The Reserve Bank of India (RBI) has announced that banking system liquidity will peak in September due to inflows from Foreign Currency Non-Resident (B) deposits. However, economists expect the surplus to be short-lived, prompting the RBI to withdraw excess liquidity.
The Reserve Bank of India (RBI) has assigned Lead Bank Responsibility to the State Bank of India for the new districts in Ladakh, marking a significant development in the region’s banking landscape. The move is expected to boost economic growth and financial inclusion in the area.
India’s Balance of Payments (BoP) witnessed a significant shift in the first quarter of 2026-27, recording an $8.1 billion deficit, primarily driven by a sharp reversal in portfolio flows. Experts anticipate a largely positive capital account in coming quarters due to RBI measures.
Indian Bank is set to tap into the RBI’s concessional swap window to raise $400 million through External Commercial Borrowings (ECB) this week, in a bid to support its business growth. The bank aims to garner $1 billion from the ECB and about $2 billion via FCNR (B) deposits.
The Indian government’s efforts to boost dollar inflows have led to a surge in foreign lending, with the India Infrastructure Finance Company (IIFCL) planning to borrow $1 billion from overseas investors. The company is also exploring a separate $400 million funding from the Asian Development Bank (ADB) for a 20-year loan.
The Reserve Bank of India’s (RBI) deadline extension for swap support has left banks scrambling to secure short-term loans abroad to finance FCNR(B) clients, potentially at a higher rate. This move exposes banks to risks of higher payouts immediately and uncertain market conditions.
The Reserve Bank of India (RBI) has imposed penalties on Bank of Baroda and GIC Housing Finance Ltd for non-compliance with KYC guidelines, highlighting the importance of robust risk management and regulatory compliance in the banking sector.
The Reserve Bank of India’s surprise move to close its concessional diaspora-deposit forex swap window a month early has dented sentiment in the Indian bond market, adding pressure to already firm oil prices. Traders await minutes of the RBI’s August monetary policy decision for fresh cues.
The Reserve Bank of India (RBI) has temporarily lifted the rate caps on foreign currency non-resident bank (FCNR-B) deposits and non-resident external (NRE) accounts, allowing banks to offer higher interest rates to attract long-term deposits. This move is expected to benefit banks facing challenges in building long-term liabilities and maintaining liquidity buffers.
The Indian equity market witnessed a significant surge last week, with ICICI Bank leading the way with a growth of Rs 1.90 lakh crore. The market rally was driven by improving global sentiment and supportive measures from the RBI.
