Private partners could help RBI run a digital currency

Source: Livemint Relevance: Issues in the implementation of a retail CBDC Synopsis: A two-tiered model for retail issuance of CBDC should be implemented by India. Issues involved and the way forward. Background Recently, a deputy governor of the Reserve Bank of India (RBI) announced that RBI is working on a “phased implementation strategy” for the… Continue reading Private partners could help RBI run a digital currency

‘GNPA ratio may rise up to 11.2% in FY22’

Sources: The Hindu, The Business Standard (Article 1, Article 2) Syllabus: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Relevance: The problem of NPA is still impacting the Indian economy and the recent Financial Stability Report also highlights it. About the news: The Reserve Bank of India (RBI) recently… Continue reading ‘GNPA ratio may rise up to 11.2% in FY22’

Kamath committee picks 26 sectors for loan restructuring, says RBI

News: Reserve Bank of India has released the K V Kamath-led Committee report and has broadly accepted its recommendations. Facts: Background: RBI had formed a five-member committee under the chairmanship of KV Kamath to make recommendations on the financial parameters and the sectors to be considered for the one-time restructuring of loans impacted by the… Continue reading Kamath committee picks 26 sectors for loan restructuring, says RBI

RBI releases revised Priority Sector Lending(PSL) guidelines

News: Reserve Bank of India(RBI) has released revised priority sector lending (PSL) guidelines to augment funding for COVID-19 impacted companies. Facts: Aim: To align Priority Sector lending with emerging national priorities and bring sharper focus on inclusive development. Key Revised PSL Guidelines: Bank finance for start-ups (up to ₹50 crore), loans to farmers for installation… Continue reading RBI releases revised Priority Sector Lending(PSL) guidelines

RBI unveils framework for retail payments entity

News: Reserve Bank of India(RBI) has released a ‘Framework for Authorisation of Pan-India Umbrella Entity for Retail Payments’. Facts: In February 2020, RBI had proposed to create an alternative umbrella organisation for retail payments to prevent the monopoly of National Payment Corporation of India(NPCI). About the Framework: New umbrella entity(NUE): It shall be a company… Continue reading RBI unveils framework for retail payments entity

Reserve Bank of India introduces Positive Pay mechanism

News: Reserve Bank of India(RBI) has introduced a Positive Pay mechanism to make cheque payments safer and reduce instances of frauds. Facts: What is Positive Pay Mechanism? It is a fraud detection tool adopted by banks to protect customers against forged, altered or counterfeit cheques. How does it work? It cross verifies all details of… Continue reading Reserve Bank of India introduces Positive Pay mechanism

Reserve Bank of India’s(RBI) monetary policy review

News: The Reserve Bank of India has released its monetary policy committee (MPC) report. Facts: Key Highlights: Repo Rate:It is the rate at which the RBI lends money to the banks for a short term.It remains unchanged at 4%. Reverse Repo Rate:It is the short term borrowing rate at which RBI borrows money from banks.It… Continue reading Reserve Bank of India’s(RBI) monetary policy review

Urban, multi-State cooperative banks to come under RBI supervision

News: The Central government has approved an Ordinance to bring all urban and multi-state co-operative banks under the direct supervision of the Reserve Bank of India(RBI). Facts: Aim: To empower more security to depositors and to prevent instances of fraud and serious financial irregularities such as the major scam at Punjab and Maharashtra Co-operative(PMC) Bank… Continue reading Urban, multi-State cooperative banks to come under RBI supervision

RBI proposes new rules for housing finance companies

News: Reserve Bank of India(RBI) has proposed new guidelines for Housing Finance Companies(HFCs). Facts: What are Housing Finance Companies(HFC)? It means financing for purchase, construction or repair of residential dwelling units and some other activities including giving loans to corporates and government agencies for employee housing projects. All other loans including those given for furnishing… Continue reading RBI proposes new rules for housing finance companies