Issue: 1345
· DBS Chief sees overseas
confidence in India despite capital outflow concerns.
· West Asia war, debt woes top
agenda of IMF-World Bank meetings in Bangkok.
· FPIs pull out Rs.44,166 cr
from equities in Oct, 2026 outflows cross Rs.3 trn.
· Rural consumer confidence
dips as inflation concerns rise: RBI survey.
· Energy shocks and rising debt
dominate the outlook for IMF–World Bank meetings
Japan becomes India’s top
FDI source as investment hits $5.71 billion in Q1 FY27: Japan emerged as the largest source of foreign
direct investment (FDI) into India in the April-June quarter of FY27, with
inflows reaching $5.71 billion, according to government data, as per a PTI
report. The investment during the first quarter of 2026-27
exceeded the $3.74 billion India received from Japan during the entire 2025-26
financial year. The inflow from Japan stood at $2.48 billion in 2025-26. Japanese
investments accounted for nearly 29% of India's total equity inflows of $19.81
billion during the quarter, the data showed. Japan had set a target of
investing 10 trillion yen in India over a decade, an amount estimated at around
Rs 7 lakh crore.
(Moneycontrol)
No special treatment for
American firms as US-India ties sour: India is not inclined to
extend any special treatment or relax regulatory requirements for Elon Musk’s
Starlink amid deepening strains in bilateral ties, maintaining that American
businesses must follow the same rules and security procedures as other companies
operating in the country. With Washington tightening restrictions on Indian IT
companies and professionals, New Delhi sees little reason to show special
sensitivity towards US business interests, sources said.
(Business Line)
India, Bangladesh joint
working group on trade resumes talks after 3-year hiatus: India and Bangladesh discussed
long-standing trade concerns, including port restrictions, non-tariff barriers,
and trade through land routes, as the two neighbours resumed their joint
working group on trade discussions in New Delhi after a three-year gap amid
political uncertainty. Bangladesh is also worried about the continuation of
duty-free access to the Indian market under the SAFTA (South Asia Free Trade
Agreement) as it graduates out of its LDC status, sources said. “This meeting
was not aimed at taking decisions, as it was at the joint secretary level. But
it was important as it restarted discussions to take pending matters forward
for decision-making at the next stages,” a source tracking the matter told
businessline.
(Business Line)
Focus on actual payouts,
not just claim settlement ratios: IRDAI Chairman: The Insurance Regulatory and
Development Authority of India (IRDAI) is confident of curbing mis-selling with
the help of proposed reforms. In an interview to businessline, IRDAI Chairman
Ajay Seth has said that a better-structured mechanism has been proposed,
comprising linking commission payout to persistency and prohibiting the
bundling of loan with insurance. He also informed that actual payment and not
just claim settlement headline numbers in health insurance is being monitored.
(Business Line)
Banks may explore easier
forex hedging amid RBI curbs: The Reserve Bank of India has
implemented fresh regulations that drastically reduce the maximum limit for
dollar forward transactions by corporates from $100 million to just $5 million,
imposing more stringent documentation requirements. To ease compliance,
companies may consider classifying contracted exposures as anticipated
exposures. This regulatory shift aims to enhance management of exchange rate
risks in light of volatile market conditions, sparking ongoing industry
dialogues about its practical impacts.
(Economic Times)
IIT-Bombay study bats to
cut MDR to 0.08 pc from 0.4 pc, exclude banks from taking bulk share: A report by IIT-Bombay
professors recommends reducing the Merchant Discount Rate for UPI transactions
to improve the ecosystem. The current rate of 0.40 percent should decrease to
0.08 percent for third-party application providers. Additionally, the study
suggests that banks should not depend on transaction fees but use funds from
CASA deposits. It emphasizes the development of necessary services to enhance
trust in digital payments.
(Economic Times)
HSBC leads international
banks in fundraising for Indian companies: London-headquartered HSBC in
January-September 2026 was the leading international bank in facilitating
fundraising by Indian companies through bonds issued in major international
currencies, syndicated loans, and initial public offerings (IPOs), according to
Hitendra Dave, chief executive officer (CEO)?of the lender’s India unit. The
bank moved up from third place in G3 bonds (bonds issued in euros, dollars, or
the yen) last year, retained its lead in syndicated loans for a third
consecutive year, and ranked second among international investment banks for
primary equity fundraising through IPOs and qualified institutional placements
(QIPs) since January 2025. In IPOs alone (year-to-date), it is the leading
international bank to facilitate primary fundraise.
(Business Standard)
We will not allow any
monopoly in Satcom sector: Scindia: The government on Friday said that it will not
allow a monopoly in the Satellite communication (Satcom) sector, even though
there were allegations from Starlink-owned Elon Musk in the last two days. “Satcom
has become extremely tropical in the last 24 hours, so let me set the record
straight...India does not allow a monopoly in any sector and therefore, even as
Satcom is concerned, there is not a single licensee that has been chosen.
Licences have been given to everyone who wants to provide these services, and
today, there are three licences that are out there,” Jyotiraditya Scindia, Minister
of Telecommunications told.
(Business Line)
Global refining shock lifts
India’s diesel exports to a 12-month high in September: Indian refiners, mostly private sector,
exported roughly 2.50 million tonnes (mt) of diesel, the highest in a year, in
September as refinery attacks and geopolitical tensions impacted roughly 10 per
cent of the global refining capacity with transportation bottlenecks further
exacerbating the situation. Analysts, traders and refiners indicated that West
Asia refinery outages and drone attacks on Russian refineries impacted roughly
8 million barrels per day (mb/d) of global refining capacity. What has further
tightened the market for diesel is curtailed Chinese refining and shipping
constraints.
(Business Line)
RBI opens special dollar
window for oil PSUs: The RBI on Saturday (October 10) announced a
special window to meet the entire daily dollar requirements of three public
sector oil marketing companies from October 12. The announcement comes as the
rupee remained under pressure near record lows. The facility will cover Indian
Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum
Corporation, the central bank said. It will remain operational until further
notice. “Under the facility, the Reserve Bank will undertake sale of USD to the
public sector OMCs through designated bank/s,” the RBI said. Oil companies need
dollars to pay for crude imports. By providing a separate supply channel, the
arrangement could reduce their demand for dollars in the spot market. The RBI
said its decision followed an assessment of current market conditions.
(Financial Express)
85% of workforce retained
across 300 firms resolved under IBC: Companies undergoing insolvency proceedings
retained about 85% of their workforce, an analysis by the Insolvency and
Bankruptcy Board of India (IBBI) found. The findings show that the insolvency
and bankruptcy code (IBC) has saved jobs by allowing financially-troubled firms
to continue operating through the resolution process. The analysis covered
around 300 companies, including MSMEs, whose combined workforce fell from about
96,200 employees and workmen when the proceedings started to around 82,100 when
they ended. The analysis also revealed that 12-15% of the companies increased
their workforce during the process, with some businesses creating jobs while
undergoing resolution. “That such a high proportion of jobs remained at the
close of CIRP (corporate insolvency resolution process) demonstrates the
stabilising role of successful resolution plans,” the analysis said.
(Financial Express)
Fifth Kautilya Economic
Conclave (KEC 2026) with the theme ‘Resilience in an Age of Flux’ concludes
successfully in New Delhi: The Institute of Economic Growth (IEG), in
partnership with the Ministry of Finance, Government of India, successfully
concluded the Fifth Kautilya Economic Conclave (KEC 2026), held from 3–5
October 2026 in New Delhi under the theme “Resilience in an Age of Flux.” The
three-day Conclave brought together more than 200 policymakers, economists,
academics, financial experts and international thought leaders, including over
80 international participants from around 30 countries, for high-level
discussions on contemporary economic and policy challenges.
(PiB)
INTERNAL TOTAL LOSS-ABSORBING CAPACITY (INTERNAL TLAC)
§ Internal
TLAC is the loss-absorbing capacity positioned within a banking group,
particularly at material subsidiaries or subgroups, to support an orderly
resolution across jurisdictions. It enables losses arising in a subsidiary to
be transferred to the group’s resolution entity and allows the subsidiary to be
recapitalised.
§ This
mechanism strengthens confidence between home-country and host-country
authorities and reduces incentives for countries to ring-fence local assets
during a crisis, supporting coordinated management of a multinational bank’s
failure.
RBI KEY RATES
Repo
Rate: 5.50%
SDF:
5.25%
MSF
/Bank Rate: 5.75%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 96.6149
INR
/ 1 GBP : 127.8859
INR
/ 1 EUR : 108.4728
INR
/100 JPY: 61.0800
EQUITY INDEX
Sensex:
72472.33 (+879.09)
NIFTY:
22520.45 (+288.65)
Bnk NIFTY: 55256.65 (+741.60)
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