What is RBI’s latest move to increase risk weight for lending about? | Explained
The story so far: Seeking to rein in an observed rise in unsecured personal loans and credit cards, the Reserve Bank of India (RBI) directed banks and non-banking financial companies (NBFCs) to reserve more capital for risk weights. The mandatory risk weight requirement has been increased by 25 percentage points. This would be applicable to unsecured personal loans, credit cards and lending to NBFCs. The directions are expected to result in higher capital requirements for lenders and thereby, an increase in lending rates for consumers. They come into force with immediate effect, with mandatory adherence being sought before February-end next year.  

RBI and NPCI look for offline methods to boost digital payment adoption
The shared vision of both the RBI and NPCI is to streamline CBDC usage, making digital payments as straightforward as traditional cash transactions. To this end, the RBI has established a sandbox allowing startups to experiment with various CBDC use cases. Despite initial expectations for daily transactions to reach over a million by the year-end, the current figures hover in the tens of thousands.

RBI slaps penalties totalling Rs 10.34 cr on Citibank, Bank of Baroda, IOB
The Reserve Bank on Friday imposed penalties totalling Rs 10.34 crore on Citibank, Bank of Baroda, and Indian Overseas Bank for contravention of various regulatory norms. The highest penalty of Rs 5 crore has been imposed on Citibank NA for non-compliance of norms related to depositor education and awareness fund scheme, and code of conduct on outsourcing of financial services, the RBI said in a statement.

Finmin calls meeting of bankers, other senior officials to deal with digital payment fraud
The Finance Ministry has called a meeting of senior bankers and RBI representatives on Tuesday to discuss steps to deal with increasing digital payment fraud and cyber security issue. The meeting to be chaired by Financial Services Secretary will discuss issues related to financial cyber security and increasing digital payment fraud, sources said.

Banks should shift from isolated service provisions to personalised embedded banking: RBI’s Rao
Reserve Bank of India deputy governor M Rajeshwar Rao on Thursday said the banks will have to transition from a sectoral approach to an ecosystem approach. The banking of future is going to be hyper-personalised, and banks may have to shift from isolated service provisions to hyper-personalised embedded banking, he said.

RBI's vigilance: New consumer credit norms to bolster India's financial stability amidst surging loan growth
In a proactive move aimed at mitigating potential systemic risks associated with the rapid growth of consumer credit, the Reserve Bank of India (RBI) has implemented stringent measures, impacting both banks and non-bank financial institutions (NBFIs).

RBI supersedes Mumbai-based Abhyudaya Co-op Bank’s Board

Dark patterns in digital loans: Warning about customers being tricked into taking high-cost loans
"Dark pattern", a dreaded term in digital parlance, is in news again following a cautionary note about such patterns being noticed in the mis-selling of digital loans.

Unsecured personal loans jumped 4-fold to Rs 13.3 lakh cr from FY17 to FY23: Report
Unsecured personal loans jumped more than four-fold to Rs 13.32 lakh crore as of March 2023 from Rs 4.26 lakh crore in March 2017, as per a report. Overall, the number of personal loans has almost tripled during this period to Rs 51.7 lakh crore, an analysis by Care Ratings revealed.

Banking Union to go on strike from December 4 against job outsourcing: AIBEA General Secretary, C H Venkatachalam
The All India Bank Employees Association (AIBEA) General Secretary, C H Venkatachalam, on November 22, 2023, called for a strike by the banking union on account of appropriate hiring and rejecting the outsourcing of permanent jobs.

Axis Bank aspires building fully digital bank through mobile app
Private sector lender Axis Bank is focused on creating a fully digital bank with no need for human assistance through its mobile application (app) “Axis Open”, the bank’s management told analysts during a conference call Thursday.

Banks report record net profit in Q2, growth may taper amid pressure on NIMs
Listed banks reported record aggregate net profit in the September quarter with double-digit year-on-year growth led by better performance from the private sector banks. However, the momentum is likely to slow down in the coming quarters amid pressure on net interest margin (NIM) as cost of funds tend to increase.

IndusInd Bank partners with Indraprastha Gas Ltd.
IndusInd Bank has joined forces with Indraprastha Gas Limited (IGL) to introduce digital rupee transactions in Delhi NCR. The partnership enables customers at selected IGL stations to conduct payments using the Digital Rupee, the Central Bank Digital Currency (CBDC) launched by the Reserve Bank of India in 2022. 

Banks borrowing crosses 2 trillion Rupees to hit all-time high
Banks’ borrowing through the Marginal Standing Facility (MSF) has crossed the Rupees 2-trillion mark to reach an all-time high of Rupees 2.34 trillion on Wednesday and Rupees 2.05 trillion on Thursday, showing that the liquidity has dried up further in the banking system.

Bandhan Bank approves re-appointment of Chandra Shekhar Ghosh as MD

The re-appointment, if approved by the Reserve Bank, would be effective from July 10, 2024.

Latest loan interest rates November 2023: ICICI Bank, HDFC Bank, SBI, PNB, Yes Bank

A bank is not permitted to issue a loan with an interest rate lower the marginal cost-based lending rate (MCLR). Banks internally determine interest rates based on the length of time the loan will take to repay. Typically, the tenure options are one month, three months, six months, a year, and three years. However, the majority of consumer loans are linked to a one-year term.

RBI supersedes Abhudaya Co-operative Bank Board

The Reserve Bank of India has superseded the board of directors of Mumbai head quartered Abhyudaya Co-Op Bank for lapses in governance standards and appointed SP Pathak, former State Bank of India executive to run the bank for 12 months.

HSBC ties up with UK Export credit agency to fund MSME imports
HSBC has partnered with the UK export credit agency UK Export Finance to provide funding support to MSMEs for imports from the UK. The partnership envisages an intent to establish a financing programme of up to GBP 100 million

PNB Housing Finance to raise Rs 3,500 cr via NCDs to fund business growth

The NCD will be raised on a private placement basis, PNB Housing Finance said in a regulatory filing.

Centrum ropes in EY to find buyers for its stake in housing arm

Kolkata: The Centrum Group has roped in EY to find a buyer for its stake in housing loan subsidiary Centrum Housing Finance.

ADB approves $500 mn loan for medical infrastructure in Maharashtra
The Asian Development Bank (ADB) has approved a loan package worth USD 500 million to improve access to quality and affordable tertiary health care and medical education in Maharashtra.

Asian Development Bank unleashes $170 million wave to transform Kochi's water landscape
In a significant development, the Asian Development Bank (ADB) has given the nod to a USD 170 million loan aimed at modernizing water supply services in Kochi, a bustling city in the southern Indian state of Kerala.

Credit card spends surge on festival spending to record high of ₹1.8 lakh crore
After dipping slightly in September, credit card spending surged over 25 per cent in October on the back of festival season-led spending to a record high of ₹1.78 lakh crore, according to data by the Reserve Bank of India (RBI). Card spending increased by 25.47 per cent month, after dipping by 4.23 per cent in September. The previous high was seen in August at ₹1.48 lakh crore.

Mastercard and U GRO Capital join hands to support small businesses
Mastercard, a global technology company in the payments industry, has tied up with U GRO Capital, a NBFC specialising in MSME financing, to extend financing solution to small businesses in India that require financial support to maintain and grow their operations.  MSMEs in India have long grappled with substantial challenges, including constrained access to capital. According to recent reports, out of over 64 million MSMEs in India, only 14 per cent have access to credit.

RBI's new lending norms: NBFCs play up spectre of collateral damage, knock on regulator's doors
Non-banking finance companies (NBFCs) in India have underlined the risk of collateral damage with respect to the RBI's new lending norms, Times of India said in a report on November 24.

Kfin Tech bets big on overseas opportunities
Mumbai: Kfin Technologies bets big on financial services opportunities in the overseas markets and expects the alternate investment industry and data aggregator business to be a major driver in India.

IL&FS invites bids for its stake in Tamil Nadu power unit
Mumbai: IL&FS has put its stake in ITPCL, one of the biggest assets under its portfolio, up for sale. EOI have been invited from interested bidders for the same by December 18, 2023.

U GRO Capital’s founder & MD Shachindra Nath joins FIDC Board
Finance Industry Development Council (FIDC), a representative body of NBFCs registered with the Reserve Bank of India, announced the appointment of Shachindra Nath, Founder, Vice Chairman and Managing Director of U GRO Capital Ltd, as the board of director. FIDC was formed 19 years ago and is the recognized face of the NBFC sector. FIDC has been engaged in regular interaction both with Reserve Bank of India and Govt. of India, which include pre-budget meetings and also important policy related meetings with RBI. 

Svatantra Microfin completes acquisition of Chaitanya India Fin Credit

Ananya Birla-led Svatantra Microfin has on Friday completed the acquisition of Sachin Bansal's Navi Group's subsidiary Chaitanya India Fin Credit.

L&T Finance inks $125-m pact with ADB to support rural India
Mumbai: L&T Finance, one of the leading non-banking financial companies in the country, has signed a financing pact with ADB for $125 million to support financing in rural and peri-urban areas of India, particularly for women borrowers. The funding comprises a loan of up to USD 125 million from ADB and an agreement to syndicate an additional $125 million in co-financing from other development partners. At least 40 percent of the proceeds are allocated to women borrowers, while the rest will support farmers, micro, small, and medium-sized enterprises (MSMEs), as well as loans to purchase new two-wheeled vehicles.

A $200,000 pet-rock NFT shows how crypto is relapsing into FOMO
Earlier this month, an image of a pet rock sold for the equivalent of more than $200,000 in the non-fungible token market. 

BharatPe files petition against Ashneer Grover for divulging confidential information
Bengaluru: Fintech major BharatPe has filed a fresh petition against the former co-founder of BharatPe, Ashneer Grover, in the Delhi High Court, seeking an injunction against him for sharing ‘confidential information’ related to the company. This comes at a time when Grover had tweeted about the equity allocation and secondary components undertaken during the company’s Series E funding round, which was led by Tiger Global, and saw participation of Dragoneer Investor group and others. The $370-million fundraise valued the fintech at $2.86 billion.

BharatPe files fresh case at Delhi HC against Ashneer Grover for sharing 'confidential information': Report
Accusing Ashneer Grover of sharing 'confidential information' relating to the company, fintech firm BharatPe's parent company Resilient Innovations filed a fresh case in the Delhi High Court seeking an injunction, Economic Times reported on 24 November.

Paytm shares plunge 5% on likely block deal

Shares of One 97 Communications, which operates Paytm, fell over 5% to the day's low of Rs 877.15 on the NSE on Friday following reports of a block deal. The price correction was amid high volumes with over 1.78 crore shares changing hands at around 9:45 am.

PB Fintech to invest Rs 349 crore in financial boost to Policybazaar

PB Fintech on Friday said it has made a further investment of 349 crore in its arm Policybazaar to strengthen the financial health of the subsidiary.

Berkshire Hathaway exits Paytm; sells 2.46 pc stake for Rs 1,371 crore

Billionaire Warren Buffet-backed Berkshire Hathaway Inc on Friday divested its entire 2.46 per cent stake in Paytm’s parent company One97 Communications for Rs 1,371 crore through an open market transaction.

Bitcoin rises above $37,400; XRP, Cardano surge up to 3%
Major crypto tokens traded higher for the second consecutive day on Friday, recovering from Wednesday's decline after Binance founder and CEO Changpeng Zhao resigned from his post and pleaded guilty for violating US anti-money laundering laws.

Concern on market valuation unwarranted: Birla MF
Mumbai: Birla Sun Life Asset Management Company wants investors to ignore the growing noise of concern over market valuation and focus on asset allocation to generate long term wealth through mutual fund investment. A Balasubramanian, Managing Director, Birla Sun Life Asset Management Company told businessline that the high valuation of Indian equity markets compared to global peers is justified given the certainty of future economic growth amid turbulence in the global market.

Hybrid mutual funds catch investors' fancy, attract Rs 72,000 crore in past 7 months
Hybrid mutual fund schemes have been gaining popularity among investors with the category attracting over Rs 72,000 crore in the past seven months, following a change in taxation for debt funds and huge inflow experienced in the arbitrage category. Hybrid funds are mutual fund schemes that typically invest in a combination of equity and debt securities and sometimes in other asset categories such as gold.

Sundaram Alternates expects to raise DFI funds after its adoption of IFC standards for real estate projects
Chennai: Sundaram Alternates, which is currently pooling money for its fourth real estate debt fund, expects to raise money from global development finance institutions, consequent to it adopting the ‘EDGE code’ of IFC, Washington. EDGE is a sort of a guideline for evaluating the ‘greenness’ of real estate projects.  

All you need to know about Bajaj Finserv Balanced Advantage Fund
Bajaj Finserv Mutual Fund announced the launch of the Bajaj Finserv Balanced Advantage Fund, an open-ended dynamic asset allocation fund suitable for investors wanting to invest in equity and equity-related instruments including derivatives, and fixed-income instruments.

Sundaram Mutual Fund files draft document for Multi Asset Allocation Fund

Sundaram Mutual Fund has filed a draft document for Sundaram Multi Asset Allocation Fund. The scheme will be an open-ended scheme investing in equity, debt and money market instruments, and commodity ETFs.

Pankaj Tibrewal quits Kotak Mutual Fund

Pankaj Tibrewal, Senior Executive Vice President and fund manager, will leave Kotak Mutual Fund by the end of November, the fund house said. Tiberwal has been associated with the fund house since 2010 and he manages some prominent schemes like Kotak Small Cap Fund, Kotak Emerging Equity Fund, Kotak ELSS Tax Saver Fund, Kotak Business Cycle Fund, Kotak Multi Asset Allocation Fund, Kotak Equity Opportunities Fund, and Kotak Debt Hybrid Fund.

Markets are not overly rich from valuation perspective: Suresh Soni of Baroda BNP Paribas MF

Baroda BNP Paribas Mutual Fund has been busy launching new funds in 2023. The fund house launched six NFOs in the current year. ETMutualFunds spoke to Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund, to find out what is happening in the fund house and his thoughts on important topics like inflation, interest rates, markets and so on.

Edited interview.

Bajaj Finserv Mutual Fund files draft documents for two Nifty ETFs

Bajaj Finserv Mutual Fund has filed draft documents for two Nifty ETFs: Bajaj Finserv Nifty Bank ETF and Bajaj Finserv Nifty 50 ETF.

India to attract more investments from global corporations, investors in 2024: Goldman Sachs
In a dynamic, volatile global macroeconomic environment where set paradigms are shifting, India, seen as sector-averse, is likely to attract more investments from global corporations and investors.

Bank of Baroda plans ₹5,000 crore infrastructure bonds
Mumbai: Bank of Baroda (BoB) has decided to issue, in first tranche, Infrastructure Bonds aggregating up to ₹5,000 crore for a tenor between 7 to 10 years. The bond issue will comprise a base issue of ₹1,000 crore and green shoe option of up to ₹4,000 crore.  The public sector bank, in a regulatory filing, referred to its disclosure last week regarding its intention to raise Infrastructure Bonds of up to ₹10,000 crore (base issue of ₹2,000 crore and green shoe option of ₹8,000 crore) for a tenor of up to 7 years.

Britain's Lloyds shake-up puts around 2,500 jobs at risk
Britain's biggest high street bank Lloyds is putting around 2,500 jobs at risk as part of a shake-up, a source familiar with the matter told Reuters, amid a renewed push by lenders to slash costs.