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In fact, UPI is not the only form of digital payment. There are other ways as well. As the RBI annual report points out: “During 2024-25, total digital payments recorded growth of 34.8 per cent and 17.9 per cent in volume and value terms, respectively.”5) Now, more digital payments happening should automatically imply people using lesser cash as a result and hence, lead to lesser cash in the system. There is no denying that that has happened, but only to some extent.As mentioned earlier, the value of UPI transactions in...

The Reserve Bank of India (RBI) wants Indian banks to give loans to foreigners in rupees .The RBI has approached the Centre asking for permission to do so.The central bank’s move is the latest step towards the internationalisation of the rupee.But what happened? Why is the RBI making this move?Let’s take a closer lookWhat happened?The RBI wants to allow domestic banks to make loans to overseas borrowers in Indian currency.This would be a historic first for the nation.The central bank has already asked the government to allow domestic banks to...

The Reserve Bank of India is taking a major step towards the internationalization of the Rupee. As per a Reuters report, the central bank has sought approval from the government to allow domestic banks to lend in rupees to overseas borrowers.  As per the sources quoted by Reuters, last month, the proposal was sent by the Reserve Bank to the Finance Ministry. The proposal suggested allowing the domestic banks and their foreign branches to lend in rupees to non-residents in neighbouring countries like Bangladesh, Nepal, Sri Lanka, and  Bhutan.  Impact...

MUMBAI: India’s foreign exchange reserves fell by $4.9 billion to a five-week low of $685.73 billion as of May 16, according to data released by the country’s central bank on Friday. The reserves had risen to a seven-month high by $4.5 billion in the prior week. Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in its reserves. For the week ended May 16, the rupee notched its second consecutive weekly drop due to sustained dollar demand from local...

Banks, non-bank lenders and financial institutions may get to invest up to 10% in the corpus of alternate investment fund (AIF) schemes, in a relief for the sector that faced a central bank clampdown in December, 2023. There will be no restriction on regulated entities (REs) such as banks for investing up to 5% in the AIF scheme's corpus, Reserve Bank of India (RBI) proposed on Monday. However, if the AIF scheme invests in a company that has borrowed from the bank, then the RE must make full provision to...

India's foreign exchange reserves rose by USD 4.553 billion to USD 690.617 billion in the week ended May 9, driven by a significant increase in gold assets, according to the Reserve Bank of India (RBI).Mumbai, May 16 (PTI) India's forex reserves jumped by USD 4.553 billion to USD 690.617 billion for the week ended May 9 on the back of a steep increase in gold assets, the RBI said on Friday.In the previous reporting week, the overall reserves had dropped by USD 2.065 billion to USD 686.064 billion. The forex...

The rupee depreciated 30 paise to 85.88 against the US dollar in early trade on Friday, weighed down by intensifying geopolitical tensions between India and Pakistan.Forex traders said geopolitical tensions between India and Pakistan have sparked risk-off sentiment in the market leading to the rupee weakness. Besides, increased demand for the US dollar further dented investor sentiments. At the interbank foreign exchange, the domestic unit opened at 85.88 against the greenback, registering a fall of 30 paise over its previous close. On Thursday, the rupee saw its steepest single-day fall...

According to the report, India’s total foreign exchange reserves stood at USD 688.13 billion as on April 25, 2025, reflecting a stable and healthy external sector position. The reserves almost rose by $11.83 billion in a month. As of April 4, 2025, India’s foreign exchange reserves stood at $676.3 billion, per the PIB press release.India’s reserves are diversified across the following assets:1. Foreign Currency Assets (FCAs): The largest component, these assets provide liquidity and comprise the major G-10 currencies. It is the first in line in terms of protecting against...

Despite the recovery in reserves, the Indian Rupee remains at or near its all-time low against the US dollar. The RBI continues to intervene in the foreign exchange market by selling dollars to prevent steep depreciation of the currency. India’s foreign exchange reserves increased by USD 1.983 billion to reach USD 688.129 billion during the week ending April 25, according to official data released by the Reserve Bank of India (RBI). This marks the eighth consecutive weekly increase in the reserves. However, the reserves still remain below the all-time high...

MUMBAI: India’s foreign exchange reserves rose for an eighth consecutive week and stood at an over six-month high of $688.13 billion as of April 25, according to data released by the central bank on Friday. The reserves rose by $1.98 billion in the reported week, after increasing by a cumulative $47.5 billion in the prior seven weeks. India’s FX reserves are now about $17 billion away from the record high of $704.89 billion hit in late September. Changes in foreign currency assets are caused by the central bank’s intervention in...