The asymmetry in deposit and credit growth is the biggest challenge before the Indian banking industry. For every 100 deposit that a bank mobilises, it needs to keep 3 with the banking regulator in the form of cash reserve ratio on which it doesn't earn any interest. Another 18 is used for buying government bonds (statutory liquidity ratio). This means, a bank is left with 79 for giving credit. Add to this, its capital which can be used for giving loans. Most banks are facing a fund crunch. They need to find ways to attract deposits if they want to sustain credit growth, explains Tamal Bandyopadhyay.
'It's not about individuals operating the mule accounts being more or less skilled. Instead, 'lower-level' refers to the role the individual account plays in the broader mule network.'
The Rajya Sabha has passed The Bankers' Books Evidence Bill, 2026, which aims to replace a British-era law and allow digital and virtual records to be admissible as evidence in courts. This legislation aligns with contemporary digital banking practices and extends a uniform evidential framework to various financial entities, including NBFCs and fintech companies. Finance Minister Nirmala Sitharaman highlighted the bill's role in strengthening public confidence and safeguarding customer privacy. The bill's passage, however, saw an Opposition walkout over unrelated issues.
Chandigarh is set to launch the Central Bank Digital Currency (CBDC), or digital rupee, for Direct Benefit Transfer (DBT) under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) on August 14. This initiative makes Chandigarh the first Union Territory to fully roll out CBDC-based DBT for food subsidy, enhancing transparency and efficiency in welfare delivery. The digital rupee, issued by the RBI, will be purpose-bound for purchasing foodgrains from authorised merchants.
India's largest retirement fund manager, the Employees' Provident Fund Organisation (EPFO), is enhancing its investment governance and fund management practices, following the Reserve Bank of India's recommendations.
Change of guard in some states and evolving El Nino dynamics are triggering fresh actions on raging water-sharing disputes in several states.
The Reserve Bank of India on Friday proposed to allow banks to lend to Real Estate Investment Trusts (REITs) with certain prudential safeguards to deepen the financing pool for the real estate sector.
Public sector lender Union Bank of India on Tuesday announced interest rates for new home loans up to Rs 50 lakh at 8 per cent for one year.
For the second time in two years, Karnataka minister B Nagendra resigned from the state Cabinet on Friday amid the Opposition heat over his alleged involvement in the Rs 89 crore Valmiki Corporation scam.
Led by the country's biggest lender State Bank of India (SBI), public sector banks logged a record cumulative profit of Rs 52,603 crore in the third quarter of the current fiscal, reflecting an 18 per cent year-on-year growth.
Chief Economic Advisor V Anantha Nageswaran stated that India's economy is projected to return to a 7 per cent-plus growth trajectory by 2027-28 (FY28), or sooner if external conditions improve, despite near-term challenges from the West Asia crisis.
Head of central banks from various countries get into a 'Basel huddle' every second month at Basel at the headquarters of the Bank for International Settlement.
The Indian government has approved the introduction of one billion polymer banknotes in Rs 10 and Rs 20 denominations for field trials, aiming to enhance durability. This move comes as the Finance Minister also addressed Parliament on declining retail inflation, GST reforms, and other fiscal measures taken to support the economy and household consumption.
Nepal's devastating flash floods have claimed 1,127 lives, with thousands still missing a week after the disaster. Rescuers are intensifying efforts to find survivors and recover bodies across affected regions, while police work to identify victims and relocate families from high-risk areas.
Voices from the Treasury are clamouring for lowering rates as this would boost demand.
Rajan said India's good economic fundamentals would allow it to overcome any 'sharp corrections' in global markets
The Centre has notified 40 questions for the upcoming Census 2027, including caste and place of Covid vaccination, marking the first time caste details will be collected as part of the decadal exercise. The population enumeration will be a fully digital process, with an option for self-enumeration.
The Supreme Court has directed the Centre to submit an affidavit detailing the steps taken to implement the recommendations of the Radhakrishnan panel and the Nandan Nilekani committee for institutionalising reforms in the National Testing Agency (NTA) and improving NEET exam processes.
The Kerala Sports Department has submitted its confidential inquiry report regarding the controversy surrounding the proposed visit of football legend Lionel Messi and the Argentina team to the state during the previous government's tenure.
'You have to get private investment to somewhere between 35% to 36% of GDP. It is hovering about 30%-31%.'
The Public Examination (Prevention of Unfair Means) Amendment Bill, 2026, passed by the Lok Sabha, introduces significantly stricter punishments for individuals and organised groups involved in paper leaks and other unfair means in public examinations. The legislation aims to enhance the integrity of exams conducted by various central government agencies.
Chandrasekaran's exit is more than a change of chairman. It represents the breakdown of the informal consensus that governed the Tata system under Ratan Tata.
President Droupadi Murmu has given her assent to the Public Examinations (Prevention of Unfair Means) Amendment Bill, 2026, which introduces fast-track courts and significantly enhances punishment for those involved in public examination question paper leaks.
The Reserve Bank on Wednesday said the amalgamation of Lakshmi Vilas Bank with DBS Bank India will come into force from November 27 and the moratorium imposed on the crisis-ridden lender will be removed on that day. The RBI issued the statement within hours of the Cabinet clearing the Scheme of Amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL).
A nationwide strike called by central trade unions saw a mixed response across India, impacting various sectors and states differently, with some areas experiencing disruptions while others remained largely unaffected.
India is set to introduce a new amendment to its anti-paper leak law in the Lok Sabha, aiming to establish fast-track courts across all states and union territories for swift trials and significantly harsher penalties for exam malpractices, including jail terms of 5 to 10 years and fines up to Rs 50 lakh for individuals, and up to Rs 10 crore for organised crimes.
Indian states significantly increased their reliance on market borrowings to finance gross fiscal deficits in 2025-26, with the share of market borrowings rising to 76.3 per cent, even as the weighted average cut-off yield on State Government Securities (SGS) and spreads over central government securities also increased.
Misir Besra, a banned CPI (Maoist) politburo member with a bounty of over Rs 1 crore and wanted in 141 cases, has been arrested from Jharkhand's Dhanbad district. His arrest is considered a significant achievement in anti-Maoist operations in the state.
The NEET-UG re-exam was held at centres across the country and overseas on Sunday amid tight security arrangements for the smooth conduct of the examination.
While tensions have eased at several friction points and mechanisms for managing the boundary have been reactivated, underlying differences persist. Disputes over naming practices in Arunachal Pradesh, continued infrastructure development on both sides, and unresolved questions regarding patrolling rights indicate that the structural gap remains, notes Dr Kumar.
Opening up the corner office is fine, but will the government be able to attract talent without giving a market-rate salary?, asks Tamal Bandyopadhyay.
Chief Economic Advisor V Anantha Nageswaran highlights the challenges of digital access, data governance, interoperability, and cyber security in India's digital public infrastructure (DPI), despite its world-class scale.
Parliament on Thursday passed a bill to amend the anti-paper leak law to introduce stricter punishments, with the government expressing its commitment to go the extra mile to safeguard the interests of students, who are the country's future.
The CBI has filed three chargesheets against former Karnataka minister B Nagendra and his associate Nekkanti Nagaraj for allegedly diverting Rs 89 crore in state government funds intended for Scheduled Tribes.
A special court in Mumbai has dropped corruption charges against Guruashish Construction and its directors in a multi-crore cheating case after the CBI found no public servants involved in the alleged graft.
Sheikh Mohammad Abdullah's dismissal and arrest on August 9, 1953 marked a decisive shift in the Centre-J&K power equation. Seven decades later, the erosion of the state's special constitutional position culminated in the August 5, 2019 changes, notes Mohammad Sayeed Malik, the distinguished commentator on Kashmir affairs.
TVS Venu Group has agreed to acquire a minority stake of up to 9.9 per cent in Jana Small Finance Bank, including a 4.9 per cent ownership by TVS Motor Company, through a combination of primary issuance of warrants and a secondary purchase.
The Supreme Court has sought responses from the Centre, the CBI and others on a plea filed by a 78-year-old retired banker who was duped of Rs 23 crore after allegedly being put under "digital arrest" for nearly a month.
Net NPAs increased to Rs 36,260 crore in the December quarter from Rs 34,843 crore in September and Rs 33,116 crore in December 2023, observes Tamal Bandyopadhyay.
The Clearing Corporation of India (CCIL) will be able to reapply for recognition by the European Union's (EU) financial markets regulator following a pact signed on Tuesday between the Reserve Bank of India (RBI) and the European Securities and Markets Authority (Esma).
