Mumbai: Volumes of exchange-traded currency derivatives on the National Stock Exchange (NSE) have plummeted by almost 90% ahead of the May 3 deadline to comply with the central bank’s directive for trades to be backed by underlying exposures.Average daily turnover for currency futures and options, including notional turnover for currency options, on the country’s largest stock exchange was at ₹20,646.06 crore in April, registering a decline of 87% from ₹1.56 lakh crore in March, exchange data showed.From April 2022 to March 2024, the average daily turnover for each month was at ₹1.51 lakh crore in the exchange-traded currency derivative (ETCD) market, largely driven by retail…
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Category: RBI
Lenders seek RBI clearance to sell Jaiprakash Associates loan to NARCL
Mumbai: Lenders led by the State Bank of India have sought approval from the Reserve Bank of India to sell the ₹18,000 crore debt of realty company Jaiprakash Associates (JAL) to the National Asset Reconstruction Company of India (NARCL), said people with knowledge of the matter.If the RBI approves the deal, it will become NARCL’s largest acquisition of the debt of a single company, with an offer of ₹10,000 crore to the lenders.RBI’s approval is a condition precedent set by NARCL to acquire JAL’s loans, one of the people said. Lenders are seeking approval because in 2017, soon after the Insolvency and Bankruptcy Code (IBC) was enacted, the RBI directed banks to refer 28 companies,…
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BBVA confirms merger talks with Banco Sabadell; RBI faces US pressure over controversial Russia-linked Strabag deal
Spanish bank BBVA has confirmed reports that it is preparing an offer to acquire Banco Sabadell in a potential all-stock bid. The potential takeover would create a Spain-headquartered banking giant with a market capitalisation of over €72bn, making it one of the largest European banking deals in years. A previous effort to merge the two banks collapsed in 2020 over a disagreement in price. A BBVA-Sabadell deal would strengthen BBVA’s domestic business and help it to expand lending to small and medium-sized enterprises, a market in which Sabadell excels. BBVA’s shares have surged in recent years driven by robust performance in Mexico and substantial shareholder dividends….
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May 1 bank holiday: Are banks closed today? Check state-wise list – Business Standard
May 1 bank holiday: Are banks closed today? Check state-wise list Business StandardMay 1 will be a bank holiday; Here’s a complete list of bank holidays in May 2024 The Indian ExpressInternational Labour Day 2024: What’s open, what’s closed in India? FirstpostBank holiday on May 1: Are banks closed today? Check city-wise full list here MintBank holidays in May 2024: Banks are closed for 14 days across states; here is the state-wise holiday list The Economic Times
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Will RBI cut rates before the US Fed? Elara Capital says rates may be on hold on inflation worries – Economy News
Will RBI blink before the US Fed and cut rates this year? While the robust GDP numbers did raise the hope of an earlier than expected rate cut, the sticky inflation situation seems to put a spanner in the works. According to Elara Capital, sticky food inflation due to uncertain weather conditions remain key risks. According to them, the Reserve Bank of India may hold policy repo rate through 2025 and the first of the rates cuts might be seen in early 2026 as against earlier expectation of Q3FY25 or later half of 2025.
Growth numbers indicate to urgency to cut rates
In a detailed report, economists at Elara Capital outlined that, “With India’s GDP growth projected at a…
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‘Can’t levy interest on loan amounts not received’: RBI to Banks
RBI on Monday warned lenders to not levy interest from the date of loan sanction, instead of actual disbursement. In a home loan or other loans, there is often a lag between sanction and disbursement and charging it from the date of sanction imposes additional interest cost on the borrower.Charging interest from the date of loan sanction or loan agreement execution rather than from the date of actual disbursement is a violation of fair lending practices norms.Customers end up paying interest on money they haven’t received, which inflates the cost of borrowing. Second, in the case of loans disbursed by cheque, charging interest from the date of the cheque rather than when it’s cashed or…
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RBI issues draft framework for electronic trading platforms
The Reserve Bank of India on Monday proposed a revised regulatory framework for Electronic Trading Platforms (ETPs) in the wake of increased integration of the onshore forex market with offshore markets. Market makers too have been requesting the Reserve Bank to allow access to offshore ETPs offering Indian Rupee (INR) products. ETP refers to any electronic system, other than a recognised stock exchange, on which transactions in eligible instruments are contracted. Eligible instruments mean securities, money market instruments, foreign exchange instruments, derivatives, or other instruments of like nature. The ‘Draft Master Direction – Reserve Bank of India (Electronic Trading…
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RBI imposes monetary penalty on 2 co-operative banks for rule violations
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The Reserve Bank of India (RBI) on April 29 said it has imposed monetary penalty two co-operative banks viz., The Central Co-operative Bank and The Vaish Co-operative Adarsh Bank, for rule violations.
The central bank imposed Rs 1 lakh penalty on The Vaish Co-operative Adarsh Bank, and Rs 2 lakh on The Central Co-operative Bank, it said in a press release.
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The Central Co-operative Bank was penalised for non-compliance with directions issued by the National Bank…
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Raghuram Rajan on wealth distribution: ‘Elevate, rather than bringing the successful down’
Raghuram Rajan, former Reserve Bank of India (RBI) governor said that having inclusive growth will increase the pace of growth but taxing the rich is not the way to do that. Speaking at an event at the Kellogg School of Management – Northwestern University, he said, “We need to try and elevate rather than bringing the successful down.” Former Governor of Reserve Bank Of India (RBI) Raghuram Rajan shared his views on wealth distribution. {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} The remarks come after Indian Overseas Congress chairman Sam Pitroda earlier said that the inheritance tax in the US is an idea that could be debated…
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