In a surprise move, the Reserve Bank of India (RBI) left policy rates unchanged after the Monetary Policy Committee (MPC) raised concerns on higher inflation but continued with accommodative stance for future easing.
While there is room for rate reduction going ahead, RBI Governor Shaktikanta Das said that the cuts need to be timed well for better impact.
Meanwhile, the Securities Appellate Tribunal (SAT) asked market regulator SEBI to hear lenders’ concerns and deliver its decision on reversal of pledged shares to Karvy Stock Broking’s clients by December 12.
Explained | How Karvy went from broking to broke
While lenders are facing chances of huge write-offs due to fraudulent activities of Karvy, it also likely that they skipped a few check-boxes themselves while lending against third party shares.
Also, norms for brokers and banks laid down by their respective regulators do not seem to be on the same page.
RBI keeps rates unchanged, FY20 growth forecast cut to 5% from 6.1%
The central bank, on December 5, maintained status quo, for the first time this year, on higher inflation expectations even as economic growth is likely to weaken going ahead. All six members of the MPC voted in favour of the pause, leaving repo rate unchanged at 5.15 percent.
The repo rate was lowered by 135 basis points in five back-to-back cuts between February-October 2019.
RBI issues final norms for 'on-tap' licensing of Small Finance Banks
The RBI on December 5 released final guidelines and opened the window for applicants to approach the regulator at any point of time for 'on-tap' licensing of small finance banks (SFBs).
NEFT to be available 24x7 from December 16: RBI
The National Electronic Funds Transfer (NEFT) payment systems will be available on a 24x7 basis from December 16, 2019, the RBI said. Banks have been asked to inform and ensure seamless NEFT 24x7 facility to their customers.
Consumer durable loans jump on festive season demand
After a long spell of contraction, loans given by banks for purchase of consumer durable goods like washing machines, refrigerators and air- conditioners saw a sharp rise since the start of festive season this year.
Strong demand, fuelled by lucrative discount offers and backed by retail loan push from banks, led to a boost in consumer durable loans in months of August, September and October.
RBI tightens asset acquisition norms for ARCs; bars purchase from sponsors, lenders
The RBI has tightened norms for asset reconstruction companies (ARCs) by barring them from buying financial assets from their sponsors and lenders.
Under the new norms, ARCs cannot acquire financial assets from a bank or a financial institution which is its sponsor or lender has subscribed to the fund raised by the ARC for its operations.
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