Press Releases

Sr. NoStateAmount to be raised (₹ Crore)Amount Accepted (₹ Crore)Cut off Yield (%)Tenure (Year) 1Andhra Pradesh100010007.6011 100010007.5018 2Assam100010007.6210 3Bihar200020007.628 4Chhattisgarh100010007.548 5Haryana5005007.5310 100010007.5912 6Kerala100010007.4922 7Madhya Pradesh200020007.5512 100010007.5115 8Punjab150015007.6712 9Rajasthan100010007.5410 10Tamil Nadu100010007.5210 11Telangana100010007.559 100010007.4921 12Uttar Pradesh300030007.5612 13Uttarakhand5005007.5410 14West Bengal200020007.5916 TOTAL22,50022,500
Ajit Prasad            
Director (Communications)

Press Release: 2023-2024/1029

The Reserve Bank of India (RBI) had announced the withdrawal of ₹2000 banknotes from circulation vide Press Release 2023-2024/257 dated May 19, 2023. In order to complete the exercise in a time bound manner and to provide adequate time to members of the public, the banks were advised to provide deposit and / or exchange facility for ₹2000 banknotes until September 30, 2023. The exchange facility was also made available at the 19 Regional Offices (ROs) of RBI having Issue Departments (RBI Issue Offices)1. The RBI has been keeping members of the public informed about the status of the withdrawal exercise through monthly Press Releases.

Government of India (GOI) has announced the sale (re-issue) of three dated securities for a notified amount of ₹30,000 crore as per the following details: Sr No    Security    Date of Repayment    Notified Amount(₹ crore)    GoI specific Notification  Auction Date Settlement Date 1 7.06% GS 2028 Apr 10, 2028 7,000 F.No.4(3)-B(W&M)/2023 dated September 29, 2023 October 06, 2023 (Friday) October 09, 2023 (Monday) 2 7.18% GS 2033 Aug 14, 2033 13,000

(Amount in ₹ crore, Rate in Per cent) MONEY MARKETS@ Volume(One Leg)Weighted Average RateRange A. Overnight Segment (I+II+III+IV)28,923.546.785.00-7.24 I. Call Money841.006.595.80-6.85 II. Triparty Repo27,261.006.785.00-7.24 III. Market Repo821.546.786.20-6.90

The 28th Meeting of the Standing Advisory Committee (SAC) to review the flow of credit to Micro, Small and Medium Enterprises (MSME) sector was held under the chairmanship of Shri Swaminathan J, Deputy Governor, Reserve Bank of India on September 29, 2023 in Lucknow. The meeting was attended by Senior Officials from Ministry of MSME and Department of Financial Services, Ministry of Finance, Government of India; Chairman, SIDBI, Executive Director, RBI, Senior Management of major banks and NABARD, senior executives of Credit Guarantee Fund Trust for Micro and Small Enterprises, National Credit Guarantee Trustee Company Limited, Khadi & Village Industries Commission, Indian Banks’ Association and MSME Associations.The Deputy Governor in his keynote address emphasised the significant role of the MSME sector, particularly in the context of the goal of attaining developed economy status by 2047. He stressed the need for collaborative efforts on the part of all stakeholders to unlock the full potential of MSMEs. Deputy Governor highlighted various initiatives taken by the Reserve Bank such as the Account Aggregator (AA) framework, the digital Public Tech Platform to enable delivery of frictionless credit and the regulatory sandbox on MSME lending. He also dwelt on the important role of Industry Associations in information dissemination and capacity building among MSMEs.

1. Reserve Bank of India - Liabilities and Assets* (₹ Crore) Item20222023 Variation Sep. 23Sep. 15Sep. 22 Week Year 12345 4 Loans and Advances 4.1 Central Government 00000 4.2 State Governments 65151693913480-34596965 * Data are provisional. 2. Foreign Exchange Reserves* ItemAs on September 22, 2023Variation over WeekEnd-March 2023 Year

Today, the Reserve Bank of India (RBI), vide order dated September 28, 2023, has cancelled the licence of Lucknow Urban Co-operative Bank Ltd., Lucknow, Uttar Pradesh. Consequently, the bank ceases to carry on banking business, with effect from the close of business on September 29, 2023. The Commissioner and Registrar of Cooperative, Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. The Reserve Bank cancelled the licence of the bank as: The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949; The bank has failed to comply with the requirements of Sections 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949;

In the underwriting auctions conducted on September 28, 2023 for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers as given below:(₹ crore) Nomenclature of the SecurityNotified AmountMinimum Underwriting Commitment (MUC) AmountAdditional Competitive Underwriting Amount AcceptedTotal Amount underwrittenACU Commission Cut-off rate (paise per ₹100) 6.99% GS 20268,0004,0113,9898,0000.63

The Reserve Bank of India (RBI) has imposed, by an order dated September 22, 2023, a monetary penalty of ₹23 lakh (Rupees Twenty Three lakh only) on Saraswat Co-operative Bank Limited, Mumbai (the bank) for contravention of the provisions of Section 20(1)(b)(iii) read with Section 56 of the Banking Regulation Act, 1949 (BR Act), and the directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested’. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the BR Act.

The Reserve Bank of India (RBI) has, by an order dated September 22, 2023, imposed a monetary penalty of ₹13 lakh (Rupees Thirteen lakh only) on Rajkot Nagarik Sahakari Bank Ltd., Rajkot (the bank) for non-compliance with the directions issued by RBI on ‘Interest Rate on Deposits’. This penalty has been imposed in exercise of powers vested in RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.This action is based on deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.Background The statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2021, and examination of the Risk Assessment Report, Inspection Report and all related correspondence pertaining to the same, revealed, inter alia, that the bank had failed to pay eligible interest at the time of repayment (i) on term deposits which matured on a Sunday / holiday / non-business working day, and paid on the succeeding working days, and (ii) on matured unpaid term deposits for the period they remained unclaimed with the bank. Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the RBI directions, as stated therein.

The Reserve Bank of India (RBI) has, by an order dated September 22, 2023, imposed a monetary penalty of ₹25 lakh (Rupees Twenty Five lakh only) on Bassein Catholic Co-operative Bank Ltd., Vasai, Maharashtra (the bank) for contravention of the provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act), and the directions issued by RBI on ‘Exposure Norms and Statutory / Other Restrictions’. This penalty has been imposed in exercise of powers vested in RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.

This action is based on deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2021, and examination of the Risk Assessment Report, Inspection Report and all related correspondence pertaining to the same, revealed, inter alia, that the bank had granted multiple unsecured loans to one of its director / his proprietorship firm. Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the provisions of the BR Act and the RBI directions, as stated therein.

After considering the bank’s reply to the notice, its additional submissions and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of contravention of the statutory provisions and the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2023-2024/1015

(Amount in ₹ crore, Rate in Per cent)MONEY MARKETS@ Volume (One Leg) Weighted Average RateRange A. Overnight Segment (I+II+III+IV)463,422.356.770.05-6.90 I. Call Money9,782.406.775.00-6.85 II. Triparty Repo320,314.856.776.75-6.79 III. Market Repo133,325.106.790.05-6.90 IV. Repo in Corporate Bond0.00-- B. Term Segment

Today, the Reserve Bank released data relating to India’s International Investment Position for end-June 2023[1]. Key Features of India’s IIP in end-June 2023: Net claims of non-residents on India increased by US$ 12.1 billion during Q1:2023-24 and stood at US$ 379.7 billion as at end-June 2023.The rise in net claims of non-residents during the quarter was on account of higher rise in foreign-owned financial assets in India (US$ 36.2 billion) when compared with Indian residents’ overseas financial assets (US$ 24.1 billion) (Table 1).Increase in reserve assets (US$ 16.6 billion) was the largest contributor to the rise in Indian residents’ foreign assets during April-June 2023, followed by direct investment, loans and trade credit.Inward portfolio investment (US$ 15.0 billion) and foreign direct investment (US$ 8.9 billion) together accounted for two thirds of the rise in foreign liabilities of Indian residents.Reserve assets accounted for 64.2 per cent of India’s international financial assets at end-June 2023 (Tables 1 and 2).

The stock of external debt at end-June 2023 as well as revised data for earlier quarters are set out in Statements I (IMF format1) and II (old format). The major developments relating to India’s external debt as at end-June 2023 are presented below.Highlights At end-June 2023, India’s external debt was placed at US$ 629.1 billion, recording an increase of US$ 4.7 billion over its level at end-March 2023 (Table 1).The external debt to GDP ratio declined to 18.6 per cent at end-June 2023 from 18.8 per cent at end-March 2023.

Earlier today, the Reserve Bank of India released balance of payments (BoP) data for April-June 2023 on its website (www.rbi.org.in). On the basis of these data, the sources of variation in foreign exchange reserves during April-June 2023 are detailed below: Sources of Variation in Foreign Exchange Reserves: April-June 2023 During April-June 2023, there was an increase in the foreign exchange reserves, the sources of which are set out in Table.

Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2023-24, are presented in Statements I (BPM6 format) and II (old format).Key Features of India’s BoP in Q1:2023-24.India’s current account deficit (CAD) narrowed to US$ 9.2 billion (1.1 per cent of GDP) in Q1:2023-24 from US$ 17.9 billion (2.1 per cent of GDP) in Q1:2022-23 but it was higher than US$ 1.3 billion (0.2 per cent of GDP) in the preceding quarter.1
The widening of CAD on a quarter-on-quarter basis was primarily on account of a higher trade deficit coupled with a lower surplus in net services and decline in private transfer receipts.Net services receipts decreased sequentially, primarily due to a decline in exports of computer, travel and business services, though remained higher on a year-on-year (y-o-y) basis.

Reserve Bank of India announces the auction of Government of India Treasury Bills as per the following details:Sr. No. Treasury Bill Notified Amount (in ₹ Crore) Auction Date Settlement Date 1 91 Days 7,000 October 04, 2023 (Wednesday) October 05, 2023 (Thursday)2 182 Days 8,000 3 364 Days 9,000 Total 24,000 The sale will be subject to the terms and conditions specified in the General Notification F.No.4(2)-W&M/2018 dated March 27, 2018 along with the Amendment Notification No.F.4(2)-W&M/2018 dated April 05, 2018 and Amendment Notification No.F-4(2)-W&M/2018 dated December 23, 2021, issued by Government of India, as amended from time to time. State Governments, Union Territories with legislature, eligible Provident Funds in India, designated Foreign Central Banks and any person or institution specified by the Bank in this regard, can participate on non-competitive basis, the allocation for which will be outside the notified amount. Individuals can also participate on non-competitive basis as retail investors. For retail investors, the allocation will be restricted to a maximum of 5 percent of the notified amount. Individual investors can also place bids as per the non-ccompetitive scheme through Retail Direct portal (https://rbiretaildirect.org.in).

Auction Results6.99% GS 20267.17% GS 20307.18% GS 20377.25% GS 2063 I.Notified Amount₹8000 Crore₹7000 Crore₹12000 Crore₹12000 Crore II.Underwriting Notified Amount₹8000 Crore₹7000 Crore₹12000 Crore₹12000 Crore III.Competitive Bids Received
(i) Number82103180163 (ii) Amount₹14727.548 Crore₹14952 Crore₹26238 Crore₹23041 Crore IV.Cut-off price / Yield99.3399.5498.5397.35 (YTM: 7.2802%)(YTM: 7.2584%)(YTM: 7.3494%)(YTM: 7.4578%) V.Competitive Bids Accepted (i) Number333696137
 

6.99% GS 20267.17% GS 20307.18% GS 20377.25% GS 2063 I.Notified Amount₹8,000 crore₹7,000 crore ₹12,000 crore₹12,000 crore II.Cut off Price / Implicit Yield at cut-off 99.33/7.2802%99.54/7.2584%98.53/7.3494%97.35/7.4578% III.Amount accepted in the auction₹8,000 crore₹7,000 crore₹12,000 crore₹12,000 crore IV.Devolvement on Primary DealersNILNILNILNIL Shweta Sharma Deputy General Manager Press Release: 2023-2024/1012

Data on lending and deposit rates of scheduled commercial banks (SCBs) (excluding regional rural banks and small finance banks) for the month of September 2023.Highlights: Lending Rates:The weighted average lending rate (WALR) on fresh rupee loans of SCBs increased by 3 basis points (bps) from 9.44 per cent in July 2023 to 9.47 per cent in August 2023.1-Year median Marginal Cost of Fund based Lending