October, a government official said on Wednesday.

By Nikunj Ohri, Shivangi Acharya and Sarita Chaganti Singh

Also Read: Rupee depreciates 6 paise to settle at an all-time low of 83.34 against the US dollar This week’s edition rose by $4.7 billion, adding to the $2.6 billion rise in the prior week ending October 27. Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in its reserves Also Read: Gold ETFs shine on Dhanteras! Net inflow surges to ₹841 crore in October over safe haven appeal RBI Governor, Shaktikanta Das, on Thursday, said that India’s current account deficit is “eminently manageable".

banks to review their small loan portfolios and submit a report detailing the situation. Banks said the number of these loans may be large but the ticket sizes are not high.

Reserve Bank of India (RBI) Governor Shaktikanta Das has once again warned about the threats that cryptocurrencies pose to global financial stability, particularly for emerging market economies.

Bank of India (RBI) governor Shaktikanta Das draw attention to some of these contemporary dilemmas confronting central banks. The RBI governor, in copybook central banker mode, has duly pointed to a systemic risk routinely discounted by large commercial banks: high levels of staff attrition.