Issue: 1264
· RBI approves re-appointment
of NS Vishwanathan as Axis Bank's non-executive chairman.
· NBFCs' gold loans jump nearly
70 pc in May, fastest across segments: RBI data.
· IDFC First Bank launches EPFO
payment services.
· SBI joins global banks to
fund Sun Pharma's $11.75 billion Organon buy.
· India's EV penetration tops
12% for first time in June, led by e2Ws.
· India rose to 11th among top
FDI destinations in 2025: UN report.
· Banks' body can't blacklist
lawyers for alleged negligence: Supreme Court.
· Beijing weighs curbs on
overseas access to China's advanced AI models.
Rupee posts biggest
single-day gain in three weeks on debt inflows: The rupee on Tuesday recorded
its biggest single-day gain in three weeks as foreign inflows continued into
debt, with muted dollar demand from oil firms providing support, dealers said. The
domestic currency closed at 94.97 against the US dollar, appreciating 0.46 per
cent from the previous close of 95.40. This was the rupee's biggest gain since
June 12, 2026, when it appreciated 0.68 per cent. The Indian unit was the
best-performing Asian currency after the South Korean won, which gained 0.91
per cent. The rupee’s recovery comes after sustained pressure in recent weeks
despite measures announced by the RBI to attract dollar inflows.
(Business Standard)
Centre plans to zero in on
about 500 districts to boost MSME exports: The Centre is preparing a
major district-level export promotion initiative under which about 500
districts will be identified in the first phase to boost exports, with a
special focus on helping micro, small and medium enterprises (MSMEs), according
to people familiar with the matter. The broad contours of the initiative were
discussed at the recent Board of Trade (BoT) meeting chaired by Commerce and
Industry Minister Piyush Goyal, the people said. Sources said during the
meeting that India’s exports are currently concentrated in fewer than 100
districts, even though almost every district has products or sectors with
export potential. The proposed exercise seeks to widen the country’s export base
by identifying districts that can emerge as new export hubs.
(Business Standard)
E-way bill generation rises
14.5% in June to fourth-highest monthly level: E-way bill generation under
the GST regime rose 14.5 per cent YoY to a four-month high of 136.77 million in
June 2026 from 119.46 million a year earlier. On a sequential basis, it
increased 0.5 per cent from 136.08 million in May. The June tally was the
highest in four months and the fourth-highest monthly e-way bill generation
since the roll out of GST, pointing to continued resilience in goods movement
and steady tax compliance. E-way bills are mandatory for transporting
consignments valued above ~50,000 and are widely tracked as a high-frequency
indicator of domestic trade, supply chain activity and GST compliance.
(Business Standard)
Home loan PSL limit should
be raised to Rs.1 crore in metros, education loan cap to Rs.50 lakh: Report: SBI Research has proposed
raising the Priority Sector Lending (PSL) eligibility limit for home loans to Rs.1
crore in metro cities and Rs.75 lakh in other centres, while also recommending
that the education loan cap under PSL be doubled to Rs.50 lakh. The proposals
are part of a broader review of the Reserve Bank of India's (RBI) PSL framework
to better align it with rising costs and the government's Viksit Bharat 2047
vision. The report argues that the
current loan thresholds have failed to keep pace with inflation in property
prices and education costs, reducing the effectiveness of the PSL framework in
supporting borrowers. It recommends revising the limits to ensure that priority
sector lending remains relevant as financing needs evolve.
(Business Today)
Sharp rise in general
insurance complaints raises service quality concerns: RBI: A sharp surge in customer
grievances in the general insurance sector has raised fresh concerns over
claims management, service quality and product communication, according to the
Reserve Bank of India (RBI). The unresolved grievances could undermine
policyholder confidence and pose broader financial stability risks, RBI
said. According to the RBI’s Financial
Stability Report, the number of reported grievances in the general insurance
sector nearly tripled to 1.78 lakh in 2025-26 from 2021-22, signalling
persistent shortcomings in customer service and claims settlement.
(Business Line)
Strong credit growth,
treasury gains to support banks’ Q1 earnings: Robust credit growth of 17.7%
in the first quarter — the highest in nearly two years — along with strong
treasury gains and stable asset quality is expected to support banks’
profitability. However, pressure on net interest margins (NIMs) is likely to
persist as much of the incremental lending has been funded through high-cost
retail and bulk deposits. “Most of the incremental bank credit growth has come
from corporate credit, gold loans and NBFC lending, all lower-yielding
segments, pointing to a NIM trade-off,” Nomura said in a report. Deposit growth
continues to lag credit growth, while low-cost current account savings account
(CASA) ratios have declined across most banks. The banking sector recorded
sequential deposit growth of 3.3% and year-on-year growth of 12 % as of June
15, according to the latest Reserve Bank of India data.
(Financial Express)
Cost of free alerts: RBI’s
SMS order may dent banks’ income by Rs 300 crore: The banking regulator’s
directive to bar banks from charging customers for SMS alerts sent for
compliance, awareness, or promotional purposes could result in a loss of fee
income of up to Rs 300 crore for large lenders, banking officials told ET. Banks
have also been given the flexibility of dropping mandatory alerts for lowvalue
transactions. However, top-draw private banks, such as HDFC Bank or ICICI Bank,
are unlikely to reduce SMS alerts for such transactions to ensure their reputation
for technology adoption and customer experience isn’t compromised.
(Economic Times)
Irdai asks state-run
insurers to account for wage costs annually: Irdai has implemented a new
requirement for state insurers to create annual provisions for wage increases,
intending to soften the financial repercussions of periodic wage negotiations.
Insurers are now obliged to evaluate the sufficiency of these provisions
quarterly after obligations become clear. The government has ruled out options
for additional capital, instead banking on solvency improvements from IFRS 17
and stakes in the NSE.
(Economic Times)
HSBC pulls back from risky
credit after bankruptcy scare: HSBC is pulling back from riskier
private credit lending, becoming the latest bank to rein in exposure ?to the ?sector after ?a string of high-profile
bankruptcies raised concerns over underwriting standards, the Financial Times
reported on ?Tuesday. The bank has told some clients
it will not renew their lending facilities after deciding ?to stop lending to
private credit funds that did not offer sufficient returns to justify the risk,
the report, citing three people familiar with the matter, ?said.
(Economic Times)
ARC consolidation: Govt
weighs ASREC merger with NARCL: The government is considering a merger of ASREC
Asset Reconstruction Company with NARCL to enhance the functionality of state-sponsored
bad-loan resolution efforts. This proposal, still in preliminary discussions,
underscores a strategic effort for consolidation rather than growth. ASREC ARC
is majorly held by public sector lenders and LIC, aiming for better management
and scrutiny of bad loans.
(Economic Times)
Include infra loans in
priority sector in absence of vibrant bond market: SBI economists: Economists propose reviewing priority sector
lending guidelines for banks. They note banks struggle to meet targets without
certificate purchases. Infrastructure loans should gain priority sector status
for national development. Housing and education loan limits also need upward
revision. Renewable energy project loan limits should be significantly
increased.
(Economic Times)
PM E-Drive
scheme may get a longer run as EV makers seek support: The Ministry of Heavy Industries (MHI) is
considering an extension of the Prime Minister Electric Drive Revolution in
Innovative Vehicle Enhancement (PM E-Drive) scheme. For electric two-wheelers
(e2Ws), the scheme was extended until July 31 this year from the earlier
deadline of March 31, according to discussions between stakeholders and senior
ministry officials. Under the scheme, which has a total outlay of Rs.10,900
crore, e2Ws are eligible for a subsidy of up to Rs.5,000 per vehicle, or Rs.2,500
per kilowatt-hour. The number of vehicles eligible for the subsidy has been
capped at 2.4 million.
(Business Standard)
SEBI allows depositories to
use up to 5% of IPF investment income for administrative expenses: Market regulator Securities
and Exchange Board of India (SEBI) has allowed depositories to use a small
portion of the annual investment income generated from their Investor
Protection Funds (IPF) to meet administrative and statutory expenses, while
mandating that the bulk of the earnings continue to be added back to the fund. In
a circular issued on July 8, SEBI said depositories must plough back at least
95 percent of the interest or income earned from investments made out of the
IPF every financial year. The remaining up to 5 percent may be utilised towards
expenses related to the functioning of the IPF Trust.
(Moneycontrol)
Government Extends
Additional NPS Investment Choices to Employees of Central Autonomous Bodies
(CABs): The
Government of India has extended two additional investment choices under the
National Pension System (NPS) to employees of Central Autonomous Bodies (CABs)
covered under NPS. The Government had earlier
introduced the Additional Investment Choices, namely the Aggressive Life Cycle
Fund (LC-75) and the Balanced Life Cycle Fund (BLC), for the Central Government
employees covered under NPS. These investment options have now also been
extended to NPS subscribers employed in CABs. With this extension, eligible
employees of CABs will now have choice to the following additional investment
options under NPS:
· Aggressive
Life Cycle Fund (LC-75) now named as LC-75-High: An investment option with
equity exposure of up to 75%, designed for subscribers seeking higher growth
potential over the long term.
· Balanced
Life Cycle Fund (BLC) now named as Aggressive Life Cycle Fund: An investment
option with equity exposure capped at 50%, with a gradual reduction in equity
allocation beginning from the age of 45 years, offering a balanced approach
between growth and stability.
(PiB)
ECLGS 5.0 Crosses 4.11 Lakh
Guarantees with guaranteed amount reaching over Rs.1.55 Lakh Crore: The Emergency Credit Line
Guarantee Scheme (ECLGS) 5.0, approved by the Union Cabinet on 5th May 2026, is
delivering fast, large-scale liquidity support to businesses affected by the
West Asia geopolitical situation. Since launch, 4,11,497 guarantees have been
issued under ECLGS 5.0, with the guaranteed amount reaching to Rs.1,55,229
crore, a sign of the scheme's rapid absorption across the lending ecosystem.
(PiB)
DISCOUNT WINDOW
Ø The discount window is a central bank lending
facility meant to help commercial banks manage short-term liquidity needs.
Banks that are unable to borrow from other banks in the federal funds market
may borrow directly from the central bank's discount window paying the federal
discount rate.
Ø The US Federal Reserve extends discount window
loans to financial institutions that, in turn, support commercial industries.
Ø
The
Federal Reserve and other central banks maintain discount windows, referring to
the loans they make at an administered discount rate to commercial banks and
other deposit-taking firms.
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 : 95.3138
INR
/ 1 GBP : 127.5451
INR
/ 1 EUR : 108.9395
INR
/100 JPY: 58.8300
EQUITY INDEX
Sensex:
78180.72 (-104.35)
NIFTY:
24398.70 (-31.65)
Bnk NIFTY: 58200.70 (-90.80)
Historical events: July 8 is a
monumental date in both Indian and global history, primarily renowned for Vasco
da Gama's 1497 departure to reach India by sea. In India, it marks the 1954
inauguration of the Bhakra-Nangal canal system and the 1914 birth of former
West Bengal Chief Minister Jyoti Basu, alongside global milestones like the
1889 founding of the Wall Street Journal.
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