Page 65 - Latest Updates on Reserve Bank of India
Bank Investment Company may be approved in upcoming Budget, finally
A key question is how the BIC is to be funded. To start with, it may have to be a wholly-owned government entity
 "Bank Investment Company may be approved in upcoming Budget, finally")
Not recap alone
Budget could be a good starting point for deeper banking reforms
 "Not recap alone")
Banks weigh on shares after Reserve Bank warns of bad loans may double
The blue-chip NSE Nifty 50 index slipped 0.1% to 14,473 and the benchmark S&P BSE Sensex eased 0.25% to 49,143.75
 "Banks weigh on shares after Reserve Bank warns of bad loans may double")
Banks' gross NPAs may rise to 13.5% by Sept: Financial stability report
Banks will have to brace for a rollback of regulatory forbearance that was announced in the wake of Covid-19, and enhance their capital positions, the RBI said
RBI raises concerns over increase in assets of money market mutual funds
The RBI said MFs showed a marked preference for long-term debt while also holding equity shares.
 "RBI raises concerns over increase in assets of money market mutual funds")
RBI's red flag
Recognition of NPAs in PSBs must be swift
 "RBI's red flag")
Successful resolution of Dewan Housing Finance Corp critical for banking
Reports suggest a minimum upside of 35 per cent from the bid process of the lender
 "Successful resolution of Dewan Housing Finance Corp critical for banking")
As inflation slows, RBI resumes monetary easing, defends policy framework
The price moderation couldn't come at a better time for central bank Governor Shaktikanta Das, with the inflation targeting mechanism that's been in place since 2016 coming up for review this year
 "As inflation slows, RBI resumes monetary easing, defends policy framework")
RBI to spark money market recovery by reverse repo operation worth Rs 2 trn
The Reserve Bank of India will aim to drain 2 trillion rupees ($27.3 billion) of banking funds via a 14-day reverse repo operation on Jan. 15
NPA estimates: Street's optimism at odds with the RBI's pessimism
Regulator's projections higher by 250-350 bps, analysts may have jumped gun on faster recovery
 "NPA estimates: Street's optimism at odds with the RBI's pessimism")
NPA classification period likely to get 30-day extension as bad loans mount
Move to increase 90-day window to 120 days to give more time to borrowers to service loans
RBI raises concerns over zero-coupon bond for PSB recapitalisation
RBI has expressed some concerns over zero-coupon bonds for the recapitalisation of public sector banks (PSBs) and discussion is on between the central bank and Finance Ministry to find a solution
RBI indicates slow departure from ultra-loose liquidity policy
RBI to restore liquidity operations timing to normal hours in a phased manner, to start with variable rate reverse repo window from Jan 15
 "RBI indicates slow departure from ultra-loose liquidity policy")
Explained: How RBI's positive pay system safeguards cheque transactions
While it will make payments via cheques safer, it will also make the process a tad cumbersome, especially for people who issue high-value cheques frequently but are not tech savvy
 "Explained: How RBI's positive pay system safeguards cheque transactions")
BofA, CLSA think Axis, IndusInd Bank are ripe for re-rating; here's why
Analysts at BofA Securities have upgraded Axis Bank, IndusInd Bank, and State Bank of India (SBI) on a "surprisingly" resilient asset quality outlook, and reasonable valuations
 "BofA, CLSA think Axis, IndusInd Bank are ripe for re-rating; here's why")
India's retail inflation in Dec likely fell to within RBI target: Report
India's retail inflation likely fell sharply in December, landing within the Reserve Bank of India's target range, due to a significant drop in vegetable and food prices, a report said
 "India's retail inflation in Dec likely fell to within RBI target: Report")
RBI to conduct this year's 2nd Operation Twist on January 14
The decision was taken after a review of current liquidity and financial conditions
 "RBI to conduct this year's 2nd Operation Twist on January 14")
Flexible inflation targeting: Fix the underlying first - it is broken
The RBI must push the government to put the periodical rebasing of the CPI into the inflation targeting agreement
Currency in circulation expands 22% in 2020 amid Covid-19 pandemic
Data released by the Reserve Bank of India showed that in calendar year 2020, the currency in circulation growth was way higher than 2019's 11.8 per cent growth rate
 "Currency in circulation expands 22% in 2020 amid Covid-19 pandemic")
Reserve Bank forms academic advisory council for supervisory college
The College of Supervisors has been operational in a limited way since May last year, but it is now being fully operationalised
 "Reserve Bank forms academic advisory council for supervisory college")
