🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥

Startup Showcase

Premium Content

Try our Valuation Calculator →

News on Medial

RBI may soon step in to absorb excess liquidity

Economic Times

Economic Times · 25d ago

RBI may soon step in to absorb excess liquidity

The Reserve Bank of India (RBI) is planning to initiate variable rate reverse repo (VRRR) operations to manage surplus liquidity in banks, following its shift to a neutral policy stance. This move aims to stabilize short-term rates within the liquidity adjustment facility corridor. Economists believe restarting VRRR operations would help maintain market integrity. While no final decision is made, these operations could temporarily underscore the RBI's neutral stance until satisfactory rate transmission and a nearing end of the rate cut cycle.

1

Related News

RBI Is Said to Shore Up Banking Liquidity Before Rate Decision

Livemint

Livemint · 7m ago

RBI Is Said to Shore Up Banking Liquidity Before Rate Decision

The Reserve Bank of India (RBI) has been working to stabilize the rupee and shore up banking system liquidity ahead of an important policy decision. The RBI has conducted buy-sell swaps in the forwards market, estimated at $3 billion, to inject rupee liquidity. These moves come as the Indian economy is experiencing its slowest growth in almost two years, leading to speculation that the RBI may take liquidity-easing measures at its upcoming policy meeting. Analysts have suggested that the RBI may announce measures such as a cut in the cash-reserve ratio to inject liquidity into the system.

Banks may go for short-term G-Secs with CRR cut in Sept

Economic Times

Economic Times · 24d ago

Banks may go for short-term G-Secs with CRR cut in Sept

With the anticipated September CRR rate cut, banks are expected to focus on short-term government securities instead of committing to longer durations due to muted credit demand and volatile bond yields. As banks manage excess liquidity, they may invest in safer, short-duration instruments like treasury bills and G-Secs, such as those with one to three-year maturities. This strategy comes amidst a slowdown in credit growth and evolving market conditions.

P2P firms dial RBI for secondary market access, instant liquidity tools

Economic Times

Economic Times · 11m ago

P2P firms dial RBI for secondary market access, instant liquidity tools

The peer-to-peer lending sector in India is seeking clarity from the Reserve Bank of India (RBI) on certain features including instant liquidity, flow of funds, and automatic reinvestment of gains. They believe that by offering options for liquidity and access to secondary market transactions, P2P lending can become an attractive tool for investors. The RBI has not yet responded to their queries. Industry participants have written to the RBI requesting clarity on secondary market operations, which have been in practice since the regulations were announced in 2017. The sector is struggling to scale and industry insiders believe regulatory clarity is needed for its growth.

Spain, Portugal Power Cost Edge Seen Fueling AI Data Center Boom

Livemint

Livemint · 7m ago

Spain, Portugal Power Cost Edge Seen Fueling AI Data Center Boom

Spain and Portugal's abundance of low-cost renewable energy is driving investments in AI infrastructure and increasing data center power consumption by over eight times in a decade, says Aurora Energy Research. The two nations have an advantage over higher-cost countries like the UK and Germany due to their reliable grids, extensive fiber connectivity, and low spot energy prices, making them attractive for these investments. Iberian data centers are expected to experience an increase in power demand of 21 terawatt-hours until 2035, which will help absorb the excess supply of renewable power generated in the region. The main challenge could be the cost of cooling chips in hot temperatures.

RBI cancels VRR auction for third time amid stable liquidity

Economic Times

Economic Times · 28d ago

RBI cancels VRR auction for third time amid stable liquidity

The Reserve Bank of India (RBI) has canceled the 14-day variable rate repo (VRR) auction for the third consecutive time due to stable liquidity conditions in the banking system. This decision comes despite anticipated tax outflows, including advanced tax and GST payments, estimated at ₹3 lakh crore over the next two weeks. Treasury officials suggest this indicates the central bank's confidence in managing liquidity despite these scheduled outflows.

As SEBI, RBI join hands to curb liquidity, small & midcap shares may face the heat

Money Control

Money Control · 1y ago

As SEBI, RBI join hands to curb liquidity, small & midcap shares may face the heat

Last week, the market regulator, SEBI, issued a circular urging mutual fund body AMFI to put brakes on small and midcap equity schemes, citing concerns over bubble valuations. This, along with recent actions by the Reserve Bank of India (RBI) against non-banking financial companies (NBFCs), has made individual investors cautious about small and midcap shares. The regulators' actions aim to curb the excessive influx of money leading to inflated stock prices. However, experts believe the impact of these regulatory measures may be limited, considering the ample liquidity in the system and strong macroeconomic fundamentals.

Saraswat Coop Bank proposes to acquire New India Coop Bank

Economic Times

Economic Times · 10d ago

Saraswat Coop Bank proposes to acquire New India Coop Bank

Saraswat Cooperative Bank, India's largest cooperative bank, has sought approval from the Reserve Bank of India to acquire New India Cooperative Bank Ltd. This acquisition aims to alleviate depositor issues following a moratorium on New India Cooperative by the RBI. The merger will see Saraswat absorb all assets and liabilities of New India Cooperative. Saraswat has previously acquired seven cooperative banks, significantly boosting their business post-acquisition. The bank anticipates no major rise in non-performing assets post-acquisition.

Yes Bank Crisis to Resolve? Here's Everything You Need to Know as Sumitomo Steps In

OutlookIndia

OutlookIndia · 2m ago

Yes Bank Crisis to Resolve? Here's Everything You Need to Know as Sumitomo Steps In

Yes Bank is undergoing a significant shareholding change as Japan's Sumitomo Mitsui Banking Corporation (SMBC) plans to acquire a majority stake. This shift follows past liquidity crises and regulatory interventions, including the Reserve Bank of India's (RBI) and State Bank of India's (SBI) involvement. The potential deal, which would include a 24% initial purchase, aims to restructure Yes Bank's ownership and improve governance, pending final regulatory approval from the RBI.

RBI Bans Lending Against Gold Bullion, Allows Loans on Jewellery to Balance Risk, Liquidity

OutlookIndia

OutlookIndia · 1m ago

RBI Bans Lending Against Gold Bullion, Allows Loans on Jewellery to Balance Risk, Liquidity

The Reserve Bank of India (RBI) has prohibited lending against gold bullion, citing financial stability concerns. However, it allows loans on gold jewelry, ornaments, or coins for short-term financing. These measures aim to balance liquidity access and lender risk. The RBI also eased norms for non-banking financial companies by increasing the loan-to-value ratio for gold loans under ₹2.5 lakh from 75% to 85%, promoting competition with banks. Investors responded positively, boosting shares of gold financiers.

RBI holds interest rates steady yet again to keep inflation in check

VCCircle

VCCircle · 7m ago

RBI holds interest rates steady yet again to keep inflation in check

The Reserve Bank of India (RBI) has decided to keep its key interest rate unchanged at 6.50%. This decision was based on concerns over high inflation and disappointing economic growth. India's annual retail inflation rose to 6.21% in October, surpassing the central bank's tolerance band. Additionally, the country's GDP growth for the July-September quarter was the slowest in seven quarters at 5.4%. Investors will now be monitoring the RBI for any steps taken to address the liquidity deficit in the banking system, which could potentially lower market interest rates.

Trackers

Active Indian VC’s

OG Capital Email

With a hands-on approach, OG Capital aims to invest in over 20 promising...

Accel Partners Email

Early and growth-stage investments in disruptive technology companies with...

Early-stage venture capital firm investing in technology startups in India. Focus on...

Access All Trackers

Startup Showcase Winners

June 2025

Helping your parents when you are miles away

The Pit Stop Your Cravings Deserve

The next generation E-commerce platform

Enter Ongoing Startup Showcase

Top Users

Trending News on Medial

Flexport CEO calls out India’s ‘u ...

ChatGPT is testing a mysterious n ...

Jack Dorsey working on Bluetooth ...

Download the medial app to read full posts, comements and news.