BANKING

The Reserve Bank of India announced measures to inject ₹1 lakh crore into the banking system and conduct a dollar/rupee swap auction of $10 billion. These steps aim to address the liquidity deficit and ensure the smooth transmission of lower policy rates amid expected tax outflows.

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BANKING

Indian banks are collaborating with the international messaging system SWIFT to migrate to the ISO 20022 instant settlement system by November 25. Only four Indian banks have made partial transitions, prompting discussions for smoother transitions and potential deadline extensions. SWIFT encourages expedited adoption, with possible penalties for non-compliance after the global deadline.

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BANKING

The Reserve Bank of India has directed large finance companies to stop renewing lines of credit for businesses due to concerns over disguised borrower stress. This credit facility allows flexible fund withdrawals and delayed principal repayment, making NBFCs less capable of gauging borrowers' real-time cash flows.

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BANKING

The demand for credit among women in India has tripled between 2019 and 2024, with 60% coming from semi-urban and rural areas. Business and gold loans are popular. A report highlights women borrowers' growth and the financial inclusion need. Women under 30 account for 27% of retail credit, lower than men.

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BANKING

The Reserve Bank of India may need to cut the Cash Reserve Ratio to alleviate the current liquidity pressure in the banking sector, according to an SBI research report. The report suggests using CRR as a regulatory intervention tool rather than relying on it solely for liquidity. A CRR cut would help stabilize liquidity and ensure smoother financial operations.

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BANKING

Indian banks are unlikely to resume significant lending to non-bank lenders and microlenders immediately, despite recent regulatory relaxations by the Reserve Bank. Asset quality is a major concern, with non-performing assets in the microfinance sector reaching an all-time high of ₹50,000 crore as of December last year.

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BANKING

Women borrowers in India have increased at a compounded growth rate of 22% over the past five years, with a significant number from semi-urban and rural areas. Most loans are directed towards consumption rather than business use. Financial awareness and self-monitoring of credit scores have risen notably.

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BANKING

Health insurance premiums have increased significantly, making some policyholders downgrade or drop their coverage. Rising medical costs and age are key factors. Half of those facing a 30% or more increase paid the full amount. Policyholders are using new plan structures and cost-saving measures to manage expenses.

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BANKING

Rajeev Misra, former SoftBank executive, is planning a significant investment in the Shapoorji Pallonji Group through his venture One Investment Management and a consortium of global funds. The funds will help refinance the group's high-cost debt, leveraging their stake in Tata Sons.

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BANKING

Demand for loan collection agents has surged by over 30% in the past six months due to rising unsecured retail advances. TeamLease has recruited around 7,000 new agents for various financial institutions, with a focus on enhancing recovery efforts and integrating technology to improve collection rates.

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BANKING

The Bombay High Court raised concerns over the arbitrary process by banks declaring loan accounts as fraudulent without following proper RBI guidelines. Industrialist Anil Ambani was advised to lodge a complaint with the RBI after the Union Bank of India tagged his account as fraud without a prior hearing.

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