Latest News on Reserve Bank of India
Jharkhand Lauded by RBI Deputy Governor for Outstanding Re-KYC Achievements, Reports Ranchi News
The Reserve Bank of India (RBI) Deputy Governor, M Rajeshwar Rao, recently commended the performance of banks in Jharkhand in the ongoing re-KYC (Know Your Customer) drive. The drive, which began on July 1, aims to update customer information and promote financial inclusion. Rao attended a special camp in Ormanjhi Panchayat Bhavan, where he encouraged senior bank officials to participate and supervise the drive, ensuring that villagers are informed in advance and that the administration and gram panchayats are involved to facilitate mass participation.
Rao emphasized that the re-KYC program has been simplified, and banking correspondents are now allowed to speed up the process. He noted that the campaign is crucial for inclusive service delivery and that the RBI is committed to ensuring that no customer is left behind. At the national level, there are approximately 7 crore pending re-KYC cases, with an additional 3.63 crore expected to be added this year, bringing the total target to 10.63 crore.
In Jharkhand, the re-KYC target is 1.14 crore. Rao encouraged villagers to participate in the camps in large numbers, highlighting the importance of keeping bank accounts updated to receive uninterrupted banking services. He also emphasized that financial inclusion is a key objective of the re-KYC drive, aiming to connect people with the financial system and enable them to access its benefits.
The Regional Director of RBI, Ranchi, Prem Ranjan Prasad Singh, reported that special efforts have been made in Ranchi since October last year, resulting in the completion of re-KYC in over 12 lakh accounts. Singh noted that Jharkhand’s performance in this regard has been remarkable, demonstrating the state’s commitment to financial inclusion. The RBI’s efforts to promote financial inclusion and update customer information are expected to have a positive impact on the state’s economy and its citizens.
AU Small Finance Bank receives Reserve Bank of India’s preliminary nod to upgrade to ‘universal bank’ status – View full details on MSN
AU Small Finance Bank has received an “in-principle” approval from the Reserve Bank of India (RBI) to transition into a “universal bank” status. This approval is a significant milestone in the bank’s journey, as it paves the way for the lender to expand its scope of operations and offer a wider range of financial services to its customers.
As a universal bank, AU Small Finance Bank will be able to provide a broader range of banking and financial services, including corporate and investment banking, treasury operations, and credit card services, in addition to its existing offerings. This will enable the bank to cater to the diverse needs of its customers, including individuals, small businesses, and large corporations.
The “in-principle” approval is subject to certain conditions, which the bank needs to fulfill within a stipulated timeframe. Once these conditions are met, the bank will be granted a license to operate as a universal bank. The RBI’s approval is a testament to AU Small Finance Bank’s strong financials, robust risk management practices, and commitment to serving the unbanked and underbanked segments of the population.
AU Small Finance Bank has a strong presence in rural and semi-urban areas, with a network of over 700 branches and more than 1.5 million customers. The bank’s business model is focused on serving the financial needs of small businesses, farmers, and low-income households, who have limited access to formal banking channels. With its transition to a universal bank, AU Small Finance Bank aims to expand its customer base and offer a more comprehensive range of financial services to its existing customers.
The bank’s management has expressed its gratitude to the RBI for the approval and has stated that it is committed to meeting the conditions laid down by the regulator. The bank is expected to invest heavily in technology and infrastructure to support its expansion plans and improve its operational efficiency.
In conclusion, AU Small Finance Bank’s “in-principle” approval to transition into a universal bank status is a significant development that will enable the bank to expand its scope of operations and offer a wider range of financial services to its customers. The bank’s commitment to serving the unbanked and underbanked segments of the population remains unchanged, and it is expected to continue to play a vital role in promoting financial inclusion in India. With its strong financials and robust risk management practices, AU Small Finance Bank is well-positioned to capitalize on the opportunities presented by its transition to a universal bank.
India’s Public Sector Banks Clear Rs 4.48 Lakh Crore in Non-Performing Assets Over Four-Year Period, with SBI and PNB Accounting for Largest Share: Report
Public sector banks (PSBs) in India have written off non-performing assets (NPAs) worth over Rs 4.48 lakh crore in the last four financial years, according to a statement by Minister of State for Finance Pankaj Chaudhary in the Rajya Sabha. The State Bank of India, the country’s largest public sector bank, leads the list with total write-offs worth Rs 80,197 crore from FY22-25. Other major banks, including Union Bank of India, Punjab National Bank, Bank of Baroda, and Canara Bank, have also written off significant amounts, totaling Rs 4.48 lakh crore among 12 banks.
NPAs refer to debt instruments where the borrower has defaulted on interest or principal repayments, putting the loan at risk of default. The government maintains that loan write-offs are “technical” in nature and carried out in accordance with RBI guidelines after provisioning for four years. Write-offs do not mean waiving the borrower’s obligation, and recovery actions continue through various mechanisms, including the Insolvency and Bankruptcy Code, the SARFAESI Act, Debt Recovery Tribunals, and civil courts.
The government has reported a reduction in gross NPAs from 9.11% to 2.58% from March 2021 to March 2025. However, the government did not provide any update on the recoveries made after the write-offs. The revelation has raised serious questions about the functioning of the public banking system. The write-offs have sparked concerns about the efficiency of the banking system and the potential losses to the exchequer.
The banks that have written off significant amounts include Union Bank of India (Rs 68,557 crore), Punjab National Bank (Rs 65,366 crore), Bank of Baroda (Rs 55,279 crore), and Canara Bank (Rs 47,359 crore). Indian Bank also wrote off Rs 29,949 crore during the same period. The government’s response to the write-offs has been that they are a normal part of the banking process and do not necessarily mean that the loans are uncollectible. However, the lack of transparency on recoveries made after write-offs has raised concerns among experts and lawmakers. The issue highlights the need for greater oversight and accountability in the public banking system to prevent such large-scale write-offs in the future.
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.