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RBI reduces interest rate by 25 basis points to 5.25% to boost economic growth, with inflation at historic low of 0.25% and Q2 GDP rising to 8.2%. Rate cut aims to make loans cheaper amid rupee depreciation.

RBI trims policy interest rate by 25bps to 5.25pc, loans to get cheaper

RBI reduces interest rate by 25 basis points to 5.25% to boost economic growth, with inflation at historic low of 0.25% and Q2 GDP rising to 8.2%. Rate cut aims to make loans cheaper amid rupee depreciation.

Shrugging off concerns over the depreciation of rupee, the RBI on Friday cut interest rate by 25 basis points to 5.25 per cent in a bid to further bolster economic growth, which rose to a six-quarter high of 8.2 per cent in the second quarter of the current financial year. 
The development is expected to make advances, including housing, auto and commercial loans cheaper. 
Announcing the fifth bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to cut the short-term lending rate or repo rate by 25 basis points to 5.25 per cent with a neutral stance. 
The rate cut comes on the back of the consumer price index (CPI) based headline retail inflation ruling below the 2 per cent lower band mandated by the government for the last three months. 
India's retail inflation dropped to a historic low of 0.25 per cent in October 2025, marking the lowest level since the Consumer Price Index (CPI) series was introduced.  
Besides, the Indian economy has clocked better-than-expected GDP growth of 8.2 per cent in the second quarter. However, the rupee declined to historic low and crossed 90 against a dollar earlier this week making imports costlier, raising fears of rise in inflation. 
Rupee has depreciated by about 5 per cent so far this year. The RBI has sharply raised growth projection to 7.3 per cent from earlier 6.8 per cent for the current financial year. 
The central bank has been tasked by the government to ensure that CPI- based retail inflation remains at 4 per cent with a margin of 2 per cent on either side. 
Based on the recommendation of the MPC, the RBI reduced the repo rate by 25 bps each in February and April, and 50 basis points in June amidst easing retail inflation. 
The retail inflation is trending below 4 per cent since February this year. It eased to historic low in October, aided by an easing of food prices and favourable base effect.

RBI approves the extension of Sandeep Batra's term as Executive Director at ICICI Bank for two more years, effective December 2025, pending shareholder approval.

RBI approves ED Term Extension of Sandeep Batra of ICICI Bank

The RBI has extended Sandeep Batra's role as Executive Director at ICICI Bank for two additional years, effective December 2025. Shareholder approval will be sought soon.

ICICI Bank's Sandeep Batra gets RBI nod for a two-year ED term extension, effective December 2025, subject to shareholder approval.

The Reserve Bank on Monday approved the extension of the term of Sandeep Batra as executive director (ED) of ICICI Bank for two years.
RBI has, vide its letter dated June 16, 2025, approved the re-appointment of Batra as ED of the bank from December 23, 2025, to December 22, 2027, ICICI Bank said in a regulatory filing.
The approval of the shareholders for the re-appointment will be sought in due course of time, it said.
Batra has been responsible for Corporate Centre since July 2018. He is responsible for Corporate Communications, Finance, Human Resources, Legal, Customer Service &amp; Secretarial Groups.
He is also administratively responsible for risk function, internal audit and compliance groups, as per the ICICI Bank annual report for FY24.

IndusInd Bank shares increased by 2.50% after the RBI commended the bank's handling of recent challenges. The resignation of its CEO marked a key accountability step during a period of financial turbulence and regulatory adherence.

IndusInd Bank Shares Surge Amid Positive RBI Remarks

Following RBI Governor Sanjay Malhotra's remarks, IndusInd Bank shares rose 2.50%. Resignation of CEO seen as accountability step amidst financial challenges and pressure from microloan exposures. Regulatory adherence affirmed by RBI.

IndusInd Bank shares rose by 2.50% after positive remarks from RBI's Sanjay Malhotra. He called the resignation of the MD and CEO a step in accountability.

Shares of IndusInd Bank on Friday climbed 2.50 per cent after Reserve Bank Governor Sanjay Malhotra said the firm is "doing well" now, and added that the resignation of MD and CEO Sumant Kathpalia should be seen as a "good enough" step from an accountability perspective.
The stock advanced 2.50 per cent to settle at Rs 823.20 on the BSE. During the day, it jumped 5.32 per cent to Rs 845.85.
At the NSE, shares of the firm climbed 2.44 per cent to Rs 822.85.
The RBI also said the bank has complied with all the regulatory asks over the turbulent period.
"The MD and CEO of the bank resigned, owning moral responsibilities. So, I thought that should be good enough. Do you expect that all the board members (should resign)... I think the MD and CEO, who is also a member of the board... has taken responsibility, that is at the board level itself," Malhotra said.
The governor made it clear that the RBI will not shy away from taking any action against the bank and the law will take its own course if there are any criminalities in the matter.
IndusInd Bank has been witnessing challenges for the last few quarters, starting with its microloan exposures and then conceding accounting lapses. It recorded the worst quarterly performance in its history by posting a Rs 2,329-crore loss in the March quarter, as it took the brunt of all the accounting lapses and oversights.
"I think the bank has taken enough number of steps to improve their accounting and other practices, and on the whole, I think it is doing well," Malhotra told reporters at the RBI headquarters in Mumbai.

RBI's policy shift focuses on growth and inflation, adopting a 'neutral' stance with surprising rate and CRR cuts.

RBIs Growth, Inflation Focus in Policy Shift

Governor Malhotra emphasizes India's growth and inflation trajectory in its monetary policy, adopting a 'neutral' stance with new rate and CRR cuts.

RBI Governor Malhotra outlines economic growth and inflation as core policy drivers, with a 'neutral' stance and rate cuts.

Reserve Bank Governor Sanjay Malhotra on Friday said the future monetary policy actions will be decided by the trajectory of growth and inflation.
If the RBI's expectation of 6.5 per cent real GDP growth and inflation cooling to 3.7 per cent in FY26 plays out, there is "little space" for interest rate cut.
Speaking to reporters here, he also spelled out that the aspirational growth rate for India is 7-8 per cent per annum.
Earlier in the day, the six-member monetary policy committee voted 5:1 in favour of a surprising 50 basis points cut in repo rate. Malhotra also announced a 1 percentage point decrease in cash reserve ratio, or the share of deposits parked with RBI by banks. He also announced a shift in the stance of the monetary policy from 'accommodative' to 'neutral'.
"Neutral will mean that it (rate calls) can go either ways. It will depend on how the data comes in. If the growth is weaker, it can mean that it will go down. If the growth is good, inflation is going up, it can mean that the repo rate can go up. It will depend on how the data both on inflation and growth turns out," Malhotra said.
He said the monetary policy will surely help accelerate the credit growth and help in the broader economic growth.
When asked if he expects the government to shoulder the GDP growth responsibility from here on, the RBI Governor made it clear that there is not much of firepower available with the RBI and it is for other stakeholders to do their bit to push growth.
Malhotra said there is a need for the transmission to get faster in the economy, underlining that the process has been better this time than in the past instances.
He said as against two rate cuts of 0.25 per cent each, the bank deposit rates have come down by 0.27 per cent, outstanding credit by 0.17 per cent. He however conceded that the growth rate of fresh loans is a little slow at 0.06 per cent.
One of the motives of frontloading the rate cuts and coupling it with a CRR reduction is to hasten the transmission, he said.
Malhotra said there was no voting on the stance, but the matter was discussed over the three days of deliberations and all the six members of the rate setting panel were for it.
He said the reason for changing the stance to 'neutral' now is because it was felt that there is no further room to cut rates, and the same had to be conveyed to all stakeholders and provide a certainty.
"Certainty will strengthen the economy," Malhotra said.
On the CRR cut, he said past experience suggests that "we do not need the liquidity buffer at 4 per cent and 3 per cent in the current circumstances is comfortable." He said the call rate is going to stay at 5.25 per cent and will go down if the RBI undertakes Variable Rate Reverse Repo rate (VRRR) auctions.

RBI Governor lauds IndusInd Bank’s significant recovery efforts post-fraud scandal, emphasizing MD and CEO’s accountability. Stock rises after Governor's positive outlook.

RBI Praises IndusInd Banks Post-Fraud Recovery

IndusInd Bank's recovery praised by RBI post-fraud scandal. Key accountability seen in CEO's resignation. Bank strengthens operations, boosting investor confidence.

RBI Governor Sanjay Malhotra applauds IndusInd Bank&rsquo;s recovery efforts following a fraud scandal. The resignation of MD and CEO is a key accountability measure. Compliance, enhanced practices, and continued investigations restore investor confidence.

Reserve Bank Governor Sanjay Malhotra on Friday said fraud-hit IndusInd Bank is "doing well" now, and added that the resignation of MD and CEO Sumant Kathpalia should be seen as a "good enough" step from an accountability perspective.
The RBI also said the bank has complied with all the regulatory asks over the turbulent period.
"The MD and CEO of the bank resigned, owning moral responsibilities. So, I thought that should be good enough. Do you expect that all the board members should resign)... I think the MD and CEO, who is also a member of the board... has taken responsibility, that is at the board level itself," Malhotra said.
The governor made it clear that RBI will not shy away from taking any action against the bank, and the law will take its own course if there are any criminalities in the matter.
IndusInd Bank has been witnessing challenges for the last few quarters, starting with its microloan exposures and then conceding accounting lapses. It recorded the worst quarterly performance in its history by posting a Rs 2,329 crore loss in Q4FY25, as it took the brunt of all the accounting lapses and oversights.
"I think the bank has taken enough number of steps to improve their accounting and other practices, and on the whole, I think it is doing well," Malhotra told reporters at the RBI headquarters here.
Stressing that the banking system is very robust, Malhotra said while such episodes happen, they should not bother us too much till they are fewer in number.
Deputy Governor Swaminathan J said that IndusInd Bank, now under a transitory management, has delivered on all the regulatory asks over the past few months.
The Hindujas-promoted private sector lender took on board all the accounting discrepancies, held a forensic audit to fix responsibility, ensured that none of the customers or the broader banking system was impacted, and is also working on a succession plan, the DG said.
Swaminathan said there are a lot of learnings for the RBI from the crisis and added that it will look for red flags in the future so that it is able to anticipate a crisis much earlier.
The IndusInd Bank scrip gained 2.50 percent to close at Rs 823.30 apiece on the BSE, as against a 0.92 percent gain on the benchmark following the RBI comments.

RBI announces a 1% cut in CRR, adding ₹2.5 lakh crore liquidity to boost lending and economic growth, set for completion by November 2025.

RBI Cuts CRR to Infuse ₹250000 Crore Liquidity

RBI cuts CRR by 1%, unlocking ₹2.5 lakh crore in liquidity to boost lending levels and stimulate economic growth, finalizing by November 2025.

RBI cuts CRR by 1%, infusing ₹2.5 lakh crore liquidity to boost lending and stimulate economic growth, completing by Nov 2025.

Reserve Bank on Friday decided to cut Cash Reserve Ratio (CRR) by a huge 1 per cent, which will unlock Rs 2.5 lakh crore liquidity to the banking system for lending to productive sectors of the economy.
With the reduction in four equal tranches ending November 29, 2025, the CRR would come down to 3 per cent. This means that the commercial banks would have to maintain a lower level of 3 per cent in liquid cash form with the RBI allowing them to have higher funds for lending.
"The Reserve Bank remains committed to providing sufficient liquidity to the banking system. To further provide durable liquidity, it has been decided to reduce the cash reserve ratio (CRR) by 100 basis points (bps) to 3 per cent of net demand and time liabilities (NDTL) in a staggered manner during the course of the year," RBI Governor Sanjay Malhotra said, while announcing the bi-monthly MPC outcome.
This reduction will be carried out in four equal tranches of 25 bps each with effect from the fortnights beginning September 6, October 4, November 1 and November 29, 2025, he said.
"The cut in CRR would release primary liquidity of about Rs 2.5 lakh crore to the banking system by December 2025. Besides providing durable liquidity, it will reduce the cost of funding of the banks, thereby helping in monetary policy transmission to the credit market," he said.
Higher credit flow will help in boosting economic growth which hit a four-year low of 6.5 per cent in FY'25.
"I would like to reiterate that we will continue to monitor the evolving liquidity and financial market conditions and proactively take further measures, as warranted," he said.
RBI had last slashed CRR by 50 basis points to 4 per cent in the December 2024 MPC announcement. It was done in two equal tranches of 25 basis points, each with effect from the fortnight beginning December 14, 2024 and December 28, 2024.
The move led to the unlocking of Rs 1.16 lakh crore to the banking system and easing the liquidity situation.
The RBI on May 4, 2022 had raised CRR to 4.5 per cent from 4 per cent in an off-cycle Monetary Policy Committee (MPC) meeting, with effect from May 21 the same year.
RBI, however, did not tinker with Statutory Liquidity Ratio (SLR) and maintained it at 18 per cent.
SLR is a regulatory requirement that requires banks to hold 18 per cent of total deposits or net demand and time liabilities (NDTL) in government securities. This ensures that banks have sufficient liquidity to meet customer withdrawal demands and maintain financial stability.
On the liquidity situation, Malhotra said, a total amount of Rs 9.5 lakh crore of durable funds has been injected into the banking system since January.
As a result, after remaining in deficit since mid-December, liquidity conditions transitioned to surplus at the end of March.
This is also evident from the tepid response to daily Variable Repo Rate (VRR) auctions and high Standing Deposit Facility (SDF) balances &ndash; the average daily balance during April-May amounted to Rs 2 lakh crore.
Reflecting the improvement in liquidity conditions, the weighted average call rate (WACR) &ndash; the operating target of monetary policy &ndash; traded at the lower end of the LAF corridor since the last policy, he said.
The comfortable liquidity surplus in the banking system has further reinforced transmission of policy repo rate cuts to short term rates, he said.
"However, we are yet to see a perceptible transmission in the credit market segment, though we must keep in mind that it happens with some lag," he said.

The RBI has slashed key interest rate by 25 basis points, for the second time in a row, to support a shuttering economy hit by reciprocal tariffs imposed by the US.

RBI cuts policy rate by 25 bps to 6 per cent for the second time in a row

The RBI on Wednesday slashed key interest rate by 25 basis points, for the second time in a row, to support a shuttering economy hit by reciprocal tariffs imposed by the US.

The RBI on Wednesday slashed key interest rate by 25 basis points, for the second time in a row, to support a shuttering economy hit by reciprocal tariffs imposed by the US.
Following the rate cut, the key policy rate eased to 6 per cent providing relief to home, auto and corporate loan borrowers. In its last policy in February, RBI had trimmed repo rate by 25 basis points to 6.25 per cent. This rate came after previous rate reduction in May 2020.
The last revision of rates happened in February 2023 when the policy rate was hiked by 25 basis points to 6.5 per cent.
&nbsp;
<blockquote class="twitter-tweet">
Monetary Policy Report (MPR) &ndash; English<a href="https://t.co/fXawdOGc34">https://t.co/fXawdOGc34</a>
&mdash; ReserveBankOfIndia (@RBI) <a href="https://twitter.com/RBI/status/1909834873872785411?ref_src=twsrc%5Etfw">April 9, 2025</a></blockquote>
&nbsp;
&nbsp;
The Monetary Policy Committee (MPC) unanimously decided to slash the policy rate by 25 basis points to 6.25 per cent, RBI Governor Sanjay Malhotra said.
RBI has lowered the GDP growth forecast to 6.5 per cent from earlier projection of 6.7 per cent due to global uncertainties.
Last week, US President Donald Trump had announced a hefty 26 per cent reciprocal tariffs on Indian imports, effective April 9.

Seize the chance to optimize home loan repayments with reduced interest rates and tax savings. Increase EMIs and use tax cuts for debt reduction effectively.

RBI Rate Cut & Tax Savings Aid Home Loan Borrowers

Increase your EMI by Rs 5,000 to save more than Rs 26 Lakh in home loan interest

Seize the chance to optimize home loan repayments with reduced interest rates and tax savings. Increase EMIs and use tax cuts for debt reduction effectively.

Starting April 2025, expect more cash flow due to the significant income tax cuts announced by Finance Minister Nirmala Sitharaman in the Union Budget for 2025-26, complemented by potential salary increments and performance bonuses.
This is an opportune moment to strategize financially-by reducing liabilities and increasing investments. Vipul Patel, Founder of Mortgageworld.in, underscores the importance of reducing the interest burden for home loan borrowers, as even slight adjustments can yield significant savings.
The Reserve Bank of India's (RBI) recent 25 basis point cut in the repo rate on February 7 presents an opportunity for home loan borrowers to benefit from reduced interest rates.
While it's tempting to opt for lower EMIs, maintaining the current installment amounts can significantly reduce the tenure instead. As explained by Adhil Shetty, CEO of BankBazaar.com, retaining the EMI with a decreased interest rate- such as a reduction from 8.5% to 8.25%&mdash;could save Rs 8,114 per lakh on a loan compared to only Rs 3,472 by lowering the EMI. This benefits borrowers through a 133% higher saving via tenure adjustment versus EMI reduction.
It's also advisable to proactively increase EMIs. Borrowers have the flexibility to choose higher EMIs, extend loan tenure, or adopt a combination when rates increase, as mandated by the RBI. In a declining rate environment, increasing EMIs or making part-prepayments can be financially beneficial.
Patel suggests that a borrower could increase their EMI by Rs 5,000, which would reduce a 25-year loan tenure to just over 17 years, assuming a Rs 50 lakh loan at an interest rate reduced from 8.5% to 8.25% post-repo reduction. Furthermore, the new tax regime can save individuals with a Rs 25 lakh gross salary approximately Rs 1.14 lakh annually&mdash;savings that could be directed towards an EMI increase for faster debt elimination.
Moreover, the annual bonus season in April aligns with these strategic financial moves. Using yearly bonuses for part-prepayments can effectively reduce the principal amount and the tenure by five additional months, as Patel outlines. Combining an EMI increase with a one-time Rs 50,000 prepayment could result in paying off the home loan with 97 fewer EMIs.
Strategically employing part-prepayments systematically rather than sporadically is crucial. Establishing a targeted timeline for debt repayment is beneficial. Shetty advises aiming to repay 10% of the loan balance annually through EMIs and prepayments, using an updated amortization schedule to guide this financial plan.

Indian stock markets closed lower as Sensex and Nifty declined amid RBI’s rate cut announcement and profit booking. FIIs continued offloading equities, impacting investor sentiment.

Markets settle lower after RBI policy; continuous foreign fund outflows dent investors' sentiment

Indian stock markets closed lower as Sensex and Nifty declined amid RBI&rsquo;s rate cut announcement and profit booking. FIIs continued offloading equities, impacting investor sentiment.

Equity benchmark indices Sensex and Nifty ended lower on Friday (February 7, 2025) as the RBI&rsquo;s rate cut did not spring any major surprise for the markets and investors turned to profit-taking amid foreign fund outflows.
Registering its third day of decline, the 30-share BSE benchmark Sensex dropped 197.97 points or 0.25% to settle at 77,860.19, in a volatile trade. During the day, it lost 582.42 points or 0.74% to 77,475.74.
The NSE Nifty declined 43.40 points or 0.18% to 23,559.95.
ALSO READ: <a href="https://www.editorji.com/business-news/rbi-cuts-policy-rate-by-25-bps-to-6-25-pc-first-reduction-in-five-years-1738911995651" target="_blank">RBI cuts policy rate by 25 bps to 6.25 pc, first reduction in five years</a>
From the 30-share blue-chip pack, the stock of ITC dipped over 2% after the diversified entity reported a 7.27% decline in consolidated net profit to ₹5,013.16 crore for the December quarter on account of subdued demand and sharp escalation in input costs.
State Bank of India, Adani Ports, Tata Consultancy Services, ICICI Bank, Reliance Industries and PowerGrid were also among the laggards.
&ldquo;As the rate cut did not spring any major surprise, investors did not find anything interesting in the new RBI governor&rsquo;s comments which resulted in a steady bout of profit-taking in banking, oil &amp; gas, FMCG and power stocks. The ongoing earnings have been mixed to subdued while relentless selling of domestic shares by the FIIs have prompted investors to maintain caution,&rdquo; Prashanth Tapse, Senior VP (Research), Mehta Equities Limited, said.
Among the gainers, Tata Steel jumped over 4%.
Bharti Airtel's stock surged nearly 4% after the firm reported a more than five-fold jump in consolidated net profit to ₹16,134.6 crore boosted by consolidation of the Indus Tower business and benefits of tariff hikes flowing into the quarter.
Zomato, Mahindra &amp; Mahindra, UltraTech Cement and Tech Mahindra were also the other gainers.
Some stocks from interest rate sensitive realty and auto pack ended in the positive territory.
&ldquo;A rate cut aimed at reviving the slowing economy is a positive indicator. However, yields edged higher as investors were disappointed by the absence of anticipated liquidity measures, leading to profit-booking in the indices. Additionally, a downward revision in the near-term growth forecast, influenced by global trade policies and inflation concerns, suggests that the central bank will adopt a cautious and gradual approach to future rate adjustments.
&ldquo;While the broader market underperformed, the metals sector gained traction amid expectations of increase in demand,&rdquo; Vinod Nair, Head of Research, Geojit Financial Services, said.
Home, auto and other loans are likely to see a drop in interest rates after the Reserve Bank of India under a new governor cut the key benchmark rate on Friday (February 7, 2025) for the first time in almost five years to spur a sluggish economy.
The Monetary Policy Committee, headed by RBI Governor Sanjay Malhotra, slashed the repo rate by 25 basis points to 6.25%. This was the first reduction since May 2020 and the first revision after two-and-a-half years.
Mr. Malhotra, a career bureaucrat who replaced Shaktikanta Das barely days after the last bi-monthly MPC meeting in December, forecast the Indian economy to grow at 6.7% in the fiscal year starting April 2025 while inflation rate to lower to 4.2%.
ALSO READ: <a href="https://www.editorji.com/business-news/economy/rbi-projects-fy26-inflation-at-4-2-pc-down-from-4-8-pc-estimate-in-2024-25-1738912742906" target="_blank">RBI projects FY26 inflation at 4.2 pc, down from 4.8 pc estimate in 2024-25</a>
For the fiscal year ending March 31, RBI quoted the government estimate to put the growth rate at 6.4%, its worst in four years and lower than 6.6% seen previously, while the inflation was pegged at 4.8%.
Repo rate also decides the returns on savings and investment products. A higher repo rate can lead to better returns on fixed deposits and other savings instruments, as banks offer higher interest rates to attract deposits. On the flip side, lower repo rates might reduce the interest earned on these savings products.
ALSO READ: <a href="https://www.editorji.com/business-news/economy/rbi-raises-gdp-growth-forecast-to-6-7-for-2025-26-inflation-expected-to-ease-1738914707815" target="_blank">RBI raises GDP growth forecast to 6.7% for 2025-26, inflation expected to ease</a>
In Asian markets, Seoul and Tokyo settled lower while Shanghai and Hong Kong ended in the positive territory.
European markets were trading mostly lower. U.S. markets ended mostly higher on Thursday (February 6, 2025).
Global oil benchmark Brent crude climbed 0.73% to $74.83 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,549.95 crore on Thursday (February 6, 2025), according to exchange data.
On Thursday (February 6, 2025), the BSE bellwether gauge dropped 213.12 points or 0.27% to settle at 78,058.16. The Nifty declined 92.95 points or 0.39% to 23,603.35.
ALSO READ: <a href="https://www.editorji.com/business-news/rbi-launches-exclusive-bank-in-domain-to-curb-financial-frauds-enhances-digital-security-measures-1738915408506" target="_blank">RBI launches exclusive '.bank.in' domain to curb financial frauds, enhances digital security measures</a>

The Reserve Bank of India (RBI) has revised the GDP growth forecast for 2025-26 to 6.7%, citing strong rabi crop output and an industrial recovery. Inflation is projected to moderate to 4.2%, with risks evenly balanced.

RBI raises GDP growth forecast to 6.7% for 2025-26, inflation expected to ease

The Reserve Bank of India (RBI) has revised the GDP growth forecast for 2025-26 to 6.7%, citing strong rabi crop output and an industrial recovery. Inflation is projected to moderate to 4.2%, with risks evenly balanced.

The Reserve Bank of India (RBI) on Friday revised its real GDP growth forecast for 2025-26 to 6.7%, citing strong rabi crop output and a revival in industrial activity as key factors driving economic expansion.
Additionally, the central bank expects CPI inflation to moderate to 4.4% in the final quarter of the current fiscal year and decline further to 4.2% in 2025-26.
RBI Governor Sanjay Malhotra stated, "Looking ahead, healthy rabi prospects and an expected recovery in industrial activity should support economic growth in 2025-26."
&nbsp;
<blockquote class="twitter-tweet">
<a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a> | Making a statement on Monetary Policy, RBI Governor Sanjay Malhotra says, "RBI has estimated that real GDP growth for the next year to be at about 6.7%...." (Source - RBI) <a href="https://t.co/SsY1DknMM4">pic.twitter.com/SsY1DknMM4</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/1887726890431209790?ref_src=twsrc%5Etfw">February 7, 2025</a></blockquote>
&nbsp;
&nbsp;
He also emphasized the role of domestic demand in sustaining growth. "Among the key drivers on the demand side, household consumption is expected to remain robust, aided by the tax relief in the Union Budget 2025-26," Malhotra noted.
Regarding investments, he highlighted improving conditions in key sectors. &ldquo;Fixed investment is expected to recover, supported by higher capacity utilization levels, healthy balance sheets of financial institutions and corporates, and the Government&rsquo;s continued emphasis on capital expenditure,&rdquo; Malhotra said during his post-Monetary Policy Committee (MPC) address.
However, he cautioned that global uncertainties and climate risks remain potential threats to economic growth.
<h3>GDP Growth Projection for 2025-26:</h3>
<ul>
<li>Q1: 6.7%</li>
<li>Q2: 7.0%</li>
<li>Q3 &amp; Q4: 6.5% each</li>
<li>Overall Growth: 6.7% (with balanced risks)</li>
</ul>
In December, the RBI had revised its GDP growth forecast to 6.6% from 7.2%, reflecting ongoing global economic challenges.
Malhotra acknowledged that the global economy remains under pressure, even as trade activity shows resilience. He pointed to slower disinflation, geopolitical uncertainties, and policy unpredictability as major hurdles.
Additionally, he highlighted the impact of the strong US dollar on emerging market currencies, including the depreciation of the Indian rupee, stating that the RBI is actively monitoring and stabilizing the currency.
On the domestic front, Malhotra referred to First Advance Estimates, which peg India's real GDP growth at 6.4% for 2024-25, driven by private consumption, a strong services sector, and an agricultural recovery. However, weak industrial growth remains a challenge.
<h3>Inflation Outlook:</h3>
<ul>
<li>2024-25 CPI Inflation Projection: 4.8% (Q4: 4.4%)</li>
<li>2025-26 CPI Inflation Projection: 4.2%</li>
<li>Q1: 4.5%</li>
<li>Q2: 4.0%</li>
<li>Q3: 3.8%</li>
<li>Q4: 4.2%</li>
</ul>
Malhotra noted that headline inflation softened in November-December 2024, following its 6.2% peak in October, mainly due to a decline in food inflation, particularly vegetable prices.
Going forward, food inflation is expected to ease further, supported by a good kharif harvest, lower winter vegetable prices, and favorable rabi crop conditions. Core inflation is anticipated to rise slightly but remain moderate.
However, global financial instability, volatile energy prices, and extreme weather events continue to pose risks to the inflation trajectory.
Meanwhile, the RBI Monetary Policy Committee (MPC) has decided to reduce the policy repo rate by 25 basis points (bps) from 6.5 per cent to 6.25 per cent, marking the first rate cut since May 2020.
ALSO READ: <a href="https://www.editorji.com/business-news/rbi-cuts-policy-rate-by-25-bps-to-6-25-pc-first-reduction-in-five-years-1738911995651" target="_blank">RBI cuts policy rate by 25 bps to 6.25 pc, first reduction in five years</a>
The central bank also projected the retail inflation at 4.2 per cent for next financial year beginning April while retaining the forecast for 2024-25 at 4.8 per cent.
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The Reserve Bank of India launches the ".bank.in" domain to prevent financial fraud, enhances authentication for digital payments, and expands access to government securities, ensuring a secure and efficient financial ecosystem.

RBI launches exclusive '.bank.in' domain to curb financial frauds, enhances digital security measures

The Reserve Bank of India launches the ".bank.in" domain to prevent financial fraud, enhances authentication for digital payments, and expands access to government securities, ensuring a secure and efficient financial ecosystem.

RBI Governor Sanjay Malhotra, while unveiling the Monetary Policy on Friday, introduced an exclusive ".bank.in" internet domain for Indian banks to curb financial fraud.
He also announced stricter authentication protocols for digital transactions to enhance security in the banking system.
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<blockquote class="twitter-tweet">
<a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a> | Making a statement on Monetary Policy, RBI Governor Sanjay Malhotra says, "Reserve Bank has been taking various measures to enhance digital security in the banking and payments system. The introduction of an additional factor of authentication for digital payments is one&hellip; <a href="https://t.co/gNCkc4U0gh">pic.twitter.com/gNCkc4U0gh</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/1887730330507047028?ref_src=twsrc%5Etfw">February 7, 2025</a></blockquote>
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<h3>Launch of Exclusive Banking Domain</h3>
Malhotra stated, "The Reserve Bank shall implement the bank.in exclusive Internet domain for Indian banks." This initiative, set to be implemented from April 2025, aims to help customers distinguish legitimate banking websites from fraudulent ones.
Additionally, a separate ".fin.in" domain will be introduced for the broader financial sector.
<h3>Tackling Digital Fraud with Stronger Authentication</h3>
Expressing concerns over rising digital fraud cases, Malhotra emphasized the need for collective action.
"The surge in digital fraud is a matter of concern. It warrants action by all stakeholders. The Reserve Bank has been taking various measures to enhance digital security in the banking and payment system," he said.
To further strengthen security, the RBI has extended additional authentication measures to online international transactions made to offshore merchants.
Malhotra added, "The introduction of an additional factor of authentication for digital payments is one such measure. It is now proposed to extend this to online international digital payments made to offshore merchants who are enabled for such authentication."
This step ensures safer cross-border transactions and minimizes fraud risks.
<h3>Enhancing Risk Management and Market Participation</h3>
To help market participants manage interest rate risks effectively, the RBI will introduce a new forward contract for government securities. This will benefit long-term investors such as insurance funds, allowing more efficient pricing of derivatives linked to government securities.
In an effort to boost retail participation in government securities, the RBI will expand access to the NDS-OM platform, which facilitates secondary market trading of government bonds.
This move will allow non-bank brokers registered with SEBI to access the platform, deepening the bond market and increasing participation from non-bank financial entities.
<h3>Review of Market Trading and Settlement Timings</h3>
Acknowledging evolving market conditions, the RBI will establish a working group to conduct a comprehensive review of trading and settlement timings across five different RBI-regulated financial markets. The group, consisting of various market stakeholders, is expected to submit its report by April 30, 2025.
<h3>Stable Banking System and Liquidity Buffers</h3>
The credit-deposit ratio (CDR) of banks stood at 80.8% as of January 2025, remaining stable compared to September 2024. Malhotra reassured that liquidity buffers in banks remain adequate, with strong Return on Assets (RoA) and Return on Equity (RoE), despite a slight moderation in net interest margins.
He also confirmed that the financial system for Non-Banking Financial Companies (NBFCs) remains robust.

Shaktikanta Das ended his six-year tenure as RBI Governor, marked by effective handling of economic challenges. His leadership during the pandemic strengthened India's financial stability, leaving a lasting impact.

Shaktikanta Das Concludes Tenure as RBI Governor

Shaktikanta Das ended his six-year tenure as RBI Governor, marked by effective handling of economic challenges. His leadership during the pandemic strengthened India's financial stability, leaving a lasting impact.

Shaktikanta Das is stepping down as the 25th Governor of the Reserve Bank of India (RBI) after a six-year tenure, with Sanjay Malhotra, the current Revenue Secretary, set to succeed him as the 26th Governor.
&nbsp;
&nbsp;
<blockquote class="twitter-tweet">
Will demit office as Governor RBI later today. Thank you everyone for your support and good wishes.(1/5)
&mdash; Shaktikanta Das (@DasShaktikanta) <a href="https://twitter.com/DasShaktikanta/status/1866318590531510753?ref_src=twsrc%5Etfw">December 10, 2024</a></blockquote>
 
&nbsp;
In a message on the microblogging platform X, Das expressed his gratitude for the opportunity to serve the country. He thanked Prime Minister Narendra Modi for the trust and guidance he received throughout his term. 
<blockquote class="twitter-tweet">
Immensely grateful to the Hon&rsquo;ble PM <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@narendramodi</a> for giving me this opportunity to serve the country as Governor RBI and for his guidance and encouragement. Benefited a lot from his ideas and thoughts. (2/5)
&mdash; Shaktikanta Das (@DasShaktikanta) <a href="https://twitter.com/DasShaktikanta/status/1866318979628708315?ref_src=twsrc%5Etfw">December 10, 2024</a></blockquote>
 "I will demit office as Governor RBI later today. Thank you everyone for your support and good wishes. I&rsquo;m deeply grateful to PM @narendramodi for allowing me the chance to serve the nation and for his continuous guidance and encouragement," Das wrote. 
&nbsp;
&nbsp;
<blockquote class="twitter-tweet">
Heartfelt thanks to Hon&rsquo;ble FM <a href="https://twitter.com/nsitharaman?ref_src=twsrc%5Etfw">@nsitharaman</a> for her constant support and backing. The fiscal-monetary coordination was at its best and helped us to deal with the multiple challenges during the last six years. (3/5)
&mdash; Shaktikanta Das (@DasShaktikanta) <a href="https://twitter.com/DasShaktikanta/status/1866319259363578259?ref_src=twsrc%5Etfw">December 10, 2024</a></blockquote>
&nbsp;
Das also expressed appreciation for Finance Minister Nirmala Sitharaman, highlighting the crucial role of fiscal and monetary coordination during his tenure. "My heartfelt thanks to Hon&rsquo;ble FM @nsitharaman for her unwavering support. The fiscal-monetary coordination between us helped in overcoming multiple challenges in the past six years," he added.
&nbsp;
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<blockquote class="twitter-tweet">
I thank all the stakeholders in the financial sector and in the economy; experts and economists; industry bodies and associations; organisations in the agriculture,cooperative &amp; service sectors for their inputs and policy suggestions. (4/5)
&mdash; Shaktikanta Das (@DasShaktikanta) <a href="https://twitter.com/DasShaktikanta/status/1866320790611996873?ref_src=twsrc%5Etfw">December 10, 2024</a></blockquote>
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&nbsp;
<blockquote class="twitter-tweet">
A BIG thank you to the entire Team RBI. Together, we successfully navigated an exceptionally difficult period of unprecedented global shocks. May the RBI grow even taller as an institution of trust and credibility. My best wishes to each one of you. (5/5)
&mdash; Shaktikanta Das (@DasShaktikanta) <a href="https://twitter.com/DasShaktikanta/status/1866321083986542871?ref_src=twsrc%5Etfw">December 10, 2024</a></blockquote>
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Reflecting on his time at the helm of RBI, Das thanked his colleagues at the central bank for their collective efforts in navigating a difficult period. "A big thank you to Team RBI for successfully steering the institution through unprecedented global shocks. I wish RBI continued growth as a pillar of trust and credibility," he said.
Das&rsquo; leadership saw RBI through numerous significant events, including the aftermath of demonetization, the COVID-19 pandemic, and the challenges posed by global inflation, leaving a lasting impact on India&rsquo;s economic stability.

RBI Governor Shaktikanta Das announced that the central bank has decided to name its new technology platform for lending the Unified Lending Interface, or ULI

News Wrap | Nifty Above 25,000, RBI Guv Announces ULI, PhonePe Reports Profit | August 26, 2024

RBI Governor Shaktikanta Das announced that the central bank has decided to name its new technology platform for lending the Unified Lending Interface, or ULI

(Asian Markets: A Mixed Session) Let's start with the latest from the markets. It was a mixed session for most Asian equity markets amid rising tensions in the Middle East, with Israel and Hezbollah trading strikes. Investors also assessed the rate cut comments from US Fed Chief Jerome Powell&rsquo;s speech at the Jackson Hole symposium of central bankers. Hong Kong&rsquo;s Hang Seng gained one percent, and China&rsquo;s Shanghai Composite closed unchanged. Japan&rsquo;s Nikkei and Korea&rsquo;s KOSPI ended the day in the red.
(Indian Markets: Strong Gains) Back home, Indian equities started the week on a strong note. The Sensex and the Nifty gained three-fourths of a percent each, with the Nifty closing above the crucial 25,000 mark. Thirty-three out of fifty shares on the benchmark index gained in Monday&rsquo;s trade, while seventeen declined. Tech major HCL Tech surged more than four percent, hitting an intraday high of 1,734 rupees and closing just below that level.
(ULI) In the fintech space, RBI Governor Shaktikanta Das announced that the central bank has decided to name its new technology platform for lending the Unified Lending Interface, or ULI. The new platform will make the consent-based flow of information about borrowers, from data providers to lenders, seamless. The RBI Governor expressed confidence that the new platform will enable quicker credit appraisals, resulting in faster loan disbursals.
(PhonePe Group Reports Profit) In the startup space, Walmart-backed PhonePe Group has reported a consolidated net profit, excluding ESOP costs, of 197 crore rupees for the fiscal year 2023-24. That&rsquo;s a significant turnaround for the company, which had incurred a loss of 738 crore rupees in the previous fiscal. PhonePe Group&rsquo;s revenue also surged almost 74 percent year-on-year to over 5,000 crore rupees. During FY24, the group expanded into financial services as well as new consumer tech businesses such as Pincode and the Indus App Store.
(Housing Prices In Micro Markets) Latest from the real estate sector: Housing prices in Bengaluru's Bagaluru rose the highest since 2020, according to a study of India&rsquo;s micro markets by real estate consultant Anarock. The analysis of price trends in the top three micro-markets of the seven major cities showed that Bagaluru recorded the highest price appreciation of 90 percent between the end of 2019 and June this year. Hyderabad's Kokapet ranked second with 89 percent price appreciation, while Bengaluru's Whitefield ranked third, with an 80 percent rise in residential prices during the period.

RBI reports 97.87% return of Rs 2000 notes, reducing circulation value to Rs 7,581 crore. Deposit/exchange facilities available at 19 RBI offices and India Post since October 2023

Over 97% of Rs 2,000 notes returned to banking system: RBI

<h2>RBI reports 97.87% return of Rs 2000 notes, reducing circulation value to Rs 7,581 crore. Deposit/exchange facilities available at 19 RBI offices and India Post since October 2023</h2>

The Reserve Bank of India (RBI) announced that 97.87% of the Rs 2000 denomination banknotes have been returned to the banking system, leaving only Rs 7,581 crore worth of these notes still with the public. The withdrawal of the Rs 2000 banknotes from circulation was initiated on May 19, 2023.
<h3>Rs 2,000 note withdrawn</h3>
At the time of the announcement, the total value of Rs 2000 banknotes in circulation stood at Rs 3.56 lakh crore. This amount has significantly reduced to Rs 7,581 crore by the close of business on June 28, 2024, highlighting the successful return of the majority of these notes.&nbsp;
The RBI provided a facility for the deposit and exchange of the Rs 2000 banknotes at all bank branches across the country until October 7, 2023. Following this date, from October 9, 2023, individuals and entities have been able to deposit the Rs 2000 banknotes at the 19 RBI issue offices.
Additionally, these notes can be sent via India Post from any post office to any of the RBI issue offices for credit into bank accounts. The 19 RBI issue offices handling the exchange and deposit of these notes are located in Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, and Thiruvananthapuram.
The Rs 2000 banknotes were initially introduced in November 2016 after the demonetization of the Rs 1000 and Rs 500 notes. This move aimed to curb black money and counterfeiting.&nbsp;
Also watch: <a href="https://www.editorji.com/business-news/rbi-suspends-rs-2-000-note-exchange-deposit-facility-on-april-1-1711708872659">RBI suspends Rs 2,000 note exchange/deposit facility on April 1</a>

RBI Governor Shaktikanta Das emphasized focusing on inflation reduction without hindering growth, projecting strong GDP growth and highlighting a shift towards private capital expenditure

Monetary policy will unambiguously focus on reducing inflation: RBI Governor Shaktikanta Das

<h2>RBI Governor Shaktikanta Das emphasized focusing on inflation reduction without hindering growth, projecting strong GDP growth and highlighting a shift towards private capital expenditure</h2>

Reserve Bank of India (RBI) Governor Shaktikanta Das asserted on Tuesday that high interest rates are not obstructing economic growth. He emphasized that the RBI's monetary policy will "unambiguously" focus on reducing inflation.
<h3>RBI governor on inflation</h3>
Speaking at an event organized by the Bombay Chamber of Commerce and Industry, Das stated that India is on the brink of a "major structural shift" in its growth trajectory, with the potential to sustain an 8% real GDP growth annually. He dismissed concerns that elevated interest rates are detrimental to growth, citing sustained growth as evidence that monetary policy and interest rates are not impediments.
Das highlighted that the RBI's nowcasting team projects a 7.4% GDP growth for the June quarter, surpassing the central bank&rsquo;s estimate of 7.3%. He expressed confidence in achieving the RBI's forecasted 7.2% growth for FY25. The positive growth outlook, according to Das, allows the RBI to focus on inflation without hindrance.
Using a chess analogy, Das underscored the critical nature of maintaining focus on inflation moderation, warning that a single adverse weather event could push inflation above 5%. He credited monetary policy actions for the reduction in inflation from 7.8% in 2022 to 4.7% currently.
Lower inflation, Das argued, is essential for sustainable growth, as high inflation reduces competitiveness and investment attractiveness, and erodes purchasing power, particularly among the poor.
Das also noted a shift from government-driven growth to private capital expenditure, particularly in infrastructure sectors like cement and steel.&nbsp; Das advocated for a "multi-sectoral" approach to drive growth, emphasizing that India cannot rely solely on manufacturing or services.
He reassured that India's banking and non-bank sectors are healthy, with improved financial stability metrics. Das also praised structural reforms such as GST, the bankruptcy code, and flexible inflation targeting for bolstering the economy.
Also watch: <a href="https://www.editorji.com/business-news/rbi-actions-on-unsecured-lending-averts-potential-crisis-governor-1718953401115">RBI actions on unsecured lending averts potential crisis: Governor</a>

In November 2023, the RBI increased risk weights on unsecured lending and exposure to NBFCs, which will make banks set aside larger amounts of capital on such assets

RBI actions on unsecured lending averts potential crisis: Governor

In November 2023, the RBI increased risk weights on unsecured lending and exposure to NBFCs, which will make banks set aside larger amounts of capital on such assets

The Reserve Bank's endeavour is to smell a crisis early and act on it, Governor Shaktikanta Das said on Thursday, stating that not taking any action on unsecured lending front would have created "bigger problems".
The November 2023 action to curb growth in the riskier unsecured lending has had the desired impact as the growth in such portfolios slowed down, Das said while addressing an international conference on financial resilience at the RBI's College of Supervisors here.
Das said restrictions on unsecured lending were the result of a view that there could be a potential problem in the credit market because of growth in unsecured lending.
Also read/watch - <a title="Restrictions on JM Financial: SEBI confirms ban on managing public debt issues until 2025" href="https://www.editorji.com/business-news/personal-finance/restrictions-on-jm-financial-sebi-confirms-ban-on-managing-public-debt-issues-until-2025-1718950155695">Restrictions on JM Financial: SEBI confirms ban on managing public debt issues until 2025</a> &nbsp;
The overall headline parameters were looking good, but there was "clear evidence" of dilution of underwriting standards, lack of proper appraisals and a mentality to join the bandwagon for driving up the unsecured lending among some lenders, he added.
"We thought if left unattended, these vulnerabilities can become a bigger problem. So, we thought it is better to act in advance and slow down the credit growth," Das said.
He expressed satisfaction that the RBI's action has had the desired impact, as the growth in unsecured lending has indeed slowed down.
Das said the growth in credit card portfolios has slowed down to 23 per cent from 30 per cent before the Reserve Bank of India (RBI) action, while growth in bank lending to Non-Banking Finance Companies (NBFC) has slowed to 18 per cent from the earlier 29 per cent.
It can be noted that on November 16 last year, the RBI increased risk weights on unsecured lending and exposure to NBFCs, which will make banks set aside larger amounts of capital on such assets.

According to the latest RBI bulletin, total remittances under the scheme stood at 2.28 billion dollars in April 2024, a 1.98% decrease from 2.3 billion dollars in April 2023

Travel leads Forex spending abroad: RBI Data

According to the latest RBI bulletin, total remittances under the scheme stood at 2.28 billion dollars in April 2024, a 1.98% decrease from 2.3 billion dollars in April 2023

Outward remittances under the Reserve Bank of India&rsquo;s Liberalised Remittance Scheme or LRS fell nearly 2% in April 2024 compared to the same period last year, due to a decline in remittances for the maintenance of close relatives and deposits.
Despite this overall decline, remittances for international travel, the largest component, increased by 4.04% year-on-year to 1.14 billion dollars.
Also read/watch - <a title="India's wealth to increase tenfold over next 50 years: NSE Chief Ashishkumar Chauhan" href="https://www.editorji.com/business-news/india-s-wealth-to-increase-tenfold-over-next-50-years-nse-chief-ashishkumar-chauhan-1718874537321">India's wealth to increase tenfold over next 50 years: NSE Chief Ashishkumar Chauhan</a>
Additionally, investment in equity and debt rose by 20% to around $99 million year-on-year, partially offsetting the decrease in other areas. According to the latest RBI bulletin, total remittances under the scheme stood at 2.28 billion dollars in April 2024, a 1.98% decrease from 2.3 billion dollars in April 2023.
During April 2024, remittances for the maintenance of close relatives dropped to 391.69 million dollars from 449.38 million dollars in April 2023.

The Commissioner for Cooperation and Registrar of Cooperative Societies in Maharashtra has been instructed to issue an order to wind up the bank and appoint a liquidator

RBI cancels licence of City Co-operative Bank, orders liquidation

The Commissioner for Cooperation and Registrar of Cooperative Societies in Maharashtra has been instructed to issue an order to wind up the bank and appoint a liquidator

The Reserve Bank on Wednesday cancelled the licence of The City Co-operative Bank, Maharashtra for lacking adequate capital and earning prospects.
The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been asked to issue an order for winding up the bank and appoint a liquidator, RBI said.
According to RBI, the cooperative bank ceases to carry on banking operations with effect from the close of business hours on June 19, 2024.
Also read/watch - <a title="Human rights commission issues notice to Centre over anti-labour practices in Amazon's Manesar warehouse" href="https://www.editorji.com/business-news/human-rights-commission-issues-notice-to-amazon-india-over-anti-labour-practices-in-manesar-warehouse-1718859516071">Human rights commission issues notice to Centre over anti-labour practices in Amazon's Manesar warehouse</a>
On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh only from Deposit Insurance and Credit Guarantee Corporation (DICGC).
"As per the data submitted by the bank, about 87 per cent of the depositors are entitled to receive full amount of their deposits from DICGC," RBI said.
As on June 14, 2024, DICGC has already paid Rs 230.99 crore of the total insured deposits based on the willingness received from the depositors concerned of the bank.
Giving details, RBI said the Mumbai-based cooperative bank does not have adequate capital and earning prospects.
"The bank with its present financial position would be unable to pay its present depositors in full," it said, and added that public interest would be adversely affected if it is allowed to carry on its banking business any further.
Consequent to the cancellation of its licence, The City Co-operative Bank has been prohibited from conducting the business of &lsquo;banking&rsquo; which includes, among other things, acceptance of deposits and repayment of deposits.&nbsp;

The RBI launched a digital payments intelligence platform to address increasing digital frauds, with a committee chaired by Abhaya Hota overseeing the setup. FY24 saw a 300% rise in fraud cases, but a significant decrease in fraud amounts

RBI to establish digital payments intelligence platform as cyber frauds spike 

<h2>The RBI launched a digital payments intelligence platform to address increasing digital frauds, with a committee chaired by Abhaya Hota overseeing the setup. FY24 saw a 300% rise in fraud cases, but a significant decrease in fraud amounts</h2>

The Reserve Bank of India has launched a digital payments intelligence platform as banks continue to witness a surge in digital frauds.&nbsp;
"Growing instances of digital payment frauds, however, highlight the need for a system-wide approach to prevent and mitigate such frauds. It is, therefore, proposed to establish a digital payments intelligence platform for network level intelligence and real-time data sharing across the digital payments&rsquo; ecosystem," said RBI governor Shaktikanta Das.
<h3>Intelligence panel</h3>
The Reserve Bank of India has also constituted a committee to examine various aspects of setting up the platform. As per Economic Times, the panel will be chaired by Abhaya Hota who played a key role in transforming India into a digital economy as the first chief executive officer of National Payments Corporation of India (NPCI).
Members of the panel would include representatives of NPCI, State Bank of India, HDFC Bank and ICICI Bank. The report also mentioned that Vipin Surelia, head of risk at Visa, Arif Khan, chief innovation officer at Razorpay, Jitendra Gupta, founder of Jupiter, and Pranay Jhaveri, managing director of Euronet, have been appointed as members of this committee from the payment industry.&nbsp;
ET Bureau also reported that the platform will define the operational parameters and processes that will determine the extent to which data will be provided by reporting entities like banks and fintechs.&nbsp;
<h3>Surge in cyber frauds</h3>
As per The Economic Times, an analysis of frauds reported across banks has revealed a significant increase in the number of cases in FY24, with a total of 36,075 cases, marking a nearly 300 per cent rise from the 9,046 cases reported in FY22.
As per RBI's annual report of FY24, the amount involved in these frauds has drastically decreased from Rs 45,358 crore to Rs 13,930 crore. The total value of fraud reported in FY24 saw a 46.7% drop.&nbsp;
The Reserve Bank of India also noted that while private sector banks reported the highest number of fraud cases over the past three years, public sector banks accounted for the majority of the fraud amounts.
Also watch: <a href="https://www.editorji.com/business-news/rbi-urges-banks-to-invest-in-it-infrastructure-to-prevent-outages-1717753389959">RBI urges banks to invest in IT infrastructure to prevent outages</a>

Das added that RBI does not prescribe minimum investment, but banks should invest adequately in IT infrastructure to cut outages

RBI urges banks to invest in IT infrastructure to prevent outages

Das added that RBI does not prescribe minimum investment, but banks should invest adequately in IT infrastructure to cut outages

The Reserve Bank of India or RBI has called on banks to invest adequately in IT infrastructure in line with their business growth and volume to reduce outages.
Speaking at a press conference after the RBI MPC meeting, Governor Shaktikanta Das emphasized that outages are often due to issues within the banks, not at the National Payments Corporation of India or the unified payments interface. Also read/watch - <a title="RBI moved gold reserve from UK to India as there is enough storage capacity: RBI governor Shaktikanta Das" href="https://www.editorji.com/business-news/rbi-moved-gold-reserve-from-uk-to-india-as-there-is-enough-storage-capacity-rbi-governor-shaktikanta-das-1717748929730">RBI moved gold reserve from UK to India as there is enough storage capacity: RBI governor Shaktikanta Das</a>
Das further added that RBI does not prescribe minimum investment, but banks should invest adequately in IT infrastructure to cut outages.
This statement comes after the RBI barred Kotak Mahindra Bank from onboarding new customers through its online and mobile banking channels and from issuing fresh credit cards, citing concerns over its IT infrastructure.

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