RBI

Chaturvedi: ICICI’s non-exec chairman

RBI has approved the appointment of Girish Chandra Chaturvedi as non-executive (part-time) Chairman of the ICICI bank till June 30, 2021. Girish Chandra Chaturvedi was previously the petroleum secretary. ICICI Bank announced that Kochhar has decided to go on leave till the completion of an external inquiry into the matter of lending loan to Videocon group.

Manufacturing sector records robust growth

RBI has revealed that India’s manufacturing sector recorded robust growth in sales and improvement in operating profit growth in the 4th quarter of the last fiscal. Companies posted sales of ` 9.25 lakh crore in the last quarter of 2017-18. Operating profit growth of the manufacturing sector improved despite increase in input costs, due to higher growth in value of production.

Forex reserve fell to 10.8 months

RBI in its biannual report announced that import cover of foreign exchange (Forex) reserve had fallen to 10.8 months in December. The Forex reserve is India’s holdings of cash, bank deposits, bonds denominated in currencies other than, the Indian rupee and managed by the RBI. Import cover is an indicator for currency’s stability, typically a 10 months cover is seen as stable for the economy.

Cryptocurrency transactions to be ceased

No transactions in cryptocurrencies will be made by the commercial banks from 6th July onwards as per the RBI directive. RBI had already barred all its regulated entities in order to curb money laundering and other financial irregularities and protect consumers. All the regulated entities have been given 3 months to exit their relationship with businesses and individuals.

YES Bank to launch Mutual Fund Business

Private lender YES Bank announced that it has received final regulatory approval from the Securities & Exchange Board of India (SEBI) to start mutual fund business. This approval is subsequent to the Reserve Bank of India’s (RBI) approval. YES Asset Management (India), a wholly owned subsidiary of YES Bank, will launch fund offerings across the spectrum in both debt and equity markets.

DBS Bank to launch subsidiary in India

DBS Bank of Singapore will launch its subsidiary in India in Oct 2018, the 2nd foreign bank in the country to convert its local operations. The bank has invested another ` 500 Cr in March 2018 to take the total capital in India to Rs 5000 Cr and plans to expand to 50 branches. State Bank of Mauritius was the 1st to open a local subsidiary after RBI came out with the regulations in 2013.

MK Jain takes charge as RBI deputy governor

M.K. Jain has assumed charge as the fourth Deputy Governor of the Reserve Bank of India (RBI).Jain has come in place of SS Mundra who retired last year. Jain was the MD & CEO of IDBI Bank before being appointed as Deputy Governor for a term of three years. The other 3 deputy governors are N S Vishwanathan, Viral V Acharya and B P Kanungo.

RBI revised Housing Loan limits

RBI revised the upwards housing loan limits under Priority Sector Lending (PSL). Housing loans of up to Rs 35 lakh for residences costing less than Rs 45 lakh will now be treated as PSL to give a boost to the low-cost segment. The housing loan limits for eligibility under priority sector lending will be revised to Rs 35 lakh in metropolitan centres and to Rs 25 lakh in other centres.

RBI alters ‘relative’ definition

The Reserve Bank of India (RBI) has narrowed the definition of relatives to check the flow of funds. Hence, funds under the ‘maintenance of close relative’ category can be sent only to immediate relatives such as parents, spouses, children and their spouses. This has brought about by defining ‘relatives’ under the Companies Act, 2013 instead of the same act of 1956.

Northeast India’s first small bank opened

Northeast India’s first small bank, North East Small Finance bank (NESFB) started its services. Rashtriya Gramin Vikas Nidhi (North East) Microfinance Limited received the Small Finance Bank License from the Reserve Bank of India (RBI) on March 31, 2017. Tata Trust chairman Ratan Tata and Assam’s finance minister Himanta Biswa Sarma launched the first 28 branches of the bank.