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ECONOMIC REVIEW The global economy faced challenges in 2022 due to geopolitical tensions and tightening financial conditions. However, after the Omicron wave and successful vaccination efforts, the global economy showed resilience. The IMF revised global growth estimates to 3.4% for 2022. Global trade growth was revised down to 5.1%. Global inflation remained high at 8.7%. Capital flows to emerging markets were subdued. Domestically, the Indian economy recovered and grew by 7% in 2022-23. Hea..

The Reserve Bank of India (RBI) has recently made a significant announcement that will impact the way we handle our currency. In a move to maintain a robust and efficient currency circulation system, the RBI has decided to withdraw the ₹2000 denomination banknotes, which were introduced in 2016 after the historic demonetization move. While these banknotes will remain legal tender, their usage has gradually declined, leading the RBI to replace them with other denominations. This strategic decisio..

The Reserve Bank of India has announced that it will no longer circulate the Rs 2,000 currency notes. To comply with this decision, individuals are required to deposit their Rs 2,000 banknotes into their accounts or exchange them for other denominations at any bank branch by September 30, 2023. The process of depositing into bank accounts can be done as usual, without any restrictions. The exchange of Rs 2,000 notes for different denominations will begin on May 23, 2023, as per the RBI's sta..

Rs.2000 Denomination Banknotes Withdrawal from Circulation; Will continue as Legal Tender  The Rs.2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all 2500 and 21000 banknotes in circulation at that time. The objective of introducing Rs.2000 banknotes was met once banknotes in other denominations became availa..

The Finance Industry Development Council, a representative body of NBFCs in India, has requested the Reserve Bank of India (RBI) not to classify penal interest as 'charges' due to potential tax implications. In a representation to the RBI, the FIDC said the central bank's circular on fair lending practices, which included guidelines on the reasonable and transparent disclosure of penal interest or charges, could create problems.   The association highlighted several cha..

The Reserve Bank of India (RBI) has informed all financial institutions including banks and NBFCs to treat informal micro enterprises (IMEs) not covered under the Goods and Services Tax (GST) regime or exempted from the CGST Act, 2017, but having the Udyam Assist Certificate (UAC) as micro enterprises for classification under the priority sector lending (PSL) norms. "IMEs with an Udyam Assist Certificate shall be treated as Micro Enterprises under MSME for the purposes of PSL classificat..

The Reserve Bank of India (RBI) has proposed new regulations on how lenders can charge penalties on loans. Many lenders currently charge extra interest, known as penal interest, when a borrower fails to make their loan repayments on time or violates the loan terms. However, the RBI believes that penal interest can sometimes be misused by lenders and has proposed that penalties should be charged as a fixed fee instead. The purpose of these penalties is to compensate the lender for the extra work ..

The Reserve Bank has undertaken a comprehensive review of the system of processing of applications for registration as Core Investment Companies (CICs) to make the registration process smoother and hassle free. Accordingly, the application form has been revamped to make it structured and aligned with the extant CIC regulations. Also, the number of documents to be furnished along with the application form has been reduced to 18 from the existing set of 52 documents to make the registration proces..

On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (April 6, 2023) decided to: Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent. The standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The MPC also decided to remain focused on withdrawal of accommoda..

The Reserve Bank of India (RBI) has appointed Shri Neeraj Nigam as Executive Director (ED) with effect from April 03, 2023. Prior to being promoted as ED, Shri Neeraj Nigam was heading the Bhopal Regional Office of the Bank as Regional Director. Shri Nigam has, over a span of more than three decades, served in Regulation and Supervision, Human Resource Management, Premises, Currency Management, Bank Accounts and other areas in the Reserve Bank, in its Central Office as well as Regional Off..

With the annual closing of accounts just 10 days away and the financial year 2022–23 coming to a close, the Reserve Bank of India (RBI) has directed all banks to keep their branches open until the end of the working hours on March 31. In a letter to all agency banks on Tuesday, the RBI wrote that all government transactions done by agency banks for 2022–2023 must be accounted for within the same financial year.   "Accordingly, all agency banks should keep their des..

1. The Launching of Mission ‘Har Payment Digital’ today during the Digital Payments Awareness Week (DPAW) 2023 reinforces RBI’s commitment to deepen digital payments in the country. 2. I am happy to note that the Department of Payment and Settlement Systems (DPSS) of the RBI is celebrating its 18th anniversary (it was formed on March 7, 2005). Congratulations to team DPSS on this milestone. Over the years our payment systems have evolved and now we have m..

The Reserve Bank of India on Wednesday launched two key surveys, results of which provide "useful inputs" for the central bank's bi-monthly monetary policy. One of the surveys is to know inflation expectations of households and the other is to gauze the consumer confidence. The March 2023 round of Inflation Expectations Survey of Households (IESH), RBI said, aims at capturing subjective assessments on price movements and inflation, based on their individual consumption basket..

In recent years, India has made significant strides in digital payments, and the latest development is the introduction of Unified Payments Interface (UPI) payment facility for international travellers visiting India. The Reserve Bank of India (RBI) has announced that inbound travellers visiting India can now make local payments using UPI while they are in the country. This move aims to boost digital payments in the country and provide a more seamless payment experience for tourists. In this ..

The Reserve Bank of India will take necessary steps to manage inflation within "expected limits,' Finance Minister Nirmala Sitharaman said at a post-budget industry event in Jaipur on Monday. "In emerging markets, the situation is unique to each of the countries. In that I think, RBI is watching the Indian economy and taking a call as and when it is required," Sitharaman said. For instance, in the case of pulses, the government is encouraging farmers to grow pulses to boost..

The Reserve Bank of India (RBI) has informed that Blockchain Technology (BCT) is one of many promising technologies and its usefulness will depend on how it is adopted and adapted to a wide array of uses. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha.   The Reserve Bank of India (RBI) has informed that Blockchain Technology (BCT) is one of many promising technologies and its usefulness will depend on ho..

The Reserve Bank of India (RBI) launched the first pilot of Digital Rupee- Retail segment (e₹-R) on December 01, 2022. This was stated by the Union Minister of State for Finance, Shri Pankaj Chaudhary, in a written reply to a question in Lok Sabha today. The Minister stated that the pilot is covering select locations in closed user group (CUG) comprising participating customers and merchants. The e₹-R pilot currently covers the five cities of Mumbai, New Delhi, Bengaluru, Bhubaneswar and Chan..

The Reserve Bank of India (RBI) has allowed invoicing and payments for international trade in Indian Rupee vide A.P (DIR Series) Circular No. 10 RBI/2022-2023/90 dated 11.07.2022 on "International Trade Settlement in Indian Rupees (INR)". This was stated by the Union Minister of State for Finance, Dr Bhagwat Kisanrao Karad, in a written reply to a question in Lok Sabha yesterday. Giving more information, thr Minister stated that the Circular lays down that all exports and imports un..

Reserve Bank of India (RBI), vide Press Release dated 16th January, 2023, has releases Discussion Paper on Expected Loss (EL)-based Approach for loan loss provisioning by banks and has proposed a framework for adoption of an 'expected loss-based' approach for provisioning by banks (As part of the Statement on Developmental and Regulatory Policies released on September 30, 2022). RBI has released the Discussion Paper (DP) that comprehensively examines various issues and propose..

Reserve Bank of India (RBI), vide its Notification No RBI/2022-23/168 CO.CEPD.PRS.No.S1233/13-01-018/2022-2023dated 23rd January, 2023, has announced a circular on "Safe Deposit Locker/Safe Custody Article Facility provided by banks" and has decided to extend the deadline for banks to complete the process of renewal of agreements for the existing safe deposit lockers in a phased manner by December 31, 2023, with intermediate milestones of 50 per cent by June 30, 2023, and 75 per cent b..