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Tag: Reserve Bank of India (RBI)

RBI to infuse Rs 30,000 crore to uplift liquidity

March 21, 2020
Reserve Bank Of India (RBI)
  • The Reserve Bank of India (RBI) will infuse liquidity of Rs 30,000 crore by purchasing of Government securities under Open Market Operations (OMOs) to maintain financial stability in the Indian economy.
  • RBI has took this decision to improve liquidity in order to ensure that all markets segments function normally with adequate liquidity and turnover, as certain financial market segments are facing stress due to COVID-19 outbreak.

RBI revises exposure limits for urban cooperative banks to single, group borrowers

March 16, 2020
Reserve Bank Of India (RBI)
  • On March 13, 2020, Reserve Bank of India (RBI) has revised exposure limits for urban cooperative banks (UCBs) of tier-1 capital to a single borrower to 15% and a group of borrowers to 25%.
  • The revised exposure limits shall be applicable to all types of fresh exposures received by UCBs.
  • The RBI had earlier allowed UCBs to have exposures up to 15% and 40% of their capital funds to a single borrower and a group of borrowers, respectively.

RBI Deputy Governor N.S. Vishwanathan resigns before retirement

March 6, 2020
N.S. Vishwanathan

RBI Deputy Governor N S Vishwanathan has declared his resignation due to health issues. He was first appointed as the Reserve Bank’s deputy governor for a three-year term in 2016, following which he was reappointed for one year. Vishwanathan has worked under three governors Raghuram Rajan, Urjit Patel and Shaktikanta Das.

RBI ups investment limit for FPIs in govt and corporate bonds

January 24, 2020

The Reserve Bank of India on Thursday raised the investment limit for FPIs in government and corporate bonds to bring in more foreign funds into the market. Currently, short-term investments by a foreign portfolio investors (FPI) should not exceed 20 per cent of the total investment of that FPI in either central government securities (including treasury bills) or state development loans or corporate bonds. The short-term investment limit has now been increased from 20 per cent to 30 per cent in both cases.

The central bank has also made a relaxation in the voluntary retention route (VRR) for FPI investments in debt. The investment cap through VRR has been doubled to ₹1.5 lakh crore. FPIs are also allowed to invest in exchange-traded funds that invest only in debt instruments, it added. The RBI had introduced VRR in March 2019. This helped FPIs to invest in debt markets in India.

RBI cancels certificate of authorisation of Vodafone m-pesa

January 22, 2020

The Reserve Bank of India cancelled the Certificate of Authorisation (CoA) of Vodafone m-pesa after its voluntary surrender of authorisation. Hence, the company cannot transact business of issuance and operation of Prepaid payment Instruments.

However, the customers or merchants having a valid claim on the company as a PSO, can approach the company till September 30, 2022 for settlement of their claims within three years from the date of cancellation, as stated by The Central Bank.

World Gold Outlook 2020: RBI at 6th position in buying gold abroad

January 22, 2020

“World Gold Outlook 2020” has been released by World Gold Council in which it placed Reserve Bank of India on 6th position in the largest buyer of sovereign gold abroad. RBI currently holds 625.2 tonnes of gold which is 6.6% of the country’s foreign exchange.

The other 5 countries that have bought more gold than India include China, Russia, Kazakhstan, Turkey and Poland. Higher taxes have exacerbated the local gold price consumption. The recently introduces new hallmarking reforms are expected to increase consumer trust, remove inefficiencies, promote growth and improve confidence.

RBI Ranks 6th among central banks in buying gold abroad in 2019: WGC Report

January 19, 2020

The Reserve Bank of India (RBI) was the sixth largest gold buyer abroad in the year 2019, as per the World Gold Council (WGC) report titled, “World Gold Outlook 2020”. The RBI currently holds 625.2 tonnes of gold, which is 6.6 percent of its forex reserves.

RBI bought 7.5 tonnes of gold in October 2019, to increase its foreign exchange reserves to $450 billion. The central banks of China, Russia, Kazakhstan, Turkey, Poland bought more than India in 2019 respectively.

The report is a compilation of lists that rank 28 cities around the world to purchase luxury goods and services. Out of 28 cities, Mumbai was ranked as the cheapest city for purchasing luxury goods and services, while Hong Kong was found to be the most expensive.

RBI buys three long-term securities worth Rs 10,000 cr in 3rd special OMO

January 8, 2020

In the third special open market operation in many weeks, the Reserve Bank of India (RBI) bought three long-term securities worth 10,000 crore rupees each while selling the same amount of three short-term bonds.The RBI had announced simultaneous purchase and sale of Government Securities (G-Secs) under Open Market Operations (OMOs) for 10,000 crore rupees each.

Though the RBI offered to sell four securities in the auction, it accepted bids for three bonds. In the current OMO purchase auction, the RBI offered to purchase three securities including 10-year benchmark government bond, as against just one bond in the previous two auctions. It got bids worth 64,505 crore rupees for the three bonds but choose to accept only bids of 10,000 crore rupees under the OMO purchase auction.