Tag: RBI

RBI lost 46 employees to Covid, related complications

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Mumbai: The Reserve Bank of India (RBI) on Monday said it lost 46 employees to Covid and related complications.
The central bank mentioned about the deaths in the compendium on business continuity measures taken during the coronavirus pandemic.
According to RBI, it introduced a Special Ex-gratia Package and a Special Scheme of Compassionate Appointment for dependents of employees dying in harness due to Covid or due to post-Covid complications happening within six months of last such infection since March 1, 2020.
“As on December 31, 2022, dependents of 46 deceased employees were paid the ex-gratia amount and dependents of 32 deceased employees accepted compassionate appointment in addition to the ex-gratia package,” it said.
Under the scheme, ex-gratia was extended to the dependents of regular full time/ part-time employees.
In addition, the offer of compassionate appointment was also extended to either the spouse or any one eligible dependent child of full-time regular employees on fulfilment of stipulated age and eligibility criteria.
To tackle the challenges posed by the pandemic, RBI mobilised at an unprecedented scale and speed to put in place a cross-functional response to safeguard lives and livelihood of the people as well as insulate the economy and the financial sector.
These measures were taken to ensure uninterrupted conduct of its crucial functions and maintaining business continuity; supporting its employees, service providers and other stakeholders.

“More than one hundred measures, both conventional and unconventional, were undertaken during the period. The effort was to be proactive and innovative, while remaining on guard to preserve financial stability,” it said.
In the foreword to the compendium, RBI Governor Shaktikanta Das said Business Continuity Management (BCM) has hitherto meant protecting organisations against events like natural calamities, geo-political disturbances, cyber attacks and other disruptions that have the potential of interrupting smooth functioning of an organisation.
“An unknown virus, i.e., coronavirus, of the size of 0.125 microns, unleashed a once in a century pandemic and completely redefined our understanding of BCM,” he said.
Das said through the troubled times, RBI had to continually assess and revalidate its readiness for uninterrupted operations, leverage varied data feeds for continuous monitoring, consider consequences and impacts of its measures, and design and implement rapid but coordinated responses across verticals.
“We also proactively communicated through public statements and in other forms of guidance, reassuring the public at large about the stability and resilience of the financial system while supporting banks and financial institutions and the economy as a whole.
“Our basic message was: RBI is tirelessly at work to shield the Indian economy from the pandemic,” he said.
The compendium said one of the major challenges faced included, ensuring sufficient printing of currency, timely supply of currency and ensuring availability of currency at the last point while bearing in mind the safety of treasure and human resources involved.
“Execution of (these) activities involved considerable coordination with the multiple stakeholders in the network,” it said.
To deal with the challenges posed by the pandemic, RBI took slew of measures, including those related to monetary policy, liquidity management, and regulation.
“While the pandemic threatened to cause never-before disruptions across the business landscape, recognising its people as pivots, RBI chose to assign primacy to employee empathy so that the workforce well-being is not compromised and the employees remain safe and motivated,” it said.
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#RBI #lost #employees #Covid #related #complications
( With inputs from www.siasat.com )

February 27, 2023
Multiple Account Holders Alert! RBI issued new rule for those

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Single Bank Account: If you have more than one bank account, then it is very important for you to know that keeping more than one bank account can cause monetary loss, which people often do not pay attention to.
If the earning person is a salaried individual, it is better to have a single savings bank account than multiple savings accounts. Maintaining a bank account is easy and when you file your income tax return, your job becomes easier as most of your banking details are available in the same bank account.
But apart from convenience, if you have a savings bank account then there are some monetary benefits as well as you will be paying bank service charges on debit card AMC, SMS service charges, minimum balance etc.
As per RBI rule, it is better to have a single bank account as it becomes easier to maintain minimum balance and avoid paying bank service charges like debit card AMC, SMS. If a person is salaried, having a single savings account makes it easier for the earning person while filing income tax returns.
Possibility of forgery
Having more than one bank account is likely to mean an inoperative account, which is most prone to fraud. This happens when a salaried individual changes job from one company to another leaving the salary account. In such a case the salary account becomes inoperative and as stated earlier, such accounts are most prone to fraud.
Threat to CIBIL Score
Having more than one account can be a problem in managing your bank account with the proper minimum balance. In such a case, a default can lead to a penalty which is directly related to your CIBIL rating.

Multiplication of Service Fee
Having a bank account attracts various service charges like SMS alert service charges, debit card AMC, etc. If you have a single bank savings account, you will have to make a one-time payment while in case of multiple banks, the service charge for the savings account is doubled.
Hold on your investment
There is also a requirement of maintaining a minimum balance in order to have a bank savings account. If you have multiple banks then there is a possibility of getting a huge amount stuck in your savings bank account. These days, private banks are asking for a minimum balance of Rs 20,000 and if you have three such bank accounts in three different banks, your Rs 40,000 will get stuck in maintaining the minimum balance of two additional bank savings accounts and investing will not be able to do.
This additional Rs 40,000 can be used for investment purpose and a return of 8 per cent can be earned on the same as debt funds attract at least 8 per cent in short term investments. But, in a bank savings deposit one would get around 4-05 per cent, which is almost half of what one earns through investing in debt funds.
Income tax fraud
Interest up to Rs 10,000 in a bank savings account is tax exempt and hence TDS is deducted. So, unless you are getting interest of Rs 10,000 in your bank savings account, your bank will not deduct TDS, it may happen that your bank has not deducted TDS like in your single bank account.
10,000 is not the interest earned in a financial year, but after adding the entire interest in all your savings account, it may cross Rs.10,000, making you liable to deduct TDS. In such a situation, you will have to give this information to the Income Tax Department during ITR filing. Failure to do so would result in income tax fraud, which was done unknowingly.
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#Multiple #Account #Holders #Alert #RBI #issued #rule
( With inputs from : kashmirpublication.in )

February 23, 2023
RBI issues draft rules for lending, borrowing of govt securities

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New Delhi: The Reserve Bank of India (RBI) on Friday issued draft guidelines for lending and borrowing government securities. It is aimed at improving liquidity and price discovery in the market.
The central bank had first announced the borrowing and lending of government securities earlier this month while announcing the monetary policy.
“Comments on the Draft Directions are invited from banks, market participants, and other interested parties by March 17, 2023,” the RBI said in a statement on Friday.
RBI Governor Shaktikanta Das on February 8 proposed the borrowing and lending of government securities to improve liquidity and price discovery in the securities market.
“This will provide investors an avenue to deploy their ideal securities, enhance portfolio returns, and facilitate wider participation,” he had said at that time.
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#RBI #issues #draft #rules #lending #borrowing #govt #securities

( With inputs from www.siasat.com )

February 18, 2023
Adani row: Jairam Ramesh urges RBI, SEBI to probe allegations

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New Delhi: Senior Congress leader Jairam Ramesh has written to the Reserve Bank of India (RBI) Governor Shaktikanta Das and Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and sought an investigation into allegations of financial irregularities and stock manipulation against the Adani Group.
In his letter to Das posted on Twitter on Wednesday, Ramesh urged the RBI to ensure that “excessive debt exposure” by the Adani Group currently and in the future does not destabilise India’s banking system.
“The Adani Group has been described as ‘deeply over-leveraged’ – if the Adani Group has artificially inflated the value of its stock through manipulation by offshore shell companies and raised funds by pledging those overvalued shares, the recent sell off in stock prices is creating vulnerabilities for the Adani Group to find financing, and by implication for India’s banking system,” the Congress MP said in his letter dated February 14.
Here are my letters to the RBI Gov & Chaiperson of SEBI expressing the hope that a full-fledged independent investigation will be carried on the numerous allegations against the PM- blessed Adani Group. pic.twitter.com/U7L8QLRb5f
— Jairam Ramesh (@Jairam_Ramesh) February 15, 2023
Ramesh called on the RBI to look into two aspects what is the true Adani Group exposure of the Indian banking system and what are the explicit and implicit guarantees that the Adani Group has been given that it will be bailed out by Indian banks if foreign funding dries up.
“Will the RBI ensure that Indian banks are not forced to step in to substitute for any shortfall in foreign financing, especially given the Adani Group’s political connections,” Ramesh asked.
Public sector financial institutions like the Life Insurance Corporation of India and the State Bank of India have been “unusually generous” to the Adani Group in recent years, the Congress leader alleged.
The RBI must ensure that risks to financial stability are investigated and contained, he said in his letter.
The risks of contagion from any collapse in the Adani Group’s ability to secure financing must be monitored constantly, Ramesh argued.

“As the steward of the financial system, the RBI must do everything possible to protect India’s banks and financial institutions, and we urge you to act in the national interest to ensure that India’s taxpayers do not pay the price for the ‘misgovernance’ and potential ‘illegalities’ of one influential business house,” he wrote to Das.
Ramesh also posted his letter to SEBI chief Buch on Twitter saying, many Indian citizens were disturbed by the allegations that the Adani Group has indulged in “brazen stock manipulation” and “accounting fraud” via a “vast labyrinth of offshore shell entities”.
“Apart from the potential violation of several Indian laws, this goes against everything that the Securities and Exchange Board of India (SBI) stands for. We urge you to investigate all potential violations and to ensure complete transparency about who is investing in Adani Group companies,” Ramesh said.
“Given the Adani Group’s size and political connections, it is incumbent that such investigations are seen as fair and complete, with no favour shown to the influential business group,” the Congress general secretary stressed.
Any failure to do so will cast a shadow on Indian corporate governance and on India’s financial regulators, and could affect our ability to raise funds globally, he argued.
In his letter, Ramesh asked why financial institutions of national importance such as the Life Insurance Corporation of India (IIC) and the State Bank of India (SBI) have “heavily bought” Adani Group equity when most private funds have been severely underweight because of concerns over corporate governance and indebtedness.
“LIC, which 30 crore Indians trust with their life savings, has lost thousands of crores in Adani Group stock in recent days. Should we not ensure that such public sector financial institutions are more conservative in their investments than their private sector counterparts and free from pressure from above?” Ramesh said.
The inclusion of Adani Enterprises in the widely used National Stock Exchange Nifty 50 index in September 2022 occurred despite the firm’s weak fundamentals, an excessive price-to-earnings ratio and a tiny free float, he alleged.
He further claimed that adding Adani Enterprises compelled supposedly conservative Nifty index funds to make significant purchases of this risky stock, including the Employees Provident Fund Organisation, India’s largest pension fund.
“In recent days, global stock indices have suspended Adani Group companies while the matter is investigated, but the NSE has failed to take any similar action to protect investors,” Ramesh said.
Is it not SEBI’s responsibility to ensure that index investors are protected from investing in questionable firms, he asked.
“We urge SEBI to play its role as the steward of India’s financial markets on behalf of the crores of Indians who have faith in the fairness of India’s financial markets,” the Congress leader said.
Ramesh shared the letters on Twitter and said that he has expressed the hope that a “full-fledged independent investigation will be carried on the numerous allegations against the ‘PM-blessed’ Adani Group”.
The Congress has been demanding a Joint Parliamentary Committee probe into the allegations against the Adani Group by US-based short-seller Hindenburg.
The Adani Group has dismissed the allegations as baseless.

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#Adani #row #Jairam #Ramesh #urges #RBI #SEBI #probe #allegations
( With inputs from www.siasat.com )

February 15, 2023
RBI updates ‘Alert List’ of entities not authorised to deal in forex trading

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Mumbai: The Reserve Bank on Friday updated its ‘Alert List’ for the public on unauthorised forex trading platforms to include names of entities/platforms/ websites which appear to be promoting such entities.
In September last year, the central bank came out with an ‘Alert List’ containing the names of 34 entities.
The list now has 48 entries.
“The Alert List has been updated and includes names of entities/platforms/ websites which appear to be promoting unauthorised entities/ETPs, including through advertisements of such unauthorised entities or claiming to be providing training/advisory services,” the RBI said, and added the Alert List is not exhaustive.
It further said that an entity not appearing in the Alert List should not assume that it is authorised by the RBI to deal in foreign exchange or can operate electronic trading platforms for forex transactions.
The authorisation status of any person/Electronic Trading Platform (ETP) can be ascertained from the list of authorised persons and authorised ETPs available in the RBI’s website.
“Residents are cautioned against entities/platforms/websites which appear to be promoting such unauthorised entities/ETPs, including through advertisements of such unauthorised entities or claiming to be providing training/advisory services (e.g. on social media including video streaming platforms) by providing for demo trading’ in simulated environment’ and such other indirect means for facilitating and doing forex trading through unauthorised entities,” it said.
The RBI also reiterated that residents using any means to remit/deposit funds, directly or indirectly, in INR or in any other currency, for undertaking forex transactions for purposes other than those permitted under the FEMA or on ETPs not authorised by the RBI shall render themselves liable for penal action under the provisions of FEMA.

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( With inputs from www.siasat.com )

February 10, 2023
Sensex rebounds 377 pts, Nifty closes above 17,850 as RBI slows down rate hike

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Mumbai: Benchmark Sensex rebounded 377 points while Nifty closed above the 17,850 level on buying in IT, financial and oil stocks after the RBI slowed down the pace of interest rate hikes on Wednesday.
Ending its two-day slide, the 30-share BSE Sensex rose by 377.75 points or 0.63 per cent to close at 60,663.79 with 24 of its constituents posting gains.
The broader Nifty of the NSE spurted by 150.20 points or 0.85 per cent to settle at 17,871.70, riding on a rally in Adani Enterprises, Adani Ports and HDFC Life. The index opened higher and gained further to test the crucial hurdle at 17,900 in the day. Buying in index majors Reliance Industries, Infosys and TCS played a key role in the rebound.
Vinod Nair, Head of Research at Geojit Financial Services said, “Bulls took charge of the markets as the RBI’s MPC meeting delivered a smaller rate hike in line with market expectations. The RBI has taken a more optimistic view on domestic growth by increasing the GDP forecast while cautiously keeping CPI inflation at 5.3 per cent for FY24”.
US Federal Reserve chair Jerome Powell signalling that a strong jobs report would not by itself sway its stance on interest rate hikes also eased concerns over a sharp increase in interest rates.
Among Sensex stocks, Bajaj Finance rose the most by 3.14 per cent. Ultratech Cement, Reliance Industries, Infosys, Wipro, HCL Tech, TCS, Bajaj Finserve, Tata Motors, Tech Mahindra, Titan and Maruti were among the major gainers.
L&T declined the most by 1.62 per cent, followed by Bharti Airtel, Axis Bank, Kotak Bank and Hindustan Unilever.
Shares of most of Adani group companies, hit by allegations of stock manipulation and accounting fraud by a US short seller, rallied after rating agencies allayed fears over debt taken by the group entities.

Adani Enterprises rallied for a second day, closing sharply higher by 19.76 per cent after hitting the upper circuit limit.
Adani Ports & SEZ also rose for the second day gaining 8.34 per cent. Adani Transmission rebounded by 5 per cent, Adani Wilmar by 4.99 per cent, and Adani Power by 4.99 per cent. However, Adani Green and Adani Total Gas closed lower by over 4 per cent.
Meanwhile, the Reserve Bank of India slowed the pace of interest-rate increases for the second straight time when it on Wednesday expectedly increased borrowing costs by 25 basis points.
The RBI also projected retail inflation to ease to 5.3 per cent in the next fiscal from 6.5 per cent this year on assumptions of lower imported inflation. It also upped its GDP growth estimate to 7 per cent from 6.8 per cent for FY23 and pegged the growth at 6.4 per cent for the next fiscal.
Industry experts said that the 25 basis points hike in key policy rate was in line with expectations, and hopefully is the last in the current cycle of the rate increase, which started in May 2022 in view of rising inflation.
Madan Sabnavis, Chief Economist, Bank of Baroda, said the major takeaway is that there will be a prolonged pause for sure before any further action is taken by the RBI and will be data-driven.
Ajit Mishra, VP – Technical Research, Religare Broking Ltd said, “Markets resumed recovery after two days of subdued move and gained nearly a per cent, supported by upbeat global cues”.
In the broader market, BSE Midcap spurted by 245 points or 1 per cent while the Smallcap advanced 0.76 per cent or 212.88 points.
Among sectoral indices, BSE Commodities rose by 2.28 per cent, BSE IT by 1.51 per cent, BSE Healthcare by 1.2 per cent, BSE Metal by 1.04 per cent, and BSE Teck by 1.09 per cent. Among losers, Telecom declined by 0.43 per cent and Capital Goods by 0.33 per cent.
Shares were mixed in Asia on Wednesday after US stocks rallied following comments by the Federal Reserve chair.
Hong Kong, Sydney and Seoul rose while Tokyo and Shanghai declined. US futures edged lower while oil prices were little changed.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 2,559.96 crore, according to exchange data.
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#Sensex #rebounds #pts #Nifty #closes #RBI #slows #rate #hike
( With inputs from www.siasat.com )

February 8, 2023
Home, personal loan EMIs set to rise as RBI hikes repo rate for 6th in a row – Here’s the math behind it – Kashmir News

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Home, personal loan EMIs set to rise as RBI hikes repo rate for 6th in a row – Here’s the math behind it – Kashmir News
RBI to continue or hit the pause button on rate hike?

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Chennai: With the retail inflation down, if the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) pause on the policy rate hike or increase it by 25 basis points to 6.50 per cent will be known on February 8.
The RBI’s MPC will be meeting on February 6-8 to decide on the rates.
“Inflation has come down substantially over the last three months and showing further downward momentum. External conditions have also eased with slower rate hikes in the US. The RBI’s foreign exchange reserves have also increased over the last few months. All these developments should provide comfort to the RBI. We expect the RBI will pause the rate hiking cycle in the February meeting and will maintain the repo rate at 6.25 per cent for extended period. It might also change the policy stance to neutral,” said Pankaj Pathak, Fund Manager- Fixed Income, Quantum AMC.
According to Pathak, the bond market should react positively. “We expect bond yields to go down gradually though elevated bond supply will limit the downside of yields.”
Retail inflation for December 2022 fell to a year’s low of 5.72 per cent, mainly due to low food prices, especially those of fruits and vegetables.
This was the second consecutive month when it has remained within the RBI’s tolerance band of 2 per cent to 6 per cent.
However, economists are worried as the core inflation remains on the higher side.
The consumer price index (CPI) based inflation was at 5.88 per cent in November 2022, according to data released by the Ministry of Statistics and Programme Implementation on Thursday. In October 2022, it was at a higher band of 6.77 per cent.

Food inflation stood at 4.19 per cent in December 2022, lesser than 4.67 per cent level of November 2022, as per the official data.
Apart from fruits and vegetables, prices of oils and fats as well as meat and fish also fell in December 2022 compared to November 2022.
On the inflation numbers Rajani Sinha, Chief Economist, CARE Ratings had told IANS: “Retail inflation has eased more than expected in December, bringing the headline print below the RBI’s upper tolerance for the second straight month.”
The softening is largely attributed to the decline in prices of vegetables, which helped offset the rise in costs of other products of the food basket such as cereals, milk and meat. However, the concern is that core CPI inflation remains sticky above 6 per cent, with evidence of high inflation in the services sector. “From the policy perspective, we believe that RBI’s move at the February MPC meeting will be a close call with core CPI inflation remaining sticky,” she had added.
At the MPC meeting held during December 5-7, 2022 Prof. Jayanth R. Varma, a member voted against the resolution to hike the repo rate by 35 basis points to 6.25 per cent.
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#RBI #continue #hit #pause #button #rate #hike
( With inputs from www.siasat.com )

February 6, 2023
Adani crisis: Banking sector resilient and stable, says RBI

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Mumbai: Amid concerns over banks’ exposure to the embattled Adani Group, the Reserve Bank on Friday said India’s banking sector is resilient and stable, and the central bank maintains a constant vigil on the lenders.
Responding to media reports expressing concern about the exposure of Indian banks to a “business conglomerate”, the Reserve Bank said in a statement that it is constantly monitoring the banking sector.
However, the RBI did not name the Adani Group.
As per the current assessment, the RBI said, “the banking sector remains resilient and stable. Various parameters relating to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy.”
“As the regulator and supervisor, the RBI maintains a constant vigil on the banking sector and on individual banks with a view to maintaining financial stability. The RBI has a Central Repository of Information on Large Credits (CRILC) database system where the banks report their exposure of Rs 5 crore and above which is used for monitoring purposes,” the central bank said.
The RBI, the statement said, remains vigilant and continues to monitor the stability of the Indian banking sector.
It further said that banks are also in compliance with the Large Exposure Framework (LEF) guidelines issued by the RBI.

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#Adani #crisis #Banking #sector #resilient #stable #RBI
( With inputs from www.siasat.com )

February 3, 2023
Currency Notes: Big news! RBI issued new guideline regarding

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New Currency Notes: Notes are issued by the Reserve Bank of India, but after the demonetisation across the country, many types of viral and fake news are coming out regarding the notes.
Now Punjab National Bank has brought a special offer for you, in which you will get brand new notes. The bank has given information about these notes by tweeting.
Have to contact in the nearest branch
PNB has written in its official tweet that if you also want to change old or mutilated notes, now you can do this work easily. The bank has told that you can contact your nearest branch. Here you can exchange notes and coins.
Rules issued by the Reserve Bank According to the new rules of the Reserve Bank, if you also have old or mutilated notes, then you do not have to worry at all. Now you can exchange such notes by visiting any branch of the bank. If any bank employee refuses to exchange your note, then you can also file a complaint about this. You have to keep in mind that the worse the condition of the note, the less its value decreases.
Under what circumstances will the notes be exchanged?
According to RBI, any torn note will be accepted only when a part of it is missing, or which consists of more than two pieces and is pasted together, provided that no essential part of it is missing. If some special parts of the currency note, such as the name of the issuing authority, guarantee and promise clause, signature, Ashoka Pillar, picture of Mahatma Gandhi, water mark, etc. are also missing, then your note will not be exchanged. Soiled notes which have become unusable due to circulation in the market for a long time can also be exchanged.
Such notes can be changed from the RBI office, very burnt notes, or notes sticking together can also be changed, but the bank will not take them, you will have to take them to the issue office of RBI. Remember that these things will definitely be checked by the institution that the damage to your note is genuine and not intentionally damaged.

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#Currency #Notes #Big #news #RBI #issued #guideline
( With inputs from : kashmirpublication.in )

February 2, 2023