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RBI injects Rs 1 lakh crore as liquidity tightens before festive season
On Monday, the RBI announced a Rs 1-lakh-crore variable rate repo (VRR) auction for the first time since late July after the weighted average call rate (WACR) at 5.67% on Monday, or 17 basis points higher than the repo rate of 5.50%. The central bank will conduct another VRR for Rs 50,000 crore on Wednesday.
The Research, Development and Innovation (RDI) scheme aims to significantly increase private sector investment in India. It is designed to catalyse nearly Rs 10-lakh crore in investment over the next ten years while creating new job opportunities. The focus will be on crucial technology areas like artificial intelligence, biotechnology, and space technologies.
RBI clarifies interbank trades, ECBs coupons not part of FERR
Reserve Bank of India recently clarified the applicability of foreign exchange risk reserve for banks. The requirement does not apply to banks engaging in market-making or proprietary trading. It will also not affect interest on External Commercial Borrowings or dividends payable to non-resident investors. The FERR must be maintained until one day after the derivative contract's termination.
RBI issues clarifications on forex hedging curbs
The Reserve Bank of India issued clarifications on its recent measures to support the rupee. This followed concerns about tighter hedging rules and cash margins on certain derivatives. Several lenders have held back on quoting dollar-rupee forwards due to confusion regarding transaction requirements. The measures included redirecting oil companies' dollar purchases and levying cash reserve requirements. The impact of these measures has raised uncertainties in the financial markets.
India's net direct tax collections rise 13.21% to Rs 13.38 lakh crore till October 14 of FY27
India’s net direct tax collections rose 13.21% year-on-year to Rs 13.38 lakh crore as of October 14 in FY27, while gross collections increased 14.89% to Rs 16.03 lakh crore. Refunds rose 24.22% to Rs 2.65 lakh crore. Net corporate tax, non-corporate tax and Securities Transaction Tax collections also increased.
CBDT nudges 12,000 tax professionals to file pending audit reports
CBDT has launched the SAKSHAM NUDGE campaign aimed at tax professionals to encourage timely filing of tax audit reports. The campaign targets those who filed fewer than 50% of their reports in the previous financial year. Messages were sent via SMS and email, urging quick compliance ahead of the new deadline. The deadline for submitting tax audit reports is extended to October 21, accommodating pending submissions. With over 19.
Centre set to cross Rs 80000 cr disinvestment target for first time since FY19 after IDBI Bank stake sale
The Indian government is expected to surpass its budgeted disinvestment target of Rs 80,000 crore for FY27. A significant contributor will be the strategic sale of IDBI Bank, which is valued at over Rs 52,878 crore. This sale includes the government's 30.48% stake alongside LIC's 30.24% stake in the bank. The total proceeds from various minority stake sales have already reached Rs 55,757 crore.
India's ultra-short-term borrowing costs spike; premium over policy rate hits 4-year high
India's 182-day and 364-day treasury bill yields climbed to 18-month highs at Wednesday's auction, while premiums over the RBI's 5.5% repo rate reached their highest levels since November 2022. Investors are factoring in further monetary tightening following the central bank's recent rate hike and hawkish guidance, market participants said.
Scindia calls for faster tailored credit flow to Northeastern states at bankers' conclave
During a recent gathering at Mizoram University, Union minister Jyotiraditya Scindia urged financial institutions to provide credit solutions that address the specific needs of the Northeast region. He criticized generic banking products as insufficient, emphasizing customization for each state. Mizoram Chief Minister Lalduhoma shared initiatives requiring investment, hinting at potential economic drivers for the area that could facilitate sustained growth and enhance public welfare.
Rupee volatility in focus as Sitharaman signals more RBI action, weighs LTCG tax debate
Finance Minister Nirmala Sitharaman said the RBI may take further measures to curb rupee volatility, clarifying that its aim is to stabilise the currency rather than fix its value. The rupee recorded its biggest single-day gain in six months on Monday after the central bank introduced curbs to reduce dollar demand and intervened in the market by selling dollars.
SBI Research calls for abolition of LTCG tax on equities to boost foreign capital inflows
According to SBI Research, removing the long-term capital gains tax on equities could revitalize investment levels. The report emphasizes extending the holding period to two to three years as a strategy to boost investor morale. Faced with foreign portfolio outflows, the need for policy reforms is clear.
India draws $351 billion in greenfield FDI, outpaces China
Speaking to ET, Nikolaus Lang, managing director & senior partner at BCG highlighted the Indian market as the biggest draw for investors amid a sweeping global realignment. He, however, stressed on sustained focus on infrastructure development, skilling and cost competitiveness for India to further enhance its manufacturing footprint on a global scale.
RBI steps in to support rupee as currency nears record low; tightens forex rules
The Reserve Bank of India has announced new measures aimed at stabilizing the rupee's value in foreign exchange markets. These measures include tightening foreign exchange derivative norms and creating a special window for oil marketing companies. By implementing a cash reserve requirement for large forex derivatives, the central bank seeks to curb speculative dollar demand. The impact of these interventions is expected to affect the rupee's value and forward premiums.
RBI's first big liquidity mop-up after rate hike falls short as banks park less than half the target
In a bid to manage liquidity, the Reserve Bank of India executed a 29-day variable rate reverse repo auction, yet banks only stashed away Rs 79,655 crore instead of the anticipated Rs 2 lakh crore. Early fund withdrawal was permitted, but participation remained tepid, mostly because of the daily VRRR options available. The existing inter-bank surplus liquidity sits at Rs 4.24 lakh crore, highlighting ongoing hurdles in monetary transmission.
GST Council meet starts with focus on ease of doing business, ITC overhaul and decriminalisation on agenda
The 57th GST Council meeting is set to consider major GST 2.0 reforms, including wider input tax credit eligibility, protection for genuine buyers from supplier defaults, faster refunds, simpler GST registration and MSME compliance relief. Proposed changes also include removing GST arrest provisions, raising the prosecution threshold, easing export rules and targeted rate tweaks across sectors.