Breaking News - 14th August 2023
1.India plans to seek its own rating, testing mechanism for DPIs, DPGs:
India is teaming up with others to make sure that important digital systems and services like CoWin, UPI, DigiLocker, and Diksha (which helps teachers) are officially approved, tested, and measured. Since these programs have been successful, the government wants to create a way to rate and test more of these kinds of digital systems and services.
2.Indian rupee falls, caught between dollar rally and likely RBI intervention:
On Monday, the value of the Indian rupee went down compared to the U.S. dollar, mainly because the dollar became stronger. However, it seems that the country's central bank stepped in to prevent the rupee from losing too much value.
At one point, the rupee was worth 82.9250 against the dollar, which is a bit lower than the 82.8450 it was worth on Friday. It dropped even further to 83.0725, but experts believe that the Reserve Bank of India (RBI) likely took action to stabilize the situation by selling some dollars.
At the same time, the U.S. dollar got stronger compared to other currencies in Asia, causing them to lose some of their value.
3.Bank of Maharashtra cuts home, car loan rates by upto 20 basis points:
Bank of Maharashtra has made some changes to how much it charges people who borrow money from them. If you're getting a home loan or a car loan from them, they're going to charge you a bit less interest, which means you might pay a bit less each month. These new rates will start on August 14, 2023.
On the other hand, if you're putting money into the bank, they might give you a bit more interest on certain types of accounts for a specific period of time.
This bank is based in Pune, and they say that for people who want to borrow money for a home, the new rate will be 8.5%, which is a bit lower than the old rate of 8.6%. If you're borrowing for a car, the new rate will be 8.7%, which is also lower than the old rate of 8.9%.
4.Weekend Bites: A week of pauses, pivots, profits, and big interviews:
People who watch the economy were thinking that the central bank might increase the interest rates by a small amount, like 0.25%. This was because the prices of things that people buy, like food and other stuff, went up a bit too much in January and February, which isn't so good for the economy.
But then, the central bank said that they decided not to increase the interest rates this time. This is the third time they've made this choice.
The Governor said that even though the prices of food and things went up a lot recently, they're not too worried about it. They also said that they expect prices to keep going up this year.
5.Total assets of IFSC banking units surge over 30% to $38.28 billion:
In their yearly report for the period from 2022 to 2023, an organization called IFSCA said that the amount of business happening in special banking units in the GIFT City has gone up a lot – it's now worth $258.59 billion.
Also, the total amount of money held by the banking units in this special place has grown by more than 30% compared to the year before. In the year 2022-23, it reached a total of $38.28 billion.
There were 20 special banking units operating in this place by March 31, which is more than the 15 that were there in the previous year. Additionally, two more of these special banking units were given permission to start, but they will begin working in the coming financial year.
6.Bank of Baroda, Canara Bank, BoM hike lending rates by up to 10 bps:
Several government-owned banks like Bank of Baroda and Canara Bank have decided to increase the interest rates they charge when they lend money to people. This change could make the monthly payments for loans, like home loans or car loans, a bit more expensive.
These banks are increasing something called 'MCLR', which is a type of interest rate that most people's loans are connected to. The specific increase is up to 10 basis points, which is a small amount.
For example, the rate that's usually used for loans that last for a year will now be 8.70%, while before it was 8.65%. This change was announced by Bank of Baroda in an official statement.
7.Rising credit-to-deposit ratio may pose problems for some banks:
The report revealed that the ratio of loans given out by government-owned banks compared to the money they have from deposits increased by 420 basis points (which is a small percentage) compared to the previous year. This ratio is now at 69.8% as of March 31.
When this ratio goes up, it might cause some issues for banks. They might need to borrow money at higher interest rates to have enough funds to give out loans to people who need them.
This situation is happening at the same time when the Reserve Bank of India (RBI) has said that banks need to keep more money in reserve (like a savings account) – specifically 10% more – which could make the overall money available in the banking system go down for a while.
8.Why RBI wants proper lending conduct:
When the cost of borrowing money from a bank goes up, the banks sometimes make the time you have to repay the loan longer instead of making your monthly payment higher. They do this without always telling you clearly or asking if it's okay with you.
Now, the Reserve Bank of India (RBI), which is like the boss of banks, wants to create a plan to make sure that when interest rates change for loans that can go up and down, there are clear rules about how they can change and that you know what's happening.
9.FDI in information and broadcasting sector surges 231% to Rs 3,745 crore in FY23:
The amount of money that comes from foreign investors into the information and broadcasting industry, which includes things like TV, radio, and newspapers, increased a lot. In the year FY23, this investment went up by 231% compared to the previous year, reaching Rs 3,745 crore from Rs 1,129 crore.
Especially in the last three months of that year, the investment from foreign sources doubled compared to the same time the year before, going from Rs 375 crore to Rs 820 crore.
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