RESERVE BANK OF INDIA

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• India's wholesale prices quicken to a 3-month high in March, onion and potato prices top 50%

  India's wholesale price index-based inflation surged to 0.53% in March from 0.20% in February, driven by a significant increase in onion and potato prices. Onion prices rose by 56.99% and potato prices by 52.96% in March, leading to concerns about a shortage in onion supply until the next kharif crop. Wholesale food inflation also increased to 4.7%, with notable rises in food articles, electricity, crude petroleum, natural gas, machinery, and other manufacturing.

  

• ET Exclusive: Japan’s MUFG set to pick 20% stake in HDFC Bank arm HDB Financial for $2 bn

  Bank of Tokyo-Mitsubishi UFJ (MUFG) is set to buy a 20% stake in HDB Financial Services, a non-banking subsidiary of HDFC Bank, at a valuation of $9-10 billion. The decision is expected to take place next week at the HDFC Bank board meeting. The deal is expected to be among the largest deals in the shadow banking space in India. HDFC Bank owns 95% of the shadow bank, while employees own 5% as ESOPs.

  

• Get ready for global turbulence, China imploding: Uday Kotak warns

  Uday Kotak has warned of global economic turbulence as US inflation may delay rate cuts, keeping interest rates elevated. Kotak predicts US rate cuts postponed until closer to US elections while the rates will remain elevated in global economies including in India. Fed officials see key interest rate peaking, aiming to ease policy gradually. US inflation surges, dampening rate cut expectations.

  

• Banks seek flexible reserve norms as RBI weighs risks

  Lenders have asked the RBI to permit the compulsory portion of funds set aside for the maintenance of the Cash Reserve Ratio (CRR) to be made eligible as High Quality Liquid Assets (HQLA) for the purpose of computing Liquidity Coverage Ratio (LCR), sources aware of the developments told ET.

  

• ADB raises India's GDP growth forecast for FY25 to 7 pc on robust investment, consumer demand

  Asian Development Bank raised India's GDP growth forecast to 7% for the current fiscal, driven by robust investment and improving consumption demand. Growth moderates in FY2024 and FY2025, with support from monetary and fiscal policies.

  

• When will RBI cut rates?

  Experts see the central bank cutting rates from August or October but add that the rate cutting cycle will be shallow.

  

• Phoenix ARC buys two stressed loans from IIFL

  It has offered 15% cash and 85% security receipts for the loans that include one project in Noida and another in Jogeshwari, Mumbai. Phoenix ARC was the only participant in the open auction, the source said.

  

• RBI directs banks and finance companies to prioritise governance, adhere to rules

  Speaking to the media after announcing the policy, the governor also said that financial stability is a joint responsibility of the regulator and the regulated entity. "We supervise all major entities. Wherever we see a problem, we first engage with the entity to see that corrective actions are taken. Where we see that the problems are huge or persistent only then we act," the Governor said.

  

• Remembering RBI at 90

  For the common people, the RBI is an institution which prints money and manages policy rates but there is a lot more that the central bank does. The RBI also knows how much onion farmers are producing in India. From cracking down on the top bankers in the country to setting up new subsidiaries, RBI has done a lot more. but going ahead, it will have to do a lot more as the world of finance is evolving rapidly. Here is my view on RBI and its operations, RBI's work culture and challenges ahead in the future.

  

• RBI's now become an enabler of the market economy: Governor Shaktikanta Das

  "Given the rapid changes taking place in today's world, especially in the areas of technology, innovation, business practices and growing complexities in the financial sector, the Reserve Bank is constantly evaluating the emerging trends and taking necessary policy measures to remain in sync with the evolving situation," Shaktikanta Das said at the RBI's 90th commemoration function on Monday.

  

• ET Explainer: What RBI's norms on penal charges mean for borrowers

  The Reserve Bank of India (RBI) has implemented new guidelines on penal charges for loan accounts starting from April 1. These regulations prohibit commercial banks and finance companies from imposing penal rates on loan defaults or any non-compliance event. The guidelines aim to promote credit discipline and prevent banks from using penal charges as a revenue enhancement tool.