Breaking News - 10th August 2023

Financial News 10th August 2023 

1.You may soon be able to make UPI payments by talking or just tapping phone:

RBI governor Shaktikanta Das in the MPC decision announcement on Thursday, proposed to enable 'conversational' payments on UPI using AI. 

While announcing the monetary policy committee's decision to keep the repo rate unchanged, the governor of the Reserve Bank of India (RBI), Shaktikanta Das, proposed to enable "Conversational Payments" on UPI. 

This feature will not only enable retail digital payments in situations where internet/telecom connectivity is weak or not available, but it will also ensure speed, with minimal transaction declines. 

2.RBI Policy: With unanimous vote, MPC keeps repo rate unchanged at 6.5%:

A revised retail inflation projection for FY24 at 5.4 per cent from 5.1 per cent earlier

The repo rate stands at 6.5 per cent. Since 2022, the repo rate has been hiked by 250 basis points. 

The monetary policy transmission is still underway as headline inflation remains higher than the 4 per cent target. 

3. Finance ministry cautions people against 'matrimonial dating scam:

The Ministry of Finance said that customs will never call or send a text message asking people to pay customs duty through a personal bank account. 

The ministry stated that all communication from the Indian customs contains a document identification number (DIN) which can be verified on the official site of the Central Board of Indirect Taxes and Customs (CBIC). 

4.RBI may tighten cash conditions, but it's unlikely to hike CRR:

The banking system liquidity surplus has averaged around Rs 2.5 trillion ($30.19 billion) in August, up from Rs 1.6 trillion in July. 

To reduce this on a durable basis, the RBI could raise the cash reserve ratio (CRR) for banks from the current 4.5%. 

5.Protean, PayNearby partner for providing credit services on ONDC network:

The marketplace will also allow for easy discovery of various lending products at affordable pricing 

Protean will be an ONDC technology service provider in the partnership through PayNearby's Distribution as a Service (DaaS) network through over 12 lakh active PayNearby outlets. 

6.RBI seeks greater transparency in floating interest rates of retail loans:

As policy interest rates rise, lenders pass on the burden to customers by either raising their monthly payments or increasing the tenor of their loan. 

The central bank said it found "several" instances of "unreasonable elongation of tenor" of floating rate loans by lenders without proper consent and communication to the borrowers. 

7.Banks to maintain 10% additional CRR from Aug 12 as temporary measure:

Action is part of central bank's efforts to reduce surplus liquidity. 

Banks have to maintain a 10 per cent additional cash reserve ratio (CRR) from August 12, said Reserve Bank of India governor Shaktikanta Das on Thursday. The action is part of the central bank's efforts to reduce surplus liquidity. 

8.Tomato woes: MPC pegs inflation at over 6 per cent in current quarter:

Inflation unlikely to fall to 4% target even in Q1 FY25; GDP growth projections kept intact. 

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has raised its projection for retail price inflation beyond its comfort zone of 6 per cent for this quarter of the current financial year. 

9.Axis Bank to raise stake in Max Life via Rs 1,612-cr investment:

Axis Bank in a stock exchange filing said the acquisitions, divestment and merger committee of its board has approved the proposal to infuse Rs 1,612 crore in Max Life through preferential allotment. 

10.Banks step up investment in digital infra:

Last year, around the March quarter, we had underwritten about Rs 20,000-odd crore (of loans through digital channels). This year, we have already underwritten about Rs 29,000 crore, so that is the kind of growth we are seeing.