Why RBI is making it tough for you to get a personal loan
Unsecured tiny personal loans, mostly below Rs 10,000, have been selling like hot cakes as overzealous banks pushed them hard. While it meant brisk business for banks, they also came with risk. After warning the banks, the Reserve Bank of India (RBI) has now slammed the brakes on the unbridled growth in consumer loans that lately expanded faster than less risky lending assets, directing banks to set aside more capital and establish board-monitored processes on such loans to prevent risk escalation in the financial system.

RBI clears resolution plan for debt-ridden Reliance Capital
New Delhi: The Reserve Bank on Friday approved the resolution plan for debt-ridden Reliance Capital.

Banks’ capital requirements to rise on higher risk weights, loan rates to increase
Mumbai: The capital requirement of banks is expected to increase by 5 per cent, or ₹84,000 crore of additional capital, due to the increase in risk weights for certain consumer loans by the RBI on Thursday. The common equity tier-I (CET-1) capital level is also expected to decline by 35–100 bps for various banks.

RBI directive on unsecured loans: No big impact on banks & well-diversified NBFCs
Karthik Srinivasan, Group Head - Financial Sector Ratings, ICRA, says RBI has been voicing its concern that the growth, both in terms of bank lending to NBFCs as well as banks and NBFCs lending to the consumer segment has been growing at a pretty fast clip over the last two years. More as a precautionary measure, RBI has come up with this measure to slow down the pace and maintain the financial stability or sanctity in the system.”

Bank, NBFC stocks plunge as RBI tightens personal loan norms
It was a freaky Friday for non-banking financial companies (NBFCs) and certain banks, as the Reserve Bank of India’s (RBI) decision to raise risk weights on unsecured loans dragged their stocks down.

RBI wakes up to the systemic risk from exuberant retail lending
Finally, the RBI has initiated tightening of screws on reckless retail uncollateralized lending by banks and NBFCs by increasing the risk weight on such loan portfolios. (see the notification here)

Here’s what analysts say on RBI risk weight increase
Bengaluru: The Reserve Bank of India has increased risk weight of consumption loans, credit card exposures and loans to non-bank finance companies (NBFCs) by 25 per cent (attracting 125 per cent), flagging concerns about high growth of consumer loans. The move will make consumer lending costlier for banks and non-bank lenders. On the heels of risk weight increase, shares of SBI Cards, RBL Bank, ICICI Bank, Cholamandalam Investment and Finance Company,Bajaj Finance, and such other financial service providers are under pressure.

‘Banks will need capital as RBI hikes risk weight on loans’
Banking industry will require additional capital of `84,000 crore after the Reserve Bank of India (RBI) increased risk weights on consumption loans, credit card exposures, and loans to scheduled commercial banks (SCBs) and non-banking financial companies (NBFCs) by 25%, State Bank of India (SBI) said in a report.

RBI's risk weight hike on consumer credit: Slowing the party, not ending it

The regulator has pulled the punch bowl from the consumer loans party. Does that mean the party has come to an end. Hardly. The music is still on and many will remain on the dance floor. What it does is that it would contain the damage whenever it happens than what it would otherwise have been. RBI has raised risk weight on consumer credit by banks and NBFCs to 125%, compared to 100% earlier. An ET explainer.

RBI’s VRRR auction sees better response
 

Bankex falls 1.48% as RBI tightens norms on consumer loans
 

Exporters gain flexibility as RBI nods to additional current accounts for settlement of export transactions
 

Loan growth to decline by over 5%
The Reserve Bank of India’s (RBI) decision to increase risk weights is expected to reduce the enthusiasm amid banks and non-banking financial companies (NBFCs) to extend unsecured loans, said bankers and industry players.

Board of Kotak Mahindra Bank appoints Ashok Vaswani as MD and CEO of bank
The board of Kotak Mahindra Bank on Friday approved the appointment of Ashok Vaswani as a Director, Managing Director and the CEO of the bank. Last month, the Reserve Bank of India (RBI) had approved the appointment of Vaswani as the bank’s MD & CEO for a period of three years.

RBI’s move will not impact bank’s ability to grow: SBI Chairman
Terming it a step in the right direction, the State Bank of India’s chairman Dinesh Kumar Khara on Friday said the Reserve Bank of India’s move on consumer loans would not affect the lender’s ability to grow.

SBI to soon launch 'Yono Global' app in Singapore and US
Singapore: State Bank of India (SBI) will soon launch its banking mobile app 'Yono Global' in Singapore and the US, offering digitalized remittance and other services to its customers, Vidya Krishnan, Deputy MD (IT), said. "We are continuing to invest in Yono Global to offer the best services available as we want to give superior experience to our customers," Krishnan told PTI at the three-day Singapore Fintech Festival (SFF), which ends on November 17.

Kotak Mahindra Bank board approves Ashok Vaswani's appointment as MD & CEO
Kotak Mahindra board on Friday approved Ashok Vaswani's appointment as MD & CEO for a period of three years with effect from January 1, 2024.

India’s move on risky loans to hit banks more than economy
India’s central bank is clamping down on risky consumer lending as the economy booms, a move that’s likely to hurt banks but only have a limited impact on growth.

RBL Bank launches free mobile healthcare vans for support, domestic workers

The initiative includes fully equipped mobile healthcare vans to provide complementary health and eye check-ups for those employed in residential neighbourhoods and gated communities, according to a company press statement.

Citi to team up with Indian Bank to support female entrepreneurs, CEO Fraser Says

“We’re going to be providing capital to more than 300,000 female entrepreneurs in rural India, and that will help them grow their small business and increase their participation in global trade,” Chief Executive Officer Jane Fraser said Thursday at the Asia-Pacific Economic Cooperation conference in San Francisco. She didn’t identify the Indian bank.

Reduced risk of data breach the main benefit of tokenisation: Visa
Source Credit: Ajinkya Kawale, Business Standard

Mumbai: Enhanced security and a reduced risk of data breach have emerged as top benefits of Card on File (CoF) tokenisation for customers and the industry, respectively, in the backdrop of India issuing over 560 million tokens over the past year, according to a Visa report.
 

88% of Industry leaders believe card tokenisation enhanced security: Report

88 per cent of the industry executives across card issuers, payment acquirers/processors, and merchants said that the Card-on-File (CoF) Tokenisation mandate has provided enhanced consumer security. 65 per cent believe that it has Increased trust in digital payments among consumers. 

RBI’s tighter regulatory risk weight to hit banks’ capital adequacy by 60 basis points: S&P
The Reserve Bank’s decision to tighten norms for consumer credit by raising risk weight for unsecured personal loans is likely to hit banks’ capital adequacy by 60 basis points, S&P Global Ratings said on Friday.

Banks to need Rs 84,000 cr excess capital due to RBI tweaks on unsecured loans: SBI Economists
Mumbai: The banking system will need Rs 84,000 crore of excess capital due to revised unsecured loans risk weights introduced by the Reserve Bank of India, economists at the country's largest lender SBI said on Friday. In a report, the economists also said the RBI is seeking to achieve the desired objective of growth and inflation through liquidity and macro prudential measures as the repo rates have peaked out.

New regulatory risk weights will hit Indian banks' capital adequacy by 60 basis points: S&P

The Reserve Bank of India's (RBI) move to make riskier credit more expensive will hit loan growth but ultimately support asset quality, said ratings agency S&P Global Ratings.

NBFCs to face more heat than banks
The Reserve Bank of India’s (RBI) move on Thursday to increase risk weight on banks and non-banking finance companies’ (NBFCs) unsecured personal loan and credit card portfolio would likely hit the capital adequacy ratio (CRAR) of NBFCs more against that of banks, experts say.

Fedfina announces Rs 1,092 crore IPO; sees no impact of RBI norms on issue
Fedbank Financial Services (Fedfina) on Friday said it plans to raise up to Rs 1,092-crore through an initial public offering opening on November 22.

Bajaj Finance temporarily suspends issuance of EMI cards to new customers
Bajaj Finance   on Friday in an exchange filing said that it is temporarily suspending issuance of EMI cards to new customers after the order issued by the Reserve Bank of India. 

Banks may still prefer higher rated NBFCs despite doubling in risk weights

Although the central bank-mandated increase in risk weighting is steeper for higher rated non-banking finance companies (NBFCs), lower rated lenders will likely fare worse since banks might still find it remunerative to lend to bigger non-bank borrowers with relatively lower risk profiles.

What is the transaction limit for RuPay credit cards on UPI?

The National Payments Corporation of India (NPCI) announced the transaction limit for RuPay Credit Cards on UPI. The NPCI, in a circular issued on November 16, 2023, stated that this has been done in an effort to enhance customer satisfaction and enable users to make high-value e-commerce, travel and hotel reservations, health care service, and educational institution bookings.

Bitcoin falls below $36,400; Solana, Polygon tank up to 13%

The cryptocurrency market on Friday gave up the previous day's gains as the global cryptocurrency market cap declined by 2.62% to around $1.4 trillion.

11 best flexi cap mutual fund schemes with highest returns in past ten years
Given the stock market’s erratic behaviour, numerous investors find themselves bewildered regarding their investment decisions. The ongoing discussion about whether to invest in large-cap, mid-cap, or small-cap sectors has intensified, leading many, particularly those new to investing, to gravitate towards flexi-cap funds. These funds enable investors to allocate their investments across all market capitalization categories.

Investors chase big returns with small cap, mid cap mutual fund bets

Discretion is the better part of valour, recommends the traditional investment playbook. Retail investors, however, seem rather keen to rewrite that template. In the seven months this fiscal year, Indian retail savers have pumped more money into the hottest Dalal Street themes that rank relatively high on the risk-reward matrix. About two-thirds of their investments into mutual funds has gone into top performing mid-cap, small-cap and thematic or sectoral funds, reflecting the recent outperformance of high-beta stocks.

These equity schemes never offered negative returns in last five years

Can equity mutual fund schemes offer positive returns year after year? Can they avoid a negative patch in a year even when the market is bleeding and losing money? ETMutualFunds decided to check the data to find out the answers to these often-asked questions. We were in for a pleasant surprise. Around 10 equity schemes never gave negative returns in any year in the last five years. ETMutualFunds looked at the yearly performance of 180 equity schemes that have been around for the last five years.

50 equity mutual funds offer over 15% in 10 years

Around 50 schemes have offered more than 15% in a 10-year horizon, an analysis of daily rolling returns showed. ETMutualFunds considered daily rolling returns of 143 equity schemes that have completed 10 years of existence in the market.

Uttar Pradesh government to tap capital markets with municipal bonds
 

Citigroup layoffs: Employees expect job cuts, management reshuffle on Monday
Citigroup layoffs: Amid CEO Jane Fraser’s corporate overhaul plan, Citigroup employees expect announcements about management changes and layoffs on Monday next weel. Citigroup employees are expecting these deveopments in the wake of next phase of the bank’s sweeping reorganization, according to four people familiar with the situation. However, more details in regard to layoff is yet to come as Citigroup employs 2.40 lakh employees across world. As per the Financial Times, the Citigroup declined to commend on its ongoing layoffs and bank overhaul plans.