Issue: 1249
· Govt asks global internet
body, ICANN, to set up root servers in India.
· SBI raises its FCNR (B) game
with 9x leverage play under RBI scheme.
· RBI revamps Lead Bank Scheme,
strengthens district credit planning.
·
Banks' supervisory data quality score slips marginally to 90.7
in March 2026 from 90.9 in December 2025.
·
Silver prices fall sharply as USD surges on hawkish Fed; may
test $60.
·
Gold demand stays muted in India despite price drop to
two-month low.
·
SBI Mutual Fund IPO gets SEBI approval.
Forex reserves fall $10 bn
as decline in gold prices drags overall holdings: Foreign-exchange reserves in
India declined by $9.98 billion to $671.63 billion in the week ended June 12,
marking the steepest weekly drop since the end of March, according to the latest
data released by RBI. The reserves fell $56 billion since the beginning of the
conflict in West Asia in late February. The decline during the reporting week
was primarily driven by a sharp fall in value of gold reserves. The value of
gold holdings fell by $10.75 billion during the reported week.
(Business Standard)
Sensex tanks 608 pts, Nifty ends at 24,013 on IT sell-off: The Nifty50 and the Sensex slumped in Friday’s session as IT shares dropped sharply following dismal sales and top-line outlook from their global peer Accenture. The Nifty50 ended 155 points or 0.64 per cent lower at 24,013.10, and the Sensex fell 0.78 per cent or 608 points to 76,802.90. In the Nifty50 index, Infosys, Tata Consultancy Services, and Tech Mahindra were the top losers. In the broader markets, the Nifty MidCap and the Nifty SmallCap indices settled 0.22 per cent and 0.42 per cent higher, respectively. Sector-wise, the Nifty50 IT slumped the most. The Nifty Realty, the Nifty Auto, and the Nifty Oil & Gas also underperformed. The Nifty Pharma rose the most.
(Business Standard)
Banks' demand muted at
RBI's VRR auction despite lower surplus liquidity: The demand from banks remained
muted at the Reserve Bank of India's (RBI) three-day variable rate repo (VRR)
auction held on Friday, indicating limited demand for short-term funds from
banks. The central bank received bids worth Rs.16,750 crore from banks at the
VRR auction against the notified amount of Rs.1 trillion. The RBI accepted the
entire amount at the auction at a cut-off and weighted average rate of 5.26 per
cent. Liquidity conditions in the banking system remained in surplus, though at
a lower level. According to the latest data available with the RBI, systemic
liquidity surplus stood at around Rs.19,163.11 crore as on June 18.
(Business Standard)
Banks raise FCNR(B) deposit
rates again: Some
banks have again raised interest rates on foreign currency non-resident (bank)
[FCNR(B)] deposits to as high as 7.13%, after the Reserve Bank of India (RBI)
temporarily removed the interest-rate ceiling on select such deposits giving
lenders greater flexibility to attract overseas funds. Punjab National Bank has
increased the interest rate on FCNR(B) deposits of $1 million and above to
6.60% for tenures of three to five yearsUjjivan Small Finance Bank is preparing
to revise its rates upwards from the current 7.13%.
(Financial Express)
RBI releases final KCC
guidelines: The Reserve Bank of India
(RBI) on Friday released the final guidelines on the Kisan Credit Card (KCC)
scheme. The central bank accepted several stakeholder suggestions on its
proposed guidelines, including deferring the implementation of the revised
framework to January 1, 2027. “Considering operational and implementation
challenges at the field level, KCC loans sanctioned prior to January 01, 2027
shall continue to be governed by the existing KCC guidelines till maturity /
next renewal,” RBI said. Among the major changes
accepted by the central bank are the incorporation of district level technical
committee (DLTC) scale of finance references, an indicative list of technology
interventions eligible under KCC, applicability of Flexi KCC to allied
activities, and rounding off of KCC credit limits to the nearest Rs 1,000. The
tenure of the facility also increased to 6 years.
(Financial Express)
RBI seeks daily reporting
of FCNR (B) deposits, ECB data: RBI has asked banks to report
data on FCNR (B) deposits, external commercial borrowings and overseas foreign
currency borrowings daily, it said in a notification on Friday. On June 8, the
RBI launched the swap facility for FCNR (B) deposits and ECBs. It would absorb
the full hedging cost on incremental FCNR(B) deposits and partial hedging cost
for ECBs, as part of a broader package of measures aimed at attracting foreign
currency inflows and supporting the rupee. The data from June 8 till issuance
of these directions, shall be submitted along with the first reporting due on
June 22, the RBI said. In a separate
notification, the RBI also exempted non-resident (external) rupee term deposits
of three years or more tenure from the cash reserve ratio and statutory
liquidity ratio requirements, the central bank said in a notification on
Friday. The exemption will be valid till September 30.
(Financial Express)
Banks fear losing NRI
customers as competition heats up: Intense competition for FCNR
(B) deposits has left some lenders apprehensive they could lose overseas
customers as their offerings may not be as attractive as those of others. With
the Reserve Bank of India (RBI) having lifted the cap on these deposits, a
clutch of banks has raised their interest rates making their offers more
attractive. In fact, a couple of banks, that had announced new interest rates
on FCNR (B) deposits, are understood to be reconsidering their products after
the removal of the cap.“We were early to announce rates but will revisit them
in the light of the new rules,” said a senior banker.
(Financial Express)
India to assume
Vice-Presidency of the Financial Action Task Force for the first time: In a landmark recognition of
India’s growing leadership in the global fight against money laundering and
terrorist financing, Shri Vivek Aggarwal, a 1994-batch officer of the Indian
Administrative Service (Madhya Pradesh cadre) and presently Secretary to the
Government of India, Ministry of Culture, has been elected and appointed
Vice-President of the Financial Action Task Force (FATF). This is the first
time that India will hold the Vice-Presidency of the FATF.
(PiB)
SBI raises its FCNR (B)
game with 9x leverage play under RBI scheme: State Bank of India, the
country’s largest lender, has moved swiftly to capitalise on the Reserve Bank
of India’s (RBI’s) special concessional scheme for foreign currency
non-resident (bank) deposits, offering customers nine times leverage on their
FCNR(B) investments. It is the first lender to hit the ground running after the
central bank announced the scheme earlier this month. The leverage facility
will apply to dollar-denominated deposits of $1 million and above. Under this,
for every $1 million deposited in an FCNR(B) account, SBI can extend loans of
up to $9 million to customers against the deposit. For a five-year maturity,
the loan rate has been set at 5.4 per cent, while the deposit rate is 6 per
cent, translating into a return on investment of 14.08 per cent after factoring
in leverage.
(Business Standard)
Jio Platforms files for
India’s largest ever IPO of $4 billion: Jio Platforms, the digital arm of Reliance
Industries, has filed a draft red herring prospectus (DRHP) with SEBI for an
initial public offering that the company says would be the largest in Indian
history, with proceeds earmarked primarily for debt repayment. The offering comprises a
fresh issue of 270 million equity shares, representing approximately 2.9 per cent
of post-issue share capital. Key terms include: - Net proceeds will repay or
prepay outstanding borrowings of Rs 27,500 crore, with the remainder for
general corporate purposes.
(Business Today)
Reliance eyes Rs.4 lakh
crore EBITDA by 2031; Bets big on AI and clean energy: Reliance Industries on Friday placed
artificial intelligence and clean energy at the centre of its future growth
strategy, unveiling plans for one of the world’s largest AI computing
platforms, a sovereign satellite broadband network and a multi-billion-dollar
green ammonia export business, while simultaneously setting the stage for the
long-awaited Jio Platforms IPO. At the company’s 49th Annual General Meeting,
Chairman Mukesh Ambani stated that the conglomerate’s transformation into a
consumer, digital and new energy powerhouse has already delivered significant
financial gains and will continue to drive expansion over the coming decade.
Building on this momentum, Reliance has set a target to double its EBITDA once
again over the next five years, aiming to surpass Rs.4 lakh crore by 2031.
(Business Line)
SBI, Axis Bank
among lenders set for $2 billion ECB fundraising via RBI swap: Major Indian banks, including SBI, Axis
Bank, and Bank of Baroda, alongside Power Finance Corporation, are set to raise
over $2 billion from overseas markets next week. This move capitalizes on the
Reserve Bank of India's 1.5% fixed-rate swap incentive for external commercial
borrowings, aimed at bolstering the rupee. HDFC Bank's recent successful dollar
bond sale has spurred this wave of fundraising.
(Economic Times)
SEBI revises intraday
borrowing rules, gives mutual funds more flexibility: Market regulator SEBI has
approved changes to the framework governing intraday borrowings by mutual
funds, giving AMCs greater flexibility to use short-term bank borrowings for a
wider range of operational requirements beyond investor redemptions. The move
comes after the mutual fund industry raised concerns over the framework
notified earlier this year, arguing that the existing restrictions could hamper
efficient fund management. Currently, mutual funds are
permitted to access intraday borrowings mainly to meet redemption payouts,
interest payments and Income Distribution-cum-Capital Withdrawal (IDCW)
obligations. Such borrowings are also capped by guaranteed receivables expected
on the same day.
(Business Today)
SEBI board brings back open
market buybacks, formalises new code of conduct: The SEBI board cleared the
reintroduction of open-market buybacks through stock exchanges, a faster
rollout mechanism for alternative investment fund (AIF) schemes, aligning
securitisation norms for RBI-regulated entities, and intraday borrowing by
mutual funds. The board has also approved a new code of conduct 2026 for
members of SEBI and will also be amended in the Employees’ Service Regulations
2001.
(Business Line)
Credit registry
for microfinance institutions: Recordent, a credit risk and collections
platform, has rolled out a credit registry for Section 8 Microfinance
Institutions (MFIs) to improve credit visibility and strengthen risk
assessment. The MFI Credit Registry will enable participating institutions to
share and access borrower loan data through a common platform, helping lenders
improve underwriting, monitor borrower indebtedness and make more informed
credit decisions. The initiative comes amid efforts to strengthen credit
information sharing and risk assessment across the microfinance ecosystem. According
to the Microfinance Insights Report (February 2026) by Equifax, the sector’s
portfolio outstanding stood at Rs 3.2 lakh crore across 10.5 crore active
loans. The registry, designed for Not-for-Profit MFIs, will function as a
shared credit information infrastructure, allowing participating institutions
to upload and access borrower data while combining it with bureau insights
through a unified credit report.
(Financial Express)
GINI COEFFICIENT
·
The
Gini coefficient is a statistical measure of income or wealth inequality within
a population, ranging from 0 to 1. A score of 0 represents perfect equality,
where everyone has the same income, while a score of 1 indicates perfect
inequality, where all income belongs to a single person.
·
Named
after Italian sociologist Corrado Gini, it is widely used to compare the
distribution of resources across different countries and over time.
·
The
coefficient is calculated based on the cumulative share of the population and
the cumulative share of total income they receive.
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 : 94.4735
INR
/ 1 GBP : 124.6036
INR
/ 1 EUR : 108.0273
INR
/100 JPY: 58.5500
EQUITY INDEX
Sensex:
76802.90 (-607.08)
NIFTY:
24013.10 (-154.90)
Bnk NIFTY: 57685.75 (-278.05)
World Refugee Day: June 20 is
internationally recognized as World Refugee Day by the United Nations,
dedicated to honoring the strength and resilience of refugees globally.
Historical
events: On June 20,
significant milestones occurred globally and in India, ranging from the tragic
Black Hole of Calcutta in 1756 to the accession of Queen Victoria in 1837 and
the opening of Mumbai's Victoria Terminus in 1887.
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