RBI drastically slashes Repo and other key policy rates in its advanced MPC meeting
Today (March 27, 2020), the Monetary Policy Committee (MPC) announced Seventh Bi-monthly Monetary Policy Statement, 2019-20 and slashed all the key policy rates. According to the announcement the MPC decided to advance its meeting scheduled for 31st March, 1st and 3rd April 2020 and met on 24th, 26th, and 27th March. As per the announcement…
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COVID 19: How does lockdown impact banking services in India?
In light of the spreading disease – COVID-19 – and government orders, banks across the country are working at reduced capacities, providing only essential services. Only essential basic services allowed: Effective from Monday, March 23, 2020, only basic essential services like cash deposit and withdrawal, cheque clearances, remittances,, and government transactions are undertaken by the…
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Lending to NBFCs for on-lending to be classified as Priority sector up to a cap
Today (Monday, March 23, 2020), RBI advised commercial banks that their loans to registered NBFCs (other than MFIs) for on-lending to be eligible for classification as priority sector is extended for FY 2020-21. The circular further said that existing loans disbursed under the on-lending model will continue to be classified under the Priority Sector till…
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Hereafter participants can settle the ACU transactions in ACU Dollar or ACU Euro or in ACU Japanese Yen
In the settlement system under the Asian Clearing Union (ACU) Mechanism, all instruments of payments are required to be denominated in Asian Monetary Unit. The Asian Monetary Unit is the common unit of account of ACU and is equivalent in value to one U.S.Dollar. Hitherto, the Asian Monetary Unit was denominated only as ACU dollar.[…
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RBI invites the public to use digital payment options to avoid the spread of coronavirus pandemic
RBI tells the public to use non-cash digital payment options (like NEFT, IMPS, UPI and BBPS) which are available round the clock to facilitate fund transfers, purchase of goods/services, payment of bills, etc. The above announcement of the Central Bank came in the light of the fallout of the Corona virus pandemic in India. The…
Single borrower/ group exposure limit and priority sector lending target of banks explained
Update: The Reserve Bank of India (RBI) on Friday (May 22, 2020) raised the group exposure limit of banks to 30% from 25% for a temporary period till 30 June 2021. The limit will be restored to 25% after the deadline unless the RBI decides otherwise. As a prudential measure, aimed at better risk management…
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