Today, the Reserve Bank released the January 2024 issue of its monthly Bulletin. The Bulletin includes seven speeches, six articles, current statistics. Financial Stability Report December 2023 and Report on Trend and Progress of Banking 2022-23 are supplements to the January 2024 Bulletin.

The Reserve Bank has launched the 105th round of the quarterly Industrial Outlook Survey (IOS) of the Indian manufacturing sector for the reference period January-March 2024. The survey assesses business sentiment for the current quarter (Q4:2023-24) and expectations for the ensuing quarter (Q1:2024-25), based on qualitative responses on a set of indicators pertaining to demand conditions, financial conditions, employment conditions and the price situation. The outlook on key parameters for the two subsequent quarters (Q2:2024-25 and Q3:2024-25) are also covered.

The Reserve Bank has launched the 40th round of the quarterly Services and Infrastructure Outlook Survey (SIOS) for the reference period January-March 2024. The survey assesses the business situation for the current quarter (Q4:2023-24) from selected companies in the services and infrastructure sectors in India and their expectations for the ensuing quarter (Q1:2024-25) based on qualitative responses on a set of indicators pertaining to demand conditions, financial conditions, employment conditions and the price situation. The outlook on key parameters for the two subsequent quarters (Q2:2024-25 and Q3:2024-25) are also covered.

Government of India has announced the sale (issue/re-issue) of Government Securities, as detailed below, through auctions to be held on January 19, 2024. As per the extant scheme of underwriting notified on November 14, 2007, the amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under Additional Competitive Underwriting (ACU) for the underwriting auction, applicable to each Primary Dealer (PD), are as under:

(Amount in ₹ crore, Rate in Per cent) MONEY MARKETS@ Volume (One Leg) Weighted Average Rate Range A. Overnight Segment (I+II+III+IV) 525,707.74 6.77 5.00-7.90 I. Call Money 12,730.79 6.76 5.00-6.85 II. Triparty Repo    369,261.85 6.76 6.75-6.80 III. Market Repo 143,660.10 6.80 5.00-6.95 IV. Repo in Corporate Bond    55.00 7.55 7.25-7.90

The Reserve Bank has today released data on Reserve Money for the week ended January 12, 2024. Ajit Prasad Director (Communications) Press Release: 2023-2024/1690

Auction Results 91 Days 182 Days 364 Days I. Notified Amount ₹8000 Crore ₹10000 Crore ₹9000 Crore II. Competitive Bids Received    (i) Number 71 144 151 (ii) Amount ₹17692.857 Crore ₹22271.412 Crore ₹25904.200 Crore III. Cut-off price / Yield 98.2920 96.5482 93.3407 (YTM: 6.9698%) (YTM: 7.1701%) (YTM: 7.1540%) IV. Competitive Bids Accepted    (i) Number 46 98 67 (ii) Amount ₹7952.262 Crore ₹9968.982 Crore ₹8934.647 Crore

I. T-Bill 91 days182 days 364 days II. Total Face Value Notified ₹8,000 Crore ₹10,000 Crore ₹9,000 Crore III. Cut-off Price and Implicit Yield at Cut-Off Price ₹98.2920 (YTM: 6.9698%)

(Amount in ₹ crore, Rate in Per cent) MONEY MARKETS@ Volume (One Leg) Weighted Average Rate Range A. Overnight Segment (I+II+III+IV) 530,981.62 6.77 5.00-7.00 I. Call Money 12,850.53    6.76 5.00-6.85 II. Triparty Repo 375,180.30 6.76 6.66-6.77 III. Market Repo 142,765.08 6.79 5.42-6.90 IV. Repo in Corporate Bond 185.71 6.95 6.90-7.00

The Reserve Bank of India, vide directive DCBS.CO.BSD-I/D-5/12.22.039/2017-18 dated April 17, 2018, had placed The City Co-operative Bank Ltd, Mumbai under Directions from the close of business on April 17, 2018. The validity of the directions was extended from time-to-time, the last being up to close of business on January 16, 2024.

The Reserve Bank of India today placed on its website the Report of the Working Group on State Government Guarantees.   During the 32nd Conference of the State Finance Secretaries held on July 07, 2022, it was decided to constitute a Working Group comprising members drawn from the Ministry of Finance, Government of India; Comptroller and Auditor General of India; and some State Governments.

The result of the auction of State Government Securities held on January 16, 2024 is as under:

Sr. No. State Amount to be raised (₹ Cr) Amount Accepted (₹ Crore) Cut off Yield (%) Tenure (Year) 1 ; Andhra Pradesh 450 450 7.64 7 1000 1000 7.67 14 1000 1000 7.60 20 2 Assam 750 750 7.68 7 3 Bihar 2000 2000 7.73

(Amount in ₹ crore, Rate in Per cent) MONEY MARKETS@ Volume (One Leg) Weighted Average Rate Range A. Overnight Segment (I+II+III+IV) 522,630.80 6.76 0.01-7.25 I. Call Money 11,226.35    6.78 5.00-6.86 II. Triparty Repo 369,144.50 6.75    6.71-6.80 III. Market Repo 142,229.95 6.78 0.01-6.95 IV. Repo in Corporate Bond    30.00 7.25 7.25-7.25

In pursuance of the announcement made in the Statement on Developmental and Regulatory Policies released along with the Monetary Policy Statement on October 06, 2023, the Reserve Bank has today placed on its website, a ‘Draft Omnibus Framework for recognising Self-Regulatory Organisations for Regulated Entities’.  The draft omnibus framework contains broad parameters applicable to any Self-Regulatory Organisation (SRO) viz., objectives, responsibilities, eligibility criteria, governance standards, application process and other basic conditions for grant of recognition to the SRO.

The Reserve Bank of India today released the draft circular on ‘Review of regulatory framework for HFCs and harmonisation of regulations applicable to HFCs and NBFCs’. Comments on the draft circular are invited from NBFCs (including HFCs) and other stakeholders by February 29, 2024. 

Government of India (GOI) has announced the sale (issue/re-issue) of four dated securities for a notified amount of ₹35,000 crore as per the following details:

A. Source Security 8.40% GS 2024 8.40% GS 2024 GOI FRB, 2024 GOI FRB, 2024 GOI FRB, 2024 GOI FRB, 2024 B. Notified Amount (amount in ₹ cr) 1,000 1,000 3,000 1,000 2,000 1,000 Destination Security 8.97% GS 2030 6.76% GS 2061 8.32% GS 2032 7.73% GS 2034 8.33% GS 2036 8.17% GS 2044 C. i. No. of offers received 4 0 6 5 5 5 ii. Total amount of Source Security offered (Face value in ₹ cr) 1,695.750 0.000 4,800.000 1,485.000 695.000 840.000 iii. No of offers accepted 2 0 4 5 5 5 iv. Total amount of source security accepted (Face value in ₹ cr) 1,000.000 0 3,000.000 1,000.000 695.000 840.000 v. Total amount of destination security issued (Face value in ₹ cr) 917.193 0 2,799.633 965.324 641.069 772.508 vi. Cut-off price (₹) / yield (%) for destination security 109.72/7.1551 NA 107.09/7.1939 103.50/7.2593 108.32/7.2969 108.52/7.3633 

FinTechs are significantly reshaping the landscape of financial services by streamlining processes, improving accessibility, and reducing costs. Achieving a healthy balance between facilitating innovation by the industry on the one hand, and meeting regulatory priorities in a manner that protects consumers and contains risk, on the other, is crucial to optimising the contribution of the FinTech sector.

(Amount in ₹ Crore, Rate in Per cent) MONEY MARKETS@ Volume (One Leg) Weighted Average Rate Range A. Overnight Segment (I+II+III+IV)  0.00 - - I. Call Money 0.00 - - II. Triparty Repo 0.00 - - III. Market Repo 0.00 - - IV. Repo in Corporate Bond 0.00 - -

(Amount in ₹ Crore, Rate in Per cent)  MONEY MARKETS@   Volume  (One Leg)  Weighted Average Rate  Range  A.  Overnight Segment (I+II+III+IV)  0.00  -  -  I. Call Money 0.00  -  -  II. Triparty Repo   0.00  -  -  III. Market Repo 0.00  -  -  IV. Repo in Corporate Bond   0.00  -  -  B.  Term Segment I. Notice Money**     0.00  -  -  II. Term Money@@  0.00  -  -

(Amount in ₹ Crore, Rate in Per cent) MONEY MARKETS@ Volume (One Leg) Weighted Average Rate Range A.  Overnight Segment (I+II+III+IV)  5,17,222.87  6.73  0.01-7.25  I. Call Money 11,190.51 6.78  5.00-6.85 II. Triparty Repo 3,69,718.70 6.72 6.25-6.77 III. Market Repo 1,36,283.66  6.75  0.01-6.87 IV. Repo in Corporate Bond 30.00 7.25 7.25-7.25

The Central Government has re-appointed Dr. Michael Debabrata Patra as Deputy Governor, Reserve Bank of India for a further period of one year with effect from January 15, 2024, or until further orders, whichever is earlier.

The Reserve Bank of India (RBI), vide order dated January 12, 2024, has cancelled the license of “Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi”. Consequently, the bank ceases to carry on banking business, with effect from the close of business on January 12, 2024. Registrar of Cooperative Societies, Gujarat has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.

The Reserve Bank of India (RBI), vide order dated January 12, 2024, has cancelled the licence of “The Hiriyur Urban Co-operative Bank Ltd., Hiriyur”. Consequently, the bank ceases to carry on banking business, with effect from the close of business on January 12, 2024. The Registrar of Cooperative Societies, Karnataka has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.

The Reserve Bank of India (RBI) has, by an order dated January 03, 2024 imposed a monetary penalty of ₹1 crore (Rupees One Crore only) on Punjab and Sind Bank (the bank) for non-compliance with certain directions issued by RBI on ‘Loans and Advances – Statutory and Other Restrictions’. This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47 A (1) (c) read with Sections 46 (4) (i) and 51(1) of the Banking Regulation Act, 1949.

The Reserve Bank of India (RBI) has, by an order dated January 08, 2024, imposed a monetary penalty of ₹120.47 lakh (Rupees One crore twenty lakh and forty-seven thousand only) on Dhanlaxmi Bank Ltd. (the bank) for non-compliance with certain directions issued by RBI on ‘Loans and Advances – Statutory and Other Restrictions’, ‘Reserve Bank of lndia (Know Your Customer (KYC)) Directions, 2016’ and ‘Reserve Bank of lndia (Interest Rate on Deposits) Directions, 2016’. This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.

The Reserve Bank of India (RBI) has, by an order dated January 05, 2024 imposed a monetary penalty of ₹29.55 Lakh (Rupees Twenty Nine Lakh and Fifty Five Thousand only) on ESAF Small Finance Bank Limited (the bank) for non-compliance with the directions issued by RBI on ‘Customer Service in Banks’. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.

The Reserve Bank of India (RBI) has, by an order dated January 02, 2024, imposed a monetary penalty of ₹6.00 Lakh (Rupees Six Lakh only) on Sakthi Finance Limited, Coimbatore, Tamil Nadu (the company) for non-compliance with the ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’ issued by RBI. This penalty has been imposed in exercise of powers vested in RBI under the provisions of clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58 B of the Reserve Bank of India Act, 1934.

The following State Governments have offered to sell stock by way of auction, for an aggregate amount of ₹19,200 Crore (Face Value). Sr. No. State Amount to be raised (₹ Cr) Additional Borrowing (Greenshoe) Option (₹ Cr) Tenure (Year) Type of Auction 1 Andhra Pradesh 450 - 7 Yield 1000 - 14 Yield 1000 - 20 Yield 2 Assam 750 - 7 Yield

Reserve Bank of India announces the auction of Government of India Treasury Bills as per the following details:

1. Reserve Bank of India - Liabilities and Assets*  (₹ Crore)  Item  2023  2024  Variation  Jan. 6  Dec. 29  Jan. 5  Week  Year  1  2  3  4  5  4 Loans and Advances 4.1 Central Government  0  0  0  0  0  4.2 State Governments  17380  2579  21139  18560  3759  * Data are provisional; difference, if any, is due to rounding off.

Auction Results 7.37% GS 2028 7.18% GS 2033 7.30% GS 2053 I. Notified Amount ₹7000 Crore ₹16000 Crore ₹10000 Crore II. Underwriting Notified Amount ₹7000 Crore ₹16000 Crore ₹10000 Crore III. Competitive Bids Received    (i) Number 96 192 367 (ii) Amount ₹16158 Crore ₹33079.010 Crore ₹34739.750 Crore IV. Cut-off price / Yield 101.21 100.01 98.69 (YTM: 7.0629%) (YTM: 7.1773%) (YTM: 7.4093%) V. Competitive Bids Accepted    (i) Number 48 109 123

Government Stock - Auction Results: Cut-off 7.37% GS 2028  7.18% GS 2033  7.30% GS 2053  I.  Notified Amount  ₹7,000 crore  ₹16,000 crore  ₹10,000 crore  II.  Cut off Price / Implicit Yield at cut-off  101.21/ 7.0629%  100.01/ 7.1773%  98.69/ 7.4093%  III.  Amount accepted in the auction  ₹7,000 crore  ₹16,000 crore  ₹10,000 crore  IV.  Devolvement on Primary Dealers  NIL  NIL  NIL Ajit Prasad Director (Communications) Press Release: 2023-2024/1662

Tenor 13-day Notified Amount (in ₹ crore) 1,75,000 Total amount of bids received (in ₹ crore) 3,92,484 Amount allotted (in ₹ crore) 1,75,010 Cut off Rate (%) 6.71 Weighted Average Rate (%) 6.72 Partial Allotment Percentage of bids received at cut off rate (%) 65.40 Ajit Prasad Director (Communications) Press Release: 2023-2024/1661

In the underwriting auctions conducted on January 12, 2024 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:

(Amount in ₹ Crore, Rate in Per cent) MONEY MARKETS@ Volume (One Leg) Weighted Average Rate Range A. Overnight Segment (I+II+III+IV)
507,301.37 6.77 0.01-7.90 I. Call Money 12,299.45 6.76 5.00-6.90 II. Triparty Repo 

The Reserve Bank of India has today released the data on Overseas Direct Investment, both under Automatic Route and the Approval Route, for the month of December 2023. Ajit Prasad Director (Communications)  Press Release: 2023-2024/1658

On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo auction on January 12, 2024, Friday, as under:

The Reserve Bank on Jan 10, 2024 held a Conference in Mumbai for the Heads of Assurance Functions (i.e., Chief Compliance Officers, Chief Risk Officers and Heads of Internal Audit) of all Scheduled Commercial Banks (SCBs). The theme of the Conference was ‘Resilient Financial System – Role of Effective Assurance Functions’. This is part of the series of supervisory engagements kicked-off by the Governor in May 2023 with the Conference for the Directors of Public and Private Sector Banks on the theme of ‘Governance in Banks – Driving Sustainable Growth and Stability’. Deputy Governors Shri M. Rajeshwar Rao and Shri Swaminathan J. addressed the participants. Executive Directors representing the RBI’s Department of Supervision, Department of Regulation and Enforcement Department, and other senior officials, also participated in the Conference.

The following 5 Non-Banking Financial Companies (NBFC) have surrendered the Certificate of Registration (CoR) granted to them by the Reserve Bank of India (RBI). The RBI, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has therefore cancelled their CoR.

(Amount in ₹ crore)  SCHEDULED COMMERCIAL BANKS (Including RRBs, SFBs and PBs) ALL SCHEDULED BANKS 16-Dec-22 01-Dec-2023* 15-Dec-2023* 16-Dec-22 01-Dec-2023* 15-Dec-2023* I LIABILITIES TO THE BKG.SYSTEM (A) a) Demand & Time deposits from banks 201266.75 249012.9 276840.69 203686.16 252853.53 280287.70 **  b) Borrowings from banks 59956.92 200300.52 192669.22 60125.92 200371.37 192698.11  c) Other demand & time liabilities 54667.28 71526.84 70471.57 55264.53 72234.31 71176.89 II LIABILITIES TO OTHERS (A) a) Deposits (other than from banks) 17354379.08 19886495.7 (1,97,60,403.24) 19791556.74 (1,96,67,586.27) 17775361.5 20320773.77 (2,01,94,681.31) 20228915.17

The facility of deposit / exchange of ₹ 2000 banknotes at Mumbai Regional Office will not be available on Friday, January 12, 2024, due to operational reasons. The facility will resume on Monday, January 15, 2024, which is the next working day. 

Government of India has announced the sale (re-issue) of Government Securities, as detailed below, through auctions to be held on January 12, 2024. As per the extant scheme of underwriting notified on November 14, 2007, the amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under Additional Competitive Underwriting (ACU) for the underwriting auction, applicable to each Primary Dealer (PD), are as under:

(Amount in ₹ Crore, Rate in Per cent) MONEY MARKETS@ Volume (One Leg) Weighted Average Rate  Range A. Overnight Segment (I+II+III+IV) 494,509.05 6.77 5.00-8.60 I. Call Money 10,485.10 6.75 5.00-6.85 II. Triparty Repo 348,971.10 6.76 6.75-6.80 III. Market Repo 134,902.85 6.80 5.11-6.89 IV. Repo in Corporate Bond 150.00 7.64 7.20-8.60

Government of India announces the conversion/switch of its securities through auction for an aggregate amount of ₹18,000 crore (face value). The security-wise details of the conversion/switch are given as under: Date of Auction  Source Securities Amount (FV) of Source Securities (In ₹ crore) Destination Securities January 15, 2024 (Monday) 8.40% GS 2024 (Maturing on July 28, 2024) 1,000 8.97% GS 2030 (Maturing on Dec 05, 2030) 8.40% GS 2024 (Maturing on July 28, 2024) 1,000 6.76% GS 2061

The Reserve Bank has today released data on Reserve Money for the week ended January 05, 2024 and Money Supply for the fortnight ended December 29, 2023. Ajit Prasad Director (Communications) 

The Reserve Bank of India today released the data showing daily merchant and Inter-Bank transactions in foreign exchange for the period December 18 – December 22, 2023.

The Reserve Bank of India today released the data showing daily merchant and Inter-Bank transactions in foreign exchange for the period December 11 – December 15, 2023. All Figures are in USD Millions Position Date MERCHANT INTER BANK FCY / INR FCY / FCY FCY / INR FCY / FCY Spot Forward Forward Cancel Spot Forward Forward Cancel

The Reserve Bank of India today released the data showing daily merchant and Inter-Bank transactions in foreign exchange for the period December 4 – December 8, 2023. All Figures are in USD Millions Position Date MERCHANT INTER BANK FCY / INR FCY / FCY FCY / INR FCY / FCY Spot Forward Forward Cancel Spot Forward Forward Cancel Spot Swap Forward  Spot Swap Forward Purchase 4-12-2023 3,825 778 541 245 550 520 12,521 12,418 836 5,749 2,132 175