Central Bank of India (CBI) is a prominent public sector bank established on December 21, 1911, with a distinguished legacy of being the first Indian commercial bank wholly owned and managed by Indians. Founded by Sir Sorabji Pochkhanawala, the bank was proclaimed as the “property of the nation and the country’s asset”. Key Characteristics. The bank offers a comprehensive range of financial services, including retail banking, corporate banking, agricultural loans, personal banking products, and digital banking solutions.
Operational Reach
Total Branches: 4,541
Presence across 28 states and 7 Union Territories
Serves individuals, MSMEs, and large corporates
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Amaravati allots land to six additional institutions
The Cabinet Sub-Committee on Land Allotments in Vijayawada has made significant decisions to accelerate institutional development in Amaravati, the capital city of Andhra Pradesh. On Monday, the committee allotted land to six new institutions, revised the allotments of four previously approved institutions, and cancelled the allotments of two institutions. Minister for Municipal Administration P Narayana announced the decisions to the media, stating that the lack of clarity and direction under the previous government’s ‘three capitals’ proposal had led to confusion and uncertainty, causing several organizations to withdraw from investing in Amaravati.
The committee allotted land to the following institutions: the Central Bureau of Investigation (CBI), Geological Survey of India, State Forensic Science Laboratory, and Andhra Pradesh Cooperative Bank Ltd. Additionally, new land allotments were made to six institutions, including the Income Tax Department, Andhra Pradesh Grameen Bank, Central Bank of India, Intelligence Bureau, Bureau of Immigration, and the BJP office.
The minister reported that a total of 884 acres of land has been allotted to 74 institutions so far. He expressed hope that the organizations that have been allotted land will commence construction activities as soon as possible. Currently, over 10,000 workers are engaged in construction activities in Amaravati, and this number is expected to increase to 20,000 once the monsoon season recedes.
The decisions made by the Cabinet Sub-Committee are aimed at revitalizing the development of Amaravati, which had been stalled due to the uncertainty surrounding the ‘three capitals’ proposal. With the new land allotments and revised allocations, the government is sending a positive signal to investors and organizations, indicating that Amaravati is open for business and development. The minister’s announcement is expected to boost confidence among investors and pave the way for accelerated growth and development in the capital city.
Among PSU banks, Bank of Maharashtra, IOB, and Punjab & Sind are currently offering the most attractive fixed deposit rates.
For conservative investors seeking secure and attractive returns on fixed deposits (FDs), several public sector banks in India have recently revised their interest rates, making it an ideal time to invest. The Bank of Maharashtra is currently offering the highest interest rate among public sector banks, with 7.15% on 366-day deposits. Other notable banks with competitive interest rates include the Indian Overseas Bank, Punjab and Sind Bank, Bank of India, and Central Bank of India.
The Indian Overseas Bank offers 7.10% on 444-day FDs, while the Punjab and Sind Bank provides 7.05% interest on 444-day FDs. The Bank of India has introduced a special 999-day Green FD at 7%, and the Central Bank of India offers 7% on deposits ranging from two to three years. These rates are significantly higher than what was previously offered, making them an attractive option for risk-averse investors.
The recent revision in interest rates by public sector banks can be attributed to the Reserve Bank of India’s (RBI) decision to cut the repo rate. This has created a favorable environment for investors to lock in higher interest rates for the medium to long term. Fixed deposits remain a trusted investment tool due to their capital safety and guaranteed returns, making them an excellent option for those seeking a low-risk investment.
With interest rates ranging from 6.25% to 7.15%, investors can choose from a variety of tenure options, including one year, three years, and five years. The Central Bank of India also offers special FDs with tenures of 1111 days, 2222 days, and 3333 days, all of which offer a 7% interest rate. Overall, the revised interest rates offered by public sector banks provide an excellent opportunity for investors to earn attractive returns on their investments while minimizing risk.
Among public sector banks, Bank of Maharashtra, IOB, and Punjab & Sind are currently offering the most competitive fixed deposit rates.
For conservative investors seeking high returns on fixed deposits (FDs) from government banks, now is an excellent time to invest. Several public sector banks have recently revised their interest rates, offering attractive returns. The Bank of Maharashtra currently leads the pack, offering a 7.15% interest rate on 366-day deposits. For other tenures, the bank offers 6.25% for one year, 6.3% for three years, and 6.25% for five years.
Other public sector banks are also offering competitive interest rates. The Indian Overseas Bank offers 7.10% on 444-day FDs, while the Punjab and Sind Bank provides 7.05% interest on 444-day FDs. The Bank of India has introduced a special 999-day Green FD at 7%, with regular FD rates including 6.50% for one year, 6.25% for two years, and 6% for five years.
The Central Bank of India also offers 7% interest on deposits ranging from two to three years, as well as on special FDs of 1111 days, 2222 days, and 3333 days. For other terms, the bank provides 6.7% for one year, 6.75% for three years, and 6.50% for five years. Fixed deposits remain a trusted investment tool due to their capital safety and guaranteed returns.
The recent revision in interest rates by public sector banks is a result of the Reserve Bank of India’s (RBI) repo rate cut. This has created an ideal opportunity for risk-averse investors to lock in higher interest rates for the medium to long term. With the current interest rates, investors can secure attractive returns while minimizing their risk. It is essential for investors to compare the interest rates offered by different banks and choose the one that best suits their investment goals and tenure. By doing so, they can maximize their returns and make the most of their investment.
Man Arrested After Bizarre Attempt to Finance His Own Wedding by Robbing Two ATMs
A youth from Indore, Madhya Pradesh, named Bharat alias Bablu, attempted to rob two ATM machines in one night to fund his upcoming wedding. However, his plan was foiled when a security alarm alerted the police during his second attempt. The incident occurred in the early hours of Saturday, when Bharat first tried to break open the ATM of the Central Bank of India in the Raoji Bazar area. Despite his repeated efforts, he failed to breach the machine and moved on to the Bank of Maharashtra ATM in the Palsikar area.
At the second ATM, Bharat managed to damage the display and control panel, but the security alarm was triggered, notifying the bank manager, who immediately informed the police. A police team arrived at the scene around 1 am and caught Bharat red-handed while he was still trying to break into the machine. During interrogation, Bharat confessed that his motive was to cover his wedding expenses, which he was desperate to fund. He admitted to attempting the theft without a backup plan, hoping to get lucky.
However, this was not Bharat’s first brush with the law. He is a habitual offender with nine previous cases of theft, robbery, and other crimes registered against him. The police have registered a new case in connection with the ATM break-in attempts and are further questioning him to determine if he is linked to other recent incidents. Bharat’s actions demonstrate the desperate measures people may take when driven by financial need, but also highlight the importance of the security measures in place to prevent such crimes.
The incident serves as a reminder that the consequences of such actions can be severe, and the police are working to ensure that individuals like Bharat are held accountable for their actions. The case is currently under investigation, and the police are exploring all possible links to other crimes in the area. With Bharat’s history of crime, it is likely that he will face significant penalties for his actions. The incident has also raised questions about the effectiveness of security measures in place to prevent such crimes and the need for increased vigilance to prevent future incidents.
Andhra Pradesh High Court Rules that Banks’ Recovery Rights under RDB Act Take Precedence over State’s Claims under VAT Act, Citing Preference for Secured Creditors
The Andhra Pradesh High Court has ruled in favor of the Central Bank of India, upholding its right to recover secured debts by selling mortgaged assets under the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act). The court held that this right assumes priority over the claims of the State Government for recovery of dues under the Andhra Pradesh Value Added Tax Act, 2005 (AP VAT Act). The judgment was made in a case where the Central Bank of India had advanced loans to a firm, M/s Sri Rajarajeswari Raw and Boiled Rice Mill, against certain security documents and mortgage deeds.
When the firm failed to repay the loan, the bank initiated recovery proceedings before the Debts Recovery Tribunal, Hyderabad, under the RDB Act. A decree was passed in favor of the bank, and a recovery certificate was issued for the recovery of an amount of Rs.79,74,57,988.09. The Recovery Officer then issued an order of attachment, attaching the secured properties. However, some of the mortgaged properties were sought to be sold by an order issued under the AP VAT Act, with the Commercial Tax Officer levying a demand of Rs.15,02,102 for assessment year 2015-16 and Rs.13,91,168 for 2016-17.
The bank submitted that it had priority over all other debts and Government dues, revenues, taxes due to the Government in terms of Section 31-B of the RDB Act. The court relied on Section 34 of the RDB Act, which states that the provisions of the RDB Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force. The court also considered Section 26 of the AP VAT Act, which prescribes that any amount of tax, including deferred tax, penalty, interest, and any other sum payable by a VAT dealer or TOT dealer, shall be the first charge on the property of the VAT dealer or TOT dealer.
The core issue before the court was whether the bank’s secured interest under Section 31B of the RDB Act had priority over the tax claim made by the respondent under Section 26 of the AP VAT Act. The court relied on an earlier judgment of the Supreme Court in Central Bank of India v. State of Kerala, which held that in the presence of a specific provision providing for priority in favor of the secured creditors to realize the secured debts, the right of the bank to recover its dues would assume priority over recovery of arrears of Government due payable to the State under the AP VAT Act. The court allowed the petition, upholding the bank’s right to recover its secured debts by selling the mortgaged assets. The judgment has significant implications for the recovery of debts by banks and other financial institutions in India.
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NBFCs tap into excess liquidity to boost lending – Latest Banking and Finance Updates
The business environment is expected to improve for non-banking financial companies (NBFCs) due to two recent developments: the Reserve Bank of India’s (RBI) 50 basis point rate cut and the easing of risk weight norms on unsecured lending. The RBI’s rate cut, which is its third reduction since February 2025, is expected to improve liquidity and boost bank funding to the sector. The central bank also slashed the cash reserve ratio (CRR) by 100 basis points, injecting Rs 2.5-lakh crore of durable liquidity into the system.
The easing of risk weight norms on unsecured lending is also expected to encourage banks to step up lending to NBFCs. In November 2023, the RBI had raised the risk weight on bank exposures to NBFCs by 25 percentage points to 125%, tightening credit and slowing fund flows to the sector. However, in February 2025, the central bank reversed this decision, restoring the original risk weight of 100% effective April 1.
Industry experts expect the liquidity surge and the easing of risk weights to result in more funds being available for NBFCs, particularly for retail lending. Parag Sharma, MD and CFO of Shriram Finance, said that the excess liquidity will lead to more lending by banks, resulting in more funds for NBFCs. Ashish Mehrotra, MD & CEO of Northern Arc Capital, noted that the RBI’s recent commentary suggests a moderation in stress levels within unsecured lending, which should further catalyse bank participation in well-structured NBFC-originated pools.
The rollback of additional risk weights and the RBI’s softer stance on unsecured retail loans and credit card outstandings are expected to aid lending to well-managed NBFCs. Several banks have already cut lending rates in response to the RBI’s 50 bps repo rate cut, which is expected to result in lower interest costs for borrowings. The full impact of the rate cut is expected to be visible in the coming quarters.
Overall, the developments are expected to improve the business environment for NBFCs, with more funds available for lending and lower interest costs. The transmission of lower rates is expected to happen faster for mid-sized NBFCs due to higher capital market-linked borrowings. Northern Arc Capital’s MD & CEO expects the net interest margins (NIMs) to likely rise by 70-80 bps in the near term due to the structure of their asset-liability franchise.
SBI Axes Rs 1 Crore Air Accident Insurance for Select Customers from July Onwards
SBI Card has announced significant changes to its credit card policies, effective July 15, 2025, which will impact both premium and co-branded credit card users. One of the major changes is the discontinuation of complimentary air accident insurance on several cards. This means that cardholders will no longer receive automatic air accident insurance, a previously valuable feature for frequent flyers. The affected cards include SBI Card Elite, SBI Card Miles Elite, and Miles Prime, which will lose their Rs 1 crore coverage, as well as SBI Card Prime and Pulse, which will lose their Rs 50 lakh coverage.
In addition to the removal of air accident insurance, SBI Card will also update its minimum payment calculation formula. Starting July 15, the Minimum Amount Due (MAD) will be calculated as 100% of GST, EMI amounts, fees and charges, finance charges, and any over-limit amounts, plus 2% of the remaining outstanding balance. This change is likely to increase the minimum payable amount, especially for those with high EMIs or charges.
Another significant change is the revised order of payment settlement. From July 15, SBI will adjust payments in the following order: GST, EMIs, fees/charges, finance charges, balance transfers, retail purchases, and cash advances. This change will impact how interest is charged and how quickly cardholders can reduce their costliest debts.
Co-branded cards will also be affected by these changes. From August 11, 2025, cards with Rs 1 crore coverage, such as the UCO Bank SBI Card ELITE and Central Bank of India SBI Card ELITE, will lose their air accident insurance benefit. Cards with Rs 50 lakh coverage, including PRIME variants from South Indian Bank, Karnataka Bank, and Allahabad Bank, will also be affected.
Cardholders are advised to review their statements carefully and adjust their financial plans accordingly. The loss of insurance coverage and changes in payment processing could have significant implications for how much users pay and what protections they receive. It is essential for cardholders to understand these changes and plan their finances accordingly to avoid any unexpected charges or losses. Overall, these changes will require cardholders to be more mindful of their credit card usage and payment habits to minimize their costs and maximize their benefits.
Vedanta Aluminium Partners with Central Bank of India to Offer Zero-Collateral Loans to Micro, Small, and Medium Enterprises (MSMEs)
Vedanta Aluminium, India’s leading aluminium producer, has partnered with the Central Bank of India to provide collateral-free loans to its customers, particularly Micro, Small and Medium Enterprises (MSMEs), through its subsidiary, BALCO. The partnership aims to support original equipment manufacturers (OEMs) by offering accessible financing with minimal paperwork and competitive interest rates. Over 60% of Vedanta Aluminium’s downstream clients are MSMEs, and this initiative is expected to simplify financing access and promote industry self-reliance.
The loan facility will be integrated into Vedanta Metal Bazaar, the company’s digital aluminium marketplace, which will enable rapid disbursals, digital documentation, and real-time invoice updates. Loan amounts will range from ₹10 lakh to ₹10 crore per customer, with competitive interest rates, a 90-day repayment window, and a 15-day grace period. This partnership reflects Vedanta’s efforts to strengthen the domestic aluminium supply chain and drive broader economic impact through jobs and industrial growth.
Vedanta Metal Bazaar is an e-commerce platform that lists over 750 product variations, including ingots, billets, wire rods, rolled products, and India’s first low-carbon aluminium brand, Restora. The platform features AI-based price discovery and is accessible through a dedicated website and mobile app, offering tailored solutions for a wide customer base. With over 100 customers already using financial services via the platform’s partner banks, the addition of Central Bank of India is expected to further enhance access to working capital nationwide.
Rajiv Kumar, CEO of Vedanta Aluminium, stated that this partnership improves capital access for MSMEs, who are vital to India’s manufacturing base. The company produced 2.42 million tonnes of aluminium in FY25, accounting for over half of India’s total output, and ranks second globally in the S&P Global Sustainability Assessment 2024 for the aluminium sector. Through this initiative and its broader product ecosystem, Vedanta Aluminium continues to drive industrial innovation and support India’s clean manufacturing ambitions. The partnership is expected to have a positive impact on the domestic aluminium industry and the economy as a whole.
If SBI reduces interest rates by 25 basis points following the RBI’s repo rate cut, how will it impact the maturity amount for 1-10 year fixed deposits, and what do the current rates look like compared to the estimated new rates?
The Reserve Bank of India (RBI) made a surprise announcement on June 6, as Governor Sanjay Malhotra revealed the Monetary Policy Committee’s (MPC) decision to reduce the repo rate by 50 basis points (bps) to 5.5%. This move is expected to provide relief to loan borrowers across the country. Along with the rate cut, the MPC also changed its policy stance from “accommodative” to “neutral”, indicating a shift in the central bank’s approach to monetary policy.
The reduction in the repo rate will lead to a decrease in the cost of borrowing for commercial banks, which is expected to be passed on to consumers in the form of lower interest rates on loans. However, the RBI Governor emphasized the need for banks to speed up the transmission of these rate cuts to borrowers. Currently, it takes banks around 6-9 months to pass on the benefits of rate cuts to customers, which the Governor feels is too slow.
In addition to the repo rate cut, the RBI also announced a change in the cash reserve ratio (CRR) by 1 percentage point. The CRR is the proportion of deposits that commercial banks are required to hold with the RBI, rather than lending out to customers. By reducing the CRR, the RBI is aiming to increase the amount of liquidity in the banking system, which should also contribute to lower interest rates and increased borrowing.
The RBI’s decision to cut the repo rate and change its policy stance is seen as a positive move for the economy, as it is expected to boost borrowing and spending. With the reduction in interest rates, borrowers can expect to pay less on their loans, which should increase demand for credit and stimulate economic growth. The RBI’s emphasis on faster rate transmission also highlights the need for commercial banks to respond quickly to changes in monetary policy, in order to ensure that the benefits of rate cuts are passed on to customers in a timely manner. Overall, the RBI’s announcement is a welcome move for loan borrowers and is expected to have a positive impact on the economy.
The Federal Reserve Incurs Over $1 Trillion in Unrealized Losses as Aggressive Interest Rate Hikes Take a Toll on Bond Holdings
The Federal Reserve is facing a significant challenge with its balance sheet, reporting a whopping $1.06 trillion in unrealized losses. The New York Federal Reserve Bank, which handles the Fed’s bond transactions, disclosed the losses, attributing them to the central bank’s tight monetary stance. The Fed’s bonds are losing value due to the bank’s decision to maintain higher interest rates for an extended period to combat inflation.
The unrealized losses are a result of the Fed’s bond portfolio declining in value as interest rates rise. However, the Fed has assured that these losses will not affect its bottom line or cash transfers to the Treasury. According to the agency, unrealized gains or losses have no impact on net income or Federal Reserve remittances to the Treasury unless assets are sold and gains or losses are realized. This means that the losses will only become realized if the Fed decides to sell the bonds, which it has not done yet.
The New York Fed also noted that the unrealized losses were partially offset as the central bank allowed some bonds to mature without reinvesting. The Fed’s bond portfolio has been experiencing significant unrealized losses over the past two years, with $1.08 trillion in losses reported in 2022 and $948.4 billion in 2023. In contrast, the portfolio saw unrealized gains of $354 billion in 2020 and $127.9 billion in 2021.
The Fed’s tight monetary stance is expected to continue, which may lead to further unrealized losses on its balance sheet. However, the central bank has maintained that the losses will not affect its ability to conduct monetary policy. The Fed’s priority remains to bring inflation under control, and it is willing to maintain higher interest rates for an extended period to achieve this goal. As the Fed navigates this challenging economic environment, it will be closely watched by investors and economists to see how it manages its balance sheet and the impact on the broader economy.
NCLAT Reverses NCLT Ruling on Forensic Audit for Golden Tobacco, Pushes CIRP Completion Deadline to 2025: ET LegalWorld
The National Company Law Appellate Tribunal (NCLAT) has overturned the National Company Law Tribunal’s (NCLT) orders regarding the forensic audit and change of resolution professional for Golden Tobacco, a debt-ridden cigarette manufacturer. The NCLAT has set aside the directions for a forensic audit by KPMG and the replacement of the resolution professional. The appellate tribunal has also extended the timeline for completing the Corporate Insolvency Resolution Process (CIRP) of Golden Tobacco until October 17, 2025.
The NCLAT was hearing a batch of petitions filed against an NCLT order passed on May 13, 2024, which had directed several actions, including the forensic audit and change of resolution professional. The appellate tribunal has directed the NCLT to decide on the claims of financial creditors, including Central Bank of India, Arrow Engineering, and others, and then reconstitute the Committee of Creditors (CoC).
The NCLAT has also dismissed a petition filed by Suraksha Realty and Sheth Developers, which sought to be recognized as secured financial creditors of Golden Tobacco. However, it has provided partial relief to Arrow Engineering, whose claim was restricted to Rs 40.75 crore. The appellate tribunal has also partly allowed the Central Bank of India’s plea, deleting an observation that the resolution professional had inflated its claim.
The NCLAT has directed the resolution professional to reconstitute the CoC and convene a meeting to consider resolution plans after the NCLT decides on the claims of financial creditors. The appellate tribunal has also extended the CIRP period, excluding the time from May 21, 2024, until the present date, during which the interim order had operated. The CIRP process is now expected to be completed by October 17, 2025.
Golden Tobacco, a Dalmia Group-owned company, owns popular cigarette brands such as Panama, Chancellor, Golden’s Gold Flake, and Taj Chhap. The company’s CIRP was initiated on June 7, 2022, by the NCLT after admitting a Section 7 application filed by Arrow Engineering. The NCLAT’s order provides a new timeline for the completion of the CIRP process, and the company’s fate will be decided after the NCLT’s decision on the claims of financial creditors.
Analysts Predict 25-Basis-Point Rate Cut by RBI’s MPC on June 6 as Inflation Shows Signs of Easing
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is set to meet later this week, and analysts expect the Central Bank to cut the repo rate by 25 basis points (bps) for the third consecutive time. This move is anticipated due to inflation remaining below the median target of 4%. The RBI has already cut the repo rate by 50 bps until April this year, and it is projected to cut it by another 50 bps in the current fiscal year (FY26).
According to a Crisil note, bank lending rates have started to ease, which should support domestic demand. The note also predicts that improving domestic consumption will support industrial activity, driven by healthy agricultural growth, easing inflation, and income tax relief. Madan Sabnavis, Chief Economist at Bank of Baroda, agrees that the MPC will likely cut the repo rate by 25 bps due to benign inflation conditions and comfortable liquidity.
The RBI’s commentary on growth and inflation will be closely watched, as there are expectations of revisions in their forecasts. The Central Bank will also detail its analysis on how the global environment will affect the Indian economy, particularly with the tariff reprieve provided by the US set to end in July. The RBI has stated that it will continue to manage liquidity in sync with its monetary policy stance to keep system liquidity adequate.
In its 2024-25 annual report, the RBI noted that a benign inflation outlook and moderate growth warrant a growth-supportive monetary policy while remaining watchful of global macroeconomic conditions. The MPC’s April meeting saw a unanimous decision to reduce the policy repo rate by 25 bps to 6.0%, and the stance was changed from neutral to accommodative. Overall, analysts expect the RBI to maintain a dovish stance and support economic growth through monetary policy easing.
Standard Chartered predicts gold prices will stabilize in the short term, with a potential surge to $3,100 before resuming its upward momentum, according to TradingView News.
Standard Chartered has adjusted its stance on gold, downgrading it from a top pick to a “core holding” as it anticipates a short-term consolidation in prices. Despite this year’s significant rally, the bank expects gold prices to experience a period of moderation over the next one to three months, potentially reaching $3,100 per ounce. This prediction is based on a pattern of behavior observed since 2022, where major buyers have consistently demonstrated price sensitivity, leading to intermittent periods of sideways movement in the market.
According to analysts, this near-term consolidation is a normal correction after a strong gain. However, Standard Chartered remains optimistic about gold’s long-term prospects, forecasting a potential price surge to $3,500 within the next 6 to 12 months. This bullish outlook is driven by the expectation of increased demand from central banks, which are likely to drive up prices.
The bank’s analysts pointed to the recurring pattern of price sensitivity among major buyers, which has resulted in periods of consolidation following significant gains. This pattern suggests that the current rally may be due for a pause, allowing prices to stabilize before potentially resuming their upward trajectory. Despite this short-term caution, Standard Chartered’s long-term projection of $3,500 per ounce reflects a strong conviction in gold’s potential for growth.
Overall, Standard Chartered’s adjusted stance on gold reflects a nuanced view of the market, balancing short-term caution with long-term optimism. While the bank expects a near-term consolidation, it remains confident in gold’s potential for significant gains over the next year, driven by reaccelerating central bank demand. As such, investors may want to consider gold as a core holding, with a view to potentially benefiting from its long-term growth prospects.
SBI report reveals RBI’s robust dividend payout to government driven by foreign exchange sales and interest earnings
The Reserve Bank of India (RBI) has made a record dividend payout of nearly Rs 2.7 trillion to the government, surpassing expectations. According to a report by the State Bank of India (SBI), this surplus transfer was made possible due to robust gross dollar sales, higher foreign exchange gains, and steady increases in interest income. The RBI’s active participation in the foreign exchange market, particularly its aggressive dollar sales, played a significant role in stabilizing the rupee and generating substantial foreign exchange gains.
In the current financial year, the RBI sold a massive USD 371.6 billion, much higher than the USD 153 billion recorded in the previous year. This large-scale selling helped the central bank book substantial foreign exchange gains, which added to the surplus. Additionally, the RBI earned more income from its rupee securities, with its holdings rising by Rs 1.95 lakh crore to Rs 15.6 lakh crore as of March 2025.
The SBI report highlighted the RBI’s prudent approach in maintaining financial stability, citing its decision to increase its risk buffer, known as the Contingent Risk Buffer (CRB). This buffer acts as a safeguard against future risks and was maintained within a range of 7.5 per cent to 4.5 per cent of the RBI’s balance sheet. The transferable surplus was calculated under the revised Economic Capital Framework (ECF), approved by the RBI’s Central Board.
This large payout is a windfall for the government, with the actual amount exceeding the budget estimates. The Union Budget for 2025-26 had projected a total dividend income of Rs 2.56 lakh crore from the RBI and public sector financial institutions. The RBI’s record dividend payout is a testament to its effective management of the country’s foreign exchange reserves and its commitment to maintaining financial stability. The payout is expected to provide a significant boost to the government’s finances, allowing it to meet its fiscal targets and invest in various development projects. Overall, the RBI’s proactive approach has yielded positive results, and the government is likely to benefit from this windfall in the coming years.
SBI attributes RBI’s unprecedented Rs 2.7 trillion dividend payout to dollar sell-offs and significant foreign exchange gains
The Reserve Bank of India (RBI) has made a historic dividend payout of approximately Rs 2.7 trillion to the government, fueled by strong sales of US dollars, high foreign exchange gains, and steady rises in interest income. According to a report by the State Bank of India (SBI), the RBI’s active participation in the forex market was a major contributor to this huge surplus. The central bank emerged as the biggest seller of foreign exchange reserves among Asian peers in January 2025, with gross dollar sales reaching $371.6 billion by February 2025.
The RBI’s intervention strategy to stabilize the Rupee involved large-scale sell-offs of US dollars, which helped the central bank book substantial forex gains and contributed significantly to the dividend payout. The bank’s holdings in rupee securities also rose by Rs 1.95 lakh crore to Rs 15.6 lakh crore as of March 2025, resulting in increased earnings. While falling government securities yields dampened mark-to-market gains, overall interest income still recorded a healthy growth.
The SBI report praised the central bank’s prudent approach to maintaining financial stability, noting that the surplus transfer could have been even higher if the RBI had not decided to raise its risk buffer. The Contingent Risk Buffer (CRB), a safety net for unforeseen shocks, was kept within the 5.5 to 6.5 percent range of the RBI’s balance sheet. The surplus was calculated under the revised Economic Capital Framework (ECF) and approved by the RBI’s Central Board.
This unexpected windfall is a major boost to the government’s finances, with the actual dividend income exceeding budget estimates. The Union Budget for 2025-26 had projected a total dividend income of Rs 2.56 lakh crore from the RBI and state-run financial institutions, but the latest payout will comfortably exceed this figure. The RBI’s dividend payout is a significant development, demonstrating the central bank’s ability to generate substantial income and support the government’s finances. The payout is also a testament to the RBI’s effective management of the country’s foreign exchange reserves and its commitment to maintaining financial stability.
Achievement Marked by the Reserve Bank of India
The Reserve Bank of India (RBI) made a historic announcement on May 23, 2025, revealing a record dividend payout of ₹2.69 lakh crore to the Government of India for the financial year 2025. This unprecedented amount surpasses any previous dividend paid by the RBI in its history. The transfer is expected to significantly enhance the government’s financial position, leading to several positive outcomes.
The primary benefit of this dividend payout is likely to be an increase in capital spending, which can stimulate economic growth. Furthermore, the government’s borrowing requirements may decrease, contributing to an overall positive economic environment. The infusion of this substantial amount is also expected to boost confidence in India’s financial stability and growth prospects.
The RBI, as the central bank of India, has played a crucial role in maintaining a solid macroeconomic environment in the country. This timely transfer of funds will help India navigate the current challenging financial times. The government can utilize this amount to invest in development projects, infrastructure, and social welfare schemes, ultimately benefiting the economy and the citizens.
It is essential to note that the RBI’s decision to pay a record dividend is a testament to its commitment to supporting the government’s efforts to promote economic growth and stability. The move is expected to have a positive impact on the overall economy, and the government is likely to use this opportunity to accelerate its development agenda.
In conclusion, the RBI’s record dividend payout of ₹2.69 lakh crore to the Government of India is a significant development that is expected to have far-reaching positive consequences for the economy. The increased financial resources will enable the government to enhance its spending on key sectors, reduce borrowings, and boost confidence in the country’s financial stability and growth prospects.
Bank of Baroda UAE and ISG unveil the Jaywan Card, a strategic initiative to boost the UAE’s domestic payment ecosystem
The Bank of Baroda (BoB) in the UAE has partnered with In-Solutions Global (ISG) to launch Jaywan Cards, a sovereign payment system aimed at strengthening the country’s payment infrastructure. The rollout of the cards is expected to begin within the next 30 days. Jaywan is a contactless payment system that supports multi-use functionality for both personal and business needs, and is built on a robust infrastructure aligned with the UAE’s Smart Payment Ecosystem.
The launch of Jaywan is a key milestone in the UAE’s efforts to localize its payments ecosystem, promote financial inclusion, and transition towards a cashless economy. The initiative is part of a broader regulatory alignment and strategic focus on Jaywan cards, and is expected to enhance the UAE’s sovereign payment infrastructure. With Jaywan, the UAE joins a growing number of nations investing in sovereign payment networks that prioritize cost efficiency, compliance, and local innovation.
The Jaywan card system is developed under the guidance of the Central Bank of the UAE (CBUAE) and is designed to provide a secure, efficient, and future-ready payment solution. ISG, which has a strong track record in the GCC, will manage the personalization and operational rollout of Jaywan Cards in partnership with Bank of Baroda. The company’s Senior Vice President, Praveen Balusu, stated that the initiative will empower regional banks to adopt a fully localized payment system and lay the groundwork for seamless cross-border transactions.
The launch of Jaywan comes at a time when digital payments in the UAE are booming, and is expected to have a significant impact on the country’s financial landscape. With its planned interoperability with RuPay, Jaywan is poised to become a game-changer for businesses and consumers alike, providing a seamless and efficient payment experience. Overall, the partnership between BoB and ISG is a significant step towards strengthening the UAE’s payment infrastructure and promoting a cashless economy.
Indian Yields Expected to Soften as RBI Slows Pace of Bond Purchases
The Reserve Bank of India (RBI) is set to purchase a significant amount of government debt, which is expected to lead to a dip in Indian bond yields. This move is part of the RBI’s strategy to manage inflation and maintain economic stability. The central bank has already purchased 3.65 trillion rupees worth of debt in the first four months of the year and is set to buy an additional 250 billion rupees. This debt-buying spree has led to a decrease in bond yields, making Indian bonds more attractive to investors.
The yield on India’s new 2035 benchmark bond is currently hovering between 6.20% and 6.24%, which is relatively stable compared to the US Treasury yield, which is nearing 4.50% after a recent rating downgrade. The RBI’s actions are expected to bolster India’s appeal to investors, who are looking for stable and attractive investment opportunities. Traders are also eagerly awaiting the RBI’s upcoming dividend announcement, which is expected to provide insights into future liquidity.
The RBI’s debt-buying strategy is creating opportunities in India’s bond market, making it a hotspot for global investors. The stable environment in India, combined with the rising US Treasury yields, is expected to attract fresh capital to the country. The global dynamics at play, including the US financial ratings shift, are influencing local strategies, and the RBI’s efforts to manage yields and inflation are ensuring that India remains a compelling investment venue.
The bigger picture is that central banks are walking a delicate balance to maintain market trust and economic stability. The RBI’s actions are a testament to this, as it navigates the complex web of global financial dynamics to keep the Indian economy on track. The debt-buying strategy is a key tool in this effort, and its effects are being closely watched by investors and traders. Overall, the Indian bond market is becoming increasingly attractive, and the RBI’s moves are expected to have a positive impact on the economy.
Sampath Bank Achieves Robust Expansion in Q1 2025, Earns Prestigious D-SIB Designation, as reported by The Island.lk
Sampath Bank has demonstrated a strong performance in the first quarter of 2025, as evidenced by its recent financial results. The bank’s impressive growth is a testament to its strategic initiatives and commitment to delivering value to its customers and stakeholders. One of the key highlights of the quarter is the bank’s recognition as a Domestic Systemically Important Bank (D-SIB) by the Central Bank of Sri Lanka.
This prestigious status is awarded to banks that are considered too big to fail, and it reflects Sampath Bank’s significant contribution to the Sri Lankan economy. As a D-SIB, Sampath Bank will be subject to enhanced regulatory requirements and capital buffers, which will further strengthen its resilience and stability.
The bank’s financial performance in Q1 2025 was characterized by significant growth in key areas. Its net interest income increased substantially, driven by a combination of factors including the expansion of its loan book and an improvement in its net interest margins. The bank’s non-interest income also saw a notable increase, driven by fee-based activities such as credit card and electronic banking services.
Sampath Bank’s loan book expanded by a significant percentage during the quarter, driven by growth in key segments such as personal loans, home loans, and small and medium-sized enterprise (SME) loans. The bank’s deposit base also grew substantially, with a notable increase in its low-cost deposit base. This growth in deposits has helped to reduce the bank’s cost of funds and improve its overall liquidity position.
The bank’s asset quality also remained stable, with a low non-performing loan (NPL) ratio. The bank’s NPL ratio has been consistently lower than the industry average, reflecting its prudent lending practices and effective risk management strategies.
In terms of its financial ratios, Sampath Bank’s return on equity (ROE) and return on assets (ROA) both improved during the quarter, reflecting the bank’s ability to generate strong profits from its operations. The bank’s capital adequacy ratio also remained strong, with a significant cushion above the regulatory minimum.
Overall, Sampath Bank’s strong performance in Q1 2025 is a reflection of its commitment to delivering value to its customers and stakeholders. The bank’s recognition as a D-SIB is a testament to its significant contribution to the Sri Lankan economy, and its financial performance during the quarter demonstrates its ability to generate strong profits and maintain a stable financial position. As the bank continues to grow and expand its operations, it is well-positioned to remain a leader in the Sri Lankan banking sector.
Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) Inks Partnership with Central Bank of India to Facilitate Financing for Industrial Projects
The Haryana State Industrial & Infrastructure Development Corporation Limited (HSIIDC) has taken a significant step towards promoting industrial growth in the state by signing a Memorandum of Understanding (MoU) with the Central Bank of India. The MoU, signed by HSIIDC Managing Director Shri Sushil Sarwan and Central Bank of India’s Zonal Head Shri Arvind Kumar, aims to facilitate financing for entrepreneurs and businesspersons who have purchased industrial plots in the state.
The collaboration is designed to support the Micro, Small & Medium Enterprises (MSME) sector in Haryana by providing easier access to finance for HSIIDC plot allottees. This will enable them to establish their enterprises quickly and efficiently. The partnership will offer comprehensive financing solutions to support the setting up of manufacturing and service sector units by MSMEs, which are the backbone of the Indian economy.
The MoU is a significant move towards strengthening the industrial ecosystem in Haryana, which has been a key focus area for the state government. By providing financial support to MSMEs, the state aims to promote entrepreneurship, create employment opportunities, and drive economic growth. The partnership between HSIIDC and Central Bank of India will play a crucial role in achieving this objective.
The agreement will enable plot allottees to access a range of financial services, including loans and credit facilities, at competitive interest rates. This will help reduce the financial burden on entrepreneurs and allow them to focus on setting up and running their businesses. The partnership will also facilitate the development of infrastructure and utilities in industrial areas, which will further support the growth of MSMEs in the state.
Overall, the MoU between HSIIDC and Central Bank of India is a positive development for the industrial sector in Haryana. It is expected to have a significant impact on the state’s economy and will help establish Haryana as a preferred destination for entrepreneurs and businesses. With this collaboration, the state is poised to witness significant growth and development in the coming years, driven by the vibrant MSME sector.
CBI Cracks Down on Corruption: Central Bank Official Taken into Custody for Alleged Involvement in Mudra Loan Bribery Scandal
The Central Bureau of Investigation (CBI) has arrested a bank officer, Prince Kumar Jha, for accepting a bribe of ₹15,000 in connection with the disbursement of a ₹5 lakh Mudra loan. The arrest was made outside the Central Bank of India’s Bangra Bazar branch in Deoria, Uttar Pradesh, after a trap was laid by the CBI’s Anti-Corruption Branch. The accused officer had demanded a ₹20,000 bribe from a local businessman, Meraj Alam, to release a loan that had already been sanctioned for his family-run business.
The complaint was filed by Alam, who alleged that the officer demanded the bribe when his brother visited the bank to withdraw the funds. Alam approached the CBI, which conducted a verification exercise and found the allegations to be credible. A team was dispatched to Deoria, and the accused was caught red-handed accepting the bribe. The arrest marks another successful action in the CBI’s drive to root out corruption in government-linked financial services.
The investigation will continue, and further evidence, including digital and transaction records, will be examined. The CBI will also probe whether other staff members or intermediaries were involved in facilitating such demands from loan applicants. The case highlights the challenges facing transparency in grassroots banking systems, particularly with regards to the Pradhan Mantri Mudra Yojana (PMMY) scheme, which aims to provide financial support to small entrepreneurs and businesses.
Local residents and businessmen have expressed support for Alam’s decision to expose corruption, calling for stricter monitoring of loan disbursement processes and swift justice for those abusing their authority. The CBI’s action is seen as a positive step towards rooting out corruption and ensuring that financial services are delivered transparently and fairly. The accused officer will be produced before the CBI Special Court in Lucknow on Saturday, and further action will be taken based on the outcome of the investigation.
The case serves as a reminder of the need for vigilance and accountability in the banking sector, particularly when it comes to government-backed schemes like the PMMY. The CBI’s efforts to tackle corruption and ensure transparency in financial services are crucial in maintaining public trust and promoting economic growth. As the investigation continues, it is likely that more details will emerge about the extent of corruption in the banking sector and the measures being taken to address it.
Deutsche Bank AG and Yes Bank slapped with penalty by RBI
The Reserve Bank of India (RBI) has imposed penalties on two banks, Deutsche Bank AG, India and Yes Bank, for non-compliance with certain regulatory norms. The penalties were announced on Friday, with Deutsche Bank AG, India facing a fine of Rs 50 lakh (approximately $67,000 USD) for failing to comply with directions related to the creation of a central repository of large common exposures across banks. This repository is a critical component of the RBI’s risk management framework, as it helps to identify and monitor large exposures of banks to individual borrowers or groups.
Yes Bank, on the other hand, has been fined Rs 29.60 lakh (approximately $40,000 USD) for non-compliance with directions related to financial statements presentation and disclosures. The RBI has stated that the penalties imposed on both banks are based on deficiencies in regulatory compliance and are not intended to affect the validity of any transactions or agreements entered into by the banks with their customers.
The RBI has emphasized that the imposition of monetary penalties is without prejudice to any other action that may be initiated against the banks. This suggests that the central bank may take further action against the banks for their non-compliance, which could include additional penalties, fines, or even restrictions on their operations. The penalties imposed by the RBI are intended to ensure that banks comply with regulatory requirements and maintain high standards of governance and risk management.
The RBI’s decision to impose penalties on Deutsche Bank AG, India and Yes Bank reflects its commitment to enforcing regulatory compliance and maintaining the stability of the Indian banking system. The central bank has been actively monitoring the compliance of banks with regulatory requirements and has taken enforcement action against banks that fail to comply. The penalties imposed on these two banks are likely to serve as a deterrent to other banks and encourage them to prioritize regulatory compliance. Overall, the RBI’s actions demonstrate its focus on ensuring that banks operate in a safe and sound manner, and that they are held accountable for their actions.
RBI set to convene meeting with banks to deliberate on liquidity management strategies
The Reserve Bank of India (RBI) is set to meet with lenders on May 21 to discuss potential changes to its monetary policy operations. The meeting, which will be attended by senior RBI officials including Deputy Governor Poonam Gupta, aims to ensure that the central bank’s rate decisions are effectively transmitted to the broader economy. This comes ahead of the RBI’s policy statement on June 6 and follows the bank’s efforts to address a record cash deficit.
One of the key topics on the agenda is the overnight weighted average call rate, which is the rate at which banks borrow and lend unsecured funds to each other. The RBI wants to ensure that this rate aligns with its policy rate, so that market borrowing costs reflect its monetary actions. However, this link has often been disrupted in recent years, and the RBI is considering alternatives to improve the transmission of its policy decisions.
The RBI is also proposing a new benchmark, the Secured Overnight Rupee Rate, which could potentially replace the Mumbai Interbank Outright Rate for pricing interest rate derivatives. Additionally, the bank may discuss whether to use fixed-rate or variable-rate repurchase operations to peg the market borrowing rate with the policy rate. This follows the discontinuation of daily fixed-rate cash windows in 2020.
The meeting will also explore potential tweaks to the cash reserve requirement, which is the amount of funds that banks need to set aside on a daily basis. Currently, banks must maintain 90% of the cash reserve requirement on a daily basis, but the RBI may consider adjusting this ratio to improve the transmission of its policy decisions.
Overall, the RBI’s discussion with lenders is part of its efforts to refine its monetary policy framework and ensure that its rate decisions have a greater impact on the broader economy. With the Indian economy facing challenges such as slow growth and high inflation, the RBI’s ability to effectively transmit its policy decisions will be crucial in shaping the country’s economic trajectory. By reviewing and potentially modifying its monetary policy operations, the RBI aims to create a more stable and supportive financial environment that can help drive economic growth and stability.
RBI dividend to pump in additional funds and boost liquidity
The Reserve Bank of India (RBI) is expected to transfer a significant dividend to the government, ranging from Rs 2.25 lakh crore to Rs 2.75 lakh crore. This payout will inject fresh liquidity into the banking system, raising surplus funds to between Rs 5.5 lakh crore and Rs 6 lakh crore. The RBI’s strong earnings this year are attributed to income from its large foreign exchange reserves, domestic bond holdings, and active dollar sales to stabilize the rupee.
The RBI’s foreign exchange reserves peaked at $704 billion in September 2024, with an estimated $125 billion sold since then. The gross dollar sales reached $371.6 billion in FY25, up from $153 billion the previous year. The central bank’s earnings have been robust, partly due to income from deploying its foreign exchange reserves in high-yielding US government bonds.
The sharp rise in liquidity is expected to put downward pressure on short-term interest rates. Analysts from Axis Mutual Fund and Barclays anticipate that the surplus liquidity will expand further, leading to a rally at the short end of the curve. The weighted average call rate (WACR) is likely to be dragged down closer to the standing deposit facility (SDF) rate of 5.75%, effectively easing monetary policy.
The surge in liquidity may prompt the RBI’s monetary policy committee (MPC) to maintain a hold at its June meeting, as policymakers wait for clearer signals on inflation and growth. The RBI distributes dividends after setting aside funds for contingency provisioning, which is expected to remain slightly more than last year’s Rs 42,800 crore. The dividend amount is determined under the Economic Capital Framework, which stipulates a risk buffer of 5.5% to 6.5% of the RBI’s balance sheet.
The expected dividend payout will significantly boost the government’s coffers, providing a much-needed injection of funds. The increased liquidity in the banking system is likely to have a positive impact on the economy, with potential benefits for borrowers and investors. However, the RBI’s MPC will need to carefully consider the implications of the surge in liquidity on inflation and growth, and adjust its monetary policy accordingly. Overall, the RBI’s dividend payout is expected to have a significant impact on the banking system and the broader economy, and will be closely watched by market participants and policymakers.
Fed Officials Set to Maintain High Interest Rates, Citing Tariffs as a Key Factor
The Federal Reserve is expected to keep its benchmark interest rate steady at a range of 4.25% to 4.5% at its May 6-7 meeting. This decision is largely due to the uncertainty surrounding the impact of the Trump administration’s economic agenda, particularly the trade war and tariffs. The Fed is monitoring labor market conditions and inflation pressures before making any changes to interest rates.
The central bank’s primary goal is to balance price stability and maximum employment. With tariffs expected to unleash inflationary pressures, the Fed is holding interest rates high to assess the situation. Economists predict that the Fed will maintain a “wait and see” approach until later this year, while others anticipate a rate cut this summer.
The Fed’s decision has a significant impact on markets, and any talk of risk or uncertainty can spook investors and cause a chain reaction in the economy. The central bank’s tone and messaging will be closely watched, as it can influence the economy and markets.
The impact of interest rate changes on personal finances is significant. When the Fed increases interest rates, borrowing costs become more expensive, but savings yields increase. Conversely, when the Fed lowers rates, borrowing costs decrease, but savings yields also decrease. The Fed’s decisions can affect credit card APRs, mortgage rates, and savings rates.
For consumers, the Fed’s decision means that credit card APRs may remain high, making it essential to pay off balances in full or make more than the minimum payment each month. Mortgage rates may fluctuate in response to economic data, but a significant decline is unlikely without a substantial economic downturn. Savings rates may decrease following future rate cuts, but savers can still maximize their earnings by locking in high CD rates or taking advantage of high savings rates.
Overall, the Fed’s decision to hold interest rates steady reflects the uncertainty surrounding the economy and the need for caution in navigating the impact of tariffs and other economic factors. As the central bank continues to monitor the situation, consumers should be aware of how interest rate changes can affect their personal finances and plan accordingly.
SBI Research predicts the RBI will slash interest rates by 125 basis points before the end of this fiscal year.
The Reserve Bank of India (RBI) has taken steps to stimulate economic growth by lowering policy interest rates. In February and April, the central bank reduced interest rates by 25 basis points each, aiming to boost economic activity. This move is expected to have a positive impact on the economy, as lower interest rates can lead to increased borrowing and spending.
The RBI’s Monetary Policy Committee (MPC) is responsible for setting interest rates and is scheduled to meet again in June for its next bi-monthly meeting. The MPC will reassess the economic situation and decide on the future course of monetary policy. The committee’s decisions are crucial, as they can influence inflation, growth, and employment in the country.
The recent rate cuts by the RBI are a sign that the central bank is committed to supporting economic growth. By reducing interest rates, the RBI is making borrowing cheaper, which can lead to increased investment and consumption. This, in turn, can help boost economic activity and create jobs.
The RBI’s move is also expected to have a positive impact on the banking sector. With lower interest rates, banks may be more willing to lend, which can lead to increased credit growth. This can be beneficial for businesses and individuals, as they may be able to access credit more easily and at lower costs.
The upcoming meeting of the MPC in June will be closely watched, as it will provide clues about the future direction of monetary policy. The committee will assess various economic indicators, including inflation, growth, and employment, before making its decision. If the economy continues to show signs of slowing down, the RBI may consider further rate cuts to support growth.
In conclusion, the RBI’s recent rate cuts are a positive step towards stimulating economic growth. The central bank’s move is expected to have a positive impact on the economy, and the upcoming meeting of the MPC in June will be crucial in determining the future course of monetary policy. As the economy continues to evolve, the RBI’s decisions will play a critical role in shaping the country’s economic trajectory. With the RBI’s commitment to supporting growth, there is hope that the economy will continue to recover and grow in the coming months.
SBI research forecasts sharp reductions in interest rates by the RBI in the fiscal year 2026, driven by a subdued inflation outlook
According to a report by SBI Research, the Reserve Bank of India (RBI) is expected to implement an aggressive rate cut trajectory for the current fiscal year (FY26). This is driven by the significant moderation in inflation, which has hit a 67-month low of 3.34% in March 2025. The report attributes this decline to a sharp correction in food inflation. As a result, SBI Research forecasts a substantial cumulative rate cut of approximately 125-150 basis points (bps) in FY26.
The report predicts that the RBI will cut rates by 75 basis points in June and August, followed by another 50 bps cut in the second half of the year. This would result in a cumulative cut of 125 bps. The report suggests that a significant 50 bps rate cut could serve as a strong signaling mechanism from the central bank. The key policy rate is expected to breach the neutral rate by March 2026.
The SBI Research projects that the average CPI headline inflation for FY26 will fall below 4%, with expectations of it remaining below 3% in the first quarter. However, the report also highlights a potential challenge arising from these rate cuts, such as the credit-deposit wedge may widen. This could occur as deposit rates decline in response to the policy rate reductions, potentially coinciding with lackluster deposit growth.
On the liquidity front, the report anticipates no negative surprises, supported by Open Market Operations (OMOs) and a robust dividend transfer. Consequently, yields are predicted to move closer to 6% with a downward bias. The report describes this period as a “Goldilocks period” for slashing policy rates, characterized by both low inflation and moderate nominal GDP growth, which is expected to be in the range of 9-9.5% for FY26.
Overall, the report suggests that the RBI is likely to take an aggressive stance on rate cuts, driven by the significant moderation in inflation. This is expected to have a positive impact on the economy, with the potential to boost growth and reduce borrowing costs. However, the report also highlights the potential challenges that may arise from these rate cuts, and the need for careful management of liquidity and deposit growth.
The Reserve Bank of India (RBI) has slapped penalties on five major banks, including ICICI Bank, Bank of Baroda, Axis Bank, and two others.
The Reserve Bank of India (RBI) has imposed penalties on five major banks, including ICICI Bank, Bank of Baroda, Axis Bank, IDBI Bank, and Bank of Maharashtra, for non-compliance with various regulatory directions. The penalties, ranging from ₹29.60 lakh to ₹97.80 lakh, were imposed due to deficiencies in regulatory compliance in areas such as cyber security, know your customer (KYC) norms, credit and debit card issuance, and customer service.
ICICI Bank was fined ₹97.80 lakh for non-compliance with RBI directions on cyber security, KYC, and credit and debit card issuance. Bank of Baroda was penalized ₹61.40 lakh for non-compliance with directions on financial services and customer service. IDBI Bank and Bank of Maharashtra were each fined ₹31.80 lakh for non-compliance with directions on interest subvention scheme for agricultural loans and KYC norms, respectively.
Axis Bank was penalized ₹29.60 lakh for unauthorized operation of internal accounts. The RBI clarified that the penalties were not intended to question the validity of any transactions or agreements entered into by the banks with their customers, but rather to address the deficiencies in regulatory compliance.
The penalties are a reminder of the RBI’s focus on ensuring that banks adhere to regulatory requirements and maintain high standards of compliance. The central bank has been actively monitoring banks’ compliance with various regulations and has taken enforcement actions against those that fail to meet the required standards. The penalties imposed on these five banks serve as a warning to other lenders to ensure that they are in compliance with all regulatory requirements to avoid similar penalties in the future. Overall, the RBI’s actions aim to promote a safe and sound banking system that protects the interests of customers and maintains public trust in the financial sector.
RBI panel proposes longer trading hours, eyeing a 7pm close for money markets
A Reserve Bank of India (RBI) panel has proposed extending the operating hours of the money market from 5pm to 7pm. This move aims to provide banks with greater flexibility in managing short-term liquidity and accessing interbank and central bank funds. The proposal comes in response to the growing complexity and size of India’s financial markets, which have become increasingly linked to global markets. The panel was established to review trading and settlement hours across RBI-regulated markets, with a focus on improving market efficiency, liquidity, volatility, and price discovery.
Since the last major review in 2019, India’s financial markets have undergone significant changes, including an increase in participants, products, and non-resident activity. The introduction of round-the-clock payment systems, such as UPI, has also altered liquidity dynamics. The panel believes that extending trading hours will help to better align India’s markets with global markets and provide more opportunities for market participants.
The proposed changes include extending call money trading to 7pm, with a reporting window closing at 7:30pm. Market repo and triparty repo (TREP) trades would be permitted until 4pm, an hour later than the current close. The settlement window for repo deals would also be shifted to 5:30-6:30pm. Additionally, the liquidity adjustment facility (LAF) auction would be moved forward to 9:30-10am to align market operations at the start of the day.
The extension of trading hours is expected to have several benefits, including improved liquidity, reduced volatility, and more efficient price discovery. It will also provide banks with greater flexibility in managing their short-term liquidity and accessing interbank and central bank funds. The RBI will continue to fine-tune operations throughout the day, as needed. Overall, the proposed changes aim to enhance the efficiency and effectiveness of India’s financial markets, making them more competitive and attractive to global investors.
RBI Cracks Down: 7 Non-Banking Financial Companies Lose License, 11 Others Withdraw Registration, Full List Inside
The Reserve Bank of India (RBI) has taken action against 7 non-banking financial companies (NBFCs) in April. The license of 6 NBFCs has been cancelled, and a monetary penalty has been imposed on one. The cancelled licenses include those of Unitara Finance Limited in Madhya Pradesh, Thamiraparani Investments Private Limited, Armusk Infrastructure Investments Limited, Vishwapriya Finance Limited, Matrix Financial Services Limited, all in Tamil Nadu, and Welfil Securities Limited in Gujarat. These companies are no longer allowed to operate as NBFCs under the RBI Act 1934.
The RBI has also imposed a penalty of Rs 71.30 lakh on Mahindra & Mahindra Financial Limited for violating various rules. The company failed to disclose processing fees and other charges in some loan applications, did not provide loan details to some borrowers, and did not give some borrowers a last chance to repay their loans before the sale or auction of vehicles. The company also allotted multiple customer identification codes to some customers instead of a unique code.
In addition to the cancelled licenses and penalty, 11 NBFCs have surrendered their licenses voluntarily for various reasons. The RBI’s actions are aimed at ensuring that NBFCs operate in a fair and transparent manner, and that customers are protected from unfair practices.
The cancelled licenses and penalty imposed by the RBI will not affect the transactions taking place between customers and the companies. However, the companies that have had their licenses cancelled will no longer be able to operate as NBFCs, and customers will need to take their business to other licensed institutions. The RBI’s actions demonstrate its commitment to regulating the NBFC sector and ensuring that companies operate in compliance with the law. The central bank will continue to monitor the sector and take action against companies that fail to comply with regulations.
RBI announces massive bond-buying spree, set to acquire Rs 1.25 lakh crore worth of bonds in May – here are the top highlights
The Reserve Bank of India (RBI) has announced plans to purchase government securities worth Rs 1.25 lakh crore in May through open market operations (OMO). The purchases will be made in four tranches, with the first tranche of Rs 50,000 crore scheduled for May 6, followed by three more tranches of Rs 25,000 crore each on May 9, May 15, and May 19. The RBI will issue detailed instructions for each tranche separately.
This move is aimed at injecting liquidity into the system and ensuring orderly liquidity conditions. The central bank has been actively using the OMO route to manage liquidity conditions in the domestic banking system. In the previous month, the RBI had purchased government securities worth Rs 20,000 crore through a similar drive.
Open market operations involve the buying or selling of government securities by the RBI to manage the supply of money and adjust liquidity conditions in the market. The RBI uses this tool to adjust the rupee liquidity conditions on a durable basis. When there is excessive liquidity in the market, the RBI sells government securities, and when there is a shortage of liquidity, it buys government securities.
The RBI will accept electronic bids from eligible participants through its Core Banking Solution system, called E-Kuber, and the outcome of the auction will be announced on the same day. The central bank has reiterated its commitment to monitoring evolving liquidity and market conditions and taking necessary steps to ensure orderly liquidity conditions in the system.
The move is expected to have a positive impact on the bond market and the overall liquidity situation in the country. The RBI’s decision to purchase government securities is seen as a measure to infuse liquidity into the system and support economic growth. With the economy facing challenges due to the pandemic, the RBI’s move is expected to provide a boost to the market and help stabilize the financial system.
RBI Governor showcases India’s growth potential in the US, hailing the country as a ‘key partner in global prosperity’
Reserve Bank of India (RBI) Governor Sanjay Malhotra has highlighted India as a prime long-term investment destination, citing the country’s strong growth and stability. Speaking at the US-India Economic Forum in Washington, Malhotra emphasized that India’s relatively lower dependence on exports and strong domestic demand shield the economy from external shocks. Over the past four years, India has recorded an average annual growth rate of 8.2%, making it the fastest-growing major economy in the world.
The RBI has projected a growth rate of 6.5% for the current fiscal year, slightly lower than the previous estimate of 6.7%. However, this rate remains the highest among major economies. Malhotra attributed this growth to India’s policy continuity, financial stability, infrastructure development, digitization, demographic dividend, and manufacturing focus. He also highlighted the country’s foreign exchange reserves, which stand at $686 billion, covering over 11 months of imports and 96% of external debt.
Malhotra emphasized that India’s flexible inflation targeting framework, adopted in 2016, has enhanced policy predictability and anchored inflation expectations. The RBI has lowered the policy rate by 25 basis points for the second consecutive time, signaling an accommodative stance to support economic growth. The central bank expects inflation to be around 4% for the next 12 months, with a focus on supporting economic growth.
The RBI Governor invited investors to take advantage of India’s transparent, rule-based, and forward-looking policy ecosystem, which is ideal for long-term and productive investments. He emphasized that India is not just a destination for investment but also a partner in prosperity. With its strong growth prospects, stable economy, and favorable policy environment, India offers a compelling opportunity for investors seeking long-term value and returns.
Malhotra’s pitch for India as a long-term investment destination comes at a time when advanced economies are facing economic headwinds. The country’s robust growth, low inflation, and stable financial system make it an attractive option for investors. The RBI’s accommodative monetary policy stance and focus on supporting economic growth are also expected to boost investor confidence. Overall, Malhotra’s message highlights India’s potential as a key player in the global economy and a prime destination for long-term investments.
RBI MPC minutes strike a decidedly dovish note, with economic growth now top priority in policy decisions, according to a UBI Report
The minutes of the Monetary Policy Committee (MPC) meeting, held on April 7-9, reflect a dovish tone, with growth taking center stage in the Reserve Bank of India’s (RBI) policy approach. The MPC appears more confident that inflation will move towards the 4% target, allowing it to shift focus towards supporting economic growth. The RBI’s decision to change its monetary policy stance to “accommodative” and cut interest rates by 25 basis points (bps) has been seen as a “double booster shot” for the economy. This combination implies that interest rates will likely remain low or may even decrease further, making borrowing cheaper and supporting economic activity.
All MPC members, except one, agreed on the rate cut and shift in stance. The accommodative stance signals that a rate hike is unlikely for now, and the RBI can still pause if economic conditions demand it. The downward revision in the RBI’s inflation forecast for FY26 by 20 bps has created additional room for monetary easing in the future. The RBI has projected India’s GDP growth at 6.5% for FY26, but Union Bank of India feels this is optimistic and pegs growth closer to 6.0%, citing weak capital expenditure sentiment and rising global uncertainties.
Looking ahead, the report expects the RBI to cut the repo rate by another 50 bps, bringing it down to a terminal rate of 5.5%. This projection is based on an assumption of a neutral real interest rate of 1.5%. The tone of the minutes and the Union Bank report suggests that the central bank is prioritizing growth as inflation risks appear to be easing. The RBI’s focus on growth is likely to continue, with the possibility of further rate cuts in the future. The accommodative stance and low interest rates are expected to support economic activity, making borrowing cheaper and boosting growth.
The shift in the RBI’s policy approach is significant, as it indicates a change in the central bank’s priorities. With inflation risks easing, the RBI is now focusing on supporting economic growth, which is likely to have a positive impact on the economy. The report’s expectations of further rate cuts and the RBI’s accommodative stance suggest that the central bank is committed to supporting growth and stimulating economic activity. Overall, the minutes of the MPC meeting and the Union Bank report suggest that the RBI is taking a dovish approach, prioritizing growth and seeking to support the economy through monetary policy.
India’s forex reserves touch a record high of $676 billion, according to the RBI.
India’s foreign exchange reserves have witnessed a significant surge, jumping by $10.872 billion to $676.26 billion in the week ending April 4, marking the fifth consecutive week of gains. This growth is a stark contrast to the previous trend, where reserves had been slipping for about four months, reaching a mere 11-month low. The latest gains have brought the reserves up from their all-time low, indicating a strengthening of the Indian economy. The Reserve Bank of India (RBI) has intervened to prevent a sharp depreciation of the Rupee, which has fallen to an all-time low against the US dollar.
The RBI’s foreign currency assets, the largest component of foreign exchange reserves, stood at $574.08 billion, while gold reserves totaled $79.36 billion. The reserves are sufficient to cover approximately 10-11 months of projected imports. In 2023, India added $58 billion to its foreign exchange reserves, reversing the cumulative decline of $71 billion in 2022. In 2024, the reserves have risen by over $20 billion. Foreign exchange reserves are assets held by a nation’s central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling.
The RBI actively manages liquidity, including selling dollars, to prevent steep Rupee depreciation. It strategically buys dollars when the Rupee is strong and sells when it weakens. The RBI’s interventions aim to maintain a stable exchange rate, ensuring a stable economy. Despite fluctuations in reserves, India remains confident in its economic prospects, with foreign exchange reserves serving as a safeguard against external shocks.
The latest surge in foreign exchange reserves suggests that the RBI’s efforts are yielding positive results, indicating a strong and stable economy. The RBI’s ability to manage foreign exchange reserves effectively has enabled India to maintain a robust foreign currency position, which will help in maintaining financial stability and preserving economic stability. As a result, India is better equipped to face external challenges and can continue to maintain a stable exchange rate. The development is a positive sign for the Indian economy, which is expected to continue its growth trajectory in the coming years.
A boost to the masses, four major government-backed banks slash interest rates, bringing welcome respite to the common folk.
The Reserve Bank of India (RBI) has cut interest rates for the second consecutive time, and as a result, four government banks have reduced their interest rates. The affected banks include Punjab National Bank, Bank of India, Indian Bank, and UCO Bank. This decision will benefit both existing and new borrowers, providing relief to the common man.
Bank of India has reduced its repo-linked benchmark lending rate (RBLR) from 9.10% to 8.85%, effective from April 9. Indian Bank has cut its RBLR by 35 basis points to 8.70%, effective from April 11. Punjab National Bank has revised its RBLR from 9.10% to 8.85%, effective from April 10. UCO Bank has reduced its lending rate to 8.8%, effective from April 10.
The RBI’s decision has a direct impact on interest rates for all types of loans, including home loans, car loans, and personal loans. The central bank has changed its monetary policy stance from “neutral” to “accommodative”, indicating that it may continue to maintain a soft stance in the coming times. This decision is expected to provide relief to the common man, making it easier for them to borrow money.
The RBI has also lowered its GDP growth forecast for FY26 by 20 basis points to 6.5%. The growth forecast for the first quarter of FY26 is 6.5%, 6.7% for the second quarter, 6.6% for the third quarter, and 6.3% for the fourth quarter.
This reduction in interest rates is a positive development for the economy, as it will make borrowing cheaper and stimulate economic growth. The four government banks that have reduced their interest rates are expected to pass on these benefits to their customers, making it easier for them to borrow money and invest in the economy. Overall, this decision is expected to have a positive impact on the economy, providing relief to borrowers and stimulating economic growth.
India’s Axis Bank Collaborates with JPMorgan to Develop Blockchain-Powered Payment Infrastructure
Axis Bank, a leading private sector bank in India, has partnered with JPMorgan’s Kinexys Digital Payments (KDP) to offer near-instant, round-the-clock programmable USD clearing services for its business clients. This partnership enables Axis Bank to provide its clients with the flexibility to access cross-border payment services 24/7, improving the reliability of payment processing and paving the way for new and creative corporate applications.
Kinexys Digital Payments is supported by a scalable network of blockchain deposit accounts that facilitates and automates payments directly between accounts. The platform has already facilitated over $1.5 trillion in transaction volume, with daily transactions exceeding $2 billion, and has experienced a remarkable 10-fold growth in payment transactions year over year.
The Axis Bank-Kinexys partnership marks the next step in creating a growing industry-wide blockchain-based financial ecosystem with interoperability among central bank digital currencies, stablecoins, and other digital currency solutions. The innovation is the result of Axis Bank’s “innovation-first mindset” and its commitment to emerging technologies such as blockchain, artificial intelligence, big data, cloud computing, and payment solutions.
India’s Economic Survey 2024-2025 highlights the rapid advancements in technology, particularly in areas such as AI, blockchain, and data analytics, which create new opportunities to revolutionize traditional financial services and processes. The survey notes that AI and large language models have enhanced customer service through interactive chatbots and personalized experiences, while blockchain technology ensures secure, transparent, and efficient transactions.
Axis Bank has committed significant resources to emerging technologies as part of its digital transformation strategy, with a focus on AI, blockchain, and payment solutions. The bank’s annual Information and Communications Technology (ICT) expenditure has touched $290 million, with a substantial portion allocated for purchasing software, ICT services, and network and communications solutions from various vendors.
The economy requires urgent government and Reserve Bank of India intervention, says Finance Minister Nirmala Sitharaman
Indian Finance Minister Nirmala Sitharaman emphasized the government’s focus on maintaining strong domestic demand to ensure the underlying strength of the Indian economy. This comes amid concerns that US tariffs could lead to a global slowdown, which has also prompted the Reserve Bank of India (RBI) to lower its forecast for the current fiscal year. Sitharaman welcomed the RBI’s latest rate cut, stating that the Indian economy would require support from both the central bank and her ministry to maintain growth in the face of global uncertainties induced by US tariff hikes.
The finance minister highlighted that the government has made policy decisions and budget announcements to stimulate growth, and the latest rate cut is seen as a welcome move. She emphasized that the Indian economy is largely driven by domestic demand and consumption, and is less dependent on global trade. Additionally, she mentioned that the government is studying US tariffs and pursuing an ambitious trade agreement with the US, which can benefit both countries.
Sitharaman’s comments aim to reassure investors and clarify the government’s stance on the potential impact of US tariffs on the Indian economy. By prioritizing domestic demand and consumption, the government hopes to maintain the economy’s underlying strength and insulate it from the effects of global trade tensions. The finance minister’s words are likely to be viewed as a positive signal by investors, as they highlight the government’s commitment to supporting the economy and maintaining growth despite the challenges posed by US tariffs.
India’s central bank is expected to slash the repo rate on April 9, potentially driving home loan rates down to record lows of under 8%.
The Reserve Bank of India (RBI) is set to announce its first monetary policy for the financial year 2025-26 on April 9, with markets and economists expecting a repo rate reduction of at least 25 basis points. This could lead to a decrease in home loan interest rates, making it an opportune time for those considering a new loan or refinance. Currently, public sector lenders such as Central Bank of India, Union Bank of India, and Punjab National Bank offer interest rates ranging from 8.1% to 8.15% per annum.
Private sector banks like HDFC, Axis, and ICICI Bank have already reduced their interest rates on fresh home loans by 5-10 basis points between January and April. According to RBI rules, banks are required to review interest rates at least once every quarter, and new borrowers may see their rates going down in the coming days.
A 25-basis point repo rate cut could mean home loan interest rates dipping below 8% per annum. For instance, a Rs 50-lakh home loan with a 20-year tenure would attract an EMI of Rs 42,106 with an interest rate of 7.9% per annum, compared to the current EMI of Rs 42,290.
The article provides a breakdown of the cheapest home loans offered by Indian banks, with Central Bank of India and Union Bank of India offering the lowest interest rates at 8.1% per annum. Other public sector banks, such as Bank of India, Indian Overseas Bank, and Punjab National Bank, offer interest rates ranging from 8.15% to 8.25% per annum.
Private sector lenders like HDFC Bank, Axis Bank, and ICICI Bank offer interest rates ranging from 8.25% to 8.75% per annum. Housing finance companies like LIC Housing Finance, Bajaj Finserv, and PNB Housing Finance also offer competitive interest rates, with rates starting at 8.2% to 8.6% per annum.
Central Bank Signals Potential Rate Reduction as Economy Faces Increasing Pressure
The Reserve Bank of India (RBI) is expected to lower its key interest rates by up to 25 basis points this week, driven by easing inflation and the need to boost economic growth. The Monetary Policy Committee (MPC) is set to convene on April 7, with an official announcement expected on April 9. The decision comes as global economic challenges, particularly new tariffs from the United States, loom on the horizon.
Madan Sabnavis, Chief Economist at Bank of Baroda, emphasizes the importance of the upcoming policy announcement, citing the global economic landscape’s uncertainties due to US tariffs on around 60 countries, including India and China. Experts believe that with inflation rates under control and liquidity levels stabilized, the RBI is in a favorable position to implement a 25 basis point rate cut.
The recent tariffs imposed by the US present both challenges and opportunities for India. Competitors in key export markets, such as China, Vietnam, and Bangladesh, will face increased duties, potentially making Indian goods more competitive. Rating agency Icra has projected a 25 basis point rate cut in the upcoming MPC meeting while maintaining a neutral outlook on future policy changes.
Industry body Assocham has urged a cautious approach, advocating for a “wait-and-watch” strategy rather than an immediate rate cut. However, other experts believe that the RBI may adopt a more “accommodative” stance, indicating the possibility of additional rate cuts later this year.
Retail inflation has recently dropped to a seven-month low of 3.61% in February, primarily due to declining prices of vegetables and proteins. This decline has created an opportunity for the RBI to consider further rate reductions. The MPC’s decision will ultimately hinge on a combination of domestic economic conditions and external pressures.
A potential 25 basis point rate cut would make borrowing more affordable, particularly in the housing market, and stimulate consumption. However, the actual impact will depend on how quickly commercial banks pass on the RBI’s policy changes to consumers. The outcome of the meeting on April 9 will provide crucial insights into the RBI’s strategy moving forward, as it seeks to balance growth stimulation with inflation control.
The forex kitty sees yet another gain, accumulating a four-week streak, as the RBI injects $6.6 billion into the reserves.
A recent report from the Reserve Bank of India (RBI) indicates a significant increase in the country’s foreign exchange reserves. As of March 28, the reserves rose to $665.4 billion, a five-month high, with an addition of $6.56 billion. This growth is significant, considering it comes after a decline in the previous month. The rupee also saw a notable appreciation of 0.6% against the dollar during the reporting period.
The RBI did not intervene much in the foreign exchange market to defend the currency this time, reportedly due to the renewed flow of foreign investments into Indian equities. This situation led to a 2.3% gain for the rupee in March, marking its best monthly performance since November 2018.
Despite this appreciation, the rupee still closed the fiscal year with a decline of 2.46%, reflecting a somewhat inconsistent performance. Notably, the Rs. 66 lakh crore ($901 billion at current exchange rate) forex reserve is enough to cover 11 months of imports, making it the fourth-largest in the world, behind China, Japan, and Switzerland.
The upward trend in forex reserves is worth monitoring as it represents the central bank’s foreign currency assets, such as its gold holdings and reserves, which can be used to boost the economy in times of need. The cumulative additions of $20.1 billion over the last three weeks have placed the country’s forex reserves at $665.4 billion, with an increase of $6.596 billion from the previous week.
Measuring the Effect of US-Related International Uncertainty on Global Markets – Standard Chartered
The article discusses the expected persistence of uncertainty in global trade policy, despite the approaching “Liberation Day” on April 2. According to Standard Chartered’s economist Madhur Jha, the heightened trade policy uncertainty (TPU) is likely to lower global GDP growth by 1.0-1.5%. This impact is expected to be most significant for the US and other major economies. The article highlights three main channels through which heightened TPU can affect global growth: a drop in trade and capital flows, a decline in business investment, and lower consumer confidence.
The article also notes that academic studies suggest that the negative impact of TPU is not limited to tariffs alone, but can have broader effects on the economy. Moreover, the article cites a two-country structural vector autoregressive (SVAR) analysis, which estimated the impact of rising TPU on selected emerging market (EM) economies. The analysis found that the drop in output and CPI was small and short-lived, with no significant impact on short-term interest rates. However, some currencies, such as those of Mexico and Indonesia, did weaken in response to heightened TPU, suggesting that other factors, such as central bank credibility, are at play.
Overall, the article concludes that the expected continuation of trade policy uncertainty will likely have a significant impact on global growth, particularly for major economies. However, the impact on interest rates and exchange rates is expected to be limited, and other factors may also play a role.
Get instant access to your Central Bank of India Credit Officer Exam 2025 admit card: click here for the direct link!
The Central Bank of India has released the admit cards for the Credit Officer exam 2025. To download the admit card, candidates must input their registration number and password/date of birth on the official website. The admit card can be accessed by following the steps outlined below.
First, candidates should visit the official website at centralbankofindia.co.in and click on the “Careers” tab. Then, they should select “Current Openings” and click on the link “Recruitment of Credit Officer in Junior Management Grade Scale-I”. Next, they should select the link to download the call letter and enter their credentials, including registration number and password/date of birth.
After submitting the credentials, the admit card will be displayed on the screen. Candidates should carefully check the details on the admit card, including their name, roll number, exam location, and any other information provided. If any discrepancies are discovered, candidates should report them to the appropriate authorities as soon as possible.
It is essential for candidates to download and keep a printout of the admit card for further use. The admit card is a crucial document that will be required for the exam and is essential for admission to the written test.
By following these simple steps, candidates can access and download their admit card for the Credit Officer exam 2025. For additional information, candidates should visit the official website of the Central Bank of India.
RBI Hands Down Heavy Fines: HDFC Bank Slapped with Rs 75 Lakh Penalty for KYC Norms Non-Compliance, Punjab & Sindh Bank Gets Rs 68.20 Lakh Fine
The Reserve Bank of India (RBI) has imposed penalties on several banks, including HDFC Bank, Punjab and Sind Bank, for non-compliance with Know Your Customer (KYC) norms. HDFC Bank has been slapped a penalty of Rs 75 lakh by the RBI, while Punjab and Sind Bank has been fined Rs 68.20 lakh.
The RBI inspections revealed that HDFC Bank had failed to maintain a proper record of changes made to the KYC of its customers, and had also not properly verified the identity of its customers. The bank also failed to update the KYC records of its customers and did not maintain a central repository of customer data.
On the other hand, Punjab and Sind Bank was found to be lacking in implementing the RBI’s guidelines on KYC. The bank had failed to verify the identity of its customers and did not maintain a comprehensive and updated database of its customers.
The RBI has taken this action to ensure that banks maintain high standards of compliance with regulations and follow proper procedures to ensure the security and integrity of their customers’ data. The central bank has also issued a warning to the two banks to take corrective action and ensure that they comply with the KYC norms.
This development is a significant one, as it highlights the importance of maintaining high standards of compliance and integrity in the banking sector. The RBI is taking a strong stance to ensure that banks meet the required standards and do not compromise on customer data security and integrity.
It is also a reminder to other banks to follow the guidelines and regulations set by the RBI and to ensure that they maintain the highest standards of compliance and integrity. The penalties imposed on HDFC Bank and Punjab and Sind Bank serve as a deterrent to other banks to maintain the necessary standards and avoid similar consequences.
The development has important implications for the banking sector as a whole, as it signifies that the RBI is committed to ensuring that banks maintain strong controls and processes to safeguard customer data and protect the financial system from potential risks.
According to Standard Chartered, the US dollar may experience a resurgence in strength by 2025, offering investors a compelling investment opportunity.
According to a report by Standard Chartered, the dollar may not be as strong in 2025, a prediction that contradicts the widespread assumption that the US currency will continue to rise in value. The bank’s analysts have predicted that the dollar’s strength will be renewed later in 2025, rather than experiencing a prolonged period of growth.
The report cites several factors that could contribute to this reversal, including the potential for the Federal Reserve to slow down the pace of interest rate hikes, the strengthening of other major currencies such as the euro and yen, and the impact of global trade tensions on the US economy. Additionally, the report notes that the dollar’s current strength is largely a function of its status as a safe-haven currency, which could dissipate as global markets stabilize and investor sentiment improves.
The report also highlights the challenge that the US faces in maintaining its economic growth momentum, with the country’s economy experiencing a slowdown in the second half of 2023 and the potential for inflation to rise again in 2025. This, combined with the increasing risk of a global economic downturn, could lead to a reevaluation of the dollar’s value and a potential reversal of its upward trend.
Furthermore, the report suggests that the dollar’s role as a reserve currency may also be overshadowed by other currencies, particularly the euro, which has been gaining popularity as a safe-haven asset due to the European Central Bank’s more dovish monetary policy.
In conclusion, according to Standard Chartered’s report, the dollar’s strength is expected to be renewed later in 2025, driven by factors such as the potential for slower interest rate hikes, the strengthening of other major currencies, and the impact of global trade tensions on the US economy. The report challenges the widespread assumption that the dollar will continue to rise in value and highlights the potential for a reversal in its value in the future.
Robbers used an earthmover to attempt to break into an ATM in Jharsuguda, aiming to make off with the cash inside.
In a stunning incident of theft, unidentified miscreants attempted to steal an Automated Teller Machine (ATM) from the Central Bank of India in Jharsuguda, Odisha, using a stolen earthmover. The daring robbery took place at 1:30 am on Thursday, near the BTM chowk in Jharsuguda Sadar police limits. According to CCTV footage, the thieves used the earthmover to demolish the ATM kiosk and load the ATM onto the machine’s front shovel. They then drove away, but abandoned the earthmover and ATM on the side of the road and fled.
The ATM, which contained cash, was intact, but the thieves were unable to open it. The Jharsuguda Superintendent of Police, Smit P. Parmar, and the Sadar police Investigating Officer, Swapnamayee Gochhayat, arrived at the scene to investigate and recovered the earthmover and ATM. The police also registered a case based on a complaint filed by Officer of the Central Bank of India, Chaturbhuj Jena.
Additionally, the owner of the earthmover, Phulchand Kumar, also filed a complaint, stating that his machine, bearing registration number OD23 3877, was stolen from a parking lot in Mau district, Uttar Pradesh, the previous day. The police are now analyzing CCTV footage, detaining the earthmover’s owner and driver, and scanning CCTV cameras to identify the culprits. With further investigation underway, it remains to be seen if the thieves will be apprehended and the stolen earthmover and ATM recovered.
Senior Citizens’ FD Offer: Take advantage of 9.10% interest rates on Fixed Deposits from these top banks, find out more details here!
Fixed Deposits (FDs) have been a popular investment option in India for many years, particularly among senior citizens. This is because FDs are considered to be a safe and secure way to invest, with a high return on investment. Senior citizens can earn higher interest rates than normal citizens, typically around 0.5% more, making it an attractive option for those looking to generate a steady income post-retirement.
Banks and non-banking financial companies (NBFCs) offer FDs with interest rates ranging from 2.50% to 9.10% for a period of 7 days to 10 years. Many private banks offer interest rates up to 7%, while some NBFCs offer 9% interest on FDs. This makes FDs a lucrative option for those seeking a high return on investment.
Top banks and NBFCs in India offer FD rates as follows:
* Public Sector Banks: Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, State Bank of India, and Union Bank of India offer interest rates ranging from 7.75% to 7.95%.
* Private Sector Banks: Axis Bank, Bandhan Bank, DBS Bank, HDFC Bank, ICICI Bank, and Yes Bank offer interest rates ranging from 7.75% to 8.25%.
* Small Finance Banks: AU Small Finance Bank, Jan Small Finance Bank, North East Small Finance Bank, Unity Small Finance Bank, and Utkarsh Small Finance Bank offer interest rates ranging from 8.40% to 9.10%.
FDs provide several benefits to senior citizens, including the option to withdraw the full or partial amount before maturity, as well as the option to renew the FD once it matures. Additionally, the Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance coverage up to Rs 5 lakh on deposits with participating banks. With a minimum investment requirement as low as Rs 100, FDs are an accessible and secure investment option for senior citizens.
A month after his arrest warrant was issued, the accused in the New India Bank case finally surrenders to authorities.
A 62-year-old accused, Arunachalam Ullahanathan Maruthuvar, has surrendered in the Rs 122-crore embezzlement case at New India Cooperative Bank, after evading police for a month. He was arrested by the Economic Offences Wing (EOW) and produced in court, where he was remanded in police custody till March 18. This is the sixth arrest in the case.
According to the police, Arunachalam received nearly Rs 30 crore of the misappropriated funds from the prime accused, Hitesh Mehta, the former general manager and head of accounts of the cooperative bank. Another accused, Kapil Dedhia, a civil contractor, was arrested on Friday and remanded in police custody till March 19, with Rs 12 crore of the embezzled funds credited to his account.
The police have arrested a total of six individuals in the case, including Mehta, and have named a few more as wanted accused, including the former chairman and vice-chairperson of the bank, Hiren and Gauri Bhanu, who fled abroad before the scam was discovered. The investigation is ongoing, and an EOW team will soon meet senior staffers of the Reserve Bank of India to gather information about why the central bank’s inspection on February 12 uncovered the discrepancies, rather than earlier.
The case involves the siphoning of Rs 122 crore from the bank’s offices in Prabhadevi and Goregaon in Mumbai. The police are still investigating the extent of the scam and the involvement of other individuals. The case highlights the need for increased vigilance and monitoring of bank transactions to prevent such frauds.
India’s central bank assesses IndusInd Bank’s financial condition as stable
The Reserve Bank of India has issued a statement assuring the public that IndusInd Bank, a private lender, is well-capitalized and its financial position remains satisfactory. This statement comes after IndusInd Bank reported an accounting discrepancy in its currency derivatives, which has led to an estimated $175 million impact on its earnings, equivalent to an entire quarter’s worth. The bank, backed by the Hinduja Group, has had a turbulent few months. The central bank has stated that there is no need for depositors to react to the speculative reports, and that the bank’s financial health remains stable, being closely monitored by the Reserve Bank.
IndusInd Bank has engaged an external audit team to review its current systems and assess the actual impact of the discrepancy. The bank’s financial health has been under scrutiny, and this move is aimed at restoring investor confidence. The Reserve Bank of India has reiterated that there is no cause for concern among depositors, and that the bank’s position remains stable. The move is expected to help restore investor confidence and stabilize the bank’s financial performance.
A massive blaze ravages the Central Bank in Amravati, Maharashtra, with firefighters working to contain the inferno, fortunately with no reports of injuries or fatalities.
A massive fire broke out at a Central Bank branch office in Amravati, Maharashtra, on Saturday, causing lakhs of rupees worth of cash and important documents to be gutted. The fire allegedly started due to a short-circuit in an air conditioning device installed at the bank, just after it opened. The blaze engulfed the entire premises, prompting bank employees to evacuate the area, fortunately without any loss of life or property.
Twelve fire department teams, including from Dhamangaon and Tivasa Amravati Municipal Corporations, were deployed to combat the blaze, but their initial efforts proved insufficient, and additional teams were called in to reinforce the operations. A large crowd of locals gathered at the scene, prompting police to take control of the situation to maintain order.
According to Chandur Railway Police Station SHO Ajay Akhri, all documents and furniture inside the bank were reduced to ashes, and no written complaint or information has been received from the bank administration. However, sources indicate that a massive amount of cash was charred in the incident, worth lakhs of rupees. The police are investigating the cause of the fire, and a forensic team may be called in to confirm the exact cause of the blaze. Further details are awaited. Overall, the incident has caused significant damage to the bank and uncertainty for its customers.
All roads lead to ‘E’ as Route claims a dominant win, while BoB and DY ‘A’ register a convincing victory, setting the stage for an exciting finale with WNS Global and Central Bank.
The “A” Division Times Shield, a three-day first-round knockout tournament, has seen several matches played out. Outright wins were recorded by Route Mobile and Bank of Baroda, while WNS Global Services and Central Bank teams qualified for the final of the E Division.
In the “A” Division, Jain Irrigation “A” took on Income-Tax “A” and set a target of 323/4d, which was chased down by Income-Tax “A” who reached 116/2. Route Mobile also won against Tata, setting a target of 178/8d, which was surpassed by Tata, but only to 142.
In the other matches, Mumbai Customs drew with BPCL, while Bank of Baroda defeated Nirlon, setting a target of 267 and overhauling their opponents’ score of 267 and 119. CGST & CEX, Mumbai lost to D Y Patil “A”, who set a target of 261 and 205, which was chased down to 67/1.
In the E Division, Deutsche Bank lost to WNS Global Services, who set a target of 183/5, while Satellite Developers lost to Central Bank, who set a target of 101/2.
The dates and venue for the final of the E Division have yet to be announced. The tournament is being played at various venues.
Don’t Miss Out! Limited Spots Available – Register Now for Multiple Positions and Apply Before the Deadline
The Central Bank of India is recruiting candidates to fill various positions, including Attender, Faculty, Office Assistant, and Watchman cum Gardner, on a contract basis. The minimum age limit for the positions is 22 years, and the maximum age limit is 40 years. Candidates who meet the eligibility criteria can apply for the positions by filling out the application form and sending it to the address mentioned in the official notification.
The salary for the positions varies, with Attenders receiving a salary of Rs. 8,000, Faculty receiving a salary of Rs. 20,000, Office Assistants receiving a salary of Rs. 12,000, and Watchman cum Gardners receiving a salary of Rs. 6,000.
The selection process for the positions varies, with Attenders and Watchman cum Gardners being selected on the basis of a personal interview, and Office Assistants being selected on the basis of a written test and personal interview.
The last date to apply for the positions is 22nd March 2025, and candidates are advised to send their applications by post to the address mentioned in the official notification. Only complete applications will be entertained, and late applications will be rejected.
Some of the key points to keep in mind are:
* The age limit for the positions is 22 to 40 years.
* The last date to apply is 22nd March 2025.
* Candidates should fill out the application form in the prescribed format and send it to the address mentioned in the official notification.
* Only complete applications will be entertained, and late applications will be rejected.
* The selection process for Attenders and Watchman cum Gardners is based on a personal interview, while the selection process for Office Assistants is based on a written test and personal interview.
It is essential to carefully review the official notification and the application process to ensure that the application is complete and submitted on time. Additionally, candidates are advised to check the official website for any updates or changes in the notification.
Unlock the Key to Affordable Home Ownership: Say goodbye to high interest rates! Compare the best home loan deals of 2025 and start building your dream home now!
Are you dreaming of owning your own home, but high loan rates are giving you sleepless nights? Worry no more! Many banks are currently offering home loans at very affordable interest rates and EMIs (Equated Monthly Installments). In this article, we’ll help you discover which bank is offering the cheapest home loan option.
Rising interest rates and expensive loans can make home ownership a daunting task. However, several government banks, including Bank of Maharashtra, Central Bank of India, and Punjab National Bank, are offering home loans at attractive interest rates, starting from 8.10% to 10.65%. This can significantly reduce your EMI and make owning a home a more achievable goal.
Here’s a breakdown of the best home loan rates offered by various banks, with rates starting from 8.10%:
* Bank of Maharashtra: 8.10% to 10.65%
* Central Bank of India: 8.10% to 9.95%
* Punjab National Bank: 8.15% to 9.85%
* Indian Overseas Bank: 8.15% to 9.85%
* State Bank of India: 8.50% to 9.75%
* UCO Bank: 8.35% to 10.55%
* IDBI Bank: 8.40% to 12.25%
* Nainital Bank: 8.40% to 11.20%
When choosing a loan, consider factors beyond the interest rate, such as processing fees, loan transfer charges, and bank terms. Some banks, like Canara Bank and Punjab & Sind Bank, are waiving processing fees, which can further reduce your loan costs.
Don’t miss out on this opportunity to own your dream home. Review the list above to find the best home loan option for your needs and budget. Remember to also consider the bank’s terms and conditions before finalizing your decision. Happy home buying!
Join the Central Bank of India’s 1,000 Credit Officer Recruitment Drive – Apply by March 10 for a Finest Career Opportunity!
The Central Bank of India has opened applications for 1,000 positions of Credit Officer (Junior Management Grade Scale I). This is an excellent opportunity for those interested in a career in banking, particularly in the credit sector. The application process is open until March 10, 2025.
Eligibility criteria include a Bachelor’s degree in any discipline with a minimum of 60% marks (55% for SC/ST/OBC/PWBD) and an age limit of 20 to 30 years as of November 30, 2024. The application fee is ₹150 for SC/ST/PWBD candidates and ₹750 for others.
The role of a Credit Officer involves assessing loan applications, analyzing financial documents, and managing risk. Key responsibilities include loan assessment, financial analysis, customer interaction, risk management, and compliance. The position offers job stability, a competitive salary, and growth potential.
The selection process consists of an online exam, interview, and document verification. The online exam tests English language, quantitative aptitude, reasoning ability, and general banking awareness. Candidates who perform well in the exam may be invited for an interview, and those selected will need to provide proof of educational qualifications and identity.
Applying for the Credit Officer recruitment involves meeting the eligibility criteria, registration, online application, and payment of the application fee. Candidates are advised to prepare thoroughly for the online exam by focusing on banking awareness, quantitative aptitude, reasoning ability, and English language.
The Credit Officer role offers a stable and rewarding career in banking, with opportunities for career growth, competitive salary, and benefits, and the chance to work in a respected public sector bank.