Speaking publicly for the first time on the Rs 13,600-crore fraud that broke out at Punjab National Bank, Reserve Bank of India Governor Urjit Patel today blamed "deep fissure in the landscape of banking regulatory terrain" that allowed the scam to take place.
According to global financial services major Bank of America Merrill Lynch (BofAML), risks regarding price rise are overdone and March inflation is likely at 4.2 per cent, well within RBI's 2-6 per cent mandate.
Risks like the higher minimum support prices (MSPs) for food grains promised in the budget, according to them, can push up the inflation in the next fiscal year.
According to Swiss brokerage firm UBS, the headline CPI inflation may average close to 4.7 per cent in 2018-19 (as against 3.6 per cent estimated in 2017-18).
In an interview with Moneycontrol, Rajat Verma, MD and Head of commercial banking India, HSBC, said the share of PSBs in large corporate lending will reduce over next 5 years.
There is all round criticism that the RBI should have supervised banks better
Giving the background for the penalty, the banking regulator said that the currency chest inspection of two branches of SBI revealed, inter alia, violation of the instructions issued by RBI.
This comes at a time when most banks are still hesitant on meeting the RBI’s suggestion last month to link home loans to external benchmark rates.
RBI penalised the two banks for not complying with the central bank’s norms on classification of non-performing assets (NPAs) and know your customer (KYC).
That suggests retail inflation could continue to pick up over coming months, pressuring the Reserve Bank of India (RBI) to raise interest rates despite concerns that tighter policy could weigh on economic growth.
Aditya Birla Idea Payments bank is among seven entities to get a final approval from the banking regulator. Airtel Payments Bank Ltd was the first payments bank. So far, Airtel, Paytm, India Post, and Fino Payments Banks have been launched
This means, all the new LoUs or LoCs will be issued through this centre which will be linked to its core banking solutions.
This Nirav Modi-chase last week was a déjà vu, except for different names and faces such as Vijay Mallya and Jatin Mehta. Also, barring one, rest of the defaulters hail from gems and jewellery sector
Banking sector is always buzzing. This week, the buzz was louder with Punjab National Bank revealing one of the biggest scams in the industry amounting to fraudulent transactions.
The 10-year benchmark bond yield briefly eased by 1 basis point to 7.58 percent, but came back to 7.59 percent as hopes of open market purchases of bonds stayed feeble.
The revised framework has specified norms for "early identification" of stressed assets, timelines for implementation of resolution plans, and a penalty on banks for failing to adhere to the prescribed timelines.
The RBI abolished half a dozen existing loan-restructuring mechanisms late last night, and instead provided for a strict 180-day timeline for banks to agree on a resolution plan in case of a default or else refer the account for bankruptcy.
Existing mechanisms such as CDR, SDR, S4A and the JLF stand to be withdrawn and discontinued.
The corresponding rates were 64.3686 and 78.8902, last Friday.
Economic Affairs Secretary SC Garg said the MPC expects growth to accelerate in 2018-19, and inflation to converge back towards its target level in the second half of next fiscal, starting April 1.
SBI reported Rs 23,239 crore divergences for FY19 and slippages jumped to Rs 25,000 crore. In FY19, the bank also plans to raise Rs 20,000 crore from the market
RBI has invited comments and suggestions by email or post before February 28, 2018
It’s been less than 2 years that Insolvency and Bankruptcy Code, 2016 (IBC) came into force and with number of changes it is progressing in the right direction of the NPA clean-up
The Reserve Bank of India (RBI) kept its key policy rates unchanged on Wednesday and retained its "neutral" stance in an attempt to maintain a delicate balancing act and nurture growth.
The Reserve Bank of India has cautioned citizens against a fake website which is fraudulently taking personal and confidential banking details of bank customers posing as the central bank.