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August 10, 2026
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GST refund facilitation expands provisional input tax credit refunds and removes the minimum threshold for export-related IGST refunds.
Punjab's GST amendments facilitate voluntary compliance and reduce procedural burdens by allowing a 90 per cent provisional input tax credit refund in inverted duty structure cases and removing the minimum threshold for IGST refunds on exported goods. Additional measures cap annual fee increases by private unaided educational institutions, establish digital open universities for technology-enabled higher education, protect trees and green cover, and address common infrastructure, panchayati raj, and contractual engagement of outsourced State personnel.
August 10, 2026
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Video-conference statements for an approver application were declined, requiring the accused's statement to be recorded before consideration.
Special CBI Court rejected an accused's request to record her statement through video conferencing in a bank-fraud prosecution. The accused had sought to become an approver, and her statement was required to be recorded before consideration of that application. She and her husband had previously become approvers in a related money-laundering matter involving alleged fraudulent Letters of Undertaking.
August 10, 2026
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Fuel price transparency highlights allegations over excise duty, consumer retail costs, and profit disclosures by state-run oil marketing companies.
Fuel pricing, central excise duty and profits of state-run oil marketing companies are examined through allegations that retail fuel prices and tax policy imposed excessive costs on consumers while generating substantial company profits. The criticism contrasts high crude-price periods with lower retail prices and lower excise duty against a later period in which reduced crude prices were allegedly not passed through to consumers. Profit-margin disclosure is also raised as a transparency issue, with parliamentary information described as covering oil prices, global crude prices and company profits.
August 10, 2026
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Discharge in money-laundering proceedings turns on whether pre-charge material sufficiently establishes the alleged offence.
Discharge in a money-laundering prosecution was sought before a special PMLA court concerning alleged siphoning and laundering of loans advanced to Jet Airways by Canara Bank. The prosecution was directed to respond, subject to the applicant not seeking adjournment. Discharge is available after filing of a chargesheet and before framing of charges where the material before the court is insufficient to establish the alleged offence. The proceedings arise from a CBI FIR concerning alleged bank fraud involving Jet Airways and associated persons.
August 10, 2026
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High-speed rail indigenisation and infrastructure performance monitoring require skills development, comparative planning, measurable station assessments and freight-terminal dashboards.
Parliamentary oversight calls for accelerated indigenisation of high-speed rail components, capacity-building through international expertise, and comparative study of successful high-speed rail systems for future corridors. Redeveloped stations should be assessed through measurable indicators concerning passenger use, accessibility, cleanliness, commercial occupancy, maintenance and feedback, with completed-project practices documented and shared. Operational cargo terminals and cargo-related facilities should be monitored through a digital dashboard covering utilisation, rake performance, mechanisation, connectivity, safety compliance and customer satisfaction.
August 10, 2026
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MSME and export promotion framework expands finance, technology, infrastructure, sustainability and global-market support for enterprise growth.
Haryana Progressive MSME and Export Promotion Policy 2026 creates a five-year framework for MSME growth through financial incentives, institutional support, industrial infrastructure, technology adoption and export facilitation. Identified thrust-sector enterprises may receive capital and interest subsidies, stamp duty reimbursement, employment assistance, insurance support, and incentives for automation, artificial intelligence, testing and research. Proposed venture capital and credit guarantee funds seek to improve institutional and collateral-free finance. Export support covers international certifications, credit, insurance, freight, e-commerce, trade fairs, documentation, compliance and buyer connections, alongside sustainability and inclusive entrepreneurship measures.
August 10, 2026
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Employee data exposure alerts trigger review of alleged password spraying and MFA fatigue, with customer and operational systems unaffected.
Employee data exposure alerts prompted TCS to review allegations concerning limited basic employee information that appears to be more than four years old. No indication exists that customer data, customer systems, or operational systems have been affected. The alleged vectors involve password spraying and multi-factor authentication fatigue. TCS states that safeguards against these techniques have been in place for more than two years, its controls remain effective, and monitoring and further assessment will continue.
August 10, 2026
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Mustard honey export demonstrates FPO-led aggregation, quality-focused production and industry collaboration for international agricultural market access.
Mustard honey export from Tripura to Dubai marks the first international shipment by Dergang Farmer Producer Organisation, supported through export-oriented aggregation and market linkage initiatives. The export creates overseas market access for local beekeepers and farmers, diversifies the honey value chain, and encourages quality-focused production. Industry collaboration supported bee production and an export-oriented supply chain, while capacity building, quality assurance, value addition and market linkages can strengthen agricultural exports and farmer participation in international markets.
August 10, 2026
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Digital banking evidence gains recognition through a modernised framework for physical and electronic records, with privacy and security safeguards.
The Bankers' Books Evidence Bill, 2026, modernises the evidentiary framework for bankers' books by permitting banking records to be produced in physical or electronic form in legal proceedings. It recognises electronic, digital and virtual records and enables the Central Government to extend the regime to other regulated financial entities, supporting a uniform financial-sector evidentiary framework. The framework seeks secure and transparent use of banking records while safeguarding customer privacy, confidentiality and data security.
August 10, 2026
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Illicit opioid medicine exports exposed through concealed cargo, clandestine manufacturing, repacking, and attempted transnational trafficking to Nigeria.
Illicit manufacture and attempted export of controlled opioid medicines were detected in a network producing, concealing, storing and exporting Tramadol Hydrochloride tablets to Nigeria. A consignment declared as Pregabalin capsules contained concealed Tramadol Hydrochloride and Tapentadol tablets. Investigation identified clandestine manufacture, repacking and preparation for export, with searches yielding tablet-compression machinery and raw materials. Tramadol is a psychotropic substance under the Narcotic Drugs and Psychotropic Substances Act, while Tapentadol is regulated under the Drugs and Cosmetics Act and its rules.
August 10, 2026
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Summons compliance under anti-money-laundering law faces appellate scrutiny after acquittal over unproven email service allegations.
Delhi High Court required Arvind Kejriwal to reply to Enforcement Directorate petitions challenging his acquittal in proceedings concerning alleged non-compliance with summonses. The trial court found that the agency had not proved intentional disobedience, service of summons through email, or lawful issuance of electronic summons under the Prevention of Money Laundering Act. The appellate challenge concerns proof of service, validity of electronic summons, and intentional non-compliance.
August 10, 2026
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Pesticide residue concerns drive organic farming, school agriculture initiatives, infrastructure financing and climate-resilience support for farmers.
Food-safety concerns arising from pesticide residues and toxic substances are to be addressed through organic vegetable farming, household cultivation and the Kathir school-farming initiative. Kathir provides for institutional farming, teacher and committee support, markets, student training and clubs, with possible academic weightage for agricultural participation. Agricultural infrastructure financing supports post-harvest management, value addition, processing, packing, marketing and exports. Additional measures include banking support, agricultural technology adoption, women-farmer support and schemes addressing climate-related floods and drought.
August 10, 2026
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Digital EODC processing removes physical duty challans through authenticated payment verification for export authorisation closure.
Export Obligation Discharge Certificate processing under the Advance Authorisation and Export Promotion Capital Goods schemes no longer requires physical duty-payment challans for voluntary customs-duty payments made on or after 1 August 2026. Authenticated licence-wise payment information is electronically transmitted from Customs/ICEGATE to DGFT systems and mapped to the relevant authorisation. Exporters can verify payment details on the customer portal, while Regional Authorities use corresponding back-office records, replacing manual submission and verification for authorisation closure.
August 10, 2026
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Trusted service-call numbering requires verified utilities and logistics entities to use dedicated numbers exclusively for transactional and service communications.
The 1601-series is introduced for verified utilities, courier and logistics entities making service and transactional voice calls. Numbers must be allocated directly to eligible entities, not intermediaries or aggregators, following verification by telecom service providers and an undertaking of exclusive use. Promotional voice calls are prohibited on this series and remain associated with the 140-series. The framework separates these calls from the 1600-series reserved for regulated financial-sector and government-to-citizen communications, supporting consumer recognition of legitimate calls and reducing impersonation risks.
August 10, 2026
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GST revenue collection drives tax growth while data scrutiny, taxpayer verification, and compliance capacity remain key administrative priorities.
GST constituted the principal component of tax revenue for the 2025-26 fiscal year. Tax administration faces staff shortages, information-technology upgrade needs, and increased workloads from taxpayer registrations and return filings. Compliance oversight requires GST data scrutiny, risk assessment, identification of unregistered taxpayers, tax-evasion detection, and field verification of high-risk taxpayers. Long-term revenue planning sets progressively higher collection targets through 2063.
August 10, 2026
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Russian crude imports reshape India's refining trade as processed petroleum products reach sanctioning jurisdictions despite import restrictions.
Indian imports of Russian crude oil reached a second consecutive monthly record in July 2026, with Russian crude forming the dominant share of India's Russian fossil-fuel purchases and more than half of total crude imports. Higher receipts through smaller terminals offset reduced volumes at Paradip. Indian refineries processing Russian crude also exported refined petroleum products to sanctioning jurisdictions, including the European Union, Australia and the United States, despite the European Union prohibition on imports of oil products made from Russian crude.
August 10, 2026
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Cyber-fraud through stolen phones allegedly used mule accounts, banking credentials and coordinated technical operations to divert victims' funds.
Investigation into unauthorised withdrawals after theft of a mobile phone uncovered an alleged interstate cyber-fraud network using stolen devices, linked banking credentials and mule bank accounts. The scheme allegedly involved phone theft, supply of accounts and banking instruments, and a technical operation that accessed victims' accounts and routed funds for withdrawal or transfer. Digital surveillance, transaction mapping, seized devices, victim data and transaction records are being examined to identify linked complaints and the extent of funds allegedly diverted.
August 10, 2026
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Rupee depreciation reflected stronger dollar, elevated crude prices and geopolitical uncertainty, while portfolio inflows and equity gains provided support.
The rupee depreciated against the US dollar amid a stronger dollar, higher global crude oil prices and uncertainty surrounding West Asia-related negotiations. Concerns over crude oil's potential impact on the trade deficit weighed on the currency, while positive domestic equity markets and foreign portfolio investment inflows provided support. Market caution remained focused on forthcoming US inflation data, dollar-index movements and Brent crude prices. Foreign-exchange reserves increased during the reported period.
August 10, 2026
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Collateral-free personal loans offer extended repayment flexibility, conditional reward benefits, and online application subject to eligibility and disbursal requirements.
Loan Utsav 2026 provides eligible Bajaj Finance Personal Loan applicants an exclusive reward bundle where the loan is successfully disbursed during the campaign period. The collateral-free facility supports personal expenses, offers repayment tenures from 12 to 108 months, and may enable lower monthly EMI obligations through a longer selected tenure. Interest rates depend on eligibility, credit assessment, financial profile and lending criteria. Online applications require personal and financial details and required documents, with disbursal for eligible applicants possible after verification and approval.
August 10, 2026
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Credit card payment flexibility supports seasonal shopping and travel through eligible EMIs, rewards, tracking tools and conditional merchant benefits.
Credit-card spending features include conversion of eligible purchases into EMIs, selected no-cost EMI options, reward points, cashback, merchant discounts and payment flexibility. Travel-related benefits may include domestic airport lounge access, travel-booking discounts, fuel-surcharge waiver and anniversary-linked rewards. The AU 0101 application enables transaction tracking, balance and interest-rate monitoring, EMI conversion and bill-payment management. Features and offers are subject to change, customer eligibility, internal policies and partner-merchant terms.

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Customs, DGFT & SEZ

Governor’s Statement

April 6, 2023

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The year 2023 began on a promising note as supply conditions were improving, economic activity remained resilient, financial markets exuded greater optimism and central banks were steering their economies towards a soft landing. In just a few weeks during March, this narrative has undergone a dramatic shift. The global economy is now witnessing a renewed phase of turbulence with fresh headwinds from the banking sector turmoil in some advanced economies. Bank failures and contagion risk have brought financial stability issues to the forefront. Given the stubbornness in inflation, central banks continue to tighten monetary policy, although at a reduced pace. Inflation globally has moderated in the recent months, but its descent to the target is proving to be long and arduous.

2. The former chairman of the US Federal Reserve Alan Greenspan had once said: “Uncertainty is the defining characteristic of the monetary policy landscape.”1 This he was talking in an era of great moderation and in more normal times compared to today’s situation. What we are witnessing today is unprecedented uncertainty in geopolitics, economic activity, price pressures and financial markets never seen before. One can imagine the magnitude of challenges central banks and other policy makers face in today’s world.

Decisions and Deliberations of the Monetary Policy Committee (MPC)

3. The Monetary Policy Committee (MPC) met on 3rd, 5th and 6th April 2023 and assessed the macroeconomic situation and its outlook. It decided unanimously to keep the policy repo rate unchanged at 6.50 per cent in this meeting with readiness to act, should the situation so warrant. Consequently, the standing deposit facility (SDF) rate will remain unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The MPC also decided by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth. Let me emphasise that the decision to pause on the repo rate is for this meeting only.

4. I would now like to explain the MPC’s rationale for these decisions on the policy rate and the stance. While the recent high frequency indicators suggest some improvement in global economic activity, the outlook is now tempered by additional downside risks from financial stability concerns. Headline inflation is moderating but remains well above the targets of central banks. These developments have led to heightened volatility in global financial markets as reflected in sizeable two-way movements in bond yields, fall in equity markets and the US dollar shedding its gains from its peak of September 2022.

5. Amidst this volatility, the banking and non-banking financial service sectors in India remain healthy and financial markets have evolved in an orderly manner. Economic activity remains resilient and real GDP growth is expected to have been 7.0 per cent in 2022-23. Consumer price inflation, however, has increased since December 2022, driven by price pressures in cereals, milk and fruits. Core inflation remains elevated.

6. Looking ahead, headline inflation is projected to moderate in 2023-24. The monetary policy actions taken since May 2022 are still working through the system. Accordingly, the MPC decided to keep the policy rate unchanged to assess the progress made so far, while closely monitoring the evolving inflation outlook. The MPC will not hesitate to take further action as may be required in its future meetings.

7. To recapitulate the actions taken so far, we have increased the policy repo rate cumulatively by 250 bps in the last 11 months starting May 2022. This was preceded by the introduction of the Standing Deposit Facility (SDF) at a rate 40 bps higher than the fixed rate reverse repo. Thus, the effective rate hike since April last year has been 290 bps. These increases have been fully transmitted to the overnight weighted average call money rate (WACR), the operating target of monetary policy, which has gone up from daily average of 3.32 per cent in March 2022 to 6.52 per cent in March 2023. It is now necessary to evaluate the cumulative impact of these rate hikes. Under these circumstances, we have to be extremely prudent in our actions. We have always been very watchful and have adopted a calibrated and balanced approach and will continue to do so.

8. When we started the rate cut cycle in February 2019 to provide support to growth, the CPI inflation was around 2 per cent2 and the policy repo rate was 6.50 per cent. Now, the policy rate is 6.50 per cent but inflation is 6.4 per cent (February 2023). Overall, inflation is above the target and given its current level, the present policy rate can still be regarded as accommodative. Hence, the MPC decided to remain focused on withdrawal of accommodation.

Assessment of Growth and Inflation

Growth

9. As stated earlier, India’s real gross domestic product (GDP) is expected to have recorded a growth of 7.0 per cent in 2022-23. Hence, economic activity remains resilient.

10. On the supply side, rabi foodgrains production is estimated to increase by 6.2 per cent in 2022-23. PMI manufacturing remained robust at 56.4 in March, recording expansion for the 21st consecutive month due to favourable domestic demand. Services sector activity exhibited buoyancy. PMI services remained in expansion zone at 57.8 in March, driven by favourable demand conditions and new business gains.

11. Aggregate demand conditions were resilient in Q4 of 2022-23, even as private consumption showed some signs of slowdown. Urban demand indicators like passenger vehicle sales and credit cards spending registered robust growth in February, while consumer durables contracted in January. Rural demand indicators such as consumer non-durables, tractor and two wheeler sales registered healthy growth. Investment activity exhibited buoyancy on the back of government’s thrust on infrastructure spending, high capacity utilisation and revival in corporate investment in certain key sectors.3 Non-food bank credit rose by 15.4 per cent (y-o-y) as on March 24, 2023. The total flow of resources to the commercial sector has increased by ₹26.0 lakh crore during 2022-23 as against ₹19.0 lakh crore a year ago. Merchandise exports and non-oil non-gold imports contracted in February. Services exports continued to register robust growth. Supply chains are returning to normalcy globally as well as domestically.

12. Looking ahead, the higher rabi production has brightened the prospects for agriculture sector and rural demand. The steady growth in contact-intensive services should be positive for urban demand. The government’s focus on capital expenditure, capacity utilisation above long-period average and moderating commodity prices should bolster manufacturing and investment activity. The drag from net external demand may continue due to increased global headwinds. The protracted geopolitical tensions and global financial market volatility pose downside risks to the outlook. Taking all these factors into consideration, real GDP growth for 2023-24 is projected at 6.5 per cent, with Q1 at 7.8 per cent; Q2 at 6.2 per cent; Q3 at 6.1 per cent; and Q4 at 5.9 per cent. The risks are evenly balanced.

Inflation

13. The softening in inflation during November-December 2022 turned out to be transitory with CPI headline inflation breaching the upper tolerance threshold during January-February 2023.4 A sharp turnaround in food inflation drove the pick-up in headline inflation as core inflation remained elevated across a range of goods and services.

14. Looking ahead, the expectation of a record rabi harvest bodes well for easing of food price pressures. There is already evidence of a correction in wheat prices in March on supply side interventions by the Government. The impact of the recent unseasonal rains in some parts of the country, however, needs to be watched. Global commodity prices have moderated significantly from their heightened levels a year ago. As our surveys point out, cost conditions have somewhat eased. Inflation expectations of households have also edged down. On the upside, adverse climatic conditions are a risk to the future inflation trajectory. Milk prices are also likely to remain firm going into the summer season due to tight demand-supply balance and fodder cost pressures. The rising uncertainty in international financial markets and imported inflation pressures need to be monitored closely. Taking into account these factors and assuming an annual average crude oil price (Indian basket) of US$ 85 per barrel and a normal monsoon, CPI inflation is projected to moderate to 5.2 per cent for 2023-24; with Q1 at 5.1 per cent; Q2 at 5.4 per cent; Q3 at 5.4 per cent; and Q4 at 5.2 per cent. The risks are evenly balanced.

15. Let me now summarise what I have said so far. We are living in very volatile times. The sudden announcement of an output cut by OPEC+ a few days ago and the resultant jump in crude oil prices is yet another evidence of this volatility. The overall outlook thus remains dynamic and fast evolving. Our monetary policy in the recent period has aimed for a non-disruptive normalisation from the pandemic era stimulus measures. Even as monetary policy moved decisively to withdrawal of accommodation, financial conditions evolved in line with the productive requirements of the economy. Growth has since then become broad-based. Inflation has softened from its elevated levels a year ago; however, it still remains above the upper tolerance band. Projections for 2023-24 point to a softening in inflation, though the disinflation is likely to be gradual and protracted, given the rigidity in core or underlying inflation pressures. At this stage, we remain watchful of the evolving outlook and the impact of our actions during the past one year on the broader real economy. While we have kept the policy rate unchanged, it is important to bear in mind that that this decision was taken on the basis of our assessment of the macroeconomic and financial conditions with reference to the information available up to today. Our job is not yet finished and the war against inflation has to continue until we see a durable decline in inflation closer to the target. We stand ready to act appropriately and in time. We are confident that we are on the right track to bring down inflation to the target rate over the medium term. As we proceed towards this objective, I recall the wise counsel of Kautilya more than two thousand years ago: “Be not slack before the whole job is finished.”5

Financial Stability

16. With the fight against inflation far from over, the global economy is now confronted with serious financial stability challenges from the recent banking sector developments in some advanced economies. This calls for a reappraisal of the responsibilities of the regulators and the regulated entities world over and their collective role in safeguarding the stability of the financial system. While regulators need to identify potential vulnerabilities and take proactive regulatory and supervisory measures, it is incumbent upon the regulated institutions to exercise due diligence in their risk management and corporate governance practices. They need to pay close attention to asset-liability mismatches and profile of their deposit base, while building up adequate capital buffers and conducting periodic stress tests.

17. It is in this context that we, in the Reserve Bank, have focused on macro-and micro-prudential measures in recent years to prevent build-up of financial vulnerabilities. We have adopted a prudent approach towards regulation and supervision and have taken several steps in these areas in recent years.6 Some of these regulatory measures are listed in the footnote of this statement.

18. Our supervisory systems have also been strengthened significantly in recent years. We have adopted a unified and harmonised supervisory approach for commercial banks, NBFCs and urban cooperative banks (UCBs).7 The focus is now more on identifying the root cause of vulnerabilities, rather than dealing with the symptoms alone. As a result, the Indian banking system remains sound and healthy, with strong capital and liquidity positions, improving asset quality, better provisioning coverage along with improved profitability.8

19. Nevertheless, we are keeping a close watch on the banking sector turmoil in some developed countries. In this context, let me once again recall Kautilya’s wisdom, which remains relevant even for today’s world: “In the interests of the prosperity of the country, …..[we] should be diligent in foreseeing the possibility of calamities, try to avert them before they arise, overcome those which happen, remove all obstructions to economic activity …..”. 9

Liquidity and Financial Market Conditions

20. The Reserve Bank will continue to adopt a nuanced and agile approach to liquidity management. Amidst large moderation in surplus liquidity, the Reserve Bank conducted 14-day variable rate repo (VRR) auctions (main operation) on February 10 and March 10 and a fine-tuning 5-day VRR auction on March 24, 2023. In the period ahead, the Reserve Bank will remain flexible in meeting the productive requirements of the economy through two-way operations, as may be necessary. We will also ensure the completion of the Government borrowing programme in a non-disruptive manner while maintaining orderly market conditions during 2023-24.

21. The Indian Rupee has moved in an orderly manner in the calendar year 2022 and continues to be so in 2023 also. This is reflective of the strength of domestic macroeconomic fundamentals and the resilience of the Indian economy to global spillovers. We remain watchful and focused on maintaining stability of the Indian rupee.

External Sector

22. The current account deficit (CAD) for the first three quarters of 2022-23 stood at 2.7 per cent of GDP. In Q3, CAD narrowed significantly to 2.2 per cent from 3.7 per cent in Q2 on account of lower merchandise trade deficit and robust growth in services exports. Strong software services export growth was witnessed across key verticals such as IT services, Business Process Management (BPM), and engineering research and design (ER&D), supported by a rise in global capability centres (GCCs).

23. The merchandise trade deficit further narrowed during January and February 2023 from its level in Q3:2022-23 on the back of a sustained decline in imports. Moreover, India’s services exports continued to grow at a healthy pace in the first two months of 2023. Better growth prospects of the gulf cooperation council (GCC) countries are expected to keep remittances robust. In fact, inward gross remittances touched an all-time high of US$ 107.5 billion during calendar year 2022. The CAD is expected to remain moderate in Q4:2022-23 and in the year 2023-24 at a level that is both viable and eminently manageable.

24. Overall, our external sector indicators have improved significantly. Foreign exchange reserves have rebounded from US$ 524.5 billion on October 21, 2022 and now stand in excess of US$ 600 billion taking into account our forward assets.

Additional Measures

25. I shall now announce certain additional measures.

Developing an Onshore Non-deliverable Derivative Market

26. Banks in India with IFSC Banking Units (IBUs) were earlier permitted to transact in Indian Rupee (INR) non-deliverable foreign exchange derivative contracts (NDDCs) with non-residents and with other eligible banks having IBUs. It is now proposed to permit banks with IBUs to offer NDDCs involving INR to resident users in the onshore market. This measure will further deepen the forex market in India and provide enhanced flexibility to residents in meeting their hedging requirements.

Enhancing Efficiency of Regulatory Processes

27. At present, the processes for entities to make applications seeking license / authorisation or regulatory approvals from the Reserve Bank under various statutes / regulations take place in both online and off-line modes. To simplify and streamline such processes and in line with the Union Budget 2023-24 announcement, it has been decided to have a secured web based centralised portal named as ‘PRAVAAH’ (Platform for Regulatory Application, Validation And AutHorisation) for such processes. The portal will show time limits for deciding on the applications/approvals sought. This measure will bring greater efficiencies into regulatory processes and facilitate ease of doing business for the regulated entities of the Reserve Bank.

Development of Centralised Web Portal for the Public to Search Unclaimed Deposits

28. At present, the depositors or beneficiaries of unclaimed bank deposits of 10 years or more have to go through the websites of multiple banks to locate such deposits. Now, in order to improve and widen the access of depositors / beneficiaries to information on such unclaimed deposits, it has been decided to develop a web portal to enable search across multiple banks for possible unclaimed deposits. This will help depositors/beneficiaries in getting back unclaimed deposits.

Grievance Redress Mechanism relating to Credit Information Reporting by Credit Institutions and Credit information provided by Credit Information Companies

29. Recently, the Credit Information Companies (CICs) were brought under the purview of the Reserve Bank Integrated Ombudsman Scheme (RB-IOS). It is now proposed to put in place the following measures: (i) a compensation mechanism for delayed updation/rectification of credit information reports; (ii) a provision for SMS/email alerts to customers whenever their credit information reports are accessed; (iii) a timeframe for inclusion of data received by CICs from Credit Institutions; and (iv) disclosures on customer complaints received by CICs. These measures will further enhance consumer protection.

Operation of Pre-Sanctioned Credit Lines at Banks through the UPI

30. The Unified Payments Interface (UPI) has transformed retail payments in India. UPI’s robustness has been leveraged to develop new products and features from time to time. Recently, RuPay credit cards were permitted to be linked to UPI. This was in addition to the existing facility of linkage of UPI with deposit accounts. It is now proposed to expand the scope of UPI by permitting operation of pre-sanctioned credit lines at banks through the UPI. This initiative will further encourage innovation.

Conclusion

31. Since early 2020, the world is going through a period of extreme uncertainty. In this daunting environment, India’s financial sector remains resilient and stable. Overall, the broadening of economic activity; the expected moderation in inflation; the fiscal consolidation with focus on capital spending; the significant narrowing of the current account deficit to more sustainable levels; and the comfortable level of foreign exchange reserves are welcome developments which will further bolster India’s macroeconomic stability. This allows monetary policy to remain unwaveringly focused on inflation. With unyielding core inflation, we remain firm and resolute in our pursuit of price stability which is the best guarantee for sustainable growth. The impact of our actions over the past 12 months is still playing out and would increasingly weigh on the future inflation trajectory. As I noted in my policy statement in April last year, our goals of price stability, sustained growth and financial stability are mutually reinforcing and we continue to be guided by this approach. We remain vigilant and ready to face the challenges with a firm commitment to price and financial stability. We are inspired by what Mahatma Gandhi had said: “…inexhaustible perseverance and patience… knows no defeat.”10

Thank you. Namaskar.

(Yogesh Dayal)     
Chief General Manager

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1 “Monetary Policy under Uncertainty”, Jackson Hole Symposium, Wyoming, August 29, 2003.

2 CPI inflation was 2.1 per cent in December 2018 and 2.0 per cent in January 2019.

3 Steel consumption and cement production rose by 12.5 per cent and 7.3 per cent, respectively, in February 2023. Capacity utilisation in the manufacturing sector in Q3:2022-23 was 74.3 per cent (74.1 per cent, seasonally adjusted), above the long-period average of 73.7 per cent.

4 From a recent low of 5.7 per cent in December 2022, headline inflation increased by 80 bps to 6.5 per cent in January and 6.4 per cent in February 2023.

5 Chanakya Neeti, By B.K. Chaturvedi.

6 These measures include implementation of leverage ratio, liquidity coverage ratio (LCR), net stable funding ratio (NSFR), large exposures framework (LEF), guidelines on governance in commercial banks, scale-based regulatory (SBR) framework for NBFCs, among others. To create a buffer to shield banks from adverse yield movements, the Reserve Bank had advised banks to create an investment fluctuation reserve (IFR) with a desirable floor of IFR at 2 per cent of the held-for-trading (HFT) and available for sale (AFS) portfolios. Moreover, the capital and liquidity requirements are uniformly applied to all banks, irrespective of their asset size and exposure.

7 Das, Shaktikanta (2023), “G20 for a Better Global Economic Order during India’s Presidency”, 17th K P Hormis Commemorative Lecture, March 17, available at https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1356

8 The Capital to Risk Weighted Asset Ratio (CRAR) for the banking system at 16.0 per cent as at end-December 2022 remained well above the required minimum of 9.0 per cent. The Liquidity Coverage Ratio (LCR) of SCBs remained at 145 per cent in February 2023, while the Net Stable Funding Ratio, the long-term measure for liquidity, of SCBs is well above the minimum regulatory requirement of 100 per cent. The net NPAs of the banking system were 1.2 per cent in December 2022.

9 Source: The Arthashastra, Kautilya, edited by L.N. Rangarajan

10 Mahatma, Vol. 4., by D. G. Tendulkar

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