Tag: Reserve Bank of India

IndustryLatest Stories

RBI Sets Final Rules for Easing Bank Loans to REITs, InvITs

MUMBAI: On Wednesday, the Reserve Bank issued final amendment directions that allow commercial banks to lend to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), while maintaining essential safeguards regarding exposure limits, asset quality, and repayment structures. The final directions incorporate feedback from stakeholders following the draft norms. Key changes include allowing overseas branches of Indian banks to engage in REIT financing through syndication, with specific caps on contributions (20%) and risk weight (150%). The requirement for an insolvency mechanism has been modified to include a broader stipulation for an “effective recovery mechanism” in overseas jurisdictions. The central…

IndustryLatest Stories

RBI Holds Repo Rate Steady at 5.25% Amid West Asia Crisis

MUMBAI: The Reserve Bank has maintained interest rates for the second consecutive time, primarily considering the effects of rising energy prices and supply chain disruptions arising from the West Asia crisis. This decision takes place amidst a protracted conflict in West Asia that has affected energy supplies, resulting in increased crude oil prices and putting fiscal and inflationary pressure on import-dependent nations like India. During the announcement of the second bi-monthly monetary policy for this fiscal year, RBI Governor Sanjay Malhotra stated that the Monetary Policy Committee (MPC) unanimously chose to keep the short-term lending rate, or repo rate, stable…

Housing FinanceLatest Stories

Shivalik Small Bank Nears Deal with ManiBhavnam Home Finance

KOLKATA: Shivalik Small Finance Bank, supported by Japan’s largest lender, Sumitomo Mitsui Banking Corporation (SMBC), is nearing completion of its acquisition of Delhi-based ManiBhavnam Home Finance for ₹109 crore. The Reserve Bank of India (RBI) has approved this acquisition, with Shivalik currently seeking clearance from the Registrar of Companies. The deal will involve both share swaps and a cash component, according to sources familiar with the situation. “The acquisition aims to enhance Shivalik’s footprint in the affordable housing sector, further financial inclusion efforts, broaden secured lending, and extend geographical reach in North India,” a bank spokesperson stated. Over the past…

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

Muthoot Microfin Plans to Acquire Loan Against Property Firm

KOLKATA: Muthoot Microfin is currently in talks with two non-banking financial companies (NBFCs) in the micro loan against property (LAP) sector to acquire a majority stake, aiming for inorganic growth and expanding its secured lending portfolio, according to sources familiar with the matter. The firm recently entered the micro LAP business as part of a strategy to diversify its product offerings, helping to alleviate its reliance on unsecured microfinance. The inorganic growth would provide Muthoot Microfin with a robust foundation for expanding its micro LAP operations. “Muthoot Microfin is considering a majority stake acquisition that would enable it to gain…

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.…

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…

IndustryLatest Stories

RBI May Permit Banks to Lend to REITs

MUMBAI: On Friday, the Reserve Bank of India proposed allowing banks to extend loans to Real Estate Investment Trusts (REITs) with specific prudential safeguards, aiming to enhance the financing pool for the real estate industry. REITs are investment vehicles that manage income-producing real estate, offering investors a way to earn a portion of the income without directly buying properties. Developed in India, REITs and Infrastructure Investment Trusts (InvITs) aim to liberate banks’ funds tied up in completed and operational real estate and infrastructure projects by refinancing these with pooled resources from institutional and retail investors. Initially, commercial banks were not…