MPC maintains repo rate on hold and makes several other important announcements

In the second bi-monthly monetary policy statement announced on Thursday (dated 06.08.2020), MPC decided to keep policy REPO rate under the liquidity adjustment facility (LAF) unchanged at 4.25 per cent. The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within…

Important measures announced in Statement on Developmental and Regulatory Measures dated August 6

In the second bi-monthly monetary policy statement announced on Thursday (dated 06.08.2020), The RBI Governor said that while he is outlining the following main measures, the Statement on Developmental and Regulatory Measures which addresses them in greater detail. 1. Additional Special Liquidity Facility (ASLF) Governor announced additional special liquidity facility of ₹10,000 crore will be…

GNPA of Scheduled Commercial Banks may drastically increase by March 2021: RBI report

Today (July 24), in its 21st issue of the Financial Stability Report (FSR), the Reserve Bank said that their assessment made by Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability reflects a combination of fiscal, monetary and regulatory interventions on an unprecedented scale has ensured normal functioning of financial…

RBI directs banks, NBFCs and digital lending platforms to adhere Fair Practices Code and Outsourcing Guidelines

While issuing guidelines, on digital lending platforms on Wednesday (June 24, 2020) the Reserve Bank of India directed banks, NBFCs and digital lending platforms to disclose full information upfront on their websites to customers. The direction comes against the backdrop of several complaints relating to exorbitant interest rates and harsh recovery measures, among others, against…

RBI proposes a few changes for regulatory framework applicable to HFCs

Reserve Bank of India today placed a draft of the changes proposed to be prescribed for HFCs. These are as follows: Classifying HFCs as systemically important (asset size of ₹500 crore & above) and non-systemically important (asset size less than ₹500 crore); Reserve Bank’s directions on Liquidity Risk framework &, LCR, securitisation, etc., for NBFCs,…

RBI proposes revision in securitization definition for Sale of Loan Exposures including Standard Assets

Reserve bank of India proposes revision in definition of securitisation and lowered the stake the originating bank or non-banking finance company has to keep in the securitised asset.  The Banking Regulator  has placed on its website two draft documents for public comments – the ‘Draft Framework for Securitisation of Standard Assets’ and ‘the Draft Comprehensive…