Issue: 1173
· India’s banking system liquidity
turns into deficit for first time in 2026 due to tax outflows and RBI forex
intervention.
· Gold loan companies request
RBI to defer new gold lending rules scheduled from April 2026.
· Government says no proposal
under consideration for merger of PSU banks currently.
· RBI warns India to monitor
West Asia crisis due to oil dependence and possible economic spillover risks.
· India seen strong enough to
face external shocks due to strong forex reserves and macro fundamentals,
global analysts say.
· Global central banks cautious
on interest rates amid geopolitical tensions and inflation risks.
India, Russia reaffirm $100
billion trade goal as West Asia simmers: India and Russia have called
for strengthening bilateral economic and strategic ties amid the West Asia
crisis and shifting geopolitical alignments, reaffirming their commitment to
the $100 billion bilateral trade target by 2030. Russian Foreign Minister
Sergey Lavrov, on Monday, said Prime Minister Narendra Modi was expected to
visit Russia in 2026 and asserted that there was close foreign policy
coordination between the two countries amid the West Asia crisis “provoked” by
the US and Israel. As much as 96 per cent of bilateral trade was already
happening in national currencies, he said.
(Business Line)
RBI flags higher global
growth risks, Forex reserves enough to cushion external shocks: The military conflict in the
Middle East, triggered by joint US and Israeli strikes on Iran, coupled with
fresh US trade investigations, has increased volatility in global financial
markets, the Reserve Bank of India (RBI) said on Monday. The central bank, in
its State of the Economy report, said that a prolonged period of war and high
uncertainty would pose serious risks to the global economic outlook, “which was
already in a state of flux prior to the recent events.” It, however, noted that
India’s foreign exchange reserves remain adequate to cushion against external
shocks.
(Financial Express)
RBI injects Rs.79,256 crore
into banking system via overnight VRR auction: RBI on Monday infused Rs.79,256
crore transient liquidity into the banking system through overnight variable
rate (VRR) auction. The RBI injected the funds at cut-off and weighted average
rates of 5.26 per cent, the central bank said in a release. The liquidity
injected was much lower than the notified amount of Rs.1 trillion, despite the
sharp drop in surplus liquidity in the banking system due to advance tax
payments. Currently, liquidity in the banking system is estimated to be in
deficit of about Rs.65,395.64 crore as on March 23. On March 20, the central
bank had infused Rs.25,101 crore transient liquidity in the banking system
through a three-day VRR auction.
(Business Standard)
Independent directors must
act responsibly, says SEBI chief on HDFC Bank Chairman’s exit: The chairman of the Securities
and Exchange Board of India on Monday said independent directors must act
responsibly and avoid making unsubstantiated remarks. His comments follow on
the abrupt resignation of HDFC Bank’s part-time Chairman and independent director
Atanu Chakraborty last week. Speaking after the SEBI board meeting, Tuhin Kanta
Pandey said independent directors are required to protect the interests of
minority shareholders and follow laid-down processes to raise concerns. “No one
is expected to make insinuations without proper evidence and recordings,” he
said.
(Business Line)
Banks seek NRI deposit
window, tax relief as liquidity tightens: India’s financial markets are
turning up the heat on policymakers, seeking tax relief for foreign investors
and a revival of NRI?focused deposit schemes to
ease a tightening liquidity environment. But the Reserve Bank of India (RBI)
appears unwilling to return to the crisis?era tools that helped
stabilise the rupee and attract over $30 billion during the 2013 taper tantrum. Liquidity
stress is evident across the system. Deposit growth continues to lag credit
expansion, forcing banks to sharply raise bulk deposit and certificate of
deposit (CD) rates. This has prompted renewed
calls for policy intervention, particularly the revival of the NRI deposit
windows used in 2013.
(Financial Express)
No proposal under
consideration on merger of PSU banks: MoS Finance: There is no proposal under
consideration before the government on the merger or consolidation of PSBs at
present, MoS for Finance Pankaj Chaudhary said on Monday. Chaudhary, in reply
to the Lok Sabha, said the amalgamation of PSBs helped create stronger
competitive banks with economies of scale and scope while enabling the
realisation of wide-ranging synergies. Leveraging networks, better access to
low-cost deposits, increased ability to support larger ticket-size lending, and
competitive operations by virtue of greater financial capacity have provided
the amalgamated banks a substantial rise in customer base, market reach and operational
efficiency.
(Economic Times)
Karnataka
Grameena Bank bags award for rural economic empowerment: The Union Ministry of Rural Development
has awarded Karnataka Grameena Bank the ‘National Award for Outstanding
Performance in SHG Bank Linkage 2024-25’. A media statement said that the bank
has been conferred the award for its contribution to rural economic empowerment,
particularly through self-help groups (SHGs).
(Business Line)
Kotak Bank set to acquire
Deutsche's retail business in Rs 4,500-crore deal: Kotak Mahindra Bank is one
step closer to acquiring the India retail business of Deutsche Bank in a deal
valued at about Rs 4,500 crore after being selected as the preferred buyer,
multiple people familiar with the matter told ET. A deal is expected to be
signed and announced as early as next week, they said, requesting anonymity as
the discussions are private. The proposed acquisition comprises a retail loan
and deposit book of about Rs 27,000 crore. This includes personal and home
loans, MSME lending, retail deposits and wealth management assets.
(Economic Times)
GIFT Nifty soars nearly 4% after Trump postpones military
strikes on Iranian power plants: GIFT Nifty surged nearly 4 percent on Monday
evening after US President Donald Trump said military strikes on Iranian power
plants would be postponed for five days following talks with Tehran. In a post, Trump said the
talks were aimed at achieving a "complete and total resolution" of
hostilities in the Middle East. He added that based on the "tenor and
tone" of the discussions, he had directed the Department of War to delay
any strikes on Iranian power plants and energy infrastructure for five days. He
said the pause was conditional and would depend on the progress of
negotiations, which are expected to continue through the week.
(Moneycontrol)
Govt restores full RoDTEP
rates to support ailing exporters: In a move that would give some relief to
exporters grappling with trade disruptions due to the West Asia crisis, the
government has restored full benefits under the Remission of Duties and Taxes
on Exported Products (RoDTEP) scheme, reversing a sharp cut in rates announced
last month. “RoDTEP benefits shall be available at the rates and value caps as
applicable on February 22, 2026, thereby withdrawing the earlier restriction of
50 per cent notified vide notification… dated February 23, 2026,” the
Directorate General of Foreign Trade (DGFT), said in a notification issued on
Monday. The restored rates will apply for the period from February 23 to March
31, 2026. The latest notification is in line with earlier
assurances from the DGFT to exporters’ bodies, such as FIEO, that full RoDTEP
rates would be made available from April 1, 2026, providing continuity of
support beyond the current fiscal year. The RoDTEP scheme refunds embedded
taxes and duties that are not otherwise reimbursed, and is seen as a crucial
support mechanism for exporters across sectors such as engineering goods,
textiles and chemicals.
(Business Line)
Svatantra Microfin acquires
Chaitanya India Fin; becomes 2nd largest NBFC-MFI: Svatantra Microfin Pvt Ltd on Monday announced
that it has completed its merger with Chaitanya India Fin Credit Pvt Ltd
(CIFCPL) and Svatantra Holding Pvt Ltd following NCLT approval. The approval for the amalgamation was granted
by the National Company Law Tribunal (NCLT), Mumbai Bench, through its order
dated March 12, Svatantra Microfin Pvt Ltd, founded by Ananya Birla, said in a
statement. The said amalgamation, which follows the receipt of all necessary
approvals.
(Economic Times)
SEBI board approves
conflict of interest code for WTMs, officials: The board of SEBI on March 23 approved a
revised code of conduct to govern conflicts of interest for its Whole-Time
Members (WTMs) and officials, while referring certain critical provisions to
the Central Government for consideration. According to the board’s
decision, key recommendations relating specifically to board members will
require government approval. These include the proposal to notify a separate
set of regulations governing disclosures and conflict management for board
members. Since the Central Government is the appointing authority and
determines the terms of service of SEBI’s board, it will take the final call on
these measures. The board has also referred to the government the
recommendation on oversight of conflicts involving board members, including the
creation of an Oversight Committee on Ethics and Compliance. This body is
intended to strengthen independent supervision of disclosures and recusal
decisions at the highest level.
(Moneycontrol)
Corporate Laws (Amendment)
Bill 2026 referred to JPC: Easier CSR, buyback norms proposed in new bill: The government has proposed to
increase the minimum net profit threshold for mandatory corporate social
responsibility (CSR) spending by companies to Rs 10 crore. This move aims to
ease the burden on companies with nominal profits, allowing them to focus on growth
rather than CSR contributions. In addition, the Corporate Laws (Amendment)
Bill, 2026 tabled in Parliament on Monday, proposes to give companies more time
to transfer funds to the unspent CSR account for long-term projects. Currently,
under Section 135 of the Companies Act, companies with a turnover above Rs
1,000 crore, a net worth above Rs 500 crore, or a net profit exceeding Rs 5
crore must spend at least 2% of their average net profits from the previous
three years on CSR. The Bill, also proposes to
relax the buy-back norms. This relaxation allows a prescribed class of
companies to make up to two buy-back offers within one year, provided the
second offer (in the same year) is not made within six months of the conclusion
of the first offer.
(Financial Express)
SC panel, govt to meet as
cheque bounce cases swamp courts: A high-level meeting will be
held between the Supreme Court’s mediation and conciliation project committee
(MCPC) and government officials on Tuesday to explore ways of resolving the
vexed issue of cheque bounce cases, which are clogging India’s judicial system,
two people aware of the matter said. As many as 8.2 million cheque bounce cases
are pending in Indian courts, leaving them with little time to focus on other
civil and criminal matters and contributing to growing delays across the
judicial system.
(Mint)
KNOWLEDGE ECONOMY
§ The
knowledge economy is an economy of products and services produced with human
capital, knowledge, skills, and intellectual property, rather than physical
assets such as land and physical labor.
§ It
refers to the ability to capitalize on scientific discoveries and applied
research.
§ The
knowledge economy represents a large share of the activity in most highly
developed economies.
§ A
significant component of its value might be intangible assets, such as the
value of its workers' knowledge or of intellectual property such as patents and
proprietary procedures.
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 : 93.8980
INR
/ 1 GBP : 124.8167
INR
/ 1 EUR : 108.2231
INR
/100 JPY: 58.8300
EQUITY INDEX
Sensex:
72696.39 (-1836.57)
NIFTY:
22512.65 (-601.85)
Bnk NIFTY: 51437.75 (-1989.30)
World
Tuberculosis (TB) Day: March 24 is
globally recognized as World Tuberculosis (TB) Day, aimed at raising awareness
about the disease and efforts to end the epidemic. It commemorates Dr. Robert
Koch's 1882 discovery of the bacterium that causes TB. It is also celebrated as
International Day of Achievers, National Cheesesteak Day, and National Cocktail
Day.
Historical
events: March 24 in
history is marked by significant events: the discovery of the TB bacterium in
1882 (World TB Day), Morarji Desai becoming India's first non-Congress PM in
1977, and the 2020 national lockdown announcement in India. Other events
include the 1946 British Cabinet Mission arriving in India and the 1990
withdrawal of Indian forces from Sri Lanka.
****Have a nice Day****
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