Issue: 1182
· RBI tightens forex derivative
rules to curb rupee speculation; banks barred from offering NDF contracts.
· Indian rupee records biggest
gain in over a decade after RBI intervention and currency measures.
· RBI likely to keep repo rate
unchanged in April MPC meeting; home loan EMIs may remain stable.
· RBI extends export credit
window to support exporters amid global disruptions.
· Indian banks may face margin
pressure due to tighter liquidity conditions (Fitch report).
· RBI asks banks to report
exposure to West Asia due to geopolitical risks affecting oil and markets.
· F&O trading becomes
costlier from April 1 due to new taxes and regulatory curbs on speculation.
RBI snaps Indian banks'
link to NDF market; arrests rupee fall for now: Recording its sharpest
single-day rally in 13 years, the Indian rupee today ended at 93.1/$, a good
1.9% higher than its Monday close of 94.83/$. In contrast most Asian currencies
fell by 0.5% today versus the dollar. This after being the worst performing
Asian currency in the year ended March 31. The abrupt U-turn of the rupee from
its year long falling trend was possible because the RBI all but cut the
connection between the onshore currency market and the offshore non-deliverable
forward market by announcing a bunch of restrictions on Friday last and some
more on Wednesday.
(Moneycontrol)
India’s manufacturing PMI
dips to 45-month low of 53.9 in March: First month of war had impact
on Indian manufacturing as Purchasing Managers’ Index (PMI) slipped to 53.9 in
March as against 56.9 in February, S&P Global reported on Thursday. This is
lowest since June 2022. “Disruptions linked to the conflict in the Middle East
are reverberating through the global economy and weighing on Indian
manufacturers. Output and new orders slowed noticeably, signalling softer
demand and greater uncertainty,” Pranjul Bhandari, Chief India Economist at
HSBC, said. PMI is based on responses from purchasing executives of 400
companies. Index above 50 indicates expansion, while below 50 means
contraction.
(Business Line)
US trade deficit widens to
$57.3 billion in February, below forecast: The US trade deficit widened
in February by less than forecast as both imports and exports increased. The
gap in goods and services trade grew 4.9 per cent from the prior month to $57.3
billion, Commerce Department data showed Thursday. The median estimate in a
Bloomberg survey of economists called for an almost $61 billion deficit.
Exports rose 4.2 per cent in February, driven by gold and natural gas
shipments. Imports increased 4.3 per cent on more inbound shipments of
computers, semiconductors and automobiles. Goods imports rose an almost
one-year high. Charges for the use of imported intellectual property also rose,
which may reflect a temporary boost from broadcasting rights related to the
Winter Olympics.
(Business Standard)
HDFC Bank to consider debt
fundraising on April 18: HDFC Bank on Thursday said its
Board of Directors will meet on April 18 to consider raising funds through the
issuance of various debt instruments, according to an official communication to
stock exchanges. The board will evaluate plans
to raise capital over the next twelve months via private placement across
multiple categories of bonds and instruments.
(Moneycontrol)
Emirates NBD gets RBI nod
to become majority owner of RBL Bank: The Reserve Bank of India has
approved Emirates NBD Bank’s proposal to acquire a majority stake in RBL Bank,
the Mumbai-based lender said on Thursday, marking a key regulatory milestone
for one of the largest cross-border deals in India’s financial sector. The
approval clears a major hurdle for the transaction, which was first announced
in October last year, when Emirates NBD unveiled plans to acquire a 60% stake
in RBL Bank for $3 billion. The deal is seen as a significant step in expanding
the UAE-based lender’s footprint in India, while providing a fresh growth push
for RBL Bank. The Reserve Bank of India has approved Emirates NBD to acquire up
to a 74% stake in RBL Bank, paving the way for one of the largest cross-border
deals in India’s financial sector.
(Moneycontrol)
Dubai regulator probe found
HDFC’s DIFC branch kept quiet for 5 years, failed to meet integrity standards: The Dubai Financial Services
Authority (DFSA) had reprimanded the senior management of HDFC’s branch in the
emirate more than six months ago, saying it was incapable of managing and
resolving issues after customers alleged they were wrongly sold Credit Suisse
bonds by the bank’s employees in Dubai and Bahrain. The independent regulator
observed that the bank’s compliance team was aware of the lapses with regard to
the mis-selling of the additional tier-1 (AT1) bonds.
(Economic Times)
India plans Rs.2-2.5 lakh crore credit guarantee scheme amid West Asia conflict: India is introducing a new credit
guarantee scheme to help industries facing higher costs due to the West Asia
conflict. This initiative aims to ensure companies can access funding, easing
concerns about rising input and logistics expenses. The government is
proactively preparing to mitigate any economic stress.
(Economic Times)
AIBEA writes to
FM seeking probe into HDFC Bank matter after chairman's exit: The All India Bank Employees' Association
has written to Finance Minister Nirmala Sitharaman, seeking an inquiry into the
affairs at HDFC Bank after the surprise resignation of its non-executive
chairman Atanu Chakraborty last month. The AIBEA said there is a need for HDFC
Bank's 120 million customers, shareholders and also the general public to feel
reassured, and hence sought Sitharaman's intervention in the matter.
(Economic Times)
RBI retains bond
structure, upgrades operations for savings bonds: RBI, in its April 2026 circular on
Floating Rate Savings Bonds, has left the product structure unchanged while
upgrading the operational framework with a focus on digitisation,
accountability, and standardised investor servicing. The central bank retained
key features of the bonds, including the seven-year tenor, interest rate linked
to the National Savings Certificate (NSC) rate plus 35 basis points, and
semi-annual resets. Banks acting as receiving offices (ROs)
will now be subject to stricter timelines for remittance of funds, with
penalties and recovery of interest costs in cases of delays or misreporting.
The framework also mandates compensation to investors for delays in interest
payments, redemption, or issuance. Further, the circular mandates time-bound
digital access, requiring receiving offices to enable online application
facilities by September 30, 2026.
(Economic Times)
RBI allows
residents to exchange rupee notes at airport forex counters: RBI has permitted residents, in addition
to non-residents, to exchange Indian rupee notes at foreign exchange counters
located in departure halls of international airports established in the
Duty-Free Area or Security Hold Area beyond the immigration or customs desk,
the central bank said in a release on Thursday. The facility will be available
at counters set up in duty-free or security hold areas beyond the immigration
or customs desks. Earlier, such exchanges were largely restricted to
non-residents.
(Business Standard)
Artemis II mission to open
door for $127 billion lunar economy by 2050: The Artemis II space mission was launched from
Florida, United States, on Wednesday, sending four astronauts on a historic
10-day flyby journey around the moon. “Flyby” is the journey of a spacecraft to
record data. This will mark the first entry of humans beyond the low-earth orbit
in more than five decades.
(Business Standard)
State run banks see healthy
loan growth in FY26, beat deposits: State-owned lenders PNB and Central Bank of
India recorded double digit growth in advances during the recently concluded
financial year 2025-26 (FY26), outpacing deposit growth. New-Delhi-based PNB’s
advances grew by 12.17 per cent Year-on-Year (YoY) to Rs 11.96 trillion and
deposits increased by 9.14 per cent YoY to nearly Rs 16.5 trillion, according
to a filing to the exchanges. Another state-run lender Bank of India reported
15.7 per cent in global advances to Rs 7.7 trillion and 13.6 per cent rise to
Rs 9.3 trilliom in global deposits. Central Bank of India recorded 18.9 per
cent Year-on-Year (YoY) growth in advances to Rs 3.45 trillion, while deposits
grew by 13.4 per cent YoY to Rs 4.68 trillion.
(Business Standard)
PM Modi meets Russian
Deputy PM, discusses trade, energy cooperation: Russia's First Deputy Prime Minister Denis
Manturov on Thursday called on Prime Minister Narendra Modi and discussed ways
to strengthen bilateral ties in areas of investment, energy and industrial
cooperation. Manturov, on a two-day visit to India, also held talks with
External Affairs Minister S Jaishankar and National Security Advisor Ajit
Doval. The Russian embassy said Modi and Manturov discussed "specific
steps to implement agreements reached" during the India-Russia summit held
in December last. "Particular attention was paid to further strengthening
Russia-India trade, economic, investment, energy and industrial
cooperation," it said on social media.
(Business Standard)
Parliament passes Jan
Vishwas Bill 2026, decriminalising 717 offences, fines up to Rs 1 crore: Parliament on Thursday cleared the Jan Vishwas
(Amendment of Provisions) Bill, 2026, a wide-ranging legislation aimed at
decriminalising minor offences and streamlining compliance across multiple
sectors to improve the business climate. The Rajya Sabha approved the
Bill by a voice vote. Introduced in the Lok Sabha on March 27, 2026, the Bill
seeks to amend 80 central Acts. It replaces an earlier version introduced in
August 2025, which covered 17 Acts and was later referred to a Select Committee
chaired by Tejasvi Surya. In several cases, jail terms have been removed
entirely.
(Moneycontrol)
Govt exceeds
FY26 indirect tax collection estimates of Rs.15.52 lakh cr: The government has marginally exceeded
the indirect tax collection target for fiscal 2025-26, an official said on
Thursday. The total indirect tax collection, which includes customs, excise and
GST, as per Revised Estimates (RE) was pegged at over Rs.15.52 lakh crore for
FY26. This includes Rs.2.58 lakh crore from customs duty, Rs.3.38 lakh crore from
excise duty, and Rs.9.58 lakh crore from Central Goods and Services Tax (CGST). Without
giving actual figures, the official said that revenues from customs duty came
in at 102 per cent of RE, while in case of excise duty it was 101 per cent of
RE. The Central GST collection came in at 100.8 per cent of RE for FY26.
(Business Line)
Govt notifies adoption of
international valuation standards under IBC to boost investor confidence: To revive the global investor confidence in
India’s insolvency framework, the Insolvency and Bankruptcy Board of India
(IBBI) has notified that the International Valuation Standards (IVS) will be
applicable for all the valuations conducted under the insolvency and bankruptcy
code (IBC). The IBBI’s circular said that these standards will come into force
from April 1, and will apply to corporate insolvency resolution process (CIRP),
liquidation, and personal guarantor bankruptcy proceedings. The board said that
one of the objectives of the IBC is to maximise the value of assets of an
insolvent entity by facilitating a time-bound resolution process.
(Financial Express)
PARETO EFFICIENCY
§
Pareto
efficiency, also known as Pareto optimality, describes a situation in which
resources are distributed in such a way that improving one person's well-being
would inevitably reduce someone else's.
§ Pareto efficiency implies that resources are
allocated in the most economically efficient manner, but does not imply
equality or fairness. An economy is said to be in a Pareto optimum state when
no economic changes can make one individual better off without making at least
one other individual worse off.
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 : 93.2088
INR
/ 1 GBP : 123.1854
INR
/ 1 EUR : 107.4828
INR
/100 JPY: 58.4900
EQUITY INDEX
Sensex:
73319.55 (+185.23)
NIFTY:
22713.10 (+33.70)
Bnk NIFTY: 51548.75 (+100.10
World Wildlife
Day: March 3 is primarily recognized globally as
World Wildlife Day to celebrate and raise awareness of the world’s fauna and
flora. It is also celebrated as World Hearing Day to promote ear care and
National Anthem Day in the United States. In 2026, it also marks the Hindu
festival of Holika Dahan in India.
Historical
events: March 3 holds
significant historical importance, marked by the birth of industrialist
Jamsetji Tata (1839) and the Battle of Tukaroi (1575) in India, along with
global milestones like the Treaty of Brest-Litovsk (1918) and the first ice
hockey game (1875). It is also observed internationally as World Wildlife Day
and World Hearing Day.
****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