Issue: 1295
·
FCRA bill sent to 31-member joint parliamentary committee for
detailed scrutiny.
·
Tata Sons’ listing question remains under regulatory
spotlight.
·
NaBFID plans up to $4 billion in overseas borrowing under RBI
hedging window.
·
Tata Motors Q1: Net profit surges 83% to Rs.2,560 crore.
·
N Chandrasekaran to exit Tata Sons after decade.
·
PNB case: Accused can't dictate probe method, says court
while rejecting plea for video conference.
·
NCLT Launches e-Inspection and e-Certified Copy Services.
Retail inflation rises
4.45% in July, stays above RBI midpoint target for second month: India’s retail inflation rose for the fourth
consecutive month in July, with consumer prices increasing 4.45 percent from a
year ago compared with 4.38 percent in June, as food prices remained elevated. The July print also
marked the second consecutive month that headline inflation remained above the
Reserve Bank of India’s 4 percent target. Inflation has accelerated by nearly
one percentage point since April, when it stood at 3.48 percent. Food prices
remained the primary driver of the increase. Inflation based on the Consumer
Food Price Index rose to 5.52 percent in July from 5.32 percent in June. Rural
food inflation increased to 5.79 percent, compared with 5.05 percent in urban
areas.
(Moneycontrol)
Exim Bank projects India's
merchandise exports to grow 17.6% in Q2FY27: State-owned Export-Import Bank
of India (Exim Bank) on Wednesday estimated that India’s total merchandise
exports would grow 17.6 per cent year-on-year to $131.2 billion in the
July-September period. “Despite global uncertainties, the growth in exports
could be as a result of increasing geographical diversification along with
favourable prospects arising from recent trade agreements with major trading
partners, supported by buoyant demand in partner countries,” said the bank.
(Business Standard)
Exports up about 15% in
Apr-Jul despite global uncertainties: Piyush Goyal: The country's exports
increased by about 15 per cent during April-July this fiscal year despite
global uncertainties, Commerce and Industry Minister Piyush Goyal said on
Wednesday. He also expressed confidence that the target of $1 trillion worth of
goods and services exports for 2026-27 will be achieved. It was $863 billion in
2025-26. "During the first four months of this fiscal, about 15 per cent
growth is there in exports," he said. The final exports and import numbers
for July will be released on August 13.
(Business Standard)
Jio Financial, Bank of
America form JV; BofA to invest up to Rs 18,268 crore for 49.9% in Jio Credit: Jio Financial Services Ltd
(JFSL) has agreed to sell up to a 49.9% stake in its unit Jio Credit Ltd to
Bank of America for as much as Rs 18,268 crore, bringing the US lender in as a
joint venture partner. The investment will be made
via a preferential allotment of equity shares and warrants. Under the deal,
BofA will initially get a 26.5 percent equity interest in Jio Credit, which can
go up to 49.9 percent upon exercise of the warrants, JFSL said in a statement
on August 12.
(Moneycontrol)
RBI proposes new loan
pricing rules: Banks, NBFCs may face tighter interest rate norms: Under the proposed framework,
banks and other regulated lenders will have to maintain a comprehensive, board-approved
policy covering the pricing of loans and advances. The policy will have to
specify the methodology for determining interest rates, internal benchmarks,
components of spreads, loan categories and the delegation of powers for loan
pricing. The policy will also have to be reviewed at least once a year. The RBI
said it had observed divergent practices among banks in determining the
marginal cost of funds-based lending rate (MCLR), an internal benchmark used
for pricing certain loans. It also noted that existing regulatory instructions
on fixed-rate loans were limited.
(Business Today)
Bombay HC asks Vijay
Mallya, SBI to ‘move on’ as 2020 asset seizure plea loses relevance: The Bombay High Court on
Wednesday (12 August) indicated that a long-running commercial dispute
involving fugitive businessman Vijay Mallya and a consortium of banks led by
the State Bank of India (SBI) should now be brought to a close, after Mallya’s
lawyer said a petition filed six years ago over the seizure of his assets had
effectively become redundant. A division bench of the Bombay High Court made
the observation on Wednesday while hearing Mallya’s 2020 petition challenging
an order that had permitted the SBI-led consortium to use assets confiscated by
the Enforcement Directorate (ED) to recover outstanding dues linked to
Kingfisher Airlines.
(Mint)
SBI uses AI to underwrite
Rs 1 trillion of MSME loans in FY26: In FY26, SBI used AI-led underwriting to
process nearly Rs 1 trillion of loans of up to Rs 5 crore each for new-to-bank
and existing MSME customers, managing director Rama Mohan Rao Amara said at
FIBAC 2026 on Wednesday. The bank combines GST data, bureau scores, account
information and other unstructured data to assess borrowers. “Almost Rs 1
trillion we were able to underwrite,” Amara said, adding that the technology
has freed relationship managers from data gathering and analysis. He also
highlighted the model had the capability to reduce the delinquency, he said.
The bank is also using AI to identify vulnerable exposures before delinquencies
emerge by ingesting sector-specific, market and other publicly available
information to generate early warning signals.
(Financial Express)
NCLT Launches e-Inspection
and e-Certified Copy Services: The Securities and Exchange Board of India (Sebi)
is looking to streamline position limit and margin frameworks in commodity
derivatives to reduce avoidable costs for market participants while retaining
risk controls, chairman Tuhin Kanta Pandey said on Wednesday. The markets regulator
will also continue discussions with the GST Council on issues affecting participants
seeking to give or receive commodities through the exchange mechanism, the
chairman added. “The next stage of India’s commodity derivatives market should
be defined not by turnover alone, but by utility — how effectively these
markets help the real economy discover prices and manage risk,” Pandey said at
the inaugural MCX Global Commodity Conclave.
(Business Standard)
CAG flags Rs.401 cr GST
lapses in works contracts; revenue dept accepts: The Comptroller and Auditor General (CAG) has
detected 1,334 cases of goods and services tax (GST) non-compliance in the
works contract and construction sector involving Rs.401.42 crore. The Central
Board of Indirect Taxes and Customs (CBIC) has accepted observations in 903 of
these cases worth Rs.268.36 crore and recovered Rs.15.88 crore so far. The CAG
in its report on the Department of Revenue (for the period ended March 2024),
which was tabled in Parliament on Wednesday, has highlighted these findings.
(Business Standard)
NITI's state-led emigration
roadmap faces questions over law, execution: For decades, India has been among the world's
largest sources of migrant labour, sending millions of workers overseas every
year across construction, caregiving, healthcare, and information technology.
With ageing populations and shrinking workforces driving demand for foreign
labour in several developed economies, government think tank NITI Aayog has now
proposed that states take on a bigger role in preparing and placing workers for
overseas jobs — a shift that experts say is economically sound but legally and
administratively untested. In 2024, the government issued Emigration Clearance
(EC) to 387,067 prospective emigrants, down from 398,317 in 2023, according to
a Rajya Sabha reply by the Ministry of External Affairs in December 2025. In
2024, Saudi Arabia and the United Arab Emirates had the highest number of
workers to whom ECs were granted, followed by Kuwait and Oman, the data showed.
(Business Standard)
Finance Ministry weighs
tiered MDR and subsidies phase-out for high-value UPI payments: The Finance Ministry has told
a Parliamentary panel that two options related with merchant discount rates
(MDR) are being considered to sustain the UPI (Unified Payment Interface) and
reduce the burden on government exchequer. Meanwhile, the panel cautioned that
delay in operationalising enabling statutory provision for levying MDR on
high-value transaction might have serious repercussion.
(Business Line)
Govt likely to opt for
global model over bilateral agreements for cross-border insolvency: The government is likely to opt for a global
template to fast-track the implementation of cross-border insolvency regime
rather than negotiate separate bilateral arrangements with individual
countries, official sources told FE. The template – UNCITRAL Model Law on
Cross-Border Insolvency (MLCBI) – is already used by major economies like the
US, UK, Australia, and Singapore in framing their cross-border insolvency laws.
The model law would make it easier to coordinate with foreign courts and give
insolvency professionals a more predictable process for handling cases
involving overseas assets and creditors.
(Financial Express)
The Government of India to
launch the Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer
(DBT):
The
Government of India will launch the Central Bank Digital Currency (CBDC)-based
Direct Benefit Transfer (DBT) under the Pradhan Mantri Garib Kalyan Anna Yojana
(PMGKAY) in the Union Territories of Chandigarh and Dadra & Nagar Haveli on
14 August 2026. Building on earlier pilot implementations in
Puducherry and Gujarat, the rollout marks complete digital adoption and
saturation of all eligible beneficiaries across the targeted Union Territories.
Under the CBDC-based DBT model, eligible PMGKAY beneficiaries will receive food
subsidy directly into their CBDC wallets instead of conventional bank account
transfers. The subsidy can then be used to purchase foodgrains from empanelled
merchants through a secure, traceable and real-time digital payment mechanism.
(PiB)
DEBT DEFLATION
· Debt deflation is an economic situation where falling
prices increase the real burden of existing debt. As asset prices and incomes
decline, borrowers may find it harder to repay loans, leading to reduced
spending, investment and further economic contraction.
·
For banks, prolonged debt
deflation can result in higher defaults, deterioration in asset quality and
increased NPAs.
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 : 95.4261
INR
/ 1 GBP : 128.8780
INR
/ 1 EUR : 110.0708
INR
/100 JPY: 59.8600
EQUITY INDEX
Sensex:
77966.35 (-187.90)
NIFTY:
24435.95 (-35.75)
Bnk NIFTY: 57885.85 (+439.60)
Historical events: 13 August holds
significance in both Indian and world history. In India, on 13 August 1918, the
renowned Indian physicist Vikram Sarabhai was born in Ahmedabad; he later
became known as the father of India’s space programme and played a key role in
establishing ISRO’s foundations. On 13 August 1942, during the Quit India
Movement, protests and acts of resistance against British rule intensified
across several parts of India. In world history, 13 August 1961 marked the
beginning of the construction of the Berlin Wall, which divided East and West
Berlin and became a powerful symbol of the Cold War.
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