PSBs target nearly $30 billion under RBI’s concessional forex swap window
India’s state-owned banks are targeting mobilisation of nearly $30 billion through FCNR(B) deposits, overseas foreign currency borrowings (OFCBs), and external commercial borrowing (ECB) under the Reserve Bank of India’s (RBI’s) concessional swap window, data compiled by Business Standard based on these banks’ post-earnings commentary showed. Data shared by the government in Parliament showed that net […]
El Niño, below-normal rainfall could hit NBFCs’ rural loan books
A below-normal monsoon and the risk of El Niño affecting rural cash flows could emerge as key risks for non-banking financial companies (NBFCs) such as Mahindra & Mahindra Financial Services (Mahindra Finance), Shriram Finance, HDB Financial Services and others, prompting lenders to step up portfolio monitoring and underwriting in vulnerable segments. The India Meteorological Department […]
NBFC gold jewellery loans jump 69 pc in June, fastest across segments
Non-Banking Financial Company gold loans surged significantly by June 2026. Retail credit remained the primary driver for NBFC lending growth. Housing and vehicle loans also showed robust expansion during this period. Agriculture credit accelerated sharply, while industrial sector growth slowed down. Services sector lending moderated as trade and transport operators expanded credit slower. economictimes https://economictimes.indiatimes.com/industry/banking/finance/banking/nbfc-gold-jewellery-loans-jump-69-pc-in-june-fastest-across-segments-rbi-data/articleshow/133036116.cms
Loans against FCNR B deposits exempt from priority sector
The Reserve Bank of India has announced an exemption for loans against specific foreign currency deposits, particularly fresh FCNR(B) and NRE term deposits. This strategic shift ensures these loans will not factor into the mandatory priority sector lending requirements. Such measures have notably enhanced foreign exchange inflows. Additionally, there is a special facility available for […]
RBI proposes a leverage ratio of 3.5% for ‘important’ global banks
The Reserve Bank of India has proposed new leverage ratio requirements for banks. Globally systemic important banks will face a minimum 3.5% ratio plus a buffer. Domestic systemically important banks will continue with their 4% ratio mandate. Other commercial banks will maintain the existing 3.5% leverage ratio. These proposals align with the Basel Committee on […]
NBFC credit surges 14.4% to ₹59.3 lakh crore in June, retail loans lead growth
Non-banking finance company credit grew 14.4 percent year-on-year in June. Retail loans saw the fastest expansion, increasing by 20.3 percent. Housing and vehicle loans, and gold jewellery loans showed robust growth. Credit to industry expanded by 6.7 percent, while services sector credit grew 17.6 percent. Agriculture and allied activities credit increased significantly by 17.9 percent. […]
RBI plans to introduce polymer banknotes from FY28
The central bank has initiated the tendering process to procure polymer substrate and will test the notes under Indian climatic and usage conditions before deciding on a wider rollout. “We are still at a pilot stage. We will test and check how they perform in Indian conditions, climate, and other infrastructure we have put in […]
MUFG lifts RBI forex inflow forecast to $87 bn as FCNR(B) flows surge
Following robust mobilisation in the first two months after the Reserve Bank of India (RBI) operationalised its concessional forex swap window, under which it subsidises banks’ hedging costs on fresh FCNR(B) deposits, overseas foreign currency borrowings (OFCBs) and external commercial borrowings (ECBs), Japan’s MUFG Bank has sharply raised its estimate of inflows under the RBI’s […]
Insurance sector poised for growth, but profitability concerns persist
In its report, India Insurance Sector Trends: Potential Evident, Caution Warranted, the global ratings agency said liberalisation, increased competition and ongoing regulatory reforms are reshaping India’s insurance industry, creating growth opportunities while exposing insurers to underwriting challenges. “Favourable regulatory reforms are attracting foreign capital to India’s insurance sector and adding to growth momentum. However, […]
Only 4% of UPI transactions to merchants may draw fee
One in every 25 UPI payments to businesses may attract a fee when the Taxation and Other Laws (Amendment) Bill, 2026 is implemented. This calculation is based on UPI payment data from 2025-26. This means that an overwhelming 96 per cent of the number of UPI transactions to merchants will not attract any fee, technically […]