Category: Banking

In his first major policy move, newly appointed Reserve Bank of India (RBI) Governor Sanjay Malhotra announced a 25-basis-point (bps) reduction in the repo rate on Friday. This decision brings much-needed relief to borrowers, particularly those with home and other loans. However, it remains to be seen how quickly banks will pass on this benefit to consumers.

Alongside the rate cut, the RBI has introduced key initiatives aimed at bolstering the banking sector, particularly in the digital payments space, to enhance security and combat cyber fraud.

Following the Reserve Bank of India’s (RBI) decision to permit invoicing and payments for international trade in rupees and other local currencies, 123 correspondent banks from 30 trade partner nations have set up special accounts in India to facilitate these transactions, according to Minister of State for Commerce and Industry, Jatin Prasada.

In response to a query in the Rajya Sabha, Prasada stated that the RBI has approved the opening of 56 Special Rupee Vostro Accounts (SVROs) across 26 banks authorized to handle foreign exchange transactions.