RBI july 2025 news

• Retaining 4% Inflation Target with Current CPI Framework
• RBI Appoints Shri Kewal Ramachandran as Executive Director
• RBI Issues Directions on Pre-payment Charges on Loans, 2025
• Guidelines for Lending to MSME Sector
• RBI Bans Foreclosure Charges on Small Business Loans
• SEBI Announces NSEL Settlement Scheme for Brokers
• RBI Penalizes HDFC Bank and Shriram Finance Over Regulatory Lapses
• RBI Drains ₹2L-Cr Liquidity
• India’s Forex Reserves Continue Upward Trend: RBI
• RBI Draft Norms Clarify Digital Banking Participation is Voluntary
• Draft ‘Digital Banks’ Banking Authorization Directions, 2025
• RBI Launches Financial Inclusion Index to Measure Inclusivity Across Sectors
• RBI Bulletin – July 2025
• Anuradha Thakur Appointed as RBI Co-operative Director
• RBI Proposes Easier Norms for Urban Co-operative Banks (UCBs)
• RBI Caps Investments by Banks, NBFCs at 10%
• RBI Caps AIF Investments by Banks, NBFCs at 10%

1️⃣ Inflation Target Retained

• RBI panel recommends continuing 4% CPI-based inflation target with ±2% band.
• Framework effective since 2016; review due in 2025.
• CPI basket may be revised, but no decision yet.

2️⃣ Kesavan Ramachandran Appointed ED

• Former Principal CGM in Risk Monitoring.
• Will oversee Prudential Regulation Division.

3️⃣ Pre-payment Charges Directions

• No charges on floating rate loans for individuals & MSEs.
• Effective Jan 1, 2026.
• Applies to banks, NBFCs, co-op banks.
• Full disclosure required in loan documents.

4️⃣ MSME Lending Guidelines

• Collateral-free loans up to ₹10 lakh (₹25 lakh with track record).
• Composite loan up to ₹1 crore.
• GCC facility allowed.
• Credit decisions within 14 working days.

5️⃣ Foreclosure Charges Banned

• No foreclosure fees on floating rate loans for MSEs.
• Applies to loans up to ₹50 lakh.
• Encourages borrower mobility and transparency.

6️⃣ SEBI’s NSEL Settlement Scheme

• Open Aug 25, 2025 – Feb 25, 2026.
• For brokers with SEBI orders in NSEL case.
• Excludes those under investigation by ED, SFIO, etc.

7️⃣ Penalties on HDFC & Shriram Finance

• HDFC fined ₹4.88 lakh (FDI violation).
• Shriram Finance fined ₹2.70 lakh (digital lending breach).

8️⃣ Liquidity Management

• RBI drained ₹2.08 lakh crore via VRRR auctions.
• Surplus liquidity remains; repo rate at 5.31%.

9️⃣ Forex Reserves Surge

• India’s reserves hit $609.79 billion.
• Supports rupee and external stability.

🔟 Digital Banking Norms

• Participation must be voluntary.
• Explicit customer consent required.
• No forced bundling with other services.

11️⃣ Digital Banking Authorisation Directions

• Applies to all banks.
• View-only vs transactional facilities defined.
• CBS, IPv6, CRAR, and ₹50 crore net worth required.

12️⃣ Financial Inclusion Index

• Score range: 0–100.
• Parameters: Access (35%), Usage (45%), Quality (20%).
• March 2021 score: 53.9 (up from 43.4 in 2017).

13️⃣ RBI Bulletin – July 2025

• CPI inflation below 4% for 5 months.
• Liquidity surplus aiding credit transmission.
• Articles on oil-inflation nexus, household expectations, money market trends.

14️⃣ Anuradha Thakur Joins RBI Board

• Replaces Ajay Seth.
• Appointed by Central Government.

15️⃣ Urban Co-op Bank Norms

• ECBA to replace FSWM.
• Tier-based categorization by deposit size.
• Minimum CRAR + 3% buffer required.

16️⃣ Digital Payments Index

• March 2025 score: 493.22 (up from 465.33).
• Reflects growth in infrastructure and transaction volume.

17️⃣ AIF Investment Cap

• Max 10% per AIF by any bank/NBFC.
• Total exposure capped at 20%.
• Loans to same company trigger provisioning