Issue: 1225
· Department of Posts and
Flipkart Sign Agreement for Last Mile Parcel Delivery Services Across India.
· West Asia crisis may cost
India Rs.2.1 trillion: Bank of Baroda economists.
· Kevin Warsh takes over US Fed
with a policy problem already in view.
· SEBI allows temporary
work-from-home for eight weeks amid energy conservation push.
· RBI aggressively intervenes
in forex market, reportedly selling $2–3 billion to support the rupee.
· RBI reduces contingency risk
buffer to 6.5% while maintaining financial stability safeguards.
· Banking system liquidity
conditions remain under close watch amid forex intervention and tax outflows.
Arvind Panagariya says RBI
should let rupee slide, but economists bat for cautious approach: Arvind Panagariya, Chairman of
the Sixteenth Finance Commission on May 22 said on X that RBI should allow the
rupee to depreciate if necessary and not treat the Rs 100-per-dollar mark as a
trigger for policy intervention. However, economists say calibrated response,
such as repeating the measures taken in 2013, is needed to arrest the
depreciation of the rupee – that has been touching record lows in recent weeks. Economists
say the 2013 steps taken by RBI—including a swap window to sharply raise
deposits in dollars from NRIs, and providing a window for oil marketing
companies to borrow dollars directly from RBI -- may be considered again, but
in a "measured way" to ensure the depreciation happens in a gradual
manner.
(Moneycontrol)
China-India led AIIB
launches $10-billion facility for countries hit by West Asia crisis: The Asian Infrastructure
Investment Bank (AIIB) recently launched a $10-billion financing facility to
support its 111 member countries and clients affected by the economic fallout
of the West Asia conflict. Notably
AIIB’s latest move comes at a time when India and other energy-importing
economies are trying to diversify sourcing of key energy products like oil,
gas, LPG away from Hormuz due to the ongoing war. The Beijing-headquartered
multilateral lender said that financial support of $10-billion will be provided
via its Energy, Food Security and Economic Resilience Facility over 24 months
to countries facing pressure on the fronts of energy security, food security
and maintaining economic resilience.
(Financial Express)
RBI net-sold record $53.13
billion in FY26, shows monthly bulletin: RBI sold a net $53.13 billion
in the spot foreign exchange market in 2025-26 (FY26), the highest net dollar
sale by the central bank in a financial year, its latest data showed. During
2024-25, the central bank sold a net $34.51 billion. According to the RBI’s
monthly bulletin, it sold $9.76 billion (net) in March, the third-highest net
monthly dollar sale in FY26, against a net buy of $7.41 billion in
February. The central bank bought $19.89
billion while it sold $29.64 billion during the month. Data showed the RBI
remained a net seller of dollars for most of FY26, with the largest monthly net
sale recorded in October at $11.88 billion, followed by December at $10.02
billion.
(Economic Times)
RBI approves record
dividend of Rs 2.87 lakh crore to Centre for FY26: The Reserve Bank of India on
May 22 approved a record dividend of Rs 2.87 lakh crore to Centre for
FY26, which would provide the Centre with a fiscal cushion to address
challenges arising from the ongoing Middle East crisis.
The
Central Board approved the transfer of surplus of Rs 2,86,588.46 crore to the
Central Government for the accounting year 2025-26," said RBI in a
statement. The Balance Sheet of the Bank
expanded by 20.61% to Rs 91,97,121.08 crore as on March 31, 2026," added
RBI. The RBI lowered its
contingency risk buffer - funds kept aside to protect the central bank's
finances from volatility - to 6.5% of its balance sheet from 7.5% in the
previous year.
(Moneycontrol)
Raise MSME digital loan
limits: Centre: Encouraged
by digital-footprint-based lending by public sector banks (PSBs) crossing Rs 1
lakh crore in 2025-26, the government is nudging banks to increase ticket sizes
for such loans to accelerate credit flow to micro, small and medium enterprises
(MSMEs) in FY27. Ticket sizes under the digital-footprint-based lending model
vary across banks, ranging from as high as Rs 5 crore at the State Bank of
India (SBI) to Rs 10 crore at Punjab National Bank (PNB) and around Rs 25 lakh
at smaller PSBs.
(Financial Express)
PSBs told to draw up plan
to boost rural and informal sector lending: Government directs state-run
banks to identify successful initiatives for wider adoption. The focus will be
on lending to unorganised sectors, marginalised groups, and rural populations.
This strategy aims to prevent credit crunches for small borrowers and MSMEs.
Discussions will also cover IT updates, loan digitalisation, and risk
management. The government seeks to boost credit availability for eligible businesses. The
government has asked state-run banks to submit a list of successful
"Lighthouse Initiatives" that can be adopted across the system as
part of their FY27-29 board-level strategy, and to focus on lending to
unorganised sectors, marginalised groups and rural population.
(Economic Times)
RBI approves ICICI Bank CEO
Sandeep Bakhshi’s reappointment till 2028: Indian private lender ICICI
Bank has received approval from India's central bank to reappoint Sandeep
Bakhshi as its chief executive for ?a ?further period ?of two years, with effect from
October 4, the bank said in a statement on Friday. Bakhshi would remain ICICI's
?CEO until October ?3, 2028, the ?bank said. ?In ?January,
the bank's board ?approved Bakhshi's
reappointment, subject to approval ?from the Reserve Bank ?of India.
(Economic Times)
SBI staff's 2-day
nationwide strike deferred: The proposed nationwide strike
by SBI staff on May 25-26 has been deferred following "positive
discussions" between the bank management and representatives of employees'
unions in Mumbai on Friday, officials said. "The meeting with the
management was positive and there has been progress on several demands raised
by the federation. In view of the developments, the proposed strike has been
deferred," SBI Staff Association, Bengal Circle secretary, Sudip Dutta
told PTI.
(Economic Times)
Central Bank of India OFS
fully subscribed; Qatar Holding sells 0.4% stake: The Rs 2,250 crore share sale
by the government in Central Bank of India saw bids exceed the shares on offer.
According to stock exchange data, the offer for sale (OFS) received bids for
nearly 77 million shares from institutional investors against 72.4 million
shares on offer. Another 7.2 million shares reserved for retail investors will
be auctioned on Monday. The floor price for the OFS was Rs 31. Shares of Central
Bank fell nearly 8 per cent in secondary market trading to end at Rs 31.23.
Prior to the sale, the government held an 89.27 per cent stake in the lender.
This will now fall to 81.27 per cent.
(Business Standard)
Singapore, US, UK lead in
foreign cos entering India: Foreign companies are increasingly setting up
shop in India. Singapore, the US, the UK, South Korea, and Germany are leading
this trend. Registrations reached a nine-year peak in the last fiscal year.
This surge highlights growing international business interest in the Indian
market. New companies from South Africa, Ghana, and Uzbekistan also entered
India for the first time.
(Economic Times)
Outward remittances slipped
2% to $28.98 billion in FY26: RBI data: India’s outward remittances under the
Liberalised Remittance Scheme (LRS) slipped nearly 2 per cent year-on-year
(Y-o-Y) to $28.98 billion in 2025-26 (FY26), amid broader global uncertainty
affecting travel and muted overseas education spends.In FY25, remittances stood
at $29.56 billion, according to Reserve Bank of India (RBI) data. In FY26, the
international travel segment slipped 2.3 per cent Y-o-Y to $16.87 billion
compared to $16.44 billion in the year-ago period. Similarly, funds remitted
for maintenance of close relatives and overseas education dropped 4.92 per cent
Y-o-Y to $3.53 billion and almost 20.9 per cent Y-o-Y to $2.31 billion,
respectively.
(Business Standard)
Sebi bars 7 from markets
for 'fraud' trades, directs Rs.20 cr disgorgement: Sebi on Friday debarred seven individuals from
the securities market for alleged fraudulent trading in 82 scrips through stock
recommendations given on social media platforms. The regulator has also
directed to impound Rs.20.25 crore of the wrongful gains.
(Business Standard)
Under Rozgar Mela, PM to
distribute more than 51,000 appointment letters to the newly appointed youth in
Government on 23rd May: Prime Minister Shri Narendra
Modi will distribute more than 51,000 appointment letters to newly appointed
youth in various Government departments and organisations at the 19th Rozgar
Mela on 23rd May 2026 at 11 AM via video conferencing. He will also address the
gathering on the occasion. In keeping with the Prime Minister’s commitment to
prioritising employment generation, the Rozgar Mela is a major initiative aimed
at translating this vision into reality. Since its inception, around 12 lakh
recruitment letters have been issued through 18 Rozgar Melas organised across
the country. The 19th Rozgar Mela will be held at 47 locations across the
country.
(PiB)
‘Khet Bachao
Abhiyan’ reaches 2.712 Crore Citizens; 7.17 Lakh Farmers Sensitised on Balanced
Use of Fertiliser: Indian Council of Agricultural Research
under Department of Agriculture Research and Education has recorded significant
achievements under its nationwide ‘Khet Bachao Abhiyan’, which focuses on soil
health, balanced fertiliser use, and sustainable agriculture. The ‘Khet Bachao
Abhiyan’ campaign has established a robust outreach across the country through
multiple platforms to educate farmers and stakeholders on scientific nutrient
management. Under the Abhiyan, a total of 12,979
awareness camps and seminars have been conducted so far, directly engaging 7.17
lakh farmers. To build capacity, 3,145 training programmes were organised in
which 1,11,509 participants took part. Practical knowledge was imparted through
7,928 field demonstrations on green manuring, bio-fertilisers, and organic
sources.
(PiB)
LIGHT HOUSE
INITIATIVE
·
The "Lighthouse
Initiative" (LHI) primarily refers to several distinct national and global
development programs. In India, it is a prominent Public-Private Partnership
targeting either rural sanitation or youth employment.
·
Depending on the context, the
phrase most commonly refers to the following major programs:
·
Global Lighthouse Network
(World Economic Forum): Recognizes manufacturing plants and industries that
successfully integrate Fourth Industrial Revolution (4IR) technologies to
transform operations, boost sustainability, and scale digital innovation.
·
India Sanitation & Housing,
Renewable Energy & Climate Initiatives and many others.
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 : 95.9588
INR
/ 1 GBP : 128.7901
INR
/ 1 EUR : 111.3903
INR
/100 JPY: 60.3100
EQUITY INDEX
Sensex:
75415.35 (+231.99)
NIFTY:
23719.30 (+64.60)
Bnk NIFTY: 54055.35 (+615.95)
Historical
events: May 23 is a
pivotal date in history, marked by major geopolitical milestones and monumental
human achievements. In 1947, the British Cabinet approved the Partition of
India Plan. Globally, China signed the 17-Point Agreement in 1951 for the
annexation of Tibet. In 1984, Bachendri Pal made history as the first Indian
woman to summit Mount Everest, while world history witnessed the establishment
of West Germany in 1949.
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