RBI to inject Rs 37,500 crore through OMO in February

The Reserve Bank of India on Tuesday said that it will inject Rs 37,500 crore into the system through purchase of government securities in February to increase liquidity. The RBI said it has been monitoring the evolving liquidity conditions and durable liquidity requirements of the system. In a release issued on Tuesday from Mumbai RBI stated that it has decided to conduct purchase of government securities under Open Market Operations (OMOs) for an aggregate amount of Rs 375 billion in the month...

RBI-industry meet: India Inc pitches for rate cut to prop up growth

RBI announces OMO purchase of government securities on Jan 17

Reserve Bank will inject 10,000 crore rupees into the system through the purchase of government securities tomorrow to increase liquidity. The central bank said in a statement that the purchase will be made through open market operations (OMOs). The statement said the eligible participants should submit their offers in electronic format on the RBI Core Banking Solution (E-Kuber) system. The result of the auction will be announced tomorrow itself and payment to successful participants will be mad...

RBI forms committee to boost digital payments

RBI offers relief to MSMEs; allows restructuring of debt up to Rs 25 crore

Reserve Bank has allowed a one-time restructuring of existing debt of up to 25 crore rupees for the companies which have defaulted on payment but the loans given to them have continued to be classified as standard assets. The decision will help the micro, small and medium enterprises (MSMEs) which are facing cash crunch in the wake of demonetisation and GST implementation.  The central bank in a statement said that to facilitate a meaningful restructuring of MSME accounts that have become stress...

RBI launches survey to capture retail payment habits in 6 cities

The Reserve Bank of India (RBI) will capture payment habits of individuals in six cities, including four metropolitan towns. For the purpose, the central bank has launched a 'Survey on Retail Payment Habits of Individuals (SRPHi)'. According to RBI release, the survey will cover a sample of 6,000 individuals from various socio-economic backgrounds across six cities including Mumbai, Delhi, Kolkata, Chennai, Bengaluru and Guwahati. The survey seeks qualitative responses from ind...

RBI's institutional capabilities very strong, will do whatever required for economy: Rajiv Kumar

A day after Urjit Patel resigned as RBI Governor, Niti Aayog Vice Chairman Rajiv Kumar said the central bank's institutional capabilities are very strong and it will do whatever is required for the markets and economy. Kumar further said although Patel has done an amazing work in the last two years as RBI Governor, the functioning of the central bank is not dependent on any particular individual. He said that RBI itself is a professional institution, and the business will continue as us...

RBI proposes new method to benchmark floating rate of loans for MSMEs

In a bid to ensure greater transparency, Reserve Bank has proposed that floating interest rates on personal, home, auto and MSMEs loans be linked to external benchmarks like repo rate or treasury yields. In a statement issued from Mumbai yesterday, RBI said that the final guidelines to link the interest rate to external benchmarks will be issued by the end of this month.  Currently, banks follow system of internal benchmarks, including Prime Lending Rate, Benchmark Prime Lending Rate, Base rate ...

Government welcomes the RBI's assessment for growth and inflation

RBI Deputy Governor says that measures taken have eased liquidity for Non-Banking Financial Companies, NBFCs

RBI Deputy Governor Viral Acharya today said that measures taken over the last two months have eased liquidity for Non-Banking Financial Companies, NBFCs. Speaking to reporters in Mumbai, Mr Acharya said RBI is not required to extend help to the crisis-hit sector as a lender of last resort.  He said the sound health of the economy, where the credit growth is comfortably above the nominal GDP growth, make the RBI confident that such support will not be required. Mr Acharya said the RBI has been w...