Issue: 1162
Government moves to curb
hoarding as LPG demand spikes; booking gap raised to 25 days: The government has increased
the minimum waiting period for booking domestic LPG cylinders from 21 days to
25 days in a bid to curb hoarding and black marketing, government sources said
on March 9. According to officials, the
move comes after authorities noticed unusual booking patterns among consumers.
In several cases, households that earlier booked LPG cylinders roughly once
every 55 days had begun placing orders within just 15 days, raising concerns
over possible stockpiling and diversion. At the same time, the
government has asked refineries across the country to ramp up LPG production to
meet rising demand. Officials said domestic consumption will be prioritised
over commercial LPG connections to ensure households do not face shortages.
(Moneycontrol)
Rupee closes at record low
despite RBI intervention, G-Sec yields rise: The rupee and Government
Securities (G-Secs) markets on Monday felt the impact of rising crude oil
prices amid the ongoing West Asia conflict, which entered the tenthday. The
rupee closed at a record low and G-Sec yields rose, but pulled back half the
losses. The Indian currency ended the day at an all-time low of 92.33 per US
dollar, down 59 paise against previous close of 91.74. The central bank is
understood to have intervened in the market, selling dollars through
state-owned banks to smoothen the volatility in the domestic currency.
(Business Line)
Government will not raise
petrol, diesel prices: Even as international crude
oil prices breached the psychological threshold of $100 per barrel on Monday as
the West Asian conflict intensified, the government has reiterated its stand of
no increase in retail prices of diesel and petrol to shield the common man. Top
sources said that there are “no immediate” plans to raise retail prices of the
two auto fuels. India has 25 days stock of crude oil and petroleum products
each, which is “sufficient” to weather the impact in the short term. Besides,
supplies are available including from Russian crude-at-sea. (Business Line)
Basic savings,
Jan Dhan accounts not subject to penalty for not having minimum balance: About
72 crore BSBD Accounts, including those under the PM Jan Dhan scheme, are not
subject to any penal charges for non-maintenance of minimum balance, Finance
Minister Nirmala Sitharaman said on Monday. In a written reply to a question in
the Lok Sabha, she said banks offer zero-balance savings accounts facility in
Basic Savings Bank Deposit Accounts (BSBDAs), including the accounts opened
under the Pradhan Mantri Jan Dhan Yojana (PMJDY), to ensure universal access to
banking facilities, particularly for unbanked, vulnerable and small depositors,
and to promote financial inclusion.
(Economic Times)
IIFCL set
to cross Rs 1 lakh cr loan milestone, eyes doubling assets in 3 years: State-owned India Infrastructure Finance
Company Ltd (IIFCL) is set to cross the Rs 1 lakh crore loan book milestone in
FY2026-27, driven by a strong project pipeline, its Managing Director Rohit
Rishi has said. "As on December 31, 2025, IIFCL's loan book stood at Rs
80,515 crore. Based on our current trajectory and the strength of our project
pipeline across sectors, we expect the loan book to cross the Rs 1 lakh crore
milestone before the end of FY27," the newly appointed MD told. He also
exuded confidence of doubling the asset book in the next three financial years.
(Economic Times)
PSBs may take a deeper hit
on farm loan waivers: Macquarie: Farm loan waivers could weaken
the credit discipline and lead to a rise in agricultural non-performing loans
(NPLs), with public sector banks (PSBs) likely to be more affected than private
sector peers, a note by Macquarie Group said. The note comes after the
Maharashtra government on Friday announced a farm loan waiver of up to Rs 2
lakh under the Punyashlok Ahilyadevi Holkar Shetkari Karjamafi Yojana in the budget
for 2026-27. Under the scheme, farmers with outstanding crop loans as of
September 30, 2025, will be eligible for the waiver. “Farm loan waivers
eventually result in higher NPLs in the agriculture space as they vitiate the
credit culture,” Macquarie analyst Suresh Ganapathy said in the note. It also
highlights that even borrowers who are otherwise able to repay loans may delay
payments in anticipation of future waivers, creating a moral hazard.
(Financial Express)
Private sector banks
collected over ?11,000 cr in 3 yrs for not maintaining minimum balance in
accounts: Private sector
banks collected around ?11,000 crore in three years (fiscal year 2022-23 to
fiscal year 2024-25) as compared to ?8,000 crore by public sector banks on
account of non-maintenance minimum monthly average balance (MAB), data provided
by the Finance Ministry in the Lok Sabha on Monday showed. According to data in
the written response by Finance Minister Nirmala Sitharaman, HDFC Bank emerged
as the top earner with over ?3,800 crore in 3 years, followed by Axis Bank and
ICICI Bank with over ?2,700 crore and ?1,200 crore respectively. Among the
public sector banks, PNB was on top in terms of total during three years with
over ?1,500 crore followed by Bank of Baroda (over ?1,200 crore) and Indian
bank (over 1,100 crore)
(Business Line)
IRDAI nod for Allianz Jio
Reinsurance and Kiwi General: IRDAI has
issued Certificates of Registration to Allianz Jio Reinsurance and Kiwi General
Insurance, granting them final approval to begin operations. Allianz Jio Reinsurance
is a joint venture between Allianz Group and Jio Financial Services, while Kiwi
General Insurance is supported by WestBridge Capital and former Tata AIG chief
Neelesh Garg.
(Economic Times)
Govt mulling a new scheme
to help exporters amidst Israel-Iran conflict: The central government is mulling on creating
a new scheme to help exporters who are struggling amidst the ongoing conflict,
a senior government official said. We may also tweak the Export Promotion Mission to
offer some more incentives to help our exporters, the official said, adding
that any certainty on these lines can only be provided -- if the conflict shows
no signs on easing in the coming days. Exporters and energy-dependent
industries told earlier that a prolonged or wider conflict involving the United
States, Israel and Iran could disrupt key trade routes, push up freight and
insurance costs, and trigger renewed volatility in energy markets.
(Moneycontrol)
SEBI examining Calcutta
Stock Exchange application for voluntary exit from business: MoS Financeets: SEBI is examining the application seeking
voluntary exit of the Calcutta Stock Exchange (CSE) from its business, Minister
of State for Finance Pankaj Chaudhary said on Monday. The Calcutta Stock
Exchange (CSE), in its February 18, 2025, letter to the Securities and Exchange
Board of India (SEBI), sought voluntary exit as a Stock Exchange under the SEBI
Exit Policy for stock exchanges. "The proposal is at the stage of
examination before SEBI," Chaudhary said. Trading on the CSE platform
stopped in April 2013.
(Business Line)
Oil prices fall below $90
as Trump says ‘the war is complete’: The widening Iran war has upended oil production
and shipping across the Middle East, straining energy supplies worldwide. Those
disruptions caused oil to spike Monday, only for it to swiftly fall back after
President Donald Trump suggested the war could be near an end. The price of
Brent crude, the international benchmark, briefly surged to $119.50 per barrel
on Monday — its highest level since the summer after Russia invaded Ukraine in
2022. West Texas Intermediate, which is produced in the U.S., also soared to
$119.48 per barrel at one point. But those prices fell to under $90 late
Monday, as markets made significant reversals after Trump told CBS News he
thinks “the war is very complete.”
(Financial Express)
Secretary, DFS chairs
Review meeting to monitor the progress of Public Sector Banks to expedite
pending cases at NCLT: Shri M. Nagaraju, Secretary, Department of
Financial Services (DFS), chaired a review meeting today to monitor the
progress in top IBC cases pending for admission and resolution at NCLT. During
the meeting, the progress on cases that have been admitted and rescued during
the year was acknowledged. It was informed that twenty high value accounts have
been resolved through admission/assignment/disposal at NCLT with the coordinated
efforts of all stakeholders. A detailed review of top twenty accounts pending
for admission and ten accounts pending for resolution was undertaken for early
expedition of pending cases. During the deliberations, the issues related to
pending IBC cases were addressed. Banks were advised to take collaborative
approach in resolution of pending cases for asset value maximization, improving
recoveries, and ensuring time-bound objectives.
(PiB)
Phanindranath
Kakarla takes charge of Arcil as CEO & MD: Phanindranath Kakarla has taken charge of Asset
Reconstruction Company (India) Limited (Arcil), as Chief Executive Officer and
Managing Director (CEO & MD), with effect from March 8, 2026. He succeeds
Pallav Mohapatra, who helmed Arcil since March 2021. Kakarla joined Arcil on
April 2, 2025, as President under a Board-approved succession plan in order to
overlap with Mohapatra’s tenure for a sufficient period for continuous and
smooth transition, per Arcil’s statement.
(Business Line)
Like banks, leadership
rotation rule may apply to large NBFCs: The Reserve Bank of India
(RBI) is considering a leadership rotation policy for large NBFCs to strengthen
governance. The matter was discussed at a
meeting involving the RBI, government officials and representatives from the
NBFC sector at the department of financial services on February 26. While
Section 10 of the Banking Regulation Act mandates banks to follow the rotation
policy at the top management and staff levels, there is no such guideline for
NBFCs.
(Economic Times)
NEOLIBERALISM
§ Neoliberalism
refers to a policy model that emphasizes private enterprise and shifts economic
control from government to the private sector. Influenced by leaders like
Margaret Thatcher and Ronald Reagan, it advocates for lesser government
intervention, focusing on free-market capitalism and fiscal austerity.
§ Understanding
neoliberalism involves looking at its policies, such as privatization and
deregulation, which impact economies and societies worldwide.
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 : 92.2639
INR
/ 1 GBP : 122.9121
INR
/ 1 EUR : 106.5882
INR
/100 JPY: 58.1800
EQUITY INDEX
Sensex: 77566.16 (-1352.74)
NIFTY: 24028.05 (-422.40)
Bnk NIFTY: 56019.80 (-1763.45)
Historical events: March 10th marks
significant historical milestones, including the 1876 invention of the
telephone, the 1933 opening of the first Nazi concentration camp, and the 1959
Tibetan uprising. In India, notable events include Gandhi's 1922 arrest, the
1985 cricket World Championship win, and the birthday of space scientist Udupi
Ramachandra Rao.
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