RBI puts into circulation Rs 50 banknotes signed by Governor Shaktikanta Das

The Reserve Bank of India has put into circulation 50 rupees denomination banknotes signed by its Governor Shaktikanta Das. The RBI in Mumbai yesterday said the design of these notes is similar in all respects to 50 banknotes in Mahatma Gandhi new series. It said that all banknotes in the denomination of 50 issued by the Reserve Bank in the past will continue to be legal tender.

RBI tweaks LCR norms to boost liquidity

Reserve Bank to inject USD 5 billion more liquidity into banking system

The Reserve Bank of India, RBI yesterday said it will inject long-term liquidity worth 5 billion US Dollars into the banking system through a dollar-rupee buy-sell swap for a tenure of three years on April 23. The RBI statement stated that the move intends to meet the durable liquidity needs of the system. It stated that the auction is meant to give RBI greater flexibility in managing banking system cash while helping absorb any potential large dollar inflows, which could make the rupee rise sha...

RBI directs banks dealing with govt business to keep their branches open today

The RBI has directed banks dealing with government business to keep their branches open today, as it is the last day of the current financial year. The Government of India has advised that all Pay and Account Offices will remain open today to facilitate government receipt and payment transactions. Accordingly, all Agency Banks are advised to keep all their branches dealing with government business open. In a separate notification, the RBI said all electronic transactions, including RTGS and NEFT...

RBI to infuse Rs 12,500 crore via OMOs

The Reserve Bank of India, RBI has said it will infuse 12,500 crore rupees into the system through open market operations (OMOs) tomorrow. The central bank said in Mumbai yesterday that based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, it will conduct the purchase of the government securities under open market operations. The purchase will happen through multi-security auction using the multiple price method.  OMOs are money market t...

RBI, Bank of Japan sign Bilateral Swap Arrangement

Reserve Bank of India and Bank of Japan have signed a Bilateral Swap Arrangement (BSA). It may be recalled that the BSA was negotiated between India and Japan during the visit of Prime Minister Narendra Modi to Tokyo in October last year.  The BSA provides for India to access 75 billion US dollars whereas the earlier BSA had provided for 50 billion dollars. The BSA was approved by the Union Cabinet in January this year. The agreement for the BSA has become effective from today. India can access ...

RBI to give Rs 28,000 cr to Centre as dividend

The Reserve Bank has announced that it will transfer an interim surplus of 28,000 crore rupees to the central government for the half-year ended 31st December 2018. In a statement, the RBI said the decision has been based on a limited audit review and after applying the extant economic capital framework. The decision follows the RBI Board meeting held in New Delhi, yesterday. Finance Minister Arun Jaitley addressed the board. Apart from RBI Governor Shaktikanta Das, all the four deputy governors...

RBI penalises banks for violating various norms

Reserve Bank has imposed monetary penalty of two million rupees each on HDFC Bank, IDBI Bank and Kotak Mahindra Bank for non-compliance of various Know Your Customer/ Anti-Money Laundering norms. In a statement issued from Mumbai yesterday, RBI informed that it has imposed monetary penalty of 1.5 Crore rupees each on Allahabad Bank, Bank of Maharashtra and Indian Overseas Bank for non-compliance of norms related to monitoring end use of funds, exchange of information, classification and reportin...

Bankers welcome 25 basis point rate cut announced by RBI

Bankers have welcomed the 25 basis point rate cut announced by the RBI in the sixth bi-monthly monetary policy review yesterday. SBI Chairman Rajnish Kumar said, the policy rightfully signals that rates may further soften going forward, with the headline inflation numbers consistently undershooting the RBI inflation mandate and inflation expectations materially down. Reserve Bank of India in its bi-monthly monetary policy reduced repo rate by 25 basis points to 6.25 per cent yesterday. RBI&a...

RBI raises collateral-free farm loan limit to Rs 1.6 lakh