Post fund infusion, ICRA revises rating for 6 PSBs

Credit Rating agency,ICRA has revised the outlook of six public sector banks,of which five are positive revisions.The ratings were revised after the capital infusion in these banks by the government. Earlier,RBI had also removed them from Prompt Corrective Action (PCA) after the infusion of capital in these banks.PCA is a process or mechanism to ensure… Continue reading Post fund infusion, ICRA revises rating for 6 PSBs

RBI to inject liquidity via forex swaps

The Reserve Bank has decided to inject long-term liquidity into the system through foreign exchange swap arrangement.The word swap means exchange.Under this arrangement,banks would be required to keep dollar funds with RBI with a deal to buy it back from the RBI after three years. Swap is a new tool to enhance liquidity in the… Continue reading RBI to inject liquidity via forex swaps

SBI links savings account, short term loan rates to repo rate

State Bank of India (SBI) has decided to link its interest rate on savings account with balance above ₹1 lakh and short-term loans to Reserve Bank of India’s (RBI) repo rate. Repo stands for ‘Repurchasing Option’.It refers to the rate at which commercial banks borrow money from the RBI.It is one of the main tools… Continue reading SBI links savings account, short term loan rates to repo rate

7 banks fined for delayed SWIFT implementation

Reserve Bank of India(RBI) have imposed a monetary fine on 7 Banks for non-compliance with the directions on Implementing the SWIFT software, Society for Worldwide Interbank Financial Telecommunication(SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment.In other words,It transports messages… Continue reading 7 banks fined for delayed SWIFT implementation

RBI takes 3 banks off prompt corrective action framework

The Reserve Bank of India (RBI) took three more banks out of the prompt corrective action (PCA) framework, following an improvement in the public-sector banks’ (PSBs) financial ratios after a fresh round of capital infusion in them by the government. PCA is a process or mechanism to ensure that banks don’t go bust.Under it, RBI… Continue reading RBI takes 3 banks off prompt corrective action framework

RBI to transfer Rs 28,000 crore interim surplus to government

Reserve Bank will transfer an interim dividend of Rs 28,000 crore to the government, a move that will help the Centre keep fiscal deficit in check.RBI has already transferred Rs 40,000 crore in current year (2018-19). Interim dividend is a payment made during the course of a financial year.RBI is a “full service” central bank… Continue reading RBI to transfer Rs 28,000 crore interim surplus to government

Will try to lift more banks from PCA

1.The government said they will try to help lift the restrictions on other public sector banks too after the Reserve Bank of India (RBI) lifted restrictions under prompt corrective action (PCA) on three public sector banks last week. 2.The PCA framework kicks in when banks breach any of the three key regulatory trigger points —… Continue reading Will try to lift more banks from PCA

Govt-RBI call truce after a marathon board meeting

Govt-RBI call truce after a marathon board meeting News: The government and Reserve Bank of India have found a middle ground on the contentious issues between the two in the board meeting held recently. Important Facts: The Reserve Bank and the government have agreed to refer to an expert committee the following issues: The appropriate… Continue reading Govt-RBI call truce after a marathon board meeting