Page 85 - Latest Updates on Reserve Bank of India
RBI announces OMO for sale, purchase of govt securities of Rs 10,000 cr
RBI will conduct simultaneous purchase and sale of government securities under the Open Market Operation (OMO) for Rs 10,000 crore each on September 10, the central bank said on Monday
 "RBI announces OMO for sale, purchase of govt securities of Rs 10,000 cr")
Kamath committee picks 26 sectors for loan restructuring, says RBI
Central bank allowed lenders to grant loan moratorium for three months on EMIs falling due between March 1 and May 31; it later extended the scheme until August 31
 "Kamath committee picks 26 sectors for loan restructuring, says RBI")
India's GDP contraction should alarm everyone: Ex RBI Guv Raghuram Rajan
A week after India reported a significant contraction in its GDP during the April-June quarter of 2020-21 fiscal, Raghuram Rajan has said that the negative GDP growth numbers should alarm everyone
 "India's GDP contraction should alarm everyone: Ex RBI Guv Raghuram Rajan")
Experts advise caution on stagflation fears amid 24% GDP contraction
Say Centre, RBI should ensure their policies don't stoke inflation
 "Experts advise caution on stagflation fears amid 24% GDP contraction")
Increased risks for banks
Changes in priority sector lending should be revisited
 "Increased risks for banks")
Life after moratorium, for banks and borrowers
There are enough filters in the Covid-19 loan restructuring scheme to prevent misuse, but is it a tool to delay the growth in banks' bad loans? We will know after two years
 "Life after moratorium, for banks and borrowers")
Telecom, automobile companies lead earning downgrades, shows data
The financial sector has seen earnings downgrade of nearly 30 per cent amid uncertainty over NPAs build-up
 "Telecom, automobile companies lead earning downgrades, shows data")
RBI revises LFAR norms for banks to improve audit efficacy, risk management
The revised LFAR format will be put into operation for the period covering 2020-21 and onwards, the central bank said
 "RBI revises LFAR norms for banks to improve audit efficacy, risk management")
Kamath panel to submit recommendations on debt restructuring today
The panel was formed to advise the RBI on the debt restructuring of corporate borrowers facing stress due to the pandemic.
 "Kamath panel to submit recommendations on debt restructuring today")
A gloom-and-doom scenario: Why Bond market loves India's tax mess
The Reserve Bank of India has told banks that if they buy another 3 trillion rupees ($41 billion) of government bonds, they can park them in a bin that doesn't have to be marked to market
 "A gloom-and-doom scenario: Why Bond market loves India's tax mess")
New PSL norms may not be an immediate game changer for banking sector
Given the systemic risk aversion, credit growth may take a few quarters to revive on the back of these norms
 "New PSL norms may not be an immediate game changer for banking sector")
Start-up loans of up to Rs 50 cr under priority sector as RBI revises norms
Advances to weaker section now 12% of credit for scheduled banks and SFBs, rule doesn't apply to foreign lenders with under 20 branches. RRBs already have to lend 15% to weaker sector
 "Start-up loans of up to Rs 50 cr under priority sector as RBI revises norms")
Loans up to Rs 50 cr for start-ups get priority sector tag in new RBI norms
Lending limit for health infrastructure doubled to Rs 10 crore, says central bank.
Banks turn to digital tools to rework debt payment structures during Covid
According to India Ratings estimates, retail loans - home, personal, auto, and credit cards - amounting to Rs 30,000 crore may come up for recast
 "Banks turn to digital tools to rework debt payment structures during Covid")
Moratorium on loan repayment shouldn't be at the cost of economic recovery
Hopefully, the court will recognise that the legal system should not undermine the financial system
 "Moratorium on loan repayment shouldn't be at the cost of economic recovery")
Firms raising 3-month money at much lower than RBI's overnight rates
Even as FCI is raising Rs 75,000 cr for three months at 4.69%, companies are regularly tapping bond market for the same tenure at as low as 3.2%, way lower than RBI's repo rate of 4%
 "Firms raising 3-month money at much lower than RBI's overnight rates")
Moratorium case: SC directive to benefit small, mid-sized accounts
Bankers said special mention accounts (SMA)- overdue period between 31 to 60 days (SMA1) and overdue period between 61 to 90 days (SMA2) would have become NPAs in August and September 2020
 "Moratorium case: SC directive to benefit small, mid-sized accounts")
Aditya Birla Idea Payments Bank ceased to be banking company: RBI
In November last year, the RBI had said that Aditya Birla Idea Payments Bank was headed for liquidation after the company's application for voluntary winding up
 "Aditya Birla Idea Payments Bank ceased to be banking company: RBI")
SC protects loans not declared NPAs till Aug 31 from such action for now
The Supreme Court Bench said if a loan account had not been declared bad as of the end of August, it should not be classified as NPA till the moratorium case was disposed of
 "SC protects loans not declared NPAs till Aug 31 from such action for now")
Out of the woods? Analysts turn bullish on NBFCs on improved liquidity
Recent steps by the government and the RBI to keep systemic liquidity and rates benign along with direct liquidity to NBFCs facing constraints, in the wake of Covid-19, have helped, analysts say
 "Out of the woods? Analysts turn bullish on NBFCs on improved liquidity")
