Sri Lanka to seek $400m financial facility from RBI

Sri Lanka is set to enter into an agreement with the Reserve Bank of India for a currency swap worth $400 million to boost the foreign reserves and ensure the financial stability of the country which is badly hit by the COVID-19 pandemic, a top minister has said. Cabinet approved the proposal, enabling RBI to

HC order on Indiabulls NCD puts MFs in tight spot

The HC has granted Indiabulls, a non-banking financial company (NBFC), the permission to not pay its debenture holders, including fund houses, interest and principal as long as the RBI allows banks and NBFCs to offer moratorium to their borrowers. Fund managers now fear that other NBFCs may take the same route and not pay MFs

Lockdown: How RBI can help revive economy

The Reserve Bank of India has a number of policy options to draw upon to cushion the economic blow from the coronavirus pandemic. With a limited fiscal response so far, the RBI has provided some virus relief to the economy but analysts say these areas need to be addressed further like rate cuts, deficit financing,

RBI measures to incentivise banks to lend more: FM

Finance minister Nirmala Sitharaman on Friday said the RBI has taken a slew of steps to maintain adequate liquidity in the system, incentivise bank credit flows, ease financial stress and enable normal functioning of markets, as part of the second stimulus package to deal with the impact of COVID-19 pandemic. The first stimulus package was

‘RBI’s steps will enhance liquidity, improve credit supply,’ says PM Modi

PM Narendra Modi said that the RBI’s announcements “will greatly enhance liquidity and improve credit supply” in the system. PM Modi tweeted — “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

RBI cuts reverse repo rate by 25 bps to 3.75%: Key points

RBI governor Shaktikanta Das addressed the media amid the ongoing coronavirus crisis. Under liquidity adjustment facility (LAF), reverse repo rate (rate at which RBI borrows funds from banks) reduced by 25 basis points to 3.75%; repo rate unchanged (4.40%) as the decision is taken by the Monetary Policy Committee, Das announced.

RBI halves mkt hours for forex, Gsecs

The RBI has restricted operating hours for all the markets that it regulates from 10am to 2pm until April 17. The shorter hours will not impact retail bank customers as all their regular banking services — including Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT) and e-Kuber facilities — will continue to be

RBI reduces trading hours for debt, currency markets

The revised market timings will be effective during April 7-17, 2020, the central bank said in a circular on Friday. The market will open at 10 am instead of the current 9 am and closing timings too have been revised to 2 pm for all segments. The lockdown has adversely impacted the functioning of financial

RBI announces more measures to deal with Covid-19 pandemic

The Reserve Bank of India on Wednesday announced more measures to counter the economic fallout of the fast-spreading coronavirus pandemic. In a notification, the central bank mentioned that it has extended the realisation period of export proceeds, increased WMA (Way and Means Advances) limit and implemented countercyclical capital buffer.

FinMin, RBI meet on Tuesday to decide borrowing plan for FY21

The Finance Ministry and RBI will hold a meeting on Tuesday to decide on the government’s borrowing plan for the first half of 2020-21 amid the lockdown to contain the spread of coronavirus. According to sources, the government would resort to front-load it’s borrowing plan to deal with the challenges posed by COVID-19 on the

RBI announces steps to infuse Rs 1.37L cr liquidity

Amid stress in the financial system due to COVID-19, the Reserve Bank of India (RBI) on Friday announced measures to inject Rs 3.74 lakh crore into the banking system through a slew of instruments, including the reduction in cash reserve ratio. The other liquidity support measures included targeted long-term repo operation (TLTRO) and increasing the

RBI to inject Rs 30,000cr liquidity into market

The RBI will inject liquidity of Rs 30,000 crore through open market operations next week to maintain financial stability in the system in the wake of the coronavirus outbreak. The RBI has decided to conduct purchase of government securities under open market operations (OMOs) for an aggregate amount of Rs 30,000 crore in two tranches

Banks seek RBI nod for relief to borrowers hit by Covid-19

Relief to coronavirus-hit borrowers from being classified as defaulters and additional funding to help businesses tackle a shutdown are measures that lenders want the regulator to allow to help tide over the pandemic-triggered economic shock. The Indian Banks Association (IBA) has also created a working group to study the economic fallout of the coronavirus pandemic.

RBI to buy government bonds to boost liquidity

The Reserve Bank of India (RBI) will buy bonds on the open market for a total of Rs 10,000 crore ($1.35 billion) on Friday to try to keep all market segments liquid and stable, the central bank said on Wednesday. Spreads between government bonds and corporate bonds have risen in recent days because of the