RBI

In a move aimed at enhancing investment flexibility, the Reserve Bank of India (RBI) on Thursday relaxed regulations governing foreign portfolio investments (FPIs) in corporate debt securities. The central bank has withdrawn the short-term investment and concentration limits that previously applied to FPIs investing through the general route. This decision is part of the RBI’s ongoing efforts to simplify and liberalize investment processes, fostering a more conducive environment for foreign capital inflows.

The Reserve Bank of India (RBI) has unveiled a new framework aimed at standardizing the process for creating and amending regulations. Designed to ensure transparency and stakeholder participation, the framework requires the central bank to publish draft regulations along with impact analyses and statements of particulars for public review. With the addition of a mandatory 21-day consultation period, the initiative seeks to improve the quality of regulations and foster broader engagement from industry players and the general public.

In a move to strengthen compliance and enhance the consultative role in policymaking, the Reserve Bank of India (RBI) has officially recognized the Fixed Income Money Market and Derivatives Association of India (FIMMDA) as a Self-Regulatory Organization (SRO) within financial markets regulated by the central bank. This decision comes in line with the RBI's August 2024 framework for recognizing SROs, which aims to reinforce the compliance culture and governance standards within India's financial ecosystem.

The Federation of Indian Export Organisations (FIEO) has called on the Reserve Bank of India (RBI) to increase transparency and awareness regarding the Special Rupee Vostro Accounts (SRVA) system. The SRVA initiative, introduced in 2023, enables Indian exporters and their foreign counterparts to conduct trade in Indian rupees instead of traditional currencies like the US dollar or euro. However, many exporters remain unaware of which banks offer this service, limiting its potential use. FIEO President S.C.

India’s equity markets delivered robust returns in April 2025, with the BSE Sensex rising nearly 4% and the NSE Nifty advancing over 3.4%, driven by favorable macroeconomic indicators, a surge in foreign institutional investment, and renewed optimism surrounding trade talks with the United States. Despite heightened geopolitical tensions, including strained relations with Pakistan, investor sentiment remained buoyant. Positive forecasts for monsoon rainfall and more attractive equity valuations following earlier corrections further fueled buying momentum.

The Reserve Bank of India's (RBI) recent rate cuts are expected to cause a slight contraction in the profitability of banks in FY26, according to a report by Crisil Ratings. The Return on Assets (RoA), a critical profitability metric, is forecasted to decline by 0.10-0.20 percentage points to 1.1-1.2% from a two-decade high of 1.3% in FY25. This reduction is largely attributed to a compression in Net Interest Margins (NIMs) as loan rates decrease faster than deposit rates.

In a bid to streamline the availability of frequently used currency denominations, the Reserve Bank of India (RBI) has issued new directives for banks and White Label ATM Operators (WLAOs). The central bank's latest move requires ATMs to dispense Rs 100 and Rs 200 denomination notes, improving public access to these commonly used notes. Banks have been instructed to implement this change gradually, with the target set for full compliance by March 2026. This policy is aimed at addressing currency distribution challenges and ensuring smoother financial transactions for the general public.

As global economies confront heightened volatility and subdued growth projections, India is emerging as a beacon of resilience and opportunity. Reserve Bank of India (RBI) Governor Sanjay Malhotra, speaking at the US-India Economic Forum, underscored India’s sustained macroeconomic strength, policy consistency, and investor-friendly environment. With a projected growth rate of 6.5% in FY2024–25 and an average of 8.2% over the last four years, India continues to outperform its global peers.

The Reserve Bank of India (RBI) has revoked the licence of Jalandhar-based Imperial Urban Co-operative Bank, citing inadequate capital and earning potential. As part of the process, the bank is set for liquidation, with a liquidator to be appointed by the Punjab government. A significant majority of depositors are expected to receive their dues up to Rs 5 lakh, thanks to the Deposit Insurance and Credit Guarantee Corporation (DICGC). This closure underscores the challenges facing smaller cooperative banks struggling with financial stability and regulatory compliance.

In a strategic move following the Reserve Bank of India’s recent policy shift, leading public sector lenders Canara Bank and Indian Bank have reduced their repo-linked lending rates (RLLR) by 25 basis points. This reduction is expected to make home and vehicle loans more affordable for borrowers. Indian Bank has adjusted its home loan rates from 8.15% to 7.90%, while Canara Bank has reduced its starting rate for housing loans to 7.90%. These changes are part of broader efforts to enhance credit access in the Indian economy.