RBI Raises Bank Rate to 5.75%, Increases Penal Interest on CRR/SLR Shortfall
Effective October 7, 2026, the RBI increased the Bank Rate to 5.75%, triggering higher penal interest rates for shortfalls in CRR and SLR requirements.
Latest court orders, judgments, and legal developments from Indian courts — AI-curated and summarized.
Effective October 7, 2026, the RBI increased the Bank Rate to 5.75%, triggering higher penal interest rates for shortfalls in CRR and SLR requirements.
The RBI issued new directions on the Credit Valuation Adjustment (CVA) Framework for Commercial Banks, enhancing risk management for derivative exposures.
The RBI issued the Twelfth Amendment Directions, 2026, updating capital adequacy norms for Commercial Banks, including changes to legal opinion requirements and valuation adjustments for incurred losses.
Paytm Payments Bank Limited has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934, effective July 31, 2026. The exclusion, published in the Gazette of India on September 7, 2026, impacts its access to central bank facilities.
RBI introduces a forward-looking Expected Credit Loss (ECL) framework for banks effective April 2027, mandating three-stage provisioning, internal rating systems, and transitional relief measures.
FeaturedThe Reserve Bank of India increased the repo rate by 25 basis points to 5.50%, shifting to a 'calibrated tightening' stance to manage inflation risks. The move impacts corporate borrowing costs, external commercial borrowings (ECBs), and treasury strategies.
RBI releases updated FAQs on the Digital Rupee (e₹), clarifying wallet interoperability with UPI, programmability, and use cases in wholesale CBDC and retail pilots.
RBI introduces one-time approval for qualifying mutual funds, insurers, and pension funds to acquire up to 10% additional shares in commercial, payments, and small finance banks, reducing procedural delays.
On October 1, 2026, RBI issued amendment directions for Commercial, Small Finance, Payments, and Local Area Banks regulating acquisition of shares or voting rights. The updates align with recent financial sector reforms and strengthen regulatory oversight of ownership changes.
The Reserve Bank of India (RBI), on October 7, 2026, increased the policy repo rate under the Liquidity Adjustment Facility (LAF) from 5.25% to 5.50% with immediate effect. The decision, taken by the Monetary Policy Committee (MPC), aims to recalibrate monetary stance in response to evolving inflationary pressures.
The Monetary Policy Committee (MPC) unanimously raised the policy repo rate during its 63rd meeting from October 5–7, 2026, citing inflation concerns. The decision underscores a tightening stance to anchor inflation expectations.
The FEMA Export-Import Regulations, 2026, consolidate and update compliance requirements for exporters, covering EDF, EDPMS, third-party payments, and merchanting trade, effective 1 October 2026.