Real estate developers on Friday welcomed the RBI's decision to lower risk weightage on housing loans, saying it would boost credit flow to the sector, but demanded that more steps should be taken to revive the industry.

The RBI decided to rationalise the risk weights by linking them only with LTV (Loan to Value) ratios for all new housing loans sanctioned up to March 31, 2022. With lowering of risk weightage, the requirement of capital provision for banks will come down.

Commenting on the monetary policy, CREDAI National President Satish Magar said linking of housing loans to LTV would boost housing demand.

The move to extend co-lending scheme to non-banking financial companies (NBFCs) and housing finance companies (HFCs) may infuse additional liquidity, he said, but added that realty sector might not get benefit due to strict due diligence norms and eligibility criteria.

"Now that RBI has recognized realty sector as the largest employer, it should also announce steps that are imperative and crucial for the sector's survival and then introduce measures that will aid the sector's revival," Magar said.

He sought that all loan accounts that were SMA 1 &amp; SMA 2 as on March 1, 2020 should be made eligible for restructuring.

Naredco President Niranjan Hiranandani said the RBI's decision to rationalise the risk weights on home loans and link them to LTV ratios will give a boost to the sector.

"Particularly this step would benefit borrowers of higher value loans. It would ensure that more credit is available to borrowers. This move is a much appreciated step recognising the role of the real estate sector in generating employment and economic activity," he added.

Anshuman Magazine, Chairman &amp; CEO - CBRE India, South East Asia, Middle East &amp; Africa, said, "RBI's decisions to relax LTV guidelines and rationalize risk weights for home loans will further encourage homebuyers."

Anarock Chairman Anuj Puri said the announcement will definitely encourage banks to lend more to individual homebuyers without feeling the stress on their balance sheets.

PropTiger and Housing.com CEO Dhruv Agarwala said it will effectively result in higher credit flow to the real estate sector.

Square Yards CEO Tanuj Shori said, "The linking of risk weightage only to LTV ratio vis-a-vis the earlier practice of risk weightage with both pricing and LTV augurs well for the sector, particularly for high end properties which have been facing severe downward demand pressures."

Welcoming the move, Hardayal Prasad, MD &amp; CEO, PNB Housing Finance said rationalising the risk weights for all new housing loans until March 31, 2022 and the relaxation extended for LTV, shall give the much needed impetus to the housing sector.

"At the same time, home loans will become accessible and competitive for the customers. This move by the central bank addresses the urgency required to boost the real estate sector in the country. This will also lead to the desired recovery of the construction sector which has a very important role to play in creating employment and growth," Prasad said.

JLL India CEO and Country Head Ramesh Nair termed the move as timely and a step in the right direction and said this would provide a fillip to housing loans and have a positive impact on the residential sector.

Knight Frank India CMD Shishir Baijal said the measures like rationalisation of risk weights to all new housing loans until March 2022 would give a fillip to housing loan growth.

The RBI has extended the scheme for co-lending to all NBFCs and HFCs which will ease credit availability for the real estate sector, he added.

Meanwhile, Siddhartha Mohanty, MD &amp; CEO of LIC HFL said that in recognition of the role of the real estate sector in generating employment and economic activity, it has been rightly decided to rationalise the risk weights and link them to LTV ratios for all new housing loans sanctioned up to March 31, 2022.

Savills India CEO Anurag Mathur said the rationalisation of risk weight of housing loans is a welcome step by the RBI that could potentially boost housing demand.

"With this move, housing loans would eventually get more affordable, thereby benefiting the homebuyers in this sluggish market," he added.

Emami Realty MD &amp; CEO Nitesh Kumar said the RBI's move on housing loans willl boost credit sentiments and bring much needed positivity in the sector.

Sunteck Realty CMD Kamal Khetan said homebuyers across all price points will be able to access more capital with ease.

Additionally, it would help lenders on capital adequacy front and enable them to provide more loans, he added.

Gaurs Group MD Manoj Gaur said the lowering of risk weightage on home loans and linking it to LTV only will ensure more credit to customers and thereby to the sector.

Signature Global Chairman Pradeep Aggarwal said the loan on LTV will be helpful for real estate sector.

S Raheja Realty Director Ram Raheja said it will provide the much-needed boost and encouragement to home buyers ahead of this festive season.

Honeyy Katiyal, founder, Investors Clinic said the announcement by the RBI to extend the scheme for co-lending to all NBFCs and HFCs will help ease credit availability.

"The move by RBI to link risks to loan to value will help banks shred the cautious lending approach.

The move is bound to offer a much needed jump start to lending and liquidity cycle in the marketplace," said Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory.

The RBI's stand to rationalise risk weightage on home loans is a step in the right direction and homebuyers will benefit immensely from this move, said Ankush kaul, President (Sales &amp; Marketing) - Ambience Group.

Jyoti Prakash Gadia, Managing Director, Resurgent India said retail credit and real estate shall also get a fillip with regulatory relaxations announced with an increase in the limit to Rs 7.50 crore for retail credit and rationalisation of risk weight linked to loan value for housing loan, respectively.

Real estate developers on Friday welcomed the RBI's decision to lower risk weightage on housing loans, saying it would boost credit flow to the sector, but demanded that more steps should be taken to revive the industry.

Real estate developers on Friday welcomed the RBI's decision to lower risk weightage on housing loans, saying it would boost credit flow to the sector, but demanded that more steps should be taken to revive the industry. The RBI decided to rationalise the risk weights by linking them only with LTV (Loan to Value) ratios for all new housing loans sanctioned up to March 31, 2022. With lowering of risk weightage, the requirement of capital provision for banks will come down. Commenting on the monetary policy, CREDAI National President Satish Magar said linking of housing loans to LTV would boost housing demand. The move to extend co-lending scheme to non-banking financial companies (NBFCs) and housing finance companies (HFCs) may infuse additional liquidity, he said, but added that realty sector might not get benefit due to strict due diligence norms and eligibility criteria. "Now that RBI has recognized realty sector as the largest employer, it should also announce steps that are imperative and crucial for the sector's survival and then introduce measures that will aid the sector's revival," Magar said. He sought that all loan accounts that were SMA 1 & SMA 2 as on March 1, 2020 should be made eligible for restructuring. Naredco President Niranjan Hiranandani said the RBI's decision to rationalise the risk weights on home loans and link them to LTV ratios will give a boost to the sector. "Particularly this step would benefit borrowers of higher value loans. It would ensure that more credit is available to borrowers. This move is a much appreciated step recognising the role of the real estate sector in generating employment and economic activity," he added. Anshuman Magazine, Chairman & CEO - CBRE India, South East Asia, Middle East & Africa, said, "RBI's decisions to relax LTV guidelines and rationalize risk weights for home loans will further encourage homebuyers." Anarock Chairman Anuj Puri said the announcement will definitely encourage banks to lend more to individual homebuyers without feeling the stress on their balance sheets. PropTiger and Housing.com CEO Dhruv Agarwala said it will effectively result in higher credit flow to the real estate sector. Square Yards CEO Tanuj Shori said, "The linking of risk weightage only to LTV ratio vis-a-vis the earlier practice of risk weightage with both pricing and LTV augurs well for the sector, particularly for high end properties which have been facing severe downward demand pressures." Welcoming the move, Hardayal Prasad, MD & CEO, PNB Housing Finance said rationalising the risk weights for all new housing loans until March 31, 2022 and the relaxation extended for LTV, shall give the much needed impetus to the housing sector. "At the same time, home loans will become accessible and competitive for the customers. This move by the central bank addresses the urgency required to boost the real estate sector in the country. This will also lead to the desired recovery of the construction sector which has a very important role to play in creating employment and growth," Prasad said. JLL India CEO and Country Head Ramesh Nair termed the move as timely and a step in the right direction and said this would provide a fillip to housing loans and have a positive impact on the residential sector. Knight Frank India CMD Shishir Baijal said the measures like rationalisation of risk weights to all new housing loans until March 2022 would give a fillip to housing loan growth. The RBI has extended the scheme for co-lending to all NBFCs and HFCs which will ease credit availability for the real estate sector, he added. Meanwhile, Siddhartha Mohanty, MD & CEO of LIC HFL said that in recognition of the role of the real estate sector in generating employment and economic activity, it has been rightly decided to rationalise the risk weights and link them to LTV ratios for all new housing loans sanctioned up to March 31, 2022. Savills India CEO Anurag Mathur said the rationalisation of risk weight of housing loans is a welcome step by the RBI that could potentially boost housing demand. "With this move, housing loans would eventually get more affordable, thereby benefiting the homebuyers in this sluggish market," he added. Emami Realty MD & CEO Nitesh Kumar said the RBI's move on housing loans willl boost credit sentiments and bring much needed positivity in the sector. Sunteck Realty CMD Kamal Khetan said homebuyers across all price points will be able to access more capital with ease. Additionally, it would help lenders on capital adequacy front and enable them to provide more loans, he added. Gaurs Group MD Manoj Gaur said the lowering of risk weightage on home loans and linking it to LTV only will ensure more credit to customers and thereby to the sector. Signature Global Chairman Pradeep Aggarwal said the loan on LTV will be helpful for real estate sector. S Raheja Realty Director Ram Raheja said it will provide the much-needed boost and encouragement to home buyers ahead of this festive season. Honeyy Katiyal, founder, Investors Clinic said the announcement by the RBI to extend the scheme for co-lending to all NBFCs and HFCs will help ease credit availability. "The move by RBI to link risks to loan to value will help banks shred the cautious lending approach. The move is bound to offer a much needed jump start to lending and liquidity cycle in the marketplace," said Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory. The RBI's stand to rationalise risk weightage on home loans is a step in the right direction and homebuyers will benefit immensely from this move, said Ankush kaul, President (Sales & Marketing) - Ambience Group. Jyoti Prakash Gadia, Managing Director, Resurgent India said retail credit and real estate shall also get a fillip with regulatory relaxations announced with an increase in the limit to Rs 7.50 crore for retail credit and rationalisation of risk weight linked to loan value for housing loan, respectively.

Real estate developers welcome RBI's decision to lower risk weightage on home loans

The Reserve Bank of India (RBI) left key interest rates unchanged on Friday but signalled more easing ahead to support an economy that it sees contracting 9.5 per cent in the current fiscal.

The six-member Monetary Policy Committee, with three newly inducted external members, voted unanimously to retain the benchmark repurchase or repo rate at 4 per cent while keeping its policy stance accommodative, implying it could ease again.

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The central bank had slashed the repo rate by 115 basis points since late March before hitting a pause button in August.

To bring down borrowing cost, RBI announced a number of unconventional steps, including doubling of the size of open-market bond purchases to Rs 20,000 crore, offer to buy state debt, and easing a corporate cash crunch through a Rs 1 lakh crore of targeted long-term funds available on tap.

Besides supporting economic activity, the measures are aimed at ensuring the government's record borrowing programme goes through smoothly.

RBI Governor Shaktikanta Das said the economic growth, which slumped to a negative 23.9 per cent in the April-June quarter, will turn positive only in the final January-March quarter.

"By all indications, the deep contractions of Q1 2020-21 (April-June) are behind us; silver linings are visible in the flattening of the active caseload curve across the country," he said.

Barring the risk of a second wave of infections, the economy appeared poised to begin a recovery, he said, noting food grain production was set for record highs and factories and cities were coming back to life.

With macro indicators pointing to a recovery, "GDP growth may break out of contraction and turn positive by Q4 (January-March)," he said.

"For the year 2020-21 as a whole, therefore, real GDP is expected to decline by 9.5 per cent, with risks tilted to the downside," he said, adding that if the current momentum of upturn gains ground, a faster and stronger rebound is eminently feasible.

After the sharp contraction in Q1 of FY21, the MPC expects growth to come in at (-)9.8 per cent in Q2, (-)5.6 per cent in Q3 and 0.5 per cent in Q4.

"Against all odds, we shall strive and revive," he said.

In a video live stream, he said RBI will "continue with the accommodative stance of monetary policy as long as necessary at least during the current financial year and into the next year to revive growth on a durable basis and mitigate the impact of COVID-19, while ensuring that inflation remains within the target going forward".

RBI saw inflation easing close to the targeted range of 4 per cent, plus or minus 2 pr cent, in the fourth-quarter ending March.

The governor noted that the recent pick-up in inflation is due to supply disruption and higher markups during the lockdown. Going forward, as supply chains are restored, inflation could ease to 4.5-5.4 per cent in the second half of FY21.

RBI's optimism on the inflation front is based on easing of supply-side disruption, weak demand conditions and bumper Kharif harvest as it expects the retail inflation to decline to 4.3 per cent in the first quarter of FY22.

In a bid to provide easy liquidity conditions, RBI announced Open Market Operations (OMO) worth Rs 20,000 crore, which will be used for buying Government of India securities.

OMO will also be extended to state development loans. This will ease the state's borrowing programmes amid lower collection of GST.

RBI also announced on tap TLTRO (Targeted Long Term Repo Operations) with tenors of up to three years for a total amount of up to Rs 1 lakh crore at a floating rate linked to the policy repo rate. The scheme will be available up to March 31, 2021.

Liquidity availed by banks under the scheme has to be deployed in corporate bonds, commercial papers, and non-convertible debentures issued by entities in specific sectors.

In order to facilitate higher credit flow to the retail and SME segments, RBI has decided to increase the definition of 'Regulatory Retail' threshold from Rs 5 crore to Rs 7.5 crore in respect of all fresh as well as incremental exposures.

This may incentivise banks to lend to this sector more as the new definition has increased the target segment.

RBI also rationalised risk weightage on home loans. All new housing loan risk will be linked only to the loan to value ratio.

The lower the ratio, the lower the risks and borrowers will get the interest rate benefits from institutions.

For exporters hit by the pandemic, RBI discontinued the system-based automatic caution-listing to allow them to realise export proceeds.

In order to facilitate swift and seamless payments in real-time for domestic businesses and institutions, RBI decided to make available the RTGS (Real Time Gross Settlement) system round-the-clock on all days from December.

In December last year, RBI had made available the National Electronic Fund Transfer (NEFT) system on a 24x7x365 basis.&nbsp;

The Reserve Bank of India (RBI) left key interest rates unchanged on Friday but signalled more easing ahead to support an economy that it sees contracting 9.5 per cent in the current fiscal.

The Reserve Bank of India (RBI) left key interest rates unchanged on Friday but signalled more easing ahead to support an economy that it sees contracting 9.5 per cent in the current fiscal. The six-member Monetary Policy Committee, with three newly inducted external members, voted unanimously to retain the benchmark repurchase or repo rate at 4 per cent while keeping its policy stance accommodative, implying it could ease again. Also read | In a first, World Trade Organization to be led by a woman The central bank had slashed the repo rate by 115 basis points since late March before hitting a pause button in August. To bring down borrowing cost, RBI announced a number of unconventional steps, including doubling of the size of open-market bond purchases to Rs 20,000 crore, offer to buy state debt, and easing a corporate cash crunch through a Rs 1 lakh crore of targeted long-term funds available on tap. Besides supporting economic activity, the measures are aimed at ensuring the government's record borrowing programme goes through smoothly. RBI Governor Shaktikanta Das said the economic growth, which slumped to a negative 23.9 per cent in the April-June quarter, will turn positive only in the final January-March quarter. "By all indications, the deep contractions of Q1 2020-21 (April-June) are behind us; silver linings are visible in the flattening of the active caseload curve across the country," he said. Barring the risk of a second wave of infections, the economy appeared poised to begin a recovery, he said, noting food grain production was set for record highs and factories and cities were coming back to life. With macro indicators pointing to a recovery, "GDP growth may break out of contraction and turn positive by Q4 (January-March)," he said. "For the year 2020-21 as a whole, therefore, real GDP is expected to decline by 9.5 per cent, with risks tilted to the downside," he said, adding that if the current momentum of upturn gains ground, a faster and stronger rebound is eminently feasible. After the sharp contraction in Q1 of FY21, the MPC expects growth to come in at (-)9.8 per cent in Q2, (-)5.6 per cent in Q3 and 0.5 per cent in Q4. "Against all odds, we shall strive and revive," he said. In a video live stream, he said RBI will "continue with the accommodative stance of monetary policy as long as necessary at least during the current financial year and into the next year to revive growth on a durable basis and mitigate the impact of COVID-19, while ensuring that inflation remains within the target going forward". RBI saw inflation easing close to the targeted range of 4 per cent, plus or minus 2 pr cent, in the fourth-quarter ending March. The governor noted that the recent pick-up in inflation is due to supply disruption and higher markups during the lockdown. Going forward, as supply chains are restored, inflation could ease to 4.5-5.4 per cent in the second half of FY21. RBI's optimism on the inflation front is based on easing of supply-side disruption, weak demand conditions and bumper Kharif harvest as it expects the retail inflation to decline to 4.3 per cent in the first quarter of FY22. In a bid to provide easy liquidity conditions, RBI announced Open Market Operations (OMO) worth Rs 20,000 crore, which will be used for buying Government of India securities. OMO will also be extended to state development loans. This will ease the state's borrowing programmes amid lower collection of GST. RBI also announced on tap TLTRO (Targeted Long Term Repo Operations) with tenors of up to three years for a total amount of up to Rs 1 lakh crore at a floating rate linked to the policy repo rate. The scheme will be available up to March 31, 2021. Liquidity availed by banks under the scheme has to be deployed in corporate bonds, commercial papers, and non-convertible debentures issued by entities in specific sectors. In order to facilitate higher credit flow to the retail and SME segments, RBI has decided to increase the definition of 'Regulatory Retail' threshold from Rs 5 crore to Rs 7.5 crore in respect of all fresh as well as incremental exposures. This may incentivise banks to lend to this sector more as the new definition has increased the target segment. RBI also rationalised risk weightage on home loans. All new housing loan risk will be linked only to the loan to value ratio. The lower the ratio, the lower the risks and borrowers will get the interest rate benefits from institutions. For exporters hit by the pandemic, RBI discontinued the system-based automatic caution-listing to allow them to realise export proceeds. In order to facilitate swift and seamless payments in real-time for domestic businesses and institutions, RBI decided to make available the RTGS (Real Time Gross Settlement) system round-the-clock on all days from December. In December last year, RBI had made available the National Electronic Fund Transfer (NEFT) system on a 24x7x365 basis.

RBI holds interest rates, sees economy contracting 9.5% in FY21 

The newly-constituted Monetary Policy Committee (MPC) of the Reserve Bank will begin its three-day deliberations on Wednesday amid expectations that the central bank this time around may refrain from changing the benchmark lending rates.

RBI'S MPC panel likely to hold rates

With the government appointing three members on the Monetary Policy Committee (MPC), the Reserve Bank on Tuesday said the next meeting of the rate setting panel will be held for three days beginning October 7.

On September 28, the RBI had postponed the meeting of the MPC, which must have a quorum of four, as the appointment of independent members was delayed. "The next meeting of the Monetary Policy Committee (MPC) is scheduled during October 7 to October 9, 2020," it said in a statement.

The government has appointed three eminent economists Ashima Goyal, Jayanth R Varma and Shashanka Bhide as members of the MPC.

The new members replace Chetan Ghate, Pami Dua, and Ravindra Dholakia.

They were appointed on the panel for four years on September 29, 2016.

With the government appointing three members on the Monetary Policy Committee (MPC), the Reserve Bank on Tuesday said the next meeting of the rate setting panel will be held for three days beginning October 7.

With the government appointing three members on the Monetary Policy Committee (MPC), the Reserve Bank on Tuesday said the next meeting of the rate setting panel will be held for three days beginning October 7. On September 28, the RBI had postponed the meeting of the MPC, which must have a quorum of four, as the appointment of independent members was delayed. "The next meeting of the Monetary Policy Committee (MPC) is scheduled during October 7 to October 9, 2020," it said in a statement. The government has appointed three eminent economists Ashima Goyal, Jayanth R Varma and Shashanka Bhide as members of the MPC. The new members replace Chetan Ghate, Pami Dua, and Ravindra Dholakia. They were appointed on the panel for four years on September 29, 2016.

RBI's next monetary policy panel meeting from October 7-9

The Reserve Bank of India (RBI) is likely to hold repo rate steady by maintaining status quo. Watch this video to know more.

India: RBI likely to hold repo rate steady

A committee set up by the Reserve Bank of India (RBI) to make recommendations on restructuring loans for the Indian banking sector has submitted its report and it has been broadly accepted, the RBI said.

The committee has recommended five financial ratios such as total outstanding liabilities, total debt and debt service coverage ratio for 26 sectors which could be factored in by lenders while finalizing resolution plans for borrowers.

Apart from these, banks can also consider other financial parameters. Lenders have been directed to consider the pre-COVID-19 financial performance of the company for considering the resolution plan.

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"It is good that the pre-COVID parameters are being considered as it will allow genuine companies to get a chance at restructuring which can be effective," said Siddharth Purohit, an analyst at SMC Instituional Equities.

These sectors include aviation, hospitality and real estate, which are some of the most stressed sectors in the economy due to the impact of the pandemic.

The RBI said it had broadly accepted the recommendations of the expert committee.

Now all eyes are on banks to see how the resolution framework is implemented.

"The broad parameters suggested by the committee specify the boundary conditions for restructuring but the efficacy of resolution plans would depend on the appropriateness of the assumptions taken by lenders while taking a view on business recovery," said Jitin Makkar, analyst at credit rating agency ICRA.

The RBI had formed a committee under K.V. Kamath, the former head of the New Development Bank, set up by the BRICS to come up with guidelines for the resolution framework.

Lenders will need to make an additional 10% provisioning for the loan accounts that are being restructured.

The RBI has previously warned that bad loans in the Indian banking system could rise to 15% in a worst-case scenario. Gross Non-performing assets in March were at 8.5% of total loans.

A committee set up by the Reserve Bank of India (RBI) to make recommendations on restructuring loans for the Indian banking sector has submitted its report and it has been broadly accepted, the RBI said.

A committee set up by the Reserve Bank of India (RBI) to make recommendations on restructuring loans for the Indian banking sector has submitted its report and it has been broadly accepted, the RBI said. The committee has recommended five financial ratios such as total outstanding liabilities, total debt and debt service coverage ratio for 26 sectors which could be factored in by lenders while finalizing resolution plans for borrowers. Apart from these, banks can also consider other financial parameters. Lenders have been directed to consider the pre-COVID-19 financial performance of the company for considering the resolution plan. Also read: Sebi seeks details of Chinese investments in India "It is good that the pre-COVID parameters are being considered as it will allow genuine companies to get a chance at restructuring which can be effective," said Siddharth Purohit, an analyst at SMC Instituional Equities. These sectors include aviation, hospitality and real estate, which are some of the most stressed sectors in the economy due to the impact of the pandemic. The RBI said it had broadly accepted the recommendations of the expert committee. Now all eyes are on banks to see how the resolution framework is implemented. "The broad parameters suggested by the committee specify the boundary conditions for restructuring but the efficacy of resolution plans would depend on the appropriateness of the assumptions taken by lenders while taking a view on business recovery," said Jitin Makkar, analyst at credit rating agency ICRA. The RBI had formed a committee under K.V. Kamath, the former head of the New Development Bank, set up by the BRICS to come up with guidelines for the resolution framework. Lenders will need to make an additional 10% provisioning for the loan accounts that are being restructured. The RBI has previously warned that bad loans in the Indian banking system could rise to 15% in a worst-case scenario. Gross Non-performing assets in March were at 8.5% of total loans.

RBI outlines guidelines on debt resolution for stressed sectors

The impact of the pandemic could cause a structural downshift in the potential output of Indian economy, the RBI said on Tuesday in its 2019-20 annual report.

Economic recovery post COVID-19 will be different from that of 2008

Indian government consumption will support current economic demand while private consumption is likely to lead a recovery that takes hold after the coronavirus pandemic eases, the central bank said on Tuesday.

June-quarter GDP data set to be released at the end of August is expected to show a contraction of 20 per cent, according to a Reuters poll.

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"An assessment of aggregate demand during the year so far suggests that the shock to consumption is severe, and it will take quite some time to mend and regain the pre-COVID-19 momentum," the Reserve Bank of India said in its annual report.

"Going forward, government consumption is expected to continue pandemic-proofing of demand."

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Private consumption will come back gradually with non-discretionary spending leading the way, until a durable increase in disposable incomes enables discretionary spending to catch up, the bank added.

"The upticks that became visible in May and June after the lockdown was eased in several parts of the country appear to have lost strength in July and August," the bank said.

This weakening was mainly due to reimposition or tougher imposition of lockdowns, suggesting that contraction in economic activity was likely to be prolonged into the second quarter, it added.

Key downside risks to growth are wider pandemic spread, a deviation of seasonal monsoon rains from the predicted normal volume and global financial market volatility, the bank said.

It called for the banking sector to be freed of a risk aversion that is impeding the flow of credit to productive sectors and undermining banks' role in the economy.

Despite a reduction in bad loans in March 2020, the banking system's resilience will be tested by the economic fallout of the pandemic, since measures to alleviate it had masked the consequent build-up of stress in the system, the bank said.

"Against this backdrop, a recapitalisation plan for public and private sector banks assumes critical importance," it added.

In a separate report, the RBI had warned that banks' bad loans could nearly double by the end of this fiscal year, while the capital adequacy ratio could fall to 11.8 per cent&nbsp;in a severely stressed situation.

The RBI's balance sheet increased 30.02 per cent&nbsp;by June 30, it added.

Indian government consumption will support current economic demand while private consumption is likely to lead a recovery that takes hold after the coronavirus pandemic eases, the central bank said on Tuesday.

Indian government consumption will support current economic demand while private consumption is likely to lead a recovery that takes hold after the coronavirus pandemic eases, the central bank said on Tuesday. June-quarter GDP data set to be released at the end of August is expected to show a contraction of 20 per cent, according to a Reuters poll. Also read: Indian public sector banks face fresh capital shortages, will need Rs 2.1 lakh crore: Moody's "An assessment of aggregate demand during the year so far suggests that the shock to consumption is severe, and it will take quite some time to mend and regain the pre-COVID-19 momentum," the Reserve Bank of India said in its annual report. "Going forward, government consumption is expected to continue pandemic-proofing of demand." Also read: India urges automakers to cut royalties to foreign parent companies: Report Private consumption will come back gradually with non-discretionary spending leading the way, until a durable increase in disposable incomes enables discretionary spending to catch up, the bank added. "The upticks that became visible in May and June after the lockdown was eased in several parts of the country appear to have lost strength in July and August," the bank said. This weakening was mainly due to reimposition or tougher imposition of lockdowns, suggesting that contraction in economic activity was likely to be prolonged into the second quarter, it added. Key downside risks to growth are wider pandemic spread, a deviation of seasonal monsoon rains from the predicted normal volume and global financial market volatility, the bank said. It called for the banking sector to be freed of a risk aversion that is impeding the flow of credit to productive sectors and undermining banks' role in the economy. Despite a reduction in bad loans in March 2020, the banking system's resilience will be tested by the economic fallout of the pandemic, since measures to alleviate it had masked the consequent build-up of stress in the system, the bank said. "Against this backdrop, a recapitalisation plan for public and private sector banks assumes critical importance," it added. In a separate report, the RBI had warned that banks' bad loans could nearly double by the end of this fiscal year, while the capital adequacy ratio could fall to 11.8 per cent in a severely stressed situation. The RBI's balance sheet increased 30.02 per cent by June 30, it added.

Indian government consumption key to demand growth in economy, says RBI

India’s policymakers should focus on protecting the economy as businesses struggle amid the coronavirus pandemic instead of being overly focused on what ratings agencies think, former Reserve Bank of India governor Raghuram Rajan said on Thursday.

“It is also important to convince both domestic and international investors that after the crisis associated with the pandemic is over, we will return to fiscal responsibility over the medium term, and the government should do more to convince them of that,” Rajan told the Global Markets Forum.

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India was placed under one of the strictest lockdowns in the world in late March for more than two months to stem the spread of the coronavirus, but cases have continued to rise steadily since the government eased restrictions in June, stymieing hopes of an economic recovery.

The government has announced several initiatives to help the poor and small, and medium-size businesses, but actual cash outgo from the government’s measures has been estimated at just about 1% of GDP.

Several attribute the fiscal prudence to fear of a downgrade after Moody’s cut India’s rating and outlook in early June followed closely by a change in outlook from Fitch.

<a href="https://www.wionews.com/india-news/india-china-standoff-indian-security-officials-seek-four-to-six-dedicated-satellites-along-lac-to-keep-an-eye-on-china-report-318634">Also read|&nbsp;India-China standoff: Indian security officials seek four to six dedicated satellites along LAC to keep an eye on China: Report</a>

The central bank on its part too has reduced the key lending rate by 115 basis points on top of the 135 bps last year but decided to hold rates steady earlier in the day against market expectations as inflation pressures have risen.

“The RBI and government have certainly been cooperating, but it seems like it is elsewhere, the ball is in the government’s court to do more,” Rajan said.

He said the RBI needs to focus on whether credit is reaching the stressed areas of the economy and also if the viable firms were able to access credit and not the unviable ones.

“And I think that’s where it has to focus its attentions, because resources, as you well know, are limited in India today.”

To ease debt strains on companies and lenders, the RBI on Thursday said it would allow restructuring of corporate loans by banks, a move that was widely awaited by the industry.

Governor Shaktikanta Das said there was room to cut rates further but the central bank will ensure inflation stays within its target range. Most analysts expect it to reduce rates once inflation is brought under control.

Government officials too have suggested the possibility of any more fiscal stimulus being announced, would only come in the second half of the fiscal year, once a recovery has taken root and coronavirus cases have peaked.

“What India should focus on at this point is protecting its economic capabilities, so that when it has dealt with the virus it can go resume activity in a reasonable way. That should be the focus,” Rajan said.

“And if it does that, there is no reason why the rating agencies will not see that as an appropriate policy”.

India’s policymakers should focus on protecting the economy as businesses struggle amid the coronavirus pandemic instead of being overly focused on what ratings agencies think, former Reserve Bank of India governor Raghuram Rajan said on Thursday.

India’s policymakers should focus on protecting the economy as businesses struggle amid the coronavirus pandemic instead of being overly focused on what ratings agencies think, former Reserve Bank of India governor Raghuram Rajan said on Thursday. “It is also important to convince both domestic and international investors that after the crisis associated with the pandemic is over, we will return to fiscal responsibility over the medium term, and the government should do more to convince them of that,” Rajan told the Global Markets Forum. Also read| With spike of 56,282 cases, India's COVID-19 tally reaches 19,64,537 India was placed under one of the strictest lockdowns in the world in late March for more than two months to stem the spread of the coronavirus, but cases have continued to rise steadily since the government eased restrictions in June, stymieing hopes of an economic recovery. The government has announced several initiatives to help the poor and small, and medium-size businesses, but actual cash outgo from the government’s measures has been estimated at just about 1% of GDP. Several attribute the fiscal prudence to fear of a downgrade after Moody’s cut India’s rating and outlook in early June followed closely by a change in outlook from Fitch. Also read| India-China standoff: Indian security officials seek four to six dedicated satellites along LAC to keep an eye on China: Report The central bank on its part too has reduced the key lending rate by 115 basis points on top of the 135 bps last year but decided to hold rates steady earlier in the day against market expectations as inflation pressures have risen. “The RBI and government have certainly been cooperating, but it seems like it is elsewhere, the ball is in the government’s court to do more,” Rajan said. He said the RBI needs to focus on whether credit is reaching the stressed areas of the economy and also if the viable firms were able to access credit and not the unviable ones. “And I think that’s where it has to focus its attentions, because resources, as you well know, are limited in India today.” To ease debt strains on companies and lenders, the RBI on Thursday said it would allow restructuring of corporate loans by banks, a move that was widely awaited by the industry. Governor Shaktikanta Das said there was room to cut rates further but the central bank will ensure inflation stays within its target range. Most analysts expect it to reduce rates once inflation is brought under control. Government officials too have suggested the possibility of any more fiscal stimulus being announced, would only come in the second half of the fiscal year, once a recovery has taken root and coronavirus cases have peaked. “What India should focus on at this point is protecting its economic capabilities, so that when it has dealt with the virus it can go resume activity in a reasonable way. That should be the focus,” Rajan said. “And if it does that, there is no reason why the rating agencies will not see that as an appropriate policy”.

India should focus on protecting economy, says ex-RBI governor

The Reserve Bank of India(RBI) today announced that key rates will remain unchanged.

The RBI kept repo rate unchanged at 4 per cent.&nbsp;RBI governor Shaktikanta Das declared that reverse repo rate also remains unchanged at 3.3 per cent.

<a href="https://www.wionews.com/opinions-blogs/cooperative-banks-now-subject-to-regulation-by-reserve-bank-of-india-317300">Also Read:&nbsp;Cooperative banks now subject to regulation by Reserve Bank of India</a>

While making the announcement, RBI governor Shaktikanta Das said that global financial markets remain buoyant, although he added that exports have contracted for the fourth straight month in June.

India's central bank said that the country's forex reserves are up by $56.8 billion, however it added that GDP growth will remain negative in the first half of the current year.

"For the year 2020-21 as a whole, real GDP growth is also estimated to be negative," it said.

The RBI governor added that although economic activity had picked up however due to fresh surge of coronavirus and lockdowns, several high-frequency indicators had levelled off.

"With coronavirus infections rising under fragile micro-economic and financial conditions, we propose to take regulatory and developmental measures including enhancing liquidity support for financial markets, ease financial stress caused by the virus while strengthening credit discipline," Shaktikanta Das stated.

The Reserve Bank of India(RBI) today announced that key rates will remain unchanged. The RBI kept repo rate unchanged at 4 per cent. RBI governor Shaktikanta Das declared that reverse repo rate also remains unchanged at 3.

The Reserve Bank of India(RBI) today announced that key rates will remain unchanged. The RBI kept repo rate unchanged at 4 per cent. RBI governor Shaktikanta Das declared that reverse repo rate also remains unchanged at 3.3 per cent. Also Read: Cooperative banks now subject to regulation by Reserve Bank of India While making the announcement, RBI governor Shaktikanta Das said that global financial markets remain buoyant, although he added that exports have contracted for the fourth straight month in June. India's central bank said that the country's forex reserves are up by $56.8 billion, however it added that GDP growth will remain negative in the first half of the current year. "For the year 2020-21 as a whole, real GDP growth is also estimated to be negative," it said. The RBI governor added that although economic activity had picked up however due to fresh surge of coronavirus and lockdowns, several high-frequency indicators had levelled off. "With coronavirus infections rising under fragile micro-economic and financial conditions, we propose to take regulatory and developmental measures including enhancing liquidity support for financial markets, ease financial stress caused by the virus while strengthening credit discipline," Shaktikanta Das stated.

Reserve Bank of India keeps key rates unchanged; exports contract for fourth straight month

As an offshoot to the unravelling of Punjab and Maharashtra Cooperative Bank debacle in 2019, the President, in exercise of the powers conferred by Clause (1) of Article 123 of the Constitution of India, promulgated the Banking Regulation (Amendment) Ordinance, 2020 (hereinafter referred to as the “Ordinance”) on 26.06.2020.&nbsp;

The ordinance has primarily been promulgated for bringing cooperative banks under the supervisory powers of the Reserve Bank of India (hereinafter referred to as “RBI”), in order to protect the interest of depositors across the country and strengthen cooperative banks by improving governance and oversight. The said intention of the central government was first intimated to the public by the finance minister, Nirmala Sitharaman during the presentation of the annual budget of the current financial year.

The ordinance effectively amends the Banking Regulation Act, 1949 (hereinafter referred to as the “Principal Act”) by extending powers already available with the Reserve Bank of India, in respect of other banks, to co-operative Banks as well for better management, sound banking regulation, ensuring professionalism and enabling their access to capital.&nbsp;

The ordinance does not take away the powers of the state registrars of co-operative societies under state co-operative laws. Furthermore, the ordinance does not affect Primary Agricultural Credit Societies or co-operative societies, having a primary object and principal business of long-term finance for agricultural development, and which do not use the words “bank”, “banker” or “banking” and do not act as drawees of cheques. The ordinance also amends Section 45 of the Principal Act, to enable making of a scheme of reconstruction or amalgamation of a banking company for protecting the interest of the public, depositors and the banking system and for securing its proper management, even without making an order of moratorium, so as to avoid disruption of the financial system.

Prior to the ordinance, the duty to regulate the cooperative banks was shared by the RBI and the respective state registrar’s of the cooperative societies. The role of the registrar was to have a statutory oversight over the incorporation, management, audit and liquidation of the such banks, while the role of the RBI was restricted to overlooking the mere maintenance of cash reserves and capital adequacy.&nbsp;

It is pertinent to note herein that this is the general regulatory role that RBI usually plays with respect to banks, irrespective of the nature of functioning. Therefore, following the irregularities uncovered in relation to such cooperative banks and with the intention to protect the hard earned money of approximately 8.6 crore depositors panning across 1,540 urban and multi-state cooperative banks, amounting to a total of up to Rs.4.84 lakh crores, the aforementioned ordinance was promulgated by the President of India. The Banking Regulation (Amendment) Bill, 2020 was previously introduced in the House of People on 03.03.2020 but could not be taken for consideration by the House of People due to the coronavirus pandemic.

Most cooperative banks, on account of the mismanagement prevalent therein, led to undercapitalisation and poor management and supervision thereby, leading to losses suffered by the innocent depositors.&nbsp;

In the past many years, the RBI has been seen to impose restrictions on lending and withdrawals on such banks, that are able to continue to operate with the explicit or implicit support from the government for years. However, subsequently they are wound up and their licence cancelled, thereby, increasing the sufferings of those innocent depositors, until the bank is finally liquidated.

With the promulgation of the ordinance by the President, the banks will now be audited according to the norms of the RBI instead of that of the state registrars. The central bank will also have the power to supersede the board of such banks by taking charge of certain banking actions for an interim period, but such can be done only when the bank in question is found to be in an exceptional circumstance; and with the consultation of the respective state government. The resultant effect of the ordinance is that the state registrars will continue to undertake the administrative functions, that they used to perform earlier, but simultaneously, the cooperative banks of the country have been made more answerable to the RBI.

The Principal Act provides that RBI may apply to the central government to place a banking company under a moratorium, during which, no legal action can be initiated or continued against the bank for a period of up to six months. Further, the bank cannot make any payment or discharge liabilities during this period. The ordinance, however, adds that during the period of moratorium, the bank cannot grant any loans or make investments in any credit instruments.

The Principal Act also stipulates that during the period of moratorium, RBI may prepare a scheme for reconstruction or amalgamation of the bank, if it is satisfied that such an order is needed to secure proper management of the bank, or in the interest of depositors, general public, or the banking system. However, the ordinance allows RBI to initiate such a scheme as mentioned above, without imposing a moratorium.

It is also pertinent to herein that the ordinance provides that a cooperative bank, with the prior approval of the RBI and such other conditions as mentioned therein, may issue equity shares, preference shares, or special shares on face value or at a premium to its members or to any other person residing within its area of operation, by way of public issue or private placements. Further, it may issue unsecured debentures or bonds or other like securities with maturity of not less than ten years to such persons.

In view of the aforesaid changes, the ordinance is, indeed, a positive move taken by the central government, with a view to help and end the misery of depositors by protecting their money deposited in such cooperative banks so that they do not have to face any inconveniences in the form of restrictions on daily withdrawals, as was seen in the Punjab and Maharashtra Cooperative Bank fiasco. Such a move would not only give the RBI more power to regulate cooperative banks but also safeguard the money of the depositors.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

As an offshoot to the unravelling of Punjab and Maharashtra Cooperative Bank debacle in 2019, the President, in exercise of the powers conferred by Clause (1) of Article 123 of the Constitution of India, promulgated the Banking Regulation (Amendment) Ordinance, 2020 (hereinafter referred to as the “Ordinance”) on 26.

As an offshoot to the unravelling of Punjab and Maharashtra Cooperative Bank debacle in 2019, the President, in exercise of the powers conferred by Clause (1) of Article 123 of the Constitution of India, promulgated the Banking Regulation (Amendment) Ordinance, 2020 (hereinafter referred to as the “Ordinance”) on 26.06.2020. The ordinance has primarily been promulgated for bringing cooperative banks under the supervisory powers of the Reserve Bank of India (hereinafter referred to as “RBI”), in order to protect the interest of depositors across the country and strengthen cooperative banks by improving governance and oversight. The said intention of the central government was first intimated to the public by the finance minister, Nirmala Sitharaman during the presentation of the annual budget of the current financial year. The ordinance effectively amends the Banking Regulation Act, 1949 (hereinafter referred to as the “Principal Act”) by extending powers already available with the Reserve Bank of India, in respect of other banks, to co-operative Banks as well for better management, sound banking regulation, ensuring professionalism and enabling their access to capital. The ordinance does not take away the powers of the state registrars of co-operative societies under state co-operative laws. Furthermore, the ordinance does not affect Primary Agricultural Credit Societies or co-operative societies, having a primary object and principal business of long-term finance for agricultural development, and which do not use the words “bank”, “banker” or “banking” and do not act as drawees of cheques. The ordinance also amends Section 45 of the Principal Act, to enable making of a scheme of reconstruction or amalgamation of a banking company for protecting the interest of the public, depositors and the banking system and for securing its proper management, even without making an order of moratorium, so as to avoid disruption of the financial system. Prior to the ordinance, the duty to regulate the cooperative banks was shared by the RBI and the respective state registrar’s of the cooperative societies. The role of the registrar was to have a statutory oversight over the incorporation, management, audit and liquidation of the such banks, while the role of the RBI was restricted to overlooking the mere maintenance of cash reserves and capital adequacy. It is pertinent to note herein that this is the general regulatory role that RBI usually plays with respect to banks, irrespective of the nature of functioning. Therefore, following the irregularities uncovered in relation to such cooperative banks and with the intention to protect the hard earned money of approximately 8.6 crore depositors panning across 1,540 urban and multi-state cooperative banks, amounting to a total of up to Rs.4.84 lakh crores, the aforementioned ordinance was promulgated by the President of India. The Banking Regulation (Amendment) Bill, 2020 was previously introduced in the House of People on 03.03.2020 but could not be taken for consideration by the House of People due to the coronavirus pandemic. Most cooperative banks, on account of the mismanagement prevalent therein, led to undercapitalisation and poor management and supervision thereby, leading to losses suffered by the innocent depositors. In the past many years, the RBI has been seen to impose restrictions on lending and withdrawals on such banks, that are able to continue to operate with the explicit or implicit support from the government for years. However, subsequently they are wound up and their licence cancelled, thereby, increasing the sufferings of those innocent depositors, until the bank is finally liquidated. With the promulgation of the ordinance by the President, the banks will now be audited according to the norms of the RBI instead of that of the state registrars. The central bank will also have the power to supersede the board of such banks by taking charge of certain banking actions for an interim period, but such can be done only when the bank in question is found to be in an exceptional circumstance; and with the consultation of the respective state government. The resultant effect of the ordinance is that the state registrars will continue to undertake the administrative functions, that they used to perform earlier, but simultaneously, the cooperative banks of the country have been made more answerable to the RBI. The Principal Act provides that RBI may apply to the central government to place a banking company under a moratorium, during which, no legal action can be initiated or continued against the bank for a period of up to six months. Further, the bank cannot make any payment or discharge liabilities during this period. The ordinance, however, adds that during the period of moratorium, the bank cannot grant any loans or make investments in any credit instruments. The Principal Act also stipulates that during the period of moratorium, RBI may prepare a scheme for reconstruction or amalgamation of the bank, if it is satisfied that such an order is needed to secure proper management of the bank, or in the interest of depositors, general public, or the banking system. However, the ordinance allows RBI to initiate such a scheme as mentioned above, without imposing a moratorium. It is also pertinent to herein that the ordinance provides that a cooperative bank, with the prior approval of the RBI and such other conditions as mentioned therein, may issue equity shares, preference shares, or special shares on face value or at a premium to its members or to any other person residing within its area of operation, by way of public issue or private placements. Further, it may issue unsecured debentures or bonds or other like securities with maturity of not less than ten years to such persons. In view of the aforesaid changes, the ordinance is, indeed, a positive move taken by the central government, with a view to help and end the misery of depositors by protecting their money deposited in such cooperative banks so that they do not have to face any inconveniences in the form of restrictions on daily withdrawals, as was seen in the Punjab and Maharashtra Cooperative Bank fiasco. Such a move would not only give the RBI more power to regulate cooperative banks but also safeguard the money of the depositors. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Cooperative banks now subject to regulation by Reserve Bank of India

According to experts, in the next monetary policy review, the RBI chairman may cut the policy rate repo by 0.25 percent

RBI may reduce interest rates by another 0.25 bps to revive economy

The representative organization of bank employees United Forum of Bank Unions (UFBU) and Indian Banks' Association (IBA) have agreed on a 15 per cent hike in the existing wage bill of 35 lenders, along with a first-of-its-kind performance-linked incentive (PLI) for state-owned banks.

The wage revision will be effective from 1 November, 2017. The wage revision will benefit nearly 10 lakh employees.

“The annual wage increase in salary and allowances is agreed at 15 per cent of the wage bill as of March 31, 2017, which works out to be Rs 7,898 crore on pay slip components (annually),” according to a memorandum of understanding between the Indian Banks’ Association and the United Forum of Bank Unions, representing workmen unions and officers’ associations.

"We are happy to state that in the meeting between the IBA and the UFBU at Mumbai, a broad understanding has been reached and a Memorandum of Understanding (MoU) was signed," All India Bank Employees' Association (AIBEA) General Secretary CH Venkatachalam said.

The new pay scales will be constructed after merging dearness allowance corresponding to 6352 points (average index point as applicable for the quarter of June-July, August, 2016) and adding thereon a loading of 2.5% on basic pay plus dearness allowance as on March 31, 2017 amounting to around ₹1,155 crore.

They also agreed for encashment of privilege leave at five days every year - seven days for workers and officers aged 55 and above - during any festival. 
&nbsp; 
The bank's contribution to National Pension Scheme will be raised to 14 per cent from the current 10 per cent.

(With inputs from agencies)

The representative organization of bank employees United Forum of Bank Unions (UFBU) and Indian Banks' Association (IBA) have agreed on a 15 per cent hike in the existing wage bill of 35 lenders, along with a first-of-its-kind performance-linked incentive (PLI) for state-owned banks.

The representative organization of bank employees United Forum of Bank Unions (UFBU) and Indian Banks' Association (IBA) have agreed on a 15 per cent hike in the existing wage bill of 35 lenders, along with a first-of-its-kind performance-linked incentive (PLI) for state-owned banks. The wage revision will be effective from 1 November, 2017. The wage revision will benefit nearly 10 lakh employees. “The annual wage increase in salary and allowances is agreed at 15 per cent of the wage bill as of March 31, 2017, which works out to be Rs 7,898 crore on pay slip components (annually),” according to a memorandum of understanding between the Indian Banks’ Association and the United Forum of Bank Unions, representing workmen unions and officers’ associations. "We are happy to state that in the meeting between the IBA and the UFBU at Mumbai, a broad understanding has been reached and a Memorandum of Understanding (MoU) was signed," All India Bank Employees' Association (AIBEA) General Secretary CH Venkatachalam said. The new pay scales will be constructed after merging dearness allowance corresponding to 6352 points (average index point as applicable for the quarter of June-July, August, 2016) and adding thereon a loading of 2.5% on basic pay plus dearness allowance as on March 31, 2017 amounting to around ₹1,155 crore. They also agreed for encashment of privilege leave at five days every year - seven days for workers and officers aged 55 and above - during any festival. The bank's contribution to National Pension Scheme will be raised to 14 per cent from the current 10 per cent. (With inputs from agencies)

Banks, trade unions agree on 15% wage hike for bank employees

The Reserve Bank of India (RBI) has told the Delhi High Court that Google Pay is a third party app provider (TPAP) and does not operate any payment systems.

Therefore, its operations are not in violation of the Payment and Settlement System Act of 2007, RBI has told a bench of Chief Justice D N Patel and Justice Prateek Jalan.

RBI has also told the court that since Google Pay does not operate any payment system, it does not find a place in the list of authorised payment system operators published by the National Payments Corporation of India (NPCI).

The RBI's submissions came in response to a PIL by financial economist Abhijit Mishra who has alleged that Google's mobile payment app, Google Pay or GPay in short, was facilitating financial transactions without the requisite authorisation from RBI.

Mishra has claimed that GPay was acting as a payments system provider in violation of the Payments and Settlements Act as it has no valid authorisation from the central bank of the country to carry out such functions.

He has also contended that GPay does not figure in NPCI's list of authorised 'payment systems operators' released on March 20, 2019.

The bench said the matter requires detailed hearing as it affects other third party apps and listed it on July 22.

The Reserve Bank of India (RBI) has told the Delhi High Court that Google Pay is a third party app provider (TPAP) and does not operate any payment systems. Therefore, its operations are not in violation of the Payment and Settlement System Act of 2007, RBI has told a bench of Chief Justice D N Patel and Justice Prateek Jalan.

The Reserve Bank of India (RBI) has told the Delhi High Court that Google Pay is a third party app provider (TPAP) and does not operate any payment systems. Therefore, its operations are not in violation of the Payment and Settlement System Act of 2007, RBI has told a bench of Chief Justice D N Patel and Justice Prateek Jalan. RBI has also told the court that since Google Pay does not operate any payment system, it does not find a place in the list of authorised payment system operators published by the National Payments Corporation of India (NPCI). The RBI's submissions came in response to a PIL by financial economist Abhijit Mishra who has alleged that Google's mobile payment app, Google Pay or GPay in short, was facilitating financial transactions without the requisite authorisation from RBI. Mishra has claimed that GPay was acting as a payments system provider in violation of the Payments and Settlements Act as it has no valid authorisation from the central bank of the country to carry out such functions. He has also contended that GPay does not figure in NPCI's list of authorised 'payment systems operators' released on March 20, 2019. The bench said the matter requires detailed hearing as it affects other third party apps and listed it on July 22.

Google Pay not a payment system operator: RBI to Delhi HC

The Reserve Bank of India (RBI) on Friday decided to cut the policy rate by 40 basis points from 4.4 per cent to 4 per cent. The reverse repo rate has been reduced to 3.35 per cent. It has also extended the moratorium on loan repayments by three more months.

Governor Shaktikanta Das said in a press briefing that the Monetary Policy Committee (MPC) unanimously voted to cut the repo rate keeping in mind the nation-wide lockdown.

"RBI's Monetary Policy Committee met again from May 20-22. MPC voted to 5:1 majority to reduce the policy repo rate by 40 basis points from 4.4 to 4 per cent," RBI Governor Shaktikanta Das said on Friday, adding that the GDP growth in India in 2020-21 is estimated to remain in the negative territory.

"India is seeing a collapse of demand. Private consumption has seen the biggest blow due to the Covid-19 outbreak, investment demand has halted. The government revenues have been impacted severely due to slowdown in economic activity," said the governor.

In a big relief to the corporate sector, the Reserve Bank of India allowed a three-month extension of the moratorium on payment of instalment concerning all term loans outstanding on March 1, 2020.

The moratorium, as announced by RBI on March 27, was ending on May 31. This has been extended till August 31 now.

Here are the top 5 announcements by RBI Governor Shaktikanta Das

<ul>
	<li>Repo rate cut by 40 basis points&nbsp;</li>
	<li>Loan moratorium extended for 3 months.&nbsp;</li>
	<li>Headline inflation could stay firm in the first half of 2020 but soften thereafter. If inflation trajectory evolves as expected, space will open up for more rate cuts.&nbsp;</li>
	<li>India GDP growth in 2020-21 is estimated to remain in negative territory.&nbsp;</li>
	<li>Regulatory measures to support exports, imports, states. 
	 
	(With inputs from agencies)</li>
</ul>

The Reserve Bank of India (RBI) on Friday decided to cut the policy rate by 40 basis points from 4.4 per cent to 4 per cent. The reverse repo rate has been reduced to 3.

The Reserve Bank of India (RBI) on Friday decided to cut the policy rate by 40 basis points from 4.4 per cent to 4 per cent. The reverse repo rate has been reduced to 3.35 per cent. It has also extended the moratorium on loan repayments by three more months. Governor Shaktikanta Das said in a press briefing that the Monetary Policy Committee (MPC) unanimously voted to cut the repo rate keeping in mind the nation-wide lockdown. "RBI's Monetary Policy Committee met again from May 20-22. MPC voted to 5:1 majority to reduce the policy repo rate by 40 basis points from 4.4 to 4 per cent," RBI Governor Shaktikanta Das said on Friday, adding that the GDP growth in India in 2020-21 is estimated to remain in the negative territory. "India is seeing a collapse of demand. Private consumption has seen the biggest blow due to the Covid-19 outbreak, investment demand has halted. The government revenues have been impacted severely due to slowdown in economic activity," said the governor. In a big relief to the corporate sector, the Reserve Bank of India allowed a three-month extension of the moratorium on payment of instalment concerning all term loans outstanding on March 1, 2020. The moratorium, as announced by RBI on March 27, was ending on May 31. This has been extended till August 31 now. Here are the top 5 announcements by RBI Governor Shaktikanta Das Repo rate cut by 40 basis points Loan moratorium extended for 3 months. Headline inflation could stay firm in the first half of 2020 but soften thereafter. If inflation trajectory evolves as expected, space will open up for more rate cuts. India GDP growth in 2020-21 is estimated to remain in negative territory. Regulatory measures to support exports, imports, states. (With inputs from agencies)

RBI announces emergency 40 basis point rate cut, 3-month loan moratorium extension

In order to boost the Indian economy Reserve Bank of India (RBI) in a move has reduced the key interest rates. Watch report.

RBI makes loans cheaper: Key interest rates reduced by 0.4%

The Reserve Bank of India (RBI) is set to open a special liquidity facility of upto Rs 50,000 &nbsp;crores ($6.6 billion) to help mutual funds tide over a severe liquidity strain imposed by the coronavirus pandemic and redemption pressures.

The prominent Franklin Templeton Mutual Fund said on Thursday it would wind up six credit funds for lack of liquidity following which fund houses in India have struggled to allay investors' fears of a flood of redemption requests.

"The stress is, however, confined to the high-risk debt mutual fund segment at this stage; the larger industry remains liquid," the RBI said, in a statement.

The RBI will now conduct repo operations for 90 days' tenor at the fixed repo rate and the funds will be available on-tap and open-ended.

Banks will need to access the funds from the RBI at the repo window and extend loans to mutual funds, buy outright corporate bonds or commercial papers from them or extend the funds against collateral through a repo.

Exposures under this facility will not be reckoned under the large exposures framework and stand to be classified as "held-to-maturity", even in excess of the permissible 25% of total investments, the central bank added.

India has reported 27,892&nbsp;coronavirus infections and 872&nbsp;deaths as of Monday morning.

The Reserve Bank of India (RBI) is set to open a special liquidity facility of upto Rs 50,000 crores ($6.6 billion) to help mutual funds tide over a severe liquidity strain imposed by the coronavirus pandemic and redemption pressures.

The Reserve Bank of India (RBI) is set to open a special liquidity facility of upto Rs 50,000 crores ($6.6 billion) to help mutual funds tide over a severe liquidity strain imposed by the coronavirus pandemic and redemption pressures. The prominent Franklin Templeton Mutual Fund said on Thursday it would wind up six credit funds for lack of liquidity following which fund houses in India have struggled to allay investors' fears of a flood of redemption requests. "The stress is, however, confined to the high-risk debt mutual fund segment at this stage; the larger industry remains liquid," the RBI said, in a statement. The RBI will now conduct repo operations for 90 days' tenor at the fixed repo rate and the funds will be available on-tap and open-ended. Banks will need to access the funds from the RBI at the repo window and extend loans to mutual funds, buy outright corporate bonds or commercial papers from them or extend the funds against collateral through a repo. Exposures under this facility will not be reckoned under the large exposures framework and stand to be classified as "held-to-maturity", even in excess of the permissible 25% of total investments, the central bank added. India has reported 27,892 coronavirus infections and 872 deaths as of Monday morning.

Coronavirus: RBI to open special liquidity window for mutual funds

India's Central Bank or Reserve Bank Of India in a move to support the capital market of the nation which is currently facing liquidity crunch due to ongoing COVID-19 Pandemic announces support of rs 50,000 crore.

RBI announces Rs 50,000 crore liquidity support to mutual funds

The domestic stock markets surged on Monday, with a major contribution from financial stocks after the Reserve Bank of India announced a Special Liquidity Facility (SLF) for Mutual Funds worth Rs 50,000 crore.&nbsp;

The S&amp;P BSE Sensex jumped 515 points, or over 1.6 per cent, to 31,840 levels and the Nifty50 index surpassed 9,300 levels. All the Nifty sectoral indices were in the green, led by Nifty Bank index, up 3 per cent.

Asian stock markets gained after Japan's central bank promised more asset purchases to shore up financial markets and more governments prepared to revive struggling economies by reopening businesses. Tokyo's benchmark surged 2.8 per cent and Shanghai, Hong Kong and Sydney also gained.

Meanwhile, The Reserve Bank of India on Monday announced a special liquidity facility of Rs 50,000 crores for mutual funds in the wake of the winding up of six debt funds by Franklin Templeton.

(With inputs from agencies)

The domestic stock markets surged on Monday, with a major contribution from financial stocks after the Reserve Bank of India announced a Special Liquidity Facility (SLF) for Mutual Funds worth Rs 50,000 crore.

The domestic stock markets surged on Monday, with a major contribution from financial stocks after the Reserve Bank of India announced a Special Liquidity Facility (SLF) for Mutual Funds worth Rs 50,000 crore. The S&P BSE Sensex jumped 515 points, or over 1.6 per cent, to 31,840 levels and the Nifty50 index surpassed 9,300 levels. All the Nifty sectoral indices were in the green, led by Nifty Bank index, up 3 per cent. Asian stock markets gained after Japan's central bank promised more asset purchases to shore up financial markets and more governments prepared to revive struggling economies by reopening businesses. Tokyo's benchmark surged 2.8 per cent and Shanghai, Hong Kong and Sydney also gained. Meanwhile, The Reserve Bank of India on Monday announced a special liquidity facility of Rs 50,000 crores for mutual funds in the wake of the winding up of six debt funds by Franklin Templeton. (With inputs from agencies)

Sensex ends 415 points higher after RBI announces liquidity facility for mutual funds

The Reserve Bank Of India has announced liquidity measures for banks and NPFC's and now the central bank has forecast a 7.4% GDP growth. Watch report.

RBI governor on revival of economy | India's GDP to grow at 7.4% in 2021-22

Prime Minister Narendra Modi on Friday said the announcements made by the Reserve Bank of India (RBI) would greatly enhance liquidity and improve credit supply.

"Today’s announcements by @RBI will greatly enhance liquidity and improve credit supply. These steps would help our small businesses, MSMEs, farmers and the poor. It will also help all states by increasing WMA limits," PM Modi said on Twitter.

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Today’s announcements by <a href="https://twitter.com/RBI?ref_src=twsrc%5Etfw">@RBI</a> will greatly enhance liquidity and improve credit supply. These steps would help our small businesses, MSMEs, farmers and the poor. It will also help all states by increasing WMA limits.
— Narendra Modi (@narendramodi) <a href="https://twitter.com/narendramodi/status/1251054144284065794?ref_src=twsrc%5Etfw">April 17, 2020</a></blockquote>
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RBI Governor Shaktikanta Das has announced new measures to maintain adequate liquidity in system, facilitate bank credit flow and ease financial stress.

The Bank cut the reverse repo rate and announced a slew of measures including re-finance window of Rs 50,000 crore and targeted long term repo auction of similar amount to deal with the impact of the COVID-19 pandemic.

The RBI also took another important measure of increasing the ways and means advances (WMA) limit of states. The move is expected to provide greater comfort to the states for undertaking COVID-19 containment and mitigation efforts, and to plan their market borrowing programmes better.

RBI governor Shaktikanta Das said WMA limit of states is being increased by 30 per cent. So the WMA limit of states increase by 60 per cent over and above the level as on March 31, 2020. The increased limit will be available till September 30, 2020, Das said.

Ways and means advances (WMA) is a mechanism used by RBI under its credit policy to provide to States, banking with it, to help them tide over temporary mismatches in the cash flow of their receipts and payments. This is repayable in each case not later than three months from the date of making that advance.

(with inputs from agencies)

Prime Minister Narendra Modi on Friday said the announcements made by the Reserve Bank of India (RBI) would greatly enhance liquidity and improve credit supply. "Today’s announcements by @RBI will greatly enhance liquidity and improve credit supply.

Prime Minister Narendra Modi on Friday said the announcements made by the Reserve Bank of India (RBI) would greatly enhance liquidity and improve credit supply. "Today’s announcements by @RBI will greatly enhance liquidity and improve credit supply. These steps would help our small businesses, MSMEs, farmers and the poor. It will also help all states by increasing WMA limits," PM Modi said on Twitter. Today’s announcements by @RBI will greatly enhance liquidity and improve credit supply. These steps would help our small businesses, MSMEs, farmers and the poor. It will also help all states by increasing WMA limits. — Narendra Modi (@narendramodi) April 17, 2020 × RBI Governor Shaktikanta Das has announced new measures to maintain adequate liquidity in system, facilitate bank credit flow and ease financial stress. The Bank cut the reverse repo rate and announced a slew of measures including re-finance window of Rs 50,000 crore and targeted long term repo auction of similar amount to deal with the impact of the COVID-19 pandemic. The RBI also took another important measure of increasing the ways and means advances (WMA) limit of states. The move is expected to provide greater comfort to the states for undertaking COVID-19 containment and mitigation efforts, and to plan their market borrowing programmes better. RBI governor Shaktikanta Das said WMA limit of states is being increased by 30 per cent. So the WMA limit of states increase by 60 per cent over and above the level as on March 31, 2020. The increased limit will be available till September 30, 2020, Das said. Ways and means advances (WMA) is a mechanism used by RBI under its credit policy to provide to States, banking with it, to help them tide over temporary mismatches in the cash flow of their receipts and payments. This is repayable in each case not later than three months from the date of making that advance. (with inputs from agencies)

RBI measures will enhance liquidity, help poor: PM Modi

After&nbsp;the lockdown-hit loan borrowers were relieved when&nbsp;last Friday's RBI announced three months moratorium on EMIs, now&nbsp;with a day to go for the new month and new EMI cycle to begin, borrowers still don't know what will happen to their monthly installments.

<a href="https://www.wionews.com/business-economy/no-need-to-panic-indian-banks-are-safe-and-stable-says-rbi-governor-shaktikanta-das-288832">Also Read: No need to panic, Indian banks are safe and stable, says RBI Governor</a>

Firstly, all customers don't know if there is an automatic moratorium on their loan installments or they need to inform banks about it. Also how to proceed if customers still want to pay EMIs and if there any benefit for those who are willing to pay up.

Customers are also worried as a majority of loan installments become due in the first week of the month and in case banks do not pause standing instructions for debiting bank accounts and the transaction fails, most banks charge a penalty ranging between Rs 200 to Rs 400.

The Reserve Bank of India on Friday had extended the deadline for meeting last tranche of capital conservation buffer (CCB) by another six months due to disruption caused because of the COVID-19 outbreak.

"Considering the potential stress on account of COVID-19, it has been decided to further defer the implementation of the last tranche of 0.625 per cent of the CCB from March 31 to September 30, 2020," RBI Governor Shaktikanta Das had said on Friday.

The RBI governor had said that CCB is designed to ensure that banks build up capital buffers during normal times, that are outside periods of stress which can be drawn down, as losses are incurred during a stressed period.

However, confusion reigns as banking sources say&nbsp;there is an absence of instructions from headquarter on the deferment of installment.&nbsp;

Some banks say they are working on ways to give options to their loan customers and customers will be informed about the options through SMS or emails in the coming days. &nbsp;

Borrowers will also be given an option to pay loan installments if they want to and these options could be given through a link on website but bankers also admit an exercise of this scale may take few more days considering the limitations on work as a result of the countrywide lockdown imposed to counter the coronavirus spread.&nbsp;

Also, banks may defer EMI deduction from accounts till a solution is achieved on solving the problem. as RBI has given the option "up to the bank", the implementation of the relief package rests with an individual ba

All banks want to be on the same page regarding the instructions which is causing delay in finding a unanimous solution as a single customer may have accounts in different ban

After the lockdown-hit loan borrowers were relieved when last Friday's RBI announced three months moratorium on EMIs, now with a day to go for the new month and new EMI cycle to begin, borrowers still don't know what will happen to their monthly installments.

After the lockdown-hit loan borrowers were relieved when last Friday's RBI announced three months moratorium on EMIs, now with a day to go for the new month and new EMI cycle to begin, borrowers still don't know what will happen to their monthly installments. Also Read: No need to panic, Indian banks are safe and stable, says RBI Governor Firstly, all customers don't know if there is an automatic moratorium on their loan installments or they need to inform banks about it. Also how to proceed if customers still want to pay EMIs and if there any benefit for those who are willing to pay up. Customers are also worried as a majority of loan installments become due in the first week of the month and in case banks do not pause standing instructions for debiting bank accounts and the transaction fails, most banks charge a penalty ranging between Rs 200 to Rs 400. The Reserve Bank of India on Friday had extended the deadline for meeting last tranche of capital conservation buffer (CCB) by another six months due to disruption caused because of the COVID-19 outbreak. "Considering the potential stress on account of COVID-19, it has been decided to further defer the implementation of the last tranche of 0.625 per cent of the CCB from March 31 to September 30, 2020," RBI Governor Shaktikanta Das had said on Friday. The RBI governor had said that CCB is designed to ensure that banks build up capital buffers during normal times, that are outside periods of stress which can be drawn down, as losses are incurred during a stressed period. However, confusion reigns as banking sources say there is an absence of instructions from headquarter on the deferment of installment. Some banks say they are working on ways to give options to their loan customers and customers will be informed about the options through SMS or emails in the coming days. Borrowers will also be given an option to pay loan installments if they want to and these options could be given through a link on website but bankers also admit an exercise of this scale may take few more days considering the limitations on work as a result of the countrywide lockdown imposed to counter the coronavirus spread. Also, banks may defer EMI deduction from accounts till a solution is achieved on solving the problem. as RBI has given the option "up to the bank", the implementation of the relief package rests with an individual ba All banks want to be on the same page regarding the instructions which is causing delay in finding a unanimous solution as a single customer may have accounts in different ban

In new month, bank customers confused over EMI deduction amid COVID-19 lockdown

RBI governor Shaktikanata Das address amid Covid-19 outbreak. Rbi lowered the key repo rate by 75 basis points (bps) to 4.4 per cent, to help the economic slowdown in the wake of the coronavirus outbreak. The reverse repo rate now stands at 4 per cent, down 90 bps.

RBI briefing amid coronavirus outbreak | Slashes Repo rate by 75 bps

Reserve Bank of India announced major rate cuts. RBI cut benchmark interest rate by 75 basis points to deal with the hardship caused by COVID-19 outbreak.

Fineprint: Reserve Bank of India's key announcements

Interest-rate sensitive bank, realty and auto shares which had mostly rallied during morning trade on Friday closed on a mixed note even after the Reserve Bank of India cut benchmark interest rate by 75 basis points to deal with the hardship caused by COVID-19 outbreak.

Shares of Federal Bank closed 6.34 per cent higher, Axis Bank 4.98 per cent, ICICI Bank 2.44 per cent, State Bank of India 1.66 per cent and Kotak Mahindra Bank 0.64 per cent.

In contrast, IndusInd Bank settled 5.94 per cent lower, City Union Bank fell 3.86 per cent, RBL Bank 2.93 per cent, and HDFC Bank 0.91 per cent.

The BSE Bank index closed 0.96 per cent higher at 22,965.51.

The Reserve Bank of India (RBI) on Friday cut benchmark interest rate by 75 basis points to 4.4 per cent to deal with the hardship caused due to the outbreak of COVID-19.

The central bank also reduced the cash reserve ratio (CRR) of all banks by 100 basis points to 3 per cent with effect from March 28 for 1 year.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services called the measures "A massive bazooka from the RBI in "mission mode".

He said it is a relief-cum-stimulus package with a big repo cut and even bigger reverse repo cut. This together with CRR cut will be a big stimulus for banks to lend. The combination of measures to boost liquidity, improve monetary transmission and relax repayment pressures will act with force multiplier in the economy.

Among realty companies, Sunteck Realty ended 9.93 per cent higher, Indiabulls Real Estate 4.89 per cent, Prestige Estates Projects 3.92 per cent and DLF 0.58 per cent, while Oberoi Realty dropped 5.66 per cent, Godrej Properties 3.78 per cent, Sobha 0.90 per cent and Omaxe fell 0.71 per cent.

The realty index dipped 0.78 per cent to close the trade at 1,427.65.

"Markets traded volatile and finally settled on a flat note, taking a breather after the recent recovery. The benchmark indices opened higher, however, gains soon fizzled out despite big and bold moves announced by the RBI to address liquidity needs and ensure financial stability," said Ajit Mishra, VP - Research, Religare Broking Ltd.

Among auto pack, shares of M&amp;M finished 2.83 per cent higher, Ashok Leyland 0.46 per cent, Apollo Tyres 0.49 per cent, while Hero MotoCorp dropped 8.04 per cent, TVS Motor Company 5.54 per cent, Maruti Suzuki India 4.81 per cent, Bajaj Auto 2.48 per cent and Tata Motors 0.21 per cent.

The auto index fell 2.35 per cent to close at 11,223.81.

"RBI has come out with lots of measures to ensure the stability of the financial system and inject liquidity in the market amid ongoing turmoil of pandemic,? said Amit Gupta, Co-Founder &amp; CEO, TradingBells.

He noted that it is a very good policy to cheer the market, but the problem is that the market has already rallied too much from lower levels ahead of policy and real trend decider for the market will be the trend in new cases of Covid-19 globally and locally.

Meanwhile, the domestic equity markets closed on a weak note with the benchmark Sensex falling 131.18 points to close at 29,815.59.

Interest-rate sensitive bank, realty and auto shares which had mostly rallied during morning trade on Friday closed on a mixed note even after the Reserve Bank of India cut benchmark interest rate by 75 basis points to deal with the hardship caused by COVID-19 outbreak.

Interest-rate sensitive bank, realty and auto shares which had mostly rallied during morning trade on Friday closed on a mixed note even after the Reserve Bank of India cut benchmark interest rate by 75 basis points to deal with the hardship caused by COVID-19 outbreak. Shares of Federal Bank closed 6.34 per cent higher, Axis Bank 4.98 per cent, ICICI Bank 2.44 per cent, State Bank of India 1.66 per cent and Kotak Mahindra Bank 0.64 per cent. In contrast, IndusInd Bank settled 5.94 per cent lower, City Union Bank fell 3.86 per cent, RBL Bank 2.93 per cent, and HDFC Bank 0.91 per cent. The BSE Bank index closed 0.96 per cent higher at 22,965.51. The Reserve Bank of India (RBI) on Friday cut benchmark interest rate by 75 basis points to 4.4 per cent to deal with the hardship caused due to the outbreak of COVID-19. The central bank also reduced the cash reserve ratio (CRR) of all banks by 100 basis points to 3 per cent with effect from March 28 for 1 year. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services called the measures "A massive bazooka from the RBI in "mission mode". He said it is a relief-cum-stimulus package with a big repo cut and even bigger reverse repo cut. This together with CRR cut will be a big stimulus for banks to lend. The combination of measures to boost liquidity, improve monetary transmission and relax repayment pressures will act with force multiplier in the economy. Among realty companies, Sunteck Realty ended 9.93 per cent higher, Indiabulls Real Estate 4.89 per cent, Prestige Estates Projects 3.92 per cent and DLF 0.58 per cent, while Oberoi Realty dropped 5.66 per cent, Godrej Properties 3.78 per cent, Sobha 0.90 per cent and Omaxe fell 0.71 per cent. The realty index dipped 0.78 per cent to close the trade at 1,427.65. "Markets traded volatile and finally settled on a flat note, taking a breather after the recent recovery. The benchmark indices opened higher, however, gains soon fizzled out despite big and bold moves announced by the RBI to address liquidity needs and ensure financial stability," said Ajit Mishra, VP - Research, Religare Broking Ltd. Among auto pack, shares of M&M finished 2.83 per cent higher, Ashok Leyland 0.46 per cent, Apollo Tyres 0.49 per cent, while Hero MotoCorp dropped 8.04 per cent, TVS Motor Company 5.54 per cent, Maruti Suzuki India 4.81 per cent, Bajaj Auto 2.48 per cent and Tata Motors 0.21 per cent. The auto index fell 2.35 per cent to close at 11,223.81. "RBI has come out with lots of measures to ensure the stability of the financial system and inject liquidity in the market amid ongoing turmoil of pandemic,? said Amit Gupta, Co-Founder & CEO, TradingBells. He noted that it is a very good policy to cheer the market, but the problem is that the market has already rallied too much from lower levels ahead of policy and real trend decider for the market will be the trend in new cases of Covid-19 globally and locally. Meanwhile, the domestic equity markets closed on a weak note with the benchmark Sensex falling 131.18 points to close at 29,815.59.

Interest-rate sensitive bank, realty, auto shares end on mixed note after RBI measures

Ex Finance secretary Ashok Jha appreciates Rbi' take on coronavirus outbreak. Wion has a conversation with Ashok Jha regarding the impact of coronavirus in global economy. Watch this conversation

Ex finance secy appreciate RBI's take on Coronavirus pandemic

Rbi holds a press conference on Yes Bank crisis. Rbi Governor Shaktikanta Das says, Depositors money is safe, Customers need not to worry.

Yes Bank Crisis: Rbi says, Depositor's money is safe

Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday said the central bank of India would provide necessary liquidity to cash-strapped Yes Bank if such a need arises. He added the money of the depositors was safe at Yes Bank, and that they should not withdraw it in panic.

"A swift action has been taken by the RBI and the government of India. The moratorium on Yes Bank will be lifted on March 18 at 6 pm. And the new board of the Yes Bank will take over on March 26. Also, the bank's identity will be retained as a private sector entity," Shaktikanta Das said, while addressing the media in New Delhi.

<a href="https://www.wionews.com/india-news/federal-bank-to-invest-rs-300-crore-in-yes-bank-286414">Also Read: Federal Bank to invest Rs 300 crore in Yes Bank</a>

He added, "I would like to convey to the depositors of Yes Bank, through you, that their money is completely safe and there is nothing to worry about. There is no reason for any undue worry," adding, "RBI will provide the necessary liquidity to the Yes Bank if need arises."

The RBI governor also said the Yes Bank is being credibly and sustainably restructured.

Das added that the Indian banking sector, including that of private banks, was sound and safe, and that State governments need not withdraw their money from private banks.

Finance Minister Sitharaman Nirmala Sitharaman had last week asked the RBI to report on the irregularities at the Yes Bank and the role of its leadership indicating a probe is on the way. The minister also assured that the employees' salaries would be protected for a year.

<a href="https://www.wionews.com/business-economy/yes-bank-crisis-anil-ambani-asked-to-appear-before-enforcement-directorate-today-286599">Also Read: Yes Bank crisis — Anil Ambani asked to appear before Enforcement Directorate</a>

Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday said the central bank of India would provide necessary liquidity to cash-strapped Yes Bank if such a need arises.

Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday said the central bank of India would provide necessary liquidity to cash-strapped Yes Bank if such a need arises. He added the money of the depositors was safe at Yes Bank, and that they should not withdraw it in panic. "A swift action has been taken by the RBI and the government of India. The moratorium on Yes Bank will be lifted on March 18 at 6 pm. And the new board of the Yes Bank will take over on March 26. Also, the bank's identity will be retained as a private sector entity," Shaktikanta Das said, while addressing the media in New Delhi. Also Read: Federal Bank to invest Rs 300 crore in Yes Bank He added, "I would like to convey to the depositors of Yes Bank, through you, that their money is completely safe and there is nothing to worry about. There is no reason for any undue worry," adding, "RBI will provide the necessary liquidity to the Yes Bank if need arises." The RBI governor also said the Yes Bank is being credibly and sustainably restructured. Das added that the Indian banking sector, including that of private banks, was sound and safe, and that State governments need not withdraw their money from private banks. Finance Minister Sitharaman Nirmala Sitharaman had last week asked the RBI to report on the irregularities at the Yes Bank and the role of its leadership indicating a probe is on the way. The minister also assured that the employees' salaries would be protected for a year. Also Read: Yes Bank crisis — Anil Ambani asked to appear before Enforcement Directorate

RBI will support Yes Bank by providing necessary liquidity if need arises: Shaktikanta Das

Union Ministers Nirmala Sitharaman, Piyush Goyal and Prakash Javadekar will brief media on the outcome of the cabinet meeting at 3 pm on Friday.

Chaired by Prime Minister Narendra Modi, the Cabinet is scheduled to meet today. According to Union Cabinet sources, Joint Secretaries of all five ministries, including the Ministry of External Affairs, Health, Civil Aviation, Finance and Commerce will address a press conference every day.

Also Read: <a href="https://www.wionews.com/india-news/yes-bank-crisis-will-not-let-any-institution-to-fall-says-fm-nirmala-sitharaman-284776">Yes Bank crisis: Will not let any institution to fall, says FM Nirmala Sitharaman</a>

The press conference comes at a time when the country is facing economic slowdown, coronavirus scare and Yes Bank crisis.

There are speculations that the Cabinet might give a nod to Reserve Bank of India's reconstruction scheme for the troubled Yes Bank.

Also Read: <a href="https://www.wionews.com/india-news/potential-investor-will-have-to-pick-up-49-stake-in-yes-bank-sbi-shown-willingness-rbi-284817">Potential investor will have to pick up 49% stake in Yes Bank; SBI shown willingness: RBI</a>

The State Bank of India had said on Thursday that it will buy 725 crore shares of Yes Bank at the price of Rs 10 per share, subject to regulatory approvals.

The Opposition has been targetting Centre over handling of economy and coronavirus outbreak.

So far 73 people were tested positive for COVID-19 in India. World Health Organisation (WHO) on Wednesday had declared the coronavirus outbreak a 'pandemic'&nbsp;and expressed deep concern.

Union Ministers Nirmala Sitharaman, Piyush Goyal and Prakash Javadekar will brief media on the outcome of the cabinet meeting at 3 pm on Friday. Chaired by Prime Minister Narendra Modi, the Cabinet is scheduled to meet today.

Union Ministers Nirmala Sitharaman, Piyush Goyal and Prakash Javadekar will brief media on the outcome of the cabinet meeting at 3 pm on Friday. Chaired by Prime Minister Narendra Modi, the Cabinet is scheduled to meet today. According to Union Cabinet sources, Joint Secretaries of all five ministries, including the Ministry of External Affairs, Health, Civil Aviation, Finance and Commerce will address a press conference every day. Also Read: Yes Bank crisis: Will not let any institution to fall, says FM Nirmala Sitharaman The press conference comes at a time when the country is facing economic slowdown, coronavirus scare and Yes Bank crisis. There are speculations that the Cabinet might give a nod to Reserve Bank of India's reconstruction scheme for the troubled Yes Bank. Also Read: Potential investor will have to pick up 49% stake in Yes Bank; SBI shown willingness: RBI The State Bank of India had said on Thursday that it will buy 725 crore shares of Yes Bank at the price of Rs 10 per share, subject to regulatory approvals. The Opposition has been targetting Centre over handling of economy and coronavirus outbreak. So far 73 people were tested positive for COVID-19 in India. World Health Organisation (WHO) on Wednesday had declared the coronavirus outbreak a 'pandemic' and expressed deep concern.

Sitharaman, Piyush Goyal, Prakash Javadekar to brief media on Union Cabinet decisions

ED Arrested Yes Bank's Founder Rana Kapoor in Money Laundering Case Amid deteriorating health of India's one of the top private bank, the Enforcement Directororate (ED) probe's Yes Bank's founder Rana Kapoor's Mumbai residence. He was later chagred in the money laundering case. And now in the latest coming in over the case, the ED now arrested Rana Kapoor in the same charges.

ED Arrested Yes Bank's Founder Rana Kapoor in Money Laundering Case

The Enforcement Directorate on Saturday widened the investigation into raids against Rana Kapoor at his residence and his three daughters.

ED probe widens amid Yes Bank crisis, raids Rana Kapoor & three daughters' residence

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