Issue: 1322
·
US 10-year Treasury yield hits 5% for first time since 2023
as oil batters bonds.
·
EU to allow 2.5 lakh Indian cars at concessional duty under
FTA; quota to reach 4 lakh in 10 years.
·
ank of Baroda has integrated a voice-command feature into its
mobile app, enabling users to initiate and execute payment transactions
verbally.
·
HDFC CEO race: One insider, one outsider in contention for
the top job.
·
SBI may soon issue sanction letter to Vi for its share of Rs.35K
cr funding.
India's retail inflation
quickens to 4.8% in August from 4.45% in July as food prices exert pressure: India’s retail inflation has accelerated to 4.82%
in August 2026 from 4.45% in July, as food prices and other key components of
the consumer basket exerted pressure on the economy, according to data released
by the government on Monday. The latest reading depicts that the price pressures
are beginning to build after inflation remained relatively subdued through much
of the first half of the year. Rural CPI inflation came in at 5.23% in August,
compared with 4.31% in urban areas. The July reading comes after retail inflation
breached the Reserve Bank of India’s medium-term target of 4% in June, when it
rose to 4.38% from 3.93% in May. The August inflation also marked the highest
reading since India adopted its revised CPI series with a new base year and
updated consumption basket earlier this year.
(Economic Times)
Wholesale inflation rises
to 9.92% in August; output PPI climbs as fuel, food prices remain elevated: India’s wholesale inflation
rose to 9.92 percent in August 2026 from 9.78 percent in July, as higher prices
of fuel, manufactured food products and chemicals outweighed some moderation in
primary articles, according to data released by the commerce ministry on
September 14. Wholesale inflation has
remained close to double digits for four consecutive months. It increased from
3.98 percent in March to 8.36 percent in April and 9.88 percent in May, before
touching a revised 9.97 percent in June and easing slightly to 9.78 percent in
July. The June inflation estimate was revised upwards from the provisional
reading of 9.87 percent to 9.97 percent.
(Moneycontrol)
FPIs withdraw Rs.13,138
crore from equities in Sep so far amid global uncertainty: Foreign investors pulled out Rs.13,138
crore from Indian equities in the first half of September, as heightened global
uncertainty pushed crude oil prices higher, while rising US bond yields and a
firm dollar weighed on risk appetite. The latest outflow comes after Foreign Portfolio
Investors (FPIs) turned net buyers in July and August, infusing Rs.20,200 crore
and Rs.29,630 crore, respectively, according to data from the Central
Depository Services (India) Ltd (CDSL). Prior to that, FPIs remained net
sellers for four consecutive months from March to June..
(Business Line)
UPI payments up to Rs 2,000
to remain free of bank charges: Govt: The Central government on
Monday announced that banks cannot impose any charges on Unified Payments
Interface (UPI) transactions of up to Rs 2,000 or payments made through
RuPay-powered debit cards. A government gazette
notification specified RuPay-powered debit cards and UPI transactions of up to
Rs 2,000 as electronic modes of payment. It also said that no bank or system provider
can impose any direct or indirect charge on a person making or receiving
payments through these modes. The Finance Ministry notified
the changes under the Payment and Settlement Systems Act to clarify the rules
around charges on UPI transactions. The notification specifically categorised
RuPay-powered debit cards and UPI transactions of up to Rs 2,000 as
"electronic modes of payment".
(Moneycontrol)
RBI proposes framework to
freeze only disputed amounts instead of entire accounts in cyber fraud cases: he RBI has proposed a new
framework under which banks will temporarily freeze only the disputed
transaction amount, instead of the entire account, when unusual transfers of Rs
1,000 or more are flagged as potentially linked to mule accounts or cyber
fraud. Banks will be required to use AI-based transaction monitoring systems to
identify transfers that are sudden, disproportionate to a customer's declared
profile or linked to known cyber-fraud networks. The draft directions are
scheduled to take effect from April 1, 2027, although banks can adopt them
earlier. According to the RBI, the framework follows the Supreme Court's August
4, 2026, order directing it to prescribe and circulate an SOP for temporary
debit holds on amounts or accounts linked to money-mule activity and
cyber-enabled fraud.
(Economic Times)
Jio Financial says BoFA's Rs.18,268
cr to come by Dec; Jio Credit's product plans, strategy to be redrawn: Jio Credit will get the
capital of Rs.18,268 crore from Bank of America (BoFA) by December this year
once all the regulatory approvals for the infusion are in place, a top official
at parent Jio Financial Services (JFS) has said. Once the capital comes in, the
entity will re-evaluate its business strategies and also product plans to
accelerate growth in assets under management (AUM), the official said, adding
that BoFA is "aligned" with the need for the book to grow fast. Jio
Credit's AUM can grow by around five times from the present Rs.30,000 crore
courtesy the capital infusion, JFS' managing director and chief executive
Hitesh Sethia told PTI.
(Business Line)
First-time borrowers deepen
credit reach: Institutional
credit penetration among first-time borrowers is deepening, driven by easy
access to consumer durable loans, expansion of gold loans and microfinance,
showed credit information bureau data. Consumer durable loans are
leading new-to-credit customers into institutional borrowing. Gold loans and
microfinance also significantly contribute to this growing credit access.
Institutional credit penetration is expanding beyond major cities into smaller
locations. India's retail credit portfolio has seen substantial year-on-year
expansion. This trend indicates increasing financial inclusion for many Indian
citizens.
(Economic Times)
Banks likely to see 15-20
basis points rise in FCNR(B) deposit costs: Costs on FCNR(B) deposits are
likely to rise by 15-20 basis points for Indian banks, over and above the
interest cost committed to depositors, as banks have to separately hedge the
dollar liability arising from interest payments on these deposits, bankers
said. The cost of managing this exposure depends on currency forward premiums
and interest rate differentials between the two currencies. RBI
is absorbing the hedging cost on the principal amount but not on the interest
payable.
(Business Standard)
'People matter more than
AI': Microsoft joins tech firms urging caution on advanced AI: Microsoft Corp.’s artificial intelligence
researchers have released a new set of guiding principles for developing
advanced AI models, summed up in five words: “People matter more than AI.” The company on Monday
released a 15,000-word manifesto that it views as a constitution for guiding
the development of its cutting-edge AI models. The document has been in the
works for months, but its release comes as leading AI labs pledge to slow the
development of their most advanced models following a series of security
incidents and growing concerns about the existential risks posed by the
technology.
(Moneycontrol)
BRICS Summit 2026: PM Modi
pitches for start-up fund, incubator network: Prime Minister Narendra Modi on Sunday
proposed that a BRICS Startup Innovation Fund be created to foster greater
cooperation among start-ups, incubators and entrepreneurs in the eleven countries
that are part of the grouping. Addressing the BRICS Summit here, Modi said an
incubator network under the gruping would help create new opportunities for
innovation and collaboration and to develop scalable solutions. The proposals come as
BRICS seeks to deepen economic and technological cooperation and ensure that
innovation is not limited to government-led initiatives.
(Financial Express)
Supreme Court rejects
Reliance Communications’ creditors plea to consider spectrum for insolvency: The Supreme Court has dismissed an SBI-led
review petition calling for the reconsideration of Reliance Communications’
spectrum as part of the insolvency pool under the IBC code. In an order dated July 28, Justices PS Narasimha
and Atul Chandurkar rejected the plea filed by the Committee of Creditors (CoC)
challenging an earlier apex court verdict that excluded spectrum as an “asset”
for insolvency and liquidation. The petitioners argued that the asset under
consideration was not the spectrum itself but the legally enforceable right to
use spectrum.
(Business Line)
Finance Minister meets AIIB
chief and discusses opportunities to further deepen ties: Finance Minister Nirmala Sitharaman on
Saturday met Asian Infrastructure Investment Bank (AIIB) President Zou Jiay and
discussed opportunities to further deepen the India- AIIB partnership.
"They discussed opportunities to further deepen the India-AIIB
partnership, support India's infrastructure and transport connectivity
priorities, enhance local-currency financing, increase private sector
participation and global presence of AIIB," the finance ministry said in a
post on X. The meeting was held on the sidelines of the two-day BRICS Summit
here. The Summit would conclude on Sunday.
(Economic Times)
DFS Wins First Prize under
‘Rajbhasha Kirti’ for 2025-26 at 6th All India Official Language Conference and
Hindi Diwas:
The
Department of Financial Services was awarded the First Prize under 'Rajbhasha
Kirti' (in the category of ministries/departments with fewer than 300
personnel) for its outstanding implementation and innovative achievements in
the field of Official Language during the year 2025-26. The award was presented
during the 6th All India Official Language Conference and Hindi Diwas organised
by the Department of Official Language, Ministry of Home Affairs.
(Financial Express)
Daughter can inherit
father's property despite mother's remarriage: HC: A widow’s remarriage may have affected her own
inheritance rights under the old Hindu Succession Act, but it did not wipe out
her daughter’s independent right to inherit from her deceased father, the
Madras High Court has ruled. The judgment is significant for families dealing
with ancestral or joint family property. It is because it makes a clear
distinction between the rights of a widow and those of the deceased man’s other
Class I legal heirs.
(Business Standard)
DOUBLE DEFLATION
·
Double deflation is a method
used to estimate the real Gross Value Added (GVA) of an industry by separately
adjusting its output and intermediate inputs for price changes.
·
Under this method: Nominal
output is deflated using an appropriate output price index. Nominal
intermediate consumption is deflated using a separate input price index. The
difference represents the industry’s real value addition.
·
Importance: Provides a more
accurate measurement of real economic growth. Reflects differences between
input-cost and output-price inflation. Improves sector-wise GVA estimates,
particularly in manufacturing. Helps policymakers assess productivity and
structural changes.
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 : 95.7245
INR
/ 1 GBP : 129.4498
INR
/ 1 EUR : 111.1531
INR
/100 JPY: 62.1400
EQUITY INDEX
Sensex:
74781.76 (-120.83)
NIFTY:
23398.10 (-79.70)
Bnk NIFTY: 56606.55 (+134.60)
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