Issue: 1289
·
Air India appoints Tewolde Gebremariam as new CEO.
·
Services growth slows markedly in July, PMI dipped to 53.3.
·
RBI marginally ups FY27 real GDP growth projection to 6.7%;
slightly cuts CPI inflation projection to 5%.
·
Lower real interest rates have not hurt deposit growth, SBI.
·
Netflix launches India Storytelling Initiative after Sarandos
meets PM Modi.
·
India Inc's ECB, FCCB fundraising intent rises to $6.08
billion in June.
·
RBI to absorb Rs.1.5 trillion via VRRR as liquidity tops Rs.3
trillion
HIGHLIGHTS OF RESOLUTION OF MONETARY POLICY COMMITTEE
DT 3-5 AUGUST 2026
·
The MPC voted unanimously to keep the policy repo
rate unchanged at 5.25 per cent. Consequently, the SDF rate remains at 5.00
per cent and the MSF rate and the Bank Rate remain at 5.50 per cent.
·
The MPC also decided to continue with the neutral
stance.
OUTLOOK
·
Real GDP growth for 2026-27 is now projected at 6.7
per cent (against 6.6 percent projected earlier), with Q1 at 7.0 per cent;
Q2 at 6.4 per cent; Q3 at 6.5 per cent; and Q4 at 6.8 per cent. Real GDP growth
for Q1:2027-28 is projected at 7.3 per cent.
·
CPI inflation increased to 4.4 % in June 2026 after
remaining below the target for 16 consecutive months.
·
CPI
inflation for 2026-27 is projected to be 5.0 per cent with Q2 at 4.7 per cent; Q3 at 5.9 per cent; and Q4 at
5.5 per cent. Inflation for Q1:2027-28 is projected at 5.3 per cent.
Govt approves Rs.4,687
crore to fuel India's ethanol push: The government has approved a total budget
outlay of Rs 4,687 crore towards the payment of interest subvention to the
eligible projects under the various ethanol interest subvention schemes,
minister of state for petroleum and natural gas Suresh Gopi told the Rajya
Sabha on Monday. The government has approved a total budget outlay of Rs 4,687
crore for interest subvention. Between FY23 and FY27 (up to July 2026), it
released Rs 2,075 crore to NABARD, with almost the entire amount utilised. It
also continues to support second-generation biofuel projects under the Pradhan
Mantri JI-VAN Yojana, which provides assistance of up to Rs 150 crore for
commercial-scale projects.
(Business Today)
FCNR (B) cushion lifts
rupee hopes; RBI sees more forex inflows ahead: The Reserve Bank of India had
announced a special forex swap window in June as it looked to stabilise the
rupee against the US dollar and shore up the reserves. Since then, there have
been robust inflows, particularly in foreign currency non-resident [FCNR (B)]
deposits. However, the Reserve Bank will not close the window early, said
Governor Sanjay Malhotra. The concessional swap scheme
for fresh FCNR (B) deposits, overseas foreign currency borrowings (OFCB) and
external commercial borrowing (ECB) had received inflows of $40.8 billion as of
August 1, 2026. Out of the total inflows, $36.72 billion has only been in FCNR
(B) deposits, which is already exceeding the close to $26 billion that was
raised via FCNR (B) deposits through a similar window back in 2013.
(Business Today)
Central banks made the
highest purchase of gold in June for 2026, says World Gold Council: Central banks across the world
continued buying gold for the third consecutive month in June, data from the
World Gold Council (WGC) showed. It was the highest purchase by them this
year. “Central banks bought 51 tonnes of
gold in June, with Poland and China continuing to lead gold accumulation.
Buyers for the month included Uzbekistan, Kazakhstan, Jordan, the Czech
Republic, Ghana and Georgia. Net sellers were Russia and Turkey,” said Marissa
Salim, Senior Research Lead, APAC, WGC. In
the first half of this year, central banks reported buying 102 tonnes, with
purchases spread across a broad cohort of emerging market central banks.
(Business Line)
Govt raises Rs 31,552 crore
from LIC OFS in India's largest public offering ever: The government's stake sale in
Life Insurance Corporation (LIC) has raised Rs 31,552 crore, making it the
largest public offering in the country's history, Department of Investment and
Public Asset Management (DIPAM) said on August 5. With this the public ownership
of LIC has increased to 10 percent and it has achieved this critical milestone
ahead of schedule," the DIPAM secretary said, adding, "A total of
82,23,33,558 shares have been allocated for an amount of Rs. 31,552 crores,
making it India's largest public offering ever.
(Moneycontrol)
RBI targets rollout of
polymer Rs.10, Rs.20 notes at start of April 2027: Plastic currency notes could
begin entering circulation in India at the start of the next financial year,
subject to the successful completion of field trials, Reserve Bank of India
(RBI) Governor Sanjay Malhotra said on Wednesday. Addressing the media after
the Monetary Policy Committee (MPC) meeting, Malhotra said the central bank is
moving ahead with plans to introduce polymer banknotes in the Rs.10 and Rs.20
denominations on a trial basis.
(Business Today)
RBI rules out early end to
forex deposit schemes: Reserve Bank of India (RBI)
Governor Sanjay Malhotra on Wednesday said there is no proposal at present to
prematurely close the concessional foreign exchange swap facility, expressing
confidence that the scheme will continue to attract healthy foreign currency
inflows. The FCNR(B) scheme is ending in September, while the OFCB and ECB
plans will continue till December. The RBI is bearing the cost of currency
hedging under the scheme.
(Financial Express)
Indian Bank targets Rs 35
lakh crore business by 2032 after crossing Rs 15 lakh crore milestone: MD &
CEO: Indian
Bank has set a target of achieving Rs.35 lakh crore in total business by 2032
after crossing the Rs.15 lakh crore milestone in June this year, Managing
Director and CEO Binod Kumar said on Wednesday. "On 125th year, that
means 2032, we have set a target of 35 lakh crore business. In June we are at
15 lakh crore. That means we have to become 2.3 times what we are. We will
become a 35 lakh crore bank by 2032 and, with the support the bank is getting
from the customers and the hard work of our employees, I am very confident that
we will not only achieve, we will surpass that number also," Kumar said.
(Economic Times)
Urban
cooperative bank license applicants need a minimum Rs 300 crore of capital and
Rs 10000 crore of deposits, says RBI: The Reserve Bank of India is resuming
urban cooperative bank licenses after two decades. Eligible credit societies
need a minimum capital of Rs 300 crore and Rs 10,000 crore deposits. Applicants
must show positive financial trends and sound credentials over five years.
Societies with over ten years of existence and multi-state presence are
eligible. The central bank will assess the fit and proper status of directors
before approval.
(Economic Times)
RBI upper-layer
NBFC list to come out soon: The Reserve Bank of India will soon
release a list of upper-layer NBFCs. New principle-based regulations will classify
these financial companies into different layers. Companies in the upper layer
will be required to publicly list their shares. Tata Sons may be included on
this upcoming list of NBFCs. The central bank has not published this specific
list since January 2025.
(Economic Times)
Foreign etailers told to
set up separate export-only units in India: The government on Wednesday said foreign-owned
retail ecommerce (ecom) entities such as Amazon and Walmart-owned Flipkart will
have to set up separate legal entities in India to export Indian manufactured
products through the inventory model. The Directorate General of Foreign Trade (DGFT)
notified the framework after the industry department last month, via Press Note
3 of 2026 series, allowed 100 per cent foreign direct investment (FDI) in
inventory-based retail ecom entities to export domestically manufactured goods. Under the new framework,
the ecom firm must register the separate entity with DGFT as an
Exporter-on-Record (EOR) with an Importer-Exporter Code (IEC) and Goods and
Services Tax (GST) registration. Indian suppliers will be called
Sellers-on-Record (SORs) with a compulsory GST registration, supplying only
Indian-origin goods.
(Business Standard)
Closing price auction
aftermath: NSE-BSE price gaps fuel arbitrage trades: Unusual stock price movements at the National
Stock Exchange (NSE) over the past three trading sessions, since the rollout of
the closing auction session, have created a price arbitrage and low-risk profit
opportunity for high-frequency, high-volume traders between the NSE and the
BSE. Many largecap index stocks have moved at a different pace on the two
exchanges during this period. While some stocks have risen more on the NSE than
on the BSE, others have posted larger gains on the BSE. This has created
opportunities for day traders to buy a stock at a relatively lower price on one
exchange and simultaneously sell it at a higher price on the other, pocketing
the spread.
(Business Standard)
DGFT notifies export-only
inventory rules for foreign-funded e-commerce firms: The Directorate General of
Foreign Trade (DGFT) has notified procedures for foreign-funded e-commerce
companies to undertake inventory-based operations allowing them to hold stocks
of Indian-made goods exclusively for exports. The notification, issued on Wednesday,
puts into force the Department for Promotion of Industry and Internal Trade’s
(DPIIT) July 23 decision to relax FDI rules by allowing e-commerce firms with
foreign investments to hold Indian-made goods for exports. While
the relaxation is limited to exports, some experts cautioned that it could
eventually lead to demands for allowing foreign-funded e-commerce firms to own
inventory for domestic sales as well.
(Business Line)
RBI to resume urban
cooperative bank licensing process after two decades: The Reserve Bank of India will resume issuing
new licenses for urban cooperative banks. This process has been paused for over
two decades due to past financial instability. Draft guidelines for resuming
UCB licensing have now been issued by the central bank. The operating
environment for these banks has significantly transformed since 2004. This move
follows extensive feedback on a discussion paper concerning UCB licensing.
(Economic Times)
Government Notifies
Inventory-based Cross-border E-Commerce Export Framework under Foreign Trade
Policy 2023:
The
Government of India has operationalised the Inventory-based Cross-border
E-Commerce Export Framework under the Foreign Trade Policy (FTP), 2023. The
framework provides a comprehensive policy and procedural architecture for
facilitating inventory-based cross-border e-commerce exports of goods
manufactured or produced in India. Under the framework, eligible e-commerce entities
may undertake export-only inventory operations through a registered
Exporter-on-Record (EOR). The EOR procures goods from Indian Sellers-on-Record
(SORs) against confirmed overseas orders, undertakes exports in its own name,
and assumes responsibility for export operations as well as compliance with
destination-country requirements.
(PiB)
BUG BOUNTY PROGRAM
§ A
bug bounty program is a structured, incentivized initiative where organizations
invite independent security researchers (ethical hackers) to identify and
responsibly disclose vulnerabilities in their systems, apps, or software in
exchange for monetary rewards or recognition.
§ These
programs help improve security posture by crowdsourcing testing, with payouts
for critical bugs ranging from thousands to over $100,000, commonly managed
through platforms like HackerOne or Bugcrowd.
§ The
purpose is to find vulnerabilities, such as code injection or remote code
execution, before they are exploited by malicious actors.
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 : 95.1237
INR
/ 1 GBP : 127.9912
INR
/ 1 EUR : 109.7242
INR
/100 JPY: 60.3100
EQUITY INDEX
Sensex:
78581.00 (+152.05)
NIFTY:
24624.65 (+9.75)
Bnk NIFTY: 57739.95 (-167.25)
Hiroshima Day: August 6 is
widely recognized internationally as Hiroshima Day to mark the 1945 atomic
bombing and promote peace, and it also marks Independence Day in Jamaica as
well as fun informal observances like National Root Beer Float Day.
Historical events: , Bolivia's 1825
independence from Spain, and Jamaica's 1962 liberation, while Indian history on
this date recalls the 1862 establishment of the Madras High Court and the 1986
birth of India's first test-tube baby.
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