All posts tagged: RBIs

Where does the RBI’s surplus come from? | Explained

Where does the RBI’s surplus come from? | Explained

Published by Parlour News

The story so far: Putting an end to much speculation, the Reserve Bank of India’s Central Board on Friday (May 23, 2025) announced that it had decided to transfer ₹2.69 lakh crore to the Central government as a surplus for the year 2024-25. This is a record high transfer, 27% higher than the ₹2.11 lakh crore transferred the previous year, which itself was a record at the time. What had the government budgeted for? This ₹2.69 lakh crore is also higher than what the government itself budgeted — ₹2.56 lakh crore — as dividend or surplus from the RBI, and the public sector banks and insurance companies. With the RBI’s share itself exceeding this amount, this means the government’s total collections from this category is likely to be far in excess of what it budgeted. However, things have not always been so easy for the government when it comes to the RBI’s surplus. There have been strong arguments on both sides in the past on what should be done with the surplus the RBI earns, …

RBI’s monetary policy panel may cut repo rate by 25 bps to 6%: Here’s why | Business News

RBI’s monetary policy panel may cut repo rate by 25 bps to 6%: Here’s why | Business News

Published by Parlour News

The Reserve Bank of India’s (RBI) six-member Monetary Policy Committee (MPC) is likely to cut the repo rate — the key policy rate — by 25 basis points (bps) in its upcoming meeting, scheduled from April 7 to 9. The rate setting panel may also change the monetary policy stance from neutral to accommodative — signaling further reductions in the repo rate. The six-member rate-setting panel is meeting amid heightened uncertainty in the global market following the recent announcement of reciprocals tariffs by US President Donald Trump. There are fears that higher tariff rates may lead to inflation, increase in trade tensions and a lower growth in the world economy. While RBI is unlikely to revise the inflation forecast, its outlook on GDP growth in the wake of US tariff announcements will be closely watched, economists said. Story continues below this ad What to expect from the upcoming MPC meeting? The RBI’s MPC is likely to deliver a 25 bps cut in the repo rate for the second consecutive time in the policy which will …

Will banks, BSE, and NSE remain closed on March 31? Check RBI’s latest update

Will banks, BSE, and NSE remain closed on March 31? Check RBI’s latest update

Published by Webster

As the financial year 2024-25 comes to a close, the Reserve Bank of India (RBI) has announced that banks in India will remain open on Monday, March 31 2025, for special clearing operations. This move ensures that all government transactions are processed smoothly before the fiscal year ends. RBI cancels Eid-ul-Fitr bank holiday on March 31 Initially, March 31 was marked as a public holiday for banks across most states in observance of Eid-ul-Fitr. However, given that this date also coincides with the financial year-end, the RBI has issued a directive to keep banks operational. The decision is aimed at facilitating the seamless processing of government-related payments, tax collections, and financial settlements. Under the new arrangement, all agency banks involved in government transactions will be required to operate as per normal working hours on March 31. Furthermore, the RBI has instructed these banks to conduct special clearing operations, specifically for government cheques, under the Cheque Truncation System (CTS). Banking schedule and holiday adjustments With the cancellation of the Eid-ul-Fitr holiday, the banking schedule for the …

‘Bank.in, fin.in’: RBI’s latest measure to curb cyber financial fraud | Latest News India

‘Bank.in, fin.in’: RBI’s latest measure to curb cyber financial fraud | Latest News India

Published by Parlour News

The Reserve Bank of India announced on Friday that Indian banks will soon have an exclusive internet domain named ‘bank.in’. The apex bank added that non-bank financial entities will have the domain named ‘fin.in’. The decision has been taken to curb financial fraud and make online financial security more robust. The Reserve Bank of India (RBI) seal on a gate outside the RBI headquarters in Mumbai.(Reuters) RBI Governor Sanjay Malhotra, while unveiling the last bi-monthly monetary policy of this fiscal year, said registrations for ‘bank.in’ will commence from April 2025, and going forward ‘fin.in’ will be introduced. He added that the decision is aimed at enhancing trust in the financial sector. He also raised concerns over instances of fraud in digital payments. “To combat the same, the Reserve Bank of India (RBI) is introducing the ‘bank.in’ exclusive Internet Domain for Indian banks,” he was quoted as saying by news agency PTI. The initiative will likely reduce cyber security threats and malicious activities like phishing and streamline secure financial services. The Institute for Development and Research …

India’s forex reserves drop for fifth week amid RBI’s possible intervention to support rupee – India TV

India’s forex reserves drop for fifth week amid RBI’s possible intervention to support rupee – India TV

Published by Webster

Image Source : FREEPIK Coins, paper money and globe on white statistical background India’s foreign exchange reserves fell for the fifth consecutive week, falling $2.675 billion to $682.130 billion in the week ended November 1, according to RBI data. The record reserves of $704.885 billion are slowly dwindling, likely due to RBI intervention to support the rupee. Reserve levels falling after all-time highs Recent reserve declines that peaked last month included $3.7 billion, $10.7 billion, $2.16 billion and $3.463 billion in recent weeks. Current foreign reserves, including foreign currency assets (US$589.849 billion) and gold reserves (69.751 billion USD) was enough to cover about one year of projected imports. RBI’s guidelines for rupee stability While the RBI intervened to maintain market stability without a specific exchange rate target, it has historically managed the exchange rate by buying dollars when the rupee was stronger and sales when it was weak. This move has helped reduce volatility in the rupee, making it one of Asia’s most stable currencies and making India more attractive to foreign investors.   Disclaimer: …

RBI’s CBDC Yet Another Step in Taking Indian Payments Ahead, JPMorgan Blockchain Head Says

Published by Webster

The Reserve Bank of India (RBI) is overseeing the creation and distribution of the eRupee CBDC for retail and wholesale payment purposes. The central bank’s approach towards exploring the inclusion of the eRupee into the existing financial system has been praised by Naveen Mallela, global co-head of Onyx, JPMorgan’s blockchain and digital currency unit. Mallela was speaking along the sidelines of the Global Fintech Fest 2024 being held in Mumbai when he praised the RBI for gradually infusing blockchain with the existing financial system after extensive trials. “CBDCs is yet another step in taking Indian payments ahead. Such an understanding would emerge from the generation of user data in pilots. The actual introduction of CBDC can be phased in gradually,” Mallela reportedly said on Thursday. A CBDC (Central Bank Digital Currency) like the eRupee is the blockchain representation of fiat currencies, issued and regulated by the central banks. While they work like cryptocurrencies in terms of facilitating quick financial transactions, they are overseen and controlled by financial authorities. In India, the eRupee stepped into its …

RBI’s First Pilot for Retail Digital Rupee to Go Live on December 1, Will Work in Select Locations

Published by Webster

The Reserve Bank of India (RBI) is expanding the use cases of its digital rupee CBDC. Starting December 1, the testing for the Indian CBDC for retail purposes will kickstart in select regions in the country. Built on blockchain, the digital rupee is a virtual representation of India’s fiat currency that is intended to speed-up digital transactions and add a safety layer to it as well. As part of its retail testing, the CBDC will be used by merchants as well as customers, handpicked under the RBI oversight. As part of the trials, the CBDC will be given to the testers in a digital wallet, backed by national banks participating in these trials. The wallet will be compatible with smartphones, PCs, and tablets. “Transactions can be both Person to Person (P2P) and Person to Merchant (P2M). Payments to merchants can be made using QR codes displayed at merchant locations. The e₹-R would offer features of physical cash like trust, safety and settlement finality. As in the case of cash, it will not earn any interest …