Issue: 1220
· RBI Governor signalled
possible policy action if inflation pressures intensify due to rising global
crude oil prices.
· Slice Small Finance Bank
launched India’s first AI-powered “phygital” banking branch in Guwahati.
· Indian fintech funding
remained stable at $513 million in Q1 2026 despite a sharp fall in deal
volumes.
· JPMorgan Chase announced a
$14 million philanthropic investment targeting consumer safety, to fund initiatives
designed to safeguard everyday users from sophisticated scams and financial
fraud.
Big change in silver import
norms: Centre tightens rules, bars moved from free to restricted category: The Government of India has
tightened the import policy for silver bars, changing their status from “Free”
to “Restricted” with immediate effect, according to a notification issued by
the DGFT. The move applies to imports
under ITC (HS) codes 71069221 and 71069229, which cover silver bars containing
99.9 percent or more silver by weight, as well as other silver bars classified
under semi-manufactured silver products. Earlier, these imports were
allowed freely, subject to Reserve Bank of India regulations.
(Business Today)
UAE to store up to 30 million
barrels in India’s Strategic Petroleum Reserve: Foreign Secretary Vikram Misri
on Friday shared key details on agreements between India and the UAE, stating
that the UAE will store up to 30 million barrels of crude oil in India’s
Strategic Petroleum Reserve following Prime Minister Narendra Modi’s visit. He
said the move is aimed at strengthening energy cooperation and enhancing
India’s energy security. On the bilateral front, the
two sides have concluded several important initiatives to further deepen the
comprehensive strategic partnership.
(Business Line)
China, US agree to reduce
levies on unspecified products to boost trade: China and the US agreed to
lower levies on some products to promote bilateral trade, according to a
statement from China’s Commerce Ministry. The ministry issued the statement on
Saturday following a two-day summit in Beijing between US President Donald
Trump and Chinese leader Xi Jinping. China said Beijing and Washington will
adopt a series of measures, including mutually cutting levies on certain
products, to expand bilateral trade in areas including agriculture, the
minister said. It didn’t provide more specifics, adding that both teams are
still currently negotiating over the details. The statement confirmed China’s
plan to purchase US planes, although it didn’t provide a number or the brand.
China also said it would actively address US concerns on agricultural imports
from the US.
(Business Standard)
RBI relief to NBFCs likely
to spur participation in equity markets: The Reserve Bank of India’s
(RBI’s) move to exempt certain smaller non-banking financial companies (NBFCs)
from registration requirements may widen their participation in the equity
markets. Market participants and brokers said several corporates and entities
that remained wary of equity markets due to the risk of becoming “accidental
NBFCs” may now participate more actively. These entities faced the possibility
of breaching income thresholds linked to financial assets, which could have
triggered mandatory registration requirements.
(Business Standard)
SBI must pay Rs 5 lakh to
woman despite 6-year delay in claim: Nagpur consumer panel: A Nagpur consumer commission
has ordered SBI to pay Rs 5 lakh to a widow despite a six-year delay in filing
the insurance claim, saying "mental shock" following a spouse's
sudden death is natural and it takes time to recover from the grief. A bank
cannot use the 90-day claim window as a shield when it fails to inform
customers of their rights, said a verdict delivered last month by the District
Consumer Disputes Redressal Commission (Additional DCF) in Maharashtra's
Nagpur. Labelling its refusal as a "deficiency in service and
unjust," the commission ordered the State Bank of India (SBI) to pay the
Rs 5 lakh insurance amount with six per cent annual interest from the date the
complaint was filed (September 5, 2019).
(Economic Times)
India shaping global
thinking on digital finance: India is leading global
digital finance discussions. Its digital public infrastructure is being studied
worldwide. The Unified Payments Interface democratizes finance. The JAM Trinity
has facilitated massive financial transfers and governance savings. Schemes
like Pradhan Mantri Mudra Yojana support marginalized groups. These initiatives
are driven by strong policy and political will. Modern finance must remain
linked to the real economy.
(Economic Times)
Nepal SC bars govt from
collecting tax on goods above NRs 100 from India: Nepal's Supreme Court (SC) on Saturday issued
an interim order restraining the country's government from collecting customs
on goods above NRS 100 brought across the border from India. A joint bench of
Justices Hari Prasad Phuyal and Tek Prasad Dhungana directed the Office of the
Prime Minister of Nepal and Council of Ministers of Nepal, the Ministry of
Finance of Nepal, and concerned authorities not to enforce the disputed
provision until further notice.
(Business Standard)
More oil shock ahead?
Temporary US waiver for Russian crude expires: The Trump administration has allowed a
sanctions waiver covering some Russian crude oil sales to expire, Bloomberg
reported on Sunday. This ends a temporary arrangement that had enabled limited
purchases of Russian oil amid rising concerns over global energy supplies. The
waiver expired as the Iran war and disruptions around the Strait of Hormuz
continued to tighten global crude markets and push fuel prices higher. The US waiver had allowed
purchases of Russian crude already loaded onto tankers. Washington first issued
the waiver in March and later extended it in April after lobbying from
countries dependent on oil imports.
(Business Today)
Mcap of nine of top 10
valued firms erodes by ?3.12 lakh crore; Reliance biggest laggard: The combined market valuation of nine of the
top 10 valued firms eroded by ?3.12 lakh crore last week, with Reliance
Industries taking the biggest hit. Last week, the 30-share BSE Sensex plunged
by 2,090.2 points, or 2.7 per cent, while the 50-share NSE Nifty declined
532.65 points, or 2.2 per cent. "Markets ended the week lower, breaking out of
their three-week consolidation phase amid lingering geopolitical tensions in
West Asia, persistent weakness in the rupee, and rising inflationary
concerns," Ajit Mishra – SVP, Research, Religare Broking Ltd, said. The
sharp rise in crude oil prices above the $105-per-barrel mark intensified
worries over imported inflation, fiscal stress, and pressure on corporate
margins, he said.
(Business Line)
Brics ministers discuss
ways to balance, boost trade: The trade ministers of Brics
on Saturday discussed ways to make the rapidly growing trade among members
nations more balanced and open to newer opportunities in the services sector.
Addressing the second meeting of Brics Contact Group on Trade and Economic
Issues (CGETI) in Gandhinagar, Commerce Secretary Rajesh Agrawal said
intra-Brics merchandise trade has grown 13-folds to $1.17 trillion in 2024 from
$84 billion in 2003, but still it accounts for only 5% of global trade. “There
is significant untapped potential for deeper trade integration, stronger
value-chain linkages and enhanced economic cooperation,” he said. India’s
merchandise exports to Brics member countries were estimated at$ 82.0 billion
in FY2025-26 and the service exports stood at $31.3 billion for CY2024. The
country, however, imports much more from Brics members, including China and
Russia.
(Financial Express)
FTAs, lower
import duties to boost India's FDI flows: ADB chief economist: Free Trade Agreements (FTAs), reduction
in import tariffs and improvement in business environment would encourage
higher net foreign capital inflows into India, which have moderated in recent
years, ADB Chief Economist Albert Park has said. During 2021-22, India
attracted net Foreign Direct Investment (FDI) of $38.6 billion, which came down
to $28 billion in FY23 and further fell to $10.2 billion in FY24. Net FDI --
inflow minus outflow -- came down significantly to single digit to $1 billion
in FY25 but improved to $3 billion during the April-December period of FY26.
The government should continue reducing import tariffs to ensure foreign
investments remain competitive, he told PTI in an interview.
(Business Standard)
India, other oil buyers to
negotiate transit corridors with Iran: Moody's: India and other oil importing
nations are likely to negotiate bilaterally to secure energy supplies,
potentially through coordinated transit corridors, but a return to pre-war
traffic volumes is unlikely in 2026, Moody's Ratings has said. In a global
report on geopolitical risks, Moody's said there is little prospect of a swift
and durable settlement between the US and Iran and with it the full reopening
of the Strait of Hormuz. Moody's said the transit flows will gradually improve,
but through bilateral channels rather than a general reopening. This would
allow some incremental improvement in energy transit flows from near-zero now,
but the process will be slow, opaque and subject to interruption.
(Business Standard)
U-SHAPED ECONOMY RECOVERY
§
A U-shaped recovery is an economic scenario where an
economy suffers a sharp recessionary decline, lingers at the bottom with
prolonged stagnation, and then gradually returns to its previous peak, usually
over 12–24 months.
§
The Trajectory: The economy drops rapidly and
lingers at the bottom (trough) for an extended period—sometimes lasting a few
years—before slowly climbing back to its prior peak.
§
Duration: Lasts longer than a V-shaped recovery,
with a prolonged "trough" (bottom) lasting several quarters.
§ Cause: Often driven by structural
issues, financial crises, or policy challenges that take time to resolve,
unlike sudden, short-lived shocks.
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 : 95.9255
INR
/ 1 GBP : 128.0912
INR
/ 1 EUR : 111.6336
INR
/100 JPY: 60.5400
EQUITY INDEX
Sensex:
75237.99 (-160.73)
NIFTY:
23643.50 (-46.10)
Bnk NIFTY: 53710.35 (-418.60)
Historical
events: May 18 is a
momentous date in history, most notably marked by India's first successful
nuclear test, and globally recognized as International Museum Day. 1974 - First
Nuclear Test: India successfully conducted its first nuclear test, codenamed
"Smiling Buddha," at the Pokhran test range in Rajasthan, becoming
the sixth nation in the world to detonate a nuclear device. 1912 - First Indian Film Release: Dadasaheb
Torne's Shree Pundalik premiered at the Coronation Cinematograph in Mumbai,
widely considered the first motion picture publicly exhibited in India.
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