Issue: 1254
· Suryoday SFB board approves
plans to raise up to Rs 500 crore via equity and debt.
· India’s credit card market
crossed 120 million active cards in May 2026.
· Axis Bank seeks shareholder
nod to raise Rs 55,000 crore in FY27.
· The government is encouraging
private sector banks to expand enrolment under the accident insurance scheme,
aiming to increase social security coverage.
· The central bank is
considering a use-case-based regulatory framework for AI and machine learning
applications in the financial sector to strengthen risk controls.
· Govt proposes 7 kg ration per
person for Antyodaya Anna Yojana households.
RBI proposes to enhance
money market participation, liquidity: The Reserve Bank of India
(RBI) on Thursday proposed a series of measures aimed at improving liquidity
and participation in the term money market, while also seeking to streamline
rules governing secondary market transactions in government securities. In
a draft Master Direction on call, notice and term money markets, the central
bank proposed giving market participants greater flexibility in setting
prudential limits for lending transactions. "Prudential limits in respect
of outstanding lending transactions in the call, notice and term money markets
should be decided by the participants with the approval of their Board,"
the RBI said in the draft Master Direction - Reserve Bank of India (Call,
Notice and Term Money Markets) Directions, 2026.
(Moneycontrol)
Centre's disinvestment
receipts in Q1 FY27 exceed FY26 proceeds: With the conclusion of the
government’s 2 per cent stake sale in Indian Railway Finance Corporation (IRFC)
on Thursday through an offer for sale (OFS), the Centre’s disinvestment
receipts in just the first quarter of financial year 2026-27 (Q1FY27) have
exceeded the total proceeds from disinvestment in FY26. The government’s
disinvestment receipts have surpassed Rs.18,000 crore in FY27 so far, compared
to total proceeds of Rs.16,886 crore in FY26. “The OFS for Indian Railways
Finance Corporation closed with an enthusiastic response from the retail
investors,” Disinvestment Secretary Arunish Chawla said in a post on X. “Combined
with the institutional investors, 22.88 crore shares were sold to the minority
shareholders over the two trading days for an estimated amount of Rs.2,084
crores,” Chawla added.
(Business Standard)
Govt plans to borrow Rs.3.36
trillion through Treasury Bills in Q2FY27: The central government plans
to borrow up to Rs.3.36 trillion through the issuance of Treasury Bills in the
second quarter of the current financial year, the Reserve Bank of India (RBI)
said in a release on Thursday. The indicative borrowing for the quarter was
along expected lines, market participants said. The government will raise Rs.1.26
trillion through 91-day Treasury Bills, Rs.1.12 trillion through 182-day
Treasury Bills and Rs.98,000 crore through 364-day Treasury Bills during the
quarter.
(Business Standard)
RBI’s G-sec holding rises
to 13-year high: The
Reserve Bank of India’s holdings of Indian government securities rose to a
multi-year high after aggressive bond purchases. According to the central bank
data released this week, its bond holdings increased to 17.6% of outstanding
issuance at the end of March from 14.5% as of December-end. “The RBI had to
undertake large-scale G-Sec purchases through OMO operations to inject durable
liquidity into the banking system, which resulted in RBI holdings reaching
multi-year highs,”.
(Financial Express)
HDFC Life investing in
GenAI to improve customer experience, drive efficiency: Chairman: HDFC Life Insurance, the
country’s second-largest private life insurer by premium income, is stepping up
investments in artificial intelligence (AI), advanced analytics and digital
capabilities across functions to enhance customer experience, strengthen risk
management and improve overall operational efficiency, according to Chairman
Keki M Mistry. “We are investing in advanced analytics, digital infrastructure,
automation and GenAI led capabilities across the value chain to enhance
customer experience, effective risk management, improve agility & accuracy,
and drive operational efficiency,” Mistry said in his letter to shareholders
ahead of the company’s annual general meeting scheduled for July 16.
(Financial Express)
RBI opens term money market
to AIFIs, housing finance companies: The Reserve Bank of India has
opened the term money market to All India Financial Institutions and housing
finance companies, allowing them to borrow and lend. Prudential borrowing
limits for primary dealers have also been significantly increased. These moves
aim to deepen market participation and improve liquidity, ultimately
strengthening monetary policy transmission by linking short-term and long-term
interest rates.
(Economic Times)
Reserve Bank of India
issues final rules on credit derivatives: The Reserve Bank of India on
Thursday issued final rules for a proposed expansion of the country's credit
derivative market, after the federal ?finance minister ?proposed ?deepening it in this year's
budget. The rules will allow resident
Indian non-retail users to deploy instruments such as credit default swaps and
total return swaps without ?any restrictions ?on purpose,
while limiting the use of these ?instruments by non-resident
users for hedging purposes.
(Economic Times)
Large commercial banks may
opt to lend up to 9x against FCNR(B) deposits: Following the Reserve Bank of
India’s (RBI’s) clarification that commercial banks, including their overseas
branches, can extend loans to non-residents against FCNR (B) deposits mobilised
under the special swap facility, large lenders are working on structured
offerings that could provide up to 9x leverage against such deposits. The
structures are expected to enable NRIs to earn effective returns of 12-18 per
cent, bankers said.
(Business Standard)
Amazon chief Andy Jassy
meets PM Modi, announces $13-bn investment to expand AI, cloud infrastructure: Amazon plans to invest an additional $13 billion in
India, raising its total planned investment in the country to $48 billion by
2030, Global CEO Andy Jassy announced on Thursday after meeting with Prime
Minister Narendra Modi. This update comes just six months after the e-commerce
giant initially pledged $35 billion in new investments by 2030. “As we grow
Amazon in India, our business priorities continue to align with India’s
priorities of democratising access to AI, digitising small businesses, creating
jobs, and enabling exports. We are investing over $48 billion in the coming
five years to meet the strong demand across our business in India and to help
the country achieve these priorities,” Jassy stated. He added that Amazon is
committed to being a long-term partner in India’s growth story.
(Business Line)
Govt raises nearly Rs.2,100
cr from IRFC share sale: The government on Thursday said it has raised
around Rs.2,100 crore from the share sale of state-owned Indian Railway Finance
Corporation (IRFC). The OFS for IRFC closed with an enthusiastic response from
the retail investors, Department of Investment and Public Asset Management
(DIPAM) Secretary Arunish Chawla said in a post on X. "Combined with the
institutional investors, 22.88 crore shares were sold to the minority
shareholders over the two trading days for an estimated amount of Rs.2,084
crore. We thank all investors for their participation and for reposing their
faith in us," he said.
(Business Line)
Three Indian
DFIs said to plan $1.5 billion foreign debt under RBI scheme: Three Indian development finance
institutions (DFIs) are preparing to raise at least $1.5 billion through
foreign-currency bank loans under the Reserve Bank of India’s (RBI) discounted
overseas borrowing scheme, Reuters reported on Thursday, citing sources. Each of
the three institutions - the National Bank for Agriculture and Rural
Development (Nabard), the Small Industries Development Bank of India (Sidbi),
and the National Bank for Financing Infrastructure and Development (NaBFID) -
is looking to borrow at least $500 million through foreign-currency loans.
(Business Standard)
Passport fees hiked from 1
July as government revises fee structure: Applying for a passport in
India will become costlier from July 1, 2026, after the government revised the passport
fee structure through an amendment to the Passports Rules, 1980. Under
the new rules, the fee for a fresh 36-page passport or its reissue under the
normal category has been increased from Rs 1,500 to Rs 2,500. The corresponding
Tatkaal fee has been raised from Rs 3,500 to Rs 5,000. The revised fee
structure was notified by the Ministry of External Affairs through a
notification dated June 20 and will come into effect from July 1. The
fee for a fresh 60-page passport or reissue has been increased from Rs 2,000 to
Rs 3,500 under the normal category, while the Tatkaal fee has been revised
upward from Rs 4,000 to Rs 6,000.
(Moneycontrol)
Government restores
non-domestic packed LPG supply to pre-crisis levels; bulk LPG curbs eased: The government on June 25
removed all sectoral restrictions on the supply of Non-Domestic Packed LPG to
industrial and commercial LPG consumers and restored supplies to the levels
prevailing prior to the West Asia crisis. Further, the supply of bulk
LPG, which had been suspended at the onset of the crisis, has been relaxed by
50% of the pre-crisis consumption levels providing significant relief to
commercial and industrial consumers. The restoration follows the recent
improvement in the LPG supply situation following the peace deal between the US
and Iran.
(Moneycontrol)
RBI proposes AI
risk framework for banks: The Reserve Bank of India (RBI) on
Wednesday proposed a new framework for the use of artificial intelligence as
its adoption by domestic banks expand significantly. In a draft circular, the
RBI urged banks to put in place proper governance, risk management, and
controls, along with continuous oversight. Under the new framework, the
regulator proposed broad principles to manage risks from third-party models. The regulator has sought stakeholder feedback
by July 24.
(Financial Express)
FINANCIAL
REPRESSION
§ Financial
Repression refers to a set of government policies that channel funds from
savers to the government at below-market interest rates. It may include
interest rate caps, high reserve requirements, directed lending, and
restrictions on capital movement.
§ While
it helps governments reduce debt burdens and finance fiscal deficits cheaply,
prolonged financial repression can distort resource allocation, discourage
savings, and reduce financial sector efficiency. The term is often discussed in
the context of sovereign debt management.
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 : 94.4804
INR
/ 1 GBP : 124.4987
INR
/ 1 EUR : 107.3637
INR
/100 JPY: 58.3800
EQUITY INDEX
Sensex:
77100.47 (+109.25)
NIFTY:
24056.00 (+34.35)
Bnk NIFTY: 58177.05 (+26.70)
International Day
Against Drug Abuse and Illicit Trafficking: June 26th is
globally recognized as the International Day Against Drug Abuse and Illicit
Trafficking and the International Day in Support of Victims of Torture.
Regionally, it is an official bank holiday for Muharram in India and marks
Independence Day in Madagascar.
Historical
events: June 26 is a
monumental date globally, marked by the signing of the United Nations Charter
in 1945 and the annual observance of the International Day against Drug Abuse.
In India, it is heavily associated with the dark chapter of the 1975
declaration of a National Emergency, while historically also celebrating the
births of luminaries like Bankim Chandra Chatterjee.
****Have a nice Day****
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