Budget 2020

Reserve Bank issues rules for HFCs

The RBI on Wednesday issued directives to housing finance companies (HFCs) on maintenance of liquidity coverage ratio, risk management, asset classification and loan-to-value ratio. It said the directions, took immediate effect and were aimed at protecting the interests of investors and depositors. “All non-deposit taking HFCs with asset size of ₹100 crore and above and […]

Budget 2020

RBI to restore cash reserve ratio in two phases to 4%

Due to disruption caused by COVID-19, the CRR of all banks was reduced by 100 basis points to 3.0%. The Reserve Bank on Friday decided to restore the cash reserve ratio (CRR) in a phased manner to 4% in light of improved liquidity condition in the market. The CRR is the percentage of the total […]

Budget 2020

Banks pass on less than half of rate cuts signalled by the Reserve Bank of India since March

MUMBAI: Even as the Reserve Bank has been aggressively signaling lower rates to revive the economy since the pandemic induced nation-wide lockdown by making the cost of borrowing cheaper, banks have transmitted less than half of these rate cuts. Despite the RBI signaling 115 basis point(one bps is 0.01%) reduction of its benchmark repo rate […]

Budget 2020

Reserve Bank of India looks to sort out e-KYC matter for non-bank lenders

Kolkata: The Reserve Bank of India and the government are working closely on how to allow the Aadhaar-based digital customer authentication facility to non-bank entities to help them to reach out and cater to a wider section of population, two people familiar with the matter said. This assumes significance amid the spread of coronavirus when […]