Issue: 1234
· At Rs 400 crore every trading
hour, FII secondary market selling in 2026 so far runs at twice the 2025 pace.
· RBI to conduct Rs 50,000
crore 2-day variable rate repo auction on June 3.
· Silver imports face stricter
rules as government mandates DGFT approval.
· Global economy could enter
‘red zone’ if Strait of Hormuz remains disrupted, warns IEA's Fatih Birol.
· India, US begin three-day
talks to finalise details of trade pact.
· US sanctions Iran’s top
crypto exchange Nobitex in ongoing push for deal,
· Tik Tok founder Zhang Yiming
surpassed Mukesh Ambani to become Asia’s second-richest person after a rise in ByteDance Ltd.’s valuation.
India to launch Producer
Price Index, new WPI series on June 15: The commerce ministry will on
June 15 release a new price index, called the Producer Price Index (PPI), to
measure factory-gate costs. The PPI will be released with
the revamped Wholesale Price Index (WPI), with the base year 2022-23, the
ministry officials said on June 2. Currently, the base year of WPI is 2011-12. The
PPI data will not be released on a consolidated basis but through three
indices; Input PPI, Output PPI, and Services PPI. The Services PPI will be
released quarterly, while the other two will be published every month, the
officials said. For five years, the ministry
will publish the WPI, and the three indices parallelly. But after five years, a
final call will be taken if the PPI will fully replace the WPI. "We can’t
say for sure if that will happen, as we have to assess whether or not the
accurate price trends are being captured by the PPI," one of the officials
said.
(Moneycontrol)
India slips to seventh in
global market cap rankings as South Korea pulls ahead: India’s equity markets slipped
to seventh place in terms of market capitalisation on Tuesday as heavy ?foreign
selling, weak earnings growth and limited exposure to AI-linked stocks allowed ?South
Korea’s chip-heavy market to overtake it. South Korean stocks have
rallied ?this year, driven by AI chipmakers, which have lifted ?the combined value of
companies listed on the KOSPI, KOSDAQ and KONEX to $5.01 trillion, surpassing
the $4.85 trillion value of firms on India’s National Stock Exchange, exchange ?data
showed. About 18 months ago, India’s
equity market cap was ?roughly 3.5 ?times South Korea’s and more
than twice Taiwan’s. India’s Nifty 50 and BSE
Sensex have lost 10.1% and ?12.5% each this year, ?while the IT index — the
second-heaviest sector on the benchmarks — has tumbled 19%.
(Business Line)
OPEC+ Outlines Plans to
Boost Crude Oil Production Quotas: In a move that sent immediate
ripples through energy sectors and global inflation models, OPEC+ finalized a
framework to raise its collective crude oil production quota by 188,000 barrels
per day. The policy aims to offset supply strains amid shifting geopolitical
pressures.
(Reuters)
Fintech lenders corner 77%
of India's personal loan market by volume in FY26: Fintech lenders now lead
India's personal loan market by loan count. These digital NBFCs are disbursing
small-ticket loans, reaching more customers in smaller cities and younger
demographics. Their loan book has grown significantly, and asset quality is
improving. Fintech lending is becoming a key part of India's retail credit landscape.
(Economic Times)
Generali Central Life
Insurance aims to double business to Rs 2,000 cr in 3 years: Generali Central Life
Insurance aims to double its business to Rs 2,000 crore over the next three
years, helped by the bancassurance channel. The insurance company, a 74:25
joint venture between Generali of Italy and the public sector Central Bank of
India, closed the financial year 2025-26 with a first-year premium of Rs 964
crore.
(Economic Times)
DNB Bank Partners with
Infosys to Overhaul Financial Crime Operations via Cloud: DNB Bank ASA, Norway’s largest
financial institution, entered into an expanded cloud SaaS architecture
agreement to completely modernize its Financial Crime (FinCrime) defense systems.
The overhaul migrates legacy siloed platforms into a unified, AI-driven
anti-money laundering (AML) and fraud-monitoring system aimed at
multi-jurisdictional regulatory compliance.
(Newswire)
Soiled note disposal by RBI
falls sharply in FY26 due to machine upgrades: The number of soiled banknotes
disposed of by the Reserve Bank of India (RBI) dropped sharply in 2025-26
because the shredding of such notes was interrupted due to the replacement of
machines. According to latest data, the central bank disposed soiled or
mutilated notes of 17 billion pieces in FY26 as compared to 23.9 billion pieces
in the previous financial year. This was mainly due to the replacement of
Shredding and Briquetting Systems (SBS), which interrupted the disposal of
soiled banknotes. Sources said the replacement and installation of such
machines usually take four to five months.
(Business Standard)
IOB secures IFSCA license
for GIFT City branch: Indian Overseas Bank on
Tuesday said the International Financial Services Centres Authority (IFSCA) via
a letter dated June 1, granted license to the PSU bank to set up its branch at
GIFT City, Gujarat. This will enable the bank to participate in global offshore
banking and foreign currency operations. “The validity of the license is
perpetual and subject to such terms and conditions as may be specified by
IFSCA,” IOB said in a filing to the exchanges.
(Business Line)
RBI may have sold gold to
save foreign reserves, BE report shows: India’s central bank may have
offloaded a portion of its gold holdings to shield its foreign-currency assets
from the cascading fallout of the war in the Middle East, according to an
analysis by Bloomberg Economics based on publicly available data. The Reserve
Bank of India likely sold gold reserves worth roughly $12 billion in the two
weeks through May 22, while buying $7.5 billion of foreign-currency assets,
BE’s senior India economist, Abhishek Gupta, wrote.
(Business Line)
EV penetration in India
crosses 10% for first time, hits record 10.7% in May: Electric vehicle (EV) penetration in the
domestic retail market surpassed the double-digit milestone in May 2026,
reaching an all time high of 10.7%. According to industry data, EV sales rose
to 271,116 units during the month, out of total vehicle sales of 2.53 million
units. In April, EV penetration was
9.2%, with sales of 250,888 units out of total vehicle sales of 2.72 million
units. EV adoption also continued to outpace the broader automotive market.
While total vehicle retail sales increased 9.3% year-on-year in May 2026, EV
sales jumped 45%, highlighting the faster pace of electrification. However,
growth remains heavily concentrated in the two-wheeler segment. Electric
two-wheelers accounted for 62.9% of total EV sales in May 2026.
(Financial Express)
Godrej Industries enters
wealth management, targets Rs.1 trillion AUM by 2031: Godrej Industries on Tuesday forayed into the
wealth management business, targeting assets under management (AUM) of Rs.1
trillion and a network of 35 locations over the next five years. The group also
plans to list its financial services arm, Godrej Capital, by 2031 and has
earmarked Rs.5,000-7,000 crore to support the growth of its lending business. The
platform, branded as Godrej Wealth, will focus on affluent and high-net-worth
individuals (HNIs) through a technology-enabled model. The business will
primarily cater to clients with investable assets of Rs.2 crore and above.
(Business Standard)
Corporate bond sales seen
slowing as borrowing rates hit 7-year high: Indian firms and non-bank lenders are slowing
the pace at which they raise ?funds via bonds after borrowing costs spiked to
seven-year highs, investors ?and merchant bankers said. LSEG benchmark yields on AAA-rated corporate
?bonds in the two- to five-year maturity ?bucket rose above 8 per cent last week, the highest
since January–March 2019, the data showed. In May, the two-year AAA corporate
bond yield surged ?by about 40 basis points, while yields in the three- to
five-year segment rose by around 30 ?basis points. Borrowing costs have risen
in anticipation ?of ?higher policy rates and tighter liquidity
conditions from the ?Reserve Bank of India.
(Business Line)
NPCI Rolls Out Anti-Fraud
"Verified Name" Display for All UPI Apps: To combat the rising wave of
digital payment spoofing, the NPCI mandated a major infrastructure upgrade for
Unified Payments Interface (UPI) apps. Going forward, whenever a user scans a
QR code or inputs a mobile number, the application must display the recipient’s
officially registered, bank-verified name, replacing custom user aliases or
fraudulent business names..
(NPCI Press Release)
Iran War Puts
Reserve Bank of India in Sharp Policy Bind Over Rupee and Growth: India's central bank faces its toughest
interest rate call in years as its policy meeting begins. The rupee has slided
toward record lows (trading around 95.17 against the USD) due to the regional
conflict, driving up crude oil import bills. While 80% of economists in a
Reuters poll predict the RBI will keep the repo rate steady at 5.25%, an
increasing minority anticipate hawkish guidance or a defensive rate hike to
cushion capital outflows.
(Reuters)
Foreign visitors
must register before 180-day limit for longer stay: Govt: The foreigners coming to India on a visa
for 180 days or less will now have to register themselves "any time before
the expiry of the said period of 180 days" in case they want to stay
beyond the visa period, according to changes in the Immigration and Foreigners
Rules, 2025 notified by the Union home ministry. The new provision, notified on
Monday, will replace the previous rule that required the registration
"within fourteen days after the expiry of one hundred and eighty days of
arrival in India."
(Business Standard)
IMPREST
§ An
imprest is a fixed cash account used by businesses to manage routine, small expenses
efficiently, ensuring financial oversight and minimizing unauthorized spending.
§ The
imprest system helps control unauthorized spending by earmarking funds for
specific purposes and making it easier to track and flag discrepancies.
§ While
traditionally managed through physical petty cash, the trend is shifting
towards electronic transactions for better documentation and ease of use.
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 : 95.1702
INR
/ 1 GBP : 128.2602
INR
/ 1 EUR : 110.8663
INR
/100 JPY: 59.5800
EQUITY INDEX
Sensex:
74649.84 (+382.50)
NIFTY:
23483.55 (+100.95)
Bnk NIFTY: 53714.65 (+71.55)
World Bicycle Day: June 3 is
globally celebrated as World Bicycle Day by the United Nations to recognize the
bicycle as a sustainable, simple, and affordable means of transportation.
Historical
events: June 3 holds
monumental significance in history. Globally, it marks the 1989 Tiananmen
Square crackdown in Beijing. In India, it is best known for the 1947
Mountbatten Plan, which detailed the partition into two independent nations,
and the 1984 launch of Operation Blue Star. In Indian
history, June 3 is most prominently associated with the announcement of the
1947 Mountbatten Plan. Also known as the "3 June Plan," it detailed
the framework for the partition of British India into India and Pakistan,
setting the path for independence.
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