🍒 RBI’s first OMO purchase of state development loans sees good response : In a bid to sooth bond market concerns over large state borrowings in the second half of the fiscal, the RBI announced open market operations (OMO) purchase of State Development Loans (SDLs) for the first time, as a special case, in its October policy. The first auction of ₹10,000 crore of SDLs on October 22, not only received good response, but experts also believe that future auctions could help narrow the spreads between SDLs and equivalent government securities in certain tenures. Against the notified amount of ₹10,000 crore, RBI received bids to the tune of ₹15,475 crore, implying a bid-to-cover-ratio (amount of bids received relative to the amount announced) of 1.5:1 times. Top OMO purchases (by amount) included ₹1,505 crore of 7.78 per cent Maharashtra SDL 2029 at a cut-off yield of about 6.5 per cent, ₹1,199 crore of 7.17 per cent Karnataka SDL 2029 at again 6.5 per cent, ₹1,136 crore of 7.2 per cent Karnataka SDL 2029 at 6.47 per cent and ₹950 crore 7.18 per cent Gujarat SDL 2030 at 6.5 per cent. - Business Line
🍒 RBI board holds review meet to take stock of economic situation, other challenges : Amid the uncertainties created by the coronavirus pandemic, the Reserve Bank’s central board on Friday held a meeting to discuss, among other things, the economic situation and other challenges. The meeting, which was held through video conferencing, also deliberated on the issues concerning financial stability in the present context. "The board reviewed the current economic situation, continued global and domestic challenges and various areas of operations of the Reserve Bank. The board also discussed the working of sub-committees of the central board and the local boards and deliberated on the aspects related to financial stability in the present milieu,” the RBI said in a release. - moneycontrol.
🍒 RBI issues guidelines to set up self-regulatory organisation for PSOs : The Reserve Bank on Thursday issued final guidelines, including the framework, to set up a self-regulatory organisation for payment system operators as part of its payment and settlement systems vision. The framework will enable the central bank to recognise a self-regulatory organisation (SRO) for payment system operators (PSOs). The plan was announced in February 2020 monetary policy. "Interested groups/association of PSOs (banks as well as non-banks) seeking recognition to be an SRO may apply to the chief general manager, department of payment and settlement systems at the RBI," the regulatory circular said. An SRO is a non-governmental organisation that sets and enforces rules and standards relating to the conduct of its members to help protect customers and promote ethical and professional standards. - Business Standard
🍒 Punjab and Sind Bank reports account of IL&FS Financial Services (IFIN) as fraud account to RBI : Punjab and Sind Bank on Friday said it has reported to the Reserve Bank of India (RBI) the account of IL&FS Financial Services (IFIN) as fraud with outstanding dues of over Rs 561 crore. The NPA account, IL&FS Financial Services, with outstanding dues of Rs 561.13 crore has been declared as fraud and reported to the RBI as per the regulatory requirement, the bank said in a regulatory filing. "Further, the bank has already made 100 per cent provisioning as per the prescribed prudential norms and the account is technically written off," it added. The scam at the IL&FS group came to light in September 2018 after several group entities defaulted on repayments due to severe liquidity problems. Later, the government superseded the board of directors to revive the ailing group. - economic times
🍒 IDBI Bank posts ₹324-crore profit in Q2 : IDBI Bank reported a net profit of ₹324 crore in the second quarter ended September 30, 2020 against a net loss of ₹3,459 crore in the year ago period. Net profit in the reporting (Q2) quarter jumped 125 percent.
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