Latest RBI data show credit growth of scheduled commercial banks declined to 5.8% in June against 6.2% a year ago.
“RBI is currently working towards a phased implementation strategy and examining cases which could be implemented with little or no disruption.
HDFC Bank would also have been affected by this decision but the lender is already facing restrictions by the RBI on issuance of new cards (debit, credit or prepaid).
According to a report by Nomura, RBL Bank, Yes Bank, and Bajaj Finserv are most impacted as their entire card schemes are allied with Mastercard
According to the regulator, the restriction was imposed as the company failed to comply with its directions on storage of payment system data.
In mid-2020, the RBI had come up with the circular that specified which bank can open a current account for a borrower, in order to check any misuse through multiple current accounts.
The PMC Bank has been put under restrictions, including limiting withdrawals, by the RBI, following the unearthing of a Rs 4,355-crore scam.
Deposits are classified as unclaimed by RBI if the customer doesn’t make any transaction in the account for 10 years or more.
Pinaki Chakraborty said India's current macroeconomic situation is better than what it was during the first wave of the COVID-19 pandemic and should recover faster if there is no third wave.
New norms to be applicable for deposits in all commercial banks, small finance banks, local area banks, and cooperative banks.
The entire fund raised by Indian companies in May 2021 came through the automatic route of the external commercial borrowings, according to RBI data.
The lender said total exposure to these loans were at Rs 8,576 crore as on March 21, 2021, and that it has sought a legal view on its relationship with these borrowers.
Unlike last year, however, RBI expects banks’ stress level to be less harsh this year—helped by restructuring, write-offs, and regulatory forbearances including a loan moratorium.
The CAD, the gap between the country’s overall foreign receipts and payments, is an important factor signalling the strength of a nation’s external sector.
According to the new guidelines, both NBFCs and housing financiers will need to meet certain benchmarks to qualify for a dividend payment.