Issue: 1241
· RBI cancels registration
certificates of 135 NBFCs.
· Bharti Airtel has rebranded
its recently launched “Priority” postpaid offering as “Fast Lane”,.
· India's current account
deficit to remain 1.5-1.7% of GDP in FY27 but RBI measures may turn BoP
surplus: SBI Report.
· Centre's food subsidy bill
may rise to Rs.2.5 trn in FY27 on higher MSP.
· President Murmu approves
merger of REC with Power Finance Corporation.
· RBI cancels registration
certificates of 135 NBFCs, most in West Bengal.
Retail interest in
government bonds grows as registrations cross 6.4 lakh: India’s retail bond investing
ecosystem has expanded rapidly over the past four years, with registrations on
the RBI Retail Direct platform crossing 6.43 lakh by June 2026, up nearly
nine-fold from just over 71,000 when the platform data was first reported in
October 2022. The growth has been
accompanied by a sharp increase in participation across both primary and
secondary government securities markets. The number of retail accounts opened
rose from 57,728 in October 2022 to 3.69 lakh by June 2026, reflecting growing
investor interest in directly holding sovereign debt.
(Moneycontrol)
Gold ETFs break 13-month
streak of positive inflow; record Rs.725 cr outflow in May: Gold ETFs witnessed an outflow
of Rs.725 crore in May, breaking a 13-month streak of positive inflows, due to
government appeals against purchasing the yellow metal and several asset
management companies halting fresh inflows into these funds. This was the first
outflow since April 2025, when the Gold ETF saw a withdrawal of Rs.5.82 crore. Overall,
Gold ETFs have attracted more than Rs.70,000 crore since May 2025.
(Moneycontrol)
US inflation hits 4.2% in
May, highest since April 2023; energy costs surge 23.5% on Iran conflict: The Bureau of Labor Statistics
has released the US Consumer Price Index (CPI) data for May. The annual
inflation rate in the US rose to 4.2% in May 2026, marking its highest level
since April 2023, from 3.8% in April and in line with market expectations. This
represents the third consecutive monthly acceleration in headline inflation,
with energy costs jumping 23.5% vs 17.9% in April, due to the energy shock
triggered by the conflict with Iran.
(Financial Express)
MF equity inflows fall 40%
m-o-m to one year low amid uncertainty: Volatility in equity markets
and concerns over economic growth dampened inflows into mutual fund schemes,
including SIPs, in May. Equity inflows fell to a one-year low, dropping 40 per
cent month-on-month (m-o-m) to Rs.22,908 crore in May from Rs.38,440 crore in
April, as investor sentiment was hit by a market downturn driven by persistent
foreign portfolio outflows and heightened volatility, according to AMFI data
released on Wednesday.
(Business Line)
Banks kick-off rate hikes
on FCNR (B) deposits: Banks have kicked off rate
hikes on FCNR (B) US dollar deposits in the three-five years tenor in earnest,
with interest rates being increased to 6-7 per cent thereabouts, from the
earlier 3 per cent odd levels. The sharp rise in interest rates on foreign
currency non-resident (bank) deposits denominated in US dollars follows RBI’s
measures to bolster dollar inflows, including by bearing the full hedging cost
for raising fresh 3-5-year FCNR (B) deposits. On a FCNR (B) deposit of up to
$1 million and above $1 million in the three years and above but less than four
years tenor, State Bank of India (SBI) is now offering interest rate of 5.25
per cent and 5.50 per cent respectively. HDFC Bank and Central Bank of
India are offering up to 6% on longer-tenor FCNR(B) deposits, while YES Bank
and AU Small Finance Bank are offering as much as 7.1% on five-year deposits.
(Business Line)
Banks want RBI to relax
liquidity buffer norm relating to institutional deposits: In the backdrop of the gradual
structural shift in deposits, banks want the Reserve Bank of India to relax the
so-called “run-off factor” on institutional deposits under the Liquidity
Coverage Ratio (LCR) framework so that they have more resources to lend. The
structural shift in bank deposits refers to a phenomenon whereby savers, in
pursuit of higher returns are gravitating towards investments such as mutual
funds, which in turn place deposits with banks.
(Business Line)
ECLGS 5.0 guarantees cross
1 lakh mark with Rs.48,484 crore coverage in a month: The number of guarantees
issued under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has crossed
1 lakh, with the total amount reaching Rs 48,484 crore in a month, the finance
ministry said on Wednesday. The ECLGS 5.0 was approved by the Union Cabinet on
May 5, 2026. The scheme aims to infuse additional credit of Rs 2.55 lakh crore
to existing borrowers to tide over the liquidity challenges arising due to the
West Asia crisis. "As on June 9, 2026, the total number of guarantees
issued under the scheme has officially crossed the 1 lakh mark, reaching a
total of 1,06,549 with a total amount of guarantees at Rs 48,484.26 crore,
demonstrating the extensive scale of credit protection being extended to
lenders," the ministry said in a statement.
(Business Line)
RBI allows banks to lend to
REITs and InvITs; caps exposure at 49% of asset value: The Reserve Bank has issued
final amendment directions permitting commercial banks to lend to Real Estate
Investment Trusts and InvITs, while retaining key prudential safeguards on
exposure limits, asset quality, and repayment structures. Among
major changes, the RBI said overseas branches of Indian banks may participate
in Real Estate Investment Trusts (REITs) financing under syndication
arrangements, subject to a 20 percent cap on contribution and a 150 percent
risk weight. RBI relaxed the earlier
three-year operational requirement by linking it to the cash-flow performance
of underlying assets. It mandated that at least 80 percent of underlying assets
must generate positive cash flows for at least one year.
(Financial Express)
Reliance Industries and
Meta join hands to develop AI-enabled data centre in Gujarat: Reliance Industries Ltd (RIL) and Meta Platforms,
Inc. (Meta) have partnered to set up a data centre in Jamnagar, Gujarat with
168 MW capacity to be delivered within two years and an option to scale. This
will be the first built-to-suit data centre capacity in India for Meta,
underlining India’s emergence as a global hub for AI infrastructure.
(Business Line)
India's exports hit all-time
high of $863 bn in FY 25-26: A commerce ministry official on Tuesday said
the India's total exports have risen from $468 billion in FY 2014-15 to an
all-time high of $863 billion in FY 2025-26, increasing at a compound annual
growth rate of 5.7 per cent. Additional secretary at the Union Ministry of
Commerce, Nitin Kumar Yadav, revealed the numbers at a convention of exporters,
industry bodies, and farmer producer organisations here. "During this
period, merchandise exports grew from $310 billion to $442 billion, services
exports surged from $158 billion to $421 billion at a CAGR of 9.3 per cent, and
non-petroleum exports reached a new record of $387.9 billion, underscoring the
depth and diversity of India's export base," Yadav said.
(Business Line)
Anthropic
unveils Claude Fable 5, limits access to advanced Mythos model: Anthropic launched Claude Fable 5 on
Tuesday, its latest Mythos-class model, which the frontier artificial
intelligence (AI) company says is superior across all tasks. Access to its
Mythos 5 model, however, remains restricted to a handful of users because of
its advanced capabilities in detecting software flaws. Fable 5 is
state-of-the-art on nearly all tested benchmarks, the company said, with strong
performance in software engineering, knowledge work, scientific research, and
vision tasks. “Releasing a model this capable comes with risks. Without
safeguards, Fable 5’s capabilities in areas like cybersecurity could be misused
to cause serious damage. Queries on a narrow range of topics will instead
receive a response from our next-most-capable model, Opus 4.8,” Anthropic
posted on X.
(Business Standard)
SEBI set to ease salary
disclosure norms for MF executives: SEBI has proposed to ease
salary disclosure norms for mutual fund executives amid raising concern from
the industry. In a consultation paper issued on Wednesday, SEBI said the
industry had raised concerns that the public disclosure of individual
remuneration will expose employees to risks relating to misuse of personal
information. In addition, the mutual fund industry competes for talent with
other segments such as Portfolio Management Services (PMS) and Alternative
Investment Funds (AIF), where similar disclosure requirements are not
applicable.
(Business Line)
Government Extends Validity
of Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0),
Increases Loan Limits: The Government of India has
approved extension in validity of the Credit Guarantee Scheme for Microfinance
Institutions-2.0 (CGSMFI-2.0) upto 31.8.2026 or till guarantees for an amount
of Rs.20,000 crore are issued, whichever is earlier. The Government of India
has also approved increase in maximum loan amount capped to Large Sized
NBFC-MFIs/MFIs from Rs.300 crores to Rs.1000 crores under the overall ceiling
of 20% of Assets under Management (AUM). Central Government introduced
CGSMFI-2.0 scheme on March 20, 2026. The scheme aims to provide guarantee cover
to Banks/ FIs through NCGTC against expected losses on the financial assistance
extended by them to NBFC-MFIs and MFIs for on lending to small borrowers. Guarantee
coverage: 80% of amount in default for small, 75% for medium and 70% for large
NBFC-MFIs/ MFIs.
(PiB)
Outward FDI commitments by
Indian firms drop 49% in May: RBI data: India's total outward foreign
direct investment commitments declined 49.02 per cent month-on-month to $4.49
billion in May 2026 from $8.84 billion, mainly due to lower equity investments,
loans, and guarantees issued by Indian companies, according to RBI data. However,
total financial commitments by Indian entities under overseas investment
increased 34.6 per cent year-on-year in May 2026 from $3.34 billion, data
showed. Equity investments abroad dropped sharply to $1,247.82 million in May
from $3,537.35 million in April, marking a decline of about 64.72 per cent. Overseas
loans extended by Indian companies also declined to $632.12 million in May from
$1,299.69 million in April.
(Business Standard)
Qualified Longevity Annuity Contract (QLAC)
§ A
qualified longevity annuity contract (QLAC) is a deferred annuity funded with
an investment from a qualified retirement plan or an individual retirement
account (IRA). They are available for purchase through many insurance companies.
§ A
QLAC provides guaranteed monthly payments that begin after the specified
annuity starting date. As long as the QLAC complies with Internal Revenue
Service (IRS) requirements, it is exempt from required minimum distribution
(RMD) rules until the owner reaches age 85.
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 : 95.1855
INR
/ 1 GBP : 127.4535
INR
/ 1 EUR : 109.9634
INR
/100 JPY: 59.3500
EQUITY INDEX
Sensex:
73983.18 (+64.42)
NIFTY:
23214.95 (-27.15)
Bnk
NIFTY: 55100.30 (-94.20)
Historical
events: June 11 is a
significant date marked by the birthday of Indian revolutionary Ram Prasad
Bismil, the establishment of the Allahabad High Court in 1866, and
historically—on a global scale—the 1770 discovery of the Great Barrier Reef by
explorer James Cook.
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