RBI cuts number of free cross-bank ATM transactions to 3 per month

RBI cuts number of free cross-bank ATM transactions to 3 per monthMumbai : Frequent withdrawal of money from ATMs will become expensive from November, with the RBI imposing a limit of 3 transactions per month from ATMs of other banks and 5 from the same bank in six metropolitan cities.

A customer will be required to pay a fee of up to Rs 20 for using Automated Teller Machines (ATMs) beyond the permitted numbers of transactions in Delhi, Mumbai, Chennai, Bangalore, Kolkata and Hyderabad.

RBI net buys $597 mn in spot forex market for 3rd month in June

RBI-buys-dollarMumbai: The Reserve Bank became net purchaser of dollars for the third consecutive month in June this fiscal as it bought USD 597 million from the spot market.

During the month, the apex bank bought USD 3.332 billion from the market, while it sold USD 2.735 billion, the RBI monthly data showed.

However, the amount of dollars purchased by the central bank in June dropped almost 50 percent as against in April and May.

In May, RBI had bought USD 7.981 billion from the market and sold USD 6.195 billion, while in April it purchased USD 7.85 billion and sold USD 1.980 billion.

RBI to transfer Rs 52,679 cr surplus profit to govt

RBI to transfer Rs 52,679 cr surplus profit to govtMumbai: The Reserve Bank of India will transfer to the Centre its surplus profit of Rs 52,679 crore, about 60 percent more than the amount given last year.

"The Central Board of Directors of the Reserve Bank of India... Approved the transfer of surplus amounting to Rs 526.79 billion for the year ended June 30, 2014 to the Government of India," the central bank said in a statement adding the transfer will take place on Monday.

Last year, the RBI had transfered its Rs 33,010 crore surplus profit to the Centre.

RBI revises guidelines on mortgage guarantee companies

RBI revises guidelines on mortgage guarantee companiesMumbai: The Reserve Bank on Saturday revised guidelines for mortgage guarantee companies and said that guarantees provided by them may be treated as contingent liabilities, for which credit conversion factor would be 50 percent.

"While calculating capital adequacy of MGCs, mortgage guarantees provided may be treated as contingent liabilities and the credit conversion factor applicable to these contingent liabilities will be 50 percent as against the present 100 percent," RBI said in a notification.

RBI proposes 'anytime anywhere' bill payment system

RBI proposes 'anytime anywhere' bill payment systemMumbai - For the convenience of people to pay school fees and municipal taxes and utility bills through an integrated platform, the Reserve Bank on Thursday proposed setting up an "anytime anywhere" bill payment system.

Bill payment is a major component of the retail payment transactions as over 3,080 crore bills amounting to more than Rs 6,00,000 crore are generated each year in the top 20 cities in the country.

India no longer a problem economy: Rajan

Raghuram-RajanMumbai: Reserve Bank Governor Raghuram Rajan on Tuesday said India has emerged from the perception of being in crisis and has placed itself as a better place to remain invested.

"I keep telling the international fora that India is not a problem any more. I think there was a perception problem (last year), but I think on Tuesday that perception also doesn't exist," Rajan said during the customary post-policy interaction with mediapersons at RBI headquarters here.

The central bank chose to keep all the key policy rates unchanged, except cutting SLR by 50 basis points to infuse liquidity.

RBI monetary policy review today; interest rate change unlikely

RBiNew Delhi: The Reserve Bank may maintain the status quo on interest rate in its bi-monthly monetary policy review to be unveiled on Tuesday amid apprehensions that deficient rainfall may further push up food inflation.

The food inflation remaining over 8 percent mark will weigh heavily on the RBI, which has been maintaining that containing inflation is its top priority.

RBI to hold rates on Tuesday, say analysts

RBI to hold rates on Tuesday, say analystsMumbai: Reserve Bank Governor Raghuram Rajan is most likely to hold the key rates at the upcoming review of the monetary policy on Tuesday, where factors like liquidity management measures are the ones to watch out for, brokerages said on Friday.

"RBI to leave rates unchanged despite easing inflation... in no hurry to ease rates," Singaporean brokerage DBS said in a note.

SS Mundra assumes office as RBI Deputy Governor

SS-MundraMumbai: Commercial banker Subhash Sheoratan Mundra has assumed office as the fourth deputy governor of the Reserve Bank Thursday for a three-year term.

When contacted, Mundra, who led the country's second largest lender Bank of Baroda as chairman and managing director, confirmed the development, saying he has taken charge Thursday.

However, an official notification from the Reserve Bank or the government is awaited.

Mundra fills the vacancy created by the retirement of KC Chakrabarty in April, two months before his five-year tenure was come to an end. He was to retire from BoB today following superannuation.

India firms borrowed USD1.89 bn from overseas mkts in June: RBI

India firms borrowed USD1.89 bn from overseas mkts in June: RBIMumbai: Borrowings by Indian firms declined by over 3 percent from a year ago to USD 1.89 billion in June 2014, according to Reserve Bank data released today. During June 2013, India Inc had raised USD 1.95 billion from overseas markets by way of external commercial borrowings (ECBs).

Forex reserves rise $643.2 mln to $317.03 bn

Forex reserves rise $643.2 mln to $317.03 bnMumbai: The forex reserves rose USD 643.2 million to reach USD 317.036 billion in the week to July 11, due to rise in currency assets.

In the previous week, reserves had risen by USD 614.6 million to USD 316.393 billion.

With this, the reserves are close to the record high reported in late 2011 at USD 321 billion.

Foreign currency assets (FCAs), a major constituent of the overall reserves, rose USD 648.7 million to USD 290.221 billion in the reporting week, the Reserve Bank said in its weekly statement here on Friday.

RBI asks banks not to charge usurious interest rate on loans

RBI asks banks not to charge usurious interest rate on loansNew Delhi: RBI has advised boards of banks not to levy usurious interest rate including processing and other charges on loans.

"It is not proposed to issue any guidelines to the banks to offer loans to borrowers at uniform rate of interest in view of variation in their costs, business models, margins etc," Finance Minister Arun Jaitley said in a reply to the Lok Sabha.

RBI, Monetary Authority of Hong Kong ink MoU for info exchange

RBIMumbai: The Reserve Bank of India has inked a memorandum of understanding (MoU) with the Monetary Authority of Hong Kong for exchange of supervisory information.

"The RBI on Thursday signed a Memorandum of Understanding (MoU) for supervisory cooperation and exchange of supervisory information with the Monetary Authority, Hong Kong," RBI said in a notification.

The MoU with Monetary Authority, Hong Kong, was signed by Arthur Yuen, Deputy Chief Executive, Banking, the Monetary Authority, Hong Kong and Harun R Khan, Deputy Governor, RBI.

The signing ceremony was held at the Monetary Authority office in Hong Kong.

RBI allows NBFCs to use e-KYC service to verify identity

RBIMumbai - Non-Banking Financial Companies (NBFCs) have been allowed to accept e-KYC service as a valid process to verify identity and address proof of customers to reduce risk of fraud and forgery.

"In order to reduce the risk of identity fraud, document forgery and have paperless KYC verification, UIDAI has launched its e-KYC service.

"Accordingly, it has been decided to accept e-KYC service as a valid process for KYC verification under Prevention of Money Laundering (PML) (Maintenance of Records)," the RBI said in notification addressed to NBFCs Monday.

RBI increases diamond imports' credit time to 180 days

RBIMumbai: The Reserve Bank has relaxed norms governing import of rough, cut and polished diamonds by doubling the credit time period to 180 days.

"... It has been decided, in consultation with the government, that the Clean Credit i. e. Credit given by a foreign supplier to its Indian customer/ buyer, without any Letter of Credit (Suppliers' Credit)/Letter of Undertaking (Buyers' Credit)/Fixed Deposits from any Indian financial institution for import of rough, cut and polished diamonds, may be permitted for a period not exceeding 180 days from the date of shipment," RBI said in a notification.

Earlier, the time frame was of 90 days.

Banks' asset quality better but systemic risks up: RBI

RBIMumbai: The Reserve Bank of India on Thursday said the overall asset quality of banks has improved in the recent past with a reduction in bad loans, although systemic risks have increased.

"Banking sector risks have increased since December 2013, as shown by the Banking Stability Indicator.

"Though there was a marginal improvement in asset quality, concerns remain about the liquidity and profitability aspects. Stress tests indicate higher vulnerability for public sector banks as compared to their private sector counterparts," the RBI said in its ninth Financial Stability Report released this evening.

Moving bond trading regulation to hit govt bond market: Rajan

Raghuram-RajanMumbai: Reserve Bank of India Governor Raghuram Rajan on Tuesday said shifting the regulation of bond trading from the central bank would have an adverse impact on the government bond market.

"My personal view is that moving the regulation of bond trading at this time would severely hamper the development of the government bond market, including the process of making bonds more liquid across the spectrum, a process which the RBI is engaged in," Rajan said at State Bank of India's Banking and Economic Conclave.

He was talking about reforms suggested by the Financial Sector Legislative Reforms Commission (FSLRC).

Proper food management to help ease price rise: Rajan

Raghuram RajanMumbai: The Reserve Bank on Tuesday said it is closely watching inflation situation and hoped that proper food management will help in easing of food prices.

"We are watching inflation situation. Food prices have had an effect in the last couple of months," RBI governor Raghuram Rajan said, adding food prices may come down with appropriate food management by the government.

Headline inflation accelerated to five-month high of 6.01 percent in May from 5.2 percent previous month, mainly driven by high food and fuel inflation.

Services exports in April at $13.63 bn

Services exports in April at $13.63 bnMumbai: India's services exports in the first month of 2014-15 stood at USD 13.63 billion, marginally lower than USD 14.32 billion in March 2014, as per the RBI data.

The Reserve Bank's data on International Trade in Services showed that services import in April 2014 stood at USD 8.06 billion, also lower than previous month. It was at USD 8.49 billion in March.

India's services export in previous fiscal stood at 167.01 billion while services imports in FY'14 were at USD 88.19 billion.

'RBI to soon announce rules for on-tap banking licenses'

RBIKolkata: The Reserve Bank of India (RBI) would soon come out with policy guidelines for differentiated banking licenses which would be given on tap, deputy governor of the apex bank R Gandhi said.

Besides, he criticised banks for not extending financial assistance to the micro, small and medium size enterprises (MSMEs) and asked lenders to consider the working dynamics of this sector while extending credit.

"The RBI will soon come out with policy guidelines in differentiated banking licenses within a short period of time", Gandhi told reporters on the sidelines of ICC Banking Summit here today.

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