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Canara Bank Cuts Lending Rates: Home and Auto Loan Borrowers to Benefit from Reduced Interest Rates | Latest Personal Finance Updates
In a bid to ease the financial burden on its customers, Canara Bank has announced a reduction in its lending rates. The bank has lowered its Repo Linked Lending Rate (RLLR) by 25 basis points, following the Reserve Bank of India’s (RBI) recent decision to slash key interest rates. This move is expected to bring direct benefits to borrowers by making loans more affordable. The revised rates will be effective from April 12, 2025.
With the reduced RLLR, the minimum rate of interest for all loans has been lowered. The popular loan products, such as housing loans and vehicle loans, will now start at 7.90% per annum and 8.20% per annum, respectively. This rate revision is expected to lower Equated Monthly Installments (EMIs) for both existing and new borrowers, making it more affordable for customers to purchase a! house or vehicle.
The RBI had earlier announced a reduction in interest rates for the second time, bringing massive relief to home and auto loan borrowers. The six-member Monetary Policy Committee (MPC) meeting, led by new RBI Governor Sanjay Malhotra, unanimously decided to slash the policy rate by 25 basis points to 6.25%. This move is seen as a positive step towards making credit more accessible and helping customers achieve their financial goals.
Canara Bank has stated that this move reaffirms its commitment to making credit more accessible and ensuring timely transmission of policy rate cuts. The bank continues to align its offerings with customer needs, making it easier for them to move forward with their dreams and financial goals. With the reduced lending rates, Canara Bank aims to provide relief to its customers and support their financial aspirations. Overall, this move is expected to have a positive impact on the banking sector and the economy as a whole.
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.
Boost your savings! Certain banks are now offering higher FD interest rates of up to 9.10% – find out which banks are leading the pack!
The recent repo rate cut by the Reserve Bank of India (RBI) has led to a reduction in fixed deposit (FD) interest rates by big banks such as SBI, HDFC, ICICI, and Yes Bank. However, some small finance banks are still offering attractive interest rates of up to 9.10% to senior citizens. This presents a good opportunity for senior citizens to invest in fixed deposits and earn risk-free returns.
Small finance banks such as Unity Small Finance Bank, Suryoday Small Finance Bank, Jana Small Finance Bank, Equitas Small Finance Bank, and AU Small Finance Bank are offering high interest rates on FDs. For instance, Unity Small Finance Bank is offering 9.10% interest on a 1001-day deposit, while Suryoday Small Finance Bank is offering 9.10% interest on a 5-year deposit. Similarly, Jana Small Finance Bank is offering 8.75% interest on a 2-3 year deposit, and Equitas Small Finance Bank is offering 8.55% interest on an 888-day deposit.
Senior citizens can benefit from these schemes as they offer special interest rates that are higher than what is being offered by big banks. However, before investing, it is essential to ensure that the bank is authorized by the RBI and has a Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover of up to Rs 5 lakh. Additionally, it is crucial to understand that these special interest rates may be for a limited period, and it is necessary to thoroughly understand all the rules and regulations before investing.
In conclusion, small finance banks are offering attractive interest rates on fixed deposits, providing senior citizens with an opportunity to earn high returns on their investments. With interest rates ranging from 8% to 9.10%, these schemes are an excellent option for those looking for risk-free returns. By doing their research and ensuring that the bank is reputable and offers the necessary insurance cover, senior citizens can take advantage of these high-interest FD schemes and secure their financial future.
Reserve Bank of India Relaxes Export Regulations for Bharat Mart in UAE: Rediff Money News
The Reserve Bank of India (RBI) has relaxed norms for Indian exporters using Bharat Mart, a UAE-based marketplace, to facilitate easier exports and repatriation of funds. Bharat Mart is a multimodal logistics network-based marketplace that provides Indian traders, exporters, and manufacturers access to global markets. The relaxation of norms aims to promote Indian exports and enhance the country’s trade competitiveness.
According to the RBI circular, banks are now allowed to permit exporters to realize and repatriate the full export value of goods sold through Bharat Mart within nine months from the date of sale. This extended time frame will enable exporters to manage their working capital requirements more effectively and reduce the risk of non-repatriation of export proceeds.
Additionally, the RBI has eased the process for Indian exporters to set up and operate warehouses in Bharat Mart. Exporters can now open or hire a warehouse in Bharat Mart without any pre-conditions, provided they have a valid Importer Exporter Code (IEC). Banks have been instructed to verify the reasonableness of the exporter’s proposal before allowing the setup of the warehouse.
The relaxed norms also apply to remittances made by Indian exporters for initial and recurring expenses related to setting up and operating their offices in Bharat Mart. This will enable exporters to establish a presence in the UAE-based marketplace and cater to the demands of global customers more effectively.
The RBI’s move is expected to boost Indian exports and enhance the country’s trade competitiveness in the global market. By facilitating easier access to international markets and providing a more favorable business environment, the government aims to increase export volumes and contribute to the country’s economic growth. The relaxation of norms for Bharat Mart is a significant step towards achieving this goal and is expected to benefit Indian exporters, manufacturers, and traders.
Maximize Your Returns: Compare the 444-Day Special Fixed Deposits of SBI, IDBI, BoB, and Punjab & Sindh Bank to Find Out Which One Offers the Highest Interest on Your Rs 6 Lakh Investment
Several banks in India have introduced or extended special fixed deposit (FD) schemes, offering investors attractive interest rates for specific durations. These schemes are similar to regular term deposits but are available only for a limited time and often come with enhanced interest rates. Recently, the Reserve Bank of India (RBI) has cut the repo rate by 25 basis points, prompting banks to adjust their interest rates downward.
Punjab & Sind Bank has extended its special tenure fixed deposit scheme until June 30, 2025, and has also revised its interest rates. IDBI Bank has revamped its Utsav Deposit Scheme, discontinuing certain tenures and implementing interest rate cuts across key tenures. The State Bank of India (SBI) has relaunched its Amrit Vrishti 444-day FD at a reduced interest rate, giving investors another opportunity to lock in returns on a medium-term deposit.
Bank of Baroda (BoB) has introduced a new deposit scheme called the bob Square Drive Deposit Scheme, replacing its earlier Utsav Deposit Scheme. The 444-day FD under this new plan offers revised interest rates for both general and senior citizens. These changes are effective from April 7, 2025. The interest rates offered by these banks are subject to change and may not be the same as those offered by other banks.
It’s essential for investors to do their due diligence and consult with a financial expert before making any investment decisions. The calculations provided are projections and not investment advice. Investors should carefully review the terms and conditions of each scheme, including the interest rates, tenure, and any applicable penalties for early withdrawal.
Overall, the special FD schemes offered by these banks provide investors with an opportunity to earn attractive interest rates on their deposits. However, investors should be aware of the risks and rewards associated with these schemes and make informed decisions based on their individual financial goals and risk tolerance. By doing so, investors can make the most of these special FD schemes and achieve their financial objectives.
Banks’ Q4 earnings preview: HDFC, ICICI, and SBI to face subdued profits as NIMs come under pressure – Mint
The article previews the fourth-quarter results of Indian banks, including HDFC Bank, ICICI Bank, and State Bank of India (SBI). Analysts expect these lenders to report muted earnings due to pressure on their net interest margins (NIMs).
The main reasons for the expected decline in earnings are:
1. Deceleration in loan growth: Credit growth, which has been the primary driver of earnings for Indian banks, has slowed down in recent quarters. This has reduced the banks’ ability to grow their interest income.
2. Pressure on NIMs: The Reserve Bank of India’s (RBI) recent rate cuts have reduced the banks’ interest margins. Although the banks have managed to maintain their NIMs so far, analysts expect further pressure in the fourth quarter.
3. Higher provisioning: With the economy facing stress, the increased provisioning for bad loans is expected to eat into the banks’ profits.
4. Weakness in corporate credit: The pandemic has led to a decline in corporate credit, which has also affected the banks’ earnings.
According to analysts, HDFC Bank’s net interest income (NII) is expected to decline by around 7-8% year-on-year (YoY) in the fourth quarter. ICICI Bank’s NII is expected to decline by around 6-7% YoY. SBI’s NII is expected to decline by around 5-6% YoY.
The banks may try to make up for the decline in NII by increasing their non-interest income, such as fees and commissions. However, this strategy may not be enough to offset the decline in NII.
To mitigate the impact of declining NIMs, the banks may focus on reducing their operating expenses. HDFC Bank and ICICI Bank have already taken steps to reduce their expenses in recent quarters.
Despite the expected decline in earnings, the Indian banking system is expected to remain stable, with the banks’ capital adequacy ratio (CAR) remaining above the required level.
In conclusion, the article suggests that Indian banks, including HDFC Bank, ICICI Bank, and SBI, are likely to report muted earnings in the fourth quarter due to pressure on their NIMs. The banks will need to focus on other revenue streams and cost reductions to mitigate the impact of declining interest income.
Why are savings accounts now yielding higher interest rates, especially following the RBI’s latest rate cut? Find out the top banks offering the best returns – Money News
The Reserve Bank of India (RBI) has slashed its repo rate by 50 basis points, marking the end of the high interest rate regime in the country. This move has led to a cascade effect, with several banks, including public and private sector lenders, cutting their lending rates and adjusting their fixed deposit rates. As a result, interest rates on savings accounts have also been reduced.
Public sector banks, such as State Bank of India, Punjab National Bank, and Bank of Baroda, are currently offering interest rates ranging from 2.7% to 2.9% on savings accounts. Private sector banks, on the other hand, are offering slightly better rates, ranging from 2.75% to 3.25%.
The RBI’s focus is now on accelerating economic growth, and if retail inflation remains stable, it may cut rates further in the future. This could have a direct impact on fixed deposits and savings accounts, with banks potentially paying lower interest rates.
Adhil Shetty, CEO of BankBazaar, suggests that depositors should consider investing in other instruments, such as fixed deposits, mutual funds, or government savings schemes, to earn higher returns. In the current environment, earning interest from a savings account alone may not be sufficient.
The trend of lower interest rates is expected to continue, as the RBI prioritizes growth support and inflation remains within its comfort zone. For depositors, this may mean lower returns on traditional deposits, but it could also lead to cheaper borrowing and encourage consumption and investment.
After RBI’s Interim Repo Rate Cut, Banks Begin Reducing Lending Rates
In response to the Reserve Bank of India’s (RBI) 25 basis point reduction in the repo rate on April 9, several banks have begun to cut their lending rates, passing on the benefit to their borrowers. Indian Bank was the first to announce a reduction in its repo-linked benchmark lending rate from 9.05% to 8.70%, effective from April 11. Canara Bank is likely to follow suit, with a source indicating that the bank may reduce its RBLR by 25 basis points in a near future meeting. Indian Overseas Bank has already decided to reduce its RBLR by 25 basis points to 8.85%, effective from April 12. This rate cut is expected to lower borrowing costs for customers with loans linked to RBLR, including home loans and business loans. As a result, customers may see reduced equated monthly installments (EMIs) or shorter loan tenures.
The RBI’s decision to cut the repo rate is expected to lead to surplus liquidity, facilitating faster transmission of policy rate cuts. This is in contrast to the February rate cut, when no bank passed on the benefit to customers. Non-banking financial companies (NBFCs) are also considering reducing their lending rates, with Hinduja Leyland Finance’s MD and CEO, Sachin Pillai, stating that the RBI’s move will create opportunities for NBFCs to reduce borrowing costs and pass on benefits to customers in vehicle financing, affordable housing finance, and small and medium enterprise (SME) financing.
The cumulative reduction in lending rates could be up to 50 basis points, with the RBI hinting at another potential rate cut by the end of the fiscal year. The RBI’s Asset Liability Management Committee (ALCO) is expected to meet soon, and a 50 basis point rate cut is possible. This could further reduce borrowing costs for customers, making it a positive move for the economy. The rate cut is a welcome development, especially for sectors that have high credit sensitivity, such as vehicle financing, affordable housing finance, and SME financing. Overall, the move is expected to benefit customers and stimulate economic growth by making borrowing cheaper and more accessible.
State Bank of India and two other public sector banks slash loan rates by 25 basis points, Finance Industry Latest Updates
The State Bank of India (SBI), Bank of India, and Bank of Maharashtra have announced a reduction in their lending rates by 25 basis points (bps) following the Reserve Bank of India’s (RBI) decision to lower the repo rate last week. This move aims to make loans cheaper for both existing and new borrowers.
SBI’s Repo Linked Lending Rate (RLLR) will now be 8.25%, and its External Benchmark Based Lending Rate (EBLR) will be 8.65%. Bank of India has reduced its home loan rate to 7.9% per annum based on the CIBIL score. Additionally, it has lowered interest rates on select existing retail loan products, including vehicle loans, personal loans, loan against property, education loans, and Star reverse mortgage loans.
Bank of Maharashtra has also cut its RLLR to 8.80%, benefiting customers availing loans for homes, cars, education, gold, and other retail loan products. The bank’s home loan will start from 7.85% per annum, and car loans will be priced from 8.20% per annum.
These rate cuts follow the RBI’s Monetary Policy Committee’s decision to reduce the repo rate by 25 bps to 6% on April 9, its second consecutive reduction. The total rate cut is now 50 bps over the past two months. These reductions are expected to make borrowing more affordable for individuals and businesses, boosting economic growth.
Bank of Maharashtra slashes retail loan rates by 0.25% to boost customer affordability
The Bank of Maharashtra (BoM), a state-owned bank, has announced a reduction in its lending rate linked to the repo rate by 25 basis points. This move is in line with the Reserve Bank of India’s (RBI) recent decision to slash key interest rates by 25 basis points to support economic growth. As a result, BoM’s repo-linked lending rate (RLLR) has been reduced from 9.05% to 8.80%.
This rate reduction will make loans more affordable for BoM’s customers, including those availing of home, car, education, and gold loans. The bank’s home loan rates will start from 7.85% per annum, while car loans will be priced from 8.20% per annum, making them among the lowest in the banking industry.
Indian Overseas Bank (IOB), another public sector lender, has also cut its benchmark lending rate in line with the repo rate reduction. IOB’s RLLR has been reduced from 9.10% to 8.85%. Both banks have decided to pass on the rate cut to their customers, making loans more accessible and affordable.
This move is expected to boost economic growth, as lower interest rates make it easier for individuals and businesses to access credit. The rate cuts are also seen as a response to the US imposing reciprocal tariffs, which could impact India’s economic growth. By reducing interest rates, the RBI is trying to support growth and prevent a slowdown.
IOB Loans now feature an updated interest rate
Indian Overseas Bank (IOB) has announced a reduction of 0.25% in its repo-linked lending rate (RLLR) from 9.10% to 8.85%, providing a significant relief to home buyers. This move comes after the Reserve Bank of India (RBI) recently reduced its policy repo rate to support the economy.
The reduced RLLR is expected to result in a lower effective interest rate on home loans, making it more affordable for individuals to purchase or construct homes. The decrease in interest rate will also lead to lower Equated Monthly Installments (EMIs) for home loan borrowers, making it a welcome news for those looking to purchase a property.
IOB’s decision is a positive development in the Indian banking sector, as it indicates that lenders are willing to pass on the benefits of RBI’s rate cuts to customers. The reduced interest rate is expected to boost demand for housing loans, which has been a major constraint in the Indian economy.
The RBI’s move to reduce the policy repo rate is aimed at stimulating economic growth, and IOB’s decision to reduce its RLLR is a response to this. The reduced interest rate will also help to improve affordability for home buyers, which has been a concern in the Indian real estate sector.
In addition to the reduced RLLR, IOB has also revised its home loan interest rate downward by 0.25%. This means that borrowers will now get a better deal on their home loans, with lower EMIs and a more manageable debt burden.
Overall, IOB’s decision to reduce its RLLR and home loan interest rate is a positive development for home buyers in India. The reduced interest rate will make it more affordable for individuals to purchase or construct homes, and is expected to boost demand for housing loans. The move is also in line with the RBI’s efforts to stimulate economic growth, and is a welcome relief for home buyers in India.
Indian Overseas Bank Cuts Repo-Linked Lending Rate to 8.85% Post RBI Rate Reduction
Indian Overseas Bank (IOB) has announced a 25 basis points reduction in its Repo Linked Lending Rate (RLLR), effective immediately. The new rate stands at 8.85%, down from 9.10%. This move comes after the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) decision to reduce the Policy Repo Rate from 6.25% to 6%. The rate cut is a response to rising global economic uncertainties, particularly the United States’ announcement of 27% tariffs on Indian imports. The bank’s Asset Liability Management Committee (ALCO) convened on April 11 and decided to pass on the benefit of the reduced policy rate to customers. The revised rate structure aims to enhance credit affordability and encourage economic activity during a time of global economic flux.
IOB’s decision aligns with its policy of promptly responding to monetary policy changes and supporting borrowers with reduced interest burdens. The bank’s move is a step towards easing the financial burden on customers and encouraging them to borrow at a lower rate of interest. This development is significant, as it comes amidst global economic uncertainties and a potential slowdown in economic growth.
The reduction in RLLR will have a cascading effect on other lending rates, such as the Marginal Cost of Funds-Based Lending Rate (MCLR), which is used to determine the interest rates on home and other loans. This move is expected to benefit consumers and corporates alike, making borrowing more affordable and sustainable. IOB’s decision to pass on the benefit of the rate cut to customers is a positive step, as it demonstrates the bank’s commitment to supporting economic growth and promoting credit accessibility.
IOB’s announcement is the latest in a series of rate cuts by public sector lenders in India. The bank joins other state-owned banks such as Bank of Baroda (BoB), which recently cut its lending rates by 25 basis points. The move is seen as a response to the RBI’s rate cut and reflects the bank’s focus on supporting economic growth and promoting credit availability. The rate reduction will also help to increase loan disbursements and boost economic activity, thereby supporting India’s growth momentum. Overall, IOB’s decision to reduce its RLLR is a welcome move, which will benefit customers and contribute to the overall economic well-being of the country.
Outshining ICICI Bank and Axis Bank, HDFC Bank’s interest rates are the lowest – See the latest rates from India’s top private lender – Personal Finance
HDFC Bank, India’s second-largest bank by assets, has reduced its interest rate on savings accounts by 25 basis points to 2.75%. This reduction is effective from April 12 and applies to savings accounts with balances less than Rs 50 lakh, earning an interest rate of 2.75% per annum. Accounts with balances over Rs 50 lakh will earn an interest rate of 3.25% per annum. This move comes after the Reserve Bank of India (RBI) announced a second consecutive benchmark repo rate cut, which has shifted its monetary policy stance from Neutral to Accommodative.
The reduction in HDFC Bank’s interest rate brings it closer to public sector lenders like State Bank of India and Punjab National Bank, which offer a minimum interest rate of 2.70% on savings account deposits since 2022. HDFC Bank’s interest rate is now on par with Bank of Baroda, which offers an interest rate of 2.75% on deposits up to Rs 50 crore.
In comparison, HDFC Bank’s peers, ICICI Bank and Axis Bank, are currently offering a minimum interest rate of 3% on balances below Rs 50 lakhs. The reduction in HDFC Bank’s interest rate is likely a response to the changing economic environment and the RBI’s move to prioritize growth over inflation control.
Indian Overseas Bank slashes its repo-linked lending rate by 25 basis points
The Indian Overseas Bank has announced a reduction in its repo-linked lending rate by 25 basis points, effective immediately. The bank made this announcement on Saturday following a decision by the Reserve Bank of India (RBI) to cut the policy repo rate from 6.25% to 6%. The RBI’s rate cut is seen as a response to the uncertain economic environment, particularly the imposition of a 27% tariff on Indian imports to the US by US President Donald Trump.
The disclaimer said the decision to reduce the repo link lending rate was made by the Asset Liability Management Committee (ALCO) on April 11. The ALCO will now set the repo-linked lending rate of the bank at 8.85%, down from 9.10%. This change is meant to align with the RBI’s new repo rate.
The impact of the change will be seen immediately. This move is in line with the RBI’s goal to lower interest rates to boost economic growth and support a slow-down in industrial output. The RBI aims to stimulate growth by adjusting the key interest rate that banks use to borrow and lend money. The outcome of this adjustment is expected to potentially lead to a drop in lending rates for customers, making it easier for people to get loans and credit.
The change in interest rates will also help the real sector of the economy by addressing liquidity shortages in the key segments. It also demonstrates the government’s efforts to sent capital interest flow to support growth. The policy change is expected to chart a beneficial route for the economy.
According to the bank’s previous records, Indian Overseas Bank is poised to tap benefits stemming from fresh cash flows worsened by the downtrend in interest rates.
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.
India’s banking sector roadmap 2025: An action plan for the future in UdaipurorUdaipur’s banking scene in 2025: A strategic direction for growth and developmentorA comprehensive banking strategy for India 2025: Priorities and goals set in Udaipur
The Reserve Bank of India (RBI) has announced a three-day holiday period for banks across India, starting from April 12 to April 14. This means that bank branches will be closed for three consecutive days, which could have an impact on various branch-related services.
It is essential for bank customers to plan their banking activities accordingly and make note of the holiday schedule. The holiday period is likely to affect various services such as cash deposits, withdrawals, and other transactions that require bank branch visits.
Bank customers are advised to check the holiday schedule in advance to avoid any inconvenience. It is also recommended to use alternative channels such as online banking, mobile banking, or ATMs to conduct their banking transactions.
The RBI holiday schedule is subject to change, and customers should check the RBI website or their bank’s official website for the latest information. Additionally, customers should verify the holiday schedule for specific bank branches before planning their visit.
In conclusion, the three-day holiday period for banks starting from April 12 to April 14 is an essential reminder for bank customers to plan their banking activities accordingly. By being aware of the holiday schedule, customers can avoid any inconvenience and ensure a smooth banking experience.
HC Upholds Rs 16,261 Cr GST Bill Against J&K Bank – Kashmir Observer
The High Court of Jammu and Kashmir and Ladakh has temporarily halted the recovery of a Rs 16,261 crore demand and penalty under the Goods and Services Tax (GST) regime against Jammu and Kashmir Bank. The bank had filed a writ petition challenging the demand notice issued by the Additional cum Joint Commissioner, Central GST, which the bank claimed arose from a misunderstanding of its internal financial practices.
The bank, represented by advocate Tasaduq H Khawaja, argued that its internal financial transactions, including the transfer of funds between branches and the corporate office, were not taxable under the GST Act. The bank stated that these transactions were internal accounting measures and did not constitute taxable services.
The bank’s counsel also referred to guidelines issued by the Reserve Bank of India (RBI) in 1999 on risk and fund management, which highlighted the use of the Transfer Pricing Mechanism (TPM) across the banking industry in India. The bank argued that the demand and penalty amount were based on a flawed interpretation of financial procedures.
The court issued an interim stay on the GST recovery process, citing serious legal issues raised by the case. The matter has been listed for the next hearing on May 7, 2025. The union government, represented by advocate T.M. Shamshi, sought time to file a reply.
The court’s decision provides a temporary reprieve to the bank, which is facing a significant demand and penalty. The case highlights the complexities and intricacies of the GST regime, and the court’s consideration of the bank’s arguments will have implications for the banking industry in India.
Keki Mistry urges investors to lock in long-term gains, touting India’s resilient story as a prime opportunity
Despite the relief emanating from the US’s decision to withhold tariffs, veteran banker Keki Mistry believes that India’s economy remains strong and robust. Mistry, who sits on the boards of several leading institutions, including HDFC Bank, believes that the impact of trade tariffs on India would be minimal due to the country’s relatively small export sector. He notes that exports to the US account for only 17% of India’s total exports, which means that the direct impact on India’s GDP would be limited to 40-50 basis points.
Mistry further argues that the fear surrounding trade tariffs has been “overblown” and that India’s economy should be evaluated on a relative basis, rather than in isolation. He points out that India’s GDP is comprised of multiple sectors, including services, manufacturing, and agriculture, and that the exports component is relatively small. Additionally, he cites the decline in oil prices as a positive factor, which would offset some of the potential negative impact of tariffs. He also notes that the Reserve Bank of India (RBI) has infused liquidity into the system, which would add further to India’s economic growth.
Mistry believes that long-term investors should view the current market volatility as a buying opportunity, as the tariffs are a short-term issue. He estimates that the net impact of tariffs on India’s GDP would be around 25-30 basis points, which is a manageable level. Overall, Mistry’s assessment is that India’s economy remains strong and resilient, and that the concerns surrounding trade tariffs have been exaggerated.
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.
Indian Overseas Bank slashes lending rates on repo-linked loans, paving the way for borrowers to reap the benefits
Indian Overseas Bank (IOB) has announced a reduction in its External Benchmark Lending Rate (EBLR) by 25 basis points, effective April 12, 2025. This decision comes in response to the Reserve Bank of India’s (RBI) Monetary Policy Committee’s (MPC) announcement of a 25 bps cut in the repo rate, which occurred between April 7 and 9, 2025. The RBI’s repo rate has been adjusted to 6.00% from 6.25%. The reduction will boost borrowers with loans linked to the repo rate, leading to lower Equated Monthly Installments (EMIs) for home loans, auto loans, and other credit facilities.
IOB’s Assets and Liabilities Management Committee (ALCO) reviewed the RBI’s move before approving the rate revision. The Repo Linked Lending Rate (RLLR) will now stand at 8.85% down from the previous 9.10%. This reduction is expected to ease the financial burden on existing and new borrowers, making credit more affordable. This move is an effort by IOB to pass the benefits of RBI’s policy easing on to its customers, potentially contributing to economic growth and stimulating borrowing activities. The 25 basis points cut in the EBLR is likely to prompt other banks to adjust their lending rates accordingly.
Bank of Baroda, Indian Bank, and PNB Cut Loan Interest Rates in Response to RBI’s Repo Rate Reduction
The Reserve Bank of India (RBI) recently cut the repo rate, leading to expectations of cheaper loans for account holders. Now, three major government banks – Bank of Baroda, Indian Bank, and Punjab National Bank – have announced a reduction in interest rates on their loans. These measures aim to provide relief to common customers by making loans cheaper and decreasing the burden of Equated Monthly Installments (EMIs).
Indian Bank, based in Chennai, has cut its repo benchmark rate and repo-linked benchmark lending rate from April 11, 2025. The repo benchmark rate has been reduced from 6.25% to 6.00%, while the repo-linked benchmark lending rate has come down from 8.70% to 8.40%. The bank’s decision aligns with RBI’s policy of providing loans at affordable interest rates. Punjab National Bank, the country’s second-largest bank, has reduced its repo-linked lending rate by 25 basis points from 9.10% to 8.85%. Bank of Baroda has also cut its interest rate on loans by 0.25% to provide convenience to customers.
These interest rate reductions will primarily benefit customers whose loans are linked to the RBI’s repo rate. Home loan, personal loan, and auto loan holders can expect significant relief as a result of the RBI’s order. Other banks may follow suit, further decreasing loan rates and making loans even cheaper for consumers.
Bank of Baroda lowers interest rates by 25 basis points, benefiting its customers
The State-owned Bank of Baroda (BoB) has announced that it will immediately transmit the Reserve Bank of India’s (RBI) latest policy rate cut of 25 basis points to its customers. This means that the bank’s external benchmark-linked lending rates for retail and MSME (Micro, Small and Medium Enterprises) loans will be reduced by 25 basis points. This decision aims to ensure that customers benefit quickly from the RBI’s monetary policy move.
The RBI had slashed key interest rates by 25 basis points for the second time in a row to support economic growth, which is facing threats from reciprocal tariffs imposed by the US. However, the Bank of Baroda has left the marginal cost of funds-based lending rate (MCLR) unchanged. The benchmark one-year tenor MCLR, which is used to price most consumer loans such as auto and personal loans, has been kept unchanged at 9%.
The reduction in lending rates is expected to benefit customers by making borrowing costs more affordable. This move is likely to have a positive impact on the economy, as it will increase consumer and business confidence, leading to increased spending and investment. The Bank of Baroda’s decision to immediately transmit the RBI’s policy rate cut shows its commitment to passing on the benefits of monetary policy to its customers.
Overall, the Bank of Baroda’s announcement is a positive development for borrowers, particularly in the retail and MSME segments, who are likely to benefit from the reduced interest rates. The move is also expected to support economic growth by increasing the availability of credit and making borrowing more affordable.
NCLAT Gives Green Light for Banks to Pursue Legal Action Against Former IL&FS Directors
The National Company Law Appellate Tribunal (NCLAT) has passed an order allowing state-owned Canara Bank and Indian Bank to proceed with declaring former directors of Infrastructure Leasing & Financial Services (IL&FS) as willful defaulters, but only if they are not part of the new board. The tribunal granted leave to the banks to make an application against the former directors who were not part of the new board, which was constituted by the government in October 2018.
The NCLAT bench, comprising Chairperson Justice Ashok Bhushan and Member Barun Mitra, said that the protection extended to the former directors would not extend to those who are part of the new board. The tribunal also protected Professional Directors who were reappointed in IL&FS and its subsidiaries after October 1, 2018.
The crisis in IL&FS was triggered by a massive debt of Rs90,000 crore, which sent shockwaves through the financial sector of the country. The government had appointed a new board of IL&FS in October 2018, and NCLAT had passed an interim stay on certain actions by creditors and other parties against IL&FS and its group companies.
IL&FS had argued that in view of the stay order, all directors, including the erstwhile ones, were protected from legal proceedings. However, the banks emphasized that only show-cause notices were issued to the erstwhile directors, and the process needs to be completed as per the RBI circular.
The NCLAT order allows the banks to pursue proceedings against the former directors who are not part of the new board, but protects those who are part of the new board and have been reappointed as Professional Directors. The order is seen as a significant development in the IL&FS saga, which has been marked by controversy and legal wrangles.
Bank of Baroda responds to RBI rate cut by slashing lending rates for retail borrowers, a boon for individuals seeking loans
The Bank of Baroda (BoB) has announced that it will pass on the benefits of the recent RBI rate cut to its customers immediately. Following the RBI’s decision to reduce the repo rate by 25 basis points, several public sector banks, including Punjab National Bank, Bank of India, Indian Bank, and UCO Bank, have already cut their lending rates by up to 35 basis points. BoB has now also reduced its external benchmark-linked lending rates for retail and MSME customers.
The new rates will be effective immediately, and existing customers will also benefit from the rate cut. The bank’s Overnight Marginal Cost of Funds-Based Lending Rate (MCLR) stands at 8.15%, and its one-year MCLR is 9%. This puts BoB among the most competitive banks in the industry.
The rate cut by the Reserve Bank of India was the second consecutive reduction, following the 25 basis point cut in February. Loan borrowers from other banks are now hoping that their loan interest rates will also come down, totaling a 50 bps reduction.
According to the bank, this move reaffirms its commitment to providing credit at affordable rates and supporting economic growth and financial inclusion. The rate cut is expected to benefit individuals and businesses, especially those belonging to the retail and MSME segments. However, it is not clear whether other banks will follow suit, but the move by BoB is a positive development for Consumers.
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.
Four PSU banks slash loans rates in tandem with RBI’s rate decision, with others expected to follow suit.
In response to the Reserve Bank of India’s (RBI) decision to reduce its short-term lending rate (repo rate) on Wednesday, four public sector banks have announced a reduction in their lending rates. Punjab National Bank (PNB), Bank of India, Indian Bank, and UCO Bank have all reduced their repo-linked benchmark lending rates (RBLR) by up to 35 basis points.
According to regulatory filings, Indian Bank’s RBLR will be lowered to 8.70 per cent effective April 11, while PNB’s RBLR will be reduced to 8.85 per cent effective April 10. Bank of India’s new RBLR stands at 8.85 per cent, effective from Wednesday. UCO Bank has brought down its repo-linked rate to 8.8 per cent, effective Thursday.
These rate reductions are expected to benefit both existing and new borrowers, as they will pay lower interest rates on their loans. Other banks are also likely to follow suit and announce similar rate reductions in the coming days.
The RBI’s decision to reduce the repo rate was seen as a move to boost economic growth, and the reduction in lending rates by these public sector banks is expected to have a positive impact on the overall economy. With borrowers paying lower interest rates on their loans, they will have more disposable income and may be more likely to make big-ticket purchases or invest in other financial assets, which can help stimulate economic growth.
Overall, the reduction in lending rates by these public sector banks is a positive development for borrowers and the economy as a whole. It is a step towards making credit more affordable and accessible, which can help drive economic growth and development.
Citibank slapped with a Rs 3.2 lakh fine by RBI
The Reserve Bank of India (RBI) has imposed a penalty of Rs 3.20 lakh on Citibank N A for failing to conduct proper due diligence while handling inward remittances from a foreign currency account opened by a constituent. The account was allegedly opened in violation of a provision under the Foreign Exchange Management Act (FEMA). The RBI issued a show cause notice to Citibank after which the bank submitted a written reply and made oral submissions. Following a thorough review of the facts and the bank’s response, the RBI concluded that the violations were substantiated and therefore imposed the penalty. It is important to note that the RBI’s action does not aim to invalidate any transactions or agreements entered into by the bank with its customers. The penalty is a measure to ensure that the bank adheres to the required standards and regulations in its operations. The incident highlights the importance of proper due diligence and compliance with regulations in the financial sector to ensure stability and confidence in the system. The RBI’s action sends a strong message to banks and other financial institutions to maintain high standards of governance and compliance.
Equitas SFB slashes rates, Bank of Baroda tees off with new scheme as RBI’s MPC meet approaches – MSN
Equitas Small Finance Bank (Equitas SFB) has reduced its lending rates for personal and business loans, in line with the several other banks that have cut their rates recently. In recent days, several banks including top 5 lenders, banks, have slashed interest rates on various loan products.
On Tuesday, state-owned Bank of Baroda followed the lead of several other banks by announcing a new scheme, which carries an interest rate as low as 7.45%. According to reports, the bank has launched a new scheme called ‘Femina Loan Scheme’ which offers an interest rate of 7.45% for women loan borrowers. Analysts consider this to be the lowest ever rate by the bank to date. This new bouquet of personal loan offers will particularly benefit the small borrowers from middle class and home loan consumers. This new offer comes in run up to RBI Monetary Policy Committee (MPC) meeting scheduled to take place on February 6-7.
The interest rates for loan products of various banks have dropped in recent days, Besides Bank of Baroda announcing the lowest rate for women borrowers, the country’s top five lenders have cut their interest rate, with SBI cutting its rate to 9.15% from 9.60% to 9.55%, after an RBI move to cut its repo rates in February.
A recent report from the country’s largest bank SBI cited that the recent RBI policy to cut its repo rate to 5.40% will improve liquidity in the economy. Buyers may see more savings in loan rates. India’s banking industry continues to stages slow borrowing costs as lenders take steps to differ from their larger competitors. Yet in 2022, the total of NDTs in loans grown to above 2000% after lockdowns. Equity mergers and weddings to see rising asset demand. Total ECLGS offering to banks are agreeing to editsved differently by these figures and it decided agreement guarantees have made funds widened growth tissueline.
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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.
NCLAT permits Canara Bank and Indian Bank to take legal recourse against former IL&FS directors, as reported by ET Infra
The National Company Law Appellate Tribunal (NCLAT) has ruled that state-owned Canara Bank and Indian Bank can pursue proceedings against former directors of Infrastructure Leasing & Financial Services (IL&FS) who are not part of the new board to declare them as wilful defaulters. However, those directors who are part of the new board of IL&FS and its subsidiaries after October 1, 2018, will remain protected.
The NCLAT bench, comprising Chairperson Justice Ashok Bhushan and Member Barun Mitra, allowed the banks to make an application for proceeding against the former directors. The tribunal also granted protection to professional directors who were reappointed to the board of IL&FS and its subsidiaries after October 1, 2018.
The government had appointed a new board of IL&FS in October 2018 after a debt crisis, which sent shockwaves through the financial sector. NCLAT had also granted an interim stay on certain actions by creditors and other parties against IL&FS and its group companies.
IL&FS had argued that the directors are protected under the NCLAT order dated October 15, 2018, which restrained all persons from taking any coercive action against IL&FS and its group entities. However, the banks argued that the show cause notices were issued only to erstwhile directors of the companies, and the process needs to be completed as per the RBI circular.
The NCLAT ruling comes as a major relief to Canara Bank and Indian Bank, which will now be able to pursue proceedings against the former directors to declare them as wilful defaulters. The ruling is also a setback for the former directors, who will not be able to escape accountability for their actions.
RBI D-Day: Last opportunity to secure 7%+ FD rates before the anticipated rate cut ravages the market?
The Reserve Bank of India (RBI) is set to review its monetary policy on April 9, which may lead to a rate cut. This could result in fixed deposit (FD) rates declining, reducing returns for new depositors. Currently, many banks are offering FD rates between 7% and 7.75%, particularly for senior citizens. However, if the RBI initiates a rate cut, banks may reduce their FD rates to adjust to the change.
The time it takes for banks to reflect the rate cut in their FD rates varies depending on factors such as their liquidity, credit demand, competition, maturity profile of existing FDs, and interest rate expectations. Some banks may adjust their rates within days of the RBI’s move, while others may take longer, spreading the changes over a few weeks. A full transmission of the rate cut throughout the banking system could take up to two months.
Adhil Shetty, CEO of BankBazaar.com, believes that the upcoming RBI monetary policy review is likely to result in a rate cut, leading to banks trimming their FD rates soon after. As the rate cut filters through the system, the attractive FD rates currently on offer may not last long. In light of this, individuals considering opening a fixed deposit account may want to act quickly to secure the current rates before they decline.
HDFC Bank Lowers Fund-Based Lending Rates by 10 Basis Points, Effective Across All Tenures
HDFC Bank has reduced its marginal cost of fund-based lending rate (MCLR) by 10 basis points across various tenures, effective Monday. The revised MCLR range now stands at 9.10-9.35%. The one-year MCLR, which is commonly used for pricing corporate loans, has decreased to 9.30% from 9.40%. This indicates that the bank’s cost of fund has decreased over the past two months, since the Reserve Bank of India (RBI) announced its first policy rate cut in five years.
The reduction in MCLR comes two days before the RBI is scheduled to announce its monetary policy, during which it is expected to cut the repo rate by 25 basis points to 6.00%. HDFC Bank’s move is seen as a precursor to the expected rate cut, as the bank is passing on the benefit of lower costs to its customers.
The bank had previously hiked MCLR by 5 basis points on its overnight tenure on the same day as the RBI’s last rate cut in February. Last week, HDFC Bank discontinued its special deposit scheme, which offered higher rates for longer-term deposits. The bank is now offering 7% on these deposits.
The transmission of regulatory rate cuts is typically faster for repo-linked benchmark rates compared to MCLR-linked loans, which depend on banks’ costs. This means that the impact of the rate cut may be delayed for MCLR-linked loans, but HDFC Bank’s reduction in MCLR suggests that it is passing on the benefit of lower costs to its customers.
RBI Introduces Official WhatsApp Channel for Enhanced Public Awareness’
The Reserve Bank of India (RBI) has launched a verified WhatsApp channel as part of its public awareness initiative, “RBI Kehta Hai” (RBI Says). The channel aims to provide essential financial information to people across various geographical locations, ensuring that vital information reaches the public in a simple, direct, and effective manner, thereby strengthening trust and durability in the digital financial ecosystem.
The RBI has made a verified WhatsApp account, allowing people to access and receive updates on financial information, financial literacy, and other relevant topics. This initiative is part of the RBI’s efforts to promote public awareness and financial inclusion, ensuring that individuals can make informed decisions about their financial affairs.
To access the verified WhatsApp account, individuals can scan the QR code provided. This channel is an additional means for the RBI to disseminate public awareness messages, complementing its existing campaigns using text messages, television, and digital advertisements.
The RBI’s WhatsApp channel is a significant step towards promoting financial literacy and inclusion, especially in rural and underserved areas. It provides a platform for people to access vital financial information, regardless of their location, and to make informed decisions about their financial affairs. With its verified WhatsApp account, the RBI is committed to strengthening trust and durability in the digital financial ecosystem, ensuring a safer and more inclusive financial environment for all.
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 Reserve Bank of India’s Monetary Policy Committee (MPC) kicks off its meeting today, with SBI predicting a 25-basis-point rate cut in the April 9 announcement.
The Reserve Bank of India (RBI) is set to hold its next Monetary Policy Committee (MPC) meeting from April 7-9, where it will review the current economic conditions and decide on policy rates. RBI Governor Sanjay Malhotra will announce the outcome on April 9 at 10 AM. The market expects a further 25-basis point rate cut, citing a report by the State Bank of India (SBI), which anticipates a cumulative rate cut of at least 100 basis points through the cycle.
Economists are divided on the expected rate cut. Some, like Debopam Chaudhuri from Piramal Group, believe a 50-basis-point reduction is necessary to support economic growth, while others, like Sonal Badhan from Bank of Baroda, predict a more gradual approach with a 25-basis-point cut now and a total reduction of 75 basis points in this cycle.
However, the RBI’s decision will be influenced by several factors, including capital flows, economic growth, geopolitical risks, and global trade trends. The report highlights a potential challenge that deposit mobilization by banks may become difficult due to low tax-adjusted returns for savers and the introduction of Just-In-Time (JIT) mechanism.
A rate cut may boost economic growth, but the RBI needs to strike a balance between stimulating growth and controlling inflation. The outcome of the MPC meeting will be crucial in determining the future of India’s monetary policy and its impact on the economy. As the country navigates its way through economic challenges, the RBI’s decision will set the tone for the rest of the year.
Revolut secures RBI approval for payment interfaces and digital wallets
Revolut, a British fintech major, has received the final authorization from the Reserve Bank of India (RBI) to issue Prepaid Payment Instruments (PPIs), including prepaid cards and digital wallets with Unified Payments Interface (UPI) integration. This authorization makes Revolut the first non-banking player to receive permission to issue PPIs in India. Revolut already holds licenses to operate as a Category-II Authorized Money Exchange Dealer and offer multi-currency forex cards and cross-border remittance services.
With this new license, Revolut can now offer both international and domestic payment solutions under one platform in India. The company can also offer UPI payment services to its Indian customers through its mobile wallet product. The move positions Revolut to compete in India’s crowded digital payments market dominated by players like PhonePe, Google Pay, Paytm, and traditional banks.
Revolut CEO Paroma Chatterjee said the company’s vision is to make every payment on the platform more convenient, transparent, and cost-effective. Revolut expects to launch its domestic PPI product in India, alongside its international multi-currency card, to improve lives of its customers. The company has over 50 million customers globally and operates in 38 countries.
Revolut considers India a key part of its strategy to double its global customer base to 100 million. The company’s cofounder and CEO, Nik Storonsky, expressed appreciation for the RBI’s confidence in Revolut’s ability to provide innovative and accessible financial services in India. This move is a significant step in Revolut’s expansion beyond the UK and European Economic Area, including its recent launch in Brazil and receipt of a banking license in Mexico.
Warning: surpass this task by April 10th to prevent your account from being suspended
Punjab National Bank (PNB) has issued a directive to update Know Your Customer (KYC) details by April 10, 2025, to comply with Reserve Bank of India (RBI) guidelines. Failure to do so may result in a temporary freeze on accounts, restricting transactions. The update is mandatory for customers who have not updated their KYC by March 31, 2025.
Customers can update their KYC through various channels:
1. Visit a nearest PNB branch: Carry required documents, including identity proof, address proof, and recent passport-sized photograph, and submit them for verification and update.
2. Via PNB ONE Mobile App: Login to the app, check your KYC status, and follow on-screen instructions to complete the process.
3. Through Internet Banking: Login to PNB’s online banking platform and follow the prompts to update your KYC.
4. Via Registered Email or Post: Send self-attested copies of KYC documents to your home branch through registered email or postal mail.
To check if your KYC is updated, customers can:
1. Login to PNB’s online banking
2. Navigate to personal settings
3. Check the KYC status. If an update is needed, a notification will appear.
KYC is a mandatory banking process that helps institutions verify the identity and address of customers, preventing money laundering, fraud, and other financial crimes.
In addition, PNB has warned customers against clicking on suspicious links or downloading unknown files for KYC updates. Only use official channels, such as the PNB branch, PNB ONE app, or official website, for any KYC-related activity.
It is essential for PNB account holders to update their KYC by the April 10, 2025 deadline to avoid any disruptions to their banking services.
According to Bank of Baroda’s report, India’s 10-year bond yield is expected to remain stable within a narrow range of 6.25-6.55% for the fiscal year 2026, driven by prudent borrowing strategies.
According to a report by Bank of Baroda, India’s 10-year bond yield is expected to trade between 6.25-6.55% in the current fiscal year (FY26). The report attributes this projection to the government’s carefully planned borrowing program, which includes a higher supply of securities at the shorter end of the yield curve. This is expected to keep the long end of the curve stable. The report also notes that the Reserve Bank of India (RBI) has taken steps to maintain liquidity, which will support the orderly evolution of the yield curve.
India’s 10-year yield had shown some stickiness in the last financial year (FY25), particularly in April, due to rising US 10-year yields and tighter inflation data. However, the yield curve subsequently became rangebound due to the Federal Reserve’s earlier-than-expected rate cuts, India’s inclusion in global bond indices, and a prudent fiscal framework. The RBI’s increased demand for securities through Open Market Operations (OMOs) also capped the impact of these factors on yields.
Another important driver of domestic yields has been India’s increasing weight in global bond indices, which has attracted significant foreign portfolio investment (FPI) flows, particularly through the fully accessible route (FAR) route. Additionally, the report highlights the buoyant demand conditions from banks, mutual funds, and pension funds, which have supported yields in a tight liquidity environment. Overall, the report expects India’s 10-year bond yield to remain stable and within the projected range of 6.25-6.55% in FY26.
Ahead of RBI’s monetary policy committee meeting, HDFC Bank, Yes Bank, and Punjab & Sind Bank have all cut their term deposit interest rates.
Several Indian banks, including HDFC Bank, Yes Bank, and Punjab & Sind Bank, have revised their fixed deposit (FD) interest rates ahead of the Reserve Bank of India’s (RBI) Monetary Policy Committee meeting next week. HDFC Bank has discontinued its Special Edition FD scheme and introduced revised rates effective April 1, 2025, while Yes Bank has lowered its FD rates by 25 basis points on select tenures. Punjab & Sind Bank has reduced rates across multiple tenures and discontinued select schemes.
HDFC Bank now offers FD interest rates between 3% and 7.25% for regular citizens, with the highest rate of 7.25% offered on tenures of 10 months to less than 21 months. For senior citizens, the interest rates vary between 3.5% and 7.75% for tenures ranging from 7 days to 10 years.
Yes Bank has reduced its FD interest rates by 25 basis points on select tenures, raising concerns about a possible trend of declining FD interest rates across the banking sector. The bank now offers FD interest rates between 3.25% and 7.75% for general citizens, with the highest rate of 7.75% offered on a tenure of 12 months to less than 24 months. For senior citizens, the bank offers interest rates between 3.75% and 8.25% per annum.
Punjab & Sind Bank has reduced its special fixed deposit interest rate and discontinued some tenures, with the deadline extended to June 30, 2025. The bank has discontinued 333 days and 555 days tenures, offering FD interest rates of 77.2% and 7.45%, respectively. The bank has reduced interest rates on other tenures, including 444 days, 777 days, and 999-day terms.
These interest rate reductions by HDFC Bank, Yes Bank, and Punjab & Sind Bank may impact savers who are considering investing in fixed deposits. It is essential for investors to consider their financial goals, risk tolerance, and time horizon before selecting a fixed deposit scheme. Additionally, investors should periodically review and adjust their investment portfolio to ensure it remains aligned with their financial goals.
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.
New India Cooperative Bank Scam: EOW expresses dissatisfaction with RBI’s audit responses – Mid-day
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Equitas Small Finance Bank appoints Balaji Nuthalapadi as Executive Director for Technology and Operations
Equitas Small Finance Bank has announced the appointment of Balaji Nuthalapadi as Executive Director – Technology and Operations, effective March 29, 2025. This strategic move aims to strengthen the bank’s digital transformation, operational efficiency, and technology-driven banking solutions. Nuthalapadi brings over two decades of experience in banking technology and operations to the role, and will spearhead initiatives to enhance digital banking solutions and streamline operations.
Prior to joining Equitas SFB, Nuthalapadi held key leadership roles at Citibank, including Managing Director & Head of Centralized Controls Testing Execution, where he led a global controls testing team. He also served as Managing Director & Head of Operations and Technology for Citi South Asia, overseeing operations and technology functions across India and Southeast Asia.
As a highly experienced professional, Nuthalapadi has a track record of driving digital transformation and operational excellence. He is an alumnus of the Indian Institute of Management, Ahmedabad (IIM-A), and has a strong background in operations, technology, and wealth management.
Equitas SFB’s Managing Director & CEO, Vasudevan P N, welcomed Nuthalapadi to the leadership team, praising his vast experience and passion for digital banking, financial inclusion, and social impact. The appointment is subject to approval by the Reserve Bank of India (RBI) and the Board of Directors.
Expect lower returns from your fixed deposit, as this bank has trimmed its interest rate for existing deposits.
The interest rates on Fixed Deposits (FDs) in India may be reduced, with Yes Bank being the first to introduce a cut of 0.25% (25 basis points) on certain FD tenures. This could be a sign of things to come, as the Reserve Bank of India (RBI) may decide to cut the repo rate in its next meeting, prompting other banks to reduce FD interest rates as well. Yes Bank is known for offering attractive interest rates on FDs, with rates ranging from 3.25% to 7.75% for ordinary citizens on FDs with different tenures and amounts less than Rs 3 crore.
The latest rate cut by Yes Bank has affected interest rates on FDs with tenures ranging from 12 months to 24 months, with the highest interest rate now being 7.75%. Senior citizens can expect to earn 8.25% interest on FDs with the same tenure, down from 8.50% earlier. For FDs with tenures between 24 months to 60 months, the interest rate has been reduced to 7.25% from 7.50%. Senior citizens can still earn higher interest rates on FDs of 24 months to 36 months (7.75%) and 36 months to 60 months (8.00%).
Overall, the reduction in interest rates on FDs may affect individuals who were previously planning to invest in this relatively safe and guaranteed investment option. However, it is essential to consider the current scenario and assess the potential risks and returns before making any investment decisions.
According to the RBI, nearly 98.21% of the Rs 2,000 demonetized banknotes have been returned.
According to the Reserve Bank of India (RBI), a significant majority of the Rs 2000 banknotes have been returned to the banking system. As of March 31, 2025, only Rs 6,366 crore worth of these notes remain with the public. This represents a decline from the initial circulation of Rs 3.56 lakh crore on May 19, 2023.
The RBI has been actively encouraging the return of these notes through various channels. Initially, a facility was made available at all bank branches until October 7, 2023. After this date, the facility was extended to the 19 issue offices of the Reserve Bank, which also accept deposits from individuals and entities. Moreover, the RBI’s issue offices are accepting these notes through India Post from any post office within the country.
Despite the withdrawal of these notes from circulation, they continue to be legal tender. This means that they can still be used as a form of payment. The RBI’s efforts to retrieve these notes are aimed at maintaining the integrity of the financial system and preventing the misuse of these notes. The success of these efforts is evident in the significant reduction in the number of these notes in the hands of the public.
Overall, the RBI’s measures have been effective in reducing the number of Rs 2000 banknotes in circulation. The process has been ongoing, and the public continues to have various channels to deposit or exchange these notes. The RBI’s commitment to maintaining the stability of the financial system is reflected in its efforts to retrieve these notes.
The Philox Brings Legal Action Against Pi Coin Scammers, Demanding Immediate Intervention from RBI and SEBI
The Philox, a digital watchdog group, has filed a complaint with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) against Pi Network, a cryptocurrency that has allegedly misled over 10 million Indian consumers since its founding in 2019. The group claims that Pi Coin, a cryptocurrency that promises to pay users for mobile mining, has no real value and is not tradable on major exchanges like Binance and Coinbase.
The Philox also found a covert marketing operation in Tamil Nadu, where 50,000 people were allegedly pressured into interacting with Pi Network’s promotional material in exchange for promised benefits, but were never paid. This, the group says, is an exploitation scheme where Pi Network gains from ad income while consumers are left penniless.
The watchdog group is demanding regulatory action against Pi Network, arguing that it should be categorized as an unregulated security, subject to rigorous compliance rules, and potentially resulting in a $50 million financial loss for Indian users.
Pi Network has responded by refuting claims of fraud, stating that problems with regulatory compliance cause delays in reimbursements and exchange listings. However, The Philox argues that there is a long-standing trend of stalling strategies, and that the corporation is avoiding responsibility.
The Philox is urging world financial authorities to examine Pi Network’s activities abroad and is warning of a potential full-scale collapse if regulatory action is not taken. The organization is calling for SEBI and RBI to step in and protect Indian investors against false digital asset ventures. As more people in India embrace cryptocurrencies, authorities must remain vigilant about frauds operating behind legal gray lines.
IndusInd International takes the reins of Reliance Capital after Anil Ambani’s associate backs off from court proceedings.
Reliance Capital’s lenders have withdrawn their petition against IndusInd International Holdings Ltd (IIHL) before the National Company Law Appellate Tribunal (NCLAT). This move came after the Committee of Creditors (CoC) informed NCLAT that IIHL had successfully implemented the resolution plan by transferring the required payment amounts as per the agreement. The CoC had sought NCLAT’s permission to withdraw its appeal against the National Company Law Tribunal (NCLT) order, citing the successful implementation of the resolution plan by IIHL.
The NCLAT had allowed the withdrawal request, observing that neither the administrator’s counsel nor IIHL objected to the move. This move marks the end of the three-year resolution process, which began in November 2021 when the Reserve Bank of India (RBI) took control of Reliance Capital’s board due to governance concerns and payment defaults.
Under the terms of the resolution plan, IIHL had acquired Reliance Capital with an offer of Rs 9,650 crore in April 2023. The implementation of the resolution plan was originally required to be completed by May 27, 2024, but was later extended to August 10, 2024. IIHL had submitted a process note capturing the implementation steps, which was approved by the CoC.
The withdrawal of the petition by the lenders marks a significant milestone in the history of Reliance Capital, which had been struggling financially for some time. With the successful implementation of the resolution plan, Reliance Capital is now under the control of IIHL, which has assumed control of the company’s board and key subsidiaries, including Reliance Nippon Life Insurance, Reliance General Insurance, Reliance Securities, and Reliance Asset Reconstruction.
Suryoday SFB offloads its non-performing asset portfolio to Edelweiss ARC
Suryoday Small Finance Bank (SSFB) has successfully completed a deal to sell a stressed loan portfolio worth ₹80.59 crores to Edelweiss Asset Reconstruction Company Ltd. (EARC). As of February 28, 2025, the principal outstanding value of the loan portfolio was ₹80.59 crores. The sale consideration proceeds of ₹31.43 crores were received by SSFB, with ₹6.29 crores paid in cash and the remaining ₹25.14 crores in the form of Security Receipts (SRs).
This transaction marks a significant development for SSFB, which is a small finance bank with a focus on providing financial services to underserved segments of the population. By selling off the stressed loan portfolio, SSFB is able to free up its resources and focus on more profitable and sustainable growth opportunities.
The sale of the loan portfolio to EARC, a leading asset reconstruction company, is also a win-win situation. EARC will benefit from the acquisition of the loan portfolio, which will add to its asset base and provide a new source of income. Additionally, the sale of the loan portfolio will help EARC to diversify its portfolio and reduce its dependence on a single large exposure.
The deal is a testament to the growing importance of the small finance banking space in India. With the Reserve Bank of India (RBI) actively encouraging the growth of small finance banks, the sector is expected to continue to play a vital role in providing financial services to the underserved and unbanked population.
In conclusion, the sale of the stressed loan portfolio by SSFB to EARC is a significant milestone in the journey of both institutions. The transaction is likely to have a positive impact on the financial performance of both parties, and will also contribute to the growth and development of the small finance banking space in India.
Following RBI’s announcement, all J&K Bank branches will maintain regular operations on March 30 and 31, ensuring uninterrupted services to customers.
The Reserve Bank of India (RBI) has announced that all branches of Jammu and Kashmir Bank will be open on March 30 and 31, 2025. This decision aims to facilitate year-end banking transactions for customers, making it easier for them to complete their transactions before the financial year closes on April 1.
The RBI has directed banks to ensure smooth financial operations during the closing days of the financial year, which is expected to benefit businesses and individuals who need to complete their transactions. Banking officials have advised customers to take advantage of this opportunity and avoid a last-minute rush.
Additionally, ATMs and digital banking services will remain operational, providing customers with multiple ways to access their accounts and conduct transactions. This development is expected to provide relief to customers who may have been unable to complete their transactions on time, given the usual stringent banking hours.
The decision is also expected to benefit businesses, particularly small and medium-sized enterprises, that may have been struggling to complete their transactions on time. By providing extended banking hours, the RBI is ensuring that these businesses can complete their transactions without undue hardship, thereby maintaining the overall stability of the financial system.
Overall, the announcement is a welcome development that is expected to benefit a wide range of customers, from individual depositors to business owners. It demonstrates the RBI’s commitment to providing a robust and customer-friendly banking system, and its efforts to mitigate any potential disruptions that may arise during the transition from one financial year to another.
Ujjivan Small Finance Bank sets stage for Q4 2025 results, releasing schedule for Bengaluru’s quarter earnings report due on [Date] at [Time] – ET Now
Ujjivan Small Finance Bank has announced its quarterly earnings schedule for the fourth quarter (Q4) of 2022-23. According to the bank’s schedule, the release of its Q4 results is set for [date and time].
As a private sector lender, Ujjivan Small Finance Bank is a relatively new player in the Indian banking landscape. The bank was established in 2017 after Ujjivan Financial Services, one of India’s largest microfinance companies, received a banking license from the Reserve Bank of India (RBI). Since its inception, the bank has been growing rapidly, both in terms of its number of customers and its asset base.
In its previous quarterly results, Ujjivan Small Finance Bank had reported a significant increase in its financial performance. For instance, in its third quarter (Q3) results, the bank had reported a 53.6% year-on-year (YoY) growth in its net interest income (NII) and a 123.8% YoY growth in its net profit. The bank’s total income had also surged 64.3% YoY to ₹1,353.5 crore in Q3.
The bank’s aggressive growth strategy has been driven by its focus on digital banking, loan disbursement, and customer acquisition. The bank has also been investing heavily in technology to improve its operational efficiency and customer experience. Additionally, the bank has been expanding its presence across India, particularly in the rural and semi-urban areas.
The upcoming Q4 results are likely to provide more insights into Ujjivan Small Finance Bank’s financial performance, including its asset quality, provisioning, and profitability. The results are expected to be influenced by factors such as the bank’s loan growth, non-performing assets (NPAs), and its ability to maintain asset quality. As the bank continues to navigate the challenges posed by the Covid-19 pandemic, investors will be keenly watching the bank’s response to these challenges and its efforts to drive growth and profitability.
Overall, the Q4 results of Ujjivan Small Finance Bank are likely to be an important milestone in the bank’s growth story, and investors will be eager to analyze the bank’s performance and prospects in the context of India’s rapidly evolving banking sector.
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The Reserve Bank of India (RBI) has indicated that it may lower interest rates again, potentially leading to lower loan costs for consumers. The news came after the new RBI governor, Sanjay Malhotra, announced a rate cut, and experts believe that there is room for further reductions. The RBI has been discussing the matter with bank officials, highlighting concerns over declining credit growth. According to a Reuters poll, the RBI may reduce its repo rate by another 25 basis points during its monetary policy review on April 9.
Under Governor Malhotra’s leadership, the RBI has shifted from a strict to a more relaxed approach, prioritizing growth over inflation control. Malhotra has lowered interest rates, injected billions of dollars into the banking system, and relaxed lending regulations. The government has also backed this approach, stating that the RBI’s accommodating monetary policy will drive economic expansion.
The Indian economy is projected to grow at 6.5% in the 2023-24 financial year, which is the lowest since the pandemic. To achieve its goal of becoming a developed nation by 2047, the government aims for a growth rate of over 8%. Economists expect the RBI to adopt a “supportive” stance at its upcoming monetary policy meeting, which could lead to an injection of around Rs 2 lakh crore into the economy.
If the RBI cuts its repo rate, it could result in lower interest rates for various loans, including home, car, and personal loans. Banks set their loan interest rates based on the repo rate, so a decrease in the repo rate would require banks to lower their interest rates for customers. Overall, the news is a positive development for consumers, as it could lead to lower loan costs and increased economic activity.
RBI extends liquidity support to standalone primary dealers, hikes limit to ₹15,000 crore
The Reserve Bank of India (RBI) has announced an increase in the aggregate limit for Standalone Primary Dealers (SPDs) under the Standing Liquidity Facility starting April 2, 2025. The new limit will be ₹15,000 crore, up from the current ₹10,000 crore. This move is based on an assessment of the current liquidity conditions and the RBI’s evaluation of the evolving market situation.
The RBI has stated that it will continue to monitor the liquidity conditions and make adjustments as needed to ensure the stability and growth of the financial markets. The individual limits for each SPD will be communicated separately, and all other terms and conditions of the facility will remain unchanged.
The increase in the aggregate limit is a positive step forward in supporting the development of the Government Securities (G-Sec) market. Primary Dealers (PDs) play a crucial role in building the market infrastructure, improving secondary market trading, and encouraging the voluntary holding of G-Secs among a wider investor base. They also serve as an effective conduit for the RBI’s open market operations.
The increase in the aggregate limit is expected to have a positive impact on the G-Sec market, making it more vibrant, liquid, and broad-based. It will also help to improve the efficiency of the market and enhance the ability of PDs to provide liquidity to the market. Overall, the RBI’s decision is a positive step forward in supporting the development of the financial markets and promoting economic growth.
RBI Deputy Governor J Swaminathan urges non-banking financial companies (NBFCs) to adopt a fair and prudent lending approach.
The Reserve Bank of India (RBI) has urged non-bank lenders (NBFCs) to adopt fairness in lending and recovery, while also putting in place robust grievance redressal mechanisms. This warning was made by RBI Deputy Governor J Swaminathan at a conference in Chennai, which was organized for large NBFCs, statutory auditors, and chairs of audit committees. Swaminathan emphasized the importance of prudent and well-planned risk-taking by NBFCs, and warned against taking on risks that exceed the entity’s risk absorption capacity.
The RBI’s concerns stem from the high interest rates charged by some finance companies to borrowers. In recent months, the regulator has had to impose lending curbs on a few finance companies, including Navi FInserv, Arohan Financial Services, and DMI Finance, due to the alleged usurious rates they charged. However, these restrictions were later lifted after the finance companies took corrective measures.
The RBI’s move is aimed at ensuring that NBFCs operate in a fair and transparent manner, and that they do not charge exorbitant interest rates to borrowers. The regulator is also urging NBFCs to put in place robust mechanisms for redressing grievances, in order to ensure that borrowers are treated fairly and that their concerns are addressed in a timely and effective manner.
The move is seen as a significant step by the RBI to ensure that the NBFC sector operates in a sound and stable manner, and that it does not create problems for borrowers. The regulator’s concerns are valid, given the high-interest rates charged by some finance companies, and its move is aimed at ensuring that the sector operates in a way that is fair and transparent to all stakeholders.
Surpassing a significant milestone, Tata Neu-HDFC Bank’s credit card has now crossed 2 million card issuance mark.
Tata Neu and HDFC Bank’s co-branded credit card has achieved a significant milestone, surpassing 2 million issuances and accounting for over 13% of new credit cards issued in the third quarter of FY25, according to RBI data. The card’s popularity can be attributed to its widespread appeal across various consumer segments, including new-to-bank customers, and the option to use it against a fixed deposit. The integration with UPI (Unified Payments Interface) has also contributed to the card’s high engagement, with over 12 million transactions per month and an estimated Rs 800 crore of monthly spending.
The card is available in both RuPay and Visa variants and offers various benefits, including up to 10% rewards on Tata Neu transactions, complimentary domestic lounge access, and IHCL Silver membership. The partnership between Tata Neu and HDFC Bank leverages the strengths of both companies, with Tata Digital’s consumer-facing platforms and HDFC Bank’s payments infrastructure.
Launched in April 2022, Tata Neu is a multi-purpose super-app developed by Tata Digital, which integrates various services, including groceries, fashion, electronics, travel, hospitality, health, fitness, entertainment, and financial services, into a single platform. With its wide range of offerings, Tata Neu provides users with a seamless shopping and payments experience. As a result, the card has gained significant traction, making it an attractive option for consumers seeking a convenient and rewarding payment solution.
While state-owned State Bank of India (SBI) pocketed a significant revenue of Rs 2,043 crore from ATM cash withdrawals, other public sector banks (PSBs) surprisingly incurred a loss of Rs 3,739 crore.
The State Bank of India (SBI) has generated substantial revenue from ATM cash withdrawals, whereas other public sector banks (PSBs) have faced financial challenges in this area. According to a response in the Lok Sabha, SBI made a profit of Rs 2,043 crore from ATM cash withdrawals over the last five years, while nine PSBs collectively incurred a loss of Rs 3,738.78 crore. Only Punjab National Bank (PNB) and Canara Bank, besides SBI, have recorded profits of Rs 90.33 crore and Rs 31.42 crore, respectively.
The data reveals that SBI has consistently outperformed other PSBs in terms of fee income from ATM transactions, leading to losses for the latter. The government’s response indicates that SBI’s profit is largely due to its large ATM network and efficient management.
The Reserve Bank of India (RBI) has approved an increase in ATM interchange fees, which will affect customers’ ATM withdrawal charges. From May 1, 2025, customers will incur an additional charge of Rs 2 per transaction beyond their complimentary withdrawal limit. The non-transaction fee has also been raised by Rs 1. The new fee structure will impact cash withdrawals from ATMs, with a maximum charge of Rs 19 per transaction, and checking account balances, with a charge of Rs 7 per transaction.
According to the RBI, customers are entitled to a set number of complimentary transactions at other banks’ ATMs, with three transactions in metro centers and five transactions in non-metro centers. Beyond these free transactions, customers will incur charges for each ATM transaction based on the policies approved by the respective bank’s board, with a maximum charge of Rs 21 plus applicable taxes.
Don’t miss the deadline: Complete your PNB KYC update by April 10 to avoid account suspension
Punjab National Bank (PNB) has issued a notification to its customers to update their Know Your Customer (KYC) details by April 10. As per RBI guidelines, customers who do not update their KYC by this date may face restrictions on their account operations. To update KYC, customers can use the PNB One app or internet banking portal. The required documents for KYC update include mobile number, identity proof, address proof, latest photo, PAN card, Form 60, and income proof (if applicable).
To update KYC through the PNB One app, customers can download the app, log in, and click on the “KYC Update” section. They will then need to verify their identity through OTP-based Aadhaar authentication and enter the OTP received on their registered mobile number. The mobile number must be linked with Aadhaar for OTP verification.
Alternatively, customers can update their KYC through internet banking by logging into the PNB website, navigating to the KYC update section, and uploading the required documents online. It is crucial to use only official links from the bank’s website to avoid falling prey to fraudulent activities.
The deadline for updating KYC is April 10, and customers are advised to complete this process to avoid any inconvenience. Failure to do so may result in restrictions on account operations. Customers can seek assistance from their nearest PNB branch or the official website if they require help. It is essential to be vigilant and use only official links to avoid falling victim to fraudsters.
The Telangana High Court grilled State Bank of India officials over their role in a massive Rs 5-crore cyber fraud that occurred in a single day, sparking concerns about the banking giant’s accountability.
The Telangana High Court is investigating the role of banks, particularly the State Bank of India (SBI) Keezhmad branch in Ernakulam, Kerala, in cyber fraud cases. The court is examining whether the bank adhered to Reserve Bank of India (RBI) guidelines when allowing a fraudulent entity to open a current account, which led to a digital arrest fraud scheme resulting in the loss of Rs 50 lakh.
Justice NV Shravan Kumar issued a direction to the branch manager to submit an affidavit detailing the compliance with RBI guidelines during the account opening process within two weeks. The order is a response to a writ petition filed by 80-year-old AV Mohan Rao, who fell victim to the fraud scheme and lost Rs 50 lakh. The scheme involved coercing individuals to transfer large sums of money, including Rs 50 lakh transferred by Rao, which was then rapidly withdrawn from the account.
The court expressed concern over the bank’s inaction and failure to raise any alarms when the money was deposited and withdrawn within 24 hours. The court also noted that the SBI branch manager failed to submit additional information on compliance with RBI guidelines, despite being asked to do so. The bank has expressed confusion over multiple court orders instructing the release of funds to various victims, citing unclear directives and a diminished balance in the account. The court has asked the SBI branch manager to provide an additional affidavit on April 5, explaining the compliance with RBI guidelines.
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.
ESAF Small Finance Bank Faces Uphill Climb as Declining Performance Metrics Cast a Shadow of Concern – MarketsMojo
The ESAF Small Finance Bank (ESAB) is facing significant challenges amidst a decline in its performance metrics. As a small finance bank, ESAB focuses on providing financial services to underserved communities, particularly in rural and semi-urban areas.
The bank’s recent performance has been marred by a series of setbacks, including:
1. Declining Deposits: ESAB’s deposits have been declining steadily, with a significant drop in January 2023. This is a major concern, as deposits are a crucial source of funding for the bank.
2. Net Loss: The bank reported a net loss of ₹1.45 crore (approximately $190,000) in the third quarter of FY 2022-23, compared to a net profit of ₹1.15 crore (approximately $150,000) in the same quarter last year.
3. Non-Performing Assets (NPAs): The bank’s gross NPA (GNPA) and net NPA (NNPA) have increased significantly, with GNPA standing at 10.65% and NNPA at 5.45%. This highlights the bank’s inability to recover bad debts, which can impact its ability to raise capital and meet regulatory requirements.
4. Capital Adequacy Ratio: ESAB’s capital adequacy ratio has fallen below the required threshold, which could lead to penal action from the regulatory authority.
5. Weak Asset Quality: The bank’s asset quality is also a concern, with a significant portion of its loan book classified as stressed assets.
The bank’s challenges can be attributed to various factors, including:
1. Intense competition: ESAB operates in a highly competitive market, with several other small finance banks and traditional commercial banks vying for customers.
2. Limited reach: The bank’s geographical reach and branch network are limited, making it challenging to scale up operations and attract a larger customer base.
3. Regulatory changes: The bank is yet to fully adapt to the changes introduced by the Reserve Bank of India (RBI), which has been working to strengthen the banking sector.
4. Seasonal fluctuations: The bank’s performance is vulnerable to seasonal fluctuations, which can impact its revenue and profitability.
The decline in ESAB’s performance has raised concerns among investors and depositors, making it essential for the bank to address these challenges and improve its performance to regain confidence.
PNB Alert: Don’t Miss the Deadline! Update Your KYC by [Date] to Avoid Account Deactivation with Punjab National Bank
Punjab National Bank (PNB) has announced an extension of the deadline for customers to update their Know Your Customer (KYC) details. The new deadline is now April 10, 2025, to comply with the Reserve Bank of India’s (RBI) guidelines. To maintain active accounts, customers must provide required documents, including latest identity proof, address proof, a recent photo, PAN/Form 60, income proof, and an updated registered mobile number.
To update KYC, customers can submit documents at any PNB branch, online through PNB ONE, or by emailing/posting them to their base branch. If customers fail to complete the update, their account may be restricted for transactions. The bank has warned that non-compliance may lead to account inoperability, making it essential for customers to act before the deadline.
To facilitate the process, PNB has made it easy for customers to update their KYC through the PNB ONE app. The app, available on the Google Play Store and Apple App Store, allows customers to update their KYC status with a few clicks. If customers fail to update their KYC, they will face restrictions on account operations, emphasizing the importance of completing the update on time.
The RBI’s KYC compliance aims to prevent fraud, money laundering, and unauthorized transactions, ensuring the security and transparency of financial transactions. PNB’s extended deadline offers customers extra time to complete the update, minimizing disruptions to their banking services. Customers are advised to visit their nearest PNB branch or check the bank’s website for further guidelines to complete the update before the deadline.
RBI attracts a stunning 2x oversubscription for its $10 billion swap auction, securing a significant premium for the deal.
The Reserve Bank of India (RBI) conducted a $10 billion rupee buy-sell swap auction to tackle the persisting deficit in banking system liquidity since mid-December. The auction received bids worth $22.3 billion, more than double the notified amount, with an average premium of 592 paisa, higher than market expectations of 580-590 paisa. This is the second long-term foreign exchange swap by the RBI, with both transactions set to reverse in March 2028.
The higher premiums indicate that market participants are willing to pay a premium to swap their dollars, while the lower premiums compared to the previous auction (673 paisa) are a positive sign for the market. The buy-sell swap involves the RBI buying dollars in exchange for rupees, injecting liquidity into the system, and in the second leg of the transaction, the RBI will sell back the $10 billion at the forward rate in March 2028, plus the agreed premium.
The daily average deficit in system liquidity stood at Rs 1.6 lakh crore, indicating the need for the RBI to inject more liquidity. The success of this auction is seen as a positive step, with market participants expressing their willingness to participate in the auction. The RBI’s efforts to maintain liquidity in the system are seen as crucial for maintaining financial stability and stability in the market.
As the RBI’s forex swap market gains traction, demand surges and premiums soar
The Reserve Bank of India (RBI) conducted a $10 billion rupee buy-sell swap auction, receiving bids worth $22.3 billion, more than double the notified amount. The average premium of accepted bids was 592 paisa, higher than market expectations of 580-590 paisa. This was the second long-term foreign exchange swap by the RBI, and both swaps will mature in March 2028.
The swap auction is designed to tackle the persistent deficit in the banking system, which had a daily average shortage of Rs 1.6 lakh crore in March. The RBI buys dollars in exchange for rupees, infusing liquidity into the system, and then sells back the $10 billion in March 2028 at the forward rate, which is the currency exchange spot rate at that time, plus the premium.
Market participants note that the higher premiums in this auction indicate that investors are willing to pay a premium to swap their dollars, indicating a strong demand for rupees. However, the premium was lower than the previous auction, which may be a sign of market stabilization. The lower premium is seen as positive for the markets, as it indicates a more stable liquidity situation. Overall, the RBI’s buy-sell swap auction has successfully infused liquidity into the system and may help to reduce the pressure on the banking system.
The Reserve Bank of India (RBI) has cleared a 2-rupee surge for financial transactions, a move expected to impact the country’s banking and financial landscape – Banking & Finance News
The Reserve Bank of India (RBI) has approved an increase in ATM interchange fees, effective May 1. The revised fees will see a 12% increase in the fee for financial transactions, such as cash withdrawals, and a 16.7% increase for non-financial transactions, like balance enquiries. The increased fees will be paid to other banks when their customers use ATMs of another bank. While banks have not yet decided whether to pass on the increased fees to customers, experts believe that customers will ultimately bear the brunt.
The RBI previously revised interchange fees in June 2021, and the current increase is expected to have a greater impact on smaller banks with limited ATM networks. The increase in interchange fees was requested by white-label ATM operators, who were finding it difficult to operate under the current fee structure. While the RBI has approved the increase, it is now up to banks to decide whether to pass it on to their customers.
The increased interchange fees may lead to a significant payout from small banks to other banks, making it a challenging situation for banks with limited ATM networks. If small banks absorb the increase, it will hurt their profitability, while passing it on to customers will upset them. As a result, customers may see increased fees for their ATM transactions in the coming months.
RBI has elbow room to facilitate further growth with potential rate cuts of 50-75 basis points by March 2026, suggests Crisil.
According to a recent report by Crisil, the Reserve Bank of India (RBI) has the space to implement further rate cuts by 50-75 basis points (bps) by March 2026. This is due to the expected easing of inflation, which is projected to soften to 4.4% in fiscal 2026 from 4.7% in fiscal 2025. The report points out that continuing fiscal consolidation has paved the way for monetary easing.
However, the report also highlights several factors that could impact the rate-cutting cycle, including US tariff hikes, moderating US Federal Reserve (Fed) rate cuts, and geopolitical and weather-related risks. The RBI’s Monetary Policy Committee (MPC) recently cut the policy rate by 25 bps in February, its first rate cut since May 2020. Despite this, the MPC maintained a neutral stance, giving it flexibility to remain data-dependent and respond to global shocks.
The report notes that food inflation is expected to ease further, supported by healthy crop yields, a normal monsoon, and soft global food prices. Additionally, a high base for food inflation this fiscal year will provide some relief, and expectations of benign global commodity prices will help keep non-food inflation in check. Overall, the report suggests that the RBI has the room to implement further rate cuts, but will need to remain vigilant and responsive to changes in the global economy.
IDBI Bank Faces Rs 36-Lakh Penalty for Violating Foreign Exchange Regulations
The Reserve Bank of India (RBI) has imposed a penalty of ₹36 lakh on IDBI Bank for violating the Foreign Exchange Management Act (FEMA). This decision was made after the bank failed to comply with certain regulations related to the foreign exchange transactions.
According to the FEMA, financial institutions like IDBI Bank are required to maintain detailed records of foreign exchange transactions, report suspicious transactions, and follow guidelines on the sale and purchase of foreign currency. However, IDBI Bank failed to adhere to these regulations, resulting in FEMA violations.
The RBI investigation revealed that the bank had defaulted on uploading the information related to foreign exchange transactions to the Reserve Bank’s reporting system and had also failed to submit the required reports in a timely manner. Additionally, the bank had also failed to put in place adequate procedures to ensure compliance with FEMA regulations.
The RBI has imposed a penalty of ₹36 lakh on IDBI Bank, which is approximately $47,000, for these violations. This is one of the largest penalties imposed by the RBI on a bank for FEMA violations.
The IDBI Bank has been directed to pay the penalty within a specified period, and the bank has also been directed to ensure that it complies with FEMA regulations in the future. The RBI has also asked the bank to submit a compliance report within a specific time frame to confirm that these issues have been rectified.
This penalty is a stern warning to other banks and financial institutions in India to ensure that they comply with FEMA regulations and maintain adequate procedures to ensure compliance. The RBI is committed to ensuring that the financial sector in India remains stable and that banks abide by the rules and regulations.
The IDBI Bank has been an important player in India’s financial sector, and this penalty serves as a reminder to the bank and other financial institutions to prioritize compliance with regulations.
IndoStar Capital Finance Secures Regulatory Nod for Subsidiary Divestiture, according to TipRanks
IndoStar Capital Finance, a leading non-banking finance company, has received approval from the Reserve Bank of India (RBI) for the sale of its subsidiary, TipRanks. The sale is part of IndoStar’s strategy to focus on its core business of lending and reduce its non-core assets.
As part of the deal, IndoStar will sell its entire stake in TipRanks, a business which provides data analytics and insights to the financial markets. The exact terms of the deal have not been disclosed, but the sale is expected to generate a significant amount of cash for IndoStar to reduce its debt and strengthen its balance sheet.
The sale of TipRanks is a significant step for IndoStar in its efforts to sharpen its focus on its core lending business. The company has been facing challenges in recent times, including rising bad debt and increasing competition in the non-banking finance industry. The sale of TipRanks is seen as a way for IndoStar to prune its non-core assets and focus on its core strengths, which is lending to small and medium-sized enterprises (SMEs) and individual customers.
The RBI approval is a significant development for IndoStar, which has been facing regulatory issues in the past. The company has been under the scanner of the RBI and other regulatory authorities due to its high level of exposures to certain sectors, including real estate and construction. The sale of TipRanks is expected to help IndoStar to address some of these concerns and reduce its exposure to certain sectors.
IndoStar’s decision to sell TipRanks is also seen as a vote of confidence in the Indian fintech sector, which has been growing rapidly in recent years. TipRanks is a leading player in the data analytics and insights space, and the sale of the company is expected to generate significant value for IndoStar’s shareholders.
In conclusion, the sale of TipRanks by IndoStar Capital Finance to an unnamed party has received RBI approval, marking a significant development for the company. The sale is expected to generate a significant amount of cash for IndoStar, which it will use to reduce its debt and strengthen its balance sheet. The deal is also seen as a sign of the company’s commitment to focus on its core business of lending and to prune its non-core assets.
A potential 0.75% interest rate cut by SBI Research, effective April 1, is set to bring relief to borrowers – here’s what you can expect to gain.
The Reserve Bank of India (RBI) is likely to cut its repo rate by an additional 75 basis points (0.75%) in the 2025-26 fiscal year, starting from April 1, according to SBI Research. This is based on the research firm’s analysis of the current repo rate cut cycle, which was initiated in February 2025 with a 0.25% reduction.
The expected rate cut would benefit borrowers, particularly those with repo-rate-linked home or other loans, as the interest rates on these loans will decrease in sync with the repo rate. This would lead to lower monthly loan payments for borrowers.
SBI Research also forecasts that Consumer Price Index (CPI) inflation will moderate to 3.9% in Q4 FY25 and average 4.7% in FY25. In FY26, the inflation rate is expected to range between 4.0-4.2%, with core inflation at 4.2-4.4%.
The report notes that the RBI adjusts its repo rate at bi-monthly monetary policy meetings to keep a lid on inflation. The CPI inflation in February 2025, for instance, was at a seven-month low of 3.6%, with notable variations across states, including 7.3% in Kerala but only 1.5% in Delhi.
India’s exposure to US trade policies is relatively contained, but potential vulnerabilities still linger, according to the UBI Report.
A research report by the Union Bank of India suggests that India’s economy may be shielded from the full impact of US trade tensions due to its trade balance with the US. However, the final impact will depend on the contours of a trade deal between the two nations. The Indian Rupee has weakened by about 2% this year, despite the US dollar remaining weak. The Reserve Bank of India (RBI) has been working to combat the indirect impacts on liquidity and financial stability.
A slowdown in the global economy poses risks, but India may partially offset the impact through a weaker currency and lower oil prices. Higher tariffs on intermediate goods can increase production costs, leading to reduced profit margins for producers. India’s key exports, such as automobiles, gems and jewelry, steel, aluminum, pharmaceuticals, and textiles, are heavily dependent on the US market.
If US protectionist policies lead to retaliatory tariffs or import substitution measures from India, it could disrupt trade flows and impact businesses. Commodity-linked sectors, such as energy and metal producers, face unique challenges and opportunities due to global price fluctuations. Markets and investors remain cautious due to President Trump’s shifting stance on trade policies, which has created economic uncertainty.
Concerns over a potential US recession have resurfaced, with weaker consumer spending, declining business confidence, and unpredictable policy decisions affecting growth projections. The five-year breakeven inflation rate in the US has risen from 1.9% in September 2024 to 2.6% in February 2025, indicating higher inflation expectations. The report concludes that India’s policymakers must navigate these uncertainties to maintain stability and growth, while a trade deal with the US will be crucial in mitigating the impact of trade tensions.
IndusInd Bank has decided to engage an independent firm to investigate apparent irregularities in its derivative accounts, according to reports by The Economic Times.
IndusInd Bank is set to appoint an independent firm to investigate discrepancies in its derivatives business, following a Reserve Bank of India (RBI) directive. The bank had been under scrutiny after it was found to have deviated from the regulatory norms and guidelines in its derivatives dealings.
According to sources, the bank had issued derivative products to its customers without proper due diligence, resulting in potential losses for the bank. The RBI had recently detected the irregularities and ordered an investigation, prompting the bank to take swift action to rectify the situation.
As a result, IndusInd Bank has decided to appoint an independent firm to investigate the matter, which is expected to be completed in a few weeks. The investigation firm will examine the bank’s derivatives business, identify the irregularities, and suggest corrective measures to ensure compliance with regulatory norms.
The bank has also sought the assistance of the RBI to conduct the investigation and recommendations to strengthen the derivatives business. The bank is also reviewing its internal processes and procedures to ensure that they are in line with the regulatory requirements and best practices.
It is worth noting that IndusInd Bank is not the only bank to face such issues. Several other banks and financial institutions in India have similarly run into difficulties with their derivatives businesses, raising concerns about the overall health of the banking sector.
The appointment of an independent firm to investigate the matter is a significant step in addressing the concerns and restoring confidence in the bank’s operations. The bank’s commitment to transparency and accountability in handling the issue demonstrates its commitment to maintaining the trust of its customers, investors, and stakeholders.
In conclusion, IndusInd Bank’s decision to appoint an independent firm to investigate its derivatives business is a prudent step in addressing the concerns raised by the RBI and restoring confidence in the bank’s operations. The bank’s commitment to transparency and accountability is commendable, and it is expected to emerge stronger and more resilient from this challenge.
J&K Bank launches comprehensive month-long awareness initiative to educate public on consumer rights
To mark World Consumer Rights Day on March 15th, Jammu and Kashmir Bank has launched a month-long awareness campaign to educate its customers about their rights and grievance redressal mechanisms. The initiative is aligned with the Reserve Bank of India’s (RBI) efforts to enhance public awareness about consumer protection and responsible banking. The campaign highlights the key themes of the RBI’s Charter of Customer Rights, including the right to fair treatment, transparency, fair and honest dealing, suitability, privacy, and grievance redressal and compensation. The bank is also emphasizing the importance of timely compensation for financial losses resulting from deficiencies in banking services.
The MD & CEO of Jammu and Kashmir Bank, Amitava Chatterjee, stated that empowering customers with knowledge about their rights is essential for responsible banking. The campaign aims to ensure that customers are well-informed about their rights, enabling them to make prudent and secure financial decisions. The bank is committed to upholding the highest standards of customer service and addressing grievances promptly and fairly.
The campaign is being rolled out through various channels, including television, radio, print media, and social media platforms. The bank is also utilizing its network of business correspondents, financial literacy centers, and signages to disseminate information through interactive sessions. This initiative demonstrates the bank’s dedication to customer-centric banking and its commitment to strengthening its relationship with its valued customers.
Starting from April, will a standard five-day banking week become the norm? The government has made its intentions clear: [insert clarification/apiel on the government’s statement].
A recent news report by Lokmat Times has sparked speculation that Indian banks will switch to a 5-day workweek starting from April 2025, citing a new regulation allegedly issued by the Reserve Bank of India (RBI). According to the report, banks would remain closed on all Saturdays and Sundays, following the same schedule as government offices. However, the Press Information Bureau (PIB) has debunked this claim as “fake news”, stating that the RBI has not issued any official notification on this matter.
There have been discussions between the RBI and the Indian Banking Association (IBA) regarding a 5-day workweek for banks, which would better balance employees’ professional and personal lives. However, the current guidelines allow for banks to be closed on the second and fourth Saturdays of every month, while remaining open on the first, third, and fifth Saturdays.
The possibility of a 5-day workweek for banks is uncertain, as the RBI has not confirmed any changes. The banking unions have been advocating for a reduction in the workweek, citing global banking norms and the need for better employee welfare. While the report by Lokmat Times has sparked widespread speculation, the PIB has clarified that any changes to the banking schedule would be communicated through official channels. As of now, banks will continue to operate on the existing schedule, with Sundays remaining a non-working day.
IOB secures board approval to raise Rs 10,000 crore through infrastructure bonds
Indian Overseas Bank has received approval from its board to raise Rs 10,000 crores through the issuance of long-term infrastructure bonds. The funds will be used to finance and refinance infrastructure and affordable housing projects. This move is part of the bank’s strategy to cope with the intense competition for deposits in the current financial year. Other public sector banks, such as Bank of Maharashtra and Punjab National Bank, have also raised funds through long-term infrastructure bonds in recent months.
The funds raised through these bonds can be used only for lending to infrastructure and affordable housing projects, as per Reserve Bank of India (RBI) rules. The maturity period of these bonds must be at least seven years. Long-term bonds are a cheaper source of funds for banks, as the funds raised through these bonds are exempt from regulatory reserve requirements such as cash reserve ratio and statutory liquidity ratio.
The approval to raise funds through long-term infrastructure bonds is a significant step forward for Indian Overseas Bank, which will enable it to support the growth of infrastructure and affordable housing in the country. The bank’s strategy to raise funds through long-term infrastructure bonds demonstrates its commitment to supporting the country’s economic growth and development.
Finance Minister proposes to the RBI to issue 100-year government bonds, a long-term investment opportunity for the market.
Life Insurance Corporation of India (LIC) has made a request to the Reserve Bank of India (RBI) to introduce 100-year government bonds. This move is aimed at reducing the country’s growing fiscal deficit and attracting long-term investors to the country’s debt market. The LIC is one of the largest life insurers in the country and has been actively seeking to expand its investment options.
Additionally, the CEO of LIC, Sandip Das, announced that the corporation is likely to make an announcement on its acquisition of a stake in a health insurance firm by March 31, 2023. According to Das, the exact shareholding will depend on the valuation of the insurance firm. This move is part of LIC’s efforts to diversify its business and venture into new areas.
The request for 100-year government bonds is seen as a welcome move by the RBI, which has been struggling to manage the country’s high fiscal deficit. The RBI has been encouraging institutions like LIC to invest in long-term government securities to reduce the country’s debt burden and attract foreign investors.
The request comes at a time when the Indian government is planning to sell its stake in several state-run companies to attract foreign investors. The government has been looking to divest its stake in several public sector undertakings (PSUs) to raise funds and improve its balance sheet.
The CEO of LIC, Sandip Das, has expressed his confidence in the insurance firm’s ability to make a successful foray into the health insurance sector. “We have a strong franchise and a large distribution network, which will allow us to tap into the growing health insurance market,” he said.
The move by LIC to venture into health insurance is seen as a strategic shift by the company to diversify its portfolio and reduce its dependence on traditional life insurance products. The insurance firm is expected to make an announcement on its acquisition of a stake in a health insurance firm by the end of March 2023.
Here’s a reworded version:India’s IndusInd Bank Secures Rs 11,000 Crore Through Successful CD Issue, Confidence-Building Move
IndusInd Bank raised 11,000 crores in certificates of deposit (CDs) on Monday, a significant move to shore up its funding position following a 2,000 crore accounting discrepancy in its derivatives book. The bank issued CDs across six maturities, ranging from three months to one year, with prices ranging from 7.80-7.90%. While the bank raised money at a slightly higher rate compared to its peers, the fact that it was able to mobilize 11,000 crores on a single day suggests that investors have regained confidence in the bank following the Reserve Bank of India’s (RBI) assurance that the bank is well-capitalized and has a satisfactory financial position.
The fundraising has allayed investor concerns about IndusInd’s ability to raise funds, given that nearly 50.8% of its promoter’s stake is pledged. The Hinduja Group, which has a 16.29% stake in the bank, is also considering selling a significant portion of its stake to raise funds.
The bank’s one-year CDs were priced at 7.90%, which is higher than its peers, such as Axis Bank, which offered 7.62% for the same maturity. However, the bank’s ability to create a liquidity buffer of 11,000 crores in a single day is a significant achievement, according to the treasury head of a private bank. The lack of trades in IndusInd’s bonds in the secondary market suggests that investors are preferring to invest directly in the primary market.
The RBI’s directive to have the bank complete remedial actions by the end of the quarter is also seen as a positive development, as it indicates that the bank is committed to addressing its accounting lapses and restoring investor confidence. Overall, the bank’s successful fundraising efforts on Monday are seen as a positive sign that the market is returning to normal, and that investors are regaining confidence in IndusInd Bank.
RBL Bank’s Chief Financial Officer Jaideep Iyer is still seeking clarity from the Reserve Bank of India (RBI) on liquidity concerns.
According to Jaideep Iyer, Head of Strategy at RBL Bank, the Reserve Bank of India (RBI) should infuse more durable liquidity in the financial system to enable bankers and customers to benefit from its rate cuts. Despite the RBI’s recent rate cut, bulk deposit rates and short-term certificate of deposit (CD) rates have not decreased, and are instead marginally higher than before the rate cut. Iyer believes that the RBI’s decision to cut the repo rate is “a little peculiar” and that focusing on durable liquidity is crucial, as variable rate auctions are short-term.
Iyer notes that the RBI has taken steps to infuse liquidity into the system over the past one-and-a-half months, but more comfort is needed. He expects the RBI to announce another one lakh crore of Open Market Operations (OMOs) to provide durable liquidity, which he defines as consistent liquidity from the beginning of the net financial year.
Iyer emphasizes that a accommodative liquidity situation is necessary for bankers and customers to benefit from the rate cuts. He suggests that the RBI should prioritize durable liquidity, as variable rate auctions are short-term measures, and the current situation is “a little peculiar” with the RBI on a rate cut cycle. Overall, Iyer’s views highlight the importance of effective communication and implementation in achieving the intended benefits of rate cuts and maintaining a healthy financial system.
7 Top-Notch Small Finance Banks Offering Attractive Fixed Deposit Interest Rates
The Reserve Bank of India (RBI) has established a special sector of the banking industry, known as small finance banks, which aims to promote financial inclusion for underserved segments of the economy. These banks are designed to provide access to banking services for micro and small businesses, small and marginal farmers, unorganized sector entities, and small business units that are not currently served by mainstream banks.
The RBI has licensed several small finance banks in India, which operate under the regulatory framework of the RBI. These banks offer a range of services, including deposit accounts, credit, and other financial products. One of the key features of small finance banks is their ability to offer fixed deposit (FD) accounts, which can help individuals and businesses earn interest on their deposits.
Here is a list of some of the small finance banks in India, along with their fixed deposit (FD) interest rates:
* Airtel Bank: 6.15% to 7.10% for 1-year FDs
* Au Small Finance Bank: 6.00% to 7.00% for 1-year FDs
* Equitas Small Finance Bank: 6.00% to 7.50% for 1-year FDs
* ESAF Small Finance Bank: 6.00% to 7.50% for 1-year FDs
* Janalakshmi Financial Services: 6.00% to 7.50% for 1-year FDs
* Suryoday Small Finance Bank: 6.00% to 7.50% for 1-year FDs
Please note that the interest rates may vary depending on the bank, deposit tenure, and other factors. It is always a good idea to check with the bank or their website for the most up-to-date information on their fixed deposit rates.
Overall, small finance banks have made significant progress in extending financial inclusion to underserved segments of the Indian economy. By providing access to banking services, such as fixed deposit accounts, these banks are helping to empower individuals and businesses to achieve their financial goals and improve their standard of living.
India’s retail inflation slumps to its lowest point in seven months in February
India’s retail inflation rate eased to a seven-month low of 3.61% in February 2025, driven by a significant moderation in food inflation, particularly in perishable goods and protein-based food items. Food inflation fell below 4% for the first time in nearly two years, and its lowest in 21 months. The decline in vegetable prices and pulses prices contributed to the fall in food inflation, with vegetable prices deflating by 1.1% year-on-year.
However, core inflation, which excludes food and fuel, surged to its highest level in seven months, driven by the sharp increase in gold prices and the depreciation of the Indian rupee.
The moderation in inflation has strengthened expectations of a back-to-back rate cut in the upcoming April meeting of the Reserve Bank of India (RBI), with economists predicting another 25 basis points (bps) rate cut. The RBI had implemented a 25 bps rate cut in February, reducing the policy rate from 6.5% to 6.25%.
The long-term inflation projections suggest that inflation is expected to moderate to 3.8% by Q3 FY2026, with the fiscal year closing with a policy rate of 5.75%. However, challenges remain in monetary policy transmission.
The key highlights are:
* Retail inflation rate at a 7-month low of 3.61%
* Food inflation at a 21-month low of 3.75%
* Vegetable and pulses prices declining
* Fruits and edible oil prices increasing
* Core inflation at a 7-month high, driven by gold prices
* Repo rate cut in February from 6.5% to 6.25%
* Expected 25 bps rate cut in April 2025 meeting
* FY26 inflation forecast at 4.2%
Access a Range of Small Finance Financial Institutions
AU Small Finance Bank has announced a reduction in interest rates for fixed deposits (FDs) effective from March 10, 2025. The new interest rates range from 3.75% to 8.50% per annum for general customers, while senior citizens can earn interest rates ranging from 4.25% to 8.77% per annum. The bank has reduced its FD interest rates in response to the Reserve Bank of India (RBI)’s recent decision to reduce the repo rate.
The bank’s previous FD interest rates for general customers ranged from 8.10% to 8.60%, while senior citizens could earn rates between 8.60% to 8.24%. The revised rates are effective from March 10, 2025, and are available for deposits up to Rs. 3 crore.
The reduction in interest rates is a common trend among banks, as the RBI’s repo rate cut has led to a decrease in FD interest rates. Despite this, AU Small Finance Bank is still offering competitive rates, making it a good option for those looking to invest in FDs.
Senior citizens can benefit from the higher interest rates offered by the bank, with maximum returns of 8.50% for FDs with a tenure of 18 months. The bank’s FDs also offer flexible tenures ranging from 7 days to 10 years, allowing investors to customize their investment plans according to their financial goals.
In conclusion, while the reduction in interest rates may not be ideal for FD investors, AU Small Finance Bank is still a good option for those looking to invest in FDs. The bank’s competitive rates, guaranteed returns, and flexible tenures make it a good choice for both general customers and senior citizens. It is recommended to lock in FDs before banks reduce interest rates further, and senior citizens may want to consider FDs with a tenure of 18 months for maximum returns.
The Reserve Bank of India (RBI) is now accepting applications for the recognition of Self-Regulatory Organisations (SROs) to operate in the account aggregator ecosystem, ET LegalWorld reports.
The Reserve Bank of India (RBI) has released a framework for recognizing Self-Regulatory Organizations (SROs) for the account aggregator (AA) ecosystem. The account aggregator ecosystem was introduced by the RBI in 2016 to facilitate the secure and seamless exchange of financial information between financial information providers and financial information users. The RBIAA framework operates under the purview of various financial sector regulators, including RBI, Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA), as well as the Department of Revenue.
The AA ecosystem is complex, with multiple regulated entities (REs) operating under different regulatory environments, requiring frequent coordination to address operational issues such as dispute resolution, standardized agreements, and common services. To support the adoption and stabilization of the AA ecosystem, the RBI is seeking to establish a dedicated SRO for the AA ecosystem.
The primary responsibility of the SROAA would be to promote best business practices and controls, establishing minimum benchmarks and conventions for professional market conduct among its members. The SROAA would be expected to operate with transparency, professionalism, and independence, fostering greater confidence in the integrity of the ecosystem. Compliance with the highest standards of governance, as prescribed in the Companies Act, 2013, is a prerequisite for an effective SROAA.
The RBI has invited applications for recognition of SROAA through the PRAVAAH portal, with the deadline set for June 15, 2025. The SROAA is intended to promote a smooth and stable AA ecosystem, ensuring the secure and efficient exchange of financial information among various stakeholders.
A boon for the masses, PNB joins SBI in making loans more affordable for the average citizen
Punjab National Bank (PNB), the second-largest government bank, has made borrowing more accessible by reducing interest rates on retail loans by up to 25 basis points. This move follows the Reserve Bank of India’s (RBI) recent repo rate cut. PNB has slashed rates on various loan types, including home loans, car loans, education loans, and personal loans, to offer customers a wider range of financial options.
The new interest rates are as follows: home loans begin at 8.15%, with equated monthly installments (EMIs) starting at Rs 744 per lakh. Car loans, including new and used vehicles, start at 8.50% per annum with EMIs beginning at Rs 1,240 per lakh. Additionally, PNB is offering an extra discount of 0.05% on car loans to promote sustainable mobility. Personal loans up to Rs 20 lakh can be applied for digitally, with revised interest rates starting at 11.25% per annum.
To make the process even more convenient, PNB is waiving processing fees and documentation charges until March 31, 2025. These new rates will take effect on February 10. This move is consistent with State Bank of India’s (SBI) recent decision to reduce interest rates on retail loans, including home loans, by 25 basis points. Overall, these rate cuts are expected to benefit customers and stimulate economic growth.
Canara Bank reduces lending rates on select tenures by 5-15 basis points, effective March 12, 2023.
Canara Bank, a major Indian public sector bank, has announced a reduction in lending rates on certain tenures by 5-15 basis points (bps), effective March 12, 2023. This move is aimed at boosting credit growth and supporting the economic recovery in the country.
The bank has reduced the marginal cost of lending rate (MCLR) by 15 bps, from 7.50% to 7.35%, for overnight and up to one-year tenure. For terms ranging from 1-3 years, the MCLR has been reduced by 10 bps, from 7.80% to 7.70%. For 3-5 year tenures, the MCLR has been lowered by 5 bps, from 8.20% to 8.15%.
This rate reduction is expected to make borrowing more affordable for customers, particularly for housing and personal loans. The bank’s decision is also seen as a response to the Reserve Bank of India’s (RBI) August 2022 circular, which asked banks to link their lending rates to external benchmarks, such as the RBI’s repo rate. The RBI has been lowering its repo rate to stimulate the economy, and Canara Bank’s rate cut is seen as a way to align its lending rates with the RBI’s monetary policy stance.
The rate reduction is also expected to boost business and employment in the economy by providing easier access to credit for small and medium-sized enterprises (SMEs) and individuals. SMEs are often the backbone of the economy, and access to credit can help them grow and create employment opportunities.
Canara Bank’s rate cut is seen as a positive move by financial experts, who point out that it can help accelerate economic growth and job creation. However, they also caution that more needs to be done to address structural issues affecting the banking sector, such as the high non-performing asset (NPA) levels and the need for more effective risk management.
Overall, Canara Bank’s decision to cut lending rates is seen as a significant step towards supporting the economy and providing relief to borrowers. However, it remains to be seen how other banks will respond to this development and whether the rate cuts can be passed on to customers in the form of lower interest rates.
Earn high yields with small finance banks, offering competitive interest rates of up to 9%
In response to the Reserve Bank of India’s (RBI) recent 25 basis points repo rate cut, investors are seeking high-yield fixed deposit (FD) schemes. Small finance banks have emerged as a promising option, offering interest rates as high as 9% per annum for specific tenures. Small finance banks are a category of banks established by the RBI to promote financial inclusion, providing essential banking services to underserved segments of society, such as small farmers, micro-businesses, and unorganized sector workers.
Some of the small finance banks offering high-yield FDs include Unity Small Finance Bank, NorthEast Small Finance Bank, Suryoday Small Finance Bank, Utkarsh Small Finance Bank, Jana Small Finance Bank, and Ujjivan Small Finance Bank. These banks offer a range of FD schemes with interest rates varying between 7% to 9% per annum, depending on the tenure.
It’s essential to note that small finance bank FDs are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to Rs 5 lakh per depositor. Experts recommend keeping deposits within this insured limit for maximum safety. While small finance banks offer higher interest rates, they operate differently from larger commercial banks, emphasizing the importance of risk management for investors.
In conclusion, small finance banks have emerged as a viable option for investors seeking high-yield FDs. However, it’s crucial to carefully evaluate the risk factors and consider the DICGC insurance limit to ensure maximum safety. With interest rates ranging from 7% to 9% per annum, small finance banks may be an attractive option for investors seeking sustenance and growth.
Searching for competitive returns? Consider these small finance banks offering up to 9% interest rates
In the wake of the Reserve Bank of India’s recent 25-basis-point repo rate cut, investors are actively seeking fixed deposit (FD) schemes with attractive returns. Small finance banks, established to promote financial inclusion, are now offering interest rates as high as 9% per annum for specific tenures.
Small finance banks are a unique category of banks set up by the RBI to bridge the gap in access to banking services for small farmers, micro-businesses, and workers in the unorganized sector. These banks offer a range of fixed deposit schemes, with some offering interest rates as high as 9% per annum. For instance, Unity Small Finance Bank offers 9% for a 1001-day FD, while NorthEast Small Finance Bank offers 9% for deposits between 18 months and 36 months.
Other small finance banks, such as Suryoday, Utkarsh, Jana, and Ujjivan, offer interest rates ranging from 8.1% to 8.5% per annum for deposits ranging from one to five years. AU Small Finance Bank offers 8.1% for an 18-month FD and 7.25% for a one-year FD.
While small finance banks offer higher interest rates, it’s essential to note that deposits up to Rs 5 lakh per depositor are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). However, financial experts recommend keeping deposits within this insured limit for maximum safety. As these small finance banks operate differently from larger commercial banks, risk management is crucial for investors.
Overall, small finance banks’ FD schemes can be a viable option for investors seeking attractive returns, but it’s important to consider the associated risks and ensure that deposits are within the insured limit to ensure maximum safety.
Maximize your returns: Compare FD interest rates up to 9% with top banks, including 1-year fixed deposits at MSN.
The article discusses the current fixed deposit (FD) interest rates offered by various banks in India. With the Reserve Bank of India (RBI) increasing the interest rate to 9% to control inflation, banks have also hiked their FD rates to attract depositors. Here are the highest and one-year FD interest rates offered by different banks in India:
Highest FD Interest Rates:
- Axis Bank: 9.10% (for a deposit of ₹2.5 lakh to ₹5 lakh)
- HDFC Bank: 9.05% (for a deposit of ₹2.5 lakh to ₹5 lakh)
- ICICI Bank: 9.00% (for a deposit of ₹2.5 lakh to ₹5 lakh)
- SBI: 8.90% (for a deposit of ₹1 lakh to ₹1 crore)
- Kotak Mahindra Bank: 9.00% (for a deposit of ₹2 lakh to ₹5 lakh)
One-Year FD Interest Rates:
- Axis Bank: 7.50%
- HDFC Bank: 7.40%
- ICICI Bank: 7.30%
- SBI: 7.20%
- Kotak Mahindra Bank: 7.20%
Other Top Banks’ FD Rates:
- Bank of Baroda: 8.60% (for a deposit of ₹1 lakh to ₹5 crore)
- Yes Bank: 8.40% (for a deposit of ₹1 lakh to ₹5 crore)
- IndusInd Bank: 8.30% (for a deposit of ₹1 lakh to ₹5 crore)
- Punjab National Bank: 8.20% (for a deposit of ₹1 lakh to ₹5 crore)
Things to Keep in Mind:
- The interest rates mentioned are subject to change and may vary based on the deposit amount, tenure, and other factors.
- It’s essential to compare the different FD rates offered by various banks before investing.
- It’s also important to consider other factors such as the bank’s reputation, branch network, and customer service while choosing an FD.
- FDs can be a low-risk investment option, but it’s crucial to assess your financial goals and risk tolerance before investing.
In conclusion, with the RBI increasing the interest rate to 9%, banks have also hiked their FD rates to attract depositors. The interest rates mentioned above are effective as of the date of the article and may change over time. It’s essential for investors to stay informed about the current FD rates and rates offered by different banks before making an investment decision.
According to SBI MF’s report, consumption is expected to be outperformed by investments in the financial year 2026.
A recent report by SBI Mutual Fund predicts that investments in India are likely to outpace consumption in the financial year 2025-26 (FY26). The report suggests that the country’s gross domestic product (GDP) is expected to grow by 6.5-7% in FY26, down from 7.5-9% in the previous two years, but still considered a healthy rate of expansion. The report cites increased investments, rural consumption, and higher government spending as key drivers of growth in the coming quarters.
The report highlights a shift in the government’s and Reserve Bank of India’s (RBI) policies, which were previously focused on consolidation and inflation control. However, the RBI has now initiated interest rate cuts, improved liquidity, and relaxed credit regulations to support economic growth. On the fiscal front, the government is maintaining its consolidation efforts but is expected to better meet its spending targets, contributing to growth.
The report notes that corporate order books remain strong, indicating a stable private investment pipeline, and nominal GDP growth could pick up to 10-11% in FY26, up from 9-10% in FY25. With both monetary and fiscal policies now focused on economic expansion, investments are likely to be the primary driver of growth in FY26, surpassing consumption as the main contributor.
This positive outlook is supported by India’s 6.2% GDP growth in the third quarter of FY25, a recovery from the revised 5.6% in the previous quarter. The report concludes that investments are likely to be the key driver of growth in FY26, leading to a robust economic expansion.