RBI

The Reserve Bank of India has announced that 98.44 percent of Rs. 2,000 banknotes in circulation at the time of withdrawal have been returned to the banking system, marking one of the most comprehensive currency phase-outs in recent years. The update reflects the steady progress of the central bank’s calibrated liquidity management strategy following its decision to withdraw the high-denomination note. While the note remains legal tender, its presence in active circulation has diminished sharply.

The Reserve Bank of India has increased the permissible financing limit for acquisition-related transactions to 75%, offering greater leverage flexibility to banks funding mergers and buyouts. The move is expected to stimulate deal activity across sectors by allowing lenders to fund a larger portion of acquisition costs. By recalibrating prudential norms, the central bank aims to balance credit expansion with risk management safeguards. The policy adjustment arrives at a time when corporate consolidation and private equity activity are gaining traction.

The Reserve Bank of India has approved Bain Capital’s proposal to acquire a significant stake in Manappuram Finance, marking a pivotal moment for one of India’s leading non-banking financial companies. The regulatory clearance paves the way for fresh capital infusion, potential governance realignment, and enhanced strategic flexibility. Market participants view the transaction as a signal of renewed private equity interest in India’s shadow banking sector, particularly in gold-backed lending and microfinance.

India’s central bank has increased the permissible financing limit for acquisitions to 75%, a move that is expected to reshape deal-making dynamics across sectors. By expanding the share of transaction value that banks and financial institutions can fund, the Reserve Bank of India aims to stimulate corporate restructuring, strategic consolidation and capital formation. The policy adjustment comes at a time when Indian companies are pursuing scale through mergers and leveraged buyouts.

The Reserve Bank of India has sharpened its focus on ethics as a foundational pillar of financial stability, warning that regulatory compliance alone cannot safeguard the banking system. In recent remarks, the central bank underscored the need for integrity-driven governance, transparent decision-making, and robust accountability mechanisms across public and private lenders. The emphasis comes amid rising concerns over mis-selling, governance lapses, and reputational risks that threaten depositor confidence.

The government has approved long-awaited wage and pension revisions for employees of public sector insurance companies, the National Bank for Agriculture and Rural Development (NABARD), and the Reserve Bank of India (RBI), providing significant relief to thousands of current and retired staff. The decision aligns compensation structures with evolving economic conditions and inflationary trends, while addressing long-pending demands from employee unions.

The Reserve Bank of India has introduced significant changes to foreign exchange regulations governing banks, aiming to modernize forex operations, improve compliance, and strengthen risk management frameworks. The revised rules are designed to simplify procedures, provide greater operational flexibility to banks, and align India’s forex regime with evolving global standards. By refining reporting norms, exposure limits, and transaction guidelines, the central bank seeks to reduce systemic risks while supporting smoother cross-border trade and capital flows.

The Reserve Bank of India (RBI) is set to resume issuing licenses to urban co-operative banks (UCBs), marking a significant policy shift after years of regulatory restraint. The move reflects improved governance standards, tighter supervision, and a more robust regulatory framework within the co-operative banking sector. By reopening the licensing window, the central bank aims to strengthen financial inclusion, enhance credit access for small businesses and local communities, and encourage consolidation-driven stability.

A renewed debate over transparency in India’s banking system has emerged as the Central Information Commission (CIC) examines a dispute involving the Reserve Bank of India (RBI), commercial banks, and the disclosure of non-performing asset (NPA) data under the Right to Information (RTI) Act. At the heart of the matter is whether detailed borrower-level NPA information should be made public in the interest of accountability or protected to preserve financial stability and confidentiality.

The Reserve Bank of India has decided to defer the second phase of its enhanced cheque-clearing framework, a move aimed at ensuring operational stability and adequate preparedness across banks. The proposed upgrade was designed to further reduce cheque realisation timelines under the Cheque Truncation System (CTS), building on gains achieved in earlier phases. However, feedback from stakeholders highlighted the need for additional testing, infrastructure alignment, and risk mitigation.