Issue: 1232
· RBI likely to hold rates this
week as oil prices, inflation risks test outlook.
· India-US trade talks resume
in Delhi from June 1.
· Danish pension fund blacklists
SpaceX over 'catastrophic governance'.
· RBI's foreign-exchange
trading gains surged 52% in FY26 to Rs.1.69 trillion, contributing to a record
surplus transfer to the government.
· RBI is collaborating with the
Monetary Authority of Singapore and exploring digital-currency payment
corridors with Singapore and the UAE.
· RBI launched the beta phase
of its Indian Financial Sector cloud infrastructure project to strengthen
financial-sector technology capabilities.
· The Finance Ministry has
advised PSBs to maintain spending discipline and strengthen resilience amid
global economic uncertainties.
India's wealth explosion:
$2 trillion opportunity banks can't afford to miss: The global wealth map is being
redrawn, and India is emerging as one of its biggest winners. According to
Boston Consulting Group’s (BCG) latest report, emerging markets are expected to
add nearly $12 trillion in financial wealth by 2030, accounting for about 10%
of global wealth growth. India alone is projected to contribute more than $2
trillion, making it the single largest driver of wealth creation among emerging
economies. The shift reflects rising
incomes, expanding middle classes, growing financial participation, and deeper
capital markets across the developing world. But nowhere is the opportunity
larger than in India.
(Business Today)
Interim trade deal: US may
offer to lock-in India’s tariffs to insulate from Section 301 penalties: To clinch an early free trade
deal with India amid the ongoing tariff turmoil, the US is likely to press New
Delhi to accept a tariff package that locks in import levies on Indian goods
around 18 per cent, as agreed in the February framework deal. This will be
backed with an assurance that more penalties won’t be added after the ongoing
Section 301 investigations against India conclude, sources said.
(Business Line)
Govt cuts windfall tax on
petrol, diesel, ATF exports: The government has halved
windfall gains tax on export of petrol to Rs 1.5 litre, while reducing the levy
on diesel to Rs 13.5/litre and aviation turbine fuel to Rs 9.5/litre effective
June 1. The finance ministry in a
notification said road and infrastructure cess will be nil on export of petrol
and diesel. Also, there is no change in the existing duty rates on petrol and
diesel cleared for domestic consumption. The special additional excise duty
(SAED) on petrol at Rs 3/litre was imposed on May 16 and the fortnightly review
slashed it to Rs 1.5/litre from June 1.
(Moneycontrol)
Current G-sec yields are
attractive, buying interest visible: BoB: Current G-sec yields are
attractive, and some investors are finding value in government bonds and
selective buying interest is visible, Shashi Dhar, CGM – treasury and global
markets at Bank of Baroda, said in an interview. He added that buying is being
observed as yields have fallen past a certain point, indicating that those
levels are appealing. Since the start of the West Asia conflict, the yield on
the 10-year benchmark bond has risen by as much as 47 bps to 7.13%, driven by
inflation concerns. Currently, it is trading around 7%.
(Financial Express)
LIC plans foray in fintech
space, strategic investment also on table: Insurance giant LIC is
actively considering establishing a fintech arm either through strategic
investment or organic way to cater to its growing digital needs, CEO and MD R
Doraiswamy said. "Naturally, to meet the
modernisation requirement and particularly to bring innovation, we are engaging
both fintech and insurtech players and we are getting a lot of new things being
developed by such players," Doraiswamy told PTI in an interview.
(Economic Times)
Circulate Capital commits
$150 million to India to invest in recycling companies: Circulate Capital has
committed $150 million from its second fund to Indian recycling companies,
building on initial successes. The firm, backed by major corporations and
development finance institutions, is expanding its focus to critical materials
like metals, aiming to diversify supply chains away from China.
(Economic Times)
Fault lines are deepening
in ATM business as operational issues mount: ATM cash replenishment must
align with withdrawal patterns. Units with high footfall will continue to be
serviced as needed, while low-velocity sites will move to an alternate-day or
demand-led cycle. This is how it should have been all along but the trigger for
doing so now is costs, according to the Currency Cycle Association (CCA), the
self-regulatory organisation for the cash management industry. “We have taken
up this [the cost issue] with the Indian Banks’ Association. What we now have
is a force majeure situation,” says U S Paliwal, secretary-general, CCA. The
way out: Link the ATM interchange to the wholesale price index even as a fresh
hike is mulled to Rs.21-22 from the current Rs.19. But reimagining the interchange
fee is just one part; what is sought to be weighed is also a first.
(Business Standard)
FPIs turn net sellers for
third straight month in May; DIIs absorb pressure: Foreign Portfolio Investors (FPIs) remained
net sellers in Indian equities for the third consecutive month in 2026, with
net outflows of Rs.32,963 crore during May, according to data from the National
Securities Depository Limited (NSDL). The selling, however, showed signs of
easing in the final week. NSDL data for the four trading sessions of the week
ending May 29 showed a mixed picture. On May 25, FPIs recorded a net outflow of
Rs.6,176.80 crore across all segments. The trend reversed on May 26, when net
inflows of Rs.2,564.20 crore were recorded.
(Business Line)
RIL commits Rs.10 lakh
crore to AI-ready data centres: Reliance Industries Limited (RIL) has said
that it is investing Rs.10 lakh crore in multi-gigawatt-scale AI-ready data
centres as part of its next phase of growth, noting that the group has evolved
into a globally significant conglomerate spanning energy, digital services,
retail, media and green technologies under the leadership of Chairman Mukesh D
Ambani. "Jio, together with Reliance, will invest Rs.10
lakh crore over the next seven years starting this year. This is not a
speculative investment. It is not for chasing valuation. This is a patient,
disciplined, nation-building capital designed to create durable economic value
and strategic resilience for decades to come," Mukesh Ambani had said.
(Business Line)
FSSAI seeks explanation
from Blinkit over complaint of poor-quality curd: Food regulator FSSAI has sought explanation
from quick commerce firm Blinkit on a complaint by a person who allegedly fell
sick after consuming curd ordered from the platform, sources said. Food Safety
and Standards Authority of India (FSSAI) has received a written complaint from
a person who allegedly had to seek medical help after falling sick following
the consumption of curd bought from e-commerce platform Blinkit, they added.
(Business Standard)
States' mkt borrowing share
in deficit funding rises to 76.3% in FY26: RBI: States increased their
reliance on market borrowings to finance gross fiscal deficits in 2025-26, even
as yields and spreads on state government securities (SGS) rose during the
year. According to the Reserve Bank of India’s (RBI) annual report, the share of
market borrowings in financing states’ gross fiscal deficit rose to 76.3 per
cent in 2025-26 (budget estimates) from 71.8 per cent in 2024-25 (revised
estimates). States raised Rs.12.76 trillion through SGS issuances in 2025-26
against Rs.10.73 trillion in the previous year. Gross market borrowings were
95.1 per cent of the amount indicated in quarterly calendars.
(Business Standard)
Centre unveils
AI-enabled chatbot to help citizens launch grievances online: The Centre on Saturday unveiled an
Artificial Intelligence (AI)-enabled chatbot to help citizens raise grievances
against government departments online. Launching the chatbot named 'Samadhan
Didi' here, Union Minister of State for Personnel Jitendra Singh termed it as
"democratisation of the public grievance mechanism" in the nation
showcasing the government's unwavering commitment to enhance ease of using
public services for citizens. The chatbot marks a significant step towards
making public grievance redressal simpler, more accessible and truly multilingual,
he said..
(Business Standard)
BELL CURVE
§ A
bell curve is a common type of distribution. Also known as the normal
distribution, the term "bell curve" originates from the fact that the
graph used to depict a normal distribution consists of a symmetrical
bell-shaped curve.
§ The
highest point on the curve, or the top of the bell, represents the most
probable event in a series of data (its mean, mode, and median in this case),
while all other possible occurrences are symmetrically distributed around the
mean, creating a downward-sloping curve on each side of the peak.
RBI KEY RATES
Repo
Rate: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 95.3845
INR
/ 1 GBP : 128.1841
INR
/ 1 EUR : 111.1102
INR
/100 JPY: 59.8900
EQUITY INDEX
Sensex:
74775.74 (-1092.06)
NIFTY:
23547.75 (-359.40)
Bnk NIFTY: 54239.20 (-614.65)
International
Children's Day: June 1 is
celebrated as International Children's Day in many parts of the world and
designated by the United Nations as Global Day of Parents. It is also
officially recognized as World Milk Day by the UN's Food and Agriculture
Organization (FAO) to highlight the importance of the dairy industry.
Historical
events: June 1 holds
several significant milestones in history, marking pivotal political events in
India like the onset of Operation Blue Star in 1984, the dissolution of the
East India Company in 1874, and global milestones including the first World
Milk Day declared by the FAO in 2001.
****Have a nice Day****
Visit our website www.thebankingupdates.com
For Regular updates, Monthly e-magazines &
Promotion Study materials
CLICK HERE TO
JOIN OUR COMMUNITY/GROUP FOR DAILY UPDATES
CLICK HERE TO JOIN OUR CHANNEL FOR DAILY
UPDATES & QUIZ
Contact us: # 8261802533
Email: bankingupdates2020@gmail.com