Tag: RBI

Housing FinanceLatest Stories

RBI Fines YES Bank and Hinduja Housing Finance

Sure! Here’s a rewritten version of the content: MUMBAI: The Reserve Bank of India (RBI) has imposed a penalty of ₹31.80 lakh on YES Bank for failing to comply with ‘Know Your Customer’ (KYC) regulations. The RBI noted that YES Bank did not establish a system to utilize the KYC Identifier assigned by the Central KYC Records Registry for creating account-based relationships with customers. Previously, the RBI conducted a statutory inspection of the bank to evaluate its financial status as of March 31, 2025. Additionally, a fine of ₹1.8 lakh was imposed on Hinduja Housing Finance Ltd for non-compliance with…

Housing FinanceLatest Stories

RBI Penalizes Bandhan Bank and Muthoot Housing Finance

MUMBAI: The Reserve Bank of India (RBI) announced on Friday that it has imposed a penalty of Rs 41.8 lakh on Bandhan Bank due to non-compliance with certain regulations, particularly those related to Know Your Customer (KYC) requirements. The RBI cited that Bandhan Bank did not perform periodic risk categorization reviews for specific account types and approved loans associated with its directors. “This action is based on deficiencies in statutory and regulatory compliance, and it does not imply any judgment on the validity of transactions or agreements between the bank and its customers,” stated the RBI. Additionally, the central bank…

IndustryLatest Stories

RBI Holds Policy Rate at 5.25% Amid Inflation Concerns

File Photo MUMBAI: The Reserve Bank of India (RBI) announced on Wednesday that it will maintain the current interest rates amid expectations of a global recovery influenced by the recent ceasefire in the US/Israel-Iran conflict, which has lasted for six weeks. This policy decision follows a prolonged conflict in West Asia that has interrupted energy supplies, increased crude oil prices, and created both fiscal and inflationary pressures for nations like India that rely heavily on imports. This marks the first monetary policy review following the government’s new inflation target announcement for the RBI last month, instructing it to keep retail…

Housing FinanceLatest Stories

Unity Small Finance Bank Eyes Housing Finance Next Fiscal Year

Unity Small Finance Bank, which missed the opportunity to acquire Aviom India Housing Finance, is focusing on exploring future prospects instead of rushing into any acquisitions, according to Jaspal Bindra, executive chairman of Centrum Group, in an interview with Atmadip Ray. Bindra also serves as a non-executive non-independent director at Unity Bank, which is predominantly owned by Centrum Group (51%). The bank plans to venture into the housing finance sector in the latter half of the year. Edited excerpts from the discussion follow: 1. Following Centrum’s housing portfolio sale, it was anticipated that Unity would enter the housing finance market.…

IndustryLatest Stories

Borrowing Limits Raised to $1 Billion, ETRealty

MUMBAI: The Reserve Bank of India has released updated guidelines for External Commercial Borrowings (ECBs), revising limits, relaxing maturity requirements, and eliminating cost caps. Under these new regulations, eligible borrowers can secure ECBs up to the greater of $1 billion in outstanding borrowings or 300% of their net worth as per the most recent audited balance sheet. Previously, the borrowing cap was set at $750 million. This update comes at a time when India’s ECB transactions have been on the rise, with Indian companies raising a record $61 billion through this route in FY25, compared to $48 billion in FY24.…

CommercialLatest Stories

RBI to Permit Bank Lending to REITs with 10% Exposure Cap

NEW DELHI: The Reserve Bank of India (RBI) has suggested allowing commercial banks to extend loans to real estate investment trusts (REITs) that are registered and regulated by the Securities and Exchange Board of India (SEBI). A draft circular has been issued with a set of prudential conditions, including norms related to leverage and security. The new regulations are expected to take effect on July 1, 2026. The central bank indicated that a bank’s total exposure to REITs should not exceed 10% of its eligible capital base, within the overall prudential ceiling for commercial real estate (CRE) exposures. Additionally, banks…

IndustryLatest Stories

RBI Holds Interest Rate at 5.25%, Pauses Rate Cuts

NEW DELHI: Following a 25 basis point rate cut in December, the RBI has opted to pause its policy rate amid ongoing geopolitical uncertainties. This marks the first monetary policy review since Finance Minister Nirmala Sitharaman revealed the Budget for FY 2026-27. During the sixth and final bi-monthly monetary policy meeting of the current fiscal year, RBI Governor Sanjay Malhotra announced that the Monetary Policy Committee (MPC) has decided to maintain the short-term lending rate (repo rate) at 5.25 percent, adopting a neutral stance. The pause in rate cuts is influenced by the consumer price index (CPI)-based retail inflation, which…

Housing FinanceLatest Stories

RBI Urges NBFCs, HFCs to Uphold Underwriting Standards

Sure! Here’s a rewritten version of the content you provided: MUMBAI: On Monday, Reserve Bank Governor Sanjay Malhotra emphasized the necessity for robust underwriting standards and meticulous asset quality monitoring during a meeting with senior officials from selected non-banking financial companies (NBFCs). This engagement is part of the Reserve Bank’s ongoing dialogue with regulated entities. The Governor convened with managing directors and chief executive officers (MDs and CEOs) of various NBFCs, including government-backed firms, housing finance companies (HFCs), and microfinance institutions. In his opening remarks, the Governor acknowledged the vital role NBFCs and HFCs play in promoting credit flow. He…

IndustryLatest Stories

RBI Cuts Repo Rate to 5.25%, Boosting Real Estate Growth

NEW DELHI: The Reserve Bank of India (RBI) has cut the policy repo rate by 25 basis points to 5.25%, indicating a shift towards monetary easing as inflation stabilizes at multi-year lows. This decision was made unanimously by the Monetary Policy Committee (MPC) during its 58th meeting held from December 3-5, 2025. With this rate cut, the standing deposit facility (SDF) rate is now at 5.00%, while the marginal standing facility (MSF) rate and the Bank Rate have been set to 5.50%. The MPC has also opted to maintain a neutral stance going forward. Growth Outlook Remains Strong India’s GDP…

Housing FinanceLatest Stories

Aviom India Housing Finance Promoter Offers Dues Settlement Amid Bids

KOLKATA | MUMBAI: The promoter of Aviom India Housing Finance has proposed a settlement plan to lenders to settle Rs 1,385 crore in debts over 26 months, including accrued interest, according to sources. Promoter Kajal Ilmi presented the proposal late Wednesday while the company is under insolvency proceedings initiated by the Reserve Bank of India (RBI). Six entities have expressed interest in takeover bids. The proposal includes an upfront payment of Rs 350 crore, with the remaining accrued interest to be paid within 24 months after the initial 26-month principal repayment. Ilmi’s plan outlines full payment to operational creditors and…