RBI ASSISTANT

MAINS

Last 6 Months
SPECIAL

RBI in News
PART - 2
FEBRUARY, MARCH & APRIL HIGHLIGHTS

● Reserve Bank of India (RBI) issued eligibility criteria for entities that harness data from
credit information companies (CICs) or credit bureaus.
• These newly-formed guidelines said that a company’s net worth must be at least Rs 2 crore
and owned and controlled by resident Indian citizens to become a designated user with a credit
bureau, which comes amid accusations of lending applications with Chinese ties functioning in
India.

● The Reserve Bank of India has increased the threshold limit for Banks to maintain the
Liquidity Coverage Ratio (LCR) on deposits and other extension of funds’ received from non-
financial small business customers from Rs 5 crore to Rs 7.5 crore. This is applicable on all
Commercial Banks other than Regional Rural Banks, Local Area Banks, and Payments
Banks.

● Reserve Bank of India (RBI) has cancelled the Certificate of Authorisation (CoA) of two
Payment System Operators (PSOs): Muthoot Vehicle and Asset Finance Limited and Eko
India Financial Services Private Limited, citing non-compliance with regulatory requirements
under the Payment and Settlement Systems Act, 2007.
● Gujarat has left behind Maharashtra to become the country’s leading manufacturing hub,
according to data from the Reserve Bank of India (RBI). Gujarat saw its Gross Value Addition
(GVA) in manufacturing grow by 15.9 per cent annually.

● Reserve Bank of India, in consultation with the Department of Financial Services, the
Ministry of Finance, has decided to make the Scheduled payments banks and scheduled small
finance banks (SFBs) eligible to conduct Government agency business.

● Reserve Bank of India (RBI) has announced the empanelment of CSB Bank, a private sector
lender as an ‘Agency Bank’.

● Reserve Bank of India (RBI) superseded the Board of Directors of Reliance Capital Ltd
(RCL), a Non Banking Financial Company (NBFC), by exercising its power conferred under
Section 45-IE (1) of the RBI Act, 1934. RCL is promoted by Anil Dhirubhai Ambani’s Reliance
Group. In this regard, the apex bank has appointed Nageswar Rao (Ex-Executive Director, Bank
of Maharashtra) as the Administrator of the company under Section 45-IE (2) of the RBI Act.

● Digital rupee to be issued using blockchain and other technologies and will be issued by RBI
starting 2022-23. This will give a big boost to the economy.

● Reserve Bank of India has retained State Bank of India, ICICI Bank and HDFC Bank as
Domestic Systemically Important Banks (D-SIBs).
● Reserve Bank of India (RBI) extended the deadline for non-banking financial companies
(NBFCs) to comply with new Non-Performing Assets (NPAs) Classification norms (the norms
are issued by RBI in November 2021) to September 2022 from the earlier deadline of March
2022.
• RBI directed certain Non-Banking Financial Companies (NBFCs) to mandatorily implement
‘Core Financial Services Solution (CFSS)’ by 30th September 2025.

● According to Goldhub, the Reserve Bank of India (RBI) has emerged as the 2nd largest
buyer of Gold among the world’s Central Banks in 2021. RBI bought 77.5 metric tons in 2021.
• The Central Bank of Thailand is the largest buyer, that bought 90 metric tonnes of gold.

● The Reserve Bank of India will observe February 14-18, 2022 as Financial Literacy week
2022.
• Theme - “Go Digital, Go Secure”

● The Reserve Bank of India had introduced the Voluntary Retention Route (VRR) for
investments by Foreign Portfolio Investors (FPIs) in debts in 2019 with an investment limit of
Rs 1,50,000 crore. Out of this, around Rs, 1,49,995 crore have been availed so far in three
tranches. Now RBI has increased this investment limit in VRR from Rs.1,50,000 crore to Rs.
2,50,000 crore.

● The Government of India has done a conversion switch transaction of its securities with
the Reserve Bank of India (RBI) for an amount of 1,19,701 crores (face value). The transaction
involved buying back securities that are being matured in FY 2022-23, FY 2023-24 and FY
2024-25 from the RBI and also issuing fresh securities for equivalent market value, to make the
transaction cash neutral.

● The Centre government has nominated Sanjay Malhotra, Secretary, Department of Financial
Services (DFS), Ministry of Finance, as a Director on the Central Board of Reserve Bank of
India (RBI).
● The Reserve Bank of India (RBI), has cancelled the licence of Independence Co-operative
Bank Limited in Nashik, Maharashtra and Maharashtra’s Mantha Urban Cooperative
Bank,People’s Co-operative Bank Limited,Kanpur, Uttar Pradesh.
• The banks did not have adequate capital and earning prospects to pay their present depositors
in full.
• The banks does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read
with Section 56 of the Banking Regulation Act, 1949.

● The Reserve Bank of India (RBI) canceled the certificate of registration (CoR) issued to
PC Financial Services Private Limited, Delhi due to increase in complaints against usurious
rate of interest and unfair recovery practices being followed by several digital lenders.
• The action was taken under Section 45-IA (6) (iv) of the Reserve Bank of India Act, 1934.

● Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) has set up an Ink
Manufacturing Unit named “Varnika” at Mysuru,Karnataka, with an annual ink
manufacturing capacity of 1,500 MT to enhance the security of banknotes.

● Reserve Bank of India has announced that National Bank for Financing Infrastructure and
Development (NaBFID) will be regulated and supervised by it as an All India Financial
Institution (AIFI) under the RBI Act, 1934. NaBFID will be regulated and supervised by RBI
as an AIFI under Sections 45L and 45N of the Reserve Bank of India Act, 1934.

● Shaktikanta Das, Governor of RBI has inaugurated the Reserve Bank Innovation Hub
(RBIH) on March 24, 2022 in Bengaluru, Karnataka. RBI has set up the RBIH with an initial
capital contribution of Rs. 100 crore.
• It has been setup as a Section 8 company under Companies Act, 2013.
• Reserve Bank Innovation Hub (RBIH) is one of the five wholly-owned subsidiaries of the
RBI.
• Senapathy (Kris) Gopalakrishnan - 1st Chairman
● The Reserve Bank of India (RBI) has released the framework for geo-tagging of payment
system touchpoints.
• Geo-tagging of payment system touchpoints will enable proper monitoring of the availability
of payment acceptance infrastructure like Points of Sale (PoS) terminals, Quick Response (QR)
codes, etc.
● RBI cautioned public against car pooling app sRide, which is operating a semi-closed pre-
paid instrument without authorization from the central bank under the provisions of the Payment
and Settlement Systems Act, 2007.

● Reserve Bank of India (RBI) and the National Payment Corporation of India (NPCI)
launched two landmark initiatives UPI123Pay and DigiSaathi.
• With the new facility, both smartphone and feature phone holders can now easily transact
digitally.

● The Reserve Bank of India (RBI) released a booklet titled “BE(A)WARE”. It provides
information on the common modus operandi used by fraudsters and precautions to be taken while
carrying out various financial transactions.

● The Reserve Bank of India (RBI) issued modified norms on ‘Interest Equalisation Scheme
(IES) on Pre and Post Shipment Rupee Export Credit-Extension’ after the extension of the
scheme till March 31, 2024 by the Central Government w.e.f. October 1, 2021.
• The extended scheme will not be applicable to the ones availing benefit under any Production
Linked Incentive (PLI) scheme of the Central Government.

● The Reserve Bank reduced the Ways and Means Advances (WMA) for states and union
territories to Rs 47,010 crore from Rs 51,560 crore on Friday.
• WMAs are short-term loans provided by the RBI.

● The Reserve Bank of India announced that current banks can open digital banking units
to provide products and services 24 hours a day, 7 days a week, in both self-serve and
assisted modes. The government announced in the Union Budget that at least 75 such units will
be established in 75 districts to commemorate the country’s 75th anniversary of independence
as the Azadi ka Amrit Mahotsav.
 1st Bi-Monthly Monetary Policy of 2022-23

Category Rate
Policy Repo Rate 4%
Reverse Repo Rate (RRR) 3.35%
Marginal Standing Facility Rate (MSF) 4.25%
Bank Rate 4.25%
Cash Reserve Ratio Rate (CRR) 4%
Statutory Liquidity Ratio (SLR) 18%

● India's gross domestic product (GDP) growth estimated at 7.2% for FY23.
● CPI based inflation forecast for FY23 - 5.7%