RBI unlocks Rs.40000 crore additional capital for banks

At the time when public sector banks are facing pressure on their profitability due to a sharp rise in non-performing assets, which is eroding their capital base. The Reserve Bank of India (RBI) move comes revised norms on capital recognition, making available an additional Rs.40,000 crore to Indian banks, this announcement is a big relief for, mainly, public sector banks.

Finance minister Arun Jaitley announced after his budget speech a capital infusion of Rs. 25,000 crore for the fiscal year starting in April. The minister did not make any increases to the capital infusion amount  that was decided in August 2015. Many public sector banks reported huge losses for the quarter ended December 2015 after the RBI asked lenders to identify several accounts as non-performing. Banks are expected to post weak earnings in the current quarter too.

Extra info:
  • According to UBS in a research report We expect 50 basis points rate cuts in the calendar year 2016 (from 25 basis points) as the Budget should give the RBI sufficient
  • CRR- 4% 
  • SLR- 21.5% 
  • RR-  6.75% 
  • Bank Rate- 7.75% 

So lets do:
  • Who is present Rbi Governor?
  • Which year Rbi Established act. comes?
  • Recently RBi Deputy governor passed away?
  • Where is RBI headquater located?
Source – The hindu


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