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Yatheendradas C.k. at 10:55 PM - Aug 07, 2019 ( ) Views: 78

The RBI today cut the repo rate by 35 basis points taking in view the “current and evolving macroeconomic situation” with concerns over slowing growth. This takes the repo rate to 5.4% from 5.75%. The decision was taken at the third bi-monthly Monetary Policy Committee chaired by RBI Governor Shaktikanta Das. -Business Line

Banks have passed on only a little more than a third of the benefits they have accrued so far from the past 3 successive rates reductions of 75 bps by the RBI to the borrowers, governor Shaktikanta Das today said urging them to do more. -Economic Times

The RBI has decided to allow round- the-clock fund transfers through NEFT from December this year in order to promote digital transactions. The decision, the RBI said, “is expected to revolutionise the retail payments system of the country”. -Business Line

In a move that will help lower loan pricing in the unsecured consumer credit space, the RBI today reduced the risk weight for all consumer loans, barring credit cards, to 100% from the prevailing 125%. Under the standardised approach for credit risk management, all unsecured consumer credit, including personal loans
and credit card receivables, which are both unsecured lending, attract a higher risk weight of 125% or higher, if warranted by an external rating of the counterparty. -Economic Times

The RBI will create a Central Payment Fraud Registry to monitor digital payments related frauds on a real-time basis and provide customers with periodic aggregated data of risks associated with individual payments operators in a bid to improve customer confidence in these channels. -Economic Times

The RBI today said it will allow all categories of billers except prepaid recharges under the Bharat Bill Payment system (BBPS). The BBPS currently covers billers in 5 segments, DTH, electricity, gas, telecom and water bills. The regulator is expected to issue detailed instructions in this regard by the end of Sep 2019. -Economic Times

Within hours of a steeper 35 basis points reduction in the repo rates by the RBI to 5.4% in its fourth consecutive steps, the SBI announced a 15 basis points reduction in its lending rates, effective Aug10 across all tenors. The new 1-year MCLR will come down to 8.25% from  8.40% annum, the bank said in a statement. -Business Line

SBI Chairman Rajnish Kumar pointed out if loan rates have to come down, deposit rates cannot remain very high, adding SBI cannot afford to keep offering the existing deposit rates. The bank will review deposit rates in the next Asset Liability Committee meeting, he said. -Moneycontrol.com

DBS Bank India, which returned to profitability in 2018 -19, is now ready for growth, according to its CEO Surojit Shome. He said the bank will focus on  increasing its SME and consumer business and look at tripling its balance sheet in the next five years. -Business Line

Exuding confidence of getting the regulatory nod for merger with Lakshmi Vilas Bank in 2 months and the merged entity to be operational by next March, Indiabulls Housing Finance said. -Economic Times

AU Small Finance Bank has announced the rollout of their SB Account opening process initiated with WhatsApp. Using Karix’s platform, AU Bank’s interested customers will be able to initiate the
opening of their SB account using an interactive chat-like interface on WhatsApp. -Economic Times

Welcoming the 35 basis points policy interest rate cut by the RBI, EEPC India chairman, Ravi Sehgal said, "The central bank should also ensure easy credit disbursal to the exporters, especially in the MSME sector and real transmission by the banks of the earlier reductions in the lending rates." -Economic Times

The BSE Sensex slumped 286 points today after the RBI slashed the benchmark lending rate, but also lowered the growth estimate for the current FY amid a slowdown in demand and investments. -Business Line

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