RBI News
RBI Governor counters Trump remark, says India outpacing US in global growth contribution
RBI Governor Sanjay Malhotra has asserted that India is making a greater contribution to global economic growth than the United States, offering a strong rebuttal to former US President Donald Trump’s “dead economy” remark. Speaking at the RBI headquarters, Malhotra highlighted that India’s share in global growth stands at 18%, exceeding the US’s contribution of around 11%. India’s GDP is projected to grow at 6.5% in FY25, well above the IMF’s 3% global average. He noted that India has averaged 7.8% annual growth in recent years and expressed confidence in further improvement. The comments follow Trump’s controversial statement regarding India’s energy dealings with Russia, in which he called India’s economy “dead.” Malhotra dismissed such criticism and underscored India’s resilience and rising global stature. His comments signal confidence in the economy’s trajectory and India’s increasing role in shaping global financial trends.
RBI: No plans to allow corporates into banking sector
RBI Governor Sanjay Malhotra confirmed that there is no proposal to grant banking licences to corporate houses or their NBFCs, citing an “inherent conflict of interest” with depositors’ funds. Speaking at a Financial Express event, Malhotra reiterated that promoter shareholding in private banks will remain capped at 26%, in line with the Banking Regulation Act. He emphasised the need for diversified ownership to maintain internal checks and balances. On monetary policy, Malhotra maintained a neutral stance, stressing that future rate decisions will be “data-driven,” based on inflation and growth projections. He acknowledged that although inflation has eased to 2.1%, policy decisions focus on 6–12 months forward-looking data. Regarding interest rate outlook, he hinted that Q4 projections may be revised downward. The RBI’s firm stance on corporate ownership and commitment to prudential norms underline its efforts to preserve financial system integrity while balancing flexibility in monetary policy.
RBI’s UDGAM portal helps 8.5 lakh users trace unclaimed bank deposits
Over 8.5 lakh Indians have accessed their long-forgotten bank deposits through RBI’s online portal UDGAM (Unclaimed Deposits – Gateway to Access Information), as per data tabled in the Lok Sabha. The portal, launched to aid depositors and their heirs, had 859,683 registered users as of July 1, 2025. Under RBI regulations, balances from accounts that remain inactive for 10 years—including savings, current, or matured term deposits—are transferred to the Depositor Education and Awareness (DEA) Fund. UDGAM facilitates easier tracking and reclaiming of such funds by linking user details across participating banks. The central bank has also instructed banks to publicise lists of dormant accounts and proactively trace customers or their nominees. This initiative aims to improve financial inclusion and reduce the sizeable volume of unclaimed money in the system, currently estimated at over Rs. 67,000 crore. The move is also expected to strengthen customer trust and transparency in banking.
RBI approves merger of New India Co-op Bank with Saraswat Bank
The Reserve Bank of India has sanctioned the merger of New India Cooperative Bank Ltd (NICBL) with Saraswat Co-operative Bank, effective August 4, 2025. This move comes after NICBL was placed under moratorium in February 2025, following a Rs. 122 crore embezzlement involving former senior officials. The merger is expected to provide relief to over 1.22 lakh NICBL depositors who have faced withdrawal restrictions. Approved under Section 44A(4) of the Banking Regulation Act, 1949, the amalgamation will see Saraswat Bank absorb all assets and liabilities of NICBL. NICBL’s 27 branches will be rebranded and function as Saraswat Bank outlets. Saraswat Bank, India’s largest urban co-operative bank, had a business volume of Rs. 91,814 crore as of March 2025, while NICBL reported only Rs. 3,560 crore. The merger is part of RBI’s efforts to ensure depositor protection, improve governance, and enhance stability in India’s cooperative banking sector.
RBI removes approval requirement for special rupee vostro accounts
The Reserve Bank of India (RBI) has eased the process for Indian banks to open Special Rupee Vostro Accounts (SRVAs) by eliminating the need for prior approval. This change, effective immediately, is expected to significantly accelerate the onboarding of correspondent banks for rupee-based cross-border trade settlements. Initially introduced in 2022 to promote rupee internationalisation, SRVAs were permitted only with RBI’s explicit approval. In a recent notification, the RBI said, “Authorised Dealer banks can now open SRVAs of correspondent banks without referring to the RBI.” The facility, first launched to settle export transactions, was later extended to imports in June 2023. The move aligns with India’s broader strategy to promote the rupee as a settlement currency. Meanwhile, RBI Governor Sanjay Malhotra is set to announce the bimonthly Monetary Policy Committee (MPC) resolution, with markets anticipating a pause in the rate cycle after three successive cuts totaling 100 basis points.
RBI finalises co-lending norms; framework effective from January 2026
The Reserve Bank of India (RBI) has released the final framework for co-lending arrangements between banks and NBFCs, effective January 1, 2026. The updated norms introduce blended interest rates, irrevocable funding commitments, and escrow-based fund distribution. Dual lending will be enabled using a single KYC process, aiming to streamline borrower experience. However, rating agency ICRA noted that these changes, particularly the 15-day loan transfer timeline and capital requirements, may reduce the attractiveness of co-lending for originators. In parallel, the RBI has also allowed banks and NBFCs to provide partial credit enhancements for certain bonds issued by large NBFCs and municipalities, subject to eligibility criteria. An RBI panel has suggested shifting to a 7-day variable rate repo/reverse repo framework as the primary liquidity tool, phasing out the existing 14-day operations. The panel also proposed maintaining the current CRR rule, requiring 90% daily minimum balances, to ensure consistent liquidity management.
RBI drafts standardised rules for faster claim settlement on deceased accounts
The Reserve Bank of India (RBI) has proposed new directions to streamline and simplify the process of settling claims on bank accounts and lockers of deceased customers. Under the draft ‘RBI (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025’, banks must process claims within 15 calendar days from the receipt of all required documents. The central bank has also suggested standardised forms to make the process more transparent and less time-consuming. For accounts with nominated beneficiaries, only a death certificate, claim form, and valid ID are required. In non-nomination cases, a simplified process will be used for claims up to Rs. 15 lakh, requiring a bond of indemnity and a no-objection declaration from other legal heirs. Claims exceeding this threshold will need a succession certificate or legal heir declaration. The RBI has invited feedback on the draft directions until August 27 to ensure wider stakeholder participation.
RBI: Digital banking must remain optional for customers
The Reserve Bank of India (RBI) has clarified that banks cannot mandate customers to opt for digital banking services as a prerequisite for availing other facilities like debit cards. In its draft guidelines on Digital Banking Channels Authorisation, the central bank stressed that access to digital services must be voluntary, and customer consent must be explicitly sought and documented. While banks can collect mobile numbers for transaction alerts as per KYC norms, they cannot link it to compulsory digital banking enrolment. The draft further mandates clear communication that SMS and email alerts will be sent for all financial and non-financial account activities. RBI defines digital banking channels to include services offered via internet, mobile apps, or other electronic platforms. The move is aimed at ensuring financial inclusion and safeguarding user choice, especially for customers who may be less comfortable using digital tools. Public feedback on the draft has been invited.